Agenda packet — Modesto City Council, July 9, 2024 (part 5 of 12)

FISCAL IMPACT:

The fiscal impact of each item is noted in the attachments to this report. The adjustments are for Fiscal Year 2023-24.

COMMITTEE RECOMMENDATION:

This item was presented to the Finance Committee on June 24, 2024, and was recommended to be forwarded to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

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.

Approved by:

Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Exhibit A – Budget Adjustments Requiring Council Approval

3. Exhibit B - Staff Approved Budget Adjustments
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07/09/2024/Budget/SChristensen/Item X 1 2024-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-
RESOLUTION AMENDING FISCAL YEAR 2023-24 ANNUAL

OPERATING AND CAPITAL IMPROVEMENT FUND BUDGETS AND

AUTHORIZING THE CITY MANAGER TO TAKE THE NECESSARY

STEPS TO IMPLEMENT THE PROVISIONS OF THIS RESOLUTION
WHEREAS, a financial analysis has been completed and it has been determined that a budget adjustment is required to the Annual and Capital Improvement Budgets of the City of Modesto for Fiscal Year 2023-24.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves amending the Fiscal Year 2023-24 Annual Operating and Capital Improvement budget as shown in Exhibit A, which is attached hereto and incorporated by reference herein.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution. #12..
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07/09/2024/Budget/SChristensen/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 9th day of July 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
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City Council, July 9, 2024
Monthly Budget Adjustment Report

EXHIBIT A
FISCAL YEAR 2023-24

HUMAN RESOURCES
 A budget adjustment in the amount of $200,000 is needed in the Employee Benefits Administration Fund (5520) to increase the expenditure budget for the employee milestone recognition payments. The increase in the budget will come from the fund reserves and the payments will be included as part of the future Employee Benefits Internal Service Fund (ISF) model.

MEASURE L – ENGINEERING SERVICES DEPARTMENT
 A budget adjustment is necessary to transfer $369,039 from Fund 1420 – Surface Transportation/Measure L – Senate Bill (SB) 1 Maintenance of Effort (MOE) fund to Project 101042 - Paradise Road Active Transportation Plan in the Capital Grants – Streets CIP Projects Fund (3160) to satisfy the Fiscal Year 2023-2024 MOE for Measure L. In addition, the project discretionary budget is being increased.

NON-DEPARTMENTAL
 A budget adjustment is necessary to increase the Transfer Out from the Police Department Capital Facility Fee Fund 3440 to the General Fund 0100 in the amount of $158,000. There is additional fund balance available in the Police Department Capital Facility Fee fund that can be transferred for repayment on the Police Department Headquarters (7000).
 A budget adjustment is necessary to increase the Transfer Out from the Fire Department Capital Facility Fee Fund 3450 to the General Fund 0100 in the amount of $34,000.

There is additional fund balance available in the Fire Department Capital Facility Fee fund that can be transferred for repayment on the loan for Fire Station #11.  A budget adjustment is necessary to increase the Transfer Out from the General Government Capital Facility Fee Fund 3470 to the General Fund 0100 in the amount of $83,000. There is additional fund balance available in the General Government Capital Facility Fee fund that can be transferred for repayment on the Tenth Street Plan Project (7000).

PARKS, NEIGHBORHOODS AND RECREATION
 A budget adjustment in the amount of $200,000 is needed in the Non-Capital Parks Fund (1380) Project 101351 – Recreation Facility Improvements to increase the expenditure budget for necessary flooring renovations at the Senior Citizen’s Center. As part of the adjustment, a Transfer-In from the General Fund will be established in the same amount to move Fiscal Year 2023-2024 salary savings from Recreation Operations cost center 33030 to the fund the project.
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City Council, July 9, 2024
Monthly Budget Adjustment Report

Page 2 of 2 ends

 A budget adjustment in the amount of $400,000 is needed in the Golf Fund (4600) in Project 101294 - Dryden Clubhouse Renovation to increase the discretionary expenditure and revenue budgets based on the American Rescue Plan Act (ARPA) reallocation which was approved by City Council Resolution 2024-194.

POLICE DEPARTMENT
 A budget adjustment in the amount of $300,384 is needed in the 2023-2024 Supplemental Law Enforcement Services Fund (SLESF) Project (101539) in the Police Grants Fund (1342) to increase the expense and revenue budget to account for State revenues and offsetting expenditures.
 A budget adjustment in the amount of $62,085 is necessary to increase Salary and Benefits in the Traffic Offender Fund (1610). The fund is currently over budget due to higher-than-expected Overtime and Compensation Time Off Cash Out expenses. The increase in budget will be coming from the Fund Reserves.  A budget adjustment is needed to Transfer Out from the General Fund (0100) to the Police Grants Fund (1342) and American Rescue Plan Act (ARPA) Fund (1390) in the amount of $250,000 for the MPD – Department of Housing and Urban Development (HUD) Emergency Solutions Grant (ESG) Homeless Outreach (19205) and MPD - ARPA Outreach Specialist (19206), also known as the Community Health Assistance Team (CHAT). The Transfer Out is necessary to cover Ineligible Expenses, such as PERS Unfunded Accrued Liability, Internal Services Funds and expenses incurred after the ARPA funds were exhausted in the Cost Centers 19205 and 19206.

PUBLIC WORKS
 A budget adjustment is necessary to establish a transfer from the Surface Transportation Fund – Measure L/SB 1 Maintenance of Effort (MOE) Fund (1420) to the Surface Transportation Fund (1700) in the amount of $1,144,825 to offset transportation operations in the fund and meet the Senate Bill 1 RMRA/Measure L MOE requirement.

UTILITIES
 A budget adjustment in the amount of $466,667 is needed in the Wastewater Fund (4210) for Project 101473 Far-Field & Constituents of Emergent Concern (CEC) Studies to recognize the revenue which is anticipated to be received from the City of Turlock and Del Puerto Water District related a Memorandum of Understanding (MOU) which was approved by City Council Resolution 2023-306. Each entity will be sharing one- third (1/3) of the cost of the $819,330 for a total of $273,110 per agency. $79,553 of revenue has already been budgeted per City Council Resolution 2024-076. #12..
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Department Director/Budget Manager/City Manager Approved Budget Adjustments EXHIBIT B For FY2023/24
AT #
Approved
by CM,
BM or DD
Fund Fund Name Cost Ctr/Project Name Account Name Rev/Exp/TI/ TO Account
Current
Budget
Increase
(Decrease)
Revised
Budget Description
AT-121 DD 0100 General Fund 06010 - AUD - City Auditor Budget Only - Salary Adjustment - Decrease Exp $ 338,769 $ (120,000) $ 218,769 AT-121 DD 0100 General Fund 06010 - AUD - City Auditor Budget Only - Benefits Adjustment - Decrease Exp $ 190,936 $ (80,000) $ 110,936
AT-121 DD 0100 General Fund 06010 - AUD - City Auditor Professional Services Exp $ 80,295 $ 200,000 $ 280,295 AT-124 BM 0100 General Fund 33030 - Recreation Operations 57020 - Non-Capital CIP Exp $ 10,000 $ (10,000) $ - AT-124 BM 0100 General Fund 33030 - Recreation Operations 71380 - Transfer Out to 1380 TO $ 40,000 $ 10,000 $ 50,000 AT-125 CM 0100 General Fund 33120 - Senior & Children's Services 51040 - Salary & Wages - Part-time Exp $ 166,478 $ 15,000 $ 181,478 AT-125 CM 0100 General Fund 33330 - Neighborhood Center at Marshall Park 51040 - Salary & Wages - Part-time Exp $ 64,985 $ 17,216 $ 82,201 AT-125 CM 0100 General Fund 33120 - Senior & Children's Services 71380 - Transfer Out to 1380 TO $ - $ 15,000 $ 15,000 AT-125 CM 0100 General Fund 33330 - Neighborhood Center at Marshall Park 71380 - Transfer Out to 1380 TO $ - $ 17,216 $ 17,216 AT-126 BM 0100 General Fund 33030 51040 - Salary & Wages - Part-time Exp $ 165,132 $ (7,889) $ 157,243 AT-126 BM 0100 General Fund 33050 51040 - Salary & Wages - Part-time Exp $ 1,116,649 $ (16,415) $ 1,100,234 AT-126 BM 0100 General Fund 33120 51040 - Salary & Wages - Part-time Exp $ 174,938 $ (8,460) $ 166,478 AT-126 BM 0100 General Fund 33130 51040 - Salary & Wages - Part-time Exp $ 400,123 $ (8,187) $ 391,936 AT-126 BM 0100 General Fund 33320 51040 - Salary & Wages - Part-time Exp $ 172,848 $ (39,015) $ 133,833 AT-126 BM 0100 General Fund 33330 51040 - Salary & Wages - Part-time Exp $ 67,265 $ (2,280) $ 64,985 AT-126 BM 0100 General Fund 33030 54501 - Service City Forces - Interfund Exp $ 5,645 $ 7,889 $ 13,534 AT-126 BM 0100 General Fund 33050 54501 - Service City Forces - Interfund Exp $ 74,600 $ 16,415 $ 91,015 AT-126 BM 0100 General Fund 33120 54501 - Service City Forces - Interfund Exp $ - $ 8,460 $ 8,460 AT-126 BM 0100 General Fund 33130 54501 - Service City Forces - Interfund Exp $ - $ 8,187 $ 8,187 AT-126 BM 0100 General Fund 33320 54501 - Service City Forces - Interfund Exp $ - $ 39,015 $ 39,015 AT-126 BM 0100 General Fund 33330 54501 - Service City Forces - Interfund Exp $ - $ 2,280 $ 2,280 AT-133 CM 0100 General Fund 70100 - Transfer Out General Fund Transfer Out to Fund 1341 TO $ - $ 20,000 $ 20,000 AT-133 CM 0100 General Fund 18212 - MFD - Fire Services for Oakdale Personal Protection Equipment Exp $ 26,210 $ (10,000) $ 16,210 AT-133 CM 0100 General Fund 18213 - MFD - Fire Services for Ceres Personal Protection Equipment Exp $ 43,523 $ (10,000) $ 33,523 AT-138 CM 0100 General Fund 33320 - PRN Maddux Youth Center Budget Only - Salary & Wages Decrease Exp $ 133,833 $ (49,000) $ 84,833 AT-138 CM 0100 General Fund 33320 - PRN Maddux Youth Center Transfer Out to Fund 1380 Exp $ - $ 49,000 $ 49,000 AT-142 BM 0100 General Fund 12450 - FIN-Citation Processing Services Interfund Charges - Equipment Rental Rev $ 112,736 $ 10,000 $ 122,736 AT-142 BM 0100 General Fund 19440 - MPD - Citation Processing FF - Parking Fines Rev $ 69,474 $ 10,000 $ 79,474 AT-142 BM 0100 General Fund 12450 - FIN-Citation Processing Services Criminal Justice Mandatory Fees Exp $ 6,240 $ 10,000 $ 16,240 AT-142 BM 0100 General Fund 19440 - MPD - Citation Processing Services City Forces Non-Labor Exp $ 13,004 $ 10,000 $ 23,004 Total Changes for Fund 0100 $ 3,473,683 $ 104,432 $ 3,578,115 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Budget Only - Salary Adjustment -Decrease Exp $ - $ (400,000) $ (400,000) AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Budget Only - Benefit Adjustment -Decrease Exp $ - $ (250,000) $ (250,000) AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Office Supplies Exp $ - $ 1,000 $ 1,000 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Personal Protection Equipment Exp $ - $ 4,000 $ 4,000 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Tools and Field Supplies <$5,000 Exp $ - $ 5,000 $ 5,000 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Business Expenses Exp $ - $ 1,000 $ 1,000 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Cell Phone Utility Expenses Exp $ - $ 3,960 $ 3,960 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Laundry and Cleaning Supplies Exp $ - $ 3,120 $ 3,120 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Professional Services Exp $ - $ 21,060 $ 21,060 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Services City Forces - Interfund Exp $ - $ 60,000 $ 60,000 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Dump Fees Exp $ - $ 50,860 $ 50,860 AT-129 BM 0160 General Fund - Measure H 56019 - Measure H Blight Abatement Vehicles > $5,000 Exp $ - $ 500,000 $ 500,000 Total Changes for Fund 0160 $ - $ - $ -
AT-130 BM 1170 HOME Fund 14030 - CED-HOME Administration 42030 - Intergov-Federal-Housing Urban Development Rev $ 775,404 $ (775,404) $ -
The Maddux Youth Center is visited over 5,000 times annually by children needing a safe place to go after school with homework assistance. The 70 year old facility is undergoing renovations to optimize operations and needs. Existing cost savings will be used to sand, stain and paint the gym floor ($35,000), and reconfigure the facility entryway ($14,000). The reduction of $49,000 in cost center 33320 will be used to increase the expenditure budget in the Non-Capital Project Maddux Youth Center Improvements via the transfer of funds from the General Fund to Fund 1380 (NonCapital Parks Fund) in the same amount.

Finance is requesting budget adjustment in the Citation Processing Services cost center 12450 and PD cost center 19440. PD has been issuing more citations than estimated and revenue budget will need to be increased in cost center 19440. With increasing citations issuance, an increase in mandatory State and County expenses (currently coded to 12450) will also need to be increased. To ensure these expenses get covered by PD, an increase to the Interfund and Services City Forces Non Labor accounts will also need to be processed. Government Code 76000 requires the remittance of $12.50 per violation to the county treasurer for all paid parking violations.

California Vehicle Code 40225 requires agencies to remit 50% of all equipment violations collected shall be paid to the State.

A budget adjustment is necessary to move expenses related to part-time salaries and wages and reallocate them to the Service City Forces - Intrafund. The adjustment is moving funds from the Appr. Unit A to C as result of the various part-time staff charging different cost centers. The costs are accounted for the intrafund account. The overall budget is not changing for Parks, Recreation and Neighborhoods.

A budget adjustment is necessary to reallocate the budget within 56019 - PW - Measure H - Blight Abatement for the blight abatement quick response team. The original budget was placed in the Budget Only Salary and Benefit accounts and some of that budget needs to be redistributed for discretionary and equipment purchases.

A budget adjustment is necessary to revise the revenue account/activity code budget

The purpose of this adjustment is to transfer out from the General Fund for the funds coming from the reduction in the Oakdale and Ceres budgets for the local match of $20,000, to transfer in the project in the same amount, to increase the expenditure budget in the Cal Fire Grant - Wildland PPE project (101596) for the Personal Protection Equipment expenditure types for $40,000 which includes a 50% local match, to reduce the operating cost centers for Oakdale and Ceres by $10,000 each in the Personal Protection Equipment account 52160 for a total of $20,000 to fulfill the 50% required local match for grant funding. Reso 2023-485 approved November 7,2023.

This budget adjustment will transfer salary savings of $200,000 from AUD-City Auditor's Appropriation Unit A to its Appropriation Unit C for the purpose of funding necessary professional services expenses for the remainder of Fiscal Year 2023-2024.

A budget adjustment is necessary to move funds from the General Fund to the Fund Development/Special Project 100880 for the 150th Commemoration Mural. The adjustment is increasing the budget in the Arts in Public Places Task on the project and reducing the Parks General Fund operating budget.

A budget adjustment is necessary to move funds from the General Fund to the Fund Development/Special Project 100880 for needs for Recreation funds in the project. The adjustment is increasing the budget in the Recreation Task on the project and reducing the Parks General Fund operating budget.
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Department Director/Budget Manager/City Manager Approved Budget Adjustments EXHIBIT B For FY2023/24
AT #
Approved
by CM,
BM or DD
Fund Fund Name Cost Ctr/Project Name Account Name Rev/Exp/TI/ TO Account
Current
Budget
Increase
(Decrease)
Revised
Budget Description
AT-130 BM 1170 HOME Fund 14030 - CED-HOME Administration 42030 - Intergov-Federal-Housing Urban Development Rev $ - $ 775,404 $ 775,404
Total Changes for Fund 1170 $ 775,404 $ - $ 775,404
AT-119 CM 1341 Grants - Reimbursed 101588 - UOPP14 CA Recycle - PW Rev $ - $ 29,432 $ 29,432 AT-119 CM 1341 Grants - Reimbursed 101588 - UOPP14 AUC - Advertising Exp $ - $ 14,000 $ 14,000 AT-119 CM 1341 Grants - Reimbursed 101588 - UOPP14 AUC - Professional Services Exp $ - $ 8,000 $ 8,000 AT-119 CM 1341 Grants - Reimbursed 101588 - UOPP14 AUC - Svcs City Forces Exp $ - $ 7,432 $ 7,432 AT-133 CM 1341 Grants - Operation Grants
Reimbursed 18998 - MFD Non-Capital Projects Transfer in from Fund 0100 TI $ - $ 20,000 $ 20,000 AT-133 CM 1341 Grants - Operation Grants
Reimbursed 18998 - MFD Non-Capital Projects Other Miscellaneous Grants Rev $ - $ 20,000 $ 20,000 AT-133 CM 1341 Grants - Operation Grants
Reimbursed
101596 - MFD 2023 CalFire Wildland PPE
Grant Personal Protection Equipment Exp $ - $ 40,000 $ 40,000 Total Changes for Fund 1341 $ - $ 138,864 $ 138,864
AT-127 CM 1410 Measure L Local Road Tax 14626 - Traffic Management Transfer out to Fund 7330 TO $ - $ 25,000 $ 25,000 AT-127 CM 1410 Measure L Local Road Tax 14627 - Bike and Pedestrian Transfer out to Fund 7330 TO $ - $ 25,000 $ 25,000 Total Changes for Fund 1410 $ - $ 50,000 $ 50,000
AT-122 DD 1380 Non-Capital Parks Fund 101590 - Historical Properties Donations Professional Services Exp $ - $ 5,000 $ 5,000 AT-122 DD 1380 Non-Capital Parks Fund 101590 - Historical Properties Donations Misc. Donations Rev $ - $ 5,000 $ 5,000 AT-124 BM 1380 Parks Non-Capital Fund 100880 - Fund Dev/Special Projects 60100 - Transfer In from Fund 0100 TI $ 13,500 $ 10,000 $ 23,500 AT-124 BM 1380 Parks Non-Capital Fund 100880 - Fund Dev/Special Projects Business Expenses Exp $ 13,500 $ 10,000 $ 23,500 AT-125 CM 1380 Non-Capital Parks Fund 100880 - Fund Dev/Special Projects 60100 - Transfer In from Fund 0100 TI $ 18,500 $ 32,216 $ 50,716 AT-125 CM 1380 Non-Capital Parks Fund 100880 - Fund Dev/Special Projects Business Expenses Exp $ 18,500 $ 32,216 $ 50,716 AT-138 CM 1380 Non-Capital Parks Fund 101465 - Improvements to MYC Transfer In from Fund 0100 Exp $ - $ 49,000 $ 49,000 AT-138 CM 1380 Non-Capital Parks Fund 101465 - Improvements to MYC Business Expenses Exp $ 24,000 $ 49,000 $ 73,000 Total Changes for Fund 1380 $ 88,000 $ 192,432 $ 280,432 AT-117 DD 3130 Parks Fund 101380- Park Security Cameras Miscellaneous Revenue Rev $ 17,000 $ 10,000 $ 27,000 AT-117 DD 3130 Parks Fund 101380- Park Security Cameras AUC-CON CreeksideSBA Exp $ - $ 10,000 $ 10,000 AT-131 BM 3130 Parks Fund 101376 - Park Partners 2021 Professional Services Exp $ - $ 250 $ 250 AT-131 BM 3130 Parks Fund 101376 - Park Partners 2021 Misc. Donations/Contributions - Non-Intergov Rev $ 5,000 $ 250 $ 5,250 Total Changes for Fund 3130 $ 22,000 $ 20,500 $ 42,500
AT-120 BM 3160 Capital Grants - Streets CIP
Projects 100881 - Pavement Rehab Crows Landing City Construction Forces Exp $ 30,000 $ (667) $ 29,333 AT-120 BM 3160 Capital Grants - Streets CIP
Projects 100881 - Pavement Rehab Crows Landing Eng/Design/Admin Exp $ 250,000 $ 667 $ 250,667 Total Changes for Fund 3160 $ 280,000 $ - $ 280,000
AT-141 BM 3216 Woodglen 2018-1 CFD Fund 14749 - CED - Woodglen CFD Annexation Formation and Annual Maintenance Water Utility Expenses Exp $ 5,000 $ 1,000 $ 6,000 AT-141 BM 3216 Woodglen 2018-1 CFD Fund 14749 - CED - Woodglen CFD Annexation Formation and Annual Maintenance
Repair and Maintenance Services -
Landscape Exp $ 25,000 $ 9,000 $ 34,000
Total Changes for Fund 3216 $ 30,000 $ 10,000 $ 40,000
AT-127 CM 3300 Measure L - Capital Projects 101587 - ATP Cycle 7 Transfer in from Fund 1410 TI $ - $ 50,000 $ 50,000 A budget adjustment is necessary to establish the expense budget and transfer from Traffic Management and Bike and Pedestrian Measure L to Project 101587 for the Encina Lincoln Corridor ATP Grant Application. This was recommended for approval by the Citizen's Transportation Sales Tax Commission on 3/7/2024.

Total Changes for Fund 3300 $ - $ 50,000 $ 50,000
AT-114 BM 4100 Water Fund 101452 - Water Grant Research & Writing AUC Professional Services Exp $ 108,957 $ (32,000) $ 76,957 AT-114 BM 4100 Water Fund 101452 - Water Grant Research & Writing AUC Professional Services - Grant Exp $ - $ 32,000 $ 32,000 Total Changes for Fund 4100 $ 108,957 $ - $ 108,957
AT-113 BM 4180 Water Fund - CIP Projects 101080 - Grayson Well 274 (Surface) Eng/Design/Admin Exp $ 607,268 $ (33,000) $ 574,268 The Maddux Youth Center is visited over 5,000 times annually by children needing a safe place to go after school with homework assistance. The 70 year old facility is undergoing renovations to optimize operations and needs. Existing cost savings will be used to sand, stain and paint the gym floor ($35,000), and reconfigure the facility entryway ($14,000). The reduction of $49,000 in cost center 33320 will be used to increase the expenditure budget in the Non-Capital Project Maddux Youth Center Improvements via the transfer of funds from the General Fund to Fund 1380 (NonCapital Parks Fund) in the same amount.

A budget adjustment is necessary to increase the expense budget in the Woodglen 2018-1 CFD as expenses are coming in higher than originally budgeted. The increase in budget will come from the reserves in Fund 3216.

A budget adjustment is necessary to establish the expense budget and transfer from Traffic Management and Bike and Pedestrian Measure L to Project 101587 for the Encina Lincoln Corridor ATP Grant Application. This was recommended for approval by the Citizen's Transportation Sales Tax Commission on 3/7/2024.

for the Traveler's Motel project. The revenue was originally budgeted via BT-110 in FY2024 but it wasn't budgeted with the assigned activity code (01505) A budget adjustment is needed to recognize and allocate fuds for a common birds sign.

A budget adjustment is required to recognize the bonus from SBA Communications for Amendment #1 to the cell tower agreement at Creekside Golf Course. Amendment The City of Modesto has received a grant from the State of California for the Used Oil Payment Program. This grant will provide funding for advertising, promotional items, events, annual conference, and staff time.

A budget adjustment is necessary to reallocate budget from the CCF Task to the EDA task on Project 100881. The project has been completed and all final billing has been processed. There are sufficient funds in the CCF to move over. Once the adjustment is completed, the project will be final closed.

A Budgets adjustment is necessary to establish the budget for Project 101590- Historical Properties Donations. The Adjustment is recognizing revenue for the Mansion and establishing expenditure budget.

A budget adjustment is necessary to reallocate funds from the EDA task to the CA task to cover additional expenses related to construction administration The overall budget

A budget adjustment is necessary to reallocate funds from the EDA task to a newly created EDA task to track activity for the Grant Matrix. The overall budget is not changing.
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Department Director/Budget Manager/City Manager Approved Budget Adjustments EXHIBIT B For FY2023/24
AT #
Approved
by CM,
BM or DD
Fund Fund Name Cost Ctr/Project Name Account Name Rev/Exp/TI/ TO Account
Current
Budget
Increase
(Decrease)
Revised
Budget Description
AT-113 BM 4180 Water Fund - CIP Projects 101080 - Grayson Well 274 (Surface) Construction Administration Exp $ 569,598 $ 33,000 $ 602,598 AT-134 BM 4180 Water Fund - CIP Projects 100804 - Paradise Water Main Construction Exp $ 1,661,000 $ (500,000) $ 1,161,000 AT-134 BM 4180 Water Fund - CIP Projects 100804 - Paradise Water Main Eng/Design/Admin Exp $ 650,000 $ 500,000 $ 1,150,000 AT-135 BM 4180 Water Fund - CIP Projects 101597 - Water ERP Update AUC-EDA Discretionary Expenses Exp $ - $ 25,000 $ 25,000 A budget adjustment is necessary to establish the initial project budget. The remainder of the budget will be included on a future monthly budget adjustment item.

AT-137 BM 4180 Water Fund - CIP Projects 101015 - Destruction of Wells 2017 Construction Exp $ 857,050 $ (7,500) $ 849,550 AT-137 BM 4180 Water Fund - CIP Projects 101015 - Destruction of Wells 2017 City Construction Forces Exp $ - $ 1,000 $ 1,000 AT-137 BM 4180 Water Fund - CIP Projects 101015 - Destruction of Wells 2017 Eng/Design/Admin Exp $ 90,383 $ 6,500 $ 96,883 Total Changes for Fund 4180 $ 4,435,299 $ 25,000 $ 4,460,299 AT-112 BM 4210 Wastewater Fund 100916 - LaLoma Sewer Eng/Des/Adm Exp $ 607,778 $ (30,000) $ 577,778 AT-112 BM 4210 Wastewater Fund 100916 - LaLoma Sewer CCF - City Construction Forces Exp $ - $ 30,000 $ 30,000 AT-115 CM 4210 Wastewater Fund 101452 - Wastewater Grant Research & Writing AUC - EDA Exp $ 145,000 $ 50,000 $ 195,000 A budget adjustment is necessary to increase the project budget by $50,000; funding will come from Wastewater Reserves AT-132 BM 4210 Wastewater Fund 101591 - RT, ST & SR Ph2 SS Trunk Rehab EDA Exp $ - $ 25,000 $ 25,000
Establish initial project budget. This project will rehabilitate areas tagged as moderate to severe as park of the 2016 Wastewater Condition Assessment. The Santa Rosa Sewer Trunk Phase 2 will focus on rehabilitation of approximately 7,150 LF and RCP ranging between 16-inch and 30-inch as well as 27 manholes.

