A former MPD Crime and Intelligence Analyst now works for RTI International. This analyst previously assisted with stat collection, research, and writing the MPD’s BSCC CalVIP grant proposal. This prior institutional knowledge will benefit the grant measurement and outcome reporting required by BSCC as it is anticipated that RTI will have this employee assigned as part of the research and evaluation team to work on the CalVIP grant requirements. In addition, RTI has several staff briefed on our grant and are ready to proceed and help the MPD meet its reporting deadlines if awarded the contract.
RTI International will work with the Modesto Police Department and Parks, Recreation and Neighborhoods Department internally along with the contracted Community Based Organizations (Boys and Girls Club of Stanislaus County, Legacy Alliance Outreach and El Concilio) to determine BSCC grant tracking and statistical needs. Additionally, RTI International will complete the required Local Evaluation Plan due to the BSCC by January 3, 2023, assist with quarterly reporting, statistical and evaluation measurements, and our final grant evaluation, measuring the overall impact CalVIP provides for a safer community and crime reduction. The proposed contract is for the duration of the grant and final reporting (December 31, 2025).
In accordance with MMC Section 8-3.204(a), Exceptions to Formal Bidding Requirements, the agreement is for professional services and, therefore, exempt from the bidding requirement. The approval for the grant program evaluation services to RTI International conforms to MMC 8-
3.204, subsection (a) as they are providing professional services for the MPD’s BSCC CalVIP grant program inclusive of a Local Evaluation Plan, quarterly performance reporting, statistical and evaluation measurements and the final grant program evaluation as required in the BSCC CalVIP grant agreement.
FISCAL IMPACT:
Funding for the BSCC CalVIP grant program evaluation services is budgeted and approved in the grant agreement. Per the BSCC CalVIP Request for Proposals, “applicants must dedicate a minimum of five percent (5%) with a maximum of ten percent (10%) of the total grant funds requested for evaluation planning, oversight, and reporting activities.” Based on this requirement and the complexities of the Modesto BSCC CalVIP grant.
COMMITTEE RECOMMENDATION:
This item was not presented to committee.
DocuSign Envelope ID: 1A0044C3-6BA5-4357-836D-0EE572F8BA4B DocuSign Envelope ID: A905CA26-FF1F-41F3-A41B-1A096ABED15E #3..
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City Council Meeting, December 13, 2022
Agreement for California Violence Intervention and Prevention Grant Program Evaluation Services
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving an agreement with RTI International for evaluation services for the Board of State and Community Corrections California Violence Intervention and Prevention Grant Program in an amount not to exceed $155,000 over three years; and authorizing the City Manager, or his designee, to execute the agreement.
Approved by:
Brandon Gillespie, Chief of Police
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Agreement
3. Bid Waiver
4. Exhibit A – Statement of Work
5. Exhibit B - Pricing
DocuSign Envelope ID: 1A0044C3-6BA5-4357-836D-0EE572F8BA4B DocuSign Envelope ID: A905CA26-FF1F-41F3-A41B-1A096ABED15E #3..
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12/13/2022/Police/JSmart/Item 18 1 2022-488
MODESTO CITY COUNCIL
RESOLUTION NO. 2022-488
RESOLUTION APPROVING AN AGREEMENT WITH RTI INTERNATIONAL
FOR EVALUATION SERVICES FOR THE BOARD OF STATE AND
COMMUNITY CORRECTIONS CALIFORIA VIOLENCE INTERVENTION
AND PREVENTION GRANT PROGRAM IN AN AMOUNT NOT TO EXCEED $154,955 OVER THREE YEARS; AND AUTHORIZING THE CITY MANAGER,
OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT
WHEREAS, on February 1, 2022, the City Council approved the submission of a grant application for the Board of State and Community Corrections (BSCC) California Violence Intervention and Prevention (CalVIP) Grant Program by Resolution No. 2022- 070; and
WHEREAS, on July 12, 2022, the City Council approved to accept the BSCC CalVIP Grant by Resolution No. 2022-305; and
WHEREAS, the Modesto Police Department (MPD) was awarded the BSCC CalVIP Grant in the amount of $2,215,217 in grant funds with a 100% match requirement of $2,215,217; and
WHEREAS, the grant requires 5-10% of the total grant funds be used to seek outside services for a Local Evaluation Plan and ongoing grant evaluation measures; and WHEREAS, based on the above-mentioned requirement and the complexities of the Modesto BSCC CalVIP grant, $155,000, or 7.5%, was allocated for program evaluation services; and
WHEREAS, RTI International is an independent, nonprofit research institute with a proven ability to perform the BSCC required services; and DocuSign Envelope ID: 1A0044C3-6BA5-4357-836D-0EE572F8BA4B DocuSign Envelope ID: A905CA26-FF1F-41F3-A41B-1A096ABED15E #3..
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12/13/2022/Police/JSmart/Item 18 2 2022-488
WHEREAS, RTI International has been fully vetted and valued with the Federal General Services Administration (GSA) and have worked on similar projects successfully; and
WHEREAS, in accordance with MMC Section 8-3.204(a), Exceptions to Formal Bidding Requirements, the agreement is for professional services and, therefore, exempt from the bidding requirement; and
WHEREAS, the approval for the grant program evaluation services to RTI International conforms to MMC 8.3-204, subsection (a) as they are providing professional services for the MPD’s BSCC CalVIP grant program inclusive of a Local Evaluation Plan, quarterly performance reporting, statistical and evaluation measurements and the final grant program evaluation as required in the BSCC CalVIP grant agreement.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves entering into an agreement with RTI International for the evaluation services of the Board of State and Community Corrections California Violence Intervention and Prevention Grant Program in an amount not to exceed $154,955.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the agreement.
DocuSign Envelope ID: 1A0044C3-6BA5-4357-836D-0EE572F8BA4B DocuSign Envelope ID: A905CA26-FF1F-41F3-A41B-1A096ABED15E #3..
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DocuSign Envelope ID: 1A0044C3-6BA5-4357-836D-0EE572F8BA4B DocuSign Envelope ID: A905CA26-FF1F-41F3-A41B-1A096ABED15E #3..
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1 FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT
FOR GRANT EVALUATION, RESEARCH AND REPORTING CONSULTANT
AGREEMENT WITH MODESTO POLICE DEPARTMENT
This First Amendment (“Amendment”) is made to the Agreement entered into the CITY OF MODESTO, this ______ day of ____________, 2024, by and between the CITY OF MODESTO, a municipal corporation of the State of California (hereinafter the “City”) and Research Triangle International (RTC), a North Carolina non-profit corporation, (hereinafter “Consultant”).
RECITALS
This First Amendment to Agreement for grant evaluation, research and reporting services is made with regard to the following recitals:
1. An AGREEMENT, hereinafter referred to as AGREEMENT was entered into by and between CITY and CONSULTANT on the 13th day of DECEMBER 2022 for the furnishing of grant evaluation, research and reporting services, for an amount not to exceed $154,955.
2. CONSULTANT represents that it is qualified, willing and able to provide the services to prepare said document(s).
NOW, THEREFORE, in consideration of this First Amendment, and the mutual promises, covenants, and stipulations contained in the Original Agreement for grant evaluation, research and reporting services and this Amendment to Agreement, the parties agree as follows:
1. Section 1 “SCOPE OF SERVICES” of the Original AGREEMENT shall be amended to expand the scope to also include the requirements of the Organized Retail Theft (ORT) grant in addition to the CalVIP grant.
DocuSign Envelope ID: EA5B5C59-918C-4726-936F-9D9C5C918842 5th March
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2 a. Consultant shall undertake and complete the preparation of the scope of work as set forth and described in the documents attached hereto and referred to as Exhibit “A” or “project” and Exhibit “C” or “project”. The consultant shall perform the services as described in Exhibits “A and “C” in a manner compatible with the standards of its profession and shall produce a fully complete project that is acceptable to City.
2. Section 2 “TERM OF AGREEMENT” of the Original AGREEMENT shall be amended to continue through the completion of the ORT Grant and also include Exhibit “C” in addition to Exhibit “A”.
a. This AGREEMENT is effective as of the dater first written above and will continue in effect for ??? months or until the City’s acceptance of and payment for all services authorized by City and performed by Consultant unless terminated earlier in accordance with the provisions of the termination clause in this Agreement. b. City hereby gives Consultant notice to proceed with the preparation of the project in the manner described in Exhibits “A” and “C”, as of the Effective Date of this agreement. Consultant shall diligently proceed with the preparation of the project and agrees to complete said preparation within the time period set forth in Exhibits “A” and “C”.
3. Section 3 “COMPENSATION” of the Original AGREEMENT shall be amended to increase the sum not to exceed from $154,955 to $408,839. a. Consultant agrees to accept a sum not to exceed $408,839 as full remuneration for performing all services and furnishing all staffing and materials called for in Exhibits “A” and “C” and for performance by Consultant of all its duties and obligations under this Agreement.
DocuSign Envelope ID: EA5B5C59-918C-4726-936F-9D9C5C918842 #3..
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3 b. City shall pay Consultant on a time and materials basis for work performed in accordance with Exhibits “A” and “C” to this agreement. All work to be performed under this agreement shall be billed at the rates set forth in Exhibits “B” and “D” attached hereto, Consultant shall submit monthly invoice to City which include detailed tasks, hours worked, and billable rates for all work completed.
4. Except as modified and amended by this FIRST AMENDMENT to the AGREEMENT, all other provisions of the Agreement shall remain unchanged and full force and effect.
IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Amendment to Agreement by its City Manager and attestation by its City Clerk on the ________ day of ___________, 2024, and Research Triangle International has caused this Agreement to be duly executed as of the Effective Date.
DocuSign Envelope ID: EA5B5C59-918C-4726-936F-9D9C5C918842 5th March
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CITY OF MODESTO,
a municipal corporation
BY: ____________________________
JOSEPH P. LOPEZ, City Manager
ATTEST:
(Seal)
BY: ____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
________________________________
BY: ____________________________
By _____________________________
Name Title
BY: ____________________________
By _____________________________
Name Title
APPROVED AS TO FORM:
BY: ____________________________
JOSE M. SANCHEZ, City Attorney
APPROVED AS TO FORM:
BY: ____________________________
CHRISTINA ALGER, Director of
Human Resources
Federal ID # ___________
DocuSign Envelope ID: EA5B5C59-918C-4726-936F-9D9C5C918842 RTI - Research Triangle Institute
Sr. Contracting Officer
UEI: JJHCMK4NT5N3
Raushanah Charles
3/9/2024
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
February 27, 2024
Date: February 3, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Brandon Gillespie, Chief of Police
SUBJECT: First Amendment to Grant Evaluation, Research and Reporting Consultant Agreement with Research Triangle Institute
CONTACT: Chris Adams, Captain, [email protected], 209-572-9500 DESCRIPTION:
Consider approving a First Amendment to the Grant Evaluation, Research and Reporting Agreement with Research Triangle Institute, Research Triangle Park, North Carolina, for the Board of State and Community Corrections' California Violence Intervention and Prevention Grant Program to expand to include the Board of State and Community Corrections’ Organized Retail Theft Prevention Grant Program for a revised total amount not to exceed $408,839 and extending the term of the agreement from December 12, 2025, to June 12, 2027. (Funding Source: Police Grants)
STRATEGIC PLAN ELEMENT:
This item is related to the adopted City Council 2020-2025 Strategic Plan focus area of Quality of Life under Goal - Improve Community Safety.
BACKGROUND:
On December 13, 2022, by Resolution No. 2022-488, Council approved an agreement with Research Triangle Institute (RTI) International for independent evaluations services related to the Board of State and Community Corrections California Violence Intervention and Prevention Grant Program (BSCC CalVIP). This agreement is ongoing and provides for grant evaluation, research, and reporting services for the CalVIP grant awarded to the City of Modesto.
Since that time, the Modesto Police Department has applied for and been awarded another grant from the Board of State and Community Corrections. In September of 2023, the Modesto Police Department was awarded $6,003,419 in Organized Retail Theft Prevention (ORT) Grant funds from the Board of State and Community Corrections (BSCC) and the grant was accepted by the Council by Resolution No. 2023-431. The grant funding specifies the need for a local evaluation to be completed for reporting to BSCC the progress and impact of the grant funding.
The local evaluator is required to evaluate the specific BSCC guidelines, to ensure objectives and deliverables are met, and to make a clear, logical, project process evaluation report. This #3..
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City Council, February 27, 2024
First Amendment to Grant Evaluation, Research and Reporting Consultant Agreement with Research Triangle Institute
includes process and outcome measures, number of operations, estimated value of stolen property recovered, staffing, effectiveness.
DISCUSSION:
Since December of 2022, the City of Modesto has been in an agreement with RTI for evaluation of the CalVIP Grant from BSCC. RTI has fulfilled all their obligations of the agreement to date and has proven to be a trusted and reliable vendor for grant evaluation, research, and reporting services.
As part of the BSCC funding for the ORT Grant, grantees are required to set aside at least $75,000 but not more than five percent (5%) of the total grant award for data collection and evaluation efforts, including data collection for quarterly progress reports and statewide evaluation and the development of the Local Evaluation Plan and Local Evaluation Report. As part of the Police Department’s application and subsequent award, $255,000 was set aside within the grant funding to fulfill this grant requirement.
RTI is an independent, nonprofit research institute with a proven ability to perform the BSCC required services. RTI has been fully vetted and valued by the Federal General Services Administration (GSA). RTI provided a proposed scope of work in a Technical Proposal and cost in a Business Proposal. The scope of work required for the BSCC ORT Grant for the data collection and evaluation requirement is similar in scope to that of the work RTI is already conducting for the BSCC CalVIP Grant. This includes reporting, statistical and evaluation measurements, and our final grant evaluation, measuring the overall impact our efforts provide for a safer community and crime reduction. The evaluation of the ORT Grant will include these items as well as process and outcome measures, number of operations estimated, value of stolen property recovered, staffing, and effectiveness.
Because of the current agreement with RTI International and their ability to meet the needs of BSCC reporting, coupled with the similarity in scope of work, making a modification to the current agreement would be the most seamless and efficient solution.
Modesto Municipal Code Section 8-3.203 generally requires all purchases which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204(f) “Where the Purchasing Manager, in her discretion, determines that it is appropriate to amend the services or goods provided under an existing agreement to include additional similar goods or services, of limited quantity or scope, in order to increase efficiency and avoid delays or disruptions to City projects or services.” Amending the existing agreement with RTI for Grant Evaluation, Research and Reporting Services qualifies for this exemption as RTI is already performing these services for the CalVIP grant which is a BSCC grant and expanding the scope to include the ORT grant which is also a BSCC grant will help the Police Department avoid delays related to the reporting and evaluation requirements of both grants and increase efficiency as the evaluation needs for both grants are similar in nature and format.
FISCAL IMPACT:
BSCC ORT grantees were required to set aside at least $75,000 but not more than five percent (5%) of the total grant award for data collection and evaluation efforts, including data collection for quarterly progress reports and statewide evaluation and the development of the Local #3..
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City Council, February 27, 2024
First Amendment to Grant Evaluation, Research and Reporting Consultant Agreement with Research Triangle Institute
Evaluation Plan and Local Evaluation Report. As such, the Police Department set aside $255,000 in the grant budget for grant evaluation and data collection services. Project 101537 has been established for the BSCC ORT Grant and $255,000 is budgeted in Appropriation Unit C with a task of Data Collection/Evaluation. There is no impact to the General Fund for these services.
COMMITTEE RECOMMENDATION:
Due to time constraints this item was not presented to the committee.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving a First Amendment to the Agreement with Research Triangle Institute for Grant Evaluation, Research and Reporting Services by increasing the agreement by $253,884 from $154,955 to a new total amount not to exceed $408,839 and extending the term of the agreement from December 12, 2025, to June 12, 2027; and authorizing the City Manager, or his designee, to execute the Amendment.
Approved by:
Brandon Gillespie, Chief of Police
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. First Amendment with Exhibits
3. Original Signed Agreement with Exhibits
4. Executed Bid Waiver
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02/27/2024/MPD/CAdams/Item 17 1 2024-067
MODESTO CITY COUNCIL
RESOLUTION NO. 2024-067
RESOLUTION APPROVING A FIRST AMENDMENT TO THE AGREEMENT
WITH RESEARCH TRIANGLE INSTITUTE FOR GRANT EVALUATION,
RESEARCH AND REPORTING SERVICES BY INCREASING THE
AGREEMENT BY $253,884 FROM $154,955 TO A NEW TOTAL AMOUNT NOT TO EXCEED $408,839 AND EXTENDING THE TERM OF THE AGREEMENT FROM DECEMBER 12, 2025, TO JUNE 12, 2027; AND AUTHORIZING THE
CITY MANAGER, OR HIS DESIGNEE TO EXECUTE THE AMENDMENT
WHEREAS, December 13, 2022, Research Triangle Institute (RTI), entered into an agreement with the City of Modesto to perform grant evaluation, research and reporting services related to the Board of State and Community Corrections (BSCC) California Violence Intervention and Prevention Grant Program (CalVIP) for an amount not to exceed $154,884; and
WHEREAS, since that time, the Modesto Police Department (MPD), has applied for and been awarded another grant from the Board of State and Community Corrections for the Organized Retail Theft (ORT) Prevention Grant, and WHEREAS, the grant funding specifies the need for local evaluation to be completed for reporting to BSCC the progress and impact of the grant funding; and WHEREAS, the local evaluator is required to evaluate the specific BSCC guidelines, to ensure objectives and deliverables are met, and to make a clear, logical, project process evaluation report; and
WHEREAS, RTI is an independent, nonprofit research institute with a proven ability to perform the BSCC required services; and
WHEREAS, the scope of work required for the BSCC ORT Grant for the data collection and evaluation requirement is similar in scope to that of the work RTI is already conducting for the BSCC CalVIP Grant; and
DocuSign Envelope ID: EA5B5C59-918C-4726-936F-9D9C5C918842 #3..
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02/27/2024/MPD/CAdams/Item 17 2 2024-067
WHEREAS, the Modesto Police Department seeks approval to increase the funds available on the agreement by $253,884 and extend the term of the agreement to June 12, 2027; 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(f) “Where the Purchasing Manager, in her discretion, determines that it is appropriate to amend the services or goods provided under an existing agreement to include additional similar goods or services, of limited quantity or scope, in order to increase efficiency and avoid delays or disruptions to City projects or services.” Amending the existing agreement with RTI for Grant Evaluation, Research and Reporting Services qualifies for this exemption as RTI is already performing these services for the CalVIP grant which is a BSCC grant and expanding the scope to include the ORT grant which is also a BSCC grant will help the Police Department avoid delays related to the reporting and evaluation requirements of both grants and increase efficiency as the evaluation needs for both grants are similar in nature and format.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a First Amendment to the agreement with Research Triangle Institute for Grant Evaluation, Research and Reporting Services by increasing the agreement by $253,884 from $154,955 to a new total amount not to exceed $408,839 and extending the term of the agreement from December 12, 2025, to June 12, 2027.
