Modesto City Council
June 24, 2025

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

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, June 24, 2025 at 5:30 PM
Roll Call - Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
* Public Comment will only be in-person. Members of the public who wish to address the Council, by providing public comment, during the meeting must do so in-person in the Council Chambers.

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

THE MEETING CAN BE VIEWED BY ZOOM VIDEO

CONFERENCING OR TELEPHONE
Joining the City Council meeting via Zoom
The City of Modesto is now offering the ability to view Council meetings via telephonic conferencing via “Zoom” video conferencing computer technology. The meeting may be accessed through the use of Zoom using the following options:
 Enter the following link into an Internet Browser
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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 Council meeting.

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

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

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

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

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

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Proclamation declaring July as Disability Rights Month. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected]

MISCELLANEOUS
Legislation, Appointments, Other

2. Consider accepting the resignation of Diane Kroeze from the Citizens’ Transportation Sales Tax Commission. (Funding Source: Not Applicable)
Staff Recommendation:
 Resolution accepting the resignation of Diane Kroeze from the Citizens’ Transportation Sales Tax Commission.

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

3. Consider approving the appointment of Melinda Martin to fill one City of Modesto representative vacancy to the Stanislaus Animal Services Agency Advisory Committee for a two-year term beginning July 1, 2025 through June 30, 2027. (Funding Source:

Not Applicable)
Staff Recommendation:
 Resolution approving the appointment of Melinda Martin as the City of Modesto representative to the Stanislaus Animal Services Agency Advisory Committee for a two-year term beginning July 1, 2025, through June 30, 2027.

CITY MANAGER; Scotty Douglass, 209-577-9149, [email protected]

4. Consider approving the appointment of Thomas Orosco for the City of Modesto Public Member of the Audit Committee for a partial unexpired term ending June 30, 2027. (Funding Source: Not Applicable)
Staff Recommendation:
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 Resolution approving the appointment of Thomas Orosco for the City of Modesto Public Member of the Audit Committee for a partial unexpired term ending June 30, 2027.

FINANCE DEPARTMENT; DeAnna Christensen, 209-577-5387,
[email protected]

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

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

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

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

Consent

5. Consider approving the minutes for the June 10, 2025 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving the minutes for the June 10, 2025 Council Meeting.

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

6. Consider approving Final Adoption of Ordinance 3796-C.S. amending Section 8-

10.102 “Membership of Commission” of Title 8 Chapter 10, “Citizens’ Transportation Sales Tax Commission”. (Funding Source: Not Applicable) Staff Recommendation:
 Motion approving Final Adoption of Ordinance 3796-C.S. amending Section 8-

10.102 “Membership of Commission” of Title 8 Chapter 10, “Citizens’ Transportation Sales Tax Commission”.

CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] - 4 -
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Consent

7. Consider approving Final Adoption of Ordinance 3797-C.S. of the City Council of Modesto amending Title 10 (Zoning Regulations) of the Modesto Municipal Code, amending Chapter 2 (Definitions), Article 1 (Definitions); Chapter 3 (Land Use Regulations), Article 1 (Permitted And Conditional Land Uses); Chapter 3, Article 2 (Specific Land Use Regulations); Chapter 4 (Development Standards), Article 1 (Residential Zones); and Chapter 4, Article 5 (Accessory Dwelling Units). (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving Final Adoption of Ordinance 3797-C.S. of the City Council of Modesto amending Title 10 (Zoning Regulations) of the Modesto Municipal Code, amending Chapter 2 (Definitions), Article 1 (Definitions); Chapter 3 (Land Use Regulations), Article 1 (Permitted And Conditional Land Uses); Chapter 3, Article 2 (Specific Land Use Regulations); Chapter 4 (Development Standards), Article 1 (Residential Zones); and Chapter 4, Article 5 (Accessory Dwelling Units).

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

8. Consider approving the Economic Development Strategic Plan (2025). (Funding Source: Not Applicable)
Staff Recommendation:
 Resolution approving the Economic Development Strategic Plan (2025).

CED; Raj Solanki, 209-577-5244, [email protected] Consent

9. Consider approving the renewal of eight Commercial Cannabis Retail Permits for dispensaries in the City for a two-year period ending June 30, 2027. (Funding Source:

Commercial Cannabis Permit Fee)
Staff Recommendation:
 Resolution approving the renewal of CR & D Inc’s commercial cannabis retail permit for a two-year period ending June 30, 2027.
 Resolution approving the renewal of CV Wellness LLC’s commercial cannabis retail permit for a two-year period ending June 30, 2027.  Resolution approving the renewal of Jonesa LLC’s commercial cannabis retail permit for a two-year period ending June 30, 2027.
 Resolution approving the renewal of McHenry Business Services LLC’s commercial cannabis microbusiness permit for a two-year period ending June 30, 2027.
 Resolution approving the renewal of DC Modesto LLC’s commercial cannabis retail permit for a two-year period ending June 30, 2027.  Resolution approving the renewal of McHenry Comic Management LLC’s commercial cannabis retail permit for a two-year period ending June 30, 2027.  Resolution approving the renewal of Phenos Collective Inc’s commercial cannabis retail permit for a two-year period ending June 30, 2027. - 5 -
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 Resolution approving the renewal of Paradise West Inc’s commercial cannabis retail permit for a two-year period ending June 30, 2027.

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

10. Consider approving a Cost Sharing Agreement with the County of Stanislaus for the construction of the Urban Pavement Preservation Phase G and Phase H Projects. (Funding Source: Measure L)
Staff Recommendation:
 Resolution approving a Cost Sharing Agreement with the County of Stanislaus for the construction of the Urban Pavement Preservation Phase G and Phase H Projects and authorizing the City Manager, or his designee, to execute the Agreement.
 Resolution amending the Fiscal Year 2024-25 Multi-Year Non-Capital project fund budgets for Project #101628 in the amount of $290,000 to appropriate the funds for the Urban Pavement Preservation Phase G and H projects and authorizing the City Manager, to take the necessary steps to implement the provisions of this resolution.

ENGINEERING SERVICES; Toby Wells, 209-577-5542, [email protected] Consent

11. Consider accepting the State Route 132 West Freeway/Expressway - Phase 1 Project as complete, releasing securities, releasing payments totaling $100,285,151 to Bay Cities Paving & Grading, Inc., of Concord, California, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Various Funds)
Staff Recommendation:
 Resolution accepting the State Route 132 West Freeway/Expressway - Phase 1 Project as complete, releasing securities, releasing payments totaling $100,285,151 to Bay Cities Paving & Grading, Inc., of Concord, California, and authorizing the City Clerk to file a Notice of Completion.

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

12. Consider approving a Measure L Master Funding Agreement with Stanislaus Council of Governments (StanCOG) for Fiscal Year 2025-2030. (Funding Source: Measure L) Staff Recommendation:
 Resolution approving the Measure L Master Funding Agreement with the Stanislaus Council of Governments (StanCOG) for Fiscal Years 2025-2030 and authorizing the City Manager or his designee to execute the Agreement.

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

13. Consider approving a Will Serve Letter and Outside Service Agreement with CLR Properties LLC, A California Limited Liability Company, to connect to the City of Modesto’s existing sewer system for the property located at 2204 Crows Landing Road (APN: 086-012-033). (Funding Source: Sewer Fund)
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Staff Recommendation:
 Resolution approving a Will Serve Letter and Outside Service Agreement with CLR Properties LLC, a California Limited Liability Company, to connect to the City of Modesto’s existing sewer system for the property located at 2204 Crows Landing Road (APN: 086-012-033) and authorizing the City Manager, or his designee, to the sign the Will Serve Letter and execute the Outside Service Agreement.

ENGINEERING SERVICES; Jaspreet Mangat, 209-577-5253,
[email protected]
Consent

14. Consider approving the submittal of up to eight Federal Grant applications for Congestion Mitigation and Air Quality (CMAQ) and Surface Transportation Block Grant (STBG) Funds. (Funding Source: Federal CMAQ Grant Funds, Federal STBG Grant Funds and Local Funds – Measure L)
Staff Recommendation:
 Resolution approving the submittal of up to eight Federal Grant applications for Congestion Mitigation and Air Quality (CMAQ) and Surface Transportation Block Grant (STBG) funds, and authorizing the City Manager, or his designee to execute all necessary grant documents.

ENGINEERING SERVICES; Michael Sacuskie, 209-571-5552,
[email protected]
Consent

15. Consider approving a Purchase and Sale Agreement with Central California Conference Association of Seventh Day Adventist Church for $260,000; a Grant Deed, a Grant of Temporary Construction Easement and a Quit Claim Deed for Grantor’s interest in the Hetch Hetchy right of way for the Hetch Hetchy and Claratina Avenue Structural Crossing Project. (Funding Source: Streets Capital Facility Fees) Staff Recommendation:
 Resolution approving a Purchase and Sale Agreement, Grant Deed, and Certificate of Acceptance with the Central California Conference Association of Seventh Day Adventist Church, a California Nonprofit Religious Corporation, for partial acquisition of an 11,005 square foot portion of real property, all of the Grantor’s interests and rights in a 2,803 square foot portion of land in Hetch Hetchy right of way, 7,085 square feet for a Temporary Construction Easement (TCE), and Severance Damages (consisting of removal of a 1,370 square foot single family residence) located at 301 Claratina Avenue (APN 082-009-003), in the amount of $260,000 plus closing costs for the Hetch Hetchy and Claratina Avenue Structural Crossing Project, and authorizing the City Manager, or his designee, to execute the Purchase and Sale Agreement, accept the Grant Deed and sign the Certificate of Acceptance for the partial acquisition of real property, sign the Grant of Temporary Construction Easement (TCE) Agreement and the Certificate of Acceptance for the Temporary Construction Easement (TCE), Accept the Quit Claim Deed and sign the Certificate of Acceptance of the Quit Claim Deed, and sign all related - 7 -
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documents required to complete the sale and close escrow.

ENGINEERING SERVICES; Michael Sacuskie, 209-571-5552,
[email protected]
Consent

16. Consider approving the Plans and Specifications for the Park Turf Reduction, Phase 2 Project, and awarding a Construction Contract to Marina Landscape, Inc., of Orange, CA, in an amount not to exceed $1,029,236. (Funding Source: Urban Community Drought Relief Grant Program)
Staff Recommendation:
 Resolution approving the Plans and Specifications for the Park Turf Reduction, Phase 2 Project, and awarding a Construction Contract to Marina Landscape, Inc., of Orange, CA, in the amount of $935,669 plus $93,567 in contingency (if needed), for a total amount not to exceed $1,029,236 and authorizing the City Manager, or his designee, to execute the Contract.

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

17. Consider approving the First Amendment with Peregrine Technologies, San Francisco, CA, for Analytics and Data Integration platform increasing the Agreement amount by $60,000. (Funding Source: Traffic Safety Fund and State Supplemental Law Enforcement Services Fund)
Staff Recommendation:
 Resolution approving the First Amendment with Peregrine Technologies, San Francisco, CA, for Analytics and Data Integration platform increasing the Agreement amount by $60,000, to a new annual estimated amount of $204,500, and a new total amount of $613,500 through the term of the agreement; and authorizing the City Manager, or his designee to execute the Amendment.

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

18. Consider approving the submission of a grant application for the California Violence Intervention and Prevention (CalVIP) Grant Program to the Board of State and Community Corrections for up to $2 million in grant funds. (Funding Source: General Fund)
Staff Recommendation:
 Resolution approving the submission of a grant application for the California Violence Intervention and Prevention (CalVIP) Grant Program to the Board of State and Community Corrections for up to $2 million in grant funds and authorizing the City Manager, or his designee, as agent to execute and submit all documents which may be necessary for the completion of the grant application.

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

19. Consider approving the Grant Applications, Grant Awards and amending the annual - 8 -
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budgets for all the Beverage Container Recycling City/County Payment Programs to California Department of Resources, Recycling and Recovery. (Funding Source: Not Applicable)
Staff Recommendation:
 Resolution approving the submittal of Grant Applications, Grant Awards, and amending the annual budgets for all Beverage Container Recycling City/County Payment Programs to the California Department of Resources, Recycling and Recovery, and authorizing the City Manager, or his designee, to execute all related documents.

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

20. Consider approving submittal of Grant Applications, accepting Grant Awards, and amending the annual budgets for all Used Oil Payment Program Grants to California Department of Resources, Recycling and Recovery. (Funding Source: Not Applicable) Staff Recommendation:
 Resolution approving submittal of Grant Applications, and Grant Awards to the California Department of Resources, Recycling and Recovery (CalRecycle) for all Used Oil Payment Programs, accepting payment, amending the annual budget and authorizing the City Manager, or his designee, to execute all related documents.

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

21. Consider approving a list of projects to be funded with Road Repair and Accountability Act Tax proceeds for Fiscal Year 2025-2026. (Funding Source: Senate Bill 1 Funds) Staff Recommendation:
 Resolution approving the list of projects to be funded with Road Repair and Accountability Act Tax proceeds in Fiscal Year 2025-2026 in an amount up to $5,753,385, and authorizing the City Manager or his designee, to approve the projects.

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

22. Consider approving 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. (Funding Source: Compost Fund) Staff Recommendation:
 Resolution approving the extension of the Compost Facility Flexible Sales Pricing Pilot Program for a five-year extension effective August 1, 2025, through July 31, 2030.

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

23. Consider approving the First Amendment with HDR Engineering, Inc., of Folsom, CA - 9 -
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to complete assigned work and to gain Regulatory Compliance for the Carpenter Road Landfill, Modesto California, increasing the Agreement amount by $47,800 over the term of the Agreement. (Funding Source: Carpenter Road Landfill) Staff Recommendation:
 Resolution approving 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 authorizing the City Manager, or his designee to execute the Amendment.

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

24. Consider approving 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. (Funding Source: Compost Facility Improvement Fund)
Staff Recommendation:
 Resolution approving 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 authorizing the City Manager, or his designee to execute the Amendment.

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

25. Consider confirming the detachment of a non-contiguous City property deeded to Reclamation District 2091. (Funding Source: Sewer Operations Fund) Staff Recommendation:
 Resolution confirming detachment of non-contiguous City of Modesto properties deeded to Reclamation District 2091, reverting the property back to unincorporated status within the County of Stanislaus and authorizing the City Manager, or his designee, to execute any and all necessary documents required for City detachment.

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

26. Consider approving an Architectural Services Agreement with RED INC Architects, of Modesto, CA, for the Fire Station 1 Rehabilitation and Tenant Improvements Project in the amount of $429,490, plus $42,949 in additional services, if needed, for an Agreement total not to exceed $472,439. (Funding Source: America Rescue Plan Act Grants Fund)
Staff Recommendation:
 Resolution approving an Architectural Services Agreement with RED INC Architects, of Modesto, CA for the Fire Station 1 Rehabilitation and Tenant Improvements Project in the amount of $429,490, plus $42,949 in additional services, if needed, for an Agreement total not to exceed $472,439, and - 10 -
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authorizing the City Manager, or his designee, to execute the Agreement.

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

COUNCIL COMMENTS & REPORTS

CITY MANAGER COMMENTS & REPORTS

HEARINGS
Published in the Modesto Bee on June 13, 2025.

27. Hearing to consider approving Fiscal Year 2025-26 Diagram and Annual Assessment and ordering the Levy and Collection of Charges within Landscape Maintenance Assessment District No. 1 for Dry Creek Meadows Subdivisions Nos. 1-6. (Funding Source: Landscape Maintenance District No. 1)
Staff Recommendation:
 Resolution ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within the City of Modesto Landscape Maintenance Assessment District No. 1 for the Dry Creek Meadows Subdivisions Nos. 1-6 for Fiscal Year 2025-26.

CED; Edgar Garcia, 209-577-5211, [email protected] Published in the Modesto Bee on June 13, 2025.

28. Hearing to consider approving Fiscal Year 2025-26 Diagram and Annual Assessment and ordering the Levy and Collection of Charges within Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2. (Funding Source: Landscape Maintenance District No. 2)
Staff Recommendation:
 Resolution ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within the City of Modesto Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision, and Yosemite Meadows Subdivision Units 1 and 2 for Fiscal Year 2025-26.

CED; Edgar Garcia, 209-577-5211, [email protected] Published in the Modesto Bee on June 13, 2025.

29. Hearing to consider approving Fiscal Year 2025-26 Diagram and Annual Assessment and ordering the Levy and Collection of Charges within Shackelford Landscape and Lighting District. (Funding Source: Shackelford Landscape and Lighting District) Staff Recommendation:
 Resolution ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within the City of Modesto Shackelford Landscape and Lighting District for Fiscal Year 2025-26.

CED; Edgar Garcia, 209-577-5211, [email protected] - 11 -
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Published in the Modesto Bee on May 25, 2025.

30. Hearing to consider approving the 2025-2030 Consolidated Plan, accepting HUD program funds awarded through the Program Year 2025-2026 Annual Action Plan and approving the Citizens Participation Plan as required by the U.S. Department of Housing and Urban Development Department (HUD). (Funding Source: Community Development Block Grant, HOME Investment Partnerships, and Emergency Solutions Grant Funds.)
Staff Recommendation:
 Resolution approving the 2025-2030 Consolidated Plan, accepting HUD program funds awarded through the Program Year 2025-2026 Annual Action Plan as required by the U.S. Department of Housing and Urban Development Department (HUD) and authorizing the City Manager, or his designee, to negotiate and execute any related program agreements, contracts, or other documentation required for implementation of the 2025-2030 Consolidated Plan and Program Year 2025-2026 Annual Action Plan and authorization to submit applicable documentation and provide technical alterations, as required by HUD, incorporate comments received prior to the close of the public comment period, and to make the necessary steps to implement the provision of this Resolution.
 Resolution amending the Section 1 Policy – Citizen Participation Plan for HUD Programs of the Housing and Urban Development Policies and Procedures Manual as required by the U.S. Department of Housing and Urban Development Department (HUD).

CED; Edgar Garcia, 209-571-5101, [email protected] Published in the Modesto Bee on May 21, 2025. - Item continued from June 10, 2025 Council meeting.

31. Hearing to consider approving an Amendment to the Modesto Urban Area General Plan to change the land use of approximately 70 acres from Business Park (BP) to Residential (R); approving the Founders Point East Specific Plan, for the development of 220 acres located northeast of the Pelandale Avenue and Tully Road Intersection; approving the filing of an application to the Stanislaus County Local Agency Formation Commission for the Founders Point East Reorganization to the City of Modesto; approving an Ordinance amending Section 5-3-9 of the Zoning Map of the City of Modesto to prezone The Founders Point East Specific Plan to the Specific Plan (P-SP) Zone; and adopting a Mitigated Negative Declaration for these actions (Fitzpatrick Land Development, LLC). (Funding Source: Application Fees) Staff Recommendation:
 Resolution approving an amendment to the Land Use Element of the Modesto Urban Area General Plan to change the land use of approximately 70 acres from Business Park (BP) uses to Residential (R) uses (Fitzpatrick Land Development, LLC).
 Resolution approving the Founders Point East Specific Plan, for the development of approximately 220 acres located north of Pelandale Avenue, south of Kiernan Avenue, east of Tully Road and west of the former Tidewater Railroad/future Virginia Trail Corridor (Fitzpatrick Land Development, LLC). - 12 -
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 Resolution approving the filing of an application to the Stanislaus County Local Agency Formation Commission for the Reorganization of approximately 220 acres located north of Pelandale Avenue, south of Kiernan Avenue, east of Tully Road and west of the former Tidewater Railroad/future Virginia Trail Corridor, including rights of way on Pelandale Avenue, Kiernan Avenue and Tully Road for Annexation to the City of Modesto (Owner Initiated Uninhabited).
 Resolution adopting a Mitigated Negative Declaration for the General Plan Amendment, Founders Point Specific Plan, Prezone and application for the reorganization of Founders Point East Specific Plan to the City of Modesto.  Motion introducing and waiving the first reading of an Ordinance amending Section 5-3-9 of the Zoning Map of the City of Modesto to prezone to Specific Plan (P-SP) Zone for The Founders Point East Specific Plan, approximately 220 acres located north of Pelandale Avenue, south of Kiernan Avenue, east of Tully Road and west of the former Tidewater Railroad/Future Virginia Trail Corridor (Fitzpatrick Land Development, LLC).

CED; Katharine Martin, 209-577-5465, [email protected] Published in the Modesto Bee on June 4, 2025.

32. Hearing to consider approving a Precise Plan Amendment to Precise Plan No. 35 South to amend the Circulation Plan. (Funding Source: Developer Fees) Staff Recommendation:
 Motion introducing and waiving the first reading of an Ordinance amending Precise Plan No. 35 South of the Village One Specific Plan to modify the Circulation Plan and adopting the 15162 analysis and CEQA exemption.

CED; Michael Hren, 209-577-5273, [email protected]

NEW BUSINESS

33. Consider approving the Plans and Specifications for Dr. Martin Luther King, Jr. Park Renovation Project, accepting the Bid and Awarding a Construction Contract to Harris Builders, Inc. of Hilmar, CA., for a total payment amount not to exceed $11,875,792; consider approving an Agreement with TRC Engineering, Inc. of Lathrop, CA, for Construction Management and Inspection Services for a total amount not to exceed $1,042,319; and consider approving a First Amendment to the Agreement with Callander Associates Landscape Architecture, Inc. of Gold River, CA, increasing the Agreement amount by $20,000. (Funding Source: Various Funds) Staff Recommendation:
 Resolution approving the approval of the Plans and Specifications for the Dr.

Martin Luther King, Jr. Park Renovation Project, accepting the Bid and Awarding a Construction Contract to Harris Builders, Inc., of Hilmar, CA, in the amount of $10,996,103, authorizing $879,689, in contingency (if needed), for a total payment amount not to exceed $11,875,792 and authorizing the City Manager, or his designee, to execute the Agreement.
 Resolution approving the Agreement with TRC Engineering, Inc, of Lathrop, CA, for Construction Management and Inspection Services for the Dr. Martin - 13 -
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6/24/2025 5:30:00 PM
Luther King, Jr. Park Renovation Project in the amount of $947,563, plus $94,756 in additional services, if needed, for a total amount not to exceed $1,042,319 and authorizing the City Manager, or his designee, to execute the Agreement.
 Resolution approving a First Amendment to the Agreement with Callander Associates Landscape Architecture, Inc., of Gold River, CA, for additional Design Support during the Construction Phase of the Project for the Dr. Martin Luther King, Jr. Park Renovation Project, increasing the Agreement amount by $20,000, to a new total amount not to exceed $704,927, plus $68,492 in additional services, if needed, for a total amount not to exceed $773,419 and authorizing the City Manager, or his designee, to execute the Amendment.

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

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

ADJOURNMENT

CLOSED SESSION
Please take notice that a special Closed Session meeting of the Council of the City of Modesto has been called pursuant to Section 2-1.02 of the Modesto Municipal Code to be convened on
TUESDAY, JUNE 24, 2025 AT 3:30 P.M.
and after the regularly scheduled meeting in the Tenth Street Place, Chambers Conference Room, Basement Level, 1010 Tenth Street, Modesto, California.

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

The business to be considered at said City Council meeting shall consist of a Closed Session concerning the following:
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6/24/2025
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6/24/2025 5:30:00 PM
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(d)(1) of the Government Code) Name of Case: City of Modesto, et al. v. The Dow Chemical Company, et al. (PCE)
Superior Court of the State of California
Case No: CGC-98-999345 and CGC-98-999643

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(a) of the Government Code) Name of case(s): Matthew Ponce v. City of Modesto
California Workers Compensation Appeals Board
Nos. ADJ16177617
CONFERENCE WITH REAL PROPERTY NEGOTIATORS:
(Pursuant to Section 54956.8 of the Government Code)
Property: 601 Neece Dr., Modesto, CA 95351; APN: 102-012-001 and 102-012-004 Property Owners: City of Modesto
Negotiating Parties:

For City: Joseph P. Lopez, City Manager
For Lessee: Michael Shapiro, President – Pioneer Baseball League Under Negotiation: Price and Terms of Lease

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Pursuant to Section 54957 of the Government Code)
Title: City Manager
CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – Unrepresented Employee Negotiator: Mayor Sue Zwahlen
Unrepresented Employee: City Manager
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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6/24/2025

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

June 24, 2025
Date: June 2, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services/City Engineer SUBJECT: Accept Resignation of Diane Kroeze from Citizens’ Transportation Sales Tax Commission
CONTACT: Toby Wells, Director of Engineering Services/City Engineer [email protected], 209-571-5542
DESCRIPTION:

Consider accepting the resignation of Diane Kroeze from the Citizens’ Transportation Sales Tax Commission. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2025-2026 Strategic Plan Service and Delivery Goals and Strategies Goal I to promote trust and engagement between the community and the City by enhancing responsiveness, communicating broadly about City opportunities and challenges, and increasing public participation in municipal affairs.

BACKGROUND:

Section 1102 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions with the recommendation of the City’s Appointments Committee. The Measure L Citizens’ Transportation Sales Tax Commission was created on November 11, 2016 by Ordinance No. 3656-C.S. The purpose of the Measure L Citizens’ Transportation Sales Tax Commission is to provide oversight of the collection and spending of tax revenue generated by Measure L.

DISCUSSION:

On October 8, 2024, by Resolution No 2024-363, Diane Kroeze was appointed to the Citizens’ Transportation Sales Tax Commission with a term expiration date of June 30, 2028. On June 2, 2025 Diane Kroeze formally resigned from the Citizens’ Transportation Sales Tax Commission.

FISCAL IMPACT:

There is no fiscal impact associated with the action.
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Council Meeting, June 24, 2025
Accept Resignation of Diane Kroeze from Citizens’ Transportation Sales Tax Commission

COMMITTEE RECOMMENDATION:

This item was not presented to a committee due to it being a resignation.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the resignation of Diane Kroeze from the Citizens’ Transportation Sales Tax Commission.

Approved by:

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

1. Resolution
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06/24/2025/ESD/TWells 1 2025-

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-XX

RESOLUTION ACCEPTING THE RESIGNATION OF DIANE KROEZE
FROM THE CITIZENS’ TRANSPORTATION SALES TAX COMMISSION
WHEREAS, Section 1102 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions with the recommendation of the City’s Appointments Committee; and WHEREAS, the Measure L Citizens’ Transportation Sales Tax Commission was created on November 11, 2016 by Ordinance No. 3656-C.S. The purpose of the Measure L Citizens’ Transportation Sales Tax Commission is to provide oversight of the collection and spending of tax revenue generated by Measure L; and WHEREAS, on October 8, 2024, by Resolution No. 2024-363, Diane Kroeze was appointed to serve as a member of the Citizens’ Transportation Sales Tax Commission; and
WHEREAS, Diane Kroeze has tendered his resignation from the Citizens’ Transportation Sales Tax Commission effective June 2, 2025.

NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Modesto hereby accepts the resignation of Diane Kroeze from the Citizens’ Transportation Sales Tax Commission with regret.
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06/24/2025/ESD/TWells 2 2025-
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of June, 2025, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: _____________________________

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

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

June 24, 2025
Date: June 6, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Scotty Douglass, Deputy City Manager
SUBJECT: Stanislaus Animal Services Agency Advisory Committee, Appointment of Melinda Martin
CONTACT: Scotty Douglass, Deputy City Manager,
[email protected], 209-577-9149
DESCRIPTION:

Consider approving the appointment of Melinda Martin to fill one (1) City of Modesto representative vacancy to the Stanislaus Animal Services Agency Advisory Committee for a twoyear term beginning July 1, 2025 through June 30, 2027. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:

The recommended action supports the City of Modesto’s 2025-2026 Strategic Plan Initiative:

Improve community safety and quality of life through a combination of prevention and intervention efforts that address safety and its underlying issues.

BACKGROUND:

The authority for the formation and operation of an Advisory Committee is set forth in the Joint Powers Agreement Establishing the Stanislaus Animal Services Agency (“SASA”) dated October 27, 2009, paragraph 3.3 (j) and Government Code section 6500. The SASA Board approved formation of this Committee at its meeting on September 15, 2011. Furthermore, the bylaws were amended by the SASA Board on November 20, 2014.

The Committee is established to protect and enhance the quality of life for animals and residents of Stanislaus County. Responsibilities include educating the community on animal care, public relations, and serving as a resource. The purpose of the Stanislaus Animal Services Agency Advisory Committee members includes serving as an advisor to the SASA Board and Executive Director, promote a public awareness of the Stanislaus Animal Services Agency, develop methods to promote adoption of animals at the shelter, develop methods to decrease the number of animals entering the shelter, and continue efforts to increase and encourage volunteer participation at the shelter.

The composition of this Committee shall be comprised of seven (7) members: six (6) members shall be appointed one-each by the respective Stanislaus Animal Services Agency partners. The #3..
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City Council, June 24, 2025
Stanislaus Animal Services Agency Advisory Committee, Appointment of Melinda Martin

appointed member to the Committee, ultimately approved by the SASA Board, shall reside in that member’s jurisdiction. Furthermore, there shall be one (1) member appointed by the SASA Board who is a licensed veterinarian. The licensed veterinarian must reside and maintain a physical location for their practice within County of Stanislaus or any of its cities. The Committee will draw on consultation of California Licensed Veterinarians, kennel owner/operators, animal groups, and others, as needed. The consultants will provide their expertise in a non-voting capacity.

DISCUSSION:

Each SASA Board member shall recommend an individual for appointment to the Committee in accordance with its local rules, and then subject to the SASA Board’s approval. All Committee members shall serve a term of two (2) years and may be re-appointed for a second term with the approval of the SASA Board. After sitting out one term, a Committee member may re-apply for appointment. Members shall serve without compensation.

There is currently a single City of Modesto vacancy on the SASA Advisory Committee, and staff recommends appointment of a member to represent the City of Modesto for a period of two (2) years as outlined above. If approved, one (1) candidate would be appointed to serve a two (2) year term beginning July 1, 2025, and expiring on June 30, 2027.

Citizen applications for vacant committee positions were accepted online through the SASA website between February and May of 2025. Outreach for the SASA Advisory Committee City of Modesto Representative vacancy included posting the vacancy across the City’s social media platforms by the City’s Communication and Media Relations Team in partnership with SASA staff.

SASA received a total of six (6) applications, and of those that applied, the Appointments Committee selected Melinda Martin as the recommended candidate to represent the City on the SASA Advisory Committee.

The Appointments Committee recognized Melinda Martin for her experience working in city animal shelters and veterinary hospitals as an animal shelter Emergency Room (ER) technician, as the founder of a 501(c)3, one who has attended various Council meetings in the interest in changing laws, and her involvement with spay neuter initiatives. Additionally, Ms. Martin also has experience as an advisory member of a marine agency.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

COMMITTEE RECOMMENDATION:

This item was presented to the Appointments Committee on June 4, 2025, and the Committee recommended forwarding the item to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the appointment of Melinda Martin as the City of Modesto representative to the Stanislaus Animal Services Agency Advisory Committee for a two-year term beginning July 1, 2025, through June 30, 2027.
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City Council, June 24, 2025
Stanislaus Animal Services Agency Advisory Committee, Appointment of Melinda Martin

Approved by:

Scotty Douglass, Deputy City Manager
Joseph P. Lopez, City Manager
Attachments:

1. Reso – SASA Advisory Committee Appointment

2. Application(s)

3. Matrix

4. SASA Advisory Committee Bylaws
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1 2025-101

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-

RESOLUTION APPROVING THE APPOINTMENT OF MELINDA MARTIN AS

THE CITY OF MODESTO REPRESENTATIVE TO THE STANISLAUS

ANIMAL SERVICES AGENCY ADVISORY COMMITTEE FOR A TWO-YEAR TERM BEGINNING JULY 1, 2025, THROUGH JUNE 30, 2027
WHEREAS, the authority for the formation and operation of this Committee is set forth in the Joint Powers Agreement Establishing the Stanislaus Animal Services Agency (“SASA”) dated October 27, 2009, paragraph 3.3 (j) and Government Code section 6500; and
WHEREAS, the SASA Board approved formation of an Advisory Committee at its meeting on September 15, 2011 and the bylaws were subsequently amended by the SASA Board on November 20, 2014; and
WHEREAS, the Committee is established to protect and enhance the quality of life for animals and residents of Stanislaus County, and the Committee responsibilities include educating the community on animal care, public relations, and serving as a resource; and
WHEREAS, the purpose of the Stanislaus Animal Services Agency Advisory Committee members includes serving as an advisor to the SASA Board and Executive Director, promoting public awareness of the Stanislaus Animal Services Agency, developing methods to promote the adoption of animals at the shelter, developing methods to decrease the number of animals entering the shelter, and continuing efforts to increase and encourage volunteer participation at the shelter; and #3..
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2 2025-101
WHEREAS, the composition of this Committee shall be comprised of seven (7) members: six (6) members shall be appointed one-each by the respective Stanislaus Animal Services Agency partners; and
WHEREAS, there is currently a single City of Modesto vacancy on the SASA Advisory Committee, and staff recommends appointment of a member to represent the City of Modesto for a period of two (2) years; and
WHEREAS, the Appointments Committee recommended Melinda Martin as the candidate to represent the City on the SASA Advisory Committee; and WHEREAS, Ms. Martin is recognized for her experience working in city animal shelters and veterinary hospitals as an animal shelter Emergency Room (ER) technician, as the founder of a 501(c)3, one who has attended various Council meetings in the interest in changing laws, involvement with spay neuter initiatives, and experience as an advisory member of a marine agency; and
WHEREAS, Section 1102 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions; and WHEREAS, the appointment of this vacancy was presented to the Appointments Committee on June 4, 2025, and the Committee recommended forwarding the recommendation to Council for approval.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the appointment of Melinda Martin as the City of Modesto representative to the Stanislaus Animal Services Agency Advisory Committee for a twoyear term beginning July 1, 2025, through June 30, 2027. #3..
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3 2025-101
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of June, 2025, by ____________________, who moved its adoption, which motion being duly seconded by ______________, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: _____________________________

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

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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SASA Candidates Vickie Bailey Christy Betancourt Mathew Speckman Jan Viss Matthew Gonzalez Melinda Martin Employment First VP, Investments Client Account
Manager, Real Estate
Law Enforcement
Canine Handler and
Command Staff
Retired Local
Government Social
Services Director
Training Specialist
Retail Manager
Sales Manager
SPCA Customer
Service
City Animal Shelter
ER Tech 2 Veterinary
Hospitals
Community Experience Non Profit Financial
Board
Youth Org.

Hospice
Volunteer Animal
Rescue and Foster
Facilities, Rescued
several animals and
puts in personal
funds as a foster
Volunteer several
youth organizations
Evaluator on
German Shepherd
Rescue Groups.

Citizens Academy,
Leadership Graduate
Non Profit Funding
Social services
University
First experience
outside of “volunteer
days”
Founder 501(c)3
Friends of an Animal
Shelter
Attend Council
Meetings – Changing
Laws
Spay-Neuter Fund
Board Experience Community Hospice
Financial Board
None 2 terms Stanislaus
Civil Grand Jury
Non Profit Funding
Board
Served on several
social services
boards
University Board
None Advisory for Marine
Agency
Education HS Graduate
AS Business
HS Graduate
AA Business
Management
AA Admin of Justice
BS Business
Management
MBA – Business and
Organizational
Psychology
Westpoint
Leadership
FBI National
Academy
BA Sociology
MA Social Work
MA Organizational
Management
BA International
Relations
HS Proficiency Exam
Resident of Modesto? Yes Yes Yes Yes Yes Yes
Registered Voter?
Registered in Stanislaus
County?
Have you ever been a
City of Modesto
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employee?
Professional or Personal
Interest?
No No No No No No
Number of References 3 3 3 3 3 3
Served Prior Term(s)? No No Yes, one. It ended
June of 2024
No No No
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1 STANISLAUS ANIMAL SERVICES AGENCY

ADVISORY COMMMITTEE
BYLAWS
Adopted June 21, 2012
Amended November 20, 2014
ARTICLE 1-NAME
The name of this committee shall be the “Stanislaus Animal Services Agency Advisory Committee. Whenever the term “Committee” is used in these Bylaws, it shall mean Stanislaus Animal Services Agency Advisory Committee.

ARTICLE 2 - AUTHORITY
The authority for the formation and operation of this Committee is set forth in the Joint Powers Agreement Establishing the Stanislaus Animal Services Agency (“SASA”) dated October 27, 2009, paragraph 3.3 (j) and Government Code section 6500. The SASA Board approved formation of this Committee at its meeting on September 15, 2011.

ARTICLE 3-PURPOSE
The Committee is established to protect and enhance the quality of life for animals and residents of Stanislaus County. Responsibilities include educating the community on animal care; public relations; and serving as a resource. • Serve as an advisor to the SASA Board and Executive Director • Promote a public awareness of the Stanislaus Animal Services Agency • Develop methods to promote adoption of animals at the shelter. • Develop methods to decrease the number of animals entering the shelter. ▪ Continue efforts to increase and encourage volunteer participation at the shelter.

ARTICLE 4-MEMBERSHIP
Section 1. Composition. The composition of this Committee shall be comprised of seven (7) members: six (6) members-Each member of the Stanislaus Animal Services Agency Board shall appoint a member to the Committee who shall reside in that member’s jurisdiction; and one (1) member who shall be a licensed veterinarian appointed by the SASA Board. The licensed veterinarian must reside and maintain a physical location for their practice within County of Stanislaus or any of its cities.
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2 The Committee will draw on consultation of California Licensed Veterinarians, kennel owner/operators, animal groups, and others, as needed. The consultants will provide their expertise in a non-voting capacity.

Section 2. Subcommittees. There shall be standing, ad hoc sub-committees.

The Chairperson shall recommend members for appointment to these subcommittees, subject the approval of the Committee. No more than three (3) Committee members may serve on each subcommittee. Each subcommittee shall select a chairperson who may or may not be a member of the Committee.

Section 3. Other. The Chairperson shall be an ex-officio member of all committees. All plans and/or recommendations from a subcommittee shall be (a) presented by the sub-committee chairperson, or designee, to the Committee for action and (b) acted upon at the next regularly scheduled meeting of the Committee.

ARTICLE 5-MEETINGS
Section 1. Date and Location of Meetings. The regular meetings of this Committee shall be held on the first Thursday of January, February, April, May, July, August, October and November at 3647 Cornucopia Way, at 6:00pm.

All meetings of the Committee shall be conducted in accordance with the Ralph M. Brown Act. The Chair or a majority of the Committee members may call a special meeting to conduct business outside of the regularly scheduled meeting dates, as needed.

Section 2. Cancellation of Meetings. The Chair of the Committee may cancel a meeting with 72 hours notice. In the event of a meeting cancellation, the Secretary shall provide a notice stating the date, time, and place of the next meeting of the Committee.

Section 3. Public Comment. Every agenda for regular and special meetings shall provide an opportunity for members of the public to address the Committee on any item of interest concerning the Stanislaus Animal Services Agency.

Section 4. Agenda. At least five days before each regular meeting the Secretary shall post and send by email a copy of the agenda of the meeting to each Committee member and member of the public who has requested in writing to receive the agendas of Committee meetings. Committee members shall also receive the printed materials referenced in the agenda, provided they are a reasonable size. In addition, all printed materials referenced in the agenda of the Committee shall be available for public review at the offices of SASA. #3..
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3 ARTICLE 6 - PARLIAMENTARY PROCEDURE
Section 1. Parliamentary Authority. The rules of parliamentary practice set forth in Robert's Rules of Order shall govern all meetings of the Committee.

Section 2. Quorum. A quorum shall consist of a simple majority of the members of the Committee. In the absence of a quorum, the Committee may adjourn or may reschedule the meeting to a specific date and time.

Section 3. Voting. Each of the seven members shall be a voting member of the Committee. The affirmative vote of a majority of a quorum of the Committee shall constitute the vote required for action.

Section 4- Attendance at Meetings. Members are expected to attend all meetings of the Committee and those meetings of the sub-committees on which the member sits. A member who is unable to attend a meeting shall give advance notice of his/her inability to attend the meeting to the chairperson or secretary. A roll call shall be taken at the beginning of each meeting. A member who arrives late (after roll call) has the responsibility to notify the secretary taking minutes of his/her arrival before or by the end of the meeting.

ARTICLE 7-OFFICERS
Section 1-Terms of Chairperson and Vice Chairperson. The officers of the Committee shall be a Chairperson (“Chair”) and a Vice-Chairperson (“Vice Chair”). At the first regular meeting of the Committee in January of each calendar year, the members of the Committee shall elect officers from among them. The officers shall take office on the date of their election. Officers shall be elected to serve for one year (1) year or until their successor is elected.

Section 2- Chair Responsibilities. The Chair shall preside at all meetings of the Committee, shall preserve order and decorum, shall decide all questions of order raised by any member, and shall determine the agenda for each meeting in consultation with SASA Executive Director. The Chair shall have the right to participate in the proceedings of the Committee. The Chair shall represent the Committee before the SASA Agency Board. In the absence of the Chair, the Vice-Chair shall preside until such time as the Chair returns or until the next scheduled election. In the absence of both the Chair and the Vice-Chair, the members shall select by motion a member to preside over the meeting.

Section 3-Secretary.

The SASA Executive Director shall appoint a staff person to serve as Secretary.