AT-140 BM 4210 Sewer Operations Funds 100931 - Plant Structural Improvements Eng/Design/Admin Exp $ 221,647 $ (30,000) $ 191,647 AT-140 BM 4210 Sewer Operations Funds 100931 - Plant Structural Improvements Construction Administration Exp $ 280,844 $ 30,000 $ 310,844 Total Changes for Fund 4210 $ 1,255,269 $ 75,000 $ 1,330,269 AT-116 CM 5110 Inventory Purchase Fund FIN - Inventory Purchasing - Litt Road Interfund Charges - Sales of Inventory - Stores Rev $ 5,247,460 $ 50,000 $ 5,297,460
AT-116 CM 5110 Inventory Purchase Fund FIN - Inventory Purchasing - Litt Road Oracle Inventory - Cost of Goods Sold Exp $ 5,247,460 $ 50,000 $ 5,297,460 Total Changes for Fund 5110 $ 10,494,920 $ 100,000 $ 10,594,920 AT-139 DD 5230 Information Technology 17410 - IT Administration Budget Only - Salary Adjustment - Decrease Exp $ - $ (7,500) $ (7,500) AT-139 DD 5230 Information Technology 17410 - IT Administration Budget Only - Benefit Adjustment - Decrease Exp $ - $ (2,500) $ (2,500) AT-139 DD 5230 Information Technology 17510 - IT - Business Applications Budget Only - Salary Adjustment - Decrease Exp $ - $ (60,000) $ (60,000) AT-139 DD 5230 Information Technology 17510 - IT - Business Applications Budget Only - Benefit Adjustment - Decrease Exp $ - $ (50,000) $ (50,000) AT-139 DD 5230 Information Technology 17710 - IT - Network/Data Center Budget Only - Salary Adjustment - Decrease Exp $ (299,113) $ (300,000) $ (599,113) AT-139 DD 5230 Information Technology 17710 - IT - Network/Data Center Budget Only - Benefit Adjustment - Decrease Exp $ (64,232) $ (150,000) $ (214,232) AT-139 DD 5230 Information Technology 17410 - IT Administration Business Expenses Exp $ - $ 10,000 $ 10,000 AT-139 DD 5230 Information Technology 17510 - IT - Business Applications Professional Services Exp $ 187,110 $ 110,000 $ 297,110 AT-139 DD 5230 Information Technology 17710 - IT - Network/Data Center PC Software and Supplies Exp $ 52,311 $ 35,000 $ 87,311 AT-139 DD 5230 Information Technology 17710 - IT - Network/Data Center Temporary Employee Services Exp $ 71,080 $ 150,000 $ 221,080 AT-139 DD 5230 Information Technology 17720 - IT - Security Repair and Maintenance Services Exp $ 117,955 $ 200,000 $ 317,955 AT-139 DD 5230 Information Technology 17720 - IT - Security Professional Services Exp $ 100,000 $ 65,000 $ 165,000 Total Changes for Fund 5230 $ 165,111 $ - $ 165,111
A budget adjustment is necessary to reallocate funds between tasks on the project.

A budget adjustment is to redistribute funds between tasks on Project 101015 as part of the project closure processes. The overall budget is not changing.

A budget adjustment is necessary to reallocate funds between cost centers and accounts within the Information Technology Fund 5230. There are salary savings within the fund that is being moved down to the Appr. Unit C discretionary budget. The overall IT Fund budget is not changing.

A budget adjustment is necessary to reallocate funds from the EDA task to CA task to cover expenditures. The overall project budget is not changing.

A budget adjustment in the amount of $50,000 is necessary in the Inventory Purchase Fund (5110) to purchase additional registers that were not included in the projections used for BT-117. The vendor delivered these additional registers sooner than anticipated from the original projected delivery date. There are an additional 300 registers that are needed through the end of this fiscal year.

to cover additional expenses related to construction administration. The overall budget is not changing..

A budget adjustment is necessary to reallocate budget between tasks on the project. #12..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 9, 2024
Date: June 12, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: First Amendment to the Memorandum of Understanding for Regional Early Action Plan (REAP) funding
CONTACT: Sean Rando, Business Analyst, [email protected], 209-577-5473 DESCRIPTION:

Consider approving a First Amendment to the Memorandum of Understanding (MOU) with the Stanislaus Council of Governments (StanCOG) for Regional Early Action Planning Grant Program Funds. (Funding Source: Regional Early Action Planning (REAP) Grant Funds) STRATEGIC PLAN ELEMENT:

The Comprehensive General Plan Update project supports and promotes Strategic Plan Goal E, “Drive Economic Vitality.” Strategy 1 under Goal E is: Update the General Plan consistent with city vision. REAP funding will be critical to the Comprehensive General Plan Update project.

BACKGROUND:

The State of California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) for the Regional Early Action Planning (REAP) Grant Program on February 27, 2020. The REAP Grant Program is intended to fund Housing Element updates and any other eligible housing-related planning activities. Eligible applicants under the grant program include Councils of Governments (COG), who can suballocate grant awards to local agencies. REAP is also a part of the broader Local Government Planning Support Grants Program, which was established as a component of the 2019-20 Budget Act. The goals of the program are to accelerate housing production and to facilitate compliance in implementing the sixth cycle of the regional housing needs allocation (RHNA). The Stanislaus Council of Governments (StanCOG) serves as the lead applicant under this program.

On January 11, 2022, by Resolution No. 2022-010, Council approved an MOU with StanCOG for the first round of available funding under the REAP program which amounted to $161,955.53. The REAP funds were agreed to be used for the reimbursement of consulting costs required to complete the Modesto general plan update. The City has since engaged the services of PlaceWorks to conduct public outreach and engagement to prepare the updated #13..
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City Council, July 9, 2024
First Amendment to the Memorandum of Understanding for Regional Early Action Plan funding

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general plan. The City has fully expended the initial REAP funding, and all requests for reimbursement to recover the first allocation of $161,955.53 have been provided to StanCOG.

DISCUSSION:

StanCOG has continued to work with local jurisdictions in Stanislaus County to satisfy the requirements of the REAP program in anticipation of receiving the final HCD funding package.

On May 21, 2024, StanCOG informed the City that third REAP funding package would amount to $219,654.13. Eligible uses of this additional funding include:
 Technical assistance, planning, staffing, and consultant needs.  Administration costs.
 Outreach and engagement activities.
 Accelerating infill development that facilities housing supply, choice, and affordability through various planning programs, services, or capital expenditures.  Realizing multimodal communities through programs, plans, and implementation actions.
 Shifting travel behavior by reducing driving through programs, ordinances, funds, and other mechanisms.
 Increasing transit ridership through funding, implementation actions, and planning.

The City of Modesto has utilized past REAP funds to be allocated towards our General Plan Update. Staff recommends that we utilize the additional REAP funds toward the update. All requests for reimbursement of REAP eligible expenditures must be requested by November 30, 2024. Staff has compiled consultant invoices and general ledger labor reports to determine the available costs that can now be recovered through the final suballocation, and there are sufficient expenses available to fully request the $219,654.13 within the required timeframe of the grant program.

FISCAL IMPACT:

The Regional Early Action Planning (REAP) grant revenue and eligible expenditures will be housed in Project 100838 – Modesto General Plan Update. There is no impact to the City’s General Fund. City staff will invoice StanCOG consistent with the applicable provisions of the MOU.

COMMITTEE RECOMMENDATION:

Due to urgent nature of the action this was taken to Council directly for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving a First Amendment to the Memorandum of Understanding with the Stanislaus Council of Governments for a suballocation of Regional Early Action Planning Grant Program Funds; and authorizing the City Manager, or his designee to sign the First Amendment to the Memorandum of Understanding.

Resolution amending Fiscal Year 2024-25 Multi-Year project budget for project 100838 – Modesto General Plan Update in the amount of $219,654.13 to recognize the additional allocation under the Regional Early Action Planning (REAP) Grant, and fund certain housingrelated work associated with the comprehensive General Plan update; and authorizing the City Manager, or his designee, to implement the provisions of this resolution. #13..
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City Council, July 9, 2024
First Amendment to the Memorandum of Understanding for Regional Early Action Plan funding

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Approved by:

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

1. Resolution Authorizing StanCOG REAP MOU Amendment 1

2. Budget Resolution

3. StanCOG MOU for REAP Funding-Executed Agreement 01-11-22

4. REAP MOU Amendment 1 - Modesto
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MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING A FIRST AMENDMENT TO THE

MEMORANDUM OF UNDERSTANDING WITH THE STANISLAUS COUNCIL

OF GOVERNMENTS FOR A SUBALLOCATION OF REGIONAL EARLY
ACTION PLANNING GRANT PROGRAM FUNDS; AND AUTHORIZING THE

CITY MANAGER OR HIS DESIGNEE TO SIGN THE FIRST AMENDMENT TO

THE MEMORANDUM OF UNDERSTANDING
WHEREAS, the Stanislaus Council of Governments (StanCOG) is the Metropolitan Planning Organization (MPO) for the Stanislaus Region, pursuant to State and Federal designation; and
WHEREAS, on February 27, 2020, the State of California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) for the Regional Early Action Planning Grant Program (REAP) to councils of governments and other regional entities with said funds to be released in three packages of funding; and
WHEREAS, on August 14, 2020, HCD approved an initial allocation of $10,218,831 in REAP grant funding to the San Joaquin Valley MPOs; and WHEREAS, on January 11, 2022, by Resolution No. 2022-010, Council approved a Memorandum of Understanding (MOU) with StanCOG for an initial allocation of $161,955.53 which has since been fully requested by the City; and WHEREAS, StanCOG has calculated the City of Modesto’s final suballocation of the San Joaquin Valley MPOs allocation to be $219,654.13; and WHEREAS, StanCOG has prepared a First Amendment to the MOU to document the process whereby the City of Modesto will be reimbursed for eligible grant-funded housing-related work on the comprehensive General Plan update project. #13..
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NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a First Amendment to the Memorandum of Understanding with the Stanislaus Council of Governments for a suballocation of Regional Early Action Planning Grant Program funds.

BE IT FURTHER RESOLVED, that the City Manager, or his designee is hereby authorized to sign the First Amendment to the Memorandum of Understanding, in a form approved by the City Attorney.
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of July, 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
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MODESTO CITY COUNCIL
RESOLUTION NO. 2024-
RESOLUTION AMENDING FISCAL YEAR 2024-25 MULTI-YEAR PROJECT BUDGET FOR PROJECT 100838 – MODESTO GENERAL PLAN UPDATE IN THE AMOUNT OF $219,654.13 TO RECOGNIZE THE ADDITIONAL

ALLOCATION UNDER THE REGIONAL EARLY ACTION PLANNING (REAP)

GRANT AND FUND CERTAIN HOUSING-RELATED WORK ASSOCIATED
WITH THE COMPREHENSIVE GENERAL PLAN UPDATE; AND

AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO IMPLEMENT

THE PROVISIONS OF THIS RESOLUTION
WHEREAS, the Stanislaus Council of Governments (StanCOG) is the Metropolitan Planning Organization (MPO) for the Stanislaus Region, pursuant to State and Federal designation; and
WHEREAS, on February 27, 2020, the State of California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) for the Regional Early Action Planning Grant Program (REAP) to councils of governments and other regional entities with said funds to be released in three packages of funding; and
WHEREAS, on August 14, 2020, HCD approved an initial allocation of $10,218,831 in REAP grant funding to the San Joaquin Valley MPOs; and WHEREAS, on January 11, 2022, by Resolution No. 2022-010, Council approved a Memorandum of Understanding (MOU) with StanCOG for an initial allocation of $161,955.53 which has since been fully requested by the City; and WHEREAS, StanCOG has calculated the City of Modesto’s final suballocation of the San Joaquin Valley MPOs allocation to be $219,654.13; and #13..
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WHEREAS, StanCOG has prepared a First Amendment to the MOU to document the process whereby the City of Modesto will be reimbursed for eligible grant-funded housing-related work on the comprehensive General Plan update project; and WHEREAS, the Fiscal Year 2024-25 Non-Capital Project 100838 – Modesto General Plan Update Budget must be increased by $219,654.13 to recognize grant revenue and increase expenditures.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the amendment of the Fiscal Year 2024-25 non-capital project budget for project 100838 – Modesto General Plan Update in the amount of $219,654.13 to recognize the additional allocation under the Regional Early Action Planning (REAP) grant and fund certain housing-related work associated with the comprehensive General Plan update.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to implement the provisions of this resolution. #13..
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of July, 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
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MEMORANDUM OF UNDERSTANDING
between
STANISLAUS COUNCIL OF GOVERNMENTS (StanCOG),
and

CITY OF MODESTO
FOR

SUBALLOCATION OF REGIONAL EARLY ACTION PLANNING (REAP) FUNDS This Memorandum of Understanding (“MOU”) is dated ____________, 2022, for reference purposes, by and between the Stanislaus Council of Governments, a joint powers authority established under California Government Code section 6500 et seq., (hereinafter “StanCOG”)and the City of Modesto (hereinafter “Sub-Recipient”) for suballocation of Regional EarlyAction Planning (REAP) grant funds. StanCOG and the Sub-Recipient are individually referred to herein as “Party” and may be collectively referred to herein as “Parties”.

RECITALS
A. WHEREAS, the Stanislaus Council of Governments (StanCOG) is the Regional Transportation Planning Agency (RTPA) and Metropolitan Planning Organization (MPO) for the Stanislaus region, pursuant to State and Federal designation; and B. WHEREAS, pursuant to California Health and Safety Code section 50515.02, the State of California Department of Housing and Community Development (“HCD”) made available $125,000,000 in local government planning support grants to regional entities and working groups as outlined by the statute; and
C. WHEREAS, HCD released a Notice of Funding Availability (“NOFA”) for $118,750,000 for the Regional Early Action Planning Grant Program (REAP) to councils of governments and other regional entities with said funds to be released in three packages of funding; and
D. WHEREAS, pursuant to section 50515.02 of the Health and Safety Code, a San Joaquin Valley Multi Agency Working Group was formed in accordance with subdivision (c), consisting of the Fresno Council of Governments, the Kern Council of Governments, the Kings County Association of Governments, the Madera County Transportation Commission, the Merced County Association of Governments, the San Joaquin Council of Governments, the Stanislaus Council of Governments, and the Tulare County Association of Governments, DocuSign Envelope ID: E06E8DC1-E46A-4953-BD7E-67DBB92B30BF January 11,
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representing the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare (the “SJV Working Group”); and
E. WHEREAS, HCD is authorized to provide up to $18,975,000 of REAP grant funds to the members of the SJV Working Group; and
F. WHEREAS, on August 14, 2020, HCD approved an allocation of $10,218,830.75 in grant funds (the “Initial Grant”) to the members of the SJV Working Group; and G. WHEREAS, a portion of the Initial Grant is available to the members of the SJV Working Group and the majority of the REAP Funds will be allocated to the local jurisdictions to help comply with Regional Housing Needs Allocation (“RHNA”) numbers that are developed to update the housing element of the local jurisdictions as well as other planning activities that would increase housing production; and
H. WHEREAS, the Initial Grant will be distributed in three separate funding packages and StanCOG is expected to receive approximately Four Hundred Fifteen Thousand Dollars and 0/100 Cents ($415,000) and One Million, Sixty Five Thousand Dollars and 0/100 Cents ($1,065,000), as part of the first and third funding packages respectively, for a total of approximately One Million, Four Hundred Eighty Thousand Dollars and 0/100 Cents ($1,480,000) to be distributed to the local agencies; and
I. WHEREAS, on March 17, 2021, the StanCOG Policy Board approved by Resolution 20-27, the Regional Early Action Planning (REAP) Suballocation Methodology of funding by percent of population adjusted for a minimum funding floor of Thirty-Five Thousand ($35,000), effectively suballocating approximately One Million, Four Hundred Eighty Thousand, Ninety-Seven Dollars and 57/100 Cents ($1,480,097.57) of the REAP grant funds (“Grant Funds”) to StanCOG’s local member agencies for funding their planning activities that will accelerate housing production and facilitate compliance in implementing the sixth cycle of RHNA; and
J. WHEREAS, the City of Modesto is to be suballocated One Hundred Sixty One Thousand, Nine Hundred Fifty-Five Dollars and 53/100 Cents ($161,955.53) through the REAP Grant Funds as part of the first and third funding packages; and K. WHEREAS, HCD will release the third funding package to the SJV Working Group when it has been demonstrated, to HCD’s satisfaction, with proper invoicing and tracking results, that the local agencies have conducted activities to advance housing-related planning activities and have properly spent funds of the first funding package; and L. WHEREAS, the Parties will amend this MOU or enter into a subsequent MOU to address the third funding package released by HCD; and
M. WHEREAS, StanCOG and its participating local member agencies (subrecipients) shall only use their funds to conduct housing-related planning activities that are eligible according to HCD's requirements, and will advance their housing element update in compliance with the sixth cycle of RHNA; and
DocuSign Envelope ID: E06E8DC1-E46A-4953-BD7E-67DBB92B30BF #13..
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N. WHEREAS, technical assistance for Sub-Recipients conducting their housingrelated planning activities will be provided by StanCOG, or other members of the SJV Working Group through the Valleywide Consultant bench; and
O. WHEREAS, the Sub-Recipient’s selected project manager, in coordination with StanCOG’s selected project manager, will ensure the Scope of Work is performed by the SubRecipient; and P. WHEREAS, the conditions described in this MOU will begin on the Effective Date and shall be completed by June 30, 2023.

NOW THEREFORE, in consideration of the mutual promises, covenants, terms and condition hereinafter contained, the Parties hereto agree as follows:

AGREEMENT

1. Recitals
The recitals above are hereby incorporated in this Memorandum of Understanding as if fully set forth herein.

2. Compliance with Laws:

Sub-Recipient must comply with all applicable Federal, State, local laws, codes, ordinances and regulations. Sub-Recipient must specifically comply with the provisions of California Health and Safety Code Sections 50515 et seq., outlined by California’s Department of Housing and Community Development 2020 Notice of Funding Availability (NOFA) for REAP. Further, Sub-Recipient will require the appropriate debarment certification form from all contractors and Sub-Recipient certifies that it will not knowingly enter into any transaction with a contractor, subcontractor, material supplier, or vendor who is debarred, suspended, declared ineligible, or voluntarily excluded from covered transactions by any Federal or State agency.

3. Scope of Work
Sub-Recipient shall conduct the scope of work described in Exhibit “A”, “Scope of Work.” Sub-Recipient will not be compensated for activities outside the Scope of Work outlined in Exhibit “A”, unless otherwise mutually agreed upon in writing by the Parties.

4. Maximum Contract Amount
The amount to be paid to Sub-Recipient under this MOU will not exceed One Hundred Sixty One Thousand, Nine Hundred Fifty-Five Dollars and 53/100 Cents ($161,955.53), which amount represents Sub-Recipients allocation under HCD’s first funding package, unless agreed upon in advance by the Parties pursuant to a written amendment signed by the authorized signer for each party. In no instance will StanCOG be liable for any payments or costs for work in excess of this amount, nor for any unauthorized or ineligible costs.

DocuSign Envelope ID: E06E8DC1-E46A-4953-BD7E-67DBB92B30BF #13..
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5. Invoices and Progress Reports
A. Not less frequently than quarterly, Sub-Recipient will provide StanCOG with both a written report on the progress made on the Scope of Work (Exhibit “A”) and an invoice for reimbursement. Invoices shall, at a minimum, be for the periods ending March, June, September and December of each fiscal year. Invoices for work completed through June 30 of a fiscal year must be submitted by July 30. Sub-Recipient shall submit written invoices by e-mail to StanCOG at [email protected]. Sub-Recipient shall also provide to StanCOG a copy of its annual progress report that is submitted to HCD annually in April. Sub- Recipient’s failure to comply with any of the reporting requirements in this MOU may impact the ability to receive future REAP Grant Funds.

B. Payments to Sub-Recipient hereunder will be made in arrears. Sub-Recipient shall be paid within thirty (30) days following the receipt and approval of each invoice by StanCOG. Sub-Recipient will submit a detailed and properly documented invoice on its letterhead for reimbursement which invoice will include the following: (i) a description of the work performed, (ii) name of Sub-Recipient and Consultant personnel performing the work; (iii) a detailed accounting of costs incurred, and (iii) evidence that Sub-Recipient has already incurred costs for the Project. Attached as Exhibit “B” is StanCOG’s matrix of required supporting documentation for Sub-Recipient’s invoices. Invoices for expenditures incurred prior to the Effective Date will not be reimbursed.

C. Sub-Recipient shall submit narrative reports indicating percentage of completion with each set of invoices to allow StanCOG’s Project Manager to determine if Sub-Recipient is performing to expectations, is on schedule, is within funding limitations, as well as to communicate interim findings, and to afford occasions for airing difficulties respecting special problems encountered so that remedies can be developed. Attached as Exhibit “C” is StanCOG’s Quarterly Reporting Form.

D. If the Sub-Recipient is seeking reimbursement for indirect costs, they must annually submit an Indirect Cost Allocation Plan (ICAP) or an Indirect Cost Rate Proposal (ICRP) to its cognizant agency for indirect costs in accordance with Title 2 Code of Federal Regulations Part 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The cognizant agency for indirect costs means the agency responsible for reviewing, negotiating, and approving indirect cost allocation plans and indirect cost proposals. The Sub-Recipient must include their estimated indirect cost rate in the project application and provide a copy of the acceptance letter from their cognizant agency for the approved ICAP or ICRP for the current fiscal year. Indirect costs may be sought for reimbursement only after the Sub-Recipient has received ICAP/ICRP approval from its cognizant agency.

E. Sub-Recipient will be notified within ten (10) business days following receipt of its invoice by StanCOG of any circumstances or data identified by StanCOG in Sub-Recipient’s invoice that would cause withholding of approval and subsequent payment. If StanCOG disputes DocuSign Envelope ID: E06E8DC1-E46A-4953-BD7E-67DBB92B30BF #13..
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any portion of a request for payment, StanCOG shall pay the undisputed portion of such request as herein provided and shall promptly notify Sub-Recipient of the amount in dispute and the reason therefore.

F. Sub-Recipient will require its Consultants pay any subconsultants for satisfactorily completed work no later than thirty (30) days of receipt of each payment from the Sub-Recipient, unless a longer period is agreed to in writing.

G. Any costs for which the Sub-recipient receives reimbursement under this MOU that is determined by a subsequent audit or other review by either StanCOG, HCD or other State of California authorities to be ineligible or otherwise unallowable, are to be repaid by the SubRecipient within thirty (30) calendar days of the Sub-Recipient receiving notice of audit findings and penalties or related fees, as determined by HCD or other State authorities (Health and Safety Code section 50515.04(e)). Should the Sub-Recipient fail to reimburse unallowable costs to StanCOG within thirty (30) calendar days of demand, or within such other period as may be agreed between both parties hereto, StanCOG is authorized to withhold future payments due to the Sub-Recipient.

6. Term/Timeline
The term of this MOU shall begin on the “Effective Date” of this MOU which shall be the last date of execution by the parties hereto. All work identified in the Scope of Work must be completed by June 30, 2023, unless terminated earlier as provide herein. No extensions will be granted.

7. Allowable Uses of Grant Funds
A. StanCOG shall not award funds unless it is determined that the Grant Funds for the Sub-Recipient shall be expended in compliance with the 2020 Notice of Funding Availability (NOFA) for the REAP Grant Program pursuant to Division 31, Part 2, Chapter 3.1 of Health and Safety Code, Sections 50515 et seq.

B. Grant Funds shall only be used by Sub-Recipient for housing planning activities approved by StanCOG that are in accordance with the NOFA published by California Department of Housing and Community Development (HCD).

C. Grant Funds may not be used for administrative or staffing costs of persons employed by the Sub-Recipient for activities not related to the eligible housing planning activities, nor may these funds be used for consultants employed by Sub-Recipient for activities that are not related to the eligible housing planning activities.

D. Sub-Recipient shall use no more than three percent (3%) of its total Grant Funds or Two Thousand Five Hundred Dollars ($2,500.00), whichever is greater, for administrative costs and purposes related to eligible activities. For purposes of this MOU, administrative costs are defined as: preparing invoices and supporting documentation; preparing quarterly progress DocuSign Envelope ID: E06E8DC1-E46A-4953-BD7E-67DBB92B30BF #13..
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reports; and participating in project management meetings. Additional funds may be used from other sources solely contributed by the Sub-Recipient to support the Sub-Recipient’s administration of the eligible housing planning activities.

8. Accounting, Audit, Retention and Inspection of Records A. Sub-Recipient, its staff, contractors and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line.

The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment voucher or invoices.

B. Sub-Recipient shall establish a separate ledger account for receipts and expenditure of the Grant Funds and maintain expenditure details in accordance with the Scope of Work, project Schedule and budget.

C. Sub-Recipient shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the course of conducting eligible housing planning activities in accordance with GAAP.

D. Sub-Recipient agrees that StanCOG, HCD and the State of California or their designated representative(s) shall have the right to review, obtain, copy and audit all books, records, accounts, documentation and any other materials, collectively “Records”, pertaining to the performance of this MOU.

E. Sub-Recipient agrees to provide StanCOG or its designee, HCD, or any other State or Federal agency, with any relevant information requested related to the performance of this MOU and will permit StanCOG or its designees access to its premises, upon reasonable notice, during normal business hours, for the purpose of interviewing employees and inspecting and copying such Records for the purpose of determining compliance with any applicable Federal and State laws and regulations.

F. Sub-Recipient agrees to maintain Records for a period of three (3) years after final payment under the MOU or three (3) years from the conclusion or resolution of any and all audits or litigation relevant to this MOU and any amendments, whichever is later. If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the three (3) years after final payment under this MOU, all records must be retained by the Sub-Recipient, its contractors and subcontractors until completion of the action and resolution of all issues which arise from it. Records related to any and all audits or litigation relevant to this Agreement shall be retained for five (5) years after the conclusion or resolution of DocuSign Envelope ID: E06E8DC1-E46A-4953-BD7E-67DBB92B30BF #13..
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the matter. StanCOG and HCD shall have the right to audit Sub-Recipient Records and interview employees.

G. If requested by StanCOG upon expiration of this MOU, Sub-Recipient will deliver all Records relevant to the Scope of Work to be delivered to StanCOG as a depository.

9. Project Manager/Staffing
A. The Project Manager’s for the Parties are identified below. Sub-Recipient may not substitute its Project manager without prior written agreement by StanCOG, which agreement will not be unreasonably withheld. With the exception of notice of termination sent pursuant to Section 13, any notice, report or other communication required by this MOU will be mailed by first-class mail or e-mailed with confirmation of receipt to the respective Project Manager at the addresses identified below.

B. During the term of this MOU, the representative project managers for StanCOG and Sub- Recipient will be:

10. Subsequent MOUs
Sub-Recipient understands and agrees that subsequent MOUs may be necessary to facilitate the distribution of further grant funding from HCD under Division 31, Part 2, Chapter

3.1, section 50515 et seq. of the Health and Safety Code. The Sub-Recipient hereby commits to negotiate the terms and conditions of such subsequent MOUs in good faith, in order to achieve concurrence and ensure execution of same in a timely fashion.

