Modesto City Council
May 13, 2025

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

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, May 13, 2025 at 5:30 PM
Roll Call - Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
* Public Comment will only be in-person. Members of the public who wish to address the Council, by providing public comment, during the meeting must do so in-person in the Council Chambers.

As an alternative, members of the public may also provide written public comment submitted via email as indicated in the Submitting Comments by Email instructions on this agenda. Zoom will still be available for viewing and Wordly translation.
*Members of the public will be allowed to provide public comment through Zoom if a Councilmember is participating remotely pursuant to the provisions of Assembly Bill 2449. *Effective March 1, 2023, if a technical issue arises with Zoom or the phone dial-in option, the Council meeting will continue unless the meeting is being held pursuant to the provisions of Assembly Bill 2449. Alternative viewing options are listed below, and the meeting is physically open to the public.
“Wordly” can translate into 25+ different languages! To access written translation during the meeting, please scan the QR Code or click this link https://attend.wordly.ai/join/RJDY-6364.
"Wordly" puede traducir a más de 25 idiomas diferentes! Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace https://attend.wordly.ai/join/RJDY-6364.
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You may observe a livestream of the meeting at http://media.modestogov.com. You may also view or listen to the meeting as indicated below.

THE MEETING CAN BE VIEWED BY ZOOM VIDEO

CONFERENCING OR TELEPHONE
Joining the City Council meeting via Zoom
The City of Modesto is now offering the ability to view Council meetings via telephonic conferencing via “Zoom” video conferencing computer technology. The meeting may be accessed through the use of Zoom using the following options:
 Enter the following link into an Internet Browser
https://us02web.zoom.us/j/95895497651
 Enter the following link into an Internet Browser https://zoom.us/ and using the Webinar ID: 958 9549 7651
 Passcode: 84326
To use Zoom, please visit: https://zoom.us/ and either sign-up for a free Zoom account or continue as a guest. Once you have downloaded the app onto your mobile device, joined from your web browser, or downloaded the Zoom software on your computer you will be ready for the upcoming Council meeting.

Joining the City Council meeting via Telephone
If you don’t have a smart phone or computer to access the meeting via Zoom, you can listen by phone, by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and enter the Webinar ID: 958 9549 7651 Passcode: 84326

SUBMITTING COMMENTS BY E-MAIL
Written comments may be submitted via email to: [email protected] (include Agenda Item Number in the subject line). All comments will be shared with the Councilmembers and placed in the record but will not be read aloud during the meeting. Written comments must be received two hours before the meeting.

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

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Clerk’s office during normal business hours. Such documents are also available online, subject to staff’s ability to post the documents before the meeting, at the following website https://www.modestogov.com/council-meetings In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, - 2 -
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programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Pledge of Allegiance to the Flag
Invocation: Jeremy Brown, Chaplain from Doctors Medical Center City Clerk’s Announcements
Declaration of Conflicts of Interest
Reports from Closed Session

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Proclamation declaring May 19th, 2025 as George Wallace Day in honor of the Modesto Fire Department’s 150th Anniversary. (Funding Source: Not Applicable) FIRE DEPARTMENT; Jessica Hampton, 209-342-4555, [email protected]

2. Proclamation declaring May 17th - 18th, 2025 as Relay for Life Days. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected]

3. Proclamation declaring May 18th - 24th as National Public Works Week for 2025. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected]

MISCELLANEOUS
Legislation, Appointments, Other

4. Consider accepting the resignation of Larry Sanders from the Citizen’s Housing and Community Development Committee. (Funding Source: Not Applicable) Staff Recommendation:
 Resolution accepting the resignation of Larry Sanders from the Citizen’s Housing and Community Development Committee.

CED; Edgar Garcia, 209-571-5101, [email protected]

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

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

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

Consent

5. Consider approving the minutes for the May 6, 2025 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving the minutes for the May 6, 2025 Council Meeting.

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

6. Consider approving Final Adoption of Ordinance 3794-C.S. approving the Modesto Police Department’s Military Equipment Use Policy (Policy 710) in accordance with Ca Assembly Bill 481, and approving the Purchase of additional equipment that qualifies as “Military Equipment” in Fiscal Year 2025-2026 and Rescinding Ordinance No. 3782-C.S. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving Final Adoption of Ordinance 3794-C.S. approving the Modesto Police Department’s Military Equipment Use Policy (Policy 710) in accordance with Ca Assembly Bill 481, and approving the Purchase of additional equipment that qualifies as “Military Equipment” in Fiscal Year 2025-2026 and Rescinding Ordinance No. 3782-C.S.

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

7. Consider approving the Third Amendment with CGI Technology and Solutions Inc., for the Software as a Service (SaaS) Agreement for the City of Modesto’s CGI Advantage Budget Software increasing the total Agreement amount by $60,500. - 4 -
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(Funding Source: All City Funds)
Staff Recommendation:
 Resolution approving the Third Amendment with CGI Technology and Solutions Inc., for the Software as a Service (SaaS) Agreement for the City of Modesto’s CGI Advantage Budget Software increasing the Agreement amount by $60,050 for a revised total amount not to exceed $1,675,850; and authorizing the City Manager or his designee to execute the Amendment.

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

8. Consider and review the Draft Budget as submitted by the City Manager with the Mayor’s Final Budget Modifications and combining the documents into the Proposed Budget for Fiscal Year 2025-26 and noticing a public hearing to be held on June 3, 2025, for Council’s consideration and adoption of the Fiscal Year 2025-26 Proposed Budget and related actions. (Funding Source: All City Funds) Staff Recommendation:
 Resolution combining the City Manager’s Draft Budget and the Mayor’s Final Budget Modifications into the Proposed Budget for Fiscal Year 2025-26 and noticing a public hearing to be held on June 3, 2025, for Council’s consideration and adoption of the Fiscal Year 2025-26 Proposed Budget and related actions.

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

9. Consider approving the recommended budget adjustments to Fiscal Year 2024-25 Annual Operating and Capital Improvement Program Budgets. (Funding Source:

Various Funds)
Staff Recommendation:
 Resolution amending Fiscal Year 2024-25 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager, to take the necessary steps to implement the provisions of this Resolution.

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

10. Consider a Cooperative Agreement with Caltrans for the Project Approval and Environmental Document (PA&ED) Phase of the Briggsmore Avenue at State Route

99. (Funding Source: Measure L and Regional Surface Transportation Program (RSTP))
Staff Recommendation:
 Resolution approving a Cooperative Agreement with Caltrans for the Project Approval and Environmental Document (PA&ED) Phase of the Briggsmore Avenue at State Route 99 and authorizing City Manager, or his designee, to execute the Cooperative Agreement.

ENGINEERING SERVICES; Toby Wells, 209-571-5542, [email protected] - 5 -
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Consent

11. Consider accepting the River Trunk Realignment Gravity System Project Rebid as complete, releasing securities, releasing payments totaling $22,185,635 to Ranger Pipelines, Inc., of San Francisco CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Wastewater Fund)
Staff Recommendation:
 Resolution accepting the River Trunk Realignment Gravity System Project Rebid as complete, releasing securities, releasing payments totaling $22,185,635 to Ranger Pipelines, Inc., of San Francisco CA, and authorizing the City Clerk to file a Notice of Completion.

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

12. Consider approving the Plans and Specifications for the 2024 Park Security Lighting Project, accepting the Bid and Awarding a Construction Contract to Modesto Executive Electric, Inc. of Modesto, CA, in the amount not to exceed $781,195. (Funding Source: Measure H)
Staff Recommendation:
 Resolution approving the Plans and Specifications for the 2024 Park Security Lighting Project, accepting the Bid and Awarding a Construction Contract to Modesto Executive Electrical, Inc. of Modesto, CA., in the amount of $697,495, authorizing $83,700, for contingency (if needed), for a total payment amount not to exceed $781,195, and authorizing the City Manager, or his designee, to execute the Agreement.
 Resolution amending the Fiscal Year 2024-25 Capital Improvement Program budget to fund Project #101518 (Preventative Maintenance – Measure H), Project #101517 (Deferred Maintenance – Measure H) and Project #101602 (24/25 Preventative Maintenance – Measure H) in an amount not to exceed $208,844 in transfers, revenue, and to budget expenditures to fund the project, and authorizing the City Manager, or his designee, to implement the provisions of this resolution.

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

13. Consider amending the Annual Commercial Cannabis Permit Fees and Application Fee for operational and non-operational approved Cannabis businesses, reestablishing the Cannabis Application Permit Fee as a refundable deposit and adopting the Commercial Cannabis Business Modification Request Deposits for changes in ownership and location. (Funding Source: Cannabis Fund)
Staff Recommendation:
 Resolution adopting an Amendment to the Annual Commercial Cannabis Permit Fee for City approved business, approving the Operational Annual Commercial Cannabis Permit Fee with an annual cost of $22,821 and the Nonoperational Annual Commercial Cannabis Permit Fee with an annual cost of $3,991.
 Resolution approving an amendment to the Commercial Cannabis Permit - 6 -
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Application Fee adjusting the fee to a $6,380 refundable deposit.  Resolution adopting Commercial Cannabis Business Modification Request deposits in the amount of $2,000 for changes in ownership and $5,000 for changes in location.

FINANCE DEPARTMENT; Gina Brown, 209-577-5381, [email protected] Consent

14. Consider accepting an Informational Report on the January and February 2025 Grant Applications and Awards. (Funding Source: Not Applicable) Staff Recommendation:
 Motion accepting an Informational Report for January and February 2025, Grant Applications.

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

15. Consider accepting an Informational Report for the March 2025 Accounts Payable Payment Register and Void Report. (Funding Source: Not Applicable) Staff Recommendation:
 Motion accepting an Informational Report for the March 2025 Accounts Payable Payment Register and Void Report.

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

16. Consider amending the Culture Commission bylaws. (Funding Source: General Fund) Staff Recommendation:
 Resolution amending the Culture Commission bylaws.

PRN; Diane Sheatsley, 209-577-5418, [email protected] Consent

17. Consider approving a Service Agreement with Trinity Rivard, Tampa, FL for the installation of the 150th Anniversary Mural in the amount of $25,000. (Funding Source: General Fund - Project 100880 - Art in Public Places) Staff Recommendation:
 Resolution approving a Service Agreement with Trinity Rivard, Tampa, FL for the installation of the 150th Anniversary Mural in the amount of $25,000, and authorizing the City Manager, or his designee, to execute the Agreement.

PRN; Diane Sheatsley, 209-577-5418, [email protected]

COUNCIL COMMENTS & REPORTS

CITY MANAGER COMMENTS & REPORTS
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HEARINGS
Published in the Modesto Bee on April 23, 2025

18. Hearing to consider a proposed Amendment to the Modesto Urban Area General Plan; Specific Plan Amendment No. 4 to the Tivoli Specific Plan; and Exceptions from the Tivoli Specific Plan’s development and design standards for the Martin Property (NRB Investments, LLC). (Funding Source: Developer Fees)
Staff Recommendation:
 Resolution amending the Modesto Urban Area General Plan to Amend the Land Use Element to change 12.66 acres from Regional Commercial uses to Residential uses. (NRB Investments, LLC).
 Resolution approving Specific Plan Amendment No. 4 to the Tivoli Specific Plan, and exceptions to the design standards for reduced setbacks and lot sizes for lots. (NRB Investments, LLC).

CED; Michael Hren, 209-577-5273, [email protected]
Published in the Modesto Bee on April 23, 2025

19. Hearing to consider the adoption of a proposed Development Agreement between the City of Modesto and DASCO Olivewood LLC regarding Area Plan No. 6 of the Tivoli Specific Plan. (Funding Source: Developer Funded)
Staff Recommendation:
 Resolution approving that the following subsequent project is within the scope of the Tivoli Specific Plan Final Environmental Impact Report (SCH 2005072125): Development Agreement by and between the City of Modesto and DASCO Olivewood LLC regarding Area Plan No. 6 of the Tivoli Specific Plan.
 Motion introducing and waiving the first reading of an Ordinance approving a Development Agreement by and between the City of Modesto and DASCO Olivewood LLC regarding Area Plan No. 6 of the Tivoli Specific Plan. (DASCO Olivewood LLC and City of Modesto).

CED; Katharine Martin, 209-577-5465, [email protected] Published in the Modesto Bee on April 30, 2025.

20. Hearing to consider a relocation request of CR & D Inc. from 439 Maze Boulevard to 1313 McHenry Avenue. (Funding Source: Cannabis Permit Application Fee) Staff Recommendation:
 Resolution approving the relocation request of CR & D Inc. from 439 Maze Boulevard to 1313 McHenry Avenue with the granting of a residential proximity waiver.

CED; Sean Rando, 209-577-5473, [email protected]
Published in the Modesto Bee on April 30, 2025.

21. Hearing to consider a relocation request of McHenry Business Services LLC from 500 East Glenn Avenue to 1300 North Carpenter Road Suite E and F. (Funding Source:

Cannabis Permit Application Fee)
Staff Recommendation:
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 Resolution approving the relocation request of McHenry Business Services LLC from 500 East Glenn Avenue to 1300 North Carpenter Road Suite E and F.

CED; Sean Rando, 209-577-5473, [email protected]

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

ADJOURNMENT
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on
at by
date time signature
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: March 26, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Citizens Housing and Community Development Committee Resignation CONTACT: Edgar Garcia, Community Development Manager
[email protected], (209) 571-5101
DESCRIPTION:

Consider accepting the resignation of Larry Sanders from the Citizen’s Housing and Community Development Committee. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The Modesto Citizens’ Housing & Community Development Committee (CH&CDC) consists of 11 members appointed by the City Council for a 4-year term. The CH&CDC serves as an advisory group to the City Council on matters related to housing and community development.

The Citizens Housing and Community Development Committee is responsible for providing overall review of the City of Modesto’s (City) housing and homelessness initiatives and making policy and funding recommendations which may include Community Development Block Grant (CDBG), Emergency Solution Grant (ESG), HOME Investment Partnerships (HOME), and other local, State, and Federal funded programs to the City Council.

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

DISCUSSION:

On January 28, 2025, by Resolution No 2025-035, Larry Sanders was appointed to the Citizen’s Housing and Community Development Committee with a term expiration date of December 31, 2028. On March 19, 2025, Larry Sanders formally resigned from the Citizen’s Housing and Community Development Committee.
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City Council, May 13, 2025
Citizens Housing and Community Development Committee Resignation

FISCAL IMPACT:

There is no fiscal impact related to this action.

COMMITTEE RECOMENDATION:

This item did not go to committee, all resignations go directly to City Council for acceptance.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the resignation of Larry Sanders from the Citizen’s Housing and Community Development Committee.

Approved by:

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

1. Resolution

2. Larry Sanders Resignation Letter
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05/13/2025/CED/EGarcia/Item X 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-

RESOLUTION ACCEPTING THE RESIGNATION OF LARRY SANDERS
FROM THE CITIZEN’S HOUSING AND COMMUNITY DEVELOPMENT

COMMITTEE
WHEREAS, the Citizen’s Housing and Community Development Committee was established to provide overall review of the City’s Housing and Urban Development (HUD) funds, and
WHEREAS, on January 8, 2025, by Resolution No. 2025-035, Larry Sanders was appointed to serve as a member of the Citizen’s Housing and Community Development Committee, and
WHEREAS, Larry Sanders has tendered his resignation from the Citizen’s Housing and Community Development Committee effective March 19, 2025.

NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Modesto hereby accepts the resignation of Larry Sanders from the Citizen’s Housing and Community Development Committee with regret.
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05/13/2025/CED/EGarcia/Item X 2 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May, 2025 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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Citizen's Advisory Group Letter of Resignation Submittal 03/19/2025 9:07 PM (PDT)
Citizen Advisory Group Letter of Resignation

In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website.

Larry Sanders
Modesto
Ca
95350

Citizens Housing Community Development Committee

Health reasons
Thank you for providing this information. After clicking ‘Submit’ you will receive a Submission ID number that can be retained for future reference.

You will be updated by our staff, if necessary, as your resignation form is processed.

Have a great day!
Submission ID: 1859327a-29e7-4a89-aa4e-755014ef9df6 Page 1/1 #4..
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MODESTO CITY COUNCIL
www.modestogov.com

MINUTES
City of Modesto

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, May 06, 2025 at 5:30 PM
Special City Council - Closed Session Meeting 4:32 p.m.:

Roll Call - Present: Councilmembers Bavaro, Ricci, Williams, Wright, Mayor Zwahlen

Absent: Councilmembers Alvarez, Escutia-Braaton
Regular City Council Meeting, 5:30 p.m.:

Roll Call - Present: Councilmembers Bavaro, Ricci, Williams, Wright, Mayor Zwahlen

Absent: Councilmembers Alvarez, Escutia-Braaton
Pledge of Allegiance to the Flag
Invocation: Rabbi Caitlin Bromberg, Congregation Beth Shalom City Clerk’s Announcements: None
Declaration of Conflicts of Interest: None
Reports from Closed Session: No Reportable Action

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Proclamation declaring May 4th-10th as National Public Service Recognition Week. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] #5..
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ACTION: Mayor Zwahlen presented a proclamation declaring May 4th-10th as National Public Service Recognition Week.

2. Proclamation declaring the month of May as National History Preservation Month. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] ACTION: Mayor Zwahlen presented a proclamation declaring the month of May as National History Preservation Month.

3. Proclamation declaring May as National Stroke Awareness Month. (Funding Source:

Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] ACTION: Mayor Zwahlen presented a proclamation declaring May as National Stroke Awareness Month.

PUBLIC COMMENT IN PERSON
 Arthur Fabela spoke in support of a stadium at the former Modesto golf course, highlighting the site's history and West Modesto's role in hosting community events. He proposed a fairground instead of residential development to preserve local culture, including graffiti shows and fireworks, and suggested a riverwalk and entertainment district near the river. He acknowledged upcoming city workshops on the issue.  Loretta Carhart raised concerns about poorly maintained sidewalks in Modesto, particularly near Graceada Park, and asked for clarification on whether the city or property owners are responsible. She also reminded everyone about upcoming Veterans Day and Mother’s Day.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS: 4-13, 15-20 (Wright/Bavaro; 5/0)

CONSENT
Consent

4. Consider approving the minutes for the April 22, 2025 Council Meeting. (Funding Source: Not Applicable)
 Motion approving the minutes for the April 22, 2025 Council Meeting.

CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Bavaro; 5/0) Motion approving the minutes for the April 22, 2025 Council Meeting.

Consent
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5. Consider reaffirming the City of Modesto’s relationship with the City of Aguascalientes, Mexico as a Sister City. (Funding Source: General Fund)  Resolution reaffirming the City of Modesto’s relationship with the City of Aguascalientes, Mexico as a Sister City.

CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-136 reaffirming the City of Modesto’s relationship with the City of Aguascalientes, Mexico as a Sister City.

Consent

6. Consider accepting the Payroll Internal Controls Review Report. (Funding Source: Not Applicable)
 Motion accepting the Payroll Internal Controls Review Report.

CITY AUDITOR; Colleen Rozillis, 206-302-6795, [email protected] ACTION: (Wright/Bavaro; 5/0) Motion accepting the Payroll Internal Controls Review Report.

Consent

7. Consider accepting the Utilities Fiscal Review Performance Audit Report. (Funding Source: Not Applicable)
 Motion accepting the Utilities Fiscal Review Performance Audit Report.

CITY AUDITOR; Colleen Rozillis, 206-302-6795, [email protected] ACTION: (Wright/Bavaro; 5/0) Motion accepting the Utilities Fiscal Review Performance Audit Report.

Consent

8. Consider approving Fiscal Year 2025-26 Engineer’s Report and setting a Public Hearing on June 24, 2025 for the levy and collection of assessments for landscape maintenance in the public right-of-way, street medians, and areas adjacent to the access control walls in Dry Creek Meadows Subdivisions Nos. 1-6. (Funding Source:

Landscape Maintenance Assessment District No. 1)
 Resolution accepting Fiscal Year 2025-26 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 1 for Dry Creek Meadows Subdivisions Nos. 1-6; Notice of Intention to Levy and Collect Assessments for Landscape Maintenance Assessment District No. 1 for Dry Creek Meadows Subdivisions Nos. 1-6 and setting a Public Hearing on June 24, 2025 to consider the Fiscal Year 2025-26 Levy and Collection of Assessments Within Landscape Maintenance Assessment District No. 1.

CED; Edgar Garcia, 209-577-5211, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-137 accepting Fiscal Year 2025-26 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 1 for Dry Creek Meadows Subdivisions Nos. 1-6; Notice of Intention to Levy and Collect Assessments for Landscape Maintenance Assessment District No. 1 for Dry Creek #5..
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Meadows Subdivisions Nos. 1-6 and setting a Public Hearing on June 24, 2025 to consider the Fiscal Year 2025-26 Levy and Collection of Assessments Within Landscape Maintenance Assessment District No. 1.

Consent

9. Consider approving the Fiscal Year 2025-26 Engineer’s Annual Report and setting a Public Hearing on June 24, 2025 for the levy and collection of assessment for landscape maintenance in the public right-of-way, street medians, and areas adjacent to the access control walls in Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision, and Yosemite Meadows Subdivisions Units 1 and 2. (Funding Source: Landscape Maintenance Assessment District No. 2)  Resolution accepting the Fiscal Year 2025-26 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision, and Yosemite Meadows Subdivisions Units 1 and 2; Notice of Intention to Levy and Collect Assessments for Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision, and Yosemite Meadows Subdivisions Units 1 and 2; and setting a Public Hearing on June 24, 2025 to Consider the Fiscal Year 2025-26 Levy and Collection of Assessments Within Landscape Maintenance Assessment District No. 2.

CED; Edgar Garcia, 209-577-5211, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-138 accepting the Fiscal Year 2025- 26 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision, and Yosemite Meadows Subdivisions Units 1 and 2; Notice of Intention to Levy and Collect Assessments for Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision, and Yosemite Meadows Subdivisions Units 1 and 2; and setting a Public Hearing on June 24, 2025 to Consider the Fiscal Year 2025-26 Levy and Collection of Assessments Within Landscape Maintenance Assessment District No. 2.

Consent

10. Consider accepting the Fiscal Year 2025-26 Engineer’s Annual Report for the Shackelford Landscape and Lighting District; Notice of Intention to Levy and Collect Assessments for the Shackelford Landscape and Lighting District; and setting a Public Hearing on June 24, 2025, to Consider the Fiscal Year 2025-26 Levy and Collection of Assessments within the Shackelford Landscape and Lighting District. (Funding Source: Shackelford Landscape and Lighting District)
 Resolution approving the Fiscal Year 2025-26 Engineer’s Annual Report for the Shackelford Landscape and Lighting District; Notice of Intention to Levy and Collect Assessments for the Shackelford Landscape and Lighting District; and setting a Public Hearing on June 24, 2025, to consider the Fiscal Year 2025-26 Levy and Collection of Assessments within the Shackelford Landscape and Lighting District.
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CED; Edgar Garcia, 209-577-5211, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-139 approving the Fiscal Year 2025- 26 Engineer’s Annual Report for the Shackelford Landscape and Lighting District; Notice of Intention to Levy and Collect Assessments for the Shackelford Landscape and Lighting District; and setting a Public Hearing on June 24, 2025, to consider the Fiscal Year 2025-26 Levy and Collection of Assessments within the Shackelford Landscape and Lighting District.

Consent

11. Consider accepting the Rebid La Loma Phase 2C Strengthen & Replace Water Mains Project as complete, releasing securities, releasing payments totaling $8,029,470 to Mozingo Construction, Inc., of Oakdale CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Water Fund)
 Resolution accepting the Rebid La Loma Phase 2C Strengthen & Replace Water Mains Project as complete, releasing securities, releasing payments totaling $8,029,470 to Mozingo Construction, Inc., of Oakdale CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-140 accepting the Rebid La Loma Phase 2C Strengthen & Replace Water Mains Project as complete, releasing securities, releasing payments totaling $8,029,470 to Mozingo Construction, Inc., of Oakdale CA, and authorizing the City Clerk to file a Notice of Completion.

Consent

12. Consider accepting the Monthly Investment Report for February 2025. (Funding Source: Various Funds)
 Motion accepting the Monthly Investment Report for February 2025.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
ACTION: (Wright/Bavaro; 5/0) Motion accepting the Monthly Investment Report for February 2025.

Consent

13. Consider approving the Agreements for Maintenance, Repair and Operations Parts to Grainger Inc., Lake Forest, IL, and Fastenal Company Inc., Winona, MN for a total combined amount not to exceed $3,128,524, over five years. (Funding Source: Various Funds)
 Resolution approving the Agreements for Maintenance, Repair and Operations Parts to Grainger Inc., Lake Forest, IL, and Fastenal Company Inc., Winona, MN for a two-year Agreement with three one-year extension options, for an annual combined estimated amount of $583,500 and a total combined amount not to exceed $3,128,524 over five years; and authorizing the Director of Finance to adjust agreement totals between vendors based on contractor’s #5..
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availability and department’s needs, ensuring the combined total amount does not change and authorizing the Director of Finance, or her designee, to execute the Agreements.

FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-141 approving the Agreements for Maintenance, Repair and Operations Parts to Grainger Inc., Lake Forest, IL, and Fastenal Company Inc., Winona, MN for a two-year Agreement with three one-year extension options, for an annual combined estimated amount of $583,500 and a total combined amount not to exceed $3,128,524 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 Director of Finance, or her designee, to execute the Agreements.

Removed from Consent
Consent

14. Consider approving the purchase of Personal Computers (PC) and Laptops to Dell Technologies, Inc., Round Rock, TX for an amount not to exceed $3,000,000 over four years. (Funding Source: Information Technology Fund)
 Resolution approving the Competitive Bidding Process from The State of Minnesota in partnership with NASPO ValuePoint, with Dell Technologies, Inc., Round Rock, TX for the purchase of Personal Computers and Laptops for an annual estimated amount $750,000 and a total amount not to exceed $3,000,000 over four years; and authorizing the Director of Finance or her designee to issue the Purchase Order.

FINANCE DEPARTMENT; Kyle Ford, 209-571-5508, [email protected] ACTION: (Bavaro/Wright; 5/0) Resolution 2025-142 approving the Competitive Bidding Process from The State of Minnesota in partnership with NASPO ValuePoint, with Dell Technologies, Inc., Round Rock, TX for the purchase of Personal Computers and Laptops for an annual estimated amount $750,000 and a total amount not to exceed $3,000,000 over four years; and authorizing the Director of Finance or her designee to issue the Purchase Order.

Consent

15. Consider accepting the Annual Fire Inspection Report for 2024. (Funding Source: Not Applicable)
 Resolution accepting the Annual Fire Inspection Report for 2024.

FIRE DEPARTMENT; David Bickle, 209-571-5553, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-143 accepting the Annual Fire Inspection Report for 2024.

Consent

16. Consider approving the Sole Source purchase of two LifePak15 Monitors and eight LUCAS devices from Stryker Medical, Chicago, IL for a total cost not to exceed #5..
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$323,525. (Funding Source: Measure H Fund, Emergency Medical Services Revenue (EMS) and General Fund)
 Resolution approving the Sole Source Purchase with Stryker Medical, Chicago, IL of two LifePak15 Monitors and eight LUCAS devices for a total cost not to exceed $323,525 and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order.

FIRE DEPARTMENT; Kevin Wise, 209-572-9590, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-144 approving the Sole Source Purchase with Stryker Medical, Chicago, IL of two LifePak15 Monitors and eight LUCAS devices for a total cost not to exceed $323,525 and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order.

