Agenda packet, first session — Modesto City Council, November 4, 2025 (part 3 of 4)

26.43 57.20

58.20 201.46

60.98 328.34
2,251.88
-122.41
132.43
600.00
169.70
493.40
TOTAL FOR CHECK:

TOTAL FOR CHECK:

TOTAL FOR CHECK:
6,287.18
4,984.85
377.84
3,190.24
310694
310694
310775
310775
310811
309383
300182
300182
300182
309383
309877
306506
307005
310121
310026
306214
308147
310527
310708
310900
310639
310581
310588
310188
310188
310813
309368
310325
Attachment 5, Vendor ePayables
#10..
- 414 -
Bank: BMO BMO Main
Branch
Branch: BMO E-Payables
(Main)
Account:

CHECK
NUMBER
VENDOR

NAME SITE INVOICE NUMBER

INVOICE
DATE

PAYMENT
AMOUNT
** CITY OF MODESTO **
REPORT ID: COMAPCHKREG.rdf PAYMENT CHECK REGISTER
02-OCT-25 Page: 23
PO
NUMBER
Total: 599 371,644.02
818842
818843
818844
620050

SAFE-T-LITE OF

MODESTO INC

WESTURF NURSERY

WILLE ELECTRIC

SUPPLY CO INC

FLORY INDUSTRIES
INC
406087
406064
406298
406299
406287
406301
406297
406284
406016
406315
406300
1028180
S2265417.001
S2264663.001
S2264466.002
S2265212.001
520666
02-SEP-25
29-AUG-25
12-SEP-25
12-SEP-25
11-SEP-25
12-SEP-25
12-SEP-25
11-SEP-25
28-AUG-25
15-SEP-25
12-SEP-25
15-SEP-25
03-SEP-25
08-SEP-25
04-SEP-25
02-SEP-25
21-AUG-25
157.48

51.32 103.45
1,243.14
569.19
1,243.14
1,173.42

18.46 111.66
590.12
-1,243.14
276.30

48.75 293.74
1,018.83
746.39
196.28
TOTAL FOR CHECK:

TOTAL FOR CHECK:

TOTAL FOR CHECK:
4,681.34
276.30
2,107.71
196.28
310328
310329
310114
310336
310864
310336
308398
310732
310860
310863
310336
310711
310480
310742
310731
310484
309034
Attachment 5, Vendor ePayables
#10..
- 415 -
1/1/1900 Attachment 6 - Vendor Wire SEPTEMBER 2025
1/1/1900 (1,000.00)
DATE Vendor Amount
9/2/2025 CalPers (PPE 8/25/25) 1,277,012.44
9/11/2025 Optum Bank (PPE 9/8/25) 18,184.91
9/11/2025 Charles Schwab (PPE 9/8/25) 39,456.40
9/12/2025 FSA Contribution (PPE 9/8/25) 6,330.27
9/12/2025 MissionSquare ICMA 401 (PPE 9/8/25) 17,110.36 9/12/2025 MissionSquare ICMA 457 (PPE 9/8/25) 270,807.64 9/12/2025 MissionSquare RHS (PPE 9/8/25) 50,910.00
9/12/2025 MissionSquare ICMA IRA (PPE 9/8/25) 8,817.18
9/12/2025 Federal Payroll Taxes (PPE 9/8/25) 784,929.22 9/12/2025 State Payroll Taxes (PPE 9/8/25) 261,300.28
9/12/2025 State Disability Insurance (PPE 9/8/25) 36,374.91 9/12/2025 ExpertPay (PPE 9/8/25) 9,890.03
9/18/2025 CalPers (PPE 9/08/25) 1,269,930.38
9/19/2025 Wire Request 25,000.00
9/25/2025 Optum Bank (PPE 9/22/25) 18,118.37
9/25/2025 Charles Schwab (PPE 9/22/25) 89,358.64
9/25/2025 MissionSquare ICMA IRA (PPE 9/22/25) 8,743.47 9/26/2025 FSA Contribution (PPE 9/22/25) 6,459.92
9/26/2025 MissionSquare ICMA 401 (PPE 9/22/25) 17,141.74 9/26/2025 MissionSquare ICMA 457 (PPE 9/22/25) 276,076.69 9/26/2025 MissionSquare RHS (PPE 9/22/25) 51,090.00
9/26/2025 Federal Payroll Taxes (PPE 9/22/25) 822,574.78 9/26/2025 State Payroll Taxes (PPE 9/22/25) 272,160.66
9/26/2025 State Disability Insurance (PPE 9/22/25) 38,702.43 9/26/2025 ExpertPay (PPE 9/22/25) 10,518.75
Total 5,686,999.47
#10..
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CoM PRIMARY Report Date: 14-OCT-2025 10:19
Void Payment Register Page: 1
Include Zero Amount Payments: No Period From: 01-SEP-25 To: 30-SEP-25 Display Payee Address: Yes Date: Void Date
Bank: BMO Branch: BMO Main Branch Account: BMO Main Account AP Checks Bank Account Currency: USD Payment Currency: USD ( US Dollar ) Payment Number Date Payee Name Site Address Payment Amount Void Date --------------- --------- --------------------------- --------------- --------------------------------- ----------------- --------- Payment Document: CoM AP BoTW Check
610907 21-MAR-25 CoM Utilities MODESTO 1010, 10th Street 76.78 25-SEP-25 Modesto, CA 95354
United States
613807 16-MAY-25 COM TRAKIT MODESTO 1010 10TH STREET 785.20 04-SEP-25 MODESTO, CA 95354
United States
614875 06-JUN-25 CoM Utilities MODESTO 1010, 10th Street 122.87 18-SEP-25 Modesto, CA 95354
United States
615951 27-JUN-25 CHARLES MACHINE WORKS INC MAIN4 PO BOX 35144 #5077 2,946.12 10-SEP-25 SEATTLE, WA 98124-5144
United States
617741 01-AUG-25 Lemus, Martin OFFICE 746.51 18-SEP-25
617858 01-AUG-25 ALL TRAFFIC SOLUTIONS INC MAIN 14201 SULLYFIELD CR, STE 300 950.00 10-SEP-25 CHANTILLY, VA 20151
United States
618286 08-AUG-25 CoM Utilities MODESTO 1010, 10th Street 292.27 18-SEP-25 Modesto, CA 95354
United States
619277 22-AUG-25 CoM Utilities MODESTO 1010, 10th Street 175.15 10-SEP-25 Modesto, CA 95354
United States
619477 29-AUG-25 Englent, Robert A OFFICE 146.80 10-SEP-25 619797 05-SEP-25 Stone, Nicole M OFFICE 1,180.14 25-SEP-25 619800 05-SEP-25 Ulrich, Mark Joseph OFFICE 1,066.60 18-SEP-25 619835 05-SEP-25 COM HDL MODESTO 1010 10TH STREET 100.00 25-SEP-25 MODESTO, CA 95354
United States
620178 12-SEP-25 Avalos, Janell OFFICE 328.00 25-SEP-25 620573 19-SEP-25 CoM Utilities MODESTO 1010, 10th Street 200.59 25-SEP-25 Modesto, CA 95354
United States
Attachment 7, Voided Checks
#10..
- 417 -
-----------------
Payment Document Subtotal 9,117.03
-----------------
Bank Account Subtotal 9,117.03
CoM PRIMARY Report Date: 14-OCT-2025 10:19
Void Payment Register Page: 2
Include Zero Amount Payments: No Period From: 01-SEP-25 To: 30-SEP-25 Display Payee Address: Yes Date: Void Date
Bank: BMO Branch: BMO Main Branch Account: BMO ACH AP (Main) Bank Account Currency: USD Payment Currency: USD ( US Dollar ) Payment Number Date Payee Name Site Address Payment Amount Void Date --------------- --------- --------------------------- --------------- --------------------------------- ----------------- --------- Payment Document: CoM AP BMO Main ACH
702590 25-SEP-25 MODESTO DOWNTOWN IMPROVEMEN ACH NEW ACH 8366 NEW 44,737.00 30-SEP-25 MODESTO, CA 95354
United States
-----------------
Payment Document Subtotal 44,737.00
-----------------
Bank Account Subtotal 44,737.00
CoM PRIMARY Report Date: 14-OCT-2025 10:19
Void Payment Register Page: 3
Include Zero Amount Payments: No Period From: 01-SEP-25 To: 30-SEP-25 Display Payee Address: Yes Date: Void Date
Bank: BMO Branch: BMO Main Branch Account: BMO E-Payables (Main) AP Bank Account Currency: USD Payment Currency: USD ( US Dollar ) Payment Number Date Payee Name Site Address Payment Amount Void Date --------------- --------- --------------------------- --------------- --------------------------------- ----------------- --------- Payment Document: Epayable
816847 22-MAY-24 JORGENSEN AND CO E-PAY 2366 E-PAY 2366 1,604.32 04-SEP-25 SAN FRANCISCO, CA 94139
United States
-----------------
Attachment 7, Voided Checks
#10..
- 418 -
Payment Document Subtotal 1,604.32
-----------------
Bank Account Subtotal 1,604.32
-----------------
Report Count: 16 Report Total 55,458.35
*** End of Report ***
Attachment 7, Voided Checks
#10..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

November 4, 2025
Date: October 9, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Monthly Investment Report – August 2025
CONTACT: Calogero Maniscalco, Senior Financial Analyst
[email protected], 209-577-5219
DESCRIPTION:

Consider accepting the Monthly Investment Report for August 2025. (Funding Source: Various Funds)
STRATEGIC PLAN ELEMENT:

This recommended action supports the City’s 2025-2026 Strategic Plan Goal H: Achieve LongTerm Financial Sustainability.

BACKGROUND:

The City’s Finance Department submits a monthly investment report to Council and the City Manager. Attached are the August investment reports (see attachment list below) generated by Public Financial Management, the City’s investment advisor. Investments in the portfolio (attachment 4) are for the City of Modesto, Modesto Public Financing Authority, Community Facilities Districts, Tuolumne River Regional Park, Successor Agency to the Redevelopment Agency, and the Modesto-Ceres Fire Protection Agency Joint Powers Authority.

DISCUSSION:

It is the function of the Finance Department to deposit and invest funds in accordance with sound treasury management and to safeguard the principal and maintain the liquidity needs of the City. The purpose of the Monthly Investment Report is to keep the City Council and City Manager informed of the City’s investment portfolio. As shown in Attachment 2, on August 31, 2025, the City had a closing market value of $512,764,108 in its investment portfolio. #11..
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City Council, November 4, 2025
Monthly Investment Report – August 2025

Page 2 of 2 ends

FISCAL IMPACT:

In August, the approximate yield of the City’s combined investments was 4.15% (see attachment 3) on a weighted average. For the portfolio of securities alone, the yield to maturity on cost was 4.12%. For comparative purposes, the yields (as of August 31, 2025) of other investments commonly used by public agencies are listed below:

Local Agency Investment Fund: 4.25%
1-Year U.S. Treasury Note: 3.91%
2-Year U.S. Treasury Note: 3.65%

The Portfolio maintains sufficient liquidity to meet the City's projected expenditure requirements for at least the next six months.

COMMITTEE RECOMMENDATION:

This item has not been presented to a committee. This item is being presented as informational to share the monthly Investment Report and activity to Council and the public.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Motion accepting the Monthly Investment Report for August 2025.

Approved by:

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

1. Monthly Investment Report

2. Account Statement

3. Combined Yields

4. Portfolio Holdings and Earnings Projections

5. Cash with Fiscal Agent
#11..
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Page 1 ends

PORTFOLIO HOLDINGS
Attachment 1
Percentages may not total to 100% due to rounding.

Investment Type No. of Investments Amount Invested
CAMP 1 $60,188,576.00
Federal Agency CMO 28 $84,816,723.42
U.S. Treasury 48 $227,119,752.73
Negotiable CD 1 $3,543,116.50
Corporate Note 39 $90,022,992.10
Asset-Backed 26 $47,072,947.72
Total Invested 143 $512,764,108.47
Sector Allocation
August 31, 2025 versus July 31, 2025
Sector August 31, 2025 July 31, 2025 Change in Allocation Permitted by Policy
U.S. Treasury 44.3% 44.7% -0.4% 100%
Federal Agency CMO 16.5% 16.6% -0.1% 100%
Negotiable CD 0.7% 0.7% 0.0% 30%
Corporate Note 17.6% 17.3% 0.2% 30%
Asset-Backed 9.2% 8.9% 0.3% 20%
CAMP 11.7% 11.8% -0.1% 100%
* Total invested includes only the bolded numbers
* * Amount invested are market values excluding accrued interest Additional, detailed information regarding security types and investment activity may be found in Attachment 2 accompanying this memo. Moreover, the addendum data will confirm continued compliance with the investment policy as well as with California Government Code.

RECENT ACTIVITY & CORPORATE EXPOSURE
At the annual Jackson Hole symposium, Federal Reserve (Fed) Chair Jerome Powell opened the door to rate cuts at the Fed’s September 16–17 meeting citing a “shifting balance of risks.” He described the labor market as being in a “curious” equilibrium as weakening labor demand is offset by slowing labor supply growth due to reduced immigration. Chair Powell noted tariff-driven price pressures are likely to be temporary and result in a one-time upward shift in price levels, although the timing and impact may be uneven. Powell’s comments suggest the Fed may be shifting its focus to the weakening labor market. The August jobs report once again surprised to the downside with 22,000 new jobs created. Meanwhile, the unemployment rate rose to 4.3%. Given the continued deterioration in employment data, the market now fully expects the Fed to cut rates in September. During the month, in the Long-Term Portfolio, we bought one 4.5-year asset-backed security. We also purchased one 3-year corporate note and one 5-year U.S.

Treasury. Purchases were made by using the proceeds of selling two U.S. Treasuries. In the Short-Term Portfolio, no portfolio activity was recorded during the month of August. #11..
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Page 2 ends

Long-Term Portfolio Total Return
August 31, 2025
1 Month Trailing
12 Months
Trailing 36
Months
Trailing 60
Months
Since
Inception5
City of Modesto Investment Portfolio1,2,3 1.06% 4.82% 4.15% 1.46% 2.26% Modesto Performance Benchmark4 1.05% 4.43% 3.74% 1.08% 1.96% Average Portfolio Yields
August 31, 2025
Past
Month
Past 3
Months
Past
Year
Past 3
Years
Past 5
Years
City of Modesto Investment Portfolio 4.12% 4.08% 3.84% 2.88% 2.40% City of Modesto Short-Term Portfolio 4.08% 4.19% 4.55% 5.00% - $85.3
$55.9 $62.9
$91.9
$100.5
$116.1
$-
$30.0
$60.0
$90.0
$120.0
$150.0
Under 6
Months
6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years
Millions
Maturity Distribution
August 31, 2025

1. Performance is calculated on trade-date basis, gross (i.e., before fees) in accordance the CFA Institute's Global Investment Performance Standards (GIPS).

2. Performance numbers for periods greater than 1 year are presented on an annualized basis unless otherwise noted.

3. The performance calculation excludes any funds not invested in the 1-5 year strategy.

4. Performance benchmark through December 31, 2018 was the ICE BofA 1-3 Year U.S. Treasury Index, and is now the ICE BofA 1-5 Year U.S. Treasury Index, sourced from Bloomberg Finance L.P.

5. Inception date is 3/31/04.

PERFORMANCE
Yields on 3-month, 2-year, and 10-year U.S. Treasuries fell across the curve and ended August at 4.15%,

3.62%, and 4.23%, representing decreases of 19 basis points (bps), 34 bps, and 15 bps, respectively.

Investment-grade (IG) corporate spreads ended August near 5-year tights. Asset-backed securities (ABS) remained mostly unchanged over the month on low new issuance. Consumer fundamentals and credit metrics remain strong while credit enhancements are robust. Agency-backed commercial MBS (CMBS) and mortgage-backed securities (MBS) posted strong excess returns in August with the exception of currentcoupon structures. As a result of decreased interest rates during the month, both the portfolio and its benchmark returned positive performance in August, and the portfolio still outperformed the benchmark.

Since inception, the portfolio continues to produce strong performance and has outperformed the benchmark by 30 basis points each year on average.

Detail may not add to total due to rounding
#11..
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Page 3 ends

INVESTMENT POLICY
The City’s investment policy embraces the following standards: the prudent investor rule, requiring the safety of principal, through prudent and safe investments; sufficient liquidity to meet expected and unforeseen cash flows; generation of an above-market, risk-adjusted rate of return (meaning, returnsexpectations taking safety and liquidity into account). No investments longer than five years are permitted.

Some investments have maturity limits of 270 days or less. The table below details the City’s permitted investments.

Investment Type
Maximum
Maturity
Maximum
Specified
% of Portfolio
Maximum
% per
Issuer
Minimum Quality
Requirements
Local Agency Bonds 5 Years None None None
Treasury Obligations 5 Years None None None
State Obligations 5 Years None None A rating
CA Local Agency Obligations 5 Years None None A rating
Federal Agencies 5 Years None None None
Supranationals 5 Years 30 percent 5 percent AA
Banker’s Acceptances 180 days 40 percent 5 percent Federal Reserve eligible Commercial Paper 270 days 25 percent 5 percent A1/P1 rating Negotiable Certificates of Deposit 5 Years 30 percent 5 percent A rating Certificates of Deposit 1 Year 20 percent 5 percent FDIC insured or collateralized
Repurchase Agreements 90 days None 5 percent None
Reverse Repurchase Agreements 92 days
20 percent of
combined base
value
5 percent None
Medium Term Notes 5 Years 30 percent 5 percent A rating Money Market Mutual Funds N/A 20 percent 10
percent Multiple
Mortgage and Asset-backed
Securities 5 Years 20 percent 5 percent AA Rating
CAMP N/A None None N/A
LAIF N/A N/A None N/A
The City is not required to include a list of investments held by our bond trustees; however, staff believes the City Council should be kept informed of these investments. These investments are identified on Attachment A.

LONG TERM PORTFLIO INCOME RETURN
Monthly Income Return

0.31%
Fiscal Year-to-Date Income Return

0.62%
Prior 12 Months Income Return

3.37%
#11..
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Page 4 ends

Economic Summary
Source: Congressional Budget Office May 2024 economic projections, Bureau of Labor Statistics.

Bloomberg Finance L.P., as of August 2025. Data is seasonally adjusted.

Labor Market Weakens Overtime
Aug ‘25

4.3%
2%
3%
4%
5%
6%
7%
8%
2021 2022 2023 2024 2025
Unemployment Rate
58%
60%
62%
64%
66%
68%
2000 2005 2010 2015 2020 2025 2030
Labor Force Participation Rate
LFPR CBO Forecast Potential
#11..
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Page 5 ends

Source: Bloomberg Finance L.P., University of Michigan Consumer Sentiment and underlying index components, as of August 2025.

Economic Summary
U.S. GDP Experiences Growth
40 50
60 70
80 90
100
2021 2022 2023 2024 2025
Index Value (1996=100)
Consumer Sentiment Index
1%
2%
3%
4%
5%
6%
7%
8%
2021 2022 2023 2024 2025
Median Price Increase
Expected Change in Prices During Next Year
#11..
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Page 6 ends

Source: ICE BofA 1-5 year Indices via Bloomberg Finance L.P., MarketAxess and PFMAM as of 08/31/2025.

Spreads on ABS are option-adjusted spreads of 0-5 year indices based on weighted average life; spreads on agencies are relative to comparable maturity Treasuries.

Economic Summary
Credit Spreads Remained Unchanged

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%
Aug-23 Feb-24 Aug-24 Feb-25 Aug-25
Corporate Notes A-AAA Yield Spreads
-0.1%

0.0%

0.1%

0.2%

0.3%

0.4%
Aug-23 Feb-24 Aug-24 Feb-25 Aug-25
Federal Agency Yield Spread

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%
Aug-23 Feb-24 Aug-24 Feb-25 Aug-25
Asset-Backed Securities AAA Yield Spreads
#11..
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Page 7 ends

U.S. Treasury Yields
Source: Bloomberg Finance L.P., as of 08/31/2025.

Economic Summary

5.5%

5.0%

4.5%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%
08/31/2024
07/31/2025
08/31/2025
3-mo 2-yr 5-yr 10-yr 30-yr
#11..
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Page 8 ends

The views expressed within this material constitute the perspective and judgment of U.S.

Bancorp Asset Management, Inc. at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue and are also subject to change. Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. No representation is made as to its accuracy or completeness.

PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S.

Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc.

For more information regarding PFMAM’s services or entities, please visit www.pfmam.com.

Disclosures
#11..
- 429 -
For the Month Ending August 31, 2025
Account Statement
Consolidated Summary Statement
CITY OF MODESTO - Combined Portfolio
Investment Allocation
Investment Type Closing Market Value Percent
Asset-Backed Security 47,072,947.72 9.18
Corporate Note 80,241,196.80 15.65
Bank Note 9,781,795.30 1.91
Certificate of Deposit 3,543,116.50 0.69
Federal Agency Commercial Mortgage-Backed Security 84,816,723.42 16.54 U.S. Treasury Bond / Note 227,119,752.73 44.29
CAMP Pool 60,188,576.00 11.74
Total $512,764,108.47 100.00%
Portfolio Summary
and Income
Closing
Portfolio Holdings Market Value
Cash Dividends
PFMAM Managed Account 1,582,495.51 452,575,532.47
CAMP Pool 0.00 60,188,576.00
Total $1,582,495.51 $512,764,108.47
Maturity Distribution (Fixed Income Holdings)
Portfolio Holdings Closing Market Value Percent
71,300,852.83

0.00 2,214,650.91
3,414,663.95
68,805,881.92
58,426,169.01
91,935,083.50
100,533,445.58
116,133,360.77

0.00 13.90

0.00 0.43

0.67 13.42

11.39 17.93

19.61 22.65

0.00 Under 30 days
31 to 60 days
61 to 90 days
91 to 180 days
181 days to 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
Over 5 years
Total $512,764,108.47
885
100.00%
Weighted Average Days to Maturity
Sector Allocation

9.18%
ABS

15.65%
Corporate Note

1.91%
Bank Note

0.69%
Cert of Deposit

16.54%
Federal Agency
Commercial
Mortgage-Backed
Security

44.29%
US TSY Bond / Note

11.74%
CAMP Pool
PFM Asset Management Summary Page 1
#11..
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Managed Account Summary Statement For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Total Cash Basis Earnings
Plus Net Realized Gains/Losses
Less Purchased Interest Related to Interest/Coupons
Interest/Dividends/Coupons Received
Earnings Reconciliation (Cash Basis) - Managed Account
Less Beginning Accrued Interest
Less Beginning Amortized Value of Securities
Less Cost of New Purchases
Plus Coupons/Dividends Received
Plus Proceeds of Maturities/Calls/Principal Payments
Plus Proceeds from Sales
Ending Accrued Interest
Ending Amortized Value of Securities
Earnings Reconciliation (Accrual Basis)
$447,954,732.51
(965,476.76)
(5,241,519.53)
7,664,610.09

0.00 3,163,186.16
$452,575,532.47
1,573,048.04
(1,990.15)
11,437.62
$1,582,495.51
Total
448,699,112.07
2,970,555.78
5,269,209.75
965,476.76
1,545,357.82
(7,666,600.24)
(447,166,047.04)
(3,125,119.35)
Total Accrual Basis Earnings $1,491,945.55
Closing Market Value
Change in Current Value
Unsettled Trades
Principal Acquisitions
Principal Dispositions
Maturities/Calls
Opening Market Value
Transaction Summary - Managed Account
_________________
_________________
_______________________________________________ _______________________________________________ Reconciling Transactions Net Cash Contribution
Security Purchases
Principal Payments
Coupon/Interest/Dividend Income
Sale Proceeds
Maturities/Calls
Cash Transactions Summary - Managed Account

0.00 5,269,209.75
1,545,357.82
965,476.76
(7,666,600.24)

0.00 0.00
Cash Balance
Closing Cash Balance $772,286.03
PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 1 U.S. Bancorp Asset Management, Inc.
#11..
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Portfolio Summary and Statistics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Account Summary
Description Par Value Market Value Percent
U.S. Treasury Bond / Note 228,085,000.00 227,119,752.73 50.19 Federal Agency Commercial
Mortgage-Backed Security
83,267,854.35 84,816,723.42 18.74
Corporate Note 80,149,000.00 80,241,196.80 17.73
Certificate of Deposit 3,500,000.00 3,543,116.50 0.78
Bank Note 9,635,000.00 9,781,795.30 2.16
Asset-Backed Security 46,660,814.71 47,072,947.72 10.40 Managed Account Sub-Total 451,297,669.06 452,575,532.47 100.00% Accrued Interest 2,970,555.78
Total Portfolio 451,297,669.06 455,546,088.25
Unsettled Trades 0.00 0.00
Sector Allocation

10.40%
ABS

2.16%
Bank Note

0.78%
Cert of Deposit

17.73%
Corporate Note

18.74%
Federal Agency
Commercial
Mortgage-Backed
Security

50.19%
US TSY Bond / Note
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years

3.71%

15.20%

12.91%

20.31%

22.21%

25.66%

0.00%
Maturity Distribution Characteristics
Yield to Maturity at Cost
Yield to Maturity at Market
Weighted Average Days to Maturity 1002

4.11%

3.92%
PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 2 U.S. Bancorp Asset Management, Inc.
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Managed Account Issuer Summary For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Credit Quality (S&P Ratings)

3.96%
A

8.34%
A+

0.46%
A0.78%
A-1

1.31%
AA

71.43%
AA+

1.66%
AA9.74%
AAA

2.32%
NR
Issuer Summary
Issuer of Holdings Percent
Market Value
Adobe Inc 2,954,350.00 0.65
American Express Co 5,418,977.88 1.20
Apple Inc 11,295,211.13 2.50
BA Credit Card Trust 3,230,770.89 0.71
Bank of America Corp 9,480,928.83 2.09
Bank of New York Mellon Corp 6,158,493.05 1.36
BlackRock Inc 373,968.05 0.08
Bristol-Myers Squibb Co 2,214,650.91 0.49
Chase Auto Owner Trust 1,142,947.27 0.25
Citigroup Inc 10,787,288.02 2.38
Cooperatieve Rabobank UA 3,543,116.50 0.78
Deere & Co 2,624,350.35 0.58
Eli Lilly & Co 2,975,429.00 0.66
Federal Home Loan Mortgage Corp 81,452,270.13 18.01
Federal National Mortgage Association 3,364,453.29 0.74 Fifth Third Auto Trust 1,967,671.76 0.43
GM Financial Consumer Automobile Receiv 1,052,166.80 0.23 Goldman Sachs Group Inc 3,021,648.00 0.67
Home Depot Inc 3,532,684.63 0.78
Honda Auto Receivables Owner Trust 4,025,440.70 0.89
Hyundai Auto Receivables Trust 4,653,187.85 1.03
JPMorgan Chase & Co 15,598,895.04 3.46
Kenvue Inc 2,357,309.10 0.52
Kubota Credit Owner Trust 2,470,264.43 0.55
Mastercard Inc 2,529,848.32 0.56
Microsoft Corp 5,933,577.00 1.31
Morgan Stanley 4,088,304.00 0.90
National Rural Utilities Cooperative Fi 1,555,245.20 0.34 PACCAR Inc 1,162,742.88 0.26
PepsiCo Inc 2,718,428.47 0.60
State Street Corp 1,919,775.20 0.42
Target Corp 355,457.44 0.08
PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 3 U.S. Bancorp Asset Management, Inc.
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Managed Account Issuer Summary For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Issuer of Holdings Percent
Market Value
Toyota Auto Receivables Owner Trust 3,009,039.70 0.66
Toyota Motor Corp 2,898,596.40 0.64
United States Treasury 227,119,752.73 50.19
USAA Auto Owner Trust 1,961,612.70 0.43
Walmart Inc 5,933,187.52 1.31
Wells Fargo & Co 5,693,491.30 1.26
Total $452,575,532.47 100.00%
PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 4 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note

US TREASURY N/B
DTD 09/15/2022 3.500% 09/15/2025
91282CFK2 11,115,000.00 AA+ Aa1 09/16/24 09/16/24 11,061,595.90 4.00 179,712.64 11,112,942.90 11,112,276.83

US TREASURY N/B
DTD 02/28/2019 2.500% 02/28/2026
9128286F2 1,360,000.00 AA+ Aa1 03/01/21 03/01/21 1,479,850.00 0.70 93.92 1,371,820.82 1,349,646.32

US TREASURY N/B
DTD 03/01/2021 0.500% 02/28/2026
91282CBQ3 2,500,000.00 AA+ Aa1 12/03/21 12/07/21 2,432,617.19 1.15 34.53 2,492,144.49 2,457,032.50

US TREASURY N/B
DTD 03/01/2021 0.500% 02/28/2026
91282CBQ3 4,645,000.00 AA+ Aa1 04/06/22 04/07/22 4,259,973.05 2.76 64.16 4,596,296.66 4,565,166.39

US TREASURY N/B
DTD 03/31/2021 0.750% 03/31/2026
91282CBT7 2,480,000.00 AA+ Aa1 09/07/21 09/09/21 2,479,031.25 0.76 7,826.23 2,479,877.16 2,434,700.32

US TREASURY N/B
DTD 03/31/2021 0.750% 03/31/2026
91282CBT7 4,925,000.00 AA+ Aa1 04/29/21 04/30/21 4,896,719.73 0.87 15,542.01 4,921,677.54 4,835,039.95

US TREASURY N/B
DTD 05/15/2023 3.625% 05/15/2026
91282CHB0 11,085,000.00 AA+ Aa1 05/14/25 05/15/25 11,029,141.99 4.14 119,020.67 11,045,519.00 11,060,280.45

US TREASURY N/B
DTD 06/01/2021 0.750% 05/31/2026
91282CCF6 1,405,000.00 AA+ Aa1 06/23/21 06/25/21 1,396,987.11 0.87 2,677.56 1,403,789.84 1,372,065.40

US TREASURY N/B
DTD 06/01/2021 0.750% 05/31/2026
91282CCF6 4,615,000.00 AA+ Aa1 04/06/22 04/07/22 4,253,551.76 2.76 8,794.98 4,550,106.32 4,506,819.79

US TREASURY N/B
DTD 06/01/2021 0.750% 05/31/2026
91282CCF6 4,800,000.00 AA+ Aa1 06/06/22 06/08/22 4,399,125.00 2.99 9,147.54 4,724,956.64 4,687,483.20

US TREASURY N/B
DTD 07/17/2023 4.500% 07/15/2026
91282CHM6 10,995,000.00 AA+ Aa1 07/30/25 07/31/25 11,037,090.23 4.09 64,535.87 11,033,310.41 11,049,117.39

US TREASURY N/B
DTD 08/31/2021 0.750% 08/31/2026
91282CCW9 4,640,000.00 AA+ Aa1 04/06/22 04/07/22 4,258,106.25 2.75 96.13 4,553,497.62 4,499,496.16

US TREASURY N/B
DTD 09/30/2021 0.875% 09/30/2026
91282CCZ2 4,310,000.00 AA+ Aa1 04/05/22 04/07/22 3,968,398.83 2.77 15,868.10 4,227,782.00 4,175,816.77

US TREASURY N/B
DTD 11/15/2016 2.000% 11/15/2026
912828U24 4,545,000.00 AA+ Aa1 06/06/22 06/08/22 4,355,920.90 3.01 26,924.18 4,493,676.86 4,449,127.77 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 5 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note

US TREASURY N/B
DTD 02/15/2017 2.250% 02/15/2027
912828V98 9,220,000.00 AA+ Aa1 07/05/22 07/07/22 8,981,576.56 2.85 9,583.29 9,144,678.58 9,028,039.60

US TREASURY N/B
DTD 04/30/2020 0.500% 04/30/2027
912828ZN3 6,480,000.00 AA+ Aa1 08/03/22 08/05/22 5,791,500.00 2.92 10,917.39 6,238,686.52 6,150,686.40

US TREASURY N/B
DTD 06/30/2020 0.500% 06/30/2027
912828ZV5 5,545,000.00 AA+ Aa1 08/09/22 08/10/22 4,920,754.30 2.99 4,746.40 5,311,738.44 5,238,727.47

US TREASURY N/B
DTD 08/15/2017 2.250% 08/15/2027
9128282R0 1,200,000.00 AA+ Aa1 08/29/22 08/31/22 1,142,625.00 3.30 1,247.28 1,177,398.69 1,168,640.40

US TREASURY N/B
DTD 08/15/2017 2.250% 08/15/2027
9128282R0 2,985,000.00 AA+ Aa1 09/01/22 09/06/22 2,830,036.52 3.40 3,102.62 2,923,753.35 2,906,993.00

US TREASURY N/B
DTD 09/30/2022 4.125% 09/30/2027
91282CFM8 805,000.00 AA+ Aa1 11/01/22 11/03/22 799,748.63 4.27 13,972.03 802,775.79 812,924.42

US TREASURY N/B
DTD 10/31/2022 4.125% 10/31/2027
91282CFU0 915,000.00 AA+ Aa1 12/06/22 12/08/22 927,724.22 3.81 12,718.00 920,622.00 924,364.11

US TREASURY N/B
DTD 10/31/2022 4.125% 10/31/2027
91282CFU0 3,160,000.00 AA+ Aa1 12/13/22 12/14/22 3,229,495.31 3.63 43,922.28 3,190,808.81 3,192,339.44

US TREASURY N/B
DTD 11/02/2020 0.500% 10/31/2027
91282CAU5 8,775,000.00 AA+ Aa1 01/04/23 01/06/23 7,472,803.71 3.91 14,783.97 8,190,159.14 8,210,793.83

US TREASURY N/B
DTD 01/03/2023 3.875% 12/31/2027
91282CGC9 4,250,000.00 AA+ Aa1 06/01/23 06/05/23 4,266,933.59 3.78 28,193.78 4,258,629.03 4,274,900.75

US TREASURY N/B
DTD 02/01/2021 0.750% 01/31/2028
91282CBJ9 115,000.00 AA+ Aa1 01/31/23 01/31/23 99,825.39 3.66 75.00 107,670.31 107,475.55

US TREASURY N/B
DTD 01/31/2023 3.500% 01/31/2028
91282CGH8 595,000.00 AA+ Aa1 05/16/23 05/18/23 594,535.16 3.52 1,810.87 594,761.49 593,558.91

US TREASURY N/B
DTD 02/28/2023 4.000% 02/29/2028
91282CGP0 1,245,000.00 AA+ Aa1 03/03/23 03/07/23 1,231,188.28 4.25 137.57 1,238,086.55 1,256,720.43

US TREASURY N/B
DTD 03/31/2021 1.250% 03/31/2028
91282CBS9 2,555,000.00 AA+ Aa1 05/08/23 05/09/23 2,299,400.20 3.49 13,438.18 2,420,338.36 2,408,486.08 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 6 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note

US TREASURY N/B
DTD 03/31/2023 3.625% 03/31/2028
91282CGT2 2,675,000.00 AA+ Aa1 05/01/23 05/02/23 2,672,178.71 3.65 40,801.06 2,673,519.41 2,676,984.85

US TREASURY N/B
DTD 05/01/2023 3.500% 04/30/2028
91282CHA2 735,000.00 AA+ Aa1 05/01/23 05/01/23 731,583.40 3.60 8,668.21 733,181.31 733,076.51

US TREASURY N/B
DTD 05/01/2023 3.500% 04/30/2028
91282CHA2 6,530,000.00 AA+ Aa1 05/03/23 05/04/23 6,559,844.14 3.40 77,011.41 6,545,912.51 6,512,910.99

US TREASURY N/B
DTD 04/01/2024 4.125% 03/31/2029
91282CKG5 3,450,000.00 AA+ Aa1 04/09/24 04/11/24 3,411,861.33 4.37 59,880.12 3,421,726.10 3,507,815.10

US TREASURY N/B
DTD 04/30/2024 4.625% 04/30/2029
91282CKP5 4,430,000.00 AA+ Aa1 10/16/24 10/17/24 4,571,725.39 3.85 69,038.18 4,546,257.04 4,580,203.58

US TREASURY N/B
DTD 04/30/2024 4.625% 04/30/2029
91282CKP5 5,190,000.00 AA+ Aa1 05/02/24 05/03/24 5,201,961.33 4.57 80,882.20 5,199,039.81 5,365,972.14

US TREASURY N/B
DTD 07/01/2024 4.250% 06/30/2029
91282CKX8 2,920,000.00 AA+ Aa1 07/01/24 07/02/24 2,896,959.38 4.43 21,245.38 2,901,904.01 2,983,191.72

