Agenda packet — Finance Committee, May 19, 2025 (part 1 of 2)

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www.modestogov.com
AGENDA
City of Modesto

FINANCE COMMITTEE

COUNCIL WORKSHOP
2001-40 Del Puerto Room
Tenth Street Place, 1010 10th Street
Modesto, California
Monday, May 19, 2025 at 4:00 PM
Roll Call: Rosa Escutia-Braaton, Chair
David Wright, Vice-Chair
Nick Bavaro, Member
Alternates: Eric Alvarez, Jeremiah Williams, Chris Ricci, Sue Zwahlen Council has not delegated directive or final approval authority to the Committees.

Committee actions are recommendations to the full City Council, not final decisions on an issue. * Public Comment will only be in-person. Members of the public who wish to address the Committee, by providing public comment, during the meeting must do so in-person in the 2001-40 Del Puerto Room. 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 Committee Member 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 Committee 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.
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"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.

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 Committee meeting via Zoom
The City of Modesto is now offering the ability to view Committee 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,
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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 Committee meeting.

Joining the Committee 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

PUBLIC COMMENTS IN PERSON
Three-minute time limit per speaker.

Only interested persons in the audience may present these matters. Under State law, Committee Members 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 Committee Member or the Committee itself may take action to direct staff to place a matter of business on a future agenda.

SUBMITTING COMMENTS BY E-MAIL
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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 Committee Members 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 www.modestogov.com/councilmeetings In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting
Any and all of the following agenda items are subject to action by the Modesto City Council.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED:

Information concerning the consent items listed below has been forwarded to each Committee Member prior to this meeting for study. Unless some member of the audience or Committee Member has a question concerning an item and asks that it be withdrawn from the consent list, the Committee approves the items at one time. The action taken by the Committee 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 Committee Member.

Consent

1. Consider the recommended budget adjustments to Fiscal Year 2024-25 Annual Operating and Capital Improvement Program Budgets; and forwarding to Council for approval. (Funding Source: Various Funds)
 Motion recommending the budget adjustments to 2024-25 Annual Operating and Capital Improvement Program Budgets; and forwarding to Council for approval.
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BUDGET; Steve Christensen, 209-577-5390, [email protected] Consent

2. Consider the updates to the City’s Investment Policy and forwarding to Council for approval. (Funding Source: Not Applicable)
 Motion recommending the updates to the City’s Investment Policy and forwarding to Council for approval.

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

3. Consider a list of projects to be funded with Road Repair and Accountability Act Tax Proceeds for Fiscal Year 2025-2026 and forwarding to Council for approval. (Funding Source: Senate Bill 1 Funds)
 Motion recommending a list of projects to be funded with Road Repair and Accountability Act Tax Proceeds in an amount up to $5,753,385 and forwarding to Council for approval.

PUBLIC WORKS; John Sphar, 209-342-2235, [email protected] Consent

4. Consider the Agreement for Tire Technician Services for Fleet Services to McCoy Truck Tire Service Center, Modesto, CA for a total amount not to exceed $614,361 over five years and forwarding to Council for approval. (Funding Source: Fleet Management Fund)
 Motion recommending the Award of Bid and Agreement for Tire Technician Services for Fleet Services to McCoy Truck Tire Service Center, Modesto, CA for two-year agreement with three one-year extension options, for annual estimated annual cost of $120,000 and a total amount not to exceed $614,361 over five years and forwarding to Council for approval.

PUBLIC WORKS; Patrick Crowley, 209-342-2274, [email protected] Consent

5. Consider the extension of the Compost Facility Flexible Sales Pricing Pilot Program, originally approved on April 2, 2019, for a five-year extension effective August 1, 2025, through July 31, 2030, and forwarding to Council for approval. (Funding Source:

Compost Fund)
 Motion recommending the extension of the Compost Facility Flexible Sales Pricing Pilot Program for a five-year extension effective August 1, 2025, through July 31, 2030; and forwarding to Council for approval.

PUBLIC WORKS; Guillermo Padilla Aguilera, 209-571-5145, [email protected]
Consent

6. Consider the submittal of Grant Applications, accepting Grant Awards, and amending the annual budgets for all Used Oil Payment Program Grants to California Department - 4 -
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of Resources and Recovery, and forwarding to Council for approval. (Funding Source:

Not Applicable)
 Motion recommending the submittal of Grant Applications, accepting Grant Awards, and amending the annual budgets for all Used Oil Payment Program Grants to California Department of Resources and Recovery; and forwarding to Council for approval.

PUBLIC WORKS; Kolton Pacheco, 209-577-5493, [email protected] Consent

7. Consider the submittal of Grant Applications, accepting Grant Awards and amending the annual budgets for all the Beverage Container Recycling City/County Payment Programs to California Department of Resources Recycling and Recovery, and forwarding to Council for approval. (Funding Source: Not Applicable)  Motion recommending the submittal of Grant Applications, accepting Grant Awards, and amending the annual budgets for all the Beverage Container Recycling City/County Payment Program Grants to California Department of Resources Recycling and Recovery; and forwarding to Council for approval.

PUBLIC WORKS; Rosene Nguyen, 209-577-5453, [email protected] Consent

8. Consider the First Amendment with HDR Engineering, Inc., of Folsom, CA to complete assigned work and to gain Regulatory Compliance for the Carpenter Road Landfill, Modesto California, increasing the Agreement amount by $47,800 and forwarding to Council for approval. (Funding Source: Carpenter Road Landfill)  Motion recommending the First Amendment with HDR Engineering, Inc to complete assigned work and to gain Regulatory Compliance for the Carpenter Road Landfill, Modesto California, increasing the Agreement amount by $47,800 to a new total amount of $351,450 through the term of the Agreement; and forwarding to Council for approval.

PUBLIC WORKS; Rosene Nguyen, 209-577-5453, [email protected] Consent

9. Consider the Second Amendment with HDR Engineering, Inc. Folsom, Ca for the Feasibility Study for Compost, increasing the Agreement amount by $94,658 over the term of the Agreement, and forwarding to Council for approval. (Funding Source:

Compost Facility Improvement Fund)
 Motion recommending the Second Amendment with HDR Engineering, Inc. for the Feasibility Study for Compost, increasing the Agreement amount by $94,658 to a revised total amount not to exceed $287,775 over the term of the Agreement and forwarding to Council for approval.

PUBLIC WORKS; Rosene Nguyen, 209-577-5453, [email protected]

NEW BUSINESS
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10. Consider the updates to the City’s Debt Management Policy and forwarding to Council for approval. (Funding Source: Not Applicable)
 Motion recommending the updates to the City’s Debt Management Policy and forwarding to Council for approval.

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

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

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
Date: April 29, 2025
TO: Finance Committee
Rosa Escutia-Braaton, Chair
David Wright, Vice-Chair
Nick Bavaro, Member
FROM: Joseph P. Lopez, City Manager
SUBJECT: Monthly Budget Adjustment Report – May 2025
CONTACT: Steve Christensen, Office of Performance Management and Budget Director, [email protected] 209-577-5390
DESCRIPTION:

Consider the recommended budget adjustments to Fiscal Year 2024-25 Annual Operating and Capital Improvement Program Budgets; and forwarding to Council for approval. (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 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 are included as an attachment to this report (Exhibit A). As in past reports, adjustments are segregated by fund and department as appropriate. The adjustments are reflected in a more summarized version and supporting documentation is available for review upon request.

Also 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 Director consistent with the authority levels that were approved by Council with the passing of the Fiscal Year 2024-25 Operating Budget via Resolution No. 2024- 191.
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Finance Committee, May 19, 2025
Monthly Budget Adjustment Report – May 2025

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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.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the budget adjustments to 2024-25 Annual Operating and Capital Improvement Program Budgets; and forwarding to Council for approval.

Approved by:

Joseph P. Lopez, City Manager
Attachments:

1. Exhibit A – Budget Adjustments Requiring Council Approval

2. Exhibit B – Staff Approved Budget Adjustments
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Monthly Budget Adjustment Report

EXHIBIT A

COMMUNITY AND ECONOMIC DEVELOPMENT
 A budget adjustment of $94,993 is necessary in the Grants – CED Grants Reimbursed (1346) for Project 101575 – Travelers Motel project. The grant revenue for this project was received upfront, and quarterly interest on the unspent grant funds must now be recognized. This adjustment will account for the interest revenue received to date and align the project's discretionary expenditure accounts accordingly.

ENGINEERING SERVCES
 A budget adjustment of $132,734 is necessary in the Capital Grants – Streets CIP Projects Fund (3160) for Project 101519 – AB170 County Islands project. The grant revenue for this project was received upfront, and quarterly interest on the unspent grant funds must now be recognized. This adjustment will account for the interest revenue received to date and align the project's discretionary expenditure accounts accordingly.

FINANCE
 A budget adjustment in the amount of $265,620 in the Public Financing Authority 98 & 07 Bonds Fund (2150) is necessary to fund the increase in the annual debt service.

Additionally, the transfer from the General Fund (0100) to the Public Financing Authority 98 & 07 Bonds Fund (2150) is being increased by the same amount. The increase for the transfer will come from General Fund carryover reserves. The increase in cost is due to the variable rate debt which was higher than previously expected.

PUBLIC WORKS
 A budget adjustment in the amount of $300,000 is needed in the Surface Transportation Fund (1700) to increase the Upgrade High Voltage FY 24/25 Project (101616) and increase the transfer out from the Gas Tax Fund (1730) to the project. This project will continue to upgrade the High Voltage Circuits within the City. City Council per resolution 2019-91 recommended the approach to replace 150 high voltage streetlights each year at an estimated cost of $1,000,000. This adjustment is accounting for the remaining anticipated in Fiscal Year 2024-2025 as the project approaches completion.

UTILITIES
 A budget adjustment in the amount of $177,604 in the Water 2008 Water Refunding Revenue COP 2008 Series Fund (4130) is necessary to fund the increase in the annual debt service. Additionally, the transfer from the Water Fund (4100) to the Water 2008 Water Refunding Revenue COP 2008 Series Fund (4130) is being increased by the same amount. The increase in cost is due to the variable rate debt which was higher than previously expected.
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Department Director/Director of Office Performance and Budget (OPMB)/City Manager Approved Budget Adj 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-131 OPMB Dir 0100 General Fund 33050 - After-school Program Part-time Salaries Exp $ 1,192,734 $ (150,000) $ 1,042,734 AT-131 OPMB Dir 0100 General Fund 33130 - Aquatics Part-time Salaries Exp $ 367,418 $ 150,000 $ 517,418 Total Changes for Fund 0100 $ 1,560,152 $ - $ 1,560,152 AT-124 OPMB Dir 1340 Grants - Operation Block Grants 101328 - Cannabis Equity Grant Interest Revenue on Bank Account Rev $ 14,412 $ 9,087 $ 23,499 AT-124 OPMB Dir 1340 Grants - Operation Block Grants 101328 - Cannabis Equity Grant CED.Administration Exp $ 364,096 $ 9,087 $ 373,183 Total Changes for Fund 1340 $ 378,508 $ 18,174 $ 396,682 AT-123 OPMB Dir 1341 Grants - Operation Grants
Reimbursed 101405 - CCPP 21/22 Interest Revenue on Bank Account Rev $ - $ 630 $ 630 AT-123 OPMB Dir 1341 Grants - Operation Grants
Reimbursed 101405 - CCPP 21/22 AUC - Advertising Exp $ 12,500 $ 630 $ 13,130 AT-126 CM 1341 Grants - Operation Grants
Reimbursed 101658 - UOPP15 CA Recycle - PW Rev $ - $ 30,316 $ 30,316 AT-126 CM 1341 Grants - Operation Grants
Reimbursed 101658 - UOPP15 AUC - Advertising Exp $ - $ 12,000 $ 12,000 AT-126 CM 1341 Grants - Operation Grants
Reimbursed 101658 - UOPP15 AUC - Professional Services Exp $ - $ 9,000 $ 9,000 AT-126 CM 1341 Grants - Operation Grants
Reimbursed 101658 - UOPP15 AUC - Svcs City Forces Exp $ - $ 9,316 $ 9,316 AT-129 CM 1341 Grants - Operation Grants
Reimbursed CCPP FY 24/25 Intergov - State/CalRecycle Rev $ - $ 54,477 $ 54,477 AT-129 CM 1341 Grants - Operation Grants
Reimbursed CCPP FY 24/25 AuC - Beverage Container Collection Exp $ - $ 29,977 $ 29,977 AT-129 CM 1341 Grants - Operation Grants
Reimbursed CCPP FY 24/25 AuC - Litter Clean-Up Exp $ - $ 2,000 $ 2,000 AT-129 CM 1341 Grants - Operation Grants
Reimbursed CCPP FY 24/25 AUC - Advertising Exp $ - $ 2,500 $ 2,500 AT-129 CM 1341 Grants - Operation Grants
Reimbursed CCPP FY 24/25 AUC - Recycling Education Exp $ - $ 2,500 $ 2,500 AT-129 CM 1341 Grants - Operation Grants
Reimbursed CCPP FY 24/25 AUC - Svcs City Forces Exp $ - $ 17,500 $ 17,500 Total Changes for Fund 1341 $ 12,500 $ 170,846 $ 13,130 AT-125 CM 1342 Police Grants 101633 - Tobacco Grant 42040 - Intergov - Fed - DOJ Rev $ - $ 50,000 $ 50,000 AT-125 CM 1342 Police Grants 101633 - Tobacco Grant Appr Unit A Exp $ - $ 45,000 $ 45,000 AT-125 CM 1342 Police Grants 101633 - Tobacco Grant Appr Unit C Exp $ - $ 5,000 $ 5,000 AT-135 OPMB Dir 1342 Police Grants 101059 - 2017-2018 SLESF 48010 - Interest Revenue Rev $ 45,595 $ 1,017 $ 46,612 AT-135 OPMB Dir 1342 Police Grants 101059 - 2017-2018 SLESF Appr Unit C Exp $ 282,142 $ 1,017 $ 283,159 AT-136 OPMB Dir 1342 Police Grants 101577 - National Night Out 48010 - Interest Revenue Rev $ - $ 1,083 $ 1,083 AT-136 OPMB Dir 1342 Police Grants 101577 - National Night Out 47031 - Miscellaneous Donations/Contributions Rev $ 35,000 $ 4,455 $ 39,455
AT-136 OPMB Dir 1342 Police Grants 101577 - National Night Out Appr Unit C Rev $ 35,000 $ 5,538 $ 40,538 AT-137 OPMB Dir 1342 Police Grants 101217 - 2019-20 SLESF 48010 - Interest Revenue Rev $ 15,914 $ 138 $ 16,052 AT-137 OPMB Dir 1342 Police Grants 101217 - 2019-20 SLESF Appr Unit C Exp $ 147,705 $ 138 $ 147,843 AT-138 OPMB Dir 1342 Police Grants 101284 - 20-21 SLESF 48010 - Interest Revenue Rev $ 28,956 $ 1,888 $ 30,844 AT-138 OPMB Dir 1342 Police Grants 101355 - 21-22 SLESF 48010 - Interest Revenue Rev $ 28,956 $ 1,888 $ 30,844 AT-138 OPMB Dir 1342 Police Grants 101424 - 22-23 SLESF 48010 - Interest Revenue Rev $ 28,956 $ 1,888 $ 30,844 AT-138 OPMB Dir 1342 Police Grants 101539 - 23-24 SLESF 48010 - Interest Revenue Rev $ 28,956 $ 1,888 $ 30,844 AT-138 OPMB Dir 1342 Police Grants 101284 - 20-21 SLESF Appr Unit C Exp $ 28,956 $ 1,888 $ 30,844 AT-138 OPMB Dir 1342 Police Grants 101355 - 21-22 SLESF Appr Unit C Exp $ 28,956 $ 1,888 $ 30,844 AT-138 OPMB Dir 1342 Police Grants 101424 - 22-23 SLESF Appr Unit C Exp $ 28,956 $ 1,888 $ 30,844 AT-138 OPMB Dir 1342 Police Grants 101539 - 23-24 SLESF Appr Unit C Exp $ 28,956 $ 1,888 $ 30,844 Total Changes for Fund 1342 $ 793,004 $ 128,490 $ 921,494 AT-127 CM 1346 CED Grants 101575 - Travelers Motel Interest Revenue on Bank Account Rev $ 8,064 $ 31,569 $ 39,633 AT-127 CM 1346 CED Grants 101575 - Travelers Motel Svcs City Forces-Interfund Exp $ 8,064 $ 31,569 $ 39,633 Total Changes for Fund 1346 $ 8,064 $ 63,138 $ 39,633
This budget adjustment will use a portion of the part-time salary budget $150,000 for the after school program (33050) to fund the Aquatic's Programs (33130) part time staffing for spring and summer programs.

A budget adjustment in the amount of $630 is needed to recognize revenue received from interest and to program offsetting expenses in a like amount.

A budget adjustment is necessary to increase the revenue and expense budget for the Go-Biz Cannabis Equity Grant project. This interest revenue is received and distributed directly to the project because the grant is paid up grant (not reimbursement based) and therefore the cash sitting in our bank account is included in an investment pool which earns interest.

The City of Modesto has received a grant form the State of California for the Used Oil Payment Program. This grant will provide funding for advertising, promotional items, events, and staff time.

A budget adjustment is necessary to increase both the revenue and expense budgets for the Traveler's Motel project due to interest revenue received. This interest revenue is directly allocated to the project because the grant is paid upfront (not on a reimbursement basis). As a result, the cash sitting in our bank account is included in an investment pool that earns interest.

The City of Modesto received grant funding in the amount of $54,447 from the City/County Payment Program through CalRecycle. These funds will be utilized to enhance the current recycling program and expand our efforts through education and outreach, advertising and collection programs. In addition, allocated funds will support a designated staff member.

This budget adjustment is needed in the amount of $50,000 to create a new project budget for the State of California DOJ Tobacco Grant awarded to the Modesto Police Department in the amount of $50,000. The remaining amount of $497,511 will be taken to City Council for approval with the Monthly Budget adjustments. This is to also program revenues and offsetting expenses, as per the approved grant program categories of the expenditure and as contained in the grant contract.

A budget adjustment is necessary to recognize interest revenue for Project 101059.

A budget adjustment in the amount of $5,538 is needed to recognize revenue received from donations to National Night Out even and interest earned to program offsetting expenses in a like amount.

A budget adjustment is necessary to recognize interest revenue for Project 101217.