BE IT FURTHER RESOLVED, that the City Manager, or his designee is hereby authorized to execute the Amendment, in a form approved by the City Attorney.
DocuSign Envelope ID: EA5B5C59-918C-4726-936F-9D9C5C918842 #3..
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DocuSign Envelope ID: EA5B5C59-918C-4726-936F-9D9C5C918842 #3..
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1 SECOND AMENDMENT TO CONSULTANT SERVICES AGREEMENT
FOR GRANT EVALUATION, RESEARCH AND REPORTING WITH RESEARCH
TRIANGLE INSTITUTE (RTI INTERNATIONAL)
This Second Amendment (“Amendment”) is made to the Agreement entered into the CITY OF MODESTO, this ______ day of ____________, 2024, by and between the CITY OF MODESTO, a municipal corporation of the State of California (hereinafter the “CITY”) and Research Triangle Institute (RTI International), a North Carolina non-profit corporation, (hereinafter “CONSULTANT”).
RECITALS
This Second Amendment to the Agreement for Grant Evaluation, Research and Reporting services is made with regard to the following recitals:
1. CITY and CONSULTANT entered into an Agreement for Grant Evaluation, Research and Reporting services on the 13th day of December 2022 (the “Original Agreement”).
2. CITY and CONSULTANT approved the First Amendment to the Original Agreement on the 5th day of March 2024 (First Amendment) extending the “TERM OF AGREEMENT” of the Original Agreement to include work as described in Exhibit “C” and increased the “COMPENSATION” to a sum not to exceed $408,839.
3. CITY and CONSULTANT desire to amend the “TERM OF AGREEMENT” of the Original Agreement to extend by eighteen (18) months or until the City’s acceptance of and payment for all services authorized by City and performed by Consultant unless terminated earlier in accordance with the provisions of the termination clause in the Original Agreement.
Docusign Envelope ID: 0906745D-1550-4864-9EF9-DE3570126215 1st August
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2 4. CITY and CONSULTANT desire to amend the Original Agreement by expanding the “Performance by Key Employees” section to include employees listed in Exhibit “C”.
NOW, THEREFORE, in consideration of this Second Amendment, and the mutual promises, covenants, and stipulations contained in the Original Agreement, the First Amendment and this Second Amendment to the Original Agreement, the parties agree as follows:
1. Section 2 “Term of Agreement”, as amended by the First Amendment is deleted and replaced in its entirety as follows:
a. This AGREEMENT is effective as of the date first written above and will continue in effect until June 12, 2027, or until the City’s acceptance of and payment for all services authorized by City and performed by Consultant unless terminated earlier in accordance with the provisions of the termination clause in this Agreement. b. City hereby gives Consultant notice to proceed with the preparation of the project in the manner described in Exhibits “A” and “C”, as of the Effective Date of this agreement. Consultant shall diligently proceed with the preparation of the project and agrees to complete said preparation within the time period set forth in Exhibits “A” and “C”.
2. Section 5 “Performance by Key Employees” of the Original Agreement shall be amended so that Consultant’s employees identified in Exhibit “C” will be primarily responsible for performing the services identified in that exhibit.
3. Except as modified and amended by this Second Amendment to the Original Agreement, all other provisions of the Original Agreement shall remain unchanged and full force and effect.
Docusign Envelope ID: 0906745D-1550-4864-9EF9-DE3570126215 #3..
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3 Docusign Envelope ID: 0906745D-1550-4864-9EF9-DE3570126215 IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Second Amendment to the Original Agreement by its City Manager and attestation by its City Clerk on the 30th day of August, 2024, and Research Triangle Institute (RTI International) has caused this Second Amendment to be duly executed as of the Effective Date.
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BY: ____________________________
JOSEPH P. LOPEZ, City Manager
ATTEST:
(Seal)
BY: ____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
BY: ____________________________
By _____________________________
Name Title
BY: ____________________________
By _____________________________
Name Title
APPROVED AS TO FORM:
BY: ____________________________
JOSE M. SANCHEZ, City Attorney
APPROVED AS TO FORM:
BY: ____________________________
MATTHEW BRALEY, ARM-PE, Risk Manager
Federal ID # ___________
Docusign Envelope ID: 0906745D-1550-4864-9EF9-DE3570126215 560686338
Raushanah Charles Sr. Contracting Officer
8/30/2024
CITY OF MODESTO,
a municipal corporation
Research Triangle Institute
_______________________________
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California Levine Act Disclosure
California Government Code Section 84308, also known as the "Levine Act", prohibits City “officers” from participating in any action related to a license, permit, or other entitlement for use (a “proceeding”) if such member accepts, solicits, or directs political contributions from a party to the proceeding or their agent totaling more than $500 while the proceeding is pending before the agency, and for twelve (12) months following the date a decision concerning the proceeding has been made. The Levine Act also requires disclosure of such contribution by a party to the proceeding.
Section 84308(a)(4) of the Levine Act defines an "officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:
An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency of officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position; (2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4)Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.
A list of Modesto City Council Board Members can be found online at: Modesto City Council https://modestogov.com/706/Council-Members (modestogov.com). The party making this certification is responsible for determining whether a recipient of a political contribution is a City officer prior to answering the following questions:
1. Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $500 to any City officer, in the twelve (12) months preceding the date of the submission of your proposals or the anticipated date of any Council action related to this contract?
___ YES If yes, please identify the Councilmember(s):
___ NO
2. Do you, or your company, or any agent on behalf of you or your company, anticipate or plan to make any political contribution of more than $500 to any City officer in the twelve (12) months following any Council action related to this contract?
___ YES If yes, please identify the Councilmember(s):
___ NO
X
X
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Answering YES to either of the questions above does not preclude the City of Modesto from awarding a contract to your firm or taking any subsequent action related to the contract. It may, however, preclude the identified City officer from participating in any actions related to such contract.
HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
_________________ _____________________________
Date Signature of authorized individual
_____________________________
Company/Applicant Name
04/16/2026
Research Triangle Institute
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CITY OF MODESTO
COMMITTEE AGENDA REPORT
DATE OF MEETING:
May 11, 2026
Date: April 14, 2026
TO: Safety and Communities Committee
Chris Ricci, Chair
Rosa Escutia-Braaton, Vice-Chair
Jeremiah Williams, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Brandon Gillespie, Chief of Police
SUBJECT: Purchase Agreement for Federal Brand Ammunition CONTACT: Jessica Nicholson, Police Administrator, [email protected], 209-572-9500
DESCRIPTION:
Consider an Agreement with San Diego Police Equipment Co. Inc., San Diego, CA, for Federal Brand Ammunition for a total amount not to exceed $1,250,000 over five (5) years and forwarding to Council for approval. (Funding Source: General Fund) STRATEGIC PLAN ELEMENT:
This item is related to the adopted City Council 2025-2026 Strategic Plan for Governance and Service Delivery by building community trust in city government through responsible, transparent, and efficient service delivery.
BACKGROUND:
The Modesto Police Department (MPD) maintains an inventory of ammunition for issuance to sworn officers for duty and training purposes. Purchases are made throughout the year to replenish supply for the department.
Twenty-five years ago, the Modesto Police Department (MPD) tested several brands of ammunition using the Federal Bureau of Investigation’s (FBI) established standardized bullet testing protocol. The best performing bullet was the Speer Gold Dot; however, this brand is not cost effective. The next best performing bullet was from Federal Brand, which is also competitively priced when compared to brands like Remington and Winchester, but that did not perform well in the standardized test. Approximately seven (7) years ago, the MPD utilized Remington brand ammunition and experienced many #4..
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Safety and Communities, Committee, May 11, 2026
Purchase Agreement for Federal Brand Ammunition
issues with the ammunition not cycling and feeding certain weapon types. The MPD’s continued use of Federal Brand ammunition is based on its proven reliability, consistency, and alignment with modern law enforcement standards. Use of Federal Brand ammunition reduces the risk of malfunctions and ensures continuity in training and field performance.
On February 27, 2018, by Resolution No. 2018-88, Request for Bid (RFB) 1718-22 was approved by Council to be awarded to two vendors: San Diego Police Equipment Co. for Federal Brand Ammunition for a two (2) year agreement with three one-year extension options, and to Proforce Law Enforcement for Remington ammunition for a two-year agreement with three one-year extension options.
On February 26, 2020, the agreement with Proforce Law Enforcement expired and an extension option was not exercised due to the manufacturers’ inability to provide Remington brand. The San Diego Police Equipment Co. agreement also expired, and the vendor opted not to extend the agreement due to their inability to stay within terms of the agreement due to the pandemic and a surge in sales which created long leadtimes and limited availability.
On April 27, 2021, by Resolution No. 2021-158, Council approved the Agreement to San Diego Police Equipment Co. for Federal Brand Ammunition for a one (1) year agreement with four (4) one-year extension options. San Diego Police Equipment was the only vendor that responded to RFP 2021-16, and through investigation to determine the limited response to the bid, it was discovered that San Diego Police Equipment Co. is the only authorized distributor in California to sell the Federal brand ammunition. On April 6, 2026, the agreement expired, thus a new sole source agreement has been negotiated.
DISCUSSION:
The Modesto Police Department requires a consistent and reliable supply of duty and training ammunition to support ongoing law enforcement operations, officer readiness and mandated training requirements. Ammunition is a critical resource that ensures officers are properly equipped to perform their duties safely and effectively.
Given current market conditions – including industry-wide price increases driven by supply chain constraints and rising material costs, particularly brass – the Department must secure a stable and uninterrupted supply over the contract term. This approach prevents operational disruptions that could impact officer readiness and the Department’s ability to meet mandated training requirements.
On June 5, 2025, the City Manager authorized the Purchasing Manager to solicit the procurement for Federal Brand Ammunition. Due to contract that San Diego Police Equipment holds with the manufacturer, there was a delay in securing the pricing for the agreement.
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Safety and Communities, Committee, May 11, 2026
Purchase Agreement for Federal Brand Ammunition
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 formal bid procedures. However, MMC 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. Here, the Modesto Police Department has utilized Federal Brand ammunition for both duty and range/training usage for many years, and it is proven and consistent. Therefore, staff recommends that the Federal Brand Ammunition of this Agreement to San Diego Police Equipment Co., Inc. be exempt from the formal bidding procedures in accordance with Modesto Municipal Code 8-3.204(b), since San Diego Police Equipment Co., Inc. is the Sole Provider of Federal Brand Ammunition.
FISCAL IMPACT:
Funding for the requested (5) five-year agreement with San Diego Police Equipment, Co., Inc., San Diego, CA, is not to exceed $1,250,000. Funds are budgeted in the current Police Department Fiscal Year Operating Budget in the Records and Support cost center’s Tools and Field Supplies account, which resides in the General Fund.
Agreement Totals
Year 1 $230,000
Year 2 $240,000
Year 3 $250,000
Year 4 $260,000
Year 5 $270,000
TOTAL: $1,250,000
Below are the totals for the prior (5) five-year agreement from 2021-2026. The proposed agreement amount accounts for ongoing increases in ammunition costs and anticipated operational needs over the term of the agreement. Ammunition production is heavily dependent on brass and other raw materials, and fluctuating commodity pricing, limited manufacturing capacity, and extended lead times continue to contribute to annual cost increases. While price escalation has moderated in recent years, annual increases remain expected with each contract extension options. Additionally, the Department’s continued hiring of sworn personnel and increases in sworn staffing allocations are expected to increase the demand for both training and duty ammunition throughout the agreement term.
Agreement Totals
FY 21/22 $91,176
FY 22/23 $141,494
FY 23/24 $51,884
FY 24/25 $259,575
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Safety and Communities, Committee, May 11, 2026
Purchase Agreement for Federal Brand Ammunition
FY 25/26 $49,197
TOTAL: $593,326
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COMMITTEE ACTION:
Staff Recommendations:
Motion recommending the Sole Source Agreement with San Diego Police Equipment, Co. Inc, San Diego, CA, for Federal Brand Ammunition for a one (1) year Agreement with four (4) one-year extension options, for an estimated annual amount $250,000, and a total amount not to exceed $1,250,000 over five (5) years; and forwarding to Council for approval.
Approved by:
Brandon Gillespie, Chief of Police
Joseph P. Lopez, City Manager
Attachments:
1. Agreement
2. Exhibit B – Pricing Table
3. Financial Interest Disclosure form
4. CA Levine Act Disclosure form
5. Signed Bid Waiver
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1 ANNUAL PURCHASE AGREEMENT
FEDERAL BRAND AMMUNITION - AGREEMENT #323128
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 San Diego Police Equipment Co. Inc., a California corporation, hereinafter called VENDOR, WHEREAS, the Modesto City Council adopted Resolution No. 2026 - ______ authorizing the Award of agreement for the Federal Brand Ammunition materials, supplies or equipment described herein (the “GOODS”) to VENDOR, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CITY and VENDOR shall enter into a sole source agreement for the purchase of Federal Brand Ammunition as described in IFB-2425-55, attached hereto as Exhibit “B” and made a part hereof, and
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. TERM OF AGREEMENT:
The term of the AGREEMENT shall be for a period of one (1) year, with four (4) one-year extension options by mutual written consent of both parties, for a total of up to five (5) years.
Year 1: APRIL 7, 2026, through APRIL 6, 2027
Year 2: APRIL 7, 2027, through APRIL 6, 2028
Year 3: APRIL 7, 2028, through APRIL 6, 2029
Year 4: APRIL 7, 2029, through APRIL 6, 2030
Year 5: APRIL 7, 2030, through APRIL 6, 2031
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2 2. PRICING:
A. Per the aforementioned Council Resolution, the annual estimated amount of the AGREEMENT is $250,000. The total amount paid by CITY to VENDOR over the full term of the AGREEMENT shall not exceed $1,250,000.
B. The AGREEMENT pricing is attached hereto as Exhibit "B". Pricing during AGREEMENT Year one shall be as set forth in Exhibit "B", attached hereto and made a part hereof by this reference.
C. The CITY and VENDOR may agree to update the products and prices contained in Exhibit "B" to add, remove, or substitute items, or change pricing. All changes shall be in writing and approved by the Finance Director.
D. Pricing shall remain firm for the first year of the AGREEMENT.
E. Price increases for each subsequent AGREEMENT years two, three, four, and five, shall be negotiated in good faith by the parties, but in no instance may exceed the net percentage increase during the prior 12-month period in the Federal Bureau of Labor Statistics’ Consumer Price Index (CPI) for West Urban Area. Requests for price increases in any renewal year shall be submitted by VENDOR in writing at least ninety (90) days prior to the annual anniversary date of the AGREEMENT.
3. USAGE:
Vendor shall provide whatever quantities may be required during the term of this Agreement. No minimum or maximum quantities are guaranteed or implied by CITY.
4. ORDERING:
Vendor shall deliver GOODS to the location specified within CITY’s purchase order. Unless specified by the Purchasing Division, no GOODS may be delivered to CITY unless a purchase order has been provided by CITY to VENDOR.
5. PAYMENT:
All invoices shall be paid in full by CITY after completion and acceptance of the GOODS by the City, and receipt of a properly prepared invoice submitted by VENDOR via email to [email protected]. As specified by the Purchasing Division, every invoice must reference this AGREEMENT number or CITY’s purchase order number. VENDOR will be paid by CITY via Net 45 Days via manual check.
6. AMENDMENTS:
No changes to this AGREEMENT shall be effective unless documented by a written amendment to this AGREEMENT and signed by the parties hereto with CITY represented by the Purchasing Division. #4..
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3 7. TERMINATION:
A. 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 thirty (30) days after receipt of notification, the breaching party shall correct any nonperformance to the reasonable satisfaction of the non-breaching party. Failure to correct any nonperformance shall allow the non-breaching party to terminate this AGREEMENT for cause.
B. CITY may terminate this AGREEMENT for convenience upon thirty (30) days prior notice to VENDOR by CITY’s authorized employee.
8. INSPECTION:
All GOODS are subject to inspection and testing by the CITY for compliance with specifications as included herein, within a reasonable time after delivery. In the event GOODS are defective or not in conformity with this AGREEMENT or CITY’s purchase order, the CITY shall have the right to either reject the GOODS or require correction. Defective articles or services shall be removed from CITY premises and/or corrected by and at the expense of VENDOR; provided that should the VENDOR fail, neglect or refuse to do so, the CITY shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding quantity of any such items. CITY may deduct from any moneys due or that may there after coming due to VENDOR or send an invoice to the VENDOR which shall be paid within thirty (30) days, the difference between the prices named in the contract or purchase order and the actual cost thereof to the CITY. In the event that the VENDOR fails to make prompt delivery as specified for any item, the same conditions as to the rights of the CITY to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government. Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the Bidder. Failure by CITY to inspect and accept or reject shall not relieve the VENDOR from responsibility for compliance with specifications. Final acceptance shall be conclusive except as regards to latent defects, fraud, or such gross mistakes as amount to fraud.
9. RESPONSIBILITY:
Unless otherwise specified, the VENDOR shall be responsible for all GOODS until delivered at CITY’s designated delivery point and shall bear all risks as to items rejected or requiring correction after notice of such rejection or correction is given.
10. SHIPMENT:
Unless otherwise authorized by CITY’s Purchasing Division, GOODS shall be delivered F.O.B.
Destination Freight Prepaid and Included in Price of GOODS. VENDOR may not collect freight collect or charge shipping expenses otherwise to CITY. Original receipted freight bill must accompany the invoice. Shipment must be made within the time stated on Purchase Order, failing which CITY reserves the right to purchase elsewhere and charge VENDOR with any loss incurred, unless delay in making shipment is due to unforeseeable causes beyond the control and without the fault or negligence of VENDOR.
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4 11. CHANGES:
The AGREEMENT or purchase order may at any time, by written order of the CITY, be changed in regard to the GOODS to be furnished, quantities ordered, unit price, discount, delivery point or arrangements, terms or any other matters affecting a valid purchase order or AGREEMENT. In the event such change causes an increase or decrease in the cost of performance hereunder, and equitable adjustment will be made for the cost thereof, subject to the approval of the Purchasing Manager, and written notice given, therefore.
