Modesto City Council
May 12, 2026

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

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, May 12, 2026 at 5:30 PM
Roll Call - Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
* Public Comment will only be in-person. Members of the public who wish to address the Council, by providing public comment, during the meeting must do so in-person in the Council Chambers.

As an alternative, members of the public may also provide written public comment submitted via email as indicated in the Submitting Comments by Email instructions on this agenda. Zoom will still be available for viewing and Wordly translation.
*Members of the public will be allowed to provide public comment through Zoom if a Councilmember is participating remotely pursuant to the provisions of California Government Code section 54953.8.3.
*If a technical issue arises with Zoom or the phone dial-in option, the Council meeting will continue unless the meeting is being held pursuant to the provisions of Senate Bill 707, California Government Code section 54953.8.3. Alternative viewing options are listed below, and the meeting is physically open to the public.
“Wordly” can translate into 25+ different languages! To access written translation during the meeting, please scan the QR Code or click this link https://attend.wordly.ai/join/RJDY-6364.
"Wordly" puede traducir a más de 25 idiomas diferentes! Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace https://attend.wordly.ai/join/RJDY-6364.
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You may observe a livestream of the meeting at http://media.modestogov.com. You may also view or listen to the meeting as indicated below.

THE MEETING CAN BE VIEWED BY ZOOM VIDEO

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

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

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

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

Pledge of Allegiance to the Flag
Invocation
City Clerk’s Announcements
Declaration of Conflicts of Interest
Reports from Closed Session

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Proclamation declaring May 2026 as National Historic Preservation Month. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected]

MISCELLANEOUS
Legislation, Appointments, Other

2. Consider approving the appointments of Shammy Karim with a partial term ending December 31, 2027 and Christian Simon with a partial term ending December 31, 2028 to the City of Modesto Citizens’ Housing and Community Development Committee. (Funding Source: Not Applicable)
Staff Recommendation:
• Resolution approving the appointments of Shammy Karim with a partial term ending December 31, 2027 and Christian Simon with a partial term ending December 31, 2028 to the City of Modesto Citizens’ Housing and Community Development Committee.

CED; Edgar Garcia, 209-577-5211, [email protected]

PUBLIC COMMENT PERIOD
Three-minute time limit per speaker.

Only interested persons in the audience may present these matters. Under State law, Councilmembers may respond to matters being presented under this item only as follows:
a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, a Councilmember or the Council itself may take action to direct staff to place a matter of business on a future agenda.
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CONSENT ITEMS – ROLL CALL VOTE REQUIRED
Information concerning the consent items listed below has been forwarded to each Councilmember prior to this meeting for study. Unless some member of the audience or Councilmember has a question concerning an item and asks that it be withdrawn from the consent list, the Council approves the items at one time. The action taken by the Council in approving consent items is set forth in the explanation of this individual item.

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

Consent

3. Consider approving the Minutes for the May 5, 2026 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
• Motion approving the Minutes for the May 5, 2026 Council Meeting.

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

4. Consider approving Final Adoption of Ordinance 3813-C.S. approving the Modesto Police Department’s Military Equipment Use Policy (Policy 710) in accordance with CA Assembly Bill 481, and approving the purchase of additional equipment that qualifies as “Military Equipment” in Fiscal Year 2026-2027 and rescinding Ordinance No. 3794-C.S. (Funding Source: Not Applicable)
Staff Recommendation:
• Motion approving Final Adoption of Ordinance 3813-C.S. approving the Modesto Police Department’s Military Equipment Use Policy (Policy 710) in accordance with CA Assembly Bill 481, and approving the purchase of additional equipment that qualifies as “Military Equipment” in Fiscal Year 2026-2027 and rescinding Ordinance No. 3794-C.S.

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

5. Consider the Draft Budget as submitted by the City Manager with the Mayor’s Final Budget Modifications and combining the documents into the Proposed Budget for Fiscal Year 2026-27 and noticing a public hearing to be held on June 2, 2026, for Council’s consideration and adoption of the Fiscal Year 2026-27 Proposed Budget and related actions. (Funding Source: Various Funds)
Staff Recommendation:
• Resolution combining the City Manager’s Draft Budget and the Mayor’s Final Budget Modifications into the Proposed Budget for Fiscal Year 2026-27 and noticing a public hearing to be held on June 2, 2026, for Council’s consideration and adoption of the Fiscal Year 2026-27 Proposed Budget and related actions.

BUDGET; Stephan Christensen, 209-577-5390, [email protected] - 4 -
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Consent

6. Consider accepting the Community Cleanup and Employment Pathway (CCEP) grant in the amount of $575,000 to expand the Modesto Mo’Beautiful Initiative. (Funding Source: Clean California Funds)
Staff Recommendation:
• Resolution accepting the Community Cleanup and Employment Pathway (CCEP) grant in the amount of $575,000 to expand the Modesto Mo’Beautiful Initiative, and authorizing the City Manager, or his designee, to execute the agreement.
• Resolution amending the Fiscal Year 2025-26 Annual Operating and NonCapital Project fund budgets to establish a project as well as the necessary revenue, expenditures, and transfers in the amount of $575,000 to appropriate funds for the Community Cleanup and Employment Pathway (CCEP) Grant, and authorizing the City Manager, to take the necessary steps to implement the provisions of this resolution.

CED; Edgar Garcia, 209-571-5101, [email protected] Consent

7. Consider accepting the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project as complete, releasing securities, releasing payments totaling $3,938,967 to TCB Industrial Inc., of Modesto, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Wastewater Fund) Staff Recommendation:
• Resolution accepting the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project as complete, releasing securities, releasing payments totaling $3,938,967 to TCB Industrial Inc., of Modesto, CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] Consent

8. Consider accepting the Sisk Road Signal Coordination CML 5059 (264) Project as complete, releasing securities, releasing payments totaling $769,144 to Bear Electrical Solutions, LLC., of Alviso, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Congestion Mitigation and Air Quality and Measure L Funds)
Staff Recommendation:
• Resolution accepting the Sisk Road Signal Coordination CML 5059 (264) Project as complete, releasing securities, releasing payments totaling $769,144 to Bear Electrical Solutions, LLC., of Alviso, CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] Consent

9. Consider accepting the Rebid Carpenter Road Area Soccer Complex - Phase 2 Project as complete, releasing securities, releasing payments totaling $1,294,183 to Frontline General Engineering Construction, Inc. of Tracy, CA, and authorizing the City Clerk to - 5 -
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file a Notice of Completion. (Funding Source: Various Funds) Staff Recommendation:
• Resolution accepting Rebid Carpenter Road Area Soccer Complex - Phase 2 Project as complete, releasing securities, releasing payments totaling $1,294,183 to Frontline General Engineering Construction, Inc. of Tracy, CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] Consent

10. Consider approving a Sixth Amendment to the Agreement with Property Specialists, Inc., dba CPSI, now known as Interwest Consulting Group, Inc., for additional rightof-way services for the State Route 132 West Freeway/Expressway - Phase 1 Project, increasing the agreement amount by $199,801, plus $19,980 additional services, if needed, for a total increase of $219,781 and a total not to exceed amount of $4,178,975. (Funding Source: Streets Capital Facility Fees) Staff Recommendation:
• Resolution approving a Sixth Amendment to the Agreement with Property Specialists, Inc., dba CPSI, now known as Interwest Consulting Group, Inc., for additional right-of-way services for the State Route 132 West Freeway/Expressway - Phase 1 Project, increasing the agreement amount by $199,801, plus $19,980 additional services, if needed, for a total increase of $219,781 from $3,959,194 for a total amount not to exceed $4,178,975, and authorizing the City Manager, or his designee to execute the Sixth Amendment to Agreement.