A budget adjustment is necessary to recognize interest revenue for various SLESF Projects 101284, 101355, 101424 and 101539
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Department Director/Director of Office Performance and Budget (OPMB)/City Manager Approved Budget Adj 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-134 OPMB Dir 3130 Parks Fund 101380 - Park security Camera AUC - CON Creekside CBA Exp $ 10,000 $ (1) $ 9,999 AT-134 OPMB Dir 3130 Parks Fund 101380 - Park security Camera AUC - CON TRRP Neece Dr Exp $ 7,000 $ 1 $ 7,001 Total Changes for Fund 3130 $ 7,000 $ - $ 7,001
AT-122 OPMB Dir 3170 Capital Grants - HUD CIP Projects 100866 - Senior Playground CON Exp $ 947,454 $ (54) $ 947,400 AT-122 OPMB Dir 3170 Capital Grants - HUD CIP Projects 100866 - Senior Playground EDA Exp $ 81,875 $ 54 $ 81,929 Total Changes for Fund 3170 $ 81,875 $ - $ 81,929
AT-128 CM 3218 Kiernan Business Park South #2
CFD Fund
CED - Kiernan Business Park South #2
CFD Annexation CS-CD-Time and Materials Fee Rev $ - $ 12,269 $ 12,269 AT-128 CM 3218 Kiernan Business Park South #2
CFD Fund
CED - Kiernan Business Park South #2
CFD Annexation Professional Services Exp $ - $ 4,000 $ 4,000 AT-128 CM 3218 Kiernan Business Park South #2
CFD Fund
CED - Kiernan Business Park South #2
CFD Annexation Legal Services Exp $ - $ 4,000 $ 4,000
AT-128 CM 3218 Kiernan Business Park South #2
CFD Fund
CED - Kiernan Business Park South #2
CFD Annexation Services City Forces - Interfund Exp $ - $ 4,269 $ 4,269 Total Changes for Fund 3218 $ - $ 24,538 $ 24,538
AT-133 CM 4100 Water Fund 43020 - UTL - Water System Analysis Professional Services Exp $ 116,789 $ 25,000 $ 141,789 AT-133 CM 4100 Water Fund 43020 - UTL - Water System Analysis Services City Forces - Interfund Exp $ 69,184 $ 25,000 $ 94,184 Total Changes for Fund 4100 $ 185,973 $ 50,000 $ 235,973 AT-130 OPMB Dir 4210 Sewer Operations Fund 101313 - JM Pike Park Renovation EDA Exp $ 2,295,968 $ (200,000) $ 2,095,968 AT-130 OPMB Dir 4210 Sewer Operations Fund 101313 - JM Pike Park Renovation CA Exp $ 2,543,096 $ 200,000 $ 2,743,096 Total Changes for Fund 4210 $ 4,839,064 $ - $ 4,839,064 AT-132 OPMB Dir 6710 TRRP CIP Fund 101109 - TRRP River Overlook CA Exp $ 54,600 $ (7,500) $ 47,100 AT-132 OPMB Dir 6710 TRRP CIP Fund 101109 - TRRP River Overlook CON Exp $ 545,272 $ (15,000) $ 530,272 AT-132 OPMB Dir 6710 TRRP CIP Fund 101109 - TRRP River Overlook CTGY-CIP Exp $ 54,601 $ (7,500) $ 47,101 AT-132 OPMB Dir 6710 TRRP CIP Fund 101109 - TRRP River Overlook EDA Exp $ 345,467 $ 30,000 $ 375,467 Total Changes for Fund 6710 $ 999,940 $ - $ 999,940
A transfer is needed between tasks to cover the Council approved amendment (Reso 2025-111) to the design contract for the TRRP River Overlook Project.

A budget adjustment of $12,269 is necessary to recognize developer deposits received and to increase the Professional Services expense budget.

A budget adjustment is necessary to redistribute budget between tasks on Project 101313. The overall project budget is not changing.

A budget adjustment is necessary to move $54 from tasks CON to EDA to bring these tasklines our of negative. The project will then be closed.

A budget adjustment is necessary to increase the Water Systems Analysis cost center budget to account for costs associated with a consultant agreement and the A budget adjustment is necessary to redistribute $1 from Task Creekside SBA to TRRP Neece Dr to close PO 265433. Taskline TRRP Neece Dr is currently overbudget by $.01
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
Date: April 21, 2025
TO: Finance Committee
Rosa Escutia-Braaton, Chair
David Wright, Vice-Chair
Nick Bavaro, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Investment Policy Updates
CONTACT: Calogero Maniscalco, Senior Financial Analyst
[email protected], 209-577-5219
DESCRIPTION:

Consider the updates to the City’s Investment Policy and forwarding to Council for approval. (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 deposits and invests funds in accordance with the principles of sound treasury management and applicable laws. City staff believes that it is important to keep the City Council informed on all the City’s investment activity and continues to present monthly investment reports to Council. The Finance Department also evaluates the City’s Investment Policy on an annual basis and will bring it to Council for review and approval when updates are required.

DISCUSSION:

PFM Asset Management LLC (“PFMAM”), the City’s investment advisor, provides investment management, research, and supervision of the City’s Managed Funds. PFMAM completed their annual review of the City’s Investment Policy and is recommending changes to the Policy to be consistent with changes in the sections of the California Government Code 53560 et seq. (the “Code”) that govern the investment of public funds, and to better align Policy language with Code language. PFMAM’s recommended change is discussed below, and incorporated in the attached Policy documents:
 Updated “Standard & Poor’s” to “S&P Global” to reflect their updated name. #2..
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Finance Committee, May 19, 2025
Investment Policy Updates

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A copy of the proposed Investment Policy is attached (Attachment 1), with revisions indicated/underlined. An additional copy is attached (Attachment 2), with the same revisions accepted and integrated in the body of the text (a “clean” copy of the updated Policy).

Changes to the Policy are subject to approval by the City Council at a legally noticed public meeting.

FISCAL IMPACT:

There is no direct fiscal impact associated with this action.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the updates to the City’s Investment Policy and forwarding to Council for approval.

Approved by:

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

1. Investment Policy (FY26 With Edits)

2. Investment Policy (FY26 Clean Copy)
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1 CITY OF MODESTO

CITY COUNCIL POLICY
LATEST REVISION DATE: 05/20/2024
POLICY NUMBER: 1.019
CITY DEPARTMENT: Finance
SUBJECT: Investment Policy
PURPOSE:

The purpose of this document is to identify various policies and procedures that enhance opportunities for a prudent and systematic investment policy and to organize and formalize investment-related activities.

SCOPE:

The Investment Policy applies to all funds and investment activities of the City except the investment of bond proceeds, which are governed by the appropriate bond documents, and any pension or other post-employment benefit funds held in a trust.

BACKGROUND:

Under Section 2-3.401 of the Municipal Code, it is the function of the Finance Department to deposit and invest funds in accordance with sound treasury management. As a charter city, Modesto operates its pooled idle cash investment under the “prudent investor” rule which states that:
“When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with the care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
The City is also governed by Sections 53600 et seq. of the California Government Code. This affords the City a broad spectrum of investment opportunities, so long as the investment is deemed prudent and allowable under current legislation of the State of California and the charter of the City of Modesto.

On an annual basis, the Finance Director/Treasurer will render to the City Council the statement of investment policy. The report will be considered, with any changes, by the City Council at a public meeting.
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2 ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process will refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions.

INVESTMENT REPORT
The Finance Director/Treasurer shall provide the City Council with a monthly report of investment transactions. The report shall contain the following:

1. The type of investment, issuer, purchase date, date of maturity, credit rating, overall portfolio yield based on cost, total par and dollar amount invested on all securities, investments and monies.

2. The weighted average maturity of the portfolio.

3. A description of any funds, investments or programs that are under management of contracted parties, including lending programs. Funds and investments held by contracted parties shall be reported at market value and the source of valuation shall be reported.

4. The market value as of the date of the report, and the source of the valuation.

5. A statement of compliance with the investment policy or manner in which the portfolio is not in compliance.

6. A statement denoting the City’s ability to meet its expenditure requirements for the next six months or provide an explanation as to why sufficient money shall, or may, not be available.

INVESTMENT CRITERIA
Public funds are invested in the following manner in order of priority:

1. Safety of Principal
The duty of the Finance Director/Treasurer is to protect, preserve and maintain cash and investments on behalf of the citizens of the community. To guard against loss of principal, only prudent and safe investments will be considered.

2. Liquidity
The receipt of revenues and maturities of investments should be scheduled so that adequate cash will be available to meet disbursements. An adequate portion of the portfolio should be maintained in liquid short-term instruments which can be readily converted to cash if necessary.

3. Return on Investment
The investment portfolio of the City shall be designed with the objective of attaining a market rate of return on its investments consistent with the constraints imposed by its safety objective and cash flow considerations. Return becomes a consideration only after the basic requirements of safety and liquidity have been met.
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3 SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery-versus payment basis. Securities will be held by third party custodian designated by the Finance Director/Treasurer and evidenced by safekeeping receipts.

The only exception to the foregoing are Local Agency Investment Pools, Certificates of Deposit, and money market funds since the purchased securities are not deliverable. In all cases, purchased securities shall be held in the City’s name.

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Finance Director/Treasurer will maintain a list of financial dealers and institutions qualified and authorized to transact business with the City.

The purchase by the City of any investment other than those purchased directly from the issuer, will be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, which is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a federally regulated securities exchange, a national or state chartered bank, a federal or state association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank.

The Finance Director/Treasurer will investigate all institutions that wish to do business with the City, to determine if they are adequately capitalized, make markets in securities appropriate for the City’s needs, and agree to abide by the conditions set forth in the City’s Investment Policy and any other guidelines that may be provided. This will be done annually by having the financial institutions:

1. Provide written notification that they have read, and will abide by, the City’s Investment Policy.

2. Submit their most recent audited Financial Statement within 120 days of the institution’s fiscal year end.

If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City.

Purchase and sale of securities will be made on the basis of competitive bids and offers with a minimum of three quotes being obtained.

PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. The City will measure the portfolio’s performance against a market benchmark that is commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

AUTHORIZED INVESTMENTS
Credit criteria and maximum percentages listed in this section refer to the credit of the issuing organization at the time the security is purchased. The City may from time to time be invested in a #2..
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4 security whose rating is downgraded subsequent to the date of purchase. In the event a rating drops below the minimum allowed rating category for that given investment type, the investment advisor shall notify the Finance Director and/or Designee and recommend a plan of action. The City will limit investments in any one non-government issuer, except investment pools, to no more than 5% regardless of security type. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment. Commencing with Section 53600 of Article 1, Chapter 4 of the Government Code of the State of California, surplus money may be invested in the following:

INVESTMENT INSTRUMENT SUMMARY
Security Type
Maximum
Maturity
Min Credit
Quality
Authorized
Investment
Limit
Per Issuer
Limit
A. City Issued Bonds 5 Years None None None
B. US Treasury Notes/ Bills 5 Years None None None
C. State of California Securities 5 Years “A” None None D. California Municipal Securities 5 Years “A” None None E. Other 49 State Municipal Securities 5 Years “A” None None F. Federal Agencies 5 Years None None None
G. Banker’s Acceptance (BA) 180 days “A-1” 40% 5%
H. Commercial Paper 270 days “A-1”/ “A” 40% 5%
I. Certificates of Deposit 1 Year FDIC Insured or
Collateralized 20% 5%
J. Negotiable Certificates of Deposit 5 Years “A” 30% 5% K. Repurchase Agreements 90 Days None None 20%
L. Reverse Repurchase Agreements 92 Days None 20% 5%
M. Medium Term Notes (MTN) 5 Years “A” 30% 5%
N. Money Market Fund None “AAAm” 20% 10%
O. LAIF None None None None
P. Mortgage and Asset-Backed
Securities 5 Year “AA” 20% 5%
Q. CAMP None None None None
R. Supranationals 5 Years “AA” 30% 5%
A. City of Modesto bonds. Bonds issued by the City.

B. U.S. Treasury securities. United States Treasury notes, bonds, bills or certificates of indebtedness or those for which the faith and credit of the United States are pledged for the principal and interest.

C. State of California securities. Registered State of California warrants, treasury notes or bonds, provided that the securities are rated in a rating category of “A” or its equivalent or higher by a nationally recognized statistical rating agency.

D. California municipal securities. Bonds, notes, warrants or other evidence of indebtedness of any local agency within California provided that the securities are rated in a rating category of “A” or its equivalent or higher by a nationally recognized statistical rating agency.

E. Other 49 State municipal securities. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a #2..
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5 revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of any of these states that are rated in a rating category of “A” or its equivalent or higher by a nationally recognized statistical rating agency.

F. Federal Agency securities. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises.

G. Bankers’ Acceptances. Bankers' Acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System, the short-term paper of which is rated in the highest category by a nationally recognized statistical rating agency.

Purchases of Bankers’ Acceptances may not exceed 180 days maturity or 40 percent of the City's surplus money.

H. Commercial Paper. Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization. The entity that, issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2):
(1) The entity meets the following criteria: (a) is organized and operating within the United States as a general corporation. (b) Has total assets in excess of $500 million. (c) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by a nationally recognized statistical-rating organization (NRSRO). (2) The entity meets the following criteria: (a) is organized within the United States as a special purpose corporation, trust, or limited liability company. (b) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond, (c) Has commercial paper that is rated “A-1” or its equivalent or higher by an NRSRO.

Effective until January 1, 2026, investments in commercial paper are limited to a maximum of 40 percent of the City’s portfolio. After January 1, 2026, investments in commercial paper are limited to a maximum of 25 percent of the portfolio. The maximum investment maturity is restricted to 270 days.

I. Certificates of Deposit. FDIC insured or fully collateralized time certificates of deposit in financial institutions located in California. Eligible investments are restricted to those issuing institutions that have been in business at least five years. The maximum term for deposits shall be one year. Investments in certificates of deposit are further limited to 20 percent of surplus funds. All time deposits must be collateralized in accordance with California Government Code section 53561. The City, at its discretion, may waive the collateralization requirements for any portion of the deposit that is covered by federal insurance.

J. Negotiable Certificates of Deposit. Negotiable certificates of deposit issued by a nationallyor state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally-licensed or state-licensed branch of a foreign bank; provided that the senior debt obligations of the issuing institution are rated in a rating category of “A” or its #2..
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6 equivalent or better by a NRSRO. Investments in negotiable certificates of deposit are limited to 30 percent of the portfolio.

K. Repurchase Agreements. Repurchase Agreements used solely as short-term investments not to exceed 90 days.

The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities as described in 1 and 2 will be acceptable collateral. All securities underlying Repurchase Agreements must be delivered to the City's custodian bank versus payment or be handled under a tri-party repurchase agreement. The total of all collateral for each Repurchase Agreement must equal or exceed, on the basis of market value plus accrued interest, 102 percent of the total dollar value of the money invested by the City for the term of the investment. For any Repurchase Agreement with a term of more than one day, the value of the underlying securities must be reviewed on a regular basis.

Market value must be calculated each time there is a substitution of collateral.

The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to Repurchase Agreement.

The City may enter into Repurchase Agreements with (1) primary dealers in U.S. Government securities who are eligible to transact business with, and who report to, the Federal Reserve Bank of New York, and (2) California and non-California banking institutions having assets in excess of $1 billion and in the highest short-term rating category as provided by Moody's Investors Service, Inc. or Standard & Poor'sS&P Global’s Corporation.

The City will have specific written agreements with each firm with which it enters into Repurchase Agreements.

L. Reverse Repurchase Agreements. The City may invest in reverse repurchase agreements only with "primary dealers" with which the City has entered into a master repurchase agreement contract. The City may invest in reverse repurchase agreements with the following conditions:

The City may only use reverse repurchase agreements to (1) cover a temporary cash shortage, or (2) augment earnings. Reverse repurchase agreements may not be used to leverage the portfolio.

In addition, if a reverse repurchase agreement is authorized, it may be utilized only if the security to be sold on reverse repurchase agreement has been owned and fully paid for by the City for a minimum of 30 days prior to the sale; the total of all reverse repurchase agreements on investments owned by the City does not exceed 20 percent of the portfolio; and the agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of the security using a reverse repurchase agreement and the final maturity date of the same security. The proceeds of the reverse repurchase agreement may not be invested in securities whose maturity exceeds the term of the Reverse Repurchase Agreement.

M. Medium-term corporate notes. Medium-term corporate notes defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository #2..
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7 institutions licensed by the U.S. or any state and operating within the U.S. Medium-term notes shall be rated in a rating category “A” or its equivalent or better by a nationally recognized rating service. Purchase of medium-term corporate notes may not exceed 30 percent of the City's investment portfolio.

N. Money market funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (money market funds). Money market funds may not exceed 20 percent of the City’s investment portfolio and shall have attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.

O. State of California Local Agency Investment Fund (LAIF). The maximum amount invested in LAIF must not exceed the amount permitted by the State Treasurer.

P. Mortgage and asset-backed securities. Any mortgage pass-through security, collateralized mortgage obligation, mortgage- backed or other pay-through bond, equipment lease-back certificate, consumer receivable pass- through certificate, or consumer receivable-backed bond. For securities eligible for investment not issued or guaranteed by federal agencies and government sponsored enterprises, the following limitations apply:

A. The security must be rated, by a nationally recognized rating service, in one of the two highest rating categories (i.e. rating category of “AA” or its equivalent or higher) and have a maximum remaining maturity of five years or less.

B. Purchase of securities authorized by this paragraph shall not exceed 20 percent of the Group's surplus funds that may be invested pursuant to this section.

Q. California Asset Management Program (CAMP).

R. Supranationals. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA”, its equivalent, or better by at least one NRSRO. Purchases of supranational securities should not exceed 30 percent of the City’s investment portfolio.

INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of pools and funds is required prior to investing, and on a continual basis.

MAXIMUM MATURITY
Investment maturities shall be based on a review of cash flow forecasts. Maturities will be scheduled so as to permit the City to meet all projected obligations.

Maximum maturity of an authorized investment is limited to five years. For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.
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8 Proceeds of sales or funds set aside for the repayment of any notes (e.g., Tax and Revenue Anticipation Notes) shall not be invested for a term that exceeds the term of the notes.

INELIGIBLE INVESTMENTS
Any security type or structure not specifically approved by this policy is hereby specifically prohibited. Security types which are thereby prohibited include, but are not limited to:

Investment in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages is prohibited.

RESTRICTIONS SET BY THE FINANCE DIRECTOR/TREASURER
A. Prior approval of the Finance Director/Treasurer is required for the following transactions, unless the City utilizes the services of an investment advisor registered with the Securities and Exchange Commission in a fiduciary relationship as outlined in this policy.

Sale of securities
Swaps and trades
Purchase of collateralized mortgage obligations (CMO)
Purchase of mortgage-backed obligations
Purchase of corporate notes
Purchase transaction in excess of $3 million
B. The following investments are not deemed appropriate for the City and will not be utilized:

Futures and options
Small Business Administration notes

COLLATERALIZATION
Collateralization will be required on two types of investments: certificates of deposit and repurchase (and reverse repurchase) agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest for repurchase agreements. All time deposits must be collateralized in accordance with California Government Code section 53561.

INTERNAL CONTROLS
The Finance Director/Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, fraud and misuse.

AUTHORIZED INVESTMENT PERSONNEL
Pursuant to the Government Code, the City Council delegates the authority to invest or to reinvest funds, or to sell or exchange securities so purchased, to the Finance Director/Treasurer for a oneyear period. The Finance Director/Treasurer is charged with the responsibility for carrying out the policies of the City Council and shall assume full responsibility for investment transactions until the delegation of authority is revoked or expires.
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9 Idle cash management and investment transactions are the responsibility of the Finance Department, which is under the control of the Finance Director/Treasurer. The Finance Director/Treasurer may designate an individual(s) [“Designee”] to be responsible for the daily management of the City’s portfolio of treasury investments. The Designee may also be directed to monitor and forecast the City’s cash flows, and prepare periodic investment reports that are submitted to the City Council. The Accounting Division of the Finance Department monitors all treasury transactions and prepares accounting records of all investment transactions as to type of investment, amount, yield, and maturity. No other person has authority to make investment transactions without the written authority of the Finance Director/Treasurer. Pursuant to Government Code chapter 53600, all persons investing monies are trustees and therefore fiduciaries subject to the prudent investor standard. Financial market security transactions will be executed by delivery versus payment and the securities will be held by a third party custodian.

Subject to required procurement procedures, the City may engage the support services of outside professionals in regard to its financial program, so long as it can be demonstrated or anticipated that these services produce a net financial advantage or necessary financial protection of the City’s resources.

POLICY REVIEW
The investment policy shall be adopted by resolution of the City Council when there are any changes to policy, to ensure its consistency with the overall objectives of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy shall be forwarded to City Council for approval.