Consent

17. Consider an Agreement with American Medical Response West, Modesto, CA for reimbursement of costs for First Responder Services. (Funding Source: General Fund)  Resolution approving an Agreement with American Medical Response West, Modesto, CA for reimbursement of costs for First Responder Services and authorizing the City Manager, or his designee, to execute the Agreement.

FIRE DEPARTMENT; Kevin Wise, 209-572-9590, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-145 approving an Agreement with American Medical Response West, Modesto, CA for reimbursement of costs for First Responder Services and authorizing the City Manager, or his designee, to execute the Agreement.

Consent

18. Consider accepting the Modesto Police Department’s annual Military Equipment report, approving an Ordinance re-authorizing the department’s Military Equipment Use Policy (Policy 710) and authorizing the purchasing additional equipment that qualifies as “military equipment” in Fiscal Year 2025-2026. (Funding Source: General Fund, Supplemental Law Enforcement Services Fund, Asset Forfeiture Funds, and/or Police Grant Funds)
 Motion introducing and waiving the first reading of an Ordinance approving the Modesto Police Department’s Military Equipment Use Policy (Policy 710) in accordance with CA Assembly Bill 481, and approving the purchase of additional equipment that qualifies as “military equipment” in Fiscal Year 2025-2026 and rescinding Ordinance No. 3782-C.S.
 Motion accepting the Modesto Police Department’s annual Military Equipment Report.

POLICE DEPARTMENT; Joseph Bottoms, 209-572-9500, [email protected] ACTION: (Wright/Bavaro; 5/0) Motion introducing and waiving the first reading of an Ordinance approving the Modesto Police Department’s Military Equipment Use Policy (Policy 710) in accordance with CA Assembly Bill 481, and approving the purchase of #5..
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additional equipment that qualifies as “military equipment” in Fiscal Year 2025-2026 and rescinding Ordinance No. 3782-C.S.

ACTION: (Wright/Bavaro; 5/0) Motion accepting the Modesto Police Department’s annual Military Equipment Report.

Consent

19. Consider approving a Purchasing Agreement with Telcion Communications Group, Turlock, CA, for ethernet switch equipment for a total amount not to exceed $2,025,000 over five years. (Funding Source: Measure L)  Resolution approving a Purchasing Agreement with Telcion Communications Group, Turlock, CA, by utilizing the Competitive Bid Process with National Intergovernmental Purchasing Alliance (National IPA), Merced County, for ethernet switch equipment, for a three year agreement with two one-year extension options, for an annual estimated amount of $405,000, and a total amount not to exceed $2,025,000 over five years; and authorizing the Director of Finance, or her designee, to execute the Purchasing Agreement.

PUBLIC WORKS; Max Navarro, 209-571-5116, [email protected] ACTION: (Wright/Bavaro; 5/0) Resolution 2025-146 approving a Purchasing Agreement with Telcion Communications Group, Turlock, CA, by utilizing the Competitive Bid Process with National Intergovernmental Purchasing Alliance (National IPA), Merced County, for ethernet switch equipment, for a three year agreement with two one-year extension options, for an annual estimated amount of $405,000, and a total amount not to exceed $2,025,000 over five years; and authorizing the Director of Finance, or her designee, to execute the Purchasing Agreement.

Consent

20. Consider approving the purchase of two Internalift Screw Pumps from Evoqua Water Technologies, of Thomasville, GA, for a total amount not to exceed $3,411,840. (Funding Source: Wastewater Fund Reserves)
 Resolution approving the Sole Source purchase from Evoqua Water Technologies, Thomasville, GA, of two Internalift Screw Pumps for an estimated cost of $2,889,553, plus $522,287 in contingency, if needed, for a total amount not to exceed $3,411,840, and authorizing the Purchasing Manager, or her designee, to issue a Purchase Order; and authorizing the Department Director or his designee to execute any Change Orders not to exceed 20% of the total purchase price.
 Resolution amending the Fiscal Year 2024-25 Non-Capital Improvements Program budget to increase Project 101439 – Screw Pumps Replacement by $3,386,840, from $25,000, for a revised total amount not to exceed $3,411,840, in transfers, revenue, and discretionary expenditures, and authorizing the City Manager, or his designee, to implement the provisions of the resolution.

UTILITIES; Jeff Daniels, 209-577-6255, [email protected] #5..
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ACTION: (Wright/Bavaro; 5/0) Resolution 2025-147 approving the Sole Source purchase from Evoqua Water Technologies, Thomasville, GA, of two Internalift Screw Pumps for an estimated cost of $2,889,553, plus $522,287 in contingency, if needed, for a total amount not to exceed $3,411,840, and authorizing the Purchasing Manager, or her designee, to issue a Purchase Order; and authorizing the Department Director or his designee to execute any Change Orders not to exceed 20% of the total purchase price.

ACTION: (Wright/Bavaro; 5/0) Resolution 2025-148 amending the Fiscal Year 2024- 25 Non-Capital Improvements Program budget to increase Project 101439 – Screw Pumps Replacement by $3,386,840, from $25,000, for a revised total amount not to exceed $3,411,840, in transfers, revenue, and discretionary expenditures, and authorizing the City Manager, or his designee, to implement the provisions of the resolution.

Removed from Consent
Consent

21. Consider approving the purchase of 14,426 square feet of real property located at 7111 McHenry Avenue, Stanislaus County, CA for $76,500, plus $15,000 in closing costs to be used for the Del Rio Well 70 Treatment System Project. (Funding Source: Water Fund)
 Resolution approving the purchase of 14,426 square feet of real property located at 7111 McHenry Avenue, Stanislaus County, CA owned by Larry Killian and Angelina Mary Killian, Trustees of The Killian Family Trust dated August 5, 1993; and Ronald D. Setliff and Shelley R. Setliff, Trustees of The Setliff 2018 Revocable Trust dated January 5, 2018; and Lenore Catherine Setliff Chladek, a married woman as her sole and separate property; and Arnold W. Setliff and Katherine L. Setliff, Trustees of the Norma Setliff Family Trust as set forth in the Setliff Revocable Trust dated April 19, 2004 for $76,500, plus $15,000 in closing costs, to be used for the Del Rio Well 70 Treatment System Project, and authorizing the City Manager, or his designee, to execute the Purchase and Sale Agreement and all related documents required to complete the transaction.
 Resolution amending the Fiscal Year 2024-25 Capital Improvement Program Budget in the amount of $91,500 to be transferred into the Project from Water Fund Reserves to fund the Del Rio Well 70 Treatment System Project and authorizing the City Manager, or his designee, to implement the provision of the Resolution.

UTILITIES; Edgar Vargas, 209-577-5424, [email protected] ACTION: (Wright/Williams; 5/0) Resolution 2025-149 approving the purchase of 14,426 square feet of real property located at 7111 McHenry Avenue, Stanislaus County, CA owned by Larry Killian and Angelina Mary Killian, Trustees of The Killian Family Trust dated August 5, 1993; and Ronald D. Setliff and Shelley R. Setliff, Trustees of The Setliff 2018 Revocable Trust dated January 5, 2018; and Lenore Catherine Setliff Chladek, a married woman as her sole and separate property; and Arnold W. Setliff and Katherine L. Setliff, Trustees of the Norma Setliff Family Trust as set forth in the Setliff Revocable Trust dated April 19, 2004 for $76,500, plus $15,000 in closing costs, to be #5..
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used for the Del Rio Well 70 Treatment System Project, and authorizing the City Manager, or his designee, to execute the Purchase and Sale Agreement and all related documents required to complete the transaction.

ACTION: (Wright/Williams; 5/0) Resolution 2025-150 amending the Fiscal Year 2024-25 Capital Improvement Program Budget in the amount of $91,500 to be transferred into the Project from Water Fund Reserves to fund the Del Rio Well 70 Treatment System Project and authorizing the City Manager, or his designee, to implement the provision of the Resolution.

COUNCIL COMMENTS & REPORTS
Council Member Williams shared updates on recent events, including the funeral for former MJC president Steve Collins, the Fire Walk sponsored by Sunrise Rotary supporting first responders and veterans, the Cinco de Mayo Parade, and the Hmong Christian Church's 40th anniversary. He also highlighted the Community Foundation's $50 million in community support, the reopening of Saint Mark, the National Day of Prayer, and the Love Modesto beautification project, thanking local businesses and volunteers for their help.

Council Member Ricci shared concerns about the Modesto Animal Shelter, citing community feedback and offering several recommendations. Key issues included the need to reinstate the defunded TNR (Trap-Neuter-Return) program to control the feral cat population, improve customer service and communication, streamline the intake process, and establish consistent veterinary support. Ricci also emphasized the need for clear euthanasia policies and greater transparency in the shelter’s operations.

Vice-Mayor Bavaro congratulated Jair Juarez on his recent appointment as the new Battalion Chief of the Modesto Fire Department, highlighting his local roots, family business near Modesto High School, and dedication through extensive overtime work. Bavaro praised Juarez as an asset to the department and expressed the Council's support for his promotion.

Mayor Zwahlen reported on several community updates, including the full renovations and rededication celebrations at Marple Manor and Ralston Tower senior living facilities, ongoing park improvements like the restroom upgrades at Graceada Park, and the strong community use of parks. She also highlighted the Modesto Art Museum's transition, thanked Savemart for its local support, and acknowledged recent promotions and hirings in the fire and police departments.

CITY MANAGER COMMENTS & REPORTS
None.

NEW BUSINESS

22. Consider reviewing, providing comment and accepting the proposed Fiscal Year 25-26 Internal Audit Work Plan. (Funding Source: Not Applicable) #5..
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 Motion accepting the FY25-26 Internal Audit Work Plan.

CITY AUDITOR; Colleen Rozillis, 206-302-6795, [email protected] ACTION: (Wright/Zwahlen; 4/1, Ricci No) Motion accepting the FY25-26 Internal Audit Work Plan.

23. Consider receiving Mayor Sue Zwahlen’s Fiscal Year 2025-26 Final Budget Modifications Message per Charter Section 1303 for the Fiscal Year 2025-26 budget year (Funding Source: All City Funds)
 Motion receiving Mayor Sue Zwahlen’s Fiscal Year 2025-26 Final Budget Modifications Message per Charter Section 1303 for the Fiscal Year 2025-26 budget year.

BUDGET; Stephan Christensen, 209-577-5390, [email protected] ACTION: (Wright/Bavaro; 5/0) Motion receiving Mayor Sue Zwahlen’s Fiscal Year 2025-26 Final Budget Modifications Message per Charter Section 1303 for the Fiscal Year 2025-26 budget year.

MATTERS TOO LATE FOR THE AGENDA
None.

ADJOURNMENT
This meeting adjourned at 7:03 PM
Attest:____________________________
Diane Nayares-Perez, City Clerk
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- 1 - ORDINANCE NO. 3794-C.S.

EFFECTIVE DATE: June 12, 2025
ORDINANCE NO. 3794-C.S.

ORDINANCE APPROVING THE MODESTO POLICE DEPARTMENT’S MILITARY EQUIPMENT USE POLICY (POLICY 710) IN ACCORDANCE WITH CA ASSEMBLY BILL 481, AND APPROVING THE PURCHASE OF ADDITIONAL EQUIPMENT THAT QUALIFIES AS “MILITARY EQUIPMENT” IN FISCAL YEAR 2025-2026 AND RESCINDING ORDINANCE NO. 3782-C.S.

WHEREAS, the Modesto Police Department is committed to using the most up-to-date tools and equipment to safeguard the residents of Modesto; and WHEREAS, Assembly Bill 481 (AB 481), codified at Government Code sections 7070 through 7075 requires a law enforcement agency to obtain approval from the applicable governing body, via adoption of a “military equipment” use policy by ordinance, prior to funding, acquiring, or using military equipment; and
WHEREAS, items deemed to be “military equipment” by AB 481 are used as a component of overall best practices for law enforcement agencies (LEAs) throughout the country; and WHEREAS, the term “military equipment”, as used in AB 481, in fact does not necessarily indicate equipment that has been used by the military; and WHEREAS, pursuant to AB 481, items deemed to be “military equipment” include, but are not limited to, unmanned aerial or ground vehicles, armored vehicles, command and control vehicles, pepper balls, less lethal shotguns, less lethal 40mm projectile launchers, and flashbangs; and
WHEREAS, these items provide peace officers with the ability to safely resolve volatile situations which otherwise might rise to the level of a lethal force encounter; and #6..
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- 2 - ORDINANCE NO. 3794-C.S.

EFFECTIVE DATE: June 12, 2025
WHEREAS, this policy outlines each item identified in Government Code section 7070, that is currently owned by MPD and the City of Modesto and also includes the current use and cost of each item; and
WHEREAS, these particular items have been in place prior to the implementation of AB 481 and any future acquisitions of any item deemed to be “military equipment” will require policy update and Council approval; and
WHEREAS, the Modesto City Council approved Ordinance No. 3782-C.S. on May 14, 2024 approving the MPD Military Equipment Use Policy (MPD Policy 710); and WHEREAS, the Modesto City Council has reviewed the annual military equipment report and found that each type of military equipment identified in that report has complied with the standards for approval; and
WHEREAS, MPD staff has conducted a review of the equipment needs for the department and determined that there is a need to purchase additional items that fall under the Military Equipment Use Policy and these items, their uses and cost are outlined in Attachment B; and
WHEREAS, the Modesto Police Department has held a well-publicized community engagement meeting; and
WHEREAS, AB 481 requires an annual renewal of the MPD Military Equipment Use Policy (MPD Policy 710) by ordinance, therefore staff requests Ordinance No. 3782-C.S. be rescinded with the approval of this ordinance.

NOW, THEREFORE, the City Council of the City of Modesto does ordain as follows:
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- 3 - ORDINANCE NO. 3794-C.S.

EFFECTIVE DATE: June 12, 2025
SECTION 1. FINDINGS
The City Council of the City of Modesto finds that all of the above Recitals within this Ordinance are true and correct and incorporated herein by reference and makes the following findings:

1. The City Council hereby approves the Modesto Police Department Military Equipment Use Policy 710, attached hereto.

2. The City Council finds that the purchase of the requested military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; the use of the equipment under the military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties; and the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

3. Ordinance No. 3782-C.S. is hereby rescinded.

SECTION 2. SEVERABILITY.

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

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) The City Council hereby finds that the adoption of this Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) of the State CEQA Guidelines. Specifically, this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the #6..
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- 4 - ORDINANCE NO. 3794-C.S.

EFFECTIVE DATE: June 12, 2025
environment because it does not authorize the construction of any new structures or other physical changes to the environment.

SECTION 4. EFFECTIVE DATE.

This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days 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. #6..
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- 5 - ORDINANCE NO. 3794-C.S.

EFFECTIVE DATE: June 12, 2025
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 6th day of May 2025, by Councilmember Wright, who moved its introduction and passage to print, which motion being duly seconded by Vice-Mayor Bavaro, was upon roll call carried and ordered printed and published by the following vote:

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

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

By: _________________________________
JOSE M. SANCHEZ, City Attorney
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- 6 - ORDINANCE NO. 3794-C.S.

EFFECTIVE DATE: June 12, 2025

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 13th day of May 2025, Councilmember ?? moved its final adoption, which motion being duly seconded by Councilmember ??, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Councilmembers: 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: June 12, 2025
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CITY OF MODESTO
ORDINANCE NO. 3794-C.S.

The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of May 6, 2025:

ORDINANCE APPROVING THE MODESTO POLICE DEPARTMENT’S MILITARY EQUIPMENT USE POLICY (POLICY 710) IN ACCORDANCE WITH CA ASSEMBLY BILL 481, AND APPROVING THE PURCHASE OF ADDITIONAL EQUIPMENT THAT QUALIFIES AS “MILITARY EQUIPMENT” IN FISCAL YEAR 2025-2026 AND RESCINDING ORDINANCE NO. 3782-C.S.

Copies of the above-mentioned ordinance are posted at the following locations:
 Tenth Street Place, 1010 10th Street
 Neighborhood Center at Marshall Park, 420 Chicago Ave.  Senior Citizen Center, 211 Bodem Street
Diane Nayares-Perez
City Clerk
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: April 18, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Steve Christensen, Office of Performance Management and Budget Director SUBJECT: Third Amendment to CGI Budget Software Agreement CONTACT: Steve Christensen, Office of Performance Management and Budget Director, [email protected], 209-577-5390
DESCRIPTION:

Consider approving the Third Amendment with CGI Technology and Solutions Inc., for the Software as a Service (SaaS) Agreement for the City of Modesto’s CGI Advantage Budget Software increasing the total Agreement amount by $60,500. (Funding Source: All City Funds) STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

On March 8, 2016, by Resolution No. 2016-98, Council approved a ten-year agreement with CGI Technology and Solutions Inc. (CGI) in the amount of $1,528,780 for the procurement of a new budget software system. This system replaced the 15 year-old budget system that had been in use with the City and was no longer supported at the time. The procurement process for the original purchase of the budget software involved the use of a consultant, Macias, Gini & O’Connell LLP (MGO). MGO assisted the City in a two-step procurement process determining the most qualified budget solution that would meet all technical and functional requirements that had been identified for the new budget software at the time. With the guidance of MGO, (three (3) demonstrations of two (2) different solutions, one from Oracle and one from CGI) a selection committee presented their assessment of both systems to the Information Technology Steering Committee (ITSC). The ITSC validated the committee’s recommendation, and the CGI Advantage solution was chosen and recommended to Council for approval. The Software as a #7..
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City Council, May 13, 2025
Third Amendment to CGI Budget Software Agreement

Service (SaaS)1 CGI Advantage budget solution included an annual maintenance/subscription cost of $102,000 annually for the life of the ten-year agreement. The initial implementation costs of the agreement included the first year of the subscription costs as well as the implementation costs for a total cost of $610,780.

On February 9, 2018, a First Amendment to the agreement with CGI was executed that modified the SaaS agreement. This amendment was executed under the authority of the City Manager and did not have an impact on the total cost of the agreement. The amendment to the original agreement was made to support the migration of the hosted CGI Advantage 360 budget software from the CGI Phoenix Data Center to the Microsoft Azure Commercial Cloud system.

This change was done to provide a scalable and secure cloud-based SaaS solution, instead of CGI continuing to host the software provided at their CGI-owned and operated Phoenix Data Center. This change was done with no cost to the City, but the First Amendment was required to be executed as it changed the language of the original agreement as the software was no longer being hosted on-site at a CGI owned facility and was moving to a Microsoft Azure Commercial Cloud hosted system.

On September 14, 2021, by Resolution 2021-358, Council approved a Second Amendment to the SaaS agreement with CGI to implement an upgrade to the CGI Advantage budget software solution that was still in use by the City. This amendment increased the agreement by $86,570 bringing the total agreement costs with CGI to $1,615,350. The $86,570 covered the implementation costs associated with the upgrade with CGI in the Statement of Work; however, it did not change the terms of the remaining annual subscription costs for the remainder of the overall SaaS agreement.

DISCUSSION:

The overall funding that has been approved for the CGI budget software agreement with the two amendments to date is $1,615,350. This covers 1) the initial implementation of the budget software when the City converted from its previous budget software system to the CGI Advantage cloud-based budget software, 2) the ten (10) years of annual subscription costs, and 3) the upgrade to CGI Advantage 4 that was approved in Fiscal Year 2021-22.

As the annual subscription and the agreement with CGI Technology and Solutions Inc is coming to the end of the ten-year annual subscription life, it has come to the attention of City staff that one portion of the original agreement was not included in the total amount of the agreements that were approved by City Council. This amount was related to the 10% contingency that was budgeted; however, it was not approved with the original agreement. The original agreement approved by Council via Resolution No. 2016-98 approved a total first year contract amount of $610,780 with a ten-year total cost not to exceed $1,528,780. The Council, on March 8, 2016, also approved the budget to be established for the implementation costs in a Capital Project 100947 in the total amount of $671,858 which included a 10% contingency under resolution 2016-99. The 10% contingency costs are the variance that was not included in the total amount of the agreement that was approved by Council, approximately $61,078. 1 Software as a Service (SaaS) provides people and businesses with cloud-based software accessible from anywhere.

Its subscription pricing model helps organizations scale efficiently, reduce costs, and stay current with the latest features and security updates. https://azure.microsoft.com/en-us/resources/cloud-computing-dictionary/what-is-saas #7..
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City Council, May 13, 2025
Third Amendment to CGI Budget Software Agreement

On April 25, 2017, a Project Change Request was executed to account for additional implementation costs under the contingency budget to complete the build out of the budget software, and to make use of $60,500 of the total amount set aside for contingency. These funds were never increased as part of the total agreement with CGI.

An increase to the total agreement in the amount of $60,500 is requested to ensure that the funds are available for the total agreement cost to fully fund the SaaS agreement with CGI Technology and Solutions Inc. for the remainder of the contract. There is no increase to the budget being requested as all funds have been approved by Council and have been budgeted.

Therefore, this action is strictly an increase to the total agreement amount with CGI.

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

FISCAL IMPACT:

There is no fiscal impact for the action requested in this item. The funds for the CGI budget software agreement item are budgeted annually within the Information Technology Department budget and are paid for annually from this area. This item is requesting an increase the total agreement amount to ensure that payments for the remaining years on the SaaS agreement can be made from funds that are already budgeted. The table below capture the changes to the agreement with CGI and the proposed new amendment:

CGI Agreement for Budget Software
SaaS Agreement and Upgrade to Advantage 4
Agreement Description Amount Council Resolution Original Agreement for Implementation and SaaS (Years 1 through 10) $ 1,528,780 2016-98 Upgrade of CGI Budget Software to CGI Advantage 4 $ 86,570 2021-358 Proposed Amendment to Incorporate excluded Contingency Costs from Project Change Request $ 60,500 N/A Total Proposed Agreement Costs with CGI $ 1,675,850
COMMITTEE RECOMMENDATION:

Due to the timing and urgency to ensure continuity in payments for the remaining years on the agreement can be made from existing budgets and to remain in good standing with the vendor, this item was not presented to Council Committed before coming to Council for action.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Third Amendment with CGI Technology and Solutions Inc., for the Software as a Service (SaaS) Agreement for the City of Modesto’s CGI Advantage Budget Software increasing the Agreement amount by $60,050 for a revised total amount not to exceed $1,675,850; and authorizing the City Manager or his designee to execute the Amendment. #7..
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City Council, May 13, 2025
Third Amendment to CGI Budget Software Agreement

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
Attachments:

1. Resolution Third Amendment to CGI Budget Software Agreement

2. Original Agreement with CGI

3. First Amendment to Agreement with CGI (Migration to Microsoft Azure)

4. Second Amendment to Agreement with CGI (Upgrade to CGI Advantage 4)

5. Project Change Request (Initial Implementation Use of Contingency)

6. Third Amendment to Agreement with CGI Technologies and Solutions Inc. #7..
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05/13/2025 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-

RESOLUTION APPROVING THE THIRD AMENDMENT WITH CGI
TECHNOLOGY AND SOLUTIONS INC., FOR THE SOFTWARE AS A
SERVICE (SAAS) AGREEMENT FOR THE CITY OF MODESTO’S CGI

ADVANTAGE BUDGET SOFTWARE INCREASING THE AGREEMENT
AMOUNT BY $60,500 FOR A REVISED TOTAL AMOUNT NOT TO EXCEED $1,675,850; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE

TO EXECUTE THE AMENDMENT
WHEREAS, on March 8, 2016, by Resolution 2016-98, City Council approved a ten-year Software as a Service (SaaS) agreement with CGI Technology and Solutions Inc. (CGI) for the procurement of a new budget software system to replace the 15 yearold budget system that was no longer supported, and WHEREAS, the original agreement approved by Council on March 8, 2016, by Resolution 2016-98, was for a total amount of $1,528,780 with first year agreement costs of $610,780, and
WHEAREAS, on February 9, 2018, the City Manager approved the First Amendment to the agreement with CGI for the migration of the budget software from the CGI hosted Phoenix Data Center to the Microsoft Azure Commercial Cloud system at no increased cost to the agreement, and
WHEREAS, on September 14, 2021, by Resolution 2021-358, City Council approved a Second Amendment to the agreement with CGI for an upgrade to the budget software system to upgrade the system to the latest version, CGI Advantage 4, and WHEREAS, the Second Amendment to the agreement with CGI was approved by Council with a total cost not to exceed $86,570, and
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05/13/2025 2025-XX
WHEREAS, the amendments approved by Council brought total costs approved for the agreement with CGI up to $1,615,350 over the ten-year term of the agreement for the budget software, and
WHEREAS, City staff has reviewed the contract and found that there is was a discrepancy for contingency costs during the initial implementation that did not include the 10% contingency costs that were budgeted as part of the total agreement amount, and WHEREAS, the difference of $60,500 which was part of a Project Change Request and made use of the 10% contingency amount established in the budget for the initial implementation project 100947 and must be included as part of the total agreement via a Third Amendment to the agreement to ensure the total agreement costs can be paid over its ten-year term, and
WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204 where the Purchasing Manager, in his or her discretion, determines that it is appropriate to amend the services or goods provided under an existing agreement to include additional similar goods or services, of limited quantity or scope, in order to increase efficiency and avoid delays or disruptions to City projects or services.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby the Third Amendment with CGI Technology and Solutions Inc., for the Software as a Service (SaaS) agreement for the City of Modesto’s CGI Advantage #7..
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05/13/2025 2025-XX
Budget Software increasing the total agreement amount by $60,500 for a revised total not to exceed $1,675,850.

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

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May 2025, by Councilmember ___________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

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

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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CGI Response to the City of
Modesto
Performance Budgeting
Solution
BAFO Clarifications
February 16, 2015
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© 2016 CGI Technologies and Solutions Inc., All Rights Reserved.

With 65,000 professionals operating in 400 offices in 40 countries, CGI fosters local accountability for client success while bringing global delivery capabilities to clients’ front doors. Founded in 1976, CGI applies a disciplined delivery approach that has achieved an industry-leading track record of delivering 95% of projects on-time and on-budget. Our high-quality business consulting, systems integration and managed services help clients leverage current investments while adopting new technology and business strategies that achieve top and bottom line results. As a demonstration of our commitment, our client satisfaction score consistently measures higher than 9 out of 10.

This proposal will become binding upon the execution by CGI and The City of Modesto of an agreement, containing the terms and conditions that will govern the relationships between the parties and is conditional upon due diligence and customary business investigations by CGI with respect to the requisite business arrangements necessary for CGI to carry out its obligations. The results of such review may impact upon the terms and conditions of this proposal, including the business structure, business terms and financial arrangements.

If you have received this document by mistake, note that the reading, the reproduction or the distribution of this document is strictly forbidden. You are hereby requested to inform us by telephone at 571-214-0912 and to return this document by certified mail.

The information in this proposal is submitted on February 16, 2016 on behalf of CGI by the following authorized representative:

Daniel Keene
Senior Vice President, State and Local ERP Solutions
CGI Technologies and Solutions Inc.
11325 Random Hills Road
Fairfax, VA 22030
(703) 267-8827
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CGI Response to City of Modesto Table of Contents
Performance Budgeting Solution i
February 16, 2015
© 2016 CGI Technologies and Solutions Inc., All Rights Reserved.

Table of Contents
REFERENCES 1
PRICING/COST PROPOSAL 2
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CGI Response to City of Modesto References
Performance Budgeting Solution 1
February 16, 2015
© 2016 CGI Technologies and Solutions Inc., All Rights Reserved.

References
CGI’s interface is Oracle version agnostic, thus CGI has is fully capable of interfacing from the City’s Oracle EBS 12.1.3 solution to our Advantage Performance Budgeting (PB) solution. For example, the following clients have an interface that enables the transfer of data between Oracle’s Financial and/or HRM solution(s) to CGI’s PB solution.