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

11. Consider approving the Auditors’ Reports and Schedule of Measure L Program Revenues and Expenditures for Fiscal Year Ended June 30, 2025. (Funding Source:

Not Applicable)
Staff Recommendation:
• Resolution approving the Fiscal Year 2024-2025 Auditor’s Report on Compliance of the Measure L: Local Roads First Transportation Funding Measure.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
Consent

12. Consider approving Agreements for the furnishing of Commercial Cannabis Inspection and Financial Audit Services to Hinderliter, De Llamas and Associates (HdL) Companies, Brea, CA and Booth Management Consulting, LLC, Columbia, MD for a total combined amount not to exceed $924,475 over five years. (Funding Source:

Cannabis Permit Fee)
Staff Recommendation:
• Resolution approving the Award of Proposal and Agreements for the furnishing of Commercial Cannabis Inspection and Financial Audit Services to - 6 -
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Hinderliter, De Llamas and Associates (HdL) Companies and Booth Management Consulting, LLC for a two-year agreement with three one-year extension options, for an estimated combined annual amount of $184,895, and a total combined amount not to exceed $924,475 over five years; authorizing the Director of Finance to adjust agreement totals between vendors based on consultant’s availability and department’s needs; and authorizing the City Manager, or his designee, to execute the Agreements.

FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] Consent

13. Consider approving an Agreement for the furnishing of Document Storage Services to Pacific Storage Company, Modesto, CA for a total amount not to exceed $330,805 over five years. (Funding Source: Various Funds)
Staff Recommendation:
• Resolution approving the Award of Bid and Agreement for the furnishing of Document Storage Services to Pacific Storage Company, Modesto, CA for two year agreement with three one-year extension options, for an estimated annual amount of $66,161 and a total amount not to exceed $330,805 over five years; and authorizing the City Manager, or his designee, to execute the Agreement.

FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] Consent

14. Consider approving the purchase for six Fleet Additions and six Fleet Replacements in a total amount not to exceed $3,924,616. (Funding Source: Measure H and Fleet Replacement Fund)
Staff Recommendation:
• Resolution approving the Competitive Bidding Process from Sourcewell through State of Minnesota to Nixon-Egli Equipment Company, Tracy, CA for the purchase of one Link Belt Crane for an amount not to exceed $1,826,033; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price. • Resolution approving the Competitive Bidding Process from Sourcewell through State of Minnesota to Altec Industries, Birmingham, AL for the purchase four Articulating Telescopic Aerial Devices for an amount not to exceed $1,254,341; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
• Resolution approving the Competitive Bidding Process from Sourcewell through State of Minnesota to Versa Lift a Time Manufacturing Company, Waco, TX for the purchase of one Telescopic Aerial Platform Lift Truck for an amount not to exceed $211,427 plus $16,770 in taxes and fees to be paid directly to the State; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance, or her designee to execute any Change Orders not to exceed 15% of the total purchase - 7 -
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price.
• Resolution approving the Competitive Bidding Process from the State of California to Winner Chevrolet, Sacramento, CA for the purchase for six Chevrolet Silverado 3500 Regular Cab 4x2 Trucks for an amount not to exceed $616,045; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price.

FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] Consent

15. Consider approving an Addendum to the Memorandum of Understanding (MOU) with Yosemite Community College District (YCCD) for oversight of the Fire and Emergency Medical Services (EMS) Public Safety Program, to support YCCD’s establishment of a Paramedic Program (Program) and include the provision of a Paramedic Subject Matter Expert to assist in the development and implementation of the Program. (Funding Source: General Fund)
Staff Recommendation:
• Resolution approving an Addendum to the Memorandum of Understanding (MOU) with Yosemite Community College District (YCCD) for oversight of the Fire and Emergency Medical Services (EMS) Public Safety Program, to support YCCD’s establishment of a Paramedic Program (Program) and include the provision of a Paramedic Subject Matter Expert to assist in the development and implementation of the Program, and authorizing the City Manager, or his designee, to execute the Addendum.

FIRE DEPARTMENT; Shanon Evans, 209-572-9590, [email protected] Consent

16. Consider approving a First Amendment to the Agreement with Final Cut Media, Modesto, CA for Education and Government Broadcast Production Services increasing the Agreement amount by $124,001 through the duration of the Agreement and extending the term of the Agreement from June 30, 2026, to June 30, 2027. (Funding Source: Education and Government Cable Fund)
Staff Recommendation:
• Resolution approving a First Amendment to the Agreement with Final Cut Media, Modesto, CA for Educational and Government Broadcast Production Services increasing by $124,001, to a new estimated annual amount of $233,097, and a new total amount not to exceed $1,708,702 through the term of the Agreement, and extending the term of the Agreement from June 30,2026, to June 30, 2027; and authorizing the City Manager, or his designee, to execute the Amendment to the Agreement.

IT; Dameon Booker, 209-447-1088, [email protected] Consent

17. Consider approving the Resolution of Intent to consider Franchise Agreements with Gilton Solid Waste and Bertolotti Modesto Disposal for Solid Waste Collection Services, and setting a public hearing on June 9, 2026, at 5:30 p.m. (Funding Source:
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Not Applicable)
Staff Recommendation:
• Resolution approving Intent to consider Franchise Agreements with Gilton Solid Waste and Bertolotti Modesto Disposal for Solid Waste Collection Services, and setting a public hearing on June 9, 2026, at 5:30 p.m.

PUBLIC WORKS; Jody Strait, 209-577-6416, [email protected] Consent

18. Consider approving the Agreement for Rock Well Rejuvenation Services to Fox Loomis, Inc., Sacramento, CA, for a total amount not to exceed $2,871,991 over five years. (Funding Source: Storm Drain Fund)
Staff Recommendation:
• Resolution approving the Award of Bid and Agreement for Rock Well Rejuvenation services to Fox Loomis, Inc., Sacramento, CA, for a two year Agreement with three one-year extension options, for an estimated annual amount of $574,398 and a total amount not to exceed $2,871,991 over five years; and authorizing the City Manager, or his designee, to execute the Agreement.

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

19. Consider approving the Agreement for Sewer Root Control Services to Duke’s Root Control, Inc., Syracuse, NY, for a total amount not to exceed $747,601 over five years. (Funding Source: Sewer Operations Fund)
Staff Recommendation:
• Resolution approving the Award of Bid and Agreement for Sewer Root Control services to Duke’s Root Control, Inc., Syracuse, NY, for a two year agreement with three one-year extension options, for an estimated annual amount of $149,521 and a total amount not to exceed $747,601 over five years; and authorizing the City Manager, or his designee, to execute the Agreement.

