Modesto City Council
August 13, 2024

BACKGROUND:

Modesto has contracts with two private sector companies to collect residential, commercial, and industrial garbage, organics, and recycling in the City. The City does not set the actual rate the collection companies can charge to pick up the solid waste. Instead, the City sets the maximum rate that the collection companies can charge for each type of service. Per the Service Agreement with the solid waste haulers, rate adjustments shall be made to become effective on July 1 of each year if deemed necessary by the City Council. A computer modeling formula is used to analyze audited financial data submitted by the solid waste collection companies. The maximum rate that the collection companies may charge for each service is then based on the costs increase or decrease.

DISCUSSION:

The following adjustments are being proposed for residential, commercial, and industrial solid waste collection.

1. Consumer Price Index (CPI) Increase
To keep enterprise revenues in line with the increases in expenses each year, staff reviewed the Bureau of Labor Statistics Consumer Price Index - West Region CPI adjustment ending in March 2023 and applied a CPI adjustment of 5.1% to the Green Waste Diversion Program Fee and Base Rate. The residential Green Waste rate was increased by $0.26 per household per month, the commercial Green Waste rate is increased by $0.52 per cubic yard per month, and the AB 939 Green Waste Diversion fee is increased by $0.87 for industrial and compactor accounts. The Residential, commercial, and Industrial base rate is increased by the proposed CPI adjustment.

2. Residential Weekly Organics Collection
In 2021, the City chose to coordinate with an independent consultant with expertise in implementing SB1383 requirements in lieu of developing a compliance plan internally because SB 1383 mandates could lead to significant changes in waste collection, waste processing, administrative responsibilities, and cost of service. Including an independent consultant in this process ensured that the City received an impartial recommendation l
residents and businesses. R3 Consulting Group, Inc (Consultant agreement adopted under Resolution 2021-227 on June 22, 2021),
achment 3).

The report includes three different collection options on weekly and bi-weekly collection.

The survey allowed residents to vote on which option they preferred. The survey ran for three weeks (3/8/2022 to 3/29/2022). The survey was sent directly via email to different associations within the cities, and it was posted on several social media outlets (Facebook, Instagram, Twitter, Next Door, and LinkedIn). City staff recommended option B to Council because 54% of people who took the survey voted for their green container to be collected bi-weekly. Also, this option automatically ensured compliance with the SB 1383 and it would reduce costs by providing bi-weekly collection of recyclables and organics.

On June 14, 2022, by Resolution No.2022-276, Council approved a three-container collection program, with a 96-gallon organics container designated for yard, food, #19..
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Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services

cardboard, and paper waste, a 96-gallon recycling container designated for glass, some metals and plastics, and clean cardboard, and a 96-gallon garbage container designated for other household trash. The garbage container is serviced weekly, and the recycling and organic containers are serviced bi-weekly. The bi-weekly organics container collection was approved as a one-year pilot program.

During the first few months of implementation, City staff received an influx of requests for the organics to go back to weekly collection. Residents have the following concerns regarding the bi-weekly organics collection:

1. Overfilled organics containers

2. Decomposition of organics causing odors and attracting pests

3. Cross contamination issues: using recycling and garbage containers to place excess organics.

4. Illegal Dumping
R3 Consulting Group calculated the costs associated with switching from bi-weekly to weekly organics collection and determined it would be $2.99. This fee was determined in 2021 using financial data from FY 19/20, thus staff brought the fee current by applying the

5.1% CPI; the adjusted recommended rate is $3.14.

3. Hiring a Solid Waste Rates Consultant
For Fiscal Year (FY) 22/23 rate review, both solid waste haulers submitted their audited financials; however, City staff found the computer modeling formula outdated and were unable to validate the numbers and data provided. Staff is recommending hiring a consultant to analyze the current rate setting methodology and test it for validity.

Consultant will also conduct an in-depth audit reviewing cials and develop a methodology to calculate the true cost of solid waste services currently being provided to the community and calculate the true cost of services that need to be provided due to changes in law and regulations. The total cost for hiring the rates consultant shall not exceed $150,000.

In accordance with Modesto Municipal Code Sec. 8-3.204(a), Exceptions to Formal Bidding Requirements, the Agreement is for Professional Services and, therefore, exempt from the bidding requirement. The approval for the Consulting services to HF&H Consultants LLC Conforms to Modesto Municipal Code 8-3.204, subsection (a) as they are providing Professional Services for conducting an audit and performance review for the solid waste haulers.

4. Allocation of Waste Adjustments
During the FY 16/17 Solid Waste Rate Study, it was determined that residential, commercial, and industrial customers should be contributing fees based on the allocation of waste combined with the number of customers from each sector. The FY21/22 rate review showed the allocation of waste being 52.95% residential, 26.16% commercial, and 20.89% industrial. These percentage allocations were then utilized in applying the fees accordingly.
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Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services

5. Geer Road Landfill
Geer Road Landfill is located in Stanislaus County, eight miles southeast of the City of Modesto along the Tuolumne River. It is jointly owned by Stanislaus County and the City of Modesto, and accepted waste from 1970 through July 1990. It was formally closed in 1995. Closure and post-closure costs and maintaining final assurances for the life of a closed landfill, are the responsibility of the owners of the landfill. The City and Stanislaus County equally contribute funds to an enterprise account solely for these purposes.

Under a settlement agreement between the City and the County on November 6, 2018, both parties agreed to contribute to the ongoing expenses associated with the landfill closure.

In order to ensure enough funds are available for future post-closure costs for the life of the landfill and for the payment for the settlement agreement, the following Geer Road Landfill Fees are recommended adjustments to the rates: Residential rate increase by $0.66 per household per month; Commercial rate increase by $0.74 per cubic yard per month; and Industrial rate increase by $23.22 per pull.

6. Fuel Rate Adjustment
On June 27, 2006, by Resolution No. 2006-410, Council approved making routine quarterly adjustments as needed to the component of the maximum rates attributable to the cost of fuel. This was due to severe fluctuations in the cost of diesel fuel, which is a significant cost factor for the collection companies. The methodology approved by the Council uses the average diesel fuel prices from the Department of Energy/Energy Information Agency (DOE/EIA) for a prior quarter to set the fuel component for a subsequent quarter. The rate is adjusted up or down accordingly.

When the fuel rates were analyzed for the July 1, 2023 rate review, it was determined that the haulers would receive a fuel rate adjustment of $0.04 for the residential accounts and $ 0.08 for the commercial accounts. This is a decrease of $0.29 to the Residential fuel adjustment of the previous year and a decrease of $0.39 to the Commercial fuel adjustment of the precious year. To calculate the residential fuel component, a factor of 0.30 gallons of diesel fuel per residence per month was used, and for the commercial fuel component, a factor of $ 0.095 gallons of diesel fuel per cubic yard was used. For this rate review, the average diesel fuel prices from January 1, 2023, to March 31, 2023, were analyzed, and staff recommended a fuel adjustment for both residential and commercial maximum rates based on the prices of diesel fuel during that time frame.

7. Pass Through Fees
Pass through fees are fees paid by customers as part of receiving solid waste service, the revenue from which is not retained by the haulers. In an effort to keep the solid waste rates low, the City elected to waive the franchise fees on City pass through fees.

Accordingly, $0.74 was deducted from the residential base rates, $1.46 was deducted from the commercial base rate, and $5.66 was deducted from the drop box rates. #19..
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FISCAL IMPACT:

The fiscal impact related to the necessary proposed adjustments for residential, commercial, and industrial solid waste collection services are as follows:

Residential Maximum Rate Recommendation
The City has a 3-container collection system: a 96-gallon container for garbage, 96-gallon container for organics, and a 96-gallon container for recycling. Currently, the organics containers are picked up on a bi-weekly basis. City staff received an influx of requests for the City to return to weekly organics collection. The table below shows the monthly residential cost for weekly organics collection.

Current Proposed
Adjustment
Proposed
Rate
Contractual Agreement
* Base Rate $34.73
* Pass through Franchise Fees Reduction $(0.74)
* Proposed Base Rate Adjustment $1.73 $35.72
* Weekly Organics Collection $0.00 $3.14 $3.14
* Fuel Rate Adjustment $0.33 $(0.29) $0.04
Funds Adjustment
* Green Waste $5.01 $0.26 $5.27
* Geer Road $0.15 $0.66 $0.81
* Compost Facility Improvements $1.70 - $1.70
No Additional Changes
* SB 1383 Collection Fee $5.40 - $5.40
* Organic Waste Pre-Processing $1.72 - $1.72
* City Implementation $1.05 - $1.05
* Recycling Fees $0.46 - $0.46
* Carpenter Road $0.70 - $0.70
Total Residential Rate $51.25 $ 4.76 $ 56.01
Staff utilized the data provided by R3 Consulting Group and the most recent CPI to determine that the cost associated with switching from bi-weekly to weekly organics collection will be $3.14. Based on the average diesel fuel prices for January through March, a fuel rate adjustment of $0.04 will be applied to the residential accounts. The green waste fund will be increased by $0.26 adjusted by CPI 5.1%. The Geer Road Landfill fee will be increased by $0.66 to cover future post closure costs and the payment for the settlement agreement. #19..
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Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services

Commercial Maximum Rate Recommendation
The City has a commercial collection system offering one cubic yard to six cubic yard services, with the option of 96-gallon containers for smaller businesses, Rate analyses conducted by staff determined the adjusted cost for one yard of service as shown in the table below.

Current
Proposed
Adjustment
Proposed
Rate
Contractual Agreement
* Base Rate $42.92
* Pass through Franchise Fees Reduction $(1.46)
* Proposed Base Rate Adjustment $0.65 $ 43.57
* Fuel Rate Adjustment $0.47 $(0.39) $0.08
Funds Adjustment
* Green Waste $10.18 $0.52 $10.70
* Geer Road $0.21 $0.74 $0.95
* Compost Facility Improvements $3.08 - $3.08
No Additional Changes
* Litter Abatement $0.59 - $0.59
* Organic Pre-Processing $3.11 - $3.11
* City Implementation $1.90 - $1.90
* Recycling Fees $0.63 - $0.63
* Carpenter Road $0.95 - $0.95
Total Commercial Rate $64.04 $1.52 $65.56
The base rate will be increased by the current CPI of 5.1%. Based on the average diesel fuel prices for January through March 2023, the maximum allowable fuel component for commercial rates is $0.08 per cubic yard. The green waste fund will be increased by $0.52 adjusted by CPI

5.1%. The Geer Road landfill fee will be increased by $0.74 to cover future post closure costs and the payment for the settlement agreement.

Industrial Drop Box/Roll-Off Compactors Maximum Rate Recommendation The maximum rates for industrial drop boxes and roll-off compactors are set for the pick-up charge and daily rental rate only. The actual disposal charge is negotiated directly between the solid waste company and the customer. These services are open to competition between the two authorized collection companies in the City. The current maximum rate per pick-up is $439.24. The base rate will be increased by the current CPI of 5.1%. Based on the rate analysis conducted by staff, the Geer Road landfill fund will be increased by $23.22 to cover future post closure costs and the payment for the settlement agreement. The new rate would be $476.06 per pick-up, to be effective August 1, 2023. The table below shows the proposed adjustments.

The current AB 939 Green Waste Diversion fee is $17.10 and is increased by 5.1% CPI. The new fee of $17.97 will be effective August 1, 2023.
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Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services

Current
Proposed
Adjustment
Proposed
Rate
Contractual Agreement
* Base Rate $383.21 $13.60 $396.81
Funds Adjustment
* Geer Road $6.55 $23.22 $29.77
No Additional Changes
* Recycling Fees $19.71 $ - $19.71
* Carpenter Road $29.77 $ - $29.77
Total Drop Box/Roll-Off Rate $439.24 $36.82 $ 476.06
Solid Waste Rates Consultant
The funding for the solid waste rates consultant will be provided by the solid waste fund. The solid waste fund is funded through the SB 1383 Implementation fees.

Additional Impacts to the General Fund and Streets Fund In order to keep the solid waste rates low, the City elected to waive the franchise fees on City pass through fees. The chart below shows the annual average impact to Surface Transportation funds.

Total Franchise Fees Waived from
Pass Through Fees
Total reduction to
General Fund
Total reduction to
Streets Fund
$ 392,799 $ 247,463 $ 145,336.

COMMITTEE RECOMMENDATION:

This item was presented to Finance Committee on May 22, 2023, and the committee recommended forwarding to Council for approval. The following changes were made after the committee meeting:

1. Recommending Hiring a Solid Waste Rates Consultant

2. Removing franchisee fees from pass through fees
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City Council, June 27, 2023
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Annual Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the solid waste haulers, for an increase of $4.76 per month for residential services with weekly green/organics container collection, an increase of $1.52 per cubic yard for commercial services, and an increase of $36.82 per pull for industrial services, to become effective August 1, 2023, and rescinding Resolution No. 2022-276 for the July 1, 2022 annual rate adjustment.

Resolution approving a quarterly fuel rate adjustment to the maximum rate schedule for City Solid Waste Collection Services provided by the haulers, for an adjustment of $0.04 per month for residential services, and an adjustment of $0.08 per cubic yard for commercial services, to become effective August 1, 2023, and rescinding Resolution No. 2022-277 for the July 1, 2022 annual rate adjustment.

Resolution approving an agreement with HF&F Consultants LLC., to conduct an audit and performance review for the solid waste haulers, to analyze the current rate setting methodology and test it for validity, and develop new rates methodology, for a total amount not to exceed $150,000 and authorizing the City Manager, or his designee, to execute the agreement.

Approved by:

Bill Sandhu, Public Works Director

Joseph P. Lopez, City Manager
Attachments:

1. Resolutions (3)

2. Attachment A- Maximum Rate Schedule for City Solid Waste Collection Services

3. R3 Consulting Group Final Draft Report

4. HF&H Draft Agreement
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06/27/2023/PW/RNguyen/Item 18 1 2023-314

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-314

RESOLUTION APPROVING AN AGREEMENT WITH HF&H CONSULTANTS LLC., TO CONDUCT AN AUDIT AND PERFORMANCE REVIEW FOR THE

SOLID WASTE HAULERS, TO ANALYZE THE CURRENT RATE SETTING

METHODOLOGYAND TEST IT FOR VALIDITY, AND DEVELOP NEW

RATES METHODOLOGY, FOR A TOTAL AMOUNT NOT TO EXCEED
$150,000 AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO

EXECUTE THE AGREEMENT
WHEREAS, the City of Modesto has two contracted exclusive franchise hauler agreements with Bertolotti Disposal and Gilton Solid Waste for residential, commercial, and industrial solid waste services, and
WHEREAS, the City sets the maximum rate that the haulers may charge for the various types of services provided under the contracts based on cost data provided by the lowest cost hauler; and
WHEREAS, for Fiscal Year (FY) 22/23 rate review, both solid waste haulers submitted their audited financials; however, City staff found the computer modeling formula outdated and were unable to validate the numbers and data provided; and WHEREAS, Staff is recommending to hire a consultant to analyze the current rate setting methodology and test it for validity; and
WHEREAS, Consultant will also conduct an in-depth audit reviewing both services currently being provided to the community and calculate the true cost of services that need to be provided due to changes in law and regulations; and WHEREAS, in accordance with Modesto Municipal Code Sec. 8-3.204(a), Exceptions to Formal Bidding Requirements, the Agreement is for Professional Services and, therefore, exempt from the bidding requirement. The approval for the Consulting #19..
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services to HF&H Consultants LLC Conforms to Modesto Municipal Code 8-3.204, subsection (a) as they are providing Professional Services for conducting an audit and performance review for the solid waste haulers.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves an agreement with HF&H Consulting, LLC., to conduct an audit and performance review for the solid waste haulers, to analyze the current rate setting methodology and test it for validity, and develop new rates methodology, for a total amount not to exceed $150,000.

BE IT FURTHER RESOLVED, that the City Manager, or his designee, is hereby authorized to execute the agreement, in a form approved by the City Attorney. #19..
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HF&H CONSULTANTS, LLC

STANDARD HOURLY RATES AND BILLING

ARRANGEMENTS
HF&H Consultants, LLC Page 1 of 2
(Effective January 1, 2023)
1 Professional Fees
Hourly rates for professional and administrative personnel are as follows:

Position Rate
Executive $300 - $330
Senior Project Manager $285 - $305
Project Manager $245 - $270
Senior Associate $210 - $230
Associate Analyst $175 - $185
Assistant Analyst $150 - $160
Administrative Staff $115 - $145
Direct Expenses
Standard charges for common direct expenses are as follows:

Automobile Travel Prevailing IRS mileage rate
Airfare and Public Transit Actual Cost
Billing Policies
Our policy is to bill for our services based on the standard hourly rates of the staff member assigned, multiplied by the time required to perform the client-related tasks, plus the direct expenses as described above. In implementing this policy we adhere to the following practices:
• It is our standard practice to e-mail invoices to our clients, although hard copies of invoices can be sent to clients on request.
• We round to the nearest one-quarter hour (e.g., if two hours and 55 minutes are spent on a task, it is recorded as three hours, if two hours and 5 minutes are spent on a task, it is recorded as two hours).

A minimum charge of one-quarter hour is charged for any client work performed in a day. • We do not markup out-of-pocket expenses, however, we may charge administrative or professional time related to the provision of the goods and services associated with these charges. • If subcontractors are used, HF&H reserves the right to charge a 5% markup should the subcontractor’s services require cumbersome administrative oversight (e.g., multiple subcontractors; engagement turns out to solely require services of subcontractor, but HF&H as the prime must prepare billings). • Mileage fees are based on the round-trip distance from the point of origin. 1 Litigation Support and Expert Witness Services are not covered by this schedule of fees and expenses.

Exhibit B #19..
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HF&H CONSULTANTS, LLC

STANDARD HOURLY RATES AND BILLING

ARRANGEMENTS
HF&H Consultants, LLC Page 2 of 2
• If a client's change to a previously scheduled meeting results in penalties being assessed by a third party (e.g., airline cancellation fee), then the client will bear the cost of these penalties.

While no minimum fee for a consulting engagement has been established, it is unlikely (given the nature of our services) that we can gain an understanding of a client's particular requirement, identify alternatives, and recommend a solution in less than twenty-four consulting hours.

Insurance
We maintain the following policies of insurance with carriers doing business in California:
• Comprehensive General Liability Insurance ($2,000,000 Occurrence/$4,000,000 Aggregate) • Workers’ Compensation ($1,000,000)
• Professional Liability Insurance ($2,000,000 Occurrence/$2,000,000 Aggregate) • Hired and Non-Owned Auto Liability2 ($2,000,000)
• Umbrella Liability ($3,000,000 Occurrence/$3,000,000 Aggregate) All costs incurred in complying with additional coverages or limits (excluding additional insured and waiver of subrogation endorsements) become the responsibility of the client and are not included in the fees for services or direct charges but are billed in addition to the contract at cost, plus any professional or administrative fees.

Invoices and Payment for Services
Our time reporting and billing system has certain standard formats that are designed to provide our clients with a detailed invoice of the time and charges associated with their engagement. (We typically discuss these with our clients at our kick-off meeting.) We are also pleased to provide our clients with a custom invoice format but we will have to bill the client for time spent conforming our invoices to their unique requirements.

Billings for professional services and charges are submitted every month, in order that our clients can more closely monitor our services.
2 HF&H Consultants does not own any company automobiles. #19..
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BidWaiver-HFHConsultants-PWSolid
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Documente-signedbyDeAnnaChristensen([email protected]) SignatureDate:2024-07-18-11:31:20PMGMT-TimeSource:server Agreementcompleted.
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CITY OF MODESTO

CITY COUNCIL STAFF REPORT
DATE OF MEETING:

August 13, 2024
Date: June 26, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Community and Economic Development Director SUBJECT: Ordinance amending Planned Development Zone P-D #470 to amend allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road (APN 081-052-045)
CONTACT: Michael Hren, AICP, Principal Planner, [email protected], 209-577-5273 DESCRIPTION:

Hearing to consider an Ordinance amending Planned Development Zone P-D(470) to change the allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road, (APN 081-052-045). (Funding Source: Developer Funded) STRATEGIC PLAN ELEMENT:

This action is consistent with Strategic Plan Goal E: Drive Economic Vitality by allowing the property additional options to pursue viable businesses.

NOTICE REQUIREMENT:

All notice requirements for the proposed Ordinance have been met including the requirements of Government Code Sections 658541, 650902, and 650943. A description of the proposed Ordinance and the date, time, and place of the City Council hearing regarding the proposed Ordinance was published in the Modesto Bee on Tuesday, July 23, 2024, and notice was sent via mail to properties within 300 feet of the subject parcel.

BACKGROUND:

Planned Development P-D(470) was adopted by the City Council on April 3, 1990 by Ordinance No. 2705 C.S. It rezoned Low Density Residential (R-1) land to a Planned Development with Neighborhood Commercial (C-1) and off-street parking as allowable uses.

DISCUSSION:
1https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65854&lawCode=GOV 2 https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65090.&lawCode=GOV 3 https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65094.&lawCode=GOV #20..
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City Council, August 13, 2024
Ordinance amending Planned Development Zone P-D #470 to amend allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road

This proposed amendment would modify the allowable uses for Planned Development P-D(470), which consists of a single parcel, APN 081-052-045. The existing Planned Development allows for Neighborhood Commercial (C-1) uses, and the proposal is to amend the allowable uses to allow for Highway Commercial (C-3) uses. The C-3 zone allows all uses that are allowed under the C-1 and C-2 zones and adds additional uses that allow highway-oriented businesses and transportation-related services establishments which serve city-wide and regional needs. Some examples of uses that are permitted in C-3 that are not permitted in C-1 are General Retail, Janitor Service, and Trade Services.

Analysis:

To the north of P-D(470), parcels along Carpenter Avenue are zoned as Highway Commercial (C-3), consistent with the proposed allowable uses for P-D(470). To the west of P-D(470) is a residential area. The primary access path to these homes is via Courtney Way, which is approximately sixty (60) feet from the edge of the subject parcel along Torrid Avenue.

In order to ensure that the residential neighborhood is not affected by uses that could negatively impact it, Planning staff believes that certain uses that would otherwise be allowable in Highway Commercial (C-3) zones should be specifically excluded from P-D(470) as part of this amendment. The full list of these recommended exclusions is as follows:
 Outdoor Display, Major
 Recycling Facility, Large
 Banquet Hall
 Car Wash
 Ambulance Service
 Sign Painting Shop
 Heavy Vehicle Services
o Farm Equipment Sales, Rental, Repair, & Service
o Truck & Trailer Sales, Rental, Repair, & Service
 Light Vehicle Services
o Minor Maintenance (minor tune up, smog check)
o Repair and Service, Minor
o Stereo Installation
Major Outdoor Displays and Recycling Facilities are both uses that require Conditional Use Permits in the C-3 zone in order to ensure their appropriateness for the specific location proposed.

Car Washes, Heavy Vehicle Services, and the listed Light Vehicle Services each generally require a Conditional Use Permit per 10-3.222 (Vehicle Related Services) of the Modesto Municipal Code if the establishment that provides such services is within one hundred (100) feet of a residential zoned or developed property. The westernmost building on the subject site is well within this distance, and for each of these uses, staff believes that they could create a potential disruption, nuisance, or other negative impact on the existing residential neighborhood, and should therefore be excluded from P-D(470).

Banquet Halls, Ambulance Services, and Sign Painting Shops are all allowed by-right in the C-3 zone. Staff believes that the location of P-D(470) is inappropriate for these uses because of the potential traffic impacts, noise impacts, and odor impacts on the nearby neighborhood. While staff believes that other C-3 uses are appropriate and compatible with the site and its surroundings, #20..
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City Council, August 13, 2024
Ordinance amending Planned Development Zone P-D #470 to amend allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road

the uses listed above could negatively impact the existing neighborhood and should not be located in P-D(470). The main access point for the neighborhood approximately sixty (60) feet west of the westernmost curb cut for P-D(470) along Torrid Avenue is a key factor in this recommendation, as is the proximity of the parcel and its existing buildings to the residential neighborhood.

This amendment was referred to City Departments who provided comments regarding the proposed changes. Most comments provided were related to consideration of potential future development on the site; there were no concerns provided as to the proposal for a change in allowable uses. With the above considerations for restrictions of uses, Planning staff finds the Planned Development Amendment consistent with the surrounding neighborhood and therefore recommends approval.

General Plan Consistency:

The amendment to Planned Development Zone, P-D(470) will not be detrimental to the public health, safety, or welfare for the following reasons:
 The proposed amendment is consistent with the Modesto Urban Area General Plan. The site is designated Commercial, which is consistent with the proposed amendment’s change to Highway Commercial (C 3) uses.
 The type of project is described in Chapter II of the Modesto Urban Area General Plan Master EIR (MEIR).
 All applicable policies, regulations, and mitigation measures identified in the Master EIR have been applied to the project or otherwise made conditions of approval of the project.  An Initial Study was prepared by the City of Modesto that analyzed whether the proposed subsequent project may cause any significant effect on the environment that was not examined in the MEIR, and it has been determined that the project is within the scope of the MEIR.

The amendment to Planned Development Zone, P-D(470) will result in an orderly planned use of land, as the proposed allowable uses are comparable to those allowed in the parcels directly to the north of Planned Development P-D(470), and that, in consideration of the residential uses to the west of the site of the proposed amendment, certain uses that could create potential nuisances have been excepted from the allowable uses of P-D(470), as described in the Analysis section above.

The amendment to Planned Development Zone, P-D(470) is in accordance with the community’s objectives as set forth in the General Plan, as the General Plan designation for the site of the proposed amendment is Commercial (C), which the proposed amendment is in accordance with, and no Specific Plans are applicable to this area.

FISCAL IMPACT:

Entitlement fees have been paid by the project applicant in accordance with the fee schedule adopted by City Council.

CEQA/NEPA REQUIREMENTS:

The City has caused to be prepared an Initial Study, Environmental Assessment No. EA/C&ED 2024 04, which concludes that the proposed amendment is within the scope of the General Plan #20..
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City Council, August 13, 2024
Ordinance amending Planned Development Zone P-D #470 to amend allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road

Master Environmental Impact Report (SCH No. 2014042081) and that pursuant to Section 21157.1(b) of the CEQA Guidelines, no new environmental review is required.

COMMITTEE RECOMMENDATION:

On April 15, 2024, this item was heard by the Planning Commission at a Public Hearing. The Planning Commission recommended that the City Council approve the requested Planned Development Amendment as presented.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Motion introducing and waiving the first reading of an Ordinance amending Planned Development Zone P-D(470) to change the allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road. (APN 081-052-045).

Approved by: ______________________________
Jessica Hill, Director of Community &
Economic Development

Joseph P. Lopez, City Manager
Attachments:

1. City Council Ordinance

2. Redline Excerpt of Council Ordinance 2705-C.S.

3. Planning Commission Minutes

4. Project Map

5. Environmental Review EA/C&ED 2024-04
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- 1 - ORDINANCE NO. -C.S.

EFFECTIVE DATE: September 26, 2024
ORDINANCE NO.

AN ORDINANCE AMENDING PLANNED DEVELOPMENT
ZONE P-D(470) TO CHANGE THE ALLOWABLE USES TO
ALLOW CERTAIN HIGHWAY COMMERCIAL (C-3) USES
FOR PROPERTY LOCATED AT 1101 N CARPENTER
ROAD (APN 081-052-045)
WHEREAS, on January 12, 2024, the City of Modesto received an application from Juan Bautista Mendoza to amend Planned Development P-D(470) to allow Highway Commercial (C-3) uses; and
WHEREAS, by Ordinance No. 2705 C.S., approved on April 3, 1990, the City Council established P-D(470); and
WHEREAS, P-D(470) currently allows the Neighborhood Commercial (C-1) Zone uses, and the proposed ordinance would substitute that for Highway Commercial (C-3) uses; and
WHEREAS, the proposed change is consistent with the zoning of the parcels to the north of 1101 N Carpenter Road, which have existing Highway Commercial (C-3) zoning designations; and
WHEREAS, after a public hearing held on April 15, 2024, the Planning Commission adopted Resolution No. 2024-08, to recommend to the City Council that the proposed Amendment to Planned Development Zone P-D(470) to amend allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road (APN 081-052-045).; and
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- 2 - ORDINANCE NO. -C.S.

EFFECTIVE DATE: September 26, 2024
WHEREAS, a duly noticed public hearing was held by City Council on August 13, 2024, at which hearing evidence both oral and documentary was received and considered.

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

SECTION 1. FINDINGS. After a public hearing held on August 13, 2024, in the Tenth Street Place Chambers located at 1010 10th Street, Modesto, California, this Council finds and determines as follows:

1. The requested change will not be detrimental to the public health, safety, or welfare for the following reasons:
a. The proposed amendment is consistent with the Modesto Urban Area General Plan. The site is designated Commercial, which the proposed amendment’s change to Highway Commercial (C-3) uses is consistent with.
b. The type of project is described in Chapter II of the Modesto Urban Area General Plan Master EIR (MEIR).
c. All applicable policies, regulations, and mitigation measures identified in the Master EIR have been applied to the project or otherwise made conditions of approval of the project.
d. An Initial Study was prepared by the City of Modesto that analyzed whether the proposed subsequent project may cause any significant effect on the environment that was not examined in the MEIR and it has been determined that the project is within the scope of the MEIR. e. Based on the Initial Study, the City of Modesto finds and determines:
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- 3 - ORDINANCE NO. -C.S.

EFFECTIVE DATE: September 26, 2024
i. The proposed subsequent project will have no additional significant effect as defined in CEQA Section 21158 that was not identified in the MEIR.
ii. No new or additional mitigation measures or alternatives are required.
iii. The subsequent project is within the scope of the project covered by the Master EIR.
iv. All applicable policies, regulations, and/or mitigation measures identified in the Master EIR have been applied to the
subsequent project or otherwise made conditions of approval of the subsequent project.
v. The application for the project was received on January 12, 2024, less than five years after the certification of the Master EIR, which occurred on March 6, 2019.
f. The Initial Study, Environmental Assessment No. EA/C&ED 2024 04, provides substantial evidence to support findings 1(e)(i) through 1(e)(v), noted above.

2. The requested change will result in an orderly planned use of land because the proposed allowable uses are comparable to those allowed in the parcels directly to the north of Planned Development P-D(470), and that, in consideration of the Residential uses to the west of the proposed site of the amendment, certain uses that could create potential nuisances have been excepted from the allowable uses of the Highway Commercial (C-3) Zone, as specified below; and
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- 4 - ORDINANCE NO. -C.S.

EFFECTIVE DATE: September 26, 2024

3. The requested change is in accordance with the community’s objectives as set forth in the General Plan and any applicable specific plans because the General Plan designation for the proposed site of the amendment is Commercial (C), which the proposed amendment is in accordance with, and no Specific Plans are applicable to this area.

SECTION 2. AMENDMENT OF ORDINANCE 2705-C.S. Section 2, uses, of Ordinance 2705-C.S. is hereby amended to read as follows. Deletions are made in strikethrough text while additions are made in underline text. With the exception of the specified changes, all existing language in Ordinance No. 2705-C.S. remains unmodified. “SECTION 2. USES. The following uses shall be permitted in Planned Development PD(470) Zone if the plan for construction conforms in principle to the approved plan, or if changes are approved by the Secretary of the Planning Commission as required by Section 10-

2.1709(c) of the Modesto Municipal Code, or by the Planning Commission if any changes not conforming in principle to the approved plan are proposed, as required by Section 10-2.1709(a) or (b) of the Modesto Municipal Code:

1. All permitted and conditional Neighborhood Commercial, C-1 Zone, uses.

2. Off-street parking as shown on the approved plan.

1. Uses as allowed in the Highway Commercial (C-3) Zone, with the exception of the following uses that shall not be permitted:
 Outdoor Display, Major
 Recycling Facility, Large
 Banquet Hall
 Car Wash
 Ambulance Service
 Sign Painting Shop
 Heavy Vehicle Services
o Farm Equipment Sales, Rental, Repair, & Service
o Truck & Trailer Sales, Rental, Repair, & Service
 Light Vehicles
o Minor Maintenance (minor tune up, smog check)
o Repair and Service, Minor
o Stereo Installation”
SECTION 3. CEQA. The City Council certifies it has received and reviewed the Initial Study, Environmental Assessment No. EA/C&ED 2024-04, which concludes that the proposed amendment is within the scope of the General Plan Master Environmental Impact #20..
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- 5 - ORDINANCE NO. -C.S.

EFFECTIVE DATE: September 26, 2024
Report (SCH No. 2014042081), finds the amendment in conformance with the Urban Area General Plan Master EIR, find the amendment will have no additional significant effect as defined in CEQA Regulations Section 21158, and that therefore no further environmental review is necessary.

SECTION 4. EFFECTIVE DATE. This ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

SECTION 5. PUBLICATION. At least two (2) days prior to its final adoption, copies of this ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in The Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this ordinance, the date of its introduction, and the places where this ordinance is posted.
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- 6 - ORDINANCE NO. -C.S.

EFFECTIVE DATE: September 26, 2024
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August 2024, by Councilmember XXX, who moved its introduction and passage to print, which motion being duly seconded by Councilmember YYY, was upon roll call carried and ordered printed and published by the following vote:

AYES: Councilmembers:

NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED: _____________________________
SUE ZWAHLEN, Mayor
ATTEST:

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

By: _________________________________
JOSE M. SANCHEZ, City Attorney
APPROVED AS TO DESCRIPTION:

By: __________________________________________
Jessica Hill, Community & Economic Development
Department, Planning Division
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- 7 - ORDINANCE NO. -C.S.

EFFECTIVE DATE: September 26, 2024

FINAL ADOPTION CLAUSE
The foregoing ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 27th day of August 2024, Councilmember XXX moved its final adoption, which motion being duly seconded by Councilmember YYY, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Councilmembers: Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED: ________________________

SUE ZWAHLEN, MAYOR
ATTEST: ___________________________________
DIANE NAYARES-PEREZ, City Clerk
Effective Date: September 26, 2024
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EXCERPT OF ORDINANCE NO. 2705-C.S.

AN ORDINANCE AMENDING SECTION 25-3-8 OF THE ZONING MAP TO 'REZONE FROM LOW DENSITY RESIDENTIAL ZONE, R-1, TO PLANNED DEVELOPMENT ZONE, P-D(470), PROPERTY LOCATED ON THE

NORTHWEST CORNER OF CARPENTER ROAD AND TORRID AVENUE (JOHN HINCHEY).

SECTION 2. USES. The following uses shall be permitted in said P-D(470) Zone if the plan for construction conforms in principle to the approved plan, or if changes are approved by the Secretary of the Planning Commission as required by Section 10-2.1709(c) of the Modesto Municipal Code, or by the Planning Commission if any changes not conforming in principle to the approved plan are proposed, as required by Section 10-2.1709(a) or (b) of the Modesto Municipal Code:

Uses as allowed in the Highway Commercial (C-3) Zone, with the exception of the following uses that shall not be permitted:
• Outdoor Display, Major
• Recycling Facility, Large
• Banquet Hall
• Car Wash
• Ambulance Service
• Sign Painting Shop
• Heavy Vehicle Services
o Farm Equipment Sales, Rental, Repair, & Service
o Truck & Trailer Sales, Rental, Repair, & Service
• Light Vehicle Services
o Minor Maintenance (minor tune up, smog check)
o Repair and Service, Minor
o Stereo Installation
031590

1. All permitted and conditional Neighborhood Commercial, C-1 Zone, uses.

2. Off-street parking as shown on the approved plan.
-1- 9773CA2
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City of Modesto Planning Commission
Minutes
April 15, 2024
1 Being the hour of 6:00 pm, the meeting was called to order by Chairperson Shanks.