Client Contact
State of Vermont
Emily Byrne
Budget Development Director
[email protected]
Phone: (802)-828-6458
Lane County (OR)
Christine Moody
Budget & Financial Planning Manager & Interim
Financial Services Manager
[email protected]
Phone: (541) 682-3766
Cincinnati (OH)
David Criddle
IT Assistant Manager (ETS - Cincinnati Financial
Systems)
[email protected]
Phone: 513-352-3611
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CGI Response to City of Modesto Pricing/Cost Proposal
Performance Budgeting Solution 2
February 16, 2015
© 2016 CGI Technologies and Solutions Inc., All Rights Reserved.

Pricing/Cost Proposal
Please list the pricing if the City does not execute a 10 year contract.

Pricing may be affected based on the executed contract length. CGI is willing to discuss specific scenarios with the City to help clarify the impacts of contract length and pricing.

Please provide estimates for a 5 year contract with up to 10 years of static pricing. Typically we contract for 2 years with 3 one year options to continue.

The Advantage360 breakdown of costs below represents a 10-year contract term.

Exhibit 1: BAFO Pricing Summary – Advantage360 10-Year
Cost Category Year One Costs
CGI Advantage® Performance Budgeting Software $0
Hardware $0
Implementation Services (including training) $403,490
Subscription Fee (including access to the
Advantage Budgeting Solution, Business
Intelligence and Reporting, Budget Book
Publishing, Hosting, and Upgrades)
$114,360
Additional Software
Shifted One Time Costs $22,290 $92,930
Total Year 1 Costs $540,140 610,780
*Pricing assumes the City will execute a 10 year contract Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Subscription
fee
$114,360
$102,000
$114,360
$102,000
$114,360
$102,000
$114,360
$102,000
$114,360
$102,000
$114,360
$102,000
$114,360
$102,000
$114,360
$102,000
$114,360
$102,000
*Pricing assumes the City will execute a 10 year contract.

Except as otherwise expressly provided in this BAFO response, assumptions included in our previous submission to the City remain applicable.
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CGI
AMENDMENT No. 1 TO
CGI ADVANTAGE360®

SOFTWARE AS A SERVICE AGREEMENT
This Amendment No. 1 ("Amendment"), dated February 9. 2018 ("Effective Date"), modifies the Software as a Service Agreement ("Agreement") dated as of March 8, 2016 (the "Effective Date") by and between City of Modesto, CA ("Cl ient"), having its principal place of business at 101 O 101h Street, Modesto, CA 95353, and CGI Technologies and Solutions Inc. ("CGI"), a Delaware corporation having its principal place of business at 11325 Random Hills Road. Fairfax. Virginia 22030. Except as expressly specified otherwise herein, (i) capitalized terms in this Amendment have the same meanings ascribed to them in the Agreement; and (ii) the terms and conditions of the Agreement remain in full force and effect and are hereby affirmed and ratified.

1. BACKGROUND
The parties wish to enter into this Amendment to support migration of Client's multi-tenant, hosted CGI Advantage solution ("CGI Advantage360") from the CGI Phoenix Data Center to the Microsoft Azure ("Azure") Commercial Cloud. To provide a scalable and secure cloud-based Saas solution, CGI plans to migrate CGI Advantage360 to the Azure infrastructure-as-a-service platform instead of continuing to host CGI Advantage360 at the CGl-owned and -operated Phoenix Data Center. Throughout and after the Azure migration CGI will remain Client's single point of accountability for CGI Advantage360. CGI plans to execute the Azure migration in an upcoming Release Update, tentatively scheduled for Release Update 9 in early calendar year 2018. To facilitate the Azure migration, CGI will enter into an agreement with Microsoft Corporation ("Microsoft") and will be required to comply with the terms and conditions of Microsoft's standard volume licensing online services terms. including provisions relating to Microsoft Azure services and any future changes to those terms ("Microsoft Terms"). The parties want to amend the Agreement to recognize the Azure migration, the parties' obligations under the Microsoft Terms, and the beneficial impact of the Azure migration upon Client.

2. MODIFICATIONS
a. Definitions

1. New Definitions. Section 1 (Definitions) of the Agreement is hereby modified by adding the definitions specified in this subparagraph (i).

1. "Microsoft Azure Services" means the Microsoft services and features identified at https://azure.microsoft.com/services, except those Microsoft applications and/or services licensed separately by Client. and includes ~ny open source components incorporated by Microsoft in those services and features.

2. "Microsoft Azure Acceptable Use Pol icy" means the Acceptable Use Policy specified in the Microsoft OST.

3. "Microsoft OST" means the terms under Microsoft's volume licensing online services terms document and program agreement in effect at the time of use and applicable to CGl's and Client's use for a CGI Hosting Facility, the CGI System, or both, of a Microsoft on line service. including Microsoft Azure Services. as a result of CGl 's subscription to a Microsoft online service through a Microsoft volume licensing program. The Microsoft OST is published online at
http://www.microsoftvolumelicensing.com/DocumentSearch.aspx?Mode=3& DocumentTypeld=31 .
ii. Modified Definitions.

Section 1 (Definitions) of the Agreement is hereby amended as follows:

Amendment No. 1 to CGI Advantage360 Saas Agreement
CGI Technologies and Solutions Inc.
. , . Confidential and Proprietary
February 9. 2018
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CGI

1. To: (i) replace each use of the terms "CGI Data Center" and "CGI location" with the term "CGI Hosting Facility"; and (ii) clarify that any reference to CGI hardware or CGI infrastructure in the Agreement includes the CGI Hosting Facility. For purposes of this Amendment and the Agreement as amended by this Amendment, "CGI Hosting Facility" means a secure facility that hosts CGI System applications, infrastructure, and Client Content. b. Use of Third Party Suppliers. Section 3.B (Use of Third Party Suppliers) of the Agreement is hereby amended and restated in its entirety as follows:

Client acknowledges that CGI may obtain products and services, including provision of the CGI Hosting Facility, used in providing CGI Advantage360 from, and otherwise delegate obligations hereunder to, its affiliates, Subcontractors, or other third party suppliers. Any provider of hosting services for the CGI Hosting Facility shall be treated as a third party supplier rather than a Subcontractor under this Agreement. Unless specifically indicated otherwise, CGI shall nevertheless be responsible to Client for performance of CGI Advantage360 based on the use of such affiliates, Subcontractors, or third party suppliers.
c. Right to Make Changes to the CGI System. Section 3.C (Right to Make Changes to the CGI System) of the Agreement is hereby amended and restated in its entirety as follows:

CGI may make changes in CGI Advantage360 that CGI determines in its sole discretion to be necessary or appropriate. This includes changes concerning the CGI Hosting Facility, computer hardware, systems and/or application software, programming languages. data communications, and location of systems and service equipment.

Where such changes require the incorporation of changes to the terms and conditions of this Agreement, the parties will negotiate in good faith to amend this Agreement accordingly. CGI will inform Client at least seven (7) days in advance of the changes to CGI plans to implement during Scheduled Maintenance windows, unless the change is required due to an emergency situation to address an incident that has occurred or to prevent an incident from happening.
d. Grant of Limited License to CGI. Section 5.E (Grant of Limited License to CGI) is hereby amended and restated in its entirety as follows:

Client hereby grants to CGI and as applicable to CGl's Subcontractors and CGl's third party provider of the CGI Hosting Facility during the term of this Agreement a nonexclusive, nontransferable. limited right and license to access, display, reproduce, process and otherwise use the Content, in compliance with this Agreement and for the sole purpose of performing the Services as described in this Agreement. As between CGI and Client, Client will retain ownership of all of such Content. e. Use of the CGI System. Section 6.C (Use of the CGI System) of the Agreement is hereby amended and restated in its entirety as follows:

Client agrees that its use of the portion of CGI Advantage360 to which access is given shall be (i) in compliance with the terms of this Agreement, the Microsoft Azure Acceptable Use Policy, and federal, state, and local laws and regulations and common carrier tariffs applicable to CGI, (ii) solely for Client's internal use in receiving CGI Advantage360, unless otherwise permitted under this Agreement, and (iii) for proper business purposes. As part of CGl 's security measures, it may assign to Client one or more user or identification codes and associated passwords that will enable Client and its users to access CGI Advantage360. Client agrees to maintain the security of its user or identification codes and associated passwords and agrees to be responsible for their proper use by its employees and. where permitted, individuals acting as independent contractors. Client agrees to comply with any rules of operation and security procedures established by CGI for access to and use of CGI Advantage360. Client agrees that neither it nor its employees or any permitted independent contractors will attempt to gain or allow access to any data, files or programs of CGI to which they are not entitled under Amendment No. 1 to CGI Advantage360 Saas Agreement
CGI Technologies and Solutions Inc
. 2 . Confidential and Proprietary
February 9, 2018
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CGI
this Agreement, and that if such access is obtained by Client, or its employees or permitted independent contractors, Client, upon discovery of such unauthorized access, will immediately report such access to CGI, cease all unauthorized access, return all CGI, third party, or CGI customer information obtained as a result of such unauthorized access, and safeguard any CGI , third party, or CGI customer information obtained as a result of unauthorized access to Contractor Confidential Information. Client will be responsible for the actions of its employees, agents, and permitted independent contractors in connection with their access to or use or misuse of CGI Advantage360 and any CGI Hosting Facility.
f. Internal Controls Audit. Effective starting upon Phase 3 as defined in Section 3 of this Amendment, Section 12.B.2 (Audits Concerning CGl's Internal Controls) shall be retitled and amended and restated in its entirety as follows:

Internal Controls Audit. CGI shall provide Client internal controls audit documentation in accordance with the Data Processing Terms of the Microsoft OST. As of the Effective Date, the Microsoft OST specifies that (i) Microsoft Azure cores services comply with the following control standards and frameworks: ISO 27001 , ISO 27002, ISO 27018, SSAE 16 SOC 1 Type 11 , and SSAE SOC 2 Type II; (ii) Microsoft may add industry or government standards at any time, but will not eliminate a standard or framework in the table above, unless it is no longer used in the industry and it is replaced with a successor (if any); and (iii) subject to non-disclosure obligations, Microsoft will make each Information Security Policy available to CGI, along with other information reasonably requested by CGI regarding Microsoft security practices and policies. See Microsoft OST, Data Processing Terms, Online Services Information Security Policy g. Service Level Agreement. Schedule 1 (Service Level Agreement) of the Agreement is modified as specified in this Subsection (g).
i. Definitions
Section 1 (Definitions and Terminology) of Schedule 1 of the Agreement is hereby modified as follows:

1. To amend and restate in its entirety the definition of "Scheduled Maintenance" as follows:
"Scheduled Maintenance" means any time planned maintenance is to be performed on CGI Advantage360. The standard Scheduled Maintenance Period is Saturday from 12:00 a.m. EST to Sunday 11 :00 p.m. EST the third weekend of each month, plus other time periods of less than 12 hours during which CGI is performing planned maintenance on CGI Advantage360 after first providing written notice to Client at least one week before the beginning of the time period. Al l planned maintenance activities will be shared with Client in advance for the calendar year. Client will be able to notify CGI of any scheduled weekend maintenance that coincides with Client's peak periods, when weekend work may be necessary on the part of Client. CGI will work to mitigate the impacts of scheduled maintenance during peak usage times.

2. To amend and restate in its entirety the definition of "Hours of Availability" as follows:
"Hours of Availability" means the available hours for online access to CGI Advantage360 applications as it pertains to the Service Level Agreement, and the associated environment(s). The Hours of Availability are from 12:00 a.m. through 11 :59 p.m. United States Eastern time zone, every day (otherwise known as 24/7/365),
ii. Disaster Recovery.

Amendment No. 1 to CGI Advantage360 Saas Agreement
CGI Technologies and Solutions Inc.
. 3. Confidential and Proprietary
February 9, 2018
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CGI

1. Section 2.A.5 of Schedule 1 (Service Level Agreement) is hereby amended and restated in its entirety as follows:

Disaster Recovery is based on a maximum production data loss (Recovery Point Objective), as four (4) hours or less and a maximum production recovery time (Recovery Time Objective) of twelve (12) hours or less, and includes no more than one ( 1) Disaster Recovery testing window per 12-month period. Replication and failover results from CGl's annual Disaster Recovery testing will be provided to Client.

2. Section 2.B.7 of Schedule 1 (Service Level Agreement) is hereby amended and restated in its entirety as follows:

Coordinate and perform typical-level system and application backups required to support business operations and Disaster Recovery Service Levels. The specific frequency and retention of the various required back-ups consists of a daily production database backup during any day when the CGI System is to be available, given that the Recovery Point Objective is four (4) hours or less.
iii. SLA Applicability. Section 3.A.3 (SLA Applicability) of Schedule 1 (Service Level Agreement) of the Agreement is hereby amended and restated in its entirety as follow:

The Service Metrics and associated Service Levels apply to the production environment and use of CGI Advantage360 in production, unless specifically noted otherwise. In the event that a single Issue affects more than one Service Level, only the Service Metric with the highest Service Penalty will apply with respect to any Service Credits issued by CGI to Client. However, other unrelated incidents resulting in Issues will be considered as separate events and aggregated with respect to measuring performance against each Service Metric and associated Service Levels. The order of precedence is as follows (highest to lowest): Application Availability, Critical Issue Resolution, and then Serious Issue Resolution.
iv. Service Metrics. Section 3.C (Service Metrics) of Schedule 1 (Service Level Agreement) of the Agreement is hereby modified as follows:

1. Restating the Minimum Service Level for Application Availability as follows:
99% availability 12:00 a.m. through 11 :59 p.m. United States Eastern time zone, every day (otherwise known as 24/7/365), excluding Recognized Outages. During these hours, SLA metrics, reporting, and penalties will be applied to system availability. Online access to the CGI System will be provided if no Scheduled Maintenance, Scheduled Outage, or Included Offline Processing is occurring.

2. Restating the Disaster Recovery TargeURecovery Point Objective as follows:

No greater than 4 hours loss of data.

3. AZURE MIGRATION PHASES
This Amendment shall take effect on its Effective Date. The migration of CGI Advantage360 to Microsoft Azure hosting shall occur in three phases ("Phases") as specified in this Section 3. a. Phase 1 shall commence upon the Effective Date and conclude upon commencement of Phase 2.
b. Phase 2 shall commence upon CGI providing Phase 2 notice in writing that CGI has begun the migration of CGI Advantage360 to Microsoft Azure hosting and shall conclude upon commencement of Phase 3. During Phase 2:

Amendment No. 1 to CGI Advantage360 Saas Agreement
CGI Technologies and Solutions Inc
• 4 - Confidenlial and Proprietary
February 9, 201 8
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CGI
i. Migration activities will have begun;
ii. Parallel Microsoft Azure systems will have been provisioned and Content upload to Azure environments will be in progress; and
iii. Client will have production and nonproduction environments within the CGI Phoenix Data Center, and nonproduction environments within Microsoft Azure concurrently. c. Phase 3 shall commence upon CGI providing Phase 3 notice in writing that CGI has completed the migration of CGI Advantage360 to Microsoft Azure hosting. As of Phase 3:
i. Migration activities will be complete;
ii. Client will be live on Microsoft Azure for production and non production; and iii. CGI Phoenix Data Center production environments will have been decommissioned.

Each party has caused its authorized representative to execute this Amendment as of the Effective Date.

Title: __ j}_lC€_·_ ~-~-I ~-~-"---- -
Amendment No. 1 to CGI Advantage360 Saas Agreement
CGI Technologies and Solullons Inc.

City of Modesto, California (Client)
- 5 - Confidential and Proprietary
February 9. 2018
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THIRD AMENDMENT TO AGREEMENT

WITH CGI TECHNOLOGIES AND SOLUTIONS INC FOR CGI ADVANTAGE

SOFTWARE
This Third Amendment, dated ______, 2025 (the “Amendment”) modifies the Software as a Service Agreement dated as of March 8, 2016, as amended, (the “Agreement”) between the CITY OF MODESTO, a municipal corporation of the State of California (hereinafter the “City”) and CGI TECHNOLOGIES AND SOLUTIONS INC., a Delaware corporation (hereinafter “Contractor”).

RECITALS
This Third Amendment to the Agreement is made with regard to the following recitals:

WHEREAS, CITY and CONTRACTOR previously entered into an Agreement for CGI ADVANTAGE360 on the 8th day of March, 2016 (the “Agreement”).

WHEREAS, CITY and CONTRACTOR previously executed a First Amendment to support migration of CITY’S multi-tenant, hosted CGI Advantage solution to the Microsoft Azure Commercial Cloud on the 9th day of February, 2018 (the “First Amendment”); and WHEREAS, CITY and CONTRACTOR previously executed a Second Amendment to upgrade CGI ADVANTAGE360 to CGI Advantage 4 on the 14th day of September, 2021 (the “Second Amendment”), and
WHEREAS, CITY and CONTRACTOR desire to amend the Agreement a third time to include an additional $60,500 for contingency cost.

NOW, THEREFORE, in consideration of this Third Amendment, and the mutual promises, covenants, and stipulations contained in the Agreement and this Amendment, the parties agree as follows:

1. CITY and CONTRACTOR mutually agree to increase the agreement by $60,500 for contingency cost for a revised total amount not to exceed $1,675,850.

2. Except as modified and amended by this Amendment, all other provisions of the Agreement, shall remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Amendment to Agreement by its City Manager and attestation by its City Clerk under the authority of Resolution No. 2025-_____ on the ________ day of _____________, 2025, and CGI TECHNOLOGIES AND SOLUTIONS INC. has caused this Agreement to be duly executed as of the Effective Date. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
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CGI Technologies and Solutions Inc. (CGI) City of Modesto (Client) By: By:

Name: Name:

Title: Title:

Date: Date:
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: April 21, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Steve Christensen, Office of Performance Management and Budget Director SUBJECT: Combining of Budgets into the Fiscal Year 2025-26 Proposed Budget CONTACT: Steve Christensen, Office of Performance Management and Budget Director, [email protected], 209-577-5390
DESCRIPTION:

Consider and review the Draft Budget as submitted by the City Manager with the Mayor’s Final Budget Modifications and combining the documents into the Proposed Budget for Fiscal Year 2025-26 and noticing a public hearing to be held on June 3, 2025, for Council’s consideration and adoption of the Fiscal Year 2025-26 Proposed Budget and related actions. (Funding Source: All City Funds)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

According to the City of Modesto’s Charter, there are specific steps that are taken to adopt a final budget. Initial steps include the compilation and review of the City Manager’s Draft Budget.

This Draft Budget is then submitted to the City Council’s Finance Committee for review under public budget workshops. These workshops occurred on April 14th, April 15th, and April 16th, 2025. The City Manager’s Draft Budget totals approximately $639.2 million in operating expenditures, of which $199.9 million is in the General Fund and $53.0 million is in the Measure H Sales Tax Fund. The public received notice of these workshops through the City’s website, social media, and agenda postings from the City Clerk’s Office.

Section 1303 of the City of Modesto Charter states that the Mayor is to prepare and deliver final budget modifications, if any, to the Draft Budget at least forty-five (45) days prior to the new fiscal year. In accordance with Section 1303, the Mayor prepared her Final Budget Modifications Message, and this message included language related to final budget modifications.

Furthermore, the Mayor delivered this message to the public and Council at the May 6, 2025, #8..
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City Council, May 13, 2025
Combining of Budgets into the Fiscal Year 2025-26 Proposed Budget

Council meeting. The message contained no additional budget modifications and will also be included in the final City of Modesto Fiscal Year 2025-26 Adopted Budget book.

DISCUSSION:

The City Manager’s Fiscal Year 2025-26 Draft Budget
With the additional funding brought into the City through the Measure H general sales tax, the City’s budget continues to focus on maintaining and improving the services offered to the residents of Modesto. The City Manager’s Draft Budget for Fiscal Year 2025-26 focuses on aligning the General Fund and Measure H budgets with the City Council’s two-year Strategic Plan priorities which includes adopting strategies that ensure fiscal responsibility with taxpayer dollars. Despite increased revenue from Measure H, the presented Fiscal Year 2025-26 Draft Proposed Budget represents a budget that has been scrutinized and reconciled against past expenditures and future needs.

With a changing economic landscape and current level of uncertainty, the City continues to be proactive and adaptive in managing its budget for sustainable growth and effective risk management. This approach ensures the preservation of providing essential services and creates opportunities for economic development for a thriving city, even in the event of an economic downturn.

Measure H Sales Tax
The Measure H one-cent sales tax for general city services, was approved by the voters on November 8, 2022. In Fiscal Year 2025-26, it is estimated to generate approximately $45.4 million annually in sales tax revenue for the City of Modesto. These funds are critical in maintaining and improving the services and infrastructure in Modesto. As part of addressing those needs, the Draft Proposed Budget has included a Measure H Spending Plan that works toward achieving those goals and improving the quality of life for the residents and visitors of Modesto.

The Fiscal Year 2025-26 Measure H Spending Plan will appropriate approximately $41.4 million in Measure H funds to fund ongoing and one-time expenses for Council approved items. This amount includes $13.7 million in new spending for Fiscal Year 2025-26 as recommended for approval in the Measure H Spending Plan. An additional $11.6 million has been recommended for approval to cover the General Fund budget shortfall as well. The recommended expenditures in the Fiscal Year 2025-26 Measure H Spending Plan include the following areas:
• Parks Deferred Maintenance - $2.1 M • MLK Park Renovation Project - $7.9 M • Public Safety - $3.4 M • Rentable Community Stage - $260 K • Forestry Equipment - $60 K
The specific program improvements recommended for approval in the Measure H Spending Plan for Fiscal Year 2025-26 can be found in the FY 2025-26 Proposed Budget book1.

The Fiscal Year 2025-26 General Fund Operating Budget contains a structural deficit (expenditures exceeding revenues) in the amount of $19.6 million. This amount is proposed to 1 https://modestogov.com/DocumentCenter/View/22375/FY-2025-26-Measure-H-AdjustmentRequests-Approved-PDF. #8..
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City Council, May 13, 2025
Combining of Budgets into the Fiscal Year 2025-26 Proposed Budget

be offset by revenues that will be received through the Measure H Sales Tax in the upcoming fiscal year ($13.6M) as well as the return of fund balance from the Workers Compensation and Employee Benefits Internal Services Funds ($2.5M) and additional expenditure savings in the General Fund that amount to $3.5 million.

The cause of the General Fund structural deficit continues to be caused by the rate of growth of expenditures outpacing the growth of revenues. This has only been worsened by the prolonged inflation and its impact to the Sales Tax revenues in the General Fund. While some General Fund revenue categories are increasing (Property Tax, Utility Users Tax, and Business License/Mill Tax) other major revenue categories such as Sales Tax are experiencing significant decreases in projected revenues for Fiscal Year 2025-26. Last fiscal year, Sales Tax revenues were projected at approximately $41.9 million but now are projected to be at $35.9 million. This represents a downward swing of $6 million in potential Sales Tax revenue that is no longer being received due to the changes in the economy. Regarding expenditures, pension costs continue to rise, and other discretionary expenditure costs are rising as well due to the increases in inflation and the unknown potential impacts related to tariffs.

Below is a chart that shows the breakdown of the major funds that make up the total operating expenditure budget of $639.2 million for the City Manager’s Draft Budget for Fiscal Year 2025- 26:

Fund Name FY 2025-26 Draft Proposed Operating Budget
General Fund $ 199,918,090
Water Enterprise Funds $ 79,110,332
Wastewater Enterprise Funds $ 55,208,123
Measure H Spending Plan Expenditures $ 53,035,680
Employee Benefits Administration and Management ISF Funds $ 42,580,015 Fleet Management and Replacement ISF Funds $ 34,631,566 Insurance Funds $ 25,044,613
Solid Waste Funds $ 19,579,264
Surface Transportation Funds $ 18,942,201
Information Technology ISF Fund $ 15,359,948
All Other Funds $ 14,666,438
Liability Insurance ISF Fund $ 10,548,123
Inventory Purchases Fund $ 8,959,170
Storm Drainage Fund $ 8,609,720
Workers Compensation ISF Fund $ 8,544,288
Capital Improvement Support Fund $ 7,904,888
Community Facilities District (CFD) Funds $ 7,312,293
Debt Service Fund $ 5,621,456
Housing and Urban Development (HUD) Funds $ 4,373,810
Golf Funds $ 3,655,280
Building Services ISF Funds $ 3,308,787
Parking Fund $ 2,622,208
Property Insurance ISF Fund $ 2,568,289
Community Centre Operations Fund $ 1,953,692
Joint Powers Authority (JPA) Funds $ 1,700,651
Airport Funds $ 1,490,642
Insurance Administration ISF Fund $ 1,469,750
Mail Services ISF Fund $ 386,608
Landscape District Funds $ 88,411
All Funds Total $ 639,194,335
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City Council, May 13, 2025
Combining of Budgets into the Fiscal Year 2025-26 Proposed Budget

The General Fund continues to be the largest portion of the City’s total expenditure budget at 31% followed by the Water Enterprise Funds (12%), Wastewater Enterprise Funds (9%) and the Measure H Fund (8%).

Mayor’s Final Budget Modifications
As required by the City’s Charter (Article XIII Section 1303 and Section 1304), the Mayor shall prepare and deliver to Council the Mayor’s Final Budget Modifications on the Draft Budget.

Following the receipt of the Mayor’s Final Budget Modifications, the Council shall then consider and review the draft budget as submitted by the City Manager together with the Mayor’s Final Budget Modifications and may make such revisions as the Council may deem advisable. The document that results from this process shall be deemed the “Proposed Budget” and shall be considered for approval at a hearing prior to June 30th for adoption of the Final Budget.

This year, the City Councilmembers were able to attend and participate in the Finance Committee Budget Workshops that were held on April 14th, April 15th, and April 16th, 2025. The Draft Budget that is being presented to City Council is largely a collaborative effort.

As previously stated, in accordance with Section 1303 of the City of Modesto Charter, the Mayor has submitted her Final Budget Modifications Message at the May 6, 2025, City Council meeting. The message communicated the Mayor’s position that no changes are being recommended to the budget at this time and that Draft Budget be moved forward for consideration by the Council as the Proposed Budget in June.

FISCAL IMPACT:

The Fiscal Year 2025-26 Proposed Operating Expenditure Budget2 (inclusive of Transfers Out) is approximately $639.2 million of which the General Fund budget is $199.9 million. Public Safety continues to be the largest portion of the General Fund expenditure budget at $162.9 million. This represents 81% of the total General Fund operating expenditure budget.

This year’s budget includes the Fiscal Year 2025-26 Measure H Spending Plan which includes proposed expenditures of $53.0 million. A breakdown of the overall Measure H spending has been provided for the Fiscal Year 2025-26 Measure H Spending Plan below:

FY 2025-26 Measure H Spending Plan Amount
Approved Spending on New Programs $ 13,671,935
Continued Spending on Prior Year Approved Measure H Programs $ 25,698,761 General Fund Budget Deficit Funding $ 11,664,984
Supplement for ARPA Lost Funding in the General Fund $ 2,000,000 Proposed FY 2025-26 Measure H Spending Plan Totals $ 53,035,680 All other active funds of the City are shown to be solvent and include adjustments to expenditures to maintain appropriate reserve levels.
2 The Proposed Budget can be found on the City’s website at the following link:
https://modestogov.com/ArchiveCenter/ViewFile/Item/4372 #8..
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City Council, May 13, 2025
Combining of Budgets into the Fiscal Year 2025-26 Proposed Budget

COMMITTEE RECOMMENDATION:

This Finance Committee approved and recommended forwarding the City Manager’s Draft Budget for Fiscal Year 2025-26 to Council for final review and adoption by a 3-0 vote on April 16, 2025, at the Finance Committee Budget Workshops.