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

20. Consider approving an Engineering Services Agreement with Woodard & Curran, of Sacramento, CA, for the preparation of the Groundwater Recharge and Storage Feasibility Study - Phase II, in the amount of $142,040, plus $7,110 in Additional Services, if needed, for an Agreement total not to exceed $149,150. (Funding Source:

Water Fund)
Staff Recommendation:
• Resolution approving an Engineering Services Agreement with Woodard & Curran, of Sacramento, CA, for the preparation of the Groundwater Recharge and Storage Feasibility Study - Phase II, in the amount of $142,040, plus $7,110 in Additional Services, if needed, for an Agreement total not to exceed $149,150 and authorizing the City Manager, or his designee, to execute the Agreement.

UTILITIES; Jim Alves, 209-571-5557, [email protected] - 9 -
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COUNCIL COMMENTS & REPORTS

CITY MANAGER COMMENTS & REPORTS

UNFINISHED BUSINESS

21. Consider approving the acceptance of the Homekey+ Program award amount of $18,689,375, the Stanislaus County Community Services Agency (CSA) award amount of $922,837 in Homeless Housing Assistance and Prevention (HHAP), the Behavioral Health and Recovery Services (BHRS) award amount of $500,000 and the approval of the grant agreements and a Community Development Block Grant (CDBG) loan amount of $3,007,163 to El Capitan Homekey LP. (Funding Source: Various Sources) • Resolution accepting the Homekey+ award in the amount of $18,689,375 and approving the Homekey Regulatory Agreement authorizing the City Manager or his designee to negotiate and execute an agreement with El Capitan Homekey LP for the development of 1121 Needham Street.
• Resolution approving a Community Development Block Grant loan to El Capitan Homekey LP for a total not to exceed $3,007,163, and $350,000 in activity delivery, and authorizing the City Manager or his designee to negotiate and execute an agreement with El Capitan Homekey LP for the development of 1121 Needham Street.
• Resolution approving an agreement with Stanislaus County Community Services Agency (CSA) for the acceptance of Homeless Housing Assistance and Prevention Program (HHAP) funding in the amount of $922,837 and to issue a grant the amount of $922,837 to El Capitan Homekey LP and authorizing the city manager or his designee to negotiate and execute an agreement with El Capitan Homekey LP for the development of the 1121 Needham Street.
• Resolution approving an agreement with Stanislaus County Behavioral Health and Recovery Services (BHRS) for the acceptance of funding in the amount of $500,000 and to issue a grant the amount of $500,000 to El Capitan Homekey LP and authorizing the City Manager or his designee to negotiate and execute an agreement with El Capitan Homekey LP for the development of 1121 Needham Street.
• Resolution amending the Fiscal Year 2025-26 annual operating and non-capital project fund budgets to establish the revenue, expenditures, and transfers for project #101644, fund 1346 in the amount of $23,119,375 to appropriate the Community Development Block Grant, Homeless Housing Assistance and Prevention Program (HHAP), and Behavioral Health and Recovery Services (BHRS) funds for the development of the 1121 Needham Street, and authorizing the City Manager or his designee to take the necessary steps to implement the provisions of this Resolution.

CED; Patty Estrada, 209-577-5527, [email protected] - 10 -
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HEARINGS
Published in the Modesto Bee on April 19, 2026.

22. Hearing to consider an Ordinance amending Compensation for the Mayor and Councilmembers’ Salaries pursuant to the Citizens’ Salary Setting Commission’s Final Recommendations pursuant to Modesto Charter Section 703. (Funding Source: General Fund)
Staff Recommendation:
• Motion Introducing and waiving the first reading of an Ordinance amending Sections 2-1.24 “Compensation of Mayor,” and 2-1.26 “Compensation of City Councilmembers,” of Chapter 1, “City Council Organization and Procedure,” of Title 2, “Administration,” of the Modesto Municipal Code, to increase the salaries of the Mayor and City Councilmembers pursuant to Charter Section 703 and the recommendations of the Citizen’s Salary Setting Commission of 2026.

CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] Published in the Modesto Bee on April 17, 2026 and April 24, 2026.

23. Hearing to consider approving Final Adoption of Ordinances repealing and replacing Chapters 1, 2, 3, 7, and 11 of Title 9 of the Modesto Municipal Code to adopt by reference, the 2025 California Building, Plumbing, Electrical, Mechanical, and Existing Building Codes. (Funding Source: General Fund, Building Permit Fees) Staff Recommendation:
• Motion approving final adoption of Ordinance 3808-C.S. repealing and replacing Chapter 1 ”Building Code” of Title 9, “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Building Code.
• Motion approving final adoption of Ordinance 3809-C.S. repealing and replacing Chapter 2 “Plumbing Code” of Title 9 “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Plumbing Code.
• Motion approving final adoption of Ordinance 3810-C.S. repealing and replacing Chapter 3 “Electrical Code” of Title 9 “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Electrical Code.
• Motion approving final adoption of Ordinance 3811-C.S. repealing and replacing Chapter 7 “Mechanical Code” of Title 9 “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Mechanical Code.
• Motion approving final adoption of Ordinance 3812-C.S. repealing and replacing Chapter 11 “Existing Building Code” of Title 9 “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Existing Building Code.

CED; Oscar Diaz, 209-571-5885, [email protected]
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Published in the Modesto Bee on April 8, 2026.

24. Hearing to consider approving the 2026-2027 Annual Action Plan and the acceptance of the 2026-2027 Annual HUD Allocation in the amount of $2,816,391. (Funding Source: HUD Entitlement Funding)
Staff Recommendation:
• Resolution approving the Program Year 2026-2027 Annual Action Plan, accepting U.S. Department of Housing and Urban Development (HUD) program funds awarded through the Program Year 2026-2027 Annual Action Plan as required by HUD and authorizing the City Manager, or his designee, to negotiate and execute any related program agreements, contracts, or other documentation required for implementation.

CED; Meggan Clifford, 209-577-5311, [email protected] Published in the Modesto Bee on May 1, 2026.

25. Hearing to consider receiving an Informational Report of vacancies, recruitment, and retention efforts to comply with Assembly Bill 2561. (Funding Source: Not Applicable)
Staff Recommendation:
• Motion accepting the Informational Report on vacancy rates, recruitment, and retention efforts to comply with Assembly Bill 2561.

HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected]

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

ADJOURNMENT
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on
at by
date time signature
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: March 5, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Two Appointments to the Citizens’ Housing and Community Development Committee
CONTACT: Edgar Garcia, Community Development Manager,
[email protected], 209-577-5211
DESCRIPTION:

Consider approving the appointments of Shammy Karim with a partial term ending December 31, 2027 and Christian Simon with a partial term ending December 31, 2028 to the City of Modesto Citizens’ Housing and Community Development Committee. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City of Modesto’s 2025-2026 Strategic Plan, Goal I: Promote trust and engagement between the community and the City by enhancing responsiveness, communicating broadly about City opportunities and challenges, and increasing public participation in municipal affairs.

BACKGROUND:

The Modesto Citizens’ Housing and Community Development Committee (CH&CDC) consists of 11 members appointed by the City Council for a 4-year term. The CH&CDC serves as an advisory group to the City Council on matters related to housing and community development.

The CH&CDC provides an overall review of the City's Housing and Urban Development (HUD) funds. The committee makes funding recommendations to the Modesto City Council regarding the HUD Community Development Block Grant, Emergency Shelter Grant, and Home Investment Partnership Grant programs.
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Two Appointments to the Citizens’ Housing and Community Development Committee

Section 11021 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions with the recommendation of the City’s Appointments Committee.