I. ROLL CALL
Commissioners Black, Grewal, Russell, and Shanks present Commissioners Birring, Silva and Vazquez absent
MOTION
It was moved by Commissioner Black, seconded by Commissioner Grewal, and carried unanimously that Commissioners Birring and Vazquez be excused from this meeting.

II. APPROVAL OF MINUTES
It was moved by Commissioner Russell, seconded by Commissioner Black, and carried unanimously (4-0) that the minutes of the regular meeting of March 18, 2024, be approved.

III. CONFLICT OF INTEREST DECLARATION
None
IV. CONSENT
None
V. PUBLIC HEARINGS
Item A An amendment to Planned Development Zone P-D #470 to amend allowable uses to allow certain Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road (APN 081-052-045).

Contact Info: Michael Hren, 577-5267 [email protected] Motion/Action (Approved)
It was moved by Commissioner Russell, seconded by Commissioner Black, and carried unanimously (4-0) (Birring, Black, Grewal, Russell, Shanks, Silva, ayes; None, noes; Vazquez, absent; None, recused) that the Planning Commission adopt Resolution No. 2024-08 A RESOLUTION RECOMMENDING TO THE CITY COUNCIL AN AMENDMENT TO PLANNED DEVELOPMENT ZONE P D(470) TO

AMEND THE ALLOWABLE USES TO ALLOW CERTAIN HIGHWAY COMMERCIAL (C 3) USES FOR PROPERTY LOCATED AT 1101 N CARPENTER ROAD (APN 081 052 045).

VI. OTHER BUSINESS
None
VII. ORAL COMMUNICATIONS
None
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Planning Commission Minutes 2 April 15, 2024
VIII. MATTERS TOO LATE FOR THE AGENDA
None
XI. ADJOURNMENT
The meeting was adjourned at 6:20 pm.

Original, signed copy on file in CEDD
Jessica Hill, Secretary
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City of Modesto
Finding of Conformance with the
Urban Area General Plan Master EIR
(SCH No. 2014042081)
Initial Study Environmental Checklist
C&ED No. 2024-04
For the proposed:

PDA-24-001 – Planned Development Amendment for Planned
Development Zone P-D #470 to amend allowable uses to allow Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road (APN 081-052-045)
Prepared by:

City of Modesto
Community & Economic Development Department
Planning Division
3/22/2024
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(Intentional Blank Page)
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 1 March 22, 2024
City of Modesto
Master EIR Initial Study Environmental Checklist
I. PURPOSE
CEQA allows for the limited environmental review of subsequent projects under the City’s Master Environmental Impact Report (“Master EIR”). This Initial Study Environmental Checklist (“Initial Study”) is used in determining whether Planned Development Amendment for Planned Development Zone P-D #470 to amend allowable uses to allow Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road (APN 081-052-045) is “within the scope” of the project analyzed in the Modesto Urban Area General Plan Master EIR (SCH# 2014042081) (Public Resources Code section 21157.1). When the Initial Study supports this conclusion, the City will issue a Finding of Conformance.

A subsequent project is “within the scope” of the Master EIR when:

1. it will have no additional significant effects on the environment that were not addressed as significant effects in the Master EIR; and,

2. no new or additional mitigation measures or alternatives are required. “Additional significant effects” means a project-specific effect that was not addressed as a significant effect in the Master EIR. [Public Resources Code Section 21158(d)] The determination must be based on substantial evidence in the record. “Substantial evidence” means facts, reasonable assumptions predicated upon facts, or expert opinion based on facts. It does not include speculation or unsubstantiated opinion. (CEQA Guidelines Section 15384) II. PROJECT DESCRIPTION
A. Title: Planned Development Amendment for Planned Development Zone P-D #470 to amend allowable uses to allow Highway Commercial (C-3) uses for property located at 1101 N Carpenter Road (APN 081-052-045)
B. Address or Location: 1101 N Carpenter Road, APN 081-052-045, NWC of N Carpenter Road and Torrid Avenue
C. Applicant: Juan Ortiz
Applicant’s Representative: Modesto Resendez III
D. City Contact Person: Michael Hren, AICP, Principal Planner Project Manager: Michael Hren, AICP, Principal Planner
Department: Community and Economic Development Department Phone Number: 209-577-5273
E-mail address: [email protected]
E. Current General Plan Designation(s): Commercial
F. Current Zoning Classification(s): Planned Development #470, allowing C-1 uses #20..
- 1064 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 2 March 22, 2024
G. Surrounding Land Uses:

North: Highway Commercial (C-3), parking lot
South (across Torrid Ave.): Planned Development (P-D 437), neighborhood shopping center with C-1 uses.

East (across N Carpenter Rd.): Light Industrial (M-1), industrial communications West: Planned Development (P-D 255), 81 zero lot line patio homes
H. Project Description, including the project type listed in Section II.C (Anticipated Future Projects) of the Master EIR (Attach additional maps/support materials as needed for complete record):

The proposed project is to amend Planned Development #470 to allow Highway Commercial (C-3) uses. The existing allowable uses for P-D #470 are Neighborhood Commercial (C-1) uses.

No specific development has been proposed with the Amendment.

I. Other Public Agencies Whose Approval is Required: None III. FINDINGS / DETERMINATION (SELECT ONE ON THE BASIS OF THE ANALYSIS

IN SECTION IV)

1. X Within the Scope – The project is within the scope of the Master EIR and no new environmental document or Public Resources Code Section 21081 findings are required. All of the following statements are found to be true:

A. The subsequent project will have no additional significant effect on the environment, as defined in subdivision (d) of Section 21158 of the Public Resources Code, that was not identified in the Master EIR;
B. No new or additional mitigation measures or alternatives are required; C. The subsequent project is within the scope of the project covered by the Master EIR; D. All applicable policies, regulations, and/or mitigation measures identified in the Master EIR have been applied to the subsequent project or otherwise made conditions of approval of the subsequent project; and,

2. Mitigated Negative Declaration Required – On the basis of the above determinations, the project is not within the scope of the Master EIR. A mitigated negative declaration will be prepared for the project. The following statements are all found to be true:

A. The subsequent project is within the scope of the project covered by the Master EIR; B. All applicable policies, regulations, and mitigation measures identified in the Master EIR have been applied to the subsequent project or otherwise made conditions of approval of the subsequent project;
C. The project will have one or more potential new significant effects on the environment that were not addressed as significant effects in the Master EIR. New or additional mitigation measures are being required of the project that will reduce the effects to a less than significant level; and,
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 4 March 22, 2024

4. Within the Scope Analysis of this Document:

The Master EIR allows projects to be found within the scope of the MASTER EIR if certain criteria are met. If the following statements are found to be true for all 20 impact categories included in this Initial Study, then the proposed project is addressed by the Master EIR analysis and is within the scope of the Master EIR. Any “No” response must be discussed.

YES NO
(1) The lead agency for subsequent projects shall be the City of Modesto or a responsible agency identified in the Master EIR.
(2) City policies that reduce, avoid, or mitigate environmental effects will continue to be in effect and, therefore, would be applied to subsequent projects where appropriate. The policies are described in the list of policies in place as “mitigating policies” attached to the Initial Study template. Project impacts would be mitigated to a less-than-significant level using the Master EIR’s mitigating policies only.
(3) Federal, State, regional, and Stanislaus County regulations do not change in a manner that is less restrictive on development than current law (i.e., would not offer the same level of protection assumed under the Master EIR).
(4) No specific information concerning the known or potential presence of significant resources is identified in future reports, or through formal or informal input received from responsible or trustee agencies or other qualified sources. (5) The project will occur within the boundaries of the City’s planning area as established in the Urban Area General Plan.
(6) Implementation of the project will comply with all appropriate mitigating policies contained and enumerated in the 2019 Urban Area General Plan Master EIR.

5. Currency of the Master EIR Document
The Master EIR should be reviewed on a regular basis to determine its currency, and whether additional analysis / mitigation should be incorporated into the Master EIR via a Supplemental or Subsequent EIR (CEQA Section 21157.6). Staff has reviewed Sections 1 through 20 of this document in light of the criteria listed below to determine whether the Master EIR is current. The analyses contained within the Master EIR are current as long as the following circumstances have not changed. Any “no” response must be explained.

YES NO
(1) Certification of the Urban Area General Plan Master EIR occurred less than five (5) years prior to the filing of the application for this subsequent project. (2) The proposed project is described in the Master EIR and its approval will not affect the adequacy of the Master EIR for any subsequent project because the City can make the following findings:
(a) No substantial changes have occurred with respect to the circumstances under which the Master EIR was certified;
(b) No new information, which was not known and could not have been known at the time the Master EIR was certified as complete, has become available; and, (c) Policies that require site-specific mitigation, and avoidance or other mitigation of impacts as a prerequisite to future development, remain in full force and effect. #20..
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 5 March 22, 2024
Discussion:
(1) The General Plan Master EIR was last certified on March 5, 2019. The application for this project was filed on January 12, 2024, less than five years after the certification date. The analysis contained in the Master EIR is adequate for subsequent projects, as documented in the discussion below.
(2) The project is consistent with the analysis contained in the Master EIR. This is documented in the discussion of the 20 individual evaluation topics within this initial study. (2)(a) There have been no substantive changes to the Urban Area General Plan since the Master EIR was certified that would create additional significant environmental effects that were not analyzed by the Master EIR.
(2)(b) There has been no new information that would affect the adequacy of the analysis contained in the Master EIR.
(2)(c) All policies contained in the Master EIR that require site-specific mitigation or avoidance of impacts remain in effect and will be applied to the project as appropriate.

IV. ENVIRONMENTAL ANALYSIS
This Initial Study, in accordance with Section 21157.1(b) of the Public Resources Code, discloses whether the proposed project may cause any project-specific significant effect(s) to the environment that was not examined in the Final Master EIR for the Urban Area General Plan, and whether new or additional mitigation measures or alternatives may be required as a result. The Initial Study thereby documents whether or not the project is “within the scope” of the Master EIR.

Pursuant to Public Resources Code Section 21157.1, no new environmental document or findings are necessary for projects that are determined to be within the scope of the Master EIR. Adoption of the findings specified in Section III.1, above, after completion of the Initial Study fulfills the City’s obligation in that situation. All environmental effects cited reflect 2040 conditions resulting from the Urban Area General Plan, as identified in the Master EIR.

The environmental impact analysis in the Master EIR for the Urban Area General Plan is organized in twenty subject / topical areas. The following analysis is based on the impact analyses contained in Chapter V of the Master EIR. For ease of reference, the sections are numbered in the same order as the analyses in Chapter V.
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 6 March 22, 2024

1. TRAFFIC AND CIRCULATION
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable traffic and circulation impacts expected after application of mitigating policies.

Direct Impacts
Effect: Increased automobile traffic will result in roadway segments (see Master EIR Table V-1-6, pages V-1-36 to V-1-39) operating at LOS D, Modesto’s significance threshold for automobile traffic, or lower (LOS E or F).

Effect: The substantial increase in traffic relative to the existing load and capacity of the street system will cause, either individually or cumulatively, the violation of automobile service standards established by StanCOG’s Congestion Management Plan for designated roads and highways.

Effect: A substantial increase in automobile vehicle miles traveled (see Master EIR Tables V-1-7 through V-1-10, pages V-1-44 through V-1-45).

Cumulative Impacts
Effect: Potential for growth inducement or acceleration of development resulting from highway and local road projects.

Effect: Substantial increase in traffic in relation to the existing traffic load and capacity of the street system, including a violation, either individually or cumulatively, of an automobile LOS standard established by the Congestion Management Plan for designated roads and highways.

Effect: Increased demand for capacity-enhancing alterations to existing roads or automobile traffic reduction.

Other impact categories affected by Traffic and Circulation are addressed throughout this Initial Study (see also: Section 2, Air Quality and Greenhouse Gas Emissions; Section 3, Generation of Noise; Section 18, Energy; Section 19, Visual Resources; and, Section 20, Land Use and Planning). b. Urban Area General Plan Mitigating Policies Applied to the Project Traffic and Circulation-related mitigating policies pertinent to this project are found on Master EIR pages V-1-7 through V-1-30. All mitigating policies appropriate to the project, including any new measures, will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. #20..
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 7 March 22, 2024
c. Project-Specific Effects
Section V-1.B of the Master EIR provides analysis of Traffic and Circulation impacts of development of the General Plan. The following is an analysis of whether the proposed project would result in any new, significant, project-specific effect(s) that were not disclosed in the Master EIR.

Significance Criteria: A subsequent development project will have a new significant effect on the environment if it would exceed the following thresholds / criteria:

1. TRAFFIC AND CIRCULATION
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project would conflict with an
applicable plan, ordinance or policy (including those
within the Urban Area General Plan) establishing
measures of effectiveness for the performance of
the circulation system, taking into account all
modes of transportation including mass transit and
non-motorized travel and relevant components of
the circulation system including, but not limited to
intersections, streets, highways and freeways,
pedestrian and bicycle paths, and mass transit.
2) The proposed project would conflict with an
applicable congestion management program,
including, but not limited to, level of service
standards and travel demand measures, or other
standards established by the county congestion
management agency, for designated facilities.
3) The proposed project would result in a change in
air traffic patterns, including either an increase in
traffic levels or a change in location that results in
substantial safety risks.
4) The proposed project would substantially
increase hazards due to a design feature (e.g. sharp
curves or dangerous intersections) or incompatible
uses (e.g. farm equipment), or result in inadequate
emergency access.
5) The proposed project would conflict with adopted
policies, plans, or programs regarding public transit,
bicycle, or pedestrian facilities, or otherwise
decrease the performance or safety of such
facilities.
6) The proposed project would result in projected
Level of Service “D” or worse for non-exempt City of
Modesto roadways, Caltrans facilities, and/or
County of Stanislaus roadways.
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 8 March 22, 2024
Discussion:
(1) The proposed project is an amendment of a Planned Development to change the allowable uses from Neighborhood Commercial (C-1) to Highway Commercial (C-3). It will have no effect on the circulation system. Since the General Plan designation of the project parcel is already Commercial, the assumptions and conclusions made in the MEIR would still be true with this change. No impact.
(2) The proposed project will have no impact on the level of service standard established by the county congestion management.
(3) The proposed project will have no impact on air traffic patterns. (4) The proposed project will not increase circulation hazards due to design or incompatible uses or have no effect on emergency access above what is assumed in the adopted Master EIR. C-3 uses that could create circulation hazards based on the layout of the site and the traffic patterns of the surrounding uses are prohibited as part of the Conditions of Approval for the project.

Thus, any potential impact of the project is less than significant with this mitigation. (5) The proposed project will have no impact on alternative transportation policies. (6) The proposed project will have no impact on Level of Service.

2. AIR QUALITY AND GREENHOUSE GAS EMISSIONS
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable air quality impacts expected after application of mitigating policies.

Direct Impacts
Effect: Expected automobile traffic will result in increased operational emissions of reactive organic gases (ROG) and oxides of nitrogen (NOX), and increased carbon monoxide (CO) levels in the project area (see Master EIR Tables V-2-4 through V-2-6, pages V-2-40 through V-2-41).

Effect: Expected construction and development activities could result in increased emissions of particulate matter 10 microns or less (PM10) and 2.5 microns or less in diameter (PM2.5) (see Master EIR page V-2-31, “2. Significant Direct Impacts”).

Cumulative Impacts
The Master EIR indicates the same impacts identified as direct impacts above will contribute to regional impacts on air quality for the criteria pollutants ROG, NOx, PM10, and PM2.5. b. Urban Area General Plan Mitigating Policies Applied to the Project Air quality-related mitigating policies that are relevant to the proposed project are found on pages V2-8 through V-2-29 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 9 March 22, 2024
Discussion:

There are no appropriate policies to be applied to this project include from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-2.B of the Master EIR is the analysis of air quality impacts resulting from development of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project -specific effect not analyzed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

2. AIR QUALITY AND GREENHOUSE GAS
EMISSIONS Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project would be inconsistent with
the air quality and greenhouse gas emissions
policies in the Urban Area General Plan.
2) The proposed project would conflict with or
obstruct implementation of the applicable air quality
plan.
3) The proposed project would violate any air
quality standard or contribute substantially to
existing or projected violation.
4) The proposed project would result in a
cumulatively considerable net increase of any
criteria pollutant for which the project region is in
non-attainment under an applicable federal or state
ambient air quality standard (including releasing
emissions that exceed quantitative thresholds for
ozone precursors).
5) The proposed project would expose sensitive
receptors to substantial pollutant concentrations.
6) The proposed project would create objectionable
odors affecting a substantial number of people.
7) The proposed project would generate
greenhouse gas emissions, either directly or
indirectly, that may have a significant impact on the
environment.
8) The proposed project would conflict with an
applicable plan, policy, or regulation adopted for the
purpose of reducing the emission of greenhouse
gases.
#20..
- 1072 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 10 March 22, 2024
Discussion:
(1) The proposed project will have no impact on Urban Area General Plan air quality and greenhouse gas policies.
(2) The proposed project will not conflict with any air quality plan. No impact.

(3) The proposed project will not violate any air quality standard or contribute substantially to an existing or projected violation. No impact.
(4) The proposed project will have no increase of any criteria pollutant effect on Urban Area General Plan air quality and greenhouse gas policies. No impact. (5) The proposed project will have no impact on sensitive receptors. (6) The proposed project will not result in the creation of objectionable odors. No impact. (7) The proposed project will not generate greenhouse gas emissions above what is assumed in the adopted Master EIR. No impact.
(8) The proposed project will not conflict with a plan, policy or regulation adopted for the purpose of reducing the emission of greenhouse gasses. No impact.

3. GENERATION OF NOISE AND VIBRATION
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable noise and vibration impacts expected after application of mitigating policies.

Direct Impacts
Effect: Future automobile traffic noise levels and roadway construction and maintenance activities resulting from development consistent with the Urban Area General Plan will exceed the City’s noise thresholds at various locations, but particularly in areas adjacent to heavily traveled roadways (see Master EIR Table V-3-9, pages V-3-28 through V-3-31.

Effect: New noise-generating land uses could produce noise levels that would exceed the City’s noise thresholds of acceptability at sensitive receptors in the vicinity.

Effect: Construction noise would cause a temporary or periodic increase in noise exposure above ambient noise levels.

Effect: Demolition and construction activities may expose people to excessive vibration levels.

Cumulative Impacts
Effect: Traffic from development in the City of Modesto would, when combined with traffic from new development in the County and other cities, contribute to a cumulative increase in roadside noise levels on major roads and highways throughout Stanislaus County. #20..
- 1073 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 11 March 22, 2024
b. Urban Area General Plan Mitigating Policies Applied to the Project Noise policies that are pertinent to the project being analyzed in this Initial Study are found on pages V-3-18 through V-3-24 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-than-significant level.
c. Project-Specific Effects
Section V-3.B of the Master EIR discloses noise impacts resulting from development of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project -specific effect not analyzed in the Master EIR.

Significance Criteria: Determination of the proposed project’s effects are based on the following thresholds. Project-specific effects will be less than significant unless:

3. NOISE AND VIBRATION
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with Urban
Area General Plan noise and vibration policies and
standards.
2) The proposed project would generate excessive
ground-borne noise and/or vibration levels.
3) The proposed project would result in a
permanent increase of 3 dBA where any other noise
threshold or standard would be exceeded, and/or 5
dBA where noise levels would otherwise fall within
acceptable limits, in ambient noise levels in the
project vicinity above levels existing without the
project.
4) The proposed project would result in a
substantial temporary or periodic increase in
ambient noise levels existing without the project.
5) For a project located within an airport land use
plan, or where such a plan has not been adopted,
within two (2) miles of a public airport or public use
airport, the proposed project would result in
exposure of people residing or working in the
project area to excessive noise levels.
6) For a project within the vicinity of a private
airstrip, the proposed project would expose people
residing or working in the project area to excessive
#20..
- 1074 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 12 March 22, 2024

3. NOISE AND VIBRATION
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
noise levels.
7) For new residential development within 200 feet
of active rail lines, the proposed project would
result in noise levels generated during train passbys
that exceed 50 dBA Lmax inside bedrooms or 55 dBA
Lmax inside other occupied areas.

Discussion:
(1) The proposed project is consistent with Urban Area General Plan noise and vibration policies.

No impact.
(2) The proposed project will not generate excessive permanent noise or vibration levels. No impact. (3-4) The proposed project will not generate any noticeable increase in ambient noise levels above what is assumed in the adopted Master EIR. No impact.
(5) The proposed project is not within an airport land use plan, nor within 2 miles of a public airport.

No impact.
(6) The proposed project is not within the vicinity of a private airstrip. No impact. (7) The proposed project is not within 200 feet of active rail lines. No impact.

4. EFFECTS ON AGRICULTURAL LANDS
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on agricultural lands expected after application of mitigating policies.

Direct Impacts
Effect: Development consistent with the Urban Area General Plan may convert up to approximately 10,500 acres of farmland in various categories in the Planned Urbanizing Area to urban uses.

Effect: Approximately 1,100 acres of urban development along a 350-foot wide 26-mile boundary between urban and agricultural uses could be affected by continued agricultural operations, including noise, dust, and chemical overspray or drift.

Cumulative Impacts
Effect: Growth within Modesto’s planning area would contribute considerably to the loss of agricultural land within Stanislaus County, accounting for the conversion of as much as approximately 10,500 acres of farmland in various categories in the Planned Urbanizing Area to 2040. #20..
- 1075 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 13 March 22, 2024
b. Urban Area General Plan Mitigating Policies Pertinent to the Project Agricultural land-related mitigating policies pertinent to the proposed project are found on pages V-4- 4 to and V-4-8 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

The appropriate policies to be applied to this project include none from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-4.B of the Master EIR discloses the impacts resulting from the implementation of the Urban Area General Plan on agricultural lands. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect(s) not previously analyzed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

4. EFFECTS ON AGRICULTURAL RESOURCES
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project would be inconsistent with
the Urban Area General Plan policies relating to
agricultural resources.
2) The proposed project would convert areas of
Prime Farmland, Unique Farmland or Farmland of
Statewide Importance to non-agricultural uses,
impair the agricultural productivity of prime
agricultural land, or result in substantial pesticide
overspray, dust, or noise at urban uses.
3) The proposed project would conflict with existing
zoning for agricultural use, or with a Williamson Act
contract.
4) The proposed project would conflict with existing
zoning for, or cause rezoning of, forest land or
timberland.
5) The proposed project would result in the loss of
forest land or conversion of forest land to nonforest use. 6) The proposed project would involve other
changes to the environment that could result in
conversion of farmland or forest land.
#20..
- 1076 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 14 March 22, 2024
Discussion:
(1) The proposed project will not be inconsistent with Urban Area General Plan agricultural resources policies. No impact.
(2) The proposed project will not convert any farmland. The site is surrounded by urban development. No impact.
(3) The proposed project will not conflict with existing zoning for agricultural use or a Williamson Act contract. No impact.
(4-5) The proposed project will have no impact on any forest land or timberland. (6) The proposed project will have no impact on farmland or forest land.

5. INCREASED DEMAND FOR LONG-TERM WATER SUPPLIES
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on long-term water supplies expected after application of mitigating policies.

Direct Impacts
Effect: Implementation of the Urban Area General Plan could substantially deplete groundwater supply or interfere with recharge.

Effect: Implementation of the Urban Area General Plan could necessitate construction of new water treatment facilities, or expansion of existing facilities, the construction of which could cause significant environmental effects.

Effect: Implementation of the Urban Area General Plan could necessitate expansion of existing water supply entitlements.

Cumulative Impacts
Effect: Groundwater withdrawals from both subbasins by the City, when combined with other users’ withdrawals, may result in over drafting.

Effect: Cumulative impacts resulting from construction of new water treatment facilities, or expansion of existing facilities, could cause significant environmental effects. b. Urban Area General Plan Mitigating Policies Applied to the Project Water supply-related mitigating policies pertinent to the proposed project are found on pages V-5-11 through V-5-16 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
#20..
- 1077 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 15 March 22, 2024
Discussion:

The appropriate policies to be applied to this project include: none from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-5.B of the Master EIR discloses impacts on long-term water supplies resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

5. EFFECTS RELATIVE TO INCREASED
DEMAND FOR LONG TERM WATER SUPPLIES Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with the
Urban Area General Plan policies relating to water
supply.
2) The proposed project would substantially deplete
groundwater supply, interfere with groundwater
recharge, result in water demand exceeds the
capacity for recharge or that would contribute to
overdraft of the groundwater basins.
3) The proposed project would require or result in
the construction of new water treatment facilities or
expansion of existing facilities, the construction of
which could cause significant environmental effects.
4) The proposed project would exceed existing
water supply entitlements or require expansion of
entitlements.

Discussion:
(1) The proposed project is not inconsistent with the UAGP polices relating to water supply. No impact.
(2) The proposed project will not deplete groundwater supply, interfere with groundwater recharge, nor result in construction of or expansion of water treatment facilities. No impact. (3-4) The proposed project will have no impact on water demand above what is assumed in the adopted Master EIR.

6. INCREASED DEMAND FOR SANITARY SEWER SERVICES
a. Significant Effects Identified in the Master EIR
#20..
- 1078 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 16 March 22, 2024
The Master EIR discloses the following residual significant and unavoidable impacts on sanitary sewer services after application of mitigating policies.

Direct Impacts
Effect: Development resulting from implementation of the Urban Area General Plan may result in exceedance of wastewater treatment requirements of the Central Valley RWQCB.

Effect: Development resulting from implementation of the Urban Area General Plan may require or result in construction of new wastewater facilities, or the expansion of existing facilities, that could cause significant effects.

Effect: Development resulting from implementation of the Urban Area General Plan may result in a finding that the wastewater treatment facilities do not have adequate capacity to serve the projected demand in addition to the provider’s existing commitments.

Cumulative Impacts
Effect: Development resulting from implementation of the Urban Area General Plan may result in cumulative effects similar to those described under “direct Impacts,” above. b. Urban Area General Plan Mitigating Policies Applied to the Project Sewer service-related mitigating policies that are relevant to the proposed project are found on pages V-6-3 through V-6-7 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-6.B of the Master EIR discloses impacts on the Increased Demand for Sanitary Sewer Service resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

6. INCREASED DEMAND FOR SANITARY
SEWER SERVICES Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with
wastewater policies in the Urban Area General Plan,
or would exceed wastewater treatment
requirements of the Central Valley RWQCB.
#20..
- 1079 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 17 March 22, 2024

6. INCREASED DEMAND FOR SANITARY
SEWER SERVICES Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
2) The proposed project would require or result in
the construction of new wastewater facilities or the
expansion of existing facilities, beyond those
identified improvements needed to serve the
proposed project, which would cause significant
effects.
3) The proposed project would result in a finding
that the wastewater treatment facilities do not have
adequate capacity to serve the proposed project’s
projected demand in addition to the provider’s
existing commitments.

Discussion:

(1) The proposed project is not inconsistent with wastewater policies, nor would it exceed treatment requirements. No impact.
(2) The proposed project would not require or result in the construction of new wastewater facilities or the expansion of existing facilities, beyond those identified improvements needed to serve the proposed project. No impact.
(3) The proposed project would not result in a finding that the wastewater treatment facilities do not have adequate capacity to serve the proposed project’s projected demand in addition to the provider’s existing commitments. No impact.

7. LOSS OF SENSITIVE WILDLIFE AND PLANT HABITAT
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on sensitive wildlife and plant habitat expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant impacts on sensitive wildlife and plan habitat are expected to occur with the application of the policies contained in the Urban Area General Plan.

Cumulative Impacts
Effect: Implementation of the Urban Area General Plan will contribute to the cumulative impact of habitat loss in the San Joaquin Valley. Requiring increased density / intensity for new development than has occurred in the past, or that is expected in the future, would minimize the City’s contribution to the cumulative loss of habitat. Nonetheless, this is a significant and unavoidable impact. b. Urban Area General Plan Mitigating Policies Applied to the Project #20..
- 1080 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 18 March 22, 2024
Wildlife and plant habitat-related mitigating policies that are pertinent to the proposed project are found on pages V-7-18 through V-7-25 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

The applicable mitigating policies to be applied to this project include none from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a lessthan-significant level. c. Project-Specific Effects
Section V-7.B of the Master EIR discloses impacts on the Loss of Sensitive Wildlife and Plant Habitat resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

7. LOSS OF PLANT AND WILDLIFE HABITAT
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with the
Urban Area General Plan policies related to loss of
sensitive plant and wildlife habitat.
2) The proposed project would have a substantial
adverse effect, either directly or through habitat
modifications, on any species identified as a
candidate, sensitive or special-status species in local or regional plans, policies or regulations, or by the
California Department of Fish and Game or U.S. Fish
and Wildlife service.
3) The proposed project would have a substantial
adverse effect on any riparian habitat or other
sensitive natural community identified in local or
regional plans, policies or regulations, or by the
California Department of Fish and Game or U.S. Fish
and Wildlife service.
4) The proposed project would have a substantial
adverse effect on federally-protected wetlands as
defined by Section 404 of the Clean Water Act
(including, but not limited to, marshes, vernal pools,
coastal wetlands, etc.) through direct removal,
filling, hydrological interruption or other means.
5) The proposed project would interfere
substantially with the movement of any native
resident or migratory fish or wildlife species or with
#20..
- 1081 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 19 March 22, 2024

7. LOSS OF PLANT AND WILDLIFE HABITAT
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
established native resident or migratory wildlife
corridors, or impede the use of native wildlife
nursery sites.
6) The proposed project would conflict with any
local policies or ordinances protecting biological
resources, such as a tree preservation policy or
ordinance.
7) The proposed project would conflict with the
provisions of an adopted habitat conservation plan,
natural community conservation plan, or other
approved local, regional, or state habitat
conservation plan.

Discussion:
(1) The proposed project is not inconsistent with wildlife and plant habitat policies. No impact. (2) The proposed project will have no impact on any species identified as a candidate, sensitive or special-status species in local or regional plans, policies or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife service. (3) The proposed project would have no impact on any riparian habitat or other sensitive natural community identified in local or regional plans, policies or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife service. (4) According to the National Wetlands Inventory, no wetlands exist on or near the site. No impact. (5) The proposed project would not interfere with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites. No impact. (6) The proposed project would not conflict with any local policies or ordinances protecting biological resources. No impact.
(7) The proposed project would not conflict with the provisions of an adopted habitat conservation plan, natural community conservation plan, or other approved local, regional, or state habitat conservation plan. No impact.

8. DISTURBANCE OF ARCHAEOLOGICAL / HISTORICAL SITES
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on archaeological / historical sites expected after application of mitigating policies.

Direct Impacts
#20..
- 1082 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 20 March 22, 2024
Effect: Modification resulting in a substantial adverse change in the significance of a historically relevant resource, or the demolition of a listed or eligible historically relevant resource.

Cumulative Impacts
Effect: No additional cumulative impacts were disclosed in the Master EIR. The Direct impact described above could also result in a significant cumulative impact. b. Urban Area General Plan Mitigating Policies Applied to the Project Archaeological or historic resource-related mitigating policies that are pertinent to the project being analyzed in this Initial Study are found on page V-8-16 through V-8-25 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.” Discussion:

The applicable mitigating policies to be applied to this project include: none from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a lessthan-significant level. c. Project-Specific Effects
Section V-8.B of the Master EIR discloses impacts on archaeological / historical resources resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in any new, significant, project-specific effect(s) not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

8. ARCHAEOLOGICAL / HISTORICAL SITES
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with the
Urban Area General Plan archaeological / historical
resource policies.
2) The proposed project would result in a
modification that would result in a substantial
adverse change in the significance of the resource
or demolition of a listed or eligible historic resource. 3) The proposed project would have an adverse
effect on any structure more than 50 years old that
has been determined to have historical significance
per policy AH-8 as shown in the Master EIR.
4) The proposed project would involve the removal
of known significant resources.
5) The proposed project would result in an adverse
#20..
- 1083 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 21 March 22, 2024

8. ARCHAEOLOGICAL / HISTORICAL SITES
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
impact to undiscovered archaeological and/or
paleontological resources.
6) The proposed project would cause a substantial
adverse change to a tribal cultural resource, as
defined by State law, that is listed (or is eligible for listing) in the California Register of Historical
Resources (or a local register of historical
resources), or that otherwise has potential
significance to a California Native American Tribe,
including human remains.

Discussion:
(1) The proposed project is not inconsistent with the UAGP archaeological/historical resource policies. No impact.
(2) The proposed project will have no impact on historical buildings or landmarks. (3) The proposed project will have no impact on existing structures that are more than 50 years old that are determined to have historical significance.
(4) The proposed project will have no impact on known significant resources. (5) The proposed project will have no impact on cultural resources. (6) On February 16, 2024, Modesto Planning staff reached out to the Ione Band of Miwok Indians and the Northern Valley Yokuts to offer an opportunity to consult on the proposed project in accordance with the regulations of Assembly Bill 52 and Section 21080.3.1(d) of the California Public Resources Code. No response has been received regarding the opportunity to consult on the proposed project. As the project does not require amendment of the General Plan, Senate Bill 18 regulations are not applicable to this project. City staff therefore is able to conclude that there is no impact on tribal cultural resources, nor does the project have any potential significance to a California Native American Tribe.

9. INCREASED DEMAND FOR STORM DRAINAGE
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on storm drainage expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
#20..
- 1084 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 22 March 22, 2024
Effect: Existing drainage inadequacies, combined with the associated increase in impervious surface areas created by pavement and structures, have the potential to increase the rate or amount of runoff in a manner that could result in flooding in the urban area. Cumulative hydrologic impacts of storm water flows from Modesto’s urban areas and other areas of the County could occur due to the fixed capacity of MID and TID irrigation canals to convey drainage west to the San Joaquin River. If drainage channels in some areas prove insufficient to handle the increased drainage discharges, existing storm water runoff from urban and agricultural areas during large storm events would have to be interrupted until water levels receded to a point allowing the resumption of discharges to the channel. Ceasing discharges to drainage channels could cause inundation in and around the drainage conveyance pipeline systems, surface drainage channels, detention basins, and other urban areas. This cumulative impact is considered significant and unavoidable.
b. Urban Area General Plan Mitigating Policies Applied to the Project Storm Drainage-related mitigating policies that are pertinent to the project being analyzed in this Initial Study are found on pages V-9-4 through V-9-8. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-9.B of the MASTER EIR discloses impacts on the demand for storm drainage resulting from development of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

9. INCREASED DEMAND FOR STORM
DRAINAGE Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with the
Urban Area General Plan storm drainage policies.
2) The proposed project would substantially
increase the rate or amount of surface runoff in a
manner that would result in on- or off-site flooding.
3) The proposed project would create or contribute
runoff water that would exceed the capacity of
existing or planned storm drainage systems or
provide substantial additional sources of polluted
runoff.

Discussion:
#20..
- 1085 -
City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 23 March 22, 2024
(1) The proposed project is not inconsistent with the UAGP storm drainage policies. No impact. (2-3) The proposed project will have no impact on surface runoff above what is assumed in the adopted Master EIR. The site is already paved and no development is proposed with this Planned Development Amendment.