As other financial impacts develop throughout Fiscal Year 2025-26, staff will report back to Finance Committee and City Council for recommendation and approval of modifications to the adopted budget within the first quarter of the new fiscal year.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution combining the City Manager’s Draft Budget and the Mayor’s Final Budget Modifications into the Proposed Budget for Fiscal Year 2025-26 and noticing a public hearing to be held on June 3, 2025, for Council’s consideration and adoption of the Fiscal Year 2025-26 Proposed Budget and related actions.

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
Attachments:

1. Resolution Combining of Budgets into the Fiscal Year 2025-26 Proposed Budget

2. FY 2025-26 Mayor’s Final Budget Modifications Message

3. Fiscal Year 2025-26 Proposed Budget –
https://modestogov.com/ArchiveCenter/ViewFile/Item/4372 #8..
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2025-
RESOLUTION COMBINING THE CITY MANAGER’S DRAFT
BUDGET AND THE MAYOR’S FINAL BUDGET MODIFICATIONS
INTO THE PROPOSED BUDGET FOR FISCAL YEAR 2025-26, AND
NOTICING A PUBLIC HEARING TO BE HELD JUNE 3, 2025, FOR
COUNCIL’S CONSIDERATION AND ADOPTION OF THE FISCAL
YEAR 2025-26 PROPOSED BUDGET AND RELATED ACTIONS
WHEREAS, the Finance Committee heard the City Manager’s Draft Budget on April 14th, April 15th, and April 16th, 2025, through a series of Budget Workshops, and WHEREAS, the Finance Committee approved the City Manager’s Draft Budget with a 3- 0 vote and approved the budget to be moved on to Council for final review and adoption, and WHEREAS, the City’s Charter, Article XIII Section 1303 and Section 1304 requires that the Mayor has the opportunity to make any final budget modifications to the City Manager’s Draft Budget at least 45 days prior to the end of the fiscal year and adoption by City Council, and WHEREAS, the Mayor presented her Final Budget Modifications Message of the City Manager’s Draft Budget to City Council at the May 6, 2025, City Council meeting and has presented no changes and recommended that the Draft Budget be moved forward to Council as the City of Modesto’s Fiscal Year 2025-26 Proposed Budget for adoption consideration, and WHEREAS, the City of Modesto’s Fiscal Year 2025-26 Proposed Budget will be inclusive of the City Manager’s Draft Budget and the Mayor’s Final Budget Modifications and will be heard at a public hearing scheduled to be held on June 3, 2025.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the combining of the City Manager’s Draft Budget as well as the Mayor’s Final Budget Modifications into the City of Modesto’s Fiscal Year 2025-26 Proposed Budget and that a public hearing will be held on June 3, 2025, for the adoption of the Fiscal Year 2025-26 Proposed Budget.

The foregoing resolution was introduced at a regular meeting of the Council of the City #8..
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2 of Modesto held on the 13th day of May 2025, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

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

BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
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Sue Zwahlen, Mayor
City of Modesto
1010 Tenth Street, Suite 6100
Modesto, CA 95354
[email protected]
P.O. Box 642, Modesto, CA 95353 www.modestogov.com Phone: (209) 571-5169 • Fax: (209) 571-5128 MAYOR’S FINAL BUDGET MODIFICATIONS MESSAGE - FY 2025-2026 MAY 6, 2025
To the Residents of Modesto and the Members of the City Council:

It is with great honor and respect that I present for your consideration the Proposed FY 2025-26 Operating, Capital Improvement and Multi-Year Project Budget for the City of Modesto.

This budget reflects a coordinated effort between staff, our City Manager, and the City Council, and is guided by the policies and priorities set forth in the new Two-Year Strategic Plan.

Through earnest and meticulous planning, the proposed budget for FY 2025-26, reflects our commitment to fiscal responsibility with the uncertainty of future economic times while also planning for continued improvement of services for the residents of Modesto.

The approved funding in the Fiscal Year 2024-25 Measure H Spending Plan continues to make lasting improvements across our City. Park improvements continue to be made. Public Safety is being supported with additional positions and resources added to the Police Department. The Fire Department continues to improve their ability to save lives with advances in their Emergency Medical Services (EMS) with additional funding for LifePaks and Lucas Devices, as well as replacement of overextended fire apparatus. Forestry continues to reduce the City’s pruning cycle, work on the removal of tree stumps as well as work on the reforestation of the many trees that make Modesto a “City of Trees”. Progress is being made in the City’s homelessness efforts with critical funding for the Downtown Streets Team and multiple housing opportunities. All these exceptional improvements would not be possible without the funding approved by you, the residents of Modesto through Measure H.

With the continued voter approved Measure H funding, the Fiscal Year 2025-26 Measure H Spending Plan looks to continue the efforts listed above and provide additional improvements to City services. The Measure H Spending Plan that is proposed with this Operating Budget, includes $13.7 million in spending on new programs as well as $25.7 million on spending for previously approved Measure H programs. New funding in the spending plan will go towards the following:
• Parks Deferred Maintenance - $2.1 M • MLK Park Renovation Project - $7.9 M • Public Safety - $3.4 M • Rentable Community Stage - $260 K • Forestry Equipment - $60 K

The items listed above will add to the already expansive list of improvements that the City of Modesto has been able to achieve, as we strive to enhance the quality of life for all residents. #8..
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Sue Zwahlen, Mayor
City of Modesto
1010 Tenth Street, Suite 6100
Modesto, CA 95354
[email protected]
P.O. Box 642, Modesto, CA 95353 www.modestogov.com Phone: (209) 571-5169 • Fax: (209) 571-5128 The Proposed Budget continues to address needed infrastructure improvements around the City.

Street work will continue for the current backlog of sidewalk repairs, and we will see work continue towards the completion of the César E. Chávez Park renovation towards the end of 2025-26. The park projects represent a significant investment into providing recreational opportunities for our residents to enjoy year-round.

While Measure H continues to provide service advancements and infrastructure improvements for the public, the City’s General Fund continues to be impacted by the external pressures of the economy as some major revenues continue to decline while many expenditures are beginning to see the impacts of prolonged inflation. Overall, the General Fund is facing a budget deficit, with expenditures exceeding revenues by $19.6 million. The most recent decline in sales tax revenues is heavily impacting the current fiscal year and projections for the proposed FY 2025-26 budget year. Measure H has helped to ease the burden of the ongoing budget deficit, and staff continues to heavily scrutinize the General Fund operating budgets to minimize the impact of the ongoing structural budget deficit.

As Mayor, the Charter dictates that I prepare and deliver to the Council any Final Budget Modifications to the Draft Budget. At this time, I have no modifications and recommend that the Draft Budget be moved forward for approval by the Council in June as the Proposed Budget.

In times of uncertainty, I take solace in the knowledge that many individuals and organizations across the City, as well as my fellow Councilmembers, continue to work together to address important topics like public safety, homelessness, economic development, and blight. Together, we address these complicated topics knowing that the goal is worth all the effort, planning, and difficult conversations. The City will continue to do its part to push forward and make innovative ideas a reality for the deserving residents of Modesto.

I would like to thank our community, staff, and Council for the support I have received as Mayor. The push to improve the quality of life in Modesto is possible because we work together.

I sincerely appreciate you all. I am excited for what the future holds for our city. Let’s continue to build that future together, fostering innovation with integrity.

Sue Zwahlen
Mayor
City of Modesto
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: April 22, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director SUBJECT: Monthly Budget Adjustment Report – April 2025
CONTACT: Stephan Christensen, Office of Performance Management and Budget Director, [email protected] 209-577-5390
DESCRIPTION:

Consider approving the recommended budget adjustments to Fiscal Year 2024-25 Annual Operating and Capital Improvement Program Budgets. (Funding Source: Various Funds)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

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

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

Included in this report as an attachment (Exhibit B) is a summary of the budget adjustments approved by the City Manager and/or Budget Manager and Office of Performance Management and Budget (OPMB) Director consistent with the authority levels approved by Council with the passing of the Fiscal Year 2024-25 Operating Budget via Resolution No. 2024-191. #9..
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City Council, May 13, 2025
Monthly Budget Adjustment Report – April 2025

DISCUSSION:

The monthly budget adjustments attached as Exhibit A in this item include adjustments across various departments. These adjustments are explained in further detail within Exhibit A.

FISCAL IMPACT:

The fiscal impact of each item is noted in the attachments to this report. The adjustments are for Fiscal Year 2024-25.

COMMITTEE RECOMMENDATION:

This item was presented to the Finance Committee on February 24, 2025, and the Committee recommended forwarding the item to Council for approval. It must be noted that since the recommendation of the Finance Committee the following addition has been made for the reason noted below.

Under the Utilities section, a new item was added to adjust the budget in Project 100851 to account for the change orders on the project. The language added to Exhibit A is as follows:
 A budget adjustment is necessary in the amount of $1,150,779 to increase the discretionary expenses in Project 100851 – Park Pike Neighborhood S & R in Water Fund – CIP Projects (4180). The increase in budget will cover remaining change orders on the project and will come from Water Fund reserves.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution amending Fiscal Year 2024-25 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager, to take the necessary steps to implement the provisions of this Resolution.

Approved by:

Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Exhibit A – Budget Adjustments Requiring Council Approval

3. Exhibit B - Staff Approved Budget Adjustments
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05/13/2025/OPMB/SChristensen/Item X 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-
RESOLUTION AMENDING THE FISCAL YEAR 2024-25 ANNUAL

OPERATING AND CAPITAL IMPROVEMENT PROJECT FUND

BUDGETS AND AUTHORIZING THE CITY MANAGER, TO TAKE

THE NECESSARY STEPS TO IMPLEMENT THE PROVISIONS OF

THIS RESOLUTION
WHEREAS, a financial analysis has been completed and it has been determined that a budget adjustment is required to the Annual and Capital Improvement Budgets of the City of Modesto for Fiscal Year 2024-25.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves amending the Fiscal Year 2024-25 Annual Operating and Capital Improvement budget as shown in Exhibit A, which is attached hereto and incorporated by reference herein.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution. #9..
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05/13/2025/OPMB/SChristensen/Item X 2 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May 2025, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST:
________________________________

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

BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
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City Council, May 13, 2025
Monthly Budget Adjustment Report

EXHIBIT A

ENGINEERING SERVICES DEPARTMENT
 A budget adjustment in the amount of $82,000 is needed in the Capital Improvement Support – Survey Equipment Fund (1301) to purchase survey equipment, including scanning total station, accessories, and software. The increase in budget will come from the fund reserves that have been collected from projects that utilize the equipment.

MODESTO FIRE DEPARTMENT
 A budget adjustment is necessary to amend the Industrial Fire District budget as approved in Fund 6100, JPA-Industrial Fire Fund, by the Industrial Fire Board in December 2024. The revenues are being increased by $51,607, which is offset by an increase to the expense of the final disbursements to the JPA members by $51,607.

MODESTO POLICE DEPARTMENT
 A budget adjustment in the amount of $547,511 is needed in the Police Grants Fund (1342) for Project 101633 – 2024-2025 Tobacco Grant. The adjustment will recognize grant revenue and establish the discretionary expenditure accounts. The Modesto Police Department was awarded the grant from the Department of Justice per Grant #DOJ-PROP56-2025-25-1-043 and the budget appropriation is in place to expend the funds for eligible grant program categories per the grant agreement. $50,000 has previously been budgeted on the City Manager’s signature to avoid delays in planned operations.

UTILITIES
 A budget adjustment is necessary in the amount of $1,150,779 to increase the discretionary expenses in Project 100851 – Park Pike Neighborhood S & R in Water Fund – CIP Projects (4180). The increase in budget will cover remaining change orders on the project and will come from Water Fund reserves.

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Department Director/Director of Office Performance and Budget (OPMB)/City Manager Approved Budget Adjustments EXHIBIT B For FY2024/25
AT #
Approved
by CM,
Director
OPMB or DD
Fund Fund Name Cost Ctr/Project Name Account Name Rev/Exp/TI/ TO Account
Current
Budget
Increase
(Decrease)
Revised
Budget Description
AT-108 DD 0100 General Fund CED - Planning Budget Only - Salary Adjustment - Decrease Exp $ (57,680) $ (96,229) $ (153,909) AT-108 DD 0100 General Fund CED - Planning Budget Only - Benefit adjustment - Decrease Exp $ (24,720) $ (41,241) $ (65,961) AT-108 DD 0100 General Fund CED - Economic Development Professional Services Exp $ - $ 137,470 $ 137,470 AT-110 DD 0100 General Fund CED - Planning Budget Only - Salary Adjustment - Decrease Exp $ (153,909) $ (38,500) $ (192,409) AT-110 DD 0100 General Fund CED - Planning Budget Only - Benefit adjustment - Decrease Exp $ (65,961) $ (16,500) $ (82,461) AT-110 DD 0100 General Fund CED - Administration Professional Services Exp $ - $ 55,000 $ 55,000 AT-118 CM 0100 General Fund Fire Services - Oakdale Personal Protection Equipment Exp $ 26,210 $ (10,000) $ 16,210 AT-118 CM 0100 General Fund Fire Services - Ceres Personal Protection Equipment Exp $ 32,000 $ (10,000) $ 22,000 AT-118 CM 0100 General Fund Transfer Out General Fund Transfer Out to fund 1341 TO $ - $ 20,000 $ 20,000 AT-121 DD 0100 General Fund 13110 - ESD Administration IT Equipment Less than Capitalized Threshold Exp $ 6,669 $ (5,000) $ 1,669
AT-121 DD 0100 General Fund 13120 - ESD Land Development Engineering
IT Equipment Less than Capitalized
Threshold Exp $ 5,000 $ (4,000) $ 1,000
AT-121 DD 0100 General Fund 13120 - ESD Land Development Engineering Professional Services Exp $ 25,000 $ (2,000) $ 23,000 AT-121 DD 0100 General Fund 13110 - ESD Administration Office Furnishings and Equipment Greater than Capital Threshold Exp $ - $ 7,000 $ 7,000
AT-121 DD 0100 General Fund 13120 - ESD Land Development Engineering
Office Furnishings and Equipment Greater
than Capital Threshold Exp $ - $ 4,000 $ 4,000
Total Changes for Fund 0100 $ (207,391) $ - $ (207,391) AT-109 OPMB Dir 1170 HOME 71170 - Transfer Out 71346 - Transfer Out to Fund 1346 TO $ - $ 775,404 $ 775,404 A budget adjustment is necessary to re-establish the transfer out from the HOME fund (1170) to the CED Grants Reimbursed fund (1346) for the Traveler's Motel budget. This budget was applied in the previous fiscal year but since it's in an operating account string it has to be re-established
Total Changes for Fund 1170 $ - $ 775,404 $ 775,404
AT-118 CM 1341 Operation Grants - Reimbursed 101640 - MFD 2024 CalFire Wildland Other Miscellaneous Grants Rev $ - $ 20,000 $ 20,000 AT-118 CM 1341 Operation Grants - Reimbursed 101640 - MFD 2024 CalFire Wildland Transfer in from fund 0100 TI $ - $ 20,000 $ 20,000 AT-118 CM 1341 Operation Grants - Reimbursed 101640 - MFD 2024 CalFire Wildland AUC - Personal Protection Equipment Exp $ - $ 40,000 $ 40,000 Total Changes for Fund 1341 $ - $ 80,000 $ 40,000
AT-119 OPMB Dir 1342 Police Grants 101363 - 2021 BJAG Grant Appr Unit A Exp $ 35,058 $ 3,238 $ 38,296 AT-119 OPMB Dir 1342 Police Grants 101363 - 2021 BJAG Grant Appr Unit C Exp $ 104,310 $ (3,238) $ 101,072 Total Changes for Fund 1342 $ 104,310 $ - $ 101,072
AT-117 OPMB Dir 1346 CED Grants 101575 - Travelers Motel Direct Grants Exp $ 14,950,000 $ (424,923) $ 14,525,077 AT-117 OPMB Dir 1346 CED Grants 101575 - Travelers Motel Direct Grants Exp $ - $ 424,923 $ 424,923 Total Changes for Fund 1346 $ - $ - $ 424,923
AT-116 OPMB Dir 1390 American Rescue Plan Act 101459 - LED Lighting LED Lighting Material Exp $ 222,990 $ (6,032) $ 216,958 AT-116 OPMB Dir 1390 American Rescue Plan Act 101459 - LED Lighting LED Lighting Staff Exp $ 27,010 $ 6,032 $ 33,042 Total Changes for Fund 1390 $ 27,010 $ - $ 33,042
AT-111 OPMB Dir 3122 Measure H - Non-Capital Projects 101517 - 23/24 Def Maintenance Professional Services Exp $ 120,000 $ (58,569) $ 61,431 AT-111 OPMB Dir 3122 Measure H - Non-Capital Projects 101517 - 23/24 Def Maintenance Professional Services Exp $ 20,000 $ (8,660) $ 11,340 AT-111 OPMB Dir 3122 Measure H - Non-Capital Projects 101517 - 23/24 Def Maintenance Professional Services Exp $ 1,722,209 $ 67,229 $ 1,789,438 Total Changes for Fund 3122 $ 1,862,209 $ - $ 1,862,209 AT-115 OPMB Dir 3170 Capital Grants - HUD/CIP Projects 100866 - Senior Playground CON - Construction Exp $ 957,105 $ (9,651) $ 947,454 AT-115 OPMB Dir 3170 Capital Grants - HUD/CIP Projects 100866 - Senior Playground CTGY-CIP - Contingency - CIP Exp $ 64,100 $ (490) $ 63,610 AT-115 OPMB Dir 3170 Capital Grants - HUD/CIP Projects 100866 - Senior Playground CA - Construction Administration Exp $ 118,710 $ 9,651 $ 128,361 AT-115 OPMB Dir 3170 Capital Grants - HUD/CIP Projects 100866 - Senior Playground EDA - Eng/Design/Admin Exp $ 81,385 $ 490 $ 81,875 Total Changes for Fund 3170 $ 1,221,300 $ - $ 1,221,300 A budget adjustment is necessary to move $6,032 from task line, LED Lighting Material to LED Lighting Staff to clean-up the tasks to close the project.

A budget adjustment is necessary to increase the Homekey Acquisition budget and decrease the Homekey Property budget by $424,923. This is a new task line that will align with our actual award. Agreement will be paid with HUD entitlement funds.

The purpose of this budget adjustment is to reduce the operating cost centers for Oakdale and Ceres by $10,000 each in the Personal Protection Equipment account (52160) for a total of $20,000 to fulfill the 50% required local match for the grant funding. These funds will be transferred from the General Fund to the Cal Fire Grant - Wildland PPE project. This grant was approved by Council on November 12, 2024, under resolution 2024-412.

The purpose of this budget adjustment is to reduce the operating cost centers for Oakdale and Ceres by $10,000 each in the Personal Protection Equipment account (52160) for a total of $20,000 to fulfill the 50% required local match for the grant funding. These funds will be transferred from the General Fund to the Cal Fire Grant - Wildland PPE project. This grant was approved by Council on November 12, 2024, under resolution 2024-412.

A budget adjustment is necessary to reallocate funds wtihin the Administration and Land Development Engineering to account for the correct account string for purchase of a new copier.

A budget adjustment is necessary to transfer excess funding from the Restroom Shade Canopy removal and the Sand Volleyball upgrades at E La Loma Park to the Restroom Replacements task line due to the previous two projects being complete. The Restroom replacement projects is awarding a construction contract and is in need of additional Funding.

A adjustment is necessary to fund recently approved Agreements to provide $75,000 in additional funding to the Stanislaus Business Alliance(opportunity Stanislaus) for ongoing business recruitment efforts and an Agreement with Kosmont for the completion of an economic market analysis for the Kiernan business park community facilities district to assess existing conditions, real estate and market trends as well as the highest and best use for the parcels within the CFD in the amount of $62,470.

A budget adjustment is necessary to reallocate funds to cover the cost of the PFM revenue and bond analysis completed for the potential public financing component of a proposed soccer stadium.

A budget adjustment is necessary to redistribute funds to clear negative in Appr Unit A as part of the Project Closure process.

A budget adj is necessary to move $10,141 from tasks CON & CTGY-CIP to CA & EDA to bring these task lines out of the negative. The project will then be closed. #9..
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Department Director/Director of Office Performance and Budget (OPMB)/City Manager Approved Budget Adjustments EXHIBIT B For FY2024/25
AT #
Approved
by CM,
Director
OPMB or DD
Fund Fund Name Cost Ctr/Project Name Account Name Rev/Exp/TI/ TO Account
Current
Budget
Increase
(Decrease)
Revised
Budget Description
AT-113 CM 3255 Tivoli CFD 101419- Tivoli Formation AUC - Professional Services Exp $ 125,000 $ 100,000 $ 225,000 A budget adjustment is necessary to increase professional services budget to cover formation invoices that were coded to 3220 IFP Admin Fund. Tivoli formation expenses will be reimbursed with the bond sale .

Total Changes for Fund 3255 $ 125,000 $ 100,000 $ 225,000 AT-120 OPMB Dir 4140 Water - Grants 101112 - Prop 1 Nitrate/Arsenic/Uranium Appr. Unit C Exp $ 2,272,652 $ 20,000 $ 2,292,652 A budget adjustment is necessary to increase the discretionary budget in the project to account for staff time. The project has sufficient revenue to cover the increase in expenses.

Total Changes for Fund 4140 $ 2,272,652 $ 20,000 $ 2,292,652 AT-114 OPMB Dir 4210 Sewer Operations Fund 101259 - High Voltage Imprv Sutter CA - Construction Administration Exp $ 70,250 $ (15,000) $ 55,250 AT-114 OPMB Dir 4210 Sewer Operations Fund 101259 - High Voltage Imprv Sutter EDA - Eng/Design/Admin Exp $ 36,300 $ 15,000 $ 51,300 Total Changes for Fund 4210 $ 106,550 $ - $ 106,550
A budget adjustment is necessary to redistribute funds to clear negative CA Task as part of Project Closure Process
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: April 23, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services / City Engineer SUBJECT: Cooperative Agreement with Caltrans for the Briggsmore Interchange Project CONTACT: Toby Wells, Director of Engineering Services / City Engineer, [email protected], 209-571-5542
DESCRIPTION:

Consider a Cooperative Agreement with Caltrans for the Project Approval and Environmental Document (PA&ED) Phase of the Briggsmore Avenue at State Route 99. (Funding Source:

Measure L and Regional Surface Transportation Program (RSTP)) STRATEGIC PLAN ELEMENT:

This action for the Briggsmore Avenue at State Route 99 (SR99) Interchange Project is consistent with the Council’s 2020-2025 Strategic Plan Goal D, Ensure Safe, Efficient and Reliable Infrastructure. Specifically, this item supports the City’s goal to expand alternative modes of travel, improve transportation flow, and drive economic vitality.

BACKGROUND:

The Briggsmore/Carpenter Interchange at SR99 was constructed incrementally in response to changing demands and available funding over time. Current deficiencies are such that a complete overhaul is necessary to maintain traffic flows into the future. As such, an analysis must be performed to understand the regional traffic impacts first and then look for ways to make improvements. Staff anticipates that this could result in significant changes to local roadways, resulting in increased safety and efficiency for movement of goods and services throughout the vicinity of Briggsmore/Carpenter and SR99.

The initial direction to staff is that the SR99 overcrossing needs to be reconstructed to accommodate eight (8) lanes of traffic on the SR99 mainline. This work is complicated by the presence of traffic signals at less than ideal spacing in the immediate vicinity of the interchange.

Interchange reconstruction and roadway realignment will be further frustrated by the presence of several big box retail stores North and East of the existing interchange. This interchange also serves as a grade separated crossing of the Union Pacific Railroad and future expansion of the Altamont Corridor Express (ACE) Rail system.
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City Council, May 13, 2025
Cooperative Agreement with Caltrans for the Briggsmore Interchange Project

On September 1, 2020, by Resolution No. 2020-338, Council approved amending the Capital Improvement Plan (CIP) budget in the amount of $2,847,879 for the Project Initiation Document and Project Approval and Environmental Document phases for the Briggsmore Avenue at SR99 Interchange Improvement Project.

On September 1, 2020, by Resolution No. 2020-337, Council approved accepting Regional Surface Transportation Program (RSTP) funds in the amount of $2,298,879 in FY 20/21, and $2,297,953 in FY 21/22 to fund the Project Initiation Document (PID) and Project Approval and Environmental Document (PA&ED) phases for the Briggsmore Avenue at SR99 Interchange Improvement Project.

On September 1, 2020, by Resolution No. 2020-336, Council approved a Measure L Cooperative Agreement with Stanislaus Council of Governments funding up to $549,000 of Measure L funds for the Project Initiation Document and Project Approval and Environmental Document phases for the Briggsmore Avenue at SR99 Interchange Improvement Project.

On April 13, 2021, by Resolution No. 2021-127, Council approved a Cooperative Agreement with Caltrans for Project Initiation Document and Project Approval Environmental Document Phases of the Briggsmore Avenue at SR99 Interchange Improvement Project.

On May 2, 2023, by Resolution No. 2023-195, Council approved a Design Services Agreement with AECOM of Sacramento, CA for the Briggsmore Avenue at State Route 99 Interchange Improvement Project in the amount of $6,380,010, plus $638,001 for additional services, if needed, for a total amount not to exceed $7,018,011.

DISCUSSION:

The purpose of this project is to reduce traffic congestion, improve regional and interregional traffic operation, and enhance safety on the SR99 highway and within the vicinity of the local transportation network of the Briggsmore Avenue at SR99 interchange through reconstruction.

StanCOG is the designated Regional Transportation Planning Agency, the designated Metropolitan Planning Organization, and the designated Council of Governments for Stanislaus County. StanCOG has designated the Briggsmore Avenue at SR99 Interchange Improvement Project as a priority project for delivery in Measure L’s first 10 years. As a Measure L regional funding priority, this project is designated to receive up to $14.9M (2019 dollars) of the regional project share of Measure L funds, and StanCOG will reimburse the City of Modesto for identified costs associated with development of this project.

The first project phase is termed the Project Initiation Document (PID) phase. This is the first formal project phase in developing a solution for a specific transportation problem. The outcome of the project initiation process is a document that establishes a well-defined purpose-and-need statement, proposed project scope tied to a reliable cost estimate, and a schedule. Additionally, the use of State funds for capital improvements on the State Highway System (SHS) requires an approved PID. Any major work on the State Highway System regardless of how it is funded requires an approved PID.

The PID is a technical engineering report that documents the scope, cost, and schedule of a project. The PID is the product of the project scoping effort, becomes the record of the purposeand-need for the project, and it defines the approach that will be taken to meet or reduce #10..
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Cooperative Agreement with Caltrans for the Briggsmore Interchange Project

transportation deficiencies. The PID is a record of the existing information, initial assumptions, identified risks, and constraints that generated the development of the project work plan. The PID is used to obtain approval for inclusion of a project into a programming document or to get conceptual approval by Caltrans as a project-funded-by-others.

Caltrans requires development of a PID prior to approval to begin the environmental project phase. The Project Approval and Environmental Document (PA&ED) phase develops and establishes the State and Federal approvals necessary for the project to move to the final PS&E project phase. Approval of the PID, PA&ED, and PS&E phases are all milestone events that provide the basis for funding of subsequent phases concluding with the construction phase.

The PID phase is nearing completion with a draft report currently under review by Caltrans.

Therefore, the project is now ready to move to the second phase of development, PA&ED. In order to proceed, a Cooperative Agreement with Caltrans is required.

The Cooperative Agreement provides the framework and delineates the respective responsibilities of Caltrans and City of Modesto for the PA&ED phase of the project. This agreement is required for the City to take the lead on the project development for improvements that will be located on the State Highway system. Staff recommends authorization to execute the Cooperative Agreement to continue the project development for the Briggsmore Avenue at State Route 99 Interchange Project.