DISCUSSION:

Committee Member Larry Sanders was appointed on January 28, 2025, and unfortunately could not finish his term and formally resigned on March 19, 2025. With Larry Sander’s departure from the Committee, the Citizen-at-large position has remained unfilled. Soon after, Committee Member David Barber resigned on August 25, 2025. He was no longer eligible to serve on the committee after moving out of Modesto, leaving a second Citizen-at-large vacancy unfilled. These vacancies are to be filled by prospective candidates, recommended by the Appointments Committee, and final approval by the City Council. The candidates would be appointed to the Citizens Housing and Community Development Committee for partial terms as Citizens-At-Large with term expiration dates of December 31, 2027 and December 31, 2028.

Outreach for the Citizens’ Housing and Community Development Committee vacancies included posting the opportunity in the Modesto Bee and sharing it on the City’s various social media platforms by the City’s Community and Media Relations Team.

The Appointments Committee received a total of three (3) applications. The Appointments Committee reviewed the applications on March 4, 2026, and recommended the following appointments to fill the two (2) vacancies: appointment of Shammy Karim, to fill one (1) partial vacancy with a term expiring December 31, 2027; appointment of Christian Simon, to fill one (1) partial vacancy with a term expiring December 31, 2028.

FISCAL IMPACT:

There is no fiscal impact related to this action.

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.

COMMITTEE RECOMMENDATION:

On March 4, 2026, the Appointments Committee reviewed the applications and recommended the appointment of Shammy Karim and Christian Simon to the Modesto Citizens’ Housing and Community Development Committee to fill the two (2) partial vacancies with terms expiring December 31, 2027 and December 31, 2028.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:
1 Charter Section 1102: library.municode.com/ca/modesto/codes/code_of_ordinances #2..
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City Council, May 12, 2026
Two Appointments to the Citizens’ Housing and Community Development Committee

Resolution approving the appointments of Shammy Karim with a partial term ending December 31, 2027 and Christian Simon with a partial term ending December 31, 2028 to the City of Modesto Citizens’ Housing and Community Development Committee.

Approved by:

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

1. Resolution

2. Shammy Karim and Christian Simon Applications

3. Citizens’ Housing and Community Development Committee Bylaws #2..
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05/12/2026/CED/EGarcia/Item XX 1 2026-

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-

RESOLUTION APPROVING THE APPOINTMENTS OF SHAMMY KARIM
WITH A PARTIAL TERM ENDING DECMBER 31, 2027 AND CHRISTIAN SIMON WITH A PARTIAL TERM ENDING DECEMBER 31, 2028 TO THE CITY OF MODESTO CITIZEN’S HOUSING AND COMMUNITY DEVELOPMENT

COMMITTEE
WHEREAS, Section 1102 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions; and WHEREAS, Citizens’ Housing and Community Development Committee member Larry Sanders resigned on March 19, 2025; and
WHEREAS, Citizens’ Housing and Community Development Committee member David Barber resigned on August 25, 2025; and
WHEREAS, two vacancies currently exist on the Citizens’ Housing and Community Development Committee; and
WHEREAS, a total of three applications were received; and WHEREAS, the Appointments Committee met on March 4, 2026, reviewed the applications, and recommended the appointments of Shammy Karim, and Christian Simon to the Citizens’ Housing and Community Development Committee.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the appointment of Shammy Karim as a Citizens At-Large to the City of Modesto Citizens’ Housing and Community Development Committee with a partial term expiring December 31, 2027.

BE IT FURTHER RESOLVED, by the Council of the City of Modesto that it hereby approves the appointment of Christian Simon as a Citizen-At-Large to the #2..
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05/12/2026/CED/EGarcia/Item XX 2 2026-
City of Modesto Citizens’ Housing and Community Development Committee with a partial term expiring December 31, 2028.

BE IT FURTHER RESOLVED, the City Clerk is hereby directed to transmit a copy of this resolution to the appointed members of the Citizens’ Housing and Community Development Committee, and the Secretary thereof.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th of May, 2026 by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember      , was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

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

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#2..
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Boards, Commissions and Committees Application
10/26/2025 4:31 PM (PDT)
Advisory Boards and Commissions Application
City of Modesto
Title II Compliance
In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website.

Which Board, Committee or
Commission are you expressing
interest in?
Citizens Housing Community Development Committee
The Citizens Housing and Community Development Committee provides overall review of the City's Housing and Urban Development (HUD) funds. The committee makes funding recommendations to the Modesto City Council regarding the HUD Community Development Block Grant, Emergency Shelter Grant, and Home Investment Partnership Grant programs.

Please note that application for this committee requires a financial disclosure statement (Statement of Economic Interests - Form 700) under State of California laws.

Membership Requirements: The Citizens’ Housing & Community Development Committee shall consist of eleven (11) qualified persons.

Read full ByLaws, membership requirements and view current members and vacancies.

What vacancy are you interested
in?
Citizen at large
Are you currently serving on this
board?
No
Have you ever served on this
board?
No
Have you previously served or are
you currently serving on a Board,
Committee or Commission for the
City Modesto?
No
Submission ID: bc11afc6-ae01-47f7-b94d-160c3e2e769a Page 1/6 #2..
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Applicant Information & Background
First Name Christian
Last Name Simon
Phone Number
Email Address
Occupation Attorney
Your Address
City
State
Zip
Education BA English University of San Francisco
JD Santa Clara University
Document Uploads
You may upload a cover letter and resume to outline your educational, work and community service experiences.

Submission ID: bc11afc6-ae01-47f7-b94d-160c3e2e769a Page 2/6 #2..
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Applicant Demographics
City of Modesto invites all applicants to voluntarily self-identify their gender, race/ethnicity, veteran status and disability. Submission of this information is voluntary and refusal to provide will not affect the application process. The information will be kept confidential and will only be used in accordance with the provisions of applicable laws, executive orders and regulations, including those that require the information to be summarized and reported to the federal government for civil rights enforcement.

Gender
Ethnicity
Are you currently, or have you
ever, served in the Armed
Forces?
Do you consider yourself
disabled?
Submission ID: bc11afc6-ae01-47f7-b94d-160c3e2e769a Page 3/6 #2..
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Qualifications
List relevant employment,
training, and experience,
certificates of training, licenses,
and professional registration.

I currently serve as in-house counsel for a healthcare organization, where I focus on regulatory compliance and program oversight. Previously, I practiced law at a local firm with experience in real estate transactions (California Bar License No. 323238). I also served as an Officer (O-2) in the United States Navy Reserve.

Explain how you learned about
the board or commission you are
applying for
I learned about this opportunity through a LinkedIn posting.

Describe your involvement in
community activities and civic
organizations. (Do not list partisan
political parties.)
I am active in my local church. I’m now seeking to broaden my involvement in civic life and contribute to the City through meaningful public service.

What is it about this position that
interests you?
I have a genuine desire to assist the City and contribute meaningfully to our community. As a lifelong Modesto resident, I have a vested interest in ensuring local resources are used effectively to improve quality of life for our residents. I believe my professional background would allow me to contribute thoughtfully to the committee’s review and recommendations.

What qualities, experience, and
expertise would you bring to the
Board, Commission or
Committee?
I’m drawn to this position because it offers an opportunity for public service and the chance to help analyze issues affecting Modesto residents. I care about how public funds are used and I’d value the chance to help shape community development decisions.