10. FLOODING AND WATER QUALITY
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on flooding and water quality expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project Flooding and Water Quality-related mitigating policies that are pertinent to the project being analyzed in this Initial Study are found on pages V-10-7 through V-10-10 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.” Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-10.B of the Master EIR provides analysis of Flooding and Water Quality impacts of development of the General Plan, the following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not previously analyzed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

10. FLOODING AND WATER QUALITY
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with the
flooding and water quality policies in the Urban
Area General Plan.
#20..
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General Plan Master EIR 24 March 22, 2024

10. FLOODING AND WATER QUALITY
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
2) The proposed project would place housing within
a 100-year flood hazard area.
3) The proposed project would place structures
within a 100-year floodplain as defined by FEMA.
4) The proposed project would expose people or
structures to a significant risk of loss, injury or
death including flooding as a result of the failure of
a levee or dam.
5) The proposed project would substantially alter
the existing drainage pattern of the site or area or
the course of a stream or river that would result in
flooding onsite or offsite.
6) The proposed project would violate water quality
standards, including groundwater standards
administered by the SWRCB’s DDW, standards for
surface water quality such as the NPDES or waste
discharge requirements.
7) The proposed project would substantially alter
the existing drainage pattern of the site or area or
the course of a stream or river in a manner that
would result in substantial erosion or siltation onsite or offsite.
8) The proposed project would create or contribute
runoff water that would provide substantial
additional sources of polluted runoff or substantially
increase the rate or amount of surface runoff in a
manner that would result in flooding onsite or
offsite.

Discussion:
(1) The proposed project is not inconsistent with UAGP flooding and water quality policies. No impact.
(2) The proposed project will not place housing within a 100-year flood hazard zone. No impact. (3) The proposed project will not place structures in the 100-year floodplain. No impact. (4) The proposed project will not expose people or structures to a significant risk of loss, injury, or death including flooding as a result of the failure of a levee or dam. No impact. (5) The proposed project will not alter the existing drainage pattern of the site or area or the course of a stream or river that would result in flooding onsite or offsite. No impact. (6) The proposed project will not violate water quality standards. No impact. #20..
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(7) The proposed project will not substantially alter the existing drainage pattern of the site or area or the course of a stream or river in a manner that would result in substantial erosion or siltation onsite or offsite. No impact.
(8) The proposed project will not create or contribute runoff water that would provide substantial additional sources of polluted runoff or substantially increase the rate or amount of surface runoff in a manner that would result in flooding onsite or offsite. No impact.

11. INCREASED DEMAND FOR PARKS AND OPEN SPACE
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on parks and open space expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project Parks and open space-related mitigating policies that are pertinent to the proposed project are found on pages V-11-2 through V-11-8 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-11.B of the MASTER EIR discloses impacts of the Urban Area General Plan on parks and open space. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. Projectspecific effects will be less than significant unless:

11. INCREASED DEMAND FOR PARKS AND
OPEN SPACE Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with the
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 26 March 22, 2024

11. INCREASED DEMAND FOR PARKS AND
OPEN SPACE Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
Urban Area General Plan parks and open space
policies.
2) The proposed project would eliminate parks or
open space.
3) The proposed project would not provide at least
three (3) total acres of parkland and open space per
1,000 people (one acre for neighborhood park
facilities; two acres for community park facilities).

Discussion:
(1) The proposed project is not inconsistent with the UAGP parks and open space policies. No impact.

(2) The proposed project will not eliminate parks of open space. No impact. (3) The proposed project does not increase population and would therefore not need to provide parkland. No impact.

12. INCREASED DEMAND FOR SCHOOLS
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on school facilities expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR. By statute, the impact of new students is considered to be mitigated below a level of significance by payment of school impact fees and the exercise of any or all of the financing options set out in Government Code Section 65997.

Cumulative Impacts
Effect: Similar to direct impacts resulting from implementation of the Urban Area General Plan, no residual significant direct impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project Mitigation relies upon the implementation of the policies in place under the Modesto Urban Area General Plan. As long these policies are applied to all subsequent projects, no new mitigation is necessary.

Further, payment of school impact fees and compliance with SB 50 is statutorily deemed to be full mitigation of school impacts (Government Code Section 65995).

Schools-related mitigating policies that are relevant to the proposed project can be found on pages V12-3 through V-12-5 of the Master EIR. All mitigating policies appropriate to the project will be #20..
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 27 March 22, 2024
incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-12.B of the Master EIR discloses impacts resulting from implementation of the Urban Area General Plan associated with increased demand for schools. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

12. INCREASED DEMAND FOR SCHOOLS
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with Urban
Area General Plan school policies.
2) The proposed project would result in new
student population that exceeds the school system
capacity, or if the project conflicts with established
educational uses of the area, except to the limits
established under SB50 / Proposition 1A as
subsequently amended.

Discussion:
(1) The proposed project is not inconsistent with UAGP school policies. No impact. (2) The proposed project will not result in new student population. No impact.

13. INCREASED DEMAND FOR POLICE SERVICES
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on police services expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 28 March 22, 2024
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project Police services-related mitigating policies that are pertinent to the proposed project are found on pages V-13-2 through V-13-5 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-13.B of the Master EIR discloses impacts on police services resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

13. INCREASED DEMAND FOR POLICE
SERVICES Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with Urban
Area General Plan policies relating to police service.
2) The proposed project would result in
development occurring in an area(s) that cannot be
adequately served by existing or budgeted police
personnel and facilities.

Discussion:
(1) The proposed project is not inconsistent with UAGP policies relating to police service. No impact.
(2) The proposed project will not result in development occurring in an area that cannot be adequately served by existing or budgeted police personnel and facilities. No impact.

14. INCREASED DEMAND FOR FIRE SERVICES
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on fire services expected after application of mitigating policies.
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 29 March 22, 2024
Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project Fire Services-related mitigating policies pertinent to the project being analyzed in this Initial Study are found on pages V-14-3 through V-14-5 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-14.B of the Master EIR discloses impacts on fire services resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

14. INCREASED DEMAND FOR FIRE
SERVICES Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with Urban
Area General Plan policies relating to fire service.
2) The proposed project would result in any
substantial adverse impact(s) associated with the
need for – and/or provision of – new or physically
altered fire service facilities, the construction of
which could cause significant environmental
impacts, in order to maintain acceptable response
times.

Discussion:
(1) The proposed project is not inconsistent with UAGP policies relating to fire service. No impact. (2) The proposed project will not result in any substantial adverse impacts associated with the need for and/or provision of new or physically altered fire service facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable response times.

The proposed project allows for Highway Commercial (C-3) uses in the future. Some C-3 uses, #20..
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 30 March 22, 2024
such as Heavy Vehicle Equipment Sales, Rental, Repair, and Service, may have greater fire service needs than uses allowed in lower intensity Commercial zoning designations. However, such uses are well within the Modesto Fire Department’s capacity to handle at present, as evidenced by the approximately 6.35 acres of C-3 zoned parcels to the north of the proposed parcel. The amount of additional fire service needed for a change for this slightly over an acre parcel from its existing allowable uses to C-3 uses is less than significant.

15. GENERATION OF SOLID WASTE
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts on solid waste expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project Solid waste-related mitigating policies that are pertinent to the proposed project are found on pages V15-4 through V-15-5 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-15.B of the Master EIR discloses solid waste impacts resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. Projectspecific effects will be less than significant unless:

15. GENERATION OF SOLID WASTE
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The project is inconsistent with the solid waste
policies in the Urban Area General Plan.
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 31 March 22, 2024

15. GENERATION OF SOLID WASTE
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
2) The project would result in solid waste
generation that exceeds the projected capacity of
existing landfills and waste-reduction facilities, or if it would result in non-compliance with any federal,
state or local statutes or regulations related to solid waste.

Discussion:
(1) The proposed project is not inconsistent with the UAGP solid waste policies. No impact. (2) The proposed project will not result in solid waste generation that exceeds the projected capacity of existing landfills and waste-reduction facilities, nor would it result in non-compliance with any federal, state or local statutes or regulations related to solid waste. No impact.

16. GENERATION OF HAZARDOUS MATERIALS
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts regarding hazardous materials expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project Hazardous materials-related mitigating policies that are pertinent to the proposed project are found on pages V-16-5 through V-16-10 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 32 March 22, 2024
Section V-16.B of the Master EIR discloses impacts on hazardous materials resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

16. HAZARDS AND HAZARDOUS MATERIALS
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with the
Urban Area General Plan hazards and hazardous
materials policies.
2) The proposed project would create a significant
hazard to the public or the environment through the
routine transport, use or disposal of hazardous
materials, or through reasonably foreseeable upset
and accident conditions involving the release of
hazardous materials into the environment.
3) The proposed project would result in hazardous
materials emissions or handle hazardous materials,
substances, or waste within one-quarter mile of an
existing or proposed school.
4) The proposed project would be located on a site
that is included on a list of hazardous materials sites compiled pursuant to Government Code Section
65962.5 and, as a result, would create a significant
hazard to the public or environment.
5) For a project located within an airport land use
plan or, where such a plan has not been adopted,
within two (2) miles of a public airport or public use
airport, would result in a safety hazard for people
residing or working in the project area.
6) For a project within the vicinity of a private
airstrip, a safety hazard would result for people
residing or working in the project area.
7) The proposed project would impair
implementation of or physically interfere with an
adopted emergency response plan or emergency
evacuation plan.
8) The proposed project would expose people or
structures to a significant risk of loss, injury or
death involving wildland fires, including where
wildlands are adjacent to urbanized areas or where
residences are intermixed with wildlands.

Discussion:
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 33 March 22, 2024
(1) The proposed project is not inconsistent with the UAGP hazards and hazardous materials policies. No impact.
(2) The proposed project would not create a significant hazard to the public or the environment through the routine transport, use or disposal of hazardous materials, or through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment. No impact.
(3) The proposed project will not result in hazardous materials emissions or handle hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school. There are no schools within one-quarter mile of the project site. No impact. (4) The proposed project will not be located on a hazardous materials site pursuant to Government Code Section 65962.5. No impact.
(5) The project site is not within two miles of any airport. The nearest airport is approximately 3.7 miles away.
(6) The project site is not within the vicinity of a private airstrip. No impact. (7) The proposed project will not impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan. No impact. (8) The proposed project will not expose people or structures to a significant risk of loss, injury or death involving wildland fires. The property and its surroundings are developed with urban uses.

No impact.

17. GEOLOGY, SOILS, AND MINERAL RESOURCES
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts related to geology, soils, and mineral resources expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project Geology, soils, and mineral resource-related mitigating policies that are pertinent to the proposed project are found on pages V-17-7 through V-17-10 of the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
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General Plan Master EIR 34 March 22, 2024
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-17.B of the Master EIR discloses geology, soils, and mineral resource impacts resulting from implementation of the Urban Area General Plan. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. Projectspecific effects will be less than significant unless:

17. GEOLOGY, SOILS, AND MINERAL
RESOURCES Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The project is inconsistent with policies relating
to geology, soils, and mineral resources contained
in the Urban Area General Plan.
2) The proposed project would expose people or
structures to potential substantial adverse effects
including: the risk of loss, injury, or death involving fault rupture, strong seismic activity; location on an
expansive soil; loss of topsoil; or, result in the loss of availability of known mineral resources that
would be of value to the region and the state.

Discussion:
(1) The proposed project is not inconsistent with UAGP policies relating to geology, soils, and mineral resources. No impact.
(2) The proposed project will not expose people or structures to potential substantial adverse effects including: the risk of loss, injury, or death involving fault rupture, strong seismic activity; location on an expansive soil; loss of topsoil; or result in the loss of availability of known mineral resources that would be of value to the region and the state. No impact.

18. ENERGY
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts pertaining to energy expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR. #20..
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General Plan Master EIR 35 March 22, 2024
Cumulative Impacts
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project The following energy-related mitigating policies that are pertinent to the proposed project are found on pages V-18-2 and V-18-3 in the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-18.B of the Master EIR discloses impacts of implementing the Urban Area General Plan on energy resources. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

18. ENERGY
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with policies
relating to energy in the Urban Area General Plan.
2) The proposed project would result in energy
consumption during construction, operation,
maintenance, or removal that is more wasteful,
inefficient, and unnecessary than assumed in the
Urban Area General Plan.

Discussion:
(1) The proposed project is not inconsistent with UAGP energy policies. No impact. (2) The proposed project will not result in energy consumption during construction, operation, maintenance, or removal that is more wasteful, inefficient, and unnecessary than assumed in the Urban Area General Plan. Less than significant impact.

19. EFFECTS ON VISUAL RESOURCES
a. Significant Effects Identified in the Master EIR
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General Plan Master EIR 36 March 22, 2024
The Master EIR discloses the following residual significant and unavoidable impacts on visual resources expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
Effect: No additional cumulative impacts were disclosed in the Master EIR. b. Urban Area General Plan Mitigating Policies Applied to the Project The following visual resources-related mitigating policies pertinent to the proposed project are found on pages V-19-2 and V-19-3 in the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-18.B of the Master EIR discloses impacts of implementing the Urban Area General Plan on visual resources. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

19. VISUAL RESOURCES
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent with the
Urban Area General Plan visual resource policies.
2) The proposed project would have a substantial
adverse effect on a scenic vista.
3) The proposed project would substantially
damage scenic resources, including trees, rock
outcrops, and/or historic buildings along a state
scenic highway.
4) The proposed project would substantially
degrade the existing visual character or quality of
the site and its surroundings.
5) The proposed project would create a new source
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General Plan Master EIR 37 March 22, 2024

19. VISUAL RESOURCES
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
of substantial light or glare that would adversely
affect daytime or nighttime views.
6) The proposed project would substantially
degrade views from riverside areas and parks.
7) The proposed project would substantially
degrade views of riverside areas from public
roadways and/or nearby properties.

Discussion:
(1) The proposed project will not be inconsistent with the Urban Area General Plan visual resource policies.
(2) The proposed project will not have an adverse effect on a scenic vista. There are no scenic vistas in the vicinity of the project. No impact.
(3) The proposed project will not damage scenic resources. No impact. (4) The proposed project will not degrade the visual character of its surroundings above what is assumed in the adopted Master EIR. The project is proposed in an urbanized area on a developed site. Less than significant impact.
(5) The proposed project will not create a new source of substantial light or glare that would adversely affect daytime or nighttime views. Less than significant impact. (6) The proposed project will not substantially degrade views from riverside areas and parks. No impact.

(7) The proposed project will not substantially degrade views of riverside areas from public roadways or nearby properties. No impact.

20. LAND USE AND PLANNING
a. Significant Effects Identified in the Master EIR
The Master EIR discloses the following residual significant and unavoidable impacts pertaining to land use and planning expected after application of mitigating policies.

Direct Impacts
Effect: No residual significant direct impacts were disclosed in the Master EIR.

Cumulative Impacts
Effect: No residual significant cumulative impacts were disclosed in the Master EIR. #20..
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b. Master EIR and/or New Mitigation Measures Applied to the Project The following land use and planning-related mitigating policies pertinent to the proposed project are found on pages V-20-5 through V-20-12 in the Master EIR. All mitigating policies appropriate to the project will be incorporated into or made conditions of approval of this project and are listed in Section V, “Mitigating Policies Applied to Project.”
Discussion:

There are no appropriate mitigating policies to be applied to this project from the Master EIR. No new or additional mitigation measures or alternatives are required to reduce project impacts to a less-thansignificant level. c. Project-Specific Effects
Section V-20.B of the Master EIR discloses impacts of implementing the Urban Area General Plan on land use and planning. The following is an analysis of whether the proposed project would result in a new, significant, project-specific effect not disclosed in the Master EIR.

Significance Criteria: Determination of project effects will be based on the following thresholds. The project-specific effects will be less than significant unless:

20. LAND USE AND PLANNING
Potentially
Significant
Impact
Less Than
Significant
w/Mitigating
Policies
Less Than
Significant
Impact
No
Impact
1) The proposed project is inconsistent the Urban
Area General Plan land use and planning policies.
2) The proposed project contains elements that
would physically divide an established community in
a way not assumed in the Urban Area General Plan.
3) The proposed project conflicts with a land use
plan, policy or regulation established for the
purpose of avoiding or mitigating an environmental
impact by an agency that has jurisdiction over the
proposed project.
4) The proposed project conflicts with an applicable
habitat conservation plan or natural community
conservation plan.

Discussion:
(1) The proposed project will not be inconsistent with UAGP land use and planning policies. No impact.
(2) The proposed project will not result in the physical division of an established community. No impact.
(3) The proposed project will not conflict with a land use plan, policy, or regulation established for the purpose of avoiding or mitigating an environmental impact by an agency that has jurisdiction over the proposed project. No impact.
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(4) The proposed project will not conflict with an applicable habitat conservation plan or natural community conservation plan. No impact.

V. APPLICABLE URBAN AREA GENERAL PLAN MITIGATING POLICIES If the Initial Study results in the determination that a Finding of Conformance can be adopted for the proposed project, then Section A, below, applies. If the Initial Study results in the determination that a Finding of Conformance cannot be adopted and a Mitigated Negative Declaration or Focused EIR must be prepared for the project, then Section B, below, applies.

A. Urban Area General Plan Mitigating Policies Applied to the Project Pursuant to Public Resources Code Section 21157.1(c), in order for a Finding of Conformance to be made, all appropriate mitigating policies from the Master EIR shall be incorporated into the proposed project. Urban Area General Plan Policies that mitigate impacts shall be made part of the proposed project prior to approval by means of conditions of project approval or incorporation into the appropriate document or plan. Because the proposal does not include new development, no applicable or appropriate mitigating policies apply to the project.

B. New or Additional Mitigation Measures or Alternatives Required Where the project’s effects would exceed the significance criteria for each environmental impact category, a mitigated negative declaration or Focused EIR must be prepared. Staff has reviewed the project against the significance criteria thresholds established in the Master EIR for all impact categories in this Initial Study.

A Mitigated Negative Declaration or Focused EIR shall be prepared for the project. The following additional project-specific mitigation measures listed below are necessary to reduce the identified new significant effect:

Traffic and Circulation:

N/A
Air Quality and Greenhouse Gases:

N/A
Generation of Noise and Vibration:

N/A
Effects on Agricultural Lands:

N/A
Increased Demand for Long-Term Water Supplies:
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 40 March 22, 2024
N/A
Increased Demand for Sanitary Sewer Services:

N/A
Loss of Sensitive Wildlife and Plant Habitat:

N/A
Disturbance of Archaeological/Historic Sites:

N/A
Increased Demand for Storm Drainage:

N/A
Flooding and Water Quality:

N/A
Increased Demand for Parks and Open Space:

N/A
Increased Demand for Schools:

N/A
Increased Demand for Police Services:

N/A
Increased Demand for Fire Services:

N/A
Generation of Solid Waste:

N/A
Generation of Hazardous Materials:

N/A
Geology, Soils, and Mineral Resources:

N/A
#20..
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City of Modesto Initial Study C&ED No. 2024-04
General Plan Master EIR 41 March 22, 2024
Energy:

N/A
Effects on Visual Resources:

N/A
Land Use and Planning:

N/A
#20..
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C

ITY OF MODESTO

COUNCIL AGENDA
REPORT

DATE OF
MEETING:

August 13, 2024
Date: July 22,2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Bill Sandhu, Public Works Director
SUBJECT: Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC., CONTACT: Myriah Hill, Solid Waste Supervisor
[email protected], 209-577-5495
DESCRIPTION:

Hearing to consider the Annual Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the Solid Waste Haulers, to become effective September 1, 2024; approving a Fuel Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the haulers to become effective September 1, 2024; approving the update to the Schedule of Cash Security Deposits and Fees for Self-Haul Residents and Businesses; and approving the final report and recommendations of HF&H Consultants, LLC. regarding City of Modesto 2023 Solid Waste Financial Review and Rate Analysis. (Funding Sources: General Fund, Solid Waste Fund, Geer Road Landfill Fund, Carpenter Road Landfill Fund, Green Waste Fund, Compost Facility Improvements Fund, Streets Fund) STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s Strategic Plan Area of Focus: Quality of Life, “Engage partners across the community to ensure the safety, resilience, and attractiveness of Modesto”, Goal A: “Improve community safety and quality of life through a combination of prevention and intervention efforts that address safety and its underlying issues”, Strategy 6:

Motivate and encourage staff and community members to identify and mitigate blight issues; and Goal B: “Increase pride in Modesto’s diverse neighborhoods and business districts through beautification efforts and by investing in community assets and amenities”, Strategy 3: Evaluate current waste removal and city beautification policies and procedures.

BACKGROUND:

Modesto has contracts with two private sector companies to collect residential, commercial, and industrial garbage, organics, and recyclables in the City. The City does not set the actual rate the collection companies can charge to pick up the solid waste. Instead, the City sets the maximum rate that the collection companies can charge for each type of service. Per the Service Agreement with the solid waste collection companies, if deemed necessary by the City Council, rate adjustments shall be made to become effective on or near July 1 of each year. A computer #21..
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City Council, August 13, 2024
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC.

modeling formula is used to analyze audited financial data submitted by solid waste collection companies. The maximum rate that the collection companies may charge for each service is then based on the lowest cost hauler’s rates. These maximum rates can also be reviewed and changed when costs increase or decrease.

On February 24, 1998, by Resolution 1998-113, Council approved the establishment of a schedule of cash security deposits to be charged to residents and businesses for self-haul of solid waste in the City of Modesto. The security deposit is placed in trust with the Finance Department and held until the customer resumes garbage service, or no longer holds interest in the property for which the self-haul was requested. On December 6, 2022, by Resolution 2022-471, Council approved a new self-haul rate structure that included fees to support the City’s state-mandated programs and updated rates.

On June 27, 2006, by Resolution 2006-410, Council approved routine quarterly adjustments as needed of the maximum rates attributed to the cost of fuel. This was due to the fluctuations in the cost of diesel fuel, which is a significant cost factor for the haulers. The methodology approved by the Council uses the average diesel fuel prices from the Department of Energy/Energy Information Agency (DOE/EIA)1 for a prior quarter to set the fuel component for a subsequent quarter. The rate gets adjusted accordingly whether fuel goes up or down.

On June 27, 2023, by Resolution No. 2023-314, Council approved an agreement with HF&H Consultants LLC. to conduct an audit and performance review of the Haulers, to analyze the current rate setting methodology and test it for validity, as well as develop a new rate setting methodology. HF&H has completed the first phase of their review and provided a report of their findings. They will begin developing a new rate methodology in phase two. In the meantime, City staff have determined the lowest cost hauler based on the haulers’ financials from Fiscal Year (FY) 22/23 and recommend adjusting fees consistent with HF&H’s recommendations in phase one.

DISCUSSION:

Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services: The following adjustments are being proposed for residential, commercial, and industrial solid waste collection based on analysis of FY 22/23 financial reports from the haulers.

1. Base Rate
The base rate is compiled through analysis of the cost of service from the last complete FY, in this case FY 22/23. City staff review applicable expenses from each hauler, then determine the lowest cost hauler for residential, commercial, and industrial services. The lowest cost hauler’s cost per customer determines the base rate. Additional fees for services not included in the financials from FY 22/23, for special programs, or for additional City services are layered on the base rate.

2. Green Waste Fee
The Green Waste Fee provides funding to the City’s Green Waste Division for street or alley collection of large green waste. To keep enterprise revenues in line with the increases in expenses, staff reviewed the Bureau of Labor Statistics Consumer Price 1 http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_sca_m.htm #21..
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City Council, August 13, 2024
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC.

Index - West Region (CPI) adjustment ending in February 2024 and applied a CPI adjustment of 3.2%. This coincides with the City’s Compost Facility rate increase of 3.2% in May 2024, where the waste collected by the Green Waste Division is processed.

3. Organic Waste Pre-Processing
The organic waste pre-processing was added as a haulers’ fee to account for the additional costs required to clean incoming organic material before delivering to Compost.

SB 1383 requires less than 1% contamination, thus the haulers needed to devote additional resources not included in their previous years’ financial statements to the task.

Beginning July 1, 2022, the haulers received this fee and began pre-processing organic waste; thus, the base rate includes the cost of this service since it is based on FY 22/23.

Analysis from HF&H recommended the removal of this fee when the base rate is updated to avoid double-charging.

4. SB 1383 Collection Fee
The SB 1383 Collection Fee was added January 1, 2023, to account for the additional cost to the haulers of providing curbside recycling collection. The hauler financials from FY 22/23 include six months of this service (from January to June 2023) so roughly half of the cost of this service has been incorporated into the base rate. As a result, this rate can be reduced from half from $5.40 to $2.70 per residential customer per month.

5. Fuel Rate Adjustment (requires a separate resolution) Fuel rates are developed by first calculating a fuel factor, which determines how much fuel is used per customer on average based on the hauler financials for FY 22/23. This factor is used for all fuel adjustments during FY 24/25. For residential customers, a fuel factor is

0.24 gallons of diesel fuel per resident per month was used; for commercial customers, a fuel factor of 0.066 gallons of diesel fuel per cubic yard was used. Then the average diesel fuel rate between January and March 2024 is used to determine if there is a difference in the cost of fuel in FY 22/23 and the current cost of fuel. The fuel adjustment results in a reduction of $0.11 for the residential accounts and a reduction of $0.13 for the commercial accounts.

6. Self-Haul Rate Adjustment (requires a separate resolution) Staff has reviewed the security deposit schedule and recommends updating it to bring the deposit in-line with the current maximum rate structure approved annually by Council. The schedule sets the deposit for residential self-haul to be 60 months multiplied by the current maximum monthly rate at the time of approval and set the deposit for commercial selfhaul to be (Maximum Rate 1 Cubic Yard) x (Number of Cubic Yards in Bin(s)) x (Number of Pick-Ups Per Week) 12 x 9.9%. The schedule also establishes an annual Assembly Bill 939 fee of 9.9% for both residential and commercial self-haulers.

Final Report and Recommendation of HF&H Consultants, LLC.: HF&H met with City staff and Haulers to gather the necessary information to conduct an audit and performance review of the Haulers, to analyze the current rate setting methodology and test it for validity, and to develop a new rate setting methodology. This project consists of two phases. Phase one is the HF&H audit summary and results, and phase two will include creating a new rate setting methodology. #21..
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City Council, August 13, 2024
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC.

Phase One:

HF&H conducted the following activities under guidance from City staff:
 Reviewed each Hauler’s audited financial information for the most recently completed fiscal year, the annual rate adjustment application, and the standard rate adjustment methodology to understand the mechanisms with which the annual rates are calculated.  Evaluated each Hauler’s allocation of costs to the City by reviewing the types of allocation factors applied to the Hauler’s financial statements and assessed whether the allocation factor was reasonable or standard for the industry.
 Benchmarked the residential, commercial, and residential bulky program costs against nearby jurisdictions or jurisdictions that have similar geographic structure and services.

They further inquired with each Hauler regarding costs that were higher than the benchmarked range.
 Examined the current disposal, transfer, and organics pre-processing arrangements for each Hauler, including compensation for these services and their connection with the City’s composting facility.
 Recalculated the Haulers’ tonnage reports to the City and analyzed detailed general ledgers for certain expenses in the general and administrative categories.

After concluding this review and analysis, HF&H made the following recommendations:

1. Third Party Review of Gilton Allocation: Because Gilton’s software for allocation of costs to the City is integrated with their accounting software, HF&H recommends that the software be reviewed periodically by a third party for accuracy and reasonableness. The cost for this review may be at the City’s or the Haulers’ expense.

2. City’s Compost Facility Per-Ton Rate: HF&H recommends the City consider creating a separate rate for contaminated organic material and the City and Haulers meet and confer to develop a load inspection program which will identify contaminated loads and a surcharge for loads determined to be contaminated.

3. Negotiate an Amendment to the Current Franchise Agreements: HF&H recommends negotiating an amendment to the current franchise agreement that addresses operational and informational concerns. HF&H also recommends the Haulers resubmit official cost and operations forms for the amendment to set a baseline to which future operations can be compared for reasonableness.

Modify Annual Rate Adjustment Methodology: The current annual rate adjustment process of using the ‘lowest cost Hauler’ does not provide sufficient guardrails to protect the City’s rate payers. HF&H recommends modifying the current annual rate adjustment process through the amendment to adjust expenses based on local collective bargaining agreements or regional and classification specific Consumers Price Index (CPI). HF&H recommends that the new rate adjustment methodology calculate the compensation for disposal and organics pre-processing and delivery based on a build-up of tons multiplied #21..
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City Council, August 13, 2024
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC.

by the rate at the destination facility. HF&H recommends tying the annual increase in the organics pre-processing rate to an index or other annual metrics.

Acceptable Disposal Location Designations: HF&H recommends designating the disposal facilities in the franchise agreements to ensure material flow is managed and predictable.

4. Transfer / Organics Pre-Processing Rate Benchmarking: HF&H recommends the City review the transfer/pre-processing rate to ensure it is within the range of acceptable market rates.

5. Future Fee Component Removals: When performing the upcoming annual rate adjustment process, the following fees should be removed to not double-compensate the Haulers: Weekly Organics Collection, SB 1383 Collection Fee, Organics Waste PreProcessing.

6. Monthly Tonnage Reports: HF&H recommends the City either update and provide the Haulers with a revised reporting template or have the Haulers revise the current template for consideration by the City.

7. Detailed General Ledger Review: HF&H recommends placing a cap on annual increases to the general and administrative expenses through the annual rate adjustment methodology.

City staff have reviewed the recommendations provided by HF&H and agree that the actions they recommend will increase transparency and accuracy of the solid waste rate setting process.

Phase Two:

Phase two will be conducted after Council’s approval of the findings and recommendations presented by HF&H and will complete the remaining tasks under Resolution No. 2023-314, including analyzing the current rate setting methodology and developing a new rate setting methodology.
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City Council, August 13, 2024
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC.

FISCAL IMPACT:

The fiscal impact related to the necessary proposed adjustments for residential, commercial, and industrial solid waste collection services are as follows:

Residential Maximum Rate Recommendation
The City has a 3-container collection system: a 96-gallon container for garbage collected weekly, 96-gallon container for organics collected weekly, and a 96-gallon container for recycling collected bi-weekly.

Residential
Rate
Effective
8/1/23
Recommended
Rate Effective
9/1/2024
Difference
Base Rate $ 35.72 $ 39.04 $ 3.32
Carpenter Road Landfill ¹ $ 0.70 $ 0.70 $ -
City SB 1383 Implementation ¹ $ 1.05 $ 1.05 $ -
Compost Facility Improvements ¹ $ 1.70 $ 1.70 $ -
Geer Road Landfill ¹ $ 0.81 $ 0.81 $ -
Green Waste ¹ $ 5.27 $ 5.44 $ 0.17
Organic Waste Pre-Processing $ 1.72 $ - $ (1.72)
Recycling Fees ¹ $ 0.46 $ 0.46 $ -
SB 1383 Collection Fee $ 5.40 $ 2.70 $ (2.70)
Weekly Organics Collection $ 3.14 $ 3.14 $ -
Fuel Adjustment- Jan-Mar 2024 $ 0.04 $ (0.11) N/A
Total $ 56.01 $ 54.93 $ (1.08)
¹ - City Fees
City staff analyzed hauler financials from FY 22/23 and determined the base rate per household per month would increase by $3.32. The Green Waste Fee will increase by $0.17 reflecting a

3.2% CPI increase. The Organic Waste Pre-Processing Fee will be removed, lowering the total rate by $1.72. The SB 1383 Collection Fee will be reduced by half, lowering the rate by $2.70.

Based on the average diesel fuel prices for January through March 2024 a fuel rate adjustment of ($0.11) will be applied to residential accounts.
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City Council, August 13, 2024
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC.

Commercial Maximum Rate Recommendation
The City allows garbage and organics containers from two yards to six yards collected once to six times per week. Recycling is provided as a 96-gallon container. The City sets a maximum monthly rate for a single yard collected once per week.

Commercial
Rate
Effective
8/1/23
Recommended
Rate Effective
9/1/2024
Difference
Base Rate $ 43.57 $ 53.16 $ 9.59
Carpenter Road Landfill ¹ $ 0.95 $ 0.95 $ -
City SB 1383 Implementation ¹ $ 1.90 $ 1.90 $ -
Compost Facility Improvements ¹ $ 3.08 $ 3.08 $ -
Geer Road Landfill ¹ $ 0.95 $ 0.95 $ -
Green Waste ¹ $ 10.70 $ 11.04 $ 0.34
Litter Abatement ¹ $ 0.59 $ 0.59 $ -
Organic Waste Pre-Processing $ 3.11 $ - $ (3.11)
Recycling Fees ¹ $ 0.63 $ 0.63 $ -
Fuel Adjustment- Jan-Mar 2024 $ 0.08 $ (0.13) N/A
Total $ 65.56 $ 72.17 $ 6.61
¹ - City Fees
City staff analyzed hauler financials from FY 22/23 and determined the base rate per yard per collection would increase by $9.59 The Green Waste Fee will increase by $0.34 reflecting a 3.2% CPI increase. The Organic Waste Pre-Processing Fee will be removed, lowering the total rate by $3.11. Based on the average diesel fuel prices for January through March 2024 a fuel rate adjustment of ($0.13) will be applied to commercial accounts.

Commercial front loader compactors typically contain three times the amount of solid waste as a standard commercial bin. The maximum rates are therefore based on a multiple of three times the rate of the commercial bin maximum rate.
#21..
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City Council, August 13, 2024
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC.

Industrial Drop Box/Roll-Off Compactors Maximum Rate Recommendation The maximum rates for industrial drop boxes and roll-off compactors are set for the pick-up charge and daily rental rate only. The actual disposal charge is negotiated directly between the solid waste company and the customer. These services are open to competition between the two authorized collection companies in the City.

Industrial
Rate
Effective
8/1/23
Recommended
Rate Effective
9/1/2024
Difference
Base Rate $ 396.81 $ 421.10 $ 24.29
Carpenter Road Landfill ¹ $ 29.77 $ 29.77 $ -
Geer Road Landfill ¹ $ 29.77 $ 29.77 $ -
Green Waste ¹ ² $ 17.97 $ 18.55 $ 0.58
Recycling Fees ¹ $ 19.71 $ 19.71 $ -
Fuel Adjustment- Jan-Mar 2024 ³ $ - $ - N/A
Total $ 494.03 $ 518.90 $ 24.87
¹ - City Fees; ² - Industrial accounts charged by ton; ³ - Industrial accounts are charged fuel in the delivery and pickup fee
City staff analyzed hauler financials from FY 22/23 and determined the base rate would increase by $24.29. The Green Waste Fee will increase by $0.58 reflecting a 3.2% CPI increase.

Self-Haul Rate Adjustment Recommendation
Self-haul rates are being adjusted to reflect the above recommended rates for residential (cart) service and commercial (bin) service. A deposit is placed in trust with the City Finance Department and held until the customer resumes solid waste services or no longer holds interest in the property for which self-haul was established. The Annual Assembly Bill 939 Fee is distributed between Streets and General Fund.

COMMITTEE RECOMMENDATION:

The Annual Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services, the Fuel Rate Adjustment, and the Schedule of Cash Security Deposits and Fees for Self Haul were presented to Finance Committee on June 24, 2024, and were recommended to forward to Council for approval.

The HF&H Report was presented to Finance Committee on March 18, 2024, and recommended to forward to Council for approval.
#21..
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City Council, August 13, 2024
Annual Adjustment to Maximum Rate Schedule for Solid Waste Collection Services and Final Report and Recommendation of HF&H Consultants, LLC.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Annual Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the Solid Waste Haulers, for a decrease of $1.08 per month for residential services, an increase of $6.61 per cubic yard for commercial services, and an increase of $24.87 per pull for industrial services, to become effective September 1, 2024 and rescinding Resolution No. 2023-312 for the August 1, 2023 annual rate adjustment.

Resolution approving a Fuel Rate Adjustment to the Maximum Rate Schedule for City Solid Waste Collection Services provided by the haulers, for a reduction of $0.11 per month for residential services, and a reduction of $0.13 per cubic yard for commercial services, to become effective September 1, 2024.

Resolution approving the update to the Schedule of Cash Security Deposits and Fees for SelfHaul Residents and Businesses in accordance with Assembly Bill 939, and rescinding Resolution No. 2022-471.