FISCAL IMPACT:

This Project is not included in the City’s Capital Facilities Fee (CFF) program, therefore other funding sources are necessary to fund the study efforts. The available funding sources are:

Briggsmore Avenue at SR 99 Interchange Improvement Project 101271 Measure L Regional Funding per StanCOG Cooperative Agreement $2,549,000 Regional Surface Transportation Program (RSTP) $5,113,482 Total Funding (PID & PAED) $7,662,482
The Cooperative Agreement with Caltrans for the PA&ED phase doesn’t require any additional payment to Caltrans therefore no additional funding is required for this agreement.

COMMITTEE RECOMMENDATION:

This project was presented to the Economic Development Committee on May 5, 2025 and was recommended for forwarding to Council for approval.

CEQA/NEPA REQUIREMENTS:

The environmental review of the project will be included in the PA&ED phase of the project and will be completed under the terms of the AECOM agreement.

RECOMMENDED COUNCIL ACTION:

Staff Recommendation:

Resolution approving a Cooperative Agreement with Caltrans for the Project Approval and Environmental Document (PA&ED) Phase of the Briggsmore Avenue at State Route 99 and authorizing City Manager, or his designee, to execute the Cooperative Agreement. #10..
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Cooperative Agreement with Caltrans for the Briggsmore Interchange Project

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

1. Resolution

2. Cooperative Agreement with Caltrans for Briggsmore/SR-99 #10..
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05/13//2025/ESD/TWells 1 2025-??

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-XX

RESOLUTION APPROVING A COOPERATIVE AGREEMENT WITH

CALTRANS FOR THE PROJECT APPROVAL AND ENVIRONMENTAL

DOCUMENT (PA&ED) PHASE OF THE BRIGGSMORE AVENUE AT STATE ROUTE 99 AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE,

TO EXECUTE THE COOPERATIVE AGREEMENT
WHEREAS, the Briggsmore/Carpenter Interchange at SR99 was constructed incrementally in response to changing demands and available funding over time; and WHEREAS, purpose of this project is to reduce traffic congestion, improve regional and interregional traffic operation, and enhance safety on the SR99 highway and within the vicinity of the local transportation network of the Briggsmore Avenue at SR99 interchange through reconstruction; and
WHEREAS, the first phase of the Project is termed Project Initiation Document (PID) phase; and
WHEREAS, the outcome of the project initiation process is a document that establishes a well-defined purposes-and-need statement, proposed project scope tied to a reliable cost estimate, and a schedule; and
WHEREAS, the use of State funds for capital improvements on the State Highway System (SHS) requires an approved PID; and
WHEREAS, the Department of Transportation (Caltrans) requires development of a PID prior to approval to begin the environmental project phase and the Cooperative Agreement for the PID phase was approved on April 13, 2021 by Resolution No.2021- 127; and
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WHEREAS, the Project Approval and Environmental Document (PA&ED) phase develops and establishes the State and Federal approvals necessary for the Project to move to the final PS&E project phase; and
WHEREAS, the PID phase is nearing completion with a draft report currently under review by Caltrans; and
WHEREAS, the project is now ready to move to the second PA&ED phase of development; and
WHEREAS, approval of the Cooperative Agreement for PA&ED with Caltrans is the next step towards progressing the study and reconstruction of the Briggsmore/Carpenter at SR99 Interchange project.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a Cooperative Agreement with Caltrans for the Project Approval and Environmental Document (PA&ED) Phase of the Briggsmore Avenue at State Route

99. BE IT FURTHER RESOLVED, that the City Manager, or his designee, is authorized to execute the Cooperative Agreement in a form approved by the City Attorney.
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05/13//2025/ESD/TWells 3 2025-??
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May, 2025, by Councilmember Wright, who moved its adoption, which motion being duly seconded by Councilmember EscutiaBraaton, 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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DRAFT Agreement No. 10-0513
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COOPERATIVE AGREEMENT COVER SHEET
Work Description

STUDY AND EVALUATE INTERCHANGE IMPROVEMENTS TO IMPROVE TRAFFIC

CIRCULATION AND PROMOTE ACTIVE TRANSPORTATION THROUGH MODE SHIFT

WITHIN AND AROUND THE BRIGGSMORE AVENUE/CARPENTER ROAD AND STATE ROUTE 99 INTERCHANGE AREA BY BREACHING PHYSICAL BARRIERS THAT CONFINE AND CONDENSE THE LOCAL ROADWAY NETWORK CIRCULATION.

Contact Information
The information provided below indicates the primary contact information for each PARTY to this AGREEMENT. PARTIES will notify each other in writing of any personnel or location changes. Contact information changes do not require an amendment to this AGREEMENT.

CALTRANS
Mimi Huie, Project Manager
1976 E. Martin Luther King Blvd
Stockton, CA 95205
Office Phone: (209) 607-3170
Email: [email protected]

CITY OF MODESTO
Toby Wells, City Engineer
1010 10th Street
Modesto, CA 95354
Office Phone: (209) 571-5542
Email: [email protected]
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Table of Contents
COOPERATIVE AGREEMENT COVER SHEET .......................................................................................... 1 Work Description ......................................................................................................................................... 1 Contact Information ..................................................................................................................................... 1 CALTRANS ............................................................................................................................................. 1 CITY OF MODESTO .............................................................................................................................. 1 COOPERATIVE AGREEMENT ..................................................................................................................... 4 RECITALS ....................................................................................................................................................... 4 RESPONSIBILITIES ....................................................................................................................................... 5 Sponsorship .................................................................................................................................................. 5 Implementing Agency .................................................................................................................................. 5 Funding ........................................................................................................................................................ 6 CALTRANS' Quality Management.............................................................................................................. 6 CEQA/NEPA Lead Agency .......................................................................................................................... 7 Environmental Permits, Approvals and Agreements .................................................................................... 7 Project Approval and Environmental Document (PA&ED) ......................................................................... 7 California Environmental Quality Act (CEQA)....................................................................................... 8 National Environmental Policy Act (NEPA)............................................................................................ 9 Schedule ..................................................................................................................................................... 10 Additional Provisions ................................................................................................................................. 10 Standards ................................................................................................................................................ 10 Noncompliant Work ............................................................................................................................... 11 Qualifications ......................................................................................................................................... 11 Consultant Selection .............................................................................................................................. 11 Encroachment Permits ........................................................................................................................... 11 Protected Resources ............................................................................................................................... 11 Disclosures ............................................................................................................................................. 12 Hazardous Materials .............................................................................................................................. 12 Claims .................................................................................................................................................... 13 Accounting and Audits ........................................................................................................................... 13 Interruption of Work .............................................................................................................................. 13 #10..
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Penalties, Judgments and Settlements .................................................................................................... 14 Project Files ........................................................................................................................................... 14 GENERAL CONDITIONS ............................................................................................................................ 14 Venue .......................................................................................................................................................... 14 Exemptions ................................................................................................................................................. 14 Indemnification .......................................................................................................................................... 14 Non-parties ................................................................................................................................................. 15 Ambiguity and Performance ...................................................................................................................... 15 Defaults ...................................................................................................................................................... 15 Dispute Resolution ..................................................................................................................................... 16 Prevailing Wage ......................................................................................................................................... 16 SIGNATURES ................................................................................................................................................ 17 #10..
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COOPERATIVE AGREEMENT
This AGREEMENT, executed on and effective from __________________________, is between the State of California, acting through its Department of Transportation, referred to as CALTRANS, and:

City of Modesto, a body politic and municipal corporation or chartered city of the State of California, referred to hereinafter as CITY.

An individual signatory agency in this AGREEMENT is referred to as a PARTY. Collectively, the signatory agencies in this AGREEMENT are referred to as PARTIES.

RECITALS

1. PARTIES are authorized to enter into a cooperative agreement for improvements to the State Highway System (SHS) per the California Streets and Highways Code, Sections 114 and 130.

2. For the purpose of this AGREEMENT, STUDY AND EVALUATE INTERCHANGE

IMPROVEMENTS TO IMPROVE TRAFFIC CIRCULATION AND PROMOTE ACTIVE

TRANSPORTATION THROUGH MODE SHIFT WITHIN AND AROUND THE BRIGGSMORE AVENUE/CARPENTER ROAD AND STATE ROUTE 99 INTERCHANGE AREA BY BREACHING

PHYSICAL BARRIERS THAT CONFINE AND CONDENSE THE LOCAL ROADWAY NETWORK CIRCULATION, will be referred to hereinafter as PROJECT. The PROJECT scope of work is defined in the project initiation and approval documents.

3. All obligations and responsibilities assigned in this AGREEMENT to complete the following PROJECT COMPONENT will be referred to hereinafter as WORK:
• PROJECT APPROVAL AND ENVIRONMENTAL DOCUMENT (PA&ED)
Each PROJECT COMPONENT is defined in the CALTRANS Workplan Standards Guide as a distinct group of activities/products in the project planning and development process.

4. The term AGREEMENT, as used herein, includes this document and any attachments, exhibits, and amendments.

This AGREEMENT is separate from and does not modify or replace any other cooperative agreement or memorandum of understanding between the PARTIES regarding the PROJECT.

PARTIES intend this AGREEMENT to be their final expression that supersedes any oral understanding or writings pertaining to the WORK. The requirements of this AGREEMENT will preside over any conflicting requirements in any documents that are made an express part of this AGREEMENT.

If any provisions in this AGREEMENT are found by a court of competent jurisdiction to be, or are in fact, illegal, inoperative, or unenforceable, those provisions do not render any or all other AGREEMENT provisions invalid, inoperative, or unenforceable, and those provisions will be automatically severed from this AGREEMENT.
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Except as otherwise provided in the AGREEMENT, PARTIES will execute a written amendment if there are any changes to the terms of this AGREEMENT.

PARTIES agree to sign a CLOSURE STATEMENT to terminate this AGREEMENT. However, all indemnification, document retention, audit, claims, environmental commitment, legal challenge, maintenance and ownership articles will remain in effect until terminated or modified in writing by mutual agreement or expire by the statute of limitations.

5. The following work associated with this PROJECT has been completed or is in progress:
• CITY is developing the Project Initiation Document (PID) (Cooperative Agreement No. 10- 0512).

6. In this AGREEMENT capitalized words represent defined terms, initialisms, or acronyms.

7. PARTIES hereby set forth the terms, covenants, and conditions of this AGREEMENT.

RESPONSIBILITIES
Sponsorship

8. A SPONSOR is responsible for establishing the scope of the PROJECT and securing the financial resources to fund the WORK. A SPONSOR is responsible for securing additional funds when necessary or implementing PROJECT changes to ensure the WORK can be completed with the funds committed in this AGREEMENT.

PROJECT changes, as described in the CALTRANS Project Development Procedures Manual, will be approved by CALTRANS as the owner/operator of the State Highway System.

9. CITY is the SPONSOR for the WORK in this AGREEMENT.

Implementing Agency

10. The IMPLEMENTING AGENCY is the PARTY responsible for managing the scope, cost, schedule, and quality of the work activities and products of a PROJECT COMPONENT. • CITY is the Project Approval and Environmental Document (PA&ED) IMPLEMENTING AGENCY.

PA&ED includes the completion of the Final Environmental Document and the Project Report (documenting the project alternative selection).

11. CITY will provide a Quality Management Plan (QMP) for the WORK in every PROJECT COMPONENT that they are implementing. The QMP describes the IMPLEMENTING AGENCY's quality policy and how it will be used. The QMP will include a process for resolving disputes between the PARTIES at the team level. The QMP is subject to CALTRANS review and concurrence.
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12. Any PARTY responsible for completing WORK will make its personnel and consultants that prepare WORK available to help resolve WORK-related problems and changes for the entire duration of the PROJECT including PROJECT work that may occur under separate agreements.

Funding

13. The WORK does not use funds administered by CALTRANS. PARTIES will amend this AGREEMENT should this condition change.

14. Each PARTY is responsible for the costs they incur in performing the WORK.

CALTRANS' Quality Management

15. CALTRANS, as the owner/operator of the State Highway System (SHS), will perform quality management work including Quality Management Assessment (QMA), environmental document quality control, and owner/operator approvals for the portions of WORK within the existing and proposed SHS right-of-way.

16. CALTRANS' Quality Management Assessment (QMA) efforts are to ensure that CITY's quality assurance results in WORK that is in accordance with the applicable standards and the PROJECT's quality management plan (QMP). QMA does not include any efforts necessary to develop or deliver WORK or any validation by verifying or rechecking WORK.

When CALTRANS performs QMA, it does so for its own benefit. No one can assign liability to CALTRANS due to its QMA.

17. CALTRANS, as the owner/operator of the State Highway System, will approve WORK products in accordance with CALTRANS policies and guidance and as indicated in this AGREEMENT.

18. Per National Environmental Policy Act (NEPA) assignment and California Environmental Quality Act (CEQA) statutes, CALTRANS will perform environmental document quality control and NEPA assignment review procedures for environmental documentation. CALTRANS quality control and quality assurance procedures for all environmental documents are described in Chapter 38 of the Standard Environmental Reference (SER), available at https://dot.ca.gov/programs/environmentalanalysis/standard-environmental-reference-ser/volume-1-guidance-for-compliance/ch-38-nepaassignment. This also includes the independent judgment analysis and determination under CEQA that the environmental documentation meets CEQA requirements.

19. CITY will provide WORK-related products and supporting documentation upon CALTRANS' request for the purpose of CALTRANS' quality management work.

20. CITY, including any employee, agent, consultant or sub-consultant retained by the CITY, shall implement uniform document control policies necessary to retain all records and electronically stored information associated with the WORK, including but not limited to those records identified in California Public Resources Code, Section 21167.6, and including email and attachments, in a manner consistent with the CALTRANS Uniform Filing System and the "Final Caltrans #10..
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Environmental Records Retention Policy", available at https://dot.ca.gov/-/media/dotmedia/programs/environmental-analysis/documents/ser/nepa-recordretention-policy-final-a11y.pdf.

These records, along with an index of the records, shall be provided to CALTRANS within 60 days of CALTRANS' written request.

21. The cost of CALTRANS’ quality management work is to be borne by CALTRANS.

CEQA/NEPA Lead Agency

22. CALTRANS is the CEQA Lead Agency for the PROJECT.

23. CALTRANS is the NEPA Lead Agency for the PROJECT.

Environmental Permits, Approvals and Agreements

24. CITY will comply with the commitments and conditions set forth in the environmental documentation, environmental permits, approvals, and applicable agreements as those commitments and conditions apply to CITY's responsibilities in this AGREEMENT.

25. Unless otherwise assigned in this AGREEMENT, the IMPLEMENTING AGENCY for a PROJECT COMPONENT is responsible for all PROJECT COMPONENT WORK associated with coordinating, obtaining, implementing, renewing, and amending the PROJECT permits, agreements, and approvals whether they are identified in the planned project scope of work or become necessary in the course of completing the PROJECT.

26. It is expected that the PROJECT will not require environmental permits/approvals.

Project Approval and Environmental Document (PA&ED)

27. As the PA&ED IMPLEMENTING AGENCY, CITY is responsible for all PA&ED WORK except those activities and responsibilities that are assigned to another PARTY and those activities that are excluded under this AGREEMENT.

28. CALTRANS will be responsible for completing the following PA&ED activities:

CALTRANS Work Breakdown Structure Identifier (If Applicable) 100.10.10.xx Quality Management
165.15.15.xx Essential Fish Habitat Consultation
165.15.15.xx Section 7 Consultation
165.25.25 Approval to Circulate Resolution
175.20 Project Preferred Alternative
180.10.05.05.xx CEQA Lead Final Env. Doc QA/QC and Approval 180.10.05.45 Section 7 Consultation
180.15.05 Record of Decision (NEPA)
180.15.10 Notice of Determination (CEQA)
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29. Any PARTY preparing environmental documentation, including studies and reports, will ensure that qualified personnel remain available to help resolve environmental issues and perform any necessary work to ensure that the PROJECT remains in environmental compliance.

30. CITY will provide written notice of the initiation of environmental studies to the CEQA and NEPA Lead Agencies prior to completing any other PA&ED phase work.

California Environmental Quality Act (CEQA)

31. Environmental documentation will be prepared in compliance with the California Public Resources Code §§ 21080.3.1(d)(e). CALTRANS will provide, and CITY will use, a letter template and a list of California Native American tribes requesting notification. CITY will prepare consultation documentation for CALTRANS’ signature and transmittal in compliance with the statutorily required time frames.

32. The CEQA Lead Agency will determine the type of CEQA documentation and will cause that documentation to be prepared in accordance with CEQA requirements.

33. Any PARTY involved in the preparation of CEQA documentation will prepare the documentation to meet CEQA requirements and follow the CEQA Lead Agency’s standards that apply to the CEQA process.

34. Any PARTY preparing any portion of the CEQA documentation, including any studies and reports, will submit that portion of the documentation to the CEQA Lead Agency for review, comment, and approval at appropriate stages of development prior to public availability.

35. CITY will submit CEQA-related public notices to CALTRANS for review, comment, and approval prior to publication and circulation.

36. The CEQA Lead Agency will attend all CEQA-related public meetings.

37. CITY will submit all CEQA-related public meeting materials to the CEQA Lead Agency for review, comment, and approval at least ten (10) working days prior to the public meeting date.

If the CEQA Lead Agency makes any changes to the materials, then the CEQA Lead Agency will allow CITY to review, comment, and concur on those changes at least three (3) working days prior to the public meeting date. The CEQA Lead Agency has final approval authority over all CEQA documentation.

38. If a PARTY who is not the CEQA Lead Agency holds a public meeting about the PROJECT, that PARTY must clearly state its role in the PROJECT and the identity of the CEQA Lead Agency on all meeting publications. All meeting publications must also inform the attendees that public comments collected at the meetings are not part of the CEQA public review process.

That PARTY will submit all meeting advertisements, agendas, exhibits, handouts, and materials to the CEQA Lead Agency for review, comment, and approval at least ten (10) working days prior to #10..
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publication or use. If that PARTY makes any changes to the materials, it will allow the CEQA Lead Agency to review, comment on, and approve those changes at least three (3) working days prior to the public meeting date.

The CEQA Lead Agency maintains final editorial control with respect to text or graphics that could lead to public confusion over CEQA-related roles and responsibilities.

National Environmental Policy Act (NEPA)

39. Pursuant to Chapter 3 of Title 23, United States Code, Sections 326 and 327, CALTRANS is the NEPA Lead Agency for the PROJECT. CALTRANS is responsible for NEPA compliance, will determine the type of NEPA documentation, and will cause that documentation to be prepared in accordance with NEPA requirements.

CALTRANS, as the NEPA Lead Agency for PROJECT, is responsible for the review, comment, and approval all environmental documentation (including, but not limited to, studies, reports, public notices, and public meeting materials, determinations, administrative drafts, and final environmental documents) at appropriate stages of development prior to approval and public availability.

When required as NEPA Lead Agency, CALTRANS will conduct consultation and coordination and obtain, renew, or amend approvals pursuant to the Federal Endangered Species Act, and Essential Fish Habitat.

When required as NEPA Lead Agency, CALTRANS will conduct consultation and coordination approvals pursuant to Section 106 of the National Historic Preservation Act.

40. Any PARTY involved in the preparation of NEPA documentation will follow FHWA and CALTRANS standards that apply to the NEPA process including, but not limited to, the guidance provided in the FHWA Environmental Toolkit (available at http://environment.fhwa.dot.gov/index.asp) and the CALTRANS Standard Environmental Reference.

41. Any PARTY preparing any portion of the NEPA documentation (including, but not limited to, studies, reports, public notices, and public meeting materials, determinations, administrative drafts, and final environmental documents) will submit that portion of the documentation to CALTRANS for CALTRANS' review, comment, and approval prior to public availability.

42. CITY will prepare, publicize, and circulate all NEPA-related public notices, except Federal Register notices. CITY will submit all notices to the NEPA Lead Agency for review, comment, and approval prior to publication and circulation.

CALTRANS will work with the appropriate federal agency to publish notices in the Federal Register.

43. The NEPA Lead Agency will attend all NEPA-related public meetings. #10..
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44. CITY will submit all NEPA-related public meeting materials to CALTRANS for CALTRANS’ review, comment, and approval at least ten (10) working days prior to the public meeting date.

45. If a PARTY who is not the NEPA Lead Agency holds a public meeting about the PROJECT, that PARTY must clearly state its role in the PROJECT and the identity of the NEPA Lead Agency on all meeting publications. All meeting publications must also inform the attendees that public comments collected at the meetings are not part of the NEPA public review process.

That PARTY will submit all meeting advertisements, agendas, exhibits, handouts, and materials to the NEPA Lead Agency for review, comment, and approval at least ten (10) working days prior to publication or use. If that PARTY makes any changes to the materials, it will allow the NEPA Lead Agency to review, comment on, and approve those changes at least three (3) working days prior to the public meeting date.

The NEPA Lead Agency has final approval authority with respect to text or graphics that could lead to public confusion over NEPA-related roles and responsibilities.

46. CITY will ensure that the PROJECT is included in the approved Federal Statewide Transportation Improvement Program (FSTIP) prior to the NEPA Lead Agency’s approval of the environmental document.

Schedule

47. PARTIES will manage the WORK schedule to ensure the timely use of committed funds and to ensure compliance with any environmental permits, right-of-way agreements, construction contracts, and any other commitments. PARTIES will communicate schedule risks or changes as soon as they are identified and will actively manage and mitigate schedule risks.

Additional Provisions
Standards

48. PARTIES will perform all WORK in accordance with federal and California laws, regulations, and standards; Federal Highway Administration (FHWA) standards; and CALTRANS standards.

CALTRANS standards include, but are not limited to, the guidance provided in the:
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• CADD Users Manual
• CALTRANS policies and directives
• Plans Preparation Manual
• Project Development Procedures Manual (PDPM)
• Workplan Standards Guide
• Standard Environmental Reference
• Highway Design Manual
• Construction Manual Supplement for Local Agency Resident Engineers • Local Agency Structure Representative Guidelines
Noncompliant Work

49. CALTRANS retains the right to reject noncompliant WORK. CITY agrees to suspend WORK upon request by CALTRANS for the purpose of protecting public safety, preserving property rights, and ensuring that all WORK is in the best interest of the State Highway System.

Qualifications

50. Each PARTY will ensure that personnel participating in WORK are appropriately qualified or licensed to perform the tasks assigned to them.

Consultant Selection

51. CITY will invite CALTRANS to participate in the selection of any consultants that participate in the WORK.

Encroachment Permits

52. CALTRANS will issue, upon proper application, the encroachment permits required for WORK within State Highway System (SHS) right-of-way. CITY, their contractors, consultants, agents, and utility owners will not work within the SHS right-of-way without an encroachment permit issued by CALTRANS. CALTRANS will provide encroachment permits to CITY at no cost. CALTRANS will provide encroachment permits to utility owners at no cost. If the encroachment permit and this AGREEMENT conflict, the requirements of this AGREEMENT will prevail.

53. The IMPLEMENTING AGENCY for a PROJECT COMPONENT will coordinate, prepare, obtain, implement, renew, and amend any encroachment permits needed to complete the WORK.

Protected Resources

54. If any PARTY discovers unanticipated cultural, archaeological, paleontological, or other protected resources during WORK, all WORK in that area will stop and that PARTY will notify all PARTIES within 24 hours of discovery. WORK may only resume after a qualified professional has evaluated the nature and significance of the discovery and CALTRANS approves a plan for its removal or protection.
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Disclosures

55. PARTIES will hold all administrative drafts and administrative final reports, studies, materials, and documentation relied upon, produced, created, or utilized for the WORK in confidence to the extent permitted by law and where applicable, the provisions of California Government Code, Section 7921.505(c)(5) will protect the confidentiality of such documents in the event that said documents are shared between PARTIES.

PARTIES will not distribute, release, or share said documents with anyone other than employees, agents, and consultants who require access to complete the WORK without the written consent of the PARTY authorized to release them, unless required or authorized to do so by law.

56. If a PARTY receives a public records request pertaining to the WORK, that PARTY will notify PARTIES within five (5) working days of receipt and make PARTIES aware of any disclosed public records.

Hazardous Materials

57. HM-1 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law, whether it is disturbed by the PROJECT or not.

HM-2 is hazardous material (including, but not limited to, hazardous waste) that may require removal and disposal pursuant to federal or state law only if disturbed by the PROJECT.

The management activities related to HM-1 and HM-2, including and without limitation, any necessary manifest requirements and disposal facility designations are referred to herein as HM-1 MANAGEMENT and HM-2 MANAGEMENT respectively.

58. If HM-1 or HM-2 is found, the discovering PARTY will immediately notify all other PARTIES.

59. CALTRANS, independent of the PROJECT, is responsible for any HM-1 found within the existing State Highway System right-of-way. CALTRANS will undertake, or cause to be undertaken, HM-1 MANAGEMENT with minimum impact to the PROJECT schedule.

CALTRANS, independent of the PROJECT, will pay, or cause to be paid, the cost of HM-1 MANAGEMENT related to HM-1 found within the existing State Highway System right-of-way.

60. CITY, independent of the PROJECT, is responsible for any HM-1 found within the PROJECT limits and outside the existing State Highway System right-of-way. CITY will undertake, or cause to be undertaken, HM-1 MANAGEMENT with minimum impact to the PROJECT schedule.

CITY, independent of the PROJECT, will pay, or cause to be paid, the cost of HM-1 MANAGEMENT for HM-1 found within the PROJECT limits and outside of the existing State Highway System right-of-way.

61. The CONSTRUCTION IMPLEMENTING AGENCY is responsible for HM-2 MANAGEMENT within the PROJECT limits.
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CITY and CALTRANS will comply with the Soil Management Agreement for Aerially Deposited Lead Contaminated Soils (Soil Management Agreement) executed between CALTRANS and the California Department of Toxic Substances Control (DTSC). Under Section 3.2 of the Soil Management Agreement, CALTRANS and CITY each retain joint and severable liability for noncompliance with the provisions of the Soil Management Agreement. CITY will assume all responsibilities assigned to CALTRANS in the Soil Management Agreement during PROJECT COMPONENTS for which they are the IMPLEMENTING AGENCY except for final placement and burial of soil within the State right-of-way, per Section 4.5 of the Soil Management Agreement, which is subject to CALTRANS concurrence and reporting to DTSC which will be performed by CALTRANS.

62. CALTRANS' acquisition or acceptance of title to any property on which any HM-1 or HM-2 is found will proceed in accordance with CALTRANS' policy on such acquisition.

Claims

63. CITY may accept, reject, compromise, settle, or litigate claims of any consultants or contractors hired to complete WORK without concurrence from the other PARTY.

64. PARTIES will confer on any claim that may affect the WORK or PARTIES' liability or responsibility under this AGREEMENT in order to retain resolution possibilities for potential future claims. No PARTY will prejudice the rights of another PARTY until after PARTIES confer on the claim.

65. If the WORK expends state or federal funds, each PARTY will comply with the Federal Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards of 2 CFR, Part 200. PARTIES will ensure that any for-profit consultant hired to participate in the WORK will comply with the requirements in 48 CFR, Chapter 1, Part 31. When state or federal funds are expended on the WORK these principles and requirements apply to all funding types included in this AGREEMENT.

Accounting and Audits

66. If the WORK expends state or federal funds, each PARTY will undergo an annual audit in accordance with the Single Audit Act in the Federal Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards as defined in 2 CFR, Part 200.

67. When a PARTY reimburses a consultant for WORK with state or federal funds, the procurement of the consultant and the consultant overhead costs will be in accordance with the Local Assistance Procedures Manual, Chapter 10.