US TREASURY N/B
DTD 07/31/2024 4.000% 07/31/2029
91282CLC3 2,105,000.00 AA+ Aa1 08/01/24 08/02/24 2,119,636.33 3.85 7,321.74 2,116,701.38 2,132,299.74

US TREASURY N/B
DTD 09/03/2024 3.625% 08/31/2029
91282CLK5 7,550,000.00 AA+ Aa1 09/04/24 09/05/24 7,565,630.86 3.58 756.04 7,562,772.74 7,544,397.90

US TREASURY N/B
DTD 09/30/2024 3.500% 09/30/2029
91282CLN9 8,695,000.00 AA+ Aa1 10/02/24 10/03/24 8,670,205.66 3.56 128,049.32 8,674,440.89 8,646,429.73

US TREASURY N/B
DTD 10/31/2024 4.125% 10/31/2029
91282CLR0 4,850,000.00 AA+ Aa1 11/01/24 11/04/24 4,838,064.45 4.18 67,412.36 4,839,888.05 4,936,582.20

US TREASURY N/B
DTD 12/02/2024 4.125% 11/30/2029
91282CMA6 6,315,000.00 AA+ Aa1 12/05/24 12/06/24 6,326,347.27 4.08 66,191.03 6,324,826.18 6,428,966.81

US TREASURY N/B
DTD 12/31/2024 4.375% 12/31/2029
91282CMD0 12,365,000.00 AA+ Aa1 01/06/25 01/07/25 12,337,468.55 4.43 92,611.50 12,340,747.18 12,712,283.39

US TREASURY N/B
DTD 01/31/2025 4.250% 01/31/2030
91282CMG3 3,470,000.00 AA+ Aa1 02/04/25 02/05/25 3,457,123.04 4.33 12,823.91 3,458,476.46 3,550,785.07 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 7 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
U.S. Treasury Bond / Note

US TREASURY N/B
DTD 01/31/2025 4.250% 01/31/2030
91282CMG3 5,215,000.00 AA+ Aa1 06/04/25 06/05/25 5,274,279.88 3.98 19,272.83 5,271,466.20 5,336,410.42

US TREASURY N/B
DTD 02/28/2023 4.000% 02/28/2030
91282CGQ8 8,565,000.00 AA+ Aa1 03/04/25 03/05/25 8,580,724.80 3.96 946.41 8,579,337.36 8,682,434.72

US TREASURY N/B
DTD 03/31/2025 4.000% 03/31/2030
91282CMU2 10,775,000.00 AA+ Aa1 04/01/25 04/02/25 10,828,875.00 3.89 181,349.73 10,824,812.24 10,919,363.45

US TREASURY N/B
DTD 05/31/2023 3.750% 05/31/2030
91282CHF1 5,400,000.00 AA+ Aa1 06/04/25 06/05/25 5,339,039.06 4.00 51,454.92 5,341,744.97 5,412,447.00

US TREASURY N/B
DTD 06/30/2025 3.875% 06/30/2030
91282CNK3 1,805,000.00 AA+ Aa1 07/01/25 07/01/25 1,810,429.10 3.81 11,974.07 1,810,263.76 1,819,243.26

US TREASURY N/B
DTD 07/31/2025 3.875% 07/31/2030
91282CNN7 3,780,000.00 AA+ Aa1 08/01/25 08/05/25 3,761,395.31 3.98 12,736.96 3,761,648.04 3,809,234.52 Security Type Sub-Total 228,085,000.00 222,851,589.05 3.57 1,619,414.56 226,456,170.96 227,119,752.73 Federal Agency Commercial Mortgage-Backed Security
FHMS K061 A2
DTD 01/01/2017 3.347% 11/01/2026
3137BTUM1 2,373,040.68 AA+ Aa1 05/19/23 05/24/23 2,299,995.52 4.29 6,618.81 2,347,321.36 2,344,428.92 FHMS K064 A2
DTD 05/01/2017 3.224% 03/01/2027
3137BXQY1 4,000,000.00 AA+ Aa1 08/16/23 08/18/23 3,773,125.00 4.94 10,746.67 3,901,343.48 3,950,912.00 FHMS K065 A2
DTD 07/01/2017 3.243% 04/01/2027
3137F1G44 2,275,000.00 AA+ Aa1 08/16/23 08/18/23 2,144,987.30 4.93 6,148.19 2,216,802.90 2,245,377.23 FHMS K066 A2
DTD 08/01/2017 3.117% 06/01/2027
3137F2LJ3 3,530,000.00 AA+ Aa1 08/17/23 08/22/23 3,301,101.56 4.97 9,169.18 3,421,757.35 3,476,760.54 FHMS K507 A1
DTD 09/01/2023 4.800% 04/01/2028
3137HAMR4 3,389,290.09 AA+ Aa1 09/20/23 09/28/23 3,336,101.95 5.19 13,557.16 3,356,345.95 3,441,624.12 FHMS K506 A1
DTD 09/01/2023 4.650% 05/01/2028
3137HAMG8 1,861,123.43 AA+ Aa1 09/07/23 09/14/23 1,833,290.32 5.01 7,211.85 1,844,096.60 1,886,780.88 FHMS KJ46 A1
DTD 07/01/2023 4.777% 06/01/2028
3137HAD45 2,765,084.02 AA+ Aa1 07/19/23 07/27/23 2,765,014.89 4.78 11,007.34 2,765,044.37 2,787,959.56 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 8 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Federal Agency Commercial Mortgage-Backed Security
FHMS K505 A2
DTD 07/01/2023 4.819% 06/01/2028
3137HACX2 3,500,000.00 AA+ Aa1 07/13/23 07/20/23 3,534,958.00 4.59 14,055.42 3,519,970.37 3,567,336.50 FNA 2023-M6 A2
DTD 07/01/2023 4.190% 07/01/2028
3136BQDE6 3,342,310.48 AA+ Aa1 07/18/23 07/31/23 3,285,647.87 4.58 11,670.23 3,309,336.25 3,364,453.29 FHMS KJ47 A1
DTD 09/01/2023 5.272% 08/01/2028
3137HAMN3 1,785,376.96 AA+ Aa1 09/19/23 09/28/23 1,785,368.02 5.27 7,843.76 1,785,372.01 1,823,982.16 FHMS K506 A2
DTD 09/01/2023 4.650% 08/01/2028
3137HAMH6 3,800,000.00 AA+ Aa1 09/07/23 09/14/23 3,743,786.60 4.99 14,725.00 3,764,386.30 3,861,552.40 FHMS K508 A2
DTD 10/01/2023 4.740% 08/01/2028
3137HAQ74 3,850,000.00 AA+ Aa1 10/11/23 10/19/23 3,765,546.40 5.25 15,207.50 3,795,429.39 3,929,929.85 FHMS K509 A2
DTD 10/01/2023 4.850% 09/01/2028
3137HAST4 2,890,000.00 AA+ Aa1 10/25/23 10/31/23 2,797,858.13 5.60 11,680.42 2,828,387.87 2,959,565.19 FHMS K507 A2
DTD 09/01/2023 4.800% 09/01/2028
3137HAMS2 3,800,000.00 AA+ Aa1 09/20/23 09/28/23 3,754,578.60 5.07 15,200.00 3,770,253.27 3,879,074.20 FHMS K510 A2
DTD 11/01/2023 5.069% 10/01/2028
3137HB3D4 1,465,000.00 AA+ Aa1 11/14/23 11/21/23 1,460,764.69 5.14 6,188.40 1,462,166.87 1,506,721.74 FHMS K511 A2
DTD 12/01/2023 4.860% 10/01/2028
3137HB3G7 2,125,000.00 AA+ Aa1 11/28/23 12/07/23 2,118,894.88 4.93 8,606.25 2,120,889.38 2,174,215.00 FHMS K512 A2
DTD 12/01/2023 5.000% 11/01/2028
3137HBCF9 1,935,000.00 AA+ Aa1 12/11/23 12/21/23 1,953,069.03 4.79 8,062.50 1,947,353.07 1,987,297.24 FHMS K513 A2
DTD 01/01/2024 4.724% 12/01/2028
3137HBFY5 2,190,000.00 AA+ Aa1 01/10/24 01/18/24 2,211,875.91 4.50 8,621.30 2,205,253.45 2,233,988.34 FHMS K514 A2
DTD 02/01/2024 4.572% 12/01/2028
3137HBLV4 2,220,000.00 AA+ Aa1 02/01/24 02/08/24 2,242,197.78 4.34 8,458.20 2,235,618.86 2,258,734.56 FHMS K518 A2
DTD 03/01/2024 5.400% 01/01/2029
3137HC2L5 2,715,000.00 AA+ Aa1 03/19/24 03/28/24 2,780,553.68 4.83 12,217.50 2,763,566.04 2,827,764.81 FHMS K517 A2
DTD 03/01/2024 5.355% 01/01/2029
3137HC2C5 3,355,000.00 AA+ Aa1 03/05/24 03/14/24 3,455,603.03 4.67 14,971.69 3,427,800.09 3,494,510.97 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 9 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Federal Agency Commercial Mortgage-Backed Security
FHMS K515 A2
DTD 02/01/2024 5.400% 01/01/2029
3137HBPD0 3,750,000.00 AA+ Aa1 02/14/24 02/22/24 3,851,025.00 4.79 16,875.00 3,822,357.11 3,895,893.75 FHMS K516 A2
DTD 03/01/2024 5.477% 01/01/2029
3137HBPM0 3,750,000.00 AA+ Aa1 02/29/24 03/07/24 3,862,488.75 4.79 17,115.63 3,831,178.98 3,905,385.00 FHMS K520 A2
DTD 04/01/2024 5.180% 03/01/2029
3137HCKV3 2,125,000.00 AA+ Aa1 04/23/24 04/30/24 2,133,625.38 5.09 9,172.92 2,131,593.37 2,202,169.38 FHMS K524 A2
DTD 07/01/2024 4.720% 05/01/2029
3137HDV56 3,245,000.00 AA+ Aa1 07/16/24 07/25/24 3,264,927.54 4.58 12,763.67 3,261,040.30 3,319,034.67 FHMS K522 A2
DTD 06/01/2024 4.803% 05/01/2029
3137HDJJ0 3,751,628.70 AA+ Aa1 06/05/24 06/13/24 3,751,617.45 4.80 15,015.89 3,751,628.70 3,844,744.12 FHMS K526 A2
DTD 08/01/2024 4.543% 07/01/2029
3137HDXL9 3,500,000.00 AA+ Aa1 08/07/24 08/15/24 3,532,739.00 4.33 13,250.42 3,526,420.86 3,560,858.00 FHMS K530 A2
DTD 11/01/2024 4.792% 09/01/2029
3137HHJL6 3,980,000.00 AA+ Aa1 11/19/24 11/27/24 4,000,723.86 4.67 15,893.47 3,998,049.06 4,085,669.00 Security Type Sub-Total 83,267,854.35 82,741,466.14 4.84 322,054.37 83,110,763.61 84,816,723.42 Corporate Note

BRISTOL-MYERS SQUIBB CO (CALLABLE)
DTD 11/13/2020 0.750% 11/13/2025
110122DN5 2,230,000.00 A A2 06/23/21 06/25/21 2,210,888.90 0.95 5,017.50 2,229,128.01 2,214,650.91

BANK OF NY MELLON CORP (CALLABLE)
DTD 01/28/2021 0.750% 01/28/2026
06406RAQ0 3,465,000.00 A Aa3 02/02/21 02/04/21 3,465,831.60 0.75 2,382.19 3,465,068.14 3,414,663.95

MICROSOFT CORP (CALLABLE)
DTD 08/08/2016 2.400% 08/08/2026
594918BR4 3,000,000.00 AAA Aaa 02/23/22 02/25/22 3,033,150.00 2.14 4,600.00 3,006,969.15 2,955,765.00

BANK OF AMERICA NA (CALLABLE)
DTD 08/18/2023 5.526% 08/18/2026
06428CAA2 3,750,000.00 A+ Aa2 08/15/23 08/18/23 3,749,700.00 5.53 7,483.13 3,749,903.61 3,796,661.25

MASTERCARD INC (CALLABLE)
DTD 11/21/2016 2.950% 11/21/2026
57636QAG9 2,560,000.00 A+ Aa3 12/20/22 12/22/22 2,434,099.20 4.33 20,977.78 2,520,683.92 2,529,848.32

JP MORGAN CHASE BANK NA (CALLABLE)
DTD 12/08/2023 5.110% 12/08/2026
48125LRU8 850,000.00 AA- Aa2 06/03/24 06/04/24 849,226.50 5.15 10,014.18 849,598.11 860,921.65 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 10 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Corporate Note

JP MORGAN CHASE BANK NA (CALLABLE)
DTD 12/08/2023 5.110% 12/08/2026
48125LRU8 3,500,000.00 AA- Aa2 12/05/23 12/08/23 3,500,000.00 5.11 41,234.86 3,500,000.00 3,544,971.50

TARGET CORP (CALLABLE)
DTD 01/24/2022 1.950% 01/15/2027
87612EBM7 365,000.00 A A2 01/19/22 01/24/22 364,379.50 1.99 909.46 364,828.85 355,457.44

MICROSOFT CORP (CALLABLE)
DTD 02/06/2017 3.300% 02/06/2027
594918BY9 3,000,000.00 AAA Aaa 12/14/22 12/16/22 2,914,170.00 4.06 6,875.00 2,970,333.92 2,977,812.00

GOLDMAN SACHS BANK USA (CALLABLE)
DTD 05/21/2024 5.414% 05/21/2027
38151LAG5 3,000,000.00 A+ A1 05/21/25 05/22/25 3,018,870.00 5.08 45,116.67 3,013,728.93 3,021,648.00

HOME DEPOT INC (CALLABLE)
DTD 09/14/2017 2.800% 09/14/2027
437076BT8 3,610,000.00 A A2 01/26/23 01/30/23 3,405,674.00 4.16 46,889.89 3,519,993.41 3,532,684.63

JPMORGAN CHASE & CO (CALLABLE)
DTD 02/24/2022 2.947% 02/24/2028
46647PCW4 1,535,000.00 A A1 09/14/23 09/18/23 1,403,557.95 5.13 879.60 1,461,455.04 1,506,838.89

KENVUE INC (CALLABLE)
DTD 10/17/2023 5.050% 03/22/2028
49177JAF9 2,300,000.00 A A1 06/27/25 06/30/25 2,354,303.00 4.12 51,299.58 2,351,010.73 2,357,309.10

WALMART INC (CALLABLE)
DTD 04/18/2023 3.900% 04/15/2028
931142FB4 1,220,000.00 AA Aa2 05/16/23 05/18/23 1,217,279.40 3.95 17,974.67 1,218,546.55 1,223,884.48

APPLE INC (CALLABLE)
DTD 05/10/2023 4.000% 05/10/2028
037833ET3 5,200,000.00 AA+ Aaa 05/16/23 05/18/23 5,216,380.00 3.93 64,133.33 5,208,729.18 5,234,049.60

JOHN DEERE CAPITAL CORP
DTD 07/14/2023 4.950% 07/14/2028
24422EXB0 495,000.00 A A1 07/13/23 07/14/23 501,732.00 4.64 3,198.94 498,863.42 508,435.78

JOHN DEERE CAPITAL CORP
DTD 07/14/2023 4.950% 07/14/2028
24422EXB0 895,000.00 A A1 07/14/23 07/18/23 903,690.45 4.73 5,783.94 899,998.46 919,292.98

JOHN DEERE CAPITAL CORP
DTD 07/14/2023 4.950% 07/14/2028
24422EXB0 1,165,000.00 A A1 07/11/23 07/14/23 1,163,264.15 4.98 7,528.81 1,164,003.81 1,196,621.59

PACCAR FINANCIAL CORP
DTD 08/10/2023 4.950% 08/10/2028
69371RS64 1,130,000.00 A+ A1 08/17/23 08/21/23 1,122,914.90 5.09 3,262.88 1,125,805.97 1,162,742.88

NATIONAL RURAL UTIL COOP (CALLABLE)
DTD 08/25/2025 4.150% 08/25/2028
63743HFZ0 1,550,000.00 NR A2 08/19/25 08/25/25 1,548,264.00 4.19 1,072.08 1,548,273.93 1,555,245.20 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 11 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Corporate Note

TOYOTA MOTOR CREDIT CORP
DTD 09/11/2023 5.250% 09/11/2028
89236TLB9 2,800,000.00 A+ A1 09/06/23 09/11/23 2,795,128.00 5.29 69,416.67 2,796,904.43 2,898,596.40

CITIBANK NA (CALLABLE)
DTD 09/29/2023 5.803% 09/29/2028
17325FBB3 5,650,000.00 A+ Aa3 09/26/23 09/29/23 5,650,000.00 5.80 138,433.79 5,650,000.00 5,920,623.70

BANK OF AMERICA CORP (CALLABLE)
DTD 01/24/2025 4.979% 01/24/2029
06051GMK2 2,060,000.00 A- A1 04/01/25 04/02/25 2,082,824.80 4.66 10,541.65 2,079,645.69 2,096,227.16

STATE STREET CORP (CALLABLE)
DTD 08/20/2024 4.530% 02/20/2029
857477CN1 1,900,000.00 A Aa3 08/14/24 08/20/24 1,900,000.00 4.53 2,629.92 1,900,000.00 1,919,775.20

BLACKROCK FUNDING INC (CALLABLE)
DTD 03/14/2024 4.700% 03/14/2029
09290DAA9 365,000.00 AA- Aa3 03/05/24 03/14/24 364,339.35 4.74 7,958.01 364,518.08 373,968.05

ADOBE INC (CALLABLE)
DTD 04/04/2024 4.800% 04/04/2029
00724PAF6 1,295,000.00 A+ A1 04/03/24 04/05/24 1,296,709.40 4.77 25,382.00 1,296,262.18 1,330,742.00

ADOBE INC (CALLABLE)
DTD 04/04/2024 4.800% 04/04/2029
00724PAF6 1,580,000.00 A+ A1 04/01/24 04/04/24 1,577,645.80 4.83 30,968.00 1,578,253.62 1,623,608.00

BANK OF NEW YORK MELLON (CALLABLE)
DTD 04/22/2025 4.729% 04/20/2029
06405LAH4 2,700,000.00 AA- Aa2 05/06/25 05/07/25 2,727,216.00 4.45 45,753.08 2,724,456.04 2,743,829.10

PEPSICO INC (CALLABLE)
DTD 07/17/2024 4.500% 07/17/2029
713448FX1 1,935,000.00 A+ A1 07/15/24 07/17/24 1,932,000.75 4.53 10,642.50 1,932,623.75 1,971,523.13

ELI LILLY & CO (CALLABLE)
DTD 08/14/2024 4.200% 08/14/2029
532457CQ9 660,000.00 A+ Aa3 08/12/24 08/14/24 658,554.60 4.25 1,309.00 658,834.71 665,689.20

ELI LILLY & CO (CALLABLE)
DTD 08/14/2024 4.200% 08/14/2029
532457CQ9 2,290,000.00 A+ Aa3 08/13/24 08/14/24 2,293,343.40 4.17 4,541.83 2,292,702.92 2,309,739.80

PEPSICO INC (CALLABLE)
DTD 02/07/2025 4.600% 02/07/2030
713448GB8 730,000.00 A+ A1 02/05/25 02/07/25 728,773.60 4.64 2,238.67 728,899.99 746,905.34

WALMART INC (CALLABLE)
DTD 04/28/2025 4.350% 04/28/2030
931142FN8 1,140,000.00 AA Aa2 04/23/25 04/28/25 1,138,027.80 4.39 16,943.25 1,138,150.35 1,157,027.04

WALMART INC (CALLABLE)
DTD 04/28/2025 4.350% 04/28/2030
931142FN8 3,500,000.00 AA Aa2 05/01/25 05/02/25 3,531,465.00 4.15 52,018.75 3,529,533.65 3,552,276.00 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 12 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Corporate Note

APPLE INC (CALLABLE)
DTD 05/11/2020 1.650% 05/11/2030
037833DU1 1,834,000.00 AA+ Aaa 07/01/25 07/02/25 1,631,563.08 4.18 9,246.42 1,637,761.35 1,653,207.95

APPLE INC (CALLABLE)
DTD 05/11/2020 1.650% 05/11/2030
037833DU1 4,890,000.00 AA+ Aaa 07/01/25 07/02/25 4,349,801.70 4.19 24,653.75 4,366,342.67 4,407,953.58 Security Type Sub-Total 80,149,000.00 79,034,768.83 4.27 799,311.78 79,341,812.57 80,241,196.80 Certificate of Deposit

COOPERAT RABOBANK UA/NY
DTD 07/20/2023 5.080% 07/17/2026
21684LGS5 3,500,000.00 A-1 P-1 07/17/23 07/20/23 3,500,000.00 5.08 21,731.11 3,500,000.00 3,543,116.50 Security Type Sub-Total 3,500,000.00 3,500,000.00 5.08 21,731.11 3,500,000.00 3,543,116.50 Bank Note

WELLS FARGO BANK NA (CALLABLE)
DTD 08/09/2023 5.450% 08/07/2026
94988J6D4 5,635,000.00 A+ Aa2 08/15/23 08/17/23 5,621,645.05 5.54 20,473.83 5,630,806.29 5,693,491.30

MORGAN STANLEY BANK NA (CALLABLE)
DTD 05/30/2024 5.504% 05/26/2028
61690U8B9 1,360,000.00 A+ Aa3 05/28/24 05/30/24 1,360,000.00 5.50 19,753.24 1,360,000.00 1,390,023.36

MORGAN STANLEY BANK NA (CALLABLE)
DTD 05/30/2024 5.504% 05/26/2028
61690U8B9 2,640,000.00 A+ Aa3 05/30/24 05/31/24 2,645,570.40 5.45 38,344.53 2,643,110.56 2,698,280.64 Security Type Sub-Total 9,635,000.00 9,627,215.45 5.51 78,571.60 9,633,916.85 9,781,795.30 Asset-Backed Security
CCCIT 2023-A1 A1
DTD 12/11/2023 5.230% 12/08/2027
17305EGW9 835,000.00 AAA Aaa 12/04/23 12/11/23 834,895.29 5.23 10,068.48 834,938.26 837,015.69 KCOT 2023-2A A3
DTD 07/26/2023 5.280% 01/18/2028
500945AC4 890,000.00 NR Aaa 07/18/23 07/26/23 889,775.19 5.29 2,088.53 889,880.48 896,854.78 BAAT 2023-1A A3
DTD 07/31/2023 5.530% 02/15/2028
06428AAC2 977,473.63 NR Aaa 07/25/23 07/31/23 977,436.59 5.53 2,402.41 977,453.59 984,976.72 HAROT 2023-3 A3
DTD 08/22/2023 5.410% 02/18/2028
43815QAC1 1,653,061.22 AAA NR 08/15/23 08/22/23 1,652,720.36 5.42 3,229.44 1,652,874.13 1,665,113.69 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 13 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Asset-Backed Security
TAOT 2023-C A3
DTD 08/15/2023 5.160% 04/17/2028
89231FAD2 587,910.02 AAA NR 08/08/23 08/15/23 587,777.04 5.17 1,348.27 587,835.23 591,477.46 USAOT 2023-A A3
DTD 09/15/2023 5.580% 05/15/2028
90291VAC4 1,948,946.49 AAA Aaa 09/07/23 09/15/23 1,948,605.43 5.58 4,833.39 1,948,741.39 1,961,612.70 BAAT 2023-2A A3
DTD 11/21/2023 5.740% 06/15/2028
06054YAC1 2,578,059.11 NR Aaa 11/15/23 11/21/23 2,578,012.45 5.74 6,576.92 2,578,032.59 2,603,063.70 TAOT 2023-D A3
DTD 11/14/2023 5.540% 08/15/2028
89239FAD4 765,000.00 AAA NR 11/07/23 11/14/23 764,917.53 5.54 1,883.60 764,947.97 773,733.24 FITAT 2023-1 A3
DTD 08/23/2023 5.530% 08/15/2028
31680EAD3 1,950,364.23 AAA Aaa 08/15/23 08/23/23 1,950,243.31 5.53 4,793.56 1,950,292.43 1,967,671.76 CHAIT 2023-A1 A
DTD 09/15/2023 5.160% 09/15/2028
161571HT4 3,020,000.00 AAA NR 09/07/23 09/15/23 3,019,162.86 5.17 6,925.87 3,019,465.99 3,054,086.74 AMXCA 2023-3 A
DTD 09/19/2023 5.230% 09/15/2028
02582JKD1 3,090,000.00 AAA NR 09/12/23 09/19/23 3,089,861.88 5.23 7,182.53 3,089,913.36 3,127,024.38 HART 2023-C A3
DTD 11/13/2023 5.540% 10/16/2028
44918CAD4 1,130,000.00 AAA NR 11/03/23 11/13/23 1,129,851.41 5.54 2,782.31 1,129,902.94 1,141,649.17 BACCT 2023-A2 A2
DTD 12/14/2023 4.980% 11/15/2028
05522RDH8 1,365,000.00 NR Aaa 12/07/23 12/14/23 1,364,816.68 4.98 3,021.20 1,364,878.91 1,380,009.54 GMCAR 2024-1 A3
DTD 01/17/2024 4.850% 12/18/2028
36268GAD7 365,000.00 NR Aaa 01/09/24 01/17/24 364,926.60 4.85 737.60 364,948.94 366,964.80 CHAIT 2024-A1 A
DTD 01/31/2024 4.600% 01/15/2029
161571HV9 3,390,000.00 AAA NR 01/24/24 01/31/24 3,389,483.70 4.60 6,930.67 3,389,640.62 3,416,540.31 KCOT 2025-1A A3
DTD 02/19/2025 4.670% 06/15/2029
50117FAC5 1,550,000.00 NR Aaa 02/11/25 02/19/25 1,549,946.84 4.67 3,217.11 1,549,957.02 1,573,409.65 HART 2025-A A3
DTD 03/12/2025 4.320% 10/15/2029
44935CAD3 2,525,000.00 AAA NR 03/04/25 03/12/25 2,524,627.56 4.32 4,848.00 2,524,666.87 2,542,190.20 HART 2025-B A3
DTD 06/11/2025 4.360% 12/17/2029
44935XAD7 960,000.00 AAA NR 06/03/25 06/11/25 959,913.31 4.36 1,860.27 959,917.43 969,348.48 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 14 U.S. Bancorp Asset Management, Inc.
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Managed Account Detail of Securities Held For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Asset-Backed Security
HAROT 2025-3 A3
DTD 08/12/2025 4.040% 02/21/2030
43813QAD1 2,355,000.00 AAA Aaa 08/05/25 08/12/25 2,354,950.78 4.04 5,021.38 2,354,951.90 2,360,327.01 TAOT 2025-C A3
DTD 07/30/2025 4.110% 03/15/2030
89238VAD0 1,635,000.00 AAA Aaa 07/22/25 07/30/25 1,634,827.67 4.11 2,986.60 1,634,831.02 1,643,829.00 GMCAR 2025-2 A3
DTD 05/14/2025 4.280% 04/16/2030
362549AD9 680,000.00 AAA Aaa 05/06/25 05/14/25 679,899.90 4.28 1,212.67 679,906.00 685,202.00 BACCT 2025-A1 A
DTD 06/12/2025 4.310% 05/15/2030
05522RDK1 1,830,000.00 AAA NR 06/05/25 06/12/25 1,829,993.05 4.31 3,505.47 1,830,000.00 1,850,761.35 CCCIT 2025-A1 A
DTD 06/26/2025 4.300% 06/21/2030
17305EHA6 3,990,000.00 AAA Aaa 06/18/25 06/26/25 3,988,917.51 4.31 30,977.92 3,988,953.74 4,029,648.63 CHAOT 2025-1A A3
DTD 07/30/2025 4.290% 06/25/2030
16145NAC5 1,135,000.00 NR Aaa 07/23/25 07/30/25 1,134,889.11 4.29 811.53 1,134,891.52 1,142,947.27 AMXCA 2025-4 A
DTD 07/22/2025 4.300% 07/15/2030
02582JKV1 2,265,000.00 AAA NR 07/15/25 07/22/25 2,264,673.61 4.30 4,328.67 2,264,681.94 2,291,953.50 CHAIT 2025-A1 A
DTD 07/25/2025 4.160% 07/15/2030
161571HZ0 3,190,000.00 AAA NR 07/18/25 07/25/25 3,189,935.88 4.16 5,897.96 3,189,943.81 3,215,535.95 Security Type Sub-Total 46,660,814.71 46,655,061.54 4.80 129,472.36 46,656,448.08 47,072,947.72 Managed Account Sub-Total 451,297,669.06 444,410,101.01 4.11 2,970,555.78 448,699,112.07 452,575,532.47 $451,297,669.06 $444,410,101.01 4.11% $2,970,555.78 $448,699,112.07 $452,575,532.47 $455,546,088.25
$2,970,555.78
Total Investments
Accrued Interest
Securities Sub-Total
PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 15 U.S. Bancorp Asset Management, Inc.
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
U.S. Treasury Bond / Note
US TREASURY N/B 91282CFK2 11,115,000.00 Nomura 99.98 11,112,276.83 50,680.93 (666.07) DTD 09/15/2022 3.500% 09/15/2025

0.04 4.12
US TREASURY N/B 9128286F2 1,360,000.00 GoldmanS 99.24 1,349,646.32 (130,203.68) (22,174.50) DTD 02/28/2019 2.500% 02/28/2026

0.48 4.23
US TREASURY N/B 91282CBQ3 2,500,000.00 WellsFar 98.28 2,457,032.50 24,415.31 (35,111.99) DTD 03/01/2021 0.500% 02/28/2026

0.48 4.12
US TREASURY N/B 91282CBQ3 4,645,000.00 Nomura 98.28 4,565,166.39 305,193.34 (31,130.27) DTD 03/01/2021 0.500% 02/28/2026

0.48 4.12
US TREASURY N/B 91282CBT7 2,480,000.00 WellsFar 98.17 2,434,700.32 (44,330.93) (45,176.84) DTD 03/31/2021 0.750% 03/31/2026

0.57 4.21
US TREASURY N/B 91282CBT7 4,925,000.00 MorganSt 98.17 4,835,039.95 (61,679.78) (86,637.59) DTD 03/31/2021 0.750% 03/31/2026

0.57 4.21
US TREASURY N/B 91282CHB0 11,085,000.00 MorganSt 99.78 11,060,280.45 31,138.46 14,761.45 DTD 05/15/2023 3.625% 05/15/2026

0.68 3.97
US TREASURY N/B 91282CCF6 1,405,000.00 BOFAML 97.66 1,372,065.40 (24,921.71) (31,724.44) DTD 06/01/2021 0.750% 05/31/2026

0.73 4.18
US TREASURY N/B 91282CCF6 4,615,000.00 Nomura 97.66 4,506,819.79 253,268.03 (43,286.53) DTD 06/01/2021 0.750% 05/31/2026

0.73 4.18
US TREASURY N/B 91282CCF6 4,800,000.00 Citigrou 97.66 4,687,483.20 288,358.20 (37,473.44) DTD 06/01/2021 0.750% 05/31/2026

0.73 4.18
US TREASURY N/B 91282CHM6 10,995,000.00 RBS 100.49 11,049,117.39 12,027.16 15,806.98 DTD 07/17/2023 4.500% 07/15/2026

0.84 4.12
US TREASURY N/B 91282CCW9 4,640,000.00 RBC Capi 96.97 4,499,496.16 241,389.91 (54,001.46) DTD 08/31/2021 0.750% 08/31/2026

0.98 3.87
US TREASURY N/B 91282CCZ2 4,310,000.00 RBC Capi 96.89 4,175,816.77 207,417.94 (51,965.23) DTD 09/30/2021 0.875% 09/30/2026

1.05 3.85
US TREASURY N/B 912828U24 4,545,000.00 RBC Capi 97.89 4,449,127.77 93,206.87 (44,549.09) DTD 11/15/2016 2.000% 11/15/2026

1.17 3.81
US TREASURY N/B 912828V98 9,220,000.00 JPMorgan 97.92 9,028,039.60 46,463.04 (116,638.98) DTD 02/15/2017 2.250% 02/15/2027

1.41 3.73
US TREASURY N/B 912828ZN3 6,480,000.00 Nomura 94.92 6,150,686.40 359,186.40 (88,000.12) DTD 04/30/2020 0.500% 04/30/2027

1.62 3.68
US TREASURY N/B 912828ZV5 5,545,000.00 WellsFar 94.48 5,238,727.47 317,973.17 (73,010.97) DTD 06/30/2020 0.500% 06/30/2027

1.79 3.65
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
U.S. Treasury Bond / Note
US TREASURY N/B 9128282R0 1,200,000.00 BNPPSA 97.39 1,168,640.40 26,015.40 (8,758.29) DTD 08/15/2017 2.250% 08/15/2027

1.88 3.65
US TREASURY N/B 9128282R0 2,985,000.00 HSBC 97.39 2,906,993.00 76,956.48 (16,760.35) DTD 08/15/2017 2.250% 08/15/2027

1.88 3.65
US TREASURY N/B 91282CFM8 805,000.00 BOFAML 100.98 812,924.42 13,175.79 10,148.63 DTD 09/30/2022 4.125% 09/30/2027

1.94 3.63
US TREASURY N/B 91282CFU0 915,000.00 Nomura 101.02 924,364.11 (3,360.11) 3,742.11 DTD 10/31/2022 4.125% 10/31/2027

2.03 3.63
US TREASURY N/B 91282CFU0 3,160,000.00 JPMorgan 101.02 3,192,339.44 (37,155.87) 1,530.63 DTD 10/31/2022 4.125% 10/31/2027

2.03 3.63
US TREASURY N/B 91282CAU5 8,775,000.00 WellsFar 93.57 8,210,793.83 737,990.12 20,634.69 DTD 11/02/2020 0.500% 10/31/2027

2.11 3.62
US TREASURY N/B 91282CGC9 4,250,000.00 Nomura 100.59 4,274,900.75 7,967.16 16,271.72 DTD 01/03/2023 3.875% 12/31/2027

2.20 3.61
US TREASURY N/B 91282CBJ9 115,000.00 HSBC 93.46 107,475.55 7,650.16 (194.76) DTD 02/01/2021 0.750% 01/31/2028

2.35 3.61
US TREASURY N/B 91282CGH8 595,000.00 BNPPSA 99.76 593,558.91 (976.25) (1,202.58) DTD 01/31/2023 3.500% 01/31/2028

2.29 3.60
US TREASURY N/B 91282CGP0 1,245,000.00 TD Secur 100.94 1,256,720.43 25,532.15 18,633.88 DTD 02/28/2023 4.000% 02/29/2028

2.35 3.60
US TREASURY N/B 91282CBS9 2,555,000.00 BNPPSA 94.27 2,408,486.08 109,085.88 (11,852.28) DTD 03/31/2021 1.250% 03/31/2028

2.48 3.60
US TREASURY N/B 91282CGT2 2,675,000.00 RBS 100.07 2,676,984.85 4,806.14 3,465.44 DTD 03/31/2023 3.625% 03/31/2028

2.40 3.59
US TREASURY N/B 91282CHA2 735,000.00 Barclays 99.74 733,076.51 1,493.11 (104.80) DTD 05/01/2023 3.500% 04/30/2028

2.49 3.60
US TREASURY N/B 91282CHA2 6,530,000.00 GoldmanS 99.74 6,512,910.99 (46,933.15) (33,001.52) DTD 05/01/2023 3.500% 04/30/2028

2.49 3.60
US TREASURY N/B 91282CKG5 3,450,000.00 BMO 101.68 3,507,815.10 95,953.77 86,089.00 DTD 04/01/2024 4.125% 03/31/2029

3.25 3.62
US TREASURY N/B 91282CKP5 4,430,000.00 JPMorgan 103.39 4,580,203.58 8,478.19 33,946.54 DTD 04/30/2024 4.625% 04/30/2029

3.30 3.63
US TREASURY N/B 91282CKP5 5,190,000.00 GoldmanS 103.39 5,365,972.14 164,010.81 166,932.33 DTD 04/30/2024 4.625% 04/30/2029

3.30 3.63
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
U.S. Treasury Bond / Note
US TREASURY N/B 91282CKX8 2,920,000.00 Citigrou 102.16 2,983,191.72 86,232.34 81,287.71 DTD 07/01/2024 4.250% 06/30/2029

3.49 3.64
US TREASURY N/B 91282CLC3 2,105,000.00 Citigrou 101.30 2,132,299.74 12,663.41 15,598.36 DTD 07/31/2024 4.000% 07/31/2029

3.58 3.64
US TREASURY N/B 91282CLK5 7,550,000.00 Citigrou 99.93 7,544,397.90 (21,232.96) (18,374.84) DTD 09/03/2024 3.625% 08/31/2029