Resolution approving the final report and recommendations of HF&H Consultants, LLC., Walnut Creek, CA regarding City of Modesto 2023 Solid Waste Financial Review and Rate Analysis, which provide staff next steps for rate methodology development and haulers’ franchise agreement review.

Approved by:

Bill Sandhu, Public Works Director
Joseph P. Lopez, City Manager
Attachments:

1. Resolutions

2. HF&H Final Report
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MODESTO CITY COUNCIL
RESOLUTION NO. 2024 -

RESOLUTION APPROVING THE ANNUAL RATE ADJUSTMENT TO THE

MAXIMUM RATE SCHEDULE FOR CITY SOLID WASTE COLLECTION SERVICES PROVIDED BY THE SOLID WASTE HAULERS, FOR A DECREASE OF $1.08 PER MONTH FOR RESIDENTIAL SERVICES, AN INCREASE OF $6.61 PER CUBIC YARD FOR COMMERCIAL SERVICES, AND AN INCREASE OF $24.87 PER PULL FOR INDUSTRIAL SERVICES, TO BECOME EFFECTIVE SEPTEMBER 1, 2024, AND RESCINDING RESOLUTION NO. 2023-312 FOR THE AUGUST 1, 2023 ANNUAL RATE

ADJUSTMENT
WHEREAS, Section 2 (f) of the City’s Service Agreements with its solid waste collectors requires that rates will be reviewed annually by the City and, if deemed necessary by the City Council, adjustments shall be made to become effective on or near July 1 of each year; and
WHEREAS, the haulers submitted their audited financials for FY 22/23 and City staff use an existing computer modeling formula to determine the lowest cost hauler’s base rate and recommend the maximum rate that the haulers can charge for solid waste collection services; and
WHEREAS, the Green Waste Fee was increased by 3.2% in accordance with the Bureau of Labor Statistics Consumer Price Index - West Region (CPI) adjustment ending in February 2024; and
WHEREAS, the agreements between City of Modesto and Gilton Solid Waste and Bertolotti Disposal Services requires the haulers to pay a franchise fee to the City at the rate of

9.9% and 10.3%, respectively; and
WHEREAS, the current maximum rate for residential service is $56.01, and a $1.08 decrease is recommended for a new maximum residential rate of $54.93 to be effective September 1, 2024; and
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WHEREAS, the current maximum rate for commercial service is $65.56 for one-cubic yard picked up once weekly per month, and a $6.61 increase is recommended for a new maximum commercial rate of $72.17 to be effective September 1, 2024; and WHEREAS, commercial front loader compactors typically contain three times the amount of solid waste as a standard commercial bin and maximum rates are therefore based on a multiple of three times the rate of the commercial bin maximum rate; and WHEREAS, the actual disposal charge for drop boxes is negotiated directly between the garbage collection company and the customer; and
WHEREAS, the current maximum rate for drop boxes and roll-off compactor service is $476.06 for one-cubic yard picked up, and a $24.29 increase is recommended for a new maximum commercial rate of $500.35 to be effective September 1, 2024; and WHEREAS, the current AB 939 Green Waste Diversion fee is $17.97 and is increased by 3.2% CPI. The new fee is $18.55 to be effective September 1, 2024; and WHEREAS, it was found and determined by the Council of the City of Modesto that the existing schedules of rates and charges for solid waste service in the City of Modesto should be revised as recommended above and attached hereto as Attachment A.

NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Modesto that it hereby approves the Maximum Charges for Solid Waste Services provided by the Solid Waste haulers, as attached hereto as Attachment A, dated September 1, 2024, and incorporated herein by reference. Said Maximum Charges for Solid Waste Service shall include all other services as stipulated in the Service Agreements and shall become effective September 1, 2024 and shall remain in effect until revised or rescinded by Council.

BE IT FURTHER RESOLVED, that Resolution No. 2023-312 for the August 1, 2023 annual rate adjustment is hereby rescinded effective September 1, 2024. #21..
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August, 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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ATTACHMENT A
MAXIMUM CHARGES FOR SOLID WASTE SERVICE – SEPTEMBER 1, 2024 RESIDENTIAL CONTAINERS - Maximum Monthly Rate
Standard container service includes the following:
 1 container each for garbage and organics picked up weekly, 1 container for recycling picked up bi-weekly
 2 bulky item collections per year by appointment
 City tree maintenance; collection & composting of green waste and forestry materials  Removal of illegally dumped items in streets and alleys  Drop off program for household hazardous waste
Base Rate $ 39.04
Fuel Adjustment - $ 0.11
Weekly Organics Collection $ 3.14
Green Waste $ 5.44
Geer Road Landfill $ 0.81
Compost Facility Improvements $ 1.70
SB 1383 Collection Fee $ 2.70
City Implementation $ 1.05
Recycling Fees $ 0.46
Carpenter Road Landfill $ 0.70
Maximum Monthly Rate $ 54.93
Additional Garbage Container - $15.23 each per month picked up weekly Additional Organics Container Weekly - $15.23 each per month picked up weekly Additional Organics Container Bi-Weekly - $9.50 each per month picked up bi-weekly Additional Recycling Container - $9.50 each per month picked up bi-weekly *Containers must be placed in a location set forth in Section 5-5.121 of the MMC. #21..
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COMMERCIAL AND MULTIFAMILY CONTAINERS - Maximum Monthly Rate Weekly rental for Containers shall not exceed the rate for 1 pick-up per week for each size container.

Bin Maximum Rates
Number of Collections Per Week
Container Size 1 2 3 4 5 6
1 CY $72.17 $144.34 $216.51 $288.68 $360.85 $433.02
2 CY $144.34 $288.68 $433.02 $577.36 $721.70 $866.04
3 CY $216.51 $433.02 $649.53 $866.04 $1,082.55 $1,299.06 4 CY $288.68 $577.36 $866.04 $1,154.72 $1,443.40 $1,732.08 5 CY $360.85 $721.70 $1,082.55 $1,443.40 $1,804.25 $2,165.10 6 CY $433.02 $866.04 $1,299.06 $1,732.08 $2,165.10 $2,598.12 96 Gallon Cart Maximum Rates
Material Type Number of Collection Per Week
1 2 3 4 5
Recycling/Organics $25.00 $50.00 $75.00 $100.00 $125.00 Base Rate $ 53.16
*Fuel Rate Adjustment - $ 0.13
Green Waste $ 11.04
Geer Road Landfill $ 0.95
Compost Facility Improvements $ 3.08
Litter Abatement $ 0.59
City Implementation $ 1.90
Recycling Fees $ 0.63
Carpenter Road Landfill $ 0.95
Maximum Rate 1 Cubic Yard $ 72.17
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*Residential and Commercial Fuel Component Adjustments - The fuel component is set annually as part of the base cost. It is reviewed quarterly and adjustments shall be made as needed. The adjustment shall be based on the average price of fuel from January 1, 2024 to March 31, 2024. Average prices shall be determined based on published prices for California from the Department of Energy, Energy Information Agency and a fuel factor based on the haulers’ audited financials at annual rate review each year.

DROP BOX CONTAINERS – Maximum Rate Per Pick-Up
Actual disposal charges are paid and negotiated directly between the customer and the solid waste company. The solid waste company will provide up to 40CY Drop Box containers for stated charges subject only to load limit of transfer vehicle.

An AB 939 Green Waste Diversion Fee of $18.55 per ton is added to the disposal charges.

Base Rate $ 421.10
Geer Road Landfill $ 29.77
Carpenter Road Landfill $ 29.77
Recycling Fees $ 19.71
Maximum Rate Per Pick Up $500.35
Rental Fees
$0.85 per day up to 7-day maximum rental
$3.00 per day for boxes kept 7 or more days without servicing $10.00 per day for boxes kept 21 or more days without servicing #21..
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COMPACTORS – Maximum Monthly Rate
Compactor Rates
Container NUMBER OF COLLECTIONS PER WEEK
Size 1 2 3 4 5 6
3 CY $649.53 $1,299.06 $1,948.59 $2,598.12 $3,247.65 $3,897.18 4 CY $866.04 $1,732.08 $2,598.12 $3,464.16 $4,330.20 $5,196.24 6 CY $1,299.06 $2,598.12 $3,897.18 $5,196.24 $6,495.30 $7,794.36 Other Compactor Fees
 Hospital Waste Compactors $265.00 per pick-up
 Washing Compactor $30.00
 Disposal Charge Actual charge to be paid by customer
 AB939 Green Waste Diversion Fee $18.55 per ton

EXTRA PICKUPS
Standard containers or equivalent $3.50 plus $2.30/container Detachable containers $12.00 plus $4.15/cubic yard

SPECIAL SERVICE CONDITIONS
In situations where none of the above maximum rates reasonably apply, the cost of service is to be negotiated between the solid waste company and the customer.

COMMERCIAL CONTAINER ONLY–Replacement and Cleaning Services 1 CY 1½ CY 2 CY 3 CY 4 CY 5 CY 6 CY
$10.12 $11.00 $12.10 $15.40 $20.24 $25.08 $29.92
NOTATION: Pursuant to Section 11-6.15(b)(2) of the Modesto Municipal Code, the solid waste company may require a deposit equivalent to two months service charge from customers prior to beginning service. The deposit will be credited back to the customer after 18 months under specified conditions.
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MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING A FUEL RATE ADJUSTMENT TO THE

MAXIMUM RATE SCHEDULE FOR CITY SOLID WASTE COLLECTION
SERVICES PROVIDED BY THE HAULERS, FOR A REDUCTION OF $0.11 PER MONTH FOR RESIDENTIAL SERVICES, AND A REDUCTION OF $0.13

PER CUBIC YARD FOR COMMERCIAL SERVICES, TO BECOME
EFFECTIVE SEPTEMBER 1, 2024
WHEREAS, with the adoption of Ordinance No. 3068-C.S. in November of 1997, the City no longer sets rates for the collection of solid waste in Modesto, and instead performs a comprehensive review of cost information submitted by the contract garbage haulers; and
WHEREAS, the City sets the maximum rate that the haulers may charge for the various types of services provided under the contracts based on cost data provided by the lowest cost hauler; and
WHEREAS, Section 2 (f) of the City’s Service Agreements with its solid waste collectors requires that when the City adjusts the collection services provided under the Agreements, any additional costs should be covered by adjustments to the maximum rates; and
WHEREAS, the City analyzes the fuel rates using the methodology approved by the Council which uses the average diesel fuel prices from the Department of Energy/Energy Information Agency for a prior quarter to set the fuel component for a subsequent quarter. The rate is adjusted up or down accordingly; and WHEREAS, on June 27, 2006, by Resolution No. 2006-410, Council approved making routine quarterly adjustments as needed to the component of the maximum rates attributable to the cost of fuel; and
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WHEREAS, the fuel rates analyzed for this rate adjustment were based on the Department of Energy average diesel fuel prices from January 2024 through March 2024; and
WHEREAS, this action is to adjust maximum rates for fuel and therefore does not require environmental review; and
WHEREAS, it was found and determined by the Council of the City of Modesto that the quarterly adjustment to the fuel component of the maximum rates should be made.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the fuel rate adjustment to the Maximum Rate Schedule for Solid Waste Services, Attachment A, incorporated herein, dated September 1, 2024, for a reduction of $0.11 per month for residential services and a reduction of $0.13 per cubic yard per month for commercial services and shall become effective September 1, 2024.
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August 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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MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE UPDATE TO THE SCHEDULE OF CASH

SECURITY DEPOSITS AND FEES FOR SELF-HAUL RESIDENTS AND BUSINESSES IN ACCORDANCE WITH ASSEMBLY BILL 939, AND RESCINDING RESOLUTION NO. 2022-471
WHEREAS, on February 24, 1998, by Resolution 1998-113 Council approved the establishing of a schedule of cash security deposits to be charged to residents and businesses for self-haul of solid waste in the City of Modesto; and
WHEREAS, pursuant to Section 5-5.130 of the Modesto Municipal Code cash security deposit and fees associated with AB939 for the removal of solid waste can be deposited with the City in an amount set from time to time by resolution of the City Council; and WHEREAS, the updated schedule would set the deposit for residential self-haul to be 60 months multiplied by the current maximum monthly rate at the time of approval and set the deposit for commercial self-haul to be based deposit times total number of cubic yards in bin(s) times the number of collections per week; and
WHEREAS, the updated schedule will also establish an annual Assembly Bill 939 fee of

9.9% to both residential and commercial self-haulers. Funds will be distributed to both the General and Street Funds and will require a renewal of the self-haul program every three years.

NOW THEREFORE BE IT RESOLVED, the City Council of the City of Modesto hereby approves the update of a schedule of cash security deposits to be charge to residents and businesses for self-haul of solid waste in the City of Modesto, a copy of said schedule is attached hereto as Exhibit “A” incorporated herein by this reference.

BE IT FURTHER RESOLVED, that Resolution 2022-471 is hereby rescinded. #21..
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August 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”

CASH SECURITY DEPOSITS FOR

SELF-HAUL RESIDENTS AND BUSINESSES

CITY OF MODESTO
Pursuant to the Modesto Municipal Code, Section 5-5.130, any person, other than a collector who has an agreement with the City, who wishes to remove and dispose of waste created or produced on premises they occupy or control must first provide a cash security deposit to the City. Such deposits shall be based on the following criteria:

Applications must be renewed every three (3) years
A security deposit shall be made for each separate residential dwelling, multifamily, or business location owned or controlled by a noncustomer.

For any residential, multifamily, or commercial property that is currently served by an authorized collector the City shall contact the collector and determine the existing service level being provided. Based on the service level, the City shall require a cash security deposit based on the formula noted and defined below.

For any residential, multifamily, or commercial property that is not currently serviced by an authorize collector, the City shall consult with the authorized collector assigned to the service address and determine an appropriate service level. The City shall require a cash security deposit based on the formula noted and defined below.

DEPOSIT
RESIDENTIAL OR COMMERCIAL – CART SERVICE
a) For any residential, multifamily, or commercial property that is, or would be served by carts, the cash security deposit shall be equal to:
60 months x 51.25 (maximum monthly rate)

RESIDENTIAL OR COMMERCIAL- BIN SERVICE
b) For any multifamily, or commercial property that is, or would be served by bins, the cash security deposit shall be equal to:

Base deposit x Multiplier= Cash Security Deposit
a) Base Deposit: $5000
b) Multiplier: Total number of cubic yards in bin(s) times the number of collections per week
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ANNUAL AB 939 FEE
RESIDENTIAL OR COMMERCIAL – CART SERVICE
Those residential, multifamily, or commercial properties participating in the Self-Haul program will be required to pay to the City of Modesto an annual AB939 Fee of 9.9% of the annual garbage rate.
a) The formula for any residential, multifamily, or commercial property that is, or would be served by carts, the annual AB939 fee will be equal to:
$51.25 (Maximum Monthly Rate) x 12 months x 9.9%

RESIDENTIAL OR COMMERCIAL- BIN SERVICE
b) The formula for any multifamily, or commercial property that is, or would be served by bin, the annual AB939 fee will be equal to:
$64.04 (Maximum Rate 1 cubic yard) x (Number of cubic yards in bin(s)) x (number of pick-ups per week) x (12 months) x 9.9%
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MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE FINAL REPORT AND RECOMMENDATIONS OF HF&H CONSULTANTS, LLC., WALNUT CREEK, CA REGARDING CITY OF MODESTO 2023 SOLID WASTE FINANCIAL REVIEW AND RATE ANALYSIS,

WHICH PROVIDE STAFF NEXT STEPS FOR RATE METHODOLOGY
DEVELOPMENT AND HAULERS’ FRANCHISE AGREEMENT REVIEW
WHEREAS, Modesto has contracts with two private sector companies (Haulers) for the exclusive right to collect residential, commercial, and industrial garbage, organics, and recycling in the City; and
WHEREAS, the City sets the maximum rate that can be charged by the Haulers for each waste collection service and proposes rate adjustments to be made effective on or near July 1 of each year if deemed necessary by the City Council; and WHEREAS, the City bases its rate analysis on audited financial records provided by both Haulers but recognizes that independent financial review and analysis of rate methodology should be completed to ensure accuracy and transparency for ratepayers; and WHEREAS on June 27, 2023, by Resolution No. 2023-314, Council approved an agreement with HF&H Consultants LLC., to conduct an audit and performance review of the Haulers, to analyze the current rate setting methodology and test it for validity, and to develop a new rate setting methodology; and WHEREAS, HF&H met with City staff and Haulers to gather the necessary information to conduct an audit and performance review of the Haulers, to analyze the current rate setting methodology and test it for validity, and to develop a new rate setting methodology. Where applicable, they requested more information from the City or Haulers, conducted selected deep analysis of data, and evaluated the methodology for #21..
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gathering or analyzing data. This project consists of two phases. Phase one is the HF&H Audit summary and results, and phase two will include creating a new rate setting methodology.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the final report and recommendations of HF&H Consultants, LLC., Walnut Creek, CA regarding City of Modesto 2023 Solid Waste Financial Review and Rate Analysis, which provide staff next steps for rate methodology development and Haulers’ franchise agreement review.
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of August 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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Managing Tomorrow’s Resources Today
590 Ygnacio Valley Road, Suite 105 John W. Farnkopf, PE Walnut Creek, California 94596 Laith B. Ezzet, CMC
Telephone: 925/977-6950 Richard J. Simonson
www.hfh-consultants.com Marva M. Sheehan, CPA
Robert C. Hilton
April 17, 2024
Rosene Nguyen
Integrated Waste Program Manager
Public Works
1010 10th Street
Modesto, CA 95354
Subject: City of Modesto 2023 Solid Waste Financial Review and Rate Analysis Dear Rosene Nguyen:

The City of Modesto (City) requested HF&H Consultants, LLC (HF&H) review the annual rate adjustment methodology and related operational and financial documentation for its two franchised solid waste haulers to provide recommendations to modify the rate adjustment methodology. This report provides a summary of our findings and recommendations and is structured into the following sections:

1. Executive Summary

2. HF&H Review and Analysis

3. HF&H Findings

4. HF&H Recommendations

5. Conclusion

EXECUTIVE SUMMARY
The City of Modesto’s residents and businesses have solid waste collection service from either Bertolotti Modesto Disposal Inc. (Bertolotti) and Gilton Solid Waste Management Inc. (Gilton) (collectively the “Haulers”). The City requested HF&H to conduct an analysis of the Haulers’ collection operations, costs, and the current rate setting methodology in order to provide recommendations to modify the rate adjustment methodology. The City was concerned about both the accuracy of and allocation of the Hauler’s costs to service the City’s residents and businesses.

Due to the narrow reporting requirements for the Haulers under the current franchise agreements, there was limited information available to be reviewed. Some information required multiple requests and conversations with the Haulers to clarify the information aligned with the request. Therefore, HF&H determined a scope of work that best met the City’s needs and the information available. ▪ HF&H reviewed each Hauler’s audited financial information for the most recently completed fiscal year and the annual rate adjustment application used to set current rates. We also reviewed the standard rate adjustment methodology to understand the mechanisms with which the annual rates are calculated.
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Managing Tomorrow’s Resources Today
Rosene Nguyen
April 17, 2024

▪ HF&H evaluated each Hauler’s allocation of costs to the City by reviewing the types of allocation factors applies to the Hauler’s financial statements. HF&H assessed whether the allocation factor was reasonable or standard for the industry.
▪ HF&H benchmarked the residential, commercial, and residential bulky program costs against nearby jurisdictions or jurisdictions that have similar geographic structure and services. We inquired with each Hauler regarding costs that were higher than the benchmarked range. ▪ HF&H examined the current disposal, transfer, and organics pre-processing arrangements for each Hauler, including compensation for these services and their connection with the City’s composting facility.
▪ HF&H recalculated the Haulers’ tonnage reports to the City during the period under review and analyzed detailed general ledgers for certain expenses in the general and administrative categories.

The following discussion summarizes HF&H’s findings and recommendations.

Findings
• Gilton’s general and administrative allocation attributed an additional ~$96,000 in indirect expenses to the City based on an incorrect inclusion of commercial commodity revenue that is not part of the franchise. Because the current rates were set based on an inflation increase and not on this financial information, there is no impact to the current rates. • Bertolotti’s total costs per route are higher than the reasonable range from the benchmarks and the driving factor may be additional labor expenses for overtime. Gilton’s labor costs are higher than the reasonable range due to inclusion of other personnel within the driver labor category instead of the overhead category. Gilton’s overall per route costs, including fuel, are still slightly higher than the reasonable range.
• The Haulers’ annual rate adjustment application included costs that would double-compensate them for organics pre-processing services (firstly in direct costs and secondly through the per month fee). Because the current rates were set based on an inflation increase, the current rates do not double-compensate the Haulers for organics pre-processing.

Recommendations
Based on the above analysis, HF&H has summarized our recommendations for next steps below:

1. Third Party Review of Gilton Allocation: Because Gilton’s software for allocation of costs to the City is integrated with their accounting software, HF&H recommends that the software be reviewed periodically by a third party for accuracy and reasonableness. The cost for this review may be at the City’s or the Haulers’ expense.
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Managing Tomorrow’s Resources Today
Rosene Nguyen
April 17, 2024

2. City’s Compost Facility Per-Ton Rate: HF&H recommends the City consider creating a separate rate for contaminated organic material. The City visually inspects incoming loads for contamination; if rejected, a load is charged to the Hauler, returned to their transfer station, cleaned, redelivered, and charged again. The additional cost and labor are intended to discourage contamination that should be removed during Hauler pre-processing. If a load is accepted based on visual inspection but is later determined to be too contaminated for processing, as City staff notes happens regularly, the City absorbs the cost of residuals and overs despite paying an additional pre-processing fee to haulers to ensure clean organic material. The City and Haulers should meet and confer to develop a surcharge that addresses this additional cost burden to ratepayers.

3. Amend and Restate the Current Franchise Agreements: HF&H recommends amending and restating the current franchise agreement to address operational, financial, and informational concerns. HF&H also recommends the Haulers resubmit official cost and operations forms to set a baseline to which future operations can be compared for reasonableness. The following two paragraphs provide specific recommendations regarding the amendment:

Modify Annual Rate Adjustment Methodology: The current annual rate adjustment process of using the ‘lowest cost Hauler’ does not provide sufficient guardrails to protect the City’s rate payers. HF&H recommends modifying the current annual rate adjustment process through the amendment to adjust expenses based on local collective bargaining agreements or regional and classification specific CPI indices. HF&H recommends that the new rate adjustment methodology calculate the compensation for disposal and organics pre-processing and delivery based on a build-up of tons multiplied by the rate at the destination facility. HF&H recommends tying the annual increase in the organics pre-processing rate to an index or other annual metrics.

Acceptable Disposal Location Designations: Because the current franchise agreement does not state which landfill the solid waste material should be delivered, HF&H recommends designating the disposal facilities in the franchise agreements to ensures material flow is managed and predictable.

4. Transfer / Organics Pre-Processing Rate Benchmarking: HF&H recommends the City review the transfer/pre-processing rate to ensure it is within the range of acceptable market rates.

5. Future Fee Component Removals: When performing the upcoming annual rate adjustment process, the following fees should be removed to not double-compensate the Haulers: Weekly Organics Collection, SB 1383 Collection Fee, Organics Waste Pre-Processing.

6. Monthly/Quarterly Tonnage Reports: HF&H recommends the City review the current reporting template for additional modifications, as needed during the amendment process, and discuss these modifications with the Haulers.

7. Detailed General Ledger Review: HF&H recommends placing a cap on annual increases to the general and administrative expenses through the annual rate adjustment methodology. #21..
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Managing Tomorrow’s Resources Today
Rosene Nguyen
April 17, 2024

HF&H REVIEW AND ANALYSIS
Annual Rate Adjustment Application and Rates
Standard Methodology: The Standard Methodology was developed for the City by a previous consultant with the goal of calculating the ‘lowest cost Hauler’. Each Hauler submits audited financial information from the most recently completed fiscal year that is intended to reflect the costs to service the City. The City inputs these costs into the annual rate adjustment spreadsheet which compares Bertolotti’s and Gilton’s ‘per customer cost’ by customer class and determines the ‘lowest cost Hauler’. The lowest ‘per customer cost’ is selected for the hauler component of the rate for both Bertolotti and Gilton (Hauler Component). City fees are layered on top of the Hauler Component for City costs (e.g., landfills maintenance, compost facility improvements, City solid waste cost center).

There may be one additional adjustment made to the Hauler Component to account for anticipated increases in fuel costs based on the price of diesel. There are no adjustments to account for anticipated changes in tonnage, routes, labor, or other costs as the methodology assumes those changes will be reflected in the financial information when the applicable year is utilized for the annual rate adjustment process.

Most Recently Completed Annual Rate Adjustment Methodology: Each Hauler submitted its audited financial information from the most recently completed fiscal year (7/1/2021-6/30/22). The City input these costs into the annual rate adjustment spreadsheet to determine the ‘lowest cost Hauler’. Instead of utilizing the standard methodology with the ‘lowest cost Hauler’, the City enacted an increase to the current Hauler Components similar to the increase in the consumer price index. The City also layered various fees on top of the Hauler Component for City costs (landfills maintenance, non-containerized green waste, compost facility improvements, SB 1383 implementation, and City solid waste cost center) and additional Hauler costs not captured in their financial information (weekly organics collection, collect and process recycling, SB 1383 collection, and organic waste pre-processing). There were two adjustments made to the Hauler Component to account for anticipated increases in expenses: an increase in disposal costs based on consumer price index and an increase in fuel costs based on the price of diesel. The City chose to deviate from the standard methodology this year to account for the additional compensation for services required under SB 1383 and allow time to evaluate the impact of this rate adjustment methodology.

The City is allowed to approve, deny, delay, or enact a different rate increase than what was calculated per the annual rate adjustment applications. During the most recent annual rate adjustment, the City enacted a rate increase that was similar to the increase in the consumer price index rather than the full increase as calculated per the rate adjustment application. The rate adjustment application calculated a Hauler Component of $37.54 for residential services and $46.32 for commercial services; the City approved a $35.72 residential Hauler Component and a $43.57 commercial Hauler Component. #21..
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Managing Tomorrow’s Resources Today
Rosene Nguyen
April 17, 2024

Hauler Allocation of Costs to Modesto
Bertolotti: Bertolotti reports its Modesto operations as a separate entity from its other corporations and franchises and provided the City with a separate set of audited financial statements. The separate set of financial statements for the City are used in the annual rate adjustment application. Bertolotti stated that all costs associated with serving the City are coded within their internal system directly to the City’s reporting entity. The only allocation that is used in preparation of the financials is related to the corporate service fee for administrative and support services to most parts of Stanislaus County and select areas of the City (further explained in the notes to the financial statements) which is allocated by containers.

Therefore, all direct service-related costs (labor, vehicle, fuel, disposal, etc.) are directly charged to and reflected in the financial statements utilized in the annual rate adjustment application. HF&H did not find any issues with Bertolotti’s allocation of the corporate service fee.

Gilton: Gilton services parts of Stanislaus County, Merced County, San Joaquin County, and various cities, including the City of Modesto. It accounts for its operations and costs as a single entity and provides a combined set of audited financial statements. The City of Modesto’s financial information is a supplemental schedule of costs allocated to the City based on various allocation factors. These allocation factors have been provided to the City and include allocation by percentage of loads, percentage of trucks to a jurisdiction/material, number of containers, customers, and revenue. The allocation calculation agrees to the information presented in Gilton’s Accounting and Supplementary Data, in which the auditor states, “We did not audit or review the financial statements or supplementary information included in the accompanying prescribed form nor we were required to perform any procedures to verify the accuracy or completeness of the information provided by management.” HF&H was unable to review the allocation calculations quantitatively as the spreadsheet calculations were hard-coded and a combination of multiple allocation methodologies. When HF&H requested a formuladriven version of the allocations file, Gilton asserted the spreadsheet provided is not a database export.

Allocation percentages are included in an allocation module in their accounting software which allocates costs held in suspense accounts until year end. This means that all files provided to HF&H include the results of the cost allocations, but the allocation percentages are calculated and applied in Gilton’s accounting software. This methodology is the same as Gilton’s Stanislaus County allocation methodology.

Therefore, if additional quantitative assurance is desired, more direct approaches may need to be considered (e.g., a site visit to Gilton to view the input of these percentages and calculations, a full review of their allocation software). However, HF&H reviewed the allocation methodology qualitatively for reasonableness of the type of allocation to the corresponding expense category and found the allocation types to be reasonable except for the revenue allocation. Revenue allocations for overhead costs are not the most appropriate allocation factor as the revenue from rates set by jurisdictions are not the best indicator of how much overhead costs are incurred.

During HF&H’s general ledger testing (refer to the Hauler Detailed General Ledger Review section below) Gilton provided copies of the general and administrative expenditures and recalculations of the general and administrative allocations. General and administrative expenditures were allocated based on revenue. HF&H reviewed the general and administrative allocation by tying revenue to the financial statements and noted that the commercial revenue was higher than presented in the financial #21..
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Managing Tomorrow’s Resources Today
Rosene Nguyen
April 17, 2024

statements. HF&H inquired with Gilton to clarify where the additional revenue can be found in the financial information. Gilton’s response was, “this revenue is from specialty commodity bins, that should not have been included in the allocation. Prior to the enactment of SB 1383, our understanding was that we were not required to include this in revenue as recycle bins were open to competition as recycle/reuse streams are outside of the franchise revenue.” The City informed HF&H that recycling service was not an approved service per the franchise agreement, and that Gilton should not be providing this service to customers. The City also informed HF&H that hauling of any waste, including recyclable materials prior to the implementation of the curbside recycling program, is exclusive to service agreements and is not open to competition within the City limits.

Gilton provided a spreadsheet calculating the impact of reducing the City’s general and administrative allocation from 13.82% to 12.35% and its impact on the indirect expenses allocated to the City (approximately $96,000). HF&H estimated that this reduction of indirect expenses could have reduced the commercial per yard rate by $0.73. Gilton noted that this correction would not have impacted the current rates as the City enacted a rate increase assuming an inflation adjustment and not based on the higher rate increase requested based on the financial information in the application. However, HF&H notes that a review of previous year’s allocations would be required to ascertain whether the overallocation of indirect expenses occurred in previous years as well.

Hauler Collection Benchmarking
HF&H requested operational statistics from Bertolotti and Gilton for the most recently completed fiscal year (July 1, 2021 – June 30, 2022). A copy of the operational statistics shall be provided to the City for recordkeeping. HF&H also received a copy of Bertolotti’s and Gilton’s financial statements for July 1, 2021 – June 30, 2022 and the corresponding annual rate adjustment application prepared by the City.

HF&H calculated key operational and cost ratios using the financial and operational information; this allowed HF&H to benchmark the Haulers’ efficiencies and costs for reasonableness. HF&H compiled nearby jurisdictions’ Haulers’ ratios from Stanislaus County or the City of Stockton, or jurisdictions that have similar geographic structure and services in the Central Valley, and compared the key ratios. HF&H focused on cost per route, labor costs, and fuel costs for the residential and commercial sectors. While benchmarks are not always an ‘apples to apples’ comparison due to nuances of each service area, benchmarking allows general comparison and discussion on key areas as a starting point for further conversations. Refer to the tables below for a high-level summary of the benchmarking results.

Table 1. Summary of Benchmark Results - Residential
Benchmark Ratio Bertolotti Gilton
Operating Cost per Route 5% - 10% Higher than Reasonable Reasonable Total Cost per Route 0% - 5% Higher than Reasonable 5% - 10% Higher than Reasonable Total Labor Cost per Route Hour 10% - 15% Higher than Reasonable Reasonable Total Fuel Costs per Route Reasonable 30% - 35% Higher than Reasonable #21..
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Table 2. Summary of Benchmark Results - Commercial
Benchmark Ratio Bertolotti Gilton
Operating Cost per Route Reasonable Reasonable
Total Cost per Route 0% - 5% Higher than Reasonable 0% - 5% Higher than Reasonable Total Labor Cost per Route Hour Reasonable Reasonable
Total Fuel Costs per Route Reasonable Reasonable
Residential route benchmarking indicated the need for further analysis. Refer to the sections below.

Commercial benchmarking indicated an overall reasonableness in costs and was not further analyzed.

Bertolotti Per Route Comparison: Because Bertolotti was higher than reasonable in three of the four residential benchmarking categories, HF&H performed a deeper analysis on Bertolotti’s residential operations. HF&H translated Bertolotti’s financial information by expense category (labor, vehicle, fuel, etc.) into a per route cost. Then HF&H compared Bertolotti Modesto’s per route costs to Bertolotti Stanislaus County’s per route costs as these two jurisdictions are directly serviced by the same hauler and have similar programs, geography, and cost of expenses. The results of this analysis further confirmed the higher than reasonable costs were related to the labor and benefits expense categories.

Bertolotti Residential Route: HF&H inquired with Bertolotti regarding their residential route statistics and financial information specifically related to labor and benefits.

Bertolotti asserted that the residential labor costs included driver supervisor, mechanics, delivery drivers, maintenance workers, and cart assistance wages and benefits. Bertolotti also asserted that the average driver is earning between $150,000 - $160,000 with benefits. Because the benchmarks aim to compare direct driver labor, Bertolotti’s labor costs should be adjusted to remove the estimated wages and benefits related to these positions. HF&H had insufficient information to remove all categories of wages and benefits listed above but was able to remove an estimated amount for supervisor and cart assistance personnel wages and benefits. Then HF&H recalculated the labor ratios and average wage with benefits per driver. The hourly wage before benefits is competitive to benchmarked collective bargaining agreement, however the hourly wage after inclusion of benefits is higher than benchmarked collective bargaining agreements. HF&H recommends additional discussion when negotiating the amendment to the Agreement to tie the labor increases directly to a labor index based on the geographic area as Bertolotti’s divers are not under a collective bargaining agreement. However, the adjusted labor ratio (drivers per route per homes serviced) was still high in comparison to the benchmark’s reasonable range.

Bertolotti asserted that the residential Modesto service area is very dense and is located near the transfer and disposal facilities; they have trucks that are old with low mileage due to this geographic benefit.

Bertolotti also asserted that a large portion of their service area included narrow alleys that require 6- point turns and limit speed due to dust control. Historically, HF&H has seen a reasonable range of residential customers serviced per route per day to be approximately 700-800 customers. However, Bertolotti’s residential routes are servicing on average 900 customers per route per day. This indicates to #21..
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HF&H that Bertolotti is likely needing driversto work some amount of overtime, even with the geographic benefit, to achieve this operating efficiency.

The above point indicated to HF&H that Bertolotti’s operating statistics may require revision surrounding the average hours per route per day. Bertolotti’s operating statistics indicate its drivers are working 10 hour route days, which include two hours of overtime. To achieve a reasonable number of homes serviced per route, HF&H calculated that each driver would work an average of 11 hours per day instead of the asserted 10. It is possible that not all homes set out their containers each week, but it would require a significant number of customers choosing to not participate weekly. Set out information was not provided by Bertolotti in its operating statistics to verify this hypothesis.

In summary, this analysis indicates to HF&H that Bertolotti may have increased full-time employee equivalents through longer route days than reported on its operating statistics and that the additional labor expense for overtime may be the driving factor that is escalating the operating and total costs per route higher than the reasonable range from the benchmarks.

Gilton Per Route Comparison: Because Gilton was higher than reasonable in two of the four residential categories, HF&H performed a deeper analysis on Gilton’s residential operations. HF&H translated Gilton’s financial information by expense category (labor, vehicle, fuel, etc.) into a per route cost. Then HF&H compared Gilton Modesto’s per route costs to Gilton Stanislaus County’s per route costs as these two jurisdictions are directly serviced by the same hauler and have similar programs, geography, and cost of expenses. The results of this analysis further confirmed the higher than reasonable costs were related to operating costs such as labor and fuel.