12. WARRANTY:
Notwithstanding any other provisions of the purchase order, VENDOR warranties for the GOODS shall extend for 90 days after delivery thereof to CITY, shall meet or exceed all original manufacturer warranties, and that GOODS shall be of the most suitable grade as specified in this AGREEMENT, VENDOR’s own marketing materials and in the purchase order. Moreover, VENDOR warrants and represents that GOODS shall comply with warranties of merchantability and fitness for a particular purpose. If a defect is discovered in any GOODS covered in this AGREEMENT, VENDOR shall correct at its expense, including transportation/freight, such defects as are reported within one year of final acceptance.
13. INSURANCE:
Any AGREEMENT or purchase order where work, maintenance, or service is performed on CITY property requires appropriate insurance. VENDOR shall ensure proper insurance certificates are on file with the CITY prior to performing onsite work. Contact CITY’s Purchasing Division to verify the type of insurance required.
14. TAX EXEMPTIONS:
The CITY is exempt from payment of federal excise tax. All invoices shall be exclusive of such excise tax. Moreover, if the CITY’s purchase is not subject to sales tax, the statement for resale will appear in the body of the purchase order.
15. INDEMNITIES:
A. VENDOR agrees to protect, indemnify and save harmless CITY and its agents, officers, employees, and volunteers from any claim, loss or damage from VENDOR’s, or the GOODs’, infringement of trademarks, patents, copyrights and unfair competition action with to any third party.
B. VENDOR shall hold the CITY and its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of VENDOR, or its agents, officers, employees, or subcontractors relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active #4..
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5 negligence of the CITY. VENDOR’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement for VENDOR to procure and maintain a policy of insurance VENDOR.
16. GOVERNING LAW:
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, U.S.A., without giving effect to its conflicts of law provisions or principles.
17. VENUE:
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.
18. ATTORNEY'S 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.
19. LIMITATION OF LIABILITY:
The CITY shall not be responsible for any damage that may accrue by reason of the death or injury of the person of the VENDOR’s officers, agents, employees, invitees, or licensees, or be set up at any time because of personal injury or damage to property sustained by any other person or persons, which may have been caused or contributed to, approximately or remotely, by reason of or in the course of performance of the AGREEMENT. The VENDOR shall assume full responsibility for the defense of any claims arising under the AGREEMENT and the VENDOR shall save, keep, and bear harmless the CITY, all officers and employees thereof, from all damages, costs, or expenses because of personal injury or property damage based on the performance of this AGREEMENT or asserted against it.
20. 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:
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6 VENDOR: San Diego Police Equipment Co. Inc.
Attention: Ryan King
8205-A Ronson Road
San Diego, CA 92111
(800) 367-8989
[email protected]
CITY: City of Modesto
Purchasing Division
Attention: Holly Gonzales
P.O. Box 642
Modesto, CA 95353
(209) 577-5405 [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
21. ASSIGNMENT:
Neither this AGREEMENT nor any portion hereof shall be subcontracted or assigned without the written consent of the CITY in each and every instance.
22. MISCELLANEOUS:
Time is of the essence in each and every provision of this AGREEMENT.
23. ENTIRE AGREEMENT:
This AGREEMENT and its exhibits contain the entire understanding between VENDOR and CITY.
Additional or new terms contained in this AGREEMENT which vary from VENDOR’S bid are controlling and are deemed accepted by VENDOR by provision of any GOODS or other commencement of performance hereunder. All previous bids, offers and communications relative 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.
24. 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.
IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this AGREEMENT by its Director of Finance under authority of Resolution No. 2026-____ adopted by the Council of the City of Modesto on the ____________, 2026 and San Diego Police Equipment Co. Inc., has caused this Agreement to be duly executed. #4..
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San Diego Police Equipment Co. Inc.
8205-A Ronson RoadSan Diego, CA 92111Ph: 800-367-8989
City of Modesto Contract#
323128
Prices Valid: April 7,
2026 thru April 6, 2027
No. Manufacturer Type Part Number Caliber Description Case Qty Old Price per Case New Price per Case 1 Federal HST P9HST2 9MM 147GR JHP CS/1000 $396.23 $402.71 2 Federal HST P45HST2 45ACP 230GR JHP CS/1000 $479.80 $486.113 Federal TRU T223A 223REM 55GR HI-SHOK SP CS/500 $316.81 $323.704 Federal HST P38HST1S 38SPL 125GR JHP CS/200 Discontinued5 Federal HST P380HST1 380ACP 99GR JHP CS/1000 $546.95 $443.026 Federal Amer Eagle AE223 223REM 55GR FMJ-BT CS/500 $233.12 $228.457 Federal Amer Eagle AE38K 38SPL 130GR FMJ CS/1000 $408.57 $408.578 Federal Amer Eagle AE380AP 380ACP 95GR FMJ CS/1000 $316.18 $316.189 Federal Tactical LE127RS 12GA 1oz HP SLUG, REDUCED RECOIL CS/250 $182.30 $186.59 10 Federal Tactical LE13200 12GA 00BUCK 9PLT, REDUCED RECOIL CS/250 $181.79 $183.8711 Federal Amer Eagle AE9AP 9MM 124GR FMJ CS/1000 $234.98 $228.1512 Federal Amer Eagle AE45A 45ACP 230GR FMJ CS/1000 $367.52 $367.5213 Federal Hydra-Shok P38HS1G 38SPL 129GR JHP +P CS/1000 $564.19 $564.19 #4..
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Revised /2025
Bid Waiver Approval Form
Supplier Name: Amount of Bid Waiver Request:
Supplier Contact: Supplier Phone No:
Are Federal Funds being utilized for portion of purchase? Yes No A bid waiver is required for any procurement commitment greater than $ 3,500 where a minimum of three bids are not obtained.
Justification for waiving the competitive bid requirements is limited to the following (provide detailed information in the comments section of form):
Reason for Bid Waiver - Check Box:
Sole Source - The item/service is unique in its specifications such that only one vendor is qualified to provide the good or service (Formal bidding exception under MMC 8-3.204(b)) – SOLE SOURCE LETTER ATTACHMENT REQUIRED OEM - Original Equipment Manufacturer / Distributor - OEM LETTER
ATTACHMENT REQUIRED
Inflexible time constraints preclude the bidding process - Exigent or emergency circumstances (Formal bidding exception under MMC 8-3.204 (c)) The incumbent's cost, delivery and quality can be compared to a previous quote/bid obtained within the last six months, for the same or similar item/service (Total purchase must be less than $100,000)
Professional Services defined under MMC 8-3.103 (Formal bidding exception under MMC 8-3.204 (a)) – staff should make effort to solicit at least three informal proposals.
Single Bid/Proposal – More than one supplier could provide the goods or service, but only one supplier provided bid/proposal for solicitation.
Amendment – Extending agreement for no more than one year to allow the City to complete formal bidding process for new agreement (MMC 8-3.204 (e)).
Amendment – Amending the goods or services under the existing agreement to include similar types of goods and services (MMC 8-3.204 (f)) Requisition No: Department:
Project Description:
The purchase of any item utilizing any Federal Funding must comply with current applicable Circular #4..
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Revised /2025
Other (requires detailed comments)
NEW TECHNOLOGY PURCHASES
Does the new technology meet the criteria to be reviewed by the Technology Steering and Alignment Committee (TSAC)? Yes ____ No ____
If yes, was it approved by this committee? Yes ____ No ____ Approval Name Signature Date
Requestor
Division Manager
Department Director
Chief Information Officeri
Buyer
Purchasing Manager
Director of Finance
i Information technology (IT) purchases will require Chief Information Officer Signature Buyer Comments:
(insert required text field in Adobe)
Comments
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CITY OF MODESTO
COMMITTEE AGENDA REPORT
DATE OF MEETING:
May 11, 2026
Date: April 28, 2026
TO: Safety and Communities Committee
Chris Ricci, Chair
Rosa Escutia-Braaton, Vice Chair
Jeremiah Williams, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Patrick Crowley, Interim Director of Public Works SUBJECT: Adoption of Modesto City-County Airport Governing Documents: Airport Minimum Standards, T-Hangar Use Policy, and Leasing Policy CONTACT: Marisol Navarro, Airport Manager, Airport Division, [email protected], 209-577-5319
DESCRIPTION:
Consider the adoption of policy documents governing operations and hangar leasing at the Modesto City-County Airport and forwarding to Council for approval. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:
The recommended action supports the City’s 2025-2026 Strategic Plan Initiatives:
Economic Vitality, Goal E: Drive the success of a vibrant and economically sustainable business climate; Strategy No. 3: Implement a streamlined development review process.
BACKGROUND:
Modesto City-County Airport is a publicly owned airport that supports general aviation, business aviation, and aviation-related services for the region. As part of the City’s responsibility as the airport sponsor, the City must ensure that airport operations comply with federal aviation requirements and maintain fair and consistent policies for airport users.
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Safety and Communities Committee, May 11, 2026
Adoption of Modesto City-County Airport Governing Documents
discrimination among aeronautical users, and protect the airport from incompatible uses. These documents establish consistent guidelines for airport tenants, aviation service providers, and users, and provide a framework for the orderly and compliant management of airport facilities.
To support these requirements and improve operational clarity, staff have developed two new governing documents and updated the T-Hangar Use Policy for the airport:
• Airport Minimum Standards for Commercial Aeronautical Activities (New) • T-Hangar Use Policy (Update)
• Airport Leasing Policy (New)
DISCUSSION:
Airport Minimum Standards
The Airport Minimum Standards establish the minimum qualifications, operating requirements, and performance expectations for businesses conducting commercial aeronautical activities at the airport. These standards help ensure that aviation service providers maintain appropriate levels of safety, financial responsibility, insurance, and operational capability.
The standards promote fair competition by ensuring that all commercial operators meet the same minimum requirements before providing aeronautical services at the airport.
T-Hangar Use Policy
The T-Hangar Use Policy establishes guidelines for the use of aircraft storage hangars located on airport property. Consistent with FAA policy, the primary purpose of Thangars is the storage of operational aircraft.
The policy clarifies acceptable and prohibited uses of hangars and addresses issues such as:
• Aircraft storage requirements
• Storage of non-aeronautical items
• Maintenance activities
• Safety and fire code compliance
• Enforcement procedures
The policy helps ensure that hangars remain available for aviation purposes and that airport facilities are used safely and efficiently.
Airport Leasing Policy
The Airport Leasing Policy establishes consistent procedures for negotiating and administering leases for airport property, including hangars, ground leases, and commercial facilities.
The policy provides guidance regarding:
• Lease terms and conditions
• Ground lease structures
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Safety and Communities Committee, May 11, 2026
Adoption of Modesto City-County Airport Governing Documents
• Development requirements for leased airport property
• Insurance and operational requirements
• Procedures for lease approvals and renewals
Adoption of a formal leasing policy improves transparency and consistency in the City’s management of airport real estate and supports long-term airport development.
All three documents were revised with the assistance of the Airport Advisory Subcommittee and passed for further approval by the Airport Advisory Committee on September 18, 2025. During the meeting, the documents were opened for public comment, and no comments were received. Airport users were provided copies of these documents upon request and were given the opportunity to submit input or suggestions via email.
FISCAL IMPACT:
Adoption of these policies will not have a direct fiscal impact on the City’s General Fund.
However, implementation of standardized leasing procedures and commercial operating requirements is expected to improve the administration of airport leases and may support increased airport revenues through consistent lease management and commercial aviation activity.
All airport operations and improvements are funded through the Airport Enterprise Fund.
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQ) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COMMITTEE ACTION:
Staff Recommendations:
Motion recommending the adoption of policy documents governing operations and hangar leasing at the Modesto City-County Airport which include Airport Minimum Standards, T-Use Policy, and Airport Leasing Policy and forwarding to Council for approval.
Approved by:
Patrick Crowley, Interim Public Works Director
Joseph P. Lopez, City Manager
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Safety and Communities Committee, May 11, 2026
Adoption of Modesto City-County Airport Governing Documents
Attachments:
1. Airport Minimum Standards
2. T-Hangar Use Policy
3. Airport Leasing Policy
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Minimum Standards for Commercial Activities and
Airport Tenants
Modesto City-County Airport
(MOD)
2025
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ii
Table of Contents
INTRODUCTION .................................................................................................................................... 1
1. DEFINITIONS .......................................................................................................................................... 3
2. GENERAL REQUIREMENTS APPLICABLE TO ALL OPERATORS ................................................ 7
2.1 Agreement ................................................................................................................................. 7
2.2 Fees and Charges ...................................................................................................................... 7
2.3 Leased Premises ........................................................................................................................ 7
2.4 Site Development ...................................................................................................................... 8
2.5 Products and Services ............................................................................................................... 8
2.6 Licenses, Permits, and Certifications ....................................................................................... 8
2.7 Personnel .................................................................................................................................. 8
2.8 Payment of Rents and Fees ....................................................................................................... 8
2.9 Laws, Rules, and Regulations ….............................................................................................. 8
2.10 Insurance Requirements …..................................................................................................... 8
2.11 Assignments, Subletting, and Encumbrances ........................................................................ 9
2.12 Taxes ...................................................................................................................................... 9
2.13 Signage................................................................................................................................... 9
2.14 Environmental Compliance ................................................................................................... 9
2.15 Safety of Others ..................................................................................................................... 9
2.16 Hours of Operation ................................................................................................................ 9
2.17 Restrictions on Self-Service................................................................................................... 9
2.18 Inspections ............................................................................................................................ 10
2.19 Airspace Protection............................................................................................................... 10
2.20 Maintenance of Leased Premises.......................................................................................... 10
2.21 Utilities.................................................................................................................................. 10
2.22 Outside Storage..................................................................................................................... 10
2.23 City’s Right to Improve Airport ........................................................................................... 10
2.24 City’s Right to Maintain Airport and Control Activities ...................................................... 10
3. GENERAL STANDARDS FOR DEVELOPMENT............................................................................ 11
4. MINIMUM STANDARDS GUIDELINES APPLICABLE TO SPECIFIC ACTIVITIES ................. 16
4.1. GENERAL FIXED BASE OPERATORS, SPECIALIZED AVIATION SERVICE OPERATORS (SASO), OR INDEPENDENT OPERATORS ....................... 16
4.2. FULL SERVICE FIXED BASE OPERATOR ................................................................. 16
4.3. AVIATION TENANT NOT-FOR-PROFIT ORGANIZATION AND
CORPORATE OR GOVERNMENT TENANT .............................................................. 19
4.4. FLIGHT INSTRUCTION AND GROUND TRAINING ................................................ 19
4.5. AIRCRAFT SALES ......................................................................................................... 19
4.6. AIRCRAFT MAINTENANCE AND REPAIR ............................................................... 19
4.7. AIRCRAFT RENTAL ....................................................................................................... 20
4.8. AIRCRAFT CHARTER AND SCHEDULED CHARTER .........................................… 20
4.9. RADIO AND ELECTRONICS SALES AND SERVICE ........................................…… 21 #5..
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1 INTRODUCTION
The Modesto City-County Airport (MOD) serves as a vital transportation hub for both commercial and general aviation in the Central Valley region of California. As part of its commitment to safety, operational efficiency, and consistent service, the airport has established comprehensive Minimum Standards that apply to all airport tenants, operators, and users.
These standards are designed to ensure the effective and safe operation of airport facilities, promote a positive business environment, and maintain compliance with federal, state, and local regulations. The Minimum Standards provide clear guidelines for facility use, safety protocols, and operational practices that help foster an orderly, professional, and secure environment for all stakeholders.
This document outlines the essential criteria that must be met by any entity wishing to conduct activities at the airport, while aligning with the Modesto City-County Airport’s vision for growth, development, and community engagement.
Periodic reviews of these minimum standards will ensure that they continue to be reasonable as the public’s demand for general aviation products and services changes.
STATEMENT OF POLICY
The Modesto City-County Airport (KMOD) is committed to providing a safe, efficient, and operationally effective environment for all aviation-related activities. In order to uphold the highest standards of safety, security, and service quality, the Airport has established a set of Minimum Standards that govern all activities, operations, and tenants utilizing its facilities. These standards are intended to ensure compliance with applicable federal, state, and local regulations, foster a professional and competitive atmosphere, and protect the public interest.
It is the policy of Modesto City-County Airport to apply these Minimum Standards in a fair, equitable, and transparent manner. All operators, businesses, and individuals conducting activities at the airport must meet or exceed these standards to ensure the continued safety, reliability, and efficiency of the airport’s services and facilities. This policy is designed to support the long-term growth and development of the airport while maintaining a balance between operational excellence, environmental responsibility, and community engagement.
The airport will periodically review and update these Minimum Standards to reflect evolving regulations, industry best practices, and the needs of the aviation community. All stakeholders are expected to adhere to the guidelines set forth in this policy to promote a secure, professional, and successful aviation environment at Modesto City-County Airport.
While the Airport Manager has the authority to manage the airport (including the authority to interpret, administer, and enforce airport agreements and airport owner policies and the authority to permit temporary, short-term occupancy of the airport), the ultimate authority to grant the occupancy and use of airport real estate or permits allowing for the conduct of commercial aeronautical activities, and to approve, amend, or supplement all leases and permits is expressly reserved to the City Council of the City of Modesto(airport sponsor). #5..
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2 Operations at Modesto-City-County Airport are governed by provisions of the Modesto Municipal Code, the Airport Rules and Regulations and these Minimum Standards adopted by resolution of the City Council.
Many types of aeronautical activities may exist that are too varied to reasonably permit the establishment of specific minimum standards for each. When specific aeronautical activities that are proposed for conduct on the airport do not fall within the documented categories, minimum standards can be developed on a case-by-case basis, taking into consideration the desires of the applicant and the airport and the public demand for such service. Often, a simple permit process can be utilized to authorize such activities.
Specialized Aviation Service Operation (SASO)
The Modesto City Council recognizes that when specialized aviation service operations (SASOs), sometimes known as single service operators or special fixed base operators, apply to do business on the airport, difficulties can arise if the SASOs are required to comply with all provisions of published minimum standards. Accordingly, the Airport Manager may develop reasonable, relevant, and applicable standards for each type and class of service and present them to the City Council for approval. Examples of these specialized services may include flight training, airframe and powerplant repair and maintenance, aircraft charter, air taxi or air ambulance, aircraft sales, avionics, instrument or propeller services or other specialized commercial flight support businesses.
Conflicts with Existing Agreements or Federal Law
These minimum standards are not retroactive. They do not affect the current term of any written agreement properly executed prior to the date of adoption and approval of these same minimum standards. However, any existing agreements having language conflicting with current federal, state, or local laws should be revised, within legal parameters, to comply with current statutes.
Upon expiration of an existing agreement, or if the operator desires to materially increase or expand its activities, the operator shall then comply with the provisions of the minimum standards at the time of lease renewal or material increase in business activities. A requirement under these minimum standards or an agreement that an operator comply with applicable local or state law does not create an opportunity or right for an airport sponsor to enact or enforce a local ordinance which is preempted under federal law. This includes any attempt to regulate land use, airspace, or the conduct of flight operations.