3.69 3.65
US TREASURY N/B 91282CLN9 8,695,000.00 TD Secur 99.44 8,646,429.73 (23,775.93) (28,011.16) DTD 09/30/2024 3.500% 09/30/2029

3.71 3.65
US TREASURY N/B 91282CLR0 4,850,000.00 HSBC 101.79 4,936,582.20 98,517.75 96,694.15 DTD 10/31/2024 4.125% 10/31/2029

3.75 3.66
US TREASURY N/B 91282CMA6 6,315,000.00 WellsFar 101.80 6,428,966.81 102,619.54 104,140.63 DTD 12/02/2024 4.125% 11/30/2029

3.83 3.66
US TREASURY N/B 91282CMD0 12,365,000.00 BNP Sec 102.81 12,712,283.39 374,814.84 371,536.21 DTD 12/31/2024 4.375% 12/31/2029

3.90 3.67
US TREASURY N/B 91282CMG3 3,470,000.00 BNP Sec 102.33 3,550,785.07 93,662.03 92,308.61 DTD 01/31/2025 4.250% 01/31/2030

3.99 3.67
US TREASURY N/B 91282CMG3 5,215,000.00 HSBC 102.33 5,336,410.42 62,130.54 64,944.22 DTD 01/31/2025 4.250% 01/31/2030

3.99 3.67
US TREASURY N/B 91282CGQ8 8,565,000.00 Nomura 101.37 8,682,434.72 101,709.92 103,097.36 DTD 02/28/2023 4.000% 02/28/2030

4.09 3.67
US TREASURY N/B 91282CMU2 10,775,000.00 BNP Sec 101.34 10,919,363.45 90,488.45 94,551.21 DTD 03/31/2025 4.000% 03/31/2030

4.09 3.68
US TREASURY N/B 91282CHF1 5,400,000.00 RBS 100.23 5,412,447.00 73,407.94 70,702.03 DTD 05/31/2023 3.750% 05/31/2030

4.28 3.70
US TREASURY N/B 91282CNK3 1,805,000.00 Citigrou 100.79 1,819,243.26 8,814.16 8,979.50 DTD 06/30/2025 3.875% 06/30/2030

4.35 3.69
US TREASURY N/B 91282CNN7 3,780,000.00 BOFAML 100.77 3,809,234.52 47,839.21 47,586.48 DTD 07/31/2025 3.875% 07/31/2030

4.43 3.70
Security Type Sub-Total 228,085,000.00 227,119,752.73 4,268,163.68 663,581.77 2.36 3.79 Federal Agency Commercial Mortgage-Backed Security
FHMS K061 A2 3137BTUM1 2,373,040.68 Citigrou 98.79 2,344,428.92 44,433.40 (2,892.44) DTD 01/01/2017 3.347% 11/01/2026

1.11 4.26
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Federal Agency Commercial Mortgage-Backed Security
FHMS K064 A2 3137BXQY1 4,000,000.00 MorganSt 98.77 3,950,912.00 177,787.00 49,568.52 DTD 05/01/2017 3.224% 03/01/2027

1.35 4.00
FHMS K065 A2 3137F1G44 2,275,000.00 Citigrou 98.70 2,245,377.23 100,389.93 28,574.33 DTD 07/01/2017 3.243% 04/01/2027

1.49 3.99
FHMS K066 A2 3137F2LJ3 3,530,000.00 CantorFi 98.49 3,476,760.54 175,658.98 55,003.19 DTD 08/01/2017 3.117% 06/01/2027

1.58 3.96
FHMS K507 A1 3137HAMR4 3,389,290.09 BOFAML 101.54 3,441,624.12 105,522.17 85,278.17 DTD 09/01/2023 4.800% 04/01/2028

2.15 3.99
FHMS K506 A1 3137HAMG8 1,861,123.43 WellsFar 101.38 1,886,780.88 53,490.56 42,684.28 DTD 09/01/2023 4.650% 05/01/2028

2.25 3.95
FHMS KJ46 A1 3137HAD45 2,765,084.02 JPMorgan 100.83 2,787,959.56 22,944.67 22,915.19 DTD 07/01/2023 4.777% 06/01/2028

1.71 4.15
FHMS K505 A2 3137HACX2 3,500,000.00 JPMorgan 101.92 3,567,336.50 32,378.50 47,366.13 DTD 07/01/2023 4.819% 06/01/2028

2.50 3.97
FNA 2023-M6 A2 3136BQDE6 3,342,310.48 JPMorgan 100.66 3,364,453.29 78,805.42 55,117.04 DTD 07/01/2023 4.190% 07/01/2028

2.63 3.86
FHMS KJ47 A1 3137HAMN3 1,785,376.96 JPMorgan 102.16 1,823,982.16 38,614.14 38,610.15 DTD 09/01/2023 5.272% 08/01/2028

1.98 4.07
FHMS K506 A2 3137HAMH6 3,800,000.00 WellsFar 101.62 3,861,552.40 117,765.80 97,166.10 DTD 09/01/2023 4.650% 08/01/2028

2.64 3.97
FHMS K508 A2 3137HAQ74 3,850,000.00 BMO 102.08 3,929,929.85 164,383.45 134,500.46 DTD 10/01/2023 4.740% 08/01/2028

2.67 3.90
FHMS K509 A2 3137HAST4 2,890,000.00 MorganSt 102.41 2,959,565.19 161,707.06 131,177.32 DTD 10/01/2023 4.850% 09/01/2028

2.75 3.91
FHMS K507 A2 3137HAMS2 3,800,000.00 BOFAML 102.08 3,879,074.20 124,495.60 108,820.93 DTD 09/01/2023 4.800% 09/01/2028

2.70 3.97
FHMS K510 A2 3137HB3D4 1,465,000.00 JPMorgan 102.85 1,506,721.74 45,957.05 44,554.87 DTD 11/01/2023 5.069% 10/01/2028

2.78 3.99
FHMS K511 A2 3137HB3G7 2,125,000.00 BOFAML 102.32 2,174,215.00 55,320.12 53,325.62 DTD 12/01/2023 4.860% 10/01/2028

2.81 3.98
FHMS K512 A2 3137HBCF9 1,935,000.00 JPMorgan 102.70 1,987,297.24 34,228.21 39,944.17 DTD 12/01/2023 5.000% 11/01/2028

2.83 3.99
FHMS K513 A2 3137HBFY5 2,190,000.00 BMO 102.01 2,233,988.34 22,112.43 28,734.89 DTD 01/01/2024 4.724% 12/01/2028

2.95 3.99
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Federal Agency Commercial Mortgage-Backed Security
FHMS K514 A2 3137HBLV4 2,220,000.00 JPMorgan 101.74 2,258,734.56 16,536.78 23,115.70 DTD 02/01/2024 4.572% 12/01/2028

2.90 3.91
FHMS K518 A2 3137HC2L5 2,715,000.00 JPMorgan 104.15 2,827,764.81 47,211.13 64,198.77 DTD 03/01/2024 5.400% 01/01/2029

3.03 3.99
FHMS K517 A2 3137HC2C5 3,355,000.00 BOFAML 104.16 3,494,510.97 38,907.94 66,710.88 DTD 03/01/2024 5.355% 01/01/2029

3.05 3.95
FHMS K515 A2 3137HBPD0 3,750,000.00 WellsFar 103.89 3,895,893.75 44,868.75 73,536.64 DTD 02/01/2024 5.400% 01/01/2029

2.95 4.04
FHMS K516 A2 3137HBPM0 3,750,000.00 MorganSt 104.14 3,905,385.00 42,896.25 74,206.02 DTD 03/01/2024 5.477% 01/01/2029

2.99 4.05
FHMS K520 A2 3137HCKV3 2,125,000.00 BOFAML 103.63 2,202,169.38 68,544.00 70,576.01 DTD 04/01/2024 5.180% 03/01/2029

3.16 3.99
FHMS K524 A2 3137HDV56 3,245,000.00 PIER 102.28 3,319,034.67 54,107.13 57,994.37 DTD 07/01/2024 4.720% 05/01/2029

3.33 3.99
FHMS K522 A2 3137HDJJ0 3,751,628.70 MorganSt 102.48 3,844,744.12 93,126.67 93,115.42 DTD 06/01/2024 4.803% 05/01/2029

3.21 3.99
FHMS K526 A2 3137HDXL9 3,500,000.00 BMO 101.74 3,560,858.00 28,119.00 34,437.14 DTD 08/01/2024 4.543% 07/01/2029

3.48 4.00
FHMS K530 A2 3137HHJL6 3,980,000.00 JPMorgan 102.66 4,085,669.00 84,945.14 87,619.94 DTD 11/01/2024 4.792% 09/01/2029

3.61 4.02
Security Type Sub-Total 83,267,854.35 84,816,723.42 2,075,257.28 1,705,959.81 2.63 3.99 Corporate Note
BRISTOL-MYERS SQUIBB CO (CALLABLE) 110122DN5 2,230,000.00 BOFAML 10/13/25 99.31 2,214,650.91 3,762.01 (14,477.10) DTD 11/13/2020 0.750% 11/13/2025

0.20 4.24
BANK OF NY MELLON CORP (CALLABLE) 06406RAQ0 3,465,000.00 US_BANC 12/28/25 98.55 3,414,663.95 (51,167.65) (50,404.19) DTD 01/28/2021 0.750% 01/28/2026

0.40 4.32
MICROSOFT CORP (CALLABLE) 594918BR4 3,000,000.00 TD Secur 05/08/26 98.53 2,955,765.00 (77,385.00) (51,204.15) DTD 08/08/2016 2.400% 08/08/2026

0.90 4.02
BANK OF AMERICA NA (CALLABLE) 06428CAA2 3,750,000.00 BOFAML 07/17/26 101.24 3,796,661.25 46,961.25 46,757.64 DTD 08/18/2023 5.526% 08/18/2026

0.85 4.19
MASTERCARD INC (CALLABLE) 57636QAG9 2,560,000.00 CSFirstB 08/21/26 98.82 2,529,848.32 95,749.12 9,164.40 DTD 11/21/2016 2.950% 11/21/2026

1.12 3.94
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Corporate Note
JP MORGAN CHASE BANK NA (CALLABLE) 48125LRU8 850,000.00 Citigrou 11/08/26 101.28 860,921.65 11,695.15 11,323.54 DTD 12/08/2023 5.110% 12/08/2026

1.14 4.06
JP MORGAN CHASE BANK NA (CALLABLE) 48125LRU8 3,500,000.00 JPMorgan 11/08/26 101.28 3,544,971.50 44,971.50 44,971.50 DTD 12/08/2023 5.110% 12/08/2026

1.14 4.06
TARGET CORP (CALLABLE) 87612EBM7 365,000.00 Citigrou 12/15/26 97.39 355,457.44 (8,922.06) (9,371.41) DTD 01/24/2022 1.950% 01/15/2027

1.32 3.92
MICROSOFT CORP (CALLABLE) 594918BY9 3,000,000.00 GoldmanS 11/06/26 99.26 2,977,812.00 63,642.00 7,478.08 DTD 02/06/2017 3.300% 02/06/2027

1.28 3.83
GOLDMAN SACHS BANK USA (CALLABLE) 38151LAG5 3,000,000.00 GoldmanS 05/21/26 100.72 3,021,648.00 2,778.00 7,919.07 DTD 05/21/2024 5.414% 05/21/2027

0.69 4.81
HOME DEPOT INC (CALLABLE) 437076BT8 3,610,000.00 TD Secur 06/14/27 97.86 3,532,684.63 127,010.63 12,691.22 DTD 09/14/2017 2.800% 09/14/2027

1.87 3.90
JPMORGAN CHASE & CO (CALLABLE) 46647PCW4 1,535,000.00 BOFAML 02/24/27 98.17 1,506,838.89 103,280.94 45,383.85 DTD 02/24/2022 2.947% 02/24/2028

1.43 4.76
KENVUE INC (CALLABLE) 49177JAF9 2,300,000.00 JPMorgan 02/22/28 102.49 2,357,309.10 3,006.10 6,298.37 DTD 10/17/2023 5.050% 03/22/2028

2.28 4.01
WALMART INC (CALLABLE) 931142FB4 1,220,000.00 Barclays 03/15/28 100.32 1,223,884.48 6,605.08 5,337.93 DTD 04/18/2023 3.900% 04/15/2028

2.39 3.77
APPLE INC (CALLABLE) 037833ET3 5,200,000.00 HSBC 04/10/28 100.65 5,234,049.60 17,669.60 25,320.42 DTD 05/10/2023 4.000% 05/10/2028

2.45 3.74
JOHN DEERE CAPITAL CORP 24422EXB0 495,000.00 SBSC 102.71 508,435.78 6,703.78 9,572.36 DTD 07/14/2023 4.950% 07/14/2028

2.64 3.94
JOHN DEERE CAPITAL CORP 24422EXB0 895,000.00 TD Secur 102.71 919,292.98 15,602.53 19,294.52 DTD 07/14/2023 4.950% 07/14/2028

2.64 3.94
JOHN DEERE CAPITAL CORP 24422EXB0 1,165,000.00 Citigrou 102.71 1,196,621.59 33,357.44 32,617.78 DTD 07/14/2023 4.950% 07/14/2028

2.64 3.94
PACCAR FINANCIAL CORP 69371RS64 1,130,000.00 TD Secur 102.90 1,162,742.88 39,827.98 36,936.91 DTD 08/10/2023 4.950% 08/10/2028

2.71 3.90
NATIONAL RURAL UTIL COOP (CALLABLE) 63743HFZ0 1,550,000.00 MUFG 07/25/28 100.34 1,555,245.20 6,981.20 6,971.27 DTD 08/25/2025 4.150% 08/25/2028

2.73 4.03
TOYOTA MOTOR CREDIT CORP 89236TLB9 2,800,000.00 BOFAML 103.52 2,898,596.40 103,468.40 101,691.97 DTD 09/11/2023 5.250% 09/11/2028

2.72 4.00
CITIBANK NA (CALLABLE) 17325FBB3 5,650,000.00 Citigrou 08/29/28 104.79 5,920,623.70 270,623.70 270,623.70 DTD 09/29/2023 5.803% 09/29/2028

2.69 4.13
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Corporate Note
BANK OF AMERICA CORP (CALLABLE) 06051GMK2 2,060,000.00 Citigrou 01/24/28 101.76 2,096,227.16 13,402.36 16,581.47 DTD 01/24/2025 4.979% 01/24/2029

2.24 4.48
STATE STREET CORP (CALLABLE) 857477CN1 1,900,000.00 HSBC 02/20/28 101.04 1,919,775.20 19,775.20 19,775.20 DTD 08/20/2024 4.530% 02/20/2029

2.31 4.44
BLACKROCK FUNDING INC (CALLABLE) 09290DAA9 365,000.00 Citigrou 02/14/29 102.46 373,968.05 9,628.70 9,449.97 DTD 03/14/2024 4.700% 03/14/2029

3.13 3.95
ADOBE INC (CALLABLE) 00724PAF6 1,295,000.00 TD Secur 03/04/29 102.76 1,330,742.00 34,032.60 34,479.82 DTD 04/04/2024 4.800% 04/04/2029

3.17 3.97
ADOBE INC (CALLABLE) 00724PAF6 1,580,000.00 BOFAML 03/04/29 102.76 1,623,608.00 45,962.20 45,354.38 DTD 04/04/2024 4.800% 04/04/2029

3.17 3.97
BANK OF NEW YORK MELLON (CALLABLE) 06405LAH4 2,700,000.00 JPMorgan 04/20/28 101.62 2,743,829.10 16,613.10 19,373.06 DTD 04/22/2025 4.729% 04/20/2029

2.42 4.45
PEPSICO INC (CALLABLE) 713448FX1 1,935,000.00 Citigrou 06/17/29 101.89 1,971,523.13 39,522.38 38,899.38 DTD 07/17/2024 4.500% 07/17/2029

3.47 3.97
ELI LILLY & CO (CALLABLE) 532457CQ9 660,000.00 MorganSt 07/14/29 100.86 665,689.20 7,134.60 6,854.49 DTD 08/14/2024 4.200% 08/14/2029

3.56 3.96
ELI LILLY & CO (CALLABLE) 532457CQ9 2,290,000.00 JPMorgan 07/14/29 100.86 2,309,739.80 16,396.40 17,036.88 DTD 08/14/2024 4.200% 08/14/2029

3.56 3.96
PEPSICO INC (CALLABLE) 713448GB8 730,000.00 MorganSt 01/07/30 102.32 746,905.34 18,131.74 18,005.35 DTD 02/07/2025 4.600% 02/07/2030

3.94 4.02
WALMART INC (CALLABLE) 931142FN8 1,140,000.00 BOFAML 03/28/30 101.49 1,157,027.04 18,999.24 18,876.69 DTD 04/28/2025 4.350% 04/28/2030

4.09 3.99
WALMART INC (CALLABLE) 931142FN8 3,500,000.00 KEYB 03/28/30 101.49 3,552,276.00 20,811.00 22,742.35 DTD 04/28/2025 4.350% 04/28/2030

4.09 3.99
APPLE INC (CALLABLE) 037833DU1 1,834,000.00 JPMorgan 02/11/30 90.14 1,653,207.95 21,644.87 15,446.60 DTD 05/11/2020 1.650% 05/11/2030

4.40 3.97
APPLE INC (CALLABLE) 037833DU1 4,890,000.00 SUSQ 02/11/30 90.14 4,407,953.58 58,151.88 41,610.91 DTD 05/11/2020 1.650% 05/11/2030

4.40 3.97
Security Type Sub-Total 80,149,000.00 80,241,196.80 1,206,427.97 899,384.23 2.27 4.08 Certificate of Deposit
COOPERAT RABOBANK UA/NY 21684LGS5 3,500,000.00 RABO UA 101.23 3,543,116.50 43,116.50 43,116.50 DTD 07/20/2023 5.080% 07/17/2026

0.85 3.63
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Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Security Type Sub-Total 3,500,000.00 3,543,116.50 43,116.50 43,116.50 0.85 3.63 Bank Note
WELLS FARGO BANK NA (CALLABLE) 94988J6D4 5,635,000.00 WellsFar 07/07/26 101.04 5,693,491.30 71,846.25 62,685.01 DTD 08/09/2023 5.450% 08/07/2026

0.82 4.30
MORGAN STANLEY BANK NA (CALLABLE) 61690U8B9 1,360,000.00 MorganSt 05/26/27 102.21 1,390,023.36 30,023.36 30,023.36 DTD 05/30/2024 5.504% 05/26/2028

1.63 4.55
MORGAN STANLEY BANK NA (CALLABLE) 61690U8B9 2,640,000.00 MorganSt 05/26/27 102.21 2,698,280.64 52,710.24 55,170.08 DTD 05/30/2024 5.504% 05/26/2028

1.63 4.55
Security Type Sub-Total 9,635,000.00 9,781,795.30 154,579.85 147,878.45 1.16 4.40 Asset-Backed Security
CCCIT 2023-A1 A1 17305EGW9 835,000.00 Citigrou 100.24 837,015.69 2,120.40 2,077.43 DTD 12/11/2023 5.230% 12/08/2027

0.27 4.29
KCOT 2023-2A A3 500945AC4 890,000.00 JPMorgan 100.77 896,854.78 7,079.59 6,974.30 DTD 07/26/2023 5.280% 01/18/2028

0.71 4.25
BAAT 2023-1A A3 06428AAC2 977,473.63 BOFAML 100.77 984,976.72 7,540.13 7,523.13 DTD 07/31/2023 5.530% 02/15/2028

0.63 4.37
HAROT 2023-3 A3 43815QAC1 1,653,061.22 BOFAML 100.73 1,665,113.69 12,393.33 12,239.56 DTD 08/22/2023 5.410% 02/18/2028

0.64 4.33
TAOT 2023-C A3 89231FAD2 587,910.02 BNPPSA 100.61 591,477.46 3,700.42 3,642.23 DTD 08/15/2023 5.160% 04/17/2028

0.66 4.29
USAOT 2023-A A3 90291VAC4 1,948,946.49 JPMorgan 100.65 1,961,612.70 13,007.27 12,871.31 DTD 09/15/2023 5.580% 05/15/2028

0.54 4.44
BAAT 2023-2A A3 06054YAC1 2,578,059.11 BOFAML 100.97 2,603,063.70 25,051.25 25,031.11 DTD 11/21/2023 5.740% 06/15/2028

0.67 4.36
TAOT 2023-D A3 89239FAD4 765,000.00 JPMorgan 101.14 773,733.24 8,815.71 8,785.27 DTD 11/14/2023 5.540% 08/15/2028

0.87 4.29
FITAT 2023-1 A3 31680EAD3 1,950,364.23 JPMorgan 100.89 1,967,671.76 17,428.45 17,379.33 DTD 08/23/2023 5.530% 08/15/2028

0.71 4.34
CHAIT 2023-A1 A 161571HT4 3,020,000.00 JPMorgan 101.13 3,054,086.74 34,923.88 34,620.75 DTD 09/15/2023 5.160% 09/15/2028

0.99 4.08
AMXCA 2023-3 A 02582JKD1 3,090,000.00 Citigrou 101.20 3,127,024.38 37,162.50 37,111.02 DTD 09/19/2023 5.230% 09/15/2028

0.99 4.08
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Asset-Backed Security
HART 2023-C A3 44918CAD4 1,130,000.00 BNPPSA 101.03 1,141,649.17 11,797.76 11,746.23 DTD 11/13/2023 5.540% 10/16/2028

0.80 4.31
BACCT 2023-A2 A2 05522RDH8 1,365,000.00 BOFAML 101.10 1,380,009.54 15,192.86 15,130.63 DTD 12/14/2023 4.980% 11/15/2028

1.15 4.08
GMCAR 2024-1 A3 36268GAD7 365,000.00 Barclays 100.54 366,964.80 2,038.20 2,015.86 DTD 01/17/2024 4.850% 12/18/2028

0.85 4.26
CHAIT 2024-A1 A 161571HV9 3,390,000.00 JPMorgan 100.78 3,416,540.31 27,056.61 26,899.69 DTD 01/31/2024 4.600% 01/15/2029

1.30 4.05
KCOT 2025-1A A3 50117FAC5 1,550,000.00 JPMorgan 101.51 1,573,409.65 23,462.81 23,452.63 DTD 02/19/2025 4.670% 06/15/2029

2.21 4.04
HART 2025-A A3 44935CAD3 2,525,000.00 Barclays 100.68 2,542,190.20 17,562.64 17,523.33 DTD 03/12/2025 4.320% 10/15/2029

1.77 3.98
HART 2025-B A3 44935XAD7 960,000.00 JPMorgan 100.97 969,348.48 9,435.17 9,431.05 DTD 06/11/2025 4.360% 12/17/2029

1.99 3.91
HAROT 2025-3 A3 43813QAD1 2,355,000.00 Barclays 100.23 2,360,327.01 5,376.23 5,375.11 DTD 08/12/2025 4.040% 02/21/2030

2.18 3.97
TAOT 2025-C A3 89238VAD0 1,635,000.00 RBC Capi 100.54 1,643,829.00 9,001.33 8,997.98 DTD 07/30/2025 4.110% 03/15/2030

2.26 3.91
GMCAR 2025-2 A3 362549AD9 680,000.00 TD Secur 100.77 685,202.00 5,302.10 5,296.00 DTD 05/14/2025 4.280% 04/16/2030

1.98 3.93
BACCT 2025-A1 A 05522RDK1 1,830,000.00 BOFAML 101.13 1,850,761.35 20,768.30 20,761.35 DTD 06/12/2025 4.310% 05/15/2030

2.50 3.90
CCCIT 2025-A1 A 17305EHA6 3,990,000.00 Citigrou 100.99 4,029,648.63 40,731.12 40,694.89 DTD 06/26/2025 4.300% 06/21/2030

2.60 3.92
CHAOT 2025-1A A3 16145NAC5 1,135,000.00 JPMorgan 100.70 1,142,947.27 8,058.16 8,055.75 DTD 07/30/2025 4.290% 06/25/2030

2.13 4.00
AMXCA 2025-4 A 02582JKV1 2,265,000.00 Barclays 101.19 2,291,953.50 27,279.89 27,271.56 DTD 07/22/2025 4.300% 07/15/2030

2.65 3.89
CHAIT 2025-A1 A 161571HZ0 3,190,000.00 JPMorgan 100.80 3,215,535.95 25,600.07 25,592.14 DTD 07/25/2025 4.160% 07/15/2030

2.65 3.90
Security Type Sub-Total 46,660,814.71 47,072,947.72 417,886.18 416,499.64 1.56 4.09 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 24 U.S. Bancorp Asset Management, Inc.
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Managed Account Fair Market Value & Analytics For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Managed Account Sub-Total 451,297,669.06 452,575,532.47 8,165,431.46 3,876,420.40 2.28 3.92 Total Investments $455,546,088.25
$2,970,555.78
$452,575,532.47
Accrued Interest
Securities Sub-Total $451,297,669.06 $8,165,431.46 $3,876,420.40 2.28 3.92% PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 25 U.S. Bancorp Asset Management, Inc.
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Managed Account Security Transactions & Interest For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
BUY
08/05/25 US TREASURY N/B
DTD 07/31/2025 3.875% 07/31/2030
08/01/25 91282CNN7 3,780,000.00 (3,761,395.31) (1,990.15) (3,763,385.46) 08/12/25 HAROT 2025-3 A3
DTD 08/12/2025 4.040% 02/21/2030
08/05/25 43813QAD1 2,355,000.00 (2,354,950.78) 0.00 (2,354,950.78) 08/25/25 NATIONAL RURAL UTIL COOP
(CALLABLE)
DTD 08/25/2025 4.150% 08/25/2028
08/19/25 63743HFZ0 1,550,000.00 (1,548,264.00) 0.00 (1,548,264.00) Transaction Type Sub-Total 7,685,000.00 (7,664,610.09) (1,990.15) (7,666,600.24)

INTEREST
08/01/25 MONEY MARKET FUND
DTD 01/01/2010 0.000% --
08/01/25 MONEY0002 0.00 6,373.45 6,373.45
08/25/25 FHMS K522 A2
DTD 06/01/2024 4.803% 05/01/2029
08/01/25 3137HDJJ0 0.00 15,017.35 15,017.35
08/25/25 FHMS K517 A2
DTD 03/01/2024 5.355% 01/01/2029
08/01/25 3137HC2C5 0.00 14,971.69 14,971.69
08/25/25 FHMS K510 A2
DTD 11/01/2023 5.069% 10/01/2028
08/01/25 3137HB3D4 0.00 6,188.40 6,188.40
08/25/25 FHMS K065 A2
DTD 07/01/2017 3.243% 04/01/2027
08/01/25 3137F1G44 0.00 6,148.19 6,148.19
08/25/25 FHMS K508 A2
DTD 10/01/2023 4.740% 08/01/2028
08/01/25 3137HAQ74 0.00 15,207.50 15,207.50
08/25/25 FHMS K516 A2
DTD 03/01/2024 5.477% 01/01/2029
08/01/25 3137HBPM0 0.00 17,115.63 17,115.63
08/25/25 FHMS KJ47 A1
DTD 09/01/2023 5.272% 08/01/2028
08/01/25 3137HAMN3 0.00 15,889.42 15,889.42
08/25/25 FHMS K515 A2
DTD 02/01/2024 5.400% 01/01/2029
08/01/25 3137HBPD0 0.00 16,875.00 16,875.00
08/25/25 FHMS K524 A2
DTD 07/01/2024 4.720% 05/01/2029
08/01/25 3137HDV56 0.00 12,763.67 12,763.67
08/25/25 FHMS K064 A2
DTD 05/01/2017 3.224% 03/01/2027
08/01/25 3137BXQY1 0.00 10,746.67 10,746.67
08/25/25 FHMS K505 A2
DTD 07/01/2023 4.819% 06/01/2028
08/01/25 3137HACX2 0.00 14,055.42 14,055.42
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Managed Account Security Transactions & Interest For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method

INTEREST
08/25/25 FHMS K507 A1
DTD 09/01/2023 4.800% 04/01/2028
08/01/25 3137HAMR4 0.00 13,643.50 13,643.50
08/25/25 FNA 2023-M6 A2
DTD 07/01/2023 4.190% 07/01/2028
08/01/25 3136BQDE6 0.00 11,671.33 11,671.33
08/25/25 FHMS K507 A2
DTD 09/01/2023 4.800% 09/01/2028
08/01/25 3137HAMS2 0.00 15,200.00 15,200.00
08/25/25 FHMS K518 A2
DTD 03/01/2024 5.400% 01/01/2029
08/01/25 3137HC2L5 0.00 12,217.50 12,217.50
08/25/25 FHMS K530 A2
DTD 11/01/2024 4.792% 09/01/2029
08/01/25 3137HHJL6 0.00 15,893.47 15,893.47
08/25/25 FHMS K520 A2
DTD 04/01/2024 5.180% 03/01/2029
08/01/25 3137HCKV3 0.00 9,172.92 9,172.92
08/25/25 FHMS K511 A2
DTD 12/01/2023 4.860% 10/01/2028
08/01/25 3137HB3G7 0.00 8,606.25 8,606.25
08/25/25 FHMS KJ46 A1
DTD 07/01/2023 4.777% 06/01/2028
08/01/25 3137HAD45 0.00 11,018.20 11,018.20
08/25/25 FHMS K509 A2
DTD 10/01/2023 4.850% 09/01/2028
08/01/25 3137HAST4 0.00 11,680.42 11,680.42
08/25/25 FHMS K514 A2
DTD 02/01/2024 4.572% 12/01/2028
08/01/25 3137HBLV4 0.00 8,458.20 8,458.20
08/25/25 FHMS K513 A2
DTD 01/01/2024 4.724% 12/01/2028
08/01/25 3137HBFY5 0.00 8,621.30 8,621.30
08/25/25 FHMS K506 A1
DTD 09/01/2023 4.650% 05/01/2028
08/01/25 3137HAMG8 0.00 7,220.01 7,220.01
08/25/25 FHMS K512 A2
DTD 12/01/2023 5.000% 11/01/2028
08/01/25 3137HBCF9 0.00 8,062.50 8,062.50
08/25/25 FHMS K061 A2
DTD 01/01/2017 3.347% 11/01/2026
08/01/25 3137BTUM1 0.00 6,632.47 6,632.47
08/25/25 FHMS K066 A2
DTD 08/01/2017 3.117% 06/01/2027
08/01/25 3137F2LJ3 0.00 9,169.18 9,169.18
08/25/25 FHMS K526 A2
DTD 08/01/2024 4.543% 07/01/2029
08/01/25 3137HDXL9 0.00 13,250.42 13,250.42
08/25/25 FHMS K506 A2
DTD 09/01/2023 4.650% 08/01/2028
08/01/25 3137HAMH6 0.00 14,725.00 14,725.00
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Managed Account Security Transactions & Interest For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method

INTEREST
08/06/25 MICROSOFT CORP (CALLABLE)
DTD 02/06/2017 3.300% 02/06/2027
08/06/25 594918BY9 0.00 49,500.00 49,500.00
08/07/25 PEPSICO INC (CALLABLE)
DTD 02/07/2025 4.600% 02/07/2030
08/07/25 713448GB8 0.00 16,790.00 16,790.00
08/07/25 WELLS FARGO BANK NA (CALLABLE)
DTD 08/09/2023 5.450% 08/07/2026
08/07/25 94988J6D4 0.00 153,553.75 153,553.75
08/08/25 MICROSOFT CORP (CALLABLE)
DTD 08/08/2016 2.400% 08/08/2026
08/08/25 594918BR4 0.00 36,000.00 36,000.00
08/10/25 PACCAR FINANCIAL CORP
DTD 08/10/2023 4.950% 08/10/2028
08/10/25 69371RS64 0.00 27,967.50 27,967.50
08/14/25 ELI LILLY & CO (CALLABLE)
DTD 08/14/2024 4.200% 08/14/2029
08/14/25 532457CQ9 0.00 61,950.00 61,950.00
08/15/25 HART 2025-A A3
DTD 03/12/2025 4.320% 10/15/2029
08/15/25 44935CAD3 0.00 9,090.00 9,090.00
08/15/25 US TREASURY N/B
DTD 02/15/2017 2.250% 02/15/2027
08/15/25 912828V98 0.00 103,725.00 103,725.00
08/15/25 BAAT 2023-2A A3
DTD 11/21/2023 5.740% 06/15/2028
08/15/25 06054YAC1 0.00 13,243.39 13,243.39
08/15/25 AMXCA 2025-4 A
DTD 07/22/2025 4.300% 07/15/2030
08/15/25 02582JKV1 0.00 6,222.46 6,222.46
08/15/25 TAOT 2025-C A3
DTD 07/30/2025 4.110% 03/15/2030
08/15/25 89238VAD0 0.00 2,799.94 2,799.94
08/15/25 TAOT 2023-D A3
DTD 11/14/2023 5.540% 08/15/2028
08/15/25 89239FAD4 0.00 3,531.75 3,531.75
08/15/25 BACCT 2023-A2 A2
DTD 12/14/2023 4.980% 11/15/2028
08/15/25 05522RDH8 0.00 5,664.75 5,664.75
08/15/25 CHAIT 2024-A1 A
DTD 01/31/2024 4.600% 01/15/2029
08/15/25 161571HV9 0.00 12,995.00 12,995.00
08/15/25 BAAT 2023-1A A3
DTD 07/31/2023 5.530% 02/15/2028
08/15/25 06428AAC2 0.00 4,882.20 4,882.20
08/15/25 USAOT 2023-A A3
DTD 09/15/2023 5.580% 05/15/2028
08/15/25 90291VAC4 0.00 9,945.62 9,945.62
08/15/25 HART 2025-B A3
DTD 06/11/2025 4.360% 12/17/2029
08/15/25 44935XAD7 0.00 3,488.00 3,488.00
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Managed Account Security Transactions & Interest For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method

INTEREST
08/15/25 US TREASURY N/B
DTD 08/15/2017 2.250% 08/15/2027
08/15/25 9128282R0 0.00 47,081.25 47,081.25
08/15/25 CHAIT 2023-A1 A
DTD 09/15/2023 5.160% 09/15/2028
08/15/25 161571HT4 0.00 12,986.00 12,986.00
08/15/25 TAOT 2023-C A3
DTD 08/15/2023 5.160% 04/17/2028
08/15/25 89231FAD2 0.00 2,707.17 2,707.17
08/15/25 KCOT 2025-1A A3
DTD 02/19/2025 4.670% 06/15/2029
08/15/25 50117FAC5 0.00 6,032.08 6,032.08
08/15/25 AMXCA 2023-3 A
DTD 09/19/2023 5.230% 09/15/2028
08/15/25 02582JKD1 0.00 13,467.25 13,467.25
08/15/25 KCOT 2023-2A A3
DTD 07/26/2023 5.280% 01/18/2028
08/15/25 500945AC4 0.00 3,916.00 3,916.00
08/15/25 BACCT 2025-A1 A
DTD 06/12/2025 4.310% 05/15/2030
08/15/25 05522RDK1 0.00 6,572.75 6,572.75
08/15/25 HART 2023-C A3
DTD 11/13/2023 5.540% 10/16/2028
08/15/25 44918CAD4 0.00 5,216.83 5,216.83
08/15/25 CHAIT 2025-A1 A
DTD 07/25/2025 4.160% 07/15/2030
08/15/25 161571HZ0 0.00 7,372.44 7,372.44
08/15/25 FITAT 2023-1 A3
DTD 08/23/2023 5.530% 08/15/2028
08/15/25 31680EAD3 0.00 9,640.86 9,640.86
08/16/25 GMCAR 2024-1 A3
DTD 01/17/2024 4.850% 12/18/2028
08/16/25 36268GAD7 0.00 1,475.21 1,475.21
08/16/25 GMCAR 2025-2 A3
DTD 05/14/2025 4.280% 04/16/2030
08/16/25 362549AD9 0.00 2,425.33 2,425.33
08/18/25 BANK OF AMERICA NA (CALLABLE)
DTD 08/18/2023 5.526% 08/18/2026
08/18/25 06428CAA2 0.00 103,612.50 103,612.50
08/18/25 HAROT 2023-3 A3
DTD 08/22/2023 5.410% 02/18/2028
08/18/25 43815QAC1 0.00 8,069.79 8,069.79
08/20/25 STATE STREET CORP (CALLABLE)
DTD 08/20/2024 4.530% 02/20/2029
08/20/25 857477CN1 0.00 43,035.00 43,035.00
08/24/25 JPMORGAN CHASE & CO (CALLABLE)
DTD 02/24/2022 2.947% 02/24/2028
08/24/25 46647PCW4 0.00 22,618.23 22,618.23
08/25/25 CHAOT 2025-1A A3
DTD 07/30/2025 4.290% 06/25/2030
08/25/25 16145NAC5 0.00 3,381.35 3,381.35
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Managed Account Security Transactions & Interest For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method