Submission ID: bc11afc6-ae01-47f7-b94d-160c3e2e769a Page 4/6 #2..
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Questionnaire
How did you learn about the
board for which you are applying?
Other (Please specify)
Other (Please Specify) I believe Linkedin
Submission ID: bc11afc6-ae01-47f7-b94d-160c3e2e769a Page 5/6 #2..
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Signature Agreement
Signature
Date Applied 10/26/2025
Application Disclosure
Members of the City Advisory Groups must disclose financial interests, including investments, businesses, and rental properties. Members are required to file Statements of Economic Interest when they assume office, annually, and upon leaving office.

Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.

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

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

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

Have a great day!
Submission ID: bc11afc6-ae01-47f7-b94d-160c3e2e769a Page 6/6 #2..
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Boards, Commissions and Committees Application
11/20/2025 1:40 PM (PST)
Advisory Boards and Commissions Application
City of Modesto
Title II Compliance
In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website.

Which Board, Committee or
Commission are you expressing
interest in?
Citizens Housing Community Development Committee
The Citizens Housing and Community Development Committee provides overall review of the City's Housing and Urban Development (HUD) funds. The committee makes funding recommendations to the Modesto City Council regarding the HUD Community Development Block Grant, Emergency Shelter Grant, and Home Investment Partnership Grant programs.

Please note that application for this committee requires a financial disclosure statement (Statement of Economic Interests - Form 700) under State of California laws.

Membership Requirements: The Citizens’ Housing & Community Development Committee shall consist of eleven (11) qualified persons.

Read full ByLaws, membership requirements and view current members and vacancies.

Are you currently serving on this
board?
No
Have you ever served on this
board?
No
Have you previously served or are
you currently serving on a Board,
Committee or Commission for the
City Modesto?
No
Submission ID: 5571741b-a6dc-4a98-9f35-06cb2b27e5a5 Page 1/6 #2..
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November 20, 2025
City of Modesto
Citizen Housing Community Development Committee
1010 Tenth Street
Modesto, CA 95354
Dear Members of the Citizen Housing Community Development Committee, I am writing to introduce myself and express my interest in serving on the Citizen Housing Community Development Committee. As a Modesto resident, registered voter, and public-sector leader with extensive experience in community-focused initiatives, fiscal oversight, and public accountability, I am deeply committed to supporting work that strengthens equitable access to housing, services, and neighborhood development across our city.

I value the City of Modesto’s commitment to full compliance with Title II of the Americans with Disabilities Act (ADA), the Fair Employment and Housing Act (FEHA), the Rehabilitation Act of 1973, Government Code section 11135, and all related nondiscrimination requirements.

Ensuring accessible, inclusive, and equitable services for all residents, including individuals with disabilities, is fundamental to meaningful community development. Throughout my career, I have worked in systems that must adhere to similar legal and ethical standards, and I understand the importance of designing programs that serve diverse populations fairly and responsibly.

In my role as Executive Director of First 5 Stanislaus, I oversee countywide funding allocations, community partnerships, and program evaluations that directly impact local families. I manage multi-million-dollar public investments, review audits and performance data, and collaborate with government agencies, nonprofits, school districts, and health organizations to ensure that resources are used effectively and in alignment with community needs. My prior leadership roles in education, including Superintendent, Principal, and Assistant Director of Human Resources— have strengthened my experience in governance, compliance, community engagement, and public service.

I am passionate about supporting initiatives that improve quality of life, expand opportunity, and enhance access to essential services for all residents. Serving on the Citizen Housing Community Development Committee would allow me to contribute my skills, experience, and commitment to equitable public service in a meaningful and impactful way.

Thank you for considering my application. I would be honored to support the City’s ongoing efforts to promote accessible, inclusive, and community-centered housing and development programs. I welcome the opportunity to contribute to this important work.

Sincerely,
Shammy Karim
#2..
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Shameram ‘Shammy’ Karim, Ed.D.

MEASURE H OVERSIGHT BOARD
Dedicated public-sector executive with extensive experience in community development, public administration, fiscal oversight, and cross-agency collaboration. Committed to promoting equitable access to city services, inclusive program design, and full adherence to federal and state nondiscrimination standards, including accessibility protections under ADA Title II, FEHA, the Rehabilitation Act, and related regulations. Brings a strong record of ethical governance, data-informed decision-making, and community-centered leadership supporting diverse populations across Modesto and Stanislaus County. Seeking to contribute skills, experience, and a commitment to fairness and accessibility as a member of the Citizen Housing and Community Development Committee.

KEY AREAS OF EXPERTISE
Budget Creation & Management Administrative & Staff Support Non-Profit Agencies Government Policies Ethical Decision Making Communication Laws & Regulations Contract Administration Governance & Compliance Data Interpretation Process Improvement
Organized / Confident / Analytical / Effective Communicator / Business Acumen

LEADERSHIP
✔ Cultivated strategic partnerships with organizational leaders through coaching and counseling that led to staff internal career advancement, professional development, and individual performance management. ✔ Designed and executed Employee Evaluation System consisting of tools and processes to uniquely measure staff performance.
✔ In collaboration with Santa Clara County Board of Supervisors, drove county-wide initiatives and managed $3.5M grant to provide support for food insecurity and basic needs products.

PROFESSIONAL EXPERIENCE
, Modesto, CA 2022-Present
Executive Director
Navigate HR activities related to employee relations, training/development, recruitment, hiring/termination, compensation, performance management, and benefits administration for an organization of 1550+ employees.

Direct team of 15, including benefits, wellness, substitute, and administrative services. ● Provide strategic leadership and oversight of countywide early childhood initiatives funded through Proposition 10, ensuring alignment with the First 5 mission to improve the health, development, and school readiness of children ages 0–5.
● Manage all agency operations including budgeting, fiscal oversight, contract administration, and compliance with state and county regulations.
● Oversight of public funds exceeding $5 million annually, ensuring compliance with state and local regulations. ● Oversee the development, implementation, and evaluation of strategic plans, annual budgets, long-range initiatives, and community impact goals.
● Direct preparation of financial reports, audits, performance metrics, and presentations for the Commission, County leadership, and external stakeholders.
● Build and maintain strong partnerships with government agencies, community-based organizations, health systems, school districts, and family-serving entities across Stanislaus County. ● Represent the agency publicly through presentations, community meetings, media interactions, and collaborative groups.
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● Lead organizational planning, staff development, and performance management to ensure high-quality program delivery and operational excellence.
● Ensure transparency, accountability, and the effective stewardship of public funds while promoting equity, family engagement, and data-informed decision-making.
● Experience reviewing and interpreting financial statements, audits, public budgets, and expenditure reports to ensure transparency and accountability.
● Provide policy guidance, legislative updates, and advocacy support on issues affecting early childhood development and family well-being.

SANTA CLARA OFFICE OF EDUCATION, Santa Clara, CA 2019-2022 Assistant Director, Human Resources & Employee Assistance Navigate HR activities related to employee relations, training/development, recruitment, hiring/termination, compensation, performance management, and benefits administration for an organization of 1550+ employees.

