Agenda packet — Modesto City Council, February 24, 2026 (part 3 of 3)

FISCAL IMPACT:

Sufficient funds are budgeted in Fiscal Year (FY) 2025-26 to cover the cost for these agreements.

The primary funding source for these agreements will be funded by the Fleet Fund and secondary funding sources will include outside service agreements such as fire service contracts and StanRTA. An increase is being recommended for the new agreements due to anticipated inflation increases as well as new fleet vehicles that will be added to the City’s inventory with the addition or increase of City programs funded through Measure H which required the purchase of new vehicles. The proposed vendors will provide maintenance and repair on the new fleet vehicle transmissions.

Below is a summary of the last five years of spending for the three vendors which includes both parts and services.

Year
AG
Transmission
Repair
Valley
Transmission
Mello
Transmission
Company, Inc
1 $5,198 $6,969 $23,378
2 $0 $95 $42,139
3 $2,898 $20,388 $94,606
4 $34,679 $18,212 $88,129
5 $0 $11,188 $52,986
Total $42,775 $56,852 $301,238
Below is the breakdown of the projected spending over the next five years for both the parts and service agreements for all three vendors. The overall agreement total was calculated by forecasting CPI percentage increases based on an average of the CPI index over the last 12 months. City staff project annual increases based on this estimated forecast. Annual increases will be calculated using the current CPI index at the time of the requested increase. Estimated spending across all three vendors is anticipated to average $150,000 annually.

Year
AG
Transmission
Repair
Valley
Transmission
Mello
Transmission
Company, Inc
1 $20,000 $23,550 $90,000
2 $21,160 $24,938 $95,220
3 $22,388 $26,384 $100,742
4 $23,687 $27,918 $106,586
5 $25,061 $29,598 $112,768
Total $112,296 $132,388 $505,316
COMMITTEE RECOMMENDATIONS:

This item was presented to the Finance Committee on January 26, 2026, and was recommended to forward to Council for approval.
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City Council, February 24, 2026
Transmission Parts and Repair Services

Page 4 of 4 ends

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Purchasing Agreements with AG Transmission Repair, Oakdale, CA, Valley Transmission, Modesto, CA and Mello Transmission Company, Inc., Modesto, CA for Transmission Parts and Repair Services for a two-year Agreement with three one-year extension options, for an estimated annual amount of $150,000 and a total amount not to exceed $750,000 over five years; and authorizing the Director of Finance to adjust agreement totals between agreements and department’s needs, ensuring the combined total amount does not change; and authorizing the City Manager, or his designee, to execute the Agreements.

Approved by:

Patrick Crowley, Interim Director of Public Works
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Service agreement-Mello Transmission

3. Exhibit B-Mello Transmission Price Schedule

4. Service agreement-AG Transmission

5. Exhibit B-AG Transmission-Price Schedule

6. Service agreement-Valley Transmission

7. Exhibit B-Valley Transmission-Price Schedule
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1 2026-

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XXX

RESOLUTION APPROVING THE PURCHASING AGREEMENTS WITH AG

TRANSMISSION REPAIR, OAKDALE, CA, VALLEY TRANSMISSION,
MODESTO, CA AND MELLO TRANSMISSION COMPANY, INC., MODESTO, CA FOR TRANSMISSION PARTS AND REPAIR SERVICES FOR A TWOYEAR AGREEMENT WITH THREE ONE-YEAR EXTENSION OPTIONS, FOR AN ESTIMATED ANNUAL AMOUNT OF $150,000 AND A TOTAL AMOUNT NOT TO EXCEED $750,000 OVER FIVE YEARS; AND AUTHORIZING THE

DIRECTOR OF FINANCE, TO ADJUST AGREEMENT TOTALS BETWEEN AGREEMENTS AND DEPARTMENT’S NEEDS, ENSURING THE COMBINED TOTAL AMOUNT DOES NOT CHANGE; AND AUTHORIZING THE CITY

MANAGER, OR HIS DESIGNEE, TO EXECUTE THE AGREEMENTS
WHEREAS, the City Fleet Service Division (Fleet) maintains and services approximately 1,580 vehicles, including heavy equipment, buses, fire trucks, trailers, and other miscellaneous equipment citywide. Additionally, Fleet has contract maintenance services with Stanislaus Regional Transit Authority (StanRTA) for countywide transit buses and five fire districts; and
WHEREAS, each vehicle or piece of equipment has numerous parts to make the unit function safely and efficiently; and
WHEREAS, components can fail or break on any piece of equipment. Many times, it is impossible to predict these failures; therefore, preparing a list of parts that will be required in any given Fiscal Year is not feasible; and WHEREAS, downtime for any piece of equipment means that a crew or individual cannot perform their job duties, which adversely impacts operations and service delivery to the community; and
WHEREAS, establishing these new agreements will allow Fleet to obtain the parts required to maintain and
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2 2026-
repair vehicles and equipment in a timely manner, and the repair services will provide additional support for in-house mechanics, reducing downtime for equipment and staff; and
WHEREAS, Modesto Municipal Code (MMC) Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to follow formal bid procedures. However, MMC Section 8-3.204(b) provides that a purchase may be exempted from the City’s formal bidding requirement where the Purchasing Agency’s requirements can be met solely by a single article or process; and WHEREAS, these agreements are all with local vendors that can provide transmission parts and services required to repair, rebuild (overhaul), or exchange the impacted transmission This includes performing preventative maintenance tasks on the impacted transmission; and
WHEREAS, additionally, AG Transmission Repair and Mello Transmission Company, Inc. are the only local vendors that are Authorized Allison transmission repair shops. These transmissions are used in approximately 90% of the City’s heavy-duty vehicles, as well as in the City maintained StanRTA transit fleet; and WHEREAS, the proposed agreements have an estimated annual amount of $150,000 and the total amount for the length of these agreements not to exceed $750,000; and
WHEREAS, sufficient funds are budgeted in Fiscal Year (FY) 2025-26 to cover the cost for these agreements. The primary funding source for these agreements will be funded by the Fleet Fund and secondary funding sources will include outside service agreements such as fire service contracts and StanRTA.
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3 2026-
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Purchasing Agreement with AG Transmission Repair, Oakdale, CA, Valley Transmission, Modesto, CA and Mello Transmission Company, Inc., Modesto, CA for transmission parts and repair services for a two-year agreement with three one-year extension options, for an estimated annual amount of $150,000 and a total amount not to exceed $750,000 over five years.

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

BE IT FURTHER RESOLVED, that the City Manager, or his designee, is hereby authorized to execute the Agreements, in a form approved by the City Attorney. #13..
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4 2026-
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of February 2026, 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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1 MELLO TRANSMISSION COMPANY, INC. ANNUAL AGREEMENT – FOR SERVICE AGREEMENT# 284825
This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 2026, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Mello Transmission Company, Inc. , a California Corporation, hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 2026-______ authorizing an agreement for the FLEET TRANSMISSION SERVICES to CONTRACTOR, attached hereto as Exhibit “A” and made a part hereof, and
WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for Fleet Transmission Services as described attachment Price Schedule, attached hereto as Exhibit “B” and made a part hereof, and
NOW, THEREFORE, the parties hereto mutually agree as follows:

1.THE WORK:
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2 a. CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, and insurance necessary to perform and complete the required work as specified in Exhibit “B”, and in strict accordance with the conditions of the complete AGREEMENT. b. CONTRACTOR shall do and perform the work contemplated hereby in a good workmanlike manner under the direction of and to the satisfaction of the CITY Representative. c. CONTRACTOR shall maintain proper insurance with the CITY for the duration of the AGREEMENT.
d. CONTRACTOR shall maintain a CITY business license for the duration of the AGREEMENT. e. CONTRACTOR shall furnish said services at the following AGREEMENT rates for an estimated annual amount $101,064. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $505,316. Unless the services provided are for a lump sum or flat fee, fees for work performed by CONTRACTOR on an hourly basis shall not exceed the amounts shown on Bid attached hereto as Exhibit B.