INTEREST
08/29/25 FHMS K522 A2
DTD 06/01/2024 4.803% 05/01/2029
08/29/25 3137HDJJ0 0.00 2,497.11 2,497.11
08/31/25 US TREASURY N/B
DTD 02/28/2023 4.000% 02/28/2030
08/31/25 91282CGQ8 0.00 171,300.00 171,300.00
08/31/25 US TREASURY N/B
DTD 08/31/2021 0.750% 08/31/2026
08/31/25 91282CCW9 0.00 17,400.00 17,400.00
08/31/25 US TREASURY N/B
DTD 09/03/2024 3.625% 08/31/2029
08/31/25 91282CLK5 0.00 136,843.75 136,843.75
08/31/25 US TREASURY N/B
DTD 02/28/2023 4.000% 02/29/2028
08/31/25 91282CGP0 0.00 24,900.00 24,900.00
08/31/25 US TREASURY N/B
DTD 02/28/2019 2.500% 02/28/2026
08/31/25 9128286F2 0.00 17,000.00 17,000.00
08/31/25 US TREASURY N/B
DTD 03/01/2021 0.500% 02/28/2026
08/31/25 91282CBQ3 0.00 17,862.50 17,862.50
Transaction Type Sub-Total 0.00 1,545,357.82 1,545,357.82

PAYDOWNS
08/25/25 FHMS KJ47 A1
DTD 09/01/2023 5.272% 08/01/2028
08/01/25 3137HAMN3 150,779.43 150,779.45 0.00 150,779.45 0.77 0.45 08/25/25 FHMS K507 A1
DTD 09/01/2023 4.800% 04/01/2028
08/01/25 3137HAMR4 21,585.06 21,585.06 0.00 21,585.06 338.74 215.91 08/25/25 FHMS K522 A2
DTD 06/01/2024 4.803% 05/01/2029
08/01/25 3137HDJJ0 362.75 362.75 0.00 362.75 0.00 0.00
08/25/25 FHMS KJ46 A1
DTD 07/01/2023 4.777% 06/01/2028
08/01/25 3137HAD45 2,728.89 2,728.89 0.00 2,728.89 0.07 0.04 08/25/25 FHMS K506 A1
DTD 09/01/2023 4.650% 05/01/2028
08/01/25 3137HAMG8 2,103.89 2,103.89 0.00 2,103.89 31.46 19.79 08/25/25 FNA 2023-M6 A2
DTD 07/01/2023 4.190% 07/01/2028
08/01/25 3136BQDE6 313.73 313.74 0.00 313.74 5.33 3.20
08/25/25 FHMS K061 A2
DTD 01/01/2017 3.347% 11/01/2026
08/01/25 3137BTUM1 4,899.29 4,899.29 0.00 4,899.29 150.80 56.68 08/15/25 USAOT 2023-A A3
DTD 09/15/2023 5.580% 05/15/2028
08/15/25 90291VAC4 189,896.38 189,896.37 0.00 189,896.37 33.23 20.28 PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 30 U.S. Bancorp Asset Management, Inc.
#11..
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Managed Account Security Transactions & Interest For the Month Ending August 31, 2025 CITY OF MODESTO - Combined Portfolio
Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method

PAYDOWNS
08/15/25 BAAT 2023-1A A3
DTD 07/31/2023 5.530% 02/15/2028
08/15/25 06428AAC2 81,954.94 81,954.93 0.00 81,954.93 3.10 1.70 08/15/25 TAOT 2023-C A3
DTD 08/15/2023 5.160% 04/17/2028
08/15/25 89231FAD2 41,663.55 41,663.55 0.00 41,663.55 9.43 5.39 08/15/25 BAAT 2023-2A A3
DTD 11/21/2023 5.740% 06/15/2028
08/15/25 06054YAC1 190,594.46 190,594.46 0.00 190,594.46 3.45 1.99 08/15/25 FITAT 2023-1 A3
DTD 08/23/2023 5.530% 08/15/2028
08/15/25 31680EAD3 141,684.36 141,684.36 0.00 141,684.36 8.78 5.29 08/18/25 HAROT 2023-3 A3
DTD 08/22/2023 5.410% 02/18/2028
08/18/25 43815QAC1 136,910.01 136,910.02 0.00 136,910.02 28.24 15.73 Transaction Type Sub-Total 965,476.74 965,476.76 0.00 965,476.76 613.40 346.45 SELL
08/05/25 US TREASURY N/B
DTD 03/01/2021 0.500% 02/28/2026
08/01/25 91282CBQ3 3,500,000.00 3,425,488.28 7,513.59 3,433,001.87 19,824.22 (61,864.35) FIFO 08/08/25 US TREASURY N/B
DTD 10/31/2022 4.125% 10/31/2027
08/06/25 91282CFU0 1,800,000.00 1,816,031.25 20,176.63 1,836,207.88 (9,000.00) 4,635.59 FIFO Transaction Type Sub-Total 5,300,000.00 5,241,519.53 27,690.22 5,269,209.75 10,824.22 (57,228.76) Managed Account Sub-Total (1,457,613.80) 1,571,057.89 113,444.09 11,437.62 (56,882.31) Total Security Transactions ($1,457,613.80) $1,571,057.89 $113,444.09 $11,437.62 ($56,882.31) PFM Asset Management, a division of CITY OF MODESTO - COMBINED PORTFOLIO Page 31 U.S. Bancorp Asset Management, Inc.
#11..
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Attachment 3
City of Modesto Combined Yields
Month
Ending
Combined
Yield
CAMP
Balance
CAMP Monthly
Distribution Yields
Long Term Amortized
Cost Balance
Long Term Portfolio
Yield
Short Term
Amortized Cost
Balance
Short Term
Portfolio Yield
8/31/2023 3.14% 48,412,208.12 5.52% 392,278,686.76 2.60% 41,598,139.19 5.44% 9/30/2023 3.36% 48,632,969.13 5.55% 392,056,693.34 2.85% 41,767,569.64 5.55% 10/31/2023 3.40% 48,862,493.00 5.56% 393,319,562.86 2.89% 41,829,190.02 5.63% 11/30/2023 3.46% 49,086,612.73 5.58% 396,095,890.19 2.97% 41,987,235.92 5.60% 12/31/2023 3.51% 49,318,080.86 5.55% 393,872,751.60 3.03% 42,137,084.04 5.60% 1/31/2024 3.54% 49,549,288.20 5.54% 395,563,681.33 3.07% 42,286,932.15 5.60% 2/29/2024 3.57% 49,765,331.51 5.50% 400,022,027.47 3.13% 42,269,831.92 5.45% 3/31/2024 3.59% 49,996,308.29 5.48% 397,576,602.33 3.16% 42,372,823.25 5.35% 4/30/2024 3.61% 50,219,345.80 5.44% 398,650,446.11 3.19% 42,473,217.00 5.35% 5/31/2024 3.68% 50,450,429.25 5.43% 399,100,250.21 3.29% 42,706,970.79 5.27% 6/30/2024 3.76% 50,674,988.39 5.43% 399,326,031.56 3.39% 42,808,365.69 5.27% 7/31/2024 3.79% 50,908,210.76 5.43% 400,074,642.53 3.44% 43,066,591.51 5.14% 8/31/2024 3.65% 36,112,852.04 5.41% 400,899,946.42 3.34% 43,149,544.75 5.10% 9/30/2024 3.73% 21,244,197.28 5.29% 401,135,133.05 3.54% 43,205,826.11 4.78% 10/31/2024 3.80% 35,394,422.01 5.03% 403,285,397.15 3.62% 32,709,563.98 4.65% 11/30/2024 3.83% 36,072,860.08 4.87% 404,702,479.08 3.67% 32,740,820.12 4.65% 12/31/2024 3.84% 28,695,113.02 4.73% 405,389,405.62 3.71% 32,773,649.87 4.65% 1/31/2025 3.92% 28,806,032.00 4.55% 405,929,868.49 3.82% 32,806,480.28 4.65% 2/28/2025 3.96% 28,905,743.58 4.51% 407,804,449.58 3.87% 32,836,151.16 4.65% 3/31/2025 4.09% 44,039,271.43 4.47% 408,339,752.77 4.00% 32,869,009.39 4.65% 4/30/2025 4.09% 44,200,320.85 4.45% 409,488,391.09 4.01% 32,900,814.33 4.65% 5/31/2025 4.11% 79,438,306.43 4.42% 410,441,768.77 4.04% 32,935,133.33 4.31% 6/30/2025 4.14% 79,725,922.37 4.40% 412,622,161.85 4.08% 32,944,543.05 4.31% 7/31/2025 4.14% 59,964,300.41 4.41% 413,979,818.20 4.10% 33,186,228.57 4.08% 8/31/2025 4.15% 60,188,576.00 4.40% 415,507,339.76 4.12% 33,191,772.31 4.08% Notes:

1. Long and Short Term Portfolio AC Balance is the amortized cost value of the separately managed portfolios.

2. Long and Short Term Portfolio Yields are the separately managed portfolios yield at costs. #11..

Attachment 4
City of Modesto - Portfolio Holdings and Earnings Projections Issuer Par Maturity Date Current Yield
Years to
Maturity
Expected
Earnings
Rate to June
30, 2026
Expected
Earnings to
June 30, 2026
Main Portfolio
Federal Agency CMBS
FHLMC 2,373,041 11/1/2026 4.260% 1 119,118 4.29% 84,527 FHLMC 4,000,000 3/1/2027 4.000% 1 296,033 4.94% 163,982 FHLMC 2,275,000 4/1/2027 3.990% 2 177,781 4.93% 93,197
FHLMC 3,530,000 6/1/2027 3.960% 2 306,969 4.97% 145,558 FHLMC 3,389,290 4/1/2028 3.990% 3 455,038 5.19% 146,055 FHLMC 1,861,123 5/1/2028 3.950% 3 248,653 5.01% 77,353
FHLMC 3,500,000 6/1/2028 3.970% 3 442,608 4.59% 133,443 FHLMC 2,765,084 6/1/2028 4.150% 3 363,733 4.78% 109,663 FNMA 3,342,310 7/1/2028 3.860% 3 433,662 4.58% 126,956
FHLMC 3,800,000 8/1/2028 3.970% 3 553,450 4.99% 157,313 FHLMC 1,785,377 8/1/2028 4.070% 3 274,897 5.27% 78,137
FHLMC 3,850,000 8/1/2028 3.900% 3 590,507 5.25% 167,846 FHLMC 3,800,000 9/1/2028 3.970% 3 579,572 5.07% 160,082 FHLMC 2,890,000 9/1/2028 3.910% 3 486,798 5.60% 134,457 FHLMC 1,465,000 10/1/2028 3.990% 3 232,288 5.14% 62,452 FHLMC 2,125,000 10/1/2028 3.980% 3 323,210 4.93% 86,897 FHLMC 1,935,000 11/1/2028 3.990% 3 293,898 4.79% 76,901 FHLMC 2,190,000 12/1/2028 3.990% 3 320,653 4.50% 81,783 FHLMC 2,220,000 12/1/2028 3.910% 3 313,947 4.34% 80,072 FHLMC 3,750,000 1/1/2029 4.050% 3 599,761 4.79% 149,079 FHLMC 2,715,000 1/1/2029 3.990% 3 438,035 4.83% 108,880 FHLMC 3,355,000 1/1/2029 3.950% 3 522,894 4.67% 129,973 FHLMC 3,750,000 1/1/2029 4.040% 3 599,472 4.79% 149,008 FHLMC 2,125,000 3/1/2029 3.990% 4 378,352 5.09% 89,703
FHLMC 3,751,629 5/1/2029 3.990% 4 661,028 4.80% 149,583 FHLMC 3,245,000 5/1/2029 3.990% 4 544,775 4.58% 123,276 FHLMC 3,500,000 7/1/2029 4.000% 4 581,690 4.33% 125,894 FHLMC 3,980,000 9/1/2029 4.020% 4 744,435 4.67% 154,284 U.S. Treasury
U.S. Treasury 11,115,000 9/15/2025 4.120% 0 18,253 3.59% 331,302 U.S. Treasury 1,360,000 2/28/2026 4.233% 0 4,736 1.84% 20,752 U.S. Treasury 2,500,000 2/28/2026 4.121% 0 14,315 2.11% 43,755 U.S. Treasury 4,645,000 2/28/2026 4.121% 0 63,528 3.07% 118,227 U.S. Treasury 4,925,000 3/31/2026 4.207% 1 24,872 1.67% 68,115 U.S. Treasury 2,480,000 3/31/2026 4.207% 1 10,929 1.59% 32,704 U.S. Treasury 11,085,000 5/15/2026 3.969% 1 323,488 4.05% 372,665 U.S. Treasury 1,405,000 5/31/2026 4.179% 1 9,125 1.13% 13,189 U.S. Treasury 4,615,000 5/31/2026 4.179% 1 95,303 2.84% 108,652 U.S. Treasury 4,800,000 5/31/2026 4.179% 1 107,431 3.04% 121,315 U.S. Treasury 10,995,000 7/15/2026 4.116% 1 391,397 4.09% 372,935 U.S. Treasury 4,640,000 8/31/2026 3.870% 1 127,605 2.75% 105,929 U.S. Treasury 4,310,000 9/30/2026 3.850% 1 129,102 2.77% 99,032 U.S. Treasury 4,545,000 11/15/2026 3.810% 1 165,224 3.01% 113,521 U.S. Treasury 9,220,000 2/15/2027 3.730% 1 384,053 2.85% 218,326 U.S. Treasury 6,480,000 4/30/2027 3.680% 2 314,453 2.92% 156,968 U.S. Treasury 5,545,000 6/30/2027 3.650% 2 303,682 2.99% 137,748 U.S. Treasury 1,200,000 8/15/2027 3.650% 2 77,546 3.30% 32,908 U.S. Treasury 2,985,000 8/15/2027 3.650% 2 198,543 3.40% 84,256 U.S. Treasury 805,000 9/30/2027 3.630% 2 71,623 4.27% 28,555 U.S. Treasury 915,000 10/31/2027 3.630% 2 75,551 3.81% 28,941 U.S. Treasury 3,160,000 10/31/2027 3.630% 2 248,463 3.63% 95,176 U.S. Treasury 8,775,000 10/31/2027 3.620% 2 743,755 3.91% 284,902 U.S. Treasury 4,250,000 12/31/2027 3.610% 2 374,868 3.78% 133,316 U.S. Treasury 115,000 1/31/2028 3.610% 2 10,188 3.66% 3,496 U.S. Treasury 595,000 1/31/2028 3.600% 2 50,628 3.52% 17,373 U.S. Treasury 1,245,000 2/29/2028 3.600% 2 132,187 4.25% 43,917 U.S. Treasury 2,555,000 3/31/2028 3.600% 3 230,474 3.49% 74,055 U.S. Treasury 2,675,000 3/31/2028 3.590% 3 252,121 3.65% 81,010 U.S. Treasury 735,000 4/30/2028 3.600% 3 70,583 3.60% 21,980 U.S. Treasury 6,530,000 4/30/2028 3.600% 3 591,764 3.40% 184,280 U.S. Treasury 3,450,000 3/31/2029 3.620% 4 540,844 4.37% 125,287 U.S. Treasury 5,190,000 4/30/2029 3.630% 4 869,968 4.57% 197,011 U.S. Treasury 4,430,000 4/30/2029 3.630% 4 625,131 3.85% 141,566 U.S. Treasury 2,920,000 6/30/2029 3.640% 4 495,548 4.43% 107,327 U.S. Treasury 2,105,000 7/31/2029 3.640% 4 317,146 3.85% 67,199 U.S. Treasury 7,550,000 8/31/2029 3.650% 4 1,081,629 3.58% 224,321 U.S. Treasury 8,695,000 9/30/2029 3.650% 4 1,265,452 3.56% 257,164 U.S. Treasury 4,850,000 10/31/2029 3.660% 4 845,356 4.18% 168,294 U.S. Treasury 6,315,000 11/30/2029 3.660% 4 1,096,786 4.08% 214,128 U.S. Treasury 12,365,000 12/31/2029 3.670% 4 2,373,041 4.43% 454,221 U.S. Treasury 3,470,000 1/31/2030 3.670% 4 664,919 4.33% 124,827 U.S. Treasury 5,215,000 1/31/2030 3.670% 4 917,569 3.98% 172,257 U.S. Treasury 8,565,000 2/28/2030 3.670% 4 1,525,395 3.96% 281,483 U.S. Treasury 10,775,000 3/31/2030 3.680% 5 1,920,596 3.89% 347,843 U.S. Treasury 5,400,000 5/31/2030 3.700% 5 1,026,610 4.00% 179,390 U.S. Treasury 1,805,000 6/30/2030 3.690% 5 332,211 3.81% 57,063 Earnings to
Maturity
August 31, 2025
#11..

Attachment 4
City of Modesto - Portfolio Holdings and Earnings Projections Issuer Par Maturity Date Current Yield
Years to
Maturity
Expected
Earnings
Rate to June
30, 2026
Expected
Earnings to
June 30, 2026
Earnings to
Maturity
August 31, 2025
Negotiable CD
Rabobank Nederland 3,500,000 7/17/2026 3.630% 1 155,879 5.08% 147,598 Corporate Note
Bristol-Myers Squibb Co 2,230,000 11/13/2025 4.240% 0 4,295 2.91% 53,932 The Bank Of New York Mellon Corporation 3,465,000 1/28/2026 4.323% 0 10,609 2.15% 61,848 Wells Fargo & Company 5,635,000 8/7/2026 4.300% 1 291,499 5.54% 259,016 Microsoft Corp 3,000,000 8/8/2026 4.020% 1 60,107 2.14% 53,252 Bank Of America Co 3,750,000 8/18/2026 4.190% 1 199,949 5.53% 172,115 Mastercard Inc 2,560,000 11/21/2026 3.940% 1 135,713 4.33% 91,994 JPMorgan Chase & Co 3,500,000 12/8/2026 4.060% 1 227,360 5.11% 148,470 JPMorgan Chase & Co 850,000 12/8/2026 4.060% 1 55,634 5.15% 36,330 Target Corp 365,000 1/15/2027 3.920% 1 9,970 1.99% 6,018 Microsoft Corp 3,000,000 2/6/2027 3.830% 1 174,725 4.06% 101,033 Goldman Sachs Group Inc 3,000,000 5/21/2027 4.810% 2 262,144 5.08% 126,481 Home Depot Inc 3,610,000 9/14/2027 3.900% 2 305,958 4.16% 124,604 JPMorgan Chase & Co 1,535,000 2/24/2028 4.760% 2 195,696 5.13% 65,376 Kenvue Inc. 2,300,000 3/22/2028 4.010% 3 242,682 4.12% 78,729 Wal-Mart Stores Inc 1,220,000 4/15/2028 3.770% 3 126,476 3.95% 40,002 Apple Inc 5,200,000 5/10/2028 3.740% 3 550,302 3.93% 169,625 Morgan Stanley 1,360,000 5/26/2028 4.550% 3 204,875 5.50% 62,139 Morgan Stanley 2,640,000 5/26/2028 4.550% 3 393,711 5.45% 119,414 Deere & Company 1,165,000 7/14/2028 3.940% 3 166,714 4.98% 48,201 Deere & Company 495,000 7/14/2028 3.940% 3 65,975 4.64% 19,075 Deere & Company 895,000 7/14/2028 3.940% 3 121,524 4.73% 35,135 Paccar Financial Corp 1,130,000 8/10/2028 3.900% 3 169,529 5.09% 47,784 National Rural Utilities Co Finance Corp 1,550,000 8/25/2028 4.030% 3 193,950 4.19% 53,915 Toyota Motor Corp 2,800,000 9/11/2028 4.000% 3 449,230 5.29% 122,960 Citigroup Inc 5,650,000 9/29/2028 4.130% 3 1,010,557 5.80% 272,177 Bank Of America Co 2,060,000 1/24/2029 4.480% 3 326,397 4.66% 79,628 State Street Corporation 1,900,000 2/20/2029 4.440% 3 299,241 4.53% 71,450 Blackrock Inc. 365,000 3/14/2029 3.950% 4 61,206 4.74% 14,365 Adobe 1,580,000 4/4/2029 3.970% 4 274,534 4.83% 63,402
Adobe 1,295,000 4/4/2029 3.970% 4 222,034 4.77% 51,278
The Bank Of New York Mellon Corporation 2,700,000 4/20/2029 4.450% 4 436,913 4.45% 99,687 Pepsico Inc 1,935,000 7/17/2029 3.970% 4 340,423 4.53% 72,845 Eli Lilly & Co 660,000 8/14/2029 3.960% 4 110,944 4.25% 23,280 Eli Lilly & Co 2,290,000 8/14/2029 3.960% 4 377,541 4.17% 79,221 Pepsico Inc 730,000 2/7/2030 4.020% 4 150,364 4.64% 28,106 Wal-Mart Stores Inc 1,140,000 4/28/2030 3.990% 5 233,170 4.39% 41,535 Wal-Mart Stores Inc 3,500,000 4/28/2030 3.990% 5 676,660 4.15% 120,534 Apple Inc 1,834,000 5/11/2030 3.970% 5 360,328 4.18% 63,699 Apple Inc 4,890,000 5/11/2030 3.970% 5 961,250 4.19% 169,929 Asset-Backed Securities
Citigroup Inc 835,000 12/8/2027 4.290% 2 99,254 5.23% 36,277 Kubota Credit Owners Trust 890,000 1/18/2028 4.250% 2 112,142 5.29% 39,056 Bank of America Auto Trust 977,474 2/15/2028 4.370% 2 133,012 5.53% 44,881 Honda Auto Receivables 1,653,061 2/18/2028 4.330% 2 220,971 5.42% 74,311 Toyota Motor Corp 587,910 4/17/2028 4.290% 3 79,872 5.17% 25,210 USAA Owners Trust 1,948,946 5/15/2028 4.440% 3 294,595 5.58% 90,346 Bank of America Auto Trust 2,578,059 6/15/2028 4.360% 3 413,158 5.74% 122,853 Fifth Third Auto Trust 1,950,364 8/15/2028 4.340% 3 319,214 5.53% 89,557 Toyota Motor Corp 765,000 8/15/2028 4.290% 3 125,458 5.54% 35,198 American Express Co 3,090,000 9/15/2028 4.080% 3 491,999 5.23% 134,182 Chase Issurance 3,020,000 9/15/2028 4.080% 3 474,906 5.17% 129,520 Hyundai Auto Receivables 1,130,000 10/16/2028 4.310% 3 195,973 5.54% 51,996 Bank Of America Co 1,365,000 11/15/2028 4.080% 3 218,403 4.98% 56,464 Gm Financial Securitized Term 365,000 12/18/2028 4.260% 3 58,497 4.85% 14,709 Chase Issurance 3,390,000 1/15/2029 4.050% 3 527,167 4.60% 129,547 Kubota Credit Owners Trust 1,550,000 6/15/2029 4.040% 4 274,521 4.67% 60,101 Hyundai Auto Receivables 2,525,000 10/15/2029 3.980% 4 450,432 4.32% 90,625 Hyundai Auto Receivables 960,000 12/17/2029 3.910% 4 180,010 4.36% 34,763 Honda Auto Receivables 2,355,000 2/21/2030 3.970% 4 426,226 4.04% 78,989 Toyota Motor Corp 1,635,000 3/15/2030 3.910% 5 305,248 4.11% 55,818 Gm Financial Securitized Term 680,000 4/16/2030 3.930% 5 134,780 4.28% 24,179 Bank Of America Co 1,830,000 5/15/2030 3.900% 5 371,243 4.31% 65,475 Citigroup Inc 3,990,000 6/21/2030 3.920% 5 826,136 4.31% 142,632 Chase Auto Owner Trust 1,135,000 6/25/2030 4.000% 5 234,773 4.29% 40,441 American Express Co 2,265,000 7/15/2030 3.890% 5 475,054 4.30% 80,911 Chase Issurance 3,190,000 7/15/2030 3.900% 5 646,858 4.16% 110,173 Overnight Investments 60,188,576 Varies Varies 3.46% 1,727,308 Totals (Main Portfolio) 511,486,245 52,843,947 4.06% 17,221,773 Notes:

1. Earnings projections are based on stated par value, future market expectations and current investment positions.

2. Earnings on overnight investments are based on the investment balances and the Fed Funds Futures rates.

3. Callable securities priced above par are considered to be called on their next call date. #11..

Attachment 5
Issue Name / Type Trustee Bank Investment Total Amount
Instl Res Tre and Agny Cash Adv6541 $275,372.78
Financial Guaranty Insurance Pol $1.00
CAMP $2,239,016.34
Total $2,514,390.12
Instl Res Tre and Agny Cash Adv6541 $3,551,315.65
Cash $1.00
CAMP $5,539,046.40
Total $9,090,363.05
2018 Wastewater Refunding Bank of New York Fidelity Inv MM Trsy Only $197.24 Fairview Village Refunding US Bank First American Treasury Obligation Fund $456,424.28 Blackrock Federal Fund Instl 30 $1,611,547.27
CAMP $3,171,272.24
Total $4,782,819.51
Other Post Employment Benefits Section 115
Trust PARS HighMark Plus Moderate $1,991,893.20
Pension Section 115 Trust PARS HighMark Plus Moderately Conservative $3,202,151.99 Athens Administrators (New Third Party
Administrator - Worker's Compensation) Wells Fargo Bank $541,458.29 George Hills Company - General Liability Claims
Administration Services California Bank & Trust $58,353.60 Kemper Sports Management Inc. BMO Harris Bank Business Money Market $111,579.31 Stanislaus Community Foundation Modesto Commerce Bank Charles Schwab $856,850.11 Village One #2 Refunding Bank of New York
Cash with Fiscal Agent Investments
As of August 31, 2025
2008 Water Refunding COP Bank of New York
2008 Lease Revenue Bonds Bank of New York
#11..
- 465 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

November 4, 2025
Date: October 21, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: External Auditing Services and Preparation of Financial Statement Agreement CONTACT: Maria Garnica, Accounting Manager (209) 577-5249, [email protected]
DESCRIPTION:

Consider approving an Agreement for the furnishing of External Auditing Services and Preparation of Financial Statements to Vasquez and Company LLP, Glendale, CA, for a total amount not to exceed $972,800 over five (5) years. (Funding Source: Various Funds) STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto 2025-2026 Strategic Plan focus of Governance and Service Delivery under Goal H: Achieve Long-Term Financial Sustainability.

BACKGROUND:

Under Section 1306 of the Modesto City Charter requires the Council to employ independent auditors to perform an annual financial audit of the City to examine the financial records managed by City employees.

The City requests an external auditor to express an opinion on the fair presentation of its basic financial statements and schedule of expenditures from federal awards in conformity with generally accepted accounting principles, the provisions of the Federal Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The auditor is required to express an opinion on the compliance for each major federal program as part of the single audit. The auditor will report any identified material weaknesses or significant deficiencies in internal control.

The City is the financial administrator for five (5) joint power agencies/programs audits and thirteen (13) Community Facilities Districts (CFDs) and will require the financial statement compilation and express an opinion on the financial statements and programs for these funds. #12..
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The five (5) joint power agencies and programs audits include the following:
1) Tuolumne River Regional Part (TRRP)
2) Ceres-Modesto Industrial Fire Protection JPA
3) Measure H – Local District Tax
4) Local Transportation Funds (LTF) – Streets and Roads and Non-motorized funds under Transportation Development Act (TDA)
5) Abandoned Vehicle Abatement (AVA)
In addition, the City is required to file an Annual State Controllers Financial Transaction Report to the State of California to provide fiscal year financial data and statistical information. This report is prepared by this audit firm as part of this agreement and reviewed by City Staff.

On October 25, 2022, under Resolution 2022-425, Council approved an agreement for the furnishing of external auditing services to Vasquez and Company LLP, Glendale, CA, for a three (3) year agreement with two (2) one-year extension options, for an estimated annual cost of $142,228, and over five (5) years of $715,000.

On April 27, 2023, the City Manager approved the First Amendment to the Agreement to revise the original pricing schedule with no financial impact on the total agreed upon service fees. The original pricing schedule listed Measure L as one of the required audits, however, the financial audits for Measure L, a one-half cent tax increased in Stanislaus County for improvement on local streets and roads and to improve connectivity and reduce congestion, is the responsibility of the Stanislaus Council of Governance (StanCOG) as the Stanislaus County Transportation Authority. The First Amendment swapped the auditing services for the Measure L financial audit for Measure H, a one cent sales tax increase to fund the general City services, financial audit.

On June 13, 2024, the City Manager approved the Second Amendment to the Agreement to increase the scope of work of the auditing services to include two new financial audits for Organized Retail Theft Program (ORTP) and the California Violence and Intervention Program (CalVIP). The requirement for financial audits for these two programs was unknown when the original scope of work for financial services was prepared for the Request for Proposals. The financial impact resulting from these additional audits will increase the contract fees for years three (3) and four (4) by a combined total of $35,000. Anticipated savings from the agreement were projected to cover the additional costs for the new audits based on anticipated amounts captured for future Community Facilities Districts (CFD).

On April 15, 2025, the City Manager approved the Third Amendment to the Agreement to term the agreement once year three (3) of auditing services were completed and the total Agreement amount was adjusted to an amount not to exceed $460,640. The City did not exercise the two (2) one-year options due to a requested price increase by Vasquez and Company LLP. City staff determined a new Request for Proposal would be initiated to ensure their revised pricing was comparable with the competitive market for this service. Since the agreement will be ending after year three (3), the Organized Retail Theft Program (ORTP) grant will no longer be required since it will be part of the new Agreement.

On February 28, 2024, the City Manager approved an Agreement for Financial Preparation with Vasquez and Company LLP for a two (2) year agreement and two (2) one-year extension #12..
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options for a total amount not to exceed $50,800. The City will not exercise the last two (2) oneyear extension options to ensure both services align under one Agreement.

DISCUSSION:

On April 7, 2025, the City Manager authorized the Purchasing Manager to solicit the procurement for the furnishing of External Auditing Services and Preparation of Financial Statements. On May 6, 2025, the Purchasing Division issued Request for Proposals (RFP) - 00018 for the External Auditing Services on the City’s OpenGov public bidding website under various commodity codes.1 Prospective bidders were notified online which included 35 local vendors and via email of the bid opportunity. 33 companies downloaded the RFP document from OpenGov.

On June 24, 2025, proposals were formally opened in the City Clerk’s office and broadcast via Microsoft Teams Livestream. Six (6) chose to respond, one (1) was deemed unresponsive, and there were no local firms.

An evaluation committee comprised of five (5) City staff members which included the Director of Finance, Accounting Manager, Senior Financial Analyst, Financial Analyst III, and Infrastructure Financing Program Supervisor were selected to evaluate the proposals. The evaluation criteria was based on client references, technical proposal, mandatory audit requirements, expertise, audit approach and cost.

Based on being ranked highest in total evaluation criteria, the evaluation committee recommends the award of proposal for the furnishing of External Auditing Services and Preparation of Financial Statements to Vasquez and Company LLP, Glendale, CA based on their expertise, positive client references, and an audit approach which aligns with the government auditing standards.

Modesto Municipal Section 8-3.203 requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. Based on the responsive and responsible highest score proposer offering the furnishing of External Auditing Services and Preparation of Financial Statements which conforms to the Modesto Municipal Code, 8-3.203 City staff recommends the Award of Proposal for furnishing of External Auditing Services and Preparation of Financial Statements to Vasquez and Company LLP, Glendale, CA.

FISCAL IMPACT:

Sufficient funds are budgeted in Fiscal Year 2025-26 and will be budgeted for future years through the term of this Agreement to cover the cost for this service. Below is the spending history with the current agreement with Vasquez and Company. 1 91800 Consulting Services, 91804 Accounting/Auditing/Budget Consulting, 91806 Administrative Consulting, 91849 Finance/Economics Consulting, 91858 Governmental Consulting, 94600 Financial Services, 94620 Auditing, 96100 Miscellaneous Services, 96200 Miscellaneous Services
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Fiscal Year Audit
Period
Audit
Services
Financial
Preparation Total
FY 2022-23 $ 139,740 $ - $ 139,740
FY 2023-24 $ 154,740 $ 17,500 $ 172,240
FY 2024-25 $ 168,900 $ 10,800 $ 179,700
Total $ 463,380 $ 28,300 $ 491,680
Below is the breakdown of the Proposed new Agreement and Funding Source funding the five (5) year Agreement.

Fiscal Year Audit
Period
Audit
Services
Financial
Preparation Total
FY 2025-26 $ 175,400 $ 11,100 $ 186,500
FY 2026-27 $ 193,500 $ 11,400 $ 204,900
FY 2027-28 $ 177,600 $ 11,700 $ 189,300
FY 2028-29 $ 181,800 $ 12,000 $ 193,800
FY 2029-30 $ 186,000 $ 12,300 $ 198,300
Total $ 914,300 $ 58,500 $ 972,800
Fund Name FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Total General Fund $ 68,009 $ 68,057 $ 69,643 $ 71,296 $ 72,948 $ 349,953 ORTP Grant $ - $ 20,000 $ - $ - $ - $ 20,000
Community Facility Districts $ 35,000 $ 33,300 $ 34,000 $ 34,700 $ 35,400 $ 172,400 Tuolumne River Regional Park $ 5,300 $ 5,300 $ 5,500 $ 5,700 $ 5,900 $ 27,700 Ceres-Modesto Industrial Fire $ 5,300 $ 5,300 $ 5,500 $ 5,700 $ 5,900 $ 27,700 Transportation Development Act $ 5,300 $ 5,300 $ 5,500 $ 5,700 $ 5,900 $ 27,700 Measure H $ 7,000 $ 7,000 $ 7,200 $ 7,400 $ 7,600 $ 36,200 Housing Urban Development Admin. $ 30,109 $ 30,132 $ 30,779 $ 31,458 $ 32,138 $ 154,616 Water $ 15,110 $ 15,124 $ 15,455 $ 15,786 $ 16,117 $ 77,592 Sewer $ 9,282 $ 9,291 $ 9,494 $ 9,697 $ 9,901 $ 47,665
Storm Drain $ 6,090 $ 6,096 $ 6,229 $ 6,363 $ 6,496 $ 31,274 Total $ 186,500 $ 204,900 $ 189,300 $ 193,800 $ 198,300 $ 972,800 COMMITTEE RECOMMENDATION:

This item was presented to the Audit Committee on October 20, 2025, and the Committee recommended forwarding the item to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Award of Proposal and Agreement for the furnishing of External Auditing Services and Preparation of Financial Statements to Vasquez and Company LLP, Glendale, CA, for a three (3) year Agreement with two (2) one-year extension options, for an estimated annual amount of $194,560, and a total amount not to exceed $972,800 over five (5) years; and authorizing the City Manager or his designee, to execute the Agreement. #12..
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Approved by:

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

1. Resolution

2. Agreement

3. Exhibit A – Request for Proposal Auditing Services

4. Exhibit B – Vasquez Proposal

5. Financial Interest Disclosure

6. CA Levine Act Disclosure
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11/04/2025/FIN/MGarnica/Item X 1 2025-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2025-

RESOLUTION APPROVING THE AWARD OF PROPOSAL AND

AGREEMENT FOR THE FURNISHING OF EXTERNAL AUDITING SERVICES

AND PREPARATION OF FINANCIAL STATEMENTS TO VASQUEZ AND
COMPANY LLP, GLENDALE, CA, FOR A THREE (3) YEAR AGREEMENT WITH TWO (2) ONE-YEAR EXTENSION OPTIONS, FOR AN ESTIMATED ANNUAL AMOUNT OF $194,560, AND A TOTAL AMOUNT NOT TO EXCEED $972,800 OVER FIVE (5) YEARS; AND AUTHORIZING THE CITY MANAGER,

OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT
WHEREAS, under Section 1306 of the Modesto City Charter requires the Council to employ independent auditors to perform an annual financial audit of the City to examine the financial records managed by City employees; and WHEREAS, the City requests an external auditor to express an opinion on the fair presentation of its basic financial statements and schedule of expenditures from federal awards in conformity with generally accepted accounting principles, the provisions of the Federal Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and WHEREAS, the auditor is required to express an opinion on the compliance for each major federal program as part of the single audit; and WHEREAS, the auditor will report any identified material weaknesses or significant deficiencies in internal control; and
WHEREAS, the City is the financial administrator for five (5) joint power agencies/programs audits and thirteen (13) Community Facilities Districts (CFDs) and will require the financial statement compilation and express an opinion on the financial statements and programs for these funds; and
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WHEREAS, on April 7, 2025, the City Manager authorized the Purchasing Manager to solicit the procurement for the furnishing of External Auditing Services and Preparation of Financial Statements; and
WHEREAS, on May 6, 2025, the Purchasing Division issued Request for Proposals (RFP)-00018 for the External Auditing Services on the City’s OpenGov public bidding website under various commodity codes; and
WHEREAS, prospective bidders were notified online which included 35 local vendors and via email of the bid opportunity; and
WHEREAS, 33 companies downloaded the RFP document from OpenGov; and WHEREAS, on June 24, 2025, proposals were formally opened in the City Clerk’s office and broadcast via Microsoft Teams Livestream; and WHERES, six (6) chose to respond, one (1) was deemed unresponsive, and there were no local firms; and
WHEREAS, an evaluation committee comprised of five (5) City staff members which included the Director of Finance, Accounting Manager, Senior Financial Analyst, Financial Analyst III, and Infrastructure Financing Program Supervisor who evaluated the proposals was chosen to observe the RFP process; and WHEREAS, the evaluation was based on client references, technical proposal, mandatory audit requirements, expertise, audit approach and cost; and WHEREAS, based on being ranked highest in total evaluation criteria, the evaluation committee recommends the award of proposal for the furnishing of External Auditing Services and Preparation of Financial Statements to Vasquez and Company #12..
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LLP, Glendale, CA based on their expertise, positive client references, and an audit approach which aligns with the government auditing standards; and WHEREAS, Modesto Municipal Section 8-3.203 requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid; and
WHREAS, based on the responsive and responsible highest score proposer offering the furnishing of External Auditing Services and Preparation of Financial Statements which conforms to the Modesto Municipal Code, 8-3.203 and City staff recommends the Award of Proposal for furnishing of External Auditing Services and Preparation of Financial Statements to Vasquez and Company LLP, Glendale, CA.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Award of Proposal and Agreement for the furnishing of External Auditing Services and Preparation of Financial Statements to Vasquez and Company LLP, Glendale, CA, for a three (3) year Agreement with two (2) one-year extension options, for an estimated annual amount of $194,560, and a total amount not to exceed $972,800 over five (5) years.