11. Disputes
A. In the event of a dispute among the Parties concerning a question of fact arising under this MOU that is not disposed of by agreement, which involves a decision by HCD’s Housing Policy Development Manager (or the Manager’s designee) who may consider any written or verbal evidence submitted by StanCOG, the decisions of HCD shall be final and not subject to further appeal pursuant to Health and Safety Code Section 50515.04(g). StanCOG shall include in such submittal to HCD any written or verbal evidence submitted to StanCOG by StanCOG Sub-Recipient
Isael Ojeda
Senior Planner
Brad Wall, MPA
Principal Planner
Stanislaus Council of Governments
1111 I Street, Suite 308
Modesto, CA 95354
Telephone: (209) 525-4632
Email: [email protected]
City of Modesto
Community & Economic Development
Department
1010 Tenth Street, Suite 3300
Modesto, CA 95353
Telephone: (209) 577-5273
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the Sub-Recipient as part of this process. Neither the pendency of a dispute nor its consideration by HCD will excuse the Parties from full and timely performance in accordance with the terms of this MOU.

B. For other disputes and except as otherwise provided in this MOU, if a dispute arises between the Parties to this MOU, the Parties hereto agree to use the following procedure to resolve such dispute, prior to pursuing other legal remedies:
i. A meeting shall be held promptly between the Parties that will be attended by the Sub-Recipient’s Project Manager and StanCOG’s Project Manager as well as individuals with decision-making authority (to the extent reasonably possible), who will attempt in good faith to negotiate a resolution of the dispute.

C. If the Parties are unsuccessful in resolving the dispute under B.i., above, they may:
ii. Agree to submit the matter to mediation, binding judicial reference, or a private adjudicator (if all Parties so agree); or
iii. Initiate litigation following advance written notice to the other Party of not less than thirty (30) days.

D. If any Party should bring a legal action against the other to enforce the terms of this MOU, the prevailing Party shall be entitled to recover reasonable attorneys’ fees and costs,as determined by a court of competent jurisdiction in said proceeding.

12. Termination
A. Either Party may terminate this MOU for any reason at any time upon thirty (30) days written notice. The notice for early termination may permit the Sub-Recipient or StanCOG to rectify any deficiency(ies) prior to the early termination date. The Sub-Recipient will submit any requested documents to StanCOG within twenty (20) days of the early termination notice.

B. If either party issues a notice of termination, StanCOG will reimburse SubRecipient for work actually performed up to the effective date of the notice of termination less any compensation to StanCOG for damages suffered as a result of Sub-Recipient’s failure to comply with the terms of this MOU.

C. Sub-Recipient will have the right to terminate this MOU in the event StanCOG is unable to make required payments, including, without limitation, a failure of HCD to appropriate funds. In such event, Sub-Recipient will provide StanCOG with ten (10) days written notice of termination. StanCOG will make payment to Sub-Recipient through the date of termination.

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13. Notices
A. Any notice(s) required pursuant to this MOU shall be made in writing by handdelivery, facsimile, first-class mail (registered or certified, return receipt requested), overnight courier service, or by electronic mail if the Party to be provided notice has provided its email address to the other Party. Notices of changes or amendments to this MOU, disputes, or court action must be served pursuant to non-electronic means provided for in this section.

B. All notices shall be deemed given and effective on the earliest of: (a) the date of transmission if such notice or communication is delivered via facsimile or electronic mail prior to 5:00 p.m. PST on a business day; (b) the next business day if such notice or communication is delivered via facsimile or electronic mail later than 5:00 p.m. PST on a business day; (c) the third business day following the date of mailing if sent by U.S. mail, nationally recognized courier service; or (d) upon actual receipt by the party to whom such notice is personally given.

C. Notices may be provided at the following addresses below. Each Party reserves the right to change its address for purposes of notice by providing written notice to the other Party.

To StanCOG: Stanislaus Council of Governments
1111 I Street, Suite 308
Modesto, CA 95354
Attention: Isael Ojeda
Telephone: (209) 525-4600
Facsimile: (209) 558-7833
Email: [email protected]
To Sub-Recipient: City of Modesto
1010 Tenth Street, Suite 3300
Modesto, CA 95353
Attention: Director of Community and Economic Development Telephone: (209) 577-5273

14. Amendments.

This MOU may be modified, amended, changed, added to, or subtracted from, by the mutual consent of the parties hereto, if such amendment or change is in written form and executed with the same formalities as this MOU and attached to the original MOU to maintain continuity.

15. Insurance
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during this MOU, insurance coverage provided by a California admitted insurer licensed to transact business in California, as least as broad as hereinafter provided, including insurance coverage against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services set forth in Exhibit “A” of this MOU by the SubRecipient or Sub-Recipient’s agents, representatives, employees, or subcontractors as follows:
i. General Liability.

Comprehensive general liability insurance covering bodily injury, personal injury, property damage, products and completed operations with limits of no less than ONE MILLION DOLLARS ($1,000,000). If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to any act by Sub-Recipient under this MOU or the general aggregate limit shall be twice the required occurrence limit.
ii. Automobile Liability Insurance.

If the Sub-Recipient or the Sub-Recipient’s officers, employees, agents, representatives or subcontractors utilize a motor vehicle in performing any of the work or services under this MOU, owned/non-owned automobile liability insurance providing combined single limits covering bodily injury damage with limits of no less than ONE MILLION DOLLARS
($1,000,000) per incident or occurrence, and providing property damage liability of no less than TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000) per incident or occurrence.
iii. Workers’ Compensation Insurance.

Workers’ Compensation Insurance as required by the California Labor Code. In signing this MOU, the Sub-Recipient certifies under section 1861 of the California Labor Code that Sub-Recipient is aware of the provisions of section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake selfinsurance in accordance with the provisions of that code, and that the SubRecipient will comply with such provisions before commencing the performance of the work of this MOU, as necessary.
iv. Professional Errors and Omissions Insurance with coverage limits of not less than One Million Dollars ($1,000,000.00).

B. Deductibles, Self-Insured Retentions, Named Insured. Any deductibles, selfinsured retentions, or name insureds must be declared in writing and approved by StanCOG.

C. Waiver of Subrogation, Additional Insured. The insurance policies are to contain, or be endorsed to contain, the following provisions:

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i. General Liability and Automobile Liability Coverages.

Endorsement providing that the Sub-Recipient’s insurance shall waive all rights of subrogation against StanCOG’s insurers and StanCOG; or the Sub-Recipients’s insurance shall list StanCOG as additional insureds under the insurance policy.
ii. Worker’s Compensation Coverages.

Endorsements providing that the Sub-Recipient’s insurance shall waive all rights of subrogation against StanCOG’s insurers and StanCOG.

D. Other Insurance provisions. The insurance policies are to contain, or be endorsed to contain, the following provisions:
i. General Liability and Automobile Liability Coverages.

Endorsements providing that such insurance is the primary insurance and no insurance of StanCOG will be called upon to contribute to a loss.

The Sub-Recipient’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 Coverage.

Each insurance policy required by this paragraph shall not be altered, suspended, voided, or canceled by either party, or reduced in coverage or in limits except after thirty (30) calendar days’ prior written notice by certified mail, return receipt requested, has been given to StanCOG.

Any failure of Sub-Recipient to comply with reporting provisions of the policies shall not affect coverage provided to StanCOG or StanCOG’s board members, officers, employees, or volunteers.

E. Verification of Coverage. Prior to performing any term or condition of the MOU, Sub-Recipient shall furnish StanCOG with evidence of insurance effecting coverage required by this section.

F. Subcontractors. All insurance coverage for subcontractors shall be subject to all of the insurance and indemnity requirements stated herein.

16. Indemnification
Except for the active negligence or willful misconduct of StanCOG and any of its directors, officers, agents, employees, assigns, and successors in interest, the Sub-Recipient undertakes and agrees to defend, indemnify, and hold harmless StanCOG and any of its directors, officers, agents, employees, assigns, and successors in interest from and against all suits and causes of action, claims, losses, demands and expenses, including, but not limited to, attorney's fees and cost of litigation, DocuSign Envelope ID: E06E8DC1-E46A-4953-BD7E-67DBB92B30BF #13..
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damage or liability of any nature whatsoever, for death or injury to any person, includingStanCOG’s employees and agents, or damage or destruction of any property of either party hereto or of third parties, arising in any manner by reason of the acts, errors or omissions or violations of law by the Sub-Recipient, employees and agents in connection with its activities in pursuing the Project or under this MOU. The Sub-Recipient further agrees to require its Consultant(s) to provide indemnification for StanCOG to the same extent as the Sub-Recipient, in the contract(s) between the Sub-Recipient and its Consultant for work related to this MOU.

17. Independent Contractor, No Joint Venture
The Sub-Recipient and its Consultant(s), officers, employees and agents shall be independent contractors in the performance of this MOU, and not officers, employees, contractors or agents of StanCOG.

18. Assignment
Neither Party shall assign this MOU, or any part thereof, without the written consent of each Party to this MOU, which consent will not be unreasonable withheld. Any assignment without such written consent shall be void and unenforceable.

19. Successors
This MOU shall bind and benefit the parties hereto and their heirs, successors and permitted assigns.

20. Entire Agreement
This MOU contains the entire agreement of the parties and no representations, inducements, promises, or agreements otherwise between the parties not embodied herein or incorporated herein by reference shall be of any force or effect. Further, no term or provision hereof may be changed, waived, discharged or terminated unless the same is in writing executed by the parties. Sub-Recipient and StanCOG represent that in entering this MOU, they have not relied on any previous representations, inducements, or understandings of any kind or nature.

21. Severability
If any portion of this MOU or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any Federal, State or local statutes, ordinance, or regulations, the remaining provisions of this MOU or application thereof shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this MOU are severable.

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22. Governing Law
All questions pertaining to the validity and interpretation of this MOU shall be determined in accordance with the laws of the State of California applicable to agreements made and to be performed within the State. Any dispute not resolved by informal means between the parties to this MOU may be adjudicated in a court of law under the laws of the State of California.

23. Waiver of Default
Waiver of any default by either party to this MOU shall not be deemed a waiver of any subsequent default. Waiver or breach of any provision of this MOU shall not be deemed to be a waiver of any other or subsequent breach and shall not be construed to be a modification of the terms of this MOU unless modified pursuant to the terms of this MOU.

24. Counterparts and Electronic Signatures
A. This MOU may be executed in one or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument.

B. Each Party agrees that this MOU and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this MOU or such other documents are the same as handwritten signatures for purposes of validity, enforceability and admissibility.

25. Authority
The Sub-Recipient warrants and certifies that it possesses the legal authority to execute this MOU and to undertake administration of the proposed Project, and that a resolution, motion, or similar action has been fully adopted or passed, as an official act of the Sub-Recipient’s governing body.
***Signatures contained on next page***
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IN WITNESS WHEREOF, this MOU has been executed by the parties hereto and shall become effective when executed by both parties.

STANISLAUS COUNCIL OF
GOVERNMENTS, a joint powers agency

CITY OF MODESTO,
a municipal corporation

ROSA DE LEON PARK
Its Executive Director
Date
_____________________________________
JOSEPH P. LOPEZ
Its City Manager
______________________________________
Date
APPROVED AS TO FORM:

MONICA STREETER,
General Counsel
APPROVED AS TO FORM:
_____________________________________
JOSE M. SANCHEZ,
City Attorney
ATTEST:
(seal)
_____________________________

DANA SANCHEZ,
Interim City Clerk
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1/26/2022
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Exhibit A: Scope of Work
Project Description
Local Agency: City of Modesto
Project/Activity Name: Comprehensive General Plan Update Project Location: Modesto
Project Housing Nexus:

Check all that apply.

X Reduce Time
X Reduce Development
Costs
X Infrastructure Capacity
X Impact on housing supply and/or affordability
X Increase approval certainty and/or streamline
entitlements
X Other: Incorporate Pro-Housing Polices into General
Plan
Project Goal Statement:
(Describe the impacts of your project on the acceleration of housing production.) The policy framework described under Project Description, below, will streamline and accelerate housing production through implementation of the new General Plan, such as related zoning code amendments that will translate the policies into actionable and implementable standards that would otherwise not exist. It is also important to note that the Environmental Justice element will also specifically promote and facilitate the production of more affordable housing units than would otherwise occur.

Project Description:
(Include a high-level summary of your project.)
The comprehensive General Plan update will add new goals, policy language and graphics that will encourage and facilitate accelerated production of housing. Topical policy content related to neighborhoods, transportation, infrastructure and utilities, mixed-use corridors, and parks / recreation – plus a revised implementation framework – will be developed. The environmental impact report prepared for the project will also serve to streamline and accelerate production of new housing units by establishing the CEQA documentation for at least a portion of the overall entitlement process at the project level.

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Implementation:
(Summarize plans for adoption or implementation or next steps. If the project is one component of a larger effort, such as a study that will support fee reductions, please specify how this project fits into the larger housing effort.)
Simplified zoning processes and streamlined environmental review, as described above, are two examples of implementation mechanisms that will facilitate increased housing production. In addition, the General Plan update is expected to reduce or eliminate certain existing process requirements that are related to entitlement and annexation of new growth (“greenfield”) areas, thereby reducing both associated costs and timeframes. Finally, the new EIR will facilitate streamlined CEQA review for residential infill development projects.

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Exhibit A: Scope of Work
Project Tasks, Deliverables, Timeline and Budget Tracking Tas
k #
Detailed Description of
Tasks /
Milestones
Task
Timeline (in
months and
year)
Deliverable(s) including
delivery date
Total
Budget
REAP
Funding
Other
Funds
(include
source)
1 Describe Task 1. Progress report and
invoicing (quarterly)

2. Copy of Annual Progress
Report submitted to HCD
(annually in April)

3. Summary of potential
housing units impacted by
project (final deliverable
upon project completion)
A Public Engagement 8-12 months Summary of public workshops / events / input, including copy of
notes, activities and documents, as
applicable (June 2022)
$500,000 $177,284 $322,716
(City General
Fund)
B Prepare draft General Plan update 12-16 months Draft General Plan update as described on previous page (June
2023)
$900,000 $300,000 $600,000
(City General
Fund)
C Prepare draft EIR 12 months Draft EIR as described on previous page (December 2023)
$300,000 $100,000 $200,000
(City General
Fund)
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Exhibit B: Sample Invoice Report Form
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Exhibit C: Quarterly Reporting Form
Stanislaus Council of Governments (StanCOG)
REAP Suballocation MOU Quarterly Report
Regional
Entity
Local Agency Activity Name
StanCOG [Insert name]
California Health and Safety Code Sections 50515 to 50515.05, established for the purpose of providing regions and jurisdictions with funding for housing planning activities that process improvements to accelerate housing production and facilitate compliance to implement the sixth cycle of the Regional Housing Need Assessment (RHNA)

BRIEF ACTIVITY
DESCRIPTION:
1) BRIEFLY SUMMARIZE THE STATUS OF THE ACTIVITIES
A) Describe Tasks
B) Outline which HCD eligible activity above Activity falls under 2) STATE WHAT STILL NEEDS TO BE COMPLETED ON THIS ACTIVITY 3) DESCRIBE HOW MUCH FUNDING WILL BE USED AND FOR WHAT
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A) Identify any contracts initiated
4) PROVIDE SCHEDULE OF ACTIVITIES
5) PROVIDE CONTACT INFO FOR PROJECT MANAGER/LEAD STAFF PERSON(S) 6) AMENDMENT
A) If any changes to project scope, cost, and/or schedule have occurred fill out this section, if not then skip
7) PROVIDE SIGNATURE AND DATE BELOW
PERSON PREPARING THIS REPORT (please
type or print)
PHONE and EMAIL:

APPROVAL AUTHORITY (signature)
Date:

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Amendment 1 to REAP MOU
AMENDMENT 1

MEMORANDUM OF UNDERSTANDING
between

STANISLAUS COUNCIL OF GOVERNMENTS
and

CITY OF MODESTO
for

SUBALLOCATION OF REGIONAL EARLY ACTION PLANNING (REAP) FUNDS THIS AMENDMENT 1 to the Memorandum of Understanding is made and entered into between the Stanislaus Council of Governments (StanCOG) and the City of Modesto (“SubRecipient”) and is dated June 1, 2024, for reference purposes.

Recitals
A. WHEREAS, StanCOG and Sub-Recipient have entered into that certain Memorandum of Understanding, dated January 26, 2022, with a Scope of Work completion date of June 30, 2023 (the “MOU”).

B. WHEREAS, the parties desire to amend the MOU to reflect the State of California Department of Housing and Community Development (“HCD”) has extended the time in which the MOU Scope of Work can be completed.

C. WHEREAS, the MOU identifies HCD will release a third REAP funding package and that an amendment to the MOU would be necessary to allocate that funding to Sub-Recipient.

D. WHEREAS, the parties desire to amend the MOU to identify the new timeline in which the MOU Scope of Work must be completed and to allocate the third round of REAP funding.

NOW, THEREFORE, in consideration of the mutual promises, covenants, terms, and conditions hereinafter contained, the parties hereto agree as follows:

AGREEMENT

1. Section 4, Maximum Contract Amount, is hereby amended to read in full as follows:

4. Maximum Contract Amount
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Amendment 1 to REAP MOU
Hundred Sixty One Thousand, Nine Hundred Fifty Five and 53/100 Dollars ($161,955.53) which amounts represents Sub-Recipients allocation under HCD’s first funding package, and Two Hundred Nineteen Thousand, Six Hundred Fifty Four and 13/100 Dollars ($219,654.13), which amount represents Sub-Recipients allocation under HCD’s third funding package, unless agreed upon in advance by the Parties pursuant to a written amendment signed by the authorized signer for each Party. In no instance will StanCOG be liable for any payments or costs for work in excess of this amount, nor for any unauthorized or ineligible costs. Nor shall StanCOG be liable for any amounts if HCD fails to appropriate funds.

2. Section 6, Term/Timeline, is hereby amended to read in full as follows:

6. Term/Timeline
The term of this MOU shall begin on the “Effective Date” of this MOU, which shall be the last date of execution of the MOU by the parties hereto. All work identified in the Scope of Work must be completed by November 30, 2024, unless terminated earlier as provided herein. No extensions will be granted to complete the Scope of Work unless authorized by HCD.

3. Section 9.B., Project Manager/Staffing, is hereby amended in part to update the StanCOG Project Manager:

StanCOG
Elisabeth Hahn
Deputy Executive Director of Planning

Stanislaus Council of Governments, Suite 308
Modesto, CA 95354
Telephone: (209) 525-4600
Email: [email protected]

4. Section 13.C., Notices, is hereby amended in part to update the StanCOG contact for purposes of Notice:

To StanCOG: Elisabeth Hahn
Deputy Executive Director of Planning
Stanislaus Council of Governments, Suite 308
Modesto, CA 95354
Telephone: (209) 525-4600
Email: [email protected]
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Amendment 1 to REAP MOU

5. Except as modified by this Amendment, the MOU shall remain unchanged and is in full force and effect.

6. The terms and provisions of this Amendment are incorporated by reference into the MOU as though set forth in full therein.

7. This Amendment may be executed in any number of counterparts with the same effect as if the parties had all signed the same document, and which together shall constitute one and the same instrument.

8. Each party agrees that this Amendment and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Amendment or such other documents are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility.

IN WITNESS WHEREOF, this Amendment has been executed by the parties hereto and shall be effective when executed by both parties.

STANISLAUS COUNCIL OF

GOVERNMENTS (STANCOG)
By: _________________________________
Rosa De León Park
Executive Director
Date:

CITY OF MODESTO
By: _________________________________
Joseph P. Lopez
City Manager
Date:

APPROVED AS TO FORM:

By: _________________________________
Monica Streeter
General Counsel
APPROVED AS TO FORM:

By: _________________________________
Jose M. Sanchez
City Attorney

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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 09, 2024
Date: June 18, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Amendment to Agreement with Visit Modesto for Transient Occupancy Tax and Amendment to Agreement for Modesto Tourism Marketing District Owners’ Association Agreement
CONTACT: Trevin Barber, Economic Development Manager,
[email protected], 209-860-1251
DESCRIPTION:

Consider a one-year extension of the Transient Occupancy Tax Funding Agreement and the Modesto Tourism Marketing District Owners’ Association Agreement with Visit Modesto for Tourism Marketing Services. (Funding Source: General Fund) STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s Strategic Plan Area of Focus for Economic Vitality:
 Goal F: Build and promote a recognizable and desirable identify for the City of Modesto BACKGROUND:

Transient Occupancy Tax Funding Agreement Chronology
In June 2003, by Resolution No. 2003-316, Council approved an Agreement with the Modesto Convention and Visitors Bureau, Inc., a non-profit corporation (the Bureau), to promote and market Modesto for meetings, conventions, tour groups and visitor activities. In August 2005, by Resolution No. 2005-382, Council approved a new agreement with the Bureau, which was extended on July 6, 2010, by Resolution No. 2010-285 and provided the Bureau with 13.33% of the annual Transient Occupancy Tax (TOT or Tax) receipts up to $2,475,613 and an additional 5% of receipts greater than $2,475,613.

In June 2015, the agreement with the Bureau expired and by Resolution Nos. 2015-224 through 2015-227, the duties, functions, and staff of the Bureau were transferred to the Community and Economic Development Department while the Destination Modesto Task Force convened and made recommendations regarding the City’s destination assets and facilities.

In March 2018, by Resolution No. 2018-107, the Council accepted an informational report on the Destination Modesto Task Force’s accomplishments as well as plans to restore the Bureau as an independent agency. This included hiring a consultant, StoryPowered, to oversee the #14..
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Bureau transition, entering into a new agreement with the Bureau to provide Transient Occupancy Tax funding, and appointing the City Council as the Bureau’s Interim Board of Directors. To begin the transition, a Tourism Business Plan was completed and presented to the Economic Development Committee on August 8, 2018. Staff then negotiated an agreement with Civitas to establish the Modesto Tourism and Marketing District. In 2019, the Modesto Convention & Visitors Bureau (now Visit Modesto) was officially re-established as an independent agency and proposed a Transient Occupancy Tax Funding Agreement in 2019.

Staff recommended approval of the new funding agreement because it proposed accomplishing several objectives. More specifically, it simplified the methodology for payment; created a deferred maintenance and capital improvement fund to address ongoing maintenance and capital improvement needed, estimated at $1.6 million, for the Modesto Centre Plaza facility; and it provided provisions for future TOT increases.

The City Council approved the 2019-2024 Transient Occupancy Tax Funding Agreement (TOT Agreement) with the Bureau on February 26, 2019. Since that time, the agreement was amended to accommodate for the economic impacts of the COVID-19 Pandemic and also a technical change to the name of the recipient for the capital improvements funding.

In December 2023, the Bureau formally changed its name to Visit Modesto, Inc. (“Visit Modesto”).

Summary of Transient Occupancy Tax Funding Agreement
Original 2019 TOT Agreement
 Term: 5 Years
 Formula: 15% through February 1, 2020, then 13.33% of the annual TOT to Visit Modesto & 30% of TOT exceeding $2.85 M to fund deferred maintenance at Modesto Centre Plaza
First Amendment – COVID Adjustment
 Formula: 13.33% of the annual TOT to Visit Modesto less adjustments based on project economic forecasts for each subsequent fiscal year
 Only implements for 20-21($56,059)
Second Amendment – Corrected for Clerical Error
 Section 6 – 30% of TOT exceeding $2.85 M to fund deferred maintenance at Modesto Center Plaza – not to Visit Modesto
The Modesto Tourism Marketing District
Visit Modesto is also the manager of The Modesto Tourism Marketing District (District or MTMD), which is a benefit assessment district proposed to continue a revenue source to help fund marketing and sales promotion efforts for certain Modesto lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses. The renewed District includes all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Modesto. #14..
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Lodging business owners decided to renew the District in order to continue a revenue source devoted to marketing Modesto as a tourist, meeting, and event destination. The District was renewed by the City Council on May 14, 2024, by Resolution number 2024-170. The District is anticipated to receive approximately $430,540 on an annual basis for promotion of travel and tourism specific to Modesto.

Tourism Marketing Districts (TMDs or districts) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within a district fund the district, and those funds are used to provide services that are desired by and benefit the lodging businesses within the district.

Tourism Marketing Districts benefits:
 Funds cannot be diverted for other government programs.  They are customized to fit the needs of each destination.  They allow for a wide range of services, including destination marketing, tourism promotion, and sales lead generation.
 They are designed, created, and governed by those who will pay the assessment.  They provide a stable funding source for tourism promotion.

In California, Tourism Marketing Districts are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (‘94 Law). This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between Tourism Marketing Districts and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the Tourism Marketing Districts.

In Accordance with the ’94 Law Streets, Highway Code Section 366511, and the District Management District Plan the Visit Modesto was designated as both the Owners’ Association and as the entity responsible for managing the operations of the District. The Highway Code Section 36651 also requires a contract between the two parties—as such the City entered into a contract with the Bureau in 2020 shortly after establishing the District in 2019 called the Modesto Tourism Marketing District Owner’s Association Agreement (OA Agreement). The OA Agreement terminates on June 30, 2024.

DISCUSSION:

The current TOT Agreement and OA Agreement are slated to expire June 30, 2024. Staff have worked closely with Visit Modesto to receive the necessary documents and audit reports outlined in the agreements. Staff are recommending extending the Visit Modesto agreement for another year with the current terms outlined below. Because gathering the necessary documents took longer than expected Visit Modesto requested additional time to review the long-term agreement. Therefore, staff is proposing to enter a one year extensive of the existing agreements effective July 1st while continuing discussions with Visit Modesto on a longer-term agreement.
1 California Streets and Highways Code § 36651 (2023)
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Separately, the Council renewed the District for a ten-year period on May 14, 2024 by Resolution 2024-170. The annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue for City ten years.

The City is recommending a one-year extension to align the administration of the District with the same timeframe as the TOT Agreement as we continue discussions for a longer agreement.

There will be no changes to the terms and conditions of either the OA or the TOT Funding Agreement as part of the one-year extension.

The City will receive a fee of up to three percent (3%) of the amount collected to cover its costs of administration. The District is projected to contribute about 45% (or $384,982) of Visit Modesto’s ongoing revenue in Fiscal Year 2024, while TOT is projected to contribute about 55% (or $468,347).

The Modesto Tourism Marketing District Fee Rebate
In fiscal year 2022, the District Committee adopted the Modesto Tourism District Fee Rebate Program, which aims to support hotels that accept Community Housing and Shelter Services (CHSS) vouchers. Community Housing and Shelter Services (CHSS) is a primary agency in Stanislaus County, providing emergency shelter to families through motel voucher programs.

These vouchers are intended to transition families and individuals from temporary emergency shelter or motel stays into permanent rental housing. CHSS also assists low-income households in obtaining permanent, affordable housing and helps those at risk of homelessness. By participating, hotels contribute to the community by providing emergency shelter to vulnerable populations. Hotels can apply to receive a limited rebate on certain fees or taxes related to tourism and lodging. The goal is to encourage hotels to continue supporting CHSS and contribute to the well-being of the community. To date the District has had two hotels that requested the rebate: Modesto Hotel requested a rebate once and was reimbursed, and Apex Inn applies monthly and receives a reimbursement.