The Secretary is not a member of the Committee and has no vote. The duties of the Secretary are to act as custodian of the records of the Committee, to make a complete record of the proceedings of the Committee, and to perform other functions directed by the Committee or by these Bylaws
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4 ARTICLE 8-ADVISORY COMMITTEE
Section 1-Term of Office. Each SASA Board member shall recommend an individual for appointment to the Committee in accordance with its local rules, and then subject to the SASA Board’s approval. All Committee members shall serve a term of two (2) years, and may be re-appointed for a second term with the approval of the SASA Board. After sitting out one term, a Committee member may re-apply for appointment. Members shall serve without compensation.

Section 2-Removal. Committee members may be removed for good cause by the SASA Board. Upon removal, the SASA Board shall appoint a suitable person, from the same jurisdiction as the removed member, to serve the remaining term of a Committee member. The person appointed to fill this unexpired term shall not be considered to have served a term.

Section 3-Vacancy. When a vacancy occurs for any reason the Committee Secretary shall notify SASA Board. The SASA Board shall appoint a suitable person from the same jurisdiction until the end of the unexpired term. The person appointed to complete the unexpired term shall not be considered to have served a term.

Section 4-Conflict of Interest. When a matter is discussed, considered or voted on by the Committee or a sub-committee that involves potential financial benefit, or other conflicting concern, to a Committee member, that member shall abstain from such discussion, consideration, and vote on that matter.

ARTICLE 9: ADOPTION AND AMENDMENT
Section 1-Adoption. These Bylaws shall become effective immediately upon approval by a majority of the membership of the Committee and approval by the Stanislaus Animal Service Agency Board.

Section 2-Amendment. These Bylaws may be amended by a majority vote of a quorum of the Committee provided that fifteen (15) days before the meeting, the full Committee is notified of the language of such change(s) and of the time, date and place of the intended vote on such change(s). The amendment will not be effective until approved by the Stanislaus Animal Services Agency Board. #3..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

June 24, 2025
Date: June 5, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Audit Committee – One Public Member Appointment CONTACT: DeAnna Christensen, Director of Finance, [email protected], 209-577-5387
DESCRIPTION:

Consider approving the appointment of Thomas Orosco for the City of Modesto Public Member of the Audit Committee for a partial unexpired term ending June 30, 2027. (Funding Source:

Not Applicable)
STRATEGIC PLAN ELEMENT:

This item supports each of the initiatives in the City’s 2025-2026 Strategic Plan.

BACKGROUND:

Established under Modesto Municipal Code 2-1.18, the Audit Committee is a City Standing Committee that consists of the Mayor and two (2) City Councilmembers that are appointed by the Mayor. The purpose of the Audit Committee is to advise the City Council on items related to the work of the City Auditor and the City’s financial statement audits. These duties include the following:
1) Review the Auditor’s audit plan annually and submit annually to the City Council; 2) Provide suggestions and comments for the annual audit plan; 3) Review and consult with the Auditor on quarterly reports or updates of the City Auditor’s activities and findings;
4) Report irregularities raised by the Auditor to the City Council; 5) Ensure that audit reports are transmitted to the legislative body and to the public; 6) Monitor follow-up on reported findings to assure corrective action is taken by management;
7) Report to the legislative body on problems or problem areas at such times as deemed appropriate;
8) Provide input on, and participate in, the selection of the firm conducting the annual financial statement audits; and
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City Council, June 24, 2025
Audit Committee – One Public Member Appointment

9) Review and forward to the City Council materials related to the City’s annual financial statement audit conducted pursuant to Section 1306 of this Charter.

DISCUSSION:

As part of the November 2022 voters’ ballot, the Modesto voters approved “Measure G” which included amendments to the City Charter. One such amendment included adding the Standing Audit Committee into the City Charter, Section IX, under Section 902.2 and capturing the duties outlined above. Under this Charter amendment, the Committee is now comprised of the Mayor, two (2) members of the City Council and two (2) additional members of the public for a total of five (5) Committee members.

The public members must meet the following criteria to qualify for this Committee position:
1) Must be a resident of City of Modesto
2) Must possess a minimum of two (2) years of experience in financial or performance auditing
3) Strong consideration shall be given to residents who are Certified Public Accountants (CPA)
4) No public member shall be a relative by blood or marriage for the third degree of the Mayor, member of the Council, any Charter Officer, or any department head or deputy department head
5) No public member shall be an employee of the City nor any bargaining unit for employee of the City, nor a person who receives compensation from the City or from bargaining units of the City in any manner, including retirement benefits 6) No public member shall be a lobbyists or other person with business before the City that represents an economic interest in excess of the limit for material financial effect established by local ordinance for the time periods established by local ordinance On January 17, 2025, the City formally received the resignation from one of the public members, Jennifer Barillas. On February 4, 2025, by Resolution 2025-050, Council accepted the resignation of Jennifer Barillas from the Audit Committee.

To fill this vacancy, City staff coordinated with the Communication team to conduct an outreach and solicitation of applications for the one (1) vacant Audit Committee public member position.

The outreach efforts included the following:
 City staff notified all Modesto businesses licensed with accounting and auditing services, tax preparation services and Certified Public Accountants (CPA).  City staff coordinated with the Modesto Chamber of Commerce to communicate to their board members.
 The Communication team posted through the City social media platforms through the City’s Facebook, LinkedIn, Twitter and Instagram accounts  An email communication was sent through our Communication team through our City newsletter
Through this outreach, the City received four (4) qualified applications for Appointment Committee consideration. At the June 4, 2025, Appointments Committee meeting, the Committee reviewed the four (4) applications received and selected Thomas Orosco for consideration and appointment to the Audit Committee by the City Council. #4..
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City Council, June 24, 2025
Audit Committee – One Public Member Appointment

FISCAL IMPACT:

There is no fiscal impact associated with this action.

COMMITTEE RECOMMENDATION:

On Wednesday, June 4, 2025, the Appointments Committee reviewed the applications and endorsed the appointment of Thomas Orosco to fill the single City of Modesto Public Member vacancy of the Audit Committee, and the Committee recommended forwarding the item to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the appointment of Thomas Orosco for the City of Modesto Public Member of the Audit Committee for a partial unexpired term ending June 30, 2027.

Approved by:

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

1. Resolution

2. Application Matrix

3. Applications
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06/24/2025/FIN/DChristensen/Item X 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-?

RESOLUTION APPROVING THE APPOINTMENT OF THOMAS OROSCO

FOR THE CITY OF MODESTO PUBLIC MEMBER OF THE AUDIT
COMMITTEE FOR A PARTIAL UNEXPIRED TERM ENDING JUNE 30, 2027 WHEREAS, as part of the November 2022 voters’ ballot, the Modesto voters approved “Measure G” which included amendments to the City Charter; and WHEREAS, one of the amendments included adding the Standing Audit Committee into the City Charter Section IX under Section 902.2 and under this Charter amendment the Committee is now comprised of the Mayor, two (2) members of the City Council and the addition of two (2) members of the public to the Committee for a total of five Committee members; and
WHEREAS, on January 17, 2025, the City formally received the resignation from one of the public members, Jennifer Barillas and on February 4, 2025, under Resolution 2025-050, Council accepted the resignation for Jennifer Barillas from the Audit Committee leaving a vacant Public Member for the Audit Committee; and WHEREAS, the Appointments Committee reviewed the four applications received for this Committee and selected Thomas Orosco at the June 4, 2025 Committee meeting to move forward as the recommendation.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby appoints Thomas Orosco for the City of Modesto Public Member of the Audit Committee for a partial unexpired term ending June 30, 2027.

BE IT FURTHER RESOLVED, the City Clerk is hereby directed to transmit a copy of this Resolution to the appointed member of the Audit Committee and thereof. #4..
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06/24/2025/FIN/DChristensen/Item X 2 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of June, 2025, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?

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

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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Candidate Kimi Bryan Joseph Jackson Nathan Amarante Thomas Orosco Apply To Audit Committee Audit Committee Audit Committee Audit Committee Are you now or have
you ever been a
lobbyist
No No No No
Have you done
business with the City
that represents an
economic interest?
No No No No
Add inclusive date
range:

N/A N/A N/A N/A
Are you an active
Certified Public
Accountant (CPA)?
No No Yes Yes
Do you have two (2)
or more years’
experience in
financial or
performance
auditing?
Yes Yes Yes Yes
Are you a Modesto
resident? Yes Yes Yes Yes
If yes, what was the
date of residency? 4/17/1987 10/15/2024 2/1/2023 7/22/1992 Are you now or have
you ever been
employed by the City
of Modesto?
No No No No
If yes, in what
capacity? N/A N/A N/A N/A
Inclusive dates: N/A N/A N/A N/A
Are you a relative by
blood or marriage to
the third degree of
the mayor, member
of the Council, any
Charter Officer, or
any department head
or deputy department
head?
No No No No

#4..
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List relevant
employment,
training, and
experience,
certificates of
training, licenses, and
professional
registration.

A Licensed Tax Prepaer, Owner Of An
Accounting Firm,
Irs/Ftb/Edd Audit Specialist
I currently serve as the Director of Rental Operations
at Bobcat Central, Inc., where I have developed and
honed my expertise in financial management. In my
role, I oversee a complex profit and loss statement
with revenues exceeding $8 million. This position
requires a keen understanding of financial principles
as well as strategic planning to ensure the company's
rental operations are not only profitable but also
aligned with our broader business
objectives.Throughout my career, I have held
multiple financial management roles, where I gained
valuable experience in budgeting, forecasting, and
financial analysis. These positions have equipped me
with the skills necessary to navigate complex
financial scenarios and make informed decisions that
drive business success. My background enables me
to maintain a comprehensive overview of our
operations while ensuring fiscal responsibility and
profitability in every aspect of our rental services.

Stanislaus County Property Tax
ManagerCPA - current/active (take
CPE courses)17+ years of
governmental experience (including
some audit experience earlier in my
career)GFOA Member
I am a licensed CPA with over 8 years of
public accounting experience and
currently hold the position of an audit
manager at my firm. I have conducted
reviews, integrated audits, financial
statement audits, employee benefit plan
audits, and SOX consulting on various
SEC and privately held entities.During
my time in public accounting, I have had
extensive experience with reviewing
financial statements, attending audit
committee meetings, as well as
presentations to audit committees and
senior members of management.

Describe your
involvement in
community activities
and civic
organizations. (Do not
list partisan political
parties.)
I Would Like To Be More Involved In The
Community. I Have A Lot
Of Connections With People Due To Owning
Our Own
Accounting Firm And Have Resources To Pull
Activities
Together. We Do Host An Annual Fund Raiser
To Raise Money
For A Nonprofit To Give A Student A Small
Scholarship.

I am actively involved in various community
organizations, including serving on the board of
directors for the California Black Cowboy
Association. This role allows me to contribute to
preserving and promoting the rich history of African
American cowboys and their impact on culture and
society. Additionally, I serve as a commissioner on
the Stanislaus County Parks and Recreation
Commission, where I work to enhance community
access to recreation areas and improve the quality of
local parks. Through these roles, I strive to engage
with the community and make a positive impact in
areas that are important to me.

Gustine Historical Society Treasurer
I have been a past member of a local
rotary club and have participated in
various community events such as a
river clean up by operation 9-2-99,
community Christmas tree, and the
Making Strides event hosted by Sutter.

What is it about this
position that interests
you?
The Audit And Review Process.

I am deeply interested in this role because I am
eager to help move the city forward. I have a strong
interest in performance auditing and believe in the
importance of effective oversight of government
operations. This opportunity allows me to contribute
to enhancing our community's recreational facilities
and services while ensuring that resources are
utilized efficiently and effectively. I am passionate
about making a meaningful difference and am
committed to working collaboratively with my fellow
commissioners to achieve our goals.

The ability to utilize my
skills/knowledge to add value to the
Committee (unique vantage point
working in the Stanislaus County
Auditor Controller Department in
various capacities)
As a lifelong resident of Modesto, I am
excited about the opportunity to bring
value to my community by utilizing my
professional experience.

#4..
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What qualities,
experience, and
expertise would you
bring to it?
I Am The Audit Specialist For Our Firm, I
Enjoy Forensic
Accounting, Also I Am A Good Determining
What Expenses Are
Ordinary And Necessary. I Have 20 Years Of
Tax And Accounting
Experience.

My professional experience in overseeing large
corporations and my background in financial
management would bring a fresh perspective to the
Commission. With a strong foundation in financial
oversight, I can contribute valuable insights into
budgeting and resource allocation, helping the group
make informed decisions that drive progress. My
goal is to leverage this expertise to help advance our
initiatives and ensure that we are effectively meeting
the needs of our community while maximizing our
impact.

Honest/hard working, governmental
accounting/finance/treasury/performa
nce auditing experience. A CPA in
good standing - we have a duty to the
taxpayers to be transparent and
accommodating in terms of the audits
conducted and how we present
financial information.

Given my time in public practice, I will
bring practical and relevant experience
to the committee as well as a
commitment to provide the best
possible advice to the city council.

#4..
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Boards, Commissions and Committees Application
02/06/2025 4:14 PM (PST)
Advisory Boards and Commissions Application
City of Modesto

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.

Audit Committee
The purpose of the Audit Committee is to advise the City Council on items related to the work of the City Auditor and the City's financial statement audits. Among other duties, the Audit Committee shall: Review the Auditor's audit plan annually and submit annually to the City Council; Provide suggestions and comments for the annual audit plan; Review and consult with the Auditor on quarterly reports or updates of the City Auditor's activities and findings; Report irregularities raised by the Auditor to the City Council; Ensure that audit reports are transmitted to the legislative body and to the public; Monitor follow-up on reported findings to assure corrective action is taken by management; Report to the legislative body on problems or problem areas at such times as deemed appropriate; Provide input on, and participate in, the selection of the firm conducting the annual financial statement audits; and Review and forward to the City Council materials related to the City's annual financial statement audit conducted pursuant to Section 1306 of the Charter.

Membership Requirements: Pursuant to Section 902.2 of the Modesto Charter, the Audit shall be comprised of: (1) The Mayor; (2 )Two (2) members of the City Council, who shall be appointed by the Mayor with the advice and consent of the City Council; and (3) Two (2) members of the public who are residents of the City of Modesto and shall possess a minimum of two (2) years of experience in financial or performance auditing. Strong consideration shall be given to residents who are Certified Public Accountants. Such members shall be appointed by the City Council, and may be removed by the City Council.

Read full ByLaws and view current members and vacancies.

PUBLIC MEMBER
No
No

No
Submission ID: 79c322b4-9b38-42fd-8a88-2e3d87e94e21 Page 1/7 #4..
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Applicant Information & Background
KIMI
BRYAN
Document Uploads
You may upload a cover letter and resume to outline your educational, work and community service experiences.

Submission ID: 79c322b4-9b38-42fd-8a88-2e3d87e94e21 Page 2/7 #4..
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#4..
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Qualifications

No
I understand that I must be a Modesto resident in order to apply for this committee or commission.

Yes
04/17/1987
I understand that I cannot be employed by the City of Modesto or Stanislaus County and serve on this commission or committee.

No

No

A LICENSED TAX PREPAER, OWNER OF AN ACCOUNTING FIRM,

IRS/FTB/EDD AUDIT SPECIALIST

I WOULD LIKE TO BE MORE INVOLVED IN THE COMMUNITY. I HAVE A LOT

OF CONNECTIONS WITH PEOPLE DUE TO OWNING OUR OWN

ACCOUNTING FIRM AND HAVE RESOURCES TO PULL ACTIVITIES
TOGETHER. WE DO HOST AN ANNUAL FUND RAISER TO RAISE MONEY FOR A NONPROFIT TO GIVE A STUDENT A SMALL SCHOLARSHIP.

THE AUDIT AND REVIEW PROCESS.

I AM THE AUDIT SPECIALIST FOR OUR FIRM, I ENJOY FORENSIC

ACCOUNTING, ALSO I AM A GOOD DETERMINING WHAT EXPENSES ARE ORDINARY AND NECESSARY. I HAVE 20 YEARS OF TAX AND ACCOUNTING EXPERIENCE.

No
I understand that I am unable to apply for this committee if I am or have been a lobbyist.

No
Submission ID: 79c322b4-9b38-42fd-8a88-2e3d87e94e21 Page 4/7 #4..
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I understand that I must not have economic financial interest with the City of Modesto to apply for this committee.

No
No

I understand that I must have at least 2 years in financial or performance auditing to apply for this committee.

Yes
I understand that I am unable to apply for this committee if I am a relative by blood or marriage to the third degree of the mayor, member of the Council, any Charter Officer, or any department head.

Submission ID: 79c322b4-9b38-42fd-8a88-2e3d87e94e21 Page 5/7 #4..
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Questionnaire

Other (Please specify)

AN EMAIL WAS SENT TO ME
Submission ID: 79c322b4-9b38-42fd-8a88-2e3d87e94e21 Page 6/7 #4..
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Signature Agreement
02/06/2025
Application Disclosure
Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.

Yes, I confirm and acknowledge the above responsibilities and understand that my application is a public document and may be disclosed upon request.

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

You will be updated by our staff as your submission is processed.

Have a great day!
Submission ID: 79c322b4-9b38-42fd-8a88-2e3d87e94e21 Page 7/7 #4..
- 67 -
Boards, Commissions and Committees Application
02/24/2025 3:20 PM (PST)
Advisory Boards and Commissions Application
City of Modesto

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.

Audit Committee
The purpose of the Audit Committee is to advise the City Council on items related to the work of the City Auditor and the City's financial statement audits. Among other duties, the Audit Committee shall: Review the Auditor's audit plan annually and submit annually to the City Council; Provide suggestions and comments for the annual audit plan; Review and consult with the Auditor on quarterly reports or updates of the City Auditor's activities and findings; Report irregularities raised by the Auditor to the City Council; Ensure that audit reports are transmitted to the legislative body and to the public; Monitor follow-up on reported findings to assure corrective action is taken by management; Report to the legislative body on problems or problem areas at such times as deemed appropriate; Provide input on, and participate in, the selection of the firm conducting the annual financial statement audits; and Review and forward to the City Council materials related to the City's annual financial statement audit conducted pursuant to Section 1306 of the Charter.

Membership Requirements: Pursuant to Section 902.2 of the Modesto Charter, the Audit shall be comprised of: (1) The Mayor; (2 )Two (2) members of the City Council, who shall be appointed by the Mayor with the advice and consent of the City Council; and (3) Two (2) members of the public who are residents of the City of Modesto and shall possess a minimum of two (2) years of experience in financial or performance auditing. Strong consideration shall be given to residents who are Certified Public Accountants. Such members shall be appointed by the City Council, and may be removed by the City Council.

Read full ByLaws and view current members and vacancies.

Public Member
No
No

No
Submission ID: bf5cf4fb-8ff3-43af-84d0-082845f80988 Page 1/7 #4..
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Applicant Information & Background
Joseph
Jackson
Document Uploads
You may upload a cover letter and resume to outline your educational, work and community service experiences.

Submission ID: bf5cf4fb-8ff3-43af-84d0-082845f80988 Page 2/7 #4..
- 69 -
#4..
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Qualifications

No
I understand that I must be a Modesto resident in order to apply for this committee or commission.

Yes
10/15/2024
I understand that I cannot be employed by the City of Modesto and serve on this commission or committee.

No

No

I currently serve as the Director of Rental Operations at Bobcat Central, Inc., where I have developed and honed my expertise in financial management. In my role, I oversee a complex profit and loss statement with revenues exceeding $8 million. This position requires a keen understanding of financial principles as well as strategic planning to ensure the company's rental operations are not only profitable but also aligned with our broader business objectives.

Throughout my career, I have held multiple financial management roles, where I gained valuable experience in budgeting, forecasting, and financial analysis.

These positions have equipped me with the skills necessary to navigate complex financial scenarios and make informed decisions that drive business success. My background enables me to maintain a comprehensive overview of our operations while ensuring fiscal responsibility and profitability in every aspect of our rental services.

I am actively involved in various community organizations, including serving on the board of directors for the California Black Cowboy Association. This role allows me to contribute to preserving and promoting the rich history of African American cowboys and their impact on culture and society. Additionally, I serve as a commissioner on the Stanislaus County Parks and Recreation Commission, where I work to enhance community access to recreation areas and improve the quality of local parks. Through these roles, I strive to engage with the community and make a positive impact in areas that are important to me.

I am deeply interested in this role because I am eager to help move the city forward. I have a strong interest in performance auditing and believe in the importance of effective oversight of government operations. This opportunity allows me to contribute to enhancing our community's recreational facilities and services while ensuring that resources are utilized efficiently and effectively. I am Submission ID: bf5cf4fb-8ff3-43af-84d0-082845f80988 Page 4/7 #4..
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passionate about making a meaningful difference and am committed to working collaboratively with my fellow commissioners to achieve our goals.

My professional experience in overseeing large corporations and my background in financial management would bring a fresh perspective to the Commission. With a strong foundation in financial oversight, I can contribute valuable insights into budgeting and resource allocation, helping the group make informed decisions that drive progress. My goal is to leverage this expertise to help advance our initiatives and ensure that we are effectively meeting the needs of our community while maximizing our impact.

No
I understand that I am unable to apply for this committee if I am or have been a lobbyist.

No
I understand that I must not have economic financial interest with the City of Modesto to apply for this committee.

No
No

I understand that I must have at least 2 years in financial or performance auditing to apply for this committee.

Yes
I understand that I am unable to apply for this committee if I am a relative by blood or marriage to the third degree of the mayor, member of the Council, any Charter Officer, or any department head.

Submission ID: bf5cf4fb-8ff3-43af-84d0-082845f80988 Page 5/7 #4..
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Questionnaire

Other (Please specify)
City website
Submission ID: bf5cf4fb-8ff3-43af-84d0-082845f80988 Page 6/7 #4..
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Signature Agreement
02/24/2025
Application Disclosure
Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.

Yes, I confirm and acknowledge the above responsibilities and understand that my application is a public document and may be disclosed upon request.

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

You will be updated by our staff as your submission is processed.

Have a great day!
Submission ID: bf5cf4fb-8ff3-43af-84d0-082845f80988 Page 7/7 #4..
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Boards, Commissions and Committees Application
02/25/2025 10:37 PM (PST)
Advisory Boards and Commissions Application
City of Modesto

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.

Audit Committee
The purpose of the Audit Committee is to advise the City Council on items related to the work of the City Auditor and the City's financial statement audits. Among other duties, the Audit Committee shall: Review the Auditor's audit plan annually and submit annually to the City Council; Provide suggestions and comments for the annual audit plan; Review and consult with the Auditor on quarterly reports or updates of the City Auditor's activities and findings; Report irregularities raised by the Auditor to the City Council; Ensure that audit reports are transmitted to the legislative body and to the public; Monitor follow-up on reported findings to assure corrective action is taken by management; Report to the legislative body on problems or problem areas at such times as deemed appropriate; Provide input on, and participate in, the selection of the firm conducting the annual financial statement audits; and Review and forward to the City Council materials related to the City's annual financial statement audit conducted pursuant to Section 1306 of the Charter.

Membership Requirements: Pursuant to Section 902.2 of the Modesto Charter, the Audit shall be comprised of: (1) The Mayor; (2 )Two (2) members of the City Council, who shall be appointed by the Mayor with the advice and consent of the City Council; and (3) Two (2) members of the public who are residents of the City of Modesto and shall possess a minimum of two (2) years of experience in financial or performance auditing. Strong consideration shall be given to residents who are Certified Public Accountants. Such members shall be appointed by the City Council, and may be removed by the City Council.

Read full ByLaws and view current members and vacancies.

Audit Committee Public Member
No
No

No
Submission ID: 60496331-c91c-4804-bf96-b914647a7b0a Page 1/7 #4..
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#4..
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#4..
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Qualifications

Yes

Property Taxes - Government Focus/Specialized
I understand that I must be a Modesto resident in order to apply for this committee or commission.

Yes
02/01/2023
I understand that I cannot be employed by the City of Modesto and serve on this commission or committee.

No

No

Stanislaus County Property Tax Manager
CPA - current/active (take CPE courses)
17+ years of governmental experience (including some audit experience earlier in my career)
GFOA Member

Gustine Historical Society Treasurer
The ability to utilize my skills/knowledge to add value to the Committee (unique vantage point working in the Stanislaus County Auditor Controller Department in various capacities)

Honest/hard working, governmental accounting/finance/treasury/performance auditing experience. A CPA in good standing - we have a duty to the taxpayers to be transparent and accommodating in terms of the audits conducted and how we present financial information.

No
I understand that I am unable to apply for this committee if I am or have been a Submission ID: 60496331-c91c-4804-bf96-b914647a7b0a Page 4/7 #4..
- 78 -
lobbyist.

No
I understand that I must not have economic financial interest with the City of Modesto to apply for this committee.

No
Yes

I understand that I must have at least 2 years in financial or performance auditing to apply for this committee.

Yes
I understand that I am unable to apply for this committee if I am a relative by blood or marriage to the third degree of the mayor, member of the Council, any Charter Officer, or any department head.

Submission ID: 60496331-c91c-4804-bf96-b914647a7b0a Page 5/7 #4..
- 79 -
Questionnaire

Other (Please specify)
Linked-in, Friend
Submission ID: 60496331-c91c-4804-bf96-b914647a7b0a Page 6/7 #4..
- 80 -
Signature Agreement
02/25/2025
Application Disclosure
Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.

Yes, I confirm and acknowledge the above responsibilities and understand that my application is a public document and may be disclosed upon request.

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

You will be updated by our staff as your submission is processed.

Have a great day!
Submission ID: 60496331-c91c-4804-bf96-b914647a7b0a Page 7/7 #4..
- 81 -
Boards, Commissions and Committees Application
05/01/2025 10:34 AM (PDT)
Advisory Boards and Commissions Application
City of Modesto

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.

Audit Committee
The purpose of the Audit Committee is to advise the City Council on items related to the work of the City Auditor and the City's financial statement audits. Among other duties, the Audit Committee shall: Review the Auditor's audit plan annually and submit annually to the City Council; Provide suggestions and comments for the annual audit plan; Review and consult with the Auditor on quarterly reports or updates of the City Auditor's activities and findings; Report irregularities raised by the Auditor to the City Council; Ensure that audit reports are transmitted to the legislative body and to the public; Monitor follow-up on reported findings to assure corrective action is taken by management; Report to the legislative body on problems or problem areas at such times as deemed appropriate; Provide input on, and participate in, the selection of the firm conducting the annual financial statement audits; and Review and forward to the City Council materials related to the City's annual financial statement audit conducted pursuant to Section 1306 of the Charter.

Membership Requirements: Pursuant to Section 902.2 of the Modesto Charter, the Audit shall be comprised of: (1) The Mayor; (2 )Two (2) members of the City Council, who shall be appointed by the Mayor with the advice and consent of the City Council; and (3) Two (2) members of the public who are residents of the City of Modesto and shall possess a minimum of two (2) years of experience in financial or performance auditing. Strong consideration shall be given to residents who are Certified Public Accountants. Such members shall be appointed by the City Council, and may be removed by the City Council.

Read full ByLaws and view current members and vacancies.

Public Member
No
No

No
Submission ID: 741a65d0-9bae-4bd7-a637-ab827f2ce38d Page 1/7 #4..
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#4..
- 83 -
#4..
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Qualifications

Yes

CPA
I understand that I must be a Modesto resident in order to apply for this committee or commission.

Yes
07/22/1992
I understand that I cannot be employed by the City of Modesto and serve on this commission or committee.

No

No

I am a licensed CPA with over 8 years of public accounting experience and currently hold the position of an audit manager at my firm. I have conducted reviews, integrated audits, financial statement audits, employee benefit plan audits, and SOX consulting on various SEC and privately held entities.

During my time in public accounting, I have had extensive experience with reviewing financial statements, attending audit committee meetings, as well as presentations to audit committees and senior members of management.

Modesto website.

I have been a past member of a local rotary club and have participated in various community events such as a river clean up by operation 9-2-99, community Christmas tree, and the Making Strides event hosted by Sutter.

As a lifelong resident of Modesto, I am excited about the opportunity to bring value to my community by utilizing my professional experience.

Given my time in public practice, I will bring practical and relevant experience to the committee as well as a commitment to provide the best possible advice to the city council.

Submission ID: 741a65d0-9bae-4bd7-a637-ab827f2ce38d Page 4/7 #4..
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No
I understand that I am unable to apply for this committee if I am or have been a lobbyist.

No
I understand that I must not have economic financial interest with the City of Modesto to apply for this committee.

No
Yes

I understand that I must have at least 2 years in financial or performance auditing to apply for this committee.

Yes
I understand that I am unable to apply for this committee if I am a relative by blood or marriage to the third degree of the mayor, member of the Council, any Charter Officer, or any department head.

Submission ID: 741a65d0-9bae-4bd7-a637-ab827f2ce38d Page 5/7 #4..
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Questionnaire

Other (Please specify)
Modesto website.

Submission ID: 741a65d0-9bae-4bd7-a637-ab827f2ce38d Page 6/7 #4..
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Signature Agreement
05/01/2025
Application Disclosure
Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.

Yes, I confirm and acknowledge the above responsibilities and understand that my application is a public document and may be disclosed upon request.

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

You will be updated by our staff as your submission is processed.

Have a great day!
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*Via Teleconference
Councilmember Escutia-Braaton
Renaissance Seattle Hotel
515 Madison Street
Seattle, WA. 98104

MODESTO CITY COUNCIL
www.modestogov.com

MINUTES
City of Modesto

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, June 10, 2025 at 5:30 PM
Roll Call - Present: Councilmembers Alvarez, Bavaro, *Escutia-Braaton, Ricci, Williams, Wright

Absent: Mayor Zwahlen
Pledge of Allegiance to the Flag
Invocation: Darrell Cummings, Christ Community Church
City Clerk’s Announcements: Item 23 regarding the rezoning of 1600 & 1604 Kansas Ave. was removed from the agenda and will return at a future date.

Declaration of Conflicts of Interest: None

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Proclamation declaring June 19th as Juneteenth. (Funding Source: Not Applicable) CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] ACTION: Vice-Mayor Bavaro presented proclamation declaring June 19th as Juneteenth. #5..
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PUBLIC COMMENT IN PERSON
 Betty Santos, a representative of the Central Valley Chapter of West Coast Customs shared her positive experience at the recent American Graffiti event. She assisted Councilmember Jeremiah Williams with car parking and reported strong collaboration and communication among volunteers, including groups like Motown Classics. She noted that over a thousand cars were parked within about 75 minutes. Santos praised the event’s family-friendly atmosphere and the involvement of community groups.

However, she expressed a safety concern regarding some younger drivers exiting the MJC area at high speeds while families were still crossing the street. She asked Councilmember Williams to relay this concern to the Kiwanis to help ensure future events remain safe for all attendees.
 Byron Frith expressed gratitude for the opportunity to speak and shared concerns about his housing situation at Ralston Towers. He believed his unit would be covered by Section 8 upon moving in but recently learned that may not be the case. He is unsure how much longer he can afford to stay and wanted to make his situation known.  Danielle Morgart, representing Assemblyman Juan Alanis, invited the Council and community to a blood drive on June 20th in Modesto, co-hosted with the Red Cross.

She also provided a legislative update, noting that 482 Assembly Bills, including seven by Alanis, have advanced to the Senate. She encouraged anyone with questions to contact their office.
 Lucas expressed appreciation for the Modesto Police Department’s efforts and their investment in new crime-fighting technology, such as Zero Eyes, which he supports for future use. He acknowledged a general decline in crime, with some concerns about violent crime, and recognized the recent loss of an officer in Los Angeles, offering condolences to the officer’s family.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS: 2-10, 12-20 (Wright/Alvarez; 6/0)

CONSENT
Consent

2. Consider approving the minutes for the June 3, 2025 Council Meeting. (Funding Source: Not Applicable)
 Motion approving the minutes for the June 3, 2025 Council Meeting.

CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Alvarez; 6/0) Motion approving the minutes for the June 3, 2025 Council Meeting.
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Consent

3. Consider accepting the update on the 2020-2025 Blight Abatement Strategy and adopting the 2025-2027 Blight Abatement Strategy. (Funding Source: Not Applicable)  Resolution approving the 2025-2027 Blight Abatement Strategy for adoption.

CITY MANAGER; Allison Van Guilder, 209-571-5571, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-190 approving the 2025-2027 Blight Abatement Strategy for adoption.

Consent

4. Consider approving an Agreement with Downtown Streets Team (DST) for an annual amount of $500,000 and a total amount not to exceed $1,000,000 for job training and rapid rehousing services for a two year term. (Funding Source: Litter Abatement Fund, State Funds)
 Resolution approving an Agreement with Downtown Streets Inc. (DST) for job training and rapid re-housing services for an annual amount of $500,000 and a total amount not to exceed $1,000,000 for a two year term, and authorizing the City Manager, or his designee, to execute the Agreement.  Resolution amending the fiscal year 2024-25 annual operating fund budgets and creating a multi-year project in the amount of $1,100,000 to appropriate the funds for the agreement with Downtown Streets Inc. for job training and rapidrehousing services and city activity delivery in the amount of $100,000 for a total amount not to exceed $1,100,000 and authorizing the City Manager, or his designee, to take the necessary steps to implement the provisions of this Resolution.

CED; Edgar Garcia, 209-571-5101, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-191 approving an Agreement with Downtown Streets Inc. (DST) for job training and rapid re-housing services for an annual amount of $500,000 and a total amount not to exceed $1,000,000 for a two-year term, and authorizing the City Manager, or his designee, to execute the Agreement.

ACTION: (Wright/Alvarez; 6/0) Resolution 2025-192 amending the fiscal year 2024-25 annual operating fund budgets and creating a multi-year project in the amount of $1,100,000 to appropriate the funds for the agreement with Downtown Streets Inc. for job training and rapid-rehousing services and city activity delivery in the amount of $100,000 for a total amount not to exceed $1,100,000 and authorizing the City Manager, or his designee, to take the necessary steps to implement the provisions of this Resolution.

Consent

5. Consider approving an Agreement with the State of California Department of Housing and Community Development for the acceptance of Encampment Resolution Funding Program in the amount of $5,757,847 and approving sub-awards to Modesto Gospel Mission for $1,491,967 and Salvation Army for $669,167. (Funding Source:

Encampment Resolution Funding)
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 Resolution approving an Agreement with the State of California Department of Housing and Community Development for the acceptance of Encampment Resolution Funding Program in the amount of $5,757,847, and authorizing the City Manager to execute Agreements and submit applicable documents as required by the State, and authorizing the City Manager to negotiate and execute Agreements for the allocation of sub-awards to Modesto Gospel Mission for $1,491,967 and Salvation Army for $699,167 to carry out the provisions of this Resolution.
 Resolution amending the Fiscal Year 2024-25 Annual Operating and NonCapital Project fund budgets to establish the revenue, expenditures, and transfers for Project #101663 in the amount of $5,757,847 to appropriate funds for the Encampment Resolution Funding Program and authorizing the City Manager, to take the necessary steps to implement the provisions of this Resolution.

CED; Edgar Garcia, 209-577-5211, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-193 approving an Agreement with the State of California Department of Housing and Community Development for the acceptance of Encampment Resolution Funding Program in the amount of $5,757,847, and authorizing the City Manager to execute Agreements and submit applicable documents as required by the State, and authorizing the City Manager to negotiate and execute Agreements for the allocation of sub-awards to Modesto Gospel Mission for $1,491,967 and Salvation Army for $699,167 to carry out the provisions of this Resolution.

ACTION: (Wright/Alvarez; 6/0) Resolution 2025-194 amending the Fiscal Year 2024-25 Annual Operating and Non-Capital Project fund budgets to establish the revenue, expenditures, and transfers for Project #101663 in the amount of $5,757,847 to appropriate funds for the Encampment Resolution Funding Program and authorizing the City Manager, to take the necessary steps to implement the provisions of this Resolution.

Consent

6. Consider approving an Agreement with Turning Point Community Programs, Rancho Cordova, California to administer a short-term Motel Voucher Program that assist individuals experiencing homelessness in an amount not to exceed $200,000. (Funding Source: Measure H)
 Resolution approving an Agreement with Turning Point Community Programs, Rancho Cordova, California to administer a Motel Voucher Program to assist individuals experiencing homelessness in an amount not to exceed $200,000, and authorizing the City Manager, or his designee, to execute the Agreement.

CED; Edgar Garcia, 209-571-5101, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-195 approving an Agreement with Turning Point Community Programs, Rancho Cordova, California to administer a Motel Voucher Program to assist individuals experiencing homelessness in an amount #5..
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not to exceed $200,000, and authorizing the City Manager, or his designee, to execute the Agreement.

Consent

7. Consider approving a Resolution of Intention to form the City of Modesto Community Facilities District (CFD) No. 2025-2 (Village One Triangle), an area bounded by Claus Road, East Briggsmore Avenue, and the railroad along North Santa Fe Avenue, and to designate certain parcels as future annexation areas for the CFD No. 2025-2. (Funding Source: Developer Deposit)
 Resolution of Intention to form City of Modesto Community Facilities District (CFD) No. 2025-2 (Village One Triangle), an area bounded by Claus Road, East Briggsmore Avenue, and the railroad along North Santa Fe Avenue, and to designate certain parcels as future annexation areas for the CFD No. 2025-2 and authorize the Levy of Special Tax within CFD. No. 2025-2.

CED; Edgar Garcia, 209-577-5211, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution of Intention 2025-196 to form City of Modesto Community Facilities District (CFD) No. 2025-2 (Village One Triangle), an area bounded by Claus Road, East Briggsmore Avenue, and the railroad along North Santa Fe Avenue, and to designate certain parcels as future annexation areas for the CFD No. 2025-2 and authorize the Levy of Special Tax within CFD. No. 2025-2.

Consent

8. Consider approving an Ordinance amending Section 8-10.102 “Membership of Commission” of Title 8, Chapter 10, “Citizens’ Transportation Sales Tax Commission” and a Resolution amending the bylaws relating to membership requirements. (Funding Source: Not Applicable)
 Motion introducing and waiving the first reading of an Ordinance amending Section 8-10.102 “Membership of Commission” of Title 8, Chapter 10, “Citizens’ Transportation Sales Tax Commission”.
 Resolution amending the Citizens’ Transportation Sales Tax Commission bylaws relating to membership requirements.

ENGINEERING SERVICES; Toby Wells, 209-571-5542, [email protected] ACTION: (Wright/Alvarez; 6/0) Motion introducing and waiving the first reading of an Ordinance 3796-C.S. amending Section 8-10.102 “Membership of Commission” of Title 8, Chapter 10, “Citizens’ Transportation Sales Tax Commission”.

ACTION: (Wright/Alvarez; 6/0) Resolution 2025-197 amending the Citizens’ Transportation Sales Tax Commission bylaws relating to membership requirements.

Consent

9. Consider accepting the State Route 99/Pelandale Interchange Reconstruction Phase II – Pelandale Avenue and Sisk Road, CML 5059(258) Project as complete, releasing securities, releasing payments totaling $1,798,161 to United Pavement Maintenance, Inc., of Hughson, CA, and authorizing the City Clerk to file a Notice of Completion. #5..
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(Funding Source: Congestion Mitigation and Air Quality (CMAQ) and Streets Capital Facilities Fees (CFF))
 Resolution accepting the State Route 99/Pelandale Interchange Reconstruction Phase II – Pelandale Avenue and Sisk Road, CML 5059(258) Project, releasing securities, releasing payments totaling $1,798,161 to United Pavement Maintenance, Inc., of Hughson, CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-198 accepting the State Route 99/Pelandale Interchange Reconstruction Phase II – Pelandale Avenue and Sisk Road, CML 5059(258) Project, releasing securities, releasing payments totaling $1,798,161 to United Pavement Maintenance, Inc., of Hughson, CA, and authorizing the City Clerk to file a Notice of Completion.

Consent

10. Consider accepting the Grayson Well 69 (Replacing Well 274) Project as complete, releasing securities, releasing payments totaling $3,059,859 to W.M. Lyles Co., of Fresno CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Water Fund)
 Resolution accepting the Grayson Well 69 (Replacing Well 274) Project as complete, releasing securities, releasing payments totaling $3,059,859 to W.M.

Lyles Co., of Fresno CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Pete Kambel, 209-577-5444, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-199 accepting the Grayson Well 69 (Replacing Well 274) Project as complete, releasing securities, releasing payments totaling $3,059,859 to W.M. Lyles Co., of Fresno CA, and authorizing the City Clerk to file a Notice of Completion.

Removed from Consent

11. Consider approving the updates to the City’s Debt Management Policy. (Funding Source: Not Applicable)
 Resolution approving the updates to the City’s Debt Management Policy.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
ACTION: (Wright/Williams; 6/0) Resolution 2025-200 approving the updates to the City’s Debt Management Policy.

Consent

12. Consider approving the updates to the City’s Investment Policy. (Funding Source: Not Applicable)
 Resolution approving the updates to the City’s Investment Policy.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
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[email protected]
ACTION: (Wright/Alvarez; 6/0) Resolution 2025-201 approving the updates to the City’s Investment Policy.

Consent

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

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Wright/Alvarez; 6/0) Motion accepting an Informational Report for the April 2025 Accounts Payable Payment Register and Void Report.

Consent

14. Consider approving the purchase for two Fleet Additions and Replacements for Fleet Vehicles which includes one Wirtgen W120Fi-FCS Pavement Grinder and one Vactor 2100i Fan Truck in the amount not to exceed $1,774,706. (Funding Source: Fleet Replacement Fund and Sewer)
 Resolution approving the Competitive Bidding Process from Sourcewell to Wirtgen America, Inc., Antioch, TN under the authorized dealer, Nixion-Egli Equipment Company, Tracy, CA for the purchase of one Wirtgen W120Fi-FCS Pavement Grinder for an amount not to exceed $797,910; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
 Resolution approving the Competitive Bidding Process from Sourcewell to Vactor Manufacturing, Streator, IL under the authorized dealer, Owen Equipment, Fairfield, CA for the purchase of one Vactor 2100i Fan Truck for an amount not to exceed $745,310; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.

FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-202 approving the Competitive Bidding Process from Sourcewell to Wirtgen America, Inc., Antioch, TN under the authorized dealer, Nixion-Egli Equipment Company, Tracy, CA for the purchase of one Wirtgen W120Fi-FCS Pavement Grinder for an amount not to exceed $797,910; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.

ACTION: (Wright/Alvarez; 6/0) Resolution 2025-203 approving the Competitive #5..
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Bidding Process from Sourcewell to Vactor Manufacturing, Streator, IL under the authorized dealer, Owen Equipment, Fairfield, CA for the purchase of one Vactor 2100i Fan Truck for an amount not to exceed $745,310; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order; and authorizing the Purchasing Manager or her designee to execute any Change Orders not to exceed 15% of the total purchase price.

Consent

15. Consider accepting the Final Report of the Employment after Retirement Review conducted by California Public Employees’ Retirement System (CalPERS). (Funding Source: Various Funds)
 Motion accepting the Final Report of the Employment after Retirement Review conducted by California Public Employees’ Retirement System (CalPERS).

HUMAN RESOURCES; Dawn Kelley, 209-577-5490, [email protected] ACTION: (Wright/Alvarez; 6/0) Motion accepting the Final Report of the Employment after Retirement Review conducted by California Public Employees’ Retirement System (CalPERS).

Consent

16. Consider approving an Agreement with Nynox Solutions, Princeton, NJ, to implement and support an AI-powered search engine for a total amount not to exceed $255,000 over three years. (Funding Source: Information Technology Funds)  Resolution approving an Agreement with Nynox Solutions, Princeton, NJ, to implement and support an AI-powered search engine for a total amount not to exceed $255,000 over three years; and authorizing the City Manager, or his designee, to execute the Agreement.

IT; Dameon Booker, 209-571-5229, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-204 approving an Agreement with Nynox Solutions, Princeton, NJ, to implement and support an AI-powered search engine for a total amount not to exceed $255,000 over three years; and authorizing the City Manager, or his designee, to execute the Agreement.

Consent

17. Consider approving an Agreement with InTime Solutions, Ferndale, WA, for Scheduling and Time-Keeping Management Software for ongoing Maintenance and Support Services for a total amount not to exceed $278,377 over five years. (Funding Source: General Fund)
 Resolution approving an Agreement with InTime Solutions, Ferndale, WA, for Scheduling and Time-Keeping Management Software for a five-year Agreement for an estimated amount of $267,670, with a 4% contingency in the amount of $10,707, for total amount not to exceed $278,377; and authorizing the City Manager, or his designee, to execute the Agreement.

POLICE DEPARTMENT; Jessica Smart, 209-572-9500, [email protected] #5..
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ACTION: (Wright/Alvarez; 6/0) Resolution 2025-205 approving an Agreement with InTime Solutions, Ferndale, WA, for Scheduling and Time-Keeping Management Software for a five-year Agreement for an estimated amount of $267,670, with a 4% contingency in the amount of $10,707, for total amount not to exceed $278,377; and authorizing the City Manager, or his designee, to execute the Agreement.

Consent

18. Consider approving adjustments to various Airport rates and fees for specific activities and services at the Modesto City-County Airport, effective July 1, 2025, rescinding Resolution No. 2024-183. (Funding Source: Airport Operating Revenue)  Resolution approving adjustments to various Airport rates and fees for specific activities and services at the Modesto City-County Airport (Airport), effective July 1, 2025, and rescinding resolution No: 2024-183.

PUBLIC WORKS; Marisol Navarro, 209-577-5319, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-206 approving adjustments to various Airport rates and fees for specific activities and services at the Modesto CityCounty Airport (Airport), effective July 1, 2025, and rescinding resolution No: 2024- 183.

Consent

19. Consider approving an Amended Department of Water Resources 2021 Urban and Multibenefit Drought Relief Grant Program Award of $2,500,000 for the Well 312 Treatment System and Flush Line Project and authorizing a First Amendment to the Local Project Sponsor Agreement with Contra Costa Water District. (Funding Source:

Water Fund)
 Resolution approving the Department of Water Resources Amended 2021 Urban and Multibenefit Drought Relief Grant Program Award of $2,500,000 for the Well 312 Treatment System and Flush Line Project, approving an Amended Local Project Sponsor Agreement with Contra Costa Water District, and authorizing the City Manager, or his designee, to execute the Amended Agreement.
 Resolution amending the Fiscal Year 2024-25 Capital Improvement Program Budget in the amount of $1,500,000 in order to accept an Amended Grant Award from the Department of Water Resources and Authorizing the City Manager, or his designee, to implement the provisions of the Resolution.

UTILITIES; Edgar Vargas, 209-577-5424, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-207 approving the Department of Water Resources Amended 2021 Urban and Multibenefit Drought Relief Grant Program Award of $2,500,000 for the Well 312 Treatment System and Flush Line Project, approving an Amended Local Project Sponsor Agreement with Contra Costa Water District, and authorizing the City Manager, or his designee, to execute the Amended Agreement.

ACTION: (Wright/Alvarez; 6/0) Resolution 2025-208 amending the Fiscal Year #5..
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2024-25 Capital Improvement Program Budget in the amount of $1,500,000 in order to accept an Amended Grant Award from the Department of Water Resources and Authorizing the City Manager, or his designee, to implement the provisions of the Resolution.

Consent

20. Consider approving the Plans and Specifications for the 2018-2019 Lift Station Improvements Project, accepting the Bid, and Awarding a Construction Contract to TSI Engineering, Inc., of North Highlands, CA, in the amount of $2,403,786, authorizing 20% in contingency (if needed), for a total payment amount not to exceed $2,884,544. (Funding Source: Wastewater Fund)
 Resolution approving the Plans and Specifications for the 2018-2019 Lift Station Improvements Project; accepting the Bid and Awarding a Construction Contract to TSI Engineering Inc., of North Highlands, CA, in the amount of $2,403,786, authorizing the Director of Engineering Services to approve Change Orders up to the cumulative amount of $480,758, 20% of the original contract price, for a total payment amount not to exceed $2,884,544 and authorizing the City Manager, or his designee, to execute the Contract.  Resolution amending the Fiscal Year 2024-25 Capital Improvement Program Budget in the amount of $2,346,844 to fund the Construction Phase of the 2018-2019 Lift Station Improvements Project and authorizing the City Manager, or his designee, to implement the provisions of the Resolution.

UTILITIES; Peter Barberis, 209-571-5544, [email protected] ACTION: (Wright/Alvarez; 6/0) Resolution 2025-209 approving the Plans and Specifications for the 2018-2019 Lift Station Improvements Project; accepting the Bid and Awarding a Construction Contract to TSI Engineering Inc., of North Highlands, CA, in the amount of $2,403,786, authorizing the Director of Engineering Services to approve Change Orders up to the cumulative amount of $480,758, 20% of the original contract price, for a total payment amount not to exceed $2,884,544 and authorizing the City Manager, or his designee, to execute the Contract.

ACTION: (Wright/Alvarez; 6/0) Resolution 2025-210 amending the Fiscal Year 2024-25 Capital Improvement Program Budget in the amount of $2,346,844 to fund the Construction Phase of the 2018-2019 Lift Station Improvements Project and authorizing the City Manager, or his designee, to implement the provisions of the Resolution.

COUNCIL COMMENTS & REPORTS
Councilmember Alvarez reminded the public about Modesto’s Rental Housing Inspection Ordinance, which aims to protect tenants from unsafe conditions and prevent retaliation for reporting issues. The program inspects up to 10% of rental units annually, either randomly or based on complaint history. Alvarez emphasized its importance for improving residents’ quality of life and reaffirmed his commitment to addressing substandard housing.
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Councilmember Williams honored former Councilmember Bob Dunbar with a moment of silence, noting his service and upcoming memorial. He also recognized Memorial Day and those who sacrificed their lives in military service. Williams praised the recent American Graffiti event, thanking volunteers, including local organizations and law enforcement, for their help in smoothly parking over 1,000 cars and contributing to a likely $130,000 raised for local nonprofits. He announced upcoming events: a Juneteenth celebration at Crusader Park and a retirement recognition for Chancellor Henry Young at MJC.

Councilmember Ricci expressed enthusiasm about the approval of the West Side Virginia Trail extension, which will create a safe, continuous path to downtown Modesto. He praised City staff for securing a State Grant to fund the project. Ricci also emphasized the importance of ongoing efforts to address blight, urging the City to secure funding for bulky item pickups at multi-family homes and for community dump days to maintain progress in blight abatement.

Councilmember Escutia-Braaton, attending remotely from a national conference as a board member of the National Association of Regional Councils, shared that the event provides valuable opportunities to exchange ideas and best practices with other cities. She expressed appreciation for Modesto’s successful American Graffiti events, noting positive feedback from the community, and thanked everyone involved in organizing them.

Although she couldn’t attend all the festivities, she was glad to participate in the Walk of Fame kickoff event.

Council Member Wright gave an update regarding the Downtown Street Teams in Modesto made significant progress in June, collecting over 13,000 pounds of trash and supporting community members through job readiness workshops and housing assistance.

The Gospel Mission provided services to 64 women and children, while 37 individuals moved into Dignity Moves housing. Recent ribbon cuttings introduced 53 new housing units at Jennie’s Place and 60 emergency beds at Hannah’s Place. A 12-unit housing project on Owens Street is expected to be completed by summer 2025. He commended local organizations for their efforts to assist the homeless.

Councilmember Williams additionally thanked Councilmember Wright for highlighting the City’s efforts to support all residents and acknowledged the presence of Director Megan and her team, expressing appreciation for their work.

CITY MANAGER COMMENTS & REPORTS
None.

HEARINGS
Published in the Modesto Bee on May 21, 2025.

21. Hearing to consider approving an Amendment to the Modesto Urban Area General Plan for an increase in residential densities, an Amendment to Title 10 of the Modesto #5..
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Municipal Code for the increase of residential densities, allowance of duplexes on all lots in the low density residential (R-1) zones, and adoption of a Programmatic Environmental Impact Report for the Modesto Urban Area General Plan. (Funding Source: General Fund)
 Resolution approving an Amendment to the Modesto Urban Area General Plan to amend the densities of residential zones and certifying the final Environmental Impact Report.
 Motion introducing and waiving the first reading of an Ordinance amending Title 10 (Zoning Regulations) of the Modesto Municipal Code, amending Chapter 2 (Definitions), Article 1 (Definitions); Chapter 3 (Land Use Regulations), Article 1 (Permitted and Conditional Land Uses); Chapter 3, Article 2 (Specific Land Use Regulations); Chapter 4 (Development Standards), Article 1 (Residential Zones); and Chapter 4, Article 5 (Accessory Dwelling Units).

CED; Michael Hren, 209-577-5273, [email protected]
ACTION: (Williams/Alvarez; 6/0) Resolution 2025-211 approving an Amendment to the Modesto Urban Area General Plan to amend the densities of residential zones and certifying the final Environmental Impact Report.

ACTION: (Wright/Ricci; 6/0) Motion introducing and waiving the first reading of an Ordinance 3797-C.S. amending Title 10 (Zoning Regulations) of the Modesto Municipal Code, amending Chapter 2 (Definitions), Article 1 (Definitions); Chapter 3 (Land Use Regulations), Article 1 (Permitted and Conditional Land Uses); Chapter 3, Article 2 (Specific Land Use Regulations); Chapter 4 (Development Standards), Article 1 (Residential Zones); and Chapter 4, Article 5 (Accessory Dwelling Units).

Published in the Modesto Bee on May 21, 2025. - Item requested to be continued to June 24, 2025, Council meeting.

22. Hearing to consider approving an Amendment to the Modesto Urban Area General Plan to change the land use of approximately 70 acres from Business Park (BP) to Residential (R); approving the Founders Point East Specific Plan, for the development of 220 acres located northeast of the Pelandale Avenue and Tully Road Intersection; approving the filing of an application to the Stanislaus County Local Agency Formation Commission for the Founders Point East Reorganization to the City of Modesto; approving an Ordinance amending Section 5-3-9 of the Zoning Map of the City of Modesto to prezone The Founders Point East Specific Plan to the Specific Plan (P-SP) Zone; and adopting a Mitigated Negative Declaration for these actions (Fitzpatrick Land Development, LLC) (Funding Source: Application Fees)  Motion to continue item to June 24, 2025.

CED; Katharine Martin, 209-577-5465, [email protected] ACTION: (Williams/Ricci; 6/0) Motion to continue item to June 24, 2025. #5..
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6/10/2025 5:30:00 PM
Published in the Modesto Bee on May 21, 2025. - Item removed from the agenda and will return at a future date.

23. Hearing to consider introduction and waiving the first reading of an Ordinance to amend Section 25-3-8 of the Zoning Map to rezone 0.31 acres located at 1600 Kansas Avenue from Highway Commercial (C-3) Zone to Planned Development Zone P-D (616), and to prezone 0.66 acres located at 1604 Kansas Avenue to Prezone Planned Development Zone, P-P-D(616); approving a Pinpoint Plan for 1600 and 1604 Kansas Avenue; approving the filing of an application to the Stanislaus Local Agency Formation Commission for the reorganization of approximately 0.66 acres located at 1604 Kansas Avenue for annexation to the City of Modesto; adopt a finding that the Proposed Prezone and Rezone and Annexation to Facilitate the development of a new automatic car wash facility at 1600 and 1604 Kansas Avenue is within the scope of the Modesto Urban Area General Plan Master EIR (SCH 2014042081). (Funding Source:

Developer Application Fees)
 Item removed from the agenda and will return at a future date.

CED; Katharine Martin, 209-577-5465, [email protected]

MATTERS TOO LATE FOR THE AGENDA
None.

ADJOURNMENT
This meeting adjourned at 6:23 PM
Attest:____________________________
Diane Nayares-Perez, City Clerk
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EFFECTIVE DATE: July 24, 2025
ORDINANCE NO. 3796-C.S.

ORDINANCE AMENDING SECTION 8-10.102 “MEMBERSHIP OF
COMMISSION” OF TITLE 8 CHAPTER 10, “CITIZENS’
TRANSPORTATION SALES TAX COMMISSION”
WHEREAS, on October 4, 2016, Ordinance 3656-C.S. was approved by the City Council, adding Chapter 10 to Title 8 of the Modesto Municipal Code to establishing the Citizens’ Transportation Sales Tax Commission; and
WHEREAS, on August 2, 2017, by Resolution 2017-291, Council appointed the initial nine members to the Commission. On September 5, 2017, by Resolution 2017-331, Council appointed the remaining two members to constitute the full Commission pursuant to Ordinance No. 3656-C.S.; and
WHEREAS, on April 11, 2023, by Resolution 2023-169, Council approved the bylaws for the Citizens’ Transportation Sales Tax Commission; and WHEREAS, in recent years, the staff has noted challenges in filling the Commission seats. The current criteria for membership are too restrictive for many potential applicants and has resulted in difficulties in attracting and appointing suitable candidates to serve on the Commission; and
WHEREAS, the proposed changes to the ordinance would change the Commission from eleven members to nine members ensuring at least one member from each Council district and three at-large members.

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

SECTION 1. Amendment. Section 8-10.102 is hereby amended to read as follows:
8-10.102 – Membership of Commission.

The Commission shall consist of nine (9) qualified electors residing within the City and shall be appointed by the City Council by resolution pursuant to the provisions below:
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EFFECTIVE DATE: July 24, 2025
(a) Be a citizen of Modesto
(i) one (1) citizen from each City Council District
(ii) three (3) at large citizens from anywhere within the city limits (b) Strong consideration shall be given to composing the Commission of:
(i) a bona fide local taxpayer's association with tax-exempt status under the relevant provisions of the Internal Revenue Code; (ii) a bona fide local nonpartisan political organization, with taxexempt status under Section 501(c)(3) of the Internal Revenue Code, dedicated to encouraging informed and active participation in government; (iii) a bona fide Modesto Neighborhood Associations or
organizations with similar purposes with tax-exempt status under Section 501(c)(3) of the Internal Revenue Code;
(iv) a bona fide association representing business such as a chamber of commerce;
(v) a member from a large business located in the City; (vi) a member from a small business located in the City; and (vii) a member from a bona fide labor union with members residing in the City.
(c) No member of the Commission shall be a relative by blood or marriage within the second degree of the Mayor, a member of the Council, any Charter officer, or any department head or deputy department head. (d) No member of the Commission shall be an employee of the City nor any bargaining unit for employees of the City, nor be a person who receives compensation from the City or from bargaining units of the City in any manner, except retirement benefits.
(e) No member of the Commission shall be a lobbyist or other person with business before the City that represents an economic interest in excess of the limit for material financial effect as established by state law. (f) Members of the Commission shall serve without compensation. (g) Each Commissioner shall be appointed to a four-year term unless the appointment is to fill a vacancy.

SECTION 2. Severability. If any section, subsection, sentence, clause or phrase of this Chapter is for any reason held to be invalid or unconstitutional by a decision of any #6..
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EFFECTIVE DATE: July 24, 2025
court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. The City Council hereby declares that it would have passed the ordinance codified in this Chapter, and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of this Chapter would be subsequently declared invalid or unconstitutional.

SECTION 3. Effective Date. This ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

SECTION 4. Publication. At least two (2) days prior to its final adoption, copies of this ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in The Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this ordinance, the date of its introduction and the places where this ordinance is posted.
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EFFECTIVE DATE: July 24, 2025
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 10th day of June 2025 by Councilmember Wright, who moved its introduction and passage to print, which motion being duly seconded by Councilmember Alvarez, was upon roll call carried and ordered printed and published by the following vote:

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

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

BY: _________________________________
JOSE M. SANCHEZ, City Attorney
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EFFECTIVE DATE: July 24, 2025

FINAL ADOPTION CLAUSE
The foregoing Ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 24th day of June 2025, Councilmember X moved its final adoption, which motion being duly seconded by Councilmember Y, was upon roll call carried and the Ordinance adopted by the following vote:

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

SUE ZWAHLEN, MAYOR
ATTEST: ___________________________________
DIANE NAYARES-PEREZ, City Clerk
Effective Date: July 24, 2025
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CITY OF MODESTO
ORDINANCE NO. 3796-C.S.

The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of June 10, 2025:

ORDINANCE AMENDING SECTION 8-10.102 “MEMBERSHIP OF
COMMISSION” OF TITLE 8 CHAPTER 10, “CITIZENS’ TRANSPORTATION SALES TAX COMMISSION”
Copies of the above-mentioned ordinance are posted at the following locations:
 Tenth Street Place, 1010 10th Street
 Neighborhood Center at Marshall Park, 420 Chicago Ave.  Senior Citizen Center, 211 Bodem Street
Diane Nayares-Perez
City Clerk
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EFFECTIVE DATE: July 24, 2025
ORDINANCE NO. 3797-C.S.

ORDINANCE OF THE CITY COUNCIL OF MODESTO AMENDING
TITLE 10 (ZONING REGULATIONS) OF THE MODESTO MUNICIPAL
CODE, AMENDING CHAPTER 2 (DEFINITIONS), ARTICLE 1
(DEFINITIONS); CHAPTER 3 (LAND USE REGULATIONS), ARTICLE 1 (PERMITTED AND CONDITIONAL LAND USES); CHAPTER 3,
ARTICLE 2 (SPECIFIC LAND USE REGULATIONS); CHAPTER 4
(DEVELOPMENT STANDARDS), ARTICLE 1 (RESIDENTIAL ZONES); AND CHAPTER 4, ARTICLE 5 (ACCESSORY DWELLING UNITS)
WHEREAS, on December 5, 2023, the City Council adopted Resolution 2023-532, adopting the Modesto 2023-2031 Housing Element (hereinafter “the Housing Element”); and WHEREAS, on April 10, 2024, the California Department of Housing and Community Development found the Housing Element in substantial compliance with State Housing Element Law per Gov. Code § 65580 et seq; and
WHEREAS, the Housing Element includes Program A-3, General Plan and Zoning Densities, which requires the City to revise the densities of the residential zones in the zoning code and align them with the General Plan; and
WHEREAS, the City is concurrently proposing an Amendment to the General Plan (GPA-24-999) that aligns with the proposed residential density herein as required by the adopted Housing Element; and
WHEREAS, the Housing Element also includes Program A-11, Facilitate Missing Middle/Middle Income Housing, which requires the City to amend the zoning code to allow to allow duplexes to be approved ministerially on all lots in the Low Density Residential (R-1) zone with a single-family residential use; and
WHEREAS, an Initial Study has been prepared as required by CEQA, which concluded that an Environmental Impact Report should be prepared; and #7..
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EFFECTIVE DATE: July 24, 2025
WHEREAS, a Programmatic Environmental Impact Report for the Modesto Urban Area General Plan was prepared, which concluded that the City Council would need to adopt a statement of overriding considerations as well as written findings in accordance with State CEQA Guidelines Section 15091 and 15093; and
WHEREAS, a 45-day public review period for the proposed draft Environmental Impact Report began on February 28, 2025, and concluded on April 15, 2025; and WHEREAS, the City received two (2) public comment letters on the draft Environmental Impact Report and has made changes to the document as a result, addressing their contents and providing responses thereto within the Final EIR; and
WHEREAS, a public hearing was held by the Planning Commission on May 5, 2025, in Chambers, 1010 Tenth Street, Modesto, California, at which hearing evidence both oral and documentary was received and considered; and
WHEREAS, on May 5, 2025, the Planning Commission recommended in Resolution 2025-28 that the City Council certify the Environmental Impact Report in accordance with State CEQA Guidelines Section 15090 and adopt a Statement of Overriding Considerations as well as written findings in accordance with State CEQA Guidelines Section 15091 and 15093; and WHEREAS, on May 5, 2025, the Planning Commission recommended in Resolution 2025-29 that the City Council approve an Ordinance amending the Modesto Municipal Code as described in Sections 2 through 7 below; and
WHEREAS, a public hearing was held by the City Council on June 10, 2025, in the Tenth Street Place Chambers located at 1010 10th Street, Modesto, California, at which hearing evidence both oral and documentary was received and considered. #7..
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EFFECTIVE DATE: July 24, 2025
NOW, THEREFORE, the City Council of the City of Modesto does hereby ordain as follows:

SECTION 1. FINDINGS. The City Council finds and determines as follows:

A. The proposed changes will not be detrimental to the public health, safety, or welfare. The residential density changes will benefit the community by allowing higher density development, which the Housing Element promotes and encourages.

The changes to allow duplexes ministerially in R-1 zones allow for additional options for landowners to provide housing, and also allow for additional units in areas that would otherwise be considered built out. These changes benefit the public welfare by providing the opportunity for additional housing units to be built, and additional housing development and codification of duplexes will discourage substandard housing and ensure that housing is built compliant with Building and Fire Codes.

B. The proposed changes will result in an orderly planned use of land. The residential density changes provide consistency between the zoning ordinance and the General Plan, which makes preparing and reviewing plans for compliance with the regulations more reliable and allows for orderly development. The duplex changes build on the existing Code’s allowance for duplexes on corner lots in the R-1 zone, extending the permission to all lots, providing consistency throughout the zone.

C. The proposed changes are in accordance with the community’s objectives as set forth in the General Plan and any applicable specific plans. These changes implement the requirements of the Housing Element, which is a component of the General Plan.

SECTION 2. AMENDMENT OF CODE.

Title 10 of the Modesto Municipal Code, Chapter 2, “Definitions”, Article 1, “Definitions”, is hereby amended to read as follows (with deletions in strikethrough and additions in underline):
10-2.101 Purpose and Intent.

The words and phrases used in Title 10 shall have the meanings respectively ascribed to them in this Article unless otherwise apparent from the context. Words not listed in this Article shall be interpreted as defined in a dictionary or other standard reference manual. …
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EFFECTIVE DATE: July 24, 2025
10-2.121(B) Duplex
Two primary single-family dwelling units on a single parcel that have separate entrances. A duplex is not a multiple-family dwelling as defined in Section 10-2.122 even if the two units share walls or are otherwise connected.
…
10-2.1107 Yard, Street-Side.

An area extending across the full lot depth between the street-side lot line and the buildings, structures, and parking area.

SECTION 3. AMENDMENT OF CODE.

Title 10 of the Modesto Municipal Code, Chapter 3, “Land Use Regulations”, Article 1, “Permitted and Conditional Land Uses”, is hereby amended to read as follows (with deletions in strikethrough and additions in underline):
10-3.101 Land Use Table.

The following Land Use Table identifies those uses that are permitted, conditional, and not permitted for each listed zoning district.
(a) The land use symbols shown on Table 3.1-1 have the following meaning:
(1) "P" indicates that the use is permitted
(2) "C" indicates that the use is conditional (A conditional use permit is required) (3) "-" indicates that the use is not permitted
(4) The zoning district symbols and corresponding zoning district names are as follows:

R-1 Low Density Residential
R-2 Medium Density Residential
R-3 Medium-High Density Residential
MU-P Mixed Use Pedestrian Oriented
MU-H Mixed Use Highway Oriented
P-O Professional Office
C-1 Neighborhood Commercial
C-2 General Commercial
C-3 Highway Commercial
C-M Commercial-Industrial
M-1 Light Industrial
M-2 Heavy Industrial
See Chapter 4, Land Use Regulations, for the definition and purpose and intent of the zoning districts.
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EFFECTIVE DATE: July 24, 2025
(b) Refer to the Chapter 9, Administration, to determine the required application and process for permitted and conditional uses.
(c) Refer to the notes column for additional information. #7..
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EFFECTIVE DATE: July 24, 2025
Table 3.1-1 Permitted and Conditional Land Uses
Land Use Zoning Districts Notes
R1 R2 R3 MUP MUH PO C-1 C-2 C-3 CM M1 M2

AGRICULTURAL
Community Gardens P P P P P P P P P P P P See Section
10-2.114
Fruit and nut trees,
vines, row crops,
horticulture stock

P P P P P P P P P P P P

RESIDENTIAL
Accessory Uses
Animals and Fowl P P P - - - - - - - - - See Section
10-3.202
Garage Sales P P P - - - - - - - - - See Section
10-3.206
Home Business P P P - - - - - - - - - See Section
10-3.207
Personal Cannabis
Cultivation
P P P P P P P P P P P P See Section
10-3.601 et
seq.

Dwellings
Accessory Buildings P P P P P P P P P P P P See Section 10-4.114
Accessory Dwelling
Unit, Junior Accessory
Dwelling Unit
P P P P P - - - - - - - See Section
10-4.115
Single Family Dwelling P P P - - - - - - - - - In R-1, 1 unit per lot. For
corner lots,
For
duplexes,
see Section
10-3.217
Manufactured Homes P P P - - - - - - - - - See Section
10-3.209
Multiple Family - P P P P C C C C - - - See Sections
10-9.1002 b
3, 10-9.1002
b 5, and 10-

4.115. ADUs
and JADUs
are allowed
in
conjunction
with
multiple
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EFFECTIVE DATE: July 24, 2025
family
development
on
commercial
properties
for which a
CUP has
been issued
in
accordance
with Section
10-4.115.

Mobile Home Parks - - - - - - - - - - - - See Section
10-7.103 b 2
Other Residential Uses within Dwellings
Lodging and Boarding
(3 or fewer persons, 1
dwelling)
P P P - - - - - - - - - See Section
10-3.208
Lodging and Boarding
(4 or more persons, 1
dwelling)
C C P - - - - - - - - - See Section
10-3.208
Lodging and Boarding
(3 or fewer persons, 2
dwellings on a lot)
- P P C C C C C C - - - See Section
10-3.208
Lodging and Boarding
(4 or more persons, 2
dwellings on a lot)
- C P C C C C C C - - - See Section
10-3.208

CIVIC/INSTITUTIONAL
Educational Facilities
School - Private (including charter
schools) C C C P P P P P P C C C
School - Public (including charter
schools) C C C P P P P P P C C C
School - Vocational - - - P P P P P P P P P
Healthcare Facilities
Hospital - - - P P - - P P P P P
Substance Abuse
Clinic/Facility
- - - P P P P P P P P P
Veterinary Hospital (large animals)
- - - - - - - - - P P P See Section
10-2.1100
Veterinary Hospital (small animals)
- - - P P P P P P P P P See Section
10-2.1101
Non-Profit Organization
No Retail (office, classroom, meeting
hall) C C C P P P P P P P P P
Retail - - - P P - P P P P P P
Public Facilities
Library - - - P P P P P P P P P
Museum - - - P P P P P P P P P
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EFFECTIVE DATE: July 24, 2025
Public Buildings and Grounds (i.e.
corporation yard) C C C C C C C C C P P P
Public Facilities, Minor (wells, pumps) P P P P P P P P P P P P Public Parks P P P P P P P P P P P P
Storm Drainage
Facilities

P P P P P P P P P P P P
Quasi-Public Facilities
Cemetery - - - - - - - - - - - - See Section
10-7.103 b 3
Church (place of worship) C C C P P P P P P P P P
Utilities
Solar Energy Systems (accessory use) P P P P P P P P P P P P See Section 10-2.187
Solar Energy Farm - - - - - - - - - - P P See Section
10-2.186
Utility Company
Buildings, Facilities, and
Grounds

C C C C C C C C C P P P
Utilities and Railroads See Section
10-3.221

COMMERCIAL
Communication
Broadcasting Studio (radio or
television) - - - P P - - P P P P P
Radio or Television
Transmitter
- - - C C - C C C P P P
Wireless
Telecommunication
Facilities
See Chapter
3, Article 4
Entertainment
Adult Entertainment
Business
- - - - - - - - - - P P See Chapter
3, Article 3
Carnival (entertainment permit
required) - - - P P - - P P P P P See Title 4,
Chapter 1,
Article 4
Circus (entertainment permit
required) - - - P P - - P P P P P See Title 4,
Chapter 1,
Article 4
Entertainment Establishment
(entertainment permit required) - - - P P - - P P P P P See Title 4, Chapter 1,
Article 4
Theater, Motion Picture (indoor)
- - - P P - - P P P P P
Commercial Cannabis
Uses
See Chapter
3, Article 7
Commercial Marijuana
Activity
- - - - - - - - - - - - See Section
10-3.210
Lodging
Motel, Hotel - - - P P P P P P P P P
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EFFECTIVE DATE: July 24, 2025
Bed and Breakfast (2 rooms for
lodging, owner resides on site) P P P - - - - - - - - - Office
General - - - P P P P P P P P P See Section
10-2.159
Medical - - - P P P P P P P P P See Section
10-2.160
Outdoor Sales and Activities
Auction Yard - - - - - - - - - - P P
Commercial
Certified Farmers'
Market
- - - P P - P P P P P P See Section
10-3.212 a
Food and Drink
Stands
- - - P P - P P P P P P See Section
10-3.212 b
Fund Raisers
(nonprofit
organizations)
P P P P P P P P P P P P See Section
10-3.212 c
Outdoor Dining Areas - - - P P - P P P P P P See Section 10-3.212 d
Outdoor Display,
major
- - - P P - - P P P P P See Section
10-3.212 e
(2)
Outdoor Display,
minor
- - - P P - P P P P P P See Section
10-3.212 e
(1)
Outdoor Sales
(products customarily
sold indoor)
- - - P P - P P P P P P See Section
10-3.212 f
Promotions P P P P P P P P P P P P See Section
10-3.212 g
Seasonal Sales
(fireworks, pumpkins,
Christmas trees)
P P P P P P P P P P P P See Section
10-3.212 h
Mobile Food Facilities - - - P P - P P P P P P See Sections 10-3.210
and 10-

3.212 i
Flea Market - Indoor - - - P P - - P P P P P
Flea Market - Outdoor - - - - - - - - - - P P
Industrial - - - - - - - - - P P P See Section
10-3.213
Recreational
Campground,
Recreation Vehicle
Overnight Park
- - - - C - - - C P P P
Health Club - - - P P - P P P P P P
Private Club, Lodge, - - - P P - P P P P P P
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EFFECTIVE DATE: July 24, 2025
Social Club, Cultural
Center
Recreation Facility -
Indoor
- - - P P - C P P P P P See Section
10-2.165
Recreation Facility -
Outdoor
- - - C C - - C C P P P See Section
10-2.166
Recycling (Collection)
Recycling Facility, Large
(more than 500 SF area)
- - - C C - - C C P P P
Recycling Facility, Small
(500 SF max area)
- - - P P - P P P P P P See Section
10-3.215 b
Unattended Containers
no more than 50 SF area
(in residential zones w/
school, church, or
government use)
P P P - - - - - - - - - See Section
10-3.215 a
Unattended
Containers/Reverse
Vending Machine no
more than 50 SF area
(w/ permitted or
conditional use)
- - - P P P P P P P P P
Restaurants
Banquet Hall - - - C/P C/P - - C/P C/P C/P C/P C/P See Section 10-3.203
Bar, Cocktail Lounge,
Tavern
- - - C/P C/P - - C/P C/P C/P C/P C/P See Section
10-3.203
Restaurants (w/
alcohol)
- - - C/P C/P - C/P C/P C/P C/P C/P C/P See Section
10-3.203
Restaurants (w/o
alcohol)
- - - P P - P P P P P P
Retail
General Retail - - - P P - - P P P P P See Section
10-2.174
Neighborhood Retail - - - P P - P P P P P P See Section 10-2.175
Services
General Services
Ambulance Service - - - P P - - P P P P P
Armored Car Service - - - P P - - P P P P P
Business Services - - - P P P P P P P P P See Section
10-2.178
Car Wash - - - C/P C/P - - C/P C/P C/P C/P C/P See Section 10-3.222
Equipment Rental
(indoors)
- - - P P - - P P P P P
Exterminating Service - - - P P - - P P P P P
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EFFECTIVE DATE: July 24, 2025
Fortune Telling - - - P P - - P P P P P
Funeral Home
(includes cremation)
- - - C C - - C C P P P
Janitor Service - - - P P - - P P P P P
Kennel - - - C C - - C C P P P
Laboratory (research
and testing)
- - - P P - - P P P P P
Package Delivery
Service
- - - - C - - - C P P P
Personal Services - - - P P P P P P P P P See Section
10-2.179
Security Company - - - P P - - P P P P P
Self Storage - - - - C - - - C P P P
Sign Painting Shop - - - P P - - P P P P P
Stone Monument - - - C C - C C C P P P
Taxicab Service - - - P P - - P P P P P
Taxidermist Shop - - - P P - - P P P P P
Towing Services (no impound yard)
- - - P P - - P P P P P
Trade Services - - - P P - - P P P P P See Section
10-2.182
Repair Services
Major Repair - - - P P - - P P P P P See Section
10-2.180
Minor Repair - - - P P - P P P P P P See Section
10-2.181
Social Assistance
Services
Assisted Living
Facility

C C P P P P P P P - - -
Adult Day Care (3 or fewer clients, 1
unit per lot) P P P - - - - - - - - - Residential
dwelling.

Clients plus
family
members
Adult Day Care (4 or more clients, 1
unit per lot) C C C - - - - - - - - -
Adult Day Care (3 or fewer clients, 2
units per lot) C C C - - - - - - - - -
Adult Day Care C C C P P C P P P P P P Commercial
facility
Day Care Home - Small Family (6 or
fewer children) P P P - - - - - - - - - See Section
10-3.204 a 1
Day Care Home - Large Family (7-
14 children) P P P - - - - - - - - - See Section
10-3.204 a 2
Child Day Care Home (15 or more
children) C C C - - - - - - - - - See Section
10-3.204 a 3
Child Day Care Center C C C P P C P P P P P P See Section 10-3.204 b
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EFFECTIVE DATE: July 24, 2025
Convalescent and
Other Care Facility
C C C P P C P P P P P P Commercial
facility
Emergency Shelter - - - - - - C C P C C C See Section
10-3.205
Homeless Shelter - - - - - - C C P C C C See Section
10-3.205
Low Barrier
Navigation Center
- - - P P P P P P C C C See Sections
10-2.149.1
and 10-

3.208.1
Residential Care Facility (6 or fewer
persons) P P P - - - - - - - - -
Residential Care Facility (7 or more
persons) C C C - - - - - - - - -
Residential Care Facility (2 or more
care facilities) C C C - - - - - - - - - See Section
10-3.216
Residential Service Facility (not
State licensed) C C C - - - - - - - - -
Supportive Housing P P P P P P P P P - - - See Section
10-2.192
Transitional Housing P P P P P P P P P - - - See Section 10-2.194
Vehicle Related
Heavy Vehicles See Section
10-2.198
Farm Equipment
Sales, Rental, Repair, &
Service
- - - - C - - - C P P P
Truck & Trailer Sales,
Rental, Repair, & Service
- - - - C - - - C P P P
Light Vehicles See Section
10-2.199
Minor Maintenance (minor tune up,
smog check) - - - C/P C/P - C/P C/P C/P C/P C/P C/P See Section 10-3.222
Parts Store - - - P P - P P P P P P
Rental and Sales - - - P P - - P P P P P
Repair and Service,
Major
- - - - - - - - - C/P C/P C/P See Sections
10-2.199 a
and 10-

3.222
Repair and Service,
Minor
- - - C/P C/P - - C/P C/P C/P C/P C/P See Sections
10-2.199 b
and 10-

3.222
Service Station - - - P P - P P P P P P
Stereo Installation - - - C/P C/P - - C/P C/P C/P C/P C/P See Section 10-3.222

INDUSTRIAL
Manufacturing
#7..
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EFFECTIVE DATE: July 24, 2025
Heavy - - - - - - - - - - - P See Section
10-2.150
Light - - - - - - - - - - P P See Section
10-2.151
Other Manufacturing
Involving:

Chemical Products (Hazardous)
- - - - - - - - - - - C
Explosives - - - - - - - - - - - C
Natural Gas and Gas
Products
- - - - - - - - - - - C
Paper, Pulp, and
Wood (no burning
operation)
- - - - - - - - - - - C
Other Industrial
Animal Slaughter
Facility
- - - - - - - - - - - C
Brewery - - - - - - - - - - P P
Microbrewery - - - C/P C/P - - C/P C/P C/P C/P C/P See Section 10-3.203
Bulk Fuel Storage (Class II flammable
liquids for the power needs of food
processing plants)
- - - - - - - - - - P P
Cabinet Shop - - - - - - - - - P P P
Contracting Business (with equipment
and materials yard) - - - - - - - - - P P P
Distributing, Freighting
or Trucking Yard
- - - - - - - - - - P P
Equipment Rental Yard - - - - - - - - - P P P
Laundry and Dry
Cleaning Plant
- - - - - - - - - P P P
Machine Shop - - - - - - - - - P P P
Power Plant - - - - - - - - - - C P
Rock Crushing - - - - - - - - - - - C
Sand, Gravel, Brick, and Building Block
Yard (no concrete mixing,
manufacture or rock crushing)
- - - - - - - - - - P P
Sheet Metal Shop - - - - - - - - - P P P
Tire Rebuilding,
Recapping, Retreading
- - - - - - - - - P P P
Transit and
Transportation
Equipment Storage Yard
- - - - - - - - - - P P
Vehicle Impound Yard - - - - - - - - - P P P
Warehousing - - - - - - - - - P P P
Waste Disposal or
Transfer Station
- - - - - - - - - - - C
Welding Shop - - - - - - - - - P P P
Wholesale Business - - - - - - - - - P P P
Winery - - - - - - - - - - - P
#7..
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EFFECTIVE DATE: July 24, 2025
Recycling Facilities
Recycling, Junk
Handling, Processing
and Storage, Heavy
- - - - - - - - - - - C
Recycling Processing
Facility, Light
- - - - - - - - - - P P
Vehicle Salvage,
Wrecking
- - - - - - - - - - - C
Miscellaneous
Accessory Uses and Buildings
Customarily incidental
to permitted &
conditional uses
P P P P P P P P P P P P See Section
10-3.201 a
Incidental
Manufacturing,
Processing, Packaging,
Storage, or Wholesale
Sales
- - - P P - P P P P See Section
10-3.201 b
Parking
Parking Area in
residential zone for
adjacent nonresidential
use in nonresidential
zone

C C C - - - - - - - - -
Parking Area in P-O
zone for adjacent
commercial use in
commercial zone
- - - - - P - - - - - -
Parking Lot or Garage - - - P P - P P P P P P
Recreational Vehicles P P P P P P P P P P P P See Section 10-3.214
Trucks and Truck
Trailers in residential
zones
- - - - - See Section
10-3.220
Temporary Buildings
Construction Buildings P P P P P P P P P P P P See Section 10-3.218
Mobile Living Quarters P P P - - - - - - - - - See Section 10-3.211
Sales Offices and Model
Homes
P P P P P P P P P P P P See Section
10-3.219
Legend
P  Permitted Use    —  Not Permitted  C  Conditional Use    Note: A blank box means the land use is not applicable and/or refer to notes. P* Low Barrier Navigation Centers as a Permitted Use in the Mixed Use and Commercial Zones shall be repealed on January 1, 2027. #7..
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EFFECTIVE DATE: July 24, 2025
SECTION 4. AMENDMENT OF CODE.