Direct team of 15, including benefits, wellness, substitute, and administrative services. ● Develop and implement policies and procedures.
● Collect and analyze data to support the organization’s mission, vision, goals, and initiatives. ● Prioritize and direct a broad range of Human Resources activities, including recruiting an on-boarding process for open positions, new hire orientations, and employee training and development programs. ● Plan, monitor, and implement people management strategies, and develop and implement policies and programs and ensure all policies comply with union contracts, and federal, state, and local regulations. ● Design training programs to train and instruct administrators on organizational protocols and procedures. ● Certified Gallup Strengths coach.

Performance Management
● Strengthen and promote effective and productive working relationships, and resolve misunderstandings by mediating conflicts, and addressing employee issues and disputes.

Manage sensitive situations related to performance and termination issues, grievances, and arbitration.

Counsel and assist employees with matters affecting job-related performance and personal well-being. ● Conduct and document employee investigations and interviews related to harassment, discrimination, and inappropriate behavior complaints.

LAKESIDE JOINT SCHOOL DISTRICT, Los Gatos, CA 2017-2019 Superintendent/Secretary to the School Board
Spearhead district in human resources, community outreach and partnerships, curriculum and instruction, special education, professional development, instructional and fiscal leadership, team building, parent engagement, and technology implementation. Oversaw daily operations, recruitment, and discipline of staffing at all levels. ● Worked with public and private entities to secure funding for the school district and its programs. ● Developed and implemented a multi-year budget.
● Developed agendas and conducted meetings with the Brown Act rules. ● Conducted investigations on staff and community complaints and grievances to ensure compliance with applicable regulations and laws.
● Led salary and contract negotiations with teachers’ union with an understanding of staff needs, bargaining between opposing parties, utilizing break-out sessions, and engaging all parties in the final decision-making. ● Assessed district staff by creating and implementing Employee Evaluation System and tool that measured various means and processes, using data to design methodology unique to school district staff.

Disciplined and dismissed staff utilizing district policies and applicable education codes. ● Headed recruitment and hiring process for all positions by structuring position job descriptions, listing job postings on www.edjoin.org/, and screened, interviewed, negotiated, hired, and trained staff for each position.

TRACY UNIFIED SCHOOL DISTRICT, Tracy, CA 2007-2017
Principal (Title I School) 2015-2017
Promotion Path: Teacher (2007-2013)
Oversaw operations of Transition Kindergarten to 5th grade school of 600 students, 25 teachers, and 30 staff members as Instructional leader.
#2..
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● Through community partnerships, supported students and families. ● Directed curriculum and assessment implementation in each classroom for general and special education. ● Developed an annual budget, created processes and procedures, and oversaw compliance of all laws and regulations.
● Established procedures, and planned, implemented, directed, and evaluated instructional and categorical programs.
● Led, trained, and supervised teachers and support staff, and conducted annual employee performance reviews. ● Designed curriculum based on collecting and drawing determinations from data.

JEFFERSON ELEMENTARY SCHOOL DISTRICT, Tracy, CA 2012-2015 Assistant Principal (Title I School)
Assisted with oversight of operating a Transition Kindergarten to 8th grade school of 950 students, 45 teachers, and 50 staff members.
● Developed an annual budget, created processes and procedures, and oversaw compliance of all laws and regulations.
● Established procedures, and planned, implemented, directed, and evaluated instructional and categorical programs.
● Led, trained, and supervised teachers and support staff, and conducted annual employee performance reviews. ● Designed curriculum based on collecting and drawing determinations from data.

EDUCATION
Doctor of Education (Ed. D), Organizational Leadership, Brandman University, Irvine, CA Master of Arts (MA), Special Education & Teaching, Chapman University, Orange, CA Master of Arts (MA), Education & Teaching, Chapman University, Orange, CA Bachelor of Arts (BA), Social Science, Chapman University, Orange, CA #2..
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Signature Agreement
Signature
Date Applied 11/21/2025
Application Disclosure
Members of the City Advisory Groups must disclose financial interests, including investments, businesses, and rental properties. Members are required to file Statements of Economic Interest when they assume office, annually, and upon leaving office.

Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.

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

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

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

Have a great day!
Submission ID: e3b20913-abd1-4307-9f37-1cb534418c52 Page 6/6 #2..
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Applicant Information & Background
First Name Dr. Shammy
Last Name Karim
Phone Number
Email Address
Your Address
City
State
Zip
Document Uploads
You may upload a cover letter and resume to outline your educational, work and community service experiences.

Cover Letter Citizens Housing Community Development Letter of Introduction.pdf Resume Shammy Karim Resume - Housing.pdf
Submission ID: 5571741b-a6dc-4a98-9f35-06cb2b27e5a5 Page 2/6 #2..
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Applicant Demographics
City of Modesto invites all applicants to voluntarily self-identify their gender, race/ethnicity, veteran status and disability. Submission of this information is voluntary and refusal to provide will not affect the application process. The information will be kept confidential and will only be used in accordance with the provisions of applicable laws, executive orders and regulations, including those that require the information to be summarized and reported to the federal government for civil rights enforcement.

Gender
Are you currently, or have you
ever, served in the Armed
Forces?
Do you consider yourself
disabled?
Submission ID: 5571741b-a6dc-4a98-9f35-06cb2b27e5a5 Page 3/6 #2..
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Qualifications
Describe your involvement in
community activities and civic
organizations. (Do not list partisan
political parties.)
Grace Academy Christian Preschool, Local Planning Council, Safe Kids Stanislaus
What is it about this position that
interests you?
This position interests me because I am deeply committed to supporting equitable, accessible, and community-centered development in the City of Modesto. Throughout my career in public service, I have worked closely with families, community organizations, government agencies, and local partners to strengthen programs that improve quality of life and expand opportunities for underserved populations. The Citizen Housing and Community Development Committee plays an important role in shaping how the City invests resources, addresses housing needs, and ensures that services remain inclusive and accessible to all residents—including individuals protected under Title II of the ADA, FEHA, the Rehabilitation Act, and related nondiscrimination laws.

My professional experience in fiscal oversight, program evaluation, community engagement, and governance aligns strongly with the committee’s mission. I value the City’s commitment to fairness, transparency, and accessibility, and I am motivated to contribute to decisions that support responsible use of public funds, responsive community programs, and equitable housing and development initiatives. Serving on this committee would allow me to apply my expertise in a meaningful way while giving back to the community I live in and care deeply about.

What qualities, experience, and
expertise would you bring to the
Board, Commission or
Committee?
I bring a strong combination of leadership, fiscal accountability, and communitycentered experience that aligns closely with the goals of the Citizen Housing and Community Development Committee. Throughout my career as an Executive Director, Superintendent, and public-sector administrator, I have overseen multimillion-dollar budgets, reviewed audits, ensured compliance with federal and state regulations, and led cross-agency initiatives designed to improve services for diverse communities. These experiences have strengthened my ability to analyze data, interpret complex reports, and make balanced, transparent decisions.

I also bring excellent communication and collaboration skills, developed through years of working with community organizations, government agencies, school districts, and service providers. My work requires fairness, ethical decisionmaking, and a strong commitment to transparency—qualities essential to supporting equitable housing, community development, and accessible city programs.

In addition, I value and uphold nondiscrimination principles, including accessibility protections under Title II of the ADA, FEHA, the Rehabilitation Act, and Government Code section 11135. I strive to ensure that programs and services are inclusive, equitable, and designed to meet the needs of all residents.