This policy and the internal controls related to the investment of City funds will be reviewed by the City’s independent external auditors as part of their annual audit of the City’s financial statements. #2..
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10 APPENDIX A - GLOSSARY
Bankers Acceptances (BAs)
Bankers Acceptance is a time bill of exchange drawn on and accepted by a commercial bank to1 finance the exchange of goods. When a bank “accepts” such a bill, the time draft becomes, in effect, a predated certified check payable to the bearer at some future specified date. Little risk is involved for the investor because the commercial bank assumes primary liability once the draft is accepted.

California Asset Management Program (CAMP)
CAMP is a Joint Powers Authority (“JPA”) designed to assist public agencies with their investment needs through the use of the Cash Reserve Portfolio (“Pool”), which is rated “AAAm” by Standard & Poor’sS&P Global, its highest rating category. The Pool seeks to attain a high level of current income consistent with the preservation of principal.

Certificates of Deposit (CDS)
A certificate of deposit is issued against funds deposited in a commercial bank for a definite period of time and earning a specified rate of return. They are issued in two forms, negotiable and nonnegotiable:

A negotiable certificate of deposit may be sold by one holder to another prior to maturity.

This is possible because the issuing bank agrees to pay the amount of the deposit, plus earned interest, to the Bearer of the certificate at maturity.

A non-negotiable certificate of deposit is collateralized and is not a money market instrument since it cannot be traded in the secondary market. It is issued on a fixed maturity basis and often pays a higher interest rate than is permissible on other savings or time deposit accounts.

Collateralized Mortgage Obligation (CMO)
A CMO is a pool of mortgages sold as a single investment with interest paid monthly, quarterly, or semi-annually. Mortgage securities pay a higher rate than U.S. Treasury securities due to risk of prepayment and default.

Commercial Paper (CP)
This is a short-term promissory note issued by a corporation to raise working capital. The interest rates tend to be higher than other investments of similar liquidity.

Derivatives
A financial instrument with a value derived from the value of one or more underlying assets or indexes of asset values. The term “derivative products” refers to instruments or features such as collateralized mortgage obligations (CMOs), interest-only (IOs) and principal-only (POs), forwards, futures, currency and interest rate swaps, options, floaters/inverse floaters, and caps/floors/collars.

Federal Agency Securities
Certain agencies created by Congress and sponsored by the federal government issue debt that is considered to be of prime quality and have a very high standing in the bond market. The major federal agencies are described as follows:
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11 Federal National Mortgage Association (FNMA, “Fannie Mae”) provides funds to the mortgage market primarily by purchasing loans from local lenders.

Federal Home Loan Mortgage Corporation (FHLMC, “Freddie Mac”) purchases conventional mortgages and sells mortgage-backed securities.

Student Loan Marketing Association (SLMA, “Sallie Mae”) facilitates that flow of private capital into various federally-guaranteed student loan programs maintained through banks, S&Ls, educational institutions and other participating lenders.

Federal Farm Credit System (FFCB) sells securities to provide mortgage loans and shortterm and intermediate-term credit to farmers, ranchers, and agricultural cooperatives.

Federal Home Loan Bank (FHLB) acts as a credit reserve system for the thrift industry to stabilize the flow of funds to member savings and loan and savings banks.

Futures
Exchange traded contracts specifying a future date of delivery or receipt of a specific product (physical commodity or financial instrument). Futures are used by business as a hedge against unfavorable price changes, and by speculators who hope to profit from such changes.

Local Agency Investment Fund (LAIF)
State of California LAIF is designed to provide a convenient and safe means of investing temporarily idle monies by the State Treasurer. LAJF provides high liquidity and generally pays higher yields than can be realized by individual local agencies (for similar maturities) due to economies of scale.

Medium-Term Notes
Issued by corporations (in the form of secured or unsecured debt) for the purpose of raising working capital and purchasing capital assets.

Options
A right to buy (call) or sell (put) a fixed amount of a given stock at a specified price within a limited period of time. The purchaser hopes that the stock’s price will go up (if he bought a call) or down (if he bought a put) by an amount sufficient to provide a profit when he sells the option. If the price is static or moves in the opposite direction, the price paid for the option is lost entirely.

Repurchase Agreement
As authorized in Government Code Section 5360i (1), these investment vehicles are (generally short-term) agreements between the local agency and seller for the purchase of Government securities to be resold at a specific date and for a specific amount.

Reverse Repurchase Agreement
This transaction is the opposite of a repurchase agreement. The dealer buys securities with a contractual agreement to sell them back at a prearranged date. The local agency pays the dealer interest for the use of the funds. The money “borrowed” on a “reverse repo” can be reinvested in higher yielding instruments.
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12 Supranational entities
Entities formed by two or more central governments with the purpose of promoting economic development for the member countries. Supranational institutions finance their activities by issuing debt, such as supranational bonds. Examples of supranational institutions include the European Investment Bank and the World Bank. Similarly to the government bonds, the bonds issued by these institutions are considered direct obligations of the issuing nations and have a high credit rating.

U.S. Treasury Securities
The highest quality, most liquid debt investments available in the fixed income market-place, unconditionally backed by the “full faith and credit” of the U.S. Government. Treasury bills are short-term instruments (maturity of three months to one year); Treasury notes and bonds are currently issued with maturities of two to ten years.
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1 CITY OF MODESTO

CITY COUNCIL POLICY
LATEST REVISION DATE: 05/20/2024
POLICY NUMBER: 1.019
CITY DEPARTMENT: Finance
SUBJECT: Investment Policy
PURPOSE:

SCOPE:

BACKGROUND:

On an annual basis, the Finance Director/Treasurer will render to the City Council the statement of investment policy. The report will be considered, with any changes, by the City Council at a public meeting.
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2 ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process will refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions.

INVESTMENT REPORT
The Finance Director/Treasurer shall provide the City Council with a monthly report of investment transactions. The report shall contain the following:

2. The weighted average maturity of the portfolio.

4. The market value as of the date of the report, and the source of the valuation.

5. A statement of compliance with the investment policy or manner in which the portfolio is not in compliance.

6. A statement denoting the City’s ability to meet its expenditure requirements for the next six months or provide an explanation as to why sufficient money shall, or may, not be available.

INVESTMENT CRITERIA
Public funds are invested in the following manner in order of priority:

3. Return on Investment
The investment portfolio of the City shall be designed with the objective of attaining a market rate of return on its investments consistent with the constraints imposed by its safety objective and cash flow considerations. Return becomes a consideration only after the basic requirements of safety and liquidity have been met.
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3 SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery-versus payment basis. Securities will be held by third party custodian designated by the Finance Director/Treasurer and evidenced by safekeeping receipts.

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Finance Director/Treasurer will maintain a list of financial dealers and institutions qualified and authorized to transact business with the City.

1. Provide written notification that they have read, and will abide by, the City’s Investment Policy.

2. Submit their most recent audited Financial Statement within 120 days of the institution’s fiscal year end.

If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City.

Purchase and sale of securities will be made on the basis of competitive bids and offers with a minimum of three quotes being obtained.

AUTHORIZED INVESTMENTS
Credit criteria and maximum percentages listed in this section refer to the credit of the issuing organization at the time the security is purchased. The City may from time to time be invested in a #2..
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4 security whose rating is downgraded subsequent to the date of purchase. In the event a rating drops below the minimum allowed rating category for that given investment type, the investment advisor shall notify the Finance Director and/or Designee and recommend a plan of action. The City will limit investments in any one non-government issuer, except investment pools, to no more than 5% regardless of security type. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment. Commencing with Section 53600 of Article 1, Chapter 4 of the Government Code of the State of California, surplus money may be invested in the following:

E. Other 49 State municipal securities. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a #2..
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5 revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of any of these states that are rated in a rating category of “A” or its equivalent or higher by a nationally recognized statistical rating agency.

Purchases of Bankers’ Acceptances may not exceed 180 days maturity or 40 percent of the City's surplus money.

J. Negotiable Certificates of Deposit. Negotiable certificates of deposit issued by a nationallyor state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally-licensed or state-licensed branch of a foreign bank; provided that the senior debt obligations of the issuing institution are rated in a rating category of “A” or its #2..
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6 equivalent or better by a NRSRO. Investments in negotiable certificates of deposit are limited to 30 percent of the portfolio.

K. Repurchase Agreements. Repurchase Agreements used solely as short-term investments not to exceed 90 days.

Market value must be calculated each time there is a substitution of collateral.

The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to Repurchase Agreement.

The City will have specific written agreements with each firm with which it enters into Repurchase Agreements.

The City may only use reverse repurchase agreements to (1) cover a temporary cash shortage, or (2) augment earnings. Reverse repurchase agreements may not be used to leverage the portfolio.

M. Medium-term corporate notes. Medium-term corporate notes defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository #2..
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7 institutions licensed by the U.S. or any state and operating within the U.S. Medium-term notes shall be rated in a rating category “A” or its equivalent or better by a nationally recognized rating service. Purchase of medium-term corporate notes may not exceed 30 percent of the City's investment portfolio.

O. State of California Local Agency Investment Fund (LAIF). The maximum amount invested in LAIF must not exceed the amount permitted by the State Treasurer.

B. Purchase of securities authorized by this paragraph shall not exceed 20 percent of the Group's surplus funds that may be invested pursuant to this section.

Q. California Asset Management Program (CAMP).

INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of pools and funds is required prior to investing, and on a continual basis.

MAXIMUM MATURITY
Investment maturities shall be based on a review of cash flow forecasts. Maturities will be scheduled so as to permit the City to meet all projected obligations.

Maximum maturity of an authorized investment is limited to five years. For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.
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8 Proceeds of sales or funds set aside for the repayment of any notes (e.g., Tax and Revenue Anticipation Notes) shall not be invested for a term that exceeds the term of the notes.

Investment in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages is prohibited.

Futures and options
Small Business Administration notes

AUTHORIZED INVESTMENT PERSONNEL
Pursuant to the Government Code, the City Council delegates the authority to invest or to reinvest funds, or to sell or exchange securities so purchased, to the Finance Director/Treasurer for a oneyear period. The Finance Director/Treasurer is charged with the responsibility for carrying out the policies of the City Council and shall assume full responsibility for investment transactions until the delegation of authority is revoked or expires.
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9 Idle cash management and investment transactions are the responsibility of the Finance Department, which is under the control of the Finance Director/Treasurer. The Finance Director/Treasurer may designate an individual(s) [“Designee”] to be responsible for the daily management of the City’s portfolio of treasury investments. The Designee may also be directed to monitor and forecast the City’s cash flows, and prepare periodic investment reports that are submitted to the City Council. The Accounting Division of the Finance Department monitors all treasury transactions and prepares accounting records of all investment transactions as to type of investment, amount, yield, and maturity. No other person has authority to make investment transactions without the written authority of the Finance Director/Treasurer. Pursuant to Government Code chapter 53600, all persons investing monies are trustees and therefore fiduciaries subject to the prudent investor standard. Financial market security transactions will be executed by delivery versus payment and the securities will be held by a third party custodian.

This policy and the internal controls related to the investment of City funds will be reviewed by the City’s independent external auditors as part of their annual audit of the City’s financial statements. #2..
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10 APPENDIX A - GLOSSARY
Bankers Acceptances (BAs)
Bankers Acceptance is a time bill of exchange drawn on and accepted by a commercial bank to1 finance the exchange of goods. When a bank “accepts” such a bill, the time draft becomes, in effect, a predated certified check payable to the bearer at some future specified date. Little risk is involved for the investor because the commercial bank assumes primary liability once the draft is accepted.

California Asset Management Program (CAMP)
CAMP is a Joint Powers Authority (“JPA”) designed to assist public agencies with their investment needs through the use of the Cash Reserve Portfolio (“Pool”), which is rated “AAAm” by S&P Global, its highest rating category. The Pool seeks to attain a high level of current income consistent with the preservation of principal.

A negotiable certificate of deposit may be sold by one holder to another prior to maturity.

This is possible because the issuing bank agrees to pay the amount of the deposit, plus earned interest, to the Bearer of the certificate at maturity.

Commercial Paper (CP)
This is a short-term promissory note issued by a corporation to raise working capital. The interest rates tend to be higher than other investments of similar liquidity.

Federal Agency Securities
Certain agencies created by Congress and sponsored by the federal government issue debt that is considered to be of prime quality and have a very high standing in the bond market. The major federal agencies are described as follows:
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11 Federal National Mortgage Association (FNMA, “Fannie Mae”) provides funds to the mortgage market primarily by purchasing loans from local lenders.

Federal Home Loan Mortgage Corporation (FHLMC, “Freddie Mac”) purchases conventional mortgages and sells mortgage-backed securities.

Federal Farm Credit System (FFCB) sells securities to provide mortgage loans and shortterm and intermediate-term credit to farmers, ranchers, and agricultural cooperatives.

Federal Home Loan Bank (FHLB) acts as a credit reserve system for the thrift industry to stabilize the flow of funds to member savings and loan and savings banks.

Medium-Term Notes
Issued by corporations (in the form of secured or unsecured debt) for the purpose of raising working capital and purchasing capital assets.

Reverse Repurchase Agreement
This transaction is the opposite of a repurchase agreement. The dealer buys securities with a contractual agreement to sell them back at a prearranged date. The local agency pays the dealer interest for the use of the funds. The money “borrowed” on a “reverse repo” can be reinvested in higher yielding instruments.
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12 Supranational entities
Entities formed by two or more central governments with the purpose of promoting economic development for the member countries. Supranational institutions finance their activities by issuing debt, such as supranational bonds. Examples of supranational institutions include the European Investment Bank and the World Bank. Similarly to the government bonds, the bonds issued by these institutions are considered direct obligations of the issuing nations and have a high credit rating.

CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
Date: April 25, 2025
TO: Finance Committee:

Rosa Escutia-Braaton, Chair
David Wright, Vice Chair
Nick Bavaro, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Bill Sandhu, Director of Public Works
SUBJECT: SB1 Projects Proposed for Fiscal Year 2025-2026 CONTACT: John Sphar, Streets Manager, [email protected], 209-342-2235 DESCRIPTION:

Consider a list of projects to be funded with Road Repair and Accountability Act Tax Proceeds for Fiscal Year 2025-2026 and forwarding to Council for approval. (Funding Source: Senate Bill 1 Funds)
STRATEGIC PLAN ELEMENT:

This recommended action supports the City’s Strategic Plan Area of Focus: “Quality of Life”:
engage partners across the community to ensure the safety, resilience, and attractiveness of Modesto; Goal D: ensure safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts; Strategy 1: create and implement a comprehensive street and road maintenance plan.

BACKGROUND:

The Surface Transportation Fund (STF) funds the Streets and Traffic Divisions of Public Works.

These funds support the following services: Curbs, Gutters and Sidewalks, Street Maintenance, Traffic Engineering, Traffic Operations, and Traffic Electrical. The Streets Division maintains 1,400 lane miles of streets, 1,434 miles of curb and gutter, and 1,378 miles of sidewalk. The Traffic Division maintains 201 traffic signals, 13,764 streetlights, 16 flashing beacons, 40 lighted crosswalks, 62 school flashing beacons, seven warning beacons, six crosswalk beacons, eight communication hubs, 17 roundabouts and 29,238 traffic signs. #3..
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Finance Committee, May 19, 2025
SB1 Projects Proposed for Fiscal Year 2025-2026

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On April 28, 2017, the Governor signed Senate Bill (SB) 11, which is known as the Road Repair and Accountability Act of 2017. The primary focus of these funds is to address basic road maintenance, rehabilitation, and critical safety needs on both the state highways and local streets and road systems. City of Modesto received $4,415,700 in FY 21-22, $4,888,093 in FY 22-23, $5,652,170 in FY 23-24, is estimated to receive $5,526,556 by Fiscal Year end 24-25, and is projected to receive $5,742,708 million in FY 25-26.

DISCUSSION:

The objective of the local streets and roads program is to address deferred maintenance on the local streets and roads system. Prior to receiving an apportionment of Road Maintenance and Rehabilitation Account (RMRA) funds from the Controller in a fiscal year, the City must submit to the California Transportation Commission (CTC) a list of proposed projects (Attachment A). In the attachment “Streets Project Area Map & Segment List”, the fiscal year projects are identified for RMRA funding along with neighborhoods that will receive treatment to their streets.

Projects listed in Attachment A result in the following life-cycle benefits:
 Slurry seal projects that include crack seal and asphalt repairs will result in a five to seven-year life extension to existing pavement. Slurry seals have the added benefits of hardening existing asphalt, being effectively used in areas with high oxidation, sealing minor surface cracks and voids, retarding surface raveling, delineating different pavement surface areas and improving surface friction characteristics with proper aggregate.
 Traffic signal and street light maintenance will result in a ten-year extension.  Traffic sign and striping maintenance will result in a five-year life extension.

FISCAL IMPACT:

The City of Modesto estimates receiving apportionment of Road Repair and Accountability Act funding for FY 2025-26 in an amount approximated at $5,742,708. Estimated total costs for SB1 funded Streets and Traffic Engineering and Operations projects for FY 2025-2026 amount to approximately $5,753,385 (total includes 5% increases in CPI, fuel index and labor and material costs). In addition, the City has carryover SB1 funds from prior years that will be used to fund the amount over the estimated apportionment for FY 2025-26.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending a list of projects to be funded with Road Repair and Accountability Act Tax Proceeds in an amount up to $5,753,385 and forwarding to Council for approval. 1 Senate Bill 1 – Road Repair and Accountability Act of 2017 - http://rebuildingca.ca.gov/ #3..
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Finance Committee, May 19, 2025
SB1 Projects Proposed for Fiscal Year 2025-2026

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Approved by:

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

1. Attachment A – Streets & Traffic FY 25-26 Proposed Projects

2. Streets – Project Area Maps & Slurry and Paving Street Segment Lists

3. Electrical - Traffic Signal Maps
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City of Modesto
FY25/26 SB1 Project List
Project Type Project Name Total Project Cost Estimated Project Start Date
Estimated Project
Completion Date Useful Life Locations Community Benefit Summary Slurry Seal (type 2 Surry, Crack
Seal, Asphalt repairs) Slurry Seal $2,571,250 July 1, 2025 June 30, 2026 5-7 years 2025 Slurry Seal
Project Areas (map
provided)
This project will include:

Pavement improvement
(existing), Striping
Installation (existing
safety)
Street Rehabilitation Road Maintenance and
Rehabilitation $1,202,135 July 1, 2025 June 30, 2026 10-20 years 2025 SB1 Paving List (map provided) This project will include:

Pavement improvement
(Existing), Sidewalk
and/or Crosswalk
Rehab/Repair (Existing),
Paving and ADA Curb
Ramp Rehab/Repair
(Existing)
Traffic Signal & Street Lighting
Maintenance
Traffic Signal & Street
Lighting Maintenance $1,120,000 July 1, 2025 June 30, 2026 10 Years Traffic Signal &
Street Light
Locations (maps
provided)
Public Safety; Signal and
Street lighting
maintenance within City
limits
Traffic Sign & Striping
Maintenance
Traffic Sign &
Striping Maintenance $860,000 July 1, 2025 June 30, 2026 5 to 7 Years Traffic Signs &
Striping Maintenance
Locations (map
provided)
Public Safety; Striping
and Sign maintenance
within City limits
Total FY 25/26 $5,753,385
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City of Modesto, Streets Division
Slurry Seal Program
2025/26 Street Segment List
Pike Park Strom Project
Street Name From To
Tully Rd/ Southbound Lane Coldwell Pearl
Coldwell Ave Woodland Tully Rd
Kearney Ave Coldwell Roseburg
Louise Ave End of Street Del Rey Ave
Princeton Ave Kearney Ave Tully Rd
Fordham Ave Kearney Ave Tully Rd
Del Rey Ave Ashwood Louise ave
Del Vista Ave Cecil Wy Del verde Ave
Del Monte ave Del Verde Ave Tully Rd
Del Mar Ave End of Street Del verde Ave
Del Verde Ave Del Vista Ave Del Monte Ave
Princeton Ave Carver Rd Tully Rd
Haney Ave Carver Rd Princeton Ave
Leonard Ave Tully Rd Haney Ave
W. Roseburg Ave College Ave Carver Rd
Amherst Ave Cecil Wy W. Roseburg Ave
Wellesley Ave Stanford Ave W. Roseburg Ave
Exeter Ave Wellesley Ave College Ave
Mills Ave Stanford Ave W. Roseburg Ave
Cecil Wy Mills Ave Del Mar Ave
Area 26 From To
Ford Ave Dead End E. Briggsmore Ave
Ford Ct End of Court Ford Ave
Brannon Ave E. Orangeburg Ave E. Briggsmore Ave
E. Coolidge Ave Kingfield Dr Brannon Ave
Kingfield Dr. Gorham Ave Bringham Dr
Gorham Ave Citrus Dr Kingfield Dr.