Title 10 of the Modesto Municipal Code, Chapter 3, “Land Use Regulations”, Article 2, “Specific Land Use Regulations”, Section 10-3.217, “Corner Lots in the R-1 Zone” is hereby amended to read as follows (with deletions in strikethrough and additions in underline):
10-3.217 Corner Lots Duplexes in the R-1 Zone.
(a) Two (2) single-family dwellings or a A duplex on any corner lot are is allowed on any lot in the R-1 Zone subject to all other standards of the R-1 zone including but not limited to lot coverage, setbacks, height, parking, and fencing but not including density., provided that the driveway serving the off-street parking for each unit shall take access from different streets.

If the lot has access to an alley, one (1) or both driveways may access the alley. (b) An accessory dwelling unit is allowed on any interior lot in the R-1 Zone or any residential zone where the lot contains only an existing single-family dwelling in accordance to Section 10-4.115. A lot in the R-1 zone that has an existing or proposed duplex is eligible for Accessory Dwelling Units as per Section 10-4.505(a), Lots with a Single-family Dwelling.

SECTION 5. AMENDMENT OF CODE.

Title 10 of the Modesto Municipal Code, Chapter 4, “Development Standards”, Article 1, “Residential Zones (R-1, R-2, R-3)”, Section 10-4.104, “Density”, is hereby amended to read as follows (with deletions in strikethrough and additions in underline):
10-4.104 Density.
(a) In the R-2 Zone, there shall be a minimum density of one (1) dwelling unit per four thousand (4,000) square feet of lot area, for sites smaller than one (1) acre, and a minimum density of approximately eleven (11) dwelling units per net acre for sites one (1) acre or larger. A maximum density of one (1) dwelling unit shall be permitted for each three thousand (3,000) square feet of lot area, for sites smaller than one (1) acre, and a maximum density of approximately fourteen and one-half (14.5) dwelling units per net acre shall be permitted for sites one (1) acre or larger. In the R-1 zone, there shall be a maximum density of 10.9 dwelling units per net acre.
(b) In the R-3 Zone, there shall be a minimum density of more than one (1) dwelling unit per three thousand (3,000) square feet of lot area, for sites smaller than one (1) acre, and a minimum density of more than fourteen and one-half (14.5) dwelling units per net acre for sites larger than one (1) acre. A maximum density of one (1) dwelling unit shall be permitted for each one thousand five hundred (1,500) square feet of lot area, for sites #7..
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EFFECTIVE DATE: July 24, 2025
smaller than one (1) acre, and a maximum density of approximately twenty-nine (29) dwelling units per net acre shall be permitted for sites larger than one (1) acre. In the R-2 zone, there shall be a minimum density of 10.9 dwelling units per net acre, and a maximum density of 22 dwelling units per net acre.
(c) In the R-3 zone, there shall be a minimum density of 14.5 units per net acre, and a maximum density of 45 dwelling units per net acre.
(c)(d) In the R-2 and R-3 zones, the minimum density shall be provided unless the applicant demonstrates and the Director makes the following findings:
(1) The proposed development is on an existing lot where the lot cannot accommodate a development of the minimum density due to configuration of existing buildings or shape or size of the lot, or
(2) A lower density will not adversely affect the City's ability to accommodate and provide its remaining share of the Regional Housing Needs Allocation for very-low and low-income households based on the remaining acreage of Medium Density Residential (R-2) or Medium-High Density Residential (R-3) zoned land at the time of application, provided, that if an adverse impact as described could otherwise occur, that such impact will be mitigated by one (1) of the following means:
(i) An equivalent parcel of land of the same or greater acreage is provided by the applicant and rezoned to the same or greater density simultaneously, or (ii) The applicant agrees to construct and covenant for affordable units on the subject site or another site in a number sufficient to ensure no net loss of units based on the minimum density set forth herein.

SECTION 6. AMENDMENT OF CODE.

Title 10 of the Modesto Municipal Code, Chapter 4, “Development Standards”, Article 5, “Accessory Dwelling Units”, Section 10-5.505, “Accessory Dwelling Units”, is hereby amended to read as follows (with deletions in strikethrough and additions in underline):
10-4.505 Number and type of Accessory Dwelling Units Permitted. (a) Lots with a Single-family Dwelling or Duplex. On a lot developed with an existing or proposed single family dwelling or duplex, an applicant may choose from any of the following ADU types (i.e., attached, detached, converted) or a JADU, or a combination thereof not to exceed two (2) additional units beyond the primary single-family residence. (1) An Attached (new construction) ADU meeting the requirements of this chapter. (2) A Detached (new construction) ADU:
(i) Minimum four (4) foot side and four (4) foot rear yard setbacks are required. #7..
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EFFECTIVE DATE: July 24, 2025
(3) A Converted ADU may be located within an existing single-family dwelling (i.e., in living space to be converted to an ADU, e.g., a master bedroom suite), or within an existing detached accessory structure (e.g., a detached garage). (i) The ADU located within an existing or proposed single-family dwelling must have exterior access.
(ii) The side and rear setbacks of the existing accessory structure to be converted must be sufficient for fire and safety.
(4) One (1) Junior Accessory Dwelling Unit (JADU) is allowed per lot zoned for singlefamily residential, where there is only one (1) existing or one (1) proposed single family dwelling.
(i) Junior Accessory Dwelling Units shall conform to the requirements in Section 10- 4.509, below.
(b) Lots with Multi-family Residential Dwellings.
(1) Multiple accessory dwelling units are allowed within the portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to, storage rooms, boiler rooms, passageway, attics, basements, or garages, if each unit complies with state building standards for dwellings. (2) The number of ADUs shall not exceed twenty-five (25) percent of the existing multifamily units, except that at least one (1) ADU is allowed. (3) Not more than two (2) detached ADUs may be added to a lot that has a proposed multifamily dwelling, and not more than eight (8) detached ADUs may be added to a lot that has an existing multifamily dwelling.
(c) ADUs developed on a lot with an existing or proposed Place of Worship. (1) An ADU may be developed on a lot, meeting the following requirements:
(i) Zoned Residential or Commercial, and excluding the Industrial Zones (C-M, M1, and M-2); (ii) Developed with an existing or proposed place of worship; and (iii) Where the church or place of worship meets the Internal Revenue Service (IRS) requirements for tax exempt status under Internal Revenue Code (IRC) Section 501 (c)(3).
(2) Not more than two (2) detached ADUs may be built.
(3) Each ADU may not exceed 1,200 square feet in floor area. (4) Each ADU shall meet the required front setbacks of the respective zoning district. (5) Each ADU shall meet the required street-side setbacks of the respective zoning district.
(6) Each ADU shall have a minimum four (4) foot interior side and rear yard setbacks. #7..
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EFFECTIVE DATE: July 24, 2025
(7) No additional off-street parking is required for the ADUs, if at least one (1) existing off-street parking space is reserved for tenants in each proposed ADU. (8) The ADUs shall have a maximum height of sixteen (16) feet.

SECTION 7. AMENDMENT OF CODE.

Title 10 of the Modesto Municipal Code, Chapter 4, “Development Standards”, Article 5, “Accessory Dwelling Units”, Part 10-4.506, “Accessory Dwelling Units (ADUs): Maximum Sizes”, is hereby amended to read as follows (with deletions in strikethrough and additions in underline):
10-4.506 Accessory Dwelling Units (ADUs): Maximum Sizes. (a) Attached ADUs. The total floor area of an attached accessory dwelling unit shall not exceed fifty (50) percent of the primary dwelling. For a duplex, the total floor area of an attached accessory dwelling unit shall not exceed fifty (50) percent of the primary unit or units that the accessory dwelling unit is proposed to be attached to. This limitation shall not preclude development of an attached ADU of up to 800 square feet. (b) Detached ADUs.
(1) The total floor area for a detached ADU shall not exceed twelve hundred (1,200) square feet.
(2) A detached ADU shall not exceed the square footage (in floor area) of the existing or proposed single family dwelling.
(c) Converted ADUs.
(1) When an existing detached accessory structure is converted to an ADU, a maximum one-hundred-fifty (150) square-foot expansion beyond the dimensions of the existing accessory structure is allowed, provided the expansion is used solely for accommodating ingress and egress.
(2) Any expansion to an existing structure that is nonconforming as to its setbacks, shall provide a minimum four (4) foot interior side yard and four (4) foot rear yard setbacks.

SECTION 8. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

An Initial Study/Environmental Impact Report, Environmental Assessment No.

EA/C&ED No. 2024-38, has been prepared by the City of Modesto that analyzed the proposed changes to the Municipal Code, which the City Council certified and adopted a Statement of #7..
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EFFECTIVE DATE: July 24, 2025
Overriding Considerations as well as written findings in accordance with State CEQA Guidelines Section 15091 and 15093 by Resolution 2025-__, adopted on June 10, 2025.

SECTION 9. EFFECTIVE DATE.

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

SECTION 10. PUBLICATION.

At least two (2) days prior to its final adoption, copies of this ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in The Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this ordinance, the date of its introduction and the places where this ordinance is posted. #7..
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EFFECTIVE DATE: July 24, 2025
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 10th day of June 2025, by Councilmember Wright, who moved its introduction and passage to print, which motion being duly seconded by Councilmember Ricci, was upon roll call carried and ordered printed and published by the following vote:

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

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

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

By: __________________________________________________
Community & Economic Development Department,
Planning Division
#7..
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EFFECTIVE DATE: July 24, 2025

FINAL ADOPTION CLAUSE
The foregoing Ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 24th day of June 2025, Councilmember X moved its final adoption, which motion being duly seconded by Councilmember Y, was upon roll call carried and the Ordinance adopted by the following vote:

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

SUE ZWAHLEN, MAYOR
ATTEST: ___________________________________
DIANE NAYARES-PEREZ, City Clerk
Effective Date: July 24, 2025
#7..
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CITY OF MODESTO
ORDINANCE NO. 3797-C.S.

The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of June 10, 2025:

ORDINANCE OF THE CITY COUNCIL OF MODESTO AMENDING
TITLE 10 (ZONING REGULATIONS) OF THE MODESTO MUNICIPAL
CODE, AMENDING CHAPTER 2 (DEFINITIONS), ARTICLE 1
(DEFINITIONS); CHAPTER 3 (LAND USE REGULATIONS), ARTICLE 1 (PERMITTED AND CONDITIONAL LAND USES); CHAPTER 3,
ARTICLE 2 (SPECIFIC LAND USE REGULATIONS); CHAPTER 4
(DEVELOPMENT STANDARDS), ARTICLE 1 (RESIDENTIAL ZONES); AND CHAPTER 4, ARTICLE 5 (ACCESSORY DWELLING UNITS)
Copies of the above-mentioned ordinance are posted at the following locations:
 Tenth Street Place, 1010 10th Street
 Neighborhood Center at Marshall Park, 420 Chicago Ave.  Senior Citizen Center, 211 Bodem Street
Diane Nayares-Perez
City Clerk
#7..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

June 24, 2025
Date: May 6, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Economic Development Strategic Plan (2025)
CONTACT: Raj Solanki, Administrative Office Assistant III [email protected] , 209-577-5244
DESCRIPTION:

Consider approving the Economic Development Strategic Plan (2025). (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2025-2026 Strategic Plan Goal E. Drive Economic Vitality: Drive the success of a vibrant and economically sustainable business climate.

BACKGROUND:

The City’s last Economic Development Strategic Plan, approved in 2003, reflected data from 1991-2000—a time long before the profound shifts that have transformed our local and global economy. Over the past two decades, the city has faced challenges and opportunities in workforce development, housing availability, and resilience, including the impact of COVID-19.

Economic development practices have evolved, shifting from traditional business attraction and retention to a broader, inclusive approach. Regional collaboration initiatives such as Stanislaus 2030 and North Valley THRIVE exemplify this new direction, emphasizing inclusive economies and shared prosperity.

Modesto stands at a critical juncture, with the opportunity to shape its future through the General Plan Update 2050. Incorporating a robust Economic Development Element into this plan will enable the city to attract investment effectively, collaborate with regional partners, and ensure sustained economic growth. An up-to-date Plan is essential to achieving these goals, aligning Modesto's efforts with broader community and regional initiatives.

On August 21, 2023, Modesto issued Request for Proposal INF23-04 for Economic Development Strategic Planning Services, and eleven qualified firms submitted proposals by the September 21, 2023, deadline. The City assembled a Review and Scoring Committee, including staff and experts from Modesto and Opportunity Stanislaus, to assess proposals based on #8..
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City Council, June 24, 2025
Economic Development Strategic Plan (2025)

technical merit and cost. After careful evaluation, the Natelson Dale Group (Consultant) was selected as the most responsive and cost-effective provider.

Natelson Dale Group (Consultant) is a nationally recognized economic consulting firm established in California in 1974, bringing extensive experience in planning and implementing economic and workforce development programs. The firm’s deep understanding of local real estate markets and regional economic trends positioned them as an ideal partner for developing the new Plan. On January 9, 2024, the City Council approved Resolution 2024-02, authorizing an agreement with the Consultant for an amount not exceeding $144,875.

The new Plan draws on Modesto’s 2020-2025 Strategic Plan, which prioritized economic vitality alongside quality of life and governance. Economic vitality goals focus on fostering a sustainable business climate, creating a recognizable city identity, and transforming downtown Modesto into a regional destination. The Consultant’s approach supported these goals through the completion of four broad tasks:

1. Conducted a market assessment and built a baseline profile of current conditions.

2. Conducted stakeholder engagement and visioning using a SWOT analysis, which illuminated barriers to achieving economic development goals, including competitiveness, opportunity, strategy, and equity.

3. Developed draft administrative plans, including economic development action plans, standard operating procedures, and qualified and quantified measures of success; and

4. Reported and summarized findings and recommendations.

The plan ensured alignment and continuity of the following community plans.  Stanislaus 2030: This is a public-private partnership that advances a shared vision for economic prosperity for all. It focuses on creating more quality jobs, reducing the number of struggling families, and emphasizing growth, prosperity, and inclusion. The new economic development strategic plan utilized the data and initiatives identified in Stanislaus 2030's Investment Blueprint to align efforts across governmental agencies, private-public partnerships, educational institutions, businesses, service providers, and community groups.
 North Valley THRIVE: This is a coalition of community organizations, government entities, educational institutions, and economic development agencies across San Joaquin, Stanislaus, and Merced Counties as formed by the California Jobs First initiative. It primarily works toward the growth of inclusive economies. The new economic development strategic plan synced with their place-based economic development strategies to leverage the partnerships and initiatives of North Valley Thrive to foster economic resilience and inclusivity.
 General Plan 2050: The General Plan is in development, and such plans typically provide a long-term framework for development, land use, transportation, and public services. The new economic development strategic plan leveraged this to ensure that economic development initiatives aligned with the broader goals and guidelines of the community. The planning efforts have produced a draft Economic Development Element for the General Plan 2050 Update.
#8..
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City Council, June 24, 2025
Economic Development Strategic Plan (2025)

 Downtown Master Plan: This plan focused on zoning policies for local, inclusive placemaking. It envisioned the next evolution of downtown, which could have included new businesses, residential areas, and public spaces. The new economic development strategic plan built on the existing defensible community mandates to define new programs that would attract investment and stimulate economic activity in the downtown area.

By integrating these plans, the new economic development strategic plan ensured a coordinated and comprehensive approach to economic development, maximizing the impact of each initiative and fostering a resilient and prosperous community.

The development of the new Plan was guided by a thorough, collaborative process that combined both technical analysis and community engagement. The process took place over the course of 2024 and into early 2025, ensuring that the plan reflects Modesto's unique economic landscape and the priorities of its community. This comprehensive approach helped shape the final strategic framework, which includes actionable steps for economic growth, workforce development, business support, and regional collaboration.

The detailed scope of the new Plan development process included a variety of tasks, all aimed at gathering insights, analyzing trends, and crafting a plan that could be effectively implemented. These tasks included:
 Demographic and Economic Analysis: Understanding current and future trends in population, labor force, and key industries, providing a foundation for the strategic direction.
 Stakeholder Engagement: Direct input was gathered through novel combination of workshop-style meetings and panelist forums. This ensured that the strategies developed were rooted in real-world insights from business owners, educators, community organizations, and government officials.
o On May 23, 2024, the city hosted a stakeholder’s summit. Participants of the stakeholders' summit helped to identify potential opportunities/options for future economic growth, partner organizations (public and private) that can support implementation of the Plan, and specific strategies to address the identified opportunities and constraints.
o Central Valley Real Estate Summit: On August 7, 2024, the Central Valley Real Estate Summit brought together real estate brokers and developers from the Central Valley, Bay Area, and Capitol Region to discuss 2024’s market performance, a market forecast, and to contribute to our economic Development Strategic Plan efforts.
o Workforce Development Forum: On August 8, 2024, the city hosted a Workforce Development Forum addressing skill gaps, job training, and aligning education with industry needs.
o Entrepreneurial Development Forum: On August 14, 2024, the city hosted an Entrepreneurial Development Forum aiming to provide a platform to discuss #8..
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City Council, June 24, 2025
Economic Development Strategic Plan (2025)

strategies for supporting startups, encouraging innovation, and creating an entrepreneurial ecosystem.
o State Policies and Legislative Agenda Forum: On August 28, 2024, the city hosted a State Policies and Legislative Agenda Forum in which participants engaged in dialogue about state-level policies and legislation that impacts jobs and small business. An opportunity to advocate for favorable policies and address challenges.
o Urban Design and Zoning Forum: On August 29, 2024, the city hosted an Urban Design and Zoning Forum focusing on shaping the physical environment to promote economic growth. Discussions centered around land use, zoning regulations, and urban planning.
 Industry Cluster Analysis: An in-depth study was conducted to identify the most promising industry clusters for Modesto, focusing on those with the potential for growth and job creation, such as agribusiness, food processing, advanced manufacturing, and healthcare.
 Real Estate Market Analysis: A comprehensive assessment of demand for commercial and industrial space in Modesto was conducted, identifying opportunities for development and investment.
 SWOT Analysis: Strengths, weaknesses, opportunities, and threats (SWOT) to Modesto’s economic development were identified through stakeholder input, helping shape the direction of the Economic Development Strategic Plan (EDSP).  Actionable Strategies: The findings from the workshops and analysis were translated into 22 strategic recommendations organized across 12 key focus areas aimed at enhancing Modesto's economic competitiveness and quality of life.

DISCUSSION:

The Economic Development Strategic Plan (2025) (EDSP) provides a five-year strategic framework to advance the city’s economic future through intentional, inclusive, and datainformed action. Developed with extensive stakeholder input and technical analysis, the plan focuses on strengthening Modesto’s business climate, workforce, and regional influence.

The Plan begins with foundational steps like branding, engagement, and internal coordination, followed by expanded regional partnerships and targeted economic development programs. It includes several initiatives such as establishing Modesto as the hub of the Bioeconomy Valley, accelerating remote tech job growth, and launching a Downtown Catalyst Project for highimpact, visitor-oriented development. Collectively, this plan positions Modesto to become a more inclusive, innovative, and economically resilient city.

It outlines 12 key focus areas, each with specific strategies designed to improve quality of life, grow jobs, and attract investment. These key focuses areas are summarized below. The Final Draft Economic Development Strategic Plan is attached as attachment 2 for a comprehensive review.

Key Focus Areas and Initiatives
#8..
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City Council, June 24, 2025
Economic Development Strategic Plan (2025)

1. Brand and Image: Upgrade the City’s economic development website and launch an image enhancement campaign.

2. Community Engagement and Inclusion: Implement inclusive outreach and raise public awareness of economic development.

3. Placemaking: Support development and placemaking efforts in Downtown and other target areas

4. Development Capacity and Business Friendliness: Expand development-ready land and streamline business processes.

5. Talent Development: Establish a Workforce Development Consortium and support training programs.

6. Regional Collaboration: Leverage initiatives like BEAM Circular and Stanislaus 2030 for mutual benefit

7. Entrepreneurship and Innovation: Be the lead in the region to invest, support, and facilitate new business ventures in the City of Modesto.

8. Business Attraction and Recruitment: Focus recruitment on traded industry clusters and targeted retail growth

9. Business Retention and Expansion (BRE): Deploy a proactive business engagement program with customized support.

10. Small Business Development: Create distinct programs for small business startups and support.

11. Tourism and Visitation: Lead and coordinate tourism and destination development efforts

12. EDSP Administration: Allocate resources and staff for planning implementation and performance tracking.

FISCAL IMPACT:

The total cost of the Economic Development Strategic Plan $144,875 utilized CED salary savings from fiscal year 2022-2023. At this time, the adoption of the plan does not have any impact to the General Fund. As we work towards implementation of the EDSP there will be additional funding requests to support implementation of the initiatives COMMITTEE RECOMMENDATION:

On May 5, 2025, the Economic Development Committee recommended approving the acceptance of the Economic Development Strategic Plan (2025) and forwarding to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Economic Development Strategic Plan (2025). #8..
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City Council, June 24, 2025
Economic Development Strategic Plan (2025)

Approved by:

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

1. Resolution

2. Economic Development Strategic Plan (2025) _Public
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06/24/2025/CED/RSolanki/Item X 1 2025-xxx

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-XXX

RESOLUTION APPROVING THE ECONOMIC DEVELOPMENT STRATEGIC PLAN (2025)
WHEREAS, the City’s last Economic Development Strategic Plan, approved in 2003; and
WHEREAS, on August 21, 2023, Modesto issued Request for Proposal INF23-04 for Economic Development Strategic Planning Services; and WHEREAS, on January 9, 2024, the City Council approved Resolution 2024-02, authorizing an agreement with the Natelson Dale Group for an amount not exceeding $144,875; and
WHEREAS, the new Plan draws on Modesto’s 2020-2025 Strategic Plan, which prioritized economic vitality alongside quality of life and governance; and WHEREAS, economic vitality goals focus on fostering a sustainable business climate, creating a recognizable city identity, and transforming downtown Modesto into a regional destination; and
WHEREAS, the Economic Development Strategic Plan (2025) provides a fiveyear strategic framework to advance the city’s economic future through intentional, inclusive, and data-informed action; and
WHEREAS, it outlines 12 key focus areas, each with specific strategies designed to improve quality of life, grow jobs, and attract investment; and WHEREAS, by integrating these plans, the new Economic Development Strategic Plan ensured a coordinated and comprehensive approach to economic development, #8..
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06/24/2025/CED/RSolanki/Item X 2 2025-xxx
maximizing the impact of each initiative and fostering a resilient and prosperous community.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Modesto approving the Economic Development Strategic Plan (2025).

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24 day of June 2025, by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

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

BY: __________________________________________
JOSE M. SANCHEZ, City Attorney
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APRIL 2025

Prepared for the City of Modesto by:

The Natelson Dale Group, Inc. (TNDG)
In association with:

Economic Growth Strategies, LLC
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TABLE OF CONTENTS

1. Introduction........................................................................................................................................ 1 Overview of the Strategic Planning Process....................................................................................................1 Essential Strengths of Modesto’s Organizational Culture...............................................................................4

2. Stakeholder Acknowledgements.......................................................................................................... 5

3. Executive Summary............................................................................................................................. 8 Action Plan Goals and Scope...........................................................................................................................8 Overview of EDSP Initiatives ...........................................................................................................................9 Sequencing of Action Plan Implementation................................................................................................. 11 “Game-changer” Initiatives.......................................................................................................................... 13 Implementation Partners............................................................................................................................. 14 Business Retention/Expansion/Attraction Targets...................................................................................... 19

4. SWOT SUMMARY.............................................................................................................................. 20

5. Highlights of Background / Technical Studies..................................................................................... 23 Demographic and Economic Overview ........................................................................................................ 23 Census-Based Demographic Profile ............................................................................................................. 23 Population and Employment Forecasts (StanCOG)...................................................................................... 25 Labor Force Data .......................................................................................................................................... 26 Taxable Sales Data........................................................................................................................................ 28 Target Industry/Cluster Analysis.................................................................................................................. 31 Overview of Employment in Modesto ......................................................................................................... 31 Existing Important Clusters in Modesto, Stanislaus County and the North San Joaquin Valley.................. 31 “Candidate” Clusters for Modesto Target Industry Program....................................................................... 40 Market Demand for Commercial/Industrial Land Uses............................................................................... 46 Summary of Retail Demand Analysis ........................................................................................................... 47 Summary of Office Demand Analysis........................................................................................................... 48 Summary of Industrial Demand Analysis ..................................................................................................... 49

6. EDSP Action Plan............................................................................................................................... 50 Overview of Action Plan............................................................................................................................... 50 Prioritization of City Resources.................................................................................................................... 51 EDSP Strategies ............................................................................................................................................ 52 Action Steps and Implementation Timeframes ........................................................................................... 54

7. Business Attraction Strategy.............................................................................................................. 72 Recommended Business Retention/Expansion/Attraction Targets............................................................. 72 Assessing Modesto from a Site Selector’s Perspective................................................................................ 76 Business Recruitment Strategy .................................................................................................................... 78

8. Tracking EDSP Progress ..................................................................................................................... 81 Appendix A: EDSP Action Plan Details by Year
Appendix B: Key Performance Indicators
Appendix C: Two-Year Goals / Performance Indicators
Cover Photo Source: "The Gallo Center for the Arts in Modesto, California." by OsotedeMonte – Licensed under CC BY 4.0 via Wikipedia.com – https://commons.wikimedia.org/wiki/File:Gallo_Center_for_the_Arts_Modesto.jpg. #8..
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CITY OF MODESTO, CA | EDSP
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1.INTRODUCTION
This document provides a strategic framework to guide the City of Modesto’s economic development policies and programs over the next 5 years. The Modesto Economic Development Strategic Plan (EDSP) is based on a comprehensive research and stakeholder input process, and reflects consensus views on the most promising opportunities and the most pressing challenges facing Modesto’s economy. While the EDSP places primary emphasis on actions and initiatives to be pursued by the City, it recognizes that a wide array of public- and private-sector entities have roles in influencing the economic vitality of Modesto. In this regard, some of the recommended actions will be carried out through partnerships with other entities. Even for those action items in which the City’s role is essentially coordination, this function can take many forms and is often critical to solving problems that may not otherwise have a clear constituency or single responsible entity assigned to resolving them.

OVERVIEW OF THE STRATEGIC PLANNING

PROCESS
The recommended policies and program activities are based on an extensive planning process that included the following components:
• An analysis of Modesto’s existing and projected demographic profile, providing an understanding of underlying trends that may affect economic growth potentials. • Direct input from a cross section of the City’s economic development stakeholders via a series of workshop-style meetings and panelist forums.
• A review of the various public- and private-sector entities involved in different aspects of economic development (or related activities).
• An industry “cluster” analysis to identify the industry groups (clusters) that are the most important “engines” of the existing local economy, as well as the industry groups that are likely to offer the most attractive growth potentials in the future.
• A real estate market analysis to identify potential future demand for commercial and industrial development in the City.

Where relevant, key findings of the background and technical studies are referenced in the EDSP.

The graphic on the next page summarizes the timeline for developing the EDSP. #8..
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CITY OF MODESTO, CA | EDSP
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As a companion document to the EDSP, the City is concurrently preparing an Economic Development Element as part of the current General Plan Update. Whereas the EDSP and the Economic Development are internally consistent and closely related, they are distinct from each other in the following respects:
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CITY OF MODESTO, CA | EDSP
PAGE | 3
Document: Economic Development
Strategic Plan (EDSP)
General Plan Economic
Development Element
Purpose: Strategic/tactical plan focused
on implementation of an
expanded economic
development program for the
City
Overarching polices (within the
context of the City’s General
Plan) that define the City’s longterm vision and priorities for economic development and
provide a policy framework that
supports implementation of
more specific documents such
as the EDSP
Planning Horizon (Timeframe): 5 years, with annual progress reporting and year-to-year
refinement of priorities
Longer-term horizon,
corresponding to the life of the
General Plan Update (typically
10-20 years)
Level of Detail: Highly detailed – intended to
provide step-by-step guidance
on implementation, with action
items focused on specific
targets
Broad policy statements that
support (and are consistent
with) more detailed documents
such as the EDSP, but which are
general enough to remain
relevant as shorter-term
strategies evolve over the life of
the General Plan
Thematic Focus: Largely focused on expanding
the economic opportunities
(i.e., job and income creation)
of Modesto residents by
attracting new business
investment and supporting the
growth of existing businesses
Largely focused on themes that
have a direct or indirect nexus
to land use and development
policies; whereas the General
Plan is focused on land and
buildings comprising the built
environment, the EDSP is more
concerned with the specific
types of industries and firms
that will occupy developed
buildings
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CITY OF MODESTO, CA | EDSP
PAGE | 4
ESSENTIAL STRENGTHS OF MODESTO’S

ORGANIZATIONAL CULTURE
Throughout the SWOT process conducted for the EDSP, participating stakeholders noted that the City of Modesto has made significant strides in recent years in improving the organizational culture for successful economic development. Key strengths in this regard include:
• The current City Council is highly engaged with and supportive of the City’s economic development program and recognizes economic development as an essential role of municipal government. • The City has a long track record of successful collaboration with a diverse range of public and private partners focused on a broad spectrum of issues influencing Modesto’s economic environment. • The City’s Community Development Department was restructured to ensure that economic development has a more prominent and visible place in the City’s organizational structure. In particular, the Department’s Engineering Services division was moved to a new Engineering Services Department to allow for more focus on economic development.
• The City has taken steps to ensure that business prospects and high-priority development projects receive “red carpet” treatment during approval and permitting processes. For example, to emphasize a culture of interdepartmental collaboration focused on expediting important development projects, the City has a instituted a practice of having “everyone [i.e., every affected department] in the room” during initial meetings with developer applicant teams.

The last point above – creating a “red carpet experience” for business and development prospects – is especially germane to the overall intent of the EDSP. Many of the EDSP recommendations relate to the topic of business and development “friendliness” and represent real opportunities for the City to continue to build on the strong organizational foundations noted above. A sharp focus on enhancing the ways the City supports the business community should ultimately be undergirded by mindset among all City staff that “economic development is everyone’s job.”
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CITY OF MODESTO, CA | EDSP

2.STAKEHOLDER

ACKNOWLEDGEMENTS
The City of Modesto gratefully acknowledges the participation of the following individuals in the preparation of the EDSP:

MEMBERS OF THE MODESTO CITY COUNCIL
Mayor Sue Zwahlen
Councilmember Rosa Escutia-Braaton, District 1
Councilmember Eric E. Alvarez, District 2
Councilmember Chris Ricci, District 3
Vice Mayor Nick Bavaro, District 4
Councilmember Jeremiah Williams, District 5
Councilmember David Wright, District 6

EDSP SUMMIT ATTENDEES
Julian Aguirre, City of Ceres
Trevin Barber, City of Modesto
Kirstie Boyett Zacharias, Modesto Chamber of Commerce
Steve Brown, Rolling F Credit Union
Ralph Carrasco
Trish Christensen, Modesto Chamber of Commerce
Elyse Christiansen, Visit Modesto
Cameron Cramer, City of Modesto
Kathryn Davis, Valley First Credit Union
Jorge De Nava, CVOC
Joe Duran, Stanislaus Equity Partners
Monica Escamilla, Digital NEST
Jessica Filbrun, Stanislaus Equity Partners, Inc.

Kyle Fliflet, Stanislaus County Health Services Agency
Monica Flinn, Opportunity Stanislaus
Doris Foster, Stanislaus County Workforce Development
Doris Foster, Stanislaus County Workforce Development
Jessica Fregoso, Central Valley Opportunity Center
Kristin Galloway, Visit Modesto
Marc Garcia, City of Modesto
Edgar Garibay, Valley Improvement Projects
Joe Gonzales, Digital NEST
Chris Hancock, Stanislaus County Workforce Development
Jody Hayes, County of Stanislaus
Maria Hernandez, Stanislaus Equity Partners
Jessica Hill, City of Modesto
Amanda Hughes, Stanislaus 2030
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CITY OF MODESTO, CA | EDSP
Margie Johnson
Terry Johnson
Rick W Jones, Central Valley Association of Realtors Government Affairs Director Marian Kaanon, Stanislaus Community Foundation
Patrick Koepele, Tuolumne River Trust
Vivian Lopez, West Modesto Community Collaborative
Tiffany Louk, GO-Biz
Anaiz Madrigal, Stanislaus Equity Partners
Tony Madrigal
Daisy Mayorga, yüda
Andrew Mendoza, Kaiser
Yolanda Meraz, Stanislaus Equity Partners
Perfecto Munoz, Stanislaus Multi Cultural Community Health Coalition West Modesto King K Chris Murphy, Sierra Pacific Warehouse Group
Aaron Nousaine, BAE Urban Economics (General Plan Consultant) Miguel Preciado, Central Valley Women's Entrepreneur Center Joanne Ramos, The Salvation Army
Tina Rocha, Stanislaus County Chief Executive Office
Jose Sabala, Oak Valley Community Bank
Shane Saunders, Mocse Credit Union
Heidi Savage, Downtown Modesto Partnership
Christine Schweininger, Valley Builders Exchange
Kevin Smith, Stanislaus Equity Partners
Raj Solanki, City of Modesto
Karen Warner, BEAM Circular
Toby Wells, City of Modesto
David White, Opportunity Stanislaus
Jeremiah Williams, City Council
David Wright, Modesto City Council
Angie Young, Stanislaus County Workforce Development
German Zavalza, Valley Sierra SBDC

REAL ESTATE SUMMIT PRESENTERS
Will Austin, Director of Market Analytics, CoStar Group Daniel Davis, SIOR, CCIM, Senior Vice President, CBRE
Victor Adjei, Asset Management, Graceada Partners
Ken K. Hira, President, Kosmont Companies

WORKFORCE DEVELOPMENT FORUM PANELISTS
Doris Foster, Director, Stanislaus County Workforce Development Rachelle Barkus, Senior Director of Educational Options, Modesto City Schools Brian Sanders, Ed.D., President, Modesto Junior College Dr. Aubrey Priest, Executive Director, Innovation and Workforce Development, California State University, Stanislaus
Damon Fugett, School Director, DeHart Technical School
Phillip Lan, President, Bay Valley Tech
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CITY OF MODESTO, CA | EDSP

ENTREPRENEURIAL DEVELOPMENT FORUM PANELISTS
Dr. Gokce Soydemir, Business Economics Professor, California State University, Stanislaus Amanda Hughes, Executive Director, Stanislaus 2030
Yolanda Meraz, Chief Strategy Officer, Stanislaus Equity Partners German Zavalza, Director, Sierra Valley SBDC
Kris Helton, Business Partner, BBSI/Central Valley Business Expo Fred Resuli, Business Partner, BBSI/Central Valley Business Expo Bob Adams, Central Valley Regional Specialist, CalOSBA
Ted Hillman, Resiliency Training Coordinator, CalOSBA

STATE POLICIES AND LEGISLATIVE AGENDAS FORUM PANELISTS
Gurbax Sahota, President & CEO, California Association for Local Economic Development Dana Ferreira, Regulatory Analyst, Modesto Irrigation District Antonio Aguilar, Central/Northern CA Outreach Manager, Small Business Majority Tiffany Louk, Central Valley Business Development Specialist, CA Business Investment Services Danna Stroud, Central California Regional Manager, GO-Biz Justin Farkas, Field Representative, Office of State Assemblymember Juan Alanis

PLACEMAKING (URBAN DESIGN AND ZONING) FORUM PANELISTS
Dan Amsden, Principal, MIG
Kimberly Garza, Founder & Principal, Atlas Lab Inc.

Heidi Savage, President & CEO, Downtown Modesto Partnership #8..
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CITY OF MODESTO, CA | EDSP

3.EXECUTIVE SUMMARY

ACTION PLAN GOALS AND SCOPE
The EDSP Action Plan is designed to achieve the following major goals:
• Expand economic opportunities for Modesto’s resident workforce • Attract firms and entrepreneurial startups in high-growth/high-wage industry clusters • Leverage the economic development potentials of Modesto’s historic downtown and waterfront areas • Revitalize Modesto’s other commercial and industrial areas • Position Modesto as a “central place” within the North San Joaquin Valley for residents, business investors, and visitors
• Strengthen the City’s fiscal position
Whereas these goals largely revolve around attracting and retaining targeted business investment, the Action Plan recognizes that the strength of the local business/development environment will ultimately depend on Modesto’s strategic attention to a range of “foundational” conditions such as:
• Modesto’s “brand”
• The City’s reputation for business/development friendliness • Land, zoning and infrastructure capacity
• Entrepreneurial development resources
• Education/workforce development systems
• Placemaking initiatives that leverage Modesto’s unique locational advantages and sense of community • The City’s organizational capacity for economic development and business support • Overall image and quality of life
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CITY OF MODESTO, CA | EDSP

OVERVIEW OF EDSP INITIATIVES
The EDSP Action Plan (detailed in Chapter 6) is organized around eleven major focus areas and a total of 22 strategy recommendations:

Foundational / Capacity Building
Focus Area 1:

Brand and Image
Recommendation 1: Upgrade City's economic development website Recommendation 2: Implement image enhancement campaign (replace negative/inaccurate perceptions with positive messaging) Focus Area 2:

Community
Engagement and
Inclusion
Recommendation 3: Include community engagement as an ongoing/core function of ED program; implement a broad community engagement plan to enhance stakeholder dialogue/trust and raise public awareness of the value of the City's ED function Recommendation 4: Integrate the practice of inclusive economic development into all aspects and phases of EDSP implementation
Focus Area 3:

Placemaking
Recommendation 5: Promote development opportunities in Downtown Recommendation 6: Implement a range of programs and policies aimed at enhancing the placemaking potentials of the Downtown and other distinct subareas (these programmatic investments would complement the development-focused investments in Recommendation 5)
Focus Area 4:

Development
Capacity and
Business
Friendliness
Recommendation 7: Expand industrial space/development capacity Recommendation 8: Promote revitalization and expansion of Modesto's commercial development footprint
Recommendation 9: Integrate City's housing-related policies/programs with economic development opportunities
Recommendation 10: Implement across-the-board improvements in Modesto business/development permitting and approval processes; promote Modesto as the "most business friendly" City in California
Focus Area 5:

Talent
Development
Recommendation 11: Establish Modesto Workforce Development Consortium (City led and coordinated) to facilitate regular information exchange of among partners Recommendation 12: Develop City-specific support services to supplement partner-led workforce development programs
Focus Area 6:

Regional
Collaboration
Recommendation 13: Position Modesto as a leader in BEAM Circular initiative; maximize Modesto's capture of opportunities generated by BEAM Circular Recommendation 14: Leverage small business support system being launched by Stanislaus 2030 (Small Business Strategy and Implementation Roadmap) Recommendation 15: Leverage research and strategic framework of North Valley Thrive (NVT)
Recommendation 16: Actively collaborate with regional partners to improve region-wide conditions related to state/federal regulations and funding, essential infrastructure, and program delivery
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CITY OF MODESTO, CA | EDSP
Business Development / Job Creation
Focus Area 7:

Entrepreneurship
and Innovation
Recommendation 17: Establish City Office of Entrepreneurism and Innovation with an overall mission of maximizing local access to business startup resources and positioning Modesto as the premiere North Valley location for technology-oriented entrepreneurial ventures
Focus Area 8:

Business Attraction
and Recruitment
Recommendation 18: Implement business attraction program focused on targeted industries in "traded" clusters
Recommendation 19: Implement retail/restaurant tenant attraction program Focus Area 9:

Business Retention
and Expansion
(BRE)
Recommendation 20: Implement "boots on the ground" business retention/expansion (BRE) program to identify "red flags" for businesses needing retention/expansion services; customize assistance package based on challenges/opportunities facing identified firms Focus Area 10:

Small Business
Development
Recommendation 21: Implement small business startup and assistance program (separate and distinct from entrepreneurial development programming) Focus Area 11:

Tourism and
Visitation
Recommendation 22: Lead coordination of various organizations and initiatives focused on expanding tourism (and visitor-related real estate development) in Modesto Focus Area 12:

EDSP
Administration
Recommendation 23: Allocate staff time for initial and ongoing EDSP administration #8..
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CITY OF MODESTO, CA | EDSP
Sequencing of Action Plan Implementation
The figure on the next page introduces considerations for how the EDSP might proceed from a business-plan point of view. Beginning with the Brand and Image process, relationships with regional programs begin to be positioned, and community engagement initiated, while promotional materials are put in place for various purposes. City administrative actions and other functional details would come later, parallel with regional collaboration efforts and associated multiple programmatic considerations. #8..
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CITY OF MODESTO, CA | EDSP
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CITY OF MODESTO, CA | EDSP
“Game-changer” Initiatives
Gamechanger #1: Planting the Modesto flag in the Bioeconomy Valley Bioeconomy Valley: The regional BEAM Circular initiative has the potential to fundamentally transform and elevate the North San Joaquin Valley’s economy. Modesto should stake its claim as the capital city of the Bioeconomy Valley. Initiatives should include creating a Memorandum of Understanding with BEAM Circular, memorializing a long term commitment to support initiatives (innovation center, R&D facilities, etc.) to increase the presence of BEAM Circular programs, activities, and investments. The City should convene an International Bioeconomy Development Opportunity (BDO) Zone Conference. Most of the meetings are currently done by Zoom. Modesto could secure sponsors and investors to bring BDO communities (and private sector BDO leaders) to a conference discuss common challenges, opportunities, etc. This would provide the opportunity for Modesto to be viewed as the center of this industry and showcase ground-level opportunities. To further establish Modesto as a credible “player” in the bioeconomy and related opportunities such as climate adaptive technology development, it is recommended that Modesto (in partnership with Stanislaus County) develop an Integrated Multi-Jurisdictional Climate Action, Adaptation, and Resiliency Plan (ICAARP).