Interruption of Work

68. If WORK stops for any reason, IMPLEMENTING AGENCY will place the PROJECT right-of-way in a safe and operable condition acceptable to CALTRANS.

69. If WORK stops for any reason, each PARTY will continue with environmental commitments included in the environmental documentation, permits, agreements, or approvals that are in effect at #10..
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the time that WORK stops, and will keep the PROJECT in environmental compliance until WORK resumes.

Penalties, Judgments and Settlements

70. The cost of awards, judgments, fines, interest, penalties, attorney's fees, and/or settlements generated by the WORK are considered WORK costs.

71. The cost of legal challenges to the environmental process or documentation are considered WORK costs.

72. Any PARTY whose action or lack of action causes the levy of fines, interest, or penalties will indemnify and hold all other PARTIES harmless per the terms of this AGREEMENT.

Project Files

73. CITY will furnish CALTRANS with the Project History Files related to the PROJECT facilities on State Highway System within sixty (60) days following the completion of each PROJECT COMPONENT. CITY will assure that the Project History File is prepared and submitted in compliance with the Project Development Procedures Manual, Chapter 7. All material will be submitted neatly in a three-ring binder and in PDF format.

GENERAL CONDITIONS

74. All portions of this AGREEMENT, including the RECITALS section, are enforceable.

Venue

75. PARTIES understand that this AGREEMENT is in accordance with and governed by the Constitution and laws of the State of California. This AGREEMENT will be enforceable in the State of California. Any PARTY initiating legal action arising from this AGREEMENT will file and maintain that legal action in the Superior Court of the county in which the CALTRANS district office that is signatory to this AGREEMENT resides, or in the Superior Court of the county in which the PROJECT is physically located.

Exemptions

76. All CALTRANS' obligations and commitments under this AGREEMENT are subject to the appropriation of resources by the Legislature, the State Budget Act authority, programming and allocation of funds by the California Transportation Commission (CTC).

Indemnification

77. Neither CALTRANS nor any of its officers and employees, are responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by CITY, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction #10..
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conferred upon CITY under this AGREEMENT. It is understood and agreed that CITY, to the extent permitted by law, will defend, indemnify, and save harmless CALTRANS and all of its officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by CITY, its contractors, sub-contractors, and/or its agents under this AGREEMENT.

78. Neither CITY nor any of its officers and employees, are responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon CALTRANS under this AGREEMENT. It is understood and agreed that CALTRANS, to the extent permitted by law, will defend, indemnify, and save harmless CITY and all of its officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by CALTRANS, its contractors, sub-contractors, and/or its agents under this AGREEMENT.

Non-parties

79. PARTIES do not intend this AGREEMENT to create a third-party beneficiary or define duties, obligations, or rights for entities in PARTIES not signatory to this AGREEMENT. PARTIES do not intend this AGREEMENT to affect their legal liability by imposing any standard of care for fulfilling the WORK different from the standards imposed by law.

80. PARTIES will not assign or attempt to assign obligations to entities not signatory to this AGREEMENT without an amendment to this AGREEMENT.

Ambiguity and Performance

81. Neither PARTY will interpret any ambiguity contained in this AGREEMENT against the other PARTY. PARTIES waive the provisions of California Civil Code, Section 1654.

A waiver of a PARTY’s performance under this AGREEMENT will not constitute a continuous waiver of any other provision.

82. A delay or omission to exercise a right or power due to a default does not negate the use of that right or power in the future when deemed necessary.

Defaults

83. If any PARTY defaults in its performance of the WORK, a non-defaulting PARTY will request in writing that the default be remedied within thirty (30) calendar days. If the defaulting PARTY fails to do so, the non-defaulting PARTY may initiate dispute resolution. #10..
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Dispute Resolution

84. PARTIES will first attempt to resolve AGREEMENT disputes at the PROJECT team level as described in the Quality Management Plan. If they cannot resolve the dispute themselves, the CALTRANS District Director and the Executive Officer of CITY will attempt to negotiate a resolution. If PARTIES do not reach a resolution, PARTIES' legal counsel will initiate mediation.

PARTIES agree to participate in mediation in good faith and will share equally in its costs.

Neither the dispute nor the mediation process relieves PARTIES from full and timely performance of the WORK in accordance with the terms of this AGREEMENT. However, if any PARTY stops fulfilling its obligations, any other PARTY may seek equitable relief to ensure that the WORK continues.

Except for equitable relief and/or to preserve the statute of limitations, no PARTY may file a civil complaint until after mediation, or forty-five (45) calendar days after filing the written mediation request, whichever occurs first.

PARTIES will file any civil complaints in the Superior Court of the county in which the CALTRANS District Office signatory to this AGREEMENT resides or in the Superior Court of the county in which the PROJECT is physically located.

85. PARTIES maintain the ability to pursue alternative or additional dispute remedies if a previously selected remedy does not achieve resolution.

Prevailing Wage

86. When WORK falls within the Labor Code § 1720(a)(1) definition of "public works" in that it is construction, alteration, demolition, installation, or repair; or maintenance work under Labor Code § 1771, PARTIES will conform to the provisions of Labor Code §§ 1720-1815, and all applicable provisions of California Code of Regulations, Title 8, Division 1, Chapter 8, Subchapter 3, Articles 1-7. PARTIES will include prevailing wage requirements in contracts for public work and require contractors to include the same prevailing wage requirements in all subcontracts.

Work performed by a PARTY's own employees is exempt from the Labor Code's Prevailing Wage requirements.

If WORK is paid for, in whole or part, with federal funds and is of the type of work subject to federal prevailing wage requirements, PARTIES will conform to the provisions of the Davis-Bacon and Related Acts, 40 U.S.C. §§ 3141-3148.

When applicable, PARTIES will include federal prevailing wage requirements in contracts for public works. WORK performed by a PARTY's employees is exempt from federal prevailing wage requirements.
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SIGNATURES
PARTIES are authorized to enter into this AGREEMENT and have delegated to the undersigned the authority to execute this AGREEMENT on behalf of the respective agencies and hereby covenants to have followed all the necessary legal requirements to validly execute this AGREEMENT. By signing below, the PARTIES each expressly agree to execute this AGREEMENT electronically.

The PARTIES acknowledge that executed copies of this AGREEMENT may be exchanged by facsimile or email, and that such copies shall be deemed to be effective as originals.

STATE OF CALIFORNIA DEPARTMENT

OF TRANSPORTATION
Grace Magsayo
District Director
Verification of Funds and Authority:

Michelle Ishaya
Budget Manager

CITY OF MODESTO
Joseph P. Lopez
City Manager
Attest:

Diane Nayares-Perez
City Clerk
Jose M. Sanchez
City Attorney
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: April 23, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services Department / City Engineer SUBJECT: Accept the Rebid River Trunk Realignment Gravity System Project CONTACT: Peter Kambel, Senior Civil Engineer, [email protected], 209-577-5444 DESCRIPTION:

Consider accepting the River Trunk Realignment Gravity System Project Rebid as complete, releasing securities, releasing payments totaling $22,185,635 to Ranger Pipelines, Inc., of San Francisco CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source:

Wastewater Fund)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2020-2025 Strategic Plan Initiatives, Goal D:

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

BACKGROUND:

The 2007 Wastewater Collection System Treatment Plan (WWCSMP) identified key hydraulic and condition deficiencies in the City’s wastewater collection system. These conclusions were re-evaluated as part of the 2016 WWCSMP and the Rebid River Trunk Realignment Gravity System Project addressed those deficiencies in the River Trunk, Sutter Trunk, and Beard Brook Siphon.

DISCUSSION:

The project was re-advertised for bids on July 20, 2021. Bids were publicly opened on August 31, 2021, and Ranger Pipelines, Inc., of San Francisco CA, was the lowest responsible bidder at

19.33% below the engineers estimate.

On December 14, 2021, by Resolution No. 2021-505, Council awarded a contract to Ranger Pipelines, Inc, in the amount of $20,720,263. The Contractor received the Notice to Proceed with a start date of March 7, 2022. All contract work was completed on July 30, 2024. #11..
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City Council, May 13, 2025
Accept the River Trunk Realignment Gravity System Project Rebid

By accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed. The City Clerk is authorized to complete all the necessary steps to file Notice of Completion with the County Recorder, release securities, and authorize payments totaling $22,185,635. The work is covered by a one-year warranty for any issues that may arise.

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

FISCAL IMPACT:

The total project costs were $26,064,768, which included design, design consultant (Carollo Engineers), construction, construction management services (West Yost & Associates), and construction administration costs. The total project amount originally budgeted was $27,002,529 which included $22,792,289 for the construction contract and contingency with Ranger Pipelines, Inc.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, updated by Resolution No. 2019-326 on July 9, 2019, established a contract change order authority of eight percent (8%) for construction contracts of this dollar value. Given the nature of this project and the high likelihood of changes to the scope of the project, staff requested and received an increase to the contract change order budget to 10% ($2,072,026).

There are twenty-three change orders resulting in an overall increase of $1,465,372 for change order work as listed on the attached change order log. A summary of the expenditures for the overall project is listed below.
101290– UPP Engineering Design “River Trunk Gravity System” PROJECT EXPENDITURES:

Construction Contract (Ranger Pipelines) $20,720,263
Construction Contingency (Change Orders) 7.1% $1,465,372 Construction Administration – City Staff Support 0.8% $163,019 Engineering Design/Admin. – City Staff Support/Misc. 0.4% $72,758 City Construction Forces 0.1% $13,638
Construction Management Services – West Yost & Assoc. 13.1% $2,720,281 Engineering Support – Carollo Engineers 4.4% 909,437
TOTAL CONSTRUCTION EXPENDITURES: $26,064,768
COMMITTEE RECOMMENDATION:

The River Trunk Realignment Gravity System Project Rebid was presented to the Finance Committee on March 25, 2019, as part of the Upcoming Capital Improvement Construction Projects. The Committee report stated that as bids are received, staff will present projects directly to Council for award of construction.
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City Council, May 13, 2025
Accept the River Trunk Realignment Gravity System Project Rebid

CEQA/NEPA REQUIREMENTS:

Environmental review has been provided through a 2017 Wastewater Master Plan Environmental Impact Report (EIR) (SCH # 2016062033) certified by Council on January 28, 2020.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the River Trunk Realignment Gravity System Project Rebid as complete, releasing securities, releasing payments totaling $22,185,635 to Ranger Pipelines, Inc., of San Francisco CA, and authorizing the City Clerk to file a Notice of Completion.

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

1. Resolution

2. Contract Change Order Log

3. Project Suspension Form

4. Notice of Completion
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05/13/2025/ESD/PKambel 1 2025-

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-XX

RESOLUTION ACCEPTING THE RIVER TRUNK REALIGNMENT GRAVITY

SYSTEM PROJECT REBID AS COMPLETE, RELEASING SECURITIES, RELEASING PAYMENTS TOTALING $22,185,635 TO RANGER PIPELINES, INC., OF SAN FRANCISCO CA, AND AUTHORIZING THE CITY CLERK TO

FILE A NOTICE OF COMPLETION
WHEREAS, the 2007 Wastewater Collection System Treatment Plan (WWCSMP) identified key hydraulic and condition deficiencies in the City’s wastewater collection system; and
WHEREAS, the Rebid River Trunk Realignment Gravity System Project addressed those deficiencies in the River Trunk, Sutter Trunk, and Beard Brook Siphon; and
WHEREAS, the project was advertised for bids on July 20, 2021; and WHEREAS, bids were publicly opened on August 31, 2021, and Ranger Pipelines, Inc., of San Francisco CA, was the lowest responsible bidder at 19.33% below the engineers estimate; and
WHEREAS, on December 14, 2021, by Resolution No. 2021-505, Council awarded a contract to Ranger Pipelines, Inc, in the amount of $20,720,263; and WHEREAS,. the Contractor received the Notice to Proceed with a start date of March 7, 2022. All contract work was completed on July 30, 2024; and WHEREAS, the total project costs were $26,064,768, which included design, engineering support (Carollo Engineers), construction, construction management services (West Yost & Associates), and construction administration costs. The total project amount originally budgeted was $27,002,529 which included $22,792,289 for the construction contract and contingency with Ranger Pipelines, Inc; and #11..
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05/13/2025/ESD/PKambel 2 2025-
WHEREAS, the City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, updated by Resolution No. 2019-326 on July 9, 2019, established a contract change order authority of eight percent (8%) for construction contracts of this dollar value. Given the nature of this project and the high likelihood of changes to the scope of the project, staff requested and received an increase to the contract change order budget to 10% ($2,072,026); and
WHEREAS, there are twenty-three change orders resulting in an overall increase of $1,465,372 for change order work as listed on the attached change order log; and WHEREAS, by accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Modesto that the River Trunk Realignment Gravity System Project Rebid as complete, releasing securities, releasing payments totaling $22,185,635 to Ranger Pipelines, Inc., of San Francisco CA, and authorizing the City Clerk to file a Notice of Completion. #11..
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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 May, 2025, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________

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

BY: ______________________________________
JOSE M. SANCHEZ, City Attorney
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: April 17, 2025
TIME
EXT. Approved
2022/03 - River Trunk Realignment Gravity System Project (101290) Rebid PROJECT NUMBER AND NAME:
01 MID Underground Relocation at Garden and Colorado 02/20/24 $17,718.03 0 W.D. No Yes No Yes 02 Temp Paving and 7 Additional Days 02/20/24 $97,617.53 7 W.D. No No Yes Yes 03 Tuolumne Road Restoration and 5 Additional Working
Days
02/20/24 $88,273.50 5 W.D. No No Yes Yes
04 Manhole Tie-In on Tuolumne Blvd and Rosemont Ave.,
and 5 Additional Working Days.
02/20/24 $70,000.00 5 W.D. No No Yes Yes
05 Biofilter FRP Duct Support - 316 SST and One Additional Working Day.
02/20/24 $3,523.15 1 W.D. No No Yes Yes
06 Temp Striping of Tuolumne Blvd. Center Lane and 6
Additional Working Days.
02/20/24 $13,471.50 6 W.D. No No Yes Yes
07 Furnish and install of temporary line 02/20/24 $100,000.00 3 W.D. No Yes No Yes 08 Unforseen conditions 03/08/24 $75,067.59 5 W.D. No Yes No Yes 09 Tuolumne Blvd. Electrical Changes and 5 additional
working days
04/11/24 $63,766.21 5 W.D. No No No Yes
10 Temporary Rockwells on Garden with 1 Additional
Working Day for Rockwells
05/17/24 $4,711.31 1 W.D. No Yes No Yes
11 Pipe Support for FA FRP Duct at CSL Structure with 1 Additional Day
05/17/24 $4,729.18 1 W.D. Yes No No Yes
12 Pothole Repair and 1 Additional Working Day. 06/08/24 $11,353.38 1 W.D. No Yes No Yes 13 Colorado Ave Concrete Sidewalk and Curb & Gutter
Restoration and 10 Additonal Working Days
06/08/24 $51,834.18 10 W.D. No No Yes Yes
14 Added Water and Sewer Service Connections Due to
Parcel Split
08/09/24 $6,400.00 2 W.D. No No Yes Yes
15 MID Box Culvert Backfill and MID Crossing Removal with 24 Additional Working Days
08/09/24 $200,111.37 24 W.D. No Yes No Yes
16 Additional Dewatering Efforts with 129 Additional Working Days
08/09/24 $300,000.00 129 W.D. No Yes No Yes
17 Placement of Temporary Asphalt Concrete Paving 08/21/24 $150,295.36 0 W.D. No No Yes Yes #11..
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: April 17, 2025
TIME
EXT. Approved
18 ADA Ramps on Colorado Ave. No Additional Working
Days
09/23/24 $106,301.42 0 W.D. No No Yes Yes
19 Roadwork Restoration Colorado Ave. and Garden Ave.
and No Additional Working Days
09/23/24 $115,000.00 0 W.D. No No Yes Yes
20 FO Pullbox Grade Adjustments Garden & Colorado and
No Additional Working Days
09/23/24 $6,432.28 0 W.D. Yes No No Yes
21 Hydrant Bollards at FH AT STA 34+89 No additional
Working Days
09/23/24 $4,617.43 0 W.D. No No Yes Yes
22 Pothole Repairs on Avalon and No Additional Working
Days
09/23/24 $7,826.10 0 W.D. No No Yes Yes
23 Balancing Change Order 04/15/25 -$33,678.00 0 W.D. No Yes No Yes Total Change Orders Processed To Date: $1,465,371.52
Original Contract Amount: $20,720,263.00
IDA To:

Total Working Days Time Extension: 205
Original Director's CCO Authority: $2,072,026.00
IDA Date: 12/14/2021
Total Executed Change Orders To Date: $1,465,371.52
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: April 17, 2025
TIME
EXT. Approved
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MODESTO
Capital Project In Beneficial Use/Substantial Completion Notice ThisnoticemustbesubmittedtotheFinanceDepartmentwhen a capitalprojecthasreachedsubstantialcompletion,is in beneficial use or has entered the warranty period to meet financial reporting guidelines of depreciation.

Project #: 101290 Fund: 4210 Cost Center: UTL.Wastewater Eng. Design Contact: Pete Kambel Ext: 7544
When the Project was Created was it Non-Capital or Capital: Non-Capital X Capital Project Name in Oracle: River Trunk – Gravity System
Project Description:
(What new infrastructure
was built/created)
Project In Use/Completion Date or Council Acceptance Date: Accepted May 13, 2025 Warranty Period X Yes No
Project expenses include (Check one):

If yes, Project Warranty End Date: May 13, 2026
Non-Capital X Capital Capital and Non-Capital*
If expenses are mixed - Amount of total expenses to be recorded as Capital, either dollar amount or percentage:
* IQproject expenses include Capital and Non-Capital, an Itemized list o/New Assets and Costs which make up the amount/percentage listed above must be provided with this form Authorization Signatures to Begin Depreciation of Project Expense Project Manager:

Financial Analyst(Budget): Directorof Finance: Financial Analyst (Assets):

Latest Revision
Date:

Date:

Date:
01-FEB-2025
12,000 Linear Feet of Large Diameter Gravity Sewer
Pipe, and Water Mains.
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Requested by
City of Modesto/City Clerk’s Office
Return to City of Modesto/City Clerk’s Office:

PO Box 642
Modesto CA 95353

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on December 14, 2021 the City of Modesto, PO Box 642, Modesto, California 95353, a Municipal Corporation in the County of Stanislaus, State of California, awarded the contract to Ranger Pipeline, Inc., of San Francisco, CA for the project titled “River Trunk Realignment Gravity System Project Rebid” located on Colorado Avenue. On July 30, 2024, said contract, as a whole, was completed by Ranger Pipeline, Inc., and accepted by the Council of the City of Modesto at a regular meeting of the Council held on May 13, 2025.

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

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

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: April 16, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services/City Engineer SUBJECT: Award Construction Contract for the 2024 Park Security Lighting Project CONTACT: Nathan Houx, Parks Planning and Development Manager, [email protected], 209-571-5526
DESCRIPTION:

Consider approving the Plans and Specifications for the 2024 Park Security Lighting Project, accepting the Bid and Awarding a Construction Contract to Modesto Executive Electric, Inc. of Modesto, CA, in the amount not to exceed $781,195. (Funding Source: Measure H) STRATEGIC PLAN ELEMENT:

This item is consistent with the following 2020-2025 Strategic Plan Area of Focus: Quality of Life and Governance and Service Delivery.

BACKGROUND:

A multiyear plan has been established to help systematically address the deferred maintenance in the park system. Preventative maintenance, such as upgraded park security lighting, will increase safety and limit vandalism that might add to the deferred maintenance list. In June 2023, by Resolution 2023-243 Council approved the FY 2023-2024 budget, which included $2,170,000 of Measure H funding for year 1 of the preventative park maintenance plan. As part of the Year 1 preventative park maintenance allocation, $700,000, was budgeted for the upgrade of park lighting to LED lighting for additional park security.

The 2024 Park Security Lighting Project will consist of the removal of existing light fixtures and installation of new LED motion sensor light fixtures with new concrete footings, boxes, and conduit connections to existing electrical systems throughout Robertson Road Park, James Marshall Park, and Chrysler Park.

DISCUSSION:

The project was advertised for bids on OpenGov on March 13, 2025. Bids were publicly opened on April 15, 2025, pursuant to City Charter Section 1307 and six (6) bids were received. Two of those bids were determined non-responsive due to a failure to turn in bid bonds, leaving four (4) responsive bids. Modesto Executive Electric, Inc., of Modesto, CA, was determined to be the responsible bidder with the lowest responsive bid of $697,495. The bid tabulation is attached, and a summary of the responsive bids is below:
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City Council, May 13, 2025
Award Construction Contract for the 2024 Park Security Lighting Project

The bid analysis is:

Number of bids received 4
Number of bids within 10% of engineer’s estimate 1
Number of bids above the engineer’s estimate 4
Number of bids below the engineer’s estimate 0
Percent low bid is above the engineer’s estimate 5.25%
Modesto Executive Electric, of Modesto, CA, was 5.25% above the engineer’s estimate. The next lowest bid was 11.59% above the engineer’s estimate. Bidder competition and participation was evident as the City received four (4) responsive bids.

Modesto Municipal Code Section 8-3.203 generally requires all purchases which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. The award of contract for the construction of the 2024 Park Security Lighting Project, to Modesto Executive Electric, Inc., of Modesto, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Modesto Executive Electric, Inc., of Modesto, CA, was the lowest responsive and responsible bidder.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 1994-443 on July 19, 1994, revised on July 9, 2019, by Council Resolution No. 2019-326, and revised a second time on September 12, 2023, by Council Resolution No. 2023-405, established a contract change order authority of 10% for construction contracts up to $10,000,000. However, staff is requesting the Engineering Services Director’s Authority to issue change orders of 12% ($83,700) of the construction contract amount because this project is a small renovation project that has the potential for a higher amount of change orders.

While the contingency policy is utilized for each construction contract awarded by the City, it is not written into each contract, nor is it a guaranteed amount included in the final compensation to the contractor. Prior to bidding a project, staff works diligently to ensure that all projects and bid packages contain well-defined scopes of work and that all projects stay within budget.

FISCAL IMPACT:

Funding for this project is budgeted in Non-Capital Improvement Project (Non-CIP) account #101518 (23-24 Preventative Maintenance – Measure H). Additional funds, in the amount of $208,844, will be required to complete the project. Those funds will come from already allocated Measure H funding in CIP accounts that currently have tasks that are complete with remaining funds or anticipated remaining funds. No additional funding beyond what has already been allocated from Measure H is being requested at this time. The expense and revenue budget for the project shall be as outlined below:

Funding Sources (Measure H)
Project 101518 (current funding) $ 670,000
Project 101517 (remaining funds from completed tasks) $ 145,000 Project 101518 (remaining funds from completed tasks) $ 11,442 Project 101602 (remaining funds from completed tasks) $ 52,402 Project Funding Sources $ 878,844
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City Council, May 13, 2025
Award Construction Contract for the 2024 Park Security Lighting Project

ESTIMATED CONSTRUCTION EXPENSES
Construction $ 697,495
Construction Contingency (12%) $ 83,700
Construction Administration – City Staff (12%) $ 83,700 Design Support During Construction and Permitting (2%) $ 13,949 Total Estimated Project Cost $ 878,844
COMMITTEE RECOMMENDATION:

On January 13, 2025, this project was one of several park construction projects presented to the Safety & Communities Committee for consideration to minimize the time between bidding and Council award. The Committee approved the item to be forwarded to Council for approval.

CEQA/NEPA REQUIREMENTS:

City staff prepared a Notice of Exemption No. EA/PR&N 2025-04, and the project is categorically exempt from CEQA because it is a minor alteration to an existing facility involving a negligible or no expansion of use.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Plans and Specifications for the 2024 Park Security Lighting Project, accepting the Bid and Awarding a Construction Contract to Modesto Executive Electrical, Inc. of Modesto, CA., in the amount of $697,495, authorizing $83,700, for contingency (if needed), for a total payment amount not to exceed $781,195, and authorizing the City Manager, or his designee, to execute the Agreement.

Resolution amending the Fiscal Year 2024-25 Capital Improvement Program budget to fund Project #101518 (Preventative Maintenance – Measure H), Project #101517 (Deferred Maintenance – Measure H) and Project #101602 (24/25 Preventative Maintenance – Measure H) in an amount not to exceed $208,844 in transfers, revenue, and to budget expenditures to fund the project, and authorizing the City Manager, or his designee, to implement the provisions of this resolution.