As a Tourism marketing District, Visit Modesto’s mandate is to “put heads in beds,” and an objective value based on fiscal impact is appropriate:
• Modesto’s TOT increased by $635K (22%) in the heart of the pandemic, 2021-22, beyond the best pre-pandemic year.
• Since the 2018/19 Fiscal Year, total TOT revenue has increased by over 21% • Spending on tour and travel related business has increased by over 24% (Dean Runyan Associates reports)
FISCAL IMPACT:

Approving the renewal maintains the same contribution rate for Visit Modesto for one year.

The City’s TOT contributions are expected at $468,347, approximately 55% of Visit Modesto’s funding. The TOT Contribution is from the General Fund. Separately from the TOT contribution the Modesto Tourism Marketing District is projected to contribute 45% (or $384,982) of Visit Modesto’s ongoing revenue in Fiscal Year 2024.
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City Council, July 9, 2024
Agreement with Visit Modesto for Transient Occupancy Tax and Modesto Tourism Marketing District Funding

Page 5 of 5 ends

COMMITTEE ACTION:

This item is a renewal of an already existing agreement, therefore was taken directly to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving a one-year extension of the Transient Occupancy Tax Funding Agreement with Visit Modesto, Inc. for Convention and Tourism Services, and authorizing the City Manager, or his designee, to execute the Agreement.

Resolution approving a one-year extension of the Modesto Tourism Marketing District Owners’ Association Agreement with Visit Modesto, Inc. for Convention and Tourism Services, and authorizing the City Manager, or his designee, to execute the Agreement.

Approved by:

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

1. Resolution Tax Funding

2. Resolution Funding Owner’s Association Agreement

3. Visit Modesto Transient Occupancy Tax Funding Agreement

4. Modesto Tourism Marketing District Owners’ Association Agreement

5. Modesto Tourism Marketing District Management District Plan #14..
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07/09/2024/CED/JHill/Item # 1 2024-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-XX

RESOLUTION APPROVING A ONE-YEAR EXTENSION OF THE TRANSIENT OCCUPANCY TAX FUNDING AGREEMENT WITH VISIT MODESTO, INC.

FOR CONVENTION AND TOURISM SERVICES, AND AUTHORIZING THE

CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT WHEREAS, the purpose of Visit Modesto is to attract visitors to the area by promoting and marketing Modesto and to provide coordination and leadership for the tourism industry, and
WHEREAS, the City has previously provided funding to Visit Modesto (formerly known as Modesto Convention and Visitor’s Bureau), and is willing to continue to provide certain funding to Visit Modesto, and
WHEREAS, the City imposed a Transient Occupancy Tax (“TOT”) on the privilege of occupying a hotel on a transit basis, pursuant to Article 6 of Title 8 of the Modesto Municipal Code, and
WHEREAS, the City and Visit Modesto entered into a TOT Funding Agreement dated July 1, 2019, and amended on July 14, 2020, and amended again on September 27, 2022; and
WHEREAS, the public purpose in providing such funding is the economic benefit that accrues to businesses and citizens of Modesto as a result of Visit Modesto’s promotion and marketing of Modesto for meetings, conventions, tour groups, and other visitor activities, and.

WHEREAS, the City desires to extend the term of the TOT Funding Agreement by one year.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto #14..
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07/09/2024/CED/JHill/Item # 2 2024-XX
that it hereby approves a one-year extension of the Transient Occupancy Tax Funding Agreement with Visit Modesto, Inc. for convention and tourism services to extend the term of such agreement by one year, to June 30, 2025.

BE IT FURTHER RESOLVED, that the City Manager or his designee is authorized to execute the agreement, in a form approved by the City Attorney.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of July, 2024, by Councilmember, who moved its adoption, which motion being duly seconded by , was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers: None
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST: _____________________________

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

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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07/09/2024/CED/JHill/Item # 1 2024-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-XX

RESOLUTION APPROVING A ONE-YEAR EXTENSION OF THE MODESTO TOURISM MARKETING DISTRICT OWNERS’ ASSOCIATION AGREEMENT WITH VISIT MODESTO, INC. FOR CONVENTION AND TOURISM

SERVICES, AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE,

TO EXECUTE THE AGREEMENT
WHEREAS, on May 14, 2024, the City Council adopted Resolution Number 2024-170, (the “Resolution), renewing the Modesto Tourism Marketing District (“MTMD”) for a ten-year term in accordance with the provisions of the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., (the “1994 Law”), and
WHEREAS, the Visit Modesto (formerly known as Modesto Convention and Visitor’s Board) was designated in the Resolution and MTMD Management District Plan as the Owners’ Association in accordance with Streets and Highways Code Section 36612, and as the entity responsible for managing the operations of the MTMD, and WHEREAS, the Streets and Highways Code section 36651 requires a contract between the City and the Owners’ Association, and
WHEREAS, on May 14, 2024, by Resolution Number 2024-170, the Modesto City Council approved the MTMD agreement which authorized Visit Modesto to provide marketing and promotional programs intended to increase hotel room night sales at all hotels that remit an MTMD assessment, and
WHEREAS, the City desires, and Visit Modesto agrees, to continue to have Visit Modesto provide services to the City on the terms and conditions set forth in this Agreement, and the parties desire to extend the term of the existing agreement by one year.
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07/09/2024/CED/JHill/Item # 2 2024-XX
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a one-year extension of the Modesto Tourism Marketing District Owners’ Association Agreement with Visit Modesto, Inc. for convention and tourism services to extend the term of such agreement by one year, to June 30, 2025.

BE IT FURTHER RESOLVED, that the City Manager or his designee is authorized to execute the agreement, in a form approved by the City Attorney.

AYES: Councilmembers: None
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST: _____________________________

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

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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1 THIRD AMENDMENT TO TRANSIENT OCCUPANCY TAX FUNDING AGREEMENT This Third Amendment to the Transient Occupancy Tax Funding Agreement (the “Third Amendment”) is entered into as of __________________, 2024 (the “Effective Date”), by and between the CITY OF MODESTO, a California municipal corporation, hereinafter referred to as "City", and the VISIT MODESTO, INC., a California non-profit corporation, hereinafter referred to as "Visit Modesto".

RECITALS
A. The City and the Modesto Convention and Visitors Bureaus (“CVB”) previously entered into that certain Transient Occupancy Tax Funding Agreement dated July 1, 2019 (the “Agreement”)
B. The purpose of the Agreement was for the City to provide certain funding to the CVB for the public purpose and economic benefit that accrues to businesses and citizens of Modesto as a result of CVB’s promotion and marketing of Modesto for meetings, conventions, tours, and other visitor activities.

C. The City and CVB entered into a First Amendment to the Agreement dated July 14, 2020 and a Second Amendment to the Agreement dated September 27, 2022, making certain changes to the terms and conditions of the Agreement.

D. CVB previously changed its name to Visit Modesto.

E. The City and Visit Modesto desire to extend the term of the Agreement by an additional year.

NOW, THEREOFROE, the City and Visit Modesto Agree as follows:

1. Recitals. The above recitals are true and correct, and are incorporated into this First Amendment by reference.

2. Term. Section 16 of the Agreement, “Term”, is hereby amended in its entirety to read as follows:
“The term of this Agreement shall commence on July 1, 2019, and end on June 30, 2025, unless sooner terminated as provided for herein.”

3. Name Change. All references to “CVB” in the Agreement shall be considered references to “Visit Modesto”.

4. Effect. Except as explicitly amended by this Third Amendment, all other terms and conditions of the Agreement, as previously amended by the First Amendment and Second Amendment, shall remain in full force and effect.
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2 IN WITNESS WHEREOF, the CITY, a Municipal Corporation, has authorized the execution of this THIRD AMENDMENT TO THE TRANSIENT OCCUPANCY TAX FUNDING AGREEMENT in duplicate by its City Manager and attestation by its City Clerk (under authority of Resolution No. adopted by the Council of the City of Modesto) on the ____ day of _________, and Visit Modesto, Inc., has caused this Agreement to be duly executed. #14..
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1 FIRST AMENDMENT TO THE MODESTO TOURISM MARKETING DISTRICT OWNERS’ ASSOCIATION AGREEMENT
This First Amendment to the Modesto Tourism Marketing District Owners’ Association Agreement (the “First Amendment”) is entered into as of _________________, 2024 (the “Effective Date”) by and between the City of Modesto, a California municipal corporation (“City”) and Visit Modesto, Inc., a California nonprofit corporation (“Visit Modesto”), collectively referred to as the “Parties.”

WITNESSETH
WHEREAS, on June 25, 2019, the City Council adopted Resolution Number 2019-310, creating the Modesto Tourism Marketing District (“MTMD”) in accordance with the provisions of the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., (the “1994 Law”); and
WHEREAS, the Modesto Convention and Visitors Bureau (“CVB”) was designated as the Owners’ Association in accordance with Streets and Highways Code Section 36612, and as the entity responsible for managing the operations of the MTMD; and WHEREAS, the Streets and Highways Code section 36651 requires a contract between the City and the Owners’ Association; and
WHEREAS, the City and CVB previously entered into that certain Modesto Tourism Marketing District Owners’ Association Agreement dated January 28, 2020 (the “Agreement”); and
WHEREAS, the CVB previously changed its names to Visit Modesto; and WHEREAS, on May 14, 2024, the City Council adopted Resolution Number 2024-____, to renew the MTMD for an additional 10 year term and designate Visit Modesto as the Owners’ Association responsible for continuing to manage the operations of the MTMD in accordance with the 1994 Law; and
WHEREAS, the Parties desire to extend the term of the existing Agreement for one (1) year to provide the Parties with additional time to negotiate a new long-term agreement pursuant to the 1994 Law.

NOW, THEREFORE, the Parties agree as follows:

1. Recitals. The above recitals are true and correct, and are incorporated into this First Amendment by reference.

2. Term. Section 1 of the Agreement, “Term”, is hereby amended in its entirety to read as follows:
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2 “The term of this Agreement shall begin on January 28, 2020 and end on June 20, 2025 or, if the MTMD is disestablished, the effective date of MTMD disestablishment.”

3. Name Change. All references to “CVB” in the Agreement shall be considered references to “Visit Modesto”.

4. Management Plan. All references to the “Management Plan” in the Agreement shall be references to the Management Plan approved by the City Council pursuant to Resolution Number 2024-____.

5. Effect. Except as explicitly amended by this First Amendment, all other terms and conditions of the Agreement shall remain in full force and effect. #14..
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3 IN WITNESS WHEREOF, the CITY, a Municipal Corporation, has authorized the execution of this MODESTO TOURISM MARKETING DISTRICT OWNERS’ ASSOCIATION AGREEMENT in duplicate by its City Manager and attestation by its City Clerk (under authority of Resolution No. adopted by the Council of the City of Modesto) on the day of , and Visit Modesto, Inc., has caused this Agreement to be duly executed. #14..
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April 11, 2019
R

MODESTO TOURISM MARKETING DISTRICT

MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
2024-2034
January 10, 2024
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CONTENTS
I. OVERVIEW.......................................................................................................................................... 3 II. BACKGROUND................................................................................................................................. 5 III. ACCOMPLISHMENTS ..................................................................................................................... 6 IV. BOUNDARY........................................................................................................................................ 8 V. ASSESSMENT BUDGET AND SERVICES..............................................................................10 A. Annual Service Plan.......................................................................................................... 10 B. Annual Budget .................................................................................................................. 11 C. California Constitutional Compliance .............................................................................. 13 D. Assessment........................................................................................................................ 15 E. Interest and Penalties ........................................................................................................ 16 F. Time and Manner for Collecting Assessments................................................................. 16 VI. GOVERNANCE ...............................................................................................................................17 A. Owners’ Association......................................................................................................... 17 B. Brown Act and California Public Records Act Compliance ............................................ 17 C. Annual Report................................................................................................................... 17 APPENDIX 1 – LAW ....................................................................................................................................18 APPENDIX 2 – ASSESSED BUSINESSES..............................................................................................31 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
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MTMD Management District Plan 3
January 10, 2024
I. OVERVIEW
Developed by Visit Modesto, Inc. (VM) and Modesto lodging businesses, the Modesto Tourism Marketing District (MTMD) is an assessment district proposed to continue to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The MTMD was created in 2019 for a four (4) year and eleven (11) month term. VM, Modesto lodging businesses, now wish to renew the MTMD for an additional ten (10) year term.

Location: The renewed MTMD includes all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Modesto (referred to herein as “assessed businesses”), as shown on the map in Section IV.

Services: The MTMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing and sales promotions will increase demand for overnight tourism and market payors as tourist, meeting, and event destinations, thereby increasing demand for room night sales.

Budget: The total MTMD annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $430,540. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, as businesses open and close, and if assessment rates are increased as detailed in Section V.

Cost: The annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on:
stays of more than twenty-seven (27) consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; stays by any officer or employee of the United States Government, or of a federal credit union, or of a state, county, city or other domestic public entity who pays rent in the discharge of official government business; and stays by any officer or employee of a bank or insurance company who pays rent in the discharge of official bank or insurance company business.

During the MTMD’s ten (10) year term, upon the recommendation of the TMD Committee and approval by the Modesto City Council, the assessment rate may be increased by the Owners’ Association to a maximum rate of three percent (3%) of gross short-term sleeping room rental revenue for assessed businesses as described in Section V. The increase in any year shall not exceed one-half of one percent (0.50%) of gross short-term sleeping room rental revenue as detailed in Section V. #14..
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MTMD Management District Plan 4
January 10, 2024
……………………………………………………..

Collection: The City of Modesto (City) will be responsible for collecting the assessment (including any delinquencies, interest, and penalties) from each assessed business located in the boundaries of the MTMD. As the tax administrator, the City shall have the flexibility to determine and set the assessment collection schedule (monthly/quarterly). The City shall take all reasonable efforts to collect the assessments from each assessed business.

Duration: The renewed MTMD will have a ten (10) year life, beginning July 1, 2024, or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the MTMD may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if business owners support continuing the MTMD programs. Once per year, beginning on the anniversary of MTMD formation, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on MTMD termination.

Management: With the approval of the Modesto City Council, Visit Modesto, Inc. (VM) shall continue to serve as the MTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan and must provide annual reports to the City Council. VM shall create a TMD Management Committee comprised of lodging business owners paying the assessment. The TMD Management Committee shall be tasked with determining how MTMD funds are spent within the designated programs in this Plan, subject to final approval by VM’s Board.
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MTMD Management District Plan 5
January 10, 2024
II. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model –Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas, and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TMD. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.

California’s TMDs collectively
raise over $500 million
annually for local destination
marketing. With competitors
raising their budgets, and
increasing rivalry for visitor
dollars, it is important
that Modesto lodging
businesses continue to invest
in stable, commerce-specific
marketing programs.

TMDs utilize the efficiencies
of private sector operation in the market-based promotion of tourism districts. TMDs allow lodging business owners to organize their efforts to increase commerce. Lodging business owners within the TMD pay an assessment and those funds are used to provide services that increase commerce.

In California, most TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TMDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created, and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. #14..
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MTMD Management District Plan 6
January 10, 2024
III. ACCOMPLISHMENTS

1. TOT Revenue
• Since the 2018/19 Fiscal Year, total TOT (Transient Occupancy Tax) revenue has increased by over 21%
• In marketing spending on tour and travel related business has increased by over 24% (DRA reports)

2. Pandemic Revenue
Throughout the pandemic, the Modesto Hospitality market achieved the best results in the Central Valley. In the fiscal year 2021-22, the market performance for Modesto far exceeded all cities of the Central Valley in Occupancy and RevPAR resulting in a record year for TOT at $3.6M. More importantly, in the fiscal year ending June 30, 2020, after 90 days of a global standstill, the TOT performance in Modesto exceeded the best year in collection history (2018-19). All these achievements occurred while the global travel industry was in constant flux.

More importantly, compared to the Central Valley’s largest cities while experiencing the reduced room count, Modesto outperformed every city in pre-pandemic v post-pandemic performance for 2022-23 in both Occupancy and RevPAR. Note that while all cities experienced a loss in occupancy, Modesto had the lowest variance and was the only city to GROW in RevPAR.

3. February/March Growth
Upon inception, the Visit Modesto team committed to the MTMD that ‘shoulder periods’ would be the primary focus of efforts to grow occupancy & RevPAR. The first initiative was launched in February 2020, the Almond Blossom Cruise, for the February/March season with a unique Agricultural Tourism and a long-drive market-stay-overnight angle. The results have been incredible, though a global pandemic almost brought tourism to a grinding halt starting in February of 2020.

The results for RevPAR performance are below compared to pre-pandemic levels; REVPAR 2019 2020 2021. 2022. 2023.

February $64.27 $66.44 $66.80 $77.53 $83.17
March $71.28 $49.91* $77.84 $82.80 $79.60
*Global quarantines began in March 2020
The end result is incredible with a 29.5% increase for February and a 11.7% increase for March.

These types of results exemplify the reason the MTMD was formed and the potential that the team at Visit Modesto has to impact tourism when the market conditions and travel trends are aligned for new initiatives.

4. Destination Programs
During the pandemic, Visit Modesto had several successful initiatives that brought significant visitor impact during traditionally low occupancy, low visitation periods; • Almond Blossom Cruise; increased occupancy and revenues for February/March. In 2022, in the heart of the Pandemic when the weather was good (2023 had 40 out of 45 days with rain) the Almond Blossom Cruise generated over 100K Visitor Trips alone! • MoCheer impacts December visitor traffic.
• MoFresh is creating more opportunities for visitors to stay for more than gas fill-ups May through August
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MTMD Management District Plan 7
January 10, 2024
• MoPink has created both local and regional reasons to spend more in Modesto and have an impact on charities that keep money local in support of local programs

5. Global Perception of Modesto
With a change in focus from a one-dimensional value proposition of Modesto, Graffiti Summer, there has been an incredible public relations impact for the community. Modesto’s restaurants, agricultural attractions and murals have all received national press attention.

Awards & Accolades – Modesto is no longer on all the ‘naughty’ lists! - 2021; ESTO Award Finalist (1 of 3 in the US) US Travel Excellence Award - 2021; Poppy Award Finalist (1 of 3 in California) Visit CA Excellence Award - 2022; Top Cities for Cyclists
- 2022; Best Places to Live US News & World Report
- 2023; #8 Best Places to Live in CA Forbes2023
- 2023; #87 Best Cities in America (made the top 100 list!!!) - 2023; #1 Hidden Gem Live Music City in the US
Public Relations/Influencers & Major Media
- Key Highlights
o 2021; Good Day Sacramento (7 times), ABC 10 & Fox 40 Sacramento o 2022; HiTravel Tales, Forbes, Travel Pulse, SF Gate September o 2023; NBC Los Angeles, Thrillist, Secret San Francisco, Washington Post, Tasting Table, KNBC Los Angeles, KSND San Diego, KOVR Sacramento, SF Gate, HelloRubyDoodle, Momtastic, Travel Tweeks, Tennessee Tribune, Yahoo Canada #14..
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MTMD Management District Plan 8
January 10, 2024
IV. BOUNDARY
The MTMD will include all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City of Modesto (referred to herein as “assessed businesses”), as shown in the map on the following page.

Lodging business means: any structure, or any portion of any structure within the City, which is intended or designed for lodging or sleeping purposes wherein the owner or operator thereof offers occupancy, defined as the use or possession, or the right to use or possession granted by the owner or operator thereof for compensation of any room or rooms or portion thereof for lodging or sleeping purposes. Lodging business does not include any vacational rental, vacation rental unit, short-term vacation rental, nor any hospital, medical clinic, convalescent home or other temporary or permanent domicile equipped primarily for the care of aged or infirm people.

A complete listing of assessed businesses within the renewed MTMD, can be found in Appendix 2. #14..
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MTMD Management District Plan 9
January 10, 2024
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MTMD Management District Plan 10
January 10, 2024
V. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the MTMD funds are sales and marketing programs available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by VM. The chart below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $430,540.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and VM’s Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the MTMD, any and all assessment funds may be used for the costs of defending the MTMD.

Each budget category includes all costs related to providing that service in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget.

The costs of an individual staff member may be allocated to multiple budget categories, as appropriate Administration &
Collection, $64,581
, 15%
Contingency /
Reserve / Renewal,
$21,527 , 5%
Sales &
Marketing,
$344,432 , 80%
Initial Annual Assessment Budget - $430,540
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MTMD Management District Plan 11
January 10, 2024
in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by VM on an as- needed basis.

Sales and Marketing
A sales and marketing program promotes assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Modesto as a desirable place to visit. The program has the goal of increasing overnight visitation and room night sales at assessed businesses, and may include, but not limited to, the following activities:
• Multi-media marketing efforts including digital, print, and other diversified media strategies curated to target prospective visitors and maximize online presence and visibility; • Television ads targeted at potential visitors;
• Radio ads targeted at potential visitors;
• Attendance of trade shows;
• Special events highlighting unique aspects of Modesto; • Preparation and production of collateral promotional materials such as brochures, flyers, and maps;
• Data and industry analytics used for marketing;
• Participation fees and attendance of professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists and group events to Modesto; and • Any agency fees and commissions related to the execution of programs and activities authorized by this Plan.

Administration and Collection
The administration portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees. The collection portion of the budget shall be utilized for paying the City of Modesto for the costs of collecting the assessment. The City of Modesto shall be paid based upon the actual costs it incurs in administering the assessment, subject to audit, but such amount shall not exceed three percent (3%) of the amount collected to cover the costs of collecting the assessment.

Contingency/Reserve/Renewal
A portion of the budget will be allocated to a contingency fund to account for lower than anticipated collections. If collected contingency funds remain in the budget near the expiration of the MTMD’s term, and business owners wish to renew the District, the contingency funds may be used for renewal costs.

B. Annual Budget
The total ten (10) year assessment budget is projected at approximately $430,540 annually, or $4,305,400 through FY 2033 – 34 if assessment rates are not increased. If the maximum assessment rate increases are adopted, the estimated total assessment budget through FY 2033 – 34 is $10,736,500 This amount may fluctuate as sales and revenue increase at assessed businesses, and as businesses open and close, but is not expected to change significantly over the term. #14..
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MTMD Management District Plan 12
January 10, 2024
The initial annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue. Upon the recommendation of the TMD Committee, the assessment rate may be increased by VM’s Board and subject to Modesto City Council approval, up to a maximum of one-half of one percent (0.50%) per year to a maximum rate of three percent (3%). However, the assessment rate increase in any given year may be an amount less than one-half of one percent (0.50%). For example, the assessment rate in FY 2025-26 could be increased by one-quarter of one percent (0.25%) and in FY 2026-27 the assessment rate could be increased by another one-quarter of one percent (0.25%), etc. up to a maximum assessment rate of three percent (3%).

The table below demonstrates the estimated maximum budget with the assumption that the assessment rate will be increased at the earliest opportunity as it is a required disclosure, it is not the anticipated course of action. Alternate courses of action may be taken in regard to implementing the assessment rate increase other than what is demonstrated in the chart below, within the parameters of this Management District Plan.

Estimated Annual Budget If Maximum Assessment Rates Are Adopted Fiscal
Year Sales & Marketing Administration & Collection
Contingency /
Reserve / Renewal Total
2024-25 $344,432 $64,581 $21,527 $430,540
2025-26 $516,648 $96,872 $32,291 $645,810
2026-27 $688,864 $129,162 $43,054 $861,080
2027-28 $861,080 $161,453 $53,818 $1,076,350
2028-29 $1,033,296 $193,743 $64,581 $1,291,620
2029-30 $1,033,296 $193,743 $64,581 $1,291,620
2030-31 $1,033,296 $193,743 $64,581 $1,291,620
2031-32 $1,033,296 $193,743 $64,581 $1,291,620
2032-33 $1,033,296 $193,743 $64,581 $1,291,620
2033-34 $1,033,296 $193,743 $64,581 $1,291,620
Total $8,610,800 $1,614,525 $538,175 $10,763,500
The table below demonstrates the annual improvement and service plan budget with the assumption that the rates will not be increased during the MTMD’s term. #14..
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MTMD Management District Plan 13
January 10, 2024
Estimated Annual Budget if Assessment Rates Are Not Increased Fiscal
Year Sales & Marketing Administration & Collection
Contingency /
Reserve / Renewal Total
2024-25 $322,905 $64,581 $21,527 $430,540
2025-26 $344,432 $64,581 $21,527 $430,540
2026-27 $344,432 $64,581 $21,527 $430,540
2027-28 $344,432 $64,581 $21,527 $430,540
2028-29 $344,432 $64,581 $21,527 $430,540
2029-30 $344,432 $64,581 $21,527 $430,540
2030-31 $344,432 $64,581 $21,527 $430,540
2031-32 $344,432 $64,581 $21,527 $430,540
2032-33 $344,432 $64,581 $21,527 $430,540
2033-34 $344,432 $64,581 $21,527 $430,540
Total $3,422,793 $645,810 $215,270 $4,305,400
C. California Constitutional Compliance
The MTMD assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the MTMD assessment is a business-based assessment, and is subject to Proposition 26.

Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the MTMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the MTMD. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed businesses within the boundaries of the MTMD, and are narrowly tailored. MTMD funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees.

Assessment funds shall not be used to feature non-assessed businesses in MTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1) #14..
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are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with nonassessed businesses for the provision of services to those businesses.

The assessment imposed by this MTMD is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed businesses will be provided only to businesses paying the district assessment, with marketing and sales programs promoting businesses paying the MTMD assessment. The marketing and sales programs will be designed to increase demand for room night sales at each assessed business. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed businesses.

Although the MTMD, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayer occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the MTMD are government services within the meaning of Proposition 265 . Further, the legislature has determined
that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayer occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
MTMD services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by VM, and reports submitted on an annual basis to the City. Only assessed businesses will be featured in marketing materials, receive sales leads generated from MTMD-funded activities, be featured in advertising campaigns, and benefit from other MTMD-funded services. Nonassessed businesses will not receive these, nor any other, MTMD-funded services and benefits. 3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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The MTMD-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-MTMD funds. MTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue on all lodging businesses with twenty (20) rooms or more, existing and in future, available for public occupancy, located within the boundaries of the City of Modesto. Based on the benefit received, assessments will not be collected on: stays of more than twenty-seven (27) consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; stays by any officer or employee of the United States Government, or of a federal credit union, or of a state, county, city or other domestic public entity who pays rent in the discharge of official government business; and stays by any officer or employee of a bank or insurance company who pays rent in the discharge of official bank or insurance company business.

During the ten (10) year term, the assessment rate may be increased by VM’s Board and Modesto City Council approval up to a total of three percent (3%) of gross short-term sleeping room rental revenue.

The initial annual assessment rate is one percent (1%) of gross short-term sleeping room rental revenue. The maximum increase in any year shall not exceed one-half of one percent (0.50%). Any assessment rate increase approved by VM’s Board shall be included in the annual report.