AGREEMENT PRICING
Listed in Exhibit B

2. CITY REPRESENTATIVE:

CITY Representative: Cory Schermerhorn, Fleet Manager, 209-342-2214 Purchasing Representative: Nani Hollingsworth, Assistant Buyer, 209-577-5296 The CITY Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be effective only by written change to the AGREEMENT, issued by the City of Modesto, Purchasing Division. #13..
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3 3. CONTRACTOR CONTACT:

Paula Jaramillo
Mello Transmission
417 Winmoore Way, Ste A
Modesto, CA 95358
Phone# 209-537-2791
Email: [email protected]

4. TERM OF AGREEMENT:

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

Year 1: FEBRUARY 25, 2026 through FEBRUARY 24, 2027
Year 2: FEBRUARY 25, 2027 through FEBRUARY 24, 2028
Year 3: FEBRUARY 25, 2028 through FEBRUARY 24, 2029
Year 4: FEBRUARY 25, 2029 through FEBRUARY 24, 2030
Year 5: FEBRUARY 25, 2030 through FEBRUARY 24, 2031
Pricing as set forth in Section 1.e. above shall remain firm for the first two years of the AGREEMENT.

Price increases for any subsequent AGREEMENT years following the second year shall not exceed the percentage change in the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by CONTRACTOR in writing, ninety (90) days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year.

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

5. PAYMENT:

CONTRACTOR shall invoice CITY not less than once per month based on the cost for services performed and reimbursable costs incurred prior to the invoice date. All invoices shall be paid in full the following payment terms within thirty days after completion and acceptance of the Services by the CITY, and receipt of a properly prepared invoice, CITY will pay CONTRACTOR Net 45 Days via manual check.

The CITY is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.

Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
At a minimum, invoices shall state the following:
 This AGREEMENT number 284825
 CITY department/division name and address
 Billing period
 Service hours worked day and week
 Unit price, extended price, sales tax and total

6. INDEMNITY:

The CONTRACTOR shall hold the CITY, its agents, officials, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or #13..
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5 property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, officials, officers, employees, or volunteers relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active negligence of the City. CONTRACTOR’s obligation to defend, indemnify, and hold the CITY, its agents, officials, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONTRACTOR to procure and maintain a policy of insurance.

7. VENUE & GOVERNING LAW:

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

8. ATTORNEYS’ FEES:

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

9. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:
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6 a. Proofs of insurance (approved by CITY Risk Manager); and b. Resolution No.2026-_______;
c. Contractor’s City of Modesto business license

10. TERMINATION OF SERVICES:

Termination for Default: In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the non-performance. Within 10 days after receipt of notification, the breaching party shall correct any nonperformance to the reasonable satisfaction of the non-breaching party, or such other time as may be identified in the notice. Failure to correct any non-performance shall allow the non-breaching party to terminate this AGREEMENT for cause.

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

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by #13..
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7 any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the SERVICES as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES; h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.
i. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date.

CITY will pay CONTRACTOR for SERVICES actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
j. The cost of settling and paying valid claims arising out of the termination of the SERVICES such as subcontractor agreements or contracts for materials; k. The AGREEMENT price allocable to the portion of the SERVICES properly performed or goods supplied to the work site by the CONTRACTOR as of the date of termination, as determined in #13..
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8 accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES.

11. COMPLIANCE WITH ALL LAWS:

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

12. FAILURE TO PERFORM SATISFACTORY WORK:

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

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

13. ASSIGNMENT OF RIGHTS:

The CONTRACTOR offers and agrees, and will require all subcontractors and suppliers to agree, to assign to the CITY all rights, title, and interest in and to all causes of action it and they may have under #13..
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9 Section 4 of the Clayton Act (15 United States code, Section 15) or under the Cartwright Act (Business and Professions Code, Section 16700 et seq.), arising from the acquisition of goods, services, or materials pursuant to this AGREEMENT or any allowed subcontract. The assignment made by CONTRACTOR and all assignments made by subcontractors and suppliers shall be made and become effective at the time the CITY makes final payment to The CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550-4554).

14. CITY PROCESS/PROCEDURE APPROVALS:

CITY approval of any process or procedure shall not relieve CONTRACTOR of its responsibility to furnish the required SERVICES meeting all specifications contained herein.

15. Contractor's Responsibility for Damages:

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

16. NOTICES:

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

CONTRACTOR: Mello Transmission Company, Inc.

Paula Jaramillo, Office Manager
417 Winmoore Way, Ste A
Modesto, CA 95358
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10 CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

17. SIGNATORY(IES) FOR CONTRACTOR:

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

18. QUANTITIES:

No minimum or maximum is guaranteed or implied.

19. 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.

20. 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.

21. NON-DISCRIMINATION:
a. During the performance of this AGREEMENT, CONTRACTOR and any allowed subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), sexual orientation, or any other basis prohibited by #13..
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11 Federal or California law. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment.

The CONTRACTOR and any allowed subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. The CONTRACTOR and any allowed subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, and Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.
b. The CONTRACTOR and any allowed subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
c. The CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in any allowed subcontracts to perform SERVICES.
d. The CONTRACTOR shall permit access by representatives of the Department of Fair Employment and Housing and the CITY upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or CITY shall require to ascertain compliance with this AGREEMENT.
e. By executing this AGREEMENT, CONTRACTOR certifies that it shall follow and be in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and #13..
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12 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.

22. CONTRACTOR LICENSES & PERMITS:

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

23. RECORDS:

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

24. FACILITIES AND EQUIPMENT:

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

25. INDEPENDENT CONTRACTOR; NOT AGENT:

At all times during the term of this AGREEMENT, CONTRACTOR shall be an independent contractor and shall not be an employee of CITY. CITY shall have the right to control CONTRACTOR only insofar as the results of CONTRACTOR’s services rendered pursuant to this AGREEMENT. Except #13..
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13 as City may specify in writing, CONTRACTOR shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this AGREEMENT to bind City to any obligation whatsoever.

26. DRUG FREE WORKPLACE:

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

27. ASSIGNMENT:

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

28. 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.

29. HEADINGS NOT CONTROLLING:

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

30. MISCELLANEOUS:

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

31. ENTIRE AGREEMENT:

This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY. Additional or new terms contained in this AGREEMENT which vary from CONTRACTOR’S bid #13..
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14 are controlling and are deemed accepted by CONTRACTOR by performance of any SERVICES or other commencement of performance hereunder. The terms and conditions of the IFB, attached hereto as Exhibit B, are incorporated herein. In the event of a conflict between the IFB and this AGREEMENT, this AGREEMENT shall control. All previous bids, offers and communications related to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by the parties.

32. PARTIAL INVALIDITY:

If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
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15 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attested by its City Clerk under authority of Resolution No. 2026-_______, adopted by the Council of the City of Modesto on the ________ day of __________________, 2026 and Mello Transmission Company, Inc. has caused this Agreement to be duly executed. #13..
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1 Exhibit B
Price Schedule
Mello Transmission
Service Price Unit
Shop Rates $150.00 Per Hour
Computer Connection $60.00 Per Connection
Parts Discount n/a
Hazard Fee $30.00
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1 AG TRANSMISSION REPAIR INC ANNUAL AGREEMENT – SERVICE AGREEMENT# 285174 This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 2026, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and AG Transmission Repair Inc., a California Corporation, hereinafter called CONTRACTOR.