BE IT FURTHER RESOLVED that the City Manager or his designee, is authorized to execute the agreement, in a form approved by the City Attorney. #12..
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11/04/2025/FIN/MGarnica/Item X 4 2025-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 4th day of November, 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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REQUEST FOR PROPOSALS # RFP-00018

EXTERNAL AUDITING SERVICES

STANDARD AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT made and entered into in the City of Modesto, State of California, this ______ day of _________________, 2025, (“Effective Date”) by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as "CITY", and VASQUEZ & COMPANY LP a California corporation, hereinafter referred to as "CONSULTANT".

This AGREEMENT is made with regard to the following recitals:
a. The CITY has determined that auditing services are needed to support the City of Modesto. b. CONSULTANT represents that it is qualified, willing, and able to provide the services to prepare said document(s).

NOW, THEREFORE, in consideration of this AGREEMENT, and the mutual promises, covenants, and stipulations hereinafter contained, the parties agree as follows:

1. SCOPE OF SERVICES
CONSULTANT shall undertake and complete the preparation of the scope of work as set forth and described in the documents attached hereto and referred to as Exhibit (A) or "Project". The CONSULTANT shall perform the services as described in Exhibit (A) in a manner compatible with the standards of its profession and shall produce a fully complete project that is acceptable to CITY.

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

Year 1: March 1, 2026, through February 28, 2027
Year 2: March 1, 2027, through February 29, 2028
Year 3: March 1, 2028, through February 28, 2029
Year 4: March 1, 2029, through February 28, 2030
Year 5: March 1, 2030, through February 28, 2031
Pricing shall remain firm for the first three (3) years of the AGREEMENT.

Price increases for subsequent AGREEMENT years, four and, five shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by CONSULTANT in writing, ninety (90) days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year. #12..
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EXTERNAL AUDITING SERVICES

3. COMPENSATION
CONSULTANT agrees to accept an estimated annual amount of $194,560 and a sum not to exceed $972,800 (maximum compensation) as full remuneration for performing all services and furnishing all staffing and materials for CITY in accordance with Exhibit (A).

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

CITY shall pay CONSULTANT on a time and materials basis for CONSULTANT’s actual costs for all work called for in Exhibit (A) to this AGREEMENT. All work to be performed under this AGREEMENT shall be billed at the hourly rates set forth in Exhibit (B) attached hereto. CONSULTANT shall submit monthly invoices to CITY which include detailed tasks, hours worked, and billable rates for all work completed, and detailed receipts for any reimbursable expenses paid by CONSULTANT and identified in Exhibit (B) or approved by the CITY in writing.

CITY shall pay CONSULTANT net 45 Days via manual check”.

4. OBLIGATIONS OF CONSULTANT
Throughout the term of this AGREEMENT, CONSULTANT shall possess, or secure all licenses, permits, qualifications and approvals legally required to conduct business. CONSULTANT warrants that it has all of the necessary professional capabilities and experience, as well as all tools, instrumentalities, facilities and other resources necessary to provide the CITY with the services contemplated by this AGREEMENT.

CONSULTANT further warrants that it will follow the best current, generally accepted and professional practices to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding this project.

5. PERFORMANCE BY KEY EMPLOYEE
CONSULTANT has represented to CITY that CRISTY CANIEDA, PARTNER will be the person primarily responsible for the performance of the services referred to in this AGREEMENT. CITY has entered into this AGREEMENT in reliance on that representation by CONSULTANT. CONSULTANT therefore agrees that SEVEN percent (7%) or more of the time devoted to the project that is the subject of this AGREEMENT will be that of the above-named person.

6. OWNERSHIP OF DOCUMENTS/TITLE TO DATA
Ownership of Documents
All reports, drawings, designs, graphics, working papers and other incidental work or materials furnished hereunder shall become and remain the property of the CITY, and may be used by CITY as it may require without any additional cost to CITY. No reports shall be used by the CONSULTANT for purposes other than this AGREEMENT without the express prior written consent of CITY.

Title to Data
If, as a part of the AGREEMENT, CONSULTANT is required to produce data such as, but not limited to, drawings, plans, specifications, calculations, models, flow diagrams, visual aids and other related materials, the #12..
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originals of all such data generated under this AGREEMENT will be delivered to CITY upon the completion or termination of services under the AGREEMENT. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this AGREEMENT are prepared specifically for the CITY and are not necessarily suitable for any future or other use.

All materials, documents, data or information obtained from the CITY data files or any CITY medium furnished to CONSULTANT in the performance of this AGREEMENT will at all times remain the property of the CITY. Such data or information may not be used or copied for direct or indirect use by CONSULTANT after termination of this AGREEMENT without written consent of the CITY.

The deliverables or audit working papers prepared in accordance with Government Auditing Standards shall not be subject to the provisions of this section where the section requirements are inconsistent with such Auditing Standards. In such case, the Auditing Standards shall prevail.

7. NEWS AND INFORMATION RELEASE
CONSULTANT agrees that it will not issue any news releases in connection with either the award of this AGREEMENT, or any subsequent amendment of or efforts under this AGREEMENT, without first obtaining review and approval of said news releases from City through the CITY Manager.

8. CONFLICT OF INTEREST
CONSULTANT warrants that it presently has no interest and shall not acquire any interest, direct or indirect, which would create a “conflict of interest”, as that term is defined in the Political Reform Act (Gov. Code § 81000 et seq), for the CONSULTANT in the performance of this AGREEMENT. CONSULTANT warrants that, in performance of this AGREEMENT, CONSULTANT shall not employ any person having any such interest. CONSULTANT understands that, if this AGREEMENT is made in violation of Government Code § 1090 et seq., the entire AGREEMENT is void and CONSULTANT will not be entitled to any compensation for services performed. CONSULTANT agrees to file a Statement of Economic Interests with the City Clerk at the start and end of this AGREEMENT if so, required at the option of CITY.

9. AMENDMENTS
This AGREEMENT, including the Exhibits attached hereto, may be amended only by a writing signed by both Parties. CITY will not be responsible to pay any charges CONSULTANT may incur in performing services not identified in Exhibit (A) unless first authorized by the CITY in writing.

10. INDEPENDENT CONSULTANT
All acts of CONSULTANT, its agents, officers, and employees and all others acting on behalf of CONSULTANT relating to the performance of this AGREEMENT, shall be performed as independent contractors and not as agents, officers, or employees of CITY. Except as CITY may specify in writing, CONSULTANT has no authority to bind or incur any obligation on behalf of CITY. CONSULTANT has no authority or responsibility to exercise any rights or power vested in the CITY. It is understood by both CONSULTANT and CITY that this AGREEMENT shall not under any circumstances be construed or considered to create an employer-employee relationship or a joint venture. CONSULTANT, its agents, officers #12..
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and employees are and, at all times during the terms of this AGREEMENT, shall represent and conduct themselves as independent contractors and not as employees of CITY.

CONSULTANT shall determine and control the method, details and means of performing the work and services to be provided by CONSULTANT under this AGREEMENT. CONSULTANT shall be responsible to CITY only for the requirements and results specified in this AGREEMENT, and, except as expressly provided in this AGREEMENT, shall not be subjected to CITY's control with respect to the physical action or activities of the CONSULTANT in fulfillment of this AGREEMENT. CONSULTANT is permitted to provide services to others during the same period service is provided to CITY under this AGREEMENT. If necessary, CONSULTANT has the responsibility for employing other persons or firms to assist CONSULTANT in fulfilling the terms and obligations under this AGREEMENT.

If in the performance of this AGREEMENT any third persons are employed by CONSULTANT, such persons shall be entirely and exclusively under the direction, supervision, and control of CONSULTANT. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by the CONSULTANT.

It is understood and agreed that as an independent contractor and not an employee of CITY neither the CONSULTANT or CONSULTANT's assigned personnel shall have any entitlement as a CITY employee, right to act on behalf of the CITY in any capacity whatsoever as an agent, or to bind the CITY to any obligation whatsoever. It is further understood and agreed that CONSULTANT must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of CONSULTANT's personnel. As an independent CONSULTANT, CONSULTANT hereby indemnifies and hold CITY harmless from any and all claims that may be made against CITY based upon any contention by any third party that an employer-employee relationship exists by reason of this AGREEMENT.

11. ASSIGNMENT
Neither this AGREEMENT nor any portion thereof shall be subcontracted or assigned, without the express prior written consent of the CITY in each and every instance.

12. PATENT/COPYRIGHT MATERIALS
Unless otherwise expressly provided in the AGREEMENT, CONSULTANT shall be solely responsible for obtaining the right to use any patented or copyrighted materials in the performance of this AGREEMENT. CONSULTANT shall furnish a warranty of such right to use to CITY at the request of CITY.

13. NOTICES
Notice required by this AGREEMENT shall be given in writing and shall be deemed given and effective upon delivery provided that such are delivered in accordance with this Section. Notices shall be delivered either by:
(a) personal delivery; (b) overnight courier service which obtains confirmation of delivery; or (c) certified mail, return receipt requested, if delivery is confirmed by a return receipt; or (d) by electronic transmission subject to reasonable proof that the notice was both transmitted and received. Each such notice shall be sent to the parties at the address respectively set forth below or to such other address as a party may designate by written notice given in accordance with this Section:
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REQUEST FOR PROPOSALS # RFP-00018

EXTERNAL AUDITING SERVICES
FOR CONSULTANT: Name: Vasquez and Company, LLC
Address: 655 North Central Ave., Suite
1550, Glendale, CA 91203
Attention: Cristy Canieda
Phone: (213) 873-1720
Email: [email protected]
CITY: Name:

Address:

Phone:

Email:

City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
(209) 577-5420
[email protected]

14. INSURANCE REQUIREMENTS
During the term of this AGREEMENT, CONSULTANT shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit (C) to this AGREEMENT and shall otherwise comply with the other provisions of Exhibit (C) to this AGREEMENT. CONSULTANT is responsible for uploading updated insurance documentation to the City's "PINS Advantage" program.

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

Termination by CITY for Convenience
The City may also terminate the CONSULTANT's performance under the AGREEMENT, either in whole or in part, at its own discretion, or when conditions encountered during the services make it impossible or impracticable to proceed, or when the City is prevented from proceeding with the AGREEMENT by act of God, by law, or by official action of a public authority, or upon a determination by the City that such termination is in the best interest and convenience of the City, or whenever the City is prohibited from completing the services for any reason. The City shall provide no less that ten (10) calendar days written notice of its intent to terminate the AGREEMENT for convenience and shall endeavor to provide the CONSULTANT with consultation with the City prior to termination.
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REQUEST FOR PROPOSALS # RFP-00018

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

CITY will pay CONSULTANT an amount based on the percentage of satisfactory work completed in accordance with the notice or termination. The final payment to the CONSULTANT after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
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EXTERNAL AUDITING SERVICES
j. The cost of settling and paying valid claims arising out of the termination of the work such as subconsultant AGREEMENTs or contracts for materials;
k. The AGREEMENT price allocable to the portion of the work properly performed, or goods supplied to the work site by the CONSULTANT as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONSULTANT.

Authorization to Terminate Agreement
Termination of the AGREEMENT may be invoked by the City Manager, or his/her designee, subject to the right of the CONSULTANT to appeal the City Manager, or his/her designee's, decision to the City Council.

The CONSULTANT shall appeal by notifying the City Clerk in writing within ten (10) calendar days of receipt of written notification from City of termination of the AGREEMENT. In the event that termination of this AGREEMENT is upheld by the City Council, any cessation of payment of delay claims, extended claims, Eichleay claims, or any other claims for delay shall be retroactive to the date of termination selected by the City Manager, or his/her designee.

16. INDEMNITY
If CONSULTANT is Design Professional performing design professional services, as defined in California Civil Code section 2782.8, CONSULTANT agrees to indemnify, defend, and hold harmless the CITY, its agents, officers, officials, employees and volunteers, from and against any and all claims, demands, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT and its employees, officials, officers, agents or agents in the performance of services under this AGREEMENT, but this indemnity does not apply to liability for damages arising from the sole negligence, or willful misconduct of the CITY. The CITY agrees that in no event shall the cost to defend charged to the CONSULTANT exceed that CONSULTANT's proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the CONSULTANT shall meet and confer with other parties regarding unpaid defense costs. This duty to indemnify shall not be waived or modified by contractual AGREEMENT or acts of the parties.

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

In the event that CONSULTANT or any employee, agent, or subconsultant of CONSULTANT providing services under this AGREEMENT is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of CITY, CONSULTANT shall indemnify, defend, and hold harmless CITY for the payment of any employee and/or employer contributions for PERS benefits on behalf of CONSULTANT or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of CITY.

17. DISPUTE RESOLUTION
Venue for all claims, controversies, or disputes arising out of, or relating to the formation of this AGREEMENT, or the breach, termination execution, enforcement, interpretation, or validity of this AGREEMENT, including the determination of the scope or applicability of this AGREEMENT provision shall be in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California.

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

19. ENTIRE AGREEMENT
This AGREEMENT and its exhibits contain the entire understanding between CONSULTANT and CITY. All previous proposals, offers and communications related to this AGREEMENT, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this AGREEMENT. No future waiver of or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by all the parties.

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

21. WAIVER
The waiver by any party to this AGREEMENT of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.
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22. AUDIT
The CITY's duly authorized representative shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify CONSULTANT's charges to CITY under this AGREEMENT.

CONSULTANT agrees to retain reports, records, documents, and files related to charges under this AGREEMENT for a period of four (4) years following the date of final payment for CONSULTANT services. CITY's representative shall have the right to reproduce any of the aforesaid documents.

23. GOVERNING LAW
This AGREEMENT shall be governed according to the laws of the State of California.

24. HEADINGS NOT CONTROLLING
Headings used in the AGREEMENT are for reference purposes only and shall not be considered in construing this AGREEMENT.

25. COMPLIANCE WITH LAWS
CONSULTANT shall insure compliance with all safety and hourly requirements for employees, in accordance with federal, state, and county safety and health regulations and laws. CONSULTANT shall fully comply with all applicable federal, state, and local laws, ordinances, regulations and permits.

26. CITY BUSINESS LICENSE
CONSULTANT will have a City of Modesto business license. #12..
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IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attestation by its City Clerk under authority of Resolution No. 2025- _________, adopted by the Council of the City of Modesto on the _______ day of ____________ , 2025, and Vasquez and Company LLP has caused this AGREEMENT to be duly executed as of the Effective Date. #12..
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EXHIBIT C: INSURANCE REQUIREMENTS FOR SERVICES
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees or subcontractors.

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

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

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
(Not required if consultant provides written verification, it has no employees)

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Modesto requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Modesto.

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

This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and noncontributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss #12..
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covered hereunder, shall be called upon to contribute to a loss until the Consultant's primary and excess liability policies are exhausted.

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

Additional Insured Status
The City of Modesto, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations.

General liability coverage can be provided in the form of an endorsement to the Consultant's insurance with coverage equal to ISO form CG 2010. If Completed Operations endorsement is required, a separate endorsement equal to ISO form CG 2037 is required.

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

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

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

Self-Insured Retentions
All Self-insured retentions must be disclosed to Risk Management for approval and shall not reduce the limits of liability. The City of Modesto may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Any and all deductibles and SIRs shall be the sole responsibility of Consultant or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties.

Acceptability of Insurers
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Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Modesto.

Claims Made Policies (applicable to Professional Liability only) If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

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

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Consultant shall furnish the City of Modesto with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements are to be received and approved by the City of Modesto Risk Services before work commences.

However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant's obligation to provide them. The City of Modesto reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to obtain a full certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.

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

Special Risks or Circumstances
City of Modesto reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. #12..
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Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Modesto
Attn: Risk Management
1010 10th Street
Modesto, CA 95354
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1 REQUEST FOR PROPOSALS (“RFP”) NO. RFP-00018
FOR

EXTERNAL AUDITING SERVICES
PROPOSALS DUE: June 24, 2025 at 11:00 am
CITY OF MODESTO CONTACT: Armando Fabro, Assistant Buyer E-MAIL ADDRESS: [email protected]
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2 Table Of Contents

NOTICE TO PROPOSERS

CALENDAR OF EVENTS

VIRTUAL BID OPENING

GENERAL PROPOSAL REQUIREMENTS

AWARD OF AGREEMENT

PROPOSAL

TECHNICAL SPECIFICATIONS AND REQUIREMENTS

SAMPLE STANDARD AGREEMENT FOR CONSULTANT SERVICES
EXHIBIT C: INSURANCE REQUIREMENTS FOR SERVICES
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3 NOTICE TO PROPOSERS
NOTICE IS HEREBY GIVEN that the City of Modesto, County of Stanislaus, State of California (“City”), will receive proposals (each, a "Proposal") through its OpenGov Procurement portal from qualified Proposers (each, a “Proposer”) for the furnishing of External Auditing Services services (the “Services”) for the City of Modesto, Finance Department, Accounting Division. Proposals are due prior to 11:00 am on Tuesday, June 24, 2025.

Any equipment, materials, and supplies shall be furnished F.O.B. City of Modesto (delivery charges borne by Proposer, included in the Services pricing herein, and not separately charged to the City). Proposers are highly recommended to download all RFP documents from the City’s Purchasing Division website at https://procurement.opengov.com/portal/modestogov/projects/157831; RFP documents shall include all specifications necessary for Proposers to submit a responsive Proposal.

Each Proposal shall be submitted electronically through the City's OpenGov Procurement portal prior to 11:00 am on Tuesday, June 24, 2025 at which time Proposals will be opened and recorded. All Proposals shall be available for review following City Council award approval at the Purchasing Division, 1010 Tenth Street, 5th Floor, Suite 5300, Modesto, CA 95354.

Proposals will be received only in the manner shown above, and prior to the time indicated. Any Proposal received at or after said time and/or date, or in a manner other than the manner stated above cannot be considered and will be ignored.

The City of Modesto assumes no responsibility for delay in the upload or submittal of a Proposal. Proposals received in any other format will not be accepted.

The City reserves the right to reject any or all Proposals or to waive any informalities or minor irregularities in a Proposal.

No Proposer may withdraw its Proposal for a period of one hundred twenty (120) days after the date set for the opening thereof.
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4 CALENDAR OF EVENTS
RFP Issued: May 6, 2025
Questions Due via City's OpenGov
Procurement portal:

May 20, 2025, 5:00pm
Addendum Issued (if required): June 9, 2025
Proposal Due Date & Time: June 24, 2025, 11:00am
Approximate Contract Award Date: August 2025

CITY CONTACT
All questions regarding these specifications, terms, and conditions shall be submitted through the Question & Answer area of the City's OpenGov Procurement portal prior to 5:00 pm on Tuesday, May 20, 2025.

The City will respond to questions through the OpenGov portal where answers can be found in the Question & Answer tab; however, if a response to a question elicits a change to the bid documents, an addendum will be posted through the OpenGov portal under the Addenda & Notices tab. All contact between Proposer and the City regarding the Proposal process shall be through the City's OpenGov Procurement portal. Attempts by the Proposer to contact City personnel regarding this RFP and associated process may result in disqualification of the Proposer. Notwithstanding the foregoing, information intentionally or un-intentionally provided by any person other than the City Contact may not be correct and will not be binding upon the City.

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

PRECEDENCE
Proposer agrees that any agreement resulting from City’s acceptance of its Proposal, together with the terms in any City agreement and associated specifications provided by the City to Proposer therewith, shall comprise the entire agreement between City and Proposer. Moreover, Proposer agrees that any additional or contrary terms contained in Proposer’s acknowledgement of, shall be null and void. #12..
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5 VIRTUAL BID OPENING
The City of Modesto will be broadcasting Proposal openings live electronically via Microsoft Teams at 11:00 am (Pacific Time) on Tuesday, June 24, 2025. The City Clerk Record of Proposal document should be available on the City's OpenGov Procurement portal by the end of the same day.

The public Proposal opening for this Request for Proposals will be available using the URL link provided below. By submitting your Proposal for the above-stated RFP you acknowledge, understand, and agree to this modified Proposal opening procedure.

URL: https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NTI0YzBiMDMtNDQ0Yi00YjNlLWIwZjYtYzg4ZDVjMDdkM2Mz%40thread.v2/0?co ntext=%7b%22Tid%22%3a%22125ccacf-fc61-463c-9976-
189f876ff90b%22%2c%22Oid%22%3a%229715c333-c997-4dd7-8984-12cd4deaa705%22%7d Call-In#: 1 469-998-7409
Conference ID: 961 656 049#
Should you have any questions regarding this, please do not hesitate to contact Armando Fabro. #12..
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6 GENERAL PROPOSAL REQUIREMENTS

PROPOSAL SUBMITTAL
Proposers shall submit proposals through the City's OpenGov Procurement portal. No hard copy proposals or proposals submitted in any other manner as that prescribed within this Request For Proposal will be accepted.

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

PROPOSER COSTS INCURRED IN RESPONDING TO RFP
All costs associated with the preparation and submission of a Proposal shall be borne by the Proposer.

ADDENDA
In order to obtain any addenda information, throughout the RFP period, Proposer is responsible for regularly checking this RFP on the City of Modesto’s OpenGov Procurement portal at https://procurement.opengov.com/portal/modestogov/projects/157831. Changes identified in any addenda issued will modify this RFP and specifications. The addenda will become a part of this RFP and Proposer’s resultant Proposal. Proposer shall individually acknowledgement every addendum as part of their proposal to indicate that the Proposer has confirmed that it has received all addenda issued for RFP, and has included costs for such in the Proposal submitted. Failure to acknowledge all issued addenda may cause Proposer’s Proposal to be considered nonresponsive.

PROPOSER EXCEPTIONS
All exceptions taken to this RFP and associated specifications shall be specifically and clearly identified on Exceptions, Clarifications and Amendments Form provided with this RFP. Failure to comply with this provision may deem the Proposal as non-responsive. Please review the Sample Agreement and make note on the Exceptions, Clarifications, and Amendments Form for any changes. Exceptions taken shall not affect the overall performance and quality of equipment, materials and/or services required by the City. The Purchasing Manager or designated agent shall make the final decision regarding the acceptability of equipment, materials and/or services with exceptions.

COMPLETE PROPOSAL DOCUMENT
The following City of Modesto forms provided with this RFP constitute the makeup of a complete Proposal document and shall be signed wherever indicated and be submitted to the City as required by this RFP.

Failure to furnish any of these documents or information required within such documents may result in disqualification of Proposer.
• Pricing Schedule
• Proposer Exceptions, Clarifications, Amendments (if applicable) #12..
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7 • Proposer Customer References
• Financial Interest Disclosure
• Proposer Company History Statement
• Proposer Financial Statements
• Addenda Acknowledgement
• Proposer Warranty Statements
• Proposer Experience and Certifications
• Subcontractor List (if applicable)
• California Levine Act Disclosure

CITY ACCEPTANCE/REJECTION OF IRREGULAR PROPOSALS
An agreement shall be awarded to the Proposer whose Proposal most closely satisfies the needs of the City and is deemed the most advantageous to the City. The City reserves the right to reject any or all Proposals or to waive any informalities or minor irregularities in a Proposal.

COMPLIANCE/NON-COMPLIANCE
If Proposer cannot comply with a specification requirement in this RFP, note such requirement(s) on the Exception, Clarifications, Amendments Form provided with this RFP. Please be sure to note the specification paragraph, your exception, and your recommendation for each individual exception. The Purchasing Manager will evaluate your recommendation. If after evaluation it is determined that the Proposer is not in compliance with the specification, the Proposal may be rejected.

PROPOSED PRICING FORMAT
• The cost of labor, equipment, fuel, licenses, bonds, permits, and insurance necessary to perform the required services shall be included in Proposal pricing, along with Proposer’s profit margin and any other cost factors.
• Unless otherwise stated, the Proposer agrees that, in the event of a price decline, the benefit of such lower pricing shall be extended to the City.
• The City of Modesto shall not pay mileage charges or travel time from the Contractor’s place of business to the job site, or from site to site, or for the Contractor’s travel time to pick up materials. • Proposer shall use the pricing schedule provided in this RFP to present Proposal pricing. No other form or format shall be accepted. Proposal must be submitted on the Pricing Schedule provided. No alterations may be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the Exception, Clarification, Amendments Form. #12..
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8 INDEMNITY
Proposer, if awarded an agreement, will be required to hold the city, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgements or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of Proposer, its agents, officers, employees, and volunteers relating to or during the performance of its obligations under this Proposal. Contractor’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this Proposal for Proposer to procure and maintain a policy of insurance. With reference to the foregoing, the parties agree that all risk of loss, including but not limited to damages, property losses and defense of thirdparty suits, arising out of or relation to the operation of city-owned vehicles by Contractor’s employees is apportioned to Contractor in accordance with the provisions contained in indemnity.

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

RFP TERMS
The City is soliciting Proposals from qualified firms (each a “Proposer”) to fulfill the City’s requirements per the specifications, terms and conditions contained in this Request for Proposals (“RFP”). Obligations assumed by such signature will include the following:

1. Preparation of Proposals:
a. All prices and notations made on any forms provided by the City must be clearly printed in ink or typewritten. No erasures permitted. Errors may be crossed out and corrections printed in ink or typewritten adjacent and must be initialed in ink by person signing the Proposal. #12..
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9 b. Quote price as specified in Proposal. No alterations or changes of any kind shall be permitted to the Proposal Form. Responses that do not comply shall be subject to rejection in total.

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

3. Award:
a. Unless otherwise specified by the Proposer or the RFP gives notice of an all-or-none award, the City may accept any item or group of items of any Proposal. b. Proposals are subject to acceptance by the City at any time within one hundred twenty (120) days of opening, unless otherwise specified in the RFP. A Proposer shall not change its Proposal within such time frame
c. A valid contract based on the sample agreement attached to the RFP and the Proposal shall be mailed, or otherwise furnished, to the successful Proposer within the time for acceptance specified, and such contract shall be a binding contract without further action by either party.

The contract shall be interpreted, construed and given effect in all respects according to the laws of the State of California.

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

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

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

Information about enrolling in MasterCard ePay program can be obtained from the City’s contact #12..
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11 listed on the Cover Page of this RFP.
b. Option B – Manual Check: On Net 45 Day timing, the City will mail a hardcopy check to Bidder. The payment will be deemed to have been made when the check envelope is mailed via US Postal Service First Class Mail. The timing of the mailing will be at the end of the Net 45 Day period. Additional time should be estimated by the Bidder for the check to be in transit, and to await deposit and clearance by Bidder staff.

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

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

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

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

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

Protest Procedures
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12 • Only a Proposer who has actually submitted a Proposal is eligible to submit a protest against the City’s Announced Decision.
• Subcontractors are not eligible to submit bid protests. • A Proposer may not rely on the bid protest submitted by another bidder, but must timely pursue its own protest.
• A written protest to an Announced Decision must be made to the City of Modesto's Director of Finance no later than ten days after the date of the Announced Decision. • The protest shall be delivered or sent by registered mail and received by the deadline, or protest will be automatically rejected. Protestors who choose to be represented by legal counsel are responsible for the associated expenses.
• The protest shall be accompanied by a certified or cashier's check in the amount of $300.00, (except for protests of Federally Funded agreements) made payable to the Clerk of the City of Modesto. Protests filed without the requisite fee will be rejected without any additional review. • The protest filed with the Director of Finance shall:

A. Include the name, address, email address and business telephone number of the protestor; B. Identify the under protest by name, Request for Proposal (RFP) or Request for Proposal (RFP) number, and Proposal/RFP date;
C. The bid protest must contain a complete statement of the basis for the protest and all supporting documentation. The protest must refer to the specific portion or portions of the Contract Documents upon which the protest is based;
D. Include all supporting documentation, if any. Documentation submitted after filing deadline will not be reviewed.
• Proposal Protests: A Proposer shall follow, in order, the following steps:

A. Protest to Director of Finance: Upon receipt of a complete and timely protest, the Director of Finance shall review all the submitted materials and shall create and retain a written record of the review. The Director of Finance shall respond at least generally to each material issue raised in the protest not later than ten (days after receipt of the protest. Notice of the Director of Finance's decision may be given by letter mailed through U.S. Postal Service.

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

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

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

Further protest appeals shall either be delivered to:

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

City Clerk’s Office
Attn: Deputy City Manager
PO Box 642
Modesto CA 95353
C. Appeal to City Council: Any protestor seeking to appeal to the decision of the Deputy City Manager may appeal in writing to the City Council by filing with the City Clerk a written notice of such appeal not later than fifteen days after the date of the Deputy City Manager's decision. The City Clerk will calendar the protest for Council hearing and give notice of the time and place of the #12..
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14 hearing as provided in Modesto Municipal Code Sections 1-4.01 through 1-4.05. The City Council’s decision on the appeal shall be final.

All protest appeals to the City Council shall either be delivered to:

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

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

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

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

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

The costs of the hearing officer and expenses of the protest shall be borne by the protestor. The sums deposited with the request for hearing shall be credited to the costs of the hearing officer and other #12..
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15 hearing expenses.

E. Mandatory Alternative Process for Protests of Procurements Obtained with Federal Funds: If the protested procurement involves federal funds, the Deputy City Manager, City Council, or hearing officer shall give notice, accompanying their respective decisions, to the protestor that he or she has the right to appeal to the appropriate federal agency, for which an agency name, contact (where available) and address shall be provided by City staff. Such an appeal shall be filed with the appropriate agency within seven business days of the dispatch or rejection notices to the protestor.

Federal agencies may entertain protests alleging that the City has failed to adopt written protest procedures or has failed to follow such procedures. The City Council is the highest authority of the City of Modesto and its decisions are final. A disappointed Bidder for a contract involving expenditures of Federal funds shall have the right to appeal the City Council decision directly to the federal agency as described herein.

EVALUATION PROCESS
Proposals shall be evaluated using a three (3) step process:

Level 1 – Minimum Qualifications Review: The City shall perform an initial responsiveness review to determine compliance and shall notify disqualified Proposers. Proposers that do not meet the “Minimum Qualifications” requirements shall be deemed non-responsive and/or/non-responsible to this RFP and will receive no further consideration.

Level 2 – Proposal Content and Cost Ratings: Proposals that meet Level 1 Minimum Qualifications Review shall be evaluated based on the evaluation criteria “Proposal Evaluation Criteria”. Proposer submittals shall be evaluated and scored. Proposer cost information shall be evaluated as part of Level 2 evaluation process.

Level 3 – Short List (Oral Presentations): At the sole discretion of the Evaluation Committee, a “short list” of proposers may be developed of the highest rated written submissions, based on Level 1 and Level 2 rankings.

If the Evaluation Committee chooses, these proposers would be invited to give presentations. Final scoring of “short list” proposals shall be completed upon the conclusion of presentations.

QUANTITIES
The successful proposer shall be required to provide whatever quantities may be required during the contract term. No minimum or maximum is guaranteed or implied.

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

INSPECTION AND ACCEPTANCE
Whenever the product or service provided by the supplier has been delivered to the delivery point, the designated agent shall make the final inspection and acceptance. #12..
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16 If upon initial inspection the product or service is found to be defective in its construction or deficient in any of the requirements of this specification, the supplier shall remedy or remove said product in an acceptable manner at the supplier's expense. No compensation shall be allowed for such correction of product, labor, or transportation of product.

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

NON-DISCRIMINATION
A. During the performance of this contract, Contractor and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), or sexual orientation. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment. Contractor and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.

B. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.

C. Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract.

D. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the City upon reasonable notice at any time during the normal business hours, but in no case less than twentyfour (24) hours notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or City shall require to ascertain compliance with this clause.

NON-DISCRIMINATION OF THE HANDICAPPED

CERTIFICATION OF PROPOSER REGARDING NON-DISCRIMINATION OF THE HANDICAPPED By executing this agreement, the proposer hereby certifies that he/she is in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation, and will continue to do so for at least the duration of the agreement and any extensions thereof. #12..
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17 DRUG FREE WORKPLACE
Proposer/Contractor certifies that he/she is in compliance with Sections 8350 - 8355 of Chapter 5.5 of the Government Code, Drug Free Workplace Act. Every person or organization awarded a contract/purchase order or grant for the procurement of any property or service from any state agency (city) shall certify to the contracting or granting agency that it will provide a drug free workplace.

HOLD HARMLESS AGREEMENT
The CONTRACTOR shall hold the CITY, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities and damages from every cause, including but not limited to injury to person or property or wrongful death, with the indemnity to include reasonable attorney's fees, and all costs and expenses, arising directly or indirectly out of any act or omission of CONTRACTOR, whether or not the act or omission arises from the sole negligence or other liability of CITY, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under the Agreement.

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

CITY PROCESS/PROCEDURE APPROVALS
CITY approval of any process or procedure shall not relieve the proposer of his/her responsibility to furnish the required items and service meeting all specifications contained herein.

FAILURE TO PERFORM SATISFACTORY
It is agreed and understood that if the CONTRACTOR fails to perform the work as specified herein, CITY's representative may (1) consent to accept such unsatisfactory service with an appropriate adjustment in contract price, based on established cost factors, (2) have such required work done by CITY forces or otherwise, and charge the cost thereof to the CONTRACTOR, or (3) recommend termination of contract between said CONTRACTOR and the City of Modesto. Those discrepancies and deficiencies in the work that remains uncorrected after the date set for correction may be the necessary justification for a billing adjustment in the month following the occurrence. Unless otherwise negotiated, billing adjustments for this incomplete or uncorrected work shall be permanent retention of 100% of the estimated monthly cost for the work not corrected or completed.

CONTRACTOR'S RESPONSIBILITY FOR DAMAGES
If CONTRACTOR damages any property belonging to the CITY, the CITY may either retain from the money due to CONTRACTOR an amount sufficient to repair the damage or require CONTRACTOR to repair the damage to the satisfaction of the CITY at CONTRACTOR's expense. #12..
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18 LABOR FORCE AND SUPERVISION
CONSULTANT shall provide sufficient labor at all times to carry out the project properly and shall ensure that fully experienced competent licensed workers who are skilled in the type of work required are employed.