Bingham Dr Maplehill Rd Kingfield Dr.

Maplehill Rd Bingham Dr Gorham Ave
Yarmouth Dr Bingham Dr E. Orangeburg Ave
Citrus Dr E. Orangeburg Ave Gorham Ave
Valencia Ct End of Court Citrus Dr
Mandarin Ct End of Court Citrus Dr
Citrus Ct End of Court Citrus Dr
Long Ct End of Court E. Orangeburg Ave
Ford Ave Dawn Dr. E. Orangeburg Ave
Dawn Dr Sarah Ave Sunrise Ave
Badgley Dr El Vecino Ave Sunrise Ave
El Vecino Ave E. Morris Ave E. Orangeburg Ave
Allen Dr. E. Orangeburg Ave El Vecino Ave
Allen Ct. End of Court Allen Dr.
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Kurt Ave Dead End Allen Dr.

Betty Ln Kurt Ave El Vecino Ave
Gloria Wy Coffee Rd Kurt Ave
Roseburg Ave Dead End Sunrise Ave
Dundee Ln Dead End Edinburgh Dr
Edinburgh Dr El Vecino Ave El Vecino Ave
Cardiff Ct End of Court Edinburgh Dr
Multnomah Dr Coffee Rd El Vecino Ave
Cambridge Ct End of Court End of Court
El Terino Ave Lucern Ave Multnomah Dr
Chehalem Dr Coffee Rd El Terino Ave
Edison Ave Sunrise Ave El Terino Ave
Half Moon Dr Bel Air Ct Edison Ave
Bel Air Ct End of Court Edison Ave
Delzer Ct End of Court Edison Ave
Naomi Ct End of Court Edison Ave
E. Fairmont Ave Coffee Rd Sunrise Ave
Annabelle Ave Ramona Ave Sunrise Ave
Ramona Ave E. Morris Ave Edison Ave
Crismon Ct End of Court El Terino Ave
Chadwick Ct Coffee Rd E. Fairmont Ave
Burke Ave Ramona Ave Sunrise Ave
Helen Ave Ramona Ave Sunrise Ave
Auburn St E. Morris Ave Helen Ave
Castle St E. Morris Ave Helen Ave
Blair Ave Dead End El Camino Ave
El Camino Ave End of Court Lucern Ave
Lucern Ave Coffee Rd Sunrise Ave
El Cajon Ave Dead End E. Morris Ave
Esgar Ave Hunter Ave Lucern Ave
Hunter Ave E. Morris Ave Lucern Ave
Milo St Dead End Lucern Ave
E. Morris Coffee Rd Sunrise Ave
John Muir Ct E. Morris Ave E. Morris Ave
Grantland Ct E. Morris Ave E. Morris Ave
E. Coolidge Ave Rose Ave Coffee Rd
Water St End of Court Dead End
Overholitzer Dr End of Court Dead End
Gary Ln E. Orangeburg Ave Dead End
Kent Wy End of Court Dead End
Morene Wy End of Court E. Orangeburg Ave
Paulette Ave End of Court End of Court
Queess Ave End of Court End of Court
Rose Ave E. Orangeburg Ave E. Briggsmore
Pulaski Wy Lafayette Ave Kienitz Ave
Kienitz Ave Duportal Ave Rose Ave
Lafayette Ave Duportal Ave Pulaski Wy
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Steuben Wy E. Orangeburg Ave Kienitz Ave
Rockford Ave Duportal Ave Rose Ave
Gladwn Ave Kendall Ave Rockford Ave
Kendall Ave Santa Paula Dr Gladwin Ave
Duportail Ave Kienitz Ave Kendall Ave
El Pueblo Dr El Toro Wy San Marco Dr
Casa Grande Ct End of Court El Pueble Dr
San Marco Dr Santa Paula Dr El Pueble Dr
Santa Paula Dr E. Orangeburg Ave Kendall Ave
El Toro Wy Santa Paula Dr El Pueblo Dr
Lorry Ave E. Coolidge Ave End of Court
Area 41 From To
Bodem St Downey Ave Scenic Dr
Downey Ave N. Morton Mc Herny Ave
N. Morton Blv Jennie St Downey Ave
Newgate St Rue De Yoe Downey Ave
Rue De Yoe N. Morton Blv Burney St
James St Jennie St Downey Ave
Morton Wy N. Morton Blv La Loma Ave
State St N. Morton Blv James st
Howard St James St Burney St
Lane St N. Morton Blv Burney St
Walden St Loma Vista Wy Burney St
Kelley St Loma Vista Wy Burney St
Jennie St N. Morton Blv Burney St
Pleasant St Dead End Jennie St
Fairview Ave Dead End Jennie St
Loma Vista Wy N. Morton Blv Kelley St
Brooks N. Morton Blv N. Morton Blv
La Loma Ave Round About H St
19th Downey Ave Burney St
G St 6th La Loma Ave
Burney St Scenic Dr D St
18 St G St H St
17th St Burney St Mc Herny Ave
16th St Burney St Needham St
15th St Burney St Needham St
14th St D St Needham St
13th D St Needham St
12th D St Needham St
11th D St Needham St
10th D St Needham St
8th F St Kansas Ave
7th B St N Washington St
N. Jefferson St Laurel St Elm St
Elm St N. Washington St N. Jefferson St
Laurel St N. Washington St N. Jefferson St
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N. Washington St M St 8th
M St 8th N. Washington St
K St 9th 6th
J St 8th 6th
I St Downey Ave 5th
F St 8th 6th
E St 7th 6th
D St Dead End 7th
C St 7th Sierra Dr
6th E St Sierra Dr
Sierra Dr 7th 5th
Calaveras Ave Tuolumne Blv Seirra Dr
E St Burney St 9th
D St 9th Beard St
Beard St B St D St
B St 9th 7th
F St Burney St 9th
M St Needham St 9th
N St Needham St 9th
O St Needham St 9th
H St 6th Scenic Dr
Area 36s From To
S. Emerald Ave California Ave Maze Blvd
Merton Ave End of Street LongFellow Ave
Sanburg Ave End of Street Emerald Ave
Whitman Wy End of Street Tennyson Dr.

Longfellow Ave Muriel Ave Marton Ave
Byron Ln End of Court S. Emerald Ave
Beryl Wy Lenore Dr. S. Emerald Ave
Onyx Wy End of Court Beryl Wy
Muriel Ave End of Street Lenore Dr.

Lenore Ct End of Court Lenore Dr.

Lenore Dr End of Court S. Emerald Ave
Niles Ct End of Court Parviz Ln
Parviz Ln End of Street Marni Wy
Marni Wy End of Court Spencer Ave
Spencer Ave California Ave 511 Spencer Ave
California Ave Carpenter Rd Spencer Ave
Panama Dr. Houser Ln. California Ave
Florence Ave End of Street Panama Dr.

Ione Wy Inez Dr. Panama Dr.

Inez Dr Ione Wy Vallecito Wy
Comanche Ct End of Court Panama Dr.

Los Ninos Ct. End of Court Inez Dr
Diamond Springes Ct End of Court Panama Dr.

Vallecito Wy Panama Dr. Inez Dr
Houser Ln Carpenter Rd Panama Dr.
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Champagne Ln Ricardo Ave California Ave
Claret Ct End of Court Champane Ln
Bleu Chapelle Ct End of Court Champane Ln
Champagne Ct End of Court Champane Ln
Ricardo Wy End of Court Inez Dr
Tupper Ln End of Court Wilma Dr.

Dustin Ct End of Court Wilma Dr.

Millie Pl End of Court Wilma Dr.

Wilma Dr Houser Ln. Tupper Ln
Davy Ct End of Court Houser Ln
Memory Ln End of Court Houser Ln
Raymond Dr End of Court Houser Ln
Levi Dr. End of Court Raymond Dr.

Maze Ct. Locust St Maze Blvd
MLK Maze Blvd Laurel Ave
Linden St MLK N. Jefferson St
Locust St End of Street Maze Ct
Sherman Ave Locust St Maze Blvd
N. Madison St Maze Blvd Laurel Ave
Area 40 From To
Pacos Ave Main St Crows Landing Rd
Rita Ct End of Court Pacos Ave
Lita Ct End of Court Pacos Ave
Pueblo Ave Santa Fe Ave Crows Landing Rd
El Paso Ave Main St Crows Landing Rd
Crockett Ave Santa Fe Ave Bowie Ave
School Ave Santa Fe Ave Crows Landing Rd
Barozzi Ave Santa Fe Ave Crows Landing Rd
Rio Grande Ave Main St Crows Landing Rd
Bowie Ave Pueblo Ave Barozzi Ave
Santa Fe Ave Pacos Ave Rio Grande Ave
Alamo Ave Pacos Ave Rio Grande Ave
Boulder Ave Main St Rio Grande Ave
Broadway Ave Main St Santa Fe ave
Gobel Wy Primo Wy Winmoore Wy
Angelo Wy Primo Wy Winmoore Wy
Primo Wy Angelo Wy Gobel Wy
Jim Wy Olivero Rd Winmoore Wy
Reliance St Winmoore Wy E. Glenn Ave
E. Glenn Ave Reliance St Crows Landing Rd
Marin Ave Dallas St Ustick Rd
Ustick Rd Lassen Ave W. Whitmore Ave
W. WhitMore Ave Crows Landing Carpenter Rd
Placer Ave Inglenook Dr Ustick Rd
Inglenook Dr Cribari Dr Marin Ave
Beringer Ct End of Court Inglenook Dr
Vintner Ln San Martin Dr Inglenook Dr
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Bernardo Wy Almaden Wy Vintner Ln
Almaden Wy Bernard Wy San Martin Dr
Cribari Dr Dead End Inglenook Dr
Parducci Dr Montavenia Dr Cribari Dr
Montavenia Dr San Martin Dr Parducci Dr
Lieselle Ln Marin Ave Rhythms Dr
Manhattan Wy Marin Ave Rhythms Dr
Gutherie St Marin Ave W. Whitmore Ave
Rhythms Dr Gutherie St Lieselle Ln
Blue Ridge Ln Park Faith Ln Gutherie St
Park Faith Ln Marin Ave Blue Ridge Ln
Park Brake Wy End of Court Park Hurst Wy
Park Hurst Wy End of Court Park Faith Ln
Glen Arbor Wy Park Grove Wy Park Brake Wy
Park Meadow Dr Park Grove Wy Park Brake Wy
Echo Ct End of Court Park Meadow Dr
Dallas St Marin Ave W. Whitmore Ave
Park Grove Wy End of Court Glen Arbor Wy
Trevose Dr Kirbys Mill Dr W. Whitmore Ave
Kirbys Mill Dr End of Court Havertown Pl
Shaker Heights Wy Cyrus Hall Dr Havertown Pl
Havertown Pl End of Court Kirbys mill Dr
Cyrus Hall Dr End of Court W. Whitmore Ave
Gladwyne Ct End of Court Shaker Heights Wy
Wyndmoor Ct End of Court Shaker Heights Wy
Inyo Ave Dallas St Mt Oso Wy
Mt Oso Wy Lassen Ave Inyo Ave
Lassen Ave Mt Oso Wy Dallas St
Mt Everest Ct End of Court Seattle St
Mt Hood Ct End of Court Seattle St
Algen Ct End of Court Seattle St
Seattle St Imperial Ave Algen Ave
Algen Ave Crows Landing Seattle St
Mt Whitney Ct End of Court Algen Ave
Mt McKinley Ct End of Court Algen Ave
Area 6 From To
Hillrey Dr Hida Way W. Rumble Rd
Hida Way Prince Albert Dr Hillrey Dr
Prince Albert Dr W. Rumble Rd Hida Way
Santa Teresa Dr Applegate Dr W. Rumble Rd
Monrova Ct End of Court Applegate Dr
Paso Robles Dr Applegate Dr W. Rumble Rd
Applegate Dr Carver Rd Santa Teresa Dr
Montebella Ct End of Court Applegate Dr
Tera Bella Ct End of Court Applegate Dr
Santa Lucia Ct End of Court Applegate Dr
Hunt Ave Jennifer Dr W. Rumble Rd
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Jennifer Dr Hunt Ave Applegate Dr
Blanche St Jennifer Dr Janna Ave
Robbie Ave Rockwood Pl Jennifer Dr
Robbie Ct End of Court Robbie Ave
Marjorie Dr Applegate Dr Robbie Ave
Charline Ct End of Court Robbie Ave
Silvaire Dr Janna Ave Carver Rd
Anita Ct End of Court Silvaire Dr
Bonanza Wy Carver Rd Silvaire Dr
Apache Ct End of Court Silvaire Dr
Apache Ln Mount Vernon Dr Silvaire Dr
Silvaire Ct End of Court Silvaire Dr
Irvin Ave Mount Vernon Dr Silvaire Dr
Renchler Ln Janna Ave Irvin Ave
Debonaire Dr Mount Vernon Dr Hunt Ave
Janna Ave Mount Vernon Dr Prescott Rd
Chester Dr Esther Dr Janna Ave
Esther Dr Janna Ave Chester Dr
Natalie Ct End of Court Esther Dr
Juanita Ct End of Court Janna Ave
Peach Dr Janna Ave Prescott Rd
Coston Ave Trent Dr Peach Dr
Wally Ct End of Court Coston Ave
Trent Dr Janna Ave Coston Ave
Dickens Dr End of Court Mount Vernon Dr
Carver Rd Mount Vernon Dr W. Rumble Rd
Mount Vernon Dr Tully Rd Prescott Rd
Campbell Ln Robbie Ave W. Rumble Rd
Dwight Ln W. Rumble Rd Campbell Ln
Richmond Ct End of Court Dwight Ln
Newhall Ct End of Court Dwight Ln
Thorton Ct End of Court W. Rumble Rd
Brentwood Ct End of Court Campbell Ln
Sharondell Dr Dwight Ln Robbie Ave
Tiburon Ct End of Court Sharondell Dr
Rockwood Pl End of Court Robbie Ave
Hamilton Ave Hemminger Wy Dwight Ln
Dalton Way Uhlig Ave Dwight Ln
Debbie Ln W. Rumble Rd Dalton Wy
Hemminger Wy Mount Vernon Dr W. Rumble Rd
Levon Ave Schulenberg Ave Tully Rd
Uhlig Ave Mount Vernon Dr Levon Ave
Schulenburg Ave Uhlig Ave Rockwood Pl
Theo Ave Uhlig Ave Hemminger Wy
Kingsbury Ave Uhlig Ave Hemminger Wy
Cheryl Ln Hazel Ln Mount Vernon Dr
Hazel Ln Sharondell Dr Cheryl Ln
#3..
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Stanley Ct End of Court Mount Vernon Dr
Derek Wy Teri Ln Mount Vernon Dr
Teri Ln Mount Vernon Dr Derek Wy
Evona Ct End of Court Teri Ln
Queenaire Ln Mount Vernon Dr Bonanza Wy
#3..
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2025/2026
PCI Street Name Begin Location End Location SQFT Cost Completed 26 12th Lst 70feet south of L st 3,055 $12,203.93 2024
26 Coralwood McHerny Towery Ave 47027 $234,000.00 2024
10 Houser Raymond Panama 33208 $166,040.00 2024
18 13th I street H Street 19,680 $56,484.56 2025
30 H street 16th Intersection 5,640 $13,693.67 2025
20 Calaveras Sierra Dr Tuolumne Bl 31,820 $123,469.31 2025 19 Gary Ln E. Orangeburg E. Coolidge Ave 21,312 $91,716.39 2025 Total For streets Completed
2024/2025 $697,607.86
#REF!
14 Reno Kansas Doker 31,080 $102,264.98
13 16th H Street G Street 20,539 $67,322.51
5 Kelly Burney James 8,585 $38,584.48
12 Woodrow Av Tully Colonial 54,094 $222,029.70
20 Jennie St Burney N morton 39,886 $144,994.06
26 James Jennie St Walden St 22,005 $98,498.91
19 Dallas Dallas Ct W. Hatch 9,870 $57,032.99
35 Norwegian Coffee Sunrise 96,940 $193,186.99
14 Carpenter Bridge deck Robertson Rd 46,800 $177,221.11 Total For Incompleted
streets $1,101,135.70
2024-2025 SB1Paving List
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#3..
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
Date: April 21, 2025
TO: Finance Committee
Rosa Escutia-Braaton, Chair
David Wright, Vice-Chair
Nick Bavaro, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Bill Sandhu, Director of Public Works
SUBJECT: Agreement for Tire Technician Services
CONTACT: Patrick Crowley, Senior Public Works Manager, [email protected], 209-342-2274
DESCRIPTION:

Consider the Agreement for Tire Technician Services for Fleet Services to McCoy Truck Tire Service Center, Modesto, CA for a total amount not to exceed $614,361 over five years and forwarding to Council for approval. (Funding Source: Fleet Management Fund) STRATEGIC PLAN ELEMENT:

This item is in conformance with City of Modesto Strategic Plan Area: Governance and Service Delivery: “build community trust in City government through responsive, transparent and efficient service delivery”; Goal H: Achieve long-term financial sustainability.

BACKGROUND:

The City Fleet Services Division (Fleet) services and maintains 1,583 in-service vehicles, heavy equipment, buses, fire trucks, trailers and other miscellaneous equipment for all areas of the City.

The City has an ongoing need for hourly tire service for heavy and light duty vehicle tire work that current staffing levels are unable to perform. It is anticipated these services are required up to three times per week for the maintenance of the City's vehicles, equipment, and other assets throughout the year.

The Tire Technician will perform tire inspection, repair and replacement services for City vehicles, trailers, light/medium/heavy-duty trucks, heavy-duty off-road equipment and over-sized tires, as well as tire recapping, flat repairs, tire mounting and balancing. The City provides air, jacks and jack stands, a wheel balancer, a tire changer only for use on light duty vehicles and a tire gun.

Specialized or additional equipment is to be provided by the vendor as needed. #4..
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Finance Committee, May 19, 2025
Agreement for Tire Technician Services for Fleet Services

Page 2 of 3 ends

On May 7, 2019, by Resolution No. 2019-210, Council approved an agreement with Fleet Tire Inc., dba Brannon Tire (Brannon), Stockton, CA for On-Site Tire Technician Services, for an annual amount not to exceed $88,920 and total amount not to exceed $444,600 over five years.

On August 28, 2023, by City Manager authority, Brannon entered into the First Amendment to the Agreement with the City of Modesto to execute the fifth-year extension and amend the pricing schedule with no increase in the agreement amount.

On June 4, 2024, by Resolution No. 2024-188, Council approved a Second Amendment to the Agreement with Brannon to increase the annual estimated cost by $121,800 from $88,920 to a new total not to exceed $654,600, and to extend the term of the Agreement from June 10, 2024 to June 10, 2025.