W I T N E S E T H:

1.THE WORK:
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2 a. CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, and insurance necessary to perform and complete the required work as specified in Exhibit “B”, and in strict accordance with the conditions of the complete AGREEMENT. b. CONTRACTOR shall do and perform the work contemplated hereby in a good workmanlike manner under the direction of and to the satisfaction of the CITY Representative. c. CONTRACTOR shall maintain proper insurance with the CITY for the duration of the AGREEMENT.
d. CONTRACTOR shall maintain a CITY business license for the duration of the AGREEMENT. e. CONTRACTOR shall furnish said services at the following AGREEMENT rates for an estimated annual amount $22,460. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $112,296. Unless the services provided are for a lump sum or flat fee, fees for work performed by CONTRACTOR on an hourly basis shall not exceed the amounts shown on Bid attached hereto as Exhibit B.

AGREEMENT PRICING
Listed in Exhibit B

2. CITY REPRESENTATIVE:

Frank or Michelle Burke
AG Transmission Repair Inc.
1155 Post Rd
Oakdale, CA 95361
Phone# 209-848-3442
Email: [email protected]

4. TERM OF AGREEMENT:

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

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

5. PAYMENT:

The CITY is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.

Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
At a minimum, invoices shall state the following:
 This AGREEMENT number 285174
 CITY department/division name and address
 Billing period
 Service hours worked day and week
 Unit price, extended price, sales tax and total

6. INDEMNITY:

The CONTRACTOR shall hold the CITY, its agents, officials, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or #13..
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5 property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, officials, officers, employees, or volunteers relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active negligence of the City. CONTRACTOR’s obligation to defend, indemnify, and hold the CITY, its agents, officials, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONTRACTOR to procure and maintain a policy of insurance.

7. VENUE & GOVERNING LAW:

8. ATTORNEYS’ FEES:

9. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:
#13..
- 479 -
6 a. Resolution No.2026-_______;

10. TERMINATION OF SERVICES:

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

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by #13..
- 480 -
7 any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the SERVICES as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES; h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.
i. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date.

CITY will pay CONTRACTOR for SERVICES actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
j. The cost of settling and paying valid claims arising out of the termination of the SERVICES such as subcontractor agreements or contracts for materials; k. The AGREEMENT price allocable to the portion of the SERVICES properly performed or goods supplied to the work site by the CONTRACTOR as of the date of termination, as determined in #13..
- 481 -
8 accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES.

11. COMPLIANCE WITH ALL LAWS:

12. FAILURE TO PERFORM SATISFACTORY WORK:

13. ASSIGNMENT OF RIGHTS:

The CONTRACTOR offers and agrees, and will require all subcontractors and suppliers to agree, to assign to the CITY all rights, title, and interest in and to all causes of action it and they may have under #13..
- 482 -
9 Section 4 of the Clayton Act (15 United States code, Section 15) or under the Cartwright Act (Business and Professions Code, Section 16700 et seq.), arising from the acquisition of goods, services, or materials pursuant to this AGREEMENT or any allowed subcontract. The assignment made by CONTRACTOR and all assignments made by subcontractors and suppliers shall be made and become effective at the time the CITY makes final payment to The CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550-4554).

14. CITY PROCESS/PROCEDURE APPROVALS:

CITY approval of any process or procedure shall not relieve CONTRACTOR of its responsibility to furnish the required SERVICES meeting all specifications contained herein.

15. Contractor's Responsibility for Damages:

16. NOTICES:

CONTRACTOR: AG Transmission Repair Inc
Frank or Michelle Burke
1155 Post Road
Oakdale, CA 95361
#13..
- 483 -
10 CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

17. SIGNATORY(IES) FOR CONTRACTOR:

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

18. QUANTITIES:

No minimum or maximum is guaranteed or implied.

19. 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.

20. OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:

21. NON-DISCRIMINATION:
a. During the performance of this AGREEMENT, CONTRACTOR and any allowed subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), sexual orientation, or any other basis prohibited by #13..
- 484 -
11 Federal or California law. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment.

The CONTRACTOR and any allowed subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. The CONTRACTOR and any allowed subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, and Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.
b. The CONTRACTOR and any allowed subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
c. The CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in any allowed subcontracts to perform SERVICES.
d. The CONTRACTOR shall permit access by representatives of the Department of Fair Employment and Housing and the CITY upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or CITY shall require to ascertain compliance with this AGREEMENT.
e. By executing this AGREEMENT, CONTRACTOR certifies that it shall follow and be in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and #13..
- 485 -
12 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.

22. CONTRACTOR LICENSES & PERMITS:

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

23. RECORDS:

24. FACILITIES AND EQUIPMENT:

25. INDEPENDENT CONTRACTOR; NOT AGENT:

At all times during the term of this AGREEMENT, CONTRACTOR shall be an independent contractor and shall not be an employee of CITY. CITY shall have the right to control CONTRACTOR only insofar as the results of CONTRACTOR’s services rendered pursuant to this AGREEMENT. Except #13..
- 486 -
13 as City may specify in writing, CONTRACTOR shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this AGREEMENT to bind City to any obligation whatsoever.

26. DRUG FREE WORKPLACE:

27. ASSIGNMENT:

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

28. WAIVER:

29. HEADINGS NOT CONTROLLING:

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

30. MISCELLANEOUS:

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

31. ENTIRE AGREEMENT:

This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY. Additional or new terms contained in this AGREEMENT which vary from CONTRACTOR’S bid #13..
- 487 -
14 are controlling and are deemed accepted by CONTRACTOR by performance of any SERVICES or other commencement of performance hereunder. The terms and conditions of the IFB, attached hereto as Exhibit B, are incorporated herein. In the event of a conflict between the IFB and this AGREEMENT, this AGREEMENT shall control. All previous bids, offers and communications related to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by the parties.

32. 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.
#13..
- 488 -
15 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attested by its City Clerk under authority of Resolution No. 2026-_______, adopted by the Council of the City of Modesto on the ________ day of __________________, 2026 and AG Transmission Repair Inc. has caused this Agreement to be duly executed. #13..
- 489 -
1 Exhibit B
Price Schedule
AG Transmission Repair Inc
Service Price Unit
Shop Rates $170.00 Per Hour
Laptop Connection $0.00 Per Connection
Parts Discount 15%-20% From List
#13..
- 490 -
1 VALLEY TRANSMISSION ANNUAL AGREEMENT – SERVICE AGREEMENT# 285286 This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 2026, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Valley Transmission, a California Company, hereinafter called CONTRACTOR.

W I T N E S E T H:

1.THE WORK:
#13..
- 491 -
2 a. CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, and insurance necessary to perform and complete the required work as specified in Exhibit “B”, and in strict accordance with the conditions of the complete AGREEMENT. b. CONTRACTOR shall do and perform the work contemplated hereby in a good workmanlike manner under the direction of and to the satisfaction of the CITY Representative. c. CONTRACTOR shall maintain proper insurance with the CITY for the duration of the AGREEMENT.
d. CONTRACTOR shall maintain a CITY business license for the duration of the AGREEMENT. e. CONTRACTOR shall furnish said services at the following AGREEMENT rates for an estimated annual amount $26,478. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $132,388. Unless the services provided are for a lump sum or flat fee, fees for work performed by CONTRACTOR on an hourly basis shall not exceed the amounts shown on Bid attached hereto as Exhibit B.

AGREEMENT PRICING
Listed in Exhibit B

2. CITY REPRESENTATIVE:

Juan Dominguez
Valley Transmission
1312 10th St
Modesto, CA 95354-0723
Phone# 209-576-0925
Email: [email protected]

4. TERM OF AGREEMENT:

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

Price adjustments for diesel fuel fluctuations may be considered. Thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division and approved at the sole discretion of the CITY.
#13..
- 493 -
4 The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/, California data.

5. PAYMENT:

The CITY is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.

Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
At a minimum, invoices shall state the following:
 This AGREEMENT number 285286
 CITY department/division name and address
 Billing period
 Service hours worked day and week
 Unit price, extended price, sales tax and total

6. INDEMNITY:

The CONTRACTOR shall hold the CITY, its agents, officials, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or #13..
- 494 -
5 property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, officials, officers, employees, or volunteers relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active negligence of the City. CONTRACTOR’s obligation to defend, indemnify, and hold the CITY, its agents, officials, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONTRACTOR to procure and maintain a policy of insurance.