Gamechanger #2: Job and Wealth Creation through Talent Development Remote Tech Jobs as a Catalyst for Business Attraction and Startups: Modesto is uniquely positioned to capture medical and technology jobs in the City. Partnering with existing Modesto organizations, such as Bay Valley Tech and Valley Consortium for Medical Education, the City can grow and retain a local workforce that can provide remote work to technology companies and meet the demand of the growing needs in the local health care industry. The increase of trained workforce in these areas would position the City as a leader and can be leveraged to attract companies to the City. The City should create a strategy with these types of existing partners for a goal to train and retain a certain number of residents in these industries.

Gamechanger #3: Leveraging City Resources to Maximize Downtown’s Destination Potentials Downtown Catalyst Project: The City should explore opportunities for positioning underutilized land in the Downtown for development of hotels and other visitor-oriented facilities. As an initial pilot or catalyst project, the City should consider seeking EDA funding for a joint venture project to pursue high-impact development opportunities aligned with the City’s overall strategic objectives for the Downtown. #8..
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CITY OF MODESTO, CA | EDSP

IMPLEMENTATION PARTNERS
The table below lists the various non-City entities that will potentially support implementation of the EDSP.

Organizations / Focus Areas
Brand and ImageCommunity Engagement and InclusionPlacemakingDevelopment Capacity and Business FriendlinessTalent DevelopmentRegional CollaborationEntrepreneurship and InnovationBusiness Attractionand RecruitmentBusiness Retention and Expansion (BRE)Small Business SupportTourism and VisitationEDA Administration 1 2 3 4 5 6 7 8 9 10 11 12
City of Modesto
Economic Development L L S L C C L L L L L L
Community Development S L S S S S S S S
City Manager's Office S S S S S S S
Media & Communications S S S
Planning C S S
Engineering Services C S
Police Department S S S
Parks, Recreation, & Neighborhoods S S S
Contractors/Consultants
Branding/Marketing Consultant S S S
Retail Consultant S S S
Real Estate S S S
Partners
Bay Valley Tech S S
BEAM Circular S S S

CALED S S
California Chamber of Commerce S S
California State University, Stanislaus S S
Central Valley Business Expo S
DeHart Technical School S
Downtown Modesto Partnership S S S
East Stanislaus RCD S S
Role Legend
Role Coordination Lead Support
Role Code C L S
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CITY OF MODESTO, CA | EDSP
Organizations / Focus Areas
Brand and ImageCommunity Engagement and InclusionPlacemakingDevelopment Capacity and Business FriendlinessWorkforce DevelopmentRegional CollaborationEntrepreneurship and InnovationBusiness Attractionand RecruitmentBusiness Retention and Expansion (BRE)Small Business SupportTourism and VisitationEDA Administration 1 2 3 4 5 6 7 8 9 10 11 12
Partners
HealthForce Partners S
Latino Chamber of Commerce S
Latino Community Roundtable S
Manufacturers Council of the Central
Valley S S S S
Modesto Chamber of Commerce S S S S S
Modesto City Schools S
Modesto Development Roundtable S
Modesto Irrigation District S S
Modesto Junior College S
Modesto Neighborhoods, Inc. S

NAACP S
North Valley Thrive Steering Committee S
Opportunity Stanislaus S S S S S S S
River Partners S S S
Small Business Majority S S
South Modesto Neighborhoods S
South West Modesto MAC S
Stanislaus 2030 S S S
Stanislaus County S S S
Stanislaus County Workforce
Development S
Stanislaus Equity Partners S
State (CalBIS, GO-Biz) S S
State (CalOSBA) S S
State Senate and Assembly Offices S S S S
Role Legend
Role Coordination Lead Support
Role Code C L S
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CITY OF MODESTO, CA | EDSP
Organizations / Focus Areas
Brand and ImageCommunity Engagement and InclusionPlacemakingDevelopment Capacity and Business FriendlinessWorkforce DevelopmentRegional CollaborationEntrepreneurship and InnovationBusiness Attractionand RecruitmentBusiness Retention and Expansion (BRE)Small Business SupportTourism and VisitationEDA Administration 1 2 3 4 5 6 7 8 9 10 11 12
Partners
Tuolumne River Trust S S S
University of California, Merced S S
University of the Pacific S
Valley Consortium for Medical
Education S
Valley Sierra SBDC S S
Visit Modesto S S S
Role Legend
Role Coordination Lead Support
Role Code C L S
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CITY OF MODESTO, CA | EDSP
Partnerships in economic development always need tending, but this is especially true in Modesto given the wealth of regional programs with which the City will be interfacing in the EDSP. Specifically:
• Partners have recognized enough common purpose, in challenges as well as opportunities, that a robust regional ecosystem for economic development has emerged. • While the advantages of such regionalism are generally self-evident, to both the partnering entities and prospective/active funders, most entities in these arrangements also have histories of competitive rivalries.
• Nevertheless, potential benefits to Modesto include:
o Having the groundwork already in place for numerous Modesto strategic objectives. o Regional programs provide additional validation for parallel Modesto objectives.

To maximize these benefits the City will need to:
o Establish its preferred positions within the range of goals, strategies, and action steps of the various programs. This includes consideration of how to maximize the interactions among strategies, which would be readily integrated within an independently derived and implemented strategic plan for Modesto. The Gamechanger programs in the EDSP are relevant in this regard. o Assume active roles where possible, including financial support if necessary to maintain decisionmaking involvement. o Monitor closely the proceedings, leadership choices, policy directions and actions, etc. of regional programs and provide continuous input.
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CITY OF MODESTO, CA | EDSP
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CITY OF MODESTO, CA | EDSP

BUSINESS RETENTION/EXPANSION/ATTRACTION

TARGETS
The EDSP recommends that Modesto focus its business retention/expansion/attraction efforts on the following industry clusters:

Potential Business Retention/Expansion/Attraction Targets for Modesto Industry Cluster Potential Areas of Focus for Modesto
Agribusiness and Food
Processing
Agribusiness
• Sustainable Practices
• Technological Advancements
• Changing Consumer Preferences
• AgTech Development
Food Processing
• Technological Innovation
• Sustainability
• Health and Wellness
• Convenience Foods
Advanced Manufacturing • Digital Transformation
• Sustainability / Climate Adaptive Technology
• Reshoring and Localization
• Advanced Materials
• Workforce Development (invest in training to create competitive advance and as an incentive to businesses considering a Modesto location)
Healthcare and Biotechnology • Personalized Medicine
• Telehealth and Remote Monitoring
• Biotechnology Innovations
• Technological Advancements
• Increased Funding and Investments
• Agricultural Biotechnology
Tourism, Hospitality and Retail With a growing population and increasing tourism, retail stores, restaurants, and hotels can do well. Enhancing the local tourism infrastructure can further boost this sector. Enhancing tourism infrastructure and promoting local attractions can boost the hospitality industry and bring in additional revenue.

Technology and Professional
Services
As the city continues to develop, there is a growing need for IT services, consulting firms, and other professional services. In Modesto, this sector can benefit from the proximity to major tech hubs like the Bay Area. #8..
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CITY OF MODESTO, CA | EDSP

4. SWOT SUMMARY
The technical studies and stakeholder input provided the basis for identification of important SWOT (strengthweakness-opportunity-threat) factors affecting Modesto’s economic development potentials. Highlights of the SWOT analysis are provided below.

Strengths
• Strong base of core industries (agriculture, food processing, logistics, manufacturing, healthcare) • Affordable housing (compared to other parts of California) • Competitive costs of doing business in a business-friendly environment • Low unemployment rates of resident workforce
• Strong commercial/industrial real estate markets (retail, office and industrial vacancy rates under 5%) • Innovative workforce development programs and resources • Established arts/entertainment community (one of the few cities in the U.S. that has all of the following:
opera, symphony orchestra, and ballet)
• Highest participation rate nationally in “National Night Out” • Concentration of NPO's based in Modesto (prospective partners for ED and community engagement) • Established (and expanding) collaboration with regional partners for ED programs • Proximity to "superstar tech hub" (Bay Area / Silicon Valley) • Water availability and competitive pricing (independent district) • Current City Council is recognized as engaged with and supportive of ED • Close knit community combining small town feel with larger-city opportunities • Distinctive residential neighborhoods
Weaknesses
• Image problem: Modesto is not perceived by outsiders as an attractive place to live or visit • Lack of amenities makes Modesto an unattractive residential option for young professionals • Lack of housing diversity
• Lack of shovel-ready industrial land
• Lack of awareness (in business community) of available assistance resources • Disconnect between workforce development programs and private industry/employers • Disconnect between City's business assistance resources and the communities that most need them • Perception that City does not do enough to engage underserved communities #8..
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CITY OF MODESTO, CA | EDSP
• Mobility (transit) options are limited
• Low educational attainment of Modesto's resident population (20.5% of residents have Bachelor’s degrees, compared to statewide average of 37.0%)
• Stanislaus County lags in “business dynamism” (i.e., Stanislaus underperforms peer regions in terms of creation and sustainability of new ventures)
• Modesto’s taxable retail sales growth has not kept pace with county and state growth rates, suggesting that “leakage” of resident spending has grown over time • Persistent homelessness problem
Opportunities
• Build on major ED-related initiatives currently underway in region (BEAM Circular, Stanislaus 2030, North Valley Thrive)
• Position Modesto to maximize capture of opportunities generated by regional initiatives (BEAM Circular, etc.)
• Position Modesto as visitor destination / entertainment district • Leverage Modesto's unique placemaking opportunities (Downtown, waterfront) • Focus program resources to take Downtown Modesto to the "next level" as a visitor destination and housing option – positioning Downtown as the City’s “living room” • Leverage the potential economic development benefits of pending "catalyst development projects" (e.g., ACE train, new courthouse, potential sports stadium, etc.) • Continue to improve Modesto's reputation for business/development friendliness • Launch major initiative on entrepreneurism/innovation (through partnerships and local resources) • Grow industry "clusters" around historic core industries • Position climate resilience initiatives as business development opportunities • Bioeconomy Development Opportunity (BDO) Zone designation (regional) • Growing acceptance of remote work (allowing Bay Area workers to live in Modesto) • Expand business assistance outreach (and Spanish language support) to BIPOC communities • Leverage emerging regional models/frameworks for inclusive ED • Pursue "food culture" development as a business/tourism opportunity • Support the evolution of retail shopping centers consistent with current market trends • Leverage City-owned real estate for development (potentially requiring City to consider strategic acquisitions of new property and/or partnerships with private landowners) • Train Modesto residents as remote tech workers (for jobs based in Bay Area) #8..
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• Promote ED potentials of major pending investments (e.g., ACE Train, transit center, courthouse) • Expand use of virtual ED services (and services provided through partnerships) Threats
• Outdated perception that Modesto's development approval process is cumbersome and political • State-level regulations that are unfavorable to business attraction • County-level regulations/restrictions on business
• Global evolution of the retail industry (impacts of e-commerce) • Conversion of employment land to housing
• Potential proliferation of homelessness (especially in high-visibility areas such as the Downtown) • Climate change (and the cost of adapting to new regulations) #8..
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5.HIGHLIGHTS OF BACKGROUND /

TECHNICAL STUDIES

DEMOGRAPHIC AND ECONOMIC OVERVIEW
Census-Based Demographic Profile
The following data were obtained from the U.S. Census Bureau, American Community Survey (ACS) 5-year estimates (2018-22). Data are provided for primarily the City of Modesto, Stanislaus County the State of California, as well as selected benchmark cities: Bakersfield, Clovis, Elk Grove, Fresno, Merced, Roseville, Sacramento, Stockton, Tracy, Tulare, and Visalia.

Median Household Income Levels. Figure 1 provides a summary of median household income levels for the referenced geographies. The City’s median household income level ($73,375) is slightly lower than the average level in the benchmark cities and in Stanislaus County.

FIGURE 1. CENSUS DATA ON MEDIAN HOUSEHOLD INCOME –

MODESTO, STANISLAUS COUNTY, CALIFORNIA, AND BENCHMARK CITIES Source: U.S. Census Bureau, 2018-2022 American Community Survey 5-Year Estimates; TNDG.

Housing Ownership. Figure 2 provides a summary of the share of owner-occupied versus renter-occupied housing units for the referenced geographies. Modesto has a higher share of owner-occupied housing units (57.7%) than renter-occupied housing units (42.3%). Modesto’s proportion of owner-occupied units (57.7%) is somewhat lower than the countywide average (60.5%) and somewhat higher than the statewide average (55.6%). $73,375 $74,872
$91,905
$84,238
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Modesto Stanislaus CA Benchmark Cities
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FIGURE 2. CENSUS DATA ON HOUSING TYPES –

MODESTO, STANISLAUS COUNTY, CALIFORNIA, AND BENCHMARK CITIES Source: U.S. Census Bureau, 2018-2022 American Community Survey 5-Year Estimates; TNDG.

Educational Attainment. Figure 3 provides a summary of educational attainment (Bachelors degree or higher, population 25 years and over) for the referenced geographies. About 20.5% of the City is in the Bachelor’s degree or higher category, below the shares in all but two of the benchmark cities. Similarly, Modesto outperforms the rest of Stanislaus County, where only 18.8% of those above 25 hold a Bachelor’s degree or higher.

FIGURE 3. CENSUS DATA ON EDUCATIONAL ATTAINMENT –

MODESTO, STANISLAUS COUNTY, CALIFORNIA, AND BENCHMARK CITIES Source: U.S. Census Bureau, 2018-2022 American Community Survey 5-Year Estimates; TNDG.

57.7% 60.5%

55.6% 55.8%

42.3% 39.5%

44.4% 44.2%
0%
10%
20%
30%
40%
50%
60%
70%
Modesto Stanislaus CA Benchmark Cities
Owner-Occupied Renter-Occupied

20.5% 18.8%

37.0%

28.6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Modesto Stanislaus CA Benchmark Cities
Bachelor's degree or higher
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Population and Employment Forecasts (StanCOG)
Table 1 and Table 2 below show demographic and employment forecasts for the City of Modesto, Stanislaus County, as well as Fresno, Kern, Merced, and San Joaquin Counties. The table shows absolute and percentage growth rate projections (households and employment) for the 2019-2035 and 2035-2050 periods. The projections in Table 1 come from Stanislaus County of Governments’ Demographic and Employment Forecast, while those in Table 2 are from the respective counties’ Council of Governments Forecasts.

Table 1 shows that Modesto’s households are projected to grow relatively slower over the first 15-year period (2020-2035), with the City projected to add just over 10,704 households during this period. This growth is slightly below the rate of Stanislaus County, which is expected to have 16.1% household growth over that period.

Similarly, between 2035-2050, Modesto’s households are expected to grow by 9.04%, while the County’s households are expected to grow by 10.54%.

TABLE 1. REGIONAL GROWTH PROJECTIONS:

MODESTO AND STANISLAUS COUNTY (2019-35 AND 2035-50)
Area
2020-35 2035-50
# Change % Change # Change % Change
Households
Modesto 10,704 14.37% 7,702 9.04%
Stanislaus County 28,861 16.10% 21,935 10.54%
Employees
Modesto 15,650 14.85% 9,475 7.83%
Stanislaus County 38,373 16.10% 25,893 9.36%
Source: Stanislaus Council of Governments; TNDG.

Compared to the counties containing the benchmark cities, Stanislaus County’s expected household growth of

16.1% between 2020-2035 and 10.54% between 2035-2050 is relatively low, as only Fresno County is expected to have less relative household growth during both periods.

Similarly, Stanislaus County’s forecasted employee growth of 16.1% is relatively low between 2020-2035, with only Kern County expected to have less relative growth during that period. However, between 2035-2050, the County’s expected employee growth of 9.36% sits at the middle of the five counties’ forecasts. #8..
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TABLE 2. REGIONAL GROWTH PROJECTIONS:

SELECTED COMPARISON COUNTIES (2019-35 AND 2035-50)
Area
2020-35 2035-50
# Change % Change # Change % Change
Households
Stanislaus County 28,861 16.10% 21,935 10.54%
Fresno County 43,014 13.61% 21,405 5.96%
Kern County 45,251 16.58% 43,896 13.80%
Merced County 21,694 24.51% 22,083 20.04%
San Joaquin County 42,841 17.91% 30,245 10.73%
Employees
Stanislaus County 38,373 16.10% 25,893 9.36%
Fresno County 69,600 18.55% 30,200 6.79%
Kern County 33,754 9.90% 27,467 7.33%
Merced County 14,896 18.16% 19,128 19.74%
San Joaquin County 55,206 16.68% 41,265 10.69%
Source: Stanislaus Council of Governments, Fresno County Council of Governments, Kern Council of Governments, University of the Pacific, San Joaquin Council of Governments; TNDG.

Labor Force Data
The BLS provides unemployment rate estimates through its Local Area Unemployment Statistics (LAUS) program.

Figure 4 below provides annual average unemployment rate estimates for Modesto, Stanislaus County, and California for the 10-year period from 2013 to 2022. Table 3 and Table 4 on the following page provide the same for the benchmark cities. As shown in the figure and table below, all geographies experienced a similar trend in unemployment rates during this period. Due to the coronavirus pandemic, all evaluated geographies experienced a significant increase in unemployment rates, with Modesto experiencing a significant increase (5.6 percentage points between 2019 and 2020). However, by 2022, the unemployment rate in Modesto had fallen all the way back to below 2019 levels (4.9% in 2022), lower than Stanislaus County’s rate but relatively high compared to the benchmark cities (only four cities higher than Modesto in 2022). #8..
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FIGURE 4. UNEMPLOYMENT RATE ESTIMATES:

MODESTO, STANISLAUS COUNTY, AND CALIFORNIA (2015-22)
Source: Bureau of Labor Statistics (BLS), Local Area Unemployment Statistics (LAUS) program; TNDG.

TABLE 3. UNEMPLOYMENT RATE ESTIMATES: MODESTO AND SELECTED COMPARISON CITIES (2015-22) Area
Average Annual Unemployment Rate (%)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Modesto 12.8 11.1 9.4 7.8 6.8 5.9 5.5 11.1 8 4.9
Bakersfield 10.6 9.4 9.2 7.8 6.5 5.6 5.3 11.4 7.9 4.8
Clovis 10.5 9.1 7.9 5.3 4.6 4.0 3.8 8.0 5.4 3.3
Elk Grove 10.5 9.1 7.9 5.3 4.6 4.0 3.8 8.0 5.4 3.3
Fresno 14.5 12.7 11.1 7.7 6.8 5.9 5.8 11.1 8.2 5.0
Merced 13.9 12.3 10.8 8.6 7.7 6.9 6.8 11.8 9.2 6.4
Roseville 7.4 6.0 4.8 4.2 3.7 3.0 3.0 7.5 4.9 3.0
Sacramento 9.5 7.8 6.4 5.5 4.8 4.0 3.8 9.9 7.3 4.1
Stockton 13.4 11.5 9.7 9.1 8.1 7.1 6.9 13.1 9.9 6.0
Tracy 10.6 9.0 7.5 5.7 4.8 3.9 3.8 9.8 6.5 3.6
Tulare 12.4 11.3 9.9 7.0 6.5 6.1 6.0 10.5 8.1 5.2
Visalia 11.8 10.8 9.4 6.2 5.5 5.0 5.1 10.0 6.9 4.3
Source: Bureau of Labor Statistics (BLS), Local Area Unemployment Statistics (LAUS) program; TNDG. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Modesto 12.8 11.1 9.4 7.8 6.8 5.9 5.5 11.1 8 4.9
Stanislaus County 13.1 11.3 9.6 8.6 7.5 6.5 6.1 11.0 8.3 5.4 California 9.0 7.6 6.3 5.5 4.8 4.2 4.1 10.1 7.3 4.2
Modesto
Stanislaus County
California
0 2
4 6
8 10
12 14
Unemployment Rate (%)
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FIGURE 4. UNEMPLOYMENT RATE ESTIMATES:

MODESTO AND SELECTED COMPARISON CITIES, 2022
Source: Bureau of Labor Statistics (BLS), Local Area Unemployment Statistics (LAUS) program; TNDG.

Taxable Sales Data
Table 5, below, provides retail taxable sales data, as provided by the CDTFA, for the City of Modesto between 2015 and 2022 (the most recent year for which data are available). As shown in the table, City-wide taxable retail sales have increased by about $630 million during this period, or by 28.8%. Food Services and Drinking Places and Gasoline Stations experienced the most significant relative increases, with sales increasing by 44.7% and 78.3%, respectively.

TABLE 5. TAXABLE RETAIL SALES ($000S), CITY OF MODESTO, 2015-22 Category 2015 2017 2019 2021 2022 % Change
Motor Vehicle and Parts Dealers 246,567 252,304 225,114 287,959 285,297 15.7% Home Furnishings and Appliance
Stores 137,561 153,682 155,334 179,746 154,258 12.1%
Building Material and Garden
Equipment and Supplies Dealers 154,052 172,798 177,144 229,818 208,333 35.2% Food and Beverage Stores 149,024 155,484 160,002 189,237 190,114 27.6% Gasoline Stations 200,713 211,768 258,243 280,349 357,969 78.3% Clothing and Clothing
Accessories Stores 260,777 261,562 262,974 312,711 294,789 13.0% General Merchandise Stores 434,676 439,803 432,202 498,672 497,746 14.5%

2.0 2.5

3.0 3.5

4.0 4.5

5.0 5.5

6.0 6.5

7.0 2022 Unemployment Rate (%)
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Category 2015 2017 2019 2021 2022 % Change
Food Services and Drinking
Places 366,841 403,575 434,472 485,841 530,905 44.7%
Other Retail Group 239,830 239,772 244,262 304,882 301,592 25.8% Total Retail and Food Services 2,190,042 2,290,749 2,349,747 2,769,215 2,821,003 28.8% Source: California Department of Tax and Fee Administration (CDFTA); TNDG.

Figure 5 on the next page, compares Modesto’s taxable retail sales performance relative to Stanislaus County and California. The figure normalizes the base year sales data (2015 = 100) to provide relevant comparisons among the five geographies. As discussed above, the 2022-year value of 129 implies that Modesto’s taxable retail sales increased by 29% during this period, the least significant increase compared to the other two geographies. #8..
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FIGURE 5. TAXABLE SALES TRENDS: MODESTO, STANISLAUS COUNTY, AND CA, 2015-2022 Source: CDTFA; TNDG.

Modesto
129
Stanislaus
151
California
137
70 80
90 100
110
120
130
140
150
160
2015 2016 2017 2018 2019 2020 2021 2022
Index 2015 = 100
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TARGET INDUSTRY/CLUSTER ANALYSIS
This section provides a summary of industry growth/retraction trends in Modesto, comparing the local economy’s recent and longer-term performance to regional and national benchmarks. The study breaks down the local economy in terms of industry “clusters.” Clusters are groups of inter-related industry sectors whose growth potentials within a region tend to be closely aligned. The tendency of individual industries to co-locate in clusters reflects linkages through supply-chain relationships, as well as commonalities in terms of workforce requirements and infrastructure needs.

Overview of Employment in Modesto
Total current (2023) employment in the Modesto area (“Modesto”) is estimated at 117,149 jobs The local clusters currently represent a total of 93,895 jobs in Modesto, while the traded clusters account for 29,115 jobs. Total cluster employment adds up to slightly more than total employment given that some industries are included in more than one cluster1
.

Whereas local and traded clusters are both critically important components of a balanced economy, they have distinct roles and characteristics, and these distinctions can be helpful in terms of planning economic development programs. Some of these distinctions are summarized as follows:
• Local clusters typically form the core of a region’s economy; they primarily provide goods and services for the local (resident) population. They tend to account for the majority of jobs in a region (in the case of Modesto, local clusters represent about 76% of total jobs), and support a high quality of life by ensuring the availability of a diverse range of goods and services. In Modesto, important local clusters include Local health Services and Local Hospitality Establishments. These clusters account for about 23% of Modesto’s total jobs.
• Traded clusters are “export-oriented” in the sense that they include industries that are engaged in producing goods and services for end customers outside the region. Traded clusters account for about 24% of the jobs in Modesto, and are especially important from an economic development perspective given that they tend to have higher wages and higher “multiplier impacts” compared to local clusters.

That is, they have a strong potential to inject new dollars into the local economy and thereby serve as “drivers” for broader economic growth. In Modesto, important traded clusters include Distribution and Electronic Commerce, Food Processing and Manufacturing and Agricultural Inputs and Services. These three clusters account for about 60% of Modesto’s total jobs in traded clusters.

Existing Important Clusters in Modesto, Stanislaus County and the North San Joaquin Valley
Table 6 lists all traded clusters that had 200 or more jobs in Modesto in 2023, and provides the following information about each listed cluster:
• Total number of jobs in Modesto in 2023 (the latest full year for which data are available) 1 EMSI has made some adjustments to the cluster definitions to account for changes in the NAICS industry structure between 2012, 2017, and 2022 NAICS industry definitions.
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• Location quotient (compared to U.S. benchmark) in 2023. The location quotient (LQ) measures how concentrated/important an industry cluster is in a region compared to national benchmarks. An LQ value greater than 1.0 indicates that a cluster is more concentrated in the region than it is nationally. This is generally regarded as an indication that the region has a comparative advantage relative to a particular cluster, although (especially for local clusters) an LQ below 1.0 can indicate a potential growth opportunity.
• Average annual wage for jobs in Modesto2

• Change in the number of jobs for the most recent 10-year period, 2013-2023 Table 7 provides the same data for local clusters that had more than 3,000 jobs in Modesto in 2023. Tables 8 through 11 provide comparable data for Stanislaus County and the North San Joaquin Valley (North SJV) region (Stanislaus, San Joaquin and Merced Counties combined). For the Stanislaus County summary tables, the jobs threshold is 500 for traded clusters and 5,000 for local clusters. For the North SJV summary tables, the jobs threshold is 1,500 for traded clusters and 10,000 for local clusters.

Tables 12 and 13 summarize cluster job growth/retraction performance in Modesto, Stanislaus County, and the North SJV region compared to national trends. This part of the study is based on a “shift-share” analysis for each cluster that estimates an “expected” job change based on national trends. If Modesto (or Stanislaus County or the North SJV region) has higher job growth (or experiences less severe job losses) compared to the expected change, it indicates that the local area (Modesto, Stanislaus County, or the North SJV region) has performed better than national trends. Conversely, if Modesto/Stanislaus County/North SJV region has less job growth (or experiences more severe job losses) compared to the expected change, it indicates that the specific region has performed worse than national trends.

TABLE 6. SUMMARY CHARACTERISTICS AND TRENDS, MODESTO’S LARGEST TRADED CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 200 JOBS IN 2023)
Traded Cluster Jobs LQ County
LQ*
Avg Ann
Wage
10-Yr Job
Change
Food Processing and Manufacturing 8,089 8.9 8.0 98,449 1,386 Distribution and Electronic Commerce 6,412 1.0 1.0 78,235 551 Agricultural Inputs and Services 2,880 2.2 5.8 64,051 (88) Business Services 2,735 0.3 0.3 96,902 (245)
Education and Knowledge Creation 1,981 0.4 0.5 65,774 294 Downstream Metal Products 883 2.6 1.8 92,537 (168)
Transportation and Logistics 637 0.4 0.8 80,842 (424)
Hospitality and Tourism 588 0.3 0.4 34,621 (134)
Financial Services 587 0.4 0.3 126,741 (78)
Plastics 564 1.2 0.7 95,219 220
Marketing, Design, and Publishing 386 0.3 0.2 59,250 (91) Wood Products 363 1.2 1.5 68,161 155
Furniture 357 1.3 1.0 61,614 75
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Traded Cluster Jobs LQ County
LQ*
Avg Ann
Wage
10-Yr Job
Change
Performing Arts 344 0.6 0.4 41,299 89
Construction Products and Services 320 0.5 0.5 105,995 208 Printing Services 214 0.8 0.6 86,403 (6)
Production Technology and Heavy Machinery 209 0.3 0.8 84,480 (30) GROUP TOTAL / AVG 27,548 0.87 1.01 $83,972 1,713
CITY TOTAL 117,419 N/A N/A $72,249 18,706
Note: LQ = Location Quotient; 10-year job change is from 2013 to 2023. *County LQ provided for comparison purposes. “—” = insufficient data.

Source: U.S. Cluster Mapping Project; EMSI;TNDG.

TABLE 7. SUMMARY CHARACTERISTICS AND TRENDS, MODESTO’S LARGEST LOCAL CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 3,000 JOBS IN 2023)
Local Cluster Jobs LQ County
LQ*
Avg Ann
Wage
10-Yr Job
Change
Local Health Services 17,664 1.3 1.1 116,261 3,885
Local Hospitality Establishments 10,639 1.1 1.1 33,098 1,602 Local Community and Civic Organizations 9,380 2.3 1.5 28,442 2,512 Local Real Estate, Construction, and Development 8,761 0.9 1.0 72,399 1,317 Local Education and Training 8,236 1.3 1.6 83,120 3,713 Local Commercial Services 7,295 1.0 0.8 56,895 656
Local Food and Beverage Processing and Distribution 6,348 1.3 1.2 51,661 388 Local Motor Vehicle Products and Services 4,472 1.3 1.2 64,308 1,155 Local Government Services 4,120 1.0 1.2 116,946 1,714
Local Retailing of Clothing and General Merchandise 4,101 1.2 1.2 38,365 (773) Local Personal Services (Non-Medical) 3,784 1.0 1.1 39,358 1,050 GROUP TOTAL / AVG 84,799 1.23 1.14 $68,515 17,220
CITY TOTAL 117,419 N/A N/A $72,249 18,706
Note: LQ = Location Quotient; 10-year job change is from 2013 to 2023. *County LQ provided for comparison purposes.

Source: U.S. Cluster Mapping Project; EMSI; TNDG.
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TABLE 8. SUMMARY CHARACTERISTICS AND TRENDS, STANISLAUS COUNTY’S LARGEST TRADED CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 500 JOBS IN 2023)
Traded Cluster Jobs LQ
Avg
Ann
Wage
10-Yr
Job
Change
Agricultural Inputs and Services 14,227 5.8 64,370 (1,190) Food Processing and Manufacturing 13,447 8.0 95,220 2,026 Distribution and Electronic Commerce 11,785 1.0 79,156 2,404 Education and Knowledge Creation 4,710 0.5 73,000 342
Business Services 4,066 0.3 98,589 (183)
Transportation and Logistics 2,343 0.8 81,385 (79)
Livestock Processing 1,768 2.4 48,394 (37)
Hospitality and Tourism 1,527 0.4 35,281 71
Paper and Packaging 1,227 2.6 102,375 181
Downstream Metal Products 1,143 1.8 90,821 (135)
Production Technology and Heavy Machinery 1,002 0.8 80,473 192 Financial Services 855 0.3 122,828 (101)
Wood Products 814 1.5 68,761 363
Marketing, Design, and Publishing 641 0.2 63,166 (78)
Construction Products and Services 615 0.5 105,052 352
Plastics 590 0.7 94,303 238
Furniture 510 1.0 62,085 128
GROUP TOTAL / AVG 61,269 1.05 $79,440 4,496
REGION TOTAL 219,114 N/A $71,278 31,287
Note: LQ = Location Quotient; 10-year job change is from 2013 to 2023.

Source: U.S. Cluster Mapping Project; EMSI; TNDG.
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TABLE 9. SUMMARY CHARACTERISTICS AND TRENDS, STANISLAUS COUNTY’S LARGEST LOCAL CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 5,000 JOBS IN 2023) Local Cluster Jobs LQ Avg Ann
Wage
10-Yr Job
Change
Local Health Services 26,648 1.1 107,932 4,819
Local Hospitality Establishments 20,255 1.1 30,975 4,960 Local Education and Training 18,407 1.6 83,824 3,881
Local Real Estate, Construction, and Development 18,116 1.0 74,578 4,101 Local Community and Civic Organizations 11,130 1.5 30,465 2,562 Local Food and Beverage Processing and Distribution 10,808 1.2 49,854 1,237 Local Commercial Services 10,463 0.8 57,554 1,306
Local Government Services 8,871 1.2 116,946 866
Local Motor Vehicle Products and Services 7,595 1.2 62,000 1,651 Local Personal Services (Non-Medical) 7,173 1.1 39,998 1,848 Local Retailing of Clothing and General Merchandise 7,110 1.2 38,423 (679) Local Logistical Services 5,566 1.3 71,686 1,052
GROUP TOTAL / AVG 152,144 1.15 $67,996 27,604
REGION TOTAL 219,114 N/A $71,278 31,287
Note: LQ = Location Quotient; 10-year job change is from 2013 to 2023.

Source: U.S. Cluster Mapping Project; EMSI; TNDG.
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TABLE 10. SUMMARY CHARACTERISTICS AND TRENDS, NORTH SJV REGION’S LARGEST TRADED CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 1,500 JOBS IN 2023) Traded Cluster Jobs LQ
Avg
Ann
Wage
10-Yr
Job
Change
Distribution and Electronic Commerce 56,160 1.7 72,525 26,885 Agricultural Inputs and Services 44,645 6.4 60,562 (2,965) Food Processing and Manufacturing 25,125 5.2 91,704 3,537 Education and Knowledge Creation 14,106 0.6 75,248 331
Business Services 12,788 0.3 93,904 1,099
Transportation and Logistics 9,996 1.2 82,535 2,537
Livestock Processing 5,742 2.8 55,990 445
Hospitality and Tourism 5,172 0.4 37,608 1,044
Downstream Metal Products 3,147 1.7 91,898 536
Paper and Packaging 2,325 1.7 95,203 617
Production Technology and Heavy Machinery 2,274 0.6 78,807 760 Financial Services 2,208 0.3 119,791 50
Plastics 2,120 0.8 88,187 555
Wood Products 2,119 1.4 74,443 821
Construction Products and Services 1,952 0.5 103,696 759 Marketing, Design, and Publishing 1,927 0.3 67,957 (256) Automotive 1,769 0.4 97,703 420
GROUP TOTAL / AVG 193,576 1.15 $74,851 37,176
REGION TOTAL 624,797 N/A $70,081 121,179
Note: LQ = Location Quotient; 10-year job change is from 2013 to 2023.

Source: U.S. Cluster Mapping Project; EMSI; TNDG.
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TABLE 11. SUMMARY CHARACTERISTICS AND TRENDS, NORTH SJV REGION’S LARGEST LOCAL CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 10,000 JOBS IN 2023) Local Cluster Jobs LQ Avg Ann
Wage
10-Yr Job
Change
Local Health Services 60,987 0.9 99,998 7,951
Local Hospitality Establishments 49,702 1.0 29,638 12,054 Local Education and Training 49,447 1.5 87,655 9,795
Local Real Estate, Construction, and Development 47,848 1.0 77,084 12,577 Local Food and Beverage Processing and Distribution 31,164 1.2 51,815 5,157 Local Commercial Services 29,756 0.8 56,048 5,981
Local Community and Civic Organizations 29,006 1.3 30,537 7,965 Local Government Services 24,296 1.2 113,149 2,710
Local Logistical Services 22,250 1.9 68,772 9,568
Local Motor Vehicle Products and Services 20,439 1.1 62,789 3,972 Local Retailing of Clothing and General Merchandise 19,717 1.1 39,195 (321) Local Personal Services (Non-Medical) 19,169 1.0 38,936 4,712 Local Household Goods and Services 10,081 0.9 48,692 1,017 GROUP TOTAL / AVG 413,861 1.07 $66,049 83,137
COUNTY TOTAL 624,797 N/A $70,081 121,179
Note: LQ = Location Quotient; 10-year job change is from 2013 to 2023.

Source: U.S. Cluster Mapping Project; EMSI; TNDG.
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TABLE 12. JOB GROWTH/RETRACTION PERFORMANCE COMPARED TO NATIONAL TRENDS FOR LARGEST TRADED

CLUSTERS, MODESTO, STANISLAUS COUNTY, AND NORTH SJV REGION 2013-23 Growth Performance Based on Shift Share Analysis Traded Cluster Modesto Stanislaus County North SJV
Aerospace Vehicles and Defense
Agricultural Inputs and Services
Apparel
Automotive
Biopharmaceuticals
Business Services
Coal Mining
Communications Equipment and Services
Construction Products and Services
Distribution and Electronic Commerce
Downstream Chemical Products
Downstream Metal Products
Education and Knowledge Creation
Electric Power Generation and Transmission
Environmental Services
Financial Services
Fishing and Fishing Products
Food Processing and Manufacturing
Footwear
Forestry
Furniture
Hospitality and Tourism
Information Technology and Analytical Instruments
Insurance Services
Jewelry and Precious Metals
Leather and Related Products
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2013-23 Growth Performance Based on Shift Share Analysis Traded Cluster Modesto Stanislaus County North SJV
Lighting and Electrical Equipment
Livestock Processing
Marketing, Design, and Publishing
Medical Devices
Metal Mining
Metalworking Technology
Music and Sound Recording
Nonmetal Mining
Oil and Gas Production and Transportation
Paper and Packaging
Performing Arts
Plastics
Printing Services
Production Technology and Heavy Machinery
Recreational and Small Electric Goods
Textile Manufacturing
Tobacco
Trailers, Motor Homes, and Appliances
Transportation and Logistics
Upstream Chemical Products
Upstream Metal Manufacturing
Video Production and Distribution
Vulcanized and Fired Materials
Water Transportation
Wood Products
Note: " + " = growth performance better than expected; " - " worse than expected.

Source: U.S. Cluster Mapping Project; EMSI; TNDG.
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TABLE 13. JOB GROWTH/RETRACTION PERFORMANCE COMPARED TO NATIONAL TRENDS FOR LARGEST LOCAL

CLUSTERS, MODESTO, STANISLAUS COUNTY, AND NORTH SJV REGION 2013-23 Growth Performance Based on Shift Share Analysis Local Cluster Modesto Stanislaus County North SJV
Local Commercial Services
Local Community and Civic Organizations
Local Education and Training
Local Entertainment and Media
Local Financial Services
Local Food and Beverage Processing and Distribution
Local Government
Local State Government Services
Local Federal Government Services
Local Health Services
Local Hospitality Establishments
Local Household Goods and Services
Local Industrial Products and Services
Local Logistical Services
Local Motor Vehicle Products and Services
Local Personal Services (Non-Medical)
Local Real Estate, Construction, and Development
Local Retailing of Clothing and General Merchandise
Local Utilities
Note: " + " = growth performance better than expected; " - " worse than expected.

Source: U.S. Cluster Mapping Project; EMSI; TNDG.
“Candidate” Clusters for Modesto Target Industry Program Table 14 provides a list of candidate clusters for the City of Modesto’s industry targeting program (i.e., business retention, expansion and attraction). The candidate clusters are based on two strategic approaches to industry targeting:

1. Build on Modesto’s existing core strengths. Modesto’s existing strengths were identified based on the employment-trend criteria (location quotient, total existing jobs, and 10-year job change). In addition, the #8..
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analysis identifies “emerging” clusters that have experienced positive growth trends, as identified in the Shift-Share Analysis summary on Tables 12 and 13.

2. Tap into dominant regional clusters that are not currently well represented in Modesto. This strategic approach would seek to leverage Modesto’s competitive strengths to capture increasing shares of projected employment growth in the surrounding region Stanislaus County and the larger North SJV Region. This component of the County’s business attraction/marketing program would focus on Modesto’s unique “selling points” relative to the larger regional economy (including the city’s strategic location in Stanislaus County, along with a resident workforce that includes large numbers of commuters potentially eager to work closer to home). In developing the list of candidates for the second strategy, the consultant has focused on clusters meeting the following criteria:
a. Traded clusters (local clusters are addressed in the first strategic approach) b. Clusters with a high specialization of employment in Stanislaus County and the North SJV c. Clusters primarily oriented towards private business investment (in contrast to clusters that are substantially composed of government/nonprofit employment – which are generally considered to have lower economic “spin-off” opportunities)
Table 15 provides a narrative description of the candidate clusters. In addition, the table provides key component industries within each cluster based on employment totals for each industry in the relevant geographies.