DISCUSSION:

On June 14, 2021, the City Manager authorized the Purchasing Manager to solicit the procurement for the furnishing of on-site tire technician services for the Public Works, Fleet Division. On November 27, 2024, the Purchasing Division issued Invitation for Bids (IFB) 2425- 27 for Tire Technician Services for Fleet Services on the City’s PlanetBids public bidding website under various commodity codes. Prospective bidders were notified online and via email of the bid opportunity. Eighteen companies downloaded the IFB document from PlanetBids.

On January 7, 2025, bids were formally opened in the City Clerk’s office and broadcast via Microsoft Teams Livestream. Three companies chose to respond, and one local bid was received. Based on providing the lowest responsive and responsible bid, City staff recommended to award the Agreement for Tire Technician Services for Fleet Services with McCoy Truck Tire Service Center, Modesto, CA for a two–year agreement with three one-year extension options, for total estimated annual cost of $120,000 and a total amount not to exceed $614,361 over five years.

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. An award of Bid and Agreements for Tire Technician Services for Fleet Services with McCoy Truck Tire Service Center, Modesto, CA conforms to the Modesto Municipal Code because the City complied with formal bid procedures, and McCoy Truck Tire Service Center was the lowest responsive and responsible bidder.

FISCAL IMPACT:

Funds are budgeted in the Fleet Management Fund (5400) with funding for contingency services being allocated at the time of approval. The overall agreement total was calculated by forecasting Consumer Price Index (CPI) percentage increases of 5.5% over Years three, four, and five based on an average of the CPI index over the last twelve months. City staff project annual increases based on this estimated forecast. Annual increases will be calculated using the current CPI index at the time of the requested increase. #4..
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Finance Committee, May 19, 2025
Agreement for Tire Technician Services for Fleet Services

Page 3 of 3 ends

Previous spending for tire technician services is shown below. There were no tire technician services purchased during the sixth-year extension of the previous Agreement.

Contract Year Expenditures
Year 1 $ 64,162
Year 2 $ 61,985
Year 3 $105,172
Year 4 $107,601
Year 5 $104,604
Total $443,524
RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the Award of Bid and Agreement for Tire Technician Services for Fleet Services to McCoy Truck Tire Service Center, Modesto, CA for two-year agreement with three one-year extension options, for annual estimated annual cost of $120,000 and a total amount not to exceed $614,361 over five years and forwarding to Council for approval.

Approved by:

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

1. Agreement – McCoy Truck Tire Service Center

2. Exhibit B – Bid Submittal

3. Exhibit C – IFB 2425-27, On Site Tire Technician Services

4. Exhibit D – Insurance Requirements

5. Exhibit E – Pricing Schedule

6. Cost Abstract
Contract Year Estimated Spend
Year 1 $115,000
Year 2 $115,000
Year 3 $121,325
Year 4 $127,998
Year 5 $135,038
Total $614,361
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1 TIRE TECHNICIAN SERVICES FOR FLEET SERVICES – AGREEMENT# 298461 This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 2025, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and McCoy Truck Tire Service Center Inc., a California Corporation, hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 2025-______ authorizing the Award of Bid and agreement for TIRE TECHNICIAN SERVICES FOR FLEET SERVICES to CONTRACTOR, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for TIRE TECHNICIAN SERVICES FOR FLEET SERVICES as described in IFB 2425-27, attached hereto as Exhibit “C” and made a part hereof (hereinafter called IFB).

NOW, THEREFORE, the parties hereto mutually agree as follows:
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2 1. THE WORK:
a. CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, and insurance necessary to perform and complete the required work as specified in Exhibit “B”, and in strict accordance with the conditions of the complete AGREEMENT. b. CONTRACTOR shall do and perform the work contemplated hereby in a good workmanlike manner under the direction of and to the satisfaction of the CITY Representative. c. CONTRACTOR shall maintain proper insurance with the CITY for the duration of the AGREEMENT.
d. CONTRACTOR shall maintain a CITY business license for the duration of the AGREEMENT. e. CONTRACTOR shall furnish said services at the following AGREEMENT rates for an estimated annual amount $120,000. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $614,361. Unless the services provided are for a lump sum or flat fee, fees for work performed by CONTRACTOR on an hourly basis shall not exceed the amounts shown on Bid attached hereto as Exhibit B.

AGREEMENT PRICING

2. CITY REPRESENTATIVE:

CITY Representative: Patrick Crowley, Fleet Manager, 209-342-2214, [email protected]
Listed in Exhibit E
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3 Purchasing Representative: Nani Hollingsworth, Assistant Buyer, 209-577-5296, [email protected]
The CITY Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be effective only by written change to the AGREEMENT, issued by the City of Modesto, Purchasing Division.

3. CONTRACTOR CONTACT:

Marc Finnigan, President, 209-521-6221, 209-652-1090 cell, [email protected]

4. TERM OF AGREEMENT:

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

Year 1: JUNE 11, 2025 through JUNE 10, 2026
Year 2: JUNE 11, 2026 through JUNE 10, 2027
Year 3: JUNE 11, 2027 through JUNE 10, 2028
Year 4 JUNE 11, 2028 through JUNE 10, 2029
Year 5: JUNE 11, 2029 through JUNE 10, 2030
Pricing as set forth in Section 1.e. above shall remain firm for the first two years of the AGREEMENT.

Price increases for any subsequent AGREEMENT years following the second year shall not exceed the percentage change in the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by CONTRACTOR in writing, ninety (90) days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year.
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4 Price adjustments for diesel fuel fluctuations may be considered. Thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division and approved at the sole discretion of the CITY.

The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/, California data.

5. INSURANCE REQUIREMENTS:

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 the attached Exhibit (D) to this AGREEMENT and shall otherwise comply with the other provisions of Exhibit (D) to this AGREEMENT. The city utilizes a software program “PINS Advantage” where vendor is responsible for uploading and maintaining updated insurance.

6. PAYMENT:

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

Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
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5 At a minimum, invoices shall state the following:
 This AGREEMENT number, 298461
 CITY department/division name and address
 Billing period
 Service hours worked day and week
 Unit price, extended price, sales tax and total

7. INDEMNITY:

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

8. VENUE & GOVERNING LAW:

Venue for any dispute or claim arising or related to this AGREEMENT its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California #4..
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6 This AGREEMENT shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, without giving effect to its conflicts of laws provisions or principles.

9. ATTORNEYS’ FEES:

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

10. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:
a. Proofs of insurance (approved by CITY Risk Manager); and b. Resolution No.2025-_______;
c. CONTRACTOR Bid submittal;
d. IFB No. 2425-27;
e. Contractor’s City of Modesto business license

11. TERMINATION OF SERVICES:

Termination for Default: In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the non-performance. Within 10 days after receipt of notification, the breaching party shall correct any nonperformance to the reasonable satisfaction of the non-breaching party, or such other time as may be identified in the notice. Failure to correct any non-performance shall allow the non-breaching party to terminate this AGREEMENT for cause.
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7 Termination by City for Convenience: The City may also terminate this AGREEMENT the Contractor's performance under the Agreement, either in whole or in part, at its own discretion and without cause.

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the SERVICES as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES; h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written #4..
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8 status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.
i. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date.

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

12. COMPLIANCE WITH ALL LAWS:

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

13. FAILURE TO PERFORM SATISFACTORY WORK:

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

Those discrepancies and deficiencies in the SERVICES that remain uncorrected after the date set for correction may be the necessary justification for a billing adjustment in the month following the occurrence. Unless otherwise negotiated, billing adjustments for this incomplete or uncorrected work shall be permanent retention of 100% of the estimated monthly cost for the SERVICES not corrected or completed.

14. ASSIGNMENT OF RIGHTS:

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

15. CITY PROCESS/PROCEDURE APPROVALS:

CITY approval of any process or procedure shall not relieve CONTRACTOR of its responsibility to furnish the required SERVICES meeting all specifications contained herein. #4..
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10 16. Contractor's Responsibility for Damages:

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

17. NOTICES:

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

CONTRACTOR: McCoy Truck Tire Service Center Inc
Marc Finnegan
1409 Lone Palm Ave
Modesto, CA 95351
CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

18. SIGNATORY(IES) FOR CONTRACTOR:

Each signatory for CONTRACTOR below warrants and represents that it is legally competent to, and has full authority to, execute the AGREEMENT.
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11 19. QUANTITIES:

No minimum or maximum is guaranteed or implied.

20. FUNDING:

All annual extensions are based upon continuous funding for that purpose by the City Council.

Failure to fund any annual extension shall result in an immediate termination of the AGREEMENT without redress.

21. OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:

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

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

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

23. CONTRACTOR LICENSES & PERMITS:

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

24. RECORDS:

All final versions of reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic #4..
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13 or any other form, that CONTRACTOR prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the CITY. CONTRACTOR hereby agrees to deliver those documents to the CITY upon termination of the AGREEMENT, and the CITY may use, reuse or otherwise dispose of the documents without CONTRACTOR’s permission. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this AGREEMENT are prepared specifically for the City and are not necessarily suitable for any future or other use.

25. FACILITIES AND EQUIPMENT:

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

26. INDEPENDENT CONTRACTOR; NOT AGENT:

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

27. DRUG FREE WORKPLACE:

CONTRACTOR certifies that it is following and in compliance with Sections 8350 8355 of Chapter 5.5 of the Government Code, Drug Free Workplace Act whereby each person or organization awarded a contract/purchase order or grant for the procurement of any property or service from any state agency (city) shall certify to the contracting or granting agency that it will provide a drug free workplace. #4..
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14 28. ASSIGNMENT:

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

29. WAIVER:

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

30. HEADINGS NOT CONTROLLING:

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

31. MISCELLANEOUS:

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

32. ENTIRE AGREEMENT:

This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY. Additional or new terms contained in this AGREEMENT which vary from CONTRACTOR’S bid are controlling and are deemed accepted by CONTRACTOR by performance of any SERVICES or other commencement of performance hereunder. The terms and conditions of the IFB, attached hereto as Exhibit B, are incorporated herein. In the event of a conflict between the IFB and this AGREEMENT, this AGREEMENT shall control. All previous bids, offers and communications related to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by the parties. #4..
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15 33. PARTIAL INVALIDITY:

IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attested by its City Clerk under authority of Resolution No. 2025-_______, adopted by the Council of the City of Modesto on the ________ day of ________________, 2025 and McCoy Truck Tire Service Center Inc has caused this Agreement to be duly executed. #4..
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16 Exhibit D:

Insurance Requirements for Most Contracts
(Not for Professional Services or Construction Contracts) Contractor shall procure and maintain for the duration of the contract 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, his 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 $2,000,000 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: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 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.

If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the City of Modesto 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 of Modesto.

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 noncontributory, 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:
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17 Additional Insured Status
The City of Modesto, its officers, officials, employees, 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 non-contributory” 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.

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

Waiver of Subrogation
Contractor hereby grants to City of Modesto a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of Modesto 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 of Modesto 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 of Modesto 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.

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 of Modesto.

Verification of Coverage
Contractor shall furnish the City of Modesto 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 #4..
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18 endorsements are to be received and approved by the City of Modesto Risk Services 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 of Modesto 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.

Subcontractors
Contractors shall require and verify that all subcontractors, or other parties hired for this work, purchase and maintain coverage for indemnity and insurance requirements as least as broad as specified in this agreement to the extent they apply to the scope of the subcontractor’s work with the same certificate of insurance requirements and naming as additional insureds all parties to this contract.

Special Risks or Circumstances
City of Modesto 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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1 INVITATION FOR BIDS (“IFB”) NO. 2425-27
FOR

TIRE TECHNICIAN SERVICES FOR FLEET SERVICES
BID OPENING: January 7, 2025 at 11:00 A.M.

CITY OF MODESTO CONTACT: Nani Hollingsworth, Assistant Buyer E-MAIL ADDRESS: [email protected]
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INVITATION FOR BIDS # 2425-27

TIRE TECHNICIAN SERVICES FOR

FLEET SERVICES
2 Table of Contents
NOTICE TO BIDDERS ............................................................................................................................. 3 CALENDAR OF EVENTS ........................................................................................................................ 5 CITY CONTACT ....................................................................................................................................... 5 PRECEDENCE ........................................................................................................................................... 5 VIRTUAL BID OPENING......................................................................................................................... 6 GENERAL BID REQUIREMENTS .......................................................................................................... 7 A. BID SUBMITTAL: ......................................................................................................................... 7 E. CITY ACCEPTANCE/REJECTION OF IRREGULAR BIDS: .................................................... 7 F. COMPLETE BID DOCUMENT: ................................................................................................... 7 G. COMPLIANCE/NON-COMPLIANCE: ........................................................................................ 8 M. BID PROTEST AND APPEAL PROCEDURES: ................................................................... 10 BID SUBMITTAL CHECKLIST ............................................................................................................. 15 BID FORM A - IFB ACKNOWLEDGEMENT .................................................................................. 16 BID FORM B – BIDDER COMPANY INFORMATION ................................................................... 19 BID FORM C - PRICING SCHEDULE .............................................................................................. 21 BID FORM D – BIDDER EXCEPTIONS, CLARIFICATIONS, AMENDMENTS .......................... 24 BID FORM E – BIDDER CUSTOMER REFERENCES .................................................................... 25 BID FORM F - FINANCIAL INTEREST DISCLOSURE .................................................................. 27 BID FORM G – SUPPORT OF LOCAL VENDORS.......................................................................... 29 BID FORM H - BIDDER COMPANY HISTORY STATEMENT ..................................................... 30 BID FORM I - ADDENDA ACKNOWLEDGEMENT ...................................................................... 31 BID FORM J – BIDDER WARRANTY STATEMENTS ................................................................... 32 BID FORM K – BIDDER EXPERIENCE AND CERTIFICATIONS ................................................ 33 BID FORM L - SUBCONTRACTOR LIST .......................................................................................... 34 TECHNICAL SPECIFICATIONS AND REQUIREMENTS ................................................................. 35

1.0 SCOPE OF WORK: ........................................................................................................................ 35

1.6 REQUIRED LICENSES:................................................................................................................ 36 SAMPLE ANNUAL AGREEMENT –.................................................................................................. 38 TIRE TECHNICIAN SERVICES FOR FLEET SERVICES IFB 2425-27 ...................................... 38 #4..
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3 NOTICE TO BIDDERS
NOTICE IS HEREBY GIVEN that the City of Modesto, County of Stanislaus, State of California (“City”), will receive at the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 sealed Bids (each, a “Bid”) from qualified Bidders (each, a “Bidder”) for the furnishing of (enter description here) equipment, materials, supplies and/or related services (the “Services”) for the City of Modesto, Public Works Department, Fleet Division.

All equipment, materials, and supplies shall be furnished F.O.B. City of Modesto (delivery charges borne by Bidder, included in the Services pricing herein, and not separately charged to the City).

Bidders are highly recommended to download all IFB documents from the City’s Purchasing Division website at http://www.modestogov.com/257/Contracting-Bid-Opportunities; such IFB documents shall include all specifications necessary for Bidders to submit a responsive Bid..

Each Bid shall be sealed and filed with the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 prior to January 7, 2025 at 11:00 A.M., at which time Bids will be opened, read and recorded. The opening of bids will not be physically open to the public but may be viewed simultaneously via video conferencing in the manner provided for herein. All Bids shall be available for review following City Council award approval at the Purchasing Division, 1010 Tenth Street, 5th Floor, Suite 5300, Modesto, CA 95354.

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

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

The City Clerk’s time stamp shall be considered the official timepiece for the purpose of establishing the actual receipt of Bids. Bids will not be accepted by email or facsimile. The City of Modesto assumes no responsibility for delay in the delivery of the Bid. #4..
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4 On the outside of the Bid envelope and courier envelope, if any, the Bidder shall indicate the following:
“NAME AND ADDRESS OF BIDDER
BID IN RESPONSE TO INVITATION FOR BIDS # 2425-27
BID OPENING DATE: JANUARY 7, 2025 AT 11:00 A.M.”
Bidder must deliver your Bid by a preferred method to the appropriate location below:

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

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

No Bidder may withdraw its Bid for a period of one hundred twenty (120) days after the date set for the opening thereof.
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5 CALENDAR OF EVENTS
Event Date
IFB Issued November 27, 2024
Written Questions Due via Email December 10, 2024
Addendum Issued (if required) December 17, 2024 (approximate date) Bid Due Date & Time PRIOR 11:00 A.M. on Tuesday, January 7, 2025 Contract Award Approximately March 2025

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

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

PRECEDENCE
Bidder agrees that any agreement resulting from City’s acceptance of its Bid, together with the terms in any City purchase order and associated specifications provided by the City to Bidder therewith, shall comprise the entire agreement between City and Bidder. Moreover, Bidder agrees that any additional or contrary terms contained in Bidder’s acknowledgement of, shall be null and void. #4..
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6 VIRTUAL BID OPENING
The City of Modesto will be broadcasting Bid openings live electronically via Microsoft Teams at 11:00 a.m. (Pacific Time) on Tuesday, January 7, 2025. The City Clerk Record of Bid document should be available on Planet Bids by the end of the same day.

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

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

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

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

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

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

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

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

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

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

I. AWARD OF BID:
 The City may award one or more agreements to one or more Bidder in order to provide for backup, or in case the “primary” contractor is unable to meet the City’s needs.

 The City reserves the right to decline to award any agreement if it is determined that the proposed pricing is not competitively priced based on similar agreements with public agencies within the State of California or if the bids received fail to meet the City’s requirements.
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9  The City reserves the right to select that Bid, which best suits the City’s needs. In addition to price, consideration will be given to the quality and performance of the service to be purchased, and the criteria listed in Modesto Municipal Code Section 8-

3.203(f). Regardless of City staff’s recommendation, the City Council reserves the right to award an agreement to the Bidder that best suits the City’s needs as determined by the City Council whether or not said award is consistent with City staff’s recommendation for award.

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

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

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

L. BIDDER REPRESENTATION: Bidder represents that:
 Bidder has had an opportunity to examine and has examined any and all of the documents, including specifications, any resultant contract and supporting data, and that it has, from the information contained in such documents, specifications, and data, fully acquainted itself with all conditions relevant to the work. #4..
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10  Bidder has made all reasonable investigations essential to a full understanding of the difficulties which may be encountered in performing the work.  Bidder will complete the proposed provision of Services for the compensation stated in any resultant agreement.
 Bidder assumes full and complete responsibility for all conditions relevant to the proposed provision of Services and all risks in connection therewith.  Bidder represents that it is fully qualified to perform the proposed provision of Services in accordance with the terms of any resultant agreement within the time specified therein.

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

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

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

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

City Clerk’s Office
Attn: Director of Finance
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
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12 City Clerk’s Office
Attn: Director of Finance
PO Box 642
Modesto CA 95353
b. Appeal to Deputy City Manager: At the protestor’s discretion, the decision of the Director of Finance may be appealed in writing to the City of Modesto's Deputy City Manager(s) no later than ten days after the date of the Director of Finance’s Decision. The scope of the appeal shall be limited by the issues raised in the initial protest to the Director of Finance. The Deputy City Manager shall not be permitted to review any newly raised issues. The Deputy City Manager shall review the appeal, accompanying supporting documents, if any and the written records of the protest review by the Director of Finance. A written record of the Deputy City Manager's review shall be created and maintained. The Deputy City Manager shall give notice of their decision to the protestor within ten days after receipt of appeal.