These minimum standards may be supplemented, amended, or modified from time to time and in such manner and to such extent as is deemed reasonable and appropriate by resolution of the City Council of the City of Modesto (airport owner/operator). #5..
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3 1. Definitions
Aeronautical Activity and/or Aeronautical Service: Any activity or service conducted on the airport which involves, makes possible or is required for the operation of aircraft or that contributes to or is required for the safety of these activities or services and that include, but are not limited to:
• Charter operations
• Pilot training
• Aircraft rental
• Aerial photography
• Crop dusting
• Sale of aviation petroleum products
• Air carrier operations
• Aircraft sales, and service incidental to the sales
• Repair and maintenance of Aircraft
• Sale of aircraft parts and accessories
• Sale of aircrew and airman aviation supplies and apparel • Any other activity that has a direct relationship to the operation of aircraft.
Agreement or Lease: A contract executed between the City and an entity who is granted a concession that transfers rights or interest in property, or otherwise authorizes the conduct of certain activities. The agreement or lease must be in writing, executed by both parties, and enforceable by law.
Aircraft: Any and all contrivances now and hereinafter used for navigation or flight in air or space, including but not limited to, airplanes, airships, dirigibles, free balloons, helicopters, gyroplanes, gliders, ultralights, amphibians, and seaplanes.
Aircraft Maintenance: The repair, maintenance, adjustment, or inspection of aircraft. Major repairs include major alterations to the airframe, powerplant, and propeller as defined in Part 43 of the Federal Aviation Regulations (FARs). Minor repairs include normal, routine annual inspection with attendant maintenance, repair, calibration, adjustment, or repair of aircraft and their accessories.
Aircraft Owner: The registered or legal owner of an aircraft according to the records of the Federal Aviation Administration.
Airman: An individual who engages, as the person in command or as pilot, mechanic, or member of the crew, in the operation of aircraft, or an individual who is directly in charge of the inspection, maintenance, overhauling, or repair of aircraft, aircraft powerplants, propellers, or associated accessories.
Airport: The Modesto-City-County Airport
Airport Layout Plan: The approved layout of the City’s airport property, indicating current and proposed usage for each identifiable segment, as approved by the City and amended from time to time.
Airport Manager: The City-appointed manager of the airport or his/her duly authorized representative for airport/airfield management functions and activities. #5..
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4 Airport Operations Area (AOA): That portion of the airport designated and used for landing, taking off, or surface maneuvering of aircraft.
Airport Sponsor: A local municipal, county, or state government body or a private entity obligated to the federal government to comply with the assurances contained in grant agreements or property conveyance instruments. A sponsor may be an entity that exists only to operate the airport, such as an airport authority established by state or local law. For the purposes of this document, the terms airport sponsor and airport owner are used interchangeably.
Apron: A paved area designated for aircraft parking, loading and unloading passengers and cargo, and refueling.
Assurance: A provision contained in a federal grant agreement to which the recipient of federal airport development assistance has voluntarily agreed in consideration for the assistance provided.
Aviation-Related Activity: Any activity conducted on airport property that provides service or support to aircraft passengers or air cargo. The following are examples of aviation-related activities as opposed to aeronautical activities:
- Ground transportation
- Restaurants
- Auto parking lots
- Concessions
- Any other service or support activities that can appropriately be called aviation-related.
Aviation Tenant: Any person, firm, or corporation leasing or occupying property at the airport for aeronautical purposes who is not an operator. An aviation tenant may hangar or tie down its aircraft on its leased property subject to these provisions but may not enter into any commercial activities or provide any services for hire or compensation of any kind.
Based Aircraft: Any aircraft that uses the airport for other than occasional transient purposes and is assigned a parking space, tiedown, or hangar space at the airport, whether or not such assignment is made under written agreement with the City of Modesto.
City or City of Modesto: The owner, operator, and sponsor of the Modesto-City-County Airport (Harry Sham Field). The City Council, through the City Manager and/or Airport Manager, is responsible for the management of the airport. The City, as that term is used in this document, refers to the City of Modesto solely in its proprietary capacity as the airport owner and not in any other governmental capacity unless so stated.
Commercial Activity: Any transfer of goods, operation, or service performed for any compensation or consideration.
Commercial Aeronautical Activity: Any aeronautical activity intended to secure earnings, income, compensation, or profit, whether or not such objectives are accomplished.
Commercial Operator: Any entity involved in a commercial activity.
Commercial Operator’s Permit: The authorization from the Airport Manager, City Manager, and City Council to be a commercial operator to engage in or conduct commercial activity.
Entity: A person, persons, firm, partnership, limited liability company, corporation, unincorporated proprietorship, trust association, organization or group. #5..
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5 Equipment: All personal property and machinery together with the necessary supplies, tools, and apparatus necessary for the proper conduct of the activity being performed.
Exclusive Right: A power, privilege, or right that excludes another entity from enjoying or exercising a like power, privilege, or right. An exclusive right can be conferred by express agreement, by the imposition of unreasonable standards or requirements, or by any other means.
FAA: Federal Aviation Administration
FAR: Federal Aviation Regulation
Federal Airport Obligations: All references to federal grant programs, federal airport development assistance, or federal aid intended to address contractual commitments arising from the conveyance of land or from grant agreements.
Fixed Base Operator (FBO): An entity authorized by issuance of a commercial operator’s permit to provide aeronautical activities, services or products at the airport for compensation or hire. Examples of such activity are:
- Sale of aviation fuel and oil
- Aircraft maintenance
- Ancillary aircraft ground services
- Flight instruction
Full Service FBO: A business that provides aircraft refueling service, as well as other services such as aircraft maintenance, flight instruction, air charter, and the parking and hangaring of aircraft.
Grant Agreement: An agreement made between an airport sponsor and the FAA, acting on behalf of the United States government, for the grant of federal funding or a conveyance of land, either of which the airport sponsor agrees to use for airport purposes.
Improvements: All buildings, structures, and facilities. Improvements may include pavement, fencing, signs, and landscaping that is constructed; installed; or placed on, under, or above any leased area.
Lease: See definition under “Agreement or Lease.”
Licensee: Any entity leasing or using, with the permission of the City, any land or facility at the airport with the express permission of the City.
Minimum Standards: The criteria established by an airport owner as the minimum requirements that must be met by businesses in order to engage in providing on-airport aeronautical activities or services.
NFPA: National Fire Protection Association.
Not-For-Profit Aviation Organization: An entity that is not-for-profit under either state or federal law, including but not limited to, aviation museums, accredited aeronautical education programs, civil air patrol units operating aircraft, military units with aeronautical missions, police and fire units operating aircraft.
NOTAM: Notice To Airmen.
Operator: An entity doing business on the airport, both commercial and non-commercial.
Person: Any individual, firm, partnership, company, corporation, association, joint stock association, public agency, and includes any trustee, receiver, assignee or other similar representative.
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6 Rules and Regulations: The provisions of these Minimum Standards and Modesto Municipal Code and other regulations prescribed by resolution of the City Council.
UNICOM: Universal Communication frequency licensed by the Federal Communications Commission for use at an airport.
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7 2. GENERAL REQUIREMENTS APPLICABLE TO ALL OPERATORS
The following minimum standards apply to all persons operating businesses at the airport, regardless of the types of services provided.
2.1 Agreement: No entity shall conduct commercial activity on the airport unless a valid agreement (lease, license, or permit) authorizing such activity has been entered into by the entity and the City. At the request of the service provider, the City may provide for optional extensions of the agreement under agreed-upon terms and conditions. The agreement will present the terms and conditions under which the activity will be conducted at the airport, including but not limited to: term of the agreement; rentals, fees, and charges; and the rights and obligations of the respective parties.
All leases and contracts between lessees, permitees, and licensees and the City shall be subordinate to the provisions of any existing or future agreement between the City and the Federal Government of the United States, FAA, State, or County relative to the operation or maintenance of the airport, the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development of the airport properties.
All leases, licenses and permits shall incorporate by reference the applicable requirements imposed by the FAA in any agreements that may exist or that in the future may be entered into.
2.2 Fees and Charges: The operator shall pay the fees and charges negotiated with the City for the applicable activities. Information relative to fees and charges applicable to the activity described will be made available to the prospective operator by the Airport Manager.
2.3 Leased Premises: [Note: Under the terms and conditions applied to specialized aviation service operations (SASO), a ground rental lease may not be required. For all others, the following lease guidelines apply.]
2.3.1 The operator shall lease, sublease, or construct sufficient ground space, facilities, and accommodations for the proposed aeronautical activity. When more than one activity is proposed or when the operator will be conducting activities from an FBO leasehold as an approved sublessee, the minimum lease terms may vary depending on the nature of each activity.
2.3.2 The operator must provide a full description and conceptual drawing [if required] of the location of the ground space, facilities, and accommodations to be utilized for the operator’s proposed aeronautical activity.
2.3.3 The operator must also provide a schedule of development and identify the location of aircraft parking and staging areas, general aviation customer lounges, vehicle parking, and restrooms. The ground space shall include an appropriate aircraft parking apron with tie down and/or hangar facilities sufficient to accommodate the current aeronautical activity and the types of general aviation aircraft frequenting the airport. Ground space shall also accommodate paved roadways and vehicle parking facilities which do not enter the Airport Operations Area.
2.3.4 The facilities and floor space allotments shall include office and customer lounge facilities which must be properly heated, ventilated, cooled, and lighted. General aviation user #5..
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8 accommodations shall include telephones for customer use, restrooms, and sufficient on-site customer vehicle parking spaces
2.4 Site Development: Detailed development plans must be submitted to the City through the Airport Manager’s office with a copy to the Community Development Department. All construction plans must be submitted for approval prior to modification or construction of any building, hangar, or other aeronautical facility on the leased premises. Operators must maintain the leased premises in a neat and orderly condition and provide the necessary personnel to perform day to day operational duties and maintenance upon the facilities.
2.5 Products and Services: Products and services shall be provided on a fair, equal, and nondiscriminatory basis to all users of the airport. These products and services shall be provided at fair, reasonable, and non-discriminatory prices. If lawful, reasonable and non-discriminatory discounts and other similar types of price reductions may be extended to like purchasers and users.
2.6 Licenses, Permits, and Certifications: The operator shall obtain and comply with all necessary licenses and permits for the conduct of anticipated activities at the airport required by the City or any other duly authorized governmental agency having jurisdiction. The operator shall not engage in any activities at the airport prior to obtaining any certification required by the FAA.
2.7 Personnel: The operator shall have in its employ, and on duty during defined operating hours, trained personnel in such numbers as are required to meet the minimum standards herein.
The operator shall also provide an employee in the office to supervise the operations on the leased premises. This employee must be able to address the service and product needs of aircraft owners and pilots. Such person shall be authorized to represent and act for, and on behalf of, the operator during all business hours. All personnel are required to hold appropriate FAA certificates and ratings, as applicable.
2.8 Payment of Rents and Fees: No entity shall be permitted to engage in commercial aeronautical activities unless said entity is current in the payment of all rents, fees, or other sums accruing to the airport under any and all agreements.
2.9 Laws, Rules, and Regulations: Any provider of commercial aeronautical activities and services at the airport, and its officers, agents, and employees, shall engage in those activities only in accordance with all applicable laws, rules, and regulations of the federal government, the state of California, and all other governmental bodies having jurisdiction, including the regulations of the FAA, the U.S. Department of Transportation, and the City. Each such operator shall be responsible for the actions of its officers, agents, and employees.
2.10 Insurance Requirements: The following insurance requirements apply, provided that such coverage is available, to those operators who provide a service on airport property: Dollar amounts of coverage will be specified by the City.
• Comprehensive general liability insurance, including, if applicable, products, completed operations, and hangar keepers’ liability.
• Aircraft liability insurance, if applicable. For flight training and rental activities, the operator will be required to notify the customer as to whether or not any of the operator’s insurance #5..
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9 coverage applies to the customer while using the operator’s aircraft. • Workers compensation insurance, if applicable.
• Ground vehicle liability insurance, if applicable.
Prior to using the airport property the operator will provide the City with (a) certificate(s) of insurance identifying the policies described above. The certificate(s) will include a provision that gives the Airport Manager 30 days’ prior written notice of any modification to or cancellation of the insurance policy. The City will require being identified as an additional insured on the operator’s policy and will also require indemnification/hold harmless provisions. These requirements will be addressed in the lease agreement. The operator must provide the City a Certificate of Insurance annually or upon request or upon any changes in the policies.
2.11 Assignments, Subletting, and Encumbrances: All assignments, subletting, and encumbrances of agreements between an authorized operator and another entity must be addressed in individual agreements/leases entered into by the City and the operator.
2.12 Taxes: The operator shall, at its sole cost and expense, pay any and all taxes, which now or in the future may be assessed against the leasehold land, improvements thereto, personal property used in its operation, or otherwise assessed upon its operations.
2.13 Signage: The operator shall not erect, maintain, or display any sign on the leased premises or elsewhere on the airport unless the operator first obtains the prior consent of the Airport Manager and/or it has been addressed in the agreement/lease. All signage must meet the City’s requirements and must be removed when the operator discontinues business activity on the airport.
2.14 Environmental Compliance: All operators who dispense fuel, store fuel, and perform aircraft maintenance shall strictly comply with all federal, state, and local laws, rules, and regulations concerning the handling, use, and storage of fuel, oil, solvents, chemicals, and other hazardous materials. Operators will first obtain approval from the Airport Manager before engaging in, or permitting on the leased premises, the stripping and/or painting of aircraft or any other vehicles.
2.15 Safety of Others: All aeronautical activities at the airport shall at all times be conducted with due consideration to the safety of all airport users, other persons, and property located at or about the airport.
2.16 Hours of Operation: Operators providing fueling, customer services, and ancillary services shall be available to the public for a predetermined number of hours per day, seven days per week.
2.17 Restrictions on Self-Service: In accordance with FAA policy, the airport owner/operator may not exercise any right or privilege that would have the effect of preventing the operator of any aircraft utilizing the airport from performing services on his or her own aircraft with his or her own employees and equipment. Aircraft owners are entitled to use the landing area of the airport and may tie-down, adjust, repair, refuel, clean, and otherwise service their own aircraft, provided the service is in compliance with Federal Aviation Regulations and is performed by the aircraft owner or his employees. Any unreasonable restrictions imposed on owners or operators of aircraft by airport commercial operators will be construed as a violation of airport policy. #5..
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10 2.18 Inspections: To the extent necessary to protect the rights and interest of the City or to ascertain compliance with these standards and airport rules and regulations, the City or its authorized representative shall have the right to inspect, during reasonable hours, all aircraft, equipment, structures, premises, facilities, and improvements on the airport.
2.19 Airspace Protection: The City reserves the right to take any actions it considers necessary to protect the aerial approaches to the airport against obstructions, including preventing any tenant from erecting or permitting any building, sign, or any other structure to be erected on the airport which in the opinion of the City would limit the usefulness of the airport or constitute a hazard to aircraft or aeronautical activity.
2.20 Maintenance of Leased Premises: Operators are responsible for removing all garbage, debris, and other waste material (solid or liquid) arising out of operator’s occupancy of the premises or its operations. The operators must maintain their leased premises, including all landscaping and painted surfaces, in a neat and orderly manner. Any garbage, debris, or waste that may be temporarily stored in the open must be kept in suitable garbage or waste receptacles equipped with tight fitting covers and locked to prevent misuse. Operators, employees, subtenants, or customers must not keep unlicensed or inoperable vehicles on any portion of the airport. However, operable but unlicensed vehicles that are necessary as a part of the operator’s aviation related commercial enterprise (such as fuel trucks, golf carts, water tenders, lugs, etc.) will be permitted to remain on the airport and must display the appropriate permit sticker(s) if issued for that vehicle by the City.
2.21 Utilities: The operator’s obligation to pay for utilities, such as electricity, gas, water and sewer, will be specified in the lease agreement.
2.22 Outside Storage: An operator must not store, or permit to be stored, any equipment, containers, or materials outside on leased or un-leased premises without written permission from the Airport Manager. If the operator has an area where it normally keeps damaged aircraft, aircraft parts, construction fixtures, jigs, barrels, containers, aviation service vehicles, or other unattractive items, the operator must enclose the area with a screen or fence that will hide the area from public view and maintain an attractive exterior view.
2.23 City’s Right to Improve Airport: The City reserves the right, in a reasonable and nondiscriminatory manner, to further develop or improve the airport as it sees fit, regardless of the desires or views of operator or tenant and without undue interference or hindrance.
2.24 City’s Right to Maintain Airport and Control Activities: The City shall have the right to maintain and keep in repair the landing area of the airport and all publicly owned facilities of the airport, together with the right to direct and control all activities of airport operations in this regard.
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11 3. GENERAL STANDARDS FOR DEVELOPMENT
The General Requirements above must be continuously met and in addition, the following standards must be applied to proposed development at the Modesto City-County Airport:
3.1. All operators desiring to conduct any aeronautical activities or services, or tenants engaged in commercial activities or services for profit or commercial gain on or from the airport, must obtain a commercial operator’s permit from the City and pay any appropriate fees before engaging in commercial activity on the airport.
3.2. All operators and tenants agree to protect the general public, the customers or clients, and the City from all lawful damages, claims, or liability. All operators must carry comprehensive general liability insurance coverage with a company authorized to do business in the State of California and within limits set in these standards. Coverage must be evidenced by a certificate of insurance filed originally and annually in January with and approved by the Airport Manager and Finance Department, and the insurance policy or policies must specifically name the City, its officers, agents, and employees as additional insureds. The City may revise the insurance requirements, and make necessary changes with notification.
3.3. Any entity proposing to become an operator, expand operations into another category, or engage in commercial activity must submit an application to the Airport Manager for City approval with the following information:
3.3.1. A brief description of the nature of the business and the services to be offered.
3.3.2. The signatures of all the parties owning an interest of the business, or the person authorized by the legal entity to sign on behalf of the business, and the manager of the business.
3.3.3. A current financial statement (Pro Forma Statements for the proposed activity or operation if a new business) prepared by a Certified Public Accountant (CPA) and a current credit report on the business or entity proposing a new business.
3.3.4. A statement identifying the amount of land or building space desired to be leased on the airport or the amount of land, location, and term of sub-lease, and number and location of automobile parking and tie down spaces or hangars.
3.3.5. A list of assets owned, leased or proposed for operation at the airport by the business including approximate number of aircraft that will be used in the proposed commercial operation.
3.3.6. Approximate number of employees.
3.3.7. A copy of all licenses required for the provided service; (FAA or other)
3.3.8. Preliminary plans for any space or facility improvements proposed for the business.
Application for building permits, if needed, will also be required to be submitted to the City.