The assessment was calculated based on the total cost of the activities to be provided for the benefit of the assessed businesses within the MTMD, with costs allocated based on the proportional benefit conferred to each assessed business. Activities funded by the MTMD, are specifically targeted to increase demand for room nights at assessed businesses. All room night sales do not represent the same benefit to the payors. For example, a higher priced room night is of greater benefit than a lower priced room night because the assessee derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to assessed businesses with higher priced room nights.

The term “gross short-term sleeping room rental revenue” as used herein means the consideration charged, whether or not received, for the occupancy of space in an assessed business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross short-term sleeping room rental revenue does not include compensation for services or products.

Gross short-term sleeping room rental revenue shall not include, and therefore the assessment shall not be charged upon, any federal, state, or local taxes collected, including but not limited to transient occupancy taxes.
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The assessment is levied upon and a direct obligation of the assessed business. However, the assessed business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the MTMD assessment is identified separately it shall be disclosed as the “MTMD Assessment.” As an alternative, the disclosure may include the amount of the MTMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon and is the sole obligation of the assessed business even if it is passed on to transients. The assessment shall not be considered revenue for calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Interest and Penalty Charges
The MTMD shall reimburse the City of Modesto for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent MTMD assessment are sought to be recovered in the same collection action by the City, the MTMD shall bear its pro rata share of such collection costs.

Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Delinquency
Any assessed business that fails to remit any assessment imposed by this Plan within the time required shall, in addition to the amount of the assessment, pay a penalty of five percent (5%) of the amount of the assessment per month or fraction thereof until paid; the maximum penalty imposed on any one delinquency shall not exceed twenty-five percent (25%) of the amount of the assessment.

2. Fraud
If the City determines that the non-payment of any assessment due from any transient or assessed business under this Plan is due to intentional non-payment or fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated above.

3. Penalties
Every penalty imposed and collected under the provisions of this section by the City, shall be required to be paid and shall be retained by the City to cover the cost of collection of the delinquency.

F. Time and Manner for Collecting Assessments
The MTMD assessment will be implemented beginning July 1, 2024, or as soon as possible thereafter, and ending ten (10) years from its start date. The City will be responsible for collecting the assessment on a quarterly basis and is subject to change as determined by the City (including any delinquencies, interest and penalties) from each assessed business located in the City of Modesto. The City shall take all reasonable efforts to collect the assessments from each assessed business. The City shall forward the assessments collected to the Owners’ Association.
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VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the MTMD as defined in Streets and Highways Code §36612. The City Council has determined that Visit Modesto, Inc. (VM) will continue to serve as the Owners’ Association for the MTMD.

TMD Management Committee
VM will create a TMD Management Committee charged with managing funds and implementing programs in accordance with this Plan. The TMD Management Committee will be required to provide an annual report on activities and expenditures to the City of Modesto, which will also be available to assessed business owners. The TMD Management Committee must also hold open meetings and make records available pursuant to the Brown Act and Public Records Act.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of VM board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
VM shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2023 SUPPLEMENT *** (ALL 2022 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businessesin a business district are not taxesfor the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, #14..
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and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessmentsthey may levy and the proper determination ofspecial benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
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(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters, and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
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(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
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(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
(b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
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(3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
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(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that #14..
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the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

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district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments #14..
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The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
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(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
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(2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall #14..
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begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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APPENDIX 2 – ASSESSED BUSINESSES
Hotel Address City, State, Zip
Apex Inn 2225 Yosemite Blvd Modesto, CA 95354-3003
Baymont Inn & Suites 4100 Salida Blvd Modesto, CA 95358-8840 Best Western Palm Court Inn 2001 W Orangeburg Ave Modesto, CA 95350-3741 Comfort Inn Modesto 2025 W Orangeburg Ave Modesto, CA 95350-3741 Discovery Inn 115 Downey Ave Modesto, CA 95354-1201
Doubletree Hotel Modesto 1150 9th St Modesto, CA 95354-0823 Economy Inn 602 Mchenry Ave Modesto, CA 95350-5412
El Capitan Motel 1121 Needham St Modesto, CA 95354-0731 Modesto Days Inn 1312 Mchenry Ave Modesto, CA 95350-5377 Modesto Hotel 1720 Sisk Rd Modesto, CA 95350-2500
Modesto Marriott Residence Inn 2901 HealthCare Way Modesto, CA 95356 Motel 6 807 Needham St Modesto, CA 95354-0736
Motel 6 Modesto 1920 W Orangeburg Ave Modesto, CA 95350-3740 Quality Inn 500 Kansas Ave Modesto, CA 95351-1605
Ramada By Wyndham 1525 Mchenry Ave Modesto, CA 95350-4576 Rodeway Inn 912 Mchenry Ave Modesto, CA 95350-5417
Springhill Suites Modesto 1901 W Orangeburg Ave Modesto, CA 95350-3838 Tiki Lodge 936 Mchenry Ave Modesto, CA 95350-5417
Townhouse Lodge 909 16th St Modesto, CA 95354-1117
Travelers Motel 710 N 9th St Modesto, CA 95350-5795
Yosemite Inn 500 Kansas Ave Modesto, CA 95351-1605
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 9, 2024
Date: June 12, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services/City Engineer SUBJECT: Accept Sutter Avenue Strengthen and Replace Water Mains Project as Complete CONTACT: Peter Kambel, Senior Civil Engineer, [email protected], 209-577-5444 DESCRIPTION:

Consider accepting the Sutter Avenue Strengthen and Replace Water Mains Project as complete, releasing securities, releasing payments totaling $2,245,435 to West Valley Construction Company of Stockton, CA., and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Water Fund)
STRATEGIC PLAN ELEMENT:

The recommended action supports the 2020-2025 City of Modesto Strategic Plan Initiatives, Goal D: Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.

BACKGROUND:

The Sutter Neighborhood Strengthen and Replace (S&R) Water Mains Project is located within Stanislaus County’s West Modesto Sewer Improvement Project. The project is located in a Stanislaus County pocket area bounded by Sutter Avenue in the West, South Avenue in the North, Sunset Avenue in the East, and Garden and Rose Lawn Avenues in the South.

This area had deficient water mains that were undersized, lacked pressure and prone to leaks.

The Sutter Neighborhood S&R Water Mains Project replaced and upgraded water mains, associated water valves, services, and fire hydrants to increase service reliability, flows, and pressures. The City partnered with Stanislaus County to coordinate the Sutter Neighborhood S&R Water Mains Project with their West Modesto Sewer Improvement Project.

On July 14, 2020, by Resolution No. 2020-315 Council approved an agreement with Black Water Consulting Engineers, Inc. (Black Water), in the amount not to exceed $139,073, for Engineering Design Services for the Sutter Neighborhood Strengthen & Replace Water Mains Project. #15..
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Accept Sutter Avenue Strengthen and Replace Water Mains Project as Complete

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DISCUSSION:

The project was advertised for bids on September 28, 2022. Bids were publicly opened on October 25, 2022, and pursuant to City Charter Section 1307, West Valley Construction Company of Stockton, CA was the lowest responsible bidder at 9.62% under the engineer’s estimate.

On January 24, 2023, by Resolution 2022-035, Council awarded a contract to West Valley Construction Company, in the amount of $2,149,680. The Contractor received the Notice to Proceed with a start date of May 15, 2023. All contract work was completed on November 28, 2023.

By accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed. The City Clerk is authorized to complete all the necessary steps to file the Notice of Completion with the County Recorder, release securities, and authorize payments totaling $2,245,435. The work is covered by a one-year warranty for any issues that may arise.

Staff recommends the project for acceptance as the contractor has complied with all contract requirements for the project.

FISCAL IMPACT:

The total project costs were $2,600,823 which included design, construction, and construction administration costs. The total project amount originally budgeted was $2,935,500, which included $2,364,648 for the construction contract and contingency with West Valley Construction Company.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, and updated by Resolution No. 2019-326 on July 9, 2019, established a contract change order authority of eight percent (8%) for construction contracts of this value. However, Staff requested to increase the change order budget to ten percent (10%) $214,968, due to the nature of rehabilitation projects with unforeseen utilities or buried structures, and other unaccounted for issues that may arise. There are thirteen (13) change orders resulting in an overall increase of $95,755 for change order work as listed on the attached change order log. A summary of the expenditures for the overall project is listed below.
101154 – UTL – Sutter Avenue Strengthen and Replace Water Mains Total
Construction Contract (West Valley Const. Co.) $2,149,680 Construction Contingency 4.5% $95,755
Construction Admin - City Staff 6.7% $143,653
Engineering Design (Black Water) 7.4% $158,887
Engineering Design Administration 2.5% $52,848
Total Construction Expenditures $2,600,823

COMMITTEE RECOMMENDATION
This project was presented to the Economic Development Committee on April 4, 2022, as a report on upcoming Capital Improvement construction projects, where it was recommended that the project be forwarded to Council for future award of construction. #15..
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Accept Sutter Avenue Strengthen and Replace Water Mains Project as Complete

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CEQA/NEPA REQUIREMENTS:

Environmental review has been provided through Statement of Exemption, EA/UTL No. 2022-01, Categorical Extensions Section 15301 (Ex. Facilities) Class1, (e-2).

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the Sutter Avenue Strengthen and Replace Water Mains Project as complete, releasing securities, releasing payments totaling $2,245,435 to West Valley Construction Company of Stockton, CA and authorizing the City Clerk to file a Notice of Completion.

Approved by:
_________________________________________
Toby Wells, Director of Engineering Services/
City Engineer
_________________________________________
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. CCO Log

3. Project Suspension Forms (1)

4. Notice of Completion
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07/09/2024/ESD/PKambel 1 2024-

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-XX

RESOLUTION ACCEPTING THE SUTTER AVENUE STRENGTHEN AND

REPLACE WATER MAINS PROJECT AS COMPLETE, RELEASING
SECURITIES, RELEASING PAYMENTS TOTALING $2,245,435 TO WEST

VALLEY CONSTRUCTION COMPNAY OF STOCKTON, CA AND

AUTHORIZING THE CITY CLERK TO FILE A NOTICE OF COMPLETION WHEREAS, the Sutter Neighborhood Strengthen and Replace (S&R) Water Mains Project is located within Stanislaus County’s West Modesto Sewer Improvement Project; and
WHEREAS, the project is located in a County pocket area bounded by Sutter Avenue in the West, South Avenue in the North, Sunset Avenue in the East, and Garden and Rose Lawn Avenues in the South; and
WHEREAS, this area had deficient water mains that were undersized, lacked pressure and was prone to leaks; and
WHEREAS, the Sutter Neighborhood S&R Water Mains Project replaced and upgraded water mains, associated water valves, services, and fire hydrants to increase service reliability, flows, and pressures; and
WHEREAS, the City partnered with Stanislaus County to coordinate the Sutter Neighborhood S&R Water Mains Project with their West Modesto Sewer Improvement Project; and
WHEREAS, on July 14, 2020, by Resolution No. 2020-315, Council approved an agreement with Black Water Consulting Engineers, Inc. (Black Water) in the amount not to exceed $139,073, for Engineering Design Services for the Sutter Neighborhood Strengthen & Replace Water Mains Project; and
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WHEREAS, the project was advertised for bids on September 28, 2022. Bids were publicly opened on October 25, 2022, and pursuant to City Charter Section 1307, West Valley Construction Company of Stockton, CA., was the lowest responsible bidder at 9.62% under the engineers estimate; and
WHEREAS, on January 24, 2023, by Resolution 20-35, and Council awarded a contract to West Valley Construction Company, in the amount of $2,149,680. The Contractor received the Notice to Proceed with a start date of May 15, 2023. All contract work was completed on November 8, 2023; and
WHEREAS, the total project costs were $2,600,823, which included design, construction, and construction administration costs. The total project amount originally budgeted was $2,935,500 which included $2,364,648 for the construction contract and contingency with West Valley Construction Company; and
WHEREAS, the City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, and updated by Resolution No. 2019-326 on July 9, 2019, established a contract change order authority of eight percent (8%) for construction contracts of this dollar value. However, by Resolution 2023-36, Staff requested to increase the change order budget to ten percent (10%) $214,968, due to the nature of rehabilitation projects where unforeseen utilities or buried structures, and other unaccounted for issues that may arise; and
WHEREAS, there are thirteen (13) change orders resulting in an overall increase of $95,755 for change order work as listed on the attached change order log; and WHEREAS, by accepting this project as complete, the city officially accepts the improvements made and authorizes the Notice of Completion to be filed. #15..
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NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto hereby accepts the Sutter Avenue Strengthen and Replace Water Mains Project as complete, releasing securities, releasing payments totaling $2,245,435 to West Valley Construction Company of Stockton, CA and authorizing the City Clerk to file a Notice of Completion.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9thth day of July 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
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CHANGE
ORDER NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: June 07, 2024
TIME
EXT. Approved
2023/05 - Sutter Avenue Strengthen and Replace Water Mains (101154) PROJECT NUMBER AND NAME:
01 Additional cost for unmarked utilties. 09/15/23 $23,178.27 2 W.D. No Yes No Yes 02 4" water service at 630 Rouse Ave 09/15/23 $6,300.00 0 W.D. No Yes No Yes03 1 additional 6" GV at contract price. 09/15/23 $2,600.00 0 W.D. No Yes No Yes04 6" Fire service locates at 819 Sunset Ave 09/15/23 $6,900.00 14 W.D. No Yes No Yes05 Five 2" Water services 09/15/23 $21,000.00 14 W.D. No Yes No Yes06 634 Jean St. Service Extension 09/15/23 $4,030.00 1 W.D. No Yes No Yes07 New Hydrant Install on Cheatham Court. 01/17/24 $10,950.00 0 W.D. No No Yes Yes08 Additional AC Tonnage quanities 02/23/24 $63,456.75 0 W.D. No No Yes Yes 09 Re-mob costs 02/23/24 $6,780.00 0 W.D. No No Yes Yes10 2 Hydrants at 12x8 Reducer Rouse/sunset 02/23/24 $20,800.00 0 W.D. No No Yes Yes11 Force Account Work 04/19/24 $30,874.71 0 W.D. No Yes No Yes12 Lost Time Claims 04/19/24 $12,088.42 0 W.D. No Yes No Yes13 Balancing Change Order 04/19/24 -$113,203.21 0 W.D. No Yes No Yes Total Change Orders Processed To Date: $95,754.94
Original Contract Amount: $2,149,680.00IDA To: $214,968.00 Total Working Days Time Extension: 31
Original Director's CCO Authority: $171,974.00IDA Date: 1/24/2023 Total Executed Change Orders To Date: $95,754.94
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CHANGE
ORDER NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: June 07, 2024
TIME
EXT. Approved
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2/28/24
28-FEB-2024
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Requested by
City of Modesto/City Clerk’s Office
Return to City of Modesto/City Clerk’s Office:

PO Box 642
Modesto CA 95353

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on January 24, 2023, the City of Modesto, PO Box 642, Modesto, California 95353, a Municipal Corporation in the County of Stanislaus, State of California, awarded the contract to West Valley Construction Company, of Stockton CA., for the project titled “Sutter Avenue Strengthen and Replace Water Mains Project” located in a County pocket area bounded by Sutter Avenue in the West, South Avenue in the North, Sunset Avenue in the East, and Garden and Rose Lawn Avenues in the South and that on November 28, 2023 the said contract as a whole was actually completed by West Valley Construction Company and accepted by the Council of the City of Modesto at a regular meeting of the Council held on July 9, 2024.

CITY OF MODESTO
By
Diane Nayares-Perez, City Clerk
I certify under penalty of perjury that the foregoing is true and correct.

Date: By
Modesto, CA Diane Nayares-Perez, City Clerk
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 9, 2024
Date: June 25, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Burton Fire Agreement for Fire Fleet Parts and Services CONTACT: Dianne Love, Purchasing Manager, [email protected], 209-571-5164
DESCRIPTION:

Consider approving Agreements with Burton Fire, Modesto, CA for the purchase of Fire Fleet Parts and Services for a total amount not to exceed $625,000 over five years. (Funding Source:

General Fund and Outside Fire Contract Agencies)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The Public Works Fleet Division provides the maintenance for all City vehicles and equipment.

Modesto Fire Department which also includes the outside fire contract services with City of Ceres, Salida Fire District, City of Turlock, Consolidated Fire and Oakdale Fire Departments are one of the departments the Fleet Division provides parts and services for their fleet. The Fleet Division maintains over 137 vehicles, apparatus and equipment for Modesto Fire and outside fire contract services. Burton Fire is the sole source distributor for Rosenbauer America sales and service dealer for fire apparatus and fire specialized equipment parts.

The Fleet Division has been submitting stand-alone purchase requisition based on the need but there has been a significant increase in the use of parts and services with the addition of the outside fire contract services with the various fire agencies. In addition, several of the City’s apparatus have aged and are close to reaching their useful life which has increased the cost for these parts and services.

DISCUSSION:

With the increase in annual spending, somewhat associated with inflation, City staff recommends entering into a multi-year agreement to establish pricing controls and ensure that the City stays within Council authority limits for agreements. The local distributor, Burton Fire, is #16..
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City Council, July 9, 2024
Burton Fire Agreement for Fire Fleet Parts and Services

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the sole distributor for the parts needed to manage the fire fleet parts and services. By establishing this agreement, this will ensure that the City is maintaining the services needed for Modesto Fire and outside fire services in a timely manner.

Modesto Municipal Code Section 8-3.203 generally requires all purchases which meet or exceed $100,000 for material, equipment, or contractual services, to follow formal bid procedures. However, MMC 8-3.204(b) provides that a purchase may be exempted from the City’s formal bidding requirement where the Purchasing Agency’s requirements can be met solely by a single article or process. Here, Burton Fire is the sole distributor for the fire parts needed to manage the apparatus vehicles for Modesto Fire and outside fire contract services.

Therefore, staff recommends that the purchase of fire parts from Burton Fire be exempt from the formal bidding procedures in accordance with Modesto Municipal Code 8-3.204(b), since Burton Fire is the Sole Provider of the parts needed to manage the fire fleet parts and services.

FISCAL IMPACT:

Sufficient funds are budgeted in Fiscal Year (FY) 2023-24 to cover the cost for this agreement, and the Fleet Division will budget for these parts for the future budget adoptions. Once Fleet incurs the original cost for these parts, these expenses will be billed to the General Fund and through the City’s outside fire contract service agreements. The spending history over the last five years with Burton Fire is outlined below:

Fiscal Year Amount
2019-20 $ 24,011
2020-21 $ 32,054
2021-22 $ 32,569
2022-23 $ 58,537
2023-24 (thru Mar 2024) $ 171,405
Total $ 318,576
In Fiscal Year 2023-24, there was an increase in annual spending associated with the Modesto Fire outside service agreements with the various districts. This is specifically related to apparatus that are maintained by the City requiring unanticipated repairs. Further, Burton Fire is the local authorized parts and material distributor which resulted in a significant increase in expenditures that were unanticipated. Several extensive repairs were required for returning the apparatus to front-line duty status.

COMMITTEE RECOMMENDATION:

This item was presented at the June 24, 2024, Finance Committee and approved to move forward to Council.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Agreements with Burton Fire, Modesto, CA for the purchase of Fire Fleet Parts and Services for a two-year Agreement with three (3) one-year extension options, for an annual estimated amount of $125,000 and a total amount not to exceed $625,000 over five years; and authorizing the City Manager or his designee to execute the Agreements. #16..
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City Council, July 9, 2024
Burton Fire Agreement for Fire Fleet Parts and Services

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

1. Resolution

2. Burton Fire Services Agreement – #276124

3. Burton Fire Parts Agreement – #276123

4. Exhibit B Bid Waiver – Sole Distributor

5. Exhibit C - Parts Discount

6. Exhibit C - Shop Rates
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE AGREEMENTS WITH BURTON FIRE,

MODESTO, CA FOR THE PURCHASE OF FIRE FLEET PARTS AND
SERVICES FOR A TWO-YEAR AGREEMENT WITH THREE (3) ONE-YEAR

EXTENSION OPTIONS, FOR AN ANNUAL ESTIMATED AMOUNT OF
$125,000 AND A TOTAL AMOUNT NOT TO EXCEED $625,000 OVER FIVE YEARS; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO

EXECUTE THE AGREEMENTS
WHEREAS, the Public Works Fleet Division provides the maintenance for all City vehicles and equipment; and
WHEREAS, Modesto Fire Department which also includes the outside fire contract services with City of Ceres, Salida Fire District, City of Turlock, Consolidated Fire and Oakdale Fire Departments are one of the departments the Fleet Division provides parts and services for their fleet; and
WHEREAS, Burton Fire is the sole source distributor for Rosenbauer America sales and service dealer for fire apparatus and fire specialized equipment parts; and WHEREAS, with the increase in annual spending, somewhat associated with inflation, City staff recommends entering into a multi-year agreement to establish pricing controls and ensure that the City stays within Council authority limits for 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 follow formal bid procedures; However, MMC 8-3.204(b) provides that a purchase may be exempted from the City’s formal bidding requirement where the Purchasing Agency’s requirements can be met solely by a single article or process; and #16..
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2 WHEREAS, Burton Fire is the sole distributor for the fire parts needed to manage the apparatus vehicles for Modesto Fire and outside fire contract services; and WHEREAS, staff recommends that the purchase of fire parts from Burton Fire be exempt from the formal bidding procedures in accordance with Modesto Municipal Code 8-3.204(b), since Burton Fire is the Sole Provider of the parts needed to manage the fire fleet parts and services.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Agreements with Burton Fire, Modesto, CA for the purchase of fire fleet parts and services for a two-year Agreement with three (3) one-year extension options, for an annual estimated amount of $125,000 and a total amount not to exceed $625,000 over five years.

BE IT FURTHER RESOLVED, that the City Manager, or his designee, is hereby authorized to execute the Agreements, in a form approved by the City Attorney. #16..
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3 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of July, 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
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1 BURTON’S FIRE INC ANNUAL AGREEMENT – SERVICES
AGREEMENT #276124
This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this ____ day of _________, 2024, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Burton’s Fire Inc., an S-Corporation, hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 2024- authorizing an agreement for the purchase of fire fleet materials, supplies or equipment described herein the (the “GOODS”) to VENDOR, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a Sole Source letter that best meets the CITY needs, attached hereto as Exhibit “B”, and made a part hereof, and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for the SHOP RATES SERVICES as described in IFB 2324-95, attached hereto as Exhibit “C”, and made a part hereof (hereinafter called IFB).
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2 NOW, THEREFORE, the parties hereto mutually agree as follows:

1. THE WORK:
a) CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, bonds and insurance necessary to perform and complete the required work as specified in Exhibit “C”, and in strict accordance with the conditions of the complete AGREEMENT. b) CONTRACTOR shall do and perform the work contemplated hereby in a good workmanlike manner under the direction of and to the satisfaction of the CITY Representative. c) CONTRACTOR shall maintain proper insurance with the CITY for the duration of the AGREEMENT.
d) CONTRACTOR shall maintain a CITY business license for the duration of the AGREEMENT.
e) CONTRACTOR shall furnish said services at the following AGREEMENT rates for an estimated annual amount $62,500.00 The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $312,500.00 Unless the services provided are for a lump sum or flat fee, fees for work performed by CONTRACTOR on an hourly basis shall not exceed the amounts shown on attached hereto as Exhibit C.

2. CITY REPRESENTATIVE:

CITY Representative is; Patrick Crowley, Senior Public Works Manager, phone: (209) 342-2274 email: [email protected].

The CITY Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be effective only by written change to the AGREEMENT, issued by the City of Modesto, Purchasing Division.

3. CONTRACTOR CONTACT:

Brian Wilkes, Administrative Manager
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3 Phone (209) 846-7414
Email: [email protected]

4. TERM OF AGREEMENT:

The term of the AGREEMENT shall be for a period of two years, with three one-year extension options at the sole discretion of CITY, for a total of up to five years.

Year 1: July 10, 2024 through July 9, 2025
Year 2: July 10, 2025 through July 9, 2026
Year 3: July 10, 2026 through July 9, 2027
Year 4: July 10, 2027 through July 9, 2028
Year 5: July 10, 2028 through July 9, 2029
Pricing as set forth in Exhibit “C” above shall remain firm for the first two years of the AGREEMENT.

Price increases for any subsequent AGREEMENT years following the second year, shall not exceed the percentage change in the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by CONTRACTOR in writing, ninety (90) days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year.

5. LIABILITY INSURANCE:

The CONTRACTOR shall provide, at its own expense, and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the CITY as may be required by the City Clerk of the CITY. The policies or certificates thereof shall provide that, at least 30 days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the CITY via PINS Advantage Insurance Program, for all of the following stated insurance policies.
a. General Liability - insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. If Commercial General Liability Insurance or other form with a general #16..
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4 aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurance limit. The insurance shall indicate on the certificate of insurance the following coverage and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent contractors and subcontractors; products and completed operations; and/or professional liability.
b. Automobile Liability – insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage and transportation related pollution liability. This insurance shall cover any automobile for bodily injury and property damage.
c. Workers' Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000 per accident for bodily injury or disease.

If at any time any of said policies shall be unsatisfactory to the CITY, as to form or substance or if a company issuing such policy shall be unsatisfactory to the CITY, the CONTRACTOR shall promptly obtain a new policy, submit the same to the CITY’s Risk Manager for approval and submit a certificate thereof as hereinabove provided. Upon failure of the CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this AGREEMENT, at the election of the CITY, may be forthwith declared suspended, or terminated. Failure of the CONTRACTOR to obtain and/or maintain any required insurance shall not relieve the CONTRACTOR from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the CONTRACTOR concerning indemnification.

The CITY, its agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation.

The Workers' Compensation insurer shall agree to waive all rights of subrogation against the CITY, its agents, officers, employees, and volunteers for losses arising from work performed by CONTRACTOR for the CITY.

The CONTRACTOR’s insurance policy(ices) shall include a provision that the coverage is primary as respects the CITY; shall include no special limitations to coverage provided to additional insured; and, #16..
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5 shall be placed with insurer(s) with acceptable Best's rating of A:VII or with approval of the CITY’s Risk Manager.

For any claims related to this AGREEMENT, the CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by CITY, its officers, officials, employees, or volunteers shall be excess of the CONTRACTOR’s insurance and shall not contribute with it.

6. PAYMENT:

CONTRACTOR shall invoice CITY not less than once per month based on the cost for services performed and reimbursable costs incurred prior to the invoice date. All invoices shall be paid in full the following payment terms within thirty days after completion and acceptance of the Services by the CITY, and receipt of a properly prepared invoice, CITY will pay CONTRACTOR Net 30 via e-Pay program The CITY is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.

Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
At a minimum, invoices shall state the following:
 This AGREEMENT #276124
 Public Works Fleet Division, 1609 8th Street, Modesto, Ca 95354  Billing period
 Service hours worked day and week
 Unit price, extended price, sales tax and total

7. INDEMNITY: The CONTRACTOR shall hold the CITY, its agents, officials, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising #16..
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6 directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, officials, officers, employees, or volunteers relating to or during the performance of its obligations under this AGREEMENT. CONTRACTOR’s obligation to defend, indemnify, and hold the CITY, its agents, officials, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONTRACTOR to procure and maintain a policy of insurance.