Overall, I bring integrity, analytical strength, collaborative leadership, and a deep commitment to serving the Modesto community.

Submission ID: 5571741b-a6dc-4a98-9f35-06cb2b27e5a5 Page 4/6 #2..
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Signature Agreement
Signature
Date Applied 11/19/2025
Application Disclosure
Members of the City Advisory Groups must disclose financial interests, including investments, businesses, and rental properties. Members are required to file Statements of Economic Interest when they assume office, annually, and upon leaving office.

Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.

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

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

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

Have a great day!
Submission ID: 5571741b-a6dc-4a98-9f35-06cb2b27e5a5 Page 6/6 #2..
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CH & CDC Bylaws Page 1 of 6 Amended: January 14, 2025
Resolution No. 2025-23

CITIZENS' HOUSING & COMMUNITY DEVELOPMENT COMMITTEE
BYLAWS
(Amended by Resolution 2025-23)
Article I. Definitions
Section 1.01 There is a Committee created to be known and designed as the Citizens’ Housing and Community Development Committee.

Section 1.02 As used in these Bylaws, unless a different meaning clearly appears from the context:
(a) “Member” shall mean a member of the Citizen’s Housing & Community Development Committee.
(b) “Citizens’ Housing & Community Development Committee” and “Committee” shall mean the Citizens’ Housing & Community Development Committee.

Article II. Objectives
Section 2.01 The Committee shall be responsible for providing overall review of the City of Modesto’s (City) housing and homelessness initiatives and making policy and funding recommendations which may include Community Development Block Grant (CDBG), Emergency Solution Grant (ESG), HOME Investment Partnerships (HOME), and other local, State, and Federal funded programs to the City Council.

Article III. Membership
Section 3.01 The Citizens’ Housing & Community Development Committee shall consist of eleven (11) qualified persons and one (1) alternate Councilmember, who may serve in place of any standing member in the event there is an absence or vacancy. The Committee should be comprised of the following:

Seat Designation Term
Councilmember (appointed by the Mayor) 4 years
Councilmember (appointed by the Mayor) 4 years
Councilmember (alternate) 4 years
Housing Rehabilitation Loan Committee Representative Annually #2..
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CH & CDC Bylaws Page 2 of 6 Amended: January 14, 2025
Resolution No. 2025-23
City Planning Commission Representative Annually
Human Relations Commission Representative Annually
Citizen-at-Large 4 years
Citizen-at-Large 4 years
Citizen-at-Large 4 years
Citizen-at-Large 4 years
Citizen-at-Large 4 years
Citizen-at-Large 4 years
Section 3.02 The Members of the Committee shall reside within the City limits of the City at the time of appointment and must maintain residence within the City at all times during their service on the Committee.

Section 3.03 No Member of the Committee shall be an employee of the City, nor any bargaining unit for employees of the City, nor a person who receives compensation from the City.

Section 3.04 All appointments shall be made by the City’s Appointments Committee.

Section 3.05 No Member of the Committee shall be a relative, by blood, marriage, within the third degrees of the Mayor, Councilmember, Charter Officer, or any department director or deputy department director.

Section 3.06 One Member of the Committee shall be appointed as an alternate to the Housing Rehabilitation Loan Committee by the Committee Chairperson.

Section 3.07 All Members must complete a Statement of Economic Interest (Form 700) by April 1 of each year and when assuming or leaving Committee membership.

Article IV. Terms of Office
Section 4.01 Members may serve no more than two (2) consecutive terms.

Section 4.02 Full terms are four (4) years in duration.

Section 4.03 A partial term of two (2) or more years shall be considered a full term for purposes of Section 4.01.

Section 4.04 Full term appointments begin on January 1 and expire on December 31 four (4) years subsequent.
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CH & CDC Bylaws Page 3 of 6 Amended: January 14, 2025
Resolution No. 2025-23
Section 4.05 Members may be reappointed after their initial term. Members serving two (2) consecutive terms may be reappointed after a break in service of twelve (12) months.

Section 4.06 The Members of the Committee shall receive no compensation for the performance of their official duties.

Section 4.07 Appointments to fill vacancies on the Committee shall be handled in the same manner as original appointments. When a vacancy occurs during a term, the appointment to full such vacancy shall be for the unexpired portion of the term.

Section 4.08 Members of the Committee may be removed by a majority vote of the City Council after a recommendation by the Committee Chairperson for the following reasons:
(a) Misconduct, inefficiency, or willful neglect in the performance of their duties providing the member is first provided in writing the reasons for such removal and gives the member the opportunity to be heard before the City Council in their own defense.
(b) Refusal to resign from the Committee when no longer a resident of the City or when a conflict of interest exists.
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CH & CDC Bylaws Page 4 of 6 Amended: January 14, 2025
Resolution No. 2025-23
(c) Failure to attend Committee meetings in accordance with Article V of these Bylaws.

Article V. Attendance at Meetings
Section 5.01 It shall be the responsibility of each Member to know the dates and times of all Committee meetings. If a Member knows he or she will not be able to attend a regularly scheduled meeting, it shall be his or her responsibility to notify the Committee Secretary at least forty-eight (48) hours before the meeting, in order for the absence to be recorded as an excused absence. Failure to provide notice of an absence under this Article shall constitute an unexcused absence.

Section 5.02 The minutes of each meeting will list those Members in attendance, those who are excused and those who are unexcused.

Section 5.03 Attendance at meetings is expected and necessary to carry out the mission of the Committee. Three or more consecutive unexcused absences are grounds for removal from the Committee by the City Council.

Section 5.04 The process for recording excused and unexcused absences shall be consistent with Citywide policies and procedures, including the Board and Commission Liaison Handbook.

Article VI. Officers and Their Duties
Section 6.01 Officers shall consist of a Chairperson and a Vice-chairperson, elected by a majority vote of the members of the Committee. Officers shall serve a four-year term.

Section 6.02 All officers shall exercise all privileges of membership, including the making of motions, seconding and debate.

Section 6.03 The Chairperson shall preside at all meetings, shall appoint all ad-hoc committees, and shall ensure that the bylaws, rules and regulations as adopted by the Committee are properly enforced
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CH & CDC Bylaws Page 5 of 6 Amended: January 14, 2025
Resolution No. 2025-23
Section 6.04 The Vice-chairperson shall assist the Chairperson in his/her duties and in the absence of the Chairperson shall perform all duties usually performed by the Chairperson.

Section 6.05 The Committee Secretary shall be a City staff member, appointed by the Community & Economic Development Department, to serve as secretary to the Committee. The Committee Secretary shall keep a record of the minutes of all Committee meetings and such other duties as are usually performed by a secretary.

Article VII. Meetings
Section 7.01 Special meetings shall be called by the Chairperson as necessary.

Section 7.02 Notices of all meetings, including agendas, shall be given to all Members of the Committee, to the City Clerk, to the City Manager, and to all others as provided by law. All such notices shall be furnished to the Committee in writing at least seventy-two (72) hours prior to the time of such meeting.

Section 7.03 All meeting agendas will be posted at Tenth Street Place.

Section 7.04 All meetings shall comply with the requirements of the Ralph M. Brown Act.

Section 7.05 A quorum is necessary for the Committee to transact any business. A quorum shall be defined as a simple majority of the total number of Committee members which is one-half of the Committee members plus one. Vacant seats on the Committee shall not be factored into calculating the number of members needed for a quorum.