Further protest appeals shall either be delivered to:

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

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

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

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

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

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

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

The costs of the hearing officer and expenses of the protest shall be borne by the protestor. The sums deposited with the request for hearing shall be credited to the costs of the hearing officer and other hearing expenses. #4..
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14 f. Mandatory Alternative Process for Protests of Procurements Obtained with Federal Funds: If the protested procurement involves federal funds, the Deputy City Manager, City Council, or hearing officer shall give notice, accompanying their respective decisions, to the protestor that he or she has the right to appeal to the appropriate federal agency, for which an agency name, contact (where available) and address shall be provided by City staff. Such an appeal shall be filed with the appropriate agency within seven business days of the dispatch or rejection notices to the protestor. Federal agencies may entertain protests alleging that the City has failed to adopt written protest procedures or has failed to follow such procedures. The City Council is the highest authority of the City of Modesto, and its decisions are final. A disappointed Bidder for a contract involving expenditures of Federal funds shall have the right to appeal the City Council decision directly to the federal agency as described herein. #4..
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15 BID SUBMITTAL CHECKLIST

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

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

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

Bidder’s submission should include all City of Modesto forms. If any form is not applicable, Bidder should write or type “Not Applicable” on it but still include the form in your submission.

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16 BID FORM A - IFB ACKNOWLEDGEMENT
The City is soliciting Bids from qualified firms (each a “Bidder” to fulfill the City’s requirements per the specifications, terms and conditions contained in this Invitation for Bids (“Invitation for Bids” or “IFB”).

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

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

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

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

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

5. Patent Indemnity: Bidders who do business with the City shall hold the City, its officers, agents and employees, harmless from liability of any nature or kind, including cost and expenses, for infringement or use of any patent, copyright or other proprietary right, secret process, patented or un- #4..
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17 patented invention, article or appliance furnished or used in connection with the contract or purchase order.

6. Samples: Samples of items, when required, shall be furnished free of expense to the City and if not destroyed by test may upon request (made when the sample is furnished), be returned at the Bidder’s expense.

7. Rights and Remedies of City for Default: (a) In the event any item furnished by the Bidder in the performance of the contract or purchase order should fail to conform to the specifications therefore or to the sample submitted by the Bidder with its Bid, the City may reject the same, and it shall thereupon become the duty of the Bidder to reclaim and remove the same forthwith, without expense to the City, and immediately to replace all such rejected items with others conforming to such specifications or samples; provided that should the Bidder fail, neglect or refuse to do so, the City shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding quantity of any such items. City may deduct from any moneys due or that may there after coming due to Bidder or send an invoice to the Bidder which shall be paid within thirty (30) days, the difference between the prices named in the contract or purchase order and the actual cost thereof to the City. In the event that the Bidder fails to make prompt delivery as specified for any item, the same conditions as to the rights of the City to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government. (b) Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the Bidder. (c) The rights and remedies of the City provided above shall not be exclusive and are in addition to any other rights and remedies provided by law or under the contract.

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

ePay results in small percentage rebate of 1.0% to the City through the card issuer. That rebate amount will be considered by the City in its evaluation of Bidder’s pricing proposal hereunder. #4..
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18 Information about enrolling in MasterCard ePay program can be obtained from the City’s contact listed on the Cover Page of this IFB.
(b) Option B – Manual Check: On Net 45 Day timing, the City will mail a hardcopy check to Bidder. The payment will be deemed to have been made when the check envelope is mailed via US Postal Service First Class Mail. The timing of the mailing will be at the end of the Net 45 Day period. Additional time should be estimated by the Bidder for the check to be in transit, and to await deposit and clearance by Bidder staff.

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

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

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

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

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

Bidder Company Name:

Bidder Headquarters Address:

City/State/Zip:

Signature/Title/Date:
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19 BID FORM B – BIDDER COMPANY INFORMATION
A. Bidder Company Full
Legal Name
B. Bidder Company
Marketplace (or DBA)
Name
C. Type of Legal Entity: ___ Corporation, registered in ____________________ (State) ___ Limited Liability Company, registered in _________________(State) ___ Partnership, registered in ________________(State)
___ Sole Proprietorship, registered in ____________(State) ___ Other ___________________________________________(Describe) D. Headquarters Address
(Street Address, City,
State, Country, Postal
Code):

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

Title:

Phone (Office):

Phone (Mobile):

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

Fax Number:

Email:

G. Federal Taxpayer
Identification Number
(TIN):

H. Dun & Bradstreet
(DUNS) Number:

I. Names and Titles of
Top Three Bidder
Officers:

J. Years in Business:

K. Bidder Office Address
Closest to City of
Modesto (Street
Address, City, State,
Country, Postal Code):

L. City of Modesto
Business License
Number (note –
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INVITATION FOR BIDS # 2425-27

TIRE TECHNICIAN SERVICES FOR

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20 provide only if
available now - - but
not required until any
contract begins):
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INVITATION FOR BIDS # 2425-27

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

ESTIMATED ANNUAL QTY x UNIT PRICE= EXTENDED PRICE
**In case of discrepancy between a unit price and an extended price, the unit price will be presumed to be correct, subject, however, to correction to the same extent and in the same manner.** TIRE TECHNICIAN SERVICES – On-Site Services UNIT COST
Labor Rate /hr.

Service and Repairs for Light-Duty Tires: (describe)
Service and Repairs for Medium-Duty Tires: (describe)
Service and Repairs for Heavy-Duty Tires: (describe)
Service and Repairs for Off-Road and Over-Sized Tires: (describe) Additional Charges for Equipment or Special Services: (describe) TIRE TECHNICIAN SERVICES – Field Service Call UNIT COST Labor Rate /hr.

TIRE TECHNICIAN SERVICES FOR

FLEET SERVICES
22 Additional Charges for Equipment or Special Services: (describe) TIRE TECHNICIAN SERVICES – On-Site Weekends, After Hours & Holidays UNIT COST Labor Rate /hr.

Service and Repairs for Light-Duty Tires: (describe)
Service and Repairs for Medium-Duty Tires: (describe)
Service and Repairs for Off-Road and Over-Sized Tires: (describe) Additional Charges for Equipment or Special Services: (describe) TIRE TECHNICIAN SERVICES – Field Service Call Weekends, After Hours & Holidays

UNIT COST
Labor Rate /hr.

Service and Repairs for Light-Duty Tires: (describe)
Service and Repairs for Medium-Duty Tires: (describe)
Service and Repairs for Heavy-Duty Tires: (describe)
Service and Repairs for Off-Road and Over-Sized Tires: (describe) Additional Charges for Equipment or Special Services: (describe) Additional Services: (Describe ????) $_____________________________________/UOM #4..
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INVITATION FOR BIDS # 2425-27

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23 Payment Terms:

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

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

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

Bidder Company Name:

Name of Bidder Signatory:

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

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

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

Item # Reference To: Description
Page # Section or
Paragraph #

Bidder Company Name:

Name of Bidder Signatory:

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

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

Company Name:

Address:

City, State, Zip Code:

Contact Person:

Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Service:

Annual Contract Value $
Company Name:

Address:

City, State, Zip Code:

Contact Person:

Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Services:

Annual Contract Value $
Company Name:

Address:

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

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Services:

Annual Contract Value $
Company Name:

Address:

City, State, Zip Code
Contact Person:

Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Services:

Annual Contract Value $
Company Name:

Address:

City, State, Zip Code
Contact Person:

Email Address:

Telephone Number:

Type of Business or
Governmental
Agency:

Date Range of
Services:

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

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

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

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

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

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

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

10.03(h) are satisfied.

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

First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
By signing this document, I agree to the information contained within.

Bidder Company Name:

Name of Bidder Signatory:

Signature of Bidder Representative:
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INVITATION FOR BIDS # 2425-27

TIRE TECHNICIAN SERVICES FOR

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

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

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

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

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

Check here:

I declare I am a local business per the above criteria.

Bidder Company Name:

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

City of Modesto Business License
Number:

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

Print/Type Name:

Title:

Signature:

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

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

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

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

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

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

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

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

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

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

Bidder Company Name:
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INVITATION FOR BIDS # 2425-27

TIRE TECHNICIAN SERVICES FOR

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

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

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

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

Insert Bidder Warranty Statement Beginning Here:
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33 BID FORM K – BIDDER EXPERIENCE AND CERTIFICATIONS
Bidder shall provide below a summary covering the following:

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

B. Certifications: Bidder shall provide copies of all relevant certifications held for both company and any individuals required to perform the services requested herein. Certifications shall include:

Tire Industry Association (TIA) Certifications for Over the Road (OTR) and Off-Road Tire Service:

i. Commercial Tire Service (CTS) Certification – 200/300 Level ii. Earthmover Tire Service (ETS) – 200/300/400 Levels
iii. Occupational Safety and Health Administration (OSHA) Compliance: Compliance with OSHA standards, such as 29 CFR 1910.177, required for servicing multi-piece and single-piece rim wheels TECH Tire Repair Certification for (OTR) and Off-Road:

i. TECH OTR Repair Certification Program
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FLEET SERVICES
34 BID FORM L - SUBCONTRACTOR LIST
Bidder shall list the name and the address of the place of business for each subcontractor who will perform work or labor or render services to the Bidder. In addition, list the type of work the subcontractor will perform, and; (if applicable) its Department of Industrial Relations (DIR) registration number and its California Contractor’s license number:

Name of
Subcontractor
Address Type of Work Contractor
License # (if any)
DIR
Registration #
(if any)

N/A N/A

N/A N/A
Bidder Company Name:
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INVITATION FOR BIDS # 2425-27

TIRE TECHNICIAN SERVICES FOR

FLEET SERVICES
35 TECHNICAL SPECIFICATIONS AND REQUIREMENTS

1.0 SCOPE OF WORK:

The City of Modesto is requesting on On-Site Tire Technician for the Public Works, Fleet Division. The Tire Technician shall perform tire inspection, repair and replacement services for City vehicles, trailers, light/medium/heavy-duty trucks, heavy-duty off-road equipment and over-sized tires.

The selected vendor shall provide a comprehensive pricing structure for the following:
 Service and repairs for light-duty tires
 Service and repairs for medium duty tires
 Service and repairs for heavy-duty tires
 Service and repairs for off-road and over-sized tires Pricing must differentiate between on-site service at City facilities and field service call to off-site or remote locations. The technician must be available Monday through Saturday, during regular business hours (7:00am to 4:30pm), with a response time of no more than two hours for all scheduled and unscheduled service requests.

Additionally, the vendor must provide pricing for weekend and after-hours services.

1.1 GENERAL REQUIREMENTS:

A. The Tire Technician shall repair or replace damaged or unusable tires using the City’s inventory.

B. The Tire Technician must be capable of mounting and dismounting tires of various sizes and weights, from light-duty to over-sized and heavy-duty tires.

C. Inspections: The Tire Technician shall perform thorough inspections, including but not limited to:

1. Checking air pressure, flats, nails, cuts, cracks, defects, mismatched tires, irregular wear, tread depth, or other issues that may deem the tire(s) unsafe for operation.

2. Replacing tires when the tread depth reaches legal limits or when requested by Fleet Staff.

D. Service: The Tire Technician will conduct necessary repairs or replacements using the City’s inventory, when inventory is insufficient, will supply replacement tires under a City-approved contract or cooperative agreement.

1.2 EQUIPMENT:

A. City Provided Equipment: The City shall provide air, jack stands, a wheel balancer, a tire changer (for light-duty vehicles only), and a tire gun. Specialized equipment may be available upon request.

B. Tire Technician Provided Equipment: The vendor must provide:

1. A work truck capable of transporting all necessary equipment.

2. Tools and equipment required for mounting, dismounting and repairing tires as specified within the scope of work.

3. Labor and all necessary safety gear for on-site and field services. #4..
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36 1.3 PRICING REQUIREMENTS:

The vendor shall submit a pricing proposal that includes:

A. On-Site Service Pricing: A breakdown of costs for service and repairs of light-duty, medium-duty, heavy-duty, off-road and over-sized tires at City locations.

B. Field Service Call Pricing: A breakdown of costs for service and repairs at off-site or remote locations.

C. Labor and Equipment Costs: Separate cost lines for labor (hourly rates) and any additional charges for equipment or special services,
D. Tire Costs:

1. If using City inventory, no additional tire costs should be included.

E. Weekend and After-Hours Rates: Specify rates for services provided outside of regular business hours, including weekends and holidays, distinguishing between on-site and field service calls.

1.4 RESPONSE TIME REQUIREMENTS:

A. The vendor must ensure the Tire Technician can respond to service requests within two hours during regular business hours (7:00am to 4:30pm), Monday through Saturday.

B. For after-hours and weekend service requests, the vendor must prov guaranteed response times and corresponding pricing.

1.5 CITY REPRESENTATIVE:

Work under any resulting contract shall be performed under the general technical guidance and direction of the City of Modesto’s representative, Larry Devereaux, Fleet Manager, at (209) 342-2214. The City Representative is not authorized to commit the City to changes in specifications, requirements, scope of work, or changes in price(s), period of performance, delivery date(s) or method of shipment.

Changes of a contractual or business nature shall be effective only by written change to the contract, issued by the City of Modesto Purchasing Division or by the Purchasing Manager or her designee.

1.6 REQUIRED LICENSES:

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

1.7 TERM OF AGREEMENT:

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

A. Pricing shall remain firm for the first two years of any agreement, which may be awarded pursuant to this IFB.

B. Price increases for subsequent agreement years three, four, and five, shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one agreement year, and shall be negotiated through the #4..
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37 Purchasing Division. Requests for price increases shall be submitted by Contractor(s) in writing, ninety (90) days prior to the annual anniversary date of the agreement to be effective for the subsequent year.

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

The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/, California data. #4..
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38 SAMPLE ANNUAL AGREEMENT –
TIRE TECHNICIAN SERVICES FOR FLEET SERVICES IFB 2425-27 This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 20 , by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and , a , hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 20 -______ authorizing the Award of Bid and agreement for the TIRE TECHNICIAN SERVICES FOR FLEET SERVICES to CONTRACTOR, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B”, and made a part hereof, and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for the TIRE TECHNICIAN SERVICES FOR FLEET SERVICES as described in IFB 2425-27, attached hereto as Exhibit “C”, and made a part hereof (hereinafter called IFB). #4..
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39 NOW, THEREFORE, the parties hereto mutually agree as follows:

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

AGREEMENT PRICING
[TBD – Insert Pricing Table Here]

2. CITY REPRESENTATIVE:

CITY Representative: Larry Devereaux, Fleet Manager, (209) 342-2214, [email protected]
Purchasing Representative: Nani Hollingsworth, Assistant Buyer, (209) 577-5296 [email protected]
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40 The CITY Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be effective only by written change to the AGREEMENT, issued by the City of Modesto, Purchasing Division.

3. CONTRACTOR CONTACT:

Click or tap here to enter text.

4. TERM OF AGREEMENT:

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

Year 1: MONTH DD, 20 through MONTH DD, 20
Year 2: MONTH DD, 20 through MONTH DD, 20
Year 3: MONTH DD, 20 through MONTH DD, 20
Year 4: MONTH DD, 20 through MONTH DD, 20
Year 5: MONTH DD, 20 through MONTH DD, 20
Pricing as set forth in Section 1.e. above shall remain firm for the first two years of the AGREEMENT.

Price adjustments for diesel fuel fluctuations may be considered. Thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division and approved at the sole discretion of the CITY.
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41 The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/, California data.

5. LIABILITY 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 the attached Exhibit (D) to this AGREEMENT and shall otherwise comply with the other provisions of Exhibit (D) to this AGREEMENT. The city utilizes a software program “PINS Advantage” where vendors are responsible for uploading and maintaining updated insurance.

6. PAYMENT:

CONTRACTOR shall invoice CITY not less than once per month based on the cost for services performed and reimbursable costs incurred prior to the invoice date. All invoices shall be paid in full the following payment terms within thirty days after completion and acceptance of the Services by the CITY, and receipt of a properly prepared invoice, CITY will pay CONTRACTOR [TO BE DETERMINED BY IFB RESPONSE IN FINAL AGREEMENT, EITHER “Net 30 terms via CITY’s ePay Program” or “Net 45 Days via manual check”]. The CITY is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.

Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
At a minimum, invoices shall state the following:
 This AGREEMENT number
 CITY department/division name and address
 Billing period
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42  Service hours worked day and week
 Unit price, extended price, sales tax and total

7. INDEMNITY:

8. VENUE & GOVERNING LAW:

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

9. ATTORNEYS’ FEES:

If a party to this AGREEMENT brings any action, including an action for declaratory relief, to enforce or interpret the provision of this AGREEMENT, the prevailing party shall be entitled to #4..
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43 reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:
a. Proofs of insurance (approved by CITY Risk Manager); and b. Resolution No.20 -_______;
c. CONTRACTOR Bid submittal;
d. IFB No. 2425-27;
e. Contractor’s City of Modesto business license

11. TERMINATION OF SERVICES:

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

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
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44 a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the SERVICES as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES; h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.
i. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date. #4..
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45 CITY will pay CONTRACTOR for SERVICES actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
j. The cost of settling and paying valid claims arising out of the termination of the SERVICES such as subcontractor agreements or contracts for materials; k. The AGREEMENT price allocable to the portion of the SERVICES properly performed or goods supplied to the work site by the CONTRACTOR as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES.

12. COMPLIANCE WITH ALL LAWS:

13. FAILURE TO PERFORM SATISFACTORY WORK:

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

14. ASSIGNMENT OF RIGHTS:

15. CITY PROCESS/PROCEDURE APPROVALS:

CITY approval of any process or procedure shall not relieve CONTRACTOR of its responsibility to furnish the required SERVICES meeting all specifications contained herein. #4..
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47 16. Contractor's Responsibility for Damages:

17. NOTICES:

CONTRACTOR: Click or tap here to enter text.

Click or tap here to enter text.

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

18. SIGNATORY(IES) FOR CONTRACTOR:

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

19. QUANTITIES:

No minimum or maximum is guaranteed or implied.
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48 20. FUNDING:

All annual extensions are based upon continuous funding for that purpose by the City Council.

Failure to fund any annual extension shall result in an immediate termination of the AGREEMENT without redress.

21. OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:

22. NON-DISCRIMINATION:

A. During the performance of this AGREEMENT, CONTRACTOR and any allowed subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), sexual orientation, or any other basis prohibited by Federal or California law. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment. The CONTRACTOR and any allowed subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. The CONTRACTOR and any allowed subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, and Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title #4..
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49 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.
b. The CONTRACTOR and any allowed subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
c. The CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in any allowed subcontracts to perform SERVICES. d. The CONTRACTOR shall permit access by representatives of the Department of Fair Employment and Housing and the CITY upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or CITY shall require to ascertain compliance with this AGREEMENT.
e. By executing this AGREEMENT, CONTRACTOR certifies that it shall follow and be in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation and will continue to do so for at least the duration of the AGREEMENT and any extensions thereof.

23. CONTRACTOR LICENSES & PERMITS:

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

24. RECORDS:

All final versions of reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that CONTRACTOR prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the CITY. CONTRACTOR hereby #4..
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50 agrees to deliver those documents to the CITY upon termination of the AGREEMENT, and the CITY may use, reuse or otherwise dispose of the documents without CONTRACTOR’s permission. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this AGREEMENT are prepared specifically for the City and are not necessarily suitable for any future or other use.

25. FACILITIES AND EQUIPMENT:

Except as set forth herein, CONTRACTOR shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this AGREEMENT.

CITY shall make available to CONTRACTOR only the facilities and equipment listed in EXHIBIT “A” and “B”, and only under the terms and conditions set forth herein.

26. INDEPENDENT CONTRACTOR; NOT AGENT:

Except as City may specify in writing, CONTRACTOR shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this AGREEMENT to bind City to any obligation whatsoever.

27. DRUG FREE WORKPLACE:

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

29. WAIVER:

30. HEADINGS NOT CONTROLLING:

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

31. MISCELLANEOUS:

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

32. ENTIRE AGREEMENT:

If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
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53 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attested by its City Clerk under authority of Resolution No. 20 -_______, adopted by the Council of the City of Modesto on the ________ day of __________________, 20 and Click or tap here to enter text. has caused this Agreement to be duly executed.