CONSULTANT shall ensure that supervision is provided at all times while any work under this contract is being performed. If, in the judgment of the CITY, any person is incompetent or disorderly, CONSULTANT shall promptly remove such person from the work for the duration of the contract. #12..
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19 AWARD OF AGREEMENT
• The City may award one or more agreements to one or more Proposer in order to provide for backup, or in case the “primary” contractor is unable to meet the City’s needs. • The City reserves the right to decline to award any agreement if it is determined that the proposed pricing is not competitively priced based on similar agreements with public agencies within the State of California or if the bids received fail to meet the City’s requirements. • The City reserves the right to select that Proposal, which best suits the City’s needs. Price is only one factor that will be considered by the City when awarding an agreement. Regardless of City staff’s recommendation, the City Council reserves the right to award an agreement to the Proposer that best suits the City’s needs as determined by the City Council whether or not said award is consistent with City staff’s recommendation for award.
• The City will appoint a selection committee to evaluate each Proposer’s submitted Proposal. The City will evaluate Proposals on a 100-point scale based upon the following weighted scoring:

No. Evaluation Criteria Scoring Method Weight (Points)

1. References Points Based 10
(10% of Total)

2. Technical Proposal Points Based 20
(20% of Total)

3. Mandatory Elements Points Based 10
(10% of Total)

4. Expertise and Experience Points Based 20
(20% of Total)

5. Audit Approach Points Based 20
(20% of Total)

6. Cost Reward Low Cost 20
(20% of Total)
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20 PROPOSAL
Proposer’s submission should include all City of Modesto forms as provided. If any form is not applicable, Proposer should write or type “Not Applicable” on it but still include the form in your submission.

RFP ACKNOWLEDGEMENT AND PROPOSAL
RFP ACKNOWLEDGEMENT*
The party submitting acknowledges receipt of the referenced RFP and/or Addenda and offers and agrees to furnish the articles and/or services specified on behalf of the Proposer indicated in Proposer’s Proposal and Forms provided by the City attached hereto and made a part hereof, this includes any forms for the pricing proposed on the Pricing Schedule.

By checking the "please confirm" box below, you acknowledge the above statement. ☐ Please confirm
*Response required

PROPOSER COMPANY INFORMATION
PROPOSER COMPANY FULL LEGAL NAME*
Please provide the full legal name of the company on this proposal. It may already be provided elsewhere, but please provide here to confirm.
*Response required
PROPOSER COMPANY MARKETPLACE (OR DBA) NAME*
Please provide the Company Marketplace Name or DBA (if applicable). It may already be provided elsewhere, but please provide here to confirm.

NOTE: If the company is not operating under an additional name or a dba, then you may state "N/A" here.
*Response required
TYPE OF LEGAL ENTITY*
Is the Proposer Company a Corporation, Limited Liability Company, Partnership, or Sole Proprietorship? If the Proposer Company is something other than one of the above options, please answer "No" here and you will be asked to provide more information after this question. ☐ Yes
☐ No
*Response required
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21 When equals "Yes"
TYPE OF LEGAL ENTITY - SELECT*
Please select which of the following legal entity options under which the Proposer Company operates. ☐ Corporation
☐ Limited Liability Company
☐ Partnership
☐ Sole Proprietorship
*Response required
When equals "Yes"
LEGAL ENTITY STATE OF REGISTRATION*
In which State is the Proposer Company registered?
*Response required
When equals "No"
TYPE OF LEGAL ENTITY - OTHER*
You have indicated that the Proposer Company does not operate as a Corporation, a Limited Liability Company, a Partnership, or as a Sole Proprietorship. Please explain and be sure to note which State the Proposer Company is registered/established.
*Response required
PROPOSER COMPANY HEADQUARTERS ADDRESS*
Please provide the full street address for the headquarters of the Proposer Company. Be sure to include the following:
• Full Street Address
• City
• State
• Country
• Postal Code
*Response required

COMPANY WEBSITE ADDRESS
Please provide the full company website address for the Proposer Company. #12..
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22 PROPOSAL CONTACT PERSON DETAILS*
Please provide the following information for the Contact person for this proposal:
• Name
• Title
• Phone (Office)
• Phone (Mobile)
• Mailing Address (Street Address, City, State, Postal Code) • Fax Number
• Email
*Response required
FEDERAL TAXPAYER IDENTIFICATION NUMBER (TIN)*
Please provide the Proposer Company's Federal Taxpayer Identification Number here. *Response required

DUNS & BRADSTREET (DUNS) NUMBER
Please provide the Proposer Company's Duns & Bradstreet (DUNS) Number here.

PROPOSER OFFICER NAMES AND TITLES*
Please provide the Names and Titles of the Top Three Proposer Officers in the following manner:
• Full Name, Full Title
• Full Name, Full Title
• Full Name, Full Title
*Response required
YEARS IN BUSINESS*
For how long has the Proposer Company been in business? Please indicate in number of years. *Response required
CLOSEST PROPOSER OFFICE*
Please provide the address for the Proposer Office closest to the City of Modesto. Please be sure to provide:
• Full Street Address
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23 • City
• State
• Country
• Postal Code
*Response required
CITY OF MODESTO BUSINESS LICENSE*
Does the Proposer Company currently possess a valid City of Modesto Business License? NOTE: An answer of "No", does not exclude the proposal from evaluation as it is not required until the contract begins.
☐ Yes
☐ No
*Response required
When equals "Yes"
CITY OF MODESTO BUSINESS LICENSE NUMBER*
You have indicated that the Proposer Company already possesses a City of Modesto Business License, please provide the business license number here.
*Response required
PROPOSER FINANCIAL STATEMENTS*
Minimum Qualifications are mandatory for proposal consideration, and at a minimum shall include the following:

Financial Stability:

City staff will request financial statements from the proposer whose proposal is determined to best meet the City’s needs, as determined by the selection committee. Within two (2) business days of City request, proposer shall provide a copy of their company’s most recent professionally prepared Financial Statements (Income Statement and Balance Sheet). These statements, if un-audited, shall be accompanied by a cover letter that states the name and title of the preparer, the basis of the financial statement presentation (cash or accrual) and whether these statements have been prepared in accordance with Generally Accepted Accounting Principles for the most recent fiscal year end of the proposer. Audited financial statements shall be submitted in their entirety, including the auditor’s opinion and notes to the financial statements. #12..
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24 A separate document shall be provided and signed under penalty of perjury by the proposer’s financial officer or owner that explains the proposer’s inability to provide statements for a fiscal period that ended at least eight (8) months before the required date of submittal, if such inability exists.

One complete set of Financial Statements shall be submitted within two (2) business days of City request.

Financial Statements, whether delivered via email, by an employee of the proposer, U.S. Postal Service, courier or package delivery service must be received by the City of Modesto, Purchasing Division within two (2) business days of request. Financial statements delivered via email should be sent to [email protected]. If sent via email, proposer is encouraged to follow-up with a phone call to Armando Fabro at (209) 577-5412, to confirm receipt. Failure of proposer to provide requested documents within two (2) business days, may disqualify proposer from further consideration. The City of Modesto assumes no responsibility for delay in the delivery of the Financial Statements to the City.

CITY OF MODESTO, PURCHASING DIVISION
1010 10TH STREET, SUITE 5300
ATTN: Armando Fabro
External Auditing Services #RFP-00018
MODESTO, CA 95354
By checking the box below, Proposer confirms that they understand the financial statement requirements as set forth above.
☐ Please confirm
*Response required

PRICING SCHEDULE
PRICING SCHEDULE*
Please download the below documents, complete, and upload. • Pricing_Schedule_Form.doc
*Response required

CITY FORMS
PROPOSER EXCEPTIONS, CLARIFICATIONS, AMENDMENTS?*
Does the Proposer have any exceptions, clarifications, or amendments to this RFP, sample agreement, or its associated specifications?
☐ Yes
☐ No
*Response required
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25 When equals "Yes"
PROPOSER EXCEPTIONS, CLARIFICATIONS, AMENDMENTS*
Please download the below documents, complete, and upload. • Proposer_Exceptions,_Clarif...
*Response required
PROPOSER CUSTOMER REFERENCES*
Please download the below documents, complete, and upload. • Proposer_Customer_Reference...
*Response required
FINANCIAL INTEREST DISCLOSURE*
Please download the below documents, complete, and upload. • Financial_Interest_Disclosu...
*Response required
PROPOSER COMPANY HISTORY STATEMENT*
Please download the below documents, complete, and upload. • Proposer_Company_History_St...
*Response required
PROPOSER EXPERIENCE AND CERTIFICATIONS*
Please download the below document, complete, and upload. • Proposer_Experience_and_Cer...
*Response required
PROPOSER WARRANTY STATEMENTS*
Please download the below documents, complete, and upload. • Proposer_Warranty_Statement...
*Response required
SUBCONTRACTORS?*
Will the Proposer be using subcontractors for any purpose to perform services noted in this RFP? ☐ Yes
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26 ☐ No
*Response required
When equals "Yes"
SUBCONTRACTOR LIST*
Please download the below documents, complete, and upload. • Subcontractor_List_RFP.pdf
*Response required
CALIFORNIA LEVINE ACT DISCLOSURE*
Please download the below documents, complete, and upload. • Modesto_Levine_Act_Statemen...
*Response required

ADDITIONAL PROPOSAL ITEMS

ADDITIONAL INFORMATION (IF NEEDED)
For any additional information requested or required by any of your previously provided answers or as stated within this RFP please upload the additional documentation here.

SUBMITTAL CONFIRMATION*
Proposer hereby certifies that all information provided within this submittal is accurate to the best of their knowledge and acknowledges that they have provided proof of their authority to submit a proposal on behalf of the stated Company Name committing them to the information contained within said submittal.

By checking the "please confirm" box below, you certify the above statement. ☐ Please confirm
*Response required
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27 TECHNICAL SPECIFICATIONS AND REQUIREMENTS

BACKGROUND
The City of Modesto is the county seat and largest City in Stanislaus County with a population of approximately 219,989 persons. The City encompasses a total incorporated area of 37.8 square miles and a total General Plan area of 66.7 square miles and is located on State Route 99, which links it to other Central Valley cities, including Sacramento (82 miles north), Stockton (32 miles north), and Fresno (96 miles south).

Rail service links Modesto to the greater region. Passenger service is available outside of Downtown Modesto at the Burlington Northern/Santa Fe Railroad’s (Amtrak) Lakewood East Station, in eastern Modesto.

Modesto is also located adjacent to the Tuolumne River, which flows out of Yosemite National Park. The Tuolumne River Regional Park includes a parkway along the river. In combination with Dry Creek Regional Park, the City has extensive river access and excellent recreational opportunities, both regionally and locally.

Modesto is a charter city with a Council-Manager form of government.

The City’s operating budget for Fiscal Year 2024/25 is approximately $579 million and approximately 1,410 active permanent employees. The City of Modesto accounting, financial reporting and investing functions are centralized in the Finance Department. The City's main financial applications operate on Oracle, and are networked to users via PC/terminal emulation.

SCOPE OF SERVICES
The City of Modesto is requesting proposals from qualified Certified Public Accountants to conduct the annual independent audit of the City’s financial statements for Fiscal Years ending June 30, 2026, 2027 and 2028, with an option to renew for Fiscal Years ending June 30, 2029 and 2030, at the sole discretion of the City.

The City desires the external auditor to express an opinion on the fair presentation of its basic financial statements and schedule of expenditures from federal awards in conformity with generally accepted accounting principles, the provisions of the federal Single Audit Act Amendments of 1996 and Title 2 U.S.

Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

The auditor is not required to audit the combining and individual fund financial statements and supporting schedules. The auditor is to provide an “in-relation-to” report on the basic financial statements and supporting schedules based on the auditing procedures applied during the audit of the basic financial statements. The auditor is required to express an opinion on the compliance for each major federal program as part of the single audit. The auditor will report any identified material weaknesses or significant deficiencies in internal control but does not express an opinion on internal control.

The City is the financial administrator for two (2) joint power agencies, two (2) state programs, one (1) local sales tax program, known as Measure H and thirteen (13) Community Facilities Districts (CFD) with the possibility of increasing to up to eighteen (18) CFDs and will require the financial statement compilation and express an opinion on the financial statements for these funds. #12..
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28 The City was awarded one (1) Organized Retail Theft Program (ORTP) which requires a separate financial statement compilation and opinion on the financial statements for these funds for the period October 1, 2023, through December 31, 2026.

The auditor will also be required to prepare the City’s Annual Comprehensive Financial Report (ACFR) ensuring that it continues to meet all reporting requirements under the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting. The auditors must designate an independent team to prepare the ACFR to ensure an independent opinion is provided on the fairness of the financial statements. The City has received the GFOA award Certificate of Achievement for Excellence in Financial Reporting for 41 consecutive years and it is the City’s plan to continue pursuing this award.

SUBCONTRACTING
Should any firm submitting a proposal consider subcontracting portions of the engagement, that fact must be clearly identified in the proposal along with the name of the proposed subcontractor. Following the award of the audit contract, no additional subcontracting shall be allowed without the express prior consent by the City of Modesto.

REPORTS
A. The City has obtained the "Certificate of Achievement for Excellence in Financial Reporting" from the Government Finance Officers Association (GFOA) of the United States and Canada for the 41st year. It is the City's intention to continue to receive these awards annually and will expect the Annual Comprehensive Financial Report (ACFR) to meet the requirements of those programs. The auditor will be expected to review and ensure the final draft of the ACFR is in compliance with the certificate program checklists. B. The City has obtained the award from GFOA for the Popular Annual Financial Report (PAFR) for the 7th year. A PAFR presents financial information in a manner that appeals to the reader, is understandable and shows creativity and usefulness. It is the City’s intention to continue to receive this award annually and will expect the PAFR to meet the requirements of the GFOA award program. The auditor will be expected to review the final draft of the PAFR for compliance with the certificate program checklists.

B. The City anticipates it will prepare one or more official statements in connection with the sale of debt securities which will contain the basic financial statements and the auditor's report thereon. The auditor shall be required, if requested by the municipal advisor and/or the underwriter, to issue a "consent and citation of expertise" as the auditor, and any necessary "comfort letters." C. The Schedule of Expenditures of Federal Awards and related auditors' report, as well as the reports on the internal controls and compliance are not to be included in the Annual Comprehensive Financial Report but are to be issued separately.

D. The City may request additional services from the auditor, subject to compliance with independence standards, including the following:

1. The City has several debt issues that may or may not be subject to arbitrage rebate requirements or have complex accounting requirements. The auditor may be asked to prepare the necessary calculations or assist with journals and advise the City accordingly. #12..
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29 2. The City is occasionally confronted with complex tax issues related to employment taxes withholding and reporting, information reporting, etc. The auditor may be asked from time to time to advise the City on tax related issues and to recommend a proper course of action.

E. In addition to expressing an opinion on the City’s compliance with current governmental GAAP, the audit firm shall also be required to provide assistance and guidance in the implementation of all new GASB pronouncements not yet in effect.

F. Working Paper Retention and Access to Working Papers. All working papers and reports must be retained, at the auditor's expense, for a minimum of seven (7) years, unless the firm is notified in writing by the City of Modesto of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees:

1. City of Modesto.

2. Oversight or cognizant agencies.

3. Parties designated by the federal or state governments or by the City as part of an audit quality review process.

4. Auditors of entities of which the City is a sub recipient of grant funds.

5. Auditors of entities of which the City is a component unit.

G. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.

Following the completion of the audit of the fiscal year’s financial statements, the auditor shall issue:

A. An audit report of the basic financial statements and assistance with the preparation of the Annual Comprehensive Financial report and review of GANN appropriations limit report.

B. A report on compliance and internal control over financial reporting based on an audit of the financial statements.

C. Testing five (5) programs for compliance with the Single Audit Act and applicable laws and regulations and issuance of a report thereon for the City and joint power agencies.

D. A report on compliance and internal control over compliance applicable to each major federal program.

E. A report on compliance with specific requirements applicable to non-major federal financial assistance programs.

F. Separate audit reports for the financial statements of the following component units and joint ventures of the City of Modesto:

1. Tuolumne River Regional Park (TRRP)
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30 2. The Community Facilities Districts (CFDs) (currently the City has thirteen (13) CFDs but the number may increase to up to eighteen (18))

3. Ceres-Modesto Industrial Fire Protection JPA

4. Measure H – a one cent local sales tax for general city services.

All reports prepared by auditors should meet ADA requirements.

G. Separate audit reports on the following State programs:

1. Local Transportation Funds (LTF) - Streets and Roads and Non-motorized funds under Transportation Development Act (TDA)

2. Abandoned Vehicle Abatement (AVA)

3. Organized Retail Theft Program (ORTP) for period October 1, 2023, through December 31, 2026.

H. Preparation of Annual Report of Financial Transactions for the City (State Controller's Report).

I. Others, as requirements change, may be added as additional work, as covered in the RFP by the terms for such work.

J. In the required report[s] on compliance and internal controls, the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements.

K. Reportable conditions that are also material weaknesses shall be identified as such in the report. Nonreportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the reports on internal controls.

L. Reports on compliance shall include all instances of noncompliance.

Irregularities and illegal acts: Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the following parties:

City Manager
City Auditor
Deputy City Manager
City Attorney
Director of Finance
City Clerk
M. Reporting to the audit committee. Auditors shall assure that the City of Modesto's Audit Committee is informed of each of the following:
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31 1. The auditor's responsibility under generally accepted auditing standards

2. Significant accounting policies

3. Management judgments and accounting estimates

4. Significant audit adjustments

5. Other information in documents containing audited financial statements

6. Disagreements with management

7. Management consultation with other accountants

8. Major issues discussed with management prior to retention 9. Difficulties encountered in performing the audit.

PREPARATION OF THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT

1. Prepare the various ACFR sections (including management discussion & analysis tables, required supplementary information and notes to the basic statements) from information provided, in whole or in part, from the City.

2. Provide a template for the ACFR (all sections of the report) that electronically links the trial balance to the financial statements (both government-wide and fund financial statements).

3. Assist with GASB 34 conversion entries (including the related analysis, as necessary).

4. Assist with addressing any GFOA comments on the prior year’s ACFR.

SPECIAL CONSIDERATION
A. The City has obtained the "Certificate of Achievement for Excellence in Financial Reporting" from the Government Finance Officers Association (GFOA) of the United States and Canada for the 41st year. It is the City's intention to continue to receive these awards annually and will expect the Annual Comprehensive Financial Report (ACFR) to meet the requirements of those programs. The auditor will be expected to review and ensure the final draft of the ACFR is in compliance with the certificate program checklists. B. The City has obtained the award from GFOA for the Popular Annual Financial Report (PAFR) for the 7th year. A PAFR presents financial information in a manner that appeals to the reader, is understandable and shows creativity and usefulness. It is the City’s intention to continue to receive this award annually and will expect the PAFR to meet the requirements of the GFOA award program. The auditor will be expected to review the final draft of the PAFR for compliance with the certificate program checklists.

EXTERNAL AUDITING SERVICES
32 D. The City may request additional services from the auditor, subject to compliance with independence standards, including the following:

2. The City is occasionally confronted with complex tax issues related to employment taxes withholding and reporting, information reporting, etc. The auditor may be asked from time to time to advise the City on tax related issues and to recommend a proper course of action.

1. City of Modesto.

2. Oversight or cognizant agencies.

3. Parties designated by the federal or state governments or by the City as part of an audit quality review process.

4. Auditors of entities of which the City is a sub recipient of grant funds.

5. Auditors of entities of which the City is a component unit.

FUND STRUCTURE
The City uses the following fund types and account groups in its financial reporting:

Fund Types No. of Groups
General Funds 1
Special Revenue
Funds
9 Debt Service Funds 1
Capital Projects
Funds
8 Enterprise Funds 9
Internal Service
Funds
6 Private Purpose Trust
Fund
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33 Investment Trust
Funds
2 BUDGETARY BASIS OF ACCOUNTING
Budgets for all fund types including the General, Special Revenue and Debt Service funds are adopted on a basis consistent with generally accepted accounting principles. The modified accrual basis of accounting is employed in the preparation of the budget. At fiscal year-end, budget appropriations lapse. Capital projects and certain operating programs are budgeted on a multiyear basis. Unspent multi-year budget appropriations are carried over in the following fiscal year.

PROPOSED SCHEDULE FOR THE 2025/2026 YEAR AUDIT
The City will have records ready for interim audit work and all management personnel available to meet with the firm’s personnel after execution of contracts.
(A similar time schedule will be developed for audits of future fiscal years and will be agreed upon by City and auditors during the exit conference).

Each of the following should be completed by the auditor no later than the dates indicated.

A. Entrance Conference:

The entrance conferences for IT internal controls audit and financial audit shall be held with City staff by March 1, 2026. The primary purpose of these meetings will be to discuss the interim work to be performed. These meetings will also be used to establish overall liaison for the audits, make arrangements for workspace, and other needs of the auditor, and plan for the year-end and single audits.

B. Detailed Audit Plans:

The auditor shall provide the City by March 31, 2026, both detailed audit plans for IT internal controls and financial audits, and a list of all schedules to be prepared by the City.

C. Interim Work:

The auditor shall complete interim work by June 12, 2026.

D. Fieldwork:

The auditor shall complete all fieldwork by October 30, 2026 for ACFR and Single Audit and shall complete all fieldwork for smaller audits, CFDs, JPAs and other smaller audits, by October 9, 2026.

E. Exit Conference:

The exit conference for IT internal control audit, shall be held with City Management by June 12, 2026.

The exit conference for financial audit, shall be held with City Management by October 30, 2026. The purpose of these meetings will be to summarize the results of the fieldwork and to review significant findings. This meeting will also be used to stablish the schedule for the new fiscal year audit.

F. Draft Reports:

The initial draft reports for all smaller audits, CFDs, JPAs, Single Audit and other smaller programs shall be submitted to the City for review by the auditor by October 16, 2026. The initial Draft Basic Financial Statements shall be submitted to the City by the auditor by October 23, 2026. The auditor shall #12..
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34 have the draft Single Audit and recommendations to City Management available for review by October 30, 2026.

G. Date Final Reports are Due:

Final financial reports for all smaller audits including, CFDs, Measure-H, Ceres-Modesto Industrial Fire Protection, Tuolumne River Regional Park, Local Transportation Funds (LTF), and Abandoned vehicle Abatement (AVA) are due by November 6, 2026.

The final Basic Financial Statements are due by December 7, 2026.

The final Single Audit Report and Management Letter are due by December 7, 2026. Auditors and City will discuss and agree on the audit schedule for the Organized Retail Theft Program (ORTP) which requires an audit for period October 1, 2023, through December 31, 2026, ensuring that the final report is issued by May 1, 2027.

ASSISTANCE TO AUDITOR AND REPORT PREPARATION
A. Finance Department and Clerical Assistance:

The Finance Department staff and responsible management personnel shall be available during the audit to assist the firm by providing direction to needed sources of information, documentation, and explanations. The City of Modesto shall work jointly with the auditors to prepare the confirmation letters.

B. Information & Technology Department:

IT personnel and finance management shall be available to provide systems documentation and explanations. The auditor shall be provided VPN access to the City of Modesto's computer hardware and software. The City's financial management system shall be available online from 8:00 AM to 5:00 PM.

C. Statements and Schedules Prepared by City Staff:

Finance department staff will prepare the lead schedules, letter of transmittal, Statistical Section and Continuing Disclosures, for the ACFR and will update the Management’s Discussion and Analysis section based on the tables prepared by the auditors. However, auditor assistance may be required with certain note disclosures or schedules.

D. Work Area and Equipment:

The City of Modesto will provide the auditor with reasonable workspace, desks and chairs and VPN access. The auditor will also be provided with access to telephone lines, photocopying facilities and FAX machines, the auditor shall provide all Wi-Fi connection for their own work computer stations. It is expected that use of such facilities and equipment be limited to reasonable and pertinent business concerning the City engagement.

E. Report Preparation:

Report preparations, Report editing and typing of the Single Audit and other reports shall be the responsibility of the auditor. Auditors will be responsible for printing of Single Audit and other financial reports.

City staff shall be responsible for preparation and printing of the Annual Comprehensive Financial Report. #12..
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35 REQUIRED LICENSES
Prior to beginning any service that shall be furnished under this specification, the Proposer shall secure the appropriate Business/Delivery license from the City of Modesto. Business/Delivery license information may be obtained by calling (209) 577-5389 or emailing [email protected]. The successful Proposer shall maintain a City of Modesto business license for the duration of the agreement.

COVER LETTER
A signed cover letter briefly stating the proposers’ understanding of the work to be done, the commitment to perform the work within the time period, and a statement why the firm believes itself to be best qualified to perform the engagement.

TECHNICAL PROPOSAL
The technical proposal shall follow the order set forth in items A through I of this section.

The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent audit of the City in conformity with the requirements of this RFP.

As such, the substance of proposals will carry more weight than their form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet request for proposals requirements.

The
Technical Proposal should address all of the points outlined in the RFP. The Proposal should be a straightforward, concise description of the proposer's capabilities to satisfy the requirements the RFP. While additional data may be presented, following subjects, items Nos. A through I, shall be included. They represent the criteria against which the proposal will be evaluated.

A. Independence: The firm shall provide an affirmative statement that is independent of City of Modesto as defined by the U.S. General Accounting Office's Government Auditing Standards (1994 edition, with all subsequent amendments). The firm shall also provide an affirmative statement that it is independent of the component units of the City as defined by those same standards. The firm should also list and describe the firm's (or proposed subcontractors') professional relationships involving the City or any of its component units for the past five (5) years, together with statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. In addition, the firm shall give the City written notice of any such professional relationships entered into during the period of this agreement.

B. License to Practice in California: An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in State of California.

C. Firm Qualifications and Experience: The proposer shall state the size of the firm, the size of the firm's governmental audit staff, the location of the office from which the work on this engagement is to be performed, and the number and nature of professional staff to be employed in this engagement on a fulltime basis and the number and nature of the staff to be employed on a part-time basis. If the proposer is a joint venture or consortium, the qualifications of firm comprising the joint venture or consortium shall be separately identified and the firm that is to serve as the principal auditor shall noted, if applicable. The firm is also required to submit a copy of the report on its most recent external quality control review, with a statement whether that quality control review included a review of specific government engagements. The firm shall also provide information on the results of any federal state desk reviews or field reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances #12..
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36 and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations.

D. Partner, Supervisory and Staff Qualifications and Experience: Identify the principal, supervisory and management staff, including engagement partners, managers, other supervisors, and specialists, who would be assigned to the engagement. Indicate whether each such person is registered or licensed to practice as a certified public accountant in California. Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership professional organizations relevant to the performance of this audit.

Provide as much information as possible regarding the number, qualifications, experience, and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. Indicate how the quality of staff over the term of the agreement will be assured.

Engagement partners, managers, other supervisory staff, and specialists may be changed if those personnel leave the firm. These personnel may also be changed for other reasons with the express prior written permission of the City of Modesto. However, in either case, the City retains the right to approve or reject replacements Consultants and firm specialists mentioned in response to this RFP can only be changed with the express prior written permission of the City, which retains the right to approve or reject replacements.

Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience.

E. Prior Engagements with the City: List separately all engagements within the last five (5) years, ranked on basis of total staff hours, for the City by type of engagement (i.e., audit, management advisory services, other). Indicate the scope of work, date engagement partners, total hours, the location of the firm's office from which the engagement was performed, and the name telephone number of the principal client contact.

F. Similar Engagements with Other Government Entities: For the firm's office that will be assigned responsibility for the audit, list the most significant engagements performed (maximum of five (5) to listed) in the last five (5) years that are similar to the engagement in this RFP. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone of the principal client contact.

G. Specific Audit Approach: The proposal shall set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required outlined in this RFP. In developing the work plan, reference shall be made to such sources of information as City budget and related materials, organizational charts, manuals and programs, and financial and other management information systems.

Proposers shall be required to provide the following information on their audit approach:
• Proposed segmentation of the engagement.
• Level of staff and number of hours to be assigned to each proposed segment of the engagement. • Sample size and the extent to which statistical sampling is to be used in the engagement. • Describe the type and extent of analytical procedures to be used in the engagement and how analytical information will be utilized in approaching the engagement. • Approach to be taken to gain and document an understanding of the City's internal control structure. #12..
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37 • Approach to be taken in determining laws and regulations that will subject to audit test work. • Approach to be taken in drawing audit samples for purposes of tests of compliance.

H. Identification of Anticipated Potential Audit Problems: The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems, and any special assistance that will be requested from the City.

I. Report format: The proposal shall include sample formats of required reports.

MANDATORY ELEMENTS
Proposer shall provide detailed information on the following:

A. The audit firm is independent and licensed to practice in California.

B. The firm has no conflict of interest or impairment to independence with regard to any other work performed by the firm for the City.

C. The firm adheres to the instructions in this RFP on preparing and submitting their proposal.

D. The firm submits a copy of its last external quality control review report and a record of quality audit work.

EXPERTISE AND EXPERIENCE
Proposer shall provide detailed information on the following:

A. The firm’s past experience and performance on comparable governmental engagements.

B. The firm’s professional personnel and management personnel assigned to the engagement.

AUDIT APPROACH
Proposer shall provide detailed information on the following:

A. Proposed staffing plan for the various segments of the engagement.

B. Sampling techniques.

C. Analytical procedures.

ACCOUNT MANAGER/SUPPORT STAFF
Please identify the account manager and support staff that will be assigned to this project and provide resumes. This should include the names, titles and qualifications (including education, degrees and specialization) of the Project Manager and support staff and any sub-consultants who will be performing work on the project. It should also include the Project Manager and support staffs experience, length of time with the firm and projects for organizational structure should be included.

TERM OF AGREEMENT
The term of the agreement shall be for a period of two (2) years with three (3) one-year extension options at the sole discretion of City, for a total of up to five (5) years. #12..
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38 A. Pricing shall remain firm for the first two years of any agreement, which may be awarded pursuant to this RFP.

B. Price increases for subsequent agreement years three, four, and five, shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one agreement year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by Consultant(s) in writing, ninety (90) days prior to the annual anniversary date of the agreement to be effective for the subsequent year. #12..
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39 SAMPLE STANDARD AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT made and entered into in the City of Modesto, State of California, this ______ day of _________________, 20___, (“Effective Date”) by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as "CITY", and (CONSULTANT), a California corporation, hereinafter referred to as "CONSULTANT".

This AGREEMENT is made with regard to the following recitals:
a. The CITY has determined that an ______________ should be prepared for the CITY to _________________.
b. CONSULTANT represents that it is qualified, willing, and able to provide the services to prepare said document(s).

NOW, THEREFORE, in consideration of this AGREEMENT, and the mutual promises, covenants, and stipulations hereinafter contained, the parties agree as follows:

1. SCOPE OF SERVICES
CONSULTANT shall undertake and complete the preparation of the scope of work as set forth and described in the documents attached hereto and referred to as Exhibit (A) or "Project". The Consultant shall perform the services as described in Exhibit (A) in a manner compatible with the standards of its profession and shall produce a fully complete project that is acceptable to CITY.

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

Year 1: MONTH DD, 20___ through MONTH DD, 20___
Year 2: MONTH DD, 20___ through MONTH DD, 20___
Year 3: MONTH DD, 20___ through MONTH DD, 20___
Year 4: MONTH DD, 20___ through MONTH DD, 20___
Year 5: MONTH DD, 20___ through MONTH DD, 20___
Pricing shall remain firm for the first two (2) years of the AGREEMENT.

Price increases for subsequent AGREEMENT years, three, four and, five shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by CONSULTANT in writing, ninety (90) days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year. #12..
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40 3. COMPENSATION
CONSULTANT agrees to accept a sum not to exceed $_________ (maximum compensation) as full remuneration for performing all services and furnishing all staffing and materials for CITY in accordance with Exhibit (A).

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

CITY shall pay CONSULTANT [TO BE DETERMINED BY RFP RESPONSE IN FINAL AGREEMENT, EITHER “Net 30 terms via CITY’s ePay Program” or “Net 45 Days via manual check”.]

5. PERFORMANCE BY KEY EMPLOYEE
CONSULTANT has represented to CITY that __________ will be the person primarily responsible for the performance of the services referred to in this AGREEMENT. CITY has entered into this AGREEMENT in reliance on that representation by CONSULTANT. CONSULTANT therefore agrees that _____ percent (____%) or more of the time devoted to the project that is the subject of this AGREEMENT will be that of the above-named person.

Title to Data
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41 If, as a part of the AGREEMENT, CONSULTANT is required to produce data such as, but not limited to, drawings, plans, specifications, calculations, models, flow diagrams, visual aids and other related materials, the originals of all such data generated under this AGREEMENT will be delivered to CITY upon the completion or termination of services under the AGREEMENT. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this AGREEMENT are prepared specifically for the CITY and are not necessarily suitable for any future or other use.

EXTERNAL AUDITING SERVICES
42 CONSULTANT shall determine and control the method, details and means of performing the work and services to be provided by CONSULTANT under this AGREEMENT. CONSULTANT shall be responsible to CITY only for the requirements and results specified in this AGREEMENT, and, except as expressly provided in this AGREEMENT, shall not be subjected to CITY's control with respect to the physical action or activities of the CONSULTANT in fulfillment of this AGREEMENT. CONSULTANT is permitted to provide services to others during the same period service is provided to CITY under this AGREEMENT. If necessary, CONSULTANT has the responsibility for employing other persons or firms to assist CONSULTANT in fulfilling the terms and obligations under this AGREEMENT.

It is understood and agreed that as an independent contractor and not an employee of CITY neither the CONSULTANT or CONSULTANT's assigned personnel shall have any entitlement as a CITY employee, right to act on behalf of the CITY in any capacity whatsoever as an agent, or to bind the CITY to any obligation whatsoever. It is further understood and agreed that CONSULTANT must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of CONSULTANT's personnel. As a independent CONSULTANT, CONSULTANT hereby indemnifies and hold CITY harmless from any and all claims that may be made against CITY based upon any contention by any third party that an employer-employee relationship exists by reason of this AGREEMENT.

11. ASSIGNMENT
Neither this AGREEMENT nor any portion thereof shall be subcontracted or assigned, without the express prior written consent of the CITY in each and every instance.

13. NOTICES
Notice required by this AGREEMENT shall be given in writing and shall be deemed given and effective upon delivery provided that such are delivered in accordance with this Section. Notices shall be delivered either by: (a) personal delivery; (b) overnight courier service which obtains confirmation of delivery; or (c) certified mail, return receipt requested, if delivery is confirmed by a return receipt; or (d) by electronic transmission subject to reasonable proof that the notice was both transmitted and received. Each such notice shall be sent to the parties at the address respectively set forth below or to such other address as a party may designate by written notice given in accordance with this Section:
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43 FOR CONSULTANT: Name:

Address:

Attention:

Phone: ()
Email:

CITY: Name:

Address:

Phone:

Email:

City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
(209)

Termination by CITY for Convenience
The City may also terminate the CONSULTANT's performance under the AGREEMENT, either in whole or in part, at tis own discretion, or when conditions encountered during the services make it impossible or impracticable to proceed, or when the City is prevented from proceeding with the AGREEMENT by act of God, by law, or by official action of a public authority, or upon a determination by the City that such termination is in the best interest and convenience of the City, or whenever the City is prohibited from completing the services for any reason. The City shall provide no less that ten (10) calendar days written notice of its intent to terminate the AGREEMENT for convenience and shall endeavor to provide the CONSULTANT with consultation with the City prior to termination.
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44 Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONSULTANT shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subconsultants and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subconsultants except as necessary to complete any portion of the work that is not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such subconsultants, but in no event shall recovery by any CONSULTANT or subconsultant include lost profits for portions of the work not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONSULTANT in performing the work whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the work as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the work and/or property related to the work; h. If CITY so requests, and at CITY's cost, CONSULTANT shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONSULTANT's work on the project.
i. The CONSULTANT understands and agrees that CITY may, in CITY's sole discretion, refuse to pay CONSULTANT for that portion of CONSULTANT's services which were performed by CONSULTANT on the project prior to the termination date and which remain unacceptable and/or not useful to CITY as of the termination date.

EXTERNAL AUDITING SERVICES
45 j. The cost of settling and paying valid claims arising out of the termination of the work such as subconsultant AGREEMENTs or contracts for materials;
k. The AGREEMENT price allocable to the portion of the work properly performed, or goods supplied to the work site by the CONSULTANT as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONSULTANT.

EXTERNAL AUDITING SERVICES
46 CONSULTANT's obligation to defend, indemnify, and hold the CITY, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONSULTANT to procure and maintain a policy of insurance.

EXTERNAL AUDITING SERVICES
47 22. AUDIT
The CITY's duly authorized representative shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify CONSULTANT's charges to CITY under this AGREEMENT.

23. GOVERNING LAW
This AGREEMENT shall be governed according to the laws of the State of California.

24. HEADINGS NOT CONTROLLING
Headings used in the AGREEMENT are for reference purposes only and shall not be considered in construing this AGREEMENT.