Section 7.06 All meetings of the Committee shall be open to the public and shall be held at a public facility, which is accessible in accordance with the regulations of the Americans with Disabilities Act.
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CH & CDC Bylaws Page 6 of 6 Amended: January 14, 2025
Resolution No. 2025-23
Article VIII. Order of Proceedings
Section 8.01 Section 2-1.10 “Procedural Rules for Council Meetings” of Title 2 “Administration,” of Chapter 1 “City Council Organization and Procedure” of the Modesto Municipal Code shall be the guide for parliamentary procedures in the conduct of Committee meetings.

Section 8.02 The order of proceedings of all meetings shall be as follows, subject to majority vote of the members present:
(a) Roll Call
(b) Conflict of Interest Declaration
(c) Public Comment Period
(d) Consent Items
(e) Old Business
(f) New Business
(g) Committee Comments & Reports
(h) Matters Too Late For the Agenda
(i) Adjournment
Section 8.03 Members of the public shall not speak unless recognized by the Chairperson and may state their names before making any statement, which shall become a part of the public record. The Chairperson may remove any person who refuses to follow time limits set for public comment, or other rules or decisions of the Chairperson.

Article IX. Amendments
Section 9.01 The Bylaws and any future amendments shall be subject to the final approval of the City Council and shall not and are not intended to go beyond any of the powers and duties given to the Committee by the City Council. #2..
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5/5/2026 5:30:00 PM

MODESTO CITY COUNCIL
www.modestogov.com

MINUTES
City of Modesto

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, May 05, 2026 at 5:30 PM
Special City Council – Closed Session Meeting 4:45 p.m.

Roll Call: Present: Councilmembers Alvarez, Bavaro, Ricci, Williams, Wright, Mayor Zwahlen

Absent: Escutia-Braaton
Regular City Council Meeting 5:30 p.m.

Roll Call: Present: Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen

Absent: Escutia-Braaton,
Pledge of Allegiance to the Flag
Invocation: Lance Lowell, Neighborhood Church
City Clerk’s Announcements: Item 16, the item pertaining to the car wash at 1600 and 1604 Kansas Avenue has been removed from the tonight's agenda and will not be heard or discussed at this meeting. Any future consideration will be separately noticed.

Declaration of Conflicts of Interest: None.

Reports from Closed Session: No reportable action.

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Proclamation declaring May 3rd-9th 2026 as National Public Service Recognition week. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] #3..
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ACTION: Mayor Zwahlen presented proclamation declaring May 3rd-9th 2026 as National Public Service Recognition week.

2. Proclamation declaring May 2026 as National Older Americans Month. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] ACTION: Mayor Zwahlen presented proclamation declaring May 2026 as National Older Americans Month.

Council Member Ricci left meeting at 5:47 p.m.

3. Proclamation declaring May 2026 as National Stroke Awareness Month. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] ACTION: Mayor Zwahlen presented proclamation declaring May 2026 as National Stroke Awareness Month.

PUBLIC COMMENT PERIOD
• Todd Aaronson, CEO of Visit Modesto, highlighted tourism as a major economic driver during California Tourism Month, noting that statewide travel spending reached nearly $159 billion in 2025 and generated significant tax revenue. Locally, Modesto has seen increases in tourism spending, business earnings, jobs, and visitor-generated taxes since 2019, which help fund public services. He also emphasized improved media recognition for the city and a strong return on investment from tourism promotion, while acknowledging the contributions of local workers and businesses. • Bryan Evitt raised several concerns, beginning with a suggestion that the planned $128 million overpass project should include extending a nearby road to improve traffic flow and reduce congestion. He then described a personal experience involving his father’s medical care, expressing concerns about hospital practices and patient access. He also called for better support systems for seniors, particularly in navigating legal and financial matters, and proposed alternative approaches to homelessness, including more cost-effective housing solutions and increased outreach to connect individuals with available resources.
• Edson Mezquita raised concerns about conditions along the Dry Creek Trail, noting safety issues with fast-moving e-bikes and a recent collision. He also reported ongoing graffiti that has not been addressed despite notifying the Parks and Recreation Department and expressed concern about trees being cut down without replacement.

Additionally, he suggested that tree stumps in both the trail area and a nearby park should be removed and replaced with new trees to maintain safety and environmental quality.
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• Milt Trieweiler criticized a recent Council decision to allow development on local farmland, arguing that it threatens some of the most valuable agricultural land and could lead to long-term negative consequences. He emphasized that such land is scarce globally and essential for future food production, and warned that residential growth may increase costs, pollution, and congestion without benefiting most residents. He also expressed concern about outside development interests influencing decisions and urged the Council to consider the impact on future generations. • A speaker stated they were motivated by religious conviction to address the Council and urged people to change their behavior. He expressed distress over being stalked for many years and said he felt his concerns had not been taken seriously. He also described being a survivor of abuse without receiving justice, mentioned recent incidents involving being hit by cars, and conveyed frustration with how he has been treated and perceived by others.
• Patrick Tanaka, a student from Stanislaus State, asked how Modesto and surrounding cities could better accommodate college students. He expressed that many students feel there are limited activities and opportunities, leading them to leave the area after graduation or during breaks. He suggested the region feels more oriented toward established or older residents and encouraged the city to consider ways to make it more engaging and appealing for students to stay long-term.
• Kevin McClarty expressed concern that a recent Council decision regarding the Wood Colony area effectively represents an initial step toward its future annexation. He argued that, regardless of how the decision is framed, it opens the door to gradual development that could ultimately transform the agricultural community into residential and commercial uses. He emphasized that Wood Colony has long been sustained by farming families rather than short-term investors and warned that incremental decisions could lead to the loss of what he described as a unique and valuable part of the region.
• Jerry Thompson provided an update on a collaborative project between Modesto High and MJC students to restore a lowrider police car. He reported that the car has been painted and students are now reassembling it while learning finishing techniques. The project is expected to be completed soon and returned to the Modesto Police Department before June. Thompson noted that the program has helped students develop practical skills and has encouraged some to pursue further education.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS: 4-12, 14-15 (Alvarez/Wright; 5/0)

CONSENT
Consent

4. Consider approving the Minutes for the April 28, 2026 Council Meeting. (Funding Source: Not Applicable)
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• Motion approving the Minutes for the April 28, 2026 Council Meeting.

CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Alvarez/Wright; 5/0) Motion approving the Minutes for the April 28, 2026 Council Meeting.

Consent

5. Consider approving the Plans and Specifications for the Coffee Road Pavement Rehabilitation Phase II Project, accepting the Bid and Awarding a Contract to United Pavement Maintenance, Inc., of Hughson, CA, for a total amount not to exceed $3,057,484. (Funding Source: Measure L Funds)
• Resolution approving the Plans and Specifications for the Coffee Road Pavement Rehabilitation Phase II Project, accepting the Bid and Awarding a Contract to United Pavement Maintenance, Inc., of Hughson, CA, in the amount of $3,057,484, and authorizing Change Orders up to a cumulative amount of $305,749, for a total Agreement amount not to exceed $3,363,233, and authorizing the City Manager, or his designee, to execute the Contract.

ENGINEERING SERVICES; Michael Sacuskie, 209-571-5552,