TABLE 14. PRELIMINARY LIST OF POSSIBLE TARGET INDUSTRIES (CLUSTERS) FOR MODESTO Strategic Approach Local-Serving Clusters "Traded" Clusters

1. Build on Modesto’s existing
dominant strengths and
emerging clusters
• Local Commercial Services
• Local Community and Civic
Organizations
• Local Education and Training
• Local Food and Beverage
Processing and Distribution
• Local Government Services
• Local Health Services
• Local Hospitality Establishments
• Local Motor Vehicle Products and
Services
• Local Personal Services (NonMedical)
• Agricultural Inputs and Services
• Distribution and Electronic
Commerce
• Downstream Metal Products
• Food Processing and
Manufacturing
• Furniture
• Plastics
• Upstream Chemical Products
• Wood Products

2. Tap into dominant/emerging
regional clusters that are not
currently well represented in
Modesto
• Livestock Processing
• Paper and Packaging
• Transportation and Logistics
• Construction Products and
Services
Source: TNDG.
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TABLE 15. NARRATIVE DESCRIPTIONS AND KEY COMPONENT INDUSTRIES

FOR PRELIMINARY LIST OF CANDIDATE CLUSTERS
Cluster Narrative Description Key Component Industries
Group 1 – Modesto – Existing Core and Emerging Strengths Agricultural Inputs
and Services
This cluster includes establishments primarily engaged
in farming and related services. Farming includes soil
preparation, planting, cultivation, harvest, fertilizer creation, and post-harvest activities. It also includes services that supply farm labor, support for animal
production, and additional operations management.
• Farm Labor and Crew
Leaders
• Crop Production
• Animal Production
• Postharvest Crop Activities
(except Cotton Ginning)
• Soil Preparation, Planting,
and Cultivating
Distribution and
Electronic
Commerce
This cluster consists primarily of traditional
wholesalers as well as mail order houses and
electronic merchants. The companies in this cluster
mostly buy, hold, and distribute a wide range of
products such as apparel, food, chemicals, gasses,
minerals, farm materials, machinery, and other
merchandise. The cluster also contains firms that
support distribution and electronic commerce
operations, including packaging, labeling, and
equipment rental and leasing.
• General Warehousing and
Storage
• Warehouse Clubs and
Supercenters
• Pharmacies and Drug
Retailers
• Refrigerated Warehousing
and Storage
Downstream Metal
Products
This cluster contains establishments that manufacture
metal containers, prefabricated metal structures, and
end user metal products. These end user products
include ammunition, kitchenware, hardware, metal
bathroom fixtures, and similar metal products used in
home finishing such as doors, windows and
ornamentation.
• Metal Can Manufacturing
• Prefabricated Metal
Building and Component
Manufacturing
• Metal Window and Door
Manufacturing
Food Processing and
Manufacturing
This cluster includes firms involved in the processing
of raw food materials and the manufacturing of
downstream food products for end users. This
includes millers and refineries of rice, flour, corn,
sugar, and oilseeds. These upstream products
contribute in part to producing specialty foods, animal foods, baked goods, candies, teas, coffees, beers,
wines, other beverages, meats, packaged fruits and
vegetables, and processed dairy products.
• Wineries
• Fruit and Vegetable
Canning
• Other Snack Food
Manufacturing
• Roasted Nuts and Peanut
Butter Manufacturing
• Dried and Dehydrated
Food Manufacturing
• Fluid Milk Manufacturing
Furniture This cluster contains establishments that manufacture furniture, cabinets, and shelving for residential homes and offices. It also includes establishments that
produce manufactured homes. The products in this
• Nonupholstered Wood
Household Furniture
Manufacturing
• Wood Kitchen Cabinet and
Countertop Manufacturing
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Cluster Narrative Description Key Component Industries
cluster can be made of wood, metal, plastic, and/or
textiles.

Local Commercial
Services
This cluster contains local professional establishments that provide legal services, accounting services,
temporary help, and office administrative activities.

This cluster also contains building support and security services, commercial printing and sign making,
professional laundry services (including drycleaning),
testing laboratories, and office supply stores.
• Temporary Help Services
• Janitorial Services
• Other Accounting Services
• Offices of Lawyers
• Security Guards and Patrol
Services
Local Community
and Civic
Organizations
Establishments in this cluster primarily consist of local social service organizations such as community food
and housing services and advocacy organizations. This
cluster also contains grantmaking foundations,
business associations, and political and religious
organizations.
• Services for the Elderly and
Persons with Disabilities
• Religious Organizations
• Other Individual and
Family Services
• Child and Youth Services*
• Civic and Social
Organizations*
Local Education and
Training
Establishments in this cluster include local educational institutions. These include schools for elementary and
secondary education, technical and vocational
training, fine arts instruction, as well as automobile
driving.
• Elementary and Secondary
Schools (Local
Government)
• Elementary and Secondary
Schools
• Vocational Rehabilitation
Services
• Other Technical and Trade
Schools
Local Food and
Beverage Processing
and Distribution
This cluster contains firms that sell food and
beverages at the wholesale and retail levels. Products
sold include meat, seafood, fruit and vegetables,
general groceries, tobacco, alcoholic beverages, and
specialty foods. The cluster also includes related
distribution methods such as vending and direct
selling.
• Supermarkets and Other
Grocery (except
Convenience) Stores
• All Other General
Merchandise Retailers
• Pharmacies and Drug
Retailers
• Beer, Wine, and Liquor
Retailers
Local Government
Services
N/A • Local Government,
Excluding Education and
Hospitals
Local Health
Services
Firms in this cluster include local health care
establishments and services such as hospitals, medical
laboratories, home and residential care, and funeral
services and crematories. This cluster also includes
pharmacies and optical goods retail stores
• General Medical and
Surgical Hospitals
• HMO Medical Centers
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Cluster Narrative Description Key Component Industries
• Offices of Physicians
(except Mental Health
Specialists)
Local Hospitality
Establishments
Establishments in this cluster primarily consist of local hospitality establishments that serve food and
beverages (alcoholic and non-alcoholic), as well as
recreational facilities including country clubs, fitness clubs, and bowling centers. This cluster also contains
gift and souvenir retail stores.
• Full-Service Restaurants
• Limited-Service
Restaurants
• Snack and Nonalcoholic
Beverage Bars
• Fitness and Recreational
Sports Centers
Local Motor Vehicle
Products and
Services
Establishments in this cluster consist of local motor
vehicle wholesalers and dealers, as well as auto repair services, gas stations, parking lots, car washes, and
vehicle towing.
• New Car Dealers
• Motor Vehicle Towing
• Automotive Parts and
Accessories Retailers
• Gasoline Stations with
Convenience Stores
• New Car Dealers*
• General Automotive
Repair*
• Automotive Body, Paint,
and Interior Repair and
Maintenance*
Local Personal
Services (NonMedical)
Establishments in this cluster provide local personal
services including self-service laundry, hair care,
photofinishing, repair services, and child care. This
cluster also contains pet stores and retail stores for
certain personal merchandise such as cosmetics.
• All Other General
Merchandise Retailers
• Beauty Salons
• Child Day Care Services
• Veterinary Services
Plastics Establishments in this cluster manufacture plastic materials, components, and products. The plastics
and foams are manufactured for packaging, pipes,
floor
• All Other Plastics Product
Manufacturing
• Plastics Bottle
Manufacturing
Upstream Chemical
Products
This cluster consists of firms that manufacture basic
organic and inorganic chemicals and gases. The
chemicals are usually separate elements that could be
used as inputs for more complex downstream
chemical products.
• All Other Basic Organic
Chemical Manufacturing
• Pesticide and Other
Agricultural Chemical
Manufacturing
• Plastics Packaging Film and
Sheet (including
Laminated) Manufacturing
Wood Products The establishments in this cluster are primarily engaged in making upstream wood materials and
manufacturing non-furniture wood products.

Upstream
• Wood Container and Pallet
Manufacturing
• Engineered Wood Member
Manufacturing
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Cluster Narrative Description Key Component Industries
Group 2 – Dominant/Emerging Regional Clusters
Construction
Products and
Services
The establishments in this cluster supply construction
materials, components, products, and services.

Construction materials and components include those
• Water Supply and
Irrigation Systems
• Industrial Building
Construction
• Power and Communication
Line and Related
Structures Construction
• Other Heavy and Civil
Engineering Construction
Livestock Processing This cluster contains establishments engaged in processing meat from livestock and livestock
wholesaling.
• Poultry Processing
• Meat Processed from
Carcasses
Paper and
Packaging
This cluster contains the paper mills and
manufacturers of paper products used for shipping,
packaging, containers, office supplies, personal
products, and
• Corrugated and Solid Fiber
Box Manufacturing
• Other Paperboard
Container Manufacturing
Transportation and
Logistics
This cluster contains all air, rail, bus, and freight
transportation services. It also includes related
operation services and support activities such as
inspections,
• General Freight Trucking,
Long-Distance, Truckload
• Rail Transportation
• Freight Transportation
Arrangement
• Other Support Activities
for Road Transportation
• Specialized Freight (except
Used Goods) Trucking,
Long-Distance
Source: U.S. Cluster Mapping Project; TNDG.
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MARKET DEMAND FOR

COMMERCIAL/INDUSTRIAL LAND USES
As part of the EDS process, The Natelson Dale Group, Inc. (TNDG) completed a real estate market analysis to provide 10-year forecasts of demand for new retail, office, and industrial space in Modesto. Tables 16 through 18 on the following pages provide an abbreviated summary of the market analysis (which is more fully documented in a separate report). Given the wide range of variables that can affect development opportunities over an extended timeframe, the demand projections for office and industrial land uses are presented in terms of ranges (rather and single definitive forecasts) of potential building absorption.

Market Factors Industrial Office Retail
Market
strengths/
opportunities
for Modesto
• Potential to capture demand
“overflow” from strong
Stanislaus County industrial
market and North San
Joaquin Valley (SJV) industrial
market
• Global demand surge for
industrial space due to ecommerce growth
• Potential repatriation of outcommuting workers could generate demand for
industrial tenants
• Potential nexus to
entrepreneurial
development initiatives /
target clusters
• Potential repatriation
of out-commuting
workers could create
office-using firms
• Potential to position
Modesto as a center
for medical-office
related space
• Potential to position
Modesto as a location
for shared office space
attractive to “hybrid”
remote workers
• Potential nexus to
entrepreneurial
development
initiatives
• Established/
prominent retail
destination within
Stanislaus County
• Potential to leverage
downtown as visitor
destination (and an
attractor of expanded
regional demand for
retail/restaurant
spending)
Market Factors Industrial Office Retail
Market
challenges for
Modesto
• Lack of available/competitive
industrial space inhibits
business attraction,
especially for growing
logistics-type space
• Limited land/zoning capacity
for additional business park
facilities (need to focus on
redevelopment/repurposing
of existing underutilized
properties)
• Remote work trend
may reduce overall
demand for new office
space
• Modesto is unproven
as a Class A Office
Market
• Global trends are
reducing footprint of
brick-and-mortar retail
(causing spike in long
term vacancies)
• Need to proactively
plan for reuse / repurpose older retail
properties (e.g., vacant
strip centers and
vacant big box stores)
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Summary of Retail Demand Analysis
Table 16, below, provides a summary of potential demand for new retail space in the trade area’s PMA. The demand projections are provided from 2023 (base year in this analysis) to 2034, the study period evaluated in this analysis.

TABLE 16. POTENTIAL DEMAND FOR NEW SQUARE FEET OF RETAIL SPACE IN MODESTO (ALL NUMBERS ARE CUMULATIVE)
Retail Category 2023 2025 2029 2034
GAFO1 categories 970,039 1,015,916 1,109,403 1,229,585
Food and Beverage 7,279 21,454 50,335 87,454
Food Services and Drinking 4,545 18,449 46,789 83,234
Bldg. Matrl. And Garden Equip. and Supplies 16,480 21,273 31,038 43,585 Auto Parts 10,840 12,047 14,505 17,664
Services Space at 15% of Total 178,091 192,201 220,953 257,916 Total 1,187,275 1,281,341 1,473,023 1,719,437
Incremental Demand (2023-25) 94,066 285,749 532,163

1. GAFO is a retail industry acronym for the shopper goods retail categories: General Merchandise, Apparel, Furniture/Appliances, Other Specialty
Source: TNDG, Land Use Market Study.

As shown on Table 16, above, the City is currently (base year 2023) estimated to be able to support about 1.2 million square feet of retail space over and above existing development levels. This estimate is based on comparing total demand potential with actual retail sales in the city to determine the extent to which there is current residual demand (or “leakage”) that could support the development of new retail space in the city.

Accounting for future growth in the market, the City could support about 1.7 million square feet of new retail space by 2034.

The table also shows the incremental demand for new retail space between 2023 and 2034, which is estimated at about 532,000 square feet. As discussed further the Land Use Market Study, this projection provides the more realistic amount of new retail space that could be developed in the City by 2034. #8..
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Summary of Office Demand Analysis
Highlights of the office demand analysis and projections are provided in Table 17 below. As shown in the table, the City is projected to be able to support between 798,400 (baseline forecast) and 848,300 (aggressive forecast) square feet of new office space. The baseline forecast assumes a City capture rate of 80% of Stanislaus County office space demand, while the aggressive forecast assumes an 85% capture rate. The baseline scenario reflects a continuation of existing trends (Modesto currently accounts for about 80% of County office space), while the aggressive scenario assumes the City accounts for an increasing share of new office space demand in the County.

TABLE 17. OFFICE DEMAND PROJECTIONS, CITY OF MODESTO (2024-2034) Demand Variable Amount
Existing Office in Modesto: 8,863,767
Projected Demand for New Space in Stanislaus County, 2024-2034: 998,000 Modesto Share of Stanislaus County Demand:
-- Baseline Forecast 80%
-- Aggressive Forecast 85%
Projected Demand for New Space, Modesto:
-- Baseline Forecast 798,400
-- Aggressive Forecast 848,300
Sources: TNDG, Land Use Market Study.
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Summary of Industrial Demand Analysis
Highlights of the analysis and projections are provided in Table 18 below. As shown in the table, the City is projected to be able to support between 2.7 million (baseline forecast) and 3.0 million (aggressive forecast) square feet of new industrial space. The baseline forecast assumes a City capture rate of 50% of Stanislaus County industrial space demand, while the aggressive forecast assumes a 55% capture rate. The baseline scenario reflects a continuation of existing trends (Modesto currently accounts for about 52% of County office space), while the aggressive scenario assumes the City accounts for an increasing share of new office space demand in the County.

TABLE 18. INDUSTRIAL DEMAND PROJECTIONS, CITY OF MODESTO (2024-2034) Demand Variable Amount
Existing Industrial in Modesto: 59,756,285
Projected Demand for New Space in Stanislaus County, 2024-2034: 5,479,000 Modesto Share of Stanislaus County Demand:
-- Baseline Forecast 50%
-- Aggressive Forecast 55%
Projected Demand for New Space, Modesto:
-- Baseline Forecast 2,739,500
-- Aggressive Forecast 3,013,450
Sources: TNDG, Land Use Market Study.
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6.EDSP ACTION PLAN

OVERVIEW OF ACTION PLAN
The EDSP Action Plan is designed to achieve the following major goals:
• Expand economic opportunities for Modesto’s resident workforce by fostering creation of a diverse range of quality jobs accessible to residents across the spectrum of education/skill levels • Leverage the economic development potentials of Modesto’s historic downtown and waterfront areas through placemaking initiatives and targeted business/development attraction • Revitalize Modesto’s other commercial and industrial areas by encouraging private investment that responds to anticipated real estate market demand
• Strengthen the City’s fiscal position by attracting land uses and business types that have the potential to generate General Fund revenue
Whereas these goals largely revolve around attracting and retaining targeted business investment, the Action Plan recognizes that the strength of the local business/development environment will ultimately depend on Modesto’s strategic attention to a range of “foundational” conditions such as:
• Modesto’s “brand”
• The City’s reputation for business/development friendliness • Land, zoning and infrastructure capacity
• Entrepreneurial development resources
• Education/workforce development systems
• Placemaking initiatives that leverage Modesto’s unique locational advantages and sense of community • Overall image and quality of life
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PRIORITIZATION OF CITY RESOURCES
The EDSP is intended to provide a “roadmap” to guide activities and programs of the City’s economic development function over the next five years (FY 2025-20256 through FY 2030-2031). As such, the Action Plan is intended to assist the City in aligning its program priorities to match the market opportunities identified during this planning effort. Whereas the Action Plan covers an ambitious range of economic development activities, the overall program recommendations reflect the following assumptions:
• The City’s existing economic development staff (6.0 FTE housed within the Community and Economic Development Department) will have primary responsibility for implementing the Action Plan, which may require adjustment of existing duties and/or augmentation of staffing levels over time; • Some of the proposed strategies involve activities that the City is already undertaking to some extent, so they are not all new commitments;
• New activities/programs could be phased-in over several years; and • Consistent with existing practices, most of the strategies would be carried out in collaboration with various non-City partner organizations (many of which have participated in the development of this plan). #8..
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EDSP Strategies
The EDSP Action Plan is organized around eleven major focus areas and a total of 22 strategy recommendations:
outlined below and detailed on the following pages/tables.

Foundational / Capacity Building
Focus Area 1:

Brand and Image
Recommendation 1: Upgrade City's economic development website Recommendation 2: Implement image enhancement campaign (replace negative/inaccurate perceptions with positive messaging) Focus Area 2:

Community
Engagement and
Inclusion
Recommendation 3: Include community engagement as an ongoing/core function of ED program; implement a broad community engagement plan to enhance stakeholder dialogue/trust and raise public awareness of the value of the City's ED function Recommendation 4: Integrate the practice of inclusive economic development into all aspects and phases of EDSP implementation
Focus Area 3:

Placemaking
Recommendation 5: Promote development opportunities in Downtown Recommendation 6: Implement a range of programs and policies aimed at enhancing the placemaking potentials of the Downtown and other distinct subareas (these programmatic investments would complement the development-focused investments in Recommendation 5)
Focus Area 4:

Development
Capacity and
Business
Friendliness
Recommendation 7: Expand industrial space/development capacity Recommendation 8: Promote revitalization and expansion of Modesto's commercial development footprint
Recommendation 9: Integrate City's housing-related policies/programs with economic development opportunities
Recommendation 10: Implement across-the-board improvements in Modesto business/development permitting and approval processes; promote Modesto as the "most business friendly" City in California
Focus Area 5:

Talent
Development
Recommendation 11: Establish Modesto Workforce Development Consortium (City led and coordinated) to facilitate regular information exchange of among partners Recommendation 12: Develop City-specific support services to supplement partner-led workforce development programs
Focus Area 6:

Regional
Collaboration
Recommendation 13: Position Modesto as a leader in BEAM Circular initiative; maximize Modesto's capture of opportunities generated by BEAM Circular Recommendation 14: Leverage small business support system being launched by Stanislaus 2030 (Small Business Strategy and Implementation Roadmap) Recommendation 15: Leverage research and strategic framework of North Valley Thrive (NVT)
Recommendation 16: Actively collaborate with regional partners to improve region-wide conditions related to state/federal regulations and funding, essential infrastructure, and program delivery
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Foundational / Capacity Building
Business Development / Job Creation
Focus Area 7:

Entrepreneurship
and Innovation
Recommendation 17: Establish City Office of Entrepreneurism and Innovation with an overall mission of maximizing local access to business startup resources and positioning Modesto as the premiere North Valley location for technology-oriented entrepreneurial ventures
Focus Area 8:

Business Attraction
and Recruitment
Recommendation 18: Implement business attraction program focused on targeted industries in "traded" clusters
Recommendation 19: Implement retail/restaurant tenant attraction program Focus Area 9:

Business Retention
and Expansion
(BRE)
Recommendation 20: Implement "boots on the ground" business retention/expansion (BRE) program to identify "red flags" for businesses needing retention/expansion services; customize assistance package based on challenges/opportunities facing identified firms Focus Area 10:

Small Business
Development
Recommendation 21: Implement small business startup and assistance program (separate and distinct from entrepreneurial development programming) Focus Area 11:

Tourism and
Visitation
Recommendation 22: Lead coordination of various organizations and initiatives focused on expanding tourism (and visitor-related real estate development) in Modesto Focus Area 12:

EDSP
Administration
Recommendation 23: Allocate staff time for initial and ongoing EDSP administration Entrepreneurial Development and Small Business Development: Overlap and Distinctions Small businesses and entrepreneurial startups are both important parts of a thriving economy, but they are not synonymous with each other. The EDSP addresses their unique needs through two separate programs:

Recommendation 17 relates to entrepreneurial development and Recommendation 21 relates to small business assistance. Small businesses, as defined in the context of municipal economic development, are typically independently owned companies focused on serving primarily a local clientele (e.g., small storefront retail, restaurant and service businesses). Small businesses are important in that they can create busine and employment opportunities for local residents, generate sales tax, and have placemaking value by virtue of providing a range of goods and services that have a “hometown flavor.” Entrepreneurial ventures typically start small (sometimes just the founder) but since they are often concentrated in technology-oriented industries with national or global market potential, they can ultimately “scale” to become much larger employers. As such, their needs for programmatic support are quite different from the needs of small businesses in terms of worker training, access to capital, site location assistance, and overall growth strategy.

Recommendation 21 would leverage (and locally supplement) Stanislaus 2030’s focus on small business creation.

As currently conceived, Stanislaus 2030 would not specifically focus on technology startups – hence the potential need for a more significant City-level investment in entrepreneurial development support (Recommendation 17). #8..
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Action Steps and Implementation Timeframes
Within the 11 major focus areas on the Action Plan tables that follow there are 23 Recommendations, each with associated action steps, all of which are intended to be implemented over the next five years. The recommended implementation timeframe for each action item is provided on the tables below, based on the following color coding:

Gold = Year 1
Green = Year 2
Purple = Year 3 or later

BRAND AND IMAGE
1 Upgrade City's economic development website
Brief Description of Recommendation
The economic development website will be a key component of asserting a positive image for the City on the part of any interested parties, as well as providing information for them, including prospective investors. The two implied components of this recommendation are 1) to generate the upgraded website, and 2) to establish a system for monitoring and maintaining its currency and relevancy.

Action Steps
1a Update and expand ChooseModesto.com website to align with EDSP programs and priorities; position ChooseModesto.com as the primary online presence of the City's ED program (ED page on City's main website should redirect to ChooseModesto.com)
1b Continually update/enhance website to provide more data resources and information to Modesto business community and potential investors
Other Potential Implementation Tools/Investments
Professional marketing agency (with economic development expertise) Year 1 Milestones/Checklist
• Website(s) aligned to EDSP; content updated weekly
2 Implement image enhancement campaign (replace negative/inaccurate perceptions with positive messaging)
Brief Description of Recommendation
This recommendation will require addressing a broad range of issues, beginning with the image/perception of the San Joaquin Valley generally, as well as Modesto's place in the Valley. The messaging will help illustrate how Modesto can leverage its proximity to the “superstar” tech hub of Silicon Valley and the Bay Area generally. Growth activity and its associated data (with growth representing one of the distinguishing features of Modesto and the region) will also need to embody the relationship of growth to enduring value propositions of the City and region. Other points to consider addressing include:
• Leveraging North San Joaquin Valley's recent BDO Zone Designation (as part of a larger list of assets). • Positioning Modesto as a residential option for remote workers tied to tech jobs in Bay Area (and data can probably show that this is happening already).
• Promoting Modesto's water availability and competitive pricing as a significant "selling point" for business attraction (also as part of the data set).
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BRAND AND IMAGE
• Consider messaging (e.g., banner program) and special events specifically aimed at promoting community pride.

Action Steps
2a Establish branding taskforce to identify specific misconceptions and/or negative images to be addressed; define focused list of assets/selling points to be included in messaging 2b Engage professional branding/marketing firm to design image enhancement campaign 2c Develop process/metrics for annually measuring the impact of the branding investment 2d Implement image enhancement campaign based on steps 2a-2c above 2e Sustain and expand branding/marketing budget annually during full term of EDSP implementation Other Potential Implementation Tools/Investments
Professional marketing agency (with economic development expertise) Year 1 Milestones/Checklist
• Facilitate 2 meetings with taskforce
• Completed image enhancement campaign (ready to be launched in Year 2)

COMMUNITY ENGAGEMENT AND INCLUSION
3 Include community engagement as an ongoing/core function of ED program; implement a broad community engagement plan to enhance stakeholder dialogue/trust and raise public awareness of the value of the City's ED function
Brief Description of Recommendation
This recommendation will in part build off of Recommendation #2, the image enhancement campaign, by communicating to stakeholders how promotional efforts are being handled, and how that benefits the local business community as well as residents. It would also have ties to the overall public relations efforts within the City. It may be appropriate to inaugurate this activity (and/or observe it annually) with a special event targeted to stakeholders.

Action Steps
3a Actively manage and expand City's economic development contact list(s); use database to promote mutually-beneficial connections between ED/WFD organizations, industry, jobseekers, other community stakeholders and the general public (City has already initiated contract with Salesforce for CRM platform)
3b Coordinate with other front-facing City departments to merge database and CRM for efficiencies and quality customer service.
3c Distribute monthly electronic newsletter (highlighting ED programs and success stories) to all contacts 3d Utilize regional/partner channels as tools for City's ED messaging (these channels might include, for example, the North Valley Thrive newsletter and distribution list, regional events where City could have a presence, Chamber of Commerce networking opportunities, etc.) 3e Increase presence of ED staff at community events to raise public awareness of this important municipal function; consider organizing special events specifically aimed at promoting community pride
3f Annualize stakeholder engagement events launched as part of the EDSP process (e.g., ED Summit, Central Valley Real Estate Summit, topical partner forums); position these events as corporate sponsorship opportunities
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3g Report to Modesto City Council (or Economic Development Committee) on a regular (e.g., quarterly) basis to keep economic development issues "top of mind" and to receive direction on priorities; tie reporting to performance measures established for EDSP
3h In order to engage young professionals in ED-related civic affairs, organize inaugural networking and social event (potentially in partnership with Chamber of Commerce, CSU Stanislaus, and/or UC Merced)
3i Based on results of inaugural event, organize follow-up events 1-2 times per year to engage young professionals in City's ED messaging
Other Potential Implementation Tools/Investments
Contact management software, configured for multiple categories of stakeholders Year 1 Milestones/Checklist
• Staff memorandum documenting database management procedures • 6 newsletters in Year 1
• Articles placed in 5-10 partner newsletters (or other media) • Attend 4 events in Year 1
• Organize CV Real Estate Summit and Workforce Development Forum • 4 reports to EDC in Year 1
4 Integrate the practice of inclusive economic development into all aspects and phases of EDSP implementation
Brief Description of Recommendation
Although applicable throughout the EDSP, this recommendation affects some aspects of the EDSP more significantly than others, including:
• Business retention/expansion (BRE) strategies and activities. • Identifying, and tracking in performance measures, those industry promotional activities that relate to job needs associated with all communities.
• Ensuring that NPOs are part of stakeholder outreach/involvement in future EDSP updates. This also relates to North Valley Thrive initiatives.

Action Steps
4a Implement marketing/outreach effort to raise awareness of business support resources (especially in underserved and underrepresented communities); create and promote "library of resources"; engage local NPO's as partners in reaching underserved communities 4b Expand Spanish language resources and outreach for business startup/assistance programs 4c Conduct baseline study of economic conditions of Modesto's BIPOC communities; establish metrics to annually track changes in these conditions as the EDSP is implemented and resources are prioritized Other Potential Implementation Tools/Investments
Creative systems to address language barriers
Year 1 Milestones/Checklist
• Online "Library of Resources" completed, with selected elements translated into Spanish • Baseline study completed (by staff, potentially with consultant support) #8..
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PLACEMAKING
5 Promote development opportunities in Downtown
Brief Description of Recommendation
This key recommendation embodies many objectives, both directly (Downtown and waterfront revitalization) and indirectly (expanding business base, promoting tourism, expanding housing supply options, and promoting creative use of land). It can serve as the linchpin for raising the profile of Modesto as a visitor destination. With these many facets, it will be important to coordinate this recommendation with other aspects of the EDSP, and also with other community assets, present and future (e.g., Children's Museum, Graffiti Museum). Activities within this recommendation that support visitor attractions can also be positioned not just as investments in tourism but also as amenities that promote quality of life and community pride for residents. Revitalization efforts would also support the City achieving its RHNA goals. Among the technical challenges in this work will be planning for future floodproofing while applying a visionary approach to the unfolding issue of possible floodplain change.

Action Steps
5a Convene City-led working group for "Activating Downtown Modesto" (this working group could be coconvened by the Downtown Modesto Partnership) 5b Through working group, engage with development community to define "action agenda" for promoting housing as a core focus of DT placemaking; action agenda should identify targeted housing types, key opportunity sites, and incentives/policies that would encourage housing production in the DT
5c Prioritize implementation of Downtown Master Plan (particularly as it relates to potential catalyst projects and mixed-use zoning designations); build on the Plan's implementation framework based on EDSP priorities (and the working group's recommendations) 5d Promote development of co-working (i.e., shared office) and co-housing facilities in the Downtown, potentially as part of future mixed-use development project(s) 5e Update City Capital Improvement Program (CIP) to leverage grant funding for utility infrastructure upgrades
5f Encourage redevelopment/catalyst projects in Downtown; define City actions/roles for supporting the following redevelopment goals for the Downtown:
• Redevelopment of the Courthouse
• Approve two new mixed-use projects
• Approve 50 new housing units
• Attract one new business headquarters
• Support bio-industrial testbed in partnership with BEAM Circular 5g Comprehensively review development policies (zoning, etc.) affecting DT and remove any barriers to targeted development types
5h Implement retail/restaurant tenant attraction program focused on Downtown (see also Recommendation 19)
5i Promote transit-oriented development (TOD), consistent with opportunities and priorities identified by DT working group
5j Investigate potentials for relocating/ expanding farmer's market (and larger open-air market concept) to "flood plain" riverfront area (the feasibility of this concept may depend on mitigation of flood risks before any expanded use of this area occurs)
5k Create master plan for riverfront development/use (tie to DT placemaking efforts) #8..
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PLACEMAKING
5l Complete infrastructure to implement Quiet Zones
5m Implement an Enhanced Infrastructure Financing District (EIFD) in partnership with the County Other Potential Implementation Tools/Investments
Downtown Master Plan (2020): https://www.modestogov.com/2404/Downtown-Master-Plan Year 1 Milestones/Checklist
• Facilitate 3 meetings with working group
• Meetings with 6 developers
• Staff memorandum defining recommended ongoing roles of ED staff in supporting DTMP implementation • Meetings with 6 developers
6 Implement a range of programs and policies aimed at enhancing the placemaking potentials of the Downtown and other distinct subareas (these programmatic investments would complement the development-focused investments in Strategy Recommendation 5) Brief Description of Recommendation
Regional-level considerations will also be integral to this multi-faceted recommendation. For example, in the NVT Strategic Plan (Strategy Area 5: Placemaking and Amenities), “Enhancing the region's quality of life through the development of culturally relevant amenities, events, and programs is a key focus. This strategy includes developing an Arts, Culture, and Creative Economy Plan, and a Regional Node/Corridor Plan to promote sustainable growth, connectivity, and economic vitality while enhancing the experience economy across the region.” The NVT Plan also embodies concepts of how strategies can “enhance the region's climate resilience, address longstanding challenges, and ensure inclusive access for all residents and visitors.” In this sense, regional programs can leverage local acceptance of a broad approach to working with this recommendation’s multiple objectives. Locally, the recommendation will also relate to engagement strategies, RHNA goals, and support for small businesses, among other things.

Action Steps
6a Evaluate potentials and define action steps for designating and branding an Arts/ Entertainment District
6b Define specific strategy and action steps to leverage the potential ED benefits of pending "catalyst development projects" (e.g., ACE train, new courthouse, potential sports stadium, etc.) 6c Investigate potentials (as part of larger initiative focused on a Modesto Arts/ Entertainment District) for designating an area for open alcohol containers (pursuant to SB 969 Entertainment Zone provisions)
6d Create unified community events calendar (where possible, leverage existing meta calendars such as ModestoView, chambers of commerce, etc.)
6e Systematically focus City resources, programs and policies to address homeless issues impacting the viability and attractiveness of the Downtown
6f Continue and expand special events supportive of "food culture" (e.g., Taco Fest, Porch Fest, Bacon Fest, etc.)
6g Design and implement original art mural program
6h Design and implement "shop local" program focused on individual neighborhoods (e.g., McHenry Village)
6i Prioritize the development of the Tuolumne River Regional Park including trails, bikeways, and recreational spaces to enhance the urban vibrancy.
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6j Promote interconnection of Modesto's neighborhoods through placemaking/ mobility initiatives (including wayfinding); this effort could also include new design guidelines and zoning for specific neighborhoods, to create a character and sense of place 6k Consider "bike share" program attached to transit center 6l Promote home-based and micro businesses (e.g., cottage food industry) in places where such businesses would add to a neighborhood's unique identity 6m Invest in community amenities, programs, etc. that enhance attractiveness to higher-income residents (i.e., placemaking efforts focused on retail, restaurants, nightlife, quality of schools, etc.) 6n Develop mixed-use district (connected to downtown) within Tuolumne River Regional Park to enhance walkability, promote housing opportunities, and create a more vibrant urban core Other Potential Implementation Tools/Investments
Relevant NVT Strategic Plan elements.

Models from other cities pertaining to objectives within this recommendation including bike-share programs, home-based and micro businesses, special events to support food culture, etc.

Year 1 Milestones/Checklist
• Staff memorandum on recommended action steps
• Staff memorandum on recommended action steps (including coordination with Police Department) • Online community events calendar function within 6 months

DEVELOPMENT CAPACITY AND BUSINESS FRIENDLINESS
7 Expand industrial space/development capacity
Brief Description of Recommendation
Expanding the capacity for this land use is important from an economic development perspective, but also has a component of supporting efficient use of land in the City, including interrelationships of land uses and potentially repurposing certain uses. There is a study by BEAM Circular forthcoming in the fall of 2024 that will help identify places in the region where there is capacity for industrial growth. The recommendation can include maintaining an inventory of development-ready properties, and also City-owned property that may be surplus (recognizing the particular rules for such properties in the Surplus Land Act).

Action Steps
7a Leverage findings of BEAM Circular's 2024 industrial land inventory/study to identify potential priority/opportunity areas for industrial development
7b Within City's current General Plan Update process, advocate for keeping and expanding employment land (particularly industrial) that is development-ready for job creation projects 7c Evaluate opportunities to re-purpose high vacancy strip centers and big boxes with industrial space (recognizing that these properties may be proximate to residential land uses, which may limit or complicate industrial reuse options)
7d Establish and implement an annexation policy that aligns with the City's long-term financial sustainability principles
7e Evaluate older industrial sites/areas to determine potential for redevelopment with upgraded/contemporary industrial buildings; define incentives to encourage reinvestment in these sites; pursue financing mechanisms such as Industrial Development Bonds, Enhanced Infrastructure Financing Districts, etc.)
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Other Potential Implementation Tools/Investments
TNDG’s Market Demand for Commercial/Industrial Land Uses, for Modesto, prepared as part of this EDSP.

City of Modesto Urban Area General Plan, 2019, especially Chapter II.

Case studies from other communities of successful retail center repurposing.

Year 1 Milestones/Checklist
• Staff memorandum on recommended action steps
8 Promote revitalization and expansion of Modesto's commercial development footprint Brief Description of Recommendation
Similarly to the preceding recommendation, this one both expands capacity for retail and restaurant uses (plus other uses) and includes the objective of supporting efficient use of land, land-use interrelationships, and potentially repurposing certain uses, in the City. Note that housing strategies can also affect outcomes for this recommendation (for example by expanding the market base in certain areas), and while this recommendation is listed under the heading of commercial development (given the importance of retail sales tax as a GF revenue source), actions here could also relate to some types of industrial-use development.

Action Steps
8a Continue (and potentially expand) existing City programs and incentives (including grants and/or lowinterest loans) that encourage commercial property owners to make needed building upgrades such as façade improvements (existing program will expire soon and needs to be re-evaluated) 8b Within the context of General Plan update, identify areas suitable for new shopping center development consistent with future demand growth (while still recognizing the anticipated global reduction in retail footprints)
8c Identify opportunities to shore up major existing shopping centers through such incentives as mixeduse overlays and revenue-sharing agreements to attract new retail tenants; prioritize high-vacancy centers
Other Potential Implementation Tools/Investments
TNDG’s Retail Demand Analysis, and Office Demand Analysis for Modesto, prepared as part of this EDSP.

Case studies of successful revitalization/repurposing projects from other communities (being mindful of how the availability of different incentives can be key to some projects’ success) Year 1 Milestones/Checklist
• Staff memorandum outlining program recommendations, costs and funding sources • Staff memorandum outlining recommended actions and policies 9 Integrate City's housing-related policies/programs with economic development opportunities Brief Description of Recommendation
This recommendation recognizes both the challenge of providing a full range of housing opportunities for residents and the fact that constrained housing supply is detrimental to economic development objectives. At the same time, economic development policies in this EDSP (including industry targeting (Recommendation #18) and workforce development (#11) as well as marketing plans (Recommendation #2) that promote Modesto as a great place to live, work, play and raise a family) will attract new-resident workers who will fall within certain residential market segments, creating a market that must be met in order for the policy objectives to be realized. Note that this recommendation will also relate to housing issues as addressed under Placemaking recommendations.

Action Steps
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DEVELOPMENT CAPACITY AND BUSINESS FRIENDLINESS
9a Request that City’s existing Developer Roundtable serve as an ad hoc housing strategy committee to support implementation of Action Steps 9b-9d below
9b Within context of General Plan Update, evaluate needs and opportunities to expand and diversity Modesto's housing stock to provide residential options for a range of targeted demographic groups 9c Continue to find ways to reduce barriers to developing vacant parcels in the City (prioritize infill and "building up" projects)
9d Review development policy and remove barriers to higher-density development (in response to any issues identified by housing strategy committee)
Other Potential Implementation Tools/Investments
City of Modesto General Plan, Housing Element (Chapter IV) and RHNA obligations Year 1 Milestones/Checklist
• Facilitate 2 meetings with ad hoc committee
• Staff memorandum outlining recommended actions and policies 10 Implement across-the-board improvements in Modesto business/development permitting and approval processes; promote Modesto as the "most business friendly" City in California Brief Description of Recommendation
This recommendation emulates strategies that are common in many communities, all focusing on improving customer service for those subject to local regulations. While most of the associated actions appear to be “common sense,” combining the spirit embodied in the recommendation with practical, incremental improvements to how things are done is the secret to achieving the goal of noteworthy business-friendliness.

In that sense, action items combine ways to streamline approvals by enhancing the flow of information with deliberate intentions to improve the burden of certain regulations and regulatory processes. This would include alignment with or responses to regulations at higher levels of government, such as Stanislaus County.

The recommendation also includes actions that would give regulated parties a greater sense of involvement with the City, which by itself increases their confidence in investing in Modesto.

Action Steps
10a Work with City's existing Developers Roundtable to identify issues and to guide City policy improvements related to business/development friendliness 10b Evaluate existing processes and identify opportunities to streamline development-approval and business-permitting services (including opportunities to replace discretionary reviews with by-right approvals)
10c Update and publicize City’s quick-reference zoning handout 10d Conduct internal customer service training, emphasizing that one of the primary jobs of City staff is to protect the reputation of the City
10e Provide mechanism whereby industry stakeholders can be actively involved in reviewing City's CIP and development impact fees; this could potentially be a function of the Developers Roundtable 10f Coordinate with County of Stanislaus to improve County regulations impacting Modesto businesses 10g Work with County to improve overly restrictive regulations affecting home-based food businesses (State has recently changed retail food code to facilitate this type of business development; County regulations should be at least as permissive as the State's) 10h Launch One Stop Business Permitting Center to facilitate new business openings 10i Launch One Stop Approval Center for commercial/industrial development projects #8..
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DEVELOPMENT CAPACITY AND BUSINESS FRIENDLINESS
10j Review County's Public Facilities Financing District (which overlays or overlaps with City's development impact fees) and ensure equity and competitiveness (this action item might best be carried out through an independent/impartial consultant) Other Potential Implementation Tools/Investments
Case studies of successful business-friendly programs implemented by other communities Year 1 Milestones/Checklist
• Facilitate 2 meetings with Developers Roundtable
• Comprehensive study completed (which is understood to be an update of a previous study) • Updated quick-reference handout
• Training program completed
• Stakeholder review completed and documented (annually) • Initial coordination with County completed; recommendations implemented to the degree practical

WORKFORCE DEVELOPMENT
11 Establish Modesto Workforce Development Consortium (City led and coordinated) to facilitate regular information exchange of among partners
Brief Description of Recommendation
Workforce development everywhere shares certain common challenges:
• Workforce training and retraining needs are constantly evolving, particularly in these days of rapid technological change, and there are many providers in this arena, many with particular areas of emphasis. • Partly because of this, education/training institutions are typically in catch-up mode with respect to industry needs, generally and for specific local firms. • Communication among industry and training representatives, and even among institutions, is seldom formalized in ways that are fully productive.
• Keeping the workforce informed about job training/retraining resources is an ongoing challenge, partly because of evolving modes of communication, along with available and accepted channels through which such communications could occur.

NVT-related strategies can be leveraged for this recommendation, along with the Stanislaus 2030's Manufacturing Strategic Workforce Plan.

Note: whereas this working group would be billed as a “consortium” for marketing purposes, the intended structure would be an informal alliance working on essentially an ad hoc basis to address mutual interested related to workforce development.

Action Steps
11a Create online resource/directory (managed by City) highlighting programs offered by Consortium partners
11b In coordination with partners, evaluate feasibility of expanded vocational training to facilitate career transitions of seasonal agricultural workers (e.g., to construction trades) 11c Evaluate the cost, desirability and feasibility of adopting "Go Educate" (or similar platform) as a possible partner or consortium resource (this investment would potentially be funded by consortium partners)
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WORKFORCE DEVELOPMENT
Other Potential Implementation Tools/Investments
Case studies of successful workforce-coordination programs implemented by other communities.

California State Workforce Development Board, and national workforce organizations. 12 Develop City-specific support services to supplement partner-led workforce development programs Brief Description of Recommendation
The preceding recommendation is likely to result in identifying gaps in workforce training, including training needs specific to local industries and firms, plus ways in which local K-12 education can help support local employment needs. In Modesto as in many other agricultural centers, “soft skills” of prospective workers are likely to need bolstering, and communicating with the local workforce can be particularly challenging. As with the preceding recommendation, this one should also benefit from consulting NVT-related strategies, along with those in the Stanislaus 2030 Manufacturing Strategic Workforce Plan.