26. CITY BUSINESS LICENSE
CONSULTANT will have a City of Modesto business license. #12..
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REQUEST FOR PROPOSALS # RFP-00018

EXTERNAL AUDITING SERVICES
48 IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attestation by its City Clerk under authority of Resolution No. 20______ - _________, adopted by the Council of the City of Modesto on the _______ day of __________ , 20___, and (CONSULTANT) has caused this AGREEMENT to be duly executed as of the Effective Date.

CITY OF MODESTO
a municipal corporation
(CONSULTANT)
a California corporation*
By ________________________________ By ________________________________ JOSEPH P. LOPEZ, City Manager Name Title
By ________________________________
ATTEST: Name Title
By ________________________________ (Seal)
DIANE NAYARES-PEREZ, CMC, City Clerk
CONSULTANT's Federal ID# ______________
APPROVED AS TO FORM:

By ________________________________
JOSE M. SANCHEZ, City Attorney
APPROVED AS TO FORM:

By ________________________________
MATTHEW BRALEY, Risk Manager
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REQUEST FOR PROPOSALS # RFP-00018

EXTERNAL AUDITING SERVICES
49 EXHIBIT C: INSURANCE REQUIREMENTS FOR SERVICES
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees or subcontractors.

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

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

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

EXTERNAL AUDITING SERVICES
50 covered hereunder, shall be called upon to contribute to a loss until the Consultant's primary and excess liability policies are exhausted.

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

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

Waiver of Subrogation
Consultant hereby grants to City of Modesto a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City of Modesto by virtue of the payment of any loss under such insurance.

Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Modesto has received a waiver of subrogation endorsement from the insurer.

Acceptability of Insurers
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REQUEST FOR PROPOSALS # RFP-00018

EXTERNAL AUDITING SERVICES
51 Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Modesto.

Claims Made Policies (applicable to Professional Liability only) If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

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

Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:
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REQUEST FOR PROPOSALS # RFP-00018

EXTERNAL AUDITING SERVICES
52 City of Modesto
Attn: Risk Management
1010 10th Street
Modesto, CA 95354
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Proposal to No. RFP-00018
External Auditing Services for the
City of Modesto
Submitted by:

Cristy Canieda
Partner, Government Practice Leader
Vasquez + Company LLP
655 N. Central Avenue, Suite 1550
Glendale, CA 91203
Tel: (213) 873-1720
Fax: (213) 873-1777
Email: [email protected]
June 24, 2025
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Table of Contents
Table of Contents .......................................................................................................................... 1 Cover Letter .................................................................................................................................. 1 Independence ............................................................................................................................... 5 License to Practice in California.................................................................................................... 6 Firm Qualifications and Experience .............................................................................................. 6 Partner, Supervisory and Staff Qualifications and Experience.................................................... 11 Prior Engagements with the City................................................................................................. 21 Similar Engagements with Other Government Entities...............................................................21 Specific Audit Approach ..............................................................................................................22

1. Proposed segmentation of the engagement ...................................................................24

2. Level of staff and number of hours to be assigned to each proposed segment of the engagement.............................................................................................................................30

3. Sample size and the extent to which statistical sampling is to be used in the engagement. 30 4. Describe the type and extent of analytical procedures to be used in the engagement and how analytical information will be utilized in approaching the engagement.............................30

5. Approach to be taken to gain and document an understanding of the City's internal control structure...................................................................................................................................30

6. Approach to be taken in determining laws and regulations that will subject to audit test work. ........................................................................................................................................31

7. Approach to be taken in drawing audit samples for purposes of tests of compliance.....31 Identification of Anticipated Potential Audit Problems ................................................................. 31 Report Format.............................................................................................................................32 Proposal Form ............................................................................................................................33 Pricing Schedule Form................................................................................................................40 Proposer Exceptions, Clarifications, and Amendments ..............................................................43 Proposer Customer References ................................................................................................. 45 Financial Interest Disclosure.......................................................................................................47 Proposer Company History Statement .......................................................................................49 Proposer Financial Statements...................................................................................................50 Addenda Acknowledgement ......................................................................................................51 Proposer Warranty Statements...................................................................................................52 Proposer Experience and Certifications......................................................................................53 Subcontractor List .......................................................................................................................56 California Levine Act Disclosure ................................................................................................. 57 #12..
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1 Cover Letter
June 24, 2025
Amanda Fabro
Assistant Buyer
City of Modesto
1010 Tenth Street, 5th Floor, Suite 5300
Modesto, CA 95354
RE: Vasquez Proposal to Provide Professional Financial Statement Auditing Services to the City of Modesto
Vasquez & Company LLP (“Vasquez,” “we,” “us,” or “our”) is pleased to submit our proposal to audit the financial statements of the City of Modesto (the “City”) for the Fiscal Years ending June 30, 2026, 2027 and 2028, with an option to renew for Fiscal Years ending June 30, 2029, and 2030, at the sole discretion of the City.

Statement of Understanding
Our Firm’s understanding of the scope of services is as follows:
• Perform an audit and render an auditor's report on the Basic Financial Statements of the City and its component units in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.
− As part of our audit, we will render a report on the basic financial statements, which will include the Government-Wide Financial Statements, each major fund, and the aggregate remaining fund information of the City. We will also apply limited audit procedures to Management's Discussion and Analysis (MD&A) and Required Supplementary Information presented to supplement the basic financial statements. − We will render our auditor's report on the City's internal control over financial reporting and compliance with relevant laws and regulations, and other matters based on our audit of the financial statements.
− Prepare and word-process the City’s Annual Comprehensive Financial Report in accordance with the requirements of GASB and the most recent edition of GAAFR. • Issue a Management Letter that includes recommendations for improvements in internal control, accounting procedures, and other significant observations that are considered to be non-reportable conditions.
• Perform a Single Audit and render an auditor's report on the expenditures of federal grants in accordance with U.S. Office of Management and Budget Federal regulations entitled "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200" (the Uniform Guidance).
o We will issue our report on the City's Schedule of Expenditures of Federal Awards. #12..
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− We will render an opinion on the City's compliance with requirements applicable to each Major Program.
− We will render our report on the City's internal controls over the administration of Federal funds.
• Perform agreed-upon procedures pertaining to the City's GANN Limit and render a letter annually to the City regarding compliance.
• Perform separate audits and issue auditor’s reports on the financial statements of the following component units and joint ventures of the City:

1. Tuolumne River Regional Park

2. Thirteen (13) Community Facilities Districts

3. Ceres-Modesto Industrial Fire Protection Joint Powers Authority

4. Measure H Fund - One-cent local sales tax for general city services • Perform separate audits and issue auditor’s reports on the following State programs:

1. Local Transportation Funds - Streets and Roads and Non-motorized funds under Transportation Development Act

2. Abandoned Vehicle Abatement

3. Organized Retail Theft Program (ORTP) for the period October 1, 2023, through December 31, 2026
• Prepare the Annual State Controller's Report for the City. • Provide guidance on implementing new GASB and OMB requirements and specifics of Federal and State of California regulations pertaining to local government accounting. • Provide assistance to meet the requirements of the GFOA program, including preparing answers to all GFOA comments.
• Be available to perform other services as may be requested by the City, such as calculations or assisting with journals, advise the City on tax-related issues, and recommend a proper course of action.

Upon request and specifically after our audits, we will be pleased to make a presentation to the City Council, during which we will discuss our audit approach, scope, and results. We pride ourselves on our ability to convey complex information in an informative fashion, free of bias, such that Management and the City Council can evaluate the significance of the information and determine action plans as may be appropriate.

Management can be assured that our audits will be performed in accordance with the following:
• Generally accepted auditing standards in the United States of America. • The standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
• The provisions of the Single Audit Act and the OMB Uniform Guidance.

Why Vasquez?
Experienced Firm:
• Experienced in serving the financial and compliance needs of over 80 municipalities in California. • Experience assisting government agencies achieve the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting. #12..
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Experienced Leaders:
• Cristy A. Canieda, Vasquez Government Practice Leader, formerly with PwC, will lead our delivery of services to the City. She will direct and supervise the auditors in performing the engagement, review the audit results, and provide technical expertise as appropriate. • Roger Martinez, Vasquez Partner, formerly with KPMG, will act as the engagement quality control reviewer and objectively evaluate the engagement team's significant judgments and conclusions in formulating the auditor's report.

Information Technology Expertise:

Our audit approach includes an on-site and off-site review of the City's Information Technology (IT) general controls by IT professionals with more than 20 years of experience to assess whether the standards of security, integrity, continuity, and control are conducive to reliable processing, consistent with the City's technology standards and appropriate to safeguard your information assets.

Our Internal Control-Based Audit Approach:
• Our professionals, with extensive experience in performing financial and compliance audits of local municipalities and other public agencies in California, will bring an unbiased, fresh perspective to the City's systems, operations, and practices. Our experience will allow us to assess your risk and compare your existing policies and practices to those used by other efficient, reputable agencies.

We will focus on the critical areas of your operations. • Our audit approach is unique in evaluating and testing key internal accounting controls rather than merely performing substantive tests. This approach provides critically important information to City management about the effectiveness of its internal controls.

Communication with the City:
• We will hold regularly scheduled status meetings to keep you abreast of our progress. • We will provide you with meaningful status reports.
• We will take a proactive approach to develop practical solutions to identified challenges. • Team members, including the engagement and quality control partners, will be available yearround.

Addressing Critical Accounting Matters:

Recognizing that your interests are best served by highly qualified, knowledgeable, and trained accountants and auditors, we offer our staff and our clients:
• Frequent training in current technical matters and subjects of importance to local governments' finance, accounting, and auditing aspects, such as new GASB standards and OMB requirements. • Specifics of Federal and State of California regulations about local government accounting, reporting, and compliance.

Timeliness:
• We understand and appreciate the importance of adhering to agreed-upon timelines and meeting deadlines.
• We structure our audit approach to recognize issues early, plan for the orderly completion of our work, and avoid end-of-audit surprises.
• We commit to performing the work within the agreed timeframe. #12..
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New GASB Pronouncement Experience:
• Our team has assisted clients in adopting applicable Governmental Accounting Standards Board (GASB) statements.
• Our firm assists clients in assessing their readiness to implement the new standards and guiding them through the implementation.

Providing an Effective and Efficient Audit:

Our risk-based approach, high-caliber management team, and experienced staff ensure that critical issues are not overlooked but promptly identified, communicated to you, and resolved to the City's satisfaction.

Affirmations:
• Vasquez commits to performing the work within the timeline provided and agreed to by the City. • The proposal is valid for a period of one hundred twenty (120) days after the dates set for the opening.

Vasquez is committed to providing the City with the highest customer service, and we trust that you will find us qualified to provide the City with professional financial statement auditing services. If you have any questions or need further assistance, please call me using the contact information below. I, Cristy A. Canieda, Partner with Vasquez, am entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with the City.

VASQUEZ & COMPANY LLP
Cristy A. Canieda, Partner – Government Practice Leader 655 N. Central Avenue, Suite 1550
Glendale, CA 91203
Tel.: 213-873-1720
Email: [email protected]
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 5
Independence
Vasquez meets the independence requirements of the auditing standards generally accepted in the United States of America and the Government Auditing Standards, published by the United States General Accounting Office ("Yellow Book") as it relates to the City and its component units.

Conflict of Interest
Vasquez was hired as the City’s independent auditor for the fiscal years ending June 30, 2023, 2024 and 2025. While we perform external auditing services for the City of Modesto, our conflict identification process found no interests or relationships that would be deemed adversarial to the City or any of its component units for the past five (5) years.

AICPA Government Audit Quality Center
Vasquez is an AICPA Governmental Audit Quality Center (GAQC) member. Membership in the AICPA GAQC demonstrates our commitment to quality in the performance of governmental audits. Leveraging the Center's benefits enables us to access resources designed to enhance audit quality and apply audit best practices.

Quality Control
Vasquez has an extensive quality control program designed to monitor compliance with audit and accounting professional standards and firm policies. Our client service approach requires the active involvement of experienced partners and managers in the consulting and audit engagements to ensure that critical issues are identified and resolved on a timely basis.

Performance Monitoring and Assessment
The objective of the engagement performance element of our quality control is to provide reasonable assurance that:
• Engagements are consistently performed in accordance with applicable professional standards and regulatory and legal requirements,
• Our firm or engagement partner issues reports that are appropriate in the circumstances.

Policies and procedures for engagement performance address all phases of the design and execution of the engagement, including engagement performance, supervision responsibilities, and review responsibilities. Policies and procedures require that consultation take place when appropriate. Also, our firm has established criteria against which all engagements are to be evaluated to determine whether an engagement quality control review should be performed.

We satisfy the above objectives by establishing and maintaining the following policies and procedures:
• Planning for engagements meets professional, regulatory, and firm requirements. • Qualified engagement team members review work performed by other team members on a timely basis.
• Vasquez establishes procedures addressing the nature, timing, extent, and documentation of the engagement quality control review.
• Vasquez establishes criteria for the eligibility of engagement quality control reviewers. • Vasquez requires that consultation take place when appropriate; that sufficient and appropriate resources are available to enable appropriate consultation to take place; that all the relevant facts known to the engagement team are provided to those consulted; that the nature, scope, and conclusions of such consultations are documented; and that conclusions resulting from such consultations are implemented.
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 6
Management follow-up procedure internally called "Voice of the Client" to set the tone of "how we did" and "where we can improve."
License to Practice in California
Vasquez is licensed to conduct public accounting in California. All "key" engagement team members are properly licensed Certified Public Accountants in California. Vasquez certifies that it will inform the City of any suspension, termination, lapse, non-renewals, or restrictions of its licenses, certificates, or other required documents upon notification.

DCA - Search Details
Firm Qualifications and Experience
Vasquez and Company LLP is a Limited Liability Partnership established in 1969 and registered with the State of California Department of Consumer Affairs, with over 55 years of experience in performing financial, compliance, and performance audits, internal control reviews, fraud investigations, and risk assessments of government agencies. Our specialists also have technical expertise in transportation compliance, construction contracts and leasing, affordable housing, HUD-funded low-income housing, and local governance.

As a regional firm with former partners and managers with international accounting firms, we offer a superior service characterized by timely, personalized attention. Our professionals deliver innovative yet practical solutions that help clients gain a competitive advantage. The following represents a partial list of benefits that would be available to the City as a client of the firm:
• Specialty and expertise in financial, compliance, internal, and performance audits, • Knowledge of Government "best practices"
• Extensive partner involvement,
• Routine consultation throughout the year,
• Cutting-edge technology is utilized to minimize audit costs for you, • Quality assurance built into all aspects of the engagement, from staffing to planning, execution, and reporting.

Firm Resources
Since its inception, Vasquez has focused on serving governmental entities. As a result, the government industry comprises the largest portion of the industries we serve today.

Category #
Partners 7
Directors 9
Sr. Managers/Manager 19
Supervisors 18
Senior Auditors 69
Staff Auditors 48
Professionals 170
Administrators 35
Total 205
Government Practice Group
The Vasquez Government Practice Group comprises over 150 professionals trained and experienced in serving government entities, specializing in California cities, municipal water, transportation, education, and other special districts.

The Vasquez Government Practice Group comprises professionals from international accounting firms seeking to focus on their chosen industry – mainly government and nonprofit – and work with greater #12..
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Proposal to No. RFP-00018 External Auditing Services 7
autonomy in a progressive, agile, and client-centric environment. The Vasquez leadership consists of seven (7) partners, each previously working with one or more global accounting firms. This experience emphasizes quality, innovation, performance standards, opportunity, discipline, and professional growth.

Office Locations
We will serve the City from our Headquarters in Glendale, CA. This engagement will be led by one partner, one quality control partner, one senior audit manager, one IT audit manager, and supporting staff.

Headquarters
655 N. Central
Avenue, Suite 1550
Glendale, CA 91203
t) 213-873-1700
f) 213-873-1777
Fresno
1444 Fulton Street
Fresno, CA 93721
t) 559-663-0213
Irvine
7545 Irvine Center Dr.,
Suite 200
Irvine, CA 92618
t) 949-623-8798
Las Vegas
3753 Howard Hughes
Parkway Paradise, Unit
200
Las Vegas, NV 89169
t) 702-784-7644
Manila
29F Rufino Tower
6784 Ayala Avenue
Makati City, 1226
Philippines
Phoenix
Two North Central
Avenue, Suite 1800
Phoenix, AZ 85004
t) 602-759-7319
Sacramento
1215 K Street
17th Floor
Sacramento, CA 95814
t) 916-503-3269
f) 916-503-2401
San Diego
333 H Street
Suite 5000
Chula Vista, CA 91910
t) 619-254-6605
f) 213-873-1777
The selected team members will be assigned to the engagement on a full-time basis and will remain on the team for the duration of the engagement.

Joint Venture or Consortium
Vasquez is not a joint venture or consortium.

Peer Review
Vasquez is a member of the AICPA Division of Firms and received a Peer Review Rating of "Pass" without comment - the highest rating from the AICPA on its peer review dated May 5, 2023. This peer review covered several government engagements similar in size and complexity to the City. A copy of the peer review opinion follows:
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 8
Federal or State Desk or Field Reviews/Disciplinary Actions As a mid-size firm with hundreds of clients, Vasquez works with regulatory agencies on a regular basis.

Vasquez has not had any disciplinary action taken against the firm during the past three (3) years with state regulatory bodies or professional organizations, nor any pending or settled litigation within the past three (3) years.

Range of Services
Vasquez is a full-service firm focused on serving government agencies and other nonprofit organizations.

Below is a graph of the different lines of business and service areas.

Government Experience
Vasquez provides audit services to approximately 100 government agencies on an annual basis. Our audits are performed in accordance with auditing standards generally accepted in the United States, Government Auditing Standards, OMB Uniform Guidance, and the Office of the State Controller's Minimum Audit Requirements and Reporting Guidelines for California Special Districts (when applicable).

GFOA Client Awardees
Vasquez professionals are acknowledged experts on GAGAS regulations and GASB reporting requirements. In addition, we have substantial experience in preparing Annual Comprehensive Financial Reports that have assisted our clients in achieving the Government Finance Officers Association Award for Excellence in Financial Reporting.

Cristy A. Canieda, Vasquez Government Practice Leader, is a reviewer for the Government Finance Officers Association. The following is a representative list of Vasquez government client engagements we have assisted in achieving their Certificate of Achievement for Excellence in Financial Reporting. • City of Baldwin Park
• City of Carson
• City of Culver City
• City of El Monte
• City of Modesto
• City of Simi Valley
• City of Torrance
• City of Moreno Valley
• City of El Monte
• United Water Conservation District
• San Joaquin Regional Transit District
• Water Replenishment District of Southern California
• Upper San Gabriel Valley Municipal Water District
• Victor Valley Wastewater Reclamation Authority
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Proposal to No. RFP-00018 External Auditing Services 9
• City of Norwalk
• City of West Hollywood
• City of San Fernando
• Encina Wastewater Authority
• Santa Clara Valley Water District
GASB Pronouncements
Our firm encourages the early adoption of all applicable Governmental Accounting Standards Board (GASB) statements. Some of these standards have been monumental in establishing new financial reporting requirements for state and local governments throughout the United States and have restructured much of the information presented in the past.

Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
We have proposed an engagement team with substantial experience in auditing governmental entities for both financial and compliance audits for the City. Our industry-focused staff has undergone training courses dedicated to governmental accounting, auditing, and financial reporting, and specialized training in the compliance requirements of OMB Uniform Guidance regarding changes in Single Audit requirements. In addition, our partners have conducted training for professional organizations on Uniform Guidance.

Performance Improvement Observations
Providing value-added management letter comments is a priority for Vasquez. Our auditors/consultants' unique experience enables us to provide meaningful assistance beyond what most audit firms can provide.

We do this through many different forms, but it comes primarily in identifying issues before becoming major problems for our clients. In addition, we meet with our clients throughout the year to better understand their challenges. As a result, our clients have realized many benefits, including improved operational efficiencies, security, and proactive prevention of potential future audit issues.

Transportation Development Act, Local Transportation Fund, and State Transit Assistance Expertise Our knowledge of federal and state grants related to public transit is evidenced by our conduct of financial statement audits for the San Bernardino County Transportation Authority’s member agencies which consist of, the Victor Valley Transit Authority, Mountain Area Regional Transit Authority, Morongo Basin Transit Authority, Omnitrans, Santa Barbara Metropolitan Transit District, and others. Our audits of basic financial statements for transportation agencies adhere to the statutes of each applicable funding source and operating data used to allocate funds, which are to be fair and in accordance with Federal Transportation Authority guidelines.

List of Local Government Clients
Vasquez performs numerous financial and compliance audits of governmental organizations. These audits include risk assessments conducted pursuant to a structured approach based on the standards outlined in the COSO Principles.

Our audits are performed in accordance with auditing standards generally accepted in the United States, Government Auditing Standards, OMB Uniform Guidance, and the Office of the State Controller's Minimum Audit Requirements and Reporting Guidelines for California Special Districts (when applicable). The list of clients that Vasquez served in the past as well as clients that we currently serve is as follows:

Clients
City of Agoura Hills City of Malibu Desert Water Agency City of Alhambra City of Maywood Encina Wastewater Authority City of Antelope Valley City of Modesto Hidden Valley Municipal Water District #12..
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Proposal to No. RFP-00018 External Auditing Services 10 Clients
City of Arcadia City of Montebello Imperial County Transportation Commission
City of Avalon City of Irwindale Los Angeles County Metropolitan Transportation Authority
City of Artesia City of La Puente Metropolitan Water District of Southern California
City of Azusa City of Monterey Park Moulton Niguel Water District City of Baldwin Park City of Moreno Valley Municipal Water District of Orange County
City of Bell City of Needles Needles Public Utility Authority City of Bell Gardens City of Norwalk Orange County Sanitation District City of Beverly Hills City of Palos Verdes Estates Plumas County Transportation Commission
City of Calabasas City of Pico Rivera Pomona Valley Transportation Authority
City of Carson City of Pomona Port of Long Beach
City of Commerce City of Rosemead Santa Barbara Metropolitan Transit City of Compton City of San Fernando San Bernardino County Transportation Authority
City of Covina City of Santa Fe Springs Santa Clara Valley Water District City of Cudahy City of Santa Monica San Gabriel Basin Water Quality Authority
City of Culver City City of Simi Valley San Gabriel Valley Council of Governments
City of Diamond Bar City of South El Monte San Joaquin Regional Transit District City of Downey City of South Gate Southern California Association of Governments
City of El Monte City of Torrance Southern California Regional Rail Authority
City of Hawthorne City of Vernon SunLine Transit Agency City of Hidden Hills City of Walnut United Water Conservation District City of Huntington Park City of West Hollywood Upper San Gabriel Valley Municipal Water District
City of Industry City of Westlake Victor Valley Wastewater Reclamation Authority City of Inglewood Alameda Corridor-East
Construction Authority
City of Lawndale Antelope Valley Transit
Authority Water Replenishment District of
Southern California City of Long Beach California American Water #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 11 Partner, Supervisory and Staff Qualifications and Experience Our senior engagement team members are responsible for ensuring the delivery of quality work. They will engage in regularly scheduled meetings with you, answer questions, provide guidance, and help ensure issues are identified and resolved promptly.

Vasquez has built its reputation on close partner involvement and strong client relationships. However, the ultimate success of our client relationships is largely attributable to one key component – our people. Our engagement teams are structured with extensive partner involvement. As a result, our average partner-to-staff leverage ratio is higher than most other firms. As a result, our budgeted hours include higher partner involvement than what you may have experienced in the past.

Beyond partner leadership and support, an audit is only as good as the people doing the bulk of the work daily. Therefore, we are committed to providing a staff resource pool that embodies the attributes you expect of your auditor, including technical expertise in GASB, knowledge of government and utility industries, and soft skills such as respect, empathy, and timely response to questions.

Continuing Professional Education Program
To ensure that our professional staff remains up to date on the latest audit and accounting developments and meets the requirements for maintaining active licensure in good standing, we see that our professional staff receives the required number of CPE hours within the established period. Vasquez also conducts inhouse seminars for the professional staff.

Our team is held to a high standard of quality; we offer the following CPE Programs for our staff:
• Continuing Education courses provided by the American Institute of Certified Public Accountants (AICPA), which the firm sponsors live and in-house for its staff and clients, are conducted by highly qualified professionals from the AICPA and the California CPA Education Foundation. • Attendance at conferences and seminars related to government accounting sponsored by:
− Government Finance Officers Association
− Association of Local Government Auditors and the
− California Society of Municipal Finance Officers
Staff Continuity
Vasquez will not replace key management personnel unless circumstances beyond our control occur (e.g., personnel leaving the firm). Changes to the designated project team for other reasons shall not be made without the prior written approval of the City. Each person to be assigned to the engagement has been chosen for their ability to repeat future years' engagements.

Engagement Team
All "key" engagement team members are properly licensed Certified Public Accountants in California. A synopsis of the team members and their respective roles, followed by their resumes, is as follows:
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Proposal to No. RFP-00018 External Auditing Services 12 Team Member Role
Cristy Canieda, CPA, CGMA
Partner
Cristy Canieda, Vasquez Government Practice Leader, with over thirty (30) years of public accounting experience, will lead the service delivery team and supervise the auditors in performing the audit engagement and provide technical assistance as
appropriate.

Cristy oversees the firm's municipal audit engagements and serves as a Technical Reviewer for the GFOA Certificate of Excellence in Financial Reporting Program. Cristy’s municipal experience includes, among others, the City of Modesto, Baldwin Park, Carson, Norwalk, Culver City, West Hollywood, El Monte, Lynwood, San Fernando, Moreno Valley, Hawthorne, and the City of Torrance.

Roger Martinez, CPA
Quality Control Partner
Roger Martinez, Vasquez Partner, with over twenty-five (25) years of public accounting experience, will be responsible for the technical reviewer for the engagement and will work closely with the Lead Partner to review and evaluate the audit fieldwork and reports.

Roger’s experience includes the City of Long Beach, the City of Vernon, the City of Norwalk, and the City of La Puente.

Rhoda Dollaga, CPA
Senior Audit Manager
Rhoda Dollaga, Vasquez Senior Audit Manager with eight (8) years of public accounting experience, will work closely with the Partner to plan, coordinate, and review the fieldwork for the City’s annual financial and compliance audits. In addition, she will supervise the day-to-day activities and task accomplishments, monitor progress, and ensure schedule compliance.

Rhoda’s experience includes the City of Modesto, City of Baldwin Park, City of Cudahy, City of El Monte, City of Long Beach, City of Montebello, City of Simi Valley, City of West Hollywood, City of Norwalk, City of Lynwood, and the City of Vernon.

Jason Tagasa, CISA
IT Manager
Jason Tagasa, Vasquez IT Manager, formerly with EY, with over ten (10) years of experience in IT consulting and auditing, will perform audit procedures pertaining to the City's financial systems and Information Technology.

Jason's IT risk-based controls assessment approach for evaluating and testing internal controls provides added assurance to management and the Governing Board.
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 13 Areas of Expertise
Cristy’s areas of expertise include overseeing all aspects of financial and compliance audits including internal control reviews and Single Audits performed in accordance with Office of Management and Budget Federal Uniform Guidance, program specific audits, financial statement reviews, forecasts and projections to government agencies; preparation of comprehensive annual financial reports, State Controller’s reports.

Prior Experience
• City of Baldwin Park
• City of Carson
• City of Culver City
• City of El Monte
• City of Hawthorne
• City of Huntington Park
• City of Long Beach
• City of Lynwood
• City of Montebello
• City of Moreno Valley
• City of Norwalk
• City of Pico Rivera
• City of Simi Valley
• City of Torrance
• City of West Hollywood
• Coachella Valley Association of Governments
• Community Development Commission of Los Angeles County • Imperial County Local Transportation Authority
• Jurupa Community Special District
• La Habra Heights Water District
• La Puente Valley County Water District
• Los Angeles Community College District
• Los Angeles County Metropolitan Transportation Authority • Orange County Water District
• Rancho California Water District
• San Gabriel Valley Council of Governments
• Southern California Association of Governments
• SunLine Transit Agency
• Upper San Gabriel Valley Municipal Water District
• Water Replenishment District of Southern California
Professional Background and Affiliations
Cristy’s professional background includes Diehl, Evans & Company and Audit Manager and Manager, Tech.

Standards and Continuing Education with PwC. She is a Certified Public Accountant licensed to practice in the State of California.

Educational Background
Cristy received her Bachelor of Science in Accountancy and Associate in Government Auditing from Enverga University and her Master’s in Business Administration from Ateneo Graduate School of Business.

She remains current on accounting matters by attending conferences and continuing education courses which are heavily focused on subjects applicable to governmental accounting and financial reporting, as well as federal and state regulatory matters and auditing requirements. She maintains compliance with the continuing education requirements of the AICPA and the California Board of Accountancy.

CRISTY A. CANIEDA, CPA, CGMA
Partner, Government Practice Leader
Vasquez & Company LLP
655 N. Central Avenue, Suite 1550
Glendale, CA 91203
Tel: 213-873-1720
Email: [email protected]
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 14 Continuing Professional Education
Following are relevant continuing professional education courses completed by Cristy A. Canieda in the past three (3) years:

Course Title Subject Code Date
2025 Government and Nonprofit Accounting Updates Seminar GV 06/10/25 2025 GAQC Annual Required Webcast AA 05/08/25
BDO Alliance Conference AA 5/4/2025-
5/7/2025
CalCPA Annual Governmental Accounting and Auditing Conference GV 4/23/2025 4/24/2025
2025 CSMFO Conference AA 2/18/2025-
2/21/2025
AICPA Townhall Series AA 01/30/2025
GAQC 2025 Single Audit Lightning Round AA 01/28/25
Comon Quality Issues in State and Local Government Financial Statement Audits GV 10/24/24
Public Sector: Auditing Alternative Investments AA 06/19/24 State and Local Government: Review of New Audit Templates AA 04/02/24 Audit Documentation AA 03/01/24
2024 Government & Nonprofit Updates AA 02/15/24
RSM Audit Methodology Refresher AA 02/09/24
2024 CSMFO Conference AA 1/30/24-2/1/24
Fraud Auditing and Investigation Fraud 01/27/2024
Ethics for California CPAs Ethics 01/21/2024
Audit Year End Audit Alert AA 12/12/2023
Accounting and Auditing for Lessors under ASC 842, Leases AA 10/19/2023 Q3 State and Local Governments A&A Updates – 2023 GV 10/10/2023 Government Audit Reviewers' Training GV 09/14/2023
Audit Year-End Alert AA 12/01/2022
En Route to Govt Season GV 08/24/2022
08/26/2022
Q2 Update AA 07/21/2022
State & Local A&A Update AA 07/13/2022
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 15

Areas of Expertise
Roger’s areas of expertise overseeing all aspects of financial and compliance audits including internal control reviews and Single Audits performed in accordance with Office of Management and Budget Uniform Guidance, program-specific audits, financial statement reviews, and forecasts to government agencies.

Representation of Experience
• City of Long Beach
• City of Vernon
• City of Adelanto
• City of Cudahy
• City of El Monte
• City of Huntington Park
• City of Norwalk
• City of La Puente
• University of California System
• Alameda Corridor – East
Construction Authority
• Alameda Corridor Transportation
Authority
• California State University
System
• California State Teachers’ Retirement System
• California State Treasurer’s Office
• Los Angeles County Employees Retirement Association
• Los Angeles County Metropolitan Transportation Authority • Los Angeles Unified School District
• Los Angeles Water and Power
• Los Angeles World Airports
• Los Angeles Community College District
• Metropolitan Water District of Southern California
• Port of Los Angeles
• San Gabriel Valley Council of Governments
• San Gabriel Basin Water Quality Authority
• San Joaquin Transit Agency
• Southern California Regional Rail Authority
• SunLine Transit Agency
Professional Background and Affiliations
Roger is a member of the American Institute of Certified Public Accountants, the California Society of Certified Public Accountants, the Los Angeles Chamber of Commerce, and the Association of Latino Professionals in Finance and Accounting. He has held many board memberships with private companies and nonprofit organizations. He is currently on the Advisory Board for the Salvation Army and Los Angeles County Medical Association.

Educational Background
Roger received his Bachelor of Arts, Major in Economics and Minor in Accounting from the University of California, Los Angeles. He remains current on accounting matters by attending conferences and continuing education courses applicable to governmental accounting and financial reporting, as well as federal and state regulatory matters and auditing requirements. He maintains compliance with the continuing education requirements of the AICPA and the California Board of Accountancy.

ROGER A. MARTINEZ, CPA
Partner, Audit Practice Leader
Vasquez & Company LLP
Tel: 213-873-1703
Email: [email protected]
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 16 Continuing Professional Education
Following are relevant continuing professional education courses completed by Roger A. Martinez in the past three (3) years:

Course Title Subject Code Date
2025 Government and Nonprofit Accounting Updates Seminar GV 06/10/25 Annual GASB Update AA 05/06/2025
Annual Yellow Book Update AA 05/06/2025
Annual Single Audit Update AA 05/06/2025
ASC 740 Update AA 05/06/2025
For-Profit Entities With Federal Funding GV 03/12/2025
Refresher on Test Controls Training AA 03/11/2025
Q1 2025 Quarterly Sustainability Webcast A 03/05/2025
Navigating Business Interruption Claims AA 12/09/2024
AICPA & CIMA Portfolio Valuation Forum AA 06/13/2024
PwC's Q1 2024 Quarterly Accounting Webcast AA 03/13/2024 Audit Documentation Refresher AA 03/01/2024
2024 Government and Nonprofit Updates Training AA 02/15/2024 Charting the Course: Board governance in 2024 and beyond AA 02/1/2024 Materiality in Planning a Governmental Audit GV 06/29/2023 Introduction to Governmental Audit and Accounting Issues GV 06/28/2023 Governmental Funds and Proprietary Funds (Yellow Book Compliant GV 06/28/2023 Following the Money - How COVID-19 Transformed Fraud Response GV 11/17/2022 2022 Annual Required GAQC Webcast GV 11/09/2022
Quarterly Accounting Webcast Series - Fall 2022 AA 10/13/2022 What Federal Agencies are Finding in Single Audit QCRs GV 10/12/2022 Cybersecurity - Risks and Mitigating Solutions OT 10/02/2022 Quarterly Accounting Update - Summer 2022 AA 07/14/2022 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 17 Area of Expertise
Rhoda’s practice is focused on participation in all aspects of financial and compliance audits, including internal control reviews, Single Audits performed in accordance with Office of Management and Budget Uniform Guidance, program-specific audits, indirect cost plan, and preparation of annual comprehensive financial reports and State Controller’s reports.

Representation of Experience
• City of Baldwin Park
• City of Cudahy
• City of El Monte
• City of Long Beach
• City of Modesto
• City of Montebello
• City of Norwalk
• City of Palos Verdes Estates
• City of San Fernando
• City of Simi Valley
• City of South El Monte
• City of Vernon
• City of West Hollywood
• Los Angeles Community College District
• San Gabriel Basin Water Quality Authority
• Water Replenishment District of Southern California
Educational Background
Rhoda received her Bachelor of Science in Accounting from the University of the East. She remains current on accounting matters by attending conferences and continuing education courses focused on governmental accounting and financial reporting, federal and state regulatory matters, and auditing requirements. She has maintained compliance with the continuing education requirements of the AICPA and the California Board of Accountancy.