Gilton Residential Route: Because the operating cost per route hour is within the reasonable range, but the total cost per route is above the reasonable range, it indicates to HF&H that Gilton is beyond the benchmarked range due to pass-through costs such as disposal, processing, and transfer. Pass-through costs are constrained by designated facilities and distances to alternative facilities. Each benchmarked jurisdiction has a unique arrangement of pass-through costs due to local facilities and contract limitations, which means pass-through costs are the least ‘apples to apples’ to compare using benchmarks. Therefore, HF&H understands why Gilton may be above the reasonable benchmark range in this category given the unique specifications of the City’s disposal and processing arrangements.

Gilton’s benchmark for fuel prices is above the reasonable range. Over the past few years, fuel prices have significantly increased. Some of the benchmarks used in HF&H’s analysis are from cost proposals or index reviews before the price increase in fuel was captured, which indicates that the reasonable range of fuel costs per route is lower than the actual current range. However, the Stanislaus County benchmark for Gilton, which uses actual fuel costs, shows the average fuel cost per route at approximately 75% of the fuel cost per route as in Modesto. Additionally, the current Agreement does not designate disposal and processing facilities, which allows the Haulers the option to haul material to facilities that are out of the area and incur additional fuel expenses. Therefore, HF&H believes Gilton’s fuel costs in Modesto may still be higher than reasonable due to increased transportation and fuel prices, but less than the 30%-35% higher than reasonable benchmark.
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In summary, overall per route costs are higher than the benchmark due to disposal, processing, and transfer costs. However, the overall per route costs, including fuel, are still slightly higher than the reasonable range.

Figure 1: City of Modesto Hauler Service Area Map
Hauler Residential Bulky Program Benchmarking
HF&H requested additional operational statistics and financial information for the residential bulky collection program from Bertolotti and Gilton for the most recently completed fiscal year (July 1, 2021 – June 30, 2022). A copy of this information is included as Attachment A and B. HF&H calculated the monthly cost per resident for the residential bulky program by dividing the bulky program costs by the number of residents served: Gilton costs $1.11 per month per resident and Bertolotti costs $1.19 per month per resident. HF&H calculated nearby jurisdictions’ cost per resident for residential bulky programs to compare for reasonableness.

Bertolotti
Transfer Station
Gilton Resource
Recovery
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The benchmarks for monthly residential bulky program costs ranged from $0.79 - $5.32. The higher cost programs have a more complete collection program that includes more types of acceptable items (e.g., tires, e-waste, hazardous materials) and a larger volume of material collected per visit. The lower cost programs have more limitations on the acceptable items and restrict overall volume. The City’s per resident program cost falls within the reasonable range and is in line with expectations due to the restrictions on type of acceptable items. The City’s program does not allow for automobile parts (including tires), household hazardous waste, computer monitors, tv’s, dead animals, C&D, or household garbage.

However, the City’s program does not limit the volume of material collected per visit. Based on a discussion the City had with the Haulers, the cost’s provided for the bulky program include costs for illegal dumping clean-up. Therefore, the true cost of the bulky collection program is less than the per resident calculated above and is more in line with the lower range of the benchmark.

Hauler Transfer and Disposal Review
Based on discussion with the City, both Haulers are required to take all garbage first to the Covanta Wasteto-Energy facility. If the Waste-to-Energy facility is at daily capacity or is shut down for the day, they are to dispose of the material at a landfill. The current agreement does not state which landfill, but the City maintained that the Haulers should use the Fink Road Landfill and are having both Haulers include in the monthly report which landfill they are using. However, the City asserts that the Haulers have been delivering solid waste to Manteca’s, Merced’s, or Livermore’s landfills. The City further explained that they do not know how much each Hauler pays at these facilities. Because the annual rate adjustment process does not include language to limit the disposal component of the adjustment to the rate charged at the Waste-to-Energy facility or the Fink Road Landfill (refer to the Annual Rate Adjustment Application section) there is no protection for the City against increased costs associated with disposal at alternative locations.

HF&H requested a narrative from Bertolotti and Gilton describing their current disposal and transfer arrangements. HF&H intended to perform a build-up of the disposal component of the Haulers’ financial information and assess the reasonableness of this cost. Refer below for a summary from each Hauler.

Bertolotti: Bertolotti asserts that all loads of material (both solid waste and organics) are brought to the transfer station and then taken to their final disposal or processing location. Bertolotti asserted they are required to take all garbage to the Covanta Waste-to-Energy facility or the Fink Road Landfill, unless they are directed to take it to another landfill. The current transfer rate is $22.00 per ton, the Waste-to-Energy facility rate is $49.90 per ton, and the Fink Road Landfill rate is $29.00 per ton. Bertolotti did not provide HF&H with the transfer or disposal costs during the financial period used in the annual rate adjustment application. However, HF&H calculated an estimated cost per ton for disposal of solid waste tonnage based on Bertolotti’s operational statics and financial information and found that it is within a reasonable range of the cost per ton as provided by Gilton who has the same disposal arrangements and additional per ton detail.

Gilton: Gilton asserts that they bring all loads of material (both solid waste and organics) to the Gilton Resource Recovery Transfer Facility (GRR) where the material is weighed on a scale with documentation for route identification for future allocation of costs. GRR accumulates material and hauls it to the Covanta #21..
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Waste-to-Energy facility or the Fink Road Landfill, unless directed to take it to another landfill. Hospital waste is taken directly to the Waste-to-Energy facility. Material is brought first to the Waste-to-Energy facility to increase the City’s diversion, but will be brought to Fink Road Landfill if the Waste-to-Energy facility cannot accept it. The City notes that Gilton’s weekly report indicates that material is also brought to other landfills.

Gilton also provided a breakdown of the per ton cost for transfer and disposal of solid waste material.

Illegal dumping disposal costs was not included in this breakdown. HF&H recalculated the disposal and transfer costs based on the tonnage reported in the operating statistics and found they agree within an immaterial variance to the disposal and transfer costs as reported in Accounting and Supplementary Data used in the annual rate adjustment process. Refer to the table below for a summary of the per ton rates during the time period reviewed.

Table 3. Gilton Transfer and Disposal Per Ton Cost
7/1/21 - 9/30/21 10/2/21 - 6/30/22
Residential, Commercial, and Debris Box Disposal $43.00 $44.00 Bulky Item Disposal $48.00 $53.00
Transfer Station Fee (Any Material) $24.00 $27.00
Hauler Organics Pre-Processing Review
As mentioned previously in the Annual Rate Adjustment Application section above, the City layers on additional fees to the Hauler Component for various programs and services. One of these fees is for residential and commercial organics pre-processing before delivery to the City’s compost facility. The City informed HF&H that all organic material collected by the Haulers within the City limit should be delivered to the City’s compost facility.

Based on the City’s SB 1383 compliance consultant’s (R3) report, the organics’ pre-processing rate was established to pay the Haulers to pre-process organic waste for delivery to the City’s compost facility. The contamination threshold at the City’s compost facility is 1%. The pre-processing rate was based on estimates from the Haulers to begin pre-processing organic material, assuming no pre-processing was currently occurring, to reach 100% clean organic material. The City asserts that neither Hauler was required to pre-processing organic material from July 1, 2021 – June 30, 2022 as it was not part of their contracts; the requirement for pre-processing began July 1, 2022 because of SB 1383 compliance. The additional component was also added to the rates beginning July 1, 2022. The current residential rate includes $1.72 per month and the current commercial rate includes $3.11 per month per cubic yard for organics pre-processing. The amount of this additional fee was based on feedback from both Haulers on the cost of pre-processing and developed by R3.

Bertolotti: Bertolotti’s narrative confirmed that it is required to deliver all organic material to the City’s compost facility. Bertolotti asserted that the transfer rate for solid waste materials is the same for organic materials, which is in alignment with the City’s narrative that Bertolotti was not pre-processing material during this time as the transfer rate for organic material would be higher to account for additional cleaning and grinding.
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However, Bertolotti’s annual rate adjustment application included $157,890 for green waste cleaning.

Therefore, Bertolotti’s annual rate adjustment application included costs that would double-compensate them for organics pre-processing services. Because the rates were set based on an inflation increase, not the Hauler’s applications, Bertolotti was not double compensated for organics pre-processing. However, this indicates to HF&H that the current rate adjustment methodology allows for potential doublecompensation in areas where the Hauler is compensated separately from the Hauler Component of the rates.

Gilton: Gilton’s narrative confirmed that organic waste is delivered to the GRR facility where it is cleaned and ground. Gilton’s breakdown of the per ton cost for transfer and disposal of solid waste included a breakdown of the cost to pre-process and transfer organic materials. HF&H confirmed with Gilton that the transfer rate for organic materials is inclusive of pre-processing and delivery of material to the City’s compost facility. the cost for pre-processing and transfer was $67.00 per ton from 7/1/21-9/30/21 and $71.00 from 10/1/21-6/30/22. Gilton asserts that they have been pre-processing organic material before it was required by the City in 2023 and consider it part of the scope of current services.

The cost to pre-process organics is compensated through the additional per month fee and should not be included in each Hauler’s financial information. Therefore, Gilton’s annual rate adjustment application included costs that would double-compensate them for at least some portion organics pre-processing services. If Gilton was the ‘lowest cost Hauler’, then costs to pre-process organic material would be included twice (firstly in direct costs and secondly through the per month fee). This indicates to HF&H that the current rate adjustment methodology allows for potential double-compensation in areas where the Hauler is compensated separately from the Hauler Component of the rates. This also indicates to HF&H that a reset of the base rate based on all current services and removes all per month fees remitted to the Haulers, would be beneficial.

For the upcoming annual rate adjustment application, the costs to pre-process organic materials will be included in both of the Haulers’ financial information and the per month fee should be removed to avoid double-compensation regardless of which Hauler is the ‘lower cost Hauler’.

City Compost Facility Rate
The City informed HF&H that the City’s compost facility reviews incoming organic material for compliance with the 1% contamination limit through a visual inspection. However, this inspection has been insufficient to identify incoming tonnage that is above the contamination level. The compost facility has been disposing of more organics contamination residue than anticipated and is incurring approximately $600,000 annually in City funds from other programs to dispose of the residue. The organics preprocessing rate was established for the Haulers to fully clean the organic materials collected within the City’s jurisdiction.

The City’s compost facility has two per ton rates: an in-city and out-of-city rate. The facility does not have a separate rate for contaminated material to cover the additional costs for the City to continue to process organic material because the pre-processing rate was established for delivered materials to have no contamination. If a load is identified as having contamination, the City will either reject the load and return #21..
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it to the Haulersfor additional pre-processing before charging a second tip fee upon return or the City will continue to process the material on site at the Compost facility at their own expense. Therefore, the current rates at the facility do not cover all of its costs incurred to process and dispose of organic residue.

Hauler Tonnage Review
The City discussed with HF&H its lack of confidence in the tonnage reports submitted by the Haulers to the City. The City also informed HF&H that the Recycling and Disposal Reporting System tonnage for the City of Modesto does not match the information provided to the City. HF&H performed a recalculation of the tonnage reports for Bertolotti and Gilton by material stream from July 2021 – June 2022. The recalculation found that not only did the annual tonnage disagree with the annual tonnage reported in the operating statistics, but it also did not agree to subtotals within the individualreports. HF&H compared the tonnage reports to the tonnage reported in the operating statistics provided to HF&H and inquired about discrepancies.

HF&H inquired with both Bertolotti and Gilton regarding the tonnage discrepancies and received the following response: The tonnage reports were created by and provided to each Hauler to fill out. The intent of the forms was submission to Cal Recycle but has since changed due to SB 1383. Gilton noticed that some of the formulas on the tabs differed from the summary page but did not modify the form. Both Bertolotti and Gilton mentioned that self-haul and schools were not included in the operating statistics tonnage reported as they are not part of the franchise. Gilton also noted that these reports were revised after June 2022. In summary, the operating tonnage submitted to HF&H should differ from the tonnage reports and Gilton recommends the tonnage per the operating statistics should be used for our review purposes. If the City requires additional information from these reports, the optimal time to modify these templates will be during the agreement amendment process.

Hauler Detailed General Ledger Review
HF&H requested expenditure descriptions from Gilton and Bertolotti for the line items in their annual rate adjustment application. A copy of these descriptions is provided at Attachments C-1 and C-2. These descriptions allowed HF&H to remap the Haulers’ annual rate adjustment applications to compare similar types of expenditures to each other as Gilton and Bertolotti group some categories of expenditures differently. Then, HF&H requested detailed general ledgers from the Haulers for expenditure categories that were of interest to the City or were significantly higher than the other Hauler.

Bertolotti: HF&H reviewed the detailed general ledgers for the following categories: Advertising, Bank Charges, and Rent. Detailed review of these general ledgers confirmed that all expenses in these categories were business-related expenditures that were reasonable to incur in operating the business and did not appear to be related to specifically non-Modesto jurisdictions.

Gilton: HF&H reviewed the detailed general ledgers for the following categories: Bank Charges, Computer, Depreciation, Rent, and Telephone. Detailed review of these general ledger confirmed that all expenses in these categories were business related expenditures that were reasonable to incur in operating a business and did not appear to be related to specifically non-Modesto jurisdictions. #21..
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At the City’s request, HF&H performed a deeper review of the Business Travel expenses incurred by Gilton.

HF&H reviewed the general ledger of Business Travel and noted that 62% of expenses were for travel to attend insurance related meetings, 20% of expenses were for business lunches with employees, vendors, and other business associates, and 18% of expenses were for business meals and travel for purposes of conventions, vendor negotiations, and equipment surveying.

Gilton also provided HF&H with additional background on their Business Travel: The Operations Manager’s duties include equipment/vehicle evaluations and purchases, safety coordinator, employment practices, and insurance insight. The Operations Manager also sits on the Board of Directors for Gilton’s Captive Insurance policies, which includes worker compensation, vehicle, and liability insurances. The Operations Manager attends safety meetings twice a year to ensure Gilton is in compliance and stays on top of industry changes. The Operations Manager and Richard Gilton attend board meetings for Captive Insurance twice a year. As part of the Board meetings there are educational classes regarding loss mitigation and other insurance related subjects.

After HF&H reviewed the general ledger and Gilton’s narrative, HF&H believes these types of business travel expenses appear reasonable to incur in operating a business.

FINDINGS
• Gilton’s general and administrative allocation attributed an additional ~$96,000 in indirect expenses to the City of Modesto based on an incorrect inclusion of commercial commodity revenue that is not part of the franchise. HF&H estimates the impact of this overallocation of expenses to be ~$0.73 per commercial cubic yard. Because the current rates were set based on an inflation increase and not on this financial information, there is no impact to the current rates. A review of prior period allocations would be required to ascertain whether the incorrect allocation was used in previous years.
• Bertolotti’s total costs per route are higher than the reasonable range from the benchmarks and the driving factor may be additional labor expenses for overtime. Gilton’s labor costs are higher than the reasonable range due to inclusion of bulky drivers, customer service reps, and other personnel within the driver labor category instead of the overhead category. The overall per route costs, including fuel, are still slightly higher than the reasonable range. • Bertolotti’s and Gilton’s annual rate adjustment application included costs that would doublecompensate them for organics pre-processing services (firstly in direct costs and secondly through the per month fee). However, because the current rates were set based on an inflation increase, the current rates do not double-compensate Bertolotti or Gilton for organics preprocessing.

HF&H RECOMMENDATIONS
Based on the above analysis, HF&H has summarized our recommendations for next steps below:
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1. Third Party Review of Gilton Allocation: Because Gilton’s software for allocation of costs to the City is integrated with their accounting software, HF&H recommends that the software be reviewed periodically by a third party for accuracy and reasonableness. The cost for this review may be at the City’s or the Hauler’s expense. Additionally, HF&H recommends that the City provide direction to Gilton on appropriate allocators for each overhead cost category, such as customer count or overhead labor hours by jurisdiction.

2. City’s Compost Facility Per-Ton Rate: HF&H recommends the City consider creating a separate rate for contaminated organic material. The City and Haulers should meet and confer to develop a surcharge that addresses this additional cost burden to rate-payers.

3. Amend and Restate the Current Franchise Agreements: Based on discussions with the City regarding past experiences under the current franchise agreements, operational and informational challenges with the Hauler, and the insufficient franchise agreement language to provide the City the guardrails and direction it desires, HF&H recommends negotiating an amendment to and restating the current franchise agreement to address these concerns. HF&H also recommends the haulers resubmit official cost and operations forms to set a baseline to which future operations can be compared for reasonableness.

Initially, HF&H recommends the City and Haulers and discuss how the current franchise agreement is functioning appropriately, and how it can be improved. This process could be navigated through use of a third party, like HF&H, to facilitate a pointed discussion on key points of the franchise agreement and document key issues and alternatives.

Modify Annual Rate Adjustment Methodology: Because the current annual rate adjustment process of using the ‘lowest cost Hauler’ does not provide any guardrails to protect the City from high inflation factors, operational inefficiencies, disposal costs at non-preferred locations, doublecompensation, and other operational issues that impact costs, HF&H recommends modifying the current annual rate adjustment process through the amendment to account for these possibilities. Some possibilities could include linking labor cost increases to local collective bargaining agreements or inflating expense categories based on regional and classification specific CPI indices. HF&H would be happy to discuss with the City the alternative rate setting methodologies used in other jurisdictions and discuss the pros and cons of those alternative methodologies.

Acceptable Disposal Location Designations: Because the current franchise agreement does not state which landfill the solid waste material should be delivered, the Haulers may choose where to bring the material. This may increase the cost of delivery (additional fuel and labor time), and due to the current annual rate adjustment process, increased costs will directly flow to the rate payers. HF&H recommends designating the disposal facilities in the franchise agreements to ensures material flow is managed and predictable.
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Additionally, HF&H recommends that the new rate adjustment methodology calculate the compensation for disposal and organics pre-processing and delivery based on a build-up of tons multiplied by the rate at the destination facility. The ‘clean material’ rate at the City’s compost facility should be used for organics because the Haulers are being compensated to pre-process material to the facility’s standards. If the City’s compost facility enacts a separate charge for contaminated loads, as recommended above, the Haulers would be responsible for covering the additional cost if the organic material does not meet contamination standards.

4. Transfer / Organics Pre-Processing Rate Benchmarking: Because Gilton Resource Recovery and Gilton Solid Waste are affiliated parties, HF&H recommends the City review the transfer/preprocessing rate to ensure it is within the range of acceptable market rates. Additionally, HF&H recommends negotiating with the Haulers to tie the annual increase in this rate to an index or some other annual metric.

5. Future Fee Component Removals: Because certain City fees are for services that the Hauler is currently performing, the costs to perform these services will be reflected in the Hauler’s future financial information. Therefore, these fees should be removed in the upcoming annual rate adjustment process to not double-compensate the Hauler. A list of these fees is included below for reference:
a. Weekly Organics Collection
b. SB 1383 Collection Fee (For collection and processing of recyclable materials) c. Organics Waste Pre-Processing

6. Monthly/Quarterly Tonnage Reports: Because the reporting requirements may change with an amendment to the agreement, HF&H recommends the City review the current reporting template for additional modifications, as needed during the amendment process, and discuss these modifications with the Haulers

7. Detailed General Ledger Review: HF&H’s review of selected general ledger accounts did not yield expenditures that were unallowable in nature. However, certain business-related decisions and practices that are at the discretion of the company (e.g., increasing driver wages to incentivize tenure, attending multiple instead of few industry conferences, purchasing additional IT software/security) will affect the City’s rate payers and the City has no influence on or ability to veto these expenses. A revision to the annual rate adjustment process that places a cap on general and administrative expenses, or limits specific categories of expenses, can provide the City with a general enforcement mechanism while allowing the Haulers the opportunity to make these business decisions at their discretion.
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CONCLUSION
HF&H reviewed the annual rate adjustment process, benchmarked the current programmatic costs and operating statistics, examined the current transfer, disposal, and pre-processing arrangements, and checked general and administrative expenses for reasonableness. HF&H recommends amending and restating the franchise agreement to modify the current rate adjustment methodology to align annual cost adjustments with indices or other third-party sources, include disposal and pre-processing guardrails to direct the flow of and quality of materials, and remove future fee components in the next year’s rates to avoid double-compensation.
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ATTACHMENT A-1:

BERTOLOTTI BULKY PROGRAM STATISTICS
A B
Account Information
1 Customer Annual Collections 2,343 NONE
Labor Information
2 # of route/hourly personnel 2 NONE
3 # of spare personnel 0
4 # of salaried personnel 0
5 Total labor hours/year 2080
A B
# of routes per
6 ONE ROUTE 2 DAYS A WEEK Weekday 1 NONE
7 Saturday
8 Sunday
# of persons/route per
9 Weekday 2
10 Saturday
11 Sunday
# of route hours/day/route per
12 Weekday 20
13 Saturday
14 Sunday
# of route hours/year per
15 Weekday 2080 NONE
16 Saturday 0 0
17 Sunday 0 0
18 Total 2080 0
19 # of FTE routes 1 0
Vehicle Information
20 # of regular collection vehicles 2
21 # of spare collection vehicles
22 Total # of collection vehicles 2
Tonnage Information (annual)
23 Direct Haul
24 Transfer
25 Solid Waste Disposed 0 0
26 Recyclable materials
27 Organic materials
28 Total 0 0
29 Tonnage Disposed
30 Projected Processing Residue %
Pulls = pull and return etc.

Full Time Equivalent (FTE) = 40 hours per week, 2,080 hours per year

STATISTICAL & OPERATIONAL DATA
Modesto
Residential
Bulky
Commercial
Bulky
Residential
Bulky
Commercial
Bulky
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ATTACHMENT A-2:

BERTOLOTTI BULKY PROGRAM COSTS
Expenses
Wages 68,640 NONE
Benefits 18,139
OTHER P/R TAX, W/C INS, UNIFORMS 19,434
Total Labor Related Costs 106,213 -
Fuel 14,300 NONE
Vehicle Related Costs R&M 9,600
Depreciation 62,000
Other Direct Costs LIABILITY INS 2,450
Total Direct Costs 194,563 -
Allocated Costs - Labor, Vehicle & Other Costs
General & Administrative 12,000 NONE
Vehicle & Container Maintenance
12,000 -
Total Annual Cost of Operations 206,563 -
Pass Through Costs
Disposal 65,007 NONE
Transfer 14,402
Interest
Total Pass Through Costs 79,409
Total Contractor Cost before City Fees 285,972 -
Residential Bulky
Collection
Commercial
Bulky Collection
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ATTACHMENT B-1:

GILTON BULKY PROGRAM STATISTICS
A B
Account Information
1 Customer Annual Collections 14712
Labor Information
2 # of route/hourly personnel 3.2937
3 # of spare personnel
4 # of salaried personnel
5 Total labor hours/year 6851.01
A B
# of routes per
6 Weekday
7 Saturday
8 Sunday
# of persons/route per
9 Weekday
10 Saturday
11 Sunday
# of route hours/day/route per
12 Weekday 0
13 Saturday
14 Sunday
# of route hours/year per
15 Weekday 0 0
16 Saturday 0 0
17 Sunday 0 0
18 Total 0 0
19 # of FTE routes 0 0
Vehicle Information
20 # of regular collection vehicles 1.96
21 # of spare collection vehicles
22 Total # of collection vehicles 1.96
Tonnage Information (annual)
23 Direct Haul
24 Transfer 2408.65
25 Solid Waste Disposed 2408.65 0
26 Recyclable materials
27 Organic materials
28 Total 2408.65 0
29 Tonnage Disposed 2408.65
30 Projected Processing Residue %

STATISTICAL & OPERATIONAL DATA
Modesto
Residential
Bulky
Commercial
Bulky
Residential
Bulky
Commercial
Bulky
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ATTACHMENT B-2:

GILTON BULKY PROGRAM COSTS
Expenses
Wages 218,446
Benefits 100,315
Other (Please List) Laundry 1,108
Total Labor Related Costs 319,869 -
Fuel 71,682
Vehicle Related Costs 50,016
Depreciation 53,240
Other Direct Costs 7,736
Total Direct Costs 502,543 -
Allocated Costs - Labor, Vehicle & Other Costs
General & Administrative -
Vehicle & Container Maintenance 99,903
99,903 -
Total Annual Cost of Operations 602,446 -
Pass Through Costs
Disposal 124,106
Transfer 62,931
Interest
Total Pass Through Costs 187,037 -
Total Contractor Cost before City Fees 789,483 -
Residential Bulky
Collection
Commercial
Bulky Collection
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ATTACHMENT C-1:

BERTOLOTTI EXPENSE LINE ITEM DESCRIPTIONS
Expense Line Item
(Modesto Annual Rate Application
Expense Line Item
(Per Financial Statements) Expense Line Item Description Direct Costs:

Wages: Supervisor Wages, Salaries and Wages Salaries and wages for Bertolotti Modesto (BMDI) drivers and mechanics Other Payroll Expenses:

Comp Insurance Workmen's Comp. Workers comp insurance costs for drivers and mechanics Group Insurance Medical / Group Ins. Medical insurance cost for BMDI drivers and mechanics Payroll Taxes Payroll Taxes Payroll taxes for BMDI drivers and mechanics Profit Sharing Profit Sharing Profit sharing for 401K BMDI drivers and mechanics Truck Expenses:

Depreciation Depreciation Depreciation for BMDI fixed assets Fuel Fuel, Oil, & Lube Fuel costs for BMDI trucks
Licenses Licenses / DMV City business licenses and DMV costs for BMDI Repairs Repairs & Maint. All R&M costs (except for fuel and tires) for BMDI trucks/equipment Tires Tires Tires costs for BMDI trucks
Vehicle/Liab Insurance Vehicle Insurance Liability/Physical damage coverage for BMDI vehicles Other Operating Expenses:

Bulky Item Disposal Fee Bulky Item Disposal Fee Disposal fee for Bulky items Green Waste Cleaning Green Waste Cleaning Cleaning costs for sorting and cleaning of organics Green Waste Hauling Green Waste Hauling Hauling costs for organics Green Waste Tip Fee Green Waste Tip Fee Tip fee for organics Laundry Laundry & Uniforms Uniform costs for BMDI employees Transfer Station fee Transfer Fees Hauling fees charged by Bertolotti Transfer Station G&A Expenses:

Accounting Accounting Services Costs paid to outside CPA for audit, financials and tax return prep Advertising Advertising Earth Day 2023 booth and supplies Advertising paid to City Advertising Paid to City Modesto billed advertising fee Bad Debts Bad Debts Write-offs of uncollectible receivables Bank Charges Bank Charges Bank servicing and credit card processing fees City Billing Fees City Billing Fees Modesto billing fees City Pollution Insurance City Pollution Insurance Bertolotti's portion of Modesto's pollution policy Computer Exp Computer / Data Process. Desktop support from outside IT consultant and small computer items Depreciation & Amort. Depreciation Depreciation of fixed assets Employee Benefits (Medical/Group Ins.) Medical/Group Ins. Medical insurance for BMDI office employees Indirect Liability insurance Indirect Liability Insurance General liability coverage Insurance (Workmen's Comp Ins) Workmen's Comp. Ins. Workers comp insurance for BMDI office employees Office Supplies Office Supplies Small Office supplies for BMDI (paper, pens, etc) Other Taxes Other Taxes and Licenses Misc taxes and licenses for BMDI (annual SOS filing, business license) Outside Services/Security Outside Services Outside temps Payroll Taxes Payroll Taxes Payroll taxes for BMDI office employees Postage Postage General postage and freight
Professional Fees/Services Professional Services
Legal costs (corporate minutes, employment liability assessment, defense costs)
Profit Sharing (Def Comp) Profit Sharing Profit sharing for office employees Property Taxes Property Taxes Real and personal property taxes Rent Rent Office and equipment rent
Salaries Salaries & Wages Salaries and wages for BMDI office employees Security Security 3 rotating security guards
Telephone Telephone VOIP Costs, Cell Phones, Radios, Fiber Internet Travel & Enter Meals & Entertainment Travel, meals, and entertainment (conventions, meals for office) Utilities Utilities BMDI utilities (TID, PGE)
Total G&A Exp:
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ATTACHMENT C-2:

GILTON EXPENSE LINE ITEM DESCRIPTION
Expense Line Item
(Modesto Annual Rate Application
Expense Line Item
(Per Financial Statements) Expense Line Item Description Direct Costs:

Wages: Wages

GROSS PAY FOR NON-ADMINISTRATIVE AND NON-MANAGEMENT INCLUDING REGULAR, OVERTIME,

VACATION, SICK, PTO AND HOLIDAY PAY (EXCLUDES SHOP)
Other Payroll Expenses:

Comp Insurance Compensation Insurance

WORKERS COMPENSATION INSURANCE PAID/ACCRUED DURING THE FISCAL YEAR FOR NON-ADMIN AND

NON-MANAGEMENT STAFF
Group Insurance Group Insurance

MEDICAL, DENTAL AND VISION PAYMENTS MADE TO INSURANCE PROVIDERS AS WELL AS SELF-INSURED

PLANS ON BEHALF OF NON-ADMIN, NON-MANAGEMENT STAFF
Payroll Taxes Payroll Taxes

EMPLOYERS SHARE OF SOCIAL SECURITY, MEDICARE, FEDERAL UNEMPLOYMENT INSURANCE, CA STATE

UNEMPLOYMENT INSURANCE AND EMPLOYER TRAINING TAX
Profit Sharing Profit Sharing EMPLOYER MATCH OF SECTION 401 (k) PAYMENTS FOR EMPLOYEE RETIREMENT PLAN Truck Expenses:

Depreciation Depreciation
ANNUAL STRAIGHT-LINE COST OF HAULER'S COLLECTION VEHICLES AND TRAILERS, E.G. AUTOMATED, FRONT LOADER, ROLL-OFF, BULKY ETC.

Fuel Fuel COST OF GAS AND DIESEL EXPENSE RELATED TO HAULER COLLECTION VEHICLES Licenses Licenses

COST OF COLLECTION VEHICLE RELATED FEDERAL AND STATE TAXES, LICENSING, PERMITTING AND

REGISTRATION FOR BOTH INITIAL PURCHASE AND RENEWALS
Repairs Repairs COLLECTION VEHICLE RELATED REPAIRS COSTS INCLUDING OIL, GREASE AND FLUIDS (PARTS AND LABOR) Tires Tires PURCHASE, INSTALLATION AND/OR REPAIR OF HAULER COLLECTION VEHICLE TIRES Vehicle/Liab Insurance Vehicle // Liability Insurance COST TO INSURE HAULER COLLECTION VEHICLES INCLUDING PROPERTY AND VEHICLE RELATED LIABILITY Other Equipment Expenses:

Depreciation Depreciation

DEPRECIATION ON CONTAINERS, LEASEHOLD IMPROVEMENTS AND OFFICE FURNITURE, FIXTURES AND

EQUIPMENT
Other Operating Expenses:

Laundry Laundry LAUNDERED UNIFORMS, MATS, TOWELS
Supplies Supplies CLEANING, JANITORIAL, DRIVER SUPPLIES, AND OTHER MISCELLANEOUS SUPPLIES Transfer Station fee Transfer Station Fee TIPPING FEE AND PROCESSING FEE PAID TO TRANSFER STATION Indirect Costs:

Officer Salaries
Shop Expense Shop Expense
ALL NON-SPECIFIC SHOP OVERHEAD (E.G. WAGES, REPAIRS, FUEL, WC, LAUNDRY, INSURANCE, SUPPLIES, ETC. NOT DIRECTLY ALLOCATED)
G&A Expenses:

Accounting Accounting COST PAID TO EXTERNAL AUDITORS, ACCOUNTANTS AND CONSULTANTS Advertising Advertising GENERAL PROMOTIONAL ITEMS
Bad Debts Bad Debts UNPAID AND UNCOLLECTABLE CUSTOMER BILLS REMOVED FROM ACCOUNTS RECEIVABLE Bank Charges Bank Charges BANK SERVICE CHARGES AND CREDIT CARD AND ELECTRONIC PAYMENT MERCHANT FEES Cash O/S Cash Over / Short MISC. CASH/OVER SHORT FROM CASH DRAWER City Billing Fees Billing Expenses

COST PAID TO THE CITY OF MODESTO FOR BILLING/COLLECTIONS (CITY WITHHOLDS THIS FROM AMOUNT

PAID TO HAULER)
Community Education/Support Public Education Costs INVOICES FROM THE CITY OF MODESTO FOR PUBLIC EDUCATION Computer Exp Computer Expenses

SERVER HARDWARE AND SOFTWARE LICENSING AND MAINTENANCE, REPORT DESIGN, DATA STORAGE,

COMPUTER AND NETWORK RELATED HARDWARE AND SOFTWARE
Contributions Contributions INDUSTRY RELATED NOT-FOR -PROFIT CONTRIBUTIONS Depreciation & Amort. Depreciation and Amortization ANNUAL STRAIGHT-LINE COST OF SUPPORT VEHICLES AND AMORTIZATION OF LOAN FEES Employee Safety Exp Employee Safety Expenses LITERATURE, TRAINING, SAFETY EVENTS AND INCENTIVES Insurance (Workmen's Comp Ins) Insurance HEALTH, DENTAL, VISION AND LIFE INSURANCE, WORKERS COMPENSATION Office Supplies Office Supplies
COPY PAPER, STAPLES, PAPER CLIPS, PENS, CALCULATOR TAPE, OTHER SMALL OFFICE ITEMS, 10-KEY CALCULATORS ETC.)
Other Taxes Other Taxes EMISSIONS COMPLIANCE, PCORI TAX, CITY OF MODESTO ANNUAL BUSINESS LICENSE Outside Services/Security Outside Services FIRE AND SECURITY ALARM SERVICES, PEST CONTROL AND, VEHICLE FUEL SERVICING FEES Payroll Taxes Payroll Taxes

EMPLOYERS SHARE OF SOCIAL SECURITY, MEDICARE, FEDERAL UNEMPLOYMENT INSURANCE, CA STATE

UNEMPLOYMENT INSURANCE AND EMPLOYER TRAINING TAX
Penalties Penalties LATE FEES AND OTHER PENALTIES
Permits/Licenses Permits STATE OF CALIFORNIA MOTOR CARRIER PERMIT FEE Postage Postage COST OF POSTAGE, POSTAGE EQUIPMENT LEASE, MAILING SERVICE AND POSTAGE SUPPLIES Professional Fees/Services Professional Fees LEGAL FEES, DIRECT PAYMENTS TO MEDICAL FACILITIES, 3RD PARTY ADMIN FEES, BROKER FEES Profit Sharing (Def Comp) Profit Sharing EMPLOYER MATCH OF SECTION 401 (k) PAYMENTS FOR EMPLOYEE RETIREMENT PLAN (ADMIN/MGMT) Property Taxes Property Taxes
STANISLAUS COUNTY UNSECURED PROPERTY TAX FOR OPERATING EQUIPMENT (E.G. CONTAINERS) USED

BY THE CITY OF MODESTO
Rent Rent OFFICE LEASE AND/OR TEMPORARY EQUIPMENT RENTALS Repairs (Repair & Maintenance) Repairs REPAIR SERVICES INCLUDING PARTS AND LABOR RELATED TO THE BUILDINGS AND GROUNDS Salaries Salaries

GROSS PAY FOR ADMINISTRATIVE SUPPORT, CSR, IT AND MANAGEMENT INCLUDING SALARY, VACATION,

SICK, PTO AND HOLIDAY PAY
Subscriptions (& Dues) Subscriptions INDUSTRY RELATED MEMBERSHIPS DUES AND FEES Telephone Telephone

CELL PHONE, TABLETS GPS SERVICES, DRIVER/FLEET MANAGEMENT, ANALOG LAND LINES, DEDICATED

FIBER/INTERNET, VOIP PHONE SYSTEM, FIREWALL
Travel & Enter Travel & Entertainment BUSINESS RELATED TRAVEL AND ACCOMPANYING EXPENSES (DOES NOT CONTAIN ENTERTAINMENT) Utilities Utilities WATER, SEWER, GARBAGE, NATURAL GAS, ELECTRICITY FOR OFFICES AND SHOP Vehicle Exp Vehicle Expenses

FUEL, REPAIRS AND MAINTENANCE, TIRES, LICENSING/REGISTRATION AND GENERAL UPKEEP OF SUPPORT

VEHICLES
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

August 13, 2024
Date: July 11, 2024
TO: Mayor and City Council
FROM: Colleen Rozillis, City Auditor
SUBJECT: Consider reviewing and providing comment on the FY24-25 Internal Audit work plan CONTACT: Colleen Rozillis, City Auditor, [email protected], 206-302-6795 DESCRIPTION:

Consider Reviewing, Providing Comment and Accepting the Proposed FY24-25 Internal Audit Work Plan. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

The recommended action supports the following 2020-2025 City of Modesto Strategic Plan Initiatives: Goal J: Build a high-performance organization.