3.4. The application must be reviewed and acted on by the Airport Manager within 90 days from the date it was received. A full-service fixed base operator application must be approved by the Modesto City-County Airport Advisory Commission for recommendation to the City Council for final determination. Approval of permits will be determined on a strictly non-discriminatory basis and will be based on the application of these standards. The approval of an application that meets the requirements of these minimum standards will be in the form of a commercial operator’s permit. A denial of an application by the Airport Manager will be in writing, #5..
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12 specifying the reasons for denial. Applications may be denied for any of the following reasons:
3.4.1. Failure to meet these minimum standards.
3.4.2. The operation will be a safety hazard on the airport.
3.4.3. There is no appropriate or available space for applicant’s entire activity.
3.4.4. The operation does not comply with the approved Airport Layout Plan.
3.4.5. The aircraft to be used are not suitable aircraft category for the airport, e.g. require upgrade of the airport navigational aids or pavements.
3.4.6. The operation will interfere with existing airport tenants. This will be weighed so as not to give existing tenants Exclusive Rights in consideration of FAA Advisory Circular, AC no. 150/5190-7, as amended or superseded.
3.4.7. Misrepresentation of material fact on application.
3.4.8. The applicant has a history of violating FAA regulations or airport rules and regulations at Modesto City-County Airport and/or other airports.
3.4.9. The Airport Manager has sufficient information that the applicant is not sufficiently credit worthy and responsible as a business.
3.4.10. The applicant has committed any crime or violated any Municipal Code section which adversely reflects on its ability to conduct the operation applied for.
3.5. An operator or airport tenant will not be permitted to engage in any business or activity on the airport other than that authorized by the appropriate permit. Any operator desiring to extend its operation into a different category must first apply in writing to the Airport Manager for permission to do so. The Airport Manager shall grant or deny the request based on the application of these standards within a 90 day period unless more time is needed due to requirement for authorization by City Council.
3.6. All construction required of operators, aviation tenants, or other tenants on the airport must meet the design, construction, and setback standards required or established by the Modesto Municipal Code and any other entity or agency having jurisdiction over the airport for the facility or activity involved.
3.7. The rates and charges for operator leases and commercial operator’s permits are determined by the City Council and set in the applicable master fee schedule adopted by resolution. If a particular charge is not addressed in the master fee schedule, the fee shall be agreed upon by the prospective tenant, the Airport Manager and City Manager and then adopted by the City Council. All rates, charges, terms, and conditions applied to operators must be equally and fairly applied to all similar operators. There shall be no exclusive rights granted. The City Council with a recommendation from the City Manager has the option to increase rates and charges or revise terms and conditions, provided that increases and revisions are noticed and applied equally and fairly to all subsequent operators. Individual operators are responsible for setting the rates that are charged to their customers for their services. These rates must be nondiscriminatory in accordance with the provisions of Title VI of the Civil Rights Act of 1964.
3.8. All operators and other tenants on the airport must pay for all utilities, including gas, electric, and telephone, water, sewer and garbage collection charges, and charges for all other utilities and services used in connection with the operator’s leased premises.
3.9. All contracts, leases, subleases, assignments or other agreements between operators or airport tenants and the City are subordinate to the provisions of any existing or future agreements #5..
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13 between the City and the County, the State of California, and the Federal Government of the United States.
3.10. If an operator sublets or assigns any portion of its lease, the sub lessee or assignee must agree to assume the full obligations of the lease, including sponsor assurances, and must agree to fully cooperate with the City in complying with these Minimum Standards. The operator shall remain responsible to the City for sub lessee’s compliance. The City shall be notified and assured of any sublease that it meets these Minimum Standards, and the City shall have 30 days to review and consider the request for a subleasee.
3.11. All tenants have the right to use common areas and facilities of the airport, including runways, common taxiways, common aprons, common roadways, common lights, common signals, and other public conveniences for the approved operation of their respective activities.
All construction required of and performed by the tenant, unless specifically excluded in the lease agreement, will be paid for solely by the tenant with no reimbursement from the City. Any roadway or taxiway constructed by tenant or City on land not included in tenant’s leasehold automatically becomes a common area. Ramps, roads, and taxiways constructed on tenant’s leasehold will remain in control of the tenant, with reasonable access granted to the City and other governmental agencies for maintenance and other requirements.
3.12. The operator has the right to conduct commercial aeronautical or commercial or non-profit activities provided for in its permit or lease and to offer those services to the public provided the operator agrees:
3.12.1. To furnish services on a fair, equal and not unjustly discriminatory basis to all users and
3.12.2. To charge fair, reasonable, and not unjustly discriminatory prices for each unit or service; provided that the operator may be allowed to make reasonable and nondiscriminatory discounts, rebates, and other similar types of price reductions to volume purchasers.
3.13. The operator for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration, does covenant and agree that:
3.13.1. No person on the grounds of race, creed, color, national origin or sex shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of the facilities in accordance with the provisions of Title VI of the Civil Rights Act of 1964.
3.13.2. That in the construction of any improvements on, over, or under land and the furnishing of services, no person on the grounds of race, creed, color, national origin or sex shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination.
3.13.3. That the operator shall use the premises in compliance with all other requirements imposed by or pursuant to applicable federal, state, and local laws and regulations.
3.14. The operator assures that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered by said laws and regulations. The operator assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by the law. The operator assures that it will require that its #5..
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14 covered sub organizations provide assurances to the operator that they similarly will undertake affirmative action programs and that they will require assurances from their sub-organizations, if required by applicable federal laws and regulations, to the same effect.
3.15. In the event of breach of any of the preceding nondiscrimination covenants, the Airport Manager shall have the right to terminate the license, lease, permit, and/or other agreement with the operator, and to reenter and repossess the land and facilities, and to hold the same as if that lease or other contract had never been made or issued.
3.16. During the time of war or national emergency, the City shall have the right to lease the landing area or any part to the United States Government for military use, Homeland Security use, or disaster response and recovery, and, if such lease is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended.
3.17. No right or privilege has been granted which would prevent any person, firm, or business entity operating aircraft on the airport from performing any services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair permitted by Federal Aviation Regulations) that it may choose to perform.
3.18. Any permit granted or agreement made under these minimum standards shall be in compliance with Modesto Municipal Codes, these minimum standards, the airport rules and regulations, and the master fee schedule. Further, all parties will agree to comply with any and all laws and regulations, including those of the FAA, and will not permit the premises covered by the permit or agreement to be used for any unlawful or improper purpose.
3.19. The City Council may provide for use charges and fees to be paid by those using, occupying, or conducting operations at the airport. These charges may be based upon square footage, receipts, or upon another reasonable basis, to be established by the master fee schedule.
Operator agrees to pay to City all charges as they become due and owing under any of the standards or regulations in effect now or in the future. Any use charges enacted will be nondiscriminatory.
3.20. The City Manager may, on account of the breach of any of these provisions, including the standards and regulations incorporated by reference, terminate a permit, lease or agreement and eject the party in violation in accordance with the provisions of the permit or lease or agreement. Details concerning insolvency, notice, and other matters concerning the operator’s default will be made a part of a particular lease or permit.
3.21. Any lease or agreement may not be assigned, in whole or in part, nor may the premises described therein be subleased, in whole or in part, without the prior written consent of the City Manager. Such consent will not be unreasonably withheld.
3.22. All operators will comply with all provisions in these minimum standards for development.
In the event of noncompliance, a written notice describing the condition will be issued by the Airport Manager. If corrective actions are not taken by the operator within ten (10) days after the written notice, the Airport Manager has the right to enter upon the leased premises to perform the necessary corrective action, at operator’s sole expense. In the event that City #5..
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15 performs corrective actions on the operator’s behalf, the operator shall within 15 days of notice of the amount reimburse the City for the work plus an administrative fee established by the Finance Department.
3.23. Ownership of leasehold improvements made by the operator will revert to the City according to terms specified in the lease agreement.
3.24. Variances to these minimum standards are discouraged and are permitted only when approved. In the event an operator desires a variance, application for the variance must be provided to the Airport Manager in writing, and the application shall include all relevant information and justification. The Airport Manager will decide all minor variance applications within 45 days. Any major variances will be forwarded to the Modesto Airport Advisory Committee for review with a recommendation provided to the City Council for consideration.
Variances will be granted on a fair and nondiscriminatory basis. Should the Airport Manger deny a variance application, the operator may appeal the variance decision to the City Manager and ultimately the City Council. A variance will not be granted that violates any federal, state, or local law.
3.25. The Federal Communications Commission (FCC) regulates and authorizes the use of UNICOM frequencies, and will not issue more than one ground station license at any one airport
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16 4. MINIMUM STANDARDS GUIDELINES APPLICABLE TO SPECIFIC
ACTIVITIES
The following guidelines are offered as a checklist for prospective commercial operators and City personnel. Exact details of any agreement between the City and a commercial operator will be determined by the parties executing the agreement, and some of the suggested requirements may be omitted or modified at the discretion of the parties.
The following categories are meant to describe types of commercial activity but are not all inclusive. Others may be considered and minimum standards from this document will apply.
Insurance requirements will be typical for similar businesses and according to recommendation by the City’s insurer.
4.1. GENERAL FIXED BASE OPERATORS, SPECIALIZED AVIATION SERVICE
OPERATORS (SASO), OR INDEPENDENT OPERATORS
Services may include, but are not limited to, the following:
• Aircraft sales
• Aircraft rental
• Aircraft maintenance, repair, painting, upholstering, and propeller repair • Air taxi (charter) service, including sightseeing
• Avionics sales and repair
• Banner towing and aerial advertising
• Cargo transport
• Aerial applications, crop dusting
• Aerial photography or survey
• Fire fighting or fire patrol (nongovernmental)
• Flight training
• Power line or pipeline patrol
• Aircraft trailers, hangars, or tie downs
• Aircraft salvage
• Air evacuation and rescue service
• Any other aviation oriented commercial enterprise that does not include the sale of aviation petroleum products.
Special requirements for some of these individual activities are described below.
4.2. FULL SERVICE FIXED BASE OPERATOR
A full-service fixed base operator is an operator who provides, commercial fuel sales, aircraft repair and maintenance, airframe and power plant repair and servicing, flight instruction, air taxi or charter services, and at least three other aviation oriented commercial enterprises, and has a commercial operator’s permit for a full-service fixed base operator.
4.2.1. SERVICES. Full service fixed base operators must lease or provide for transient and permanent tie down spaces for aircraft, aircraft maintenance, airframe, and power plant repair and servicing, flight instruction, air taxi or charter services, commercial fuel sales, and at least three (3) services, including but not limited to the services on the following list:
1. Aircraft rental
2. Aircraft sales or brokering
3. Aircraft painting
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17 4. Aircraft upholstery
5. Aircraft instrument sales or service
6. Aerial photography or survey
7. Avionics sales or service
8. Hangar rental
9. Propeller sales or service
The Airport Manager reserves the right to approve or deny the validity or necessity of each commercial service proposed by a full-service fixed base operator and to not provide exclusive rights to a new or existing operator. A full-service fixed base operator may contract out one of the commercial services it provides, if approved by the City Council through its Agreement with the City.
4.2.2. LAND. Full service fixed base operators must lease land directly from the City or sublease land for a minimum term of five (5) years to provide for buildings, apron area, auto parking, and an aircraft parking area. Parking requirements will be subject to Modesto Municipal Codes and support the aircraft categories that the most recent Airport Master Plan outlines.
4.2.3. BUILDINGS. Full service fixed base operators must lease office and hangar space for a minimum term of five (5) years, or own or construct a office and hangar space on ground leased from the City with a minimum term of five (5) years, that is properly lighted, air conditioned and heated with floor space for public lounge, rest rooms and public use telephone.
4.2.4. PERSONNEL. Full service fixed base operators shall employ or contract for at least one properly trained person to be on duty during all operating hours. The operator must maintain an ongoing training program for the proper handling of fuel. This includes, but is not limited to, training for:
1. proper testing of fuel for contamination;
2. proper grounding procedures;
3. proper handling of different types of nozzles;
4. safety and emergency procedures;
5. fire response;
6. proper vehicle and radio operations (if fueling is to be done from a truck); and
7. emergency fuel spill procedures (the operator is required to have an approved fueling operations manual and an emergency fuel spill plan).
Note: The City’s Fire Marshal and/or FAA may periodically inspect these functions and areas.
4.2.5. AIRCRAFT SERVICE EQUIPMENT. Full service fixed base operators should have in their possession aircraft starting equipment, towing equipment for the type of aircraft expected to be serviced, and necessary maintenance equipment for airframe and power plant repairs.
4.2.6. FUEL. Fuel sold must meet the designated FAA specifications for the type of fuel being provided and shall be supplied only to those aircraft that have been certified under the appropriate type certificate to use that fuel.
4.2.7. FUEL FACILITIES. Full service fixed base operator fuel dispensing equipment must be equipped with a certified meter and filter, and separate dispensing pumps, tanks, and meters for each type of fuel are required. The operator must install/lease and maintain fuel storage tanks with a capacity of at least 8,000 gallons for each type of fuel to be sold.
Fuel trucks may be used in lieu of storage tanks until permanent facilities are obtained and as demand dictates. All fuel storage tanks must be placed on a leased site at the #5..
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18 airport’s fuel farm facility. A self-service facility, including a tank, may be placed on a leased site on the ramp pursuant to a lease and a full service commercial operator’s permit. Safety and environmental regulations and laws must be complied with for such locations. A fire response exercise will be conducted annually.
1. New fuel storage tanks must be a type approved by the supplier and FAA as recommended to the Airport Manager and approved by the City Council.
2. All construction, installation, or modifications of fuel tanks must conform to any requirements of the City and shall be undertaken in accordance with the Modesto Municipal Codes and federal, state, and county codes, ordinances and regulations. A full service fixed base operator shall, at its sole cost and expense, obtain all necessary building permits, and all labor and material bonds.
3. A full service fixed base operator shall, at its sole cost and expense, maintain its leased portion of the airport fuel farm facility or self-service facility, and all of its improvements. The operator must notify the Airport Manager of any damages caused by its employees, patrons, or its operation. Any such damage must be repaired by the operator in a manner approved by the Airport Manager.
4. If it becomes necessary to make physical modifications to the leased portion of the fuel farm facility or self-service facility, the operator shall promptly make the changes and installations at its sole expense, subject to the approval of the Airport Manager and any governmental agency having jurisdiction. Upon written notice by the Airport Manager to the operator, the operator shall be required to perform whatever reasonable maintenance the Airport Manager deems necessary. If the maintenance is not undertaken by the operator within ten (10) days after written notice, the Airport Manger has the right to enter upon the leased premises to perform the necessary maintenance, at the operator’s sole expense. In the event that City performs maintenance on the operator’s behalf, the operator shall within 15 days of notice of the amount reimburse the City for the work plus 10 percent for administration.
5. A full service fixed base operator may have mobile fuel dispensing equipment. Fuel dispensing equipment shall be properly maintained, operated, and equipped in accordance with all applicable federal, state, county and city recommendations, requirements, and regulations.
4.2.8. HOURS OF OPERATION. Self-service fuel operations on the ramp must be open 24 hours a day, seven days a week. Fueling service by trucks, must be provided 24 hours a day, 7 days a week. Winter hours may be modified or reduced upon written permission from the Airport Manager. On-call service is required after hours. Maintenance, repair, and other services must be available during normal business hours and available on an on-call basis after hours.
4.2.9. INSURANCE COVERAGE. In addition to the insurance requirements of Section 2 above, Petroleum Products Liability Coverage will be required.
4.2.10. FIRE EXTINGUISHERS. A full-service fixed base operator must have fire extinguishers readily available during all refueling or defueling as specified by the FAA and the City’s Fire Department. Operator personnel will attend all appropriate training courses provided by and as required by the Fire Department, by the County, and/or by any other agency having jurisdiction over the airport.
4.2.11. FUEL FILTERS. Adequate fuel filters and water traps shall be installed on all fuel handling equipment and a suitable program for periodically conducting water contamination checks shall be established and followed.
4.2.12. AIRCRAFT FUEL SERVICING. In all matters related to aircraft fueling safety and #5..
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19 servicing, the provisions of the National Fire Protection Association (NFPA) manual on aircraft fuel servicing shall be used as the basis for all fueling operations at the airport.
4.3. AVIATION TENANT NOT-FOR-PROFIT ORGANIZATION AND CORPORATE
OR GOVERNMENT TENANT
Due to the amount of variation in such operators, insurance, personnel, land, and building requirements will be determined on a case-by-case basis by the City and the prospective tenant.
4.4. FLIGHT INSTRUCTION AND GROUND TRAINING
An operator providing flight instruction and ground training must:
4.4.1. Provide an attractively appointed and furnished lounge and waiting room, adequate classroom space, instructional material (such as books, films, cutaway models, etc.), a flight planning room, and a bulletin board for current Notices to Air Mission. The operator must ensure the availability of currently certified instructors for courses being taught.
4.4.2. Ensure that currently airworthy, licensed aircraft are available for types of flight ratings being offered. Secure and maintain FAA Certificate(s) in accordance with Federal Aviation Regulations, as appropriate.
4.4.3. Provide the following:
• FAA and State certifications where applicable;
• Classroom with adequate capacity if ground school is provided; • On-airport office space and telephone;
• Business hours at least eight (8) hours per day, five (5) days per week; • Minimum of one owned or leased aircraft on-airport;
• Minimum of one full-time or equivalent instructor with ratings necessary to provide required instruction offerings;
• Parking (for customer & employee vehicles) available consistent with City guidelines; and
• Compliance with Homeland Security guidelines.
4.5. AIRCRAFT SALES
Operators engaged in aircraft sales must have available on staff, FAA certificated pilots, properly rated, to demonstrate all types and sizes of aircraft being sold and qualified to demonstrate all installed equipment in the aircraft for sale. In addition, have on staff, or available by contract, such facilities and personnel as may be necessary to provide warranty work and to ensure that the aircraft being sold are fully certificated and licensed for flight according to FAA procedures and standards. Further requirements are on-airport office space, certificates and licenses as required by other governmental agencies, and business hours.
Aircraft owners selling their own airplane are exempt from these requirements.
4.6. AIRCRAFT MAINTENANCE AND REPAIR
An operator offering aircraft maintenance and repair must:
4.6.1. Provide adequate hangar, shop and storage space for the types of maintenance or repairs being offered and maintain a reasonable stock of routine spare parts for aircraft to be maintained and repaired.
4.6.2. Hold and continuously maintain a FAA Repair Station Certificate for categories of repairs being offered.
4.6.3. Provide all necessary ground service equipment suitable for types of aircraft normally #5..
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20 serviced at the airport, including aircraft jacks, tow bars and tow vehicles, auxiliary power units and any other equipment required for complete ground service.