8. VENUE & GOVERNING LAW:

Venue for any dispute or claim arising or related to this AGREEMENT its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California This AGREEMENT shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, without giving effect to its conflicts of laws provisions or principles.

9. ATTORNEYS’ FEES: If a party to this AGREEMENT brings any action, including an action for declaratory relief, to enforce or interpret the provision of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:

Proofs of insurance (approved by CITY Risk Manager); and Executed Agreement.
a. Resolution No.2024-_______;
b. CONTRACTOR Sole Source Letter.
c. IFB No. 2324-95;
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7 d. Bonds (IF APPLICALBLE);
e. Contractor’s City of Modesto business license

11. TERMINATION OF SERVICES:

Termination for Default: In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the nonperformance. Within 10 days after receipt of notification, the breaching party shall correct any nonperformance to the reasonable satisfaction of the non-breaching party, or such other time as may be identified in the notice. Failure to correct any non-performance shall allow the non-breaching party to terminate this AGREEMENT for cause.

Termination by City for Convenience: The City may also terminate this AGREEMENT the Contractor's performance under the Agreement, either in whole or in part, at its own discretion and without cause.

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination; b. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; #16..
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8 d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process;
e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the SERVICES as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES;
h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.
i. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date.

CITY will pay CONTRACTOR for SERVICES actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the termination of the SERVICES such as subcontractor agreements or contracts for materials; b. The AGREEMENT price allocable to the portion of the SERVICES properly performed or goods supplied to the work site by the CONTRACTOR as of the #16..
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9 date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES.

12. COMPLIANCE WITH ALL LAWS:

CONTRACTOR hereby agrees that CONTRACTOR and its subcontractors, if any, in the performance of the SERVICES described herein, will comply with all federal, state, county and municipal laws, rules and regulations which may be applicable to the work herein contracted for, whether now in existence or hereafter adopted.

13. FAILURE TO PERFORM SATISFACTORY WORK:

It is agreed and understood that if the CONTRACTOR fails to perform the SERVICES as specified herein, CITY's representative may:
a. Consent to accept such unsatisfactory service with an appropriate adjustment in contract price, based on established cost factors,
b. Have such required work done by CITY forces or otherwise, and charge the cost thereof to the CONTRACTOR, or
c. Recommend termination of AGREEMENT between said the CONTRACTOR and the City of Modesto.

Those discrepancies and deficiencies in the SERVICES that remains uncorrected after the date set for correction may be the necessary justification for a billing adjustment in the month following the occurrence.

Unless otherwise negotiated, billing adjustments for this incomplete or uncorrected work shall be permanent retention of 100% of the estimated monthly cost for the SERVICES not corrected or completed.

14. ASSIGNMENT OF RIGHTS:

The CONTRACTOR offers and agrees, and will require all subcontractors and suppliers to agree, to assign to the CITY all rights, title, and interest in and to all causes of action it and they may have under Section 4 of the Clayton Act (15 United States code, Section 15) or under the Cartwright Act (Business and Professions #16..
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10 Code, Section 16700 et seq.), arising from the acquisition of goods, services, or materials pursuant to this AGREEMENT or any allowed subcontract. The assignment made by CONTRACTOR and all assignments made by subcontractors and suppliers shall be made and become effective at the time the CITY makes final payment to The CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550-4554).

15. CITY PROCESS/PROCEDURE APPROVALS:

CITY approval of any process or procedure shall not relieve CONTRACTOR of its responsibility to furnish the required SERVICES meeting all specifications contained herein.

16. DIR REGISTRATION:

Pursuant to Labor Code section 1771.1, CONTRACTOR may not engage in the performance of the Services set forth in Exhibit “C”, unless currently registered and qualified to perform public work pursuant to Section 1725.5 thereof. As required in Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, that during term of this AGREEMENT, CONTRACTOR shall be registered to perform public work pursuant to Section 1725.5 thereof.

17. CONTRACTOR'S RESPONSIBILITY FOR DAMAGES: If CONTRACTOR damages any property belonging to the CITY or a third party, the CONTRACTOR will be required to make repairs immediately, at CONTRACTOR’s sole cost and expense, to the satisfaction of the CITY. In the event that CONTRACTOR fails to perform the necessary repairs, the CITY may either retain from the money due to CONTRACTOR an amount sufficient to repair the damage or perform the repairs and send an invoice to the CONTRACTOR for such costs, which shall be paid within thirty (30) days.

18. NOTICES:

Any notice, payment or instrument required or permitted by this AGREEMENT to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:
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11 CONTRACTOR: Brian Wilkes
Administrative Manager
Burton’s Fire Inc.
1301 Doker Drive
Modesto, CA 95351
Phone: (209) 846-7414
Email: [email protected]
CITY: Kim Presson, Buyer
City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Phone: (209) 577-5375
Email: [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

19. SIGNATORY(IES) FOR CONTRACTOR:

Each signatory for CONTRACTOR below warrants and represents that it is legally competent to, and have full authority to, execute the AGREEMENT.

20. QUANTITIES: No minimum or maximum is guaranteed or implied.

21. FUNDING:

All annual extensions are based upon continuous funding for that purpose by the City Council. Failure to fund any annual extension shall result in an immediate termination of the AGREEMENT without redress.

22. OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:

If mutually agreeable to all parties, the issuance of any resultant contract/purchase order referencing these specifications and modified by mutual agreement between all parties may be extended to other government or publicly funded agencies. It shall be understood that all terms and conditions as specified herein shall apply.

23. NON-DISCRIMINATION:
a. During the performance of this AGREEMENT, CONTRACTOR and any allowed subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, #16..
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12 ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), sexual orientation, or any other basis prohibited by Federal or California law. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment. The CONTRACTOR and any allowed subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination.

The CONTRACTOR and any allowed subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, and Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full. b. The CONTRACTOR and any allowed subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
c. The CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in any allowed subcontracts to perform SERVICES. d. The Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the CITY upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or CITY shall require to ascertain compliance with this AGREEMENT. e. By executing this AGREEMENT, CONTRACTOR certifies that it shall follow and be in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation, and will continue to do so for at least the duration of the AGREEMENT and any extensions thereof.
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13 24. CONTRACTOR LICENSES & PERMITS:

CONTRACTOR warrants and represents that it possesses and shall maintain all licenses, and shall secure and maintain all necessary permits, necessary to perform the SERVICES.

25. RECORDS:

All final versions of reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that CONTRACTOR prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the CITY. CONTRACTOR hereby agrees to deliver those documents to the CITY upon termination of the AGREEMENT, and the CITY may use, reuse or otherwise dispose of the documents without CONTRACTOR’s permission. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this AGREEMENT are prepared specifically for the City and are not necessarily suitable for any future or other use.

26. FACILITIES AND EQUIPMENT:

Except as set forth herein, CONTRACTOR shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this AGREEMENT. CITY shall make available to CONTRACTOR only the facilities and equipment listed in EXHIBIT “B” and “C”, and only under the terms and conditions set forth herein.

27. INDEPENDENT CONTRACTOR; NOT AGENT:

At all times during the term of this AGREEMENT, CONTRACTOR shall be an independent contractor and shall not be an employee of CITY. CITY shall have the right to control CONTRACTOR only insofar as the results of CONTRACTOR’s services rendered pursuant to this AGREEMENT. Except as City may specify in writing, CONTRACTOR shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this AGREEMENT to bind City to any obligation whatsoever.
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14 28. DRUG FREE WORKPLACE:

CONTRACTOR certifies that it is following and in compliance with Sections 8350 - 8355 of Chapter

5.5 of the Government Code, Drug Free Workplace Act whereby each person or organization awarded a contract/purchase order or grant for the procurement of any property or service from any state agency (city) shall certify to the contracting or granting agency that it will provide a drug free workplace.

29. ASSIGNMENT:

Neither this AGREEMENT nor any SERVICES hereunder shall be subcontracted or assigned by CONTRACTOR without the prior written consent of the CITY in each and every instance.

30. WAIVER:

The waiver by any party to this AGREEMENT of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.

31. HEADINGS NOT CONTROLLING:

Headings used in the Agreement are for reference purposes only and shall not be considered in construing this AGREEMENT.

32. MISCELLANEOUS:

Time is of the essence in CONTRACTOR’s performance under each provision of this AGREEMENT.

33. ENTIRE AGREEMENT:

This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY. Additional or new terms contained in this AGREEMENT which vary from CONTRACTOR’S bid are controlling and are deemed accepted by CONTRACTOR by performance of any SERVICES or other commencement of performance hereunder. The terms and conditions of the IFB, attached hereto as Exhibit C, are incorporated herein. In the event of a conflict between the IFB and this AGREEMENT, this AGREEMENT shall control. All previous bids, offers and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this #16..
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15 Agreement. No future waiver or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by the parties.

34. PARTIAL INVALIDITY:

If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attested by its City Clerk under authority of Resolution No. 2024-_______, adopted by the Council of the City of Modesto on the _____________ day of _____________________, 2024 and Burton Fire has caused this Agreement to be duly executed. #16..
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1 BURTON’S FIRE INC ANNUAL PURCHASE AGREEMENT – PARTS ONLY AGREEMENT # 276123
This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this ____ day of _________, 2024, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Burton’s Fire Inc., a S-Corporation, hereinafter called VENDOR,
W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 2024- authorizing an agreement for the purchase of fire fleet materials, supplies or equipment described herein (the “GOODS”) to VENDOR, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the VENDOR provided a sole source letter that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and VENDOR shall enter into an agreement for the purchase of Parts, attached hereto as Exhibit “C” and made a part hereof, and

NOW, THEREFORE, the parties hereto mutually agree as follows:

1. TERM OF AGREEMENT: The term of the AGREEMENT shall be for a period of TWO YEARS with THREE one-year extension options at the sole discretion of City, for a total of up to five years.

Year one: JULY 10, 2024 THROUGH JULY 9, 2025
Year two: JULY 10, 2025 THROUGH JULY 9, 2026
Year three: JULY 10, 2026 THROUGH JULY 9, 2027
Year four: JULY 10, 2027 THROUGH JULY 9, 2028
Year five: JULY 10, 2028 THROUGH JULY 9, 2029
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2 2. PRICING:

A. Per the aforementioned Council Resolution, the annual estimated amount of the AGREEMENT is $62,500. The total amount paid by CITY to VENDOR over the full term of the AGREEMENT shall not exceed $312,500.

B. Pricing during AGREEMENT Year one shall be as set forth in Exhibit C Pricing, attached hereto and made a part hereof by this reference.

C. Pricing shall remain firm for the first year of the AGREEMENT.

D. Price increases for each subsequent AGREEMENT years two, three, four, and five, shall be negotiated in good faith by the parties, but in no instance may exceed the net percentage increase during the prior 12 month period in the Federal Bureau of Labor Statistics’ Consumer Price Index (CPI) for West Urban Area. Requests for price increases in any renewal year shall be submitted by VENDOR in writing at least 60 days prior to the annual anniversary date of the AGREEMENT.

3. USAGE: Vendor shall provide whatever quantities may be required during the term of this Agreement. No minimum or maximum quantities are guaranteed or implied by CITY.

4. ORDERING: Vendor shall deliver GOODS to the location specified within CITY’s purchase order. Unless otherwise specified by the Purchasing Division, no GOODS may be delivered to CITY unless a purchase order has been provided by CITY to VENDOR.

5. PAYMENT: All invoices shall be paid in full by CITY after completion and acceptance of the GOODS by the City, and receipt of a properly prepared invoice submitted by VENDOR via email to [email protected] . As specified by the Purchasing Division, every invoice must reference this AGREEMENT number or CITY’s purchase order number. VENDOR will be paid by CITY via the following payment method “Net 30 terms via CITY’s ePay Program.

6. AMENDMENTS: No changes to this AGREEMENT shall be effective unless mutual agreement of the parties or the sole discretion of the City.

7. TERMINATION:

A. In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the non-performance. Within 30 days after receipt of notification, the breaching party shall correct any non-performance to the reasonable satisfaction of the non-breaching party. Failure to correct any non-performance shall allow the non-breaching party to terminate this AGREEMENT for cause.

B. CITY may terminate this AGREEMENT for convenience upon thirty (30) days prior notice to VENDOR by CITY’s authorized employee.

8. INSPECTION: All GOODS are subject to inspection and test by the City for compliance with specifications as included herein, within a reasonable time after delivery. In the event GOODS are defective or not in conformity with this AGREEMENT or CITY’s purchase order, the CITY shall have the rights to either reject the GOODS or require correction. Defective articles or services shall be removed from CITY premises and/or corrected by and at the expense of VENDOR; provided that should the VENDOR fail, neglect or refuse to do so, the CITY shall thereupon have the right to purchase in the open market, in lieu #16..
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3 thereof, a corresponding quantity of any such items. CITY may deduct from any moneys due or that may there after come due to VENDOR, or send an invoice to the VENDOR which shall be paid within thirty (30) days, the difference between the prices named in the contract or purchase order and the actual cost thereof to the CITY. In the event that the VENDOR fails to make prompt delivery as specified for any item, the same conditions as to the rights of the CITY to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government. Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the Bidder. Failure by CITY to inspect and accept or reject shall not relieve the VENDOR from responsibility for compliance with specifications. Final acceptance shall be conclusive except as regards to latent defects, fraud, or such gross mistakes as amount to fraud.

9. RESPONSIBILITY: Unless otherwise specified, the VENDOR shall be responsible for all GOODS until delivered at CITY’s designated delivery point and shall bear all risks as to items rejected or requiring correction after notice of such rejection or correction is given.

10. SHIPMENT: Unless otherwise authorized by CITY’s Purchasing Division, GOODS shall be delivered F.O.B. Destination Freight Prepaid, and noted as a separate line item on the invoice. VENDOR may not collect freight collect or charge shipping expenses otherwise to CITY. Original receipted freight bill must accompany the invoice. Shipment must be made within the time stated on Purchase Order, failing which CITY reserves the right to purchase elsewhere and charge VENDOR with any loss incurred, unless delay in making shipment is due to unforeseeable causes beyond the control and without the fault or negligence of VENDOR.

11. CHANGES: A purchase order may at any time, by written order of the CITY, be changed in regard to the GOODS to be furnished, quantities ordered, unit price, discount, delivery point or arrangements, terms or any other matters affecting a valid PO. In the event such change causes an increase or decrease in the cost of performance hereunder, and equitable adjustment will be made for the cost thereof, subject to the approval of the Purchasing Manager, and written notice given therefore.

12. WARRANTY: Notwithstanding any other provisions of the purchase order, VENDOR will facilitate all warranties for the GOODS that are offered by the manufacturer. GOODS shall be of the most suitable grade as specified in this AGREEMENT, VENDOR’s own marketing materials and in the purchase order.

Moreover, VENDOR warrants and represents that GOODS shall comply with warranties of merchantability and fitness for a particular purpose. If a defect is discovered in any GOODS covered in this AGREEMENT, VENDOR shall help facilitate resolution through the manufacuturer, , including transportation/freight..

13. INSURANCE: Any purchase order where work, maintenance, or service is performed on CITY property requires appropriate insurance. VENDOR shall ensure proper insurance certificates are on file with the CITY prior to performing onsite work. Contact CITY’s Purchasing Division to verify the type of insurance required.

14. TAX EXEMPTIONS: The CITY is exempt from payment of federal excise tax. All invoices shall be exclusive of such excise tax. Moreover, if the CITY’s purchase is not subject to sales tax, the statement for resale will appear in the body of the purchase order.

15. INDEMNITIES:

A. VENDOR agrees to protect, indemnify and save harmless CITY and its agents, officers, employees, and volunteers from any claim, loss or damage from VENDOR’s, or the GOODs’, infringement of trademarks, patents, copyrights and unfair competition action with to any third party. #16..
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4 B. VENDOR shall hold the CITY and its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of VENDOR, or its agents, officers, employees, or subcontractors relating to or during the performance of its obligations under this AGREEMENT. VENDOR’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement for VENDOR to procure and maintain a policy of insurance VENDOR.

16. GOVERNING LAW: This AGREEMENT shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, U.S.A., without giving effect to its conflicts of law provisions or principles.

17. VENUE: Venue for any dispute or claim arising or related to this AGREEMENT its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California.

18. ATTORNEYS’ FEES. If a party to this AGREEMENT brings any action, including an action for declaratory relief, to enforce or interpret the provision of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

19. LIMITATION OF LIABILITY: The CITY shall not be responsible for any damage that may accrue by reason of the death or injury of the person of the Vendor’s officers, agents, employees, invitees, or licensees, or be set up at any time because of personal injury or damage to property sustained by any other person or persons, which may have been caused or contributed to, approximately or remotely, by reason of or in the course of performance of the Purchase Order. The Vendor shall assume full responsibility for the defense of any claims arising under the Purchase Order and the Vendor shall save, keep, and bear harmless the City, all officers and employees thereof, from all damages, costs, or expenses because of personal injury or property damage based on the performance of this Purchase Order or asserted against it.

20. NOTICES: Any notice, payment or instrument required or permitted by this AGREEMENT to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid addressed as follows:

CONTRACTOR: Brian Wilkes
Administrative Manager
Burton’s Fire Inc.
1301 Doker Drive
Modesto, CA 95351
Phone: (209) 846-7414
Email: [email protected]
CITY: City of Modesto
Kim Presson, Buyer
P.O. Box 642
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5 Modesto, CA 95353
Phone: (209) 577-5375
Email: [email protected]
Either party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

21. ASSIGNMENT: Neither this AGREEMENT nor any portion hereof shall be subcontracted or assigned without the written consent of the City in each and every instance.

22. MISCELLANEOUS: Time is of the essence in each and every provision of this AGREEMENT.

23. ENTIRE AGREEMENT: This AGREEMENT and its exhibits contain the entire understanding between VENDOR and CITY. Additional or new terms contained in this AGREEMENT which vary from VENDOR’S bid are controlling and are deemed accepted by VENDOR by provision of any GOODS or other commencement of performance hereunder. The terms and conditions of the IFB, attached hereto as Exhibit C, are incorporated herein. In the event of a conflict between the IFB and this AGREEMENT, this AGREEMENT shall control. All previous bids, offers and communications relative to this AGREEMENT, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this AGREEMENT. No future waiver or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by the parties.

24. PARTIAL INVALIDITY: If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this AGREEMENT by its Director of Finance under authority of Resolution No. 2024- adopted by the Council of the City of Modesto on the _____________ day of _____________________, 2024 and Burton Fire has caused this Agreement to be duly executed. #16..
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Revised 1/19/2024
Bid Waiver Approval Form
Supplier Name: Amount of Bid Waiver Request:

Supplier Contact: Supplier Phone No:

Are Federal Funds being utilized for portion of purchase? A bid waiver is required for any procurement commitment greater than $ 3,500 where a minimum of three bids are not obtained.

Justification for waiving the competitive bid requirements is limited to the following (provide detailed information in the comments section of form):

Reason for Bid Waiver - Check Box:

Sole Source - The item/service is unique in its specifications such that only one vendor is qualified to provide the good or service (Formal bidding exception under MMC 8-3.204(b))
OEM - Original Equipment Manufacturer / Distributor
Inflexible time constraints preclude the bidding process - Exigent or mergency circumstances (Formal bidding exception under MMC 8-3.204 (c)) The incumbent's cost, delivery and quality can be compared to a previous quote/bid obtained within the last six months, for the same or similar item/service (Total purchase must be less than $100,000)
Professional Services defined under MMC 8-3.103 (Formal bidding exception under MMC 8-3.204 (a)) – staff should make effort to solicit at least three informal proposals.

Single Bid/Proposal – More than one supplier could provide the goods or service, but only one supplier provided bid/proposal for solicitation.

Amendment – Extending agreement for no more than one year to allow the City to complete formal bidding process for new agreement (MMC 8-3.204 (e)).

Amendment – Amending the goods or services under the existing agreement to include similar types of goods and services (MMC 8-3.204 (f)) Requisition No: Department:

Project Description:

The purchase of any item utilizing any Federal Funding must comply with current applicable Circular Yes No
Fleet
Fleet Parts for Fire Vehicles & Shop Rates
Burton's Fire Inc $1,020,000
Brian Wilkes (209)505-8911
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Revised 1/19/2024
Other (requires detailed comments)

NEW TECHNOLOGY PURCHASES
Does the new technology meet the criteria to be reviewed by the Technology Steering and Alignment Committee (TSAC)? Yes ____ No ____
If yes, was it approved by this committee? Yes ____ No ____ Approval Name Signature Date
Requestor
Division Manager
Department Director
Chief Information Officeri
Buyer
Purchasing Manager
Director of Finance

i
Information technology (IT) purchases will require Chief Information Officer Signature Buyer Comments:

Comments:

Kim Presson 5/2/2024
DeAnna Christensen May 3, 2024
Nani Hollingsworth (May 3, 2024 10:58 PDT) Nani Hollingsworth Nani Hollingsworth May 3, 2024 Dianne Love Dianne Love (May 6, 2024 17:34 PDT) May 6, 2024 DeAnna Christensen DeAnna Christensen (May 6, 2024 21:24 PDT) May 6, 2024 This is one of the vendors for Fleet that we have identified as needing to enter an agreement with. Burton's Fire is the Nothern California & Hawaii sales and services for the Rosenbauer America Fire Apparatus. Burton's has Rosenbauer America facotry trained technicians on staff to assist with any local service-related situations. We are being offered discount on parts and shop rates. I also have a signed Sole Source Letter signed by the Presidnet of Rosenbauer Amercia, LLC stating the above is true.

Attached Sole Source letter for Burton's Fire Inc re sales and services for Rosenbauer America apparatus and equipment.
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Contact

ROSENBAUER SOUTH DAKOTA, LLC
100 THIRD STREET
LYONS, SOUTH DAKOTA 57041
P: 605.543.5591
ROSENBAUER MINNESOTA, LLC. 5181 26TH STREET
P.O. BOX 549
WYOMING, MINNESOTA 55092
P: 651.462.1000
ROSENBAUER MOTORS, LLC.
5181 26TH STREET
P.O. BOX 549
WYOMING, MINNESOTA 55092
P: 651.462.1000
ROSENBAUER AERIALS, LLC.
870 SOUTH BROAD STREET
FREMONT, NEBRASKA 68025
P: 402.721.7622
April 18, 2024
City of Modesto
1010 10th Street
Suite 5200
Modesto, CA 95354
Re: Burton’s Fire Inc. Single Source Provider
Dear Sir / Madam:

This letter is written confirmation that Burton’s Fire Inc. is the sole, single source authorized Rosenbauer America sales and service dealer for the municipal fire market in Northern California & Hawaii. (Kern County North).

Burton’s Fire Inc.
1301 Doker Dr
Modesto, CA 95351
209-544-3161
This authorization pertains to sales and service of Rosenbauer America apparatus and equipment for the municipal fire market including the Battery Extinguishing System Technology (B.E.S.T.).

Burton’s Fire Inc. is able to offer sales, and in-state service, as well as installation, start-up & training, maintenance contracts and other types of after-sales service. Burton’s Fire Inc. is also an authorized stocking source for genuine Rosenbauer service and repair parts.

Burton’s Fire Inc. has Rosenbauer America factory trained technicians on staff to assist with any local service-related situations or requests.

Please contact Rosenbauer directly if you have any questions or require additional information.

Sincerely,
Randy Brummel
President
Rosenbauer America, LLC
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#16..
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Bid Waiver - Burton's Fire
Final Audit Report 2024-05-07
Created: 2024-05-03
By: Juana Lynch ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAA6bJDQ2gCHnty-S9Alh1QjrkAHhulB8S6 "Bid Waiver - Burton's Fire" History
Document created by Juana Lynch ([email protected]) 2024-05-03 - 3:39:55 PM GMT
Document emailed to Kim Presson ([email protected]) for signature 2024-05-03 - 3:45:59 PM GMT
Email viewed by Kim Presson ([email protected])
2024-05-03 - 4:32:04 PM GMT
Document e-signed by Kim Presson ([email protected]) Signature Date: 2024-05-03 - 4:32:25 PM GMT - Time Source: server Document emailed to DeAnna Christensen ([email protected]) for signature 2024-05-03 - 4:32:26 PM GMT
Email viewed by DeAnna Christensen ([email protected]) 2024-05-03 - 5:46:41 PM GMT
Document e-signed by DeAnna Christensen ([email protected]) Signature Date: 2024-05-03 - 5:47:08 PM GMT - Time Source: server Document emailed to [email protected] for signature 2024-05-03 - 5:47:09 PM GMT
Email viewed by [email protected]
2024-05-03 - 5:49:17 PM GMT
Signer [email protected] entered name at signing as Nani Hollingsworth 2024-05-03 - 5:58:38 PM GMT
Document e-signed by Nani Hollingsworth ([email protected]) Signature Date: 2024-05-03 - 5:58:40 PM GMT - Time Source: server #16..
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Document emailed to [email protected] for signature
2024-05-03 - 5:58:41 PM GMT
Email viewed by [email protected]
2024-05-07 - 0:33:13 AM GMT
Signer [email protected] entered name at signing as Dianne Love 2024-05-07 - 0:34:07 AM GMT
Document e-signed by Dianne Love ([email protected]) Signature Date: 2024-05-07 - 0:34:09 AM GMT - Time Source: server Document emailed to [email protected] for signature 2024-05-07 - 0:34:10 AM GMT
Email viewed by [email protected]
2024-05-07 - 4:18:51 AM GMT
Signer [email protected] entered name at signing as DeAnna Christensen 2024-05-07 - 4:24:50 AM GMT
Document e-signed by DeAnna Christensen ([email protected]) Signature Date: 2024-05-07 - 4:24:52 AM GMT - Time Source: server Agreement completed. 2024-05-07 - 4:24:52 AM GMT
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Exhibit C
Description Discount
Akron Valves, Nozzles, VMUX 20%
Class One/Hale 20%
Detroit Parts 20%
Freightliner 20%
International Truck Parts 20%
Pierce Parts 20%
Rosenbauer Parts Get Best Price
Waterous Parts 20%
Whelen Lighting 20%
*Discounts are reflected on each invoice list price then discounted price. #16..
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Exhibit C
Description Rate
Shop Rates (per hour) $175.00
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 9, 2024
Date: June 25, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Public Safety Fleet Replacement Vehicles
CONTACT: Dianne Love, Purchasing Manager, [email protected], 209-571-5164
DESCRIPTION:

Consider approving the purchase of various Fleet Replacements for Public Safety Fleet Vehicles which include twenty-two (22) Ford Interceptors and five (5) Chevrolet Tahoes in an amount not to exceed $1,980,238. (Funding Source: Fleet Replacement Fund) STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The Public Works Fleet Division provides the maintenance for all City vehicles and equipment.

Every year, City vehicles and equipment are individually evaluated based on their age, condition, mileage, and maintenance costs, including the addition of new vehicles due to the operational needs of the City. Following this process, a fleet replacement list is submitted to Council and is approved as part of a new fiscal year’s Public Works Fleet Budget.