Action Steps
12a Within the context of the City's ongoing outreach to the business community, implement processes for identifying the workforce development/training needs of local employers; work with WFD partners to identify appropriate mechanisms (e.g., business surveys) to gain insight into the training needs of local employers
12b Work with partners to implement survey of graduates of partner-sponsored training programs to track placement and career-path outcomes (scope of City's role in this process would require buy-in of partners and might be focused on specific training programs most relevant to City's ED objectives) 12c Consider expanded local-hire policy encompassing City employee recruitment and businesses and/or development projects receiving City financial support
12d Work with WorkSource and WIB to investigate the desirability and feasibility of pursuing regionwide designation for Certified Work Ready Communities (CWRC) 12e Supplement resources available (through partner organizations) to address significant literacy challenges in the community; as a pilot effort, investigate feasibility of investing in Cell-Ed (or similar resource) as a way to focus attention on this issue
Other Potential Implementation Tools/Investments
Information about current trends in apprenticeship programs, and about specific programs

REGIONAL COLLABORATION
13 Position Modesto as a leader in BEAM Circular initiative; maximize Modesto's capture of opportunities generated by BEAM Circular
Brief Description of Recommendation
This recommendation is likely to have a particularly high profile in terms of defining Modesto’s role within a major regional initiative. BEAM Circular is administratively headquartered in Modesto and the City likely has other assets that support a leadership role for this program. Programmatically, the City can also demonstrate leadership by aligning entrepreneurial development resources with the characteristics of this initiative, and take an active role in communicating the higher level, high-tech aspects of this initiative (going beyond recycling activities). Through the Circular Bioeconomy Innovation (CBIO) Collaborative/BEAM Circular, the City can leverage Stanislaus County's commitment of $8,740,000 in funding to BEAM Circular to advance regional bioeconomy efforts, and also leverage $9.7 investment in BioCircular Valley (co-led by Lawrence Berkeley National Laboratory, BEAM Circular, and UC Berkeley with partners including UC Merced, USDA, and UCANR). #8..
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REGIONAL COLLABORATION
Action Steps
13a Actively participate in Circular Bio Collaborative (CBIO) associated with BEAM Circular 13b Contract with BEAM Circular organization to provide a Modesto-specific assessment of site selection strengths/weaknesses relative to bioeconomy opportunities 13c Focus City-level entrepreneurial development resources (incubators, etc.) on emerging opportunities in the bio-circular economy (see also recommendations and action items under Entrepreneurism and Innovation) - see Action Item 17a for funding strategy for City's entrepreneurial development programming
Other Potential Implementation Tools/Investments
There is extensive literature associated with the activities related to this initiative, the most relevant aspects of which can be documented within an annotated bibliography, as one way of helping to focus strategic direction.

Year 1 Milestones/Checklist
• Staff memo summarizing Year 1 involvement with CBIO (TBD based on status of CBIO) • Assessment completed
14 Leverage small business support system being launched by Stanislaus 2030 (Small Business Strategy and Implementation Roadmap)
Brief Description of Recommendation
The Stanislaus 2030 document is mostly about strategies to expand opportunities for small business development, so relating to this program from Modesto’s perspective would be first of all a matter of monitoring how the strategies have translated into particular efforts and accomplishments, then picking up on those that would seem to offer the best fit with Modesto entrepreneurs and other programs.

Action Steps
14a Proactively engage with Stanislaus 2030 leadership to identify specific opportunities for City to tie local programming to countywide resources being developed as part of Small Business Strategy and Implementation Roadmap; identify potential opportunities to maximize connection to countywide resources through supplemental City investments in marketing, service delivery to underserved communities, satellite offices, etc.
14b Leverage Stanislaus 2030's "Nurture" program (training and micro grants) to expand the availability of home-based childcare businesses
Other Potential Implementation Tools/Investments
Case studies of successful related programs in other communities Year 1 Milestones/Checklist
• Staff memo summarizing Year 1 involvement with Stanislaus 2030 15 Leverage research and strategic framework of North Valley Thrive (NVT) Brief Description of Recommendation
North Valley Thrive describes itself as “a growing coalition of community organizations, government entities, educational institutions, and economic development agencies to develop a tri-county proposal for the California Jobs First Fund.” As such, this comprehensive program addresses many topics with the intent of integrating strategic initiatives among them, including inclusivity, caring for the land, opportunities for climatefriendly industries, and the like. The NVT plan and program framework provides one foundation from which Modesto can pursue similar interests, while also supporting a regionally cooperative posture. #8..
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REGIONAL COLLABORATION
Action Steps
15a Leverage NVT programs related to hazard mitigation, climate action and climate resilience; use NVT baseline assessments and monitoring framework to establish comparable measures to track these issues at the city level
15b Establish city-level framework (based on NVT metrics) to track Modesto's socioeconomic progress over time
15c Coordinate with Stanislaus County to develop an Integrated Multi-Jurisdictional Climate Action, Adaptation, and Resiliency Plan (ICAARP); integrate ICAARP implementation with City programs related to BEAM Circular and NVT initiatives
Other Potential Implementation Tools/Investments
Case studies of successful related programs in key areas of hazard mitigation, climate action, etc., in other communities
Year 1 Milestones/Checklist
• Staff memo summarizing Year 1 involvement with NVT
• Completed ICAARP (pending partner/grant funding to support cost) 16 Actively collaborate with regional partners to improve region-wide conditions related to state/federal regulations and funding, essential infrastructure, and program delivery Brief Description of Recommendation
The multitude of regional programs associated with this recommendation will help to accomplish the overall objective of improving conditions in the categories listed, and Modesto representatives can always be on the lookout for other programs through which regional collaboration represents an advantage (e.g., competitive advantage in securing funding). Activities within this recommendation also implicitly relate to marketing efforts referenced in previous recommendation categories, and in that regard the regional Central Valley Business Expo could be a marketing resource/partner. For the specific industries mentioned in the action steps below, some utility companies may have their own economic development staff, and coordination with rail and commercial air service providers can be part of the City’s business retention/expansion (BRE) program (Recommendation #18).

Action Steps
16a Working with the City Manager's Office, define a process and priorities for influencing federal, state, and county legislation that improves the region's preparedness for business development 16b Define practicable ways to support regional and state-level partners in positioning the NSJV to gain better access to federal funding and incentive programs (e.g., CHIPS Act) 16c Support partners (e.g., MCCD, MID, etc.) in managing air/water quality regulations that impact local business development; participate in monthly MCCD working committees 16d Coordinate with utility service providers to identify ways City could facilitate increasing the capacity of power, water, natural gas, and telecom/fiber infrastructure 16e Advocate for retaining and expanding region's rail freight capabilities (conduct outreach to rail companies to define best ways for City to facilitate expanded capacity) 16f Work with regional partners to improve local road and state highway systems; work with Caltrans to improve landscaping and overall visual appeal of State Route 99 Other Potential Implementation Tools/Investments
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REGIONAL COLLABORATION
State-level economic development support entities such as GO-Biz and CALED; also, representatives of major federal funding entities such as EDA and USDA can be consulted

ENTREPRENEURISM AND INNOVATION
17 Establish City Office of Entrepreneurism and Innovation with an overall mission of maximizing local access to business startup resources and positioning Modesto as the premiere North Valley location for technology-oriented entrepreneurial ventures
Brief Description of Recommendation
This recommendation, as with a number of others in this EDSP, relates closely to programs in partner organizations, especially regional partners, which have programs in place upon which Modesto can leverage to firm up a leadership role within tech-oriented entrepreneurism. These regional programs may themselves have many partners, each with their own specific agendas. Consequently, Modesto’s relationships with them will need to be individually analyzed in order to be optimized, and also continuously updated as programs evolve.

In doing so, the City can define its most appropriate contributions: programmatically, financially, promotionally, etc., to support its own objectives as well as the overall regional entrepreneurial ecosystem.

Action Steps
17a Develop overall funding/financing strategy to support implementation of a robust, City-led entrepreneurial development initiative; the following categories of funding opportunities should be investigated: federal grants (e.g., EDA funding for incubator/accelerator programming); fees for services; corporate sponsorships; City participation in regional funding allocations related to (e.g.) BEAM Circular implementation; and private banks (for business lending); partner with entrepreneur/startup education programs such as WEI
17b Based on strategy defined in Action Item 17a, pursue EDA funding to implement incubator/accelerator programming
17c (Through Stanislaus 2030) Develop robust, streamlined referral network such that there are direct pathways for entrepreneurs to access support across their journeys (potentially in the form of a onestop-shop solution), including providing wraparound support in the form of technical assistance as a precursor to accessing capital from CDFIs
17d Expand access to capital / business financing; become clearinghouse for funding programs offered by partner organizations
17e (Through Stanislaus 2030) Evaluate the feasibility of establishing a revolving loan fund to offset risk from CDFI partners (contingent on identifying viable funding sources, pursuant to Action Item 17a) 17f Develop (or support partner-led development) of an "Innovation Center" where prospective entrepreneurs can pitch business ideas; sponsor "pitch fest" (either as part of an Innovation Center concept or as a stand-alone event) - sponsorships would be key to supporting this effort; this action item could have linkage to CSU's Warrior Entrepreneurship & Innovation (WEI) program 17g Explore ways City could implement "open data" concepts/tools to enhance business environment and support entrepreneurial development (the initial research for this idea should answer the question, "What sharable data does the City have that entrepreneurs need?") 17h Contingent on the availability of funding support (per Action Item 17a), develop and promote (directly and/or through partners) incubator and accelerator facilities and programming in Modesto; position these as key site selection assets for regional target industries such as the Bioeconomy (see also Recommendation 13 related to the BEAM Circular initiative) #8..
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ENTREPRENEURISM AND INNOVATION
Other Potential Implementation Tools/Investments
VC firm HawkTower, which has committed $30 million to advance CBIO's Innovation Engine.

Open Data guide: https://opendatahandbook.org/.

Year 1 Milestones/Checklist
• Staff report outlining recommended funding sources and strategies • Application submitted to EDA
• Online referral network setup and operational

BUSINESS ATTRACTION AND RECRUITMENT
18 Implement business attraction program focused on targeted industries in "traded" clusters Brief Description of Recommendation
“Traded” clusters – composed of industries and firms that serve national and global markets – are typically the highest-priority targets for business attraction and recruitment programs. The prioritization of traded clusters is premised on the recognition that, on average, these industries create-higher paying jobs than local-serving industries, inject new dollars into a region’s economy (versus just “recirculating” existing wealth), and have a higher “multiplier” effect in terms of creating secondary jobs and incomes in related (supply chain) industries.

Action Steps
18a Implement business attraction program focused on targeted industries in "traded" clusters (see Chapter 7 for details)
Year 1 Milestones/Checklist
• Year 1 progress report detailing marketing investments, events attended, leads generated, businesses attracted
19 Implement retail/restaurant tenant attraction program Brief Description of Recommendation
Details pertaining to this recommendation are held in abeyance pending completion of the forthcoming Retail Strategies report commissioned by the City.

Action Steps
19a Pursue implementation recommendations of forthcoming Retail Strategies report Other Potential Implementation Tools/Investments
Retailstrategies.com is currently completing an analysis and recommendations for Modesto.

TNDG prepared a Retail Demand Analysis as part of this EDSP.

Year 1 Milestones/Checklist
• Year 1 progress report detailing marketing investments, events attended, leads generated, businesses attracted

BUSINESS RETENTION AND EXPANSION (BRE)
20 Implement "boots on the ground" business retention/expansion (BRE) program to identify "red flags" for businesses needing retention/expansion services; customize assistance package based on challenges/opportunities facing identified firms
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BUSINESS RETENTION AND EXPANSION (BRE)
Brief Description of Recommendation
This recommendation represents “classic” business retention/expansion (BRE) activity, common to most economic development organizations, which highlights the importance of supporting existing local firms both as a way to boost the local economy and also balance attention given to the function of recruiting new firms to the area. The BRE process embodies both outreach and specific incentives or other assistance tailored to the needs of local firms. It is also typically the channel through which specialized needs of traditionally underserved members of the business community are recognized and addressed. Modesto can leverage these efforts through regional organizations that address this specific aspect of local businesses. BRE outreach can also give economic development practitioners a forum for communicating support programs for local businesses, how marketing for economic development also helps them, and other details. Given practical constraints on the level of resources the City can devote to business retention services and incentives, the BRE program should especially target larger employers at risk for closure or relocation.

Action Steps
20a Conduct regular visits to local businesses; consider other mechanisms (e.g., meetings, online surveys, etc.) for outreach to the existing business community; focus on traded-sector companies; utilize Salesforce CRM platform to track contacts
20b Develop and implement business assistance program (incentives/resources to customize responses to businesses needing retention services); incorporate partner resources in BRE "tool box" as appropriate
20c Partner with statewide business advocacy organizations (e.g., Small Business Majority) to provide input on local, culturally-sensitive needs and issues
Other Potential Implementation Tools/Investments
Regional programs that include recognizing the value of inclusivity in economic development, such as Stanislaus 2030 and NVT.

Coordinate with Modesto Chamber of Commerce and its programs.

Year 1 Milestones/Checklist
• Year 1 progress report detailing number of businesses contacted, services provided, and outcomes

SMALL BUSINESS SUPPORT
21 Implement small business startup and assistance program (separate and distinct from entrepreneurial development programming)
Brief Description of Recommendation
This wide-ranging recommendation also interfaces with a number of others, including Business-Friendliness (#10), the Stanislaus 2030 Small Business Strategy and Implementation Roadmap (#14), Entrepreneurism and Innovation (#17), and Business Retention/Expansion (#20). The intent is to expedite processes associated with starting and running a small business, provide and call attention to resources for doing so, and address other specific known problems facing certain members of the local business community. The set of Action Steps also includes recognition that special efforts promoting inclusivity within the business community are warranted.

Action Steps
21a Launch "business concierge" program aimed at streamlining the startup process for small/micro businesses
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SMALL BUSINESS SUPPORT
21b Assist businesses with access to SBA loans and other discounted financing (City's role would be focused on referring cases to SBA and possibly supporting clients in navigating the SBA application process)
21c Address issue of unpermitted business operations (facilitate educating these operators on legal requirements; provide bilingual access to licensing awareness/training followed by a limited amnesty; consider developing incubator space to legitimize these microenterprises; in longer term, address unpermitted operations through stricter enforcement measures) 21d Evaluate potential approaches to facilitating small business opportunities within the fledgling cannabis industry (research and adapt best practices from other CA cities) 21e Actively promote small business networking in Modesto (e.g., through online forum); this effort should initially be launched as a pilot/ test program to determine the level of demand for these services
21f In collaboration with SBDC, promote mentor/mentee relationships for entrepreneurs and small business operators
21g Assess existing City procurement policies that provide opportunities for Modesto-based small businesses and identify opportunities to strengthen this incentive 21h Conduct outreach to local banks/credit unions to identify opportunities to expand access to capital for small business expansions; prioritize attraction of new banking institutions to neighborhoods/ districts that are currently underserved
21i In collaboration with SBDC, assist smaller firms in incorporating new technologies (e.g., AI) into their business operations
21j In collaboration with SBDC, research and respond to topics of concern to the local business community (e.g., potential challenges getting insurance due to proximity to rising-risk fire areas) Other Potential Implementation Tools/Investments
SCORE programs typically associated with Chambers of Commerce Regional programs that include recognizing the value of inclusivity in economic development, such as Stanislaus 2030 and NVT.

Year 1 Milestones/Checklist
• Program launched; annual report detailing program investments and results (firms assisted, etc.) • Staff report recommending policies and resources for addressing issue of unpermitted businesses in Crow's Landing area
• Staff report outlining recommended strategic approach to cannabis industry

TOURISM AND VISITATION
22 Lead coordination of various organizations and initiatives focused on expanding tourism (and visitorrelated real estate development) in Modesto Brief Description of Recommendation
This recommendation recognizes the uniquely important role of tourism in Modesto and the region, plus the fact that tourism has its own ecosystem for developing and supporting this activity. The taskforce concept recognizes this ecosystem and will also be part of the City’s ongoing efforts to coordinate effectively with regional programs. Marketing/branding efforts as discussed in this EDSP (Recommendation #2) will be coordinated with the activities outlined here, and recommendations for Placemaking (#5) will also interface with this one. As part of the process of engaging with the community on economic development activities #8..
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TOURISM AND VISITATION
(Recommendation #3), stakeholders and the community at large can be reminded that tourism promotion and development also provides assets that enhance the community’s quality-of-life for residents.

Action Steps
22a Convene tourism development taskforce focused on attracting additional visitor facilities and providing programmatic support (events, etc.) to visitor attraction efforts; identify specific roles City can play within this consortium (which would ultimately be led by Visit Modesto) 22b Support active implementation of Visit Modesto strategic plan (2024) 22c Prioritize attraction/development of businesses that can attract tourists and capture visitor expenditures; this effort would include a focus on attracting affordable sports and entertainment opportunities to Modesto and should include the following steps/goals:
• Explore market gaps and “leakage” to determine facility types that would be the best fit/targets for Modesto
• Enter into Memorandum of Understanding (MOU) with United Soccer League (USL) regarding potential stadium development in Modesto
• Pursue redevelopment of former Muni Golf Course property • Pursue reuse of John Thurman Field
• Explore inclusion of Tuolumne River Regional Park in marketing for affordable recreation 22d Attract another "branded" hotel to Downtown Modesto 22e Investigate potentials for casino development in Modesto Other Potential Implementation Tools/Investments
Case studies of other communities that have implemented creative approaches to tourism in agricultural areas, or agritourism, and the USDA has resources on this topic Year 1 Milestones/Checklist
• Facilitate 2 meetings with taskforce
• TBD defined based on direction of Visit Modesto
• Meetings with 6 developers

EDSP ADMINISTRATION
23 Allocate staff time for initial and ongoing EDSP administration Brief Description of Recommendation
This recommendation recognizes that the EDSP is designed to be a “living document” and that implementation of the EDSP will be a dynamic process requiring ongoing evaluation of progress and refinement of priorities. In order to ensure that the EDSP remains effective, the City should annually develop new implementation milestones (i.e., update Appendix A of the EDSP) and anticipate a full update of the Plan (and supporting technical studies) in 5 years.

Action Steps
23a Consider positioning of City's ED program within overall organization structure (i.e., determine optimal City department to house program)
23b Prepare annual EDSP progress report
23c Prepare 5-year update of EDSP
Other Potential Implementation Tools/Investments
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EDSP ADMINISTRATION
Appendix B of the EDSP outlines Key Performance Indicators (KPIs) that can provide a framework for annual performance reporting.

Year 1 Milestones/Checklist
• Determination made regarding preferred positioning of ED program • Staff report summarizing Year 1 progress, and defining milestones and recommended staff allocations (FTE) by action item for Year 2
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7.BUSINESS ATTRACTION STRATEGY
Recommended Business Retention/Expansion/Attraction Targets The target industry analysis completed for the EDSP process revealed a number of industry cluster candidates based on the 2023 Location Quotient, the number of jobs in 2023 and job growth over the last decade (2013- 2023).

Food Processing and Manufacturing Cluster has the highest LQ (8.9) of all clusters in Modesto. The 10th highest LQ (1.3) is in the Local Food and Beverage Processing and Distribution Cluster. The top 10 clusters in terms of LQs are shaded. The same shading pattern is also applied to the top 10 clusters in terms of total jobs and 10-year job change.

CLUSTER LQ JOBS 10-YR JOB
CHANGE
AVG.

ANN
WAGE
Agricultural Inputs and Services 2.2 2,880 (88) 64,051
Distribution and Electronic Commerce 1.0 6,412 551 78,235 Downstream Metal Products 2.6 883 (168) 92,537
Food Processing and Manufacturing 8.9 8,089 1,386 98,449 Furniture 1.3 357 75 61,614
Local Commercial Services 1.0 7,295 656 56,895
Local Community and Civic Organizations 2.3 9,380 2,512 28,442 Local Education and Training 1.3 8,236 3,713 83,120
Local Food and Beverage Processing and Distribution 1.3 6,348 388 51,661 Local Government Services 1.0 4,120 1,714 116,946
Local Health Services 1.3 17,664 3,885 116,261
Local Hospitality Establishments 1.1 10,639 1,602 33,098 Local Motor Vehicle Products and Services 1.3 4,472 1,155 64,308 Local Personal Services (Non-Medical) 1.0 3,784 1,050 39,358 Local Real Estate, Construction, and Development 0.9 8,761 1,317 72,399 Upstream Chemical Products 1.6 197 164 109,034
Note: LQ = Location Quotient; 10-year job change is from 2013 to 2023.

Source: U.S. Cluster Mapping Project; EMSI; TNDG.

Modesto has several key industries that it could focus on to drive economic growth and development. Considering the target industry analysis and the economic analysis, the top industry clusters are presented below along with recent industry analysis.
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Agribusiness and Food Processing
Given Modesto's location in the Central Valley, agriculture and food processing remain a vital opportunity for growth and expansion. The city can leverage its agriculture heritage, existing infrastructure and expertise in this sector.

The agribusiness industry is experiencing key growth areas that are shaping the future, including:
• Sustainable Practices: There's a significant push towards sustainability in agribusiness. This includes adopting organic farming methods, preserving biodiversity, and reducing the carbon footprint of agricultural activities.
• Technological Advancements: The integration of technology, such as AI, IoT, and drones, is revolutionizing farming practices. These technologies help optimize processes, improve crop monitoring, and enhance water management.
• Changing Consumer Preferences: Consumers are increasingly demanding "clean label" products, which are minimally processed and free from artificial ingredients. This shift is driving changes in how food is grown and produced.
• AgTech Development: The development and adoption of agricultural technologies (AgTech) are on the rise. Innovations in precision farming, regenerative agriculture, and data-driven farming practices are becoming more prevalent.

The food processing industry is similarly evolving rapidly, driven by several key growth trends:
• Technological Innovation: The industry is seeing significant advancements in automation, AI, and IoT, which are improving efficiency and safety in food processing. These technologies help streamline operations, reduce waste, and enhance product quality.
• Sustainability: There is a growing emphasis on sustainable practices, including reducing food waste, using eco-friendly packaging, and minimizing the carbon footprint of food processing operations. Companies are increasingly adopting green technologies and sustainable sourcing practices. • Health and Wellness: Consumer demand for healthier food options is driving the industry to innovate with products that are lower in sugar, fat, and artificial additives. There is also a rise in the production of organic and clean-label products.
• Convenience Foods: The busy lifestyles of consumers are boosting the demand for ready-to-eat and convenience foods. This trend is particularly strong in urban areas where time for meal preparation is limited.

Advanced Manufacturing
Expanding manufacturing capabilities, particularly in advanced manufacturing and technology-driven processes, can create jobs and diversify the local economy. Trends driving the advance manufacturing sector include:
• Digital Transformation: The adoption of Industry 4.0 technologies, such as AI, IoT, and robotics, is revolutionizing manufacturing processes. These technologies enhance productivity, improve quality control, and enable predictive maintenance.
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• Sustainability: There is a strong focus on sustainable manufacturing practices. Companies are investing in energy-efficient technologies, reducing waste, and adopting circular economy principles to minimize environmental impact.
• Reshoring and Localization: Due to geopolitical tensions and supply chain disruptions, many manufacturers are moving production closer to their end markets. This trend, known as reshoring, helps reduce dependency on global supply chains and improves resilience. • Advanced Materials: The development and use of advanced materials, such as composites and nanomaterials, are enabling the creation of lighter, stronger, and more durable products. These materials are particularly important in industries like aerospace and automotive. • Climate Adaptive Technology: Current federal and state research and development investments are aimed at scaling up industries in areas such as semiconductor chip manufacturing, direct air capture, carbon engineering, additive manufacturing (3D), hydrogen technology, and advance recycling. A focused evaluation of these innovations as they develop may warrant analysis by Modesto to offer an opportunity for R&D or development to take place as well as invest in infrastructure necessary to support these advance industries.
• Workforce Development: As technology evolves, there is a growing need for a skilled workforce capable of operating advanced manufacturing systems. Companies are investing in training and development programs to upskill their employees.

Healthcare and Biotechnology
Modesto is becoming a regional hub for healthcare, with several major medical centers and specialty providers.

This makes it an ideal location for healthcare services, medical equipment suppliers, and biotechnology firms.

With an aging population and increasing demand for healthcare services, investing in healthcare facilities and biotechnology can provide significant economic benefits. Recent industry trends include:
• Personalized Medicine: There is a growing focus on personalized medicine, which tailor treatments to individual patients based on their genetic profiles. This approach is becoming more feasible with advancements in genomics and bioinformatics.
• Telehealth and Remote Monitoring: The adoption of telehealth and remote patient monitoring has surged, especially post-pandemic. These technologies enhance access to healthcare services and enable continuous patient monitoring.
• Biotechnology Innovations: The biotechnology sector is seeing rapid advancements in areas such as gene editing (e.g., CRISPR), regenerative medicine, and biopharmaceuticals. These innovations are opening new avenues for treating previously incurable diseases.
• Technological Advancements: Continuous innovations in gene editing technologies like CRISPR, bioinformatics, and computational biology are significantly influencing the market. Additionally, advancements in Polymerase Chain Reaction (PCR) technologies and the development of miniaturized portable instruments are enhancing research capabilities. #8..
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• Increased Funding and Investments: There is a substantial increase in investments, funds, and grants for biotechnology research. This financial support is crucial for driving innovation and development in the sector.
• Agricultural Biotechnology: There is growing demand for biotechnology tools in agriculture, such as genetically modified crops, tissue culturing, and molecular breeding. These technologies help improve crop yields and resistance to pests and diseases.

These trends indicate a dynamic and rapidly evolving landscape in healthcare and biotechnology, driven by technological advancements, personalized approaches, and supportive regulatory environments.

Tourism, Hospitality and Retail
With a growing population and increasing tourism, retail stores, restaurants, and hotels can do well. Enhancing the local tourism infrastructure can further boost this sector. Enhancing tourism infrastructure and promoting local attractions can boost the hospitality industry and bring in additional revenue.

Technology and Professional Services
As the city continues to develop, there is a growing need for IT services, consulting firms, and other professional services. This sector can benefit from the proximity to major tech hubs like the Bay Area.

Market Generated Industries
There are a number of industries that are not highlighted in the list of targets that are likely to be attracted to the market because of location, demand or other factors. For example, distribution and logistics industries tend to locate where land availability and proximity to markets is ideal. While the City should evaluate these types of businesses for their benefit to the City, the emphasis should be on adding value added businesses from the industries recommended. Consequently, the City should allow the market to generate these industries and focus its attention on the higher wage and benefit industries recommended.

Regional Alignment of Modesto’s Target Industries
The primary regional economic development strategies include the 2023-28 Stanislaus County Comprehensive Economic Development Strategy (CEDS), the Stanislaus 2030 Plan and North Valley Thrive, the latter of which is more focused on planning than implementation. While areas like agriculture are identified in some of the plans, the there is some alignment between the proposed Modesto targets and those of the regional plans. The following table shows the industries that are aligned () somewhat aligned () or not aligned. #8..
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Modesto Targets Regional Strategies
2023-28
Countywide
CEDS
Stanislaus
2030
North Valley
Thrive BEAM Circular
Agri-business 
Food Processing
Advance Manufacturing   
Healthcare 
Biotechnology   
Tourism/Hospitality 
Retail
Tech & Professional Services
The absence of alignment, such as areas like retail and hospitality, are locally traded clusters which tend to not typify a regional strategy. Other industries like distribution and logistics, while part of the regional targets, are not included as primary targets for Modesto, given the focus on higher wages and impactful businesses.

Assessing Modesto from a Site Selector’s Perspective
Site selection is a competitive environment where having a strong positive identity among industry and decision makers, real estate developers and support for the growth of industry intersect to provide a ideal opportunity for new investment. The business attraction strategy considers the targeted industries, current site selection trends, and Modesto’s competitive position to create a strategy that can produce results for the City.

Site Selection Analysis
The Site Selectors Guild, the premier membership organization for individuals and companies involved in advising companies searching for new industrial and office facilities, conducts an annual survey of the membership to determine the latest trends in site selection. The Site Selectors Group likewise published a list of critical factors involved in corporate site selection and Research FDI conducts regular analysis of the top factors in the site selection factors. Based on this research and individual interviews and meetings with site consultants, the following represent the top 10 site selection factors for evaluation for the City of Modesto business recruitment strategy.
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How Does Modesto Measure Up?
The City of Modesto is well positioned in most of the categories and can place a strong case for a competitive location in the California marketplace.

Labor Availability and Skills
Modesto has a diverse labor pool with strengths in agriculture, manufacturing, and healthcare. However, attracting highly specialized talent is an opportunity to meet competition posed by larger metro areas.

Accessibility and Transportation Infrastructure
Modesto is well-connected via major highways (e.g., Highway 99) and is relatively close to major ports and airports in the Bay Area. The only thing Modesto lacks is a major airport of its own, however, it is not a key limiting factor for site locations other than corporate headquarter locations.

Business Climate and Regulatory Environment
California's regulatory environment can be challenging due to stringent regulations and higher taxes. However, Modesto offers a more business-friendly local government compared to larger cities in the state. Opportunity for case study examples of investment can overcome any potential question of the business climate.

Cost of Doing Business
The cost of doing business in Modesto is generally lower than in major California cities and an advantage for the City. This includes lower real estate costs, utilities and wages, which can be attractive to targeted industry sectors.

Quality of Life
Modesto offers a good quality of life with affordable housing, good schools, and a variety of recreational activities.

Close proximately to natural resources and major metro areas provides Labor Availability
and Skills
Accessibility and
Transportation
Infrastructure
Business Climate
and Regulatory
Environment
Cost of Doing
Business Quality of Life
Utilities and
Infrastructure
Market Access and
Proximity to
Customers
Economic
Incentives
Real Estate
Availability and
Costs
Risk Factors
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Utilities and Infrastructure
Modesto has reliable utilities and infrastructure, but ongoing investments will need to be mare to keep up with growth and technological advancements.

Market Access and Proximity to Customers
Being in the Central Valley, Modesto has good access to major markets in California. Its proximity to the Bay Area and Sacramento is a significant advantage.

Economic Incentives
A robust array of economic development incentives will bridge the competitive gap with the substantial incentives often offered by other states with more aggressive economic development programs.

Real Estate Availability and Costs
Real estate in Modesto is more affordable compared to coastal cities in California. There is also a good availability of industrial and commercial properties, with Modesto having the highest share of industrial inventory in the county (24 million square feet).

Risk Factors
Modesto is relatively safe from natural disasters like earthquakes and wildfires, which are more common in other parts of California. However, as with other parts of California, it does face challenges related to water supply and drought conditions. Political environment is stable and casts a probusiness outlook.

Business Recruitment Strategy
The business recruitment strategy is designed to attract businesses that will drive economic growth for the City of Modesto. The strategy focuses on leveraging Modesto’s strengths, including the strategic location, workforce, infrastructure and location. By focusing on key areas to stimulate job creation, the resulting increased investment will help support the City of Modesto’s long-term fiscal sustainability.

Relationship with corporate decision makers & influencers • Expand database of real estate developers, commercial and industrial brokers and site location consultants.
• Organize regular networking events, forums, and roundtable discussions to engage with corporate site locators and understand their needs.
• Host in-bound event(s) for decision makers.
• Collaborate with industry associations to gain insights and foster relationships with potential corporate site locators.
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Leverage existing business for recruitment
• Work with local businesses (particularly manufacturing and businesses in target sector) to identify emerging industry trends.
• Ask existing businesses to identify one or two companies with which they do business that would “add value” if they were located locally, such as suppliers and other service providers. • Partner with local businesses to co-brand and promote Modesto. This can include joint marketing campaigns, sponsorships, and events.
• Work with local businesses to identify success stories of businesses who have located and grown in Modesto to leverage their story for recruitment of new businesses.

Leverage and influence state and regional economic development partners • Respond to all inquiries and requests for information/proposals from state and regional partners • Be an active participant and influencer for regional economic development planning and marketing. • Host familiarization tours for state and regional economic development partners • Host statewide economic development conferences/events • Educate state and regional leaders on the positioning of Modesto for growing opportunities in advanced manufacturing, biotechnology and climate adaptive technology.

Expand/Enhance Business Assistance Programs
• Offer tax incentives and access to financial assistance credits for businesses that relocate or expand in Modesto.
• Provide and support access to grants and low-interest loans to support business startups and expansions. • Ensure that permit process is streamlined, reduce bureaucratic hurdles and ensure that targeted industry and businesses receive exceptional treatment.
• Hosting tech conferences and meetups can help build a vibrant tech community that will help support job growth. Creating co-working spaces and incubators can also foster collaboration and innovation. • Promote and expand destination such as FTZ, NMTZ, OZ and other incentive programs.

Develop marketing strategies and activities focused on target industries Modesto’s strategic location, quality of life and seemingly business-friendly environment can be emphasized and developed with success stories and case studies to establish a brand image and enhance the viability of Modesto as a key location within Central California.

The table shows the targeted marketing segment, their primary interests, recommended outreach tools which can be used to develop key messages for use in recruitment marketing. #8..
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Segment Primary Interests Outreach Tools Key Messages
Corporate
Executives, Site
Selectors, Real
Estate Location
Advisors
• Available and applicable
workforce
• Transportation accessibility
• Locational attributes
• Predictable development
process
• Credible and trustworthy
information
• Reduce risk
• Hosted events in
Modesto
• Meetings at industry
events
• Website and online
media
• Partnerships and industry
networks
Developers • Quality of development
• Return on investment
• Rapid tenant placement
• Predictable development
process
• Applicable zoning and land
use designations
• Risk reduction
• Briefings, tours, events
• City business
reports/updates
• Website and online
media
• Engagement in planning
and visioning processes
• Trade media visibility
Economic
Development
Partners
• Promoting regional
economic development
• Growing success rate of
organization
• Expanding local economic
development opportunities
• Community fact sheets
• Briefings and tours
• Participation in business
events
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8. TRACKING EDSP PROGRESS
The EDSP Action Plan (Chapter 6) outlines an ambitious economic development “road map” for the City of Modesto to follow over the next five years. Many of the recommended action items are established City functions that will be refocused around new priorities identified in the EDSP, thus requiring minimal new resources for implementation; others are new initiatives that can be readily implemented as soon as the EDSP is launched and can be accomplished fairly quickly; still others are longer-term investments that will require significant commitments of new City resources and may not be fully realized within the initial 5-year implementation timeframe.

Appendices A, B and C of the EDSP provide guidance on implementation and performance measurement:
• Appendix A (EDSP Action Plan Details by Year) – includes estimated City staff hours by year and action item; potential costs for contracted services (for selected action items); and Year 1 milestones (specific work products or outputs expected to be generated during the first year of implementation).

• Appendix B (Menu of Key Performance Indicators) – provides a list of potential metrics for tracking EDSP progress. Some of the indicated metrics are closely tied to specific EDSP activities (such as marketing), whereas others relate to the health of the broader Modesto economy. As a practical matter, it is not recommended or intended that the City track all of the Key Performance Indicators (KPIs) listed in Appendix B (since the list is very long). Instead, it is expected that City staff will define a workable subset of KPIs to be tracked from year to year, using the larger “menu” as a framework (see description of Appendix C below).
• Appendix C (Two-Year Goals / Performance Indicators) – identifies specific targets for selected (“Priority Focus”) actions.
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APPENDIX A: EDSP ACTION PLAN