4.6.4. Be FAA approved to provide 100 hour and annual inspections.
4.6.5. Have an on-airport hangar area, and available outside tiedown spaces adequate for anticipated activity.
4.6.6. Keep any aircraft in a non-airworthy condition in excess of 30 days inside the hangar or screened from public view.
4.6.7. Make service available at least eight (8) hours per day, five (5) days per week.
4.6.8. Comply with the California Aircraft Repair Law.
4.7. AIRCRAFT RENTAL
Commercial operators permitted to offer aircraft rental services shall at a minimum, agree to the following (leased or new construction where applicable):
• On-airport office space;
• Adequate assigned tiedown or inside storage area for rental aircraft; • Restroom facilities within walking distance of office space; and • A minimum of two (2) aircraft available for rental.
4.8. AIRCRAFT CHARTER AND SCHEDULED CHARTER
Commercial operators permitted to offer aircraft charter and scheduled charter services shall at a minimum, agree to the following (leased or new construction where applicable):
• Ensure that satisfactory provisions are made for checking-in passengers, handling baggage, ticketing, ground transportation, etc. Ensure that suitable aircraft are continuously available, with qualified crews, ready to depart within a specified time.
Maintain the capability to provide charter aircraft for hire under instrument flight conditions. Hold and maintain the appropriate Air Taxi Operator’s certificate, issued by the FAA;
• Provide adequate sheltered waiting area, within reasonable distance of loading ramp, to hold passenger load of the type aircraft, which meets applicable State Fire Code regarding occupancy load;
• Have a restroom available at the waiting area;
• Have adequate vehicle parking spaces available, near the waiting area, to hold one vehicle per passenger capacity of aircraft;
• Possess all applicable federal and state licenses and certificates; • Have service available eight (8) hours per day, five (5) days per week; • Have adequate ground handling equipment for the type aircraft used; • Have a public telephone within the waiting area;
• Have available a loading ramp, within reasonable distance of vehicle parking area and reasonable distance of the waiting room, to handle aircraft turning radius plus 10-foot wing tip clearance for type aircraft if aircraft turn around is required, or 10-foot wing tip clearance if aircraft taxi-through situation exists; • If applicable, obtain prior specific authorization from the City for scheduled passenger charter flights;
• Pay appropriate landing fees as required by the master fee schedule #5..
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21 4.9. RADIO AND ELECTRONICS SALES AND SERVICE
Commercial operators permitted to offer radio and electronics sales and service shall at a minimum, agree to the following (leased or new construction where applicable):
• Hold and maintain all required FCC licenses;
• Establish and maintain FAA Repair Station with Radio Repair Ratings Class 1 and 2; • Be open eight (8) hours per day, five (5) days per week; and • Have on-airport shop/office space, with a minimum of one available inside or outside tiedown space for storage of customer aircraft.
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Final Revision Hangar Use Policy 09/18/2025 Page 1
T-HANGAR USE POLICY
MODESTO CITY – COUNTY AIRPORT
Resolution 2026-XXX
Scope: This policy covers the procedures required of General Aviation aircraft tenants or prospective tenants in the use of T-Hangars at the Modesto City – County Airport.
Purpose: It is the intent of the City of Modesto to manage the use of T-Hangars at the Modesto City – County Airport in a consistent, reasonable and responsible manner, and in accordance with applicable sections of the Modesto Municipal Code. This Policy is intended to provide the Airport Manager and T-Hangar tenants alike with guidelines that all parties can follow to assure proper leasing and safe use of T-Hangars at the Airport. It is not the intent of this policy to make provisions that are contrary to the Municipal Code or the policies of the Federal Aviation Administration, and in the event that there is a discrepancy or conflict between the policies, the Municipal Code shall govern in instances that are not provided for by FAA policy.
Location: The location of the T-Hangars is on the southwest side of the Airport. Exhibit A, attached as a part of this policy, identifies the T-Hangar rows (existing and future) to which this policy applies.
Policy Statements:
• The leasing of T-Hangars shall be in accordance with the Modesto Municipal Code, MMC 7.3.101, and the Aircraft Hangar Waiting List Policy adopted by the Modesto City Council in January 1990, Resolution 90-49. • Aircraft owners wishing to lease a T-Hangar at the Modesto City-County Airport shall execute a Lease Agreement in a form provided by the City of Modesto and shall abide at all times by the terms and provisions of the Lease Agreement. • It is the intent of the City of Modesto that those leasing a T-Hangar at the Airport will use the T-Hangar for aircraft purposes only, except with written consent of the Airport Manager to do otherwise. To that end, the following provisions further define appropriate use of a T-Hangar.
1. Pursuant to the Lease Agreement, flyable aircraft or an aircraft under active refurbishment or assembly must be stored in the T-Hangar. Aircraft must fill 51% of the hangar. The storage of vehicles, boats, furniture, construction material, machinery, household goods or other possessions in the absence of an airplane is not permitted except as described in Part 2 of this Section.
2. A tenant who is leasing a T-Hangar for the aviation purposes described in Part 1 of this Section may temporarily lease a second T-Hangar to store vehicles and boats in the absence of an airplane as long as the goods being stored in the T-Hangar present no hazard or objectionable characteristics in any way, are not flammable liquids, and are secure in the #5..
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Final Revision Hangar Use Policy 09/18/2025 Page 2
method of storage. The Airport Manager may at his/her discretion approve such a lease of a second T-Hangar for such storage provided that:
A. The tenant understands that Aviation use of the hangar has priority and the tenant is prepared to vacate the premises with 30-day notice.
B. The intended objects to be stored in the T-Hangar are acceptable to the Airport Manager and present no hazard, including environmental hazards to other hangars.
C. One T-Hangar of similar size and features is always available for immediate occupancy by an airplane or emergency use.
D. Tenants using T-Hangars for airplane storage have first choice of any available hangars including the leased storage hangars without airplanes.
E. Tenant agrees that the hangar can be inspected at any time with reasonable notice by the appropriate City of Modesto Code Enforcement team to ensure compliance with the Modesto
Municipal Code and other State or Federal regulations.
3. Aircraft parts only, i.e., fuselages, wing sections, engines etc. do not qualify as an aircraft unless reasonable and verifiable progress is made to restore the aircraft, or complete a home-built aircraft. Reasonable progress is defined as active and consistent work on assembling the aircraft with the intent of restoring it to full flight status. The tenant shall provide evidence substantiating reasonable progress to the Airport Manager upon request. Extensions of these time provisions may be requested of the Airport Manager, with an explanation for cause. The Airport Manager shall consider the explanation provided and either grant or deny the time extension requested. Restoration or construction of aircraft is subject to annual inspection by the Airport Manager. Failure to meet these conditions will be deemed unacceptable and grounds for the termination of the Lease Agreement.
4. Major overhaul of engines, painting of aircraft, and cleaning with flammable solvents is prohibited inside the T-Hangars pursuant to Modesto Municipal Codes Section 7-3.306.
4. The aircraft in a T-Hangar must be owned in part, fully owned, or leased by the tenant who signed the hangar Lease Agreement. Aircraft ‘N’ number(s) will be compared with the owner’s name(s) and the certificate of insurance to verify proper tenancy. If an aircraft was recently acquired and does not show on the FAA aircraft registration database, the tenant should provide the Airport Manager a copy of the Aircraft Registration Application (FAA Form 8050-1). If the aircraft is leased, the insurance must show the tenant as the policyholder, and the owner as an additional insured. The Airport Manager may approve reasonable requests to store aircraft outside of this policy on a case-by-case basis, provided the ownership and insurance status of the aircraft can be documented.
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Final Revision Hangar Use Policy 09/18/2025 Page 3
5. Permission for construction of structures and/or lofts within a T-Hangar requires the prior approval of the Airport Manager. The construction of these kinds of facilities will be done under the auspices of the City’s Building Inspection Department, with an associated Building Permit obtained and displayed during construction.
6. T-Hangars will be subject to an annual inspection by the City of Modesto Fire Marshal and by Airport Maintenance and Operation staff for the purpose of determining compliance with applicable provisions of the Modesto Municipal Code, Fire Code and T-Hangar Lease Agreement.
Discrepancies shall be noted and provided to the tenant for correction. In the event of emergency or unforeseen circumstance, City Staff and the Airport Manager may enter a hangar at any time provided the tenant is advised as quickly as possible of the entry, the purpose for the entry, and actions taken once inside the hangar.
7. Installation of additional wiring for lighting and equipment needs is to be done in conformance with all applicable Building and Fire Codes. Only approved LED lighting is permitted in the hangars.
8. The use of extension cords is limited to UL listed cords used in compliance with manufacturers’ instructions. Extension cords may not be used in lieu of permanent wiring. Any extension cord that is permitted for use must be unplugged when the hangar is unoccupied. The exception to this section is if the extension cord is being used to power a battery charger, crankcase heater and the like. The extension cord must be plugged into a Circuit Breaker Power Box or plug strip rated with 15 amps “maximum” overcurrent protection.
9. Space heaters of any type are not permitted in the hangars unless they are UL listed for interior use, they are used only when the tenant is present in the hangar, and the heater is always disconnected on exiting the hangar.
10. Unobstructed fire or emergency access to the rear of the hangar must be provided.
11. The storage, use, or handling of flammable/combustible liquids shall be conducted in a limited manner appropriate to FAA approved owner maintenance activity, an aircraft restoration, or home built aircraft project.
In all cases, the quantity of such liquids shall be limited as described in
73.310 of Title 7-Public Works, Chapter 3 of the Modesto Municipal Code.
12. No objects may be hung from or attached to the structural members of the T-Hangar without the prior approval of the Airport Manager.
13. Trash cans on the Airport shall be used for the disposal of materials appropriate to the ownership, storage, and use of an aircraft. The trash #5..
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Final Revision Hangar Use Policy 09/18/2025 Page 4
facilities shall not be used for the disposal of other debris or stored items not related to the aircraft’s presence in the hangar and appropriate aviation activity. No use of the City’s Airport dumpster shall be allowed without prior approval from the Airport manager.
14. Storing of vehicles on airport grounds in NOT permitted unless approval is granted by airport manager.
15. Prohibited Non-Aeronautical Use include living quarters, long-term storage of non-operational aircraft, commercial businesses not related to aviation, such as vehicle repair shops.
• It is the intent of this policy to provide for a safe and clean environment in which aircraft can be housed at the Modesto City – County Airport. If the Airport Manager determines that an unsafe situation is present in the T-Hangar, the tenant shall immediately correct that situation in consultation with the Airport Manager. Failure to comply with the directives will be grounds for terminating the hangar Lease Agreement. The tenant may appeal the determination rendered, but only after correcting the situation as directed by the Airport Manager.
Deviations:
It is recognized that not every situation, which someone may encounter in the lease of a T-Hangar, can reasonably be covered by this policy. In the case where a tenant wants to deviate from this policy, or perform an activity not covered by this policy, prior approval shall be obtained from the Airport Manager who shall attempt to accommodate the request within policy and common sense, as the situation may dictate.
Appeals Process:
In the case where a T-Hangar tenant does not agree with a determination made by the Airport Manager, the tenant and the Airport Manager shall bring the issue to the attention of the Airport Advisory Committee, which shall make all best efforts in finding a solution.
Should this effort be unsuccessful, the tenant is entitled to a formal appeal per Title 1, Chapter 4 of the Modesto Municipal Code Section 1-4.01 to 1-4.05.
We truly appreciate your continued cooperation and attention to the items listed above. As a result, your help will provide safe hangar facilities, and support a fair and enjoyable tenant/landlord relationship, which is to everyone’s best interest.
Approved by the Airport Advisory Committee on September 18, 2025 #5..
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MODESTO CITY-COUNTY AIRPORT
AIRPORT LEASING POLICY
CITY OF MODESTO
A POLICY TO GOVERN THE
DRAFTING AND MANAGEMENT OF
LEASES
AT THE
MODESTO CITY-COUNTY AIRPORT
July 2025
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2025 ii
AIRPORT LEASING
POLICY
Contents
Section 1 General Statement of Policy .................................................................................3 Section 2 Definitions ............................................................................................................4 Section 3 Exclusive Rights ...................................................................................................6 Section 4 Requests for Lease ................................................................................................6 Section 5 Application Process..............................................................................................7 Section 6 Action on Application ..........................................................................................7 Section 7 Competitive Request for Proposal Process............................................................9 Section 8 Standards for Leasing Airport Property ..............................................................10 Section 9 Written Lease .......................................................................................................14 Section 10 Subleasing/Subletting…..………………………………………………………15 Section 11 FAA Required Lease Provisions..........................................................................16 Section 12 Rentals, Rates, Fees, and Charges........................................................................16 Section 13 Construction of Leasehold Improvements...........................................................17 Section 14 Sublease Agreement ……………………………………………………………..20 #5..
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2025
3 Section 1 - General Statement of Policy
Airport Operated for Benefit of the Public. Through its Leases, and by other means, the City will ensure that the Airport is operated for the use and benefit of the public and is made available to all types, kinds and classes of aeronautical activities.
As an Airport Sponsor and recipient of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grants, the City of Modesto (hereinafter, City) is obligated to operate the Modesto City-County Airport for the use and benefit of the public and to make it available to all types, kinds, and classes of aeronautical activities on fair and reasonable terms and conditions without unjust discrimination. Further, the City leases property at the Airport for certain non-aeronautic uses to provide revenue support to the airport. Per 49 USC 47107(b) and 47133(a), revenues generated by a public airport are required to be expended for the capital or operating costs of – (A) the airport, (B) the local airport system, (C) other local facilities owned or operated by the airport owner or operator and directly and substantially related to the air transportation of passengers or property.” Given these obligations, the City hereby establishes this policy to set forth a standardized system and process for leasing property at the Airport.
In furtherance of this objective, the City leases airport property based on the following principles:
• Promotion of aeronautic and aeronautic-compatible enterprise fund activities for the benefit of the Modesto-area community • Preservation of the City’s investment in the Airport
• Facilitation of orderly management of the Airport
• Ensuring consistent quality of facilities at the Airport • Providing equitable and uniform treatment of all Lessees • Ensuring compliance with applicable laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application and acceptance of Federal Funds
• Enabling conformity with the FAA approved Airport Layout Plan and Exhibit ‘A’, Airport Property Map
• Making the Airport available for public use on reasonable terms without unjust discrimination
• Maintaining a fee and rental structure with the goal of financial selfsufficiency for the Airport Persons seeking to provide a Commercial Aeronautical Activity at the Airport shall also be obligated to adhere to the requirements set forth in the Airport Minimum Standards, Airport Rules & Regulations, and current FAA Guidelines and Regulations.
In accordance with FAA Leasing Guidelines, Grant Assurances and general FAA policy statements, ownership of all lease site development and improvements shall revert to the Airport at no cost to the Airport at the conclusion of the lease. Lease length shall be established in order to allow tenants to recuperate their initial investment, long term leases beyond the life of the asset will not be entertained.
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2025
4 At the conclusion of the lease term, a new lease agreement may be entered into with the site occupants in accordance with the then-existing Airport Leasing Policy and then-existing Airport Layout Plan. The premises are considered to be owned by the Airport and the lease terms will reflect that condition accordingly. The rental rates charged and the lease term allowed will be based on airport ownership of the premises.
Section 2 - Definitions
For purposes of this Leasing Policy, the following definitions shall apply:
Aeronautical Activities or Services: any activity or service conducted at the Airport that involves, makes possible or is required for the operation of aircraft, or that contributes to or is required for the safety of such operations.
Airport: Modesto City-County Airport and all of the area, buildings, facilities, and improvements within the exterior boundaries of such airport as it now exists, or as it may hereafter be extended or enlarged.
Airport Manager: the individual employed and authorized by the City Manager to oversee the operations, maintenance and finances of the Airport, or the person authorized by the Airport Manager to act for or on behalf of the Airport Manager, with respect to any particular matter. The Airport Manager is the primary contact for the FAA.
Airport Leasing Policy: this document as established and amended from time to time by the City, to govern the safe, orderly, and efficient leasing of Airport property.
Airport Layout Plan (ALP): the FAA approved and Airport adopted drawing, as may be amended from time to time, which reflects an agreement between the FAA and Airport depicting the physical layout of the Airport. The ALP identifies the location and configuration of current and proposed runways, taxiways, buildings, roadways, utilities, navaids, etc. The ALP also includes the proposed allocation of Airport land and/or improvements to specific uses and/or development. The ALP reflects the existing and proposed allocation of areas of the Airport to specific operations and support functional usage.
Airport Minimum Standards: the “Airport Minimum Standards for Commercial Aeronautical Service Providers at the Modesto City-County Airport” as adopted by the City, and amended from time to time.
Airport Sponsor: the City of Modesto under the FAA guidelines and requirements to operate a public use airport facility.
Applicant: a Person submitting an application to the City to Lease Airport property.
City: the City of Modesto, owner and operator of the Airport, acting by or through the #5..
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2025
5 Modesto City Council, the City Manager, the Public Works Director, the Airport Manager, or any duly authorized employee, agent, or instrumentality of the City of Modesto. Discretion, opinions, and approvals of ‘City’ under this section refer to the responsibilities and authorities delegated to the City Council, the Airport Commission and designated City staff members as may be assigned these tasks through adopted policy.
City Council: the legislative body that governs the City of Modesto.
Commercial Aeronautical Activity: an Aeronautical Activity for commercial purposes as defined in the Minimum Standards.
FAA: Federal Aviation Administration.
General Aviation: all phases of aviation other than military aviation and scheduled or nonscheduled commercial air carrier operations.
Lease: a contract between the City and any Person wherein the City grants the use or occupancy of Airport property and certain leasehold interests for a specified period in exchange for a specified rent.
Lessee: any Person obtaining a Lease from the City to occupy space and hold certain leasehold interests at the Airport.
Person: and includes any individual, corporation, partnership, association, company, business, trust, joint venture or other legal entity.
Rules and Regulations: the policies, procedures, and regulations, established and amended from time to time by the City Council, to govern the safe, orderly, and efficient use of the Airport.
Shall: the word ‘shall’ is always mandatory and not merely directory.
State: the State of California.
Sublease: a written agreement, approved by the City, stating the terms and conditions under which a third party leases space from a Lessee for the purpose of providing aeronautical or non-aeronautical services or activities at the Airport.
Term: the total period of time in which that Lease may or might remain in effect. (For instance, a Lease for an initial period of 5 years, which may potentially be extended for an additional 5-year period, is a Lease for a term of 10 years). #5..