7. VENUE & GOVERNING LAW:

8. ATTORNEYS’ FEES:

9. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:
#13..
- 495 -
6 a. Proofs of insurance (approved by CITY Risk Manager); and b. Resolution No.2026-_______;
c. Contractor’s City of Modesto business license

10. TERMINATION OF SERVICES:

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

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by #13..
- 496 -
7 any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the SERVICES as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES; h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.
i. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date.

CITY will pay CONTRACTOR for SERVICES actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
j. The cost of settling and paying valid claims arising out of the termination of the SERVICES such as subcontractor agreements or contracts for materials; k. The AGREEMENT price allocable to the portion of the SERVICES properly performed or goods supplied to the work site by the CONTRACTOR as of the date of termination, as determined in #13..
- 497 -
8 accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES.

11. COMPLIANCE WITH ALL LAWS:

12. FAILURE TO PERFORM SATISFACTORY WORK:

13. ASSIGNMENT OF RIGHTS:

The CONTRACTOR offers and agrees, and will require all subcontractors and suppliers to agree, to assign to the CITY all rights, title, and interest in and to all causes of action it and they may have under #13..
- 498 -
9 Section 4 of the Clayton Act (15 United States code, Section 15) or under the Cartwright Act (Business and Professions Code, Section 16700 et seq.), arising from the acquisition of goods, services, or materials pursuant to this AGREEMENT or any allowed subcontract. The assignment made by CONTRACTOR and all assignments made by subcontractors and suppliers shall be made and become effective at the time the CITY makes final payment to The CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550-4554).

14. CITY PROCESS/PROCEDURE APPROVALS:

CITY approval of any process or procedure shall not relieve CONTRACTOR of its responsibility to furnish the required SERVICES meeting all specifications contained herein.

15. Contractor's Responsibility for Damages:

16. NOTICES:

CONTRACTOR: Valley Transmission
Juan Dominguez
1312 10th St
Modesto, CA 95354-0723
#13..
- 499 -
10 CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

17. SIGNATORY(IES) FOR CONTRACTOR:

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

18. QUANTITIES:

No minimum or maximum is guaranteed or implied.

19. 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.

20. OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:

21. NON-DISCRIMINATION:
a. During the performance of this AGREEMENT, CONTRACTOR and any allowed subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), sexual orientation, or any other basis prohibited by #13..
- 500 -
11 Federal or California law. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment.

The CONTRACTOR and any allowed subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. The CONTRACTOR and any allowed subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, and Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.
b. The CONTRACTOR and any allowed subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
c. The CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in any allowed subcontracts to perform SERVICES.
d. The CONTRACTOR shall permit access by representatives of the Department of Fair Employment and Housing and the CITY upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or CITY shall require to ascertain compliance with this AGREEMENT.
e. By executing this AGREEMENT, CONTRACTOR certifies that it shall follow and be in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and #13..
- 501 -
12 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.

22. CONTRACTOR LICENSES & PERMITS:

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

23. RECORDS:

24. FACILITIES AND EQUIPMENT:

25. INDEPENDENT CONTRACTOR; NOT AGENT:

At all times during the term of this AGREEMENT, CONTRACTOR shall be an independent contractor and shall not be an employee of CITY. CITY shall have the right to control CONTRACTOR only insofar as the results of CONTRACTOR’s services rendered pursuant to this AGREEMENT. Except #13..
- 502 -
13 as City may specify in writing, CONTRACTOR shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this AGREEMENT to bind City to any obligation whatsoever.

26. DRUG FREE WORKPLACE:

27. ASSIGNMENT:

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

28. WAIVER:

29. HEADINGS NOT CONTROLLING:

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

30. MISCELLANEOUS:

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

31. ENTIRE AGREEMENT:

This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY. Additional or new terms contained in this AGREEMENT which vary from CONTRACTOR’S bid #13..
- 503 -
14 are controlling and are deemed accepted by CONTRACTOR by performance of any SERVICES or other commencement of performance hereunder. The terms and conditions of the IFB, attached hereto as Exhibit B, are incorporated herein. In the event of a conflict between the IFB and this AGREEMENT, this AGREEMENT shall control. All previous bids, offers and communications related to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by the parties.

32. PARTIAL INVALIDITY:

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 24, 2026
Date: January 20, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Patrick Crowley, Interim Public Works Director
SUBJECT: First Amendment to the Agreement for Material Hauling Services CONTACT: John Chavez, Integrated Waste Manager, [email protected], 209-577-5453
DESCRIPTION:

Consider approving the First Amendment with California Material Inc. for Material Hauling Services, increasing the Agreement amount by $621,746 to a new total amount not to exceed $1,246,746 over the term of the Agreement. (Funding Source: Compost Fund) STRATEGIC PLAN ELEMENT:

The recommended action is consistent with the City of Modesto 2025-2026 Strategic Plan Element: “Economic Vitality”, Goal H: “Achieve long-term financial sustainability.”; Strategies No. One: “develop a strategy for long-term financial sustainability,” and No. Two: “reduce general liability exposure claims.”
BACKGROUND:

The Public Works and Utilities Departments require material hauling services for asphalt, dirt, asphalt grindings, rock, road base material, and concrete. Compost, sewer, storm drain, water, and street construction operations generate large amounts of materials that must be transported to and from the jobsite. This usually requires multiple large tractor-trailer end dumps to haul the material away where it is stockpiled for recycling or reallocation. These services are also needed for the delivery of new materials to the jobsite. City departments do not have the trucks or the staffing to haul large amounts of materials when needed.

Due to the unpredictable nature of the work, it is not always possible for the divisions to know what their immediate need is. Departments assume the highest-need scenarios when estimating annual amounts needed for hauling. The current agreement includes Water, Wastewater, and Storm Drain Divisions from the Utilities Departments, along with Compost, Solid Waste, and Streets Divisions from the Public Works Department.

On December 5, 2023, by Resolution 2023-530, Council approved a two-year agreement with three one-year extension options with California Materials Inc. of Stockton, CA, for a total not to #14..
- 507 -
City Council, February 24, 2026
First Amendment to the Agreement for Material Hauling Services

Page 2 of 4 ends

exceed $625,000 over five years. Compost projected its share of the city-wide agreement at $75,000 annually, representing $375,000 of the $625,000 originally approved by Council.

Since the initial costs were estimated, the City has received four violations from the Central Valley Water Board, as documented in the April 16, 2025, inspection report. This amendment will support the correction of two of these violations. The first violation is that the Compost Facility’s 10-Acre Final Product Storage Area contained significant undulations and depressions, which could lead to extensive ponding. The second violation is that the southern portion of the active compost pad, which only contains a soil-improved pad, appeared to be in poor condition with notable undulations that could lead to ponding. Similar conditions were noted in a previous Notice of Violation (NOV) issued February 21, 2024. Following the February NOV, the City was initially given until September 30, 2024 to submit a work plan to make permanent facility improvements. The City asked for an extension which was granted, moving the due date to December 1, 2025, with the stipulation that, if not achieved, the penalties would be enforced as of the initial due date in September 2024.

DISCUSSION:

Increasing waste hauling services will help address these violations by enabling the Compost Facility to remove contaminants more rapidly, thereby freeing operational space and allowing necessary surface repairs to proceed. Achieving compliance will require completion of these surface repairs to meet Water Board standards. A follow-up inspection is scheduled for February 4, 2026, at which time the Water Board will evaluate facility conditions and provide an update on corrective actions.

This action plan is already underway and will continue until compliance is achieved. The City is currently reviewing affected areas to evaluate potential remediation options, including the possible addition of a blacktop surface; however, existing material would need to be removed prior to any such improvements. The Facility has begun processing significant volumes of material and has removed approximately seven stockpiles, each estimated at 3,000 to 4,000 tons. An additional fifteen stockpiles remain pending processing.