BACKGROUND:

The attached work plan was approved by the Audit Committee on July 9, 2024 and forwarded to Council for review and comment. Each year, the City Auditor develops a proposed work plan to address internal controls, compliance, risk, and performance. In accordance with section 902.1 of the Modesto City Charter, “At the beginning of each fiscal year, the Auditor shall submit a one (1) to five (5) year audit schedule to the Audit Committee and Council for review and comment.

The schedule shall include the proposed plan, and the rationale for the selections, for auditing departments, offices, boards, activities, subcontractors, and agencies for the period. This schedule may be amended after review with the Audit Committee and Council, but the Auditor shall have final authority to select the audits planned.” DISCUSSION:

This year’s work plan was informed by the 2024 Internal Controls Review, 2022 Enterprise Risk Assessment, and discussions with Council and management. The City Auditor plans to execute the following projects for FY24-25:
• Water and Wastewater Utilities Fiscal Review
• Capital Program Best Practices Assessment
• Payroll Process and Controls Review
• Accounts Receivable Internal Controls Review
• Prior Audit Update: Permitting
• Establish Recommendation Validation Process
• Ongoing Internal Audit Services
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City Council, August 13, 2024
FY24-25 Internal Audit Work Plan

COMMITTEE RECOMMENDATION:

This project was presented to Audit Committee on July 9, 2024 and was recommended to forward to Council for review and comment.

FISCAL IMPACT:

None.

RECOMMENDED COUNCIL ACTION:

Motion accepting the FY24-25 Internal Audit Work Plan.

Approved by:

Colleen Rozillis, City Auditor
Attachments:

1. FY24-25 Internal Audit Work Plan

2. #22..
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CITY OF MODESTO
I. PROJECT UNDERSTANDING
The City of Modesto engaged Moss Adams LLP to provide internal and performance audit consulting services. Based on the current status of the City’s internal audit function, we propose three performance projects and two internal controls projects for FY 24-25, as well as establishing a validation process, and ongoing program management. The proposed scopes, timing, and budgets are described below.

II. PROPOSED PROJECTS: FY 24-25
Water and Wastewater Utilities Fiscal Review
Scope: Conduct a comprehensive review of the fiscal management of the City’s water and wastewater utilities, including sources and uses of funds, rate setting, other fees and charges, billing, and policies and procedures. Identify opportunities for improvement in sustainability, effectiveness, equity, and transparency.
● Conduct interviews with utilities, finance, budget, and other City staff ● Review documents and data related to fiscal management of the utilities, including budgets, financial statements, policies and procedures, planning documents, cost allocation, rate and other fee setting, billing, billing- and account-related customer service, and other relevant information ● Conduct research into industry best practices and conduct peer utility interviews and data collection in key areas for performance benchmarking
● Document sources and uses of funds for most recent fiscal year ● Document relevant compliance requirements related to fiscal management and governance ● Identify strengths and opportunities for improvement in performance, compliance, management, and governance of the utilities, and provide recommendations Timing: August-December
Fees: $55,000
Payroll Process and Controls Review
Scope: Document and review internal controls, systems, policies, and procedures related to the City’s payroll process. Assess the efficiency of current processes and identify opportunities for improvement.
● Identify payroll control objectives and controls that would satisfy each control objective ● Review policies and procedures and relevant documentation in support of select key controls in each payroll system
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City of Modesto FY24-25 Internal Audit Work Plan | 2
II. PROPOSED PROJECTS: FY 24-25
● Perform comprehensive process and control walkthroughs to understand the various payroll processes, the design of key controls, and workflows, particularly inter-system processes ● Assess whether the controls and monitoring activities in place would prevent or detect errors ● Conduct targeted testing of transactions
● Recommend updates to controls, processes, monitoring activities, policies, and procedures to improve the control environment
Timing: September-December
Fees: $40,000
Capital Program Best Practices Assessment
Scope: Assess the current state and identify opportunities for improving the effectiveness of the City’s capital planning and management activities, including project identification, budgeting, planning, execution, and closeout.
● Conduct interviews and walkthroughs with staff across the City engaged in capital planning and execution ● Review capital program, planning, and budgeting documentation, including policies and procedures, the CIP book, and public communications
● Introduce a framework to evaluate the efficiency and effectiveness of the City’s investment into capital assets, including new infrastructure and deferred maintenance; long-term planning and responsiveness to resident/community requests
● Review staffing levels and structure, skills, capacity, and efficiency; and intra- and inter-departmental collaboration and coordination
● Leverage best practices and benchmark relevant information from peer cities ● Identify opportunities for improvement in planning and delivery, organization, operations, process efficiency, and customer service
Timing: October-January
Fees: $35,000
Permitting Efficiency Study (Update of 2018 Study)
Scope: Assess the efficiency, effectiveness, and customer service across the City’s permitting functions. Objectives include organization structure and staffing, policies and procedures, interdepartmental coordination and communication, process efficiency and use of technology, and resident and customer experience. Review progress toward implementation of 2018 Permitting Efficiency Study recommendations.
● Conduct interviews and walkthroughs with staff, including department leaders from permitting and reviewing departments, and key staff involved in the permitting process ● Review documentation related to permitting activities, including policies and procedures, forms, organizational structure, workflows, workloads, and customer feedback ● Review permit system data, including time to complete submissions, approvals, and revisions ● Conduct an external customer feedback survey
● Conduct best practice research and benchmarking to peer cities ● Assess the alignment of permitting activities, policies, and procedures with regulatory requirements and the City’s strategic goals
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City of Modesto FY24-25 Internal Audit Work Plan | 3
II. PROPOSED PROJECTS: FY 24-25
Identify opportunities for improvement in service delivery, organization, operations, process efficiency, and customer service
● Report on implementation status of recommendations from 2018 study Timing: February-May
Fees: $40,000
Accounts Receivable Internal Controls Review
Scope: Assess processes and conduct targeted testing of internal controls related to the City’s AR function.
● Identify accounts receivable control objectives and controls that would satisfy each control objective ● Review policies and procedures and relevant documentation in support of select key controls ● Perform control walkthroughs to observe the design of key controls and understand workflow processes ● Assess whether the controls and monitoring activities in place would prevent or detect errors ● Conduct targeted testing of transactions
● Recommend updates to controls, processes, monitoring activities, policies, and procedures to improve the control environment
Timing: March-June
Fees: $35,000
Establish Recommendation Validation Process
Scope: Develop a process, in collaboration with City staff, to track, report on, and validate implementation status of Internal Audit recommendations ● Inventory prior internal and external audit recommendations ● Collaborate with City staff to develop a tracking mechanism ● Collaborate with City staff to develop a process to track and report the implementation status of internal and external audit recommendations
● Develop criteria for validation and reporting format
● Present process overview and initial results to Audit Committee Timing: August-November
Fees: $35,000
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City of Modesto FY24-25 Internal Audit Work Plan | 4
II. PROPOSED PROJECTS: FY 24-25
Ongoing Program Management
Scope: City Auditor activities including overseeing the internal audit program and managing the fraud, waste, and abuse hotline.
● Conduct bi-weekly status calls with the City’s project manager ● Manage the program and perform quality assurance
● Manage the City’s FWA hotline
● Support the Audit Committee and City Manager’s Office by conducting research, surveys, analysis, and other on-call consulting
● Present project plans and results to the Audit Committee, City Council, and leadership team Timing: Ongoing
Fees: $30,000
III. INTERNAL AUDIT PROGRAM TIMELINE
Project J A S O N D J F M A M J
Water and Wastewater
Utilities Fiscal Review
Payroll Process and
Controls Review
Capital Program Best
Practices Assessment
Permitting Efficiency
Study
Accounts Receivable
Internal Controls
Review
Est. Recommendation
Validation Process
Ongoing Program
Management
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

August 13, 2024
Date: June 25, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Concrete Services Agreements
CONTACT: Dianne Love, Purchasing Manager, [email protected], 209-571-5164
DESCRIPTION:

Consider approving an Agreement for Concrete Services with United Pavement Maintenance, Hughson, CA and Westside Landscape & Concrete, Newman, CA for a total amount not to exceed $17,250,000 for five years. (Funding Source: Measure H, Water Fund and General Fund)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The Public Works Department Curbs, Gutters and Sidewalks Division program repairs displaced or damaged concrete sidewalks, curb and gutter that have been damaged by City trees or City utilities. This division has been working on over 5,000 outstanding work orders related to sidewalks that are in need of removal, repair, or replacement. City staff are able to address approximately 100 work orders annually. Additionally, with an outside contractor, staff are able to complete up to an additional 200 work orders per year. This division focuses on improving the quality of life for the citizens of the City of Modesto by improving sidewalk, curbs and gutters infrastructure. Requests for removal, repair, or replacement are generally prioritized and completed based on hazards identified by City staff or reports made by the community.

On October 10, 2023, under Resolution No. 2023-442, Council approved an Agreement with United Pavement Maintenance, Hughson, CA for concrete services for a total amount not to exceed $2,350,000 for one-year. With the voters’ approval of Measure H, one of the top priorities was to address the significant backlog of work orders pertaining to sidewalk maintenance and repair. Due to this immediate need, staff solicited informal quotes while a formal Invitation for Bids could be initiated to enter into a longer-term agreement. Under the #23..
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City Council, August 13, 2024
Concrete Services Agreements

Fiscal Year 2023-24 Measure H spending plan, the Council approved $1.8 million in funding to address the backlog of sidewalk repairs. Since the approval of this one-year agreement, the Public Works staff have been able to address 199 work orders related to the replacement and repair of sidewalks.

DISCUSSION:

With the approval of the Fiscal Year 2024-25 Measure H spending plan, the Council approved an additional $1.8 million for the City to continue to obtain an outside contractor for sidewalk repairs.

On July 10, 2023, the City Manager authorized the Purchasing Manager to solicit the procurement for Concrete – Curb Gutter and Sidewalk Replacement Services. On April 19, 2024, the Purchasing Division issued Invitation for Bids (IFB) 2324-74 for the furnishing of curb, gutter, sidewalk, taper, transition apron, asphalt concrete, and AC pavement replacement, including the fabrication and installation of handicap access ramps, on an “as needed” basis throughout the year, on the City’s PlanetBids public bidding website under various commodity codes 91430 (Concrete). Prospective bidders were notified online and via email of the bid opportunity. Ten (10) companies downloaded the IFB document from PlanetBids.

On May 21, 2024, bids were formally opened in the City Clerk’s office and broadcast virtually via Microsoft Teams Livestream. Six (6) bidders chose to respond. There was one (1) local bid received and two (2) were deemed “non-responsive” due to incomplete bid documents not provided as part of their bid submittal. Based on providing the two (2) lowest responsive and responsible bids, City staff recommends awarding the Concrete – Curb Gutter and Sidewalk Replacement Services to United Pavement Maintenance, Hughson, CA and Westside Landscape & Concrete, Newman, CA for a two (2) year agreement with three (3) one-year extension options, for a $3,450,000 estimated annual amount for a total of $17,250,000 over five years.

Modesto Municipal Section 8-3.203 requires all purchases which meet or exceed $100,000 for material, equipment or contractual services to be formally bid. Based on providing the lowest responsive and responsible bid which conforms to the Modesto Municipal Code, 8-3.203 City staff recommends the award of bid for concrete services with United Pavement Maintenance, Hughson, CA. and Westside Landscape & Concrete, Newman, CA.

FISCAL IMPACT:

Sufficient funds are budgeted in Fiscal Year (FY) 2024-25 to support the cost for the agreements. One of the primary funding sources supporting the agreements is the approval of the Fiscal Year 2024-25 Measure H spending plan for the needed sidewalk concrete repairs in the amount of $1,800,000 being managed by the Public Works Streets Division. In addition, the Water Fund, Public Works, and Parks, Recreation and Neighborhood are requesting an additional $1,650,000 to address concrete services for their maintenance projects. Several of the Parks maintenance projects are associated with Parks preventative maintenance projects being funded by Measure H. The spending history under the prior as-needed concrete repairs agreements are provided below.
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City Council, August 13, 2024
Concrete Services Agreements

Period Amount
Year 1 $ 134,237
Year 2 $ 164,246
Year 3 $ 57,942
Year 4 $ 5,709
Year 5 (7 months) $ 1,684,036
Total $ 2,046,170
Below is the allocation of the annual funding between the City Departments:

Department Annual Allocation
Public Works - Streets $ 2,500,000
Parks, Recreation and Neighborhood $ 700,000
Utilities - Water $ 150,000
Utilities - Wastewater $ 100,000
Total $ 3,450,000
COMMITTEE RECOMMENDATION:

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

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Award of Bid and Agreements for Concrete Services to United Pavement Maintenance, Hughson, CA. and Westside Landscape & Concrete, Newman, CA for a two (2) year Agreement with three (3) one-year extension options, for an annual estimated amount of $3,450,000 and a total amount not to exceed $17,250,000 over five years; and authorizing the Director of Finance to adjust agreement totals between vendors based on contractor’s availability and department’s needs, ensuring the combined total amount does not change and authorizing the City Manager or his designee to execute the Agreements.

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

1. Resolution

2. Agreement – United Pavement Maintenance

3. Agreement – Westside Landscape & Concrete

4. (IFB) 2324-74 City Document

5. Cost Abstract

6. United Pavement Maintenance Submittal

7. Westside Landscape & Concrete Submittal
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE AWARD OF BID AND AGREEMENTS FOR

CONCRETE SERVICES TO UNITED PAVEMENT MAINTENANCE,

HUGHSON, CA AND WESTSIDE LANDSCAPE & CONCRETE, NEWMAN, CA FOR A TWO-YEAR AGREEMENT WITH THREE (3) ONE-YEAR EXTENSION OPTIONS, FOR AN ANNUAL ESTIMATED AMOUNT OF $3,450,000 AND A TOTAL AMOUNT NOT TO EXCEED $17,250,000 OVER FIVE YEARS; AND

AUTHORIZING THE DIRECTOR OF FINANCE TO ADJUST AGREEMENT TOTALS BETWEEN VENDORS BASED ON CONTRACTOR’S AVAILABLITY AND DEPARTMENT’S NEEDS, ENSURING THE COMBINED TOTAL
AMOUNT DOES NOT CHANGE; AND AUTHORIZING THE CITY MANAGER

OR HIS DESIGNEE TO EXECUTE THE AGREEMENTS
WHEREAS, the Public Works Department Curbs, Gutters and Sidewalks Division program repairs displaced or damaged concrete sidewalks, curb and gutter that have been damaged by City trees or City utilities; and
WHEREAS, this division has been working on over 5,000 outstanding work orders related to sidewalks that are in need of removal, repair, or replacement; and WHEREAS, on October 10, 2023, under Resolution No. 2023-442, Council approved an Agreement with United Pavement Maintenance, Hughson, CA for concrete services for a total amount not to exceed $2,350,000 for one-year; and WHEREAS, Since the approval of this one-year agreement, the Public Works staff have been able to address 199 work orders related to the replacement and repair of sidewalks; and
WHEREAS, with the approval of the Fiscal Year 2024-25 Measure H spending plan, the Council approved an additional $1.8 million for the City to continue to obtain an outside contractor for sidewalk repairs; and
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2 WHEREAS, on July 10, 2023, the City Manager authorized the Purchasing Manager to solicit the procurement for Concrete – Curb Gutter and Sidewalk Replacement Services; and
WHEREAS, on April 19, 2024, the Purchasing Division issued Invitation for Bids (IFB) 2324-74 for the furnishing of curb, gutter, sidewalk, taper, transition apron, asphalt concrete, and AC pavement replacement, including the fabrication and installation of handicap access ramps, on an “as needed” basis throughout the year, on the City’s PlanetBids public bidding website under various commodity codes 91430 (Concrete); and WHEREAS, prospective bidders were notified online and via email of the bid opportunity and ten (10) companies downloaded the IFB document from PlanetBids; and WHEREAS, on May 21, 2024, bids were formally opened in the City Clerk’s office and broadcast virtually via Microsoft Teams Livestream; and WHEREAS, six (6) bidders chose to respond and there was one (1) local bid received and two (2) were deemed “non-responsive” due to incomplete bid documents not provided as part of their bid submittal; and
WHEREAS, based on providing the two (2) lowest responsible and responsive bids, City staff recommends awarding the Concrete – Curb Gutter and Sidewalk Replacement Services to United Pavement Maintenance, Hughson, CA and Westside Landscape & Concrete, Newman, CA for a two (2) year agreement with three (3) oneyear extension options, for a $3,450,000 estimated annual amount for a total of $17,250,000 over five years; and
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3 WHEREAS, Modesto Municipal Section 8-3.203 requires all purchases which meet or exceed $100,000 for material, equipment or contractual services to be formally bid; and
WHEREAS, based on providing the lowest responsive and responsible bid which conforms to the Modesto Municipal Code, 8-3.203 City staff recommends the award of bid for concrete services with United Pavement Maintenance, Hughson, CA. and Westside Landscape & Concrete, Newman, CA.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Award of Bid and Agreements for Concrete Services to United Pavement Maintenance, Hughson, CA. and Westside Landscape & Concrete, Newman, CA for a two (2) year agreement with three (3) one-year extension options, for an annual estimated amount of $3,450,000 and a total amount not to exceed $17,250,000 over five years.

BE IT FURTHER RESOLVED, the Director of Finance, or her designee is authorized to adjust agreement totals between vendors based on contractor’s availability and department’s needs, ensuring the combined total amount does not change.

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. #23..
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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 13th day of August, 2024, by Councilmember _______, who moved its adoption, which motion being duly seconded by Councilmember _________, was was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

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 ANNUAL ON-CALL AGREEMENT 276886

UNITED PAVEMENT MAINTENANCE

CONCRETE- CURB GUTTER AND SIDEWALK REPLACEMENT SERVICES 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 UNITED PAVEMENT MAINTENANCE, hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 2024-______ authorizing the Award of Bid and agreement for the CONCRETE – CURB, GUTTER AND SIDEWALK REPLACEMENT SERVICES, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal 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 CONCRETE – CURB, GUTTER AND SIDEWALK REPLACEMENT SERVICESas described in IFB 2324-74 attached hereto as Exhibit “C” and made a part hereof (hereinafter called IFB).

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

1. THE WORK:
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2 a) CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, 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. All work conducted as part of this contract shall comply with the City of Modesto, Standard Specifications, Latest Edition. A digital copy of these specifications can be downloaded directly via https://www.modestogov.com/2143/Standard-Specifications 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 $2,587,500.00. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $12,937,500.00. 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 Bid attached hereto as Exhibit B. Without limiting the foregoing, in no event shall the cost for any particular project completed by the CONTRACTOR pursuant to Exhibit C exceed One Hundred Thousand Dollars ($100,000) #23..
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3 AGREEMENT PRICING
Item Description Unit Pricing of Prevailing Wages Required of
Issue Unit Price
Curb and Gutter (include demolition and saw cutting) Linear Foot $____ 80.00_____/LF
Sidewalk, Taper and Transition Apron at 4”
Square
Foot
$_______23.00_____/SF
Drive Apron (include demolition, saw cutting and 6”
thick concrete
flatwork)
Square
Foot
$_______28.00___ _/SF
Asphalt Concrete (include demolition and saw cutting)
at 4” Square
Foot
$_______14.00______/SF
Additional Concrete Flat Work, 4” Thick with Rebar
(MIN 100 sq ft)
Square
Foot
$_______32.00______/SF
Additional Concrete Flat Work, 5” Thick with Rebar
(MIN 100 sq ft)
Square
Foot
$_________35.00_ __/SF
Item Description Unit Pricing of Prevailing Wages Required of
Issue Unit Price
Additional AC Pavement over 3’ (include demo and
saw
cutting) at 4”
Square
Foot
$_______14.00______ /SF
Installing Root Barrier, 12”H x 24” L
(root barrier provided by City) (no trenching required) Each $_______10.00____ _/EA ADA Access Ramp
(cast iron truncated dome)
Each $______ 8,000_____ _/EA
Alternate Pricing
Forming, pouring, form removal and backfilling
Payment of Prevailing Wages Required
Item Description Unit of Issue Unit Price
Curb and Gutter Linear Foot $_______ _90.00_____________/LF Sidewalk, Taper and Transition
Apron Square Foot
$ ____25.00_____________ /SF
Drive Apron Square Foot $__________30.00___________ _/SF Additional AC Pavement
Square Foot $__________14.00___________ _/SF
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4 Item Description Unit of
Issue
Price A
Install and
Demo
Price B NEW
4” concrete paving with welded wire mesh – “4”
Concrete Paving
16-99 SF (16 SF Minimum) SF $65.00 $60.00
100-499 SF SF $50.00 $45.00
500-999 SF SF $40.00 $35.00
1, 000-1,999 SF SF $30.00 $25.00
2,000 + SF SF $25.00 $20.00
5” sidewalk concrete paving with rebar – “5” Concrete
Paving
16-99 SF (16 SF Minimum) SF $70.00 $65.00
100-499 SF SF $55.00 $50.00
500-999 SF SF $45.00 $40.00
1, 000-1,999 SF SF $35.00 $30.00
2,000 + SF SF $30.00 $25.00
Concrete Playground Ramp –“Playground Ramp” Per Ramp $8,000.00 $7,500.00 Concrete Playground Curb – “Playground Curb”
10-49 LF (10 LF Minimum) LF $410.00 $400.00
50-99 LF LF $250.00 $240.00
100 + LF LF $180.00 $170.00
Concrete Mow Band – “Concrete Mowband”
10-49 LF (10 LF Minimum) LF $380.00 $370.00
50-99 LF LF $220.00 $210.00
100 + LF LF $180.00 $170.00
Concrete Grinding per LF for tripping hazards of ½” to
2” elevation change
10-49 LF (10 LF Minimum) LF $240.00 $240.00
50 + LF LF $120.00 $120.00
Asphalt Grinding per LF for tripping hazards of ½” to 2” elevation change
10-49 LF (10 LF Minimum) LF $200.00 $200.00
50 + LF LF $100.00 $100.00
Additional Services:

Payment Bond: $_________________________________________________________ /Year

2. PREVAILING WAGES:

In accordance with California Labor Code Section 1771, CONTRACTOR shall pay all workers, and shall ensure its subcontractors pay all of their workers, engaged in performing the services described in Exhibit “C” not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the services described in Exhibit “C” are to be performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work as provided in the California Labor Code. In #23..
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5 accordance with California Labor Code Section 1773.2, the City has obtained the general prevailing wages in the locality in which the services described in Exhibit A are to be performed for each craft or type of work needed to be as published by the State of California Department of Industrial Relations, Division of Labor Statistics and Research, a copy of which is on file in the CITY’s Purchasing Department and shall be made available on request. Contractor must comply with all applicable laws and regulations that apply to wages earned in performance of the services described in Exhibit “C”, including those set forth in Labor Code section 1770 et. seq. and in the IFB.

DIR Project ID#: 528329

3. CITY REPRESENTATIVE:
 Public Works - Streets Services: John Sphar, Streets Manager, (209) 342-2235, [email protected]
 Parks, Recreation, and Neighborhoods: Nathan Houx, Parks Planning and Development Manager, (209) 571-5526, [email protected]
 Utilities Department – Water Services Division: Jeremy Parnell, Water Superintendent, (209) 342-4599, [email protected]
 Utilities Department – Wastewater Division: Jeff Daniels, Wastewater Division Manager, (209) 577-6255, [email protected]
 Purchasing Contact: Mark E. Bolden, (209) 571-5839, [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.

4. CONTRACTOR CONTACT: Rodolfo Ruvalcaba, President, (209) 883-4345, [email protected]

5. 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: August 14, 2024 through August 13, 2025
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6 Year 2: August 14, 2025 through August 13, 2026
Year 3: August 14, 2026 through August 13, 2027
Year 4: August 14, 2027 through August 13, 2028
Year 5: August 14, 2028 through August 13, 2029
Pricing as set forth in Section 1.e. 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.

6. 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 aggregate limit is used, either the general aggregate limity shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence 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 #23..
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7 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, 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.
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8 7. BONDS.

Prior to commencement of work on any individual project with an estimated cost of $25,000 or greater, CONTRACTOR shall furnish CITY, with the following separate surety bonds:
a. Payment Bond. CONTRACTOR shall furnish a separate surety bond in an amount equal to one hundred percent (100%) of the estimated cost of the specific project performed pursuant to Exhibit C of this AGREEMENT as security for the payment of all persons name in California Civil Code Section 9100 for furnishing materials, provisions, or other supplies, or items, used in, upon, for, or about the performance of the work contracted to be done; or for performing any work or labor thereon of any kind, and for the payment of amounts due under the Unemployment Insurance Code with respect to such work or labor in connection with this AGREEMENT and for the payment of a reasonable attorney's fee to be fixed by the court in case suit is brought upon the bond in accordance with the requirements of Civil Code section 9554. The Payment bond shall be in the form attached hereto as Exhibit “D”, and incorporated herein, or on such other form approved by CITY and shall be secured from a surety or sureties satisfactory to CITY.

8. 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 45 Days via manual check”. 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]
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9 At a minimum, invoices shall state the following:
 This AGREEMENT 276886
 CITY department/division name and address
 Billing period
 Service hours worked day and week
 Unit price, extended price, sales tax and total

9. 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 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.

10. 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.
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10 11. 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.

12. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced 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 Bid submittal;
c. IFB No. 2324-74
d. Contractor’s City of Modesto business license
e. Payment Bond
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11 13. 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; 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 #23..
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12 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 date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES. #23..
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13 14. 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.

15. 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.

16. 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 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 #23..
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14 CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550- 4554).

17. 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.

18. 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.

19. 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.

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:

Rodolfo Ruvalcaba
United Pavement Maintenance, Inc
7017 Hughson Ave.

Hughson, CA. 95326
(209) 883-4345
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15 [email protected]

CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

21. 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.

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

23. 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.

24. 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.

25. 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, 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 #23..
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16 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.

26. 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.
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17 27. 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.

28. 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.

29. 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.

30. 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.

31. ASSIGNMENT:
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18 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.

32. 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.

33. HEADINGS NOT CONTROLLING:

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

34. MISCELLANEOUS:

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

35. 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 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.

36. PARTIAL INVALIDITY:
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19 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 United Pavement Maintenance, Inc. as caused this Agreement to be duly executed.
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20 SAMPLE CITY OF MODESTO

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS: That we
of
as Principal, and , a surety authorized to
transact surety business in the State of California, as Surety, are held and firmly bound unto CITY OF MODESTO, CALIFORNIA, as Obligee, in the sum of
Dollars ($ ), for the
payment whereof, well and truly to be made, said Principal and Surety bind themselves, their heirs, administrators, successors and assigns, jointly and severally, firmly by these presents.

WHEREAS, the condition of the foregoing obligation is such that, whereas the above-bounden Principal has entered into a contract dated , 20 , with the Obligee to do and perform the following work, to wit:

PROJECT NAME
NOW, THEREFORE, if the above-bounden Principal or a subcontractor fails to pay any of the persons named in Section 9100 of the Civil Code of the State of California, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code of the State of California, with respect to such work and labor, the Surety will pay for the same, and also, in case suit is brought upon this bond, a reasonable attorney's fee, to be fixed by the Court.

This bond shall inure to the benefit of any and all persons, companies or corporations entitled to file claims under Section 9100 of the Civil Code of the State of California, so as to give a right of action to them or their assigns in any suit brought upon this bond.

The Surety herein, for value received, hereby stipulates and agrees that no change, extension of time, alteration, addition or modification to the terms and conditions of said contract, or the specifications accompanying the same, shall in any manner affect its obligation on this bond, and said Surety does hereby waive notice of any such change, extension, alteration or addition.

SIGNED and SEALED this day of , 20 .
(SEALS)
Name of Principal (Signature must be notarized)
Title
Name of Principal (Signature must be notarized)
Title
Surety
By
Attorney-in-Fact (Signature must be notarized)
Address to which notices to Surety should be sent:

APPROVED AS TO FORM:

By
JOSE M. SANCHEZ, City Attorney
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1 ANNUAL ON-CALL AGREEMENT 276888
WESTSIDE LANDSCAPE & CONCRETE, INC.

CONCRETE- CURB GUTTER AND SIDEWALK REPLACEMENT SERVICES 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 WESTSIDE LANDSCAPE & CONCRETE, INC, hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 2024-______ authorizing the Award of Bid and agreement for the CONCRETE – CURB, GUTTER AND SIDEWALK REPLACEMENT SERVICES, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal 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 CONCRETE – CURB, GUTTER AND SIDEWALK REPLACEMENT SERVICES as described in IFB 2324-74 attached hereto as Exhibit “C” and made a part hereof (hereinafter called IFB).

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

1. THE WORK:
a) CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, and #23..
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2 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. All work conducted as part of this contract shall comply with the City of Modesto, Standard Specifications, Latest Edition. A digital copy of these specifications can be downloaded directly via https://www.modestogov.com/2143/Standard-Specifications 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 $862,500.00. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $4,312,500.00. 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 Bid attached hereto as Exhibit B. Without limiting the foregoing, in no event shall the cost for any particular project completed by the CONTRACTOR pursuant to Exhibit C exceed One Hundred Thousand Dollars ($100,000). #23..
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3 AGREEMENT PRICING
Item Description Unit Pricing of Prevailing Wages Required of
Issue Unit Price
Curb and Gutter (include demolition and saw cutting) Linear Foot $____ 128.25_____/LF
Sidewalk, Taper and Transition Apron at 4”
Square
Foot
$_______21.37_____/SF
Drive Apron (include demolition, saw cutting and 6”
thick concrete
flatwork)
Square
Foot
$_______27.31___ _/SF
Asphalt Concrete (include demolition and saw cutting)
at 4” Square
Foot
$_______48.45______/SF
Additional Concrete Flat Work, 4” Thick with Rebar
(MIN 100 sq ft)
Square
Foot
$_______15.05______/SF
Additional Concrete Flat Work, 5” Thick with Rebar
(MIN 100 sq ft)
Square
Foot
$_______17.31_ ____/SF
Item Description Unit Pricing of Prevailing Wages Required of
Issue Unit Price
Additional AC Pavement over 3’ (include demo and
saw
cutting) at 4”
Square
Foot
$_______51.00______ /SF
Installing Root Barrier, 12”H x 24” L
(root barrier provided by City) (no trenching required) Each $_______66.50____ _/EA ADA Access Ramp
(cast iron truncated dome)
Each $______ 4,500.00 __ _/EA
Alternate Pricing
Forming, pouring, form removal and backfilling
Payment of Prevailing Wages Required
Item Description Unit of Issue Unit Price
Curb and Gutter Linear Foot $_______ _120.65_____________/LF Sidewalk, Taper and Transition
Apron Square Foot
$ ____21.37_____________ /SF
Drive Apron Square Foot $__________26.60___________ _/SF Additional AC Pavement
Square Foot $__________48.45___________ _/SF
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4 Item Description Unit of
Issue
Price A
Install and
Demo
Price B NEW
4” concrete paving with welded wire mesh – “4”
Concrete Paving
16-99 SF (16 SF Minimum) SF $17.21 $16.00
100-499 SF SF $17.00 $15.85
500-999 SF SF $16.80 $15.35
1, 000-1,999 SF SF $16.50 $15.10
2,000 + SF SF $15.05 $13.00
5” sidewalk concrete paving with rebar – “5” Concrete
Paving
16-99 SF (16 SF Minimum) SF $24.00 $22.00
100-499 SF SF $23.00 $21.00
500-999 SF SF $22.00 $19.00
1, 000-1,999 SF SF $21.00 $18.00
2,000 + SF SF $17.31 $16.85
Concrete Playground Ramp –“Playground Ramp” Per Ramp $6,200.00 $4,989.00 Concrete Playground Curb – “Playground Curb”
10-49 LF (10 LF Minimum) LF $145.00 $138.00
50-99 LF LF $140.00 $133.00
100 + LF LF $138.00 $127.00
Concrete Mow Band – “Concrete Mowband”
10-49 LF (10 LF Minimum) LF $110.22. $101.22
50-99 LF LF $105.22 $95.00
100 + LF LF $101.22 $91.00
Concrete Grinding per LF for tripping hazards of ½” to
2” elevation change
10-49 LF (10 LF Minimum) LF $48.00 $48.00
50 + LF LF $45.00 $45.00
Asphalt Grinding per LF for tripping hazards of ½” to 2” elevation change
10-49 LF (10 LF Minimum) LF $48.00 $48.00
50 + LF LF $45.00 $45.00
Additional Services:

Payment Bond: $_________________________________________________________ /Year #23..
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5 2. PREVAILING WAGES:

In accordance with California Labor Code Section 1771, CONTRACTOR shall pay all workers, and shall ensure its subcontractors pay all of their workers, engaged in performing the services described in Exhibit “C” not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the services described in Exhibit “C” are to be performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work as provided in the California Labor Code. In accordance with California Labor Code Section 1773.2, the City has obtained the general prevailing wages in the locality in which the services described in Exhibit A are to be performed for each craft or type of work needed to be as published by the State of California Department of Industrial Relations, Division of Labor Statistics and Research, a copy of which is on file in the CITY’s Purchasing Department and shall be made available on request. Contractor must comply with all applicable laws and regulations that apply to wages earned in performance of the services described in Exhibit “C”, including those set forth in Labor Code section 1770 et. seq. and in the IFB.

DIR Project ID#: 528333

3. CITY REPRESENTATIVE:
 Public Works - Streets Services: John Sphar, Streets Manager, (209) 342-2235, [email protected]
 Parks, Recreation, and Neighborhoods: Nathan Houx, Parks Planning and Development Manager, (209) 571-5526, [email protected]
 Utilities Department – Water Services Division: Jeremy Parnell, Water Superintendent, (209) 342-4599, [email protected]
 Utilities Department – Wastewater Division: Jeff Daniels, Wastewater Division Manager, (209) 577-6255, [email protected]
 Purchasing Contact: Mark E. Bolden, (209) 571-5839, [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. #23..
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6 4. CONTRACTOR CONTACT: Jaime Alvarado, Estimator/Project Manger, (209) 862-3908, [email protected]

5. 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: August 14, 2024 through August 13, 2025
Year 2: August 14, 2025 through August 13, 2026
Year 3: August 14, 2026 through August 13, 2027
Year 4: August 14, 2027 through August 13, 2028
Year 5: August 14, 2028 through August 13, 2029
Pricing as set forth in Section 1.e. 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.