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6 Section 3 - Exclusive Rights
A. Federal law forbids the granting of an exclusive right to provide aeronautical services at an airport on which federal funds have been expended. An exclusive right is a power, privilege or other right excluding or debarring another from enjoying or exercising a like power, privilege or right. The City will not grant any such special privilege or monopoly in the use of public Airport facilities.
B. It is the policy of this City not to enter into or promote any understanding, commitment, or express agreement to exclude other reasonably qualified Lessees; the presence on the Airport of only one Lessee engaged in a particular aeronautical service(s) will not, in and of itself, indicate that an exclusive right has been granted.
Accordingly, those who desire to enter into a Lease with the City to engage in an aeronautical activity should neither expect nor request the City to exclude others who desire to engage in the same or similar activities. The opportunity to engage in an aeronautical activity shall be made available to those meeting reasonable qualifications and standards relevant to such activity and as space may be available at the Airport for such an activity.
Section 4 – Requests for Leases
A. Written Application Required. Any Person desiring to enter into a Lease with the City for permission to occupy Airport property shall make written application to the City for such permission.
B. Applicant Must Demonstrate Qualifications. If an Applicant is seeking to engage in a Commercial Aeronautical Activity, he/she shall also provide all application information and materials required by the Airport Minimum Standards. Application materials shall consist of a fully executed Application Cover Sheet, all the information specified in this Leasing Policy, the Airport’s Minimum Standards, if applicable, and all documentation deemed necessary by the City for a full and complete analysis of the Applicant’s qualifications. The Cover Sheet shall include the benefit that will accrue to the aviation public, not-for-profit entities, and commercial activities, from the Applicant’s proposed use of Airport property.
C. Space Limited to Demonstrated Need. A single aeronautical activity, although meeting all reasonable standards and qualifications, shall be limited to a lease of such space as is needed for that activity. When an Applicant seeks to lease property from the City, he/she must provide evidence of demonstrated need for the Airport property in question. The City will only agree to lease the amount of land justifiably required for the specific use. Additional land for unsubstantiated future expansions is not allowed.
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7 Section 5 – Application Documents
Each application for Lease of Airport Property shall be in writing and in sufficient detail to discern the complete qualifications of the Applicant and shall include, as a minimum, the following.
A cover sheet briefly describing the proposal, the offered lease rate, and other key summary information, accompanied by a Written Application including the details listed below.
A. The name, address, electronic mail address, and telephone number of the Applicant.
B. The amount, size, and location of the land and/or facilities desired to be leased.
C. Descriptions and cost estimates of any proposed capital improvements to be undertaken by the applicant, or proposed to be provided by another party. This specifically includes tenant improvements if the lease proposal is for an existing building.
D. The types and amounts of insurance coverage to be maintained for the proposed use of Airport property.
E. A current financial statement prepared or certified by an independent certified public accountant and certified by the Chief Financial Officer of the Applicant.
The City shall consider financial statements in evaluating the Applicant's financial ability to construct capital improvements (see C above), occupy Airport property, and enter into a Lease of Airport property.
• To the extent allowed by law (if any), proposed applications for Leases, and the financial terms thereof, shall initially be maintained as confidential, for discussion between staff and the Applicant, and for discussion among staff, the Applicant and the City Council and Airport Commission in executive session only.
F. Evidence, in a form acceptable to the City, of the Applicant’s financial ability to complete construction of proposed capital improvements (see C above) in one of the following forms:
• A performance bond in the amount equal to the cost for constructing the proposed improvements.
• An irrevocable letter of credit guaranteeing funds to complete the project • An escrow agreement administered by a title and escrow company; or • A trust administered by a commercial bank.
Section 6 - Action on Application
After an application has been completed and materials are submitted in accordance with Section 5, it will be reviewed by the City and a determination made regarding approval.
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8 The City may deny any application if, in the City’s opinion, any one or more of the following:
A. The Applicant's proposed use of Airport property or construction of leasehold improvements will create a safety hazard on the Airport.
B. The granting of the application will require the City to spend funds, supply labor or materials in connection with the proposed activity, or the activity is expected to result in a financial loss to the City.
C. Inappropriate, inadequate, or insufficient space exists at the Airport to accommodate the proposed activity or business.
D. The development or construction on the Airport necessary to accommodate the proposed business does not conform to land uses specified on the FAA-approved ALP.
E. The development or use of the area requested by the Applicant will result in congestion of aircraft or buildings or will result in unduly interfering with other Airport operations.
F. The Applicant does not meet the requirements of the Airport Leasing Policy.
G. The Applicant has either intentionally or unintentionally misrepresented or omitted any pertinent information in the application or in supporting documents.
H. The Applicant has a record of violating the Rules and Regulations of the Airport or of any other airport, FAA regulations, or any other federal, State, or local statutes, laws, rules, or regulations.
I. The Applicant has defaulted in the performance of any lease or any other agreement with the City or other airport(s).
J. The Applicant does not, in the opinion of the City, exhibit adequate financial responsibility to undertake the project based upon financial information provided.
K. The Applicant cannot provide acceptable surety in the amount required by the City.
L. The proposed activity or development is not in the best interest of the Airport or the public.
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9 Section 7 – Competitive Request for Proposal Process
Upon receipt of an application determined by the City to be complete, the City may issue a public notice of its intent to consider awarding a lease to the Applicant. The purpose of such action, should the City in its sole discretion determine it to be appropriate, is to gauge the level of market demand and competitiveness for the proposed activity or use of the site at the Airport.
Among the factors that can help determine whether competitive bidding should be utilized are:
● the size and proposed use of the property.
● level of market demand for use of Airport property.
● whether the property is going to be used for aeronautical or non-aeronautical purposes.
● whether the property is developed or vacant. If it is vacant, what is the proposed use; what type of improvements will be developed; how many employees will be working there? Is there infrastructure (such as utility lines) already in place or will they need to be installed, and if so, by whom?
• the financial strength and experience of the proposed tenant • the economic impact that the proposed project will have on the Airport and/or the City. Will it generate new revenue for the City or generate new activity at the Airport?
If issued, the notice shall invite other qualified Applicants to submit written expressions of interest in the Airport property under consideration. The City’s review of the subject lease proposal and other written expressions of interest will be reviewed and evaluated by the Airport Commission and/or City Council as appropriate. The notice will also list the criteria to be utilized by the City in making its selection.
In the event the City receives no other expressions of interest in the Airport property in question, the City may proceed to grant or deny the Applicant’s request based on the merits of the application and without further advertisement. Should the City receive written expressions of interest from one or more other potential Applicants interested in obtaining a Lease for the property in question, the City shall postpone making its decision on the Applicant’s request for a Lease until such time as the City has had an opportunity to collect materials from the other potential Applicants and to negotiate with each interested party to ascertain which party is willing and able to enter into a Lease that will be most advantageous to the City and the public using the Airport. (To the extent allowed by law, all such applications shall be treated as confidential, for discussion between staff and Applicants, and among staff, the Applicants and the City’s Council and Commission in executive session only).
In making its final decision regarding the use or disposition of the Airport premises and privileges in question, the City may reject a higher (financial) application and accept a lower one from a responsible Applicant, and award the lease in question to the lower bidder, if, in the City’s opinion, some reason affecting the interest of the City, or the #5..
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10 public using the Airport, makes it advisable to do so. An objective of City policy is to attract interested potential lessees. Lease rates and specified lease terms are firm but may contain the ability for City to approve negotiation of such prices and terms if it is found to be in the best interest of the City and the airport.
Section 8 - Standards for Leasing Airport Property
A. Lease Classification. The City will address each airport lease and/or proposed airport lease for the purpose of definition and relevance to airport use according to the following classifications:
• Non-commercial Hangar – Primarily for private aircraft storage; The City will determine if smaller parcels or additional infrastructure provisions are necessary.
• Non-commercial Multi-Tenant – A proposed development of a number of private hangars under one project which affords multiple tenants the benefits of larger economy of scale to offset the burdens of project development costs.
• Commercial Aviation (FBO) – Any commercial service facility allowing single or multiple aviation service disciplines to be accommodated on one site.
• Non-aviation Commercial/Industrial – Any entity that provides benefit to the airport, the community, or the local economic base through services or employment provided, which remains compatible with the Airport existence.
This category could well include Hotels, Conference and Recreational uses. • Public Facility – Government sponsored and publicly operated uses that provide benefits to the airport, aviation, and/or the local community are part of this category.
• Non-profit Entities – A number of uses qualify as non-profit organizations and valid services that benefit not only aviation, but also a variety of public causes and concerns. Rental agreements are therefore justified. • Unimproved Land – The occasional need to enter into leases and use agreements for uses which utilize larger amounts of land but without specific definition or qualification. e.g. The farming contract maintains vast portions of airport property not otherwise utilized. Occasional airport/aircraft operations require large areas for specific short-term purposes.
B. Requests for Additional Space. If the need for additional space becomes apparent for or in connection with a new or expanded activity, or one not authorized by the Lessee’s existing Lease, the request for additional space may be treated as a new Lease request by the City.
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11 Otherwise, a simple amendment to the existing lease agreement may be appropriate.
C. Lease Term. The Term is categorized according to the following considerations:
1. Long-term development of unimproved land.
2. Occupancy of facilities owned by the Airport.
3. The designation of the facility or proposed property on the ALP.
4. The Lessee’s proposed use of the property.
5. The Lessee’s proposed capital investment in facilities and peripheral benefits to the airport.
While subject to specific negotiations between the City and each Lessee, the standard Lease Terms would be as follows:
1. Existing Facilities owned by the airport, Requiring No additional Capital Investment: 1-3 years.
2. Initial term of leases for construction on unimproved land: 10-20 years depending on level of the capital investment.
3. Options to Extend in 5 - 10-year increments may be negotiated. Any extension
or renewal of land leases shall be subject to adjustment of the rental rate based on
the current fair market rental value of the leased premises.
In responding to a request to exercise an Option to Extend, the City will consider whether the Lessee is or has been in default of any terms and conditions of its Lease as well as the structural integrity, safety, and appearance of the leasehold improvements. Upon receipt of the request, the City will inspect the leasehold improvements for condition, appearance and viability for continued occupancy. The actual lease agreement shall be reviewed for compliance with its terms and conditions.
D. Lease Expiration. In order to ensure compliance with this Policy and FAA Guidelines, it is not feasible to simply extend the term of existing leases, and thus, no time extensions will be allowed. Notwithstanding the foregoing, it is not the intent of the City to arbitrarily require the wholesale removal of existing tenants from their lease sites, so long as the occupancy remains viable and the basic provisions of this Policy and FAA Guidelines can be met.
1. As current leases reach a time where extension of term is essential to accommodate additional operations or development plans, the provisions of this policy may be implemented. The occupancies may be allowed to remain, but only under a new lease agreement, drafted and executed under the policies and standards currently outlined in this document and as may be amended in the future. As policies change, rental rates and escalations are adjusted, and new legal provisions evolve, new lease agreements will contain these necessary modifications. The provisions of Section D (Reversion) below will apply. #5..
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12 2. If a lease extension on an existing occupancy is requested, the terms for the new lease will remain relatively unchanged for that duration. Although the Lessee will be a new entity, no additional investment in the property is anticipated. No change in occupancy is intended. The ownership of site and building improvements as outlined in the lease will apply. With no Capital investment, the new term may be 3-5 years, so long as the lease remains in full compliance and the age and current condition of the leased premises and its improvements remain viable and useable. If significant investment and/or new development is requested or anticipated, then terms under the new lease would be extended commensurate with the amount of investment considered.
3. At the conclusion of the new lease, ownership of all site and building improvements revert to the Airport. Any subsequent occupancies are authorized under new lease agreements and shall be executed according to the adopted standard for new leases of City property. In accordance with FAA orders and guidelines, rental rates for leases on non- aeronautical sites will be based on the Fair Market Value as established for the premises. Rental rates for lease on the aeronautical sites will be based on fair and reasonable value as established for the site.
E. Reversion. At the termination or conclusion of any lease agreement, the ownership of all site and building improvements shall revert to the Airport, except under the following conditions:
1. The occupancy is allowed to remain under the provisions of a new, short-term lease.
2. The preceding lease agreement specifically identifies the owner and states that he retains ownership and the right to remove the hangar from the airport.
3. The Airport, upon thorough inspection of the building, determines that it is not suitable or viable to remain as an operable and maintainable building. In which case the Tenant is required under the terms of the outgoing lease to remove the building at Tenant’s own cost and responsibility.
If the building improvements are allowed to remain, no further lease extensions are granted, and a new lease agreement is not entered into, the Lessee shall agree that all said improvements shall, become the property of the City. Under no circumstances shall the Tenant be entitled to any compensation for the value of its business, franchise, or improvements.
F. Leases for Private Aeronautical Uses. The City is required to operate the Airport for the maximum use and benefit of the public, and must retain the ability to make reasonable provision for essential support services for those who use the Airport; nevertheless, some private aeronautical uses may be beneficial to the City; for instance, a private flying club might be a desirable and compatible use. Proposed Leases for private aeronautical uses will be evaluated on a case-by-case basis, taking into account long-term plans for the development of the Airport, the benefits which may be derived from the proposed Lease, the potential costs of the proposed Lease to the City, the availability of suitable space, the potential for conflict or interference with the public uses of the Airport, and any other factors the City deems relevant. #5..
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13 G. Adherence to Airport Layout Plan (ALP) Required. The ALP depicts the entire property of the Airport and identifies existing facilities and plans for future development. The ALP reflects the existing and proposed allocation of areas of the Airport to specific operations and land uses. No use, occupancy, construction, modification or improvement that is inconsistent with the Airport’s FAA-approved ALP shall be viewed as desirable by the City. The conversion of any area of the Airport to a substantially different use than that shown in the approved ALP could adversely affect the safety, utility or efficiency of the Airport. Only upon a determination by the City that a particular construction, modification or improvement would serve the needs of the Airport public for facilities or services, and that a change in circumstances is evident such that the need for space for such facilities or services was not anticipated at the time the most recent ALP was submitted to the FAA for approval, will the City consider making application to the FAA for approval of a revision of the ALP pursuant to the request of an Applicant or Lessee. Nothing contained in this policy shall require the City to make such application.
H. Development of Vacant Airport Property. Any application for permission to develop vacant airport properties shall include, in addition to all other required materials, a site plan depicting the nature and location of the proposed development. Before actual development, the site plan must be approved by the City.
I. Liens or Encumbrances to Airport Property. The tenant is given the right by the City to mortgage its interest in the Lease, under one or more leasehold Mortgage(s) and assign its interest in this Lease, as collateral security for such Mortgage(s) to secure any bona fide loan upon the condition that all rights acquired under such leasehold Mortgage(s) shall be subject to each and all of the covenants, conditions and restrictions set forth in the Lease.
J. Financing Airport Development. The City is under no obligation to provide financing, or to make any improvements to Airport property to facilitate leasehold improvements proposed by an existing or prospective Lessee. If such a Lessee cannot demonstrate the financial means to implement and pay for such development that may be an indication that the proposed development would not be in the best interests of the City or the public using the Airport. Nevertheless, once an Applicant or Lessee has demonstrated the requisite financial responsibility, the City may choose to pursue any federal, state or City funds to contribute to the leasehold improvements, if in doing so there would be no diversion of funds away from capital improvements or the Airport capital budget program planned by the City.
K. General Rights and Privileges Granted. Airport Leases are designed to accomplish one or more of three basic rights or privileges: the right for a Person to use the landing area and other public Airport facilities in common with others so authorized; the right to occupy Airport Property, and to use exclusively, certain designated premises; and/or the commercial privilege or the franchise right to offer goods and services to the public who use the Airport. The City will not enter any Lease without receipt of #5..
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14 adequate consideration for the rights granted therein.
L. Control Over Operations. Any Lease granting the right to serve the public on the premises of the Airport shall be subject to terms and conditions reserving to the City sufficient controlover operations to ensure that the Lessee will treat patrons fairly. The Lessee must agree to make available its services and facilities on fair and reasonable terms, and without unjust discrimination.
M. Control over Aeronautical Activity and Development. The City will enter into no Lease that would require it to divest itself of the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, or the right to prevent any Lessee from erecting, or permitting to be erected, any building or other structures that might limit the usefulness of the Airport or constitute a hazard to aircraft. The City will enter into no Lease that would require it to divest itself of, or limit its right to develop or improve the Airport as it sees fit, regardless of the desires or views of any Lessee and without interference or hindrance from such a party.
N. Airport Minimum Standards. The Airport Minimum Standards set forth the qualifications which must be met by a Lessee conducting certain aeronautical activities at the Airport. They establish a basis for practical negotiations between the City and potential Lessees offering such activities; however, prospective Lessees should be aware that the City, if presented with a choice between multiple potential Lessees for a single space or facility, will give preference to Lessees who can offer the City and the public the highest standard of quality and service which may well exceed the Airport Minimum Standards for a proposed activity. Existing and prospective Lessees shall understand that the City may increase its Airport Minimum Standards from time to time, in order to ensure a higher quality of service to the public. Only in the rare circumstance, where the aviation community at the Airport has encountered difficulty in attracting a competent service entity, shall the City consider waiving an Airport Minimum Standard to allow a period of initial development. In all other circumstances, it is the policy of the City not to enter into Leases with Lessees who cannot meet the applicable Airport Minimum Standards.
O. Waivers of Immunity. The City will enter into no Leases that require it to waive any sovereign, governmental or other immunity to which it may be entitled, or that would require it to submit to the laws of any state other than those of the State of California.
P. Indemnification. Every Lessee desiring to Lease Airport property shall agree to indemnify and hold the City, its officers, officials, agents, representatives and employees from and against any and all injuries, damage or harm, or any nature whatsoever, which may result from its use or occupancy of Airport property.
Section 9 - Written Agreement
All Persons, prior to the commencement of construction of leasehold improvements or operation of an Aeronautical Activity as defined herein, shall enter into a Lease with the #5..
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15 City setting forth the terms and conditions by which the Person shall occupy and use Airport property. Leases entered into by the City are designed to protect the public interest and may contain more restrictive clauses than private sector leases, are to be in a form approved by the City’s legal counsel and shall, at a minimum; conform to local/regional standards of tenant responsibility and liability.
Each Lease shall include all provisions required by law and obligations placed upon the City by all federal and State agencies including, but not limited to, compliance with all federal, state and local laws and regulations pertaining to the use of the leased premises.
Other Lease provisions contain standard language, developed through continuous review and revision of the document for conformance to FAA regulations, real estate law, changing economic conditions and other risks associated with land ownership. A sample of that document is available for review.
Section 10- Sublease/Subletting
Lessee shall not, without the prior written consent of Lessor using the approved Sublease Agreement in Section 14, which consent may be withheld by Lessor in its sole and absolute discretion:
(a) sublease all or any portion of the Premises or any interest therein; (b) assign this Lease or any interest herein; or
(c) grant any license, concession, or other right of occupancy of the Premises or any portion thereof.