The increased level of waste hauling services is expected to continue at this higher rate.

Ongoing annual hauling needs are anticipated to exceed previous projections due to increased green waste volumes being delivered to the Compost Facility.

Modesto Municipal Code Section 8-3.203 generally requires purchases exceeding $100,000 for materials, equipment, or contractual services to be formally bid. However, Section MMC 8-3.204 allows exceptions to the formal bidding process when the Purchasing Manager determines it is appropriate to amend an existing agreement to include additional, similar goods or services, of limited quantity or scope, to increase efficiency and avoid delays or disruptions to City services.

FISCAL IMPACT:

The City has submitted its response, which includes a plan to coordinate with the Streets Division to initiate repairs and reconstruction on the east side of the Compost Facility. If additional details, such as a more comprehensive repair proposal or construction schedule, are required they will be submitted as soon as practicable. #14..
- 508 -
City Council, February 24, 2026
First Amendment to the Agreement for Material Hauling Services

Page 3 of 4 ends

The original due date of September 30, 2024, remains in effect for purposes of calculating enforcement penalties. Minimum enforcement penalties are $1,000 per day of noncompliance, which could result in penalties exceeding $473,000 and increasing daily.

The overall agreement total was calculated by forecasting Consumer Price Index (CPI) percentage increases based on an average of the CPI index over the prior twelve months. City staff project annual increases based on this estimated forecast. Annual increases will be calculated using the current CPI index in effect at the time of the requested increase.

Compost Operating Fund – 4890
Current Estimate Proposed Increase Amended Total
Estimated Annual
Amount
Year 1
$
125,000.00
$
125,000.00
Year 2
$
125,000.00
$
250,000.00
$
375,000.00
$
280,437.00
Year 3
$
125,000.00
$
263,500.00
$
388,500.00
$
280,437.00
Year 4
$
125,000.00
$
52,700.00
$
177,700.00
$
280,437.00
Year 5
$
125,000.00
$
55,546.00
$
180,546.00
$
280,435.00
Total
$
621,746.00
$
1,246,746.00
The original agreement includes an estimated annual spend of $125,000, of which $75,000 was allocated for annual hauling services for the Compost Facility (account string 4890-56030- 53300), for a total of $375,000 over the life of the agreement. If approved, this Amendment would increase the annual estimate from $125,000 to $280,437 for years two through four, and to $280,435 for year five. The additional $621,746 would be allocated to Compost Facility expenses using account string 4890-56030-53300 (Compost Fund), resulting in a total agreement amount of $996,746 for the Facility over the life of the agreement.

COMMITTEE RECOMMENDATION:

On December 17, 2025, the Finance Committee reviewed this item and recommended it be forwarded to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the First Amendment with California Materials Inc., for Material Hauling Services, increasing the Agreement amount by $621,746, to a new estimated annual amount of $280,437, with a new total amount not to exceed $1,246,746 over the term of the Agreement, and authorizing the City Manager, or his designee, to execute the Amendment. #14..
- 509 -
City Council, February 24, 2026
First Amendment to the Agreement for Material Hauling Services

Page 4 of 4 ends

Approved by:

Patrick Crowley, Interim Public Works Director,
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. First Amendment

3. Material Hauling Agreement

4. CA Levine Act Disclosure Form
#14..
- 510 -
02/10/2026/PW/JChavez/Item X 1 2026-XXX

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XXX

RESOLUTION APPROVING THE FIRST AMENDMENT WITH CALIFORNIA MATERIALS INC., FOR MATERIAL HAULING SERVICES, INCREASING THE AGREEMENT AMOUNT BY $621,746, TO A NEW ESTIMATED ANNUAL AMOUNT OF $280,437, WITH A NEW TOTAL AMOUNT NOT TO EXCEED $1,246,746 OVER THE TERM OF THE AGREEMENT; AND AUTHORIZING

THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE

AMENDMENT
WHEREAS, the Public Works and Utilities Departments require material hauling services for asphalt, dirt, asphalt grindings, rock, road base material, compost overs, and concrete; and
WHEREAS, on December 5, 2023, by Resolution 2023-530, Council approved a two-year agreement with three one-year extension options with California Materials Inc. of Stockton, CA, for a total not to exceed $625,000 over five years; and WHEREAS, the Compost Facility initially anticipated an annual spend of $75,000 per year, accounting for $375,000 of the total; and WHEREAS, the City’s Compost Facility is currently addressing two violations identified by the Central Valley Water Board; and
WHEREAS, increasing waste hauling services will help address these violations by enabling the Compost Facility to remove contaminants more rapidly, thereby freeing operational space and allowing necessary surface repairs to proceed; and WHEREAS, the Compost Facility has already started processing large amounts of material and has removed approximately seven piles, each with 3,000 to 4,000 tons; and
WHEREAS, the need for the increase in waste hauling service will continue at this rate for the next year before stabilizing at a rate higher than originally anticipated #14..
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02/10/2026/PW/JChavez/Item X 2 2026-XXX
due to increased green waste loads delivered to the Facility; and WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204 where the Purchasing Manager, in his or her discretion, determines that it is appropriate to amend the services or goods provided under an existing agreement to include additional similar goods or services, of limited quantity or scope, in order to increase efficiency and avoid delays or disruptions to City projects or services.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the First Amendment with California Materials Inc., for material hauling services, increasing the agreement amount by $621,746, to a new estimated annual amount of $280,437, with a new total amount not to exceed $1,246,746 over the term of the agreement.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to negotiate and execute the Amendment, in a form approved by the City Attorney.
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02/10/2026/PW/JChavez/Item X 3 2026-XXX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of February 2026, 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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FIRST AMENDMENT TO AGREEMENT
WITH CALIFORNIA MATERIALS, INC. FOR MATERIAL HAULING SERVICES This FIRST AMENDMENT to the Agreement for MATERIAL HAULING SERVICES entered into between the CITY OF MODESTO, a municipal corporation of the State of California _, 2026.

RECITALS
This FIRST AMENDMENT to Agreement for MATERIAL HAULING SERVICES is made with regard to the following recitals:

WHEREAS, CITY and CONTRACTOR previously entered into an Agreement for MATERIAL HAULING SERVICES on the 5th day of December, 2023 (the "ORIGINAL AGREEMENT"), and WHEREAS, CITY and CONTRACTOR desire to amend the ORIGINAL AGREEMENT by increasing the previously approved estimated annual amount from $125,000 to $280,437 and a total amount not to exceed from $625,000 to $1,246,746.

NOW, THEREFORE, in consideration of this FIRST AMENDMENT, and the mutual promises, covenants, and signatures contained in the ORIGINAL AGREEMENT and this FIRST AMENDMENT, the parties agree as follows:

1. THE WORK, Section 1, paragraph E, of the ORIGINAL AGREEMENT shall be deleted and replaced in its entirety with the following:
"CONTRACTOR shall furnish said services at the following AGREEMENT rates for an estimated annual amount of $280,437. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $1,246,746. Unless the services provided are for a lump sum or flat fee, fees for work performed by CONTRACTOR on an hourly basis shall not exceed the amounts shown on Bid attached hereto as Exhibit B.