As part of the FY 24-25 budget workshops during the week of April 15, 2024, it was determined there were a total of six (6) Ford Interceptors and one (1) Chevrolet Tahoe for a total of seven (7) vehicles in need of replacement for the Modesto Fire and Modesto Police Departments.

Upon further review, Public Works Fleet identified additional public safety vehicles in need of replacement. Public Works Fleet, working in collaboration with the police department, evaluated total cost of ownership (TCO) for first responder front line vehicles. This evaluation determined a significant increase in repair costs as these vehicles approach 100,000 service miles. Based on this evaluation, 20 additional vehicles were added to the list of vehicles in need of replacement. Due to major engine and transmission repairs, a majority of the vehicles experienced significant repair costs that resulted in the service life repair costs exceeding the value of a replacement vehicle. The range for lifecycle costs for repairs range between #17..
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City Council, July 9, 2024
Public Safety Fleet Replacement Vehicles

Page 2 of 3 ends

$50,000-$98,000, with an average repair cost of $67,600. This analysis was completed after the budget workshops and was not integrated into the City Budget for FY2024-25.

Exhibit A provides the vehicle history of the current replacement public safety vehicles capturing the age, meter reading and cumulative repair cost to manage this vehicle.

DISCUSSION:

IFB 23-24-106 Five (5) Chevrolet Tahoes and Twenty-two (22) Ford Interceptors On January 3, 2022, State of California, Department of General Services issued an Invitation for Bids under Event ID #0000020265 for Enforcement Vehicles and Police Pursuit on the State of California’s bidding website. On February 4, 2022, the bid opening was conducted at the State of California, Department of General Services at their Sacramento office. Three (3) bids were received and based on the lowest cost to a responsive and responsible bid, Folsom Lake Ford, Folsom, CA was awarded the agreement for the Ford Interceptors under State Contract #1-22- 23-14C and Winner Chevrolet was awarded the bid for Chevrolet Tahoes under State Contract #1-22-23-14B. Based on the lowest responsive and responsible bid, City staff recommends to award to Folsom Lake Ford, Folsom, CA for the purchase of twenty-two (22) Ford Interceptors in an amount not to exceed $1,374,633 and Winner Chevrolet, CA for the purchase of five (5) Chevrolet Tahoes in an amount not to exceed $347,311.

State of California is the public agency which facilitated the bidding process to allow the City to utilize a cooperative agreement with the awarding vendor(s) to streamline the procurement process by developing IFBs or Request for Proposals (RFP)’s for national competitive solicitations that meet or exceed local requirements. The competitive process is continually refined to best meet agency needs and allows State of California to offer exceptional products from nationally acclaimed vendors.

Modesto Municipal Code Section 8-3.203 generally requires all purchases that 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 her discretion, determines that a process other than the formal bid procedure set for in Section 8-3.203 will result in a 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 or other units of government in cooperative purchasing plans when the best cost savings interest of the City would be served.

By utilizing the State of California bidding process, the City is complying with the requirements defined under this code for the twenty-two (22) Ford Police Interceptors and five (5) Chevrolet Tahoes.

For all vehicles and equipment, City staff recommends applying a change order of up to 15% in case any market changes occur between the timeframe of when the order is placed with the vendor and when the production of the vehicle is completed. With current inflation and the volatile vehicle market, City staff will ensure any price increases requested by the vendor align with the market change based on using the Commodities Research Unit indexes which focuses on indexes related to steel.

With the new California Air Resource Board (CARB) zero-emission regulations as described in the Advanced Clean Fleets Regulation for State and Local Government Agency Fleet Requirements, § Section 2013(c)4, Under State and Local Government Fleet Applicability, #17..
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City Council, July 9, 2024
Public Safety Fleet Replacement Vehicles

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Definitions, and General Requirements, California Vehicle Code (CVC) Section 165, emergency vehicles are exempt under the current regulation to convert from internal combustion engines (ICE) to zero-emission vehicles.

FISCAL IMPACT:

Sufficient funds for the twenty-two (22) Ford Police Interceptors and five (5) Chevrolet Tahoes are budgeted in Fiscal Year 24-25 in the Fleet Replacement Fund.

Below is a summary of the Fleet Replacements:

IFB No. Type of Fleet
Original
Amount
Change
Order
Amount not
to Exceed
2324-106 Five (5) Chevy Tahoes $ 347,311 $ 52,098 $ 399,409 2324-106 Twenty-two (22) Ford Interceptors $ 1,374,633 $ 206,196 $ 1,580,829 Grand Total $ 1,721,944 $ 258,294 $ 1,980,238
COMMITTEE RECOMMENDATION:

This item was presented at the June 24, 2024, Finance Committee and approved to move forward to Council.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Competitive Bidding Process from the State of California, Department of General Services to Folsom Lake Ford, Folsom, CA for the purchase of twenty-two (22) Ford Police Interceptors for an amount not to exceed $1,374,633; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.

Resolution approving the Competitive Bidding Process from the State of California, Department of General Services to Winner Chevrolet, Elk Grove, CA for the purchase of five (5) Chevrolet Tahoes for an amount not to exceed $347,311 and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.

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

1. Resolutions (2)

2. Exhibit A - Vehicle History of Existing Public Safety Replacement Vehicles

3. Quote – Folsom Lake Ford - (22) Ford Police Interceptors

4. Quote – Winner Chevrolet – (5) Chevrolet Tahoes
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE COMPETITIVE BIDDING PROCESS FROM

THE STATE OF CALIFORNIA, DEPARTMENT OF GENERAL SERVICES TO FOLSOM LAKE FORD, FOLSOM, CA FOR THE PURCHASE OF TWENTYTWO (22) FORD POLICE INTERCEPTORS FOR AN AMOUNT NOT TO EXCEED $1,374,633; AND AUTHORIZING THE PURCHASING MANAGER OR HER DESIGNEE TO ISSUE THE PURCHASE ORDER; AND AUTHORIZING

THE PURCHASING MANAGER OR HER DESIGNEE TO EXECUTE ANY
CHANGE ORDERS NOT TO EXCEED 15% OF THE TOTAL PURCHASE
PRICE
WHEREAS, the Public Works Fleet Division provides the maintenance for all City vehicles and equipment; and
WHEREAS, every year, City vehicles and equipment are individually evaluated based on their age, condition, mileage, and maintenance costs, including the addition of new vehicles due to the operational needs of the City; and WHEREAS, on January 3, 2022, State of California, Department of General Services issued an Invitation for Bids under Event ID #0000020265 for Enforcement Vehicles and Police Pursuit on the State of California’s bidding website. On February 4, 2022, the bid opening was conducted at the State of California, Department of General Services at their Sacramento office; and
WHEREAS, three (3) bids were received and based on the lowest cost to a responsive and responsible bid, Folsom Lake Ford, Folsom, CA was awarded the agreement for the Ford Interceptors under State Contract #1-22-23-14C; and WHEREAS, based on the lowest responsive and responsible bid, City staff recommends to award to Folsom Lake Ford, Folsom, CA for the purchase of twenty-two (22) Ford Interceptors in an amount not to exceed $1,374,633; and #17..
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2 WHEREAS, State of California conducted a public competitive bidding process which can be utilized by other government agencies to streamline the procurement process by developing Invitation for Bids (IFB)’s and Request for Proposals (RFP)’s for national competitive solicitations that meet or exceed local requirements; and WHEREAS, the competitive process is continually refined to best meet agency needs and allows State of California to offer exceptional products from nationally acclaimed vendors; and
WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases that 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 her discretion, determines that a process other than the formal bid procedure set for in Section 8-3.203 will result in a procurement for the City at the lowest possible cost commensurate with the desired quality.” By utilizing the State of California bidding process, the City is complying with this requirement for the purchase of the twenty-two (22) Ford Police Interceptors by utilizing the State of California bidding process since it complies with the City of Modesto’s bidding process; and
WHEREAS, MMC 8-3.202(h) encourages the Purchasing Manager to join with the State of California or other units of government in cooperative purchasing plans when the best cost savings interest of the City would be served.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the competitive bidding process from the State of California, #17..
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3 Department of General Services to Folsom Lake Ford, Folsom, CA for the purchase of twenty-two (22) Ford Police Interceptors for an amount not to exceed $1,374,633.

BE IT FURTHER RESOLVED, that the Purchasing Manager, or her designee, is hereby authorized to issue the Purchase Order.

BE IT FURTHER RESOLVED, that the Purchasing Manager, or her designee, is hereby authorized to execute any change orders not to exceed 15% of the total purchase price.
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4 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of July, 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
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE COMPETITIVE BIDDING PROCESS FROM

THE STATE OF CALIFORNIA, DEPARTMENT OF GENERAL SERVICES TO WINNER CHEVROLET, ELK GROVE, CA FOR THE PURCHASE OF FIVE (5) CHEVROLET TAHOES FOR AN AMOUNT NOT TO EXCEED $347,311; AND

AUTHORIZING THE PURCHASING MANAGER OR HER DESIGNEE TO
ISSUE THE PURCHASE ORDER; AND AUTHORIZING THE PURCHASING

MANAGER OR HER DESIGNEE TO EXECUTE ANY CHANGE ORDERS NOT TO EXCEED 15% OF THE TOTAL PURCHASE PRICE
WHEREAS, the Public Works Fleet Division provides the maintenance for all City vehicles and equipment; and
WHEREAS, every year, City vehicles and equipment are individually evaluated based on their age, condition, mileage, and maintenance costs, including the addition of new vehicles due to the operational needs of the city; and WHEREAS, on January 3, 2022, State of California, Department of General Services issued an Invitation for Bids under Event ID #0000020265 for Enforcement Vehicles and Police Pursuit on the State of California’s bidding website. On February 4, 2022, the bid opening was conducted at the State of California, Department of General Services at their Sacramento office; and
WHEREAS, three (3) bids were received and based on the lowest cost to a responsive and responsible bid, Winner Chevrolet was awarded the bid for Chevrolet Tahoes under State Contract #1-22-23-14B; and
WHEREAS, based on the lowest responsive and responsible bid, City staff recommends to award to Winner Chevrolet for the purchase of five (5) Chevrolet Tahoes in an amount not to exceed $347,311; and
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2 WHEREAS, State of California conducted a public competitive bidding process which can be utilized by other government agencies to streamline the procurement process by developing Invitation for Bids (IFB)’s and Request for Proposals (RFP)’s for national competitive solicitations that meet or exceed local requirements; and WHEREAS, the competitive process is continually refined to best meet agency needs and allows State of California to offer exceptional products from nationally acclaimed vendors; and
WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases that 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 her discretion, determines that a process other than the formal bid procedure set forth in Section 8-3.203 will result in a procurement for the City at the lowest possible cost commensurate with the desired quality.” By utilizing the State of California bidding process, the City is complying with this requirements for purchase of the five (5) Chevrolet Tahoes; and WHEREAS, MMC 8-3.202(h) encourages the Purchasing Manager to join with the State of California or other units of government in cooperative purchasing plans when the best cost savings interest of the City would be served.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the competitive bidding process from the State of California, Department of General Services to Winner Chevrolet, Elk Grove, CA for the purchase of five (5) Chevrolet Tahoes for an amount not to exceed $347,311. #17..
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3 BE IT FURTHER RESOLVED, that the Purchasing Manager, or her designee, is hereby authorized to issue the Purchase Order.

BE IT FURTHER RESOLVED, that the Purchasing Manager, or her designee, is hereby authorized to execute any change orders not to exceed 15% of the total purchase price.
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4 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of July, 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
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Exhibit A
Vehicle History of Existing Public Safety Replacement Vehicles IFB Vehicle # # Description Department Year of
Vehicle Meter Repair Cost
#2324-106 32036 1 INTERCEPTOR POLICE 2020 61,647 $ 55,032.83 32156 2 INTERCEPTOR POLICE 2021 62,041 $ 24,220.19
32046 3 INTERCEPTOR POLICE 2020 63,323 $ 32,177.13
31894 4 INTERCEPTOR POLICE 2018 64,606 $ 51,919.77
32010 5 INTERCEPTOR POLICE 2020 66,420 $ 42,771.34
32138 6 INTERCEPTOR POLICE 2021 67,828 $ 30,584.82
32123 7 INTERCEPTOR POLICE 2021 69,692 $ 36,751.14
31795 8 INTERCEPTOR POLICE 2017 70,977 $ 70,575.26
31553 9 INTERCEPTOR POLICE 2015 72,771 $ 96,848.62
31814 10 INTERCEPTOR POLICE 2018 74,902 $ 45,406.42
31830 11 INTERCEPTOR POLICE 2018 77,785 $ 60,181.10
31863 12 INTERCEPTOR POLICE 2018 80,505 $ 68,161.18
31635 13 INTERCEPTOR POLICE 2016 86,604 $ 68,542.70
31732 14 INTERCEPTOR POLICE 2017 86,605 $ 53,481.75
31615 15 INTERCEPTOR POLICE 2016 92,354 $ 98,711.72
31648 16 INTERCEPTOR POLICE 2016 94,835 $ 81,969.39
31804 17 INTERCEPTOR POLICE 2018 94,956 $ 65,247.74
31628 18 INTERCEPTOR POLICE 2016 100,111 $ 69,227.82
31611 19 INTERCEPTOR POLICE 2016 102,921 $ 65,384.16
11033 20 CROWN VICTORIA POLICE 2010 103,506 $ 84,062.61 11030 21 INTERCEPTOR POLICE 2018 133,601 $ 51,623.37
10694 22 INTERCEPTOR POLICE 2018 120,213 $ 75,851.70
31701 23 INTERCEPTOR POLICE 2016 40,340 $ 33,603.32
11063 24 INTERCEPTOR POLICE 2018 130,811 $ 51,338.20
11014 25 INTERCEPTOR POLICE 2018 134,550 $ 50,105.44
11404 26 INTERCEPTOR POLICE 2018 77,832 $ 75,719.74
31563 27 TAHOE FIRE 2015 97,197 $ 19,057.94
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Line Description QTY Per Unit Price Extended Price
1 2024 Ford Police Interceptor Utility AWD 3.3L V6 Gas Enging. 22 $56,991.00 $1,253,802.00 2 Documentation Fee 22 $85.00 $1,870.00
3 Sales Tax (8.875%) 22 $5,065.50 $111,441.00
4 Delivery to Modesto (non-taxable) 22 $300.00 $6,600.00 5 DMV Electronic Fee (non-taxable) 22 $33.00 $726.00
6 California Tire Fee (non-taxable) 22 $8.75 $192.50
FINAL PRICE $62,483.25 $1,374,631.50
Quote #6062024 Folsom Lake Ford State of California Contract #1-22-23-14C #17..

Line Description QTY Per Unit Price Extended Price
1 2024 Tahoe - (Police) engine size etc 4 $63,784.00 $255,136.00 2 Documentation Fee 4 $85.00 $340.00
3 Sales Tax (8.875%) 4 $5,668.37 $22,673.48
4 Delivery to Modesto (non-taxable) 4 $250.00 $1,000.00 5 DMV Electronic Fee (non-taxable) 4 $0.00
6 California Tire Fee (non-taxable) 4 $8.75 $35.00
FINAL PRICE $69,796.12 $279,184.48
Quote #C5801G Winner Chevrolet State of California Contract #1-22-23-14B Line Description QTY Per Unit Price Extended Price
1 2024 Tahoe (Fire) - engine size etc 1 $62,250.00 $62,250.00 2 Documentation Fee 1 $85.00 $85.00
3 Sales Tax (8.875%) 1 $5,532.23 $5,532.23
4 Delivery to Modesto (non-taxable) 1 $250.00 $250.00
5 DMV Electronic Fee (non-taxable) 1 $0.00
6 California Tire Fee (non-taxable) 1 $8.75 $8.75
FINAL PRICE $68,125.98 $68,125.98
Quote #C5800G Winner Chevrolet State of California Contract #1-22-23-14D OVERALL TOTAL $347,310.46
#17..

Winner Chevrolet DATE June 7, 2024
To: Kim Presson Quotation # C5800G
City of Modesto
916-509-8595 1609 8th Street
916-813-4592 Modesto, CA 95354
Prepared by: Casey De Koning
(209) 577-5375
Comments or special instructions: Vehicle build and options are in additional pages.

AMOUNT
$ 52,700.00
$ 3,825.00
$ 5,725.00
$ 62,250.00
DOC Fee $ 85.00
Taxable Subtotal: $ 62,335.00

8.875% $ 5,532.23
Tire Fee: $8.75
$ 250.00
Total: 68,125.98 $
If you have any questions concerning this quotation, contact Jerry Powers at 916-426-5752 or email at [email protected]
Line 3 Chevrolet Tahoe 4x4
Options (Refer to Window Sticker):
****Disclaimer****
Delivery Charge:

These prices for the vehicle are just place holders. There will be increases for the vehicle **** specs with the PO or the vehicle will not be ordered. **** Subtotal
for 2025 and the price shown is an estimated amount. The Department understands that a PO may have to be modified at a later date.
**** Please review, sign, and return a copy of the quote and **** ___________________________________________________
7220 Fawn Way,
Sacramento, CA 95823
State Contract # 1-22-23-23D
****Shipping charge added for deliveries beyond Sacramento. No charge for will call.**** CA Tire Fee: $1.75 / Per Tire
Tax Rate(Subject to change):

Description
Upgrade to 2025 Model Year/SSV
(Order Acknowledgment Signature) (Date)
THANK YOU FOR YOUR BUSINESS!
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Casey De Koning | 916-813-4592 | [email protected] Vehicle: [Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial #17..
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Casey De Koning | 916-813-4592 | [email protected] This document contains information considered Confidential between GM and its Clients uniquely. The information provided is not intended for public disclosure. Prices, specifications, and availability are subject to change without notice, and do not include certain fees, taxes and charges that may be required by law or vary by manufacturer or region.

Performance figures are guidelines only, and actual performance may vary. Photos may not represent actual vehicles or exact configurations. Content based on report preparer’s input is subject to the accuracy of the input provided.

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Table of Contents
• Dealership Information
• Window Sticker
• Standard Equipment
• Weight Rating
• Technical Specifications
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Elk Grove Auto Group/Winner Chevrolet, Inc.

Prepared By:

Casey De Koning
Elk Grove Auto Group/Winner Chevrolet, Inc.
916-813-4592
[email protected]
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Elk Grove Auto Group/Winner Chevrolet, Inc.

Casey De Koning | 916-813-4592 | [email protected] Vehicle: [Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial ( Complete ) This document contains information considered Confidential between GM and its Clients uniquely. The information provided is not intended for public disclosure. Prices, specifications, and availability are subject to change without notice, and do not include certain fees, taxes and charges that may be required by law or vary by manufacturer or region.

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Window Sticker

SUMMARY
[Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial Interior:Jet Black, Cloth seat trim
Exterior 1:Special Paint
Exterior 2:No color has been selected.

Engine, 5.3L EcoTec3 V8
Transmission, 10-speed automatic

OPTIONS

CODE MODEL MSRP
CK10706 [Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial

OPTIONS
01U Special Paint $0.00
1FL Commercial Preferred Equipment Group $0.00
5J0 Calibration, Front (only) Park Assist Disable. $0.00 5J3 Calibration, Surveillance Mode interior lighting Inc. 5J9 Calibration, taillamp flasher, Red/White Inc.
5LO Calibration, taillamp flasher, Red/Red Inc.
5T4 Special paint, Victory Red WA 9260 $250.00
5W4 Identifier for Special Service vehicle $0.00
5Y1 Front center seat (20% seat) delete $0.00
6C7 Lighting, red and white front auxiliary dome $170.00 6J3 Wiring, grille lamps and siren speakers $92.00
6J4 Wiring, horn and siren circuit $55.00
6J7 Flasher system, headlamp and taillamp, DRL compatible with control wire
Inc.
6J9 Red Left/Red Right Whelen LED Lamp Package $1,950.00 AKP Glass, solar absorbing, non tinted
AMF Remote Keyless Entry Package $75.00
ATD Seat delete, third row passenger Inc.

ATZ Seat delete, second row ($412.00)
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AX2 Key, unique Inc.

AZ3 Seats, front 40/20/40 split-bench $0.00
BCV Lock control, driver side auto door lock disable Inc.

C6H GVWR, 7500 lbs. (3402 kg) $0.00
CWA Rear Camera Mirror Washer Inc.

DRZ Rear Camera Mirror, inside rearview auto-dimming $475.00 GU5 Rear axle, 3.23 ratio $0.00
H1T Jet Black, Cloth seat trim $0.00
IOR Audio system, Chevrolet Infotainment 3 system, 8" diagonal HD color touchscreen
$0.00
K3W Battery, 850 cold-cranking amps with 95 amp hour rating Inc.

K6K Battery, auxiliary, 760 cold-cranking amps with 70 amp hour rating Inc.

KX4 Alternator, 250 amps Inc.

L84 Engine, 5.3L EcoTec3 V8 $0.00
MHU Transmission, 10-speed automatic Inc.

PZX Wheels, 18" x 8.5" (45.7 cm x 21.6 cm) Bright Silver painted aluminum
$0.00
QDF Tires, 265/65R18SL all-season, blackwall $0.00
RC1 Skid plate, front Inc.

RM7 Wheel, full-size spare 17" x 8" (43.2 cm x 20.3 cm) steel Inc.

T53 Lamps, alternate flashing Red & Blue rear compartment lid warning $565.00 T66 Wiring provision, for outside mirrors and cargo side mirrors Inc.

TGK Special Paint, one color $450.00
UN9 Radio Suppression Package, with ground straps $95.00 UT7 Ground wires, blunt cut cargo area and blunt cut console area Inc.

V53 Luggage rack side rails, delete Inc.

VK3 License plate front mounting package $0.00
VPV Ship Thru, Produced in Arlington Assembly and shipped to Kerr Industries and onto Arlington Assembly
$0.00
VQ2 Fleet processing option $0.00
VXT Incomplete vehicle Inc.

VZ2 Speedometer calibration Inc.

WUA Fascia, front high-approach angle Inc.
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WX7 Wiring, auxiliary speaker. $60.00
YF5 Emissions, California state requirements $0.00
ZW7 Suspension Package, Premium Smooth Ride $0.00
___ Capless Fuel Fill Inc.
___ Exterior ornamentation delete Inc.
___ Instrumentation, analog Inc.
___ Theft-deterrent system, vehicle, PASS-Key III Inc.
___ Power supply, 50-amp, power supply, auxiliary battery Inc. ___ Power supply, 100-amp, auxiliary battery, rear electrical center Inc. ___ Power supply, 120-amp, (4) 30-amp circuit, Primary battery Inc. ___ Seat belts, 3-point, all seating positions Inc.
___ Protected idle Inc.

FUEL ECONOMY
Est City:14 (2023) MPG
Est Highway:20 (2023) MPG
Est Highway Cruising Range:480.00 mi
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Standard Equipment
Mechanical
Engine, 5.3L EcoTec3 V8 with Dynamic Fuel Management, Direct Injection and Variable Valve Timing, includes aluminum block construction (355 hp [265 kW] @ 5600 rpm, 383 lb-ft of torque [518 Nm] @ 4100 rpm) (STD) Transmission, 10-speed automatic electronically controlled with overdrive, includes Traction Select System including tow/haul (STD)
Rear axle, 3.23 ratio
Suspension Package, Premium Smooth Ride (STD)
GVWR, 7500 lbs. (3402 kg) (4WD models only.) (STD)
Keyless start, push button
Automatic Stop/Start
Engine control, stop/start system disable button, non-latching Engine air filtration monitor
Fuel, gasoline, E15
Transfer case, active, single-speed, electronic Autotrac does not include neutral. Cannot be dinghy towed (4WD models only. Deleted when (NHT) Max Trailering Package is ordered.) Differential, mechanical limited-slip
4-wheel drive
Air filter, heavy-duty
Cooling, external engine oil cooler, heavy-duty air-to-oil integral to driver side of radiator Cooling, auxiliary transmission oil cooler, heavy-duty air-to-oil Battery, 730 cold-cranking amps with 80 amp hour rating Alternator, 220 amps
Trailering equipment includes trailering hitch platform, 7-wire harness with independent fused trailering circuits mated to a 7-way connector and 2" trailering receiver
Trailer sway control
Hitch Guidance
Suspension, front coil-over-shock with stabilizer bar
Suspension, rear multi-link with coil springs
Steering, power
Brakes, 4-wheel antilock, 4-wheel disc with DURALIFE rotors Exhaust, single system, single-outlet
Mechanical Jack with tools
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Exterior
Wheels, 18" x 8.5" (45.7 cm x 21.6 cm) Bright Silver painted aluminum (STD) Tires, 265/65R18SL all-season, blackwall (Standard with (PZX) 18" Bright Silver painted aluminum wheels only.) (STD)
Wheel, full-size spare, 17" (43.2 cm)
Tire, spare P265/70R17 all-season, blackwall
Tire carrier, lockable outside spare, winch-type mounted under frame at rear Active aero shutters, upper
Fascia, front
Luggage rack side rails, roof-mounted, Black, standard (Available with (5W4) Special Services Vehicle.) Assist steps, Black with chrome accent strip
Headlamps, LED
Lamps, stop and tail, LED
Mirrors, outside heated power-adjustable, manual-folding, body-color Mirror caps, body-color
Glass, deep-tinted (all windows, except light-tinted glass on windshield and driver- and front passenger-side glass)
Glass, acoustic, laminated
Glass, windshield shade band
Windshield, solar absorbing
Wipers, front intermittent, Rainsense
Wiper, rear intermittent with washer
Door handles, body-color
Liftgate, rear manual
Entertainment
Audio system, Chevrolet Infotainment 3 system, 8" diagonal HD color touchscreen AM/FM stereo, Bluetooth audio streaming for 2 active devices, voice command pass-through to phone, Wireless Apple CarPlay and Wireless Android Auto compatibility (STD)
Audio system feature, 6-speaker system
SiriusXM, delete
Infotainment display, 8" diagonal touchscreen
Bluetooth for phone personal cell phone connectivity to vehicle audio system Wireless Apple CarPlay/Wireless Android Auto
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Entertainment
Wi-Fi Hotspot capable (Standard with (UE1) OnStar only. Terms and limitations apply. See onstar.com or dealer for details.)
Interior
Seats, front 40/20/40 split-bench (Not available with (D07) center floor console and (USR) USB data ports.) (STD)
Seat trim, cloth
Seat adjusters, 8-way power includes 6-way power front passenger seat with 2-way power lumbar Seat adjusters, 10-way power includes 8-way power driver seat with 2-way power lumbar Seats, second row 60/40 split-folding bench, manual
Seats, third row 60/40 split-folding bench, manual (Not available with (9C1) Police Vehicle or (5W4) Special Service Vehicle.)
Floor covering, Black rubberized vinyl (Deleted when (B30) floor covering is ordered.) Electronic Precision Shift
Steering column lock, electrical
Steering column, manual tilt and telescopic
Steering wheel, urethane
Steering wheel controls, mounted audio, Driver Information Center, cruise control and Forward Collision Alert following gap button (if equipped) (left backside Seek/Scan steering wheel radio buttons are inoperable; these 2 buttons can be repurposed for aftermarket emergency equipment) Driver Information Center, 4.2" diagonal color display includes driver personalization Rear Seat Reminder
Door locks, power programmable with lockout protection and delayed locking (When ordered with (9C1) Police Vehicle or (5W4) Special Service Vehicle, Auto Lockout is disabled on driver door.) Keyless Open includes extended range Remote Keyless Entry Cruise control, electronic with set and resume speed
Theft-deterrent system, content, electrical, unauthorized entry USB data ports, 4 total; 2, one-type-A and one type-C located within center console and 2, one type-A and one type-C located on instrument panel
USB charging-only ports, 4 type-C, (2) located on rear of center console and (2) in 3rd row (1 left and 1 right side below quarter glass side window) (When ordered with (9C1) Police Vehicle or (5W4) Special Service Vehicle, (2) type-C ports are moved to the rear of center seat base and (2) type-C are moved to the cargo area.