Any attempted sublease, assignment, or other transfer in violation of this Section shall be void and of no force or effect and shall constitute a material breach of this Lease. In the event Lessor consents to a sublease or assignment, the terms of such sublease or assignment shall be subject to all of the terms and conditions of this Lease and shall not extend beyond the expiration date of this Lease, including any properly exercised renewal or extension periods. Lessee shall remain primarily liable for the performance of all covenants, terms, and conditions of this Lease, notwithstanding any such sublease or assignment.
Lessees further agree to pay to Lessor five percent (5%) of the total amount of any rental fees received by Lessees from any sublease of the private hangar facility which shall be payable by the fifteenth (15th) day of the month following that month in which said fees are received by Lessees.
In addition to the foregoing, Lessee shall ensure that any sublease or other occupancy agreement complies with all applicable federal, state, and local laws, regulations, and ordinances, including, without limitation, all regulations of the Federal Aviation Administration (FAA) and the California Department of Transportation (Caltrans) regarding airport operations, land use, and noise compatibility. Lessee further agrees to provide Lessor with a copy of any proposed sublease or other occupancy agreement for its review and approval prior to execution.
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16 Section 11 - FAA Required Lease Provisions
In addition to the minimum terms and conditions listed in Section 9, each Lease shall contain provisions requiring the Lessee to furnish services on a reasonable basis to all users thereof, and charge reasonable and not unjustly discriminatory, prices for each unit or service, provided that the lessee may make reasonable and nondiscriminatory discounts, rebates or other similar types of price reductions to volume purchasers.
Section 12 – Rentals, Rates, Fees, and Charges
A. Financially Self-Sufficient. The City has an obligation to make the Airport as selfsufficient as possible under the circumstances existing at the Airport at any given point in time. Toward this end, the City, through its Leases, and by other means available to it, shall endeavor to recover the cost of providing its facilities, through rentals, fees or other charges. All Leases shall provide for adequate consideration to be received by the City in compensation for the rights and privileges therein granted. It shall be the policy of the City to seek Lease terms and conditions that, while fair and nondiscriminatory, provide the most advantageous returns to the City.
B. No Unjustifiably Discriminatory Rates. Each Lessee shall be subject to rates, fees, rentals and other charges (e.g., fuel flowage fees, hangar rentals, percentages of gross volume of business, etc.) as may be currently applicable to, or being received from others making the same or similar uses of the Airport, utilizing the same or similar facilities. Nevertheless, in respect to a contractual commitment from any Lessee, the City may charge different rates to similar users of the Airport if such rates are nondiscriminatory in purpose. Differences in values of properties involved, and the extent of use made of common use facilities may be factors to be considered. Seldom will each Airport user have properties of the same value nor will their use and impact upon common facilities be the same. If one Lessee is in what is considered a prime location, and another is in a less advantageous area, there could logically be a differential in the fees and charges, to reflect this advantage of location. This factor might also influence the rental value of the property. If one Lessee rents office and/or hangar space and another builds its own facilities, this would provide justification for different rental and fee structures; these two Lessees would not be considered essentially similar as to rates and charges even though they offer the same services to the public.
C. Rental Rate. The City pursues its objectives towards financial self-sufficiency through establishing fair and equitable rental rates to the greatest extent possible.
Competition may determine applicable rates and charges. In situations where leases are awarded as the result of competition, said Leases shall be subject to the financial terms and conditions proposed therein. Leases obtained through this process may offer returns that are higher than those being received from existing leases at a given point in time.
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17 The alternative in a rental process is to define a rental rate based on the current market value of the subject property and then negotiating within an adopted range of pricing, based on the relative merits and local benefits identified for the particular lease agreement.
D. Periodic Adjustment of Rates. Providing for adjustments to rental rates and Airport user fees facilitates parity of rates and charges between new and long-standing Lessees and enables the Airport to remain as self-sustaining as possible under the circumstances existing at any given point in time. Each lease shall be adjusted annually in accordance with the City’s adopted escalation policy and based on the Consumer Price Index for all Urban Consumers San Francisco-Oakland Metropolitan area published immediately before the Adjustment Date. All leases with a term of five years or more shall contain provisions subjecting the rental rates to a periodic adjustment of rent based on a determination of Fair Market Value of comparable properties within the airport area. The periodic adjustment shall not increase the rental rate more than 20% for each of these five-year adjustments. Periodic adjustments will be based on current FAA guidance for evaluating land value at airports.
E. “Pioneer” Periods Disfavored. In the case of a new general aviation Lessee, offering services not previously available to the public at this Airport, the City may choose to offer reduced rental rates or other inducements to obtain a Lessee, recognizing that it may well be a non- profit venture during its pioneering period. In such circumstances, the “incentive rate” shall be offered only during a specific “pioneer” period, and shall be defined to end on a specified date. Future Lessees coming on the Airport following the pioneer period will be expected to pay the comparable standard rates and charges based on then-current values, rates and charges, and the City shall not be obligated to offer subsequent Lessees a pioneer period. Nor shall it generally be appropriate to offer an established Lessee the benefit of an additional period of reduced rates or other financial inducements, beyond the Lessee’s initial pioneer period.
F. Diligent Bookkeeping Required. Income from a Lessee’s Airport operations must be fully accounted for, and adequate records must be kept to evidence amounts due to the City for the various rentals, fees and charges applicable to the Lessee’s operations at the Airport. The City shall be entitled to have access to such records upon request.
Section 13 – Construction of Leasehold Improvements
Through its leasing activities, the City seeks to promote consistent, attractive, and compatible high quality development and facilities at the Airport. In addition, it desires to encourage private sector investment in Airport facilities, develop and maintain aesthetic excellence, and high standards of environmental protection. Finally, it desires to create standards of development that maintain the character of the Airport and ensure all construction meets and exceeds all applicable safety standards and requirements.
Each Lease issued by the City shall include the specific development requirements for the construction of leasehold improvements on the Airport; however, following are #5..
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18 general provisions and policies applicable to each Airport Lease:
A. No leasehold improvements shall be designed, planned, constructed, reconstructed, or remodeled without the prior written approval of the City.
B. Any structure or facility to be constructed or placed upon the Airport shall be constructed in a manner to conform to all safety and environmental regulations of the State of California and the City, and shall be in compliance with the City’s current site development requirements, building codes, zoning regulations, and fire regulations as well as FAA design standards.
C. Responsibility for obtaining appropriate approvals from government authorities and complying with their various regulations, policies and standards shall be that of the Lessee. Potential tenants should be advised that any work done at the Airport may require compliance with not only state but also federal prevailing wage requirements.
D. Lessees shall obtain at their sole expense all permits required for their construction program and shall pay all taxes, permits, inspection fees, and licenses required for the construction and operation of their facilities and businesses.
E. The design of any leasehold improvement is to be carried out under the direction of a registered architect or engineer. All design drawings are to be prepared by a registered architect or engineer. Construction drawings are to be certified by their respective professional disciplines – architectural, structural, mechanical, electrical, and civil engineers.
F. The City may provide infrastructure for the proposed leasehold improvements.
Absent the availability of City funding of such improvements, each Lessee may be responsible for and incur the expenses for connection to all leasehold improvements and facility requirements including public roadways, aprons, taxiways, electrical power, communications, water, sewer and natural gas.
At the City’s option, an agreement may be made whereby qualified infrastructure improvements to serve a specific lease site may be financed by the prospective tenant and then reimbursed by the City through a credit in monthly rents due to the City.
Infrastructure constructed to serve a specific lease site that also benefits neighboring lease sites, may be additionally financed by a Reimbursement Agreement, created and administered by the City and executed with the neighboring lease sites when they develop.
The final details of each reimbursement shall be determined through negotiation between the City and the prospective tenant at the time the lease agreement is developed. Lessees shall obtain the prior written approval from the City to modify, improve, add to or delete facilities from their leased area. If any structure is erected, placed, or altered upon in any other manner than in accordance with #5..
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19 plans and specifications approved by the City,
such construction will be considered to have been undertaken without approval. This restriction is applicable to landscaping plans as well as architectural plans.
G. Lessees shall suppress, at their own expense, and to the satisfaction of the FAA, all electromagnetic interference with radio guidance, safety devices or with any electric or electronic equipment or installations on or associated with the Airport.
H. The City assumes no responsibility with regard to the ability of the Lessee to complete construction or otherwise meet the Terms and Conditions of its Lease nor does it assume any responsibility for an error, fault or omission in the plans and specifications that have been approved. The City reserves the right to serve notice that action must be taken to remedy any improper situations.
I. Noise, dust, odors, storm water detention, water quality, and smoke generation are of particular concern in the design and operation of any facility on the Airport.
Therefore, the design and construction of all facilities shall comply with all federal, state, and local environmental regulations applicable to the Airport.
J. The City or its representative(s) shall have the right at reasonable times to visit sites and enter buildings that are completed or in the process of being built, changed, repaired, moved or demolished.
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20 Section 14- Sublease Agreement
Modesto City-County Airport/Harry Sham Field Hangar Office Space Sublease Agreement
This Sublease Agreement is entered into between _________(“Lessee”), __________ (“Sublessee”), and the City of Modesto (“City”) on ________ (the “Effective Date”).
Pursuant to Section 19 of the Airport Office Lease between City and Lessee (“Lease Agreement”), City approval is required prior to subleasing. Airport office space may be subleased by filling out this form and gaining the approval of the Airport Manager. Lessee now desires to sublease the space to Sublessee, subject to the terms and conditions below.
Lessee information:
Date Hangar No Lease Agreement Number
Term of the Sublease
Lessee Name Phone Number
Address
City State Zip Code
E-Mail Address
Sublessee Information:
Sublessee name
Address
City State Zip Code
Cell Phone Alt Phone
E-Mail Address
Emergency Contact & Phone Number
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21 Description of Sublease location, nature, scope, and operations:
The Sublessee agrees to the following Terms and Conditions:
1. Abide by and be bound by all terms of the Lease Agreement with the City. Sublessee agrees to assume all rights and obligations under the Lease Agreement.
2. Abide by all Airport rules, regulations, ground vehicle operations, and minimum standards now in effect or hereafter adopted or revised by the City.
3. Sublessee may under no circumstances sublet all or a part of the space identified above.
4. It is the responsibility of the Lessee to provide keys to the Sublessee for the hangar.
Sublessee shall not change the locks on the hangar without the consent of the Lessee. If locks are changed, a key shall be provided to the Modesto Fire Department for the lock box, if one exists.
5. Sublessee shall not make alterations to the outside of the hangar, concrete, or pavement.
6. Sublessee shall not store materials or equipment outside of the Leased Space.
7. Lessee must notify the Airport Manager if the Sublease Agreement has been terminated.
8. Sublessee shall provide and keep the above information current.
9. Sublessee agrees to provide insurance coverage in the same types and amounts required of Lessee in the Lease Agreement, including naming the City as an additional insured.
10. Sublessee further agrees to hold the City and its agents, officers, employees, and volunteers harmless from and save, defend, and indemnify them against any and all claims, losses, liabilities, and damages from every cause including, but not limited to, injury to person or property or wrongful death, with the indemnity to include reasonable attorney fees, and all costs and expenses, arising directly or indirectly out of any act or omission of the Sublessee whether or not the act or omission arises from the sole negligence or other liability of the Sublessee, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this Sublease Agreement.
Lessee and Sublessee hereby certify they will comply with the Terms and Conditions set forth.
Understanding that failure to comply may result in loss of access to the Modesto City-County Airport and potentially termination of the sublease approval or the Lease Agreement. A notice of violation will be issued for any observed violation of the above terms. The City reserves the right to re-examine the Terms and Conditions set forth above at any time.
The information provided by Lessee and Sublessee is true, complete, and correct to the best of their knowledge and is provided in good faith. Lessee and Sublessee understand that a knowing and willful false statement on this application will result in automatic denial or revocation of the Terms and Conditions set forth.
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2025
22 Lessee Name _______________________________ Date____________ Lessee Signature ____________________________
Sublessee Name____________________________ Date____________ Sublessee Signature_________________________
Airport Manager Name_______________________ Date____________ Airport Manager Signature____________________
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CITY OF MODESTO
COMMITTEE AGENDA REPORT
DATE OF MEETING:
May 11, 2026
Date: April 20, 2026
TO: Safety and Communities Committee
Chris Ricci, Chair
Rosa Escutia-Braaton, Vice-Chair
Jeremiah Williams, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community & Economic Development SUBJECT: 2025 Rental Housing Safety Program Annual Report CONTACT: Oscar Diaz, Chief Building Official, [email protected] , 209-571- 5885
DESCRIPTION:
Consider accepting the 2025 Rental Housing Safety Program Annual Report. (Funding Source: Measure H/Inspection Fees).
STRATEGIC PLAN ELEMENT:
The Rental Housing Safety Program is in line with the 2025-2026 City of Modesto’s Strategic Plan Quality of Life - Goal D: Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.
BACKGROUND:
In April 2018, the City’s Safety & Communities Committee became aware of a major code enforcement case involving a large multifamily residential property that required condemnation and tenant relocation. This high-profile incident highlighted serious concerns regarding rental housing conditions and underscored the limitations of the City’s reactive, complaint-based inspection system.
In response, the Committee directed staff to evaluate potential approaches to improving rental housing safety, including gathering public input on whether and how the City should take action. City staff conducted two public outreach meetings and engaged a broad range of stakeholders to collect feedback, technical insight, and lived #6..
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2025 Rental Housing Safety Program Annual Report
experiences. These efforts ensured that any future program would be informed, balanced, and responsive to community needs.
At the time, the City’s rental housing inspection process was entirely complaint-driven, with inspections occurring only in response to tenant-reported issues. This reactive approach meant there was no systematic or proactive mechanism to ensure that rental units complied with basic health and safety standards. As a result, significant gaps in enforcement emerged, disproportionately impacting low-income households.
Many tenants were reluctant to report unsafe or substandard living conditions due to fear of retaliation, including eviction, rent increases, or strained relationships with property owners. This reluctance was especially pronounced among lower-income renters and those with limited housing alternatives.
In 2019, the Council adopted Ordinance 3703, establishing a citywide Rental Housing Safety Program to proactively address housing conditions and protect residents. The program was developed through a collaborative effort with key stakeholders, including California Rural Legal Assistance, California Apartment Association, and Faith in the Valley, reflecting a balanced approach that considers the needs of tenants, property owners, and the broader community.
This program requires that all residential rental housing units undergo periodic inspections to ensure proper maintenance and to prevent conditions that could adversely affect the quality of life in the City. To support this effort, the ordinance mandates an annual audit of up to ten (10) percent of rental housing units, allowing the City to systematically monitor compliance and address deficiencies.
DISCUSSION:
The City was able to fully launch the Rental Housing Safety Program in 2023 through the funding with Measure H. The program was launched with a small team of five, comprised of two consultant Code Enforcement Officers, one Administrative Office Assistant, a temporary administrative staff member, and an Administrative Analyst. In the last year, the program was able to complete 2,555 inspections maintaining a strong operational focus on adhering to health and safety standards.
The Rental Housing Safety program currently has 20,086 rental units that are currently registered, representing approximately 57 percent of the estimated 35,000 rental units citywide. In 2025, staff was able to increase the registration from 16,395 to 19,214 noting an increase of 2,819. The distribution of 1,306 registration packets resulting in 2,819 newly registered units further highlights the effectiveness of targeted outreach efforts.
The program also made steady gains in expanding registration across a diverse mix of housing types, including apartments, condominiums, duplexes, and single-family rental units. This balanced growth supports the program’s goal of applying consistent #6..
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2025 Rental Housing Safety Program Annual Report
standards across the full spectrum of rental housing and helps prevent disparities in property conditions based on housing type.
Enforcement activity in 2025 reflects a proactive and data-driven approach. While 79 cases were initiated through tenant complaints, a significantly higher number of 655 cases—were opened through staff-led audits. This demonstrates the program’s emphasis on prevention and early intervention rather than solely relying on reactive enforcement.
Through these inspections staff identified 617 units with cited violations. Of these cited violations, 12 percent were from properties that were designated through tenant complaints, and 88 percent from staff-led audits. Through the hard work of staff and follow-up with the property owners, during 2025 the staff was able to bring 539 units into compliance.
The most frequently cited violations—electrical deficiencies, water heating issues, and smoke detector violations—point to ongoing concerns related to basic habitability and life-safety systems. These trends reinforce the importance of routine inspections and continued education for property owners regarding maintenance responsibilities and code requirements.
The Rental Housing Safety Program was set up in order to provide some cost recovery opportunities. From a fiscal perspective, the program generated modest revenue through citation fees, inspection fees, and cost recovery for penalty hearings. While not yet fully self-sustaining, these revenues contribute to offsetting operational costs and align with the program’s long-term goal of financial stability.
While staff have had substantial progress since the program’s inception, a significant gap of roughly 15,000 unregistered units remains. This gap underscores the need for continued and potentially enhanced outreach, education, and enforcement strategies to improve compliance rates. Achieving broader registration coverage is essential to ensuring equitable enforcement and safeguarding tenant health and well-being across all neighborhoods.
The City of Modesto is currently developing a comprehensive outreach and marketing strategy to enhance awareness of the Rental Housing Safety Program. As part of this effort, the City will launch a social media awareness campaign through its official Facebook platform. In addition, Building Safety will highlight the program during its upcoming open house event in May, providing an opportunity for direct community engagement. The City is also in the process of producing a success story video to further illustrate the program’s impact and benefits.
Overall, the 2025 data illustrates clear evidence of progress in inspections, registrations, and proactive enforcement. At the same time, the remaining volume of unregistered units and the prevalence of critical violations suggest that sustained investment in staffing, outreach, and enforcement will be necessary to fully realize the program’s objectives and ensure safe, healthy housing conditions for all residents. The 2025 #6..
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2025 Rental Housing Safety Program Annual Report
performance of the Rental Housing Safety Program demonstrates both meaningful progress and ongoing challenges in achieving comprehensive oversight of the City’s rental housing stock.
FISCAL IMPACT:
The Rental Housing Safety Program receives Measure H funding and also generates revenues through inspection fees and citations.
RENTAL HOUSING SAFETY PROGRAM REVENUES
Inspection Revenue $80,100
Citations $38,700
TOTAL REVENUE GENERATED 2025 $118,800
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COMMITTEE ACTION:
Staff Recommendations:
Motion accepting the 2025 Rental Housing Safety Program Annual Report.
Approved by:
Jessica Hill, Director of Community &
Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. 2025 Rental Housing Safety Program Annual Report
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