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

IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this FIRST AMENDMENT to the ORIGINAL AGREEMENT for MATERIAL HAULING SERVICES by its City Manager and attestation by its City Clerk under the authority of Resolution No. ___________ on the ________ day of ___________, 2026, and CALIFORNIA MATERIALS, INC. has caused this FIRST AMENDMENT to be duly executed as of the Effective Date. #14..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 24, 2026
Date: January 20, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: William Wong, Director of Utilities
SUBJECT: Award Highway 99 Water Main Crossings Improvements Project I Street, G Street, and Sierra Drive
CONTACT: David A. Felix, Associate Engineer, [email protected], 209-577-5488 DESCRIPTION:

Consider approving the Plans and Specifications for the Highway 99 Water Main Crossings Improvements Project, accepting the Bid and Awarding a Construction Contract to Rolfe Construction Inc., of Atwater, CA in the amount of $1,436,035, authorizing 20% in contingency (if needed), for a total payment amount not to exceed $1,723,242. (Funding Source: Water Fund) STRATEGIC PLAN ELEMENT:

The recommended action supports the 2025-2026 City of Modesto Strategic Plan Initiatives, Goal D: Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.

BACKGROUND:

The Highway 99 Water Main Crossings Improvements Project will replace approximately 1,240 linear feet of outdated water mains that are prone to leaks and low water pressure to meet current City standards along the following streets:

I Street 5
th Street to 6th Street
G Street 5
th Street to 6th Street
Sierra Drive 5
th Street to 6th Street
The Project will also include reconnecting and restoring service laterals, appurtenances, hydrants, and system connections. These upgrades will improve system reliability and increasing fire flow capacity.
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Award Highway 99 Water Main Crossings Improvements Project I Street, G Street, and Sierra Drive

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DISCUSSION:

The Project was advertised for bid on November 7, 2025; Bids were publicly opened on December 30, 2025, pursuant to City Charter Section 1307 and Rolfe Construction Inc., of Atwater, CA, was the responsible bidder with the lowest responsive bid.

Bid Analysis:

Number of Bids Received 5
Number of Bids within 10% of Engineer’s Estimate 4
Number of Bids Above the Engineer’s Estimate 1
Number of Bids Below the Engineer’s Estimate 4
Percent Low Bid is Below the Engineer’s Estimate 24.97% Staff reviewed the low bid and determined pricing reflects favorable market conditions and the contractor’s familiarity with similar work, with no scope omissions identified. Bidder competition and participation was evident as the City received five bids.

Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to follow the formal bid procedures. The award of a Contract for the construction of the Highway 99 Water Main Crossings Improvements Project to Rolfe Construction, Inc., of Atwater, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Rolfe Construction Inc., was the lowest responsible and responsive and bidder.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 1994-443 on July 19, 1994, revised on July 9, 2019, by Council Resolution No. 2019-326, and revised a second time on September 12, 2023, by Council Resolution No. 2023-405 established a Contract Change Order authority of 10% for Construction Contracts of this dollar value. However, after reviewing the plans and specifications, and given the nature of this Project where unforeseen conditions may exist when dealing with existing construction, and other unaccounted for issues may arise, it is likely that this Project could exceed the Director’s Authority of 10% ($143,604) of the Construction Contract amount of $1,436,035. Therefore, staff is requesting that the Director’s authority to issue change orders be increased to 20% ($287,207) of the Construction Contract amount.

While the contingency policy is utilized for each Construction Contract awarded by the City, it is not written into the Contract, nor is it a guaranteed amount included in the final compensation to the contractor.

FISCAL IMPACT:

The total estimated cost for the Construction Phase of this Project is $1,974,287. Expenses associated with this effort are housed in the following Capital Improvement Program Project:
101557 – Hwy 99 S&R WM Crossings
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Award Highway 99 Water Main Crossings Improvements Project I Street, G Street, and Sierra Drive

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ANTICIPATED CONSTRUCTION EXPENDITURES
Construction Contract – Rolfe Construction Inc. $1,436,035 Construction Contingency (20%) $287,207
Construction Administration – City Staff (10%) $143,604 City Construction Forces $50,000
Engineering/Design/Administration – City Staff (4%) $57,441 TOTAL $1,974,287
To fund the Highway 99 Water Main Crossings Improvements Project, a budget adjustment in the amount of $1,849,505 from Water Fund Reserves will be necessary.

COMMITTEE RECOMMENDATION
This item was considered by the Economic Development Committee at the meeting held on November 3, 2025, where it was recommended that it be forwarded to Council for approval.

CEQA/NEPA REQUIREMENTS:

Environmental review has been provided through a Categorical Exemption under CEQA Section 15301 Class 1(b)(c); 15303 (d).

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Plans and Specifications for the Highway 99 Water Main Crossings Improvements Project, accepting the Bid and awarding a Construction Contract to Rolfe Construction Inc., of Atwater, CA in the amount of $1,436,035, authorizing the Director of Engineering Services to approve Change Orders up to the cumulative amount of $287,207, 20% of the original Contract price, for a total payment amount not to exceed $1,723,242 and authorizing the City Manager, or his designee, to execute the Contract.

Resolution amending the Fiscal Year 2025-26 Capital Improvement Program Budget in the amount of $1,849,505 to fund the Construction Phase of the Highway 99 Water Main Crossings Improvements Project and authorizing the City Manager, or his designee, to implement the provision of the Resolution.

Approved by:

William Wong, Director of Utilities
Joseph P. Lopez, City Manager
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Award Highway 99 Water Main Crossings Improvements Project I Street, G Street, and Sierra Drive

Page 4 of 4 ends

Attachments:

1. Resolutions (2)

2. Construction Contract

3. Bid Results
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02/24/2026/Utilities/DFelix/Item X 1 2026-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX

RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS FOR THE HIGHWAY 99 WATER MAIN CROSSINGS IMPROVEMENTS PROJECT,

ACCEPTING THE BID AND AWARDING A CONSTRUCTION CONTRACT TO ROLFE CONSTRUCTION INC., OF ATWATER, CA IN THE AMOUNT OF $1,436,035, AUTHORIZING THE DIRECTOR OF ENGINEERING SERVICES

TO APPROVE CHANGE ORDERS UP TO THE CUMULATIVE AMOUNT OF $287,207, 20% OF THE ORIGINAL CONTRACT PRICE, FOR A TOTAL PAYMENT AMOUNT NOT TO EXCEED $1,723,242 AND AUTHORIZING THE

CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE CONTRACT
WHEREAS, the existing water mains along I Street, G Street, and Sierra Drive, from 5th Street to 6th Street are aging steel mains which are prone to leaks and low water pressure; and
WHEREAS, this project will upgrade approximately 1,240 linear feet of water mains, and the associated valves and fire hydrants; and WHEREAS, the result of this work will be improved system reliability, along with increased water pressure and fire flows; and
WHEREAS, the project was advertised for bids on November 7, 2025; and WHEREAS, on December 30, 2025, bids were publicly opened, pursuant to City Charter Section 1307; and
WHEREAS, nine bids were received; and
WHEREAS, Rolfe Construction, Inc., of Atwater, CA, was the responsible bidder with the lowest responsive bid; and
WHEREAS Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment or contractual services to follow the formal bid procedures; and
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02/24/2026/Utilities/DFelix/Item X 2 2026-XX
WHEREAS the award of a Contract for the construction of the Highway 99 Water Main Crossings Improvements Project to Rolfe Construction, Inc., of Atwater, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Rolfe Construction, Inc. was the lowest responsive and responsible bidder; and
WHEREAS, given the nature of this Project where unforeseen conditions may exist when dealing with existing construction, and other unaccounted for issues may arise, the City Council desires to increase the Director’s authority to issue change orders to 20% ($287,207) of the Construction Contract amount.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the plans and specifications for the Highway 99 Water Main Crossings Improvements Project, accepts the bid of $1,436,035, authorizes the Director of Engineering Services to approve Change Orders up to the cumulative amount of $287,207, 20% of the original Contract price, for a total payment amount not to exceed $1,723,242, and awards a Construction Contract to Rolfe Construction, Inc., of Atwater, CA.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the Contract, in a form approved by the City Attorney. #15..
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02/24/2026/Utilities/DFelix/Item X 3 2026-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of February 2026, 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:

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

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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02/24/2026/Utilities/DFelix/Item X 1 2026-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX
RESOLUTION AMENDING THE FISCAL YEAR 2025-26 CAPITAL
IMPROVEMENT PROGRAM BUDGET IN THE AMOUNT OF $1,849,505 TO FUND THE CONSTRUCTION PHASE OF THE HIGHWAY 99 WATER MAIN

CROSSINGS IMPROVEMENTS PROJECT AND AUTHORIZING THE CITY

MANAGER, OR HIS DESIGNEE, TO IMPLEMENT THE PROVISION OF THE

RESOLUTION
WHEREAS, certain budgetary transactions are necessary in the amount of $1,849,505, in order to fund the construction phase of the Highway 99 Water Main Crossings Improvements Project; and
WHEREAS, the Fiscal Year 2025-26 Capital Improvement Program Budget must be amended.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the amendment of the Fiscal Year 2025-26 Capital Improvement Program Budget in the amount of $1,849,505.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to implement the provisions of this resolution. #15..
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02/24/2026/Utilities/DFelix/Item X 2 2026-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 24th day of February 2026, 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:

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

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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(I Street, G Street, and Sierra Drive)
Bid Tabulation Wednesday, December 31, 2025
Project Title: Highway 99 Water Main Crossings Project
Project ID #: 2026-07
Account #: 101557
Vault ID #: 12-D-0567
Bid Opening: 12/30/2021 at 11:00 AM
Basis of Award: By Base Bid Designer: BKF Engineers
Design Manager: David Felix
Project Description: This project will replace three aging water mains that run across CA Highway 99 within three bridge overcrossings at I Street, G Street, and Sierra Drive.

The water mains include 12-inch cast iron pipe (CIP) carrier pipe inside 18-inch steel at each bridge location. The project will replace existing 12-inch carrier pipe inside the casing with 12-inch ductile iron pipe (DIP) keeping the casing in place. Outside the bridges, the direct buried portion of existing 6-, 8- and 12-inch CIP mains will be replaced with PVC C900 pipe. The project also includes reconnecting and restoring service laterals, appurtenances, hydrants, and system connections with the existing mains.