Approved by:

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

1. Resolutions

2. Construction Contract – Modesto Executive Electrical, Inc.

3. Bid Results
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05/13/2025/ENG/NHoux/Item XX 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-

RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS FOR THE 2024 PARK SECURITY LIGHTING PROJECT, ACCEPTING THE BID AND

AWARDING A CONSTRUCTION CONTRACT TO MODESTO EXECUTIVE
ELECTRICAL, INC. OF MODESTO, CA., IN THE AMOUNT OF $697,495, AUTHORIZING $83,700, FOR CONTINGENCY (IF NEEDED), FOR A TOTAL PAYMENT AMOUNT NOT TO EXCEED $781,195, AND AUTHORIZING THE

CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT WHEREAS, a multiyear plan has been established to help systematically address the deferred maintenance in the park system. Preventative maintenance, such as upgraded park security lighting, will increase safety and limit vandalism that might add to the deferred maintenance list; and
WHEREAS, in June 2023, by Resolution 2023-243 Council approved the FY 2023-2024 budget, which included $2,170,000 of Measure H funding for year 1 of the preventative park maintenance plan; and
WHEREAS, as part of the year 1 preventative park maintenance allocation, $700,000, was budgeted for the upgrade of park lighting to LED lighting for additional park security; and
WHEREAS, the 2024 Park Security Lighting Project will consist of the removal of existing light fixtures and installation of new LED motion sensor light fixtures with new concrete footings, boxes, and conduit connections to existing electrical systems throughout Robertson Road Park, James Marshall Park, and Chrysler Park; and WHEREAS, the project was advertised for bids on March 13, 2025; and WHEREAS, bids were publicly opened on April 15, 2025, pursuant to City Charter Section 1307, and four bids were received; and
WHEREAS, Modesto Executive Electrical, Inc., of Modesto, CA, was determined #12..
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05/13/2025/ENG/NHoux/Item XX 2 2025-XX
to be the responsible bidder with the lowest responsive bid; and WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid; and
WHEREAS, the award of contract for the construction of the 2024 Park Security Lighting Project, to Modesto Executive Electrical, Inc. of Modesto, CA, conforms to Modesto Municipal Code, 8-3.203; and
WHEREAS, staff is requesting the Engineering Services Director’s Authority to issue change orders of 12% ($83,700) of the construction contract amount because this project is a small renovation project that has the potential for a higher amount of change orders; and
WHEREAS, staff recommends awarding a construction contract to Modesto Executive Electrical, Inc. of Modesto, CA.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the plans and specifications for the 2024 Park Security Lighting Project, accepts the Bid and awards a construction contract to Modesto Executive Electrical, Inc., of Modesto, CA, in the amount of $697,495, plus $83,700, in contingency (if needed), for a total amount not to exceed $781,195.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the contract, in a form approved by the City Attorney. #12..
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05/13/2025/ENG/NHoux/Item XX 3 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May 2025, by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following votes:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ________________________________

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

BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
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05/13/2025/PRN/NHoux/Item XX 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-
RESOLUTION AMENDING THE FISCAL YEAR 2024-25 CAPITAL
IMPROVEMENT PROGRAM BUDGET TO FUND PROJECT #101518
(PREVENTATIVE MAINTENANCE – MEASURE H), PROJECT #101517 (DEFERRED MAINTENANCE – MEASURE H) AND PROJECT #101602 (24/25 PREVENTATIVE MAINTENANCE – MEASURE H) IN AN AMOUNT NOT TO EXCEED $208,844 IN TRANSFERS, REVENUE, AND TO BUDGET

EXPENDITURES TO FUND THE PROJECT, AND AUTHORIZING THE CITY

MANAGER, OR HIS DESIGNEE, TO IMPLEMENT THE PROVISIONS OF

THIS RESOLUTION
WHEREAS, the City plans to renovate the existing light fixtures at Robertson Road Park, James Marshall Park, and Chrysler Park to new LED Motion sensor light fixtures, as part of the 2024 Park Security Lighting Project; and WHEREAS, Measure H funding of $208,844, must be allocated to fund a portion of the project; and
WHEREAS, the Fiscal Year 2024-2025 Capital Improvement Budget must be amended to fund Project 101518 – Preventative Maintenance – Measure H, Project 101517 (Deferred Maintenance – Measure H) and Project 101602 (24/25 Preventative Maintenance – Measure H) in a total amount of $208,844, to establish transfers, recognize revenue, and increase expenditures.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the amendments of the Fiscal Year 2024-2025 Capital Improvement Program Budget to fund project 101518 (Preventative Maintenance – Measure H), Project 101517 (Deferred Maintenance – Measure H) and Project 101602 (24/25 Preventative Maintenance – Measure H) in an amount not to exceed $208,844, in transfers, revenue and to budget expenditures to fund the project.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution. #12..
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05/13/2025/PRN/NHoux/Item XX 2 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May 2025, by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following votes:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ________________________________

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

BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
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-1- City of Modesto
2024 Park Security Lighting

CONTRACT
This Agreement, made and entered into in the City of Modesto, County of Stanislaus, State of California, this 13th day of May, 2025, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called City, and MODESTO EXECUTIVE ELECTRIC, INC., a California S Corporation, hereinafter called Contractor, R E C I T A L S :

WHEREAS, the City Manager of the City of Modesto, authorized the call for bids, approved the Plans and Specifications prepared under the direction of the Director of Engineering Services Department for the 2024 PARK SECURITY LIGHTING project and directed the City Clerk to advertise for sealed bids for doing said work and providing that bids be submitted on the 15th day of April, 2025; and
WHEREAS, the City Clerk, thereafter duly and regularly caused a notice to be published in the manner and for the time prescribed by law; and WHEREAS, Contractor, pursuant to the provisions of said notice duly filed a bid with the City Clerk, a true copy of which is now on file in the office of the City Clerk of the City of Modesto, and is hereby referred to and by this reference made a part hereof as fully as if set forth at length herein; and
WHEREAS, all bids received pursuant to said notice were opened and examined and publicly declared at the time specified in said advertisement for bids and at a regular meeting of the City Council held on the 13th day of May, 2025 by Resolution 2025-_______ the Council found and declared the bid of Contractor to be the lowest responsive bid and thereupon awarded a Contract to Contractor to do the Work referred to in the aforementioned Plans and Specifications.
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2024 Park Security Lighting
NOW, THEREFORE, the parties hereto mutually agree as follows:

1. SCOPE OF WORK, hereinafter called the Work.
a. Contractor shall furnish all labor, materials and equipment necessary to complete the Work as specified in the Plans and Specifications entitled 2024 PARK SECURITY LIGHTING , City of Modesto, Engineering Services Department, Project Number 2025-15, and in strict accordance with the conditions of the complete Contract Documents. All incidental Work not included in the Contract Documents or specified herein which is necessary to complete the Work so as to provide the system described, or shown, shall be furnished and installed as part of this Agreement at no additional cost to the City. The Work shall be complete and ready for service as described in the Contract Documents to the satisfaction of the Director of Engineering Services.
b. Contractor shall do and perform the Work contemplated hereby in a good and workmanlike manner under the direction of and to the satisfaction of the Director of Engineering Services of the City of Modesto.
c. Contractor shall do and perform the Work contemplated hereby and shall furnish all labor, materials, tools and equipment therefore at the prices herein specified to, wit:

CONTRACTOR’S BID
Item
No.

Item
Description
Unit of
Measure
Estimated
Quantity
Unit Price
(Figures)
Total Price
(Figures)

BASE BID

1. Construction Fencing LS 1 $21,000.00 $21,000.00

2. Demolition LS 1 $35,000.00 $35,000.00

3. 1" Conduit - PVC SCH 40 LS 1 $141,625.00 $141,625.00

4. Conductors LS 1 $28,000.00 $28,000.00

5. Conductor Grounds LS 1 $5,000.00 $5,000.00

6. Integral LED Lamp and Arm Mount EA 34 $1,600.00 $54,400.00 #12..
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2024 Park Security Lighting
Item
No.

Item
Description
Unit of
Measure
Estimated
Quantity
Unit Price
(Figures)
Total Price
(Figures)

7. Integral LED Lamp Parking Lot EA 6 $1,500.00 $9,000.00

8. Light Pole EA 33 $1,820.00 $60,060.00

9. Pole Base EA 33 $2,900.00 $95,700.00

10. Christy Box SF 12 $460.00 $5,520.00

11. Turf Reseeding LS 1 $14,000.00 $14,000.00
TOTAL BASE BID $469,305.00
BID ALTERNATE 1
101. Construction Fencing LS 1 $8,000.00 $8,000.00
102. Demolition LS 1 $5,000.00 $5,000.00
103. 1" Conduit - PVC SCH 40 LS 1 $90,210.00 $90,210.00 104. Conductors LS 1 $12,000.00 $12,000.00
105. Conductor Grounds LS 1 $4,000.00 $4,000.00
106. Integral LED Lamp and Arm Mount EA 15 $1,600.00 $24,000.00 107. Light Pole EA 14 $1,800.00 $25,200.00
108. Pole Base EA 14 $2,900.00 $40,600.00
109. Christy Box EA 8 $460.00 $3,680.00
110. 6" Concrete Flatwork SF 100 $35.00 $3,500.00
111. Turf Reseeding LS 1 $12,000.00 $12,000.00
TOTAL BID ALTERNATE 1 $228,190.00
TOTAL BASE BID & BID ALTERNATE 1 $697,495.00

2. CONTRACT DOCUMENTS. The complete Agreement between the parties consists of the documents listed below, including any addenda to these documents. The documents are complementary and provide for a complete work; if a discrepancy exists, the governing rank of the documents is set forth, in descending order:
a. Executed and signed, written Agreement;
b. Section 008000 Amendments and Supplements to the General Provisions c. All other sections of the Project Specifications;
d. Project Plans;
e. City Standard Details; current edition
f. City Standard Specifications; current edition
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2024 Park Security Lighting
g. Revised State Standard Specifications;
h. State Standard Specifications;
i. Revised State Standard Plans;
j. State Standard Plans; and
k. All required Bonds.

All documents specified above are intended to operate so that any component of the Work called for in one and not mentioned in any other, or vice versa, is to be executed the same as if mentioned in all of the documents. The listed documents comprise the Contract Documents.

3. COMMENCEMENT AND COMPLETION OF THE WORK. The Work
contemplated herein shall be commenced on the date specified in the Notice to Proceed for this Agreement. Completion of the work shall comply with the Specification. The Notice to Proceed shall not be issued until the Director of Engineering Services receives and has on file:
a. Proofs of insurance (approved by City Risk Manager), b. Bonds (approved by the City Attorney),
c. City of Modesto Business License, and
d. Executed Agreement.

Contractor will not be held responsible for failure to complete the Work within the specified time if delay is due to matters beyond its reasonable control. Contractor shall make all good faith attempts to overcome or to minimize such matters, and to finish the Work in the shortest reasonable amount of time.

4. PAYMENT. Payment for the Work to be done under this Agreement shall be at the price set forth in Section 1 hereof, and in accordance with the Contract #12..
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-5- City of Modesto
2024 Park Security Lighting
Documents, which are incorporated herein by this reference.

5. INDEMNITY. The Contractor shall hold the City, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of Contractor, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this Agreement. This provision does not apply to claims, loss, liability, damage or expense arising from (a) the sole negligence or willful misconduct of the City, or (b) the active negligence of the City.

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 in this Agreement for Contractor to procure and maintain a policy of insurance.

6. INSURANCE. During the term of this Agreement, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in Exhibit A, attached hereto and incorporated herein, and shall otherwise comply with the other provisions of Exhibit A. Contractor is responsible for uploading updated insurance documentation to the City’s “PINS Advantage” program.
a. Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance as required by Exhibit A for the duration of the project and through acceptance by City Council.
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2024 Park Security Lighting

7. BONDS. The Contractor shall furnish City the following separate surety bonds:
a. Performance Bond. Within 5 business days after receipt of the Notice of Award and prior to commencement of Work, the Contractor shall furnish a separate surety bond in an amount equal to one hundred percent (100%) of the Agreement price, shall be for the faithful performance of the Agreement, shall be approved by City, and shall be secured from a surety or sureties satisfactory to City.
b. Payment Bond. Within 5 business days after receipt of the Notice of Award and prior to commencement of Work, the Contractor shall furnish a separate surety bond in an amount at least equal to one hundred percent (100%) of the Agreement price as security for the payment of all persons 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.
c. Warranty Bond. Prior to issuance of a Notice of Completion for the contracted work, Contractor shall file with the City a Warranty Bond or equivalent security in the amount of ten percent (10%) of the estimated cost of the contracted work to guaranty and warranty the contracted work for a period of one (1) year following City Council acceptance thereof against any defective work or labor done, or defective materials furnished.

8. COMPLIANCE WITH ALL LAWS. Contractor hereby agrees that it and all subcontractors, if any, in the performance of the work described, designated and shown upon the Contract Documents herein referred to, will comply with all federal, state, county and #12..
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-7- City of Modesto
2024 Park Security Lighting
municipal laws, rules and regulations which may be applicable to the work herein contracted for, whether now in existence or hereafter adopted.

9. TERMINATION OF AGREEMENT.

Termination by City for Default of Contractor
Should Contractor default in the performance of this Agreement or materially breach any of its provisions, at its option, City may terminate this Agreement by giving written notification to Contractor. The termination date shall be the effective date of the notice. For the purposes of this section, material breach of this Agreement shall include, but not be limited to, any of the following: failure to perform required services or duties, willful destruction of City's property by Contractor, dishonesty or theft. Such termination shall be in accordance with the Contract Documents.

If this Agreement is terminated, Contractor shall cease all its work on the project as of the termination date and shall see to it that its employees, subcontractors and agents are notified of such termination and cease their work.

The 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 City as of the termination date.

Termination by City for Convenience
The City may terminate the Contractor's performance under the Agreement, either in whole or in part, at its own discretion or when conditions encountered during the Work make it impossible or impracticable to proceed, or when the City is prevented from proceeding with the Agreement by act of God, by law, or by official action of a public authority, or upon a determination that such termination is in the best interest and convenience of #12..
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the City, or whenever the City is prohibited from completing the Work for any reason. The City shall provide no less than ten (10) days written notice of its intent to terminate the Agreement for convenience, and shall endeavor to provide the Contractor with consultation with the City prior to termination.

A. Upon receipt of a written Notice of Termination pursuant to this section, the Contractor shall:

1. 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;

2. Terminate all orders and Subcontractors except as
necessary to complete any portion of the Work that is not terminated;

3. 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 subcontractors, but in no event shall recovery by any Contractor or subcontractor include lost profits for portions of the Work not completed or
undertaken, including materials not delivered;

4. 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
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accumulated by the Contractor in performing the Work
whether completed or in process;

5. Settle outstanding liabilities and claims, subject to the approval of City;

6. Complete performance of such part of the Work as has not been terminated;

7. Take such other actions as may be necessary, or as may be directed by the City for the protection and preservation of the Work and/or property related to the Work;

8. 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 project.

B. City will pay Contractor an amount based on the percentage of work 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:

1. Any actual costs incurred by the Contractor for restocking charges;

2. The agreed upon price of protecting the Work in any
manner, if any, as directed by the City;

3. The cost of settling and paying valid claims arising out of the termination of the Work such as subcontract
agreements or contracts for materials;
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4. The Agreement price allocable to the portion of the Work properly performed or goods supplied 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.

C. The City shall have the right to withhold any portion or the whole of the final payment under this provision in the event there are any outstanding Claims for compensation asserted either by the City against the Contractor or by any third party against the City or the Contractor which arise out of the Contractor's work.

Authorization to Terminate Agreement
Termination of the Agreement may be invoked by the City Manager, or his/her designee, subject to the right of the Contractor to appeal the City Manager, or his/her designee’s, decision to the City Council. The Contractor shall appeal by notifying the City Clerk in writing within ten (10) business days of receipt of notification from City to terminate the Agreement. In the event that termination of this Agreement is upheld by the City Council, any valid claims for delay shall be retroactive to the date of termination selected by the City Manager, or his/her designee.

10. NOTICES. Any notice, payment or instrument required or permitted by this Agreement to be given 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: Modesto Executive Electric, Inc.

Attn: Tori Simpson, President
446 Charity Way
Modesto, CA 95356
Phone (209) 238-9898, Fax (209) 238-9576
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City: City of Modesto
Director of Engineering Services
P.O. Box 642
Modesto, CA 95353
Phone (209) 577-5444, Fax (209) 577-4302

Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

11. WORKFORCE REQUIREMENTS. Contractor included both a signed Local Hire Certification as well as a Skilled and Trained Workforce Certification with its bid, and such certifications are incorporated herein by reference. Contractor shall comply with all applicable requirements, including record keeping requirements, of Articles 7 and 8 of Chapter 3 of the Modesto Municipal Code.

12. EXECUTION OF AGREEMENT. The undersigned signatory(ies) for Contractor warrant(s) and represent(s) that he/she/they is/are legally competent to execute the Agreement and has/have full authority to execute this Agreement.

13. DISPUTE RESOLUTION. All claims, controversies, or disputes arising out of or relating to this Agreement, including its performance by either party, shall be finally resolved by arbitration in accordance with the Contract Documents.

14. MISCELLANEOUS. Time is of the essence of this Agreement. #12..
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IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Agreement in duplicate by its City Manager and attestation by its City Clerk under authority of Resolution No. 2025-________ adopted by the Council of the City of Modesto on the 13th day of May, 2025, and Contractor has caused this Agreement to be duly executed.

CITY OF MODESTO, MODESTO EXECUTIVE ELECTRIC, INC.,
a California municipal corporation a California S Corporation

By _____________________________ By ____________________________ JOSEPH P. LOPEZ, City Manager Name Title

By ________________________________
Name Title
Federal ID #770323790
ATTEST:
(Seal)
By
DIANE NAYARES-PEREZ, CMC, City Clerk
APPROVED AS TO FORM:

By ________________________________
JOSE M. SANCHEZ, City Attorney

APPROVED AS TO FORM:

By ____________________________________
MATTHEW J. BRALEY, Risk Manager

Revised 11/25/2024
* Corporations - signature of two (2) officers
required or one (1) officer plus corporate seal.

Partnership - signature of a partner required
Sole Proprietorship - signature of proprietor
required
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Exhibit A -1 City of Modesto
2024 Park Security Lighting
Exhibit A:

Insurance Requirements for Construction Contracts
Contractor shall procure and maintain for the duration of the contract, and for 5 years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, their agents, representatives, employees or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Builder’s Risk (Course of Construction) insurance, utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions, is not required.

5. Professional Liability insurance, with limits no less than $2,000,000 per occurrence or claim (and $2,000,000 policy aggregate), is not required.

6. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions insurance, with limits no less than $2,000,000 per occurrence or claim (and $2,000,000 policy aggregate), is not required.

If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. #12..
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Exhibit A -2 City of Modesto
2024 Park Security Lighting
Umbrella or Excess Coverage
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.

The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance with coverage equal to ISO form CG 2010. For completed operations, a separate endorsement equal to ISO form CG 2037 is required.

Primary Coverage
The Additional Insured coverage under the Contractor’s policy shall be “primary and noncontributory” and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13. The City of Modesto does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.

Builder’s Risk (Course of Construction) Insurance
Contractor may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the Entity as a loss payee as their interest may appear. If the project does not involve new or major reconstruction, at the option of the Entity, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the Entity’s site. #12..
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Exhibit A -3 City of Modesto
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Claims Made Policies

If any coverage required is written on a claims-made coverage form:

1. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of contract work.

3. If coverage is cancelled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective, or start of work date, the Contractor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.

4. A copy of the claims reporting requirements must be submitted to the Entity for review.

5. If the services involve lead-based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.

Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
All Self-insured retentions must be disclosed to Risk Management for approval and shall not reduce the limits of liability. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. #12..
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Exhibit A -4 City of Modesto
2024 Park Security Lighting
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements are to be received and approved by the City’s Risk Manager before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to obtain a full certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Modesto
Attn: Risk Management
1010 10th Street
Modesto, CA 95354
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2024 Park Security Lighting
Bid Tabulation Wednesday, April 16, 2025
Project Title: 2024 Park Security Lighting
Project ID #: 2025-15
Vault ID #: 19-D-0399
Account #: 101518
Bid Opening: 4/15/2025 at 11:00 AM Designer: Electrical Advantage Engineering, Inc.

Basis of Award: Base Bid & Bid Alternate 1 Design Manager: Jason Ortega, Sr. Landscape Architect Project Description: Project consists of removal of existing light fixtures and installation of new LED motion sensor light fixtures with new concrete footings, boxes, conduit connections to existing electrical systems throughout Robertson Road, James Marshall, and Chrysler parks.

Item # Item Description Units Quantity Unit Price Extension Apparent Low Bidder
Modesto Executive Electric, Inc.
(209) 238-9898, Fax (209) 238-9576 446 Charity Way, Modesto, CA 95356 Base Bid

1. Construction Fencing LS 1 $21,000.00 $21,000.00

2. Demolition LS 1 $35,000.00 $35,000.00

3. 1" Conduit - PVC SCH 40 LS 1 $141,625.00 $141,625.00

4. Conductors LS 1 $28,000.00 $28,000.00

5. Conductor Grounds LS 1 $5,000.00 $5,000.00

6. Integral LED Lamp and Arm Mount EA 34 $1,600.00 $54,400.00

7. Integral LED Lamp Parking Lot EA 6 $1,500.00 $9,000.00

8. Light Pole EA 33 $1,820.00 $60,060.00

9. Pole Base EA 33 $2,900.00 $95,700.00

10. Christy Box SF 12 $460.00 $5,520.00

11. Turf Reseeding LS 1 $14,000.00 $14,000.00
Subtotal: $469,305.00
Bid Alternate 1
101. Construction Fencing LS 1 $8,000.00 $8,000.00
102. Demolition LS 1 $5,000.00 $5,000.00
103. 1" Conduit - PVC SCH 40 LS 1 $90,210.00 $90,210.00 104. Conductors LS 1 $12,000.00 $12,000.00
105. Conductor Grounds LS 1 $4,000.00 $4,000.00
106. Integral LED Lamp and Arm Mount EA 15 $1,600.00 $24,000.00 107. Light Pole EA 14 $1,800.00 $25,200.00
108. Pole Base EA 14 $2,900.00 $40,600.00
109. Christy Box EA 8 $460.00 $3,680.00
110. 6" Concrete Flatwork SF 100 $35.00 $3,500.00
111. Turf Reseeding LS 1 $12,000.00 $12,000.00
Subtotal: $228,190.00
Total: $697,495.00
Percent From Engineer's Estimate: 5.25%
St. Francis Electric, LLC
(510) 639-0639 975 Carden Street, San Leandro, CA 94577 Base Bid

1. Construction Fencing LS 1 $10,000.00 $10,000.00

2. Demolition LS 1 $27,000.00 $27,000.00

3. 1" Conduit - PVC SCH 40 LS 1 $40,567.00 $40,567.00
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2024 Park Security Lighting
Item # Item Description Units Quantity Unit Price Extension

4. Conductors LS 1 $10,000.00 $10,000.00

5. Conductor Grounds LS 1 $3,500.00 $3,500.00

6. Integral LED Lamp and Arm Mount EA 34 $2,450.00 $83,300.00

7. Integral LED Lamp Parking Lot EA 6 $2,500.00 $15,000.00

8. Light Pole EA 33 $3,100.00 $102,300.00

9. Pole Base EA 33 $5,500.00 $181,500.00

10. Christy Box SF 12 $1,250.00 $15,000.00

11. Turf Reseeding LS 1 $4,100.00 $4,100.00
Subtotal: $492,267.00
Bid Alternate 1
101. Construction Fencing LS 1 $3,750.00 $3,750.00
102. Demolition LS 1 $12,500.00 $12,500.00
103. 1" Conduit - PVC SCH 40 LS 1 $44,950.00 $44,950.00 104. Conductors LS 1 $10,000.00 $10,000.00
105. Conductor Grounds LS 1 $2,100.00 $2,100.00
106. Integral LED Lamp and Arm Mount EA 15 $2,450.00 $36,750.00 107. Light Pole EA 14 $3,100.00 $43,400.00
108. Pole Base EA 14 $5,500.00 $77,000.00
109. Christy Box EA 8 $1,250.00 $10,000.00
110. 6" Concrete Flatwork SF 100 $45.00 $4,500.00
111. Turf Reseeding LS 1 $2,250.00 $2,250.00
Subtotal: $247,200.00
Total: $739,467.00
Percent From Engineer's Estimate: 11.59%
Fluoresco Services, LLC
(602) 276-0600 4048 E. Superior Avenue, Phoenix, AZ 85040 Base Bid

1. Construction Fencing LS 1 $3,473.36 $3,473.36

2. Demolition LS 1 $40,484.36 $40,484.36

3. 1" Conduit - PVC SCH 40 LS 1 $48,020.52 $48,020.52

4. Conductors LS 1 $21,225.23 $21,225.23

5. Conductor Grounds LS 1 $3,640.83 $3,640.83

6. Integral LED Lamp and Arm Mount EA 34 $2,066.18 $70,250.12

7. Integral LED Lamp Parking Lot EA 6 $1,757.35 $10,544.10

8. Light Pole EA 33 $4,650.25 $153,458.25

9. Pole Base EA 33 $4,817.98 $158,993.34

10. Christy Box SF 12 $253.72 $3,044.64

11. Turf Reseeding LS 1 $6,152.62 $6,152.62
Subtotal: $519,287.37
Bid Alternate 1
101. Construction Fencing LS 1 $3,304.61 $3,304.61
102. Demolition LS 1 $6,101.48 $6,101.48
103. 1" Conduit - PVC SCH 40 LS 1 $38,512.32 $38,512.32 104. Conductors LS 1 $15,070.05 $15,070.05
105. Conductor Grounds LS 1 $2,523.47 $2,523.47
106. Integral LED Lamp and Arm Mount EA 15 $2,066.30 $30,994.50 107. Light Pole EA 14 $4,680.37 $65,525.18
108. Pole Base EA 14 $5,302.38 $74,233.32
109. Christy Box EA 8 $128.25 $1,026.00
110. 6" Concrete Flatwork SF 100 $35.00 $3,500.00
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Item # Item Description Units Quantity Unit Price Extension 111. Turf Reseeding LS 1 $3,962.69 $3,962.69
Subtotal: $244,753.62
Total: $764,040.99
Percent From Engineer's Estimate: 15.29%
Tennyson Electric, LLC
(925) 606-1038 7275 National Drive, Suite A2, Livermore, CA 94550 Base Bid

1. Construction Fencing LS 1 $20,000.00 $20,000.00

2. Demolition LS 1 $15,000.00 $15,000.00

3. 1" Conduit - PVC SCH 40 LS 1 $45,000.00 $45,000.00

4. Conductors LS 1 $24,500.00 $24,500.00

5. Conductor Grounds LS 1 $10,000.00 $10,000.00

6. Integral LED Lamp and Arm Mount EA 34 $3,200.00 $108,800.00

7. Integral LED Lamp Parking Lot EA 6 $2,650.00 $15,900.00

8. Light Pole EA 33 $4,400.00 $145,200.00

9. Pole Base EA 33 $4,500.00 $148,500.00

10. Christy Box SF 12 $1,500.00 $18,000.00

11. Turf Reseeding LS 1 $2,750.00 $2,750.00
Subtotal: $553,650.00
Bid Alternate 1
101. Construction Fencing LS 1 $15,000.00 $15,000.00
102. Demolition LS 1 $15,000.00 $15,000.00
103. 1" Conduit - PVC SCH 40 LS 1 $36,500.00 $36,500.00 104. Conductors LS 1 $18,500.00 $18,500.00
105. Conductor Grounds LS 1 $8,500.00 $8,500.00
106. Integral LED Lamp and Arm Mount EA 15 $3,200.00 $48,000.00 107. Light Pole EA 14 $2,650.00 $37,100.00
108. Pole Base EA 14 $4,400.00 $61,600.00
109. Christy Box EA 8 $1,500.00 $12,000.00
110. 6" Concrete Flatwork SF 100 $185.00 $18,500.00
111. Turf Reseeding LS 1 $1,400.00 $1,400.00
Subtotal: $272,100.00
Total: $825,750.00
Percent From Engineer's Estimate: 24.61%
Engineer's Estimate
Base Bid

1. Construction Fencing LS 1 $14,939.00 $14,939.00

2. Demolition LS 1 $20,000.00 $20,000.00

3. 1" Conduit - PVC SCH 40 LS 1 $12,621.00 $12,621.00

4. Conductors LS 1 $151,486.00 $151,486.00

5. Conductor Grounds LS 1 $16,231.00 $16,231.00

6. Integral LED Lamp and Arm Mount EA 34 $1,851.00 $62,934.00

7. Integral LED Lamp Parking Lot EA 6 $1,352.00 $8,112.00

8. Light Pole EA 33 $3,124.00 $103,092.00

9. Pole Base EA 33 $677.00 $22,341.00

10. Christy Box SF 12 $451.00 $5,412.00

11. Turf Reseeding LS 1 $2,000.00 $2,000.00
Subtotal: $419,168.00
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2024 Park Security Lighting
Item # Item Description Units Quantity Unit Price Extension Bid Alternate 1
101. Construction Fencing LS 1 $8,751.00 $8,751.00
102. Demolition LS 1 $2,000.00 $2,000.00
103. 1" Conduit - PVC SCH 40 LS 1 $18,078.00 $18,078.00 104. Conductors LS 1 $112,997.00 $112,997.00
105. Conductor Grounds LS 1 $12,107.00 $12,107.00
106. Integral LED Lamp and Arm Mount EA 15 $1,851.00 $27,765.00 107. Light Pole EA 14 $3,124.00 $43,736.00
108. Pole Base EA 14 $677.00 $9,478.00
109. Christy Box EA 8 $451.00 $3,608.00
110. 6" Concrete Flatwork SF 100 $30.00 $3,000.00
111. Turf Reseeding LS 1 $2,000.00 $2,000.00
Subtotal: $243,520.00
Total: $662,688.00
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: April 22, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
Jessica Hill, Director of Community Economic and Development SUBJECT: Amending the Annual Commercial Cannabis Permit Fee and Application Fee and Adopting the Commercial Cannabis Business Modification Request Deposits CONTACT: Gina Brown, Revenue Collection and Compliance Manager, [email protected], 209-577-5381
DESCRIPTION:

Consider amending the Annual Commercial Cannabis Permit Fees and Application Fee for operational and non-operational approved Cannabis businesses, reestablishing the Cannabis Application Permit Fee as a refundable deposit and adopting the Commercial Cannabis Business Modification Request Deposits for changes in ownership and location. (Funding Source:

Cannabis Fund)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The passage of Proposition 64, The Adult Use of Marijuana Act, in November 2016 ended the prohibition on adult-use of cannabis in California and created a statewide regulatory structure for adult-use cannabis businesses similar to that previously approved for medicinal cannabis businesses. Proposition 64 gave local governments control of taxes and fees associated with cannabis businesses operating within their jurisdictions.