Deleted when (A50) front bucket seats are ordered.)
Window, power with driver Express-Up/Down
Window, power with front passenger Express-Up/Down
Windows, power with rear Express-Down
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Interior
Air conditioning, tri-zone automatic climate control with individual climate settings for driver, right front passenger and rear seat occupants
Air conditioning, rear
Defogger, rear-window electric
Power outlets, 2, 120-volt, located on the rear of the center seat and rear cargo area Power outlet, front auxiliary, 12-volt, located in the center stack of instrument panel Mirror, inside rearview manual day/night
Visors, driver and front passenger illuminated vanity mirrors, sliding Assist handles, overhead, driver and front passenger, located in headliner Assist handles, front passenger A-pillar and second row outboard B-pillar (Deleted when SEO (7X2) left- and right-hand spotlamps or SEO (7X3) left-hand spotlamp are ordered.) Lighting, interior with dome light, driver- and passenger-side door switch with delayed entry feature, cargo lights, door handle or Remote Keyless Entry-activated illuminated entry and map lights in front and second seat positions. On Police/Special Service vehicles, the control switch is located in the roof console in lieu of the driver - and passenger-side door switch with delayed entry feature.

Cargo management system
Chevrolet Connected Access capable (Subject to terms. See onstar.com or dealer for details.) Safety-Mechanical
Automatic Emergency Braking
Hill Start Assist
StabiliTrak, stability control system with brake assist, includes traction control Safety-Exterior
Daytime Running Lamps, reduced intensity low beam
Safety-Interior
Airbags, Frontal airbags for driver and front outboard passenger; Seat-mounted side-impact airbags for driver and front outboard passenger; Head-curtain airbags for all rows in outboard seating positions (Deleted when (A50) front bucket seats are ordered. Always use seat belts and child restraints. Children are safer when properly secured in a rear seat in the appropriate child restraint. See the Owner's Manual for more information.) Front outboard Passenger Sensing System for frontal outboard passenger airbag (Always use seat belts and child restraints. Children are safer when properly secured in a rear seat in the appropriate child restraint. See the Owner's Manual for more information.)
OnStar and Chevrolet connected services capable (Terms and limitations apply. See onstar.com or dealer for details.)
Front and Rear Park Assist
Following Distance Indicator (Deleted when (9C1) Police Vehicle or (5W4) Special Service Vehicle is ordered.) #17..
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Safety-Interior
HD Rear Vision Camera
Front Pedestrian Braking (Deleted when (9C1) Police Vehicle or (5W4) Special Service Vehicle is ordered.) Lane Keep Assist with Lane Departure Warning (Deleted when (9C1) Police Vehicle or (5W4) Special Service Vehicle is ordered.)
Forward Collision Alert (Deleted when (9C1) Police Vehicle or (5W4) Special Service Vehicle is ordered.) Buckle to Drive prevents vehicle from being shifted out of Park until driver seat belt is fastened; times out after 20 seconds and encourages seat belt use, can be turned on and off in Settings or Teen Driver menu (When ordered with (9C1) Police Vehicle or (5W4) Special Service Vehicle, defaulted off. Feature can be turned on in the Infotainment menu.)
Door locks, rear child security, manual
LATCH system (Lower Anchors and Tethers for CHildren), for child restraint seats lower anchors and top tethers located in all second-row seating positions (Deleted when (ATZ) second row seat delete is ordered.) Teen Driver a configurable feature that lets you activate customizable vehicle settings associated with a key fob, to help encourage safe driving behavior. It can limit certain available vehicle features, and it prevents certain safety systems from being turned off. An in-vehicle report card gives you information on driving habits and helps you to continue to coach your new driver
Tire Pressure Monitoring System auto learn, includes Tire Fill Alert (does not apply to spare tire) Warning tones headlamp on, driver and right-front passenger seat belt unfasten and turn signal on 3 Years of OnStar Remote Access. The OnStar Remote Access Plan gives you simplified remote control of your properly equipped vehicle and unlocks a variety of great features in your myChevrolet mobile app. See dealer for details. (Deleted when (UDA) vehicle deactivated communication system is ordered. OnStar Remote Access Plan does not include emergency or security services. Fleet customers will get Fleet Remote Access through OnStar Vehicle Insights. See onstar.com for details and limitations. Available on select Apple and Android devices. Service availability, features and functionality vary by vehicle, device, and the plan you are enrolled in.

Terms apply. Device data connection required.)

WARRANTY
Basic Years: 3
Basic Miles/km: 36,000
Drivetrain Years: 5
Drivetrain Miles/km: 60,000
Drivetrain Note: 3.0L & 6.0L Duramax® Turbo-Diesel engines, and certain commercial, government, and qualified fleet vehicles: 5 years/100,000 miles
Corrosion Years (Rust-Through): 6
Corrosion Years: 3
Corrosion Miles/km (Rust-Through): 100,000
Corrosion Miles/km: 36,000
Roadside Assistance Years: 5
Roadside Assistance Miles/km: 60,000
Roadside Assistance Note: 3.0L & 6.0L Duramax® Turbo-Diesel engines, and certain commercial, government, and qualified fleet vehicles: 5 years/100,000 miles
Maintenance Note: First Visit: 12 Months/12,000 Miles
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Weight Ratings

WEIGHT RATINGS
Front Gross Axle Weight Rating: 3700 lbs
Rear Gross Axle Weight Rating: 4300 lbs
Gross Vehicle Weight Rating: 7500.00 lbs
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Technical Specifications
Powertrain
Transmission
Drivetrain Four Wheel Drive Trans Order Code MHU
Trans Type 10 Trans Description Cont. Automatic
Trans Description Cont. Again N/A First Gear Ratio (:1) 4.69 Second Gear Ratio (:1) 2.98 Third Gear Ratio (:1) 2.14
Fourth Gear Ratio (:1) 1.77 Fifth Gear Ratio (:1) 1.52
Sixth Gear Ratio (:1) 1.27 Reverse Ratio (:1) 4.86
Clutch Size N/A Trans Power Take Off N/A
Final Drive Axle Ratio (:1) N/A Transfer Case Model N/A Transfer Case Gear Ratio (:1), High 1 Transfer Case Gear Ratio (:1), Low N/A Transfer Case Power Take Off N/A Seventh Gear Ratio (:1) 1.00 Eighth Gear Ratio (:1) 0.85 Ninth Gear Ratio (:1) 0.69
Tenth Gear Ratio (:1) 0.63
Mileage
EPA Fuel Economy Est - Hwy 20 (2023) MPG Cruising Range - City 336.00 mi EPA Fuel Economy Est - City 14 (2023) MPG Fuel Economy Est-Combined 16 (2023) MPG Cruising Range - Hwy 480.00 mi Estimated Battery Range N/A Engine
Engine Order Code L84 Engine Type Gas V8
Displacement 5.3L/-TBD- Fuel System Direct Injection
SAE Net Horsepower @ RPM 355 @ 5600 SAE Net Torque @ RPM 383 @ 4100 Engine Oil Cooler N/A
Electrical
Cold Cranking Amps @ 0° F (Primary) 850 Cold Cranking Amps @ 0° F (2nd) N/A Cold Cranking Amps @ 0° F (3rd) N/A Maximum Alternator Capacity (amps) N/A Cooling System
Total Cooling System Capacity N/A
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Vehicle
Emissions
Tons/yr of CO2 Emissions @ 15K mi/year 11 (2023) EPA Greenhouse Gas Score N/A Vehicle
Rear Door Type Liftgate
Chassis
Weight Information
Standard Weight - Front 0.00 lbs Standard Weight - Rear 0.00 lbs Base Curb Weight N/A Gross Axle Wt Rating - Front 3700 lbs Gross Axle Wt Rating - Rear 4300 lbs Curb Weight - Front 2852 lbs Curb Weight - Rear 2701 lbs Option Weight - Front 0.00 lbs Option Weight - Rear 0.00 lbs Reserve Axle Capacity - Front 848.00 lbs Reserve Axle Capacity - Rear 1599.00 lbs As Spec'd Curb Weight 5553.00 lbs As Spec'd Payload 1947.00 lbs Maximum Payload Capacity 1947.00 lbs Gross Combined Wt Rating 14000 lbs Gross Axle Weight Rating 8000.00 lbs Curb Weight 5553.00 lbs Reserve Axle Capacity 2447.00 lbs Total Option Weight 0.00 lbs Payload Weight Front 0 lbs Payload Weight Rear 0 lbs Gross Vehicle Weight Rating 7500.00 lbs Trailering
Dead Weight Hitch - Max Trailer Wt. 5000 lbs Dead Weight Hitch - Max Tongue Wt. 500 lbs Wt Distributing Hitch - Max Trailer Wt. 7700 lbs Wt Distributing Hitch - Max Tongue Wt. 770 lbs Fifth Wheel Hitch - Max Trailer Wt. N/A Fifth Wheel Hitch - Max Tongue Wt. N/A Maximum Trailering Capacity 8200 lbs
Frame
Frame Type N/A Sect Modulus Rails Only N/A
Frame RBM N/A Frame Strength N/A
Frame Thickness N/A
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Chassis
Suspension
Suspension Type - Front Independent Suspension Type - Rear Multi-Link Spring Capacity - Front N/A Spring Capacity - Rear N/A
Axle Type - Front N/A Axle Type - Rear N/A
Axle Capacity - Front N/A Axle Capacity - Rear N/A
Axle Ratio (:1) - Front 3.23 Axle Ratio (:1) - Rear 3.23 Shock Absorber Diameter - Front N/A Shock Absorber Diameter - Rear N/A Stabilizer Bar Diameter - Front N/A Stabilizer Bar Diameter - Rear N/A Tires
Front Tire Order Code QDF Rear Tire Order Code QDF
Spare Tire Order Code XCQ Front Tire Size 265/65R18SL
Rear Tire Size 265/65R18SL Spare Tire Size P265/70R17
Front Tire Capacity N/A Rear Tire Capacity N/A
Spare Tire Capacity N/A Revolutions/Mile @ 45 mph - Front N/A Revolutions/Mile @ 45 mph - Rear N/A Revolutions/Mile @ 45 mph - Spare N/A Wheels
Front Wheel Size 18 x 8.5 in Rear Wheel Size 18 x 8.5 in Spare Wheel Size 17 x 8 in Front Wheel Material Aluminum Rear Wheel Material Aluminum Spare Wheel Material Steel Steering
Steering Type Pwr Steering Ratio (:1), Overall N/A
Steering Ratio (:1), On Center N/A Steering Ratio (:1), At Lock N/A Turning Diameter - Curb to Curb 38.1 ft Turning Diameter - Wall to Wall N/A Brakes
Brake Type Pwr Brake ABS System 4-Wheel
Brake ABS System (Second Line) N/A Disc - Front (Yes or ) Yes Disc - Rear (Yes or ) Yes Front Brake Rotor Diam x Thickness 13.5 x 1.2 in Rear Brake Rotor Diam x Thickness 13.6 x 1.0 in Drum - Rear (Yes or ) N/A #17..
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Chassis
Brakes
Rear Drum Diam x Width N/A
Fuel Tank
Fuel Tank Capacity, Approx 24 gal Aux Fuel Tank Capacity, Approx N/A Fuel Tank Location N/A Aux Fuel Tank Location N/A
Dimensions
Interior Dimensions
Passenger Capacity 6 Front Head Room 42.3 in
Front Leg Room 44.5 in Front Shoulder Room 66.0 in
Front Hip Room 61.5 in Second Head Room 38.9 in
Second Leg Room 42.0 in Second Shoulder Room 64.8 in
Second Hip Room 61.3 in Third Head Room N/A
Third Leg Room N/A Third Shoulder Room N/A
Third Hip Room N/A
Exterior Dimensions
Wheelbase 120.9 in Length, Overall w/rear bumper N/A
Length, Overall 210.7 in Width, Max w/o mirrors 81 in
Height, Overall 75.9 in Overhang, Front N/A
Overhang, Rear w/o bumper N/A Front Bumper to Back of Cab N/A Cab to Axle N/A Cab to End of Frame N/A
Ground to Top of Load Floor N/A Ground to Top of Frame N/A Frame Width, Rear N/A Ground Clearance, Front 8 in
Ground Clearance, Rear 8 in Body Length 0.00 ft
Rear Door Opening Height N/A Rear Door Opening Width N/A Side Door Opening Height N/A Side Door Opening Width N/A Step Up Height - Front N/A Step Up Height - Side N/A
Cab to Body N/A
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Dimensions
Cargo Area Dimensions
Cargo Area Length @ Floor to Console N/A Cargo Area Length @ Floor to Seat 1 N/A Cargo Area Length @ Floor to Seat 2 N/A Cargo Area Length @ Floor to Seat 3 N/A Cargo Box Width @ Top, Rear N/A Cargo Area Width @ Beltline N/A Cargo Box Width @ Floor N/A Cargo Box Width @ Wheelhousings 49.4 in Cargo Box (Area) Height N/A Tailgate Width N/A
Cargo Volume N/A Cargo Volume to Seat 1 125.9 ft³
Cargo Volume to Seat 2 70.3 ft³ Cargo Volume to Seat 3 N/A Cargo Volume to Seat 4 N/A Ext'd Cab Cargo Volume N/A
Exterior
Doors
Side Door Type N/A
#17..
- 1213 -
Winner Chevrolet DATE June 7, 2024
To: Kim Presson Quotation # C5801G
City of Modesto
916-509-8595 1609 8th Street
916-813-4592 Modesto, CA 95354
Prepared by: Casey De Koning
(209) 577-5375
Comments or special instructions: Vehicle build and options are in additional pages.

AMOUNT
$ 55,240.00
$ 3,219.00
$ 5,725.00
$ (400.00)
$ 63,784.00
DOC Fee $ 85.00
Taxable Subtotal: $ 63,869.00

8.875% $ 5,668.37
Tire Fee: $8.75
$ 250.00
Per Vehicle: 69,796.12 $
QTY: 4 Grand Total: 279,184.50 $
7220 Fawn Way,
Sacramento, CA 95823
CHP Contract # 1-22-23-14B
****Shipping charge added for deliveries beyond Sacramento. No charge for will call.**** CA Tire Fee: $1.75 / Per Tire
Tax Rate(Subject to change):

Description
Upgrade to 2025 Model Year / PPV
(Order Acknowledgment Signature) (Date)
If you have any questions concerning this quotation, contact Jerry Powers at 916-426-5752 or email at [email protected]
Line 3 Chevrolet Tahoe 4x4
Options (Refer to Window Sticker):
****Disclaimer****
Delivery Charge:

These prices for the vehicle are just place holders. There will be increases for the vehicle **** specs with the PO or the vehicle will not be ordered. **** Subtotal
for 2025 and the price shown is an estimated amount. The Department understands that a PO may have to be modified at a later date.
**** Please review, sign, and return a copy of the quote and **** Spotlight Credit
___________________________________________________
THANK YOU FOR YOUR BUSINESS!
#17..
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Elk Grove Auto Group/Winner Chevrolet, Inc.

Casey De Koning | 916-813-4592 | [email protected] Vehicle: [Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial #17..
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Nov 15, 2023 Page 2
Table of Contents
• Dealership Information
• Window Sticker
• Standard Equipment
• Weight Rating
• Technical Specifications
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Elk Grove Auto Group/Winner Chevrolet, Inc.

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Nov 15, 2023 Page 3
Elk Grove Auto Group/Winner Chevrolet, Inc.

Prepared By:

Casey De Koning
Elk Grove Auto Group/Winner Chevrolet, Inc.
916-813-4592
[email protected]
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Elk Grove Auto Group/Winner Chevrolet, Inc.

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Nov 15, 2023 Page 4
Window Sticker

SUMMARY
[Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial Interior:Jet Black, Cloth seat trim
Exterior 1:Black
Exterior 2:No color has been selected.

Engine, 5.3L EcoTec3 V8
Transmission, 10-speed automatic

OPTIONS

CODE MODEL MSRP
CK10706 [Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial

OPTIONS
1FL Commercial Preferred Equipment Group $0.00
5J0 Calibration, Front (only) Park Assist Disable. $0.00 5J3 Calibration, Surveillance Mode interior lighting Inc. 5J9 Calibration, taillamp flasher, Red/White Inc.
5LO Calibration, taillamp flasher, Red/Red Inc.
5Y1 Front center seat (20% seat) delete $0.00
6C7 Lighting, red and white front auxiliary dome $170.00 6J3 Wiring, grille lamps and siren speakers $92.00
6J4 Wiring, horn and siren circuit $55.00
6J7 Flasher system, headlamp and taillamp, DRL compatible with control wire
Inc.
6JG Red Left/Blue Right Whelen LED Lamp Package $1,950.00 6N5 Switches, rear window inoperative $57.00
6N6 Door locks and handles, inside rear doors inoperative $62.00 9C1 Identifier for Police Package Vehicle $0.00
9G8 Headlamps, Daytime Running Lamps and automatic headlamp control delete
$50.00
AKP Glass, solar absorbing, non tinted
AMF Remote Keyless Entry Package
ATD Seat delete, third row passenger Inc.
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Nov 15, 2023 Page 5
ATZ Seat delete, second row ($412.00)
AX2 Key, unique Inc.

AZ3 Seats, front 40/20/40 split-bench $0.00
BCV Lock control, driver side auto door lock disable Inc.

C6G GVWR, 7600 lbs. (3447 kg) Inc.

CWA Rear Camera Mirror Washer Inc.

DRZ Rear Camera Mirror, inside rearview auto-dimming $475.00 GBA Black $0.00
GU5 Rear axle, 3.23 ratio $0.00
H1T Jet Black, Cloth seat trim $0.00
IOR Audio system, Chevrolet Infotainment 3 system, 8" diagonal HD color touchscreen
$0.00
J55 Brake system, heavy duty Inc.

K3W Battery, 850 cold-cranking amps with 95 amp hour rating Inc.

K6K Battery, auxiliary, 760 cold-cranking amps with 70 amp hour rating Inc.

KX4 Alternator, 250 amps Inc.

L84 Engine, 5.3L EcoTec3 V8 $0.00
MHU Transmission, 10-speed automatic Inc.

PXT Wheels, 20" x 9" (50.8 cm x 22.9 cm) steel Inc.

RAV Tire, spare 275/55R20 all-season, blackwall, Firestone Firehawk Pursuit
Inc.

RC1 Skid plate, front Inc.

RNQ Wheel, full-size spare, matching 20" (50.8 cm) steel wheel without center cap
Inc.

T53 Lamps, alternate flashing Red & Blue rear compartment lid warning $565.00 T66 Wiring provision, for outside mirrors and cargo side mirrors Inc.

UN9 Radio Suppression Package, with ground straps $95.00 UT7 Ground wires, blunt cut cargo area and blunt cut console area Inc.

V03 Cooling system, extra capacity Inc.

V53 Luggage rack side rails, delete Inc.

VK3 License plate front mounting package $0.00
VPV Ship Thru, Produced in Arlington Assembly and shipped to Kerr Industries and onto Arlington Assembly
$0.00
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Elk Grove Auto Group/Winner Chevrolet, Inc.

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VQ2 Fleet processing option $0.00
VXT Incomplete vehicle Inc.

VZ2 Speedometer calibration Inc.

WUA Fascia, front high-approach angle Inc.

WX7 Wiring, auxiliary speaker. $60.00
XCS Tires, 275/55R20SL all-season, blackwall, Firestone Firehawk Pursuit
Inc.

YF5 Emissions, California state requirements $0.00
Z56 Suspension Package, heavy-duty, police-rated. Inc.
___ Capless Fuel Fill Inc.
___ Exterior ornamentation delete Inc.
___ Instrumentation, analog Inc.
___ Theft-deterrent system, vehicle, PASS-Key III Inc.
___ Power supply, 50-amp, power supply, auxiliary battery Inc. ___ Power supply, 100-amp, auxiliary battery, rear electrical center Inc. ___ Power supply, 120-amp, (4) 30-amp circuit, Primary battery Inc. ___ Seat belts, 3-point, all seating positions Inc.
___ Protected idle Inc.

FUEL ECONOMY
Est City:14 (2023) MPG
Est Highway:20 (2023) MPG
Est Highway Cruising Range:480.00 mi
#17..
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Elk Grove Auto Group/Winner Chevrolet, Inc.

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Terms apply. Device data connection required.)

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Nov 15, 2023 Page 12
Weight Ratings

WEIGHT RATINGS
Front Gross Axle Weight Rating: 3500 lbs
Rear Gross Axle Weight Rating: 4300 lbs
Gross Vehicle Weight Rating: 7600.00 lbs
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Elk Grove Auto Group/Winner Chevrolet, Inc.

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Vehicle
Emissions
Tons/yr of CO2 Emissions @ 15K mi/year 11 (2023) EPA Greenhouse Gas Score N/A Vehicle
Rear Door Type Liftgate
Chassis
Weight Information
Standard Weight - Front 0.00 lbs Standard Weight - Rear 0.00 lbs Base Curb Weight N/A Gross Axle Wt Rating - Front 3500 lbs Gross Axle Wt Rating - Rear 4300 lbs Curb Weight - Front 2852 lbs Curb Weight - Rear 2701 lbs Option Weight - Front 0.00 lbs Option Weight - Rear 0.00 lbs Reserve Axle Capacity - Front 648.00 lbs Reserve Axle Capacity - Rear 1599.00 lbs As Spec'd Curb Weight 5553.00 lbs As Spec'd Payload 2047.00 lbs Maximum Payload Capacity 2047.00 lbs Gross Combined Wt Rating 14000 lbs Gross Axle Weight Rating 7800.00 lbs Curb Weight 5553.00 lbs Reserve Axle Capacity 2247.00 lbs Total Option Weight 0.00 lbs Payload Weight Front 0 lbs Payload Weight Rear 0 lbs Gross Vehicle Weight Rating 7600.00 lbs Trailering
Dead Weight Hitch - Max Trailer Wt. 5000 lbs Dead Weight Hitch - Max Tongue Wt. 500 lbs Wt Distributing Hitch - Max Trailer Wt. 6000 lbs Wt Distributing Hitch - Max Tongue Wt. 600 lbs Fifth Wheel Hitch - Max Trailer Wt. N/A Fifth Wheel Hitch - Max Tongue Wt. N/A Maximum Trailering Capacity 8200 lbs
Frame
Frame Type N/A Sect Modulus Rails Only N/A
Frame RBM N/A Frame Strength N/A
Frame Thickness N/A
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Elk Grove Auto Group/Winner Chevrolet, Inc.

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Chassis
Suspension
Suspension Type - Front Independent Suspension Type - Rear Multi-Link Spring Capacity - Front N/A Spring Capacity - Rear N/A
Axle Type - Front N/A Axle Type - Rear N/A
Axle Capacity - Front N/A Axle Capacity - Rear N/A
Axle Ratio (:1) - Front 3.23 Axle Ratio (:1) - Rear 3.23 Shock Absorber Diameter - Front N/A Shock Absorber Diameter - Rear N/A Stabilizer Bar Diameter - Front N/A Stabilizer Bar Diameter - Rear N/A Tires
Front Tire Order Code XCS Rear Tire Order Code XCS
Spare Tire Order Code RAV Front Tire Size 275/55R20SL
Rear Tire Size 275/55R20SL Spare Tire Size P275/55R20
Front Tire Capacity N/A Rear Tire Capacity N/A
Spare Tire Capacity N/A Revolutions/Mile @ 45 mph - Front N/A Revolutions/Mile @ 45 mph - Rear N/A Revolutions/Mile @ 45 mph - Spare N/A Wheels
Front Wheel Size 20 x 9 in Rear Wheel Size 20 x 9 in
Spare Wheel Size 20 x -TBD- in Front Wheel Material Steel Rear Wheel Material Steel Spare Wheel Material Steel
Steering
Steering Type Pwr Steering Ratio (:1), Overall N/A
Steering Ratio (:1), On Center N/A Steering Ratio (:1), At Lock N/A Turning Diameter - Curb to Curb 39.0 ft Turning Diameter - Wall to Wall N/A Brakes
Brake Type Pwr Brake ABS System 4-Wheel
Brake ABS System (Second Line) N/A Disc - Front (Yes or ) Yes Disc - Rear (Yes or ) Yes Front Brake Rotor Diam x Thickness 13.5 x 1.2 in Rear Brake Rotor Diam x Thickness 13.6 x 1.0 in Drum - Rear (Yes or ) N/A #17..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

July 9, 2024
Date: June 25, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Equipment and Vehicle Parts and Services Agreements CONTACT: Dianne Love, Purchasing Manager, [email protected], 209-571-5164
DESCRIPTION:

Consider approving the Purchasing Agreements for the purchase of Equipment and Vehicle Parts and Services with Terex Services, Stockton, CA and Golden State Emergency Vehicle Services, Sacramento, CA for a total amount not to exceed $1,250,000 over five years. (Funding Source: Fleet Fund, Outside Service Agreements) STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The City Fleet Services Division services and maintains 1,583 vehicles, heavy equipment, buses, fire trucks, trailers and other miscellaneous equipment for all areas of the City. Each vehicle or piece of equipment has countless parts that make each unit function safely and efficiently. At any time, components can fail or break on any piece of equipment, and preparing a list of parts that will be required in any given Fiscal Year is not feasible. Additionally, down time for any piece of equipment means that a crew or individual cannot perform their job duties which can adversely impact operations.

The recommended purchasing agreements will allow the Fleet Services Division to obtain the parts required to maintain and repair vehicles and equipment timely, based on the nearest manufacturer for these parts and at competitive pricing. Fleet Services performs their own price checks constantly on items that are purchased and will strictly abide by all City policies as they pertain to cost limitations, repetitive orders and order splitting.

Prior to 2018, City staff utilized citywide blanket purchase orders to purchase these essential fleet parts. Experience over several fiscal years shows that the blanket purchase orders for these vendors have consistently exceeded the $50,000 threshold which has resulted in the #18..
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Equipment and Vehicle Parts and Services Agreements

Page 2 of 3 ends

Modesto City CouncilJuly 9, 2024

Modesto City Council
July 9, 2024