6. 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 aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the #23..
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7 general aggregate limit shall be twice the required occurrence 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, shall be placed with insurer(s) with acceptable Best's rating of A:VII or with approval of the CITY’s Risk Manager.
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8 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.

7. BONDS.

Prior to commencement of work on any individual project with an estimated cost of $25,000 or greater, CONTRACTOR shall furnish CITY with the following separate surety bonds:
a. Payment Bond. CONTRACTOR shall furnish a separate surety bond in an amount equal to one hundred percent (100%) of the estimated cost of the specific project performed pursuant to Exhibit C of this AGREEMENT as security for the payment of all persons name in California Civil Code Section 9100 for furnishing materials, provisions, or other supplies, or items, used in, upon, for, or about the performance of the work contracted to be done; or for performing any work or labor thereon of any kind, and for the payment of amounts due under the Unemployment Insurance Code with respect to such work or labor in connection with this AGREEMENT and for the payment of a reasonable attorney's fee to be fixed by the court in case suit is brought upon the bond in accordance with the requirements of Civil Code section 9554. The Payment bond shall be in the form attached hereto as Exhibit “D”, and incorporated herein, or on such other on a form approved by CITY and shall be secured from a surety or sureties satisfactory to CITY.

8. 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 terms via City’s ePay 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
#23..
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9 Email to: [email protected]
At a minimum, invoices shall state the following:
 This AGREEMENT 276888
 CITY department/division name and address
 Billing period
 Service hours worked day and week
 Unit price, extended price, sales tax and total

9. 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 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.

10. 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.
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10 11. 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.

12. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced 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 Bid submittal;
c. IFB No. 2324-74
d. Contractor’s City of Modesto business license
e. Payment Bond

13. 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:
#23..
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11 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; 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 #23..
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12 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 date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES.

14. 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.

15. 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.
#23..
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13 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.

16. 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 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).

17. 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.

18. 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.

19. 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 #23..
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14 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.

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:

Jaime Alvarado
Westside Landscape & Concrete, Inc.
27107 CA-33.

Newman, CA. 95360
Phone: (209) 862-3908 Cell: (209) 427-5778
[email protected]

CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

21. 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.

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

23. 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.

24. OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES: If mutually agreeable to all parties, the issuance of any resultant contract/purchase order referencing these specifications and #23..
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15 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.

25. 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, 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. #23..
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16 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.

26. 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.

27. 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.

28. 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.

29. 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 #23..
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17 capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this AGREEMENT to bind City to any obligation whatsoever.

30. 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.

31. 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.

32. 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.

33. HEADINGS NOT CONTROLLING:

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

34. MISCELLANEOUS:

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

35. 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, #23..
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18 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.

36. 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.
#23..
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19 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 Westside Landscape & Concrete, Inc. as caused this Agreement to be duly executed.
#23..
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20 SAMPLE CITY OF MODESTO

PAYMENT BOND
KNOW ALL PERSONS BY THESE PRESENTS: That we
of
as Principal, and
, a surety authorized to transact surety business in the State of California, as Surety, are held and firmly bound unto CITY OF MODESTO, CALIFORNIA, as Obligee, in the sum of Dollars ($ ), for the
payment whereof, well and truly to be made, said Principal and Surety bind themselves, their heirs, administrators, successors and assigns, jointly and severally, firmly by these presents.

WHEREAS, the condition of the foregoing obligation is such that, whereas the above-bounden Principal has entered into a contract dated , 20 , with the Obligee to do and perform the following work, to wit:

PROJECT NAME
NOW, THEREFORE, if the above-bounden Principal or a subcontractor fails to pay any of the persons named in Section 9100 of the Civil Code of the State of California, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code of the State of California, with respect to such work and labor, the Surety will pay for the same, and also, in case suit is brought upon this bond, a reasonable attorney's fee, to be fixed by the Court.

This bond shall inure to the benefit of any and all persons, companies or corporations entitled to file claims under Section 9100 of the Civil Code of the State of California, so as to give a right of action to them or their assigns in any suit brought upon this bond.

The Surety herein, for value received, hereby stipulates and agrees that no change, extension of time, alteration, addition or modification to the terms and conditions of said contract, or the specifications accompanying the same, shall in any manner affect its obligation on this bond, and said Surety does hereby waive notice of any such change, extension, alteration or addition.

SIGNED and SEALED this day of , 20 .
(SEALS)
Name of Principal (Signature must be notarized)
Title
Name of Principal (Signature must be notarized)
Title
Surety
By
Attorney-in-Fact (Signature must be notarized)
Address to which notices to Surety should be sent:

APPROVED AS TO FORM:

By
JOSE M. SANCHEZ, City Attorney
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1 INVITATION FOR BIDS (“IFB”) NO. 2324-74
FOR

CONCRETE- CURB GUTTER AND SIDEWALK REPLACEMENT SERVICES BID OPENING: May 21, 2024 at 11:00 A.M.

CITY OF MODESTO CONTACT: Mark Bolden, Buyer
E-MAIL ADDRESS: [email protected]
#23..
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INVITATION FOR BIDS # 2324-74
Concrete – Curb Gutter and Sidewalk
Replacement Services
2 Table of Contents PAGE
NOTICE TO BIDDERS ............................................................................................................................. 3 CALENDAR OF EVENTS ........................................................................................................................ 5 CITY CONTACT ....................................................................................................................................... 5 PRECEDENCE........................................................................................................................................... 5 VIRTUAL BID OPENING......................................................................................................................... 6 GENERAL BID REQUIREMENTS .......................................................................................................... 7 A. BID SUBMITTAL....................................................................................................................... 7 E. CITY ACCEPTANCE/REJECTION OF IRREGULAR BIDS:.................................................. 7 F. COMPLETE BID DOCUMENT:.................................................................................................... 7 G. COMPLIANCE/NON-COMPLIANCE:...................................................................................... 8 K. PREVAILING WAGE:................................................................................................................ 9 M. BID PROTEST AND APPEAL PROCEDURES:..................................................................... 10 BID SUBMITTAL CHECKLIST............................................................................................................. 15 BID FORM A - IFB ACKNOWLEDGEMENT .................................................................................. 16 BID FORM B – BIDDER COMPANY INFORMATION................................................................... 19 BID FORM C - PRICING SCHEDULE .............................................................................................. 21 BID FORM D – BIDDER EXCEPTIONS, CLARIFICATIONS, AMENDMENTS.......................... 26 BID FORM E – BIDDER CUSTOMER REFERENCES .................................................................... 27 BID FORM F - FINANCIAL INTEREST DISCLOSURE.................................................................. 29 BID FORM G – SUPPORT OF LOCAL VENDORS.......................................................................... 32 BID FORM H - BIDDER COMPANY HISTORY STATEMENT..................................................... 34 BID FORM I - ADDENDA ACKNOWLEDGEMENT ...................................................................... 35 BID FORM J – BIDDER WARRANTY STATEMENTS................................................................... 36 BID FORM K – BIDDER EXPERIENCE AND CERTIFICATIONS................................................ 37 BID FORM L - SUBCONTRACTOR LIST ........................................................................................ 38 TECHNICAL SPECIFICATIONS AND REQUIREMENTS ................................................................. 39

1.1 SCOPE OF WORK:........................................................................................................................ 39

1.2 REQUIRED LICENSES:................................................................................................................ 41 SAMPLE ANNUAL AGREEMENT - SERVICES............................................................................. 49 #23..
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INVITATION FOR BIDS # 2324-74
Concrete – Curb Gutter and Sidewalk
Replacement Services
3 NOTICE TO BIDDERS
NOTICE IS HEREBY GIVEN that the City of Modesto, County of Stanislaus, State of California (“City”), will receive at the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 sealed Bids (each, a “Bid”) from qualified Bidders (each, a “Bidder”) for the furnishing of curb, gutter and sidewalk replacement services for the City of Modesto - Multiple Departments. All equipment, materials, and supplies shall be furnished F.O.B. City of Modesto (delivery charges borne by Bidder, included in the Services pricing herein, and not separately charged to the City). Bidders are highly recommended to download all IFB documents from the City’s Purchasing Division website at http://www.modestogov.com/257/Contracting-Bid-Opportunities; such IFB documents shall include all specifications necessary for Bidders to submit a responsive Bid..

Each Bid shall be sealed and filed with the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 prior to May 21, 2024 at 11:00 A.M., at which time Bids will be opened, read and recorded.

The opening of bids will not be physically open to the public, but may be viewed simultaneously via video conferencing in the manner provided for herein. All Bids shall be available for review following City Council award approval at the Purchasing Division, 1010 Tenth Street, 5th Floor, Suite 5300, Modesto, CA 95354.

Bids will be received only at the address shown above, and prior to the time indicated. Any Bid received at or after said time and/or date, or at a place other than the stated address cannot be considered and will be returned to the Bidder unopened.

All Bids, whether delivered by an employee of the Bidder, U.S. Postal Service, courier or package delivery service must be received and time stamped at the stated address prior to the time designated.

The City Clerk’s time stamp shall be considered the official timepiece for the purpose of establishing the actual receipt of Bids. Bids will not be accepted by email or facsimile. The City of Modesto assumes no responsibility for delay in the delivery of the Bid. #23..
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4 On the outside of the Bid envelope and courier envelope, if any, the Bidder shall indicate the following:
“NAME AND ADDRESS OF BIDDER
BID IN RESPONSE TO INVITATION FOR BIDS # 2324-74
BID OPENING DATE: May 21, 2024 AT 11:00 A.M.”
Bidder must deliver your Bid by a preferred method to the appropriate location below:

MAIL TO: CITY CLERK DELIVER/ COURIER TO: CITY CLERK

CITY OF MODESTO CITY OF MODESTO
P.O. BOX 642 1010 10TH STREET,
SUITE 6600, MODESTO, CA 95353 MODESTO, CA 95354
The City reserves the right to reject any or all Bids or to waive any informalities or minor irregularities in a Bid.

No Bidder may withdraw its Bid for a period of 90 days after the date set for the opening thereof. #23..
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5 CALENDAR OF EVENTS
Event Date
IFB Issued Apri 19, 2024
Written Questions Due via Email April 30, 2024
Addendum Issued (if required) May 7, 2024 (approximate date) Bid Due Date & Time PRIOR 11:00 A.M. on Tuesday, May 21, 2024 Contract Award Approximately September, 2024

CITY CONTACT
All questions regarding these specifications, terms, and conditions shall be submitted in writing via email to the City’s Purchasing Division contact named on the cover page of this IFB (“City Contact”) by the date listed in the CALENDAR OF EVENTS above. The City will respond to pertinent questions through issuance of an Addendum to be available to all Bidders. All contact between Bidder and the City regarding the Bid process shall be through the City Contact. Attempts by the Bidder to contact other City personnel regarding this IFB and associated process may result in disqualification of the Bidder. Notwithstanding the foregoing, information intentionally or un-intentionally provided by any person other than the City Contact may not be correct and will not be binding upon the City.

BIDDER FAMILIARITY WITH SERVICE CONDITIONS
It is the responsibility of each Bidder to become familiar with all of the specifications, terms and conditions and the site condition (if applicable). The Bidder agrees to and acknowledges all IFB specifications, terms, and conditions and indicates the ability to perform by submission of a Bid. By the submission of a Bid, the Bidder certifies that if awarded a contract it will make no claim against the City based upon ignorance of conditions or misunderstanding of the specifications.

CALIFORNIA LABOR CODE SECTION 1771.1 (a)
The California Labor Code states that, “A contractor or subcontractor shall not be qualified to Bid on, be listed in a Bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a Bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” This IFB is subject to the registration requirement set forth above.

PRECEDENCE
Bidder agrees that any agreement resulting from City’s acceptance of its Bid, together with the terms in any City purchase order and associated specifications provided by the City to Bidder therewith, shall comprise the entire agreement between City and Bidder. Moreover, Bidder agrees that any additional or contrary terms contained in Bidder’s acknowledgement of, shall be null and void. #23..
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6 VIRTUAL BID OPENING
The City of Modesto will be broadcasting Bid openings live electronically via Microsoft Teams at 11:00 a.m. (Pacific Time) on Tuesday, May 21, 2024 the City Clerk Record of Bid document should be available on Planet Bids by the end of the same day.

The public Bid opening for this Invitation for Bids will be available using the URL link containing the Number and Title of the Bid on the cover page, provided below. By submitting your Bid for the abovestated IFB you acknowledge, understand, and agree to this modified Bid opening procedure.

Join on your computer or mobile app
Click here to join the meeting
Or call in (audio only)
+1 469-998-7409,,961656049# United States, Dallas
Phone Conference ID: 961 656 049#
https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NTI0YzBiMDMtNDQ0Yi00YjNlLWIwZjYtYzg4ZDVjMDdkM2Mz%40thread.v2 /0?context=%7b%22Tid%22%3a%22125ccacf-fc61-463c-9976-
189f876ff90b%22%2c%22Oid%22%3a%229715c333-c997-4dd7-8984-12cd4deaa705%22%7d Should you have any questions regarding this, please do not hesitate to contact the Purchasing Department Contact listed on the Cover Page.
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7 GENERAL BID REQUIREMENTS
A. BID SUBMITTAL: Bidders should submit one “inked” (preferably blue ink) signed original Bid document, plus one copy of the signed original Bid document, and one electronic copy submitted via USB. The original Bid document shall be clearly marked. Photocopies do not constitute an original Bid. FAILURE TO FURNISH AT LEAST ONE “INKED” SIGNED ORIGINAL BID DOCUMENT MAY RESULT IN DISQUALIFICATION.

B. CONFIDENTIAL BIDDER INFORMATION: It is the responsibility of the Bidders to identify information in their Bid submission that they may consider to be confidential under the California Public Records Act. To the extent that the City agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public.

C. BIDDER COSTS INCURRED IN RESPONDING TO IFB: All costs associated with the preparation and submission of a Bid shall be borne by the Bidder.

D. BIDDER EXCEPTIONS: All exceptions taken to this IFB and associated specifications shall be specifically and clearly identified on Exceptions, Clarifications and Amendments form.

Failure to comply with this provision may deem the Bid as non-responsive. Please review the Sample Agreement and make note on the Exceptions, Clarifications, and Amendments form for any changes. Exceptions taken shall not affect the overall performance and quality of equipment, materials and/or provision of Services required by the City. The Purchasing Manager or designated agent shall make the final decision regarding the acceptability of equipment, materials and/or provision of Services with exceptions.

E. CITY ACCEPTANCE/REJECTION OF IRREGULAR BIDS: An agreement shall be awarded to the Bidders whose Bids most closely satisfies the needs of the City and is deemed the most advantageous to the City. The City reserves the right to reject any or all Bids or to waive any informalities or minor irregularities in a Bid.

F. COMPLETE BID DOCUMENT: The following forms constitute the makeup of a complete Bid document and shall be signed wherever indicated and submitted to the City in the order listed ):
• Bid Form A - IFB Acknowledgement
• Bid Form B – Bidder Company Information
• Bid Form C - Pricing Schedule
• Bid Form D – Bidder Exceptions, Clarifications, Amendments • Bid Form E – Bidder Customer References
• Bid Form F - Financial Interest Disclosure
• Bid Form G – Support of Local Vendors
• Bid Form H – Bidder Company History Statement
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8 • Bid Form I - Addenda Acknowledgement Page (if applicable) • Bid Form J – Bidder Warranty Statements
• Bid Form K– Bidder Experience and Certifications
• Bid Form L - Subcontractor List
Failure to furnish any of these documents may result in disqualification.

G. COMPLIANCE/NON-COMPLIANCE: If Bidder cannot comply with a specification requirement in this IFB, note on the Exception, Clarifications, Amendments form of the specification paragraph, your exception, and your recommendation. The Purchasing Manager will evaluate your recommendation. If after evaluation it is determined that the Bidder is not in compliance with the specification, the Bid may be rejected.

H. PROPOSED PRICING FORMAT:
• The cost of labor, equipment, fuel, licenses, bonds, permits, and insurance necessary to perform the required provision of Services shall be included in Bid pricing, along with Bidder’s profit margin and any other cost factors.
• Unless otherwise stated, the Bidder agrees that, in the event of a price decline, the benefit of such lower pricing shall be extended to the City.
• The City of Modesto shall not pay mileage charges or travel time from the Contractor’s place of business to the job site, or from site to site, or for the Contractor’s travel time to pick up materials.
• Bidder shall use the pricing schedule provided in this IFB to present Bid pricing. No other form or format shall be accepted. Bid must be submitted on the Pricing Schedule provided. No alterations may be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the Exception, Clarification, Amendments Form.

I. AWARD OF BID:
• Contracts may be awarded to more than one company in order to meet the City’s needs. • The City reserves the right to decline to award any agreement if it is determined that the proposed pricing is not competitively priced based on similar agreements with public agencies within the State of California or if the bids received fail to meet the City’s requirements.
• The City reserves the right to select Bids, which best suits the City’s needs. In addition to price, consideration will be given to the quality and performance of the service to be #23..
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9 purchased, and the criteria listed in Modesto Municipal Code Section 8-3.203(f).

Regardless of City staff’s recommendation, the City Council reserves the right to award agreements to the Bidders that best suits the City’s needs as determined by the City Council whether or not said awards are consistent with City staff’s recommendation for award.

I. SUPPORT OF LOCAL VENDORS: Should the Bidder that submits the lowest responsive Bid or and would otherwise normally qualify to receive the Bid pursuant to Sections 8-3.203 and 8-

3.204 of the Modesto Municipal Code (MMC) not be a local business as defined herein, the lowest Bid or quote submitted by a local business that is within 5%of the lowest Bid, whether or not that Bidder is the second lowest Bidder, may be deemed to be the lowest Bidder if the local Bidder agrees to reduce its Bid to match the Bid or quote of the lowest Bidder in writing within five business days after notification by City Purchasing staff, provided that said local Bidder is deemed to be a responsible Bidder as determined by the Purchasing Manager. To qualify as a local Bidder, the Bidder must have a physical business location within the City of Modesto and a current City of Modesto business license.

J. INDEMNITY: The successful Bidder (the “Contractor”) will be required to hold the City, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgements or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of the Contractor, its agents, officers, employees, and volunteers relating to or during the performance of its obligations under this Bid. Contractor’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement for Contractor to procure and maintain a policy of insurance. With reference to the foregoing, the parties agree that all risk of loss, including but not limited to damages, property losses and defense of third-party suits, arising out of or relation to the operation of City-owned vehicles by Contractor’s employees will be apportioned to Contractor in accordance with the provisions contained in indemnity.

K. PREVAILING WAGE: Bidder’s workers must be paid no less than the prevailing wage rate as published by the State of California Department of Industrial Relations (DIR), and the successful Bidder shall maintain certified payroll. For additional information regarding Prevailing Wages, please contact the DIR at www.DIR.CA.gov or call its Labor Research and Statistics Unit, Prevailing Wage Unit at 415/703-4774. The City standards available at the following web address shall also apply to the performance of the Bid: City Standards Website:
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10 L. BIDDER REPRESENTATION: Bidder represents that:
• Bidder has had an opportunity to examine and has examined any and all of the documents, including specifications, any resultant contract and supporting data, and that it has, from the information contained in such documents, specifications, and data, fully acquainted itself with all conditions relevant to the work. • Bidder has made all reasonable investigations essential to a full understanding of the difficulties, which may be encountered in performing the work. • Bidder will complete the proposed provision of Services for the compensation stated in any resultant agreement.
• Bidder assumes full and complete responsibility for all conditions relevant to the proposed provision of Services and all risks in connection therewith. • Bidder represents that it is fully qualified to perform the proposed provision of Services in accordance with the terms of any resultant agreement within the time specified therein.

M. BID PROTEST AND APPEAL PROCEDURES: Bidders wishing to protest or appeal a contract award decision by the City of Modesto must follow the procedures provided in this section. Protests or appeals which are not submitted in accordance with these procedures will not be reviewed.

Definitions
For the purposes of these procedures: "Days" means working days in which City Hall is open for business, excluding holidays and weekends.
"Bid" includes the term "offer" or "proposal" as used in the context of formal, informal, or negotiated procurements.
"Announced Decision" includes the term “Notice of Intent to Award Letter”. Once the City has issued an Announced Decision, the date noted will begin the time that a Bidder may lodge a protest.

Protest Procedures
• Only a Bidder who has actually submitted a Bid is eligible to submit a protest against the City’s Announced Decision.
• Subcontractors are not eligible to submit bid protests. #23..
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11 • A Bidder may not rely on the bid protest submitted by another bidder, but must timely pursue its own protest.
• A written protest to an Announced Decision must be made to the City of Modesto's Director of Finance no later than ten days after the date of the Announced Decision. • The protest shall be delivered or sent by registered mail and received by the City by the deadline, or protest will be automatically rejected. Protestors who choose to be represented by legal counsel are responsible for the associated expenses. • The protest shall be accompanied by a certified or cashier's check in the amount of $300.00, (except for protests of Federally Funded agreements), made payable to the Clerk of the City of Modesto. Protests filed without the requisite fee will be rejected without any additional review.
• The protest filed with the Director of Finance shall:
a. Include the name, address, email address and business telephone number of the protestor;
b. Identify the protest by name, Invitation for Bid (IFB) or Request for Proposal (RFP) number, and IFB/RFP date;
c. The bid protest must contain a complete statement of the basis for the protest and all supporting documentation. The protest must refer to the specific portion or portions of the Contract Documents upon which the protest is based; d. Include all supporting documentation, if any. Documentation submitted after filing deadline will not be reviewed.
• Bid Protests: A Bidder shall follow, in order, the following steps:
a. Protest to Director of Finance: Upon receipt of a complete and timely protest, the Director of Finance shall review all the submitted materials and shall create and retain a written record of the review. The Director of Finance shall respond at least generally to each material issue raised in the protest not later than ten days after receipt of the protest. Notice of the Director of Finance's decision may be given by letter mailed through U.S. Postal Service.

All protests to the Director of Finance shall either be delivered to:

City Clerk’s Office
Attn: Director of Finance
1010 Tenth St. Suite 6600
Modesto CA 95354
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12 Or mailed to:

City Clerk’s Office
Attn: Director of Finance
PO Box 642
Modesto CA 95353
b. Appeal to Deputy City Manager: At the protestor’s discretion, the decision of the Director of Finance may be appealed in writing to the City of Modesto's Deputy City Manager(s) no later than ten days after the date of the Director of Finance’s Decision. The scope of the appeal shall be limited by the issues raised in the initial protest to the Director of Finance. The Deputy City Manager shall not be permitted to review any newly raised issues. The Deputy City Manager shall review the appeal, accompanying supporting documents, if any and the written records of the protest review by the Director of Finance. A written record of the Deputy City Manager's review shall be created and maintained. The Deputy City Manager shall give notice of their decision to the protestor within ten days after receipt of appeal.

Further protest appeals shall either be delivered to:

City Clerk’s Office
Attn: Deputy City Manager
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:

City Clerk’s Office
Attn: Deputy City Manager
PO Box 642
Modesto CA 95353
d. Appeal to City Council: Any protestor seeking to appeal to the decision of the Deputy City Manager may appeal in writing to the City Council by filing with the City Clerk a written notice of such appeal not later than ten days after the date of the Deputy City Manager's decision. The City Clerk will calendar the protest for Council hearing and give notice of the time and place of the hearing as provided in Modesto Municipal Code Sections 1-4.01 through 1-4.05. The City Council’s decision on the appeal shall be final.
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13 All protest appeals to the City Council shall either be delivered to:

City Clerk’s Office
Attn: City Council
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:

City Clerk’s Office
Attn: City Council
PO Box 642
Modesto CA 95353
e. Optional Alternative Process for Protests of Procurement Actions Exceeding $250,000: A Bidder protesting procurements exceeding $250,000 shall comply with the procedures contained herein, except that in lieu of appeal to the Deputy City Manager a protestor may request that the protest be heard and decided at an administrative hearing.

A written request for administrative hearing shall be accompanied by a certified or cashier's check in the amount of $1,500, (except for protests of Federally Funded projects); The request for hearing shall include the specific grounds of the appeal.

The City of Modesto shall select and engage an impartial and qualified person to act as hearing officer in the pending protest. The protestor shall have the right to twice reject the selected hearing officer, provided that the City is notified of such rejection within three days of notice to protestor of the name of the hearing officer.

The protest shall be heard not later than twenty days after receipt of protestor's request for hearing and the selection of a hearing officer. Protests not made in a timely manner shall be deemed withdrawn, unless the City and the protestor mutually agree otherwise in writing. The protestor’s failure to accept a hearing officer after the third attempt by City staff to identify an impartial hearing officer shall be deemed a withdrawal of the protest.

The costs of the hearing officer and expenses of the protest shall be borne by the protestor. The sums deposited with the request for hearing shall be credited to the costs of the hearing officer and other hearing expenses. #23..
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14 f. Mandatory Alternative Process for Protests of Procurements Obtained with Federal Funds: If the protested procurement involves federal funds, the Deputy City Manager, City Council, or hearing officer shall give notice, accompanying their respective decisions, to the protestor that he or she has the right to appeal to the appropriate federal agency, for which an agency name, contact (where available) and address shall be provided by City staff. Such an appeal shall be filed with the appropriate agency within seven business days of the dispatch or rejection notices to the protestor. Federal agencies may entertain protests alleging that the City has failed to adopt written protest procedures or has failed to follow such procedures. The City Council is the highest authority of the City of Modesto and its decisions are final. A disappointed Bidder for a contract involving expenditures of Federal funds shall have the right to appeal the City Council decision directly to the federal agency as described herein. #23..
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15 BID SUBMITTAL CHECKLIST

BID SUBMITTAL CHECKLIST
The Bidder shall provide a complete Bid in a sealed envelope by the required deadline on the Bid Opening Date. Failure to provide all the required documents may cause the Bid to be considered nonresponsive.

Bidder’s Bid must contain the following applicable elements completed and signed as described morefully herein. The following checklist is provided solely for Bidder’s use in reviewing the completeness of your submission:

COMPLETE BID ELEMENTS 
Bid Form A – IFB Acknowledgement
Bid Form B – Bidder Company Information
Bid Form C – Pricing Schedule
Bid Form D – Bidder Exceptions, Clarifications, Amendments Bid Form E – Bidder Customer References
Bid Form F – Financial Interest Disclosure
Bid Form G – Support of Local Vendors
Bid Form H – Bidder Company History Statement
Bid Form I – Addenda Acknowledgement
Bid Form J – Bidder Warranty Statements
Bid Form K – Bidder Experience and Certifications
Bid Form L – Subcontractor List

Bidder’s submission should include all City of Modesto forms. If any form is not applicable, Bidder should write or type “Not Applicable” on it but still include the form in your submission. #23..
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16 BID FORM A - IFB ACKNOWLEDGEMENT
The City is soliciting Bids from qualified firms (each a “Bidder” to fulfill the City’s requirements per the specifications, terms and conditions contained in this Invitation for Bids (“Invitation for Bids” or “IFB”).

This Bid Acknowledgement must be completed, signed by an authorized responsible officer or employee, dated and submitted with the Bid response. Obligations assumed by such signature will include the following:

1. Preparation of Bids: (a) All prices and notations must be printed in ink or typewritten. No erasures permitted. Errors may be crossed out and corrections printed in ink or typewritten adjacent and must be initialed in ink by person signing the Bid. (b) Quote price as specified in Bid. No alterations or changes of any kind shall be permitted to the Bid Form. Responses that do not comply shall be subject to rejection in total.

2. Failure to Submit Bid: If you are not submitting a Bid but want to remain on the mailing list and receive future Bids, complete, sign and return this Bid Acknowledgement and state the reason you are not pricing.

3. Taxes and Freight Charges: (a) Unless otherwise required and specified in the IFB, the prices quoted herein do not include Sales, Use or other taxes. (b) No charge for delivery, drayage, express, parcel post packing, cartage, insurance, license fees, permits, costs of bonds, or for any other purpose, except taxes legally payable by City, will be paid by the City unless expressly included and itemized in the Bid. (c) Amount paid for transportation of property to the City is exempt from Federal Transportation Tax. An exemption certificate is not required where the shipping paper shows the consignee as one (1) of the City; as such papers may be accepted by the carrier as proof of the exempt character of the shipment. (d) Articles sold to the City are exempt from certain Federal excise taxes. The City will furnish an exemption certificate.

4. Award: (a) Unless otherwise specified by the Bidder or the IFB gives notice of an all-or-none award, the City may accept any item or group of items of any Bid. (b) Bids are subject to acceptance by the City at any time within 45 days of opening, unless otherwise specified in the IFB. A Bidder shall not change its bid if accepted within such time. (c) A valid, contract based on the sample agreement attached to the IFB and the submitted bid shall be mailed, or otherwise furnished, to the successful Bidder within the time for acceptance specified, and such contract shall be a binding agreement without further action by either party. The contract shall be interpreted, construed and given effect in all respects according to the laws of the State of California.

5. Patent Indemnity: Bidders who do business with the City shall hold the City, its officers, agents and employees, harmless from liability of any nature or kind, including cost and expenses, for infringement or use of any patent, copyright or other proprietary right, secret process, patented or unpatented invention, article or appliance furnished or used in connection with the contract or purchase order.
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17 6. Samples: Samples of items, when required, shall be furnished free of expense to the City and if not destroyed by test may upon request (made when the sample is furnished), be returned at the Bidder’s expense.

7. Rights and Remedies of City for Default: (a) In the event any item furnished by the Bidder in the performance of the contract or purchase order should fail to conform to the specifications therefore or to the sample submitted by the Bidder with its Bid, the City may reject the same, and it shall thereupon become the duty of the Bidder to reclaim and remove the same forthwith, without expense to the City, and immediately to replace all such rejected items with others conforming to such specifications or samples; provided that should the Bidder fail, neglect or refuse to do so, the City shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding quantity of any such items. City may deduct from any moneys due or that may there after come due to Bidder, or send an invoice to the Bidder 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 Bidder fails to make prompt delivery as specified for any item, the same conditions as to the rights of the City to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government. (b) Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the Bidder. (c) The rights and remedies of the City provided above shall not be exclusive and are in addition to any other rights and remedies provided by law or under the contract.

8. Payment Terms and Methods: Bidder will be able to choose from either of the following payment methods and associated timings:
(a) Option A (Preferred): City of Modesto ePay Payment: This secure payment methodology is preferred by an increasing number of the City’s suppliers. On Net 30 day timing, you will receive a single-use Master Card number with a detailed remittance for each payment. You will process the payment though your POS/Card terminal. The payment remittance will be sent from [email protected] via email and will contain the following information:
• 16-digit credit card number
• Expiration date
• Security code
• Total dollar amount of invoices to be paid
• Invoices reference numbers and corresponding amounts
ePay results in small percentage rebate of 1.0% to the City through the card issuer. That rebate amount will be considered by the City in its evaluation of Bidder’s pricing proposal hereunder.

Information about enrolling in MasterCard ePay program can be obtained from the City’s contact listed on the Cover Page of this IFB.
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18 (b) Option B – Manual Check: On Net 45 Day timing, the City will mail a hardcopy check to Bidder. The payment will be deemed to have been made when the check envelope is mailed via US Postal Service First Class Mail. The timing of the mailing will be at the end of the Net 45 Day period. Additional time should be estimated by the Bidder for the check to be in transit, and to await deposit and clearance by Bidder staff.

9. California Government Code Section 4552: In submitting a Bid to the City, the Bidder offers and agrees that if the Bid is accepted, it will assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of Services, materials, or services by the Bidder for sale to the purchasing body pursuant to the Bid. Such assignment shall be made and become effective at the time the purchasing body tender’s final payment to the Bidder.

10. No Guarantee or Warranty: The City makes no guarantee or warranty as to the condition, completeness or safety of any material or equipment that may be traded under a contract or purchase order resulting from this Bid.

11. Two “Inked” Signed Original Bids Document Requested: Failure to furnish at least one “inked” signed original Bid document may result in disqualification. These must be accompanied by one copy and one electronic document recorded onto a USB storage device.

12. Minor Irregularities. The City reserves the right, in its sole discretion, to waive any informalities or minor irregularities in a Bid.

The undersigned acknowledges receipt of the referenced IFB and/or Addenda and offers and agrees to furnish the articles and/or services specified on behalf of the Bidder indicated in Bidder’s Bid Forms A through L, attached hereto and made a part hereof, for the pricing proposed on the Pricing Schedule.

Bidder Company Name:

Bidder Headquarters Address:

City/State/Zip:

Signature/Title/Date:
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INVITATION FOR BIDS # 2324-74
Concrete – Curb Gutter and Sidewalk
Replacement Services
19 BID FORM B – BIDDER COMPANY INFORMATION
A. Bidder Company Full
Legal Name
B. Bidder Company
Marketplace (or DBA)
Name
C. Type of Legal Entity: ___ Corporation, registered in ____________________ (State) ___ Limited Liability Company, registered in _________________(State) ___ Partnership, registered in ________________(State)
___ Sole Proprietorship, registered in ____________(State) ___ Other ___________________________________________(Describe) D. Headquarters Address
(Street Address, City,
State, Country, Postal
Code):

E. Website Address: www.___________
F. Contact Person Details: Name:

Title:

Phone (Office):

Phone (Mobile):

Mailing Address (Street Address, City, State, Postal Code):

Fax Number:

Email:

G. Federal Taxpayer
Identification Number
(TIN):

H. Dun & Bradstreet
(DUNS) Number:

I. Names and Titles of
Top Three Bidder
Officers:

J. Years in Business:

K. Bidder Office Address
Closest to City of
Modesto (Street
Address, City, State,
Country, Postal Code):
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INVITATION FOR BIDS # 2324-74
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Replacement Services
20 L. City of Modesto
Business License
Number (note –
provide only if
available now - - but
not required until any
contract begins):

M. State of California
Contractor License
Number and Expiration
Date (if available):

N. State of California
Department of
Industrial Relations
(DIR) Registration
Number and Expiration
Date (if available):
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INVITATION FOR BIDS # 2324-74
Concrete – Curb Gutter and Sidewalk
Replacement Services
21 BID FORM C - PRICING SCHEDULE

CURB GUTTER AND SIDEWALK REPLACEMENT SERVICES

CONTRACTUAL PRICE LIST
All labor, materials, equipment, tools, fuel, licenses, bonds, insurance and other expenses necessary for Bidder to perform the required services shall be included in Bid pricing. Bid must be submitted on the below Pricing Schedule provided. No alterations should be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on Bid Form D – Bidder Exceptions, Clarifications, Amendments.

The payment of Prevailing Wages is required for this project.

Item Description Estimated
Annual
QTY
Unit of
Issue
Pricing of Prevailing Wages Required
Unit Price Extended Price
Curb and Gutter (include
demolition and saw cutting)
1,570 Linear Foot $________________/LF $_______________/Total Sidewalk, Taper and Transition
Apron at 4” 17,130 Square
Foot
$________________/SF $_______________/Total
Drive Apron (include
demolition, saw cutting and 6”
thick concrete
flatwork)
1,500 Square
Foot
$________________/SF $_______________/Total
Asphalt Concrete (include
demolition and saw cutting) at
4”
1,700 Square
Foot
$________________/SF $_______________/Total
Additional Concrete Flat Work,
4” Thick with Rebar (MIN 100
sq ft)
100 Square
Foot
$________________/SF $_______________/Total
Additional Concrete Flat Work,
5” Thick with Rebar (MIN 100
sq ft)
100 Square
Foot
$_________________/SF $_______________/Total
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Replacement Services
22 Item Description Estimated
Annual
QTY
Unit of
Issue
Pricing of Prevailing Wages Required
Unit Price
Extended Price
Additional AC Pavement over
3’ (include demo and saw
cutting) at 4”
100 Square
Foot
$________________/SF $_______________/Total
Installing Root Barrier, 12”H x
24” L
(root barrier provided by City)
(no trenching required)
100 Each $________________/EA $_______________/Total
ADA Access Ramp
(cast iron truncated dome) 20
Each $________________/EA $_______________/Total
Total Price (Annual): $_____________/Total
Alternate Pricing
Forming, pouring, form removal and backfilling
Payment of Prevailing Wages Required
Item Description Unit of Issue Unit Price
Curb and Gutter Linear Foot $___________________________/LF Sidewalk, Taper and Transition
Apron Square Foot
$___________________________/SF
Drive Apron Square Foot $___________________________/SF Additional AC Pavement
Square Foot $___________________________/F
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23 Parks & Recreation Price
Pricing list for parks related concrete work, all labor, materials, fuel, tools, licenses, and insurance necessary to perform the required work shall be included in the bid pricing. Payment of prevailing wages is required.