Item # Item Description Units Quantity Unit Price Extension Apparent Low Bidder
Rolfe Construction Inc.
(209) 358-5548 3573 Southern Pacific Avenue, Atwater CA 95301 Base Bid
1 Mobilization/Demobilization LS 1 $50,258.00 $50,258.00 2 Traffic Control/Handling, Signage, and LS 1 $88,270.00 $88,270.00 Permitting
3 Water Pollution Control Plan (WPCP) LS 1 $31,408.00 $31,408.00 4 Trench Sheeting, Shoring, and Bracing LS 1 $51,116.00 $51,116.00 5 Potholing LS 1 $26,884.00 $26,884.00
6 Cleaning and Inspection of Steel Casings LS 1 $102,830.00 $102,830.00 7 Remove 6-inch CIP and Install 12-inch PVC LF 250 $315.00 $78,750.00 by Open Trench
8 Remove 8-inch CIP and Install 12-inch PVC LF 120 $538.50 $64,620.00 by Open Trench
9 Remove 12-inch CIP and Install 12-inch DIP LF 750 $280.80 $210,600.00 in Existing 18-inch Steel Casing
10 Remove 12-inch CIP and Install 12-inch LF 100 $625.17 $62,517.00 PVC by Open Trench
11 Remove 12-inch PVC and Install 12-inch LF 20 $1,722.50 $34,450.00 PVC by Open Trench
12 4-inch Gate Valve, Valve Box. And 3 or 4- EA 2 $22,685.00 $45,370.00 inch Irrigation Piping
13 6-inch Gate Valve, Valve Box, and 6-inch EA 1 $25,610.00 $25,610.00 PVC Piping
14 12-inch Gate Valve and Valve Box EA 11 $5,720.00 $62,920.00 15 12-inch Force Balanced Flexible Expansion EA 6 $30,023.00 $180,138.00 Joint
16 Fire Hydrant Assembly EA 3 $21,414.00 $64,242.00
17 Remove Fire Hydrant Assembly EA 1 $7,878.00 $7,878.00 #15..
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(I Street, G Street, and Sierra Drive)
18 Water Main Tie-In Support EA 6 $5,049.00 $30,294.00
19 Structural Concrete Vault EA 6 $31,980.00 $191,880.00 20 Caltrans Encroachment Permit LS 1 $26,000.00 $26,000.00 Total: $1,436,035.00
Percent From Engineer's Estimate: -24.97%
Mozingo Construction, Inc.
(209) 848-0160 751 Wakefield Ct., Oakdale CA 95361
Base Bid
1 Mobilization/Demobilization LS 1 $35,000.00 $35,000.00 2 Traffic Control/Handling, Signage, and LS 1 $175,000.00 $175,000.00 Permitting
3 Water Pollution Control Plan (WPCP) LS 1 $20,000.00 $20,000.00 4 Trench Sheeting, Shoring, and Bracing LS 1 $70,000.00 $70,000.00 5 Potholing LS 1 $50,000.00 $50,000.00
6 Cleaning and Inspection of Steel Casings LS 1 $20,000.00 $20,000.00 7 Remove 6-inch CIP and Install 12-inch PVC LF 250 $450.00 $112,500.00 by Open Trench
8 Remove 8-inch CIP and Install 12-inch PVC LF 120 $440.00 $52,800.00 by Open Trench
9 Remove 12-inch CIP and Install 12-inch DIP LF 750 $310.00 $232,500.00 in Existing 18-inch Steel Casing
10 Remove 12-inch CIP and Install 12-inch LF 100 $460.00 $46,000.00 PVC by Open Trench
11 Remove 12-inch PVC and Install 12-inch LF 20 $800.00 $16,000.00 PVC by Open Trench
12 4-inch Gate Valve, Valve Box. And 3 or 4- EA 2 $7,800.00 $15,600.00 inch Irrigation Piping
13 6-inch Gate Valve, Valve Box, and 6-inch EA 1 $12,000.00 $12,000.00 PVC Piping
14 12-inch Gate Valve and Valve Box EA 11 $7,200.00 $79,200.00 15 12-inch Force Balanced Flexible Expansion EA 6 $27,000.00 $162,000.00 Joint
16 Fire Hydrant Assembly EA 3 $25,000.00 $75,000.00
17 Remove Fire Hydrant Assembly EA 1 $2,200.00 $2,200.00 18 Water Main Tie-In Support EA 6 $5,600.00 $33,600.00
19 Structural Concrete Vault EA 6 $92,000.00 $552,000.00 20 Caltrans Encroachment Permit LS 1 $10,000.00 $10,000.00 Total: $1,771,400.00
Percent From Engineer's Estimate: -7.45%
Mid Cal Pipeline & Utilities, Inc.
(209) 383-7473 P.O. Box 2406, Merced, CA 95344
Base Bid
1 Mobilization/Demobilization LS 1 $80,000.00 $80,000.00 2 Traffic Control/Handling, Signage, and LS 1 $80,000.00 $80,000.00 Permitting
3 Water Pollution Control Plan (WPCP) LS 1 $30,000.00 $30,000.00 4 Trench Sheeting, Shoring, and Bracing LS 1 $50,000.00 $50,000.00 5 Potholing LS 1 $45,000.00 $45,000.00
6 Cleaning and Inspection of Steel Casings LS 1 $125,000.00 $125,000.00 7 Remove 6-inch CIP and Install 12-inch PVC LF 250 $640.00 $160,000.00 by Open Trench
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(I Street, G Street, and Sierra Drive)
8 Remove 8-inch CIP and Install 12-inch PVC LF 120 $640.00 $76,800.00 by Open Trench
9 Remove 12-inch CIP and Install 12-inch DIP LF 750 $340.00 $255,000.00 in Existing 18-inch Steel Casing
10 Remove 12-inch CIP and Install 12-inch LF 100 $640.00 $64,000.00 PVC by Open Trench
11 Remove 12-inch PVC and Install 12-inch LF 20 $640.00 $12,800.00 PVC by Open Trench
12 4-inch Gate Valve, Valve Box. And 3 or 4- EA 2 $3,000.00 $6,000.00 inch Irrigation Piping
13 6-inch Gate Valve, Valve Box, and 6-inch EA 1 $4,000.00 $4,000.00 PVC Piping
14 12-inch Gate Valve and Valve Box EA 11 $7,000.00 $77,000.00 15 12-inch Force Balanced Flexible Expansion EA 6 $40,000.00 $240,000.00 Joint
16 Fire Hydrant Assembly EA 3 $20,000.00 $60,000.00
17 Remove Fire Hydrant Assembly EA 1 $8,000.00 $8,000.00 18 Water Main Tie-In Support EA 6 $10,000.00 $60,000.00 19 Structural Concrete Vault EA 6 $60,000.00 $360,000.00 20 Caltrans Encroachment Permit LS 1 $10,000.00 $10,000.00 Total: $1,803,600.00
Percent From Engineer's Estimate: -5.77%
West Valley Construction Company, Inc.
(408) 371-5510 PO Box 5639, San Jose, CA 95150
Base Bid
1 Mobilization/Demobilization LS 1 $178,580.00 $178,580.00 2 Traffic Control/Handling, Signage, and LS 1 $262,555.00 $262,555.00 Permitting
3 Water Pollution Control Plan (WPCP) LS 1 $23,035.00 $23,035.00 4 Trench Sheeting, Shoring, and Bracing LS 1 $35,120.00 $35,120.00 5 Potholing LS 1 $34,195.00 $34,195.00
6 Cleaning and Inspection of Steel Casings LS 1 $35,205.00 $35,205.00 7 Remove 6-inch CIP and Install 12-inch PVC LF 250 $440.00 $110,000.00 by Open Trench
8 Remove 8-inch CIP and Install 12-inch PVC LF 120 $737.00 $88,440.00 by Open Trench
9 Remove 12-inch CIP and Install 12-inch DIP LF 750 $216.00 $162,000.00 in Existing 18-inch Steel Casing
10 Remove 12-inch CIP and Install 12-inch LF 100 $894.00 $89,400.00 PVC by Open Trench
11 Remove 12-inch PVC and Install 12-inch LF 20 $641.00 $12,820.00 PVC by Open Trench
12 4-inch Gate Valve, Valve Box. And 3 or 4- EA 2 $9,400.00 $18,800.00 inch Irrigation Piping
13 6-inch Gate Valve, Valve Box, and 6-inch EA 1 $10,905.00 $10,905.00 PVC Piping
14 12-inch Gate Valve and Valve Box EA 11 $5,360.00 $58,960.00 15 12-inch Force Balanced Flexible Expansion EA 6 $16,115.00 $96,690.00 Joint
16 Fire Hydrant Assembly EA 3 $15,620.00 $46,860.00
17 Remove Fire Hydrant Assembly EA 1 $3,470.00 $3,470.00 18 Water Main Tie-In Support EA 6 $15,580.00 $93,480.00 19 Structural Concrete Vault EA 6 $78,840.00 $473,040.00 20 Caltrans Encroachment Permit LS 1 $10,000.00 $10,000.00 #15..
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(I Street, G Street, and Sierra Drive)
Total: $1,843,555.00
Percent From Engineer's Estimate: -3.68%
United Pavement Maintenance Inc.
(209) 883-4345 PO Box 1017, Hughson, CA 95326
Base Bid
1 Mobilization/Demobilization LS 1 $111,728.00 $111,728.00 2 Traffic Control/Handling, Signage, and LS 1 $275,000.00 $275,000.00 Permitting
3 Water Pollution Control Plan (WPCP) LS 1 $48,100.00 $48,100.00 4 Trench Sheeting, Shoring, and Bracing LS 1 $35,000.00 $35,000.00 5 Potholing LS 1 $40,125.00 $40,125.00
6 Cleaning and Inspection of Steel Casings LS 1 $44,450.00 $44,450.00 7 Remove 6-inch CIP and Install 12-inch PVC LF 250 $675.00 $168,750.00 by Open Trench
8 Remove 8-inch CIP and Install 12-inch PVC LF 120 $741.00 $88,920.00 by Open Trench
9 Remove 12-inch CIP and Install 12-inch DIP LF 750 $325.00 $243,750.00 in Existing 18-inch Steel Casing
10 Remove 12-inch CIP and Install 12-inch LF 100 $852.00 $85,200.00 PVC by Open Trench
11 Remove 12-inch PVC and Install 12-inch LF 20 $867.00 $17,340.00 PVC by Open Trench
12 4-inch Gate Valve, Valve Box. And 3 or 4- EA 2 $6,940.00 $13,880.00 inch Irrigation Piping
13 6-inch Gate Valve, Valve Box, and 6-inch EA 1 $8,290.00 $8,290.00 PVC Piping
14 12-inch Gate Valve and Valve Box EA 11 $8,930.00 $98,230.00 15 12-inch Force Balanced Flexible Expansion EA 6 $27,725.00 $166,350.00 Joint
16 Fire Hydrant Assembly EA 3 $19,600.00 $58,800.00
17 Remove Fire Hydrant Assembly EA 1 $4,500.00 $4,500.00 18 Water Main Tie-In Support EA 6 $8,600.00 $51,600.00
19 Structural Concrete Vault EA 6 $78,230.00 $469,380.00 20 Caltrans Encroachment Permit LS 1 $10,000.00 $10,000.00 Total: $2,039,393.00
Percent From Engineer's Estimate: 6.55%
Engineer's Estimate
Base Bid
1 Mobilization/Demobilization LS 1 $79,365.00 $79,365.00 2 Traffic Control/Handling, Signage, and LS 1 $86,250.00 $86,250.00 Permitting
3 Water Pollution Control Plan (WPCP) LS 1 $57,500.00 $57,500.00 4 Trench Sheeting, Shoring, and Bracing LS 1 $57,500.00 $57,500.00 5 Potholing LS 1 $40,250.00 $40,250.00
6 Cleaning and Inspection of Steel Casings LS 1 $57,500.00 $57,500.00 7 Remove 6-inch CIP and Install 12-inch PVC LF 250 $460.00 $115,000.00 by Open Trench
8 Remove 8-inch CIP and Install 12-inch PVC LF 120 $518.00 $62,160.00 by Open Trench
9 Remove 12-inch CIP and Install 12-inch DIP LF 750 $865.00 $648,750.00 in Existing 18-inch Steel Casing
10 Remove 12-inch CIP and Install 12-inch LF 100 $575.00 $57,500.00 #15..
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(I Street, G Street, and Sierra Drive)
PVC by Open Trench
11 Remove 12-inch PVC and Install 12-inch LF 20 $575.00 $11,500.00 PVC by Open Trench
12 4-inch Gate Valve, Valve Box. And 3 or 4- EA 2 $3,450.00 $6,900.00 inch Irrigation Piping
13 6-inch Gate Valve, Valve Box, and 6-inch EA 1 $4,600.00 $4,600.00 PVC Piping
14 12-inch Gate Valve and Valve Box EA 11 $9,200.00 $101,200.00 15 12-inch Force Balanced Flexible Expansion EA 6 $51,750.00 $310,500.00 Joint
16 Fire Hydrant Assembly EA 3 $23,000.00 $69,000.00
17 Remove Fire Hydrant Assembly EA 1 $575.00 $575.00
18 Water Main Tie-In Support EA 6 $5,750.00 $34,500.00
19 Structural Concrete Vault EA 6 $17,250.00 $103,500.00 20 Caltrans Encroachment Permit LS 1 $10,000.00 $10,000.00 Total: $1,914,050.00
#15..
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#16..
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Modesto City CouncilFebruary 24, 2026

Modesto City Council
February 24, 2026