On December 12, 2017, by Resolution No. 2017-526, Council established a non-refundable Commercial Cannabis Application Fee for an optional pre-application screening fee of $1,250, a Phase 1 for $4,750, and a Phase 2 deposit fee of $10,000 or $20,000 for retail businesses over 10,000 square feet.

On January 16, 2018, the Modesto City Council adopted Ordinance No. 3684-C.S. which permitted certain commercial cannabis uses, subject to land use and zoning criteria. These regulations permit cannabis retailers within City limits, but do not allow any in the downtown area. #13..
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City Council, May 13, 2025
Amending the Annual Commercial Cannabis Permit Fee and Application Fee and Adopting the Commercial Cannabis Business Modification Request Deposits

The Ordinance further established that wholesale cannabis businesses, such as testing, nurseries, microbusinesses, manufacturing, distribution, and cultivation (indoor) are permitted.

On December 4, 2018, under Resolution No. 2018-538, City Council imposed the Annual Commercial Cannabis Permit Fee for approved cannabis businesses to pay for on-going administration and monitoring of approved businesses in the amount of $21,740. The fee cost was analyzed by the City’s cannabis consultants HdL Companies. HdL interviewed the City Manager, individual staff from Code Enforcement, City Attorney, Police, Fire, and Finance. Based on the interviews, the consultants experience in administering other commercial cannabis programs, and estimated staff time and costs, including equipment needs and training costs, HdL provided an estimate of $21,740 annually for the permit fee to carry out Resolution No. 2018-538.

On November 9, 2021, under Resolution No. 2021-441, City Council approved amending the Annual Commercial Cannabis Permit Fee to decrease the amount by $3,008 from $21,740 to $18,732 annually based on estimated staff time costs, and HdL Companies consulting services including annual financial audits, annual inspections, and subject matter expertise. This reduction is primarily due to fewer financial audits being required, as some businesses remained nonoperational longer than initially anticipated. Also on November 9, 2021, by Resolution No. 2021- 442, Council approved simplifying the application process for commercial cannabis businesses by retaining an optional pre-application screening fee of $1,250 and consolidating Phase 1 and Phase 2 deposit fees into a single non-refundable flat fee of $6,380.

On November 14, 2023, under Resolution No. 2023-504, the City Council approved amending the Annual Commercial Cannabis Permit Fee by establishing two types of commercial cannabis permit fees: an Operational Annual Commercial Cannabis Permit Fee and a Non-Operational Annual Commercial Cannabis Permit Fee. The Operational Annual Commercial Cannabis Permit Fee for Fiscal Year 2024 was kept at $18,732 for the on-going administration, annual inspections, financial audits, and monitoring of operational cannabis businesses. The Non-Operational Annual Commercial Cannabis Permit Fee for Fiscal Year 2024 was established at $4,307 for Council approved businesses that are non-operational for the on-going administration and monitoring.

DISCUSSION:

ANNUAL CANNABIS PERMIT FEE:

Each year, City staff calculates the Commercial Cannabis Permit Fee based on estimated costs from the Community & Economic Development, City Attorney’s Office, City Manager’s Office, Police, and Finance departments. These estimates reflect staff time required to support the cannabis program. The fee also includes expenses for annual financial audits, compliance reviews, and general consulting services provided by HdL Companies and Avenu Insights, related to approved Cannabis businesses. Once the annual cost is determined, the fee is divided among the approved permitted businesses. Each year, any increases or decreases to the number of approved businesses is factored in, and the cost may adjust accordingly.

For Fiscal Year 2026, the permit fee is based on the approved eighteen (18) permits, consisting of nine (9) operational businesses and nine (9) non-operational businesses. Costs are distributed among all permitted businesses. It is important to note that the Annual Commercial Cannabis Permit Fee pays for the costs associated with the ongoing administration of legally permitted cannabis businesses and it does not pay for enforcement activities associated with illegal #13..
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City Council, May 13, 2025
Amending the Annual Commercial Cannabis Permit Fee and Application Fee and Adopting the Commercial Cannabis Business Modification Request Deposits

cannabis businesses. The attached Annual Commercial Cannabis Permit Fee Cost Analysis provides a detailed breakdown of the City’s staff estimate.

For Fiscal Year 2025, the proposed Operational Annual Commercial Cannabis Permit Fee is $22,821 an increase in the amount of $4,089 for Council-approved operational cannabis businesses covering ongoing administration, annual inspections, financial audits, and monitoring.

The proposed Non-Operational Annual Commercial Cannabis Permit Fee is $3,991 a decrease in the amount of $316 for Council-approved non-operational cannabis businesses covering ongoing administration and monitoring.

Several factors have contributed to the approximate 21% increase to the Operational Annual Commercial Cannabis Permit Fee, including a smaller number of operational businesses, resulting in fewer entities sharing the overall costs. Additionally, audit costs have risen by 64% and inspections fees have increased 50% since the last fee adjustment in 2021 due to greater complexity and time requirements exceeding initial estimates. In addition, staff salary cost has increased approximately 14% since the last fee adjustment, primarily due to cost-of-living increases and increases to overhead rates.

The permit fee will not be prorated, except for newly established approved businesses. In such cases, the fee may be prorated for the remaining months of the fiscal year once the permit is approved by Council, Cannabis Committee, or any other final cannabis permitting authority, including the Director of Finance. The City will not prorate permit fees for the period between the City’s approval of a business and when that business becomes operational. Any partial month shall be treated as a full month when calculating the Annual Commercial Cannabis Permit Fee.

The Annual Commercial Cannabis Permit Fee is due annually on August 1st and considered delinquent at the close of business hours on August 15th. In lieu of paying the Annual Commercial Cannabis Permit Fee at City Hall, the fee may be deposited in the United States mail, postage prepaid, on the due date, provided the transmitting envelope contains a postage cancellation stamp or post mark showing cancellation no later than 12:00 p.m. on the due date. If the due date falls on a Saturday, Sunday, or Holiday, the due date shall be extended to the next regular business day on which City Hall is open to the public.

The Annual Commercial Cannabis Permit Fee will be reviewed and reconciled annually to capture any increases or decreases related to the administration of the compliance program. The permit fee is designed as a cost recovery measure, not a revenue-generating fee. Any overpayment or underpayment will be reconciled annually and applied to future cannabis permit fees.

COMMERCIAL CANNABIS PERMIT APPLICATION DEPOSIT:

During Fiscal Year 2025, an analysis was completed evaluating the application process for cannabis businesses, comparing the actual costs incurred for the review of recent permit applications compared to the revenue generated by the reduced non-refundable fee. It was determined that due to recent efficiencies of the review process that reestablishing the application fee as a deposit, at the reduced levels, would maintain a net zero impact to the General Fund from cannabis program services while also providing applicants with much needed capital relief through a refund of their deposit if actual City costs are less than applicant payments. #13..
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City Council, May 13, 2025
Amending the Annual Commercial Cannabis Permit Fee and Application Fee and Adopting the Commercial Cannabis Business Modification Request Deposits

Along with the reestablishment of the cannabis permit application as a refundable deposit, the adoption of a business modification deposit for commercial cannabis businesses has also been noted as a need for the City. Business modification can take two forms through a change in ownership request or a change in location. Pursuant to section 10-3.704(d) of the Modesto Municipal Code, permits are not transferable to another individual or physical location without City approval. Current permitted businesses are required to submit a business modification request form for formal approval of either change. Each request carries a different level of administrative cost incurred by the City for review noted below.

Business Modification Type Review Components
Change in ownership Cannabis program administrative staff reviews documents including proof of filing with the Secretary of State, bylaws, operating agreements, partnership agreements, corporate meeting minutes, and purchase agreements to confirm the ownership change is in compliance with City policy.

Change in location City Staff with current cannabis consultant support reviews the updated security plan and premises diagram for compliance with State and Local regulations. The Planning Division performs a zoning analysis to determine compliance with Modesto Municipal Code section 10-3.703. The Finance
department provides confirmation that all applicant related taxes and fees are current. Cannabis program administrative staff also confirms that the business is compliant with annual inspections and audits and a site inspection is conducted to confirm that unauthorized cannabis actives are not engaged in at the proposed location.

Due to the similar steps involved in a relocation request’s review compared to the commercial cannabis application process, it was determined that the charging of a $5,000 deposit was reasonable to recover costs while allowing for a refund to the applicants at the end of the process.

A change in ownership is slightly less involved than a relocation, and the review process does not require the current assistance of a consultant which has led to lower expenses incurred by the City. Based on an analysis of three (3) ownership change requests received throughout the past two (2) years, the average City administrative cost burden was found to be approximately $2,000 per request which would be the basis for the initial change in ownership deposit.

FISCAL IMPACT:

The fees were approved by Council as cost recovery and not revenue generating fees. The last five (5) years of the Annual Commercial Cannabis Permit Fee Revenues and the Cannabis Application Fee Revenues are shown on Table #1.
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City Council, May 13, 2025
Amending the Annual Commercial Cannabis Permit Fee and Application Fee and Adopting the Commercial Cannabis Business Modification Request Deposits

Table #1
Fee Revenue FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Total Annual Commercial
Cannabis Permit Fee
Revenue $250,282 $256,644 $293,734 $338,093 $266,295 $1,405,048 Cannabis Application
Fee Revenue $0 $1,630 $12,760 $30,347 $14,250 $58,987
COMMITTEE RECOMMENDATION:

This item was considered by the Finance Committee at the meeting held April 21, 2025, and the Committee recommended forwarding the item to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution adopting an Amendment to the Annual Commercial Cannabis Permit Fee for City approved business, approving the Operational Annual Commercial Cannabis Permit Fee with an annual cost of $22,821 and the Non-operational Annual Commercial Cannabis Permit Fee with an annual cost of $3,991.

Resolution approving an amendment to the Commercial Cannabis Permit Application Fee adjusting the fee to a $6,380 refundable deposit.

Resolution adopting Commercial Cannabis Business Modification Request deposits in the amount of $2,000 for changes in ownership and $5,000 for changes in location.

Approved by:

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

1. Resolutions (3)

2. Annual Cannabis Fee Cost Analysis
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1 05/13/2025/Finance/GBrown/ItemX 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-XX

RESOLUTION ADOPTING AN AMENDMENT TO THE ANNUAL COMMERCIAL

CANNABIS PERMIT FEE FOR CITY APPROVED BUSINESSES, APPROVING THE

OPERATIONAL ANNUAL COMMERCIAL CANNABIS PERMIT FEE WITH AN ANNUAL COST OF $22,821 AND THE NON-OPERATIONAL ANNUAL
COMMERCIAL CANNABIS PERMIT FEE WITH AN ANNUAL COST OF $3,991 WHEREAS, the passage of Proposition 64, The Adult Use of Marijuana Act, in November 2016 ended the prohibition on adult-use of cannabis in California and created a statewide regulatory structure for adult-use cannabis businesses, and WHEREAS, on January 16, 2018, the Modesto City Council adopted Ordinance No. 3684-C.S. which permitted certain commercial cannabis uses, subject to land use and zoning criteria, and
WHEREAS, on December 4, 2018, under Resolution No. 2018-538, City Council imposed the Annual Commercial Cannabis Permit Fee for approved cannabis businesses to pay for on-going administration and monitoring of approved businesses in the amount of $21,740, and
WHEREAS, on November 9, 2021, under Resolution No. 2021-441, City Council approved amending the Annual Commercial Cannabis Permit Fee to decrease the amount by $3,008 from $21,740 to $18,732 annually based on estimated staff time costs consulting services including annual financial audits, and annual inspections, and WHEREAS, on November 14, 2023, under Resolution No. 2023-504, the City Council approved amending the Annual Commercial Cannabis Permit Fee by establishing two types of commercial cannabis permit fees: an Operational Annual Commercial Cannabis Permit Fee and a Non-Operational Annual Commercial Cannabis Permit Fee, and #13..
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2 05/13/2025/Finance/GBrown/ItemX 2025-XX
WHEREAS, the Operational Annual Commercial Cannabis Permit Fee for Fiscal Year 2024 was kept at $18,732 for the on-going administration, annual inspections, financial audits, and monitoring of operational cannabis businesses and the Non-Operational Annual Commercial Cannabis Permit Fee for Fiscal Year 2024 was established at $4,307 for Council approved businesses that are non-operational for the on-going administration and monitoring, and
WHEREAS, the Operational Annual Commercial Cannabis Permit Fee for Fiscal Year 2026 is being proposed at $22,821 for Council approved cannabis business that are operational for the on-going administration, annual inspections, financial audits, and monitoring, and
WHEREAS, the Non-Operational Annual Commercial Cannabis Permit Fee for Fiscal Year 2026 is being proposed at $3,991 for Council approved businesses that are non-operational for the on-going administration, and monitoring, and WHEREAS, the annual permit fee will be reviewed and reconciled annually to capture increases or decreases related to the administration of the compliance program.

The permit is approved as a cost recovery and not revenue generating, any over or under payment will be reconciled annually and applied against future year cannabis permit fees; and
WHEREAS, the amendment of the Commercial Cannabis Permit Fee was heard by the Finance Committee on April 21, 2025 with the committee recommending to forward the adoption of the deposits to Council for approval.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves amending the operational annual commercial cannabis permit fee #13..
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3 05/13/2025/Finance/GBrown/ItemX 2025-XX
with an annual cost of $22,821 and non-operational annual commercial cannabis permit fee with an annual cost of $3,991. No proration of the fee shall be made for any portion of the period for which the Annual Commercial Cannabis Permit Fee is payable, except in the case of a newly established and approved business. The Annual Commercial Cannabis Permit Fee may be prorated for the number of months remaining in the year at the time the permit is initially approved by Council, Cannabis Committee, or any other cannabis permitting authority, the City will not prorate an Annual Commercial Cannabis Permit Fee for the time between the City’s approval of a business and when that business becomes operational; the Annual Commercial Cannabis Permit Fee is due annually on August 1st and delinquent at the close of business hours on the 15th of August, and for the purpose of proration, a fractional part of a month shall be considered as a full month, and in lieu of paying the Annual Commercial Cannabis Permit Fee at the City Hall, the fee may be deposited in United States mail, postage prepaid, on the due date, provided the transmitting envelope contains a postage cancellation stamp showing cancellation not later than 12:00 p.m. on the due date, and if the due date falls on Saturday, Sunday or Holiday the due date shall be the next regular business day on which the City Hall is open to the public.
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4 05/13/2025/Finance/GBrown/ItemX 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May, 2025 by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

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

BY: __________________________________________
JOSE M. SANCHEZ, City Attorney
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05/13/2025/Finance/GBrown/ItemX 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-XX

RESOLUTION APPROVING AN AMENDMENT TO THE COMMERCIAL
CANNABIS PERMIT APPLICATION FEE ADJUSTING THE FEE TO A $6,380

REFUNDABLE DEPOSIT
WHEREAS, the City Council has approved a Commercial Cannabis Ordinance that established the regulatory framework for commercial cannabis businesses to operate within the City of Modesto; and
WHEREAS, the City developed the application and permit procedures, forms, and administration protocols for commercial cannabis permits; and WHEREAS, staff time and City materials have been and will continue to be expended to establish the application process and procedures; and WHEREAS, the City may collect fees to recover the costs related to these services; and
WHEREAS, on December 12, 2017, under Resolution No. 2017-526, City Council imposed a non-refundable Commercial Cannabis Application Fee for an optional pre-application screening fee of $1,250, a Phase 1 for $4,750, and a Phase 2 deposit fee of $10,000 or $20,000 for retail businesses over 10,000 square feet; and WHEREAS, on November 9, 2021, by Resolution No. 2021-442, City Council adopted a single commercial cannabis application fee to simplify the application process to merge the phase 1 and phase 2 amounts into a single non-refundable flat fee of $6,380; and
WHEREAS, the application fees should be updated in proportion with actual costs for the specific activities and services related to commercial cannabis permits, and due to continued efficiencies it has been noted that adjusting the application fee to a #13..
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05/13/2025/Finance/GBrown/ItemX 2 2025-XX
refundable deposit will allow for the City to reasonably recover costs while providing applicants the opportunity to receive a refund should actual expenses be less than the deposit; and
WHEREAS, the amendment of the commercial cannabis permit application fee was heard by the Finance Committee on April 21, 2025 with the committee recommending to forward the adoption of the deposits to Council for approval.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves an amendment to the commercial cannabis permit application fee adjusting the fee to a $6,380 refundable deposit.
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05/13/2025/Finance/GBrown/ItemX 3 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May, 2025 by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

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

BY: __________________________________________
JOSE M. SANCHEZ, City Attorney
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05/13/2025/Finance/GBrown/ItemX 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-

RESOLUTION ADOPTING COMMERCIAL CANNABIS BUSINESS
MODIFICATION REQUEST DEPOSITS IN THE AMOUNT OF $2,000 FOR CHANGES IN OWNERSHIP AND $5,000 FOR CHANGES IN LOCATION WHEREAS, the passage of Proposition 64, The Adult Use of Marijuana Act, in November 2016 ended the prohibition on adult-use of cannabis in California and created a statewide regulatory structure for adult-use cannabis businesses; and WHEREAS, on January 16, 2018, the Modesto City Council adopted Ordinance No. 3684-C.S. which permitted certain commercial cannabis uses, subject to land use and zoning criteria; and
WHEREAS, pursuant to section 10-3.704(d) of the Modesto Municipal Code, permits are not transferable to another individual or physical location without City approval; and
WHEREAS, on June 27, 2023, by Resolution No. 2023-298, Council approved a change in ownership policy for commercial cannabis permits within the City to provide guidance on the approval process for these changes; and WHEREAS, the City continues to also receive relocation requests from the permitted commercial cannabis businesses throughout the City which requires additional time, effort and costs for the review of updated security plans, premises diagrams as well as zoning reviews; and
WHEREAS, a fee to recover the costs incurred by the City to review and approve these business modification requests has not been adopted to date; and #13..
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05/13/2025/Finance/GBrown/ItemX 2 2025-XX
WHEREAS, commercial cannabis permit related fees shall be set by Resolution of the City Council in accordance with Modesto Municipal Code section 10-3.704 (f)(7); and
WHEREAS, City staff conducted a historical analysis of all staff costs, professional services, and legal expenditures related to business modification requests since the inception of the cannabis program in 2018; and WHEREAS, an initial refundable deposit in the amount of $5,000 for changes in location and $2,000 for changes in ownership was calculated to reasonably recover costs incurred by both business modification requests and each deposit will be reconciled annually; and
WHEREAS, the adoption of both business modification request deposits were heard by the Finance Committee on April 21, 2025 with the committee recommending to forward the adoption of the deposits to Council for approval.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby adopts commercial cannabis business modification request deposits in the amount of $2,000 for changes in ownership and $5,000 for changes in location. #13..
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05/13/2025/Finance/GBrown/ItemX 3 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 13th day of May, 2025 by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

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

BY: __________________________________________
JOSE M. SANCHEZ, City Attorney
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City of Modesto
Cannabis Permits Annual Fee Analysis
4/2/2025
Department/Activity Employee Type/ Program Name
Hourly &
Overhead
Rate/Unit Rate
HoursRequired
Estimated
OperationalPermit Cost
Estimated
NonOperational
Permit Cost
Estimated
Program Cost Roles and Responsibilities
City Attorney's Office City Attorney ‐ Billable Hrs 327.50 140.0 36,680.00 9,170.00 45,850.00 Provides legal advice to staff and drafts non‐compliance issue notices to business operators.

City Attorney's Office City Deputy Attorney ‐  Direct Charge 295.00 12.0 1,770.00 1,770.00 3,540.00 Provides legal advice to staff and drafts non‐compliance issue notices to business operators.

City Attorney's Office Paralegal III ‐ Direct Charge 275.00 12.0 1,650.00 1,650.00 3,300.00 Cannabis program administration.

City Manager's Office Deputy City Manager ‐ S.D. 173.55 6.0 521.00 520.30 1,041.30 Monthly cannabis meetings and Cannabis Committee meetings.

City Manager's Office Deputy City Manager ‐ A.V.G 211.45 6.0 634.00 634.70 1,268.70 Monthly cannabis meetings and Cannabis Committee meetings.

City Manager's Office City Manager 211.45 ‐                     ‐                     ‐                     ‐                     Monthly cannabis meetings.Community & Economic Development Director 145.52 59.9 7,845.00 871.65 8,716.65 Cannabis Program oversight.

Community & Economic Development Business Analyst 83.55 344.0 22,993.00 5,748.20 28,741.20 Cannabis program administration.

Community & Economic Development Advertising & Shipping fees 277.00 ‐                     271.00 14.31 285.31 Advertising & Shipping fees Finance Department Director of Finance 146.35 40.0 2,342.00 3,512.00 5,854.00 Weekly cannabis meetings, ad hoc questions, and discussions.

Finance Department Revenue Collections and Compliance Manager 95.68 110.0 7,367.00 3,157.80 10,524.80 Manages and coordinates with consultant audit staff overs collection of fees and taxes Finance Department Account Clerk II 45.85 12.0 523.00 27.20 550.20 Collects fees, taxes, responds to permittee inquiries.

Finance Department Revenue Collections and Compliance Supervisor 88.32 180.0 10,333.00 5,564.60 15,897.60 Time will be moved from FA to Supervisor Finance Department Financial Analyst III 82.02 20.0 984.00 656.40 1,640.40 Miscellaneous questions, monthly revenue reports, scheduling onboarding meetings, assist with HDL Audits, annual permit fee billing, Monthly & quarterly reports to operators.

Finance Department Account Tech II 58.07 25.0 1,161.00 290.75 1,451.75 Misc. Questions ‐ ongoing, assisting with fee collection, opening cannabis accounts.

Finance Department Senior Account Clerk 50.08 6.0 300.00 0.48 300.48 Deposit preparation for Loomis. ACH Payment review and reconciliation.

Finance Department Cannabis Module Maintenance 7,193.00 1.1 7,121.00 791.30 7,912.30 HDL software ‐ need to send monthly cannabis tax remittance form. Creates Annual permit due letters. Report out monthly remittance.

Finance Department Cannabis Training ‐ Annual 535.00 ‐                     495.00 55.00 550.00 Annual training for City staff for HdL, Avenu Insights & Analytics Consultant 8,222.00 9.0 73,998.00 ‐                     73,998.00 Conducts financial audits annually.

HdL, Avenu Insights & Analytics Consultant 2,000.00 9.0 18,000.00 ‐                     18,000.00 Conducts one compliance inspections per year for dispensaries.

HdL‐Compliance Reviews Consultant 250.00 0.8 10.00 190.00 200.00 Conduct Site Plan Evaluations.

HdL‐General Consulting Consultant 250.00 10.0 2,125.00 375.00 2,500.00 General consulting/subject matter expertise as needed for Community & Economic Development Department.

HdL‐General Consulting Consultant 250.00 25.0 5,625.00 625.00 6,250.00 General consulting/subject matter expertise as needed for the Finance Department.

Police Department Lieutenant 168.23 5.0 757.00 84.15 841.15 Reviews and approves background checks conducted by the Consultant. Receives escalated complaints, investigates thefts and other crimes.

Police Department Captain 148.70 5.0 669.00 74.50 743.50 Reviews and approves background checks conducted by the Consultant. Receives escalated complaints, investigates thefts and other crimes.

Police Department Sergeant 134.72 10.0 1,212.00 135.20 1,347.20 Conducts non‐qualified sales program, monitors crime statistical data and service calls related to cannabis operations.

Total Program Costs 205,386.00 35,918.54 $ 241,305
9 Operational 9 non‐operational
$ 22,821 $ 3,991
City of Modesto
Cannabis Permits Annual Fee Analysis
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 13, 2025
Date: April 8, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: January and February 2025 Grant Application and Awards CONTACT: Maria Garnica, Accounting Manager, [email protected] 209-577-5249
DESCRIPTION:

Consider accepting an Informational Report on the January and February 2025 Grant Applications and Awards. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The Finance Department coordinated with California Consulting1 to update the Administrative Directive 7.2, “Grant Management.” The revised directive was updated on July 26, 2023, to streamline the grant management process and to establish enhanced controls on local match requirements, including potential future costs which could be required as part of a grant agreement.

This directive streamlined the grant process and has eliminated the requirement to go to Council for the application and acceptance of grant awards if the grant does not require local match contributions exceeding $100,000. Grant applications and awards that require a local match contribution which exceeds $100,000 must be approved by City Council following the Director of Finance and City Manager’s approval. The City Manager is authorized to approve all grant applications and awards which exceed $25,000 and those which require local match contribution under $100,000. The Director of Finance is authorized to approve grant applications and awards under $25,000 with no local funding requirements. All grant applications and awards require the approval of the Director of Finance. Departments may be required to obtain Council’s approval for grant applications and awards with no local match at the discretion of the City Manager. 1 California Consulting, Inc. – https://californiaconsulting.org/ #14..
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City Council, May 13, 2025
January and February 2025, Grant Application and Awards

Due to the need for rapid turnaround on grant application and award acceptance required by the granting agencies, this directive allows for City departments to apply for more grants within the grant application periods and provide quick response to award acceptance deadlines.

As stated within Administrative Directive 7.2, the Finance Department will inform Council of all grant activity by preparing a bi-monthly informational report on both grant applications and awards. Additionally, the Finance Department has implemented a grant management software, eCivis2, which established a workflow approval process and serves as a centralized databased of all City grant applications and awards. Additionally, eCivis acts as a research tool for grants for all City Departments. City departments continue to actively pursue new grant opportunities as part of notifications received from federal, state, and local agencies they have subscribed to, such as Department of Housing, Department of Transportation, State Water Resources Control Board, Department of Justice and professional government associations. City departments assign staff to monitor these grant application notices to determine if the City meets the required qualifications to apply for the grant.

On October 11, 2022, under Resolutions 2022-418, 2022-419, and 2022-420, City Council approved three (3) one-year agreements with two (2) one-year extension options, for On-call Water Resource grant research and writing services with Provost & Pritchard Consulting Group, West Yost Associates and Woodard & Curran to assist with grant research opportunities for the Utilities Department.

DISCUSSION:

During the months of January and February of 2025, the City Manager and Director of Finance approved the following grant applications recommended by City staff based on opportunities to receive federal, state and/or local grant funds for the City with no local match requirement or local match requirements under $100,000.

Modesto Police Department:
(Grant Application $217,206 – Local Match $0) 2025 Cannabis Grant, CA3917 Department of California Highway Patrol: Cannabis Tax Fund Grant Program Education – FY 2026 from Department of California Highway Patrol (CHP) Impaired Driving Section (IDS) Cannabis Grant Unit (CGU). Law Enforcement grants provide financial assistance to allied agencies for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products. The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Organization/Agency’s effectiveness through training and development of new strategies. (Grant Application $40,700 – Local Match $0) 2025 Raymus Foundation Grant, COM0098 2025 Raymus Foundation Grant from Raymus Foundation. Funds from this grant will be used to purchase night vision googles for the SWAT Team (4 units for a total of $32,000) to ensure SWAT Team is fully prepared to respond to high-risk situations occurring in lowlight environments. Additional funds from this grant will be used to purchase binoculars for Investigative Services Units (12 units for total of $8,700). Binoculars are used by investigators and detectives during surveillance operations and prior to serving search warrants.
2 eCivis software is provided by Euna Solutions – http://eunasolutions.com/solutions/grants/ #14..
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City Council, May 13, 2025
January and February 2025, Grant Application and Awards