DETAILS BY YEAR
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Year 1 Year 2 Year 3 Year 4 Year 5
1a
Update and expand ChooseModesto.com
website to align with EDSP progams and
priorities; position ChooseModesto.com as the
primary online presence of the City's ED program
(ED page on City's main website should redirect
to ChooseModesto.com)
1,000 N/A N/A N/A N/A $25,000
Website(s) aligned to
EDSP; content updated
weekly
-0.5 FTE in Year 1 for
initial upgrades and
realignment.
-Plus .25 FTE in-house
graphics if not
contracted
New
1b
Continually update/enhance website to provide
more data resources and information to Modesto
business community and potential investors
500 500 500 500 $5,000 0.25 FTE for ongoing
maintenance of website Ongoing
2a
Establish branding taskforce to identify specific
misconceptions and/or negative images to be
addressed; define focused list of assets/selling
points to be included in messaging
24 N/A N/A N/A N/A N/A Faciliate 2 meetings with
taskforce
Short-term taskforce to
guide process for
engaging marketing firm
New
2b Engage professional branding/marketing firm to
design image enhancement campaign N/A N/A N/A N/A
2c Develop process/metrics for annually measuring
the impact of the branding investment N/A N/A N/A N/A
2d Implement image enhancement campaign based
on steps 2a-2c above 500
2e
Sustain and expand branding/marketing budget
annually during full term of EDSP
implementation
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) $150,000 - $200,000
Completed image
enhancement campaign
(reeady to be launched
in Year 2
Indicated hours are for
staff time to coordinate
contracted marketing
services; contract costs
would potentially be
shared with partners
180
R1: Upgrade City's ED website
Estimated Annual Staff Hours
R2: Implement image enhancement campaign
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations New
500 500 500 $$ per year New
Assume 0.25 FTE for
ongoing staff time for ED
marketing (maintenance
effort)
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Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 3a
Actively manage and expand City's economic
development contact list(s); use database to
promote mutually-beneficial connections
between ED/WFD organizations, industry,
jobseekers, other community stakeholders and
the general public (City has already initiated
contract with Salesforce for CRM platform)
3b
Coordinate with other front-facing City
departments to merge database and CRM for
efficiencies and quality customer service.
3c
Distribute monthly electronic newsletter
(highlighting ED programs and success stories) to
all contacts
180 360 360 360 360 N/A 6 newsletters in Year 1
Assumes 30 hours per
month to develop
newsletter content
New
3d
Utilize regional/partner channels as tools for
City's ED messaging (these channels might
include, for example, the North Valley Thrive
newsletter and distribution list, regional events
where City could have a presence, Chamber of
Commerce networking opportunities, etc.)
48 48 48 48 48 N/A
Articles placed in 5-10
partner newsletters (or
other media)
Assumes 1/2 day per
month devoted to
repackaging newsletter
content to share with
partner organizations
Ongoing
3e
Increase presence of ED staff at community
events to raise public awareness of this
important municipal function; consider
organizing special events specifically aimed at
promoting community pride
80 160 160 160 160 $10,000 Attend 4 events in Year 1
Assumes 20 staff hours
per event; 4 events per
year
Ongoing
3f
Annualize stakeholder engagement events
launched as part of the EDSP process (e.g., ED
Summit, Central Valley Real Estate Summit,
topical partner forums); position these events as
corporate sponsorship opportunities
300 300 300 300 300 $60,000
Organize CV Real Estate
Summit and Workforce
Development Forum
Assumes CV Real Estate
Summit would be
annual; 1-2 topical
forums per year (on
rotating basis)
Ongoing
Assumes 1 day per
month devoted to
database management
(after consolidation into
CRM)
R3: Include community engagement as an ongoing function of ED program 96 Ongoing
Staff memorandum
documenting database
management procedures
96 96 96 96 N/A
#8..
223
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 3g
Report to Modesto City Council (or Economic
Development Committee) on a regular (e.g.,
quarterly) basis to keep economic development
issues "top of mind" and to receive direction on
priorities; tie reporting to performance measures
established for EDSP
40 40 40 40 40
N/A (costs for data, etc.
are included in other
action items)
4 reports to EDC in Year
1 Assumes 10 hours of
staff time to prepare
report for each of the 4
presentations
New
3h
In order to engage young professionals in EDrelated civic affairs, organize inaugural networking and social event (potentially in
partnership with Chamber of Commerce, CSU
Stanislaus, and/or UC Merced)
200 N/A N/A N/A $5,000 - $10,000 per
year
3i
Based on results of inaugural event, organize
follow-up events 1-2 times per year to engage
young professionals in City's ED messaging
400 400 400 $$ per year
4a
Implement marketing/outreach effort to raise
awareness of business support resources
(especially in underserved and underrepresented
communities); create and promote "library of
resources"; engage local NPO's as partners in
reaching underserved communities
300 60 60 60 60 N/A
Assumes 6 weeks of staff
time (240 hours) to
develop "library of
resources" plus 60 hours
per year to coordinate
with NPO's
New
4b Expand Spanish language resources and outreach
for business startup/assistance programs 160 60 60 60 60 N/A Staff time to coordinate
translation of "library of
resources" into Spanish
(potentially using free
resources for translation
and proofreading)
New
New
One event in Year 2; two
events per year
thereafter
Online "Library of
Resources" completed,
with selected elements
translated into Spanish
R4: Integrate practice of inclusive ED into all aspects and phases of EDSP implementation #8..
224
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 4c
Conduct baseline study of economic conditions
of Modesto's BIPOC communities; establish
metrics to annually track changes in these
conditions as the EDSP is implemented and
resources are prioritized
300 100 100 100 100
$$ for initial study ;
ongoing cost $$ per year
(potentially including
costs for conveners)
Baseline study
completed (by staff,
potentially with
consultant support)
Potential resources
include the "People's
Plan for Economic
Justice" and the Census
Bureau's "Community
Resilience Estimates
(CRE) Equity
Supplement"
New
5a Convene City-led working group for "Activating
Downtown Modesto" 120 60 60 60 60 N/A Faciliate 3 meetings with working group
Initial year hours include
time needed to organize
working group
New
5b
Through working group, engage with
development community to define "action
agenda" for promoting housing as a core focus of
DT placemaking; action agenda should identify
targeted housing types, key opportunity sites,
and incentives/policies that would encourage
housing production in the DT
60 60 60 60 60 N/A Meetings with 6
developers
Staff time for outreach
to development
community (assume 5
hours per month,
specific to this topic)
New
5c
Prioritize implementation of Downtown Master
Plan (particularly as it relates to potential
catalyst projects and mixed-use zoning
designations); build on the Plan's
implementation framework based on EDSP
priorities (and the working group's
recommendations)
80 60 60 60 60 N/A
Staff memorandum
defining recommended
ongoing roles of ED staff
in supporting DTMP
implementation
ED staff time for
coordination with
Community
Development and other
entities involved in DT
Master Plan
implementation
New
5d
Promote development of co-working (i.e., shared
office) and co-housing facilities in the Downtown,
potentially as part of future mixed-use
development project(s)
60 60 60 60 60 N/A Meetings with 6
developers
Staff time for outreach
to development
community (assume 5
hours per month,
specific to this topic)
New
R5: Promote develoment opportunities in Downtown
#8..
225
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 5e
Update Capital Improvement Program (CIP) to
leverage grant funding for utlity infrasructure
upgrades
40 40 40 40 40 N/A
Staff memorandum
recommending priority
projects from ED
perspective (tied to
identified grant funding
opportuinities)
ED staff time for
coordination with other
departments involved in
CIP prioritization
Ongoing
5f Encourage redevelopment/catalyst projects in
Downtown
120 120 120 120 120 N/A
Staff memorandum
(prepared annually)
identifying highest
priority catalyst projects
for Downtown
redevelopment and
outlining City
resources/policies that
can expedite
development of these
projects
ED staff time for
coordination with private
and public development
partners (for key pending
projects in Downtown)
Ongoing
5g
Comprehensively review development policies
(zoning, etc.) affecting DT and remove any
barriers to targeted development types
60 N/A N/A N/A $$ one-time cost
ED staff time for
coordination with
Community
Development
Department (CDD)
New
5h
Implement retail/restaurant tenant attraction
program focused on Downtown (see also
Recommendation 19)
Potential focus on "food
culture" businesses Ongoing
5i
Promote transit-oriented development (TOD),
consistent with opportunities and priorities
identified by DT working group
60 60 60 N/A
Staff time for outreach
to development
community (assume 5
hours per month,
specific to this topic)
Ongoing
Hours and costs included under Recommendation 19
#8..
226
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 5j
Investigate potentials for relocating/ expanding
farmer's market (and larger open-air market
concept) to "flood plain" riverfront area (the
feasibility of this concept may depend on
mitigation of flood risks before any expanded use
of this area occurs)
240 N/A N/A $ (possible one-time cost
for consultant support)
ED and CDD time to
research issues and
opportunities
New
5k Create master plan for riverfront
development/use (tie to DT placemaking efforts) 180 N/A N/A $$$ one-time cost (this
program would likely be
dependent on grant
funding)
Staff time to coordinate
contracted
planning/consultant
services
Ongoing
5l Complete infrastructure to implement Quiet
Zones
80 80 80
$$$ one-time cost (this
program would likely be
dependent on grant
funding)
ED staff time to
coordinate with other
City departments
New
5m Implement EIFD in partnership with County 80 80 80 $$$ (one-time cost for consultant services)
Assumed to be a
consultant-led process
with costs shared by
County
New
6a
Evaluate potentials and define action steps for
designating and branding an Arts/ Entertainment
District
80 TBD TBD TBD TBD N/A Staff memorandum on
recommend action steps
Staff time to research
and recommend action
steps
New
6b
Define specific strategy and action steps to
leverage the potential ED benefits of pending
"catalyst development projects" (e.g., ACE train,
new courthouse, potential sports stadium, etc.)
80 TBD TBD TBD TBD N/A Staff memorandum on
recommend action steps
Staff time to research
and recommend action
steps
New
6c
Investigate potentials (as part of larger initiative
focused on a Modesto Arts/ Entertainment
District) for designating an area for open alcohol
containers (pursuant to SB 969 Entertainment
Zone provisions)
40 TBD TBD TBD TBD N/A
Staff memorandum on
recommend action steps
(including coordination
with Police Department)
Staff time to research
and recommend action
steps
New
R6: Implement a range of programs/policies aimed at enhancing the placemaking potentials of Downtown and other distinct subareas #8..
227
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 6d
Create unified community events calendar
(where possible, leverage existing meta
calendars such as ModestoView, chambers of
commerce, etc.)
140 120 120 120 120 N/A
Online community
events caledar function
within 6 months
80 hours to develop
(over six months); plus
10 hours per month to
maintain
New
6e
Systematically focus City resources, programs
and policies to address homeless issues
impacting the viability and attractivness of the
Downtown
80 TBD TBD TBD TBD N/A Staff memorandum on
recommend action steps
Coordination time for ED
staff; would also require
resource commitments
by other departments (in
additon to ED hours
estimated here)
Ongoing
6f
Continue and expand special events supportive
of "food culture" (e.g., Taco Fest, Porch Fest,
Bacon Fest, etc.)
200 400 400 499 $-$$ per year
One event in Year 1; two
events per year
thereafter
New
6g Design and implement original art mural program 200 200 200 200 $-$$ per year Staff time to coordinate
contracted (or volunteer
services)
New
6h
Design and implement "shop local" program
focused on individual neighborhoods (e.g.,
McHenry Village)
240 480 480 480 $-$$ per year
Pilot (Year 2) program in
McHenry Village; expand
in later years
New
6i
Prioritize the development of the Tuolumne
River Regional Park including trails, bikeways,
and recreational spaces to enhance the urban
vibrancy
80 80 80 $-$$ per year Staff time for planning
and coordination New
6j
Promote interconnection of Modesto's
neighborhoods through placemaking/ mobility
initiatives (including wayfinding); this effort
could also include new design guidelines and
zonning for specific neighborhoods, to create a
character and sense of place
6k Consider "bike share" program attached to
transit center
80 80 80 $$ per year New
ED staff time to
coordinate with CDD
staff and possible
specialty consultants
#8..
228
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 6l
Promote home-based and micro businesses (e.g.,
cottage food industry) in places where such
businesses would add to a neighborhood's
unique identity
60 60 60 $ per year
Supplemental marketing
resources and staff time,
specific to this topic
New
6m
Invest in community amenities, programs, etc.
that enhance attractiveness to higher-income
residents (i.e., placemaking efforts focused on
retail, restaurants, nightlife, quality of schools,
etc.)
80 TBD TBD TBD
Staff time to research
models and define
relevant follow-up
actions/investments
New
6n Develop mixed-use district within Tuolumne
River Regional Park 80 80 80 $-$$ per year Staff time and budget for planning and marketing New
7a
Leverage findings of BEAM Circular's 2024
industrial land inventory/study to identify
potential priority/opportunity areas for industrial
development
40 TBD TBD TBD TBD N/A Staff memorandum on
recommend action steps
Staff time to review
BEAM Circular report
and define relevant
follow-up actions
Ongoing
7b
Within City's current General Plan Update
process, advocate for keeping and expanding
employment land (particularly industrial) that is
development-ready for job creation projects
40 TBD TBD TBD TBD N/A Staff memorandum on
recommend action steps
ED staff time to review
and comment on GPU
(specific to this topic)
and coordinate with CDD
staff on opportunities to
expand industrial
capacity
New
7c
Evaluate opportunities to re-purpose high
vacancy strip centers and big boxes with
industrial space (recognizing that these
properties may be proximate to residential land
uses, which may limit or complicate industrial
reuse options)
40 TBD TBD TBD N/A
ED staff time to
coordinate with CDD
staff to define
recommended actions
and policies
New
R7: Expand industrial space/development capacity
#8..
229
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 7d
Establish and implement an annexation policy
that aligns with the City's long-term financial
sustainability principles
40 TBD TBD TBD N/A
ED staff time to
coordinate with CDD
staff to define
recommended actions
and policies
New
7e
Evaulate older industrial sites/areas to
determine potential for redevelopment with
updgraded/contemporary industrial buildings;
define incentives to encourage reinvestment in
these sites; pursue financing mechanisms such as
Industrial Development Bonds, Enhanced
Infrastructure Financing Districts, etc.)
120 TBD TBD $$$
ED staff time to
coordinate with CDD
staff and development
community to define
recommended actions
and policies; contract
costs include
professional services
necessary to put
financing mechanisms in
place
New
8a
Continue (and potentially expand) City programs
and incentives that encourage commercial
property owners to make needed building
upgrades (façade improvements, etc.)
120 120 120 120 120 $$ per year (once
implemented)
Staff memorandum
outlining program
recommendations, costs
and funding sources
ED staff time to research
models and recommend
program for Modesto
Ongoing
8b
Within the context of General Plan update,
identify areas suitable for new shopping center
development consistent with future demand
growth (while still recognizing the anticipated
global reduction in retail footprints)
40 TBD TBD TBD TBD TBD
Staff memoradum
outlining recommended
actions and policies
ED staff time to review
and comment on GPU
(specific to this topic)
and coordinate with CDD
staff to target areas for
new shopping center
development
New
8c
Identify opportunities to shore up major existing
shopping centers through such incentives as
mixed-use overlays and revenue-sharing
agreements to attract new retail tenants;
prioritize high-vacancy centers
40 TBD TBD TBD TBD TBD
Staff memoradum
outlining recommended
actions and policies
ED staff time to
coordinate with CDD
staff to identify priority
areas for revitalize
existing shopping centers
New
R8: Promote revitalization and expansion of Modesto's commercial development footprint #8..
230
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 9a
Request that City's existing Developer
Roundtable serve as ad hoc housing strategy
committee
30 60 60 60 60 N/A Faciliate 2 meetings with
ad hoc committee
2-4 meetings per year
with ad hoc committee New
9b
Within context of General Plan Update, evaluate
needs and opportunities to expand and diversity
Modesto's housing stock to provide residential
options for a range of targeted demographic
groups
24 TBD TBD TBD TBD TBD
Staff memoradum
outlining recommended
actions and policies
ED staff time to review
and comment on GPU
(specific to this topic)
and coordinate with CDD
staff on opportunities to
expand an diversify
housing stock
New
9c
Continue to find ways to reduce barriers to
developing vacant parcels in the City (prioritize
infill and "building up" projects)
9d
Review development policy and remove barriers
to higher-density development (in response to
any issues identifed by housing strategy
committee)
10a
Work with City's existing Developers Roundtable
to identify issues and to guide City policy
improvements related to business/development
friendliness
40 40 40 40 40 N/A Faciliate 2 meetings with
Developers Roundtable
2-4 meetings per year
with Developers Round
Table
Ongoing
10b
Evaluate existing processes and identify
opportunities to streamline developmentapproval and business-permitting services (including opportunities to replace discretionary
reviews with by-right approvals)
160 N/A N/A N/A N/A $$$ one-time cost
Comprehensive study
completed (which is
understood to be an
update of a previous
study)
ED staff time to
coordinate review by
CDD and/or contracted
consultant
New
10c Update and publicize City’s quick-reference
zoning handout 60 16 16 16 16 N/A Updated quick-reference handout
ED staff time (may also
require CDD time not
included here)
New
40 TBD TBD TBD TBD Ongoing
Staff memoradum
outlining recommended
actions and policies
ED staff time to
coordinate with CDD
staff on opportunities to
reduce barriers to infill
and higher-density
housing development
TBD
R9: Integrate City's housing-related policies/programs with ED opportunities R10: Implement improvements in permitting/approval processes; promote Modesto as "business friendly" #8..
231
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 10d
Conduct internal customer service training,
emphasizing that one of the primary jobs of City
staff is to protect the reputation of the City
60 N/A N/A N/A N/A $$ one-time cost Training program
completed
ED staff time to
coordinate training led
by contracted consultant
(or could be done inhouse by HR
Department)
New
10e
Provide mechanism whereby industry
stakeholders can be actively involved in
reviewing City's CIP and development impact
fees; this could potentially be a function of the
Developers Roundtable
24 24 24 24 24 N/A
Stakeholder review
completed and
documented (annually)
ED staff time to
coordinate with
Developers Roundtable
(specific to this topic)
New
10f
Coordinate with County of Stanislaus to improve
County regulations impacting Modesto
businesses
10g
Work with County to improve overly restrictive
regulations affecting home-based food
businesses (State has recently changed retail
food code to facilitate this type of business
development; County regulations should be at
least as permissive as the State's)
10h Launch One Stop Business Permitting Center to
facilitate new business openings 1,000 500 500 500 $$ one-time cost

0.5 FTE to design and
launch; 0.25 FTE to
maintain
New
10i Launch One Stop Approval Center for
commercial/industrial development projects 1,000 500 500 500 $$ one-time cost

0.5 FTE to design and
launch; 0.25 FTE to
maintain
New
10j
Review County's Public Facilities Financing
District (which overlays or overlaps with City's
development impact fees) and ensure equity and
competitiveness (this action item might best be
carried out through an independent/impartial
consultant)
40 N/A N/A N/A $$ one-time cost Staff time and/or
consultant cost New
$60
Initial coordination with
County completed;
recommendations
implemented to the
degree practical
ED staff time for
coordination with
County staff (assumed to
occur on an ongoing
basis)
60 60 60 60 60 New
#8..
232
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 11a
Create online resource/directory (managed by
City) highlighting programs offered by
Consortium partners
500 96 96 96 N/A

0.25 FTE to setup
directory; 1 day per
month to maintain
New
11b
In coordination with partners, evaluate feasibility
of expanded vocational training to facilitate
career transitions of seasonal agricultural
workers (e.g., to construction trades)
80 TBD TBD N/A (partner-funded
costs)
ED staff time to research
models and coordinate
with partners
New
11c
Evaluate the cost, desirability and feasibility of
adopting "Go Educate" (or similar platform) as a
possible partner or consortium resource (this
investment would potentially be funded by
consortium partners)
80 TBD TBD
TBD - potentially a
significant cost that
would be shared by
partners
ED staff time to research
models and coordinate
with partners
New
12a
Within the context of the City's ongoing outreach
to the business community, implement processes
for identifying the workforce
development/training needs of local employers;
work with WFD partners to identify appropriate
mechanisms (e.g., business surveys) to gain
insight into the training needs of local employers
160 60 60 N/A
Staff time for setting up
and implementing
annual online survey of
local employers (initial
survey would be treated
as a pilot project, with
continuation in future
years subject to
effectiveness of initial
effort
New
12b
Work with partners to implement survey of
graduates of partner-sponsored training
programs to track placement and career-path
outcomes (scope of City's role in this process
would require buy-in of partners and might be
focused on specific training programs most
relevant to City's ED objectives)
160 60 60 N/A
Staff time for setting up
and implementing
annual online survey of
training program
graduates
New
R11: Establish Modesto Talent Development Consortium
R12: Develop City-specific support services to supplement partner-led workforce development programs #8..
233
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 12c
Consider expanded local-hire policy
encompassing City employee recruitment and
businesses and/or development projects
receiving City financial support
40 N/A N/A N/A
Staff time to research
models and recommend
policy changes
New
12d
Work with WorkSource and WIB to investigate
the desirability and feasibility of pursuing
regionwide designation for Certified Work Ready
Communities (CWRC)
40 N/A N/A
Staff time to research
models and recommend
action steps
New
12e
Supplement resources available (through partner
organizations) to address significant literacy
challenges in the community; as a pilot effort,
investigate feasibility of investing in Cell-Ed (or
similar resource) as a way to focus attention on
this issue
80 TBD TBD
Staff time to research
models and recommend
actions and investments
New
13a Actively participate in Circular Bio Collaborative
(CBIO) associated with BEAM Circular 180 180 180 180 180 N/A Staff memo summarizing
Year 1 involvement with
CBIO (TBD based on
status of CBIO)
Assume an average of 15
hours per month for
meetings and
coordination
Ongoing
13b
Contract with BEAM Circular organization to
provide a Modesto-specific assessment of site
selection strengths/weaknesses relative to
bioeconomy opportunities
40 N/A N/A N/A N/A $$ one-time cost Assessment completed ED staff time to oversee
work contracted to
BEAM Circular
New
13c
Focus City-level entrepreneurial development
resources (incubators, etc.) on emerging
opportunities in the bio-circular economy (see
also recommendations and action items under
Entrepreneurism and Innovation) - see Action
Item 17a for funding strategy for City's
entrepreneurial development programming
Hours and costs covered
by Recommendation 17 Hours and costs covered by Recommendation 17 New R13: Position Modesto as a leader in BEAM Circular initiative #8..
234
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 14a
Proactively engage with Stanislaus 2030
leadership to identify specific opportunities for
City to tie local programming to countywide
resources being developed as part of Small
Business Strategy and Implementation Roadmap;
identify potential opportunities to maximize
connection to countywide resources through
supplemental City investments in marketing,
service delivery to underserved communities,
satellite offices, etc.
180 180 180 180 180 N/A
Staff memo summarizing
Year 1 involvement with
Stanislaus 2030
Assume an average of 15
hours per month for
meetings and
coordination
New
14b
Leverage Stanislaus 2030's "Nurture" program
(training and micro grants) to expand the
availability of home-based childcare businesses
48 48 48 48 48
$$$ one-time cost to
support Stanislaus
2030's training and
microgrant program (City
has already commited
these funds)
Staff memo summarizing
Year 1 involvement with
Stanislaus 2030
Assume an average of 4
hours per month for
coordination with
Stanislaus 2030, specific
to this program
Ongoing
15a
Leverage NVT programs related to hazard
mitigation, climate action and climate resilience;
use NVT baseline assessments and monitoring
framework to establish comparable measures to
track these issues at the city level
180 180 180 180 180 N/A
Staff memo summarizing
Year 1 involvement with
NVT
Assume an average of 15
hours per month for
meetings and
coordination
Ongoing
15b
Establish city-level framework (based on NVT
metrics) to track Modesto's socioeconomic
progress over time

N/A N/A N/A N/A N/A N/A
15c
Coordinate with Stanislaus County to develop an
Integrated Multi-Jurisdictional Climate Action,
Adaptation, and Resiliency Plan (ICAARP);
integrate ICAARP implementation with City
programs related to BEAM Circular and NVT
initiatives
100 N/A N/A N/A N/A $$$ one-time cost
Completed ICAARP
(pending partner/ grant
funding to support cost)
One-tme, contracted
effort to develop
ICAARP; indicated hours
are for staff oversight
time
New
R14: Leverage small business support system being luanched by Stanislaus 2030 R15: Leverage research and strategic framework of North Valley Thrive (NVT) #8..
235
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 16a
Working with the City Manager's Office, define a
process and priorities for influencing federal,
state, and county legislation that improves the
region's preparedness for business development
16b
Define practicable ways to support regional and
state-level partners in positioning the NSJV to
gain better access to federal funding and
incentive programs (e.g., CHIPS Act)
16c
Support partners (e.g., MCCD, MID, etc.) in
managing air/water quality regulations that
impact local business development; participate in
monthly MCCD working committees
16d
Coordinate wth utility service providers to
identify ways City could facilitate increasing the
capacity of power, water, natural gas, and
telecom/fiber infrastructure
40 16 16 16 N/A
Year 1 hours cover staff
research and outreach to
utilities
Ongoing
16e
Advocate for retaining and expanding region's
rail freight capabilities (conduct outreach to rail
companies to define best ways for City to
facilitate expanded capacity)
40 16 16 16 N/A
Year 1 hours cover staff
research and outreach to
rail freight companies
Ongoing
16f
Work with regional partners to improve local
road and state highway systems; work with
Caltrans to improve landscaping and overall
visual appeal of State Route 99
20 8 8 8 N/A
Year 1 hours cover staff
research and outreach to
Caltrans and regional
partners
Ongoing
80 40 40 40 N/A New
Year 1 hours cover staff
research and outreach to
partners/ stakeholders
R16: Actively collaborate with regional partners to improve region-wide conditions #8..
236
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 17a
Develop overall funding/financing strategy to
support implementation of a robust, City-led
entrepreneurial development initiative; the
following categories of funding opportunities
should be investigated: federal grants (e.g., EDA
funding for incubator/accelerator programming);
fees for services; corporate sponsorships; City
participation in regional funding allocations
related to (e.g.) BEAM Circular implementation;
and private banks (for business lending); partner
with entrepreneur/startup education programs
such as WEI
500 N/A N/A N/A N/A N/A
Staff report outlining
recommended funding
sources and strategies
One-time effort to
research funding options
and recommend strategy
New
17b
Based on strategy defined in Action Item 17a,
pursue EDA funding to implement
incubator/accelerator programming
160 N/A N/A N/A N/A N/A Application submitted to
EDA
One-time effort for
preparation of grant
application
Ongoing
17c
(Through Stanislaus 2030) Develop robust,
streamlined referral network such that there are
direct pathways for entrepreneurs to access
support across their journeys (potentially in the
form of a one-stop-shop solution), including
providing wraparound support in the form of
technical assistance as a precursor to accessing
capital from CDFIs
500 180 180 180 180 N/A Online referral network
setup and operational
Assume one-time effort
of 0.25 FTE (Year 1) and
ongoing effort of 180
hours per year (Years 2-
5)
New
17d
Expand access to capital / business financing;
become clearinghouse for funding programs
offered by partner organizations
100 60 60 60 N/A
Staff time to coordinate
with partners, profile
programs, and
summarize on City's ED
website
New
R17: Establish City Office of Entrepreneurism and Innovation #8..
237
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 17e
(Through Stanislaus 2030) Evaluate the
feasibility of establishing a revolving loan fund to
offset risk from CDFI partners (contingent on
identifying viable funding sources, pursuant to
Action Item 17a)
200 N/A N/A N/A N/A
Staff to coordinate with
parters and complete
internal feasibility study
Ongoing
17f
Develop (or support partner-led development) of
an "Innovation Center" where prospective
entrepreneurs can pitch business ideas; sponsor
"pitch fest" (either as part of an Innovation
Center concept or as a stand-alone event) -
sponsorships would be key to supporting this
effort; this action item could have linkage to
CSU's Warrior Entrepreneurship & Innovation
(WEI) program
500 500 500 500 $$ per year (potentially
offset by sponsorships)

0.25 FTE to develop
program; 0.25 to repeat
annual event
New
17g
Explore ways City could implement "open data"
concepts/tools to enhance business environment
and support entrepreneurial development (the
initial research for this idea should answer the
question, "What sharable data does the City
have that entrepreneurs need?")
200 TBD TBD TBD N/A
Staff time to research
models and recommend
action items
New
17h
Contingent on the availability of funding support
(per Action Item 17a), develop and promote
(directly and/or through partners) incubator and
accelerator facilities and programming in
Modesto; position these as key site selection
assets for regional target industries such as the
Bioeconomy (see also Recommendation 13
related to the BEAM Circular initiative)
500 TBD TBD TBD
Staff time to develop
program (scaled to
available funding)
New
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238
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 18a
Implement business attraction program focused
on targeted industries in "traded" clusters (see
Chapter 7 for details)
1,000 1,000 1,000 1,000 1,000 $$ per year (for travel to trade shows, etc.)
Year 1 progress report
detailing marketing
investments, events
attended, leads
generated, businesses
attracted
Assume 0.5 FTE Ongoing
19a Pursue implementation recommendations of
forthcoming Retail Strategies report 1,000 1,000 1,000 1,000 1,000 $65,000 per year (for
travel to trade shows,
etc.)
Year 1 progress report
detailing marketing
investments, events
attended, leads
generated, businesses
attracted
Assume 0.5 FTE New
20a
Conduct regular visits to local businesses;
consider other mechanisms (e.g., meetings,
online surveys, etc.) for outreach to the existing
business community; focus on traded-sector
companies; utilize Salesforce CRM platform to
track contacts
1,500 750 750 750 750 N/A
Year 1 progress report
detailed number of
businesses contacted,
services provided, and
outcomes
20b
Develop and implement business assistance
program (incentives/resources to customize
responses to businesses needing retention
services); incorporate partner resources in BRE
"tool box" as appropriate
20c
Partner with statewide business advocacy
organizations (e.g., Small Business Majority) to
provide input on local, culturally-sensitive needs
and issues
750 750 750
Assume 0.75 FTE
750 N/A
New
R18: Implement business attraction program focused on "traded" industry clusters R19: Implement retail/restaurant business attraction program R20: Implement "boots on the ground" BRE program
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Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 21a
Launch "business concierge" program aimed at
streamlining the startup process for small/micro
businesses
21b
Assist businesses with access to SBA loans and
other discounted financing (City's role would be
focused on referring cases to SBA and possibly
supporting clients in navigating the SBA
application process)
21c
Address issue of unpermitted business
operations (facilitate educating these operators
of legal requirements; provide bilingual access to
licensing awarness/training followed by a limited
amnesty; consider developing incubator space to
legitimize these microenterprises; in longer term,
address unpermitted operations through stricter
enforcement measures)
500 500 500 500 500 N/A
Staff report
recommending policies
and resources for
addressing issue of
unpermitted businesses
in Crow's Landing area
Assume 0.25 FTE New
21d
Evaluate potential approaches to facilitating
small business opportunities within the fledgling
cannabis industry (research and adapt best
practices from other CA cities)
80 24 24 24 24 N/A
Staff report oultining
recommended strategic
approach to cannabis
industry
Staff hours for
researching options and
implementing
recommeded actions
based on research
New
21e
Actively promote small business networking in
Modesto (e.g., through online forum); this effort
should initially be launched as a pilot/ test
program to determine the level of demand for
these services
500 180 180 180 N/A Staff time to setup online
networking platform New
21f
In collaboration with SBDC, promote
mentor/mentee relationships for entrepreneurs
and small business operators
180 180 180 180 N/A
Assume 15 hours per
month to coordinate
with SBDC
New
New
R21: Implement small business startup and assistance program N/A
Program launched;
annual report detailing
program investments
and results (firms
assisted, etc.)
1,000 1,000 1,000 1,000 1,000 Assume 0.5 FTE
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240
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 21g
Assess existing City procurement policies that
provide opportunities for Modesto-based small
businesses and identify opportunities to
strengthen this incentive
40 N/A N/A N/A N/A
Staff time to research
models and recommend
policy changes
New
21h
Conduct outreach to local banks/credit unions to
identify opportunities to expand access to capital
for small business expansions; prioritize
attraction of new banking institutions to
neighborhoods/ districts that are currently
underserved
180 180 180 180 N/A
Assume 15 hours per
month for ongoing
outreach to banks
New
21i
In collaboration with SBDC, assist smaller firms in
incorporating new technologies (e.g., AI) into
their business operations
180 180 180 N/A
Assume 15 hours per
month to coordinate
with SBDC
New
21j
In collaboration with SBDC, research and respond
to topics of concern to the local business
community (e.g., potential challenges getting
insurance due to proximity to rising-risk fire
areas)
180 180 180 N/A
Assume 15 hours per
month to coordinate
with SBDC
New
22a
Convene tourism development taskforce focused
on attracting additional visitor facilities and
providing programmatic support (events, etc.) to
visitor attraction efforts; identify specific roles
City can play within this consortium (which
would ultmately be led by Visit Modesto)
60 60 60 60 60 $60 Faciliate 2 meetings with
taskforce 2-4 meetings per year New
22b Support active implementation of Visit Modesto
strategic plan (2024) 120 120 120 120 120 $120
TBD defined based on
direction of Visit
Modesto
Staff time for ongoing
support of Visit Modesto
(average of 10 hours per
month)
Ongoing
R22: Lead coordination of organizations/initiatives focused on expanding tourism #8..
241
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations 22c
Prioritize attraction/development of businesses
that can attract tourists and capture visitor
expenditures; this effort would include a focus
on attracting affordable sports and
entertainment opportunities to Modesto
240 120 120 120 120 N/A
Meetings with 6
developers; coordination
with USL
Staff time for outreach
to development
community (assume 12
hours per month during
Year 1 and 10 hours per
month in later years)
Ongoing
22d Attract another "branded" hotel to Downtown
Modesto 60 60 60 60 N/A
Staff time for outreach
to development
community (assume 5
hours per month,
specific to this topic)
Ongoing
22e Investigate potentials for casino development in
Modesto 60 N/A N/A $$ one-time cost
Staff time to support and
coordinate consultantled feasibility studyNew
23a
Consider positioning of City's ED program within
overall organization structure (i.e., determine
optimal City department to house program)
60 N/A N/A N/A N/A N/A
Determine made
regarding preferred
positioning of ED pgoram
Staff time to coordinate
initial City decisionmaking processNew
22b Prepare annual EDSP progress report 100 100 100 100 N/A N/A Staff report summarizing
Year 1 progress, and
defining milestones and
recommended staff
allocations (FTE) by
action item for Year 2
Staff reporting time
based on milestones and
metrics outlined in EDSP
New
22c Prepare 5-year update of EDSP 200 $$$ one-time cost Staff time to manage
consultant selection and
oversight of new EDSP
process
New
R23: Allocate staff time for initial and ongoing EDSP administration #8..
242
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations ME1a Administer and Clerk Entertainment Commission 156 156 156 156 156 N/A 5 hrs bi-weekly Ongoing ME1b Service Customers and Process Entertainment
Permits 1,000 1,000 1,000 1,000 1,000 N/A Ongoing
ME1c Prepare Annual Entertainment Commission
Report
40 40 40 40 40 N/A Ongoing
ME2a Facilitate USL Stakeholder Meetings 372 372 372 450 450 N/A Encourage alignment of
Stakeholders and Public
to kickstart project
Staff to attend and
facilitate weekly
meetings, manage
working sessions, create
reports, pioneer project
initiatives, and oversee
all other duties
corresponding to project
management.

Ongoing
ME2b Facilitate Former Courthouse Stakeholder
Meetings 372 372 372 450 450 N/A
Encourage alignment of
Stakeholders and Public
to kickstart project
Staff to attend and
facilitate weekly
meetings, manage
working sessions, create
reports, pioneer project
initiatives, and oversee
all other duties
corresponding to project
management.

Ongoing
ME2c Assist Developers with Permit Process and
Participate in Development Review Team 372 372 372 450 450 N/A Ongoing ME1: Entertainment Commission
Maintenance of Effort Staff Programming
ME2: Predevelopment Support
#8..
243
Year 1 Year 2 Year 3 Year 4 Year 5
New or
Ongoing/Existing
Program
(Key to cost estimates: $ = less than $50,000 | $$ = $50,000 to $100,000 | $$$ = more than $100,000) Estimated Annual Staff Hours
APPENDIX A: ACTION PLAN DETAILS BY YEAR
Potential Costs of
Contracted Services Year 1 Milestones Other Considerations ME3a DID/DoMo 208 208 208 208 208 Ongoing
ME3b Visit Modesto 208 208 208 208 208 Ongoing
ME3c EIFD 52 52 52 52 52 Ongoing
ME4a Kiernan Business Park Analysis 26 N/A N/A N/A N/A Ongoing ME4b Bloomberg Philanthropies Asphalt Art 208 208 N/A N/A N/A Ongoing ME4c Clean California Grant 52 N/A N/A N/A N/A Ongoing
ME4d ARPA Execution and Monitoring 156 156 N/A N/A N/A Ongoing ME4e Implement new software and systems (e.g.,
Salesforce, Zapier, etc.) 80 20 20 20 20 Ongoing
1a Strategic Leadership and Planning 728 728 728 728 728 Ongoing 1b Operations Management and Execution 637 637 637 637 637 Ongoing 1c Talent Management, Risk, and Compliance 455 455 455 455 455 Ongoing Total Hours by Year 17,056 19,900 20,272 19,046 19,125
Total FTE @ 1,820 person hours per FTE 9.4 10.9 11.1 10.5 10.5 *FTE=2,080 hours less 104 hours for holidays, 80 hours PTO, 76 hours Administration/Mandatory Training = 1,820 effective hours Total Strategic Plan Hours by Year 11,934 14,916 15,652 14,192 14,271 Total FTE @ 1,820 person hours per FTE 6.6 8.2 8.6 7.8 7.8 Total ME Hours by Year 5,122 4,984 4,620 4,854 4,854
Total FTE @ 1,820 person hours per FTE 2.8 2.7 2.5 2.7 2.7 Total New Hours by Year 8,902 10,734 11,090 9,810 9,889 Total FTE @ 1,820 person hours per FTE 4.9 5.9 6.1 5.4 5.4 Total Ongoing Hours by Year 8,054 8,416 8,032 8,086 8,086 Total FTE @ 1,820 person hours per FTE 4.4 4.6 4.4 4.4 4.4 ME3: Special District Implementation
ME4: Special Projects
ME5: Management
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244
CITY OF MODESTO, CA | EDSP
APPENDIX B: MENU OF KEY

PERFORMANCE INDICATORS
#8..
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Metric Quantified Goal
Business Engagements Total
Advisory Services count
Retention count
Expansion count
Attraction and Development count
Attraction count
Fulfillment count
Property Development count
Incentives count
New Business count
Tourism-Visitation count
Film count
Jobs retained by assisted firms count
Jobs created by attracted firms count
Jobs retained in target industries (subset) count
Jobs created in target industries (subset) count
Marketing & Networking
Total impressions Total
Outbound email count
City Social Impressions count
City Social Interactions count
Linkedin ED followers count
LinkedIn ED unique impressions
count
LinkedIn posts count
LinkedIN ED clicks count
LinkedIn CTR rate
LinkedIn Engagement Rate rate
Pageviews/sessions modestogov.com econ dev count
Articles modestogov.com count
KPI Category
#8..
246
KPI Category Metric Quantified Goal
Pageviews choosemodesto count
articles ChooseModesto.com count
Webinar attendees count
Film Permits count
Other count
Community Engagement & Events
CV Real Estate Summit participants
CV Real Estate Summit sponsorships / revenue ($)
Workforce Development Forum participants
Other Forums participants
Added contacts in ED database count
Newsletter circulation count
ED exposure at community events participants
Events for young professionals participants
Outreach events in underserved areas number of events
Outreach events in underserved areas participants
New Development / Investment
Downtown
Downtown housing units
Downtown housing assessed value
Downtown commercial space square feet
Downtown commercial space assessed value
Downtown hotels square feet
Downtown hotels assessed value
Other Downtown investment assessed value
New Downtown businesses count
Citywide
Housing units
Housing assessed value
Commercial space square feet
#8..
247
KPI Category Metric Quantified Goal
Commercial space assessed value
Hotels square feet
Hotels assessed value
Other Investment assessed value
New businesses count
Development Approval & Permitting*
Average timeframe for development approval weeks/months Average timeframe for business permitting weeks/months
*Could potentially be segmented by type/size of project Web Traffic for EDSP Online Initiatives
Library of Business Assistance Resources (English) count Library of Business Assistance Resources (Spanish) count Events Calendar count
Online resource directory for Talent Development
Consortium count
Entrepreneurial and Small Business Development*
Participation in Pitch Fest count (number of pitches)
Participation in Pitch Fest count (overall participants) SBDC business referrals count
SBDC mentor/mentee participants count
SBA loans (funding secured by cases referred by City)
number of cases; dollar
amount
Funding secured through partner organizations (funding
secured by cases referred by City)
number of cases; dollar
amounts by partner
Total contacts by prospective startups count
Entrepreneurial Development
Number of new startups count
Jobs created by new startups count
Job growth in prior-year startups count
Small Businesses
Total contacts by prospective startups count
Number of new startups count
#8..
248
KPI Category Metric Quantified Goal
Jobs created by new startups count
Job growth in prior-year startups count
*Where possible, track special targets (e.g. bio-circular startups) separately.

Broader Economic Indicators
Unemployment Rate percentage rate Compare trend to CA, US Taxable retail sales (Citywide) total dollar amount Compare growth rate to County Taxable retail sales (Downtown) total dollar amount Compare growth rate to County Real Estate Metrics
Modesto Property Assessed Valuation (segment by land
use) Compare growth rate to County
MultiFamily asking rent/sqft Compare growth rate to County Office asking rent/sqft Compare growth rate to County
Retail asking rent/sqft Compare growth rate to County
Industrial price/sqft Compare growth rate to County
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249
CITY OF MODESTO, CA | EDSP
APPENDIX C: TWO-YEAR GOALS /

PERFORMANCE INDICATORS
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CITY OF MODESTO, CA | EDSP
Potential Goals and Performance Measures
Fiscal Years 2025-2026 and 2026-2027
This appendix outlines potentials goals and performance measures for the first two years of implementation (FY 2025-2026 and FY 2026-2027). It is expected that these goals/measures will be refined as the City proceeds with implementation of the EDSP.

Priority Focus 1: Facilitate Development in Downtown
A. Stimulate Office Investment

1. Apply for EDA technical assistance to evaluate the feasibility of a tech co-working space incubator within 12 months.

2. Secure development agreement for one new Headquarters within two years.

3. Partner with Beam Circular to evaluate redevelopment needs for a new Biomanufacturing testbed within 12 months
B. Support Infrastructure Planning and Investment

1. Develop a comprehensive capital improvement plan to support infill in downtown within 12 months; identify grants and funding opportunities within 18 months; apply for grants within 24 months.

2. Apply for Office of Planning and Research Transient Oriented Development Overlay technical assistance within 12 months.

3. Develop a partnership strategy for the acquisition and development of the former courthouse within 12 months.

4. Complete engineering designs and plans for quiet zones within 12 months; launch quiet zones within 24 months.

Priority Focus 2: Develop a Sports and Entertainment District A. United Soccer League (USL): Establish a formal, ongoing, agreement with the United Soccer League to enhance community engagement and economic development through soccer-related events and activities

1. (3 months) Finalize the agreement with USL within three months. Outline the scope of partnership, including potential events, and activities. Hold a major press conference.

2. (6 months) Complete a comprehensive feasibility study to identify suitable locations for a temporary or permanent soccer venue in downtown

3. (9 months) Establish a temporary venue to host initial events #8..
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CITY OF MODESTO, CA | EDSP

4. (12 months) Organize soccer clinics, youth camps, and fan meet-and-greets to build community support and excitement.

5. (18 months) Organize and promote a high-profile soccer match or tournament in the temporary venue.

6. (24 months) Secure investment, grants, sponsorships, and partnerships to support the construction of a permanent soccer stadium.

Priority Focus 3: Facilitate Business Investment
A. Develop a comprehensive marketing and support program for retaining, expanding, attracting, and forming business investments, including training, networking opportunities, financial incentives, and resources for scaling operations; focus on biomanufacturing traded sector investments.

1. Facilitate investment of $300 million through the attraction of new businesses/development over first five years.

2. Facilitate 300 new jobs within first five years

3. Launch a targeted marketing campaign aimed at industrial businesses within the next 6 months, measure results over 24 months. (Note: the feasibility of the indicated targets will depend on the amount of funding available to support advertising.)
a. Contribute 50 prospects to the CRM book of business
b. Generate 5 qualified leads from industrial sector prospects. c. Convert 20% of leads into new business investments
d. Create 10 new pieces of marketing collateral (articles, guides, brochures, flyers, etc.). e. Increase the distribution of marketing materials by 30%. f. Increase website traffic by 20% through targeted campaigns. g. Achieve a 15% increase in brand mentions across media outlet. h. Conduct 3 brand awareness surveys and achieve a 90% positive recognition rate. i. Grow LinkedIn followers by 5% across all platforms per quarter. j. Achieve an average engagement rate of 1% on LinkedIn posts. k. Increase the number of social media shares by 20% per quarter (for first two quarters; re-evaluate goal thereafter).
l. Track number of social media posts and followers.

4. Business Retention Program
a. 10% of existing businesses engaged with annually3
b. Achieve 90% retention rate
c. Maintain a NPS greater than 30
d. Maintain a CSAT greater than 60
3 In order to track business retention efforts, City will need to ensure that available business license data are an accurate resource for measuring annual changes in the number of businesses in Modesto. Some categories of businesses (e.g., part-time, one-person companies) may need to be tracked separately in order to yield meaningful comparisons from year to year.
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

June 10, 2025
Date: April 17, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Commercial Cannabis Retail Permit Renewals
CONTACT: Sean Rando, Business Analyst,
[email protected], 209-577-5473
DESCRIPTION:

Consider approving the renewal of eight (8) Commercial Cannabis Retail Permits for dispensaries in the City for a two-year period ending June 30, 2027. (Funding Source:

Commercial Cannabis Permit Fee)
STRATEGIC PLAN ELEMENT:

This item is consistent with the City Council 2025-2026 Strategic Plan Goal E, Drive Economy Vitality.

BACKGROUND:

In December 2017, the City Council adopted Ordinance 3684-C.S. legalizing certain commercial cannabis business operations in particular zoning districts. On December 19, 2018, by Resolution 2018-566, the City Council approved and issued eight (8) cannabis retail permits, which were valid for a period two (2) years from that date. Each permitted business has been successfully renewed their permit for additional two-year cycles since 2018 with the current permit period expiring on June 30, 2025.

Pursuant to Modesto Municipal Code section 10-3.704 (f)(5), commercial cannabis permits shall be valid for two (2) years, although the City may require an annual permit fee. On November 14, 2023, under Resolution No. 2023-504, the City Council approved the current amounts for this Annual Commercial Cannabis Permit Fee noted below:
 Operational cannabis businesses are charged $18,732 annually for the on-going program administration and monitoring, annual inspections, and financial audits.  Non-operational cannabis businesses are $4,307 annually for on-going administrative monitoring and regulatory support as they work towards completing their tenant improvements on their way to becoming a revenue generating operational business.

The City has also established a permit renewal application process to provide guidance and supplement the payment of the annual fee with a structured permit renewal process. The #9..
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City Council, June 10, 2025
Commercial Cannabis Retail Permit Renewals