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

DIANE NAYARES-PEREZ, CMC,
City Clerk

(SEAL)

APPROVED AS TO FORM:

By: ____________________________
JOSE M. SANCHEZ,
City Attorney

By: ____________________________

MATHEW BRALEY, ARM-PE,
Risk Manager
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54 Exhibit D:

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

Umbrella or Excess Coverage
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement.

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

Additional Insured Status
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55 The City of Modesto, its officers, officials, employees, 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.

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

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 of Modesto.

Verification of Coverage
Contractor shall furnish the City of Modesto 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 #4..
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56 endorsements are to be received and approved by the City of Modesto Risk Services before work commences.

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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1 EXHIBIT E - PRICING SCHEDULE
AGREEMENT# 298461
TIRE TECHNICIAN SERVICES – On-Site Services UNIT COST
Labor Rate $75.00 /hr.

Service and Repairs for Light-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Medium-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Heavy-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Off-Road and Over-Sized Tires: (describe) INCLUDED IN

HOURLY RATE
Additional Charges for Equipment or Special Services: (describe) N/A
TIRE TECHNICIAN SERVICES – Field Service Call UNIT COST Labor Rate $95.00 /hr.

Service and Repairs for Light-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Medium-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Heavy-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Off-Road and Over-Sized Tires: (describe) INCLUDED IN

HOURLY RATE
Additional Charges for Equipment or Special Services: (describe) N/A
TIRE TECHNICIAN SERVICES – On-Site Weekends, After Hours & Holidays UNIT COST Labor Rate $105.00 /hr.
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2 Service and Repairs for Light-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Medium-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Off-Road and Over-Sized Tires: (describe) INCLUDED IN

HOURLY RATE
Additional Charges for Equipment or Special Services: (describe) N/A
TIRE TECHNICIAN SERVICES – Field Service Call Weekends, After Hours & Holidays

UNIT COST
Labor Rate $105.00 /hr.

Service and Repairs for Light-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Medium-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Heavy-Duty Tires: (describe) INCLUDED IN

HOURLY RATE
Service and Repairs for Off-Road and Over-Sized Tires: (describe) INCLUDED IN

HOURLY RATE
Additional Charges for Equipment or Special Services: (describe) N/A
Additional Services: (n/a) $________________________N/A____________/UOM #4..
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UN PRC EXTENSION UN PRC EXTENSION UN PRC EXTENSION
1 On-Site Services 1 per hour $75.00 $75.00 $141.00 $141.00 $125.00 $125.00 2 Field Service Call 1 per hour $95.00 $95.00 $141.00 $141.00 $125.00 $125.00 3 On-Site Weekends, After Hours & Holidays 1 per hour $105.00 $105.00 $141.00 $141.00 $150.00 $150.00 4 Field Service Call Weekends, After Hours & Holidays 1 per hour $105.00 $105.00 $141.00 $141.00 $150.00 $150.00 5 6
7 SUB-TOTAL: $380.00 $564.00 $550.00
SALES TAX 8.875%: Non Taxable Services $0.00 $0.00 $0.00 1% Epay Option -$3.80 -$5.64 -$5.50
TOTAL: $376.20 $558.36 $544.50
On-Site Services 3 HR Minimum On-Site Services
& Field Services
Field Service Time begins
from their
Stockton
location: 3730 N
Wilson Way.

UNIT OF
ITEM # ITEM/DESCRIPTION QTY ISSUE
There is an
additional
$125.00/hr for
Mobile Press for
Industrial Tires
Stockton, CA
Brannon Tire
Turlock, CA

CITY OF MODESTO
PO BOX 642 MODESTO CA 95353
IFB NO. 2425-27 TIRE TECHNICIAN SERVICES FOR FLEET SERVICES Modesto, CA
McCoy Truck Tire Service Center Southern Tire Mart LLC
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
Date: April 28, 2025
TO: Finance Committee
Rosa Escutia-Braaton, Chair
David Wright, Vice-Chair
Nick Bavaro
THROUGH: Joseph P. Lopez, City Manager
FROM: Bill Sandhu, Public Works Director
SUBJECT: Compost Facility Flexible Pricing Pilot Program Extension CONTACT: Guillermo Padilla Aguilera, City of Modesto Compost Facility Supervisor [email protected], 209-571-5145
DESCRIPTION:

Consider the extension of the Compost Facility Flexible Sales Pricing Pilot Program, originally approved on April 2, 2019, for a five-year extension effective August 1, 2025, through July 31, 2030, and forwarding to Council for approval. (Funding Source: Compost Fund).

STRATEGIC PLAN ELEMENT:

The recommended action is consistent with the Council’s Strategic Plan Area Quality of Life:
“engage partners across the community to ensure the safety, resilience, and attractiveness of Modesto;” Goal D: “provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.” BACKGROUND:

The Compost Facility’s primary and state mandated purpose is to process the City’s diverted yard waste, paper waste and food waste materials into a reusable soil amendment product (compost), thus keeping these materials from entering the landfill and lowering the City’s 1 https://www.calrecycle.ca.gov/organics/slcp
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Finance Committee, May 19, 2025
Compost Facility Flexible Pricing Pilot Program Extension

Page 2 of 3 ends

disposal rate. A secondary purpose of the facility is to then market and sell the finished compost to farmers, landscapers, and backyard gardeners, which in turn helps keep the facility sustainable. Compost is also donated to community gardens and landscape projects, parks, schools, churches, and has been used in City projects. Annually, the Facility receives approximately 50,000 tons of raw compostable waste materials and processes it into about 25,000 tons of compost.

On April 2, 2019, by Resolution No. 2019-140, Council approved a flexible pricing pilot program for one year. On June 2, 2020, by Resolution No. 2020-248, Council approved a flexible pricing pilot program for two years to determine the effectiveness of the program regarding the oversupply of product by making it more financially enticing to move product.

On June 14, 2022, by Resolution No. 2022-276, Council approved new solid waste rates. The new rates took effect on July 1, 2022. A compost facility improvement fee was added to both residential rates and commercial rates. These fees are solely utilized for facility improvements.

On July 12, 2022, by Resolution No. 2022-311, Council approved a one-year extension of the flexible pilot program effective August 1, 2022, through July 31, 2023, with the option of an additional two-year extension. With the flexible pricing, compost supervisory staff has been able to lower the price of the product as necessary to move it to have room to continue processing the city and residential/commercial green waste and organic material to stay in compliance with SB 1383 procurement requirements.

On December 6, 2022, by Resolution No. 2022-466, Council approved an agreement with HDR Engineering, Inc. to conduct a Feasibility Study for the City’s Compost Facility. On October 24, 2023, by Resolution No. 2023-472, Council approved the proposed plan and recommendations from HDR Engineering to expand and improve the existing City of Modesto Compost Facility.

The proposed plan and recommendations might take up to ten years to implement due to availability of funds. While staff is working on reducing contamination in the commercial and residential containers by conducting outreach and education; contamination is still present in the materials received by the facility. The City of Modesto must meet a certain amount of procured compost in order to ensure compliance with SB 1383.

Compost bulk purchases have been inconsistent with sales and have been off by as much as 50%. This creates an oversupply of contaminated product at the facility which can lead to operation permit violations. Selling in bulk is essential to maintaining compliance with SB 1383 procurement requirements by ensuring material moves efficiently and avoids prolonged storage risks.

DISCUSSION:

Since the Flexible Sales Pricing Pilot Program was approved in April 2019, the Compost Facility recorded approximately 18 bulk-sale customers (purchases over 100 tons) receiving as much as 50% off the lowest posted rates noted in the table below. The result was the annual average bulk purchases (tons) increasing over 100% each year from 2019 through 2024 in comparison with 2018 sales. The ability to move product is a critical component of the City’s composting operations and permit regulations. It is evident that having the ability to negotiate pricing and offer competitive rates has been a benefit to the Compost Facility and its operations during this pilot program.
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Finance Committee, May 19, 2025
Compost Facility Flexible Pricing Pilot Program Extension

Page 3 of 3 ends

FISCAL IMPACT:

The continuation of the flexible pricing program would target the 40+ yard pricing category, as this constitutes the large commercial customers who purchase compost in bulk up to several thousand yards of material at a time. Customers who anticipate ongoing purchases to exceed 100 tons may sign a service agreement to receive the flexible pricing discounts. Due to SB 1383 compost procurement and purchasing requirements, the lower bulk pricing will attract cities and jurisdictions to contract with the Compost Facility to purchase more compost to satisfy their compost procurement requirements.

Pricing is adjusted annually using the Consumer Price Index (CPI). Current product sales pricing is as follows:
1-3 yards $19.09 (+tax) per yard
4-39 yards 10.00 (+tax) per yard
40+ yards $7.68 (+tax) per yard or $13.05 (+tax) per ton Under the flexible pricing, the Integrated Waste Program Manager would be able to advertise and offer discounted pricing such as seasonal or oversupply specials up to 75% off in order to move the product to keep the Compost Facility within state permit compliance and allow for room for incoming product processing.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the extension of the Compost Facility Flexible Sales Pricing Pilot Program for a five-year extension effective August 1, 2025, through July 31, 2030; and forwarding to Council for approval.

Approved by:

Bill Sandhu, Public Works Director
Joseph P. Lopez, City Manager
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
Date: April 28, 2025
TO: Finance Committee
Rosa Escutia-Braaton, Chair
David Wright, Vice Chair
Nick Bavaro, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Bill Sandhu, Director of Public Works
SUBJECT: California Department of Resources, Recycling and Recovery (CalRecycle) Used Oil Payment Program
CONTACT: Kolton Pacheco, Solid Waste Enforcement Supervisor, [email protected], (209) 577-5493
DESCRIPTION:

Consider the submittal of Grant Applications, accepting Grant Awards, and amending the annual budgets for all Used Oil Payment Program Grants to California Department of Resources and Recovery, and forwarding to Council for approval. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

This item is in conformance with City of Modesto Strategic Plan Area: “Quality of Life”, “engage partners across the community to ensure the safety, resilience, and attractiveness of Modesto”; Goal B: “Increase pride in Modesto’s diverse neighborhoods and business districts through beautification efforts and by investing in community assets and amenities.” BACKGROUND:

The State of California collects fees which provide funding to cities and counties to establish and maintain solid waste and various recycling programs through the California Department of Resources, Recycling and Recovery (CalRecycle). CalRecycle now has the responsibility for the administration of the solid waste, used oil, hazardous waste and various recycling program grants.

On August 4, 2010, Council approved by Resolution No. 2010-322 applications to CalRecycle for all Used Oil Payment Programs, accepting payment, amending the budget and authorizing City Manager, or designee to execute all related documents.

The City of Modesto's Solid Waste Division uses grant funds to implement many of the waste reduction and recycling programs offered to City residents and businesses. #6..
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Finance Committee, May 19, 2025
California Department of Resources, Recycling and Recovery (CalRecycle) Used Oil Payment Program

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DISCUSSION:

The CalRecycle Used Oil Payment Program (UOPP) is a state program that provides payments to local governments and other eligible entities to support their used oil and used oil filter collection and recycling efforts. It aims to encourage and incentivize the proper disposal and recycling of used oil, preventing environmental damage and promoting resource recovery.  Securing this funding allows the Solid Waste division to educate the public, as well as provide resources and materials that aid in the compliance of proper oil disposal procedure.
 The citizens of Modesto have traditionally responded well to the UOPP programs, leading to less illegally dumped hazardous waste. At Earth Day 2025, City staff distributed 530 supplies consisting of used oil filters and containers, rags, and buckets to residents.
 This will be the 15th consecutive year in which the City of Modesto has secured funding from CalRecycle for UOPP, accepting this recommendation ensures funding to continue, along with expected outreach, education, and services be provided to our community.

FISCAL IMPACT:

Each year, the City receives approximately $30,000 in grant funds for this program.

UOPP Cycle Year Award Amount
9 2019
$
58,930.00
10 2020
$
57,762.00
11 2021
$
23,943.00
12 2022
$
29,016.00
13 2023
$
32,908.00
14 2025
$
29,432.00
15 2024
$
30,316.00
Total
$
262,307.00
Annual
Average
$
37,472.43
This action will allow staff to continue applying for and accepting the CalRecycle Used Oil Payment Program funding on an ongoing basis until rescinded by Council.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:
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Finance Committee, May 19, 2025
California Department of Resources, Recycling and Recovery (CalRecycle) Used Oil Payment Program

Page 3 of 4 ends

Motion recommending the submittal of Grant Applications, accepting Grant Awards, and amending the annual budgets for all Used Oil Payment Program Grants to California Department of Resources and Recovery; and forwarding to Council for approval. #6..
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Finance Committee, May 19, 2025
California Department of Resources, Recycling and Recovery (CalRecycle) Used Oil Payment Program

Page 4 of 4 ends

Approved by:

Bill Sandhu, Director of Public Works
Joseph P. Lopez, City Manager
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
Date: April 28, 2025
TO: Finance Committee
Rosa Escutia-Braaton, Chair
David Wright, Vice Chair
Nick Bavaro, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Bill Sandhu, Director of Public Works
SUBJECT: California Department of Resources Recycling and Recovery (CalRecycle) Beverage Container Recycling City/County Payment Program CONTACT: Rosene Nguyen, Integrated Waste Manager, [email protected], 209- 577-5453
DESCRIPTION:

Consider the submittal of Grant Applications, accepting Grant Awards and amending the annual budgets for all the Beverage Container Recycling City/County Payment Programs to California Department of Resources Recycling and Recovery, and forwarding to Council for approval. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

This item is in conformance with City of Modesto Strategic Plan Area: “Quality of Life”, “engage partners across the community to ensure the safety, resilience, and attractiveness of Modesto”; Goal D: “Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance and sustainability efforts”.

BACKGROUND:

The goal of CalRecycle’s Beverage Container Payment Program (Program) is to assist cities and counties in reaching and maintaining an 80 percent recycling rate for all California Refund Value (CRV) beverage containers –aluminum, glass, plastic and bimetal and help fund litter cleanup activities. Projects implemented as a result of funding from CalRecycle will assist in reaching and maintaining this goal. #7..
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Finance Committee, May 19, 2025
California Department of Resources Recycling and Recovery (CalRecycle) Beverage Container Recycling City/County Payment Program

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On January 14th, 2020, by Resolution No. 2020-018, Council approved applications and acceptance of the CalRecycle City/County Payment Program that expires in 2025. CalRecycle grants require a signed and dated resolution from the Agency that is applying for the grant to be completed every five years authorizing the City Manager, or his designee, to sign grant applications and any related forms, accept grant awards, and amend the grant budget.

DISCUSSION:

The City of Modesto applies for the Program annually on an ongoing basis, and participation in the Program is necessary to continue to fund the City’s beverage container recycling program.

The City’s program provides a variety of recycling opportunities to City residents. The Program funding allows the City to maintain its existing beverage recycling program, expand into additional public areas, and be present at a wide variety of special events. The recycling recovery and maintenance of the units requires a part-time staff person to operate a wellestablished daily route throughout the entire year that is made possible through the Program’s funding.

In addition, with the Program funding and support from CalRecycle, the City provides public outreach that encourages CRV recycling in Modesto. Staff is committed to making recycling become second nature through education, programs, community outreach, and permanently placed recycling units throughout the City.

FISCAL IMPACT:

Over the last 10 years, the City has received over $500,000 in grant funds for programs to promote and facilitate CRV recycling.

This action will allow staff to continue applying for CalRecycle City/County Payment Program grants without delay through 2030.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the submittal of Grant Applications, accepting Grant Awards, and amending the annual budgets for all the Beverage Container Recycling City/County Payment Program Grants to California Department of Resources Recycling and Recovery; and forwarding to Council for approval.

Approved by:

Bill Sandhu, Director of Public Works
Joseph P. Lopez, City Manager
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
Date: April 22, 2025
TO: Finance Committee
Rosa Escutia-Braaton, Chair
David Wright, Vice Chair
Nick Bavaro, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Bill Sandhu, Director of Public Works
SUBJECT: First Amendment to the Agreement with HDR Engineering, Inc to Complete Assigned Work and to Gain Regulatory Compliance for the Carpenter Road Landfill
CONTACT: Rosene Nguyen, Integrated Waste Manager, [email protected], 209- 577-5453
DESCRIPTION:

Consider the First Amendment with HDR Engineering, Inc., of Folsom, CA to complete assigned work and to gain Regulatory Compliance for the Carpenter Road Landfill, Modesto California, increasing the Agreement amount by $47,800 and forwarding to Council for approval. (Funding Source: Carpenter Road Landfill)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s Strategic Plan Area of Focus: Quality of Life, “Engage partners across the community to ensure the safety, resilience, and attractiveness of Modesto”, Goal A: “Improve community safety and quality of life through a combination of prevention and intervention efforts that address safety and its underlying issues”, and Goal B:
“Increase pride in Modesto’s diverse neighborhoods and business districts through beautification efforts and by investing in community assets and amenities.” BACKGROUND:

The City of Modesto owned and operated the Carpenter Rd Landfill from 1956-1968. It was a pre-Subtitle D landfill which means there was never a liner put in, or gas and leachate control systems. The landfill size is thirty-nine acres and is split into two areas, east and west, bordering Carpenter Road. The City has ensured post closure monitoring of water and gas wells, as well as general maintenance as required under State law. In the mid-2000’s there was a spike in one methane gas well, as well as a release of VOC (Volatile Organic Compound). The Regional Water Quality Control Board (Water Board) asked the City to provide a Mitigation and Monitoring Plan, as well as a Corrective Action Plan. In 2015 the Water Board issued a Cleanup and Abatement Order (CAO) to the City based on their approval of the Correction Action Plan. #8..
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Finance Committee, May 19, 2025
First Amendment to the Agreement with HDR Engineering, Inc to Complete Assigned Work and to Gain Regulatory Compliance for the Carpenter Road Landfill

Page 2 of 4 ends

The City agreed to clean close the east fill and move all the waste to the west fill. The idea behind this would be that all the waste would be contained in one area on the west side and a culvert and pipe would be placed to capture water runoff that would drain into a clean retention basin on the east side. The Water Board accepted this plan. The City conducted an initial study for a mitigated negative declaration and all agencies that were required to be notified were notified. Construction was planned to start in 2016/2017 but due to a significantly wet weather season it was delayed a year.

The City then went out to bid in 2018 and on August 14, 2018, by Resolution No. 2018-345 Council awarded the contract to Pacific States Environmental Contractors, Inc. of Dublin, CA.

Construction began in 2018 and by August 2020, observable waste, and impacted soil from the Eastern Waste Management Unit (WMU) was removed and consolidated into the Western WMU, and a new soil cover was installed atop the Western WMU. A stormwater retention basin was constructed in the former Eastern WMU location, and documents were submitted to the Water Board regarding closure. The Water Board contends that the documents are not complete, and subsequent submittal of additional information did not completely satisfy the requirements of the CAO. The Water Board has provided notice that the City remains noncompliant with the CAO and that it may be subject to significant civil penalties until the delinquent reports are resolved.

On September 12, 2023, by Resolution No. 2023-412, the City entered into an agreement with HDR Engineering, Inc., of Folsom, CA to complete assigned work and to gain regulatory compliance for the Carpenter Road Landfill, Modesto California for an amount not to exceed $271,700 over a five-year period, plus $27,170 for additional services authorized by the City Manager, for a total amount not to exceed $298,870.

DISCUSSION:

HDR Engineering, Inc. reviewed the existing notice of violations received from the Water Board and the design and reporting documents provided by the City. The tasks listed below are outlined in the original Agreement to address the Water Board’s requested work and to ensure compliance.