Attached Detail for “Control Joints” applies to all concrete work in parks. All SF and LF payment calculations shall be for work located in close proximity, such as at the same address or nearby location. Two prices are requested, cost for installing each item including site preparation, temporary fencing, demolition, saw cutting and concrete protection (Price A) and another alternate price for installing each item new where no demolition or saw cutting is required (Price B).

Item Description Unit of
Issue
Price A
Install and
Demo
Price B
NEW
4” concrete paving with welded wire mesh – See
Attachment A detail “4” Concrete Paving”
16-99 SF (16 SF Minimum) SF
100-499 SF SF
500-999 SF SF
1, 000-1,999 SF SF
2,000 + SF SF
5” sidewalk concrete paving with rebar – See Attachment A detail “5” Concrete Paving”
16-99 SF (16 SF Minimum) SF
100-499 SF SF
500-999 SF SF
1, 000-1,999 SF SF
2,000 + SF SF
Concrete Playground Ramp – See Attachment A detail
“Playground Ramp”
Per Ramp
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24 Concrete Playground Curb – See Attachment A detail
“Playground Curb”
10-49 LF (10 LF Minimum) LF
50-99 LF LF
100 + LF LF
Concrete Mow Band – See Attachment A detail
“Concrete Mowband”
10-49 LF (10 LF Minimum) LF
50-99 LF LF
100 + LF LF
Concrete Grinding per LF for tripping hazards of ½” to
2” elevation change
10-49 LF (10 LF Minimum) LF
50 + LF LF
Asphalt Grinding per LF for tripping hazards of ½” to 2” elevation change
10-49 LF (10 LF Minimum) LF
50 + LF LF
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Replacement Services
25 Payment Terms:

Check which of the following payment terms/methodology Bidder accepts (a description of each can be found in Bid Form A – IFB Acknowledgement):

Choose One:
• Option A (Preferred): City of Modesto ePay Payment on Net 30 Day Timing: ___ Choose by checking () here. If selected, for bid comparison purposes, Bidder’s pricing will be reduced by the City of Modesto’s average ePay card program rebate percentage; or ePay Email Address: _____________________________
• Manual Check Payment Mailed by US Postal Service First Class Mail Only on Net 45 Day Timing:
___ Choose by checking () here.

THE undersigned acknowledges receipt of the referenced IFB and any associated Addenda and offers to furnish the articles and/or services specified, in accordance with the specifications, terms and conditions of this IFB and these Bid documents, for the pricing indicated on the Pricing Schedule.

Bidder Company Name:

Name of Bidder Signatory:

Signature of Bidder Representative:
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26 BID FORM D – BIDDER EXCEPTIONS, CLARIFICATIONS, AMENDMENTS Exceptions to the City of Modesto’s IFB package, sample agreement, and associate specifications are not encouraged and may cause Bidder to be considered not responsible and/or its Bid to be considered not responsive. Therefore, if no exceptions, clarifications or amendments are proposed by Bidder, it is preferred that Bidder so indicate by typing or writing “Not Applicable” in the Description field in the first item row below. Less preferred, Bidder may indicate no exceptions, clarifications or amendments are proposed by leaving this form out of its’ Bid submission.

Nonetheless, Bidder may request Bid clarifications and exceptions below, if any, sign and submit with your Bid response.

Any requested exception, clarification or amendment may not be accepted and may deem the Bidder as non-responsive.

Item # Reference To: Description
Page # Section or
Paragraph #
Bidder Company Name:

Name of Bidder Signatory:

Signature of Bidder Representative:
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27 BID FORM E – BIDDER CUSTOMER REFERENCES
Bidder must provide a list of five current or former customers able to discuss prior experience with similar type of services requested by the City in the above-referenced IFB. Bidder’s references shall have similar volume and requirements to the City of Modesto’s as described in the above-referenced IFB. Bidders failing to provide references may be deemed as non-responsive.

The City may contact some or all of the references provided in order to determine the Bidder’s performance record on services similar to that described in the above-referenced IFB. The City reserves the right to contact references other than those provided in Bidder’s submission and to use the information gained from them in the award process.

Company Name:

Address:

City, State, Zip Code:

Contact Person:

Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Service:

Annual Contract Value $
Company Name:

Address:

City, State, Zip Code:

Contact Person:

Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Services:

Annual Contract Value $
Company Name:

Address:

City, State, Zip Code
Contact Person:
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28 Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Services:

Annual Contract Value $
Company Name:

Address:

City, State, Zip Code
Contact Person:

Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Services:

Annual Contract Value $
Company Name:

Address:

City, State, Zip Code
Contact Person:

Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Services:

Annual Contract Value $
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29 BID FORM F - FINANCIAL INTEREST DISCLOSURE
Any contract award to result from this IFB process and Bidder’s submission of a Bid therewith will require approval by a majority vote of the City of Modesto’s City Council. In order to have full transparency in any City of Modesto commercial actions, the City Council may not approve an agreement between the City and the Bidder until all person with a direct or indirect financial interest of greater than $2,000 in the Bidder are identified by name.

Bidder must therefore complete this Bid Form F – Financial Interest Disclosure, listing by name all parties that have a material financial interest in the agreement, contract or development right.

PLEASE NOTE, any Council action that requires a Financial Interest Disclosure cannot be considered by the City Council until the required reporting is made. That means that City Council agenda items without the disclosure will be removed from the Council agenda.

Financial Interest Disclosure to City of Modesto
The Bidder shall identify any person with a financial interest in the Bidder by name, below.

For the purposes of this disclosure, a “Financial Interest” shall have the meaning contained in Modesto Municipal Code section 2-10.02.

Persons having an aggregate economic interest in the Bidder less than two thousand dollars ($2,000.00) at all times prior to final Council action of the proposed contract are not required to be listed on the Financial Interest Disclosure.

Notwithstanding the foregoing, a Financial Interest Disclosure is not required for a Bidder meeting the financial criteria for listing on the New York or the Pacific Stock exchanges unless it is reasonably foreseeable that a City Council decision will increase or decrease that entity's gross revenues or expenses by one million dollars ($1,000,000) or more and the requirements of Modesto Municipal Code Section 2-

10.03(h) are satisfied.

It is the legal obligation of all applicants for approval of an agreement or of an application for development rights to verify in writing, under penalty of perjury, that the identity of each person having a material financial interest in the Bidder is true, correct and complete. By signing below, the applicant understands that this information is provided under penalty of perjury, and that intentionally supplying misinformation or deception may result in either invalidation of the agreement or application, or criminal prosecution for misdemeanor violation of the Modesto Municipal Code, or both. Negligent provision of misinformation shall be grounds for invalidation. In accordance with the Modesto Municipal Code, each applicant has a continuing obligation to maintain the truth, accuracy and completeness of the financial interest disclosure information provided below until after final consideration by the City Council of any matter arising out of or relating to the agreement or application.

Print Names of Persons Having a Financial Interest in Bidder Receiving this Agreement:
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30 First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
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31 By signing this document, I agree to the information contained within.

Bidder Company Name:

Name of Bidder Signatory:

Signature of Bidder Representative:
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32 BID FORM G – SUPPORT OF LOCAL VENDORS
Notice Pursuant to Modesto Municipal Code section 8.3-206 - Should the Bidder which submits the lowest responsive Bid (and would otherwise normally qualify to receive the Bid pursuant to Sections 8-3.203 and 8-

3.204 of the Modesto Municipal Code) not be a local business as defined herein, the lowest Bid or quote submitted by a local business that is within five percent (5%) of the lowest Bid or quote, whether or not that Bidder is the second lowest Bidder, may be deemed to be the lowest Bidder if the local Bidder agrees to reduce its Bid to match the Bid of the lowest Bidder in writing within five business days after notification by City Purchasing staff, provided that said local Bidder is deemed to be a responsible Bidder as determined by the Purchasing Manager.

Notwithstanding the foregoing, award to the local Bidder must still be approved by the City Council as would have the typical award.

To qualify as a local Bidder, the Bidder must have a physical business location within the City of Modesto and a current City of Modesto business license.

This document is only required should the Bidder request to be considered for the Support of Local Vendor preference, and meets the criteria noted above.
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Replacement Services
33 Check here:

I declare I am a local business per the above criteria
Bidder Company Name:

City of Modesto Address (Street,
City, State, Postal Code:

City of Modesto Business License
Number:

Under penalty of perjury, the undersigned declares that the foregoing information is true and correct:

Print/Type Name:

Title:

Signature:

Date:
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Replacement Services
34 BID FORM H - BIDDER COMPANY HISTORY STATEMENT
Bidder shall have been in business for a minimum of three continuous years (immediately prior to the time of the City’s solicitation) providing the services described in this Invitation for Bids (IFB).

The Bidder’s company history overview statement shall be approximately one to three pages in length and inserted below:

Bidder Company Legal Name: Insert Bidder Logo Here (if existent):

Insert Bidder Company History Overview Statement Beginning Here:
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35 BID FORM I - ADDENDA ACKNOWLEDGEMENT
In order to obtain any addenda information, throughout the IFB period, Bidder is responsible for regularly checking the City of Modesto’s Planet Bid website at https://pbsystem.planetbids.com/portal/14999/bo/bosearch for the IFB number listed on the Cover Page and in the header of each subsequent page of this IFB, and in any event, no later than the day prior to Bid opening.. The changes identified in any addenda issued will modify this IFB and specifications. The addenda now become a part of this IFB and Bidder’s resultant Bid.

Signing the Bid on the signature portion thereof, the Bidder is acknowledging that the Bidder has confirmed that it has received all addenda issued for IFB, and has included costs for such in the Bid submitted. Failure to list and acknowledge all addenda numbers may cause Bidder’s Bid to be considered nonresponsive.

Do not attach any of the addenda to this sheet nor include them with the Bid.

If no addenda have been issued against this IFB solicitation, Bidder may write “Not Applicable” and return this Bid Form as part of its submission. Alternatively, Bidder may leave this Bid Form out of its submission.

But if any addenda have been issued by the City of Modesto this document is required to be completed and returned.

The Bid is submitted with respect to the changes to the IFB included in addenda numbers:

List All Addenda Numbers, Separated by Commas
(“,”):

Bidder Company Name:
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36 BID FORM J – BIDDER WARRANTY STATEMENTS
As a material part of its Bid, Bidder shall insert below a written statement detailing any materials and workmanship warranties, term and conditions in conformance with the specifications and requirements set forth in this IFB.

Notwithstanding any other provisions of this IFB, Bidder warrants that the materials, supplies, or other services furnished under any contract or purchase order resulting from its Bid shall be on the most suitable grade and meet or exceed the standards set forth in this IFB. Such warranty shall include the following; performance, workmanship, labor, materials, and Bidder design or engineering contributions. If a defect is discovered in any item of the materials, assemblies, components, supplies or services covered in this Bid, Bidder shall correct at its sole expense, all such defects as are reported within 30 days of City’s final acceptance. Upon expiration of the applicable warranty period, all such liability shall terminate except for fraud or such gross mistakes as amount to fraud, latent defects, or specific failure to comply with the terms or any resultant purchase order.

All materials, parts, labor, assemblies and components shall by subject to the warranty conditions and terms unless specifically exempted in writing by the City of Modesto.

Bidder Company Legal Name: Insert Bidder Logo Here (if existent):

Insert Bidder Warranty Statement Beginning Here:
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Concrete – Curb Gutter and Sidewalk
Replacement Services
37 BID FORM K – BIDDER EXPERIENCE AND CERTIFICATIONS
Bidder shall provide below a summary covering the following:

A. Experience: The Contractor and its employees directly involved in providing inspections, services and repairs shall have a minimum of three years’ experience providing the types of services requested in this IFB:
i. Identify key personnel and their position within your organization. ii. Provide a biographical summary or resume detailing the experience, level of expertise and qualifications of the key individuals providing the types of services requested herein. iii. If you plan to subcontract work, you must also indicate in Bid Form L – Subcontractor List the name and address of each firm and the type of work or tasks the subcontractor will perform. Identify key personnel assigned to the project, their position, qualifications and representative experience.

B. Certifications: Bidder shall provide copies of all relevant certifications held for both company and any individuals required to perform the services requested herein. #23..
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38 BID FORM L - SUBCONTRACTOR LIST
Bidder shall list the name and the address of the place of business for each subcontractor who will perform work or labor or render services to the Bidder. In addition, list the type of work the subcontractor will perform, and; (if applicable) its Department of Industrial Relations (DIR) registration number and its California Contractor’s license number:

Name of
Subcontractor
Address Type of Work Contractor
License # (if any)
DIR
Registration #
(if any)
Bidder Company Name:
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INVITATION FOR BIDS # 2324-74
Concrete – Curb Gutter and Sidewalk
Replacement Services
39 TECHNICAL SPECIFICATIONS AND REQUIREMENTS

1.1 SCOPE OF WORK:

The Curb, Gutter, & Sidewalk Division is wanting to add a concrete contractor to assist with the overwhelming number of work orders caused by City tree damage. Currently, the City of Modesto has a backlog of 40,000 workorders for sidewalk repair. Out of the 40,000, we have 5,000 in need of replacement immediately. Over the past year, our contractor has completed about 25,000 square feet of sidewalk and about 5,000 linier feet of curb and gutter.

The City of Modesto, Public Works Department, Streets Division, requests the furnishing of curb, gutter, sidewalk, taper, transition apron, asphalt concrete, and AC pavement replacement, including the fabrication and installation of handicap access ramps, on an “as needed” basis throughout the year, budget permitting.

The Contractor shall furnish all labor, materials, equipment, fuel, tools, licenses, and insurance necessary to perform the services needed by the City of Modesto. The City of Modesto reserves the option of using City staff to perform the following work: saw cutting and remove old concrete and perform asphalt repairs. Or have Contractor do above tasks and include tree root removal, forming, pouring, form removal and backfilling on these jobs.

Work under any resulting contracts shall be performed under the general technical guidance and direction of the City Representative (CR). The CR 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 effected only by written changes to the contract, issued by the City of Modesto.

1.2 TECHNICAL REQUIREMENT FOR PARKS, RECREATION, AND NEIGHBORHOOD (PRN) The PRN Department has seven (7) separate detailed drawings as listed on ATTACHMENT A. • 4” PEDESTRIAN PAVING PAVING DETAIL #3
• 5” VEHICULAR CONCRETE PAVING DETAIL #1
• 4” PEDESTRIAN CONCRETE & 5” VEHICULAR CONCRETE
• PLAYGROUND RAMP
• PLAYGROUND CURB
• CONCRETE MOWBAND
• CONTROL JOINTS
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Replacement Services
40 General Specifications:

A. All work shall be constructed at locations specified by work request forms provided by the City.

B. The Contractor shall receive work requests via email. Each request shall specify the transmittal date type of work to be performed, quantity, and a calculated suspense date to complete the work (60) day calendar days. The work request shall act as the authorization to proceed with the job(s).

C. Curb, gutter, and/or sidewalk replacement shall be performed in a manner to provide the placement of the same within four (4) calendar days from the beginning of demolition. The asphalt concrete street patch shall be completed within four (4) calendar days of replacement.

Cleanup shall be completed after each operation day, i.e., demolition, forming, pouring, and paving.

D. Sawing shall be done as required at the limits of the work area where no cracks exist. The Contractor shall remove the sidewalk with care, avoid hooking large roots with the backhoe.

Contractor shall cut all roots with City approved root cutting equipment and remove all removable root debris from under sidewalk. The City of Modesto may postpone work as needed to have tree(s) removed by City tree crews where root cutting is not feasible.

E. Backfill areas immediately following the removal of forms and leave worksite clean. Slightly overfill next to lawn areas and carefully shape backfill to a uniform contour. The CR may delay the demolition of the next group of work requests until the work in progress is accepted.

Contractor is responsible for any damages incurred due to construction work on private property including but not limited to; sprinklers, fences, landscaping, etc.

F. The Contractor shall repave the street adjacent to the work. Where removal of pavement is required to construct the curb, pavement shall be saw cut 12” from the lip of the gutter, or as required by the CR, when cross-slope would be excessive. Excavating existing base to install 4” thick concrete sidewalk and 4” thick of compacted aggregate base. The pavement patch shall consist of asphalt concrete at a depth of 1” below/thicker than existing asphalt. Refer to City of Modesto Standard Specifications.

G. The CR shall determine when root barriers are to be installed. The barriers shall stretch 5’ on each side from the center of tree or what is specified by the City TL and will be provided by the City.

H. The Contractor shall use “Best Management Practices” according to the Storm Water Management Plan. This would require the Contractor to cover all relative/adjacent drains while construction is being performed on the curb, gutter, and sidewalk.

I. Wheelchair truncated domes meeting ADA requirements and City of Modesto specifications are required on curb replacement. The Contractor will be responsible for the purchase of all materials.

J. Contractor is responsible for notifying USA 811 North at least 72 hours prior to start of removal work.
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41 1.2 REQUIRED LICENSES:

Prior to beginning any service that shall be furnished under this specification, the Bidder shall secure the appropriate Business/Delivery license from the City of Modesto. Business/Delivery license information may be obtained by calling (209) 577-5389 or emailing [email protected]. The successful Bidder shall maintain a City of Modesto business license for the duration of the agreement.

1.3 TERM OF CONTRACT:

The term of the contract shall be for a period of two (2) years, with three (3) one-year extension options at the sole discretion of the City, for a total of five (5) years.

A. Pricing shall remain firm (other than fuel) for the first two (2) years of any contract, which may be awarded pursuant to this RFB.

B. Price adjustments for diesel fuel fluctuations may be considered. A thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division, and approved at the sole discretion of the City.

The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration:

Web site : HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/,California data.

C. Price increases (other than fuel) for subsequent contract years, three (3), four (4) and five (5), shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one (1) contract year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by Contractor(s) in writing, sixty (60) days prior to the annual anniversary date of the contract to be effective for the subsequent year.
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42 Attachment A
A.1
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43 A.2
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44 A.3
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45 A.4
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46 A.5
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47 A.6
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48 A.7
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49 SAMPLE AGREEMENT

SAMPLE ANNUAL AGREEMENT - SERVICES
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 _________________, a ______ _______, hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 2023-______ authorizing the Award of Bid and agreement for the CONCRETE – CURB, GUTTER AND SIDEWALK REPLACEMENT SERVICES, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal 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 CONCRETE – CURB, GUTTER AND SIDEWALK REPLACEMENT SERVICESas described in IFB 2324-74 attached hereto as Exhibit “C” and made a part hereof (hereinafter called IFB).

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

1. THE WORK:
a) CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, 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 $_________________. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $____________. 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 Bid attached hereto as Exhibit B.

AGREEMENT PRICING
Item Description Estimated
Annual
QTY
Unit of
Issue
Pricing of Prevailing Wages Required
Unit Price Extended Price
Curb and Gutter (include
demolition and saw cutting)
1,570 Linear Foot $________________/LF $_______________/Total Sidewalk, Taper and Transition
Apron at 4” 17,130 Square
Foot
$________________/SF $_______________/Total
Drive Apron (include
demolition, saw cutting and 6”
thick concrete
1,500 Square
Foot
$________________/SF $_______________/Total
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51 flatwork)
Asphalt Concrete (include
demolition and saw cutting) at
4”
1,700 Square
Foot
$________________/SF $_______________/Total
Additional Concrete Flat Work,
4” Thick with Rebar (MIN 100
sq ft)
100 Square
Foot
$________________/SF $_______________/Total
Additional Concrete Flat Work,
5” Thick with Rebar (MIN 100
sq ft)
100 Square
Foot
$_________________/SF $_______________/Total
Item Description Estimated
Annual
QTY
Unit of
Issue
Pricing of Prevailing Wages Required
Unit Price
Extended Price
Additional AC Pavement over
3’ (include demo and saw
cutting) at 4”
100 Square
Foot
$________________/SF $_______________/Total
Installing Root Barrier, 12”H x
24” L
(root barrier provided by City)
(no trenching required)
100 Each $________________/EA $_______________/Total
ADA Access Ramp
(cast iron truncated dome) 20
Each $________________/EA $_______________/Total
Total Price (Annual): $_____________/Total
Alternate Pricing
Forming, pouring, form removal and backfilling
Payment of Prevailing Wages Required
Item Description Unit of Issue Unit Price
Curb and Gutter Linear Foot $___________________________/LF Sidewalk, Taper and Transition
Apron Square Foot
$___________________________/SF
Drive Apron Square Foot $___________________________/SF Additional AC Pavement
Square Foot $___________________________/F
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52 Item Description Estimated
Annual
QTY
Unit of
Issue
Pricing of Prevailing Wages Required
Unit Price Extended Price
Curb and Gutter (include
demolition and saw cutting)
1,570 Linear Foot $________________/LF $_______________/Total Sidewalk, Taper and Transition
Apron at 4” 17,130 Square
Foot
$________________/SF $_______________/Total
Drive Apron (include
demolition, saw cutting and 6”
thick concrete
flatwork)
1,500 Square
Foot
$________________/SF $_______________/Total
Asphalt Concrete (include
demolition and saw cutting) at
4”
1,700 Square
Foot
$________________/SF $_______________/Total
Additional Concrete Flat Work,
4” Thick with Rebar (MIN 100
sq ft)
100 Square
Foot
$________________/SF $_______________/Total
Additional Concrete Flat Work,
5” Thick with Rebar (MIN 100
sq ft)
100 Square
Foot
$_________________/SF $_______________/Total
Item Description Estimated
Annual
QTY
Unit of
Issue
Pricing of Prevailing Wages Required
Unit Price
Extended Price
Additional AC Pavement over
3’ (include demo and saw
cutting) at 4”
100 Square
Foot
$________________/SF $_______________/Total
Installing Root Barrier, 12”H x
24” L
(root barrier provided by City)
(no trenching required)
100 Each $________________/EA $_______________/Total
ADA Access Ramp
(cast iron truncated dome) 20
Each $________________/EA $_______________/Total
Total Price (Annual): $_____________/Total
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53 Alternate Pricing
Forming, pouring, form removal and backfilling
Payment of Prevailing Wages Required
Item Description Unit of Issue Unit Price
Curb and Gutter Linear Foot $___________________________/LF Sidewalk, Taper and Transition
Apron Square Foot
$___________________________/SF
Drive Apron Square Foot $___________________________/SF Additional AC Pavement
Square Foot $___________________________/F
Item Description Unit of
Issue
Price A
Install and
Demo
Price B NEW
4” concrete paving with welded wire mesh – “4”
Concrete Paving
16-99 SF (16 SF Minimum) SF
100-499 SF SF
500-999 SF SF
1, 000-1,999 SF SF
2,000 + SF SF
5” sidewalk concrete paving with rebar – “5” Concrete
Paving
16-99 SF (16 SF Minimum) SF
100-499 SF SF
500-999 SF SF
1, 000-1,999 SF SF
2,000 + SF SF
Concrete Playground Ramp –“Playground Ramp” Per Ramp
Concrete Playground Curb – “Playground Curb”
10-49 LF (10 LF Minimum) LF
50-99 LF LF
100 + LF LF
Concrete Mow Band – “Concrete Mowband”
10-49 LF (10 LF Minimum) LF
50-99 LF LF
100 + LF LF
Concrete Grinding per LF for tripping hazards of ½” to
2” elevation change
10-49 LF (10 LF Minimum) LF
50 + LF LF
Asphalt Grinding per LF for tripping hazards of ½” to 2” elevation change
10-49 LF (10 LF Minimum) LF
50 + LF LF
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54 2. PREVAILING WAGES:

In accordance with California Labor Code Section 1771, CONTRACTOR shall pay all workers, and shall ensure its subcontractors pay all of their workers, engaged in performing the services described in Exhibit “C” not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the services described in Exhibit “C” are to be performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work as provided in the California Labor Code. In accordance with California Labor Code Section 1773.2, the City has obtained the general prevailing wages in the locality in which the services described in Exhibit A are to be performed for each craft or type of work needed to be as published by the State of California Department of Industrial Relations, Division of Labor Statistics and Research, a copy of which is on file in the CITY’s Purchasing Department and shall be made available on request. Contractor must comply with all applicable laws and regulations that apply to wages earned in performance of the services described in Exhibit “C”, including those set forth in Labor Code section 1770 et. seq. and in the IFB.

DIR Project ID#: _________________

3. CITY REPRESENTATIVE:

CITY Representative is:

Purchasing Contact: Carol Wattle, Buyer, (209) 577-5406 , [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. #23..
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55 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: 10/11/2024 through 10/10/2025
Year 2: 10/11/2025 through 10/10/2026
Year 3: 10/11/2026 through 10/10/2027
Year 4: 10/11/2027 through 10/10/2028
Year 5: 10/11/2028 through 10/10/2029
Pricing as set forth in Section 1.e. 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, 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 by registered mail, return receipt requested, 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. 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; #23..
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56 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, 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 #23..
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57 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 [TO BE DETERMINED BY IFB RESPONSE IN FINAL AGREEMENT, EITHER “Net 30 terms via CITY’s ePay Program” or “Net 45 Days via manual check”.]. 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 number
• CITY department/division name and address
• 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 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 #23..
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58 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 after the agreement administrator receives and has on file:

Proofs of insurance (approved by CITY Risk Manager); and Executed Agreement;
a. Resolution No.2023-_______;
b. CONTRACTOR Bid submittal;
c. IFB No. 2324-74
d. Contractor’s City of Modesto business license
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59 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 underthe Agreement, eitherin whole orin 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; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and #23..
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60 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 date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such #23..
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61 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 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 #23..
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62 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. #23..
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63 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:

CONTRACTOR:
__________________
__________________

__________________
__________________
__________________

CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
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64 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, 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 #23..
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65 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.

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 #23..
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66 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.

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. #23..
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67 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 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. #23..
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68 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.
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69 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement in duplicate 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 _____________________has caused this Agreement to be duly executed.

CITY OF MODESTO, CONTRACTOR
A municipal corporation
By: __________________________ By: _________________________________ JOSEPH P. LOPEZ, (Signature)
City Manager
By: _________________________________
(Name & Title)
ATTEST: Date: _______________________________
By: __________________________

DIANE NAYARES-PEREZ, CMC,
City Clerk

(SEAL)

APPROVED AS TO FORM:

By: ____________________________
JOSE M. SANCHEZ,
City Attorney
By: ____________________________
JOE F. RODRIQUEZ,
Risk Manager
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Pricing of Prevailing Wages Required UNIT OF
Item QTY ISSUE UN PRC EXTENSION UN PRC EXTENSION UN PRC EXTENSION UN PRC EXTENSION UN PRC EXTENSION UN PRC EXTENSION Description
Curb and Gutter (include demolition and saw cutting) 1570 Linear Foot $128.25 $201,352.50 $179.00 $281,030.00 $105.00 $164,850.00 $80.00 $125,600.00 Sidewalk, Taper and Transition Apron at 4” 17130 Square Foot $21.37 $366,068.10 $33.00 $565,290.00 $28.00 $479,640.00 $23.00 $393,990.00 Drive Apron (include demolition, saw cutting and 6” thick concrete flatwork) 1500 Square Foot $27.31 $40,965.00 $60.00 $90,000.00 $36.00 $54,000.00 $28.00 $42,000.00 Asphalt Concrete (include demolition and saw cutting) at 4” 1700 Square Foot $48.45 $82,365.00 $83.00 $141,100.00 $25.00 $42,500.00 $14.00 $23,800.00 Additional Concrete Flat Work, 4” Thick with Rebar (MIN 100 sq ft) 100 Square Foot $15.05 $1,505.00 $75.00 $7,500.00 $30.00 $3,000.00 $32.00 $3,200.00 Additional Concrete Flat Work, 5” Thick with Rebar (MIN 100 sq ft) 100 Square Foot $17.31 $1,731.00 $93.00 $9,300.00 $36.00 $3,600.00 $35.00 $3,500.00 Additional AC Pavement over 3’ (include demo and saw cutting) at 4” 100 Square Foot $51.00 $5,100.00 $83.00 $8,300.00 $25.00 $2,500.00 $14.00 $1,400.00 Installing Root Barrier, 12”H x 24” L (root barrier provided by City) (no trenching required) 100 Each $66.50 $6,650.00 $40.00 $4,000.00 $50.00 $5,000.00 $10.00 $1,000.00 ADA Access Ramp (cast iron truncated dome) 20 Each $4,500.00 $90,000.00 $14,780.00 $295,600.00 $7,500.00 $150,000.00 $8,000.00 $160,000.00 Sub Total $795,736.60 $1,402,120.00 $905,090.00 $754,490.00 Tax $0.00 $0.00 $0.00 $0.00
Total $795,736.60 $1,402,120.00 $905,090.00 $754,490.00 Alternate Pricing Forming, Pouring, Form Removal and Backfilling Item Description
Payment of Prevailing Wages Required
Curb and Gutter Linear Foot $120.65 Linear Foot Linear Foot $179.00 Linear Foot Linear Foot $80.00 Linear Foot $90.00 Sidewalk, Taper and Transition Apron Square Foot $21.37 Square Foot Square Foot $33.00 Square Foot Square Foot $20.00 Square Foot $25.00 Drive Apron Square Foot $26.60 Square Foot Square Foot $60.00 Square Foot Square Foot $28.00 Square Foot $30.00 Additional AC Pavement Square Foot $48.45 Square Foot Square Foot $83.00 Square Foot Square Foot $25.00 Square Foot $14.00 Total $217.07 $355.00 $153.00 $159.00
Parks & Recreation Price
Item Description ISSUE
Price A Install
and Demo Price B New
Price A Install
and Demo Price B New
Price A Install
and Demo Price B New
Price A Install
and Demo Price B New
Price A Install
and Demo Price B New
Price A Install
and Demo Price B New
4” concrete paving with welded wire mesh – See Attachment A detail “4” Concrete Paving”
16-99 SF (16 SF Minimum) SF $17.21 $16.00 $520.00 $406.00 $32.00 $26.00 $65.00 $60.00 100-499 SF SF $17.00 $15.85 $135.00 $106.00 $30.00 $21.00 $50.00 $45.00 500-999 SF SF $16.80 $15.35 $40.00 $32.00 $28.00 $19.00 $40.00 $35.00 1, 000-1,999 SF SF $16.50 $15.10 $30.00 $24.00 $26.00 $18.00 $30.00 $25.00 2,000 + SF SF $15.05 $13.00 $26.00 $21.00 $24.00 $15.00 $25.00 $20.00 5” sidewalk concrete paving with rebar – See Attachment A detail “5” Concrete Paving”
16-99 SF (16 SF Minimum) SF $24.00 $22.00 $650.00 $507.00 $38.00 $30.00 $70.00 $65.00 100-499 SF SF $23.00 $21.00 $170.00 $133.00 $33.00 $24.00 $55.00 $50.00 500-999 SF SF $22.00 $19.00 $50.00 $39.00 $31.00 $22.00 $45.00 $40.00 1, 000-1,999 SF SF $21.00 $18.00 $38.00 $30.00 $28.00 $20.00 $35.00 $30.00 2,000 + SF SF $17.31 $16.85 $33.00 $26.00 $26.00 $18.00 $30.00 $25.00 Concrete Playground Ramp – See Attachment A detail “Playground Ramp” Per Ramp $6,200.00 $4,989.00 $14,275.00 $11,500.00 $10,500.00 $7,500.00 $8,000.00 $7,500.00 Concrete Playground Curb – See Attachment A detail “Playground Curb
10-49 LF (10 LF minimum) LF $145.00 $138.00 $500.00 $400.00 $95.00 - $410.00 $400.00 50-99 LF LF $140.00 $133.00 $220.00 $175.00 $75.00 - $250.00 $240.00 100 + LF LF $138.00 $127.00 $140.00 $110.00 $65.00 - $180.00 $170.00 Concrete Mow Band – See Attachment A detail “Concrete Mowband” 10-49 LF (10 LF minimum) LF $110.22 $101.22 $365.00 $290.00 $75.00 - $380.00 $370.00 50-99 LF LF $105.22 $95.00 $225.00 $180.00 $60.00 - $220.00 $210.00 100 + LF LF $101.22 $91.00 $120.00 $95.00 $50.00 - $180.00 $170.00 Concrete Grinding per LF for tripping hazards of ½” to 2” elevation change
10-49 LF (10 LF minimum) LF $48.00 $48.00 $76.00 $76.00 $50.00 - $240.00 $240.00 50-99 LF LF $45.00 $45.00 $33.00 $33.00 $35.00 - $120.00 $120.00 Asphalt Grinding per LF for tripping hazards of ½” to 2” elevation change
10-49 LF (10 LF minimum) LF $48.00 $48.00 $280.00 $280.00 $35.00 - $200.00 $200.00 50 + LF LF $45.00 $45.00 $110.00 $110.00 $20.00 - $100.00 $100.00 Total $7,315.53 $6,032.37 Non-Responsive $18,036.00 $14,573.00 Non-Responsive $11,356.00 $7,713.00 $10,725.00 $10,115.00 HUGHSON, CA.

UNITED PAVEMENT

MAINTENANCE
MODESTO, CA.

PLATINUM DIRT WORX LLC
NEWMAN, CA. FARMINGTON, CA. OAKDALE, CA.

DIRT DYNASTY, INC.

ROMERO & SONS
CONSTRUCTION, INC.

WESTSIDE LANDSCAPE &

CONCRETE
RANCO CORDOVA, CA.

B & M BUILDERS, INC.
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4/23/2024 5:00:00 PM

OFFICE OF THE CITY CLERK

NOTICE OF SPECIAL MEETING
Please take notice that a special Closed Session meeting of the Council of the City of Modesto has been called pursuant to Section 2-1.02 of the Modesto Municipal Code to be convened on
TUESDAY, AUGUST 13, 2024 AT 3:30 PM
and after the regularly scheduled meeting in the Tenth Street Place, Chambers Conference Room, Basement Level, 1010 Tenth Street, Modesto, California.

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

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

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
One Case (Pursuant to Section 54956.9(d)(2) of the Government Code) CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
One Case (Pursuant to Section 54956.9(d)(4) of the Government Code)

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Pursuant to Section 54957 of the Government Code)
Title: City Manager
CONFERENCE WITH REAL PROPERTY NEGOTIATORS:
(Pursuant to Section 54956.8 of the Government Code)
Property: 601 Neece Dr., Modesto, CA 95351; APN: 102-012-001 and 102-012- 004
Property Owners: City of Modesto
Negotiating Parties:

For City: Joseph P. Lopez, City Manager
For Lessee: The Baseball Club of Modesto, LLC
Under Negotiation: Price and Terms of Lease
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BY ORDER OF THE CHAIR
/S
Diane Nayares-Perez, City Clerk
Posted pursuant to Government Code Section 54956 on the bulletin board at Tenth Street Place on at by
date time signature
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