RHODA DOLLAGA, CPA
Audit Senior Manager
Vasquez & Company LLP

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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 18 Continuing Professional Education
Following are relevant continuing professional education courses completed by Rhoda Dollaga in the past three (3) years:

Course Title Subject Code Date
2025 Government and Nonprofit Accounting Updates Seminar GV 06/10/25 Compliance – Evaluation of Risk and Performing Test Controls (60816) GV 05/21/2025 Group Audits of State & Local Government Entities (62570) GV 05/13/2025 2025 Annual Required GAQC Webcast GV 05/08/2025
Q1 State Local Governments A&A Updates – 2024 (61147) GV 05/06/2025 CSMFO Annual Conference 2025 GV 02/21/2025
Q4 Quarterly Accounting Update – Winter 2025 (45631) GV 01/08/2025 Q4 Not-for-Profit A&A Updates – 2024 (61547) GV 01/07/2025 Q4 State Local Governments A&A Updates – 2024 (61558) GV 01/06/2025 Common Quality Issues in State and Local Government Financial Statement Audits GV 10/24/2024
Q3 State Local Governments A&A Updates – 2024 (61557) GV 10/14/2024 Q2 State Local Governments A&A Updates – 2024 GV 09/16/2024 IT Application for Single Audit GV 08/23/2024
Government Training GV 08/15/2024
GASB: The New Financial Reporting Model (61551) GV 06/25/2024 Compliance- Results of Test and Reporting (60817) GV 05/29/2024 Compliance Testing (60818) GV 05/21/2024
Compliance- Evaluation of Risk and Performing Test of Controls (60816) GV 05/14/2024 Q1 State Local Governments A&A Updates - 2024 (61555) GV 05/13/2024 SLG: Review of New Audit Templates (61553) AA 04/02/2024 PwC's Q1 2024 Quarterly accounting webcast AA 03/19/2024 Vasquez & Company LLP: RSM Audit Documentation Refresher AA 03/01/2024 Vasquez & Company LLP: RSM Audit Sampling Refresher AA 02/21/2024 2024 Government and Nonprofit Accounting Updates Training AA 02/15/2024 CSMFO Annual Conference 2024 AA 02/02/2024
GOV Orb – Just the FAQs AA 01/05/2024
Q4 State Local Governments A&A Updates - 2023 AA 01/04/2024 Q3 Audit Update 2023 AA 10/24/2023
Accounting & Auditing for Lessors under ASC 842, Leases AA 10/19/2023 SLG Pension and OPEB Audit Issues GV 10/09/2023
Ethics for California CPAs E 09/02/2023
Fraud Prevention F 09/01/2023
Stopping Fraud Before It Stops You F 05/23/2023
Year in Washington, D.C.: Federal Updates T 05/23/2023
Up in the Air: Accounting for Subscription-Based IT GV 05/23/2023 Common Errors from GFOA's Certificate of Achievement Program GV 05/22/2023 Accounting and Auditing Year in Review GV 05/22/2023
Fiduciary Activities GV 05/21/2023
Without You Here: Accounting for Compensated Absences GV 05/21/2023 2023 State and Local Government Audit Planning Considerations GV 05/18/2023 Q1 State Local Governments A&A Updates – 2023 GV 05/16/2023 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 19 Area of Expertise
Jason’s practice is focused on participating in internal audit, compliance, IT risk assurance and financial auditing engagements. He is skilled at audits of various mobile, network and infrastructure systems, databases, ERP applications and data management systems. • IT Risk Assessment
• Internal controls assessment and optimization
• Business Process and Operations Review
• SOC Reports
• Regulatory guidance and compliance (SOX)
• Project and Program Management
• Disaster recovery and business continuity
• IT Security and vulnerability assessments
• Internal Audit Support
Professional Background and Affiliations
Jason’s professional background includes IT senior auditor with EY. He is a Certified Information Systems Auditor (CISA).

Representation of Experience
• City of Carson
• City of Culver City
• City of El Monte
• City of Modesto
• City of Norwalk
• City of Palos Verdes
• City of Simi Valley
• City of Torrance
• City of West Hollywood
• City of Needles
Educational Background
Jason received his Bachelor of Science in Accounting from the University of Santo Tomas. He remains current on accounting matters by attending conferences and continuing education courses which are focused on information systems and financial reporting, as well as federal and state regulatory matters and auditing requirements.

JASON TAGASA, CISA
I.T. Manager
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 20 Continuing Professional Education
Following are relevant continuing professional education courses completed by Jason Tagasa in the past three (3) years:

Course Title Subject Code Date
2025 Government and Nonprofit Accounting Updates Seminar GV 06/10/25 Group Audits of State & Local Government Entities (62570) GV 05/13/2025 Q1 Not-for-Profit A&A update - 2025 (61570) GV 04/15/2025 Refresher on Test of Controls Training AA 03/11/2025
Ethics for California CPAs AA 02/24/2025
Q1 Audit Update 2024 (45164) AA 05/15/2024
Compliance- Evaluation of Risk and Performing Test of Controls (60816) Training
AA
05/14/2024
Q1 State Local Governments A&A Updates - 2024 (61555) AA 05/13/2024 Compliance- Understanding/Documenting Internal Controls (60815), AA 05/07/2024 Audit Documentation Refresher AA 03/01/2024
Audit Sampling Refresher AA 02/21/2024
2024 Government and Nonprofit Updates Training AA 02/15/2024 Audit Methodology Refresher AA 02/09/2024
GFOA Best Practices Help You Implement and Monitor Your Internal Controls
GV
02/01/2024
Rethinking Financial Reporting GV 02/01/2024
GASB update - Recently Issued Pronouncements GV 02/01/2024 Comparison of IFRS to U.S. GAAP-2023 (48627) AA 9/26/2023 Comparison of IFRS to U.S. GAAP-2023 (48627) AA 9/26/2023 Control Testing for Financial Statements of State and Local Governments (62564)
AA
8/8/2023
Control Testing for Financial Statements of State and Local Governments (62564)
AA
8/8/2023
Testing State and Local Government Expenditures/Expenses When There are Multiple Opinion Units (62568)
AA
7/25/2023
Testing State and Local Government Expenditures/Expenses When There are Multiple Opinion Units (62568)
AA
7/25/2023
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 21 Subconsultants
Vasquez does not intend to use subconsultants to complete this engagement.

Prior Engagements with the City
Prior Engagement Project Description Engagement
Partners
City of Modesto
External Auditing Services
Principal Client Contact:

Cristy Canieda, CPA, CGMA
Tel: (213) 873-1720
City of Modesto
Accounting Services
(ACFR preparation)
Annual financial, compliance audit, Single Audit (Uniform Guidance), Transportation Development Act (TDA) audit,
Abandoned Vehicle Abatement (AVA) audit, GANN Limit,
Measure H audit, Community Facilities Districts audits, State Controller's Report. Audits of the following joint powers agencies - Tuolumne River Regional Park and
Modesto-Ceres Fire Protection Agency. GFOA Award.

Total Staff Hours: approximately 1,700
Client from: FY 2023 to present
Location of the Firm’s office: Glendale, CA
Total Staff Hours: approx. 100 hours
Client from: FY 2024 to present
Location of the Firm’s office: Manila, Philippines
C. Canieda
Lead Partner
L. Narciso
QC Partner
Similar Engagements with Other Government Entities
Client Contact Engagement Description Engagement
Partners
City of Norwalk
12700 Norwalk Blvd
Norwalk, CA 90650
Jana Stuard,
Finance Director
[email protected]
(562) 929-5748
Annual financial and compliance audit, Single Audit
(Uniform Guidance), GANN Appropriation Limit, Transit
Fund Audit, Financing Authority audit, Childcare Program Audit, JPA audit, and Management letter. GFOA Award.
900 Hours
Year: FY 2022 to current
C. Canieda
Lead Partner
R. Martinez
QC Partner
City of Carson
701 Carson St b24
Carson, CA 90745
William Jefferson,
Finance Director
[email protected]
(310) 952-1700
Annual financial and compliance audit, Single Audit
(Uniform Guidance), State Controller's Report, AQMD
Fund audit, Measure W audit. GFOA Award. 900 Hours
Year: FY 2021 to current
C. Canieda
Lead Partner
L. Narciso
QC Partner
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 22 Client Contact Engagement Description Engagement
Partners
City of Torrance
3031 Torrance Blvd,
Torrance, CA 90503
Sheila Poisson,
Director of Finance
[email protected]
(310) 618-5854
Annual financial, compliance audit, Single Audit (Uniform Guidance), AQMD Fund audit. GFOA Award. 700 Hours
Year: FY 2021 to current
C. Canieda
Lead Partner
L. Narciso
QC Partner
City of Simi Valley
2929 Tapo Canyon Rd
Simi Valley, CA 93063
Marvin Lopez,
Assistant Finance Director
[email protected]
(805) 583-6803
Annual financial and compliance audit, Single Audit
(Uniform Guidance), GANN Appropriation Limit, Simi
Valley Library compliance, Public Service Center for
Sanitation and Waterworks compliance, Management
letter. GFOA Award. 600 Hours
Year: FY 2015 to current
L. Narciso
Lead Partner
C. Canieda
QC Partner
City of West Hollywood
8300 Santa Monica Blvd.,
West Hollywood, CA 90069
Karen Bareng
Accounting Manager
[email protected]
(323) 848-6825
Annual financial, compliance audit, Single Audit (Uniform Guidance), GANN Limit, State Controller’s Report. GFOA
Awards. 600 Hours
Year: 2021 to current
C. Canieda
Lead Partner
L. Narciso
QC Partner
Specific Audit Approach
As part of an audit engagement, we leverage a formal project management methodology to help ensure that all tasks are planned effectively and ultimately completed on time and that any changes in the schedule will be properly documented and authorized.

Embedded within your audit team are experienced project managers who have strong project management skills. These Vasquez team leaders will provide highly collaborative project management expertise and consultation to the City to ensure no surprises during the audit. Additionally, Vasquez will continuously look for ways to improve the management and execution of the audit. We want to ensure that audit planning, scheduling, and budgeting are executed properly and timely.

At each phase of our engagement, our client service standards guide us toward providing an exceptional customer experience – one in which we become a trusted adviser and bring innovative ideas and solutions that deliver value to you.
• We understand. Our audit and consulting professionals follow our CaseWare process, which provides a thorough
understanding of your business, current situation, needs, and expectations to ensure no surprises at each phase of the engagement.
• We communicate. Our team is trained to communicate with consistent and open dialogue at the right time to the right people. • We collaborate. We collaborate to bring together the right expertise to meet your needs, resolve emerging issues
proactively, and bring innovative ideas and solutions that deliver value to you.
• We deliver. We deliver what we promise – on time, on budget, and with the highest quality.
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 23 At Vasquez, we want to build strong relationships with our clients and continuously seek to understand ways to ensure that our services align with their needs. We believe it is important to strive for continuous improvement in interacting with and delivering services to clients. We do this, in part, by adhering to defined client service standards and seeking feedback on our performance from our clients.

Every financial statement audit engagement presents a different set of challenges. No two organizations are the same, and therefore, we must tailor the audit to each organization based on the specific risks identified.

Risk Assessment
The design of an effective audit plan depends on the audit team's ability to identify and assess the risk that the financial statements contain a material misstatement, whether caused by error or fraud. The risk assessment process will include:
• Obtaining an understanding of the City and the environment in which they operate. This includes efforts to understand the events, conditions, and organizational activities that might reasonably be expected to have a significant effect on the risks of material misstatement. An understanding of the City and the environment will often involve consideration of the regulatory environment, business objectives and strategies, and selection of an application of accounting principles. • Considering information gathered during the engagement acceptance and continuance evaluation, including prior reports, audit planning activities, previous audits, and other non-audit engagements performed for the City.
• Inquiring from the audit committee, management, and others within the City about risks of material misstatement.

Our audit approach is based on a risk assessment process which is planned and executed by experienced auditors. The results as depicted below form the basis for our audit strategy and procedures, and ultimately yield practical comments for strengthening internal controls and improving practices, as well as our opinion on the financial statements and our auditor’s reports on internal control and compliance with laws and regulations.
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 24 • Obtaining an understanding of the City's internal controls over financial reporting. • Performing analytical procedures, such as a comparison of the City's current financial statement account balances to prior year financial statements and budgeted amounts and/or comparison of current relevant financial ratios to industry ratios or prior year ratios.

Developing an Audit Strategy
In developing an audit strategy, we may decide to perform tests of the City's internal control over certain systems and processes. We assess the desirability of adopting such a strategy by considering cost/benefit considerations, the volume of transactions, and prior-year control testing results. If test results indicate that the City's internal controls are effective, we may decide to reduce the level of substantive tests that it performs as a basis for its opinion.

1. Proposed segmentation of the engagement
Phase I Phase II Phase III Phase IV
Audit
Planning
• Familiarize ourselves Completion
with operating
environment.
• Perform risk
assessment
procedures.
• Perform preliminary
analytical review.
• Identify major
programs for Single
Audit testing.
• Develop Audit Plan
• Discuss and agree on
financial statement
format.
• Reevaluate the
progress of the audit
and make any changes
on audit approach and
procedures, if
necessary.
• Advise City personnel
on new accounting and
auditing
pronouncements, if
needed.
• Provide SAS 114
Planning
Communication to
Audit Committee/City
Council,
• Assess internal control
environment.
• Perform IT Controls
testing and evaluation.
• Perform Fraud
evaluation procedures.
• Evaluate design and
implementation of key
controls.
• Test controls over
financial reporting and
administration of
federal funds.
• Identify internal control
strengths and
weaknesses.
• Draft internal control
management letter
comments.
• Draft auditor’s internal
control report (GAGAS
and Uniform
Guidance).
• Plan and perform
substantive audit
procedures,
including
confirmations,
vouching,
reconciliations,
inspections,
observations,
inquiring and
analytical
procedures.
• Perform substantive
compliance audit
tests over federal
and other programs.
• Conduct final
analytical review.
• Consider Audit
Evidence
Sufficiency.
• Conclude on critical
accounting matters.
• Perform completion
procedures.
• Perform overall evaluation
of the financial statements
and disclosures.
• Update and finalize
management letter.
• Perform Single Audit
administrative matters
(Data Collection
Form/Federal Audit
Clearinghouse)
• Conduct Exit Conference
with management,
including discussion of
proposed audit
adjustments, internal
control and compliance
findings and management
letter.
• Issue auditors’ reports and
management letter.
• Presentation of the audit
results to the those charged
with Governance.

Substantive
Testing Internal
Control
Evaluation
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 25 Phase I – Audit Planning
The planning phase lays the foundation for the direction of our audit efforts. It encompasses the following steps:
• Conducting entrance conferences with the appropriate City management personnel. The agenda would include, but need not be limited to, the following:
− The application of generally accepted accounting principles − Concerns of City management
− Report requirements, refinements, and deadlines
− Initial audit approach and timing schedule
− Assistance by City personnel
− Establishment of principal contacts
− Progress reporting process
− Consideration of Fraud in a Financial Statement Audit − The auditors' responsibility for fraud prevention
− Scheduling inquiries of management and others (including non-accounting personnel) about the risk of fraud
• We believe it is important for us to assist the City in implementing new accounting, auditing, and compliance requirements. It is for that reason we intend to schedule training with City personnel involved in all phases of the audit for them to have a clear understanding of the latest technical changes for their respective areas as well as have a clear understanding of the audit requirements and timeline.

Expanding our understanding of the City and its operating environments. We will accomplish this by familiarizing ourselves and updating our knowledge of applicable background information pertinent to the City, its component units, their mission, funding sources, and structure.

Through our background knowledge of the City and our fact-finding process, we will develop an in-depth understanding of the areas of concern. We will be able to meet with City management to discuss areas that might have a significant impact on the timing and completion of the audits or that may be of particular concern to management. We will review such areas in-depth to obtain an early understanding and resolution of any "problem" areas that may impede our progress and to develop our overall approach so that the City will have sufficient time to develop the data necessary for the completion of the audit with a minimum amount of disruption of the day-to-day routine.

Our planning process will include a specific review of computer activities performed by City personnel to:
• Determine the organizational and operational controls over the data being processed, including, but not limited to, system development and maintenance controls, hardware controls, and access controls.
• Evaluate the degree of "control consciousness" among personnel. • Determine the potential impact of general control strengths and weaknesses. • Consider the possibility of management override of controls.

Our principal sources of information for this review will be interviews with responsible accounting and computer operations personnel, reviews of program documentation for the City's system, and direct observations made by our audit team.
• The audit team will use our analytical review techniques to identify other areas that may require attention. Until the year-end account balances are finalized, our review will focus on budgets compared to actual/projected information. We can thus identify sensitive areas to determine whether they are indeed areas requiring extra attention. We will also focus on unusual fluctuations occurring within individual funds to identify accounts and areas that merit further investigation.

Based on our understanding of the City's operating environment, through our analytical review and other planning procedures, we will meet with City personnel to highlight areas to be emphasized #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 26 • during the audit. We will concentrate our efforts on the identified areas of audit concern and areas that we know to be important to City management. Some of our preliminary audit concerns are elaborated as follows:
− Compliance with applicable laws, regulations, and reporting requirements − Receipt of all revenue to which the City is entitled. − Purchase authorizations within budgetary limitations. − Adequate safeguarding of City cash, investments, and inventory assets. • We will work directly with the appropriate City personnel to discuss the financial statements and footnotes in accordance with all authoritative accounting systems and interpretations.

Accordingly, we will meet to discuss and agree upon the format for the individual and generalpurpose financial statements and any additional requirements that may be relevant because of recent or pending professional pronouncements. (See "Phase IV - Completion" for a more indepth discussion of our financial reporting capabilities.) Interim Audit Testing
Our audit approach is flexible and tailored to fit the City's evolving needs. We will work with you to review the current audit schedule to determine the best approach for the various phases of the financial statement audit. We provide you with the option of an interim audit effort or after year-end. There are several advantages to performing interim testing, such as:
• It shifts the timing of our testing into less busy periods of the year for your staff and our staff. • It allows us to focus on the high-risk areas before the year-end close, providing more time to deal with issues.
• It allows us to judge the quality of the interim period, rather than solely year-end, financial statement information, and cut-offs, which allows more opportunity for us to identify and for the City to implement best practices over internal controls and processes.

There are advantages to performing interim audit testing, and, as we stated previously, we will work with you to determine the best approach, and you will control this process.

Phase II – Control Evaluation
Understanding how key systems and processes contribute to your overall processing environment and affect the reliability of financial information is a primary element of our audit approach. Our objective is to assess whether the standards of security, integrity, continuity, and control are conducive to reliable processing, consistent with the City's technology standards, and appropriate to safeguard your information assets.

I.T. General Controls
I.T. General Controls are pervasive controls within the I.T. environment. The following types of I.T. General Controls are typically addressed in our audit approach:
• Logical security (access to programs and data)—includes the components of management governance over Information Technology (policies and procedures, monitoring), application configuration (passwords, service accounts, super users, user identification/authentication), and security of the physical assets.
• Change control management—assesses program changes (upgrades, service patches, source code) moved into the production environment, and the processes applied to ensure the appropriate initiation, authorization, segregation, testing, and approval are evident. • Data backup and recovery—reviews that the data backup process and ability to recover data for the financially significant applications, databases, spreadsheets, and operating systems for the given opinion period are complete, tested, and maintained, including the handling of errors. • Job processing—tests for the completeness of data interfacing into financially significant applications and the change management processes for handling errors, script changes, and interface edits.
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 27 • Security administration—addresses the user access provisioning (new hire onboarding, position/role changes, employee separation) for the financially significant applications, databases, spreadsheets, and operating systems, along with management's review of access for completeness, segregation of responsibilities, and accuracy.

I.T. Application Controls
I.T. Application Controls apply to the business processes they support. These controls are embedded within the software applications to prevent or detect unauthorized transactions. When combined with manual controls, application controls verify the completeness, accuracy, authorization, and validity of processing transactions. Our methodology for assessing application controls is as follows:
• Define materiality by the system, such as utility billing, cashiering, purchasing and disbursements, revenues, payroll, and asset management, using business process mapping as a starting point. • Map various transaction types to identify key controls and determine if the control is an application control or manual control.
• Utilize our proprietary questionnaires to help verify and test various automated controls. • Through inquiry, review of written policies and procedures, and on-site testing, evaluate application security controls, which are controls to verify that minimum access to applications is allowed for individuals to perform their job.
• Through inquiry, review of written policies and procedures, and on-site testing, evaluate input controls that ensure that transactions are initially recorded, entered, and accepted by the application accurately and completely.
• By developing and testing a sample of transactions, evaluate processing controls, which ensure that transactions are processed by the application programs accurately and completely. • Through inquiry and review of written policies and procedures, evaluate output controls, which ensure that output is complete and is delivered (standard or customized) to the appropriate parties in an appropriate manner.
• Through inquiry, review of written policies and procedures, and tests of a sample of transactions, evaluate interface controls, which ensure that transactions between multiple systems are secure, and integrity of the information transmitted is maintained, accurate and complete.

Phase III – Substantive Testing
Sampling is one of the methods we use to obtain efficiency in the audit process. In designing and implementing a sampling plan, we consider the specific audit objective to be achieved and determine that the audit procedures to be applied will achieve that objective. We will:
• Define the objective of the test.
• Define the population to be sampled, the population element to be examined (sampling unit), and what an error is.
• Determine which sampling technique is most appropriate. • Determine the appropriate sample size and select a sample intended to represent the population. • Examine each sample item to determine whether it represents an error or an exception.

Substantive Testing – The purpose of the substantive tests is to provide reasonable assurance of the validity of the information produced by the accounting system. These tests will include various detailed tests, such as inspection of underlying source documents, confirmations, and reconciliations. We will also perform analytical procedures, including ratio analysis, comparisons of actual-to-budget information, and other procedures. Specifically, tests that we have found to be effective and efficient for the City audits include confirmation of cash, investments, grants receivable, loan balances and debt, tests of subsequent receipts for selected receivables, and unrecorded liabilities for payables.

Out testing of IT application controls provides strong audit evidence and streamlines the audit process.
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 28 Consideration of Fraud – The primary responsibility for preventing and detecting fraud rests with those charged with governance and management. It is important that management, with the oversight of those charged with governance, places a strong emphasis on fraud prevention, which may reduce opportunities for fraud to occur, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment. This involves a commitment to creating a culture of honesty and ethical behavior, which can be reinforced by active oversight by those charged with governance. Oversight by those charged with governance includes considering the potential to override controls or other inappropriate influence over the financial reporting process.

We are responsible for obtaining reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. Accordingly, as part of our audit planning process, we will perform procedures to obtain information that will be used for identifying the risks of material misstatement due to fraud, such as the following:
• Discussions with management and others within the City. These discussions would focus on obtaining an understanding of management's: (a) assessment of the risk that the financial statements may be materially misstated due to fraud, including the nature, extent, and frequency. • of such assessments; (b) process for identifying, responding to, and monitoring the risks of fraud in the City, including any specific risks of fraud that management has identified or that have been brought to its attention, or classes of transactions, account balances, or disclosures for which a risk of fraud is likely to exist; (c) communication, if any, to those charged with governance regarding its processes for identifying and responding to the risks of fraud in the City; and (d) communication, if any, to employees regarding its views on business practices and ethical behavior. We will also make inquiries of management and others within the City as appropriate to determine whether they have knowledge of any actual, suspected, or alleged fraud affecting the City. • Discussions with those charged with governance. We will obtain an understanding of how those charged with governance exercise oversight of management's processes for identifying and responding to the risks of fraud in the City and the internal control that management has established to mitigate these risks.
• Evaluation of unusual or unexpected relationships identified. Unusual or unexpected relationships, variances, or balances that we may identify during our preliminary analytical review procedures will be evaluated for an indication of risks of material misstatement due to fraud. • Discussions among our audit team members. This discussion will involve exchanging ideas or brainstorming among our audit team members about how and where the City's financial statements might be susceptible to material misstatement due to fraud, how management could perpetrate and conceal fraudulent financial reporting, and how assets of the City could be misappropriated.

Adjusting Journal Entries – Adjusting journal entries proposed by our auditors, if any, will be discussed and explained to the Finance Director and others as appropriate. It is our practice to discuss issues and proposed audit entries with the program manager or management personnel immediately responsible for the program to ensure that we have not misunderstood that situation. This will ensure that the proposed entry or management comment and recommendation are accepted by the immediate manager and ensure that the recommendation is feasible and makes business sense. It is also our policy to address issues and resolve them as they arise rather than at the end of the audit. In short, there will not be any surprises.

Our work plan's final element is the regular reporting to City management personnel to apprise them of our progress. We believe communication is vital. Therefore, we have stressed the importance of continuous close relationships throughout this proposal and have indicated the various points we will meet for specific discussions and decisions.

Any and all potential exceptions or findings will be immediately discussed with knowledgeable personnel and summarized in weekly status meetings to ensure accuracy of any findings, time for management to correct noted deficiencies and the avoidance of any surprises. #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 29 Phase IV - Reporting
• Review federal, state, and other grant reporting requirements, • Determine which internal control findings are significant deficiencies or material weaknesses, • Prepare findings and draft the auditors' reports,
• Review draft reports with City management, and
• Evaluate management feedback and proposed corrective actions, make revisions as necessary, and finalize the report.

Ample time will be provided for management review of all reports in draft form.

Management Letter
After our audit, separate from any significant internal control deficiencies or items of noncompliance we may have identified and included in the respective auditors' reports, we will also provide our comments and observations for improvements to operating, accounting, and business practices. The diverse experience of our personnel and the fresh perspectives of our team members, combined with their independent and objective viewpoints, will likely yield valuable information. The findings and other comments will contain, as warranted and appropriate:
• Specific recommendations for improving accounting practices and procedures and the internal accounting and administrative controls.
• Comments on the design, controls, and audit trails of new and redesigned automated systems and suggestions to improve processing methods and procedures. • Suggestions for operational improvements or cost efficiencies noted during our examination. • Comments relative to ensuring compliance with the applicable laws, rules, and regulations, including Office of Management and Budget (OMB) and U.S. Government Accountability Office (GAO) guidance and regulations.
• Comments regarding the implementation of the new GASB pronouncements.

Other comments, recommendations, or observations regarding best practices that we believe may be of interest
Our Tools
Vasquez utilizes CaseWare electronic audit workpapers for a more efficient and intelligent audit process. CaseWare is also useful for financial analysis and reporting, including financial statement preparation.

To help manage the data flow for our testing, we utilize the Vasquez Citrix ShareFile, a secure and regulatory compliant tool, to manage the many requests more effectively and efficiently for information necessary to conduct an engagement of this size.

Office 365 provides access to Office applications, online productivity services, and business services such as web conferencing, hosted email, and online storage.

We use IDEA software to analyze data in unique ways and the audit sampling process.

DataSnipper allows us to conduct automated document matching, text recognition, and document review and management.
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 30

2. Level of staff and number of hours to be assigned to each proposed segment of the engagement

3. Sample size and the extent to which statistical sampling is to be used in the engagement.

Non-statistical sampling is most often employed in our internal control testing and compliance testing procedures during the Single Audit. The extent of testing and sampling depends on many factors, including environmental controls, the program's complexity, previous audit findings, changes in federal statutes, and the number of locations at which controls are administered. Our sampling plan will conform to the AICPA's guidance for testing compliance. The number of sample sizes will depend on the assessment of controls and the inherent risk of noncompliance in a major program.

4. Describe the type and extent of analytical procedures to be used in the engagement and how analytical information will be utilized in approaching the engagement.

5. Approach to be taken to gain and document an understanding of the City's internal control structure.

Analytical review techniques will be utilized to identify other areas that might require attention. Until the year-end account balances are finalized, our review will focus on budgets compared to actual/projected information. We can, thus, identify certain sensitive audit areas to determine whether they are indeed areas requiring extra attention. We will also focus on unusual fluctuations occurring within individual funds to identify accounts and areas that merit further investigation.

Personnel City ACFR
Tuolomne
River
Regional
Park (TRRP)
Local
Transportation
Fund – TDA
Community
Facilities District
(14 facilities in
FY25/26, 16
facilities in FY
26/27, up to 18
facilities in FY
27/28)
Ceres –
Modesto
Industrial Fire
Protection JPA Measure H
Abandoned
Vehicle
Abatement
(AVA)
State
Controller’s
Report –
City only
Organized Retail
Theft Program
(ORTP) – One
Time Audit on
FY 26/27
Review of
Popular
Annual
Financial
Report
(PAFR)
Single Audit
and
Management
Letter
City’s Annual
Comprehensive
Financial Report
(ACFR)
Preparation
Partners 40 2 2 28 2 2 2 0 10 2 5 5
Managers 87 4 4 30 4 8 8 5 47 0 20 20
Senior 200 4 4 30 4 8 0 0 50 0 40 15
Staff 456 40 30 290 40 52 32 60 55 0 132 35
Total 783 50 40 378 50 70 42 65 162 2 197 75
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 31 Based on our understanding of the City's operating environment, through our analytical review and other planning procedures, we will meet with the City personnel to highlight areas to be emphasized during the audit. We will concentrate our efforts on the identified areas of audit concern and areas we know are important to the City Officials. Some of our preliminary audit concerns are elaborated as follows:
• Compliance with applicable laws, regulations, and reporting requirements • All matters of compliance with GASB statements and interpretations • Receipt of all revenue to which the City is entitled. • Purchases are authorized and within budgetary limitations. • Encumbrances and liabilities are recorded and charged to proper budgetary accounts. • Proper accounting and disclosure of developer agreements and similar commitments • Proper accounting for capital assets, including infrastructure assets. • Proper recording of outstanding obligations

6. Approach to be taken in determining laws and regulations that will subject to audit test work.

An audit performed in accordance with Government Auditing Standards requires auditors to report on the City's internal control over financial reporting and on compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. Accordingly, we will test the City's compliance with certain regulations, such as compliance with budget preparation and budgetary requirements, investment reporting, and compliance with other contracts, such as bond covenants and grant agreements.

We will consider the requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award (Uniform Guidance) when performing all Single Audit test work.

This means we will coordinate the Single Audit testing of major federal programs with the testing of internal controls and systems in conjunction with the financial statement audit. Each major program requires a separate opinion on compliance with federal rules and regulations. The scope of our testing will be sufficient and specific enough to allow opinions on each of the City's major programs. In addition, we will perform risk assessment procedures, including:
• Review of prior years' reported findings
• Consideration of the extent of continuing or new personnel assigned to administer each major federal program.

7. Approach to be taken in drawing audit samples for purposes of tests of compliance.

The extent of testing and sampling depends on many factors, including environmental controls, the program's complexity, previous audit findings, changes in federal statutes, and the number of locations at which controls are administered. Our sampling plan will conform to the AICPA's guidance for testing compliance. However, the number of sample sizes will depend on assessing controls and the inherent risk of noncompliance in a major program.

Identification of Anticipated Potential Audit Problems
We do not expect any potential audit problems to arise. We tailor our services based on identified risks and address issues to meet the specific needs of our clients. We have implemented the following steps to prevent deliverability issues.

1. Equipment—All our auditors have the necessary equipment to work anywhere in the world. Our team members are provided with scanners, printers, monitors, and other equipment to ensure our personnel can work remotely.

2. Communication—Vasquez has digital phone lines linked to our personnel's computers and cell phones. This ensures that our personnel respond to our clients' needs within 24 hours.

3. Office 365 – Vasquez has fully implemented the Office 365 suite. This allows our personnel to collaborate with clients in a cloud-based environment. Some of these hub-based products include Microsoft Teams, SharePoint, and other video conferencing tools. #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 32

4. Audit and research tools – Vasquez uses CaseWare, an audit software package that allows teams to virtually work on projects in a secure environment. Our managers and partners can simultaneously oversee the work done by an engagement team.

5. Secured data room – Vasquez uses Citrix ShareFile to securely transfer data between clients and audit teams without file size restrictions. The portal has a document management process flow that easily tracks all the documents requested by the audit team so that all our clients have to do is drag and drop them into the portal. In addition, our clients and engagement teams get a daily update of all the documents that have been uploaded and those that are still open. This data flow allows us to monitor the progress of the audit at all times.

6. AICPA G400 – As a member of the top 1% of CPA firms in the country, we stay on top of all the latest developments in the audit profession, including how to address government funding and how to conduct a remote audit properly.

7. Global and multi-location experience – Vasquez has served clients with multiple locations in the US and worldwide for decades. This experience has taught us how to conduct procedures in a remote environment.

8. Flexibility – If our client records are not available electronically, we have the flexibility to send auditors to the client's site to audit records live.

Report Format
Examples of an Annual Comprehensive Financial Report awarded the GFOA Certificate can be found at the following location for public access:

Sample Reports
City of Modesto ACFR (https://www.modestogov.com/ArchiveCenter/ViewFile/Item/4280) City of Simi Valley ACFR
(https://www.simivalley.org/home/showpublisheddocument/29418/638718469078770000) #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 33 Proposal Form
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Proposal to No. RFP-00018 External Auditing Services 34 #12..
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Proposal to No. RFP-00018 External Auditing Services 35 #12..
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Proposal to No. RFP-00018 External Auditing Services 36 #12..
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Proposal to No. RFP-00018 External Auditing Services 37 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 38 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 39 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 40 Pricing Schedule Form
Our fees for the services outlined in this proposal are based on our estimates of the time needed to complete the project at our standard hourly rates. The fees are based on the assumption that unexpected circumstances will not be encountered during the audit, along with the following:

1. City staff are available to answer questions within the agreed timeframe.

2. No instances of fraud that will require additional procedures.

3. City staff to prepare all financial statements/schedules.

4. All information requested is provided within the agreed timeframe.

5. Five (5) major programs subject to the Single Audit Act.

6. The information provided is complete and correct for the year under audit.

7. Other unforeseen events such as:
a. Accounting problems.
b. Fraud.
c. Changes in your business or business environment.
d. Contractual difficulties with suppliers, third-party service providers, or clients. #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 41 Note: Total of $ 155,400 above pertains only to the audit of the basic financial statements and does not include the preparation of the City’s Annual Comprehensive Financial Report of $11,100 which is included in the first table. #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 42 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 43 Proposer Exceptions, Clarifications, and Amendments
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 44 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 45 Proposer Customer References
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 46 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 47 Financial Interest Disclosure
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 48 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 49 Proposer Company History Statement
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 50 Proposer Financial Statements
As a CPA firm, we do not have audited financial statements, which is standard practice in our industry. Our financial statements are internally prepared in accordance with Generally Accepted Accounting Principles (GAAP). While we do not undergo an external audit, we maintain rigorous internal controls and financial oversight consistent with professional standards. We would be happy to provide internally prepared financial statements and any additional documentation or assurances the City may require to support our financial stability and capacity to perform the engagement. #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 51 Addenda Acknowledgement
No Addenda have been issued.
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 52 Proposer Warranty Statements
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 53 Proposer Experience and Certifications
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Proposal to No. RFP-00018 External Auditing Services 54 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 55 #12..
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 56 Subcontractor List
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 57 California Levine Act Disclosure
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City of Modesto
Proposal to No. RFP-00018 External Auditing Services 58 #12..
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www.vasquez.cpa
Vasquez & Company LLP has over 55 years of experience in performing audit, accounting & consulting services for all types of nonprofit organizations, for-profit companies, governmental entities and publicly traded companies. . 655 N Central Avenue, Suite 1550 • Glendale, California 91203-1437 • Ph. (213) 873-1700 • Fax (213) 873-1777 #12..
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FINANCIAL INTEREST DISCLOSURE FORM
Any contract award to result from this RFP process and Proposer’s submission of a Proposal therewith will require approval by a majority vote of the City of Modesto’s City Council. In order to have full transparency in any City of Modesto commercial actions, the City Council may not approve an agreement between the City and the Proposer until all persons with a direct or indirect financial interest of greater than $2,000 in the Proposer are identified by name.

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

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

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

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

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

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

10.03(h) are satisfied.

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

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

Proposer Company Name:

Name of Proposer Signatory:

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

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

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

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

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

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

HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
_________________ _____________________________
Date Signature of authorized individual

_____________________________
Company/Applicant Name
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

November 4, 2025
Date: October 15, 2025
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Kevin Wise, Fire Chief
SUBJECT: Adoption of the 2025 California Fire Code
CONTACT: David Bickle, Fire Marshal, [email protected], 209-571-5553 DESCRIPTION:

Consider introducing and waiving the first reading of an Ordinance repealing and replacing Chapter 1 of Title 3 of the Modesto Municipal Code amending the City’s Fire Code to adopt the 2025 California Fire Code. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:

This action supports the City of Modesto 2025-2026 Strategic Plan focus on quality of life under Goal A: Improve community safety and quality of life through a combination of prevention and intervention efforts that address safety and its underlying issues.

BACKGROUND:

The California Building Standards Commission1 (CBSC) adopted the triennial California Fire Code as of July 1, 2025. This code was designed and published to be adopted by ordinance by local jurisdictions as an enforceable set of regulations for the safeguarding of life and property from fire and explosion hazards arising from the storage, handling and use of hazardous substances, materials and from conditions hazardous to life or property in the occupancy of buildings and premises.

DISCUSSION:

The Fire Code establishes the minimum fire and life safety requirements for the State of California and is automatically adopted by State law. It is reviewed and updated every three years. In addition, each local jurisdiction must adopt rules and requirements for administering the Fire Code. Local jurisdictions may also adopt amendments identified by said ordinance that are reasonably necessary as affected by local climatic, geological, or topographical conditions.

Additionally, the adoption of the Fire Code will provide a more unified administration as it applies to inspections and plan checks of construction projects in the City of Modesto. The Fire Code 1 California Building Standards Commission, California Building Standards Commission (CBSC) | CA.gov #13..
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City Council, November 4, 2025
Adoption of the 2025 California Fire Code

Page 2 of 2 ends

Modesto City CouncilNovember 4, 2025

Modesto City Council
November 4, 2025