Phase 1
Task 100 Project Management
Task 200 Site Reconnaissance and Kickoff Meeting
Task 300 Cover Completion Confirmation Work Plan
Task 400 Stormwater Repair and Protection Work Plan
Task 500 Residual Waste Removal Work Plan
Task 600 Clean Closure Results Discussion
Task 700 Post-Closure Maintenance Plan (PCMP)
HDR Engineering, Inc is currently working on all the tasks mentioned in Phase 1. The request to amend the Agreement is regarding Task 500: Residual Waste Removal Work Plan. The plan is to remove the waste materials that are located at the banks of the Tuolumne River. In order to conduct any work at the location, the City needed to obtain a permit from the California Department of Fish and Wildlife (CDFW). In October 2024, the City submitted an application to obtain a Lake or Streambed Alteration Agreement. On February 28, 2025, CDFW issued an Operation of Law letter stating that because they did not respond to the City by January 31, #8..
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Finance Committee, May 19, 2025
First Amendment to the Agreement with HDR Engineering, Inc to Complete Assigned Work and to Gain Regulatory Compliance for the Carpenter Road Landfill

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2025, an agreement is not required. However, the City is still obligated to complete the project as exactly described in the application without an agreement.

The CDFW permit indicated that the City is responsible for complying with certain biological monitoring requirements such as Fish and Game Code sections 2080, 1908, 3511, 4700, 5050, and 5515, and other sections mentioned in the notice. Also, the Water Board indicated that the City is required to excavate additional trenches by the riverbank. With the above request, the City is requesting an amendment to the current Agreement with HDR Engineering, Inc.

The following tasks have been identified to complete Residual Waste Removal Work Plan:

Task 5 – Residual Waste Removal Work Plan
a. Environmentally Sensitive Area Fencing Oversight
b. Conduct Worker Environmental Awareness Training
c. Nesting Bird and Raptor Surveys
d. Pond Turtle Nesting Survey
e. Roosting Bats and Maternity Colony Survey
f. Burrowing Owl Survey
g. Biological Monitoring during Trenching
h. Underground Utility Marking
i. Additional Trenches
Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204(f) “Where the Purchasing Manager in her discretion, determines that it is appropriate to amend the services or goods provided under 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. Thus, HDR has started the process to obtain a CDFW permit requited to complete the original scope of work, this amendment is necessary to conduct biological monitoring as required for the CDFW permit.

FISCAL IMPACT:

This first amendment will increase the total by $47,800 to a new total amount not to exceed $319,500 plus $31,950 for additional services authorized by the City Manager, for a total amount not to exceed $351,450.

Table 1. Cost estimate per tasks identified:

Task Description Cost
Estimate
Task 1 – Project Management $ 8,300
Task 2 – Site Reconnaissance and Kickoff Meeting –
Task 3 – Cover Completion Confirmation Work Plan –
Task 4 – Storm Water Repair and Protection Work Plan –
Task 5 – Residual Waste Removal Work Plan $ 39,500
Task 6 –Clean Closure Results Discussion –
Task 7 – Post Closure Maintenance Plan (PCMP) –
Grand Total $ 47,800
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Finance Committee, May 19, 2025
First Amendment to the Agreement with HDR Engineering, Inc to Complete Assigned Work and to Gain Regulatory Compliance for the Carpenter Road Landfill

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RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the First Amendment with HDR Engineering, Inc to complete assigned work and to gain Regulatory Compliance for the Carpenter Road Landfill, Modesto California, increasing the Agreement amount by $47,800 to a new total amount of $351,450 through the term of the Agreement; and forwarding to Council for approval.

Approved by:

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

1. First Amendment to Agreement 253660

2. Exhibit A

3. Exhibit A1 - First Amendment to Modesto Carpenter Road HDR Proposal

4. Exhibit B - HDR Proposal (1 of 3)

5. Exhibit B - HDR Proposal (2 of 3)

6. Exhibit B - HDR Proposal (3 of 3)

7. Executed Agreement HDR Carpenter LF Closure Phase I

8. Bid Waiver Approval Packet- Amendment to HDR - CRLF2 – Signed

9. Modesto Levine Act Statement Form - Signed
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1 FIRST AMENDMENT TO AGREEMENT

FOR CARPENTER ROAD LANDFILL CLOSURE PHASE I REGULATORY
ASSISTANCE CONSULTANT SERVICES WITH HDR ENGINEERING, INC.

This First Amendment to the Agreement for Carpenter Road Landfill Closure Phase I Regulatory Assistance Consultant Services (“First Amendment”) is entered into between the CITY OF MODESTO, a municipal corporation of the State of California (hereinafter the “City”) and HDR ENGINEERING, INC., a Nebraska corporation (hereinafter “Consultant”) as of __________________________.

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

1. City and Consultant entered into the Agreement for Carpenter Road Landfill Closure Phase I Regulatory Assistance Consultant Services on the 12th day of September 2023 (“the Original Agreement”).

2. City and Consultant desire to amend the Original Agreement to expand the Scope of Services.

3. City and Consultant desire to amend the Original Agreement to increase the maximum compensation to $351,450.

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

1. Section 1, SCOPE OF SERVICES shall be deleted in its entirety and replaced with the following:
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2 “Consultant shall undertake and complete the scope of work as set forth and described in the documents attached hereto and referred to as Exhibit “A” and Exhibit “A1.”

2. Section 3, COMPENSATION shall be deleted in its entirety and replaced with the following:
“Consultant agrees to accept a sum not to exceed $319,500. (maximum compensation) as full remuneration for performing all services and furnishing all staffing and materials in accordance with Exhibit "A" and Exhibit “A1”, except those additional services may be compensated as described below.

The Compensation shall be paid pursuant in the manner and at the times set forth below:

City shall pay Consultant on a time and materials basis for Consultant's actual costs for all work called for in Exhibit "A" and Exhibit “A1” to this Agreement. All work to be performed under this Agreement shall be billed on a lump sum basis for percent completion on each of the tasks set forth in Exhibit "B" and Exhibit “A1” attached hereto. Consultant shall submit invoices as the task are complete to City which include detailed tasks, hours worked, and billable rates for all work completed, and detailed receipts for any reimbursable expenses paid by Consultant and identified in Exhibit "B" and Exhibit “A1” or approved by the City in writing.

City shall pay Consultant ''Net 45 Days via manual check". City shall pay all undisputed amounts within 45 days following receipt of the Consultant's invoice.

Additional services may be authorized by the City Manager in an amount up to, but not to exceed 10% of the agreed maximum compensation, or $351,450. In the event that additional services are deemed necessary, the Consultant shall provide a written request to #8..
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3 the Department Manager indicating the reason for additional work, scope and cost of such work. The Department Manager shall provide a written response to the request, either approving or denying the additional expenditure. If additional services are requested and approved, they will be billed at the hourly rates set forth in Exhibit "B" and may not exceed the amount requested and approved in writing by the City Manager. In that event, the new total compensation shall not exceed $351,450. If additional services in excess of this amount are deemed necessary by City Staff, an amendment to this Agreement will be required and must be approved prior to commencing the work.”

3. Except as modified and amended by this First Amendment, all other provisions of the Original Agreement, shall remain unchanged and in full force and effect. #8..
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4 IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this First Amendment to the Original Agreement for Consultant Services by its City Manager and attestation by its City Clerk under the authority of Resolution No. 2025-_____ on the ________ day of ___________, 2025, and HDR ENGINEERING, INC. has caused this First Amendment to be duly executed as of the Effective Date. #8..
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hdrinc.com
3003 Oak Road, Suite 500, Walnut Creek, CA 94597-4541
(925) 465-2700
March 24, 2025
Rosene Nguyen
City of Modesto, Integrated Waste Program Manager
Department of Public Works
PO Box 642
Modesto, CA 95353
[email protected]
Subject: Amendment 1
Agreement for Carpenter Road Landfill Closure Phase I Regulatory Assistance for Consultant Services, Agreement #253660
HDR Project No.: 10384692
Dear Rosene,
Per our communication of March 13, 2025, HDR is providing this Scope of Work amendment in accordance with Item 9 Amendments and Item 13 Notices of our contract. The scope of work in this Amendment 1 pertains to biological monitoring services specified in the CDFW permit and additional trenches requested by the RWQCB. The fixed price for the work described herein is $47,800. Your signature below will serve as HDR’s authorization to proceed.

We appreciate the opportunity to provide our support to the City of Modesto (City) on this project. Should you have any questions, please contact Charlie O’Neill at (916) 817.4764 / [email protected].

Sincerely,
HDR Engineering Inc.

Charlie O’Neill Holly Kennedy, PE
Project Manager Sr. Vice President
__________
Signed by:

City of Modesto, Department of Public Works
Rosene Nguyen
Integrated Waste Program Manager
Exhibit "A1" #8..
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City of Modesto | Proposal
Carpenter Road Landfill Closure Phase I Regulatory Assistance, Amendment 1 2 Carpenter Road Landfill Closure Phase I
Regulatory Assistance
Amendment 1 / Contract Agreement #253660
Introduction
This amendment was prepared to provide supplemental services for landfill regulatory assistance as presented in HDR’s proposal dated April 3, 2023. This Amendment 1 consists of the following tasks:
 Task 1 - Weekly Meetings and Project Management
 Task 5 - Residual Waste Removal Work Plan
Task 1 - Weekly Meetings and Project Management.

This task includes communication between the City and HDR; planning, organizing, and monitoring project team activities; attending meetings, as requested; responding to specific requests not specifically addressed in the scope; and preparing and updating project schedule.

This task was scheduled for a 120-day duration starting December 2023 with up to six ad-hoc one-hour meetings with the City with up two HDR staff. This scope item has been extended as part of project requirements. HDR anticipates an additional six months duration to the project with an additional six monthly meetings attended by up to two HDR staff.

DELIVERABLES:
 HDR will take attendance and drive presentations at meetings.  HDR will provide project schedule updates on a monthly basis.

ASSUMPTIONS:
 There will be up to 6 ad-hoc one-hour teleconferences between the City and (up to) two HDR staff.

Task 5 – Residual Waste Removal Work Plan
The objective of this amended activity is for HDR to assist the City with its compliance obligations including requirements from the California Department of Fish and Wildlife (CDFW).1 a) Environmentally Sensitive Area Fencing Oversight: Environmentally sensitive areas identified by the HDR biologist will be avoided during project activities. These areas will be temporarily fenced and/or flagged as close to work limits as feasible. Fencing or flagging will be high-visibility and left in place for the duration of the project. The location and extent of fencing/flagging will be determined by HDR Biologist who will oversee its installation and conduct regular inspections. The HDR biologist will demarcate the 1 In October 2024, the City submitted an application to obtain a Lake or Streambed Alteration Agreement (Agreement). On February 28, 2025, CDFW issued am Operation of Law letter stating that because they did not respond to the City by January 31, 2025, an Agreement is not required. However, the City is still obligated to complete the project as exactly described in the application without an Agreement. #8..
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City of Modesto | Proposal
Carpenter Road Landfill Closure Phase I Regulatory Assistance, Amendment 1 3 location of fencing in the field with stakes and flagging. Fencing will delineate riparian habitat, nests, elderberry shrubs, pond turtle nests, or other sensitive resources. b) Conduct Worker Environmental Awareness Training: Prior to the onset of work activities, an HDR biologist will prepare and conduct mandatory contractor/worker environmental awareness training for personnel to inform them on the locations of sensitive biological resources and site-specific protective measures required during construction activities. If new personnel are added to the project, the City will require them to receive the mandatory training prior to starting work. Training will discuss special-status species, including species identification, a description of life history, habitat requirements during various life stages, and the species’ protected status. The training is expected to be no more than 15 minutes in duration and will be performed prior to excavation activities. c) Nesting Bird and Raptor Surveys: Within 15 days prior to trenching that will occur between March 1 and August 15, an HDR biologist will conduct pre-construction surveys for tree-nesting raptors and migratory songbirds. Nesting habitat for tree nesting raptors and migratory songbirds will be surveyed within 250 feet of the proposed construction areas. HDR biologist will conduct Swainson’s hawk surveys per guidelines provided in the Recommended Timing and Methodology for Swanson’s Hawk Nesting Survey in the Central Valley (Swainson’s Hawk Technical Advisory Committee 2000). If no Swanson’s Hawk nests are observed, then no further mitigation is required. If a Swanson’s Hawk nest is observed, then mitigation of avoidance or project delay will occur. d) Pond Turtle Nesting Survey: Within 15 days prior to project activities, a survey will be conducted for the presence of nesting pond turtles. If no nesting pond turtles are detected, no further mitigation is required. If nesting pond turtles are detected, then exclusionary fencing in the vicinity of the nest will be used to reduce potential for pond turtle encroachment to the trenching area. This fencing will be maintained throughout the duration of trenching in the vicinity of the nest. The integrity of the exclusion fencing will be checked daily by a biological monitor, or a designee. Additionally, HDR’s biological monitor will check the work area in the morning before construction begins to confirm that no turtles are within the exclusion area. If an individual or nest is observed in the impact area, construction activities will stop until the biological monitor establishes an appropriate buffer, or the turtle is no longer in the impact area.

If work is performed between May-July during nesting season, surveys for nesting females will be required no more than 48 hours prior to ground disturbance activities. A qualified biologist shall survey the work site and 400 meters up and downstream for signs of nesting and occupation. If nests are encountered, an exclusion buffer will be delineated around the nest area where no work shall occur until the end of nesting season. If work must occur within the nesting area, the City will obtain necessary authorization from the U.S. Fish and Wildlife Service for relocation authority and procedures.
e) Roosting Bats and Maternity Colony Survey: If ground disturbing activities commence on the project site during the breeding season of native bat species (April 1 to August 31), #8..
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City of Modesto | Proposal
Carpenter Road Landfill Closure Phase I Regulatory Assistance, Amendment 1 4 then a field survey shall be conducted by a qualified bat biologist to determine whether active roosts are present on site or within fifty (50) feet of the project boundaries.

Field surveys shall be conducted early in the breeding season before project activities begin, when bats are establishing maternity roosts but before pregnant females give birth (April through early May). If no roosting bats are found, then no further mitigation is required. If roosting bats are found, then disturbance of the maternity roosts shall be avoided by halting project activities until the end of the breeding season, or a qualified bat biologist removes and relocates the roosting bats in consultation with CDFW through a separate permit application process.
f) Burrowing Owl Survey: Within fifteen (15) days prior to project activities a survey for burrowing owls will be conducted between March and May. Fossorial mammal burrows within the trenching area will be examined for signs of occupation by burrowing owls including presence of pellets, whitewash around the opening, or scattered feathers. If no burrowing owls are detected, no further mitigation is required. If burrowing owls are detected, no work will occur until the burrowing owls leave, or the City would apply for an Incidental Take Permit (ITP). If an ITP is pursued, no work will occur until the City receives the ITP.
g) Biological Monitoring during Trenching: A biological monitor will be provided during each day of trenching activities. This will include monitor led environmental awareness training for construction workers at the start of each day and observation of biological protectiveness measures.
h) Underground Utility Marking: As required by state law, HDR will mark each trench location and notify USA North 811 to mark underground utility locations in the vicinity of each trench.
i) Additional Trenches: In its letter dated May 23, 2024, the Central Valley Regional Water Quality Control Board (CVRWQCB) requested additional trenches be excavated to better define the extent of waste. The response to the CVRWQCB’s comment resulted in siting of five additional trenches.

DELIVERABLES:
 A meeting agenda will be provided prior to each meeting.  A brief memorandum will be prepared by an HDR biologist to summarize results of required pre-construction surveys.
 A brief memorandum will be prepared by HDR biologist to summarize the monitoring effort conducted.

ASSUMPTIONS:
 The biological surveys and the trench marking will each be performed on the same day by two HDR staff members.
 The five additional trenches will require two additional days of field activity. A total of twelve (12) trenches will be excavated.
 HDR will provide and install stakes, flagging / fencing to delineate environmentally sensitive areas. An HDR biologist will provide oversight of installation. #8..
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City of Modesto | Proposal
Carpenter Road Landfill Closure Phase I Regulatory Assistance, Amendment 1 5  A total of 5 days is assumed for trenching effort. Twelve hours per day is assumed for monitoring which includes daily travel to/from project location.  Per California Environmental Quality Act Initial Study prepared by the City in 2017, cultural monitoring is not required; therefore, no cultural monitor is being provided by HDR.
 The City will not remove trees greater than 2-inches in diameter.  No direct impacts (i.e., trimming, thinning or removal) to elderberry shrubs will occur.  A pre-construction or monitoring report will be prepared by HDR’s biologist; however, the reports will not be submitted to CDFW as it wasn’t identified in the application for the Agreement.
 A Storm Water Pollution Prevention Plan will not be required due to disturbance of the twelve (12) trenches is less than 1 acre.
 Deliverables under this task order will be prepared and submitted electronically.

A budget summary for this amendment is provided below:

This proposal is valid for ninety (90) days from the date of submission. Thereafter, it may be subject to change.
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California Levine Act Disclosure
California Government Code Section 84308, also known as the "Levine Act", prohibits City “officers” from participating in any action related to a license, permit, or other entitlement for use (a “proceeding”) if such member accepts, solicits, or directs political contributions from a party to the proceeding or their agent totaling more than $500 while the proceeding is pending before the agency, and for twelve (12) months following the date a decision concerning the proceeding has been made. The Levine Act also requires disclosure of such contribution by a party to the proceeding.

Section 84308(a)(4) of the Levine Act defines an "officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency of officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position; (2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4)Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Modesto City Council Board Members can be found online at: Modesto City Council https://modestogov.com/706/Council-Members (modestogov.com). The party making this certification is responsible for determining whether a recipient of a political contribution is a City officer prior to answering the following questions:

1. Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $500 to any City officer, in the twelve (12) months preceding the date of the submission of your proposals or the anticipated date of any Council action related to this contract?
___ YES If yes, please identify the Councilmember(s):
_X__ NO

2. Do you, or your company, or any agent on behalf of you or your company, anticipate or plan to make any political contribution of more than $500 to any City officer in the twelve (12) months following any Council action related to this contract?
___ YES If yes, please identify the Councilmember(s):
_X__ NO
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Answering YES to either of the questions above does not preclude the City of Modesto from awarding a contract to your firm or taking any subsequent action related to the contract. It may, however, preclude the identified City officer from participating in any actions related to such contract.

HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
_________________ _____________________________
Date Signature of authorized individual
_____________________________
Company/Applicant Name
HDR Engineering, Inc. /Holly Kennedy, PE
4/11/2025
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

May 19, 2025
March 24, 2025
TO: Finance Committee
Rosa Escutia-Braaton, Chair
David Wright, Vice Chair
Nick Bavaro, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Bill Sandhu, Director of Public Works
SUBJECT: Second Amendment to the Agreement for the Feasibility Study for Compost with HDR Engineering Consultants
CONTACT: Rosene Nguyen, Integrated Waste Manager, [email protected], 209- 577-5453
DESCRIPTION:

Consider the Second Amendment with HDR Engineering, Inc. Folsom, CA for the Feasibility Study for Compost, increasing the Agreement amount by $94,658 over the term of the Agreement, and forwarding to Council for approval. (Funding Source: Compost Facility Improvement Fund)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The City of Modesto Compost Facility was created and began operation in January 1997 to comply with Assembly Bill (AB) 939’s 50% waste diversion requirement. In September 2016, Governor Brown signed the Short-Lived Climate Pollution Reduction Act Senate Bill (SB 1383)1 into law, establishing emission reduction targets statewide to reduce organic waste to landfill by 75% and recovering 20% of edible food waste for human consumption by 2025. 1 https://www.calrecycle.ca.gov/organics/slcp
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Finance Committee, May 19, 2025
Second Amendment to the Agreement for the Feasibility Study for Compost with HDR Engineering Consultants

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Finance CommitteeMay 19, 2025

Finance Committee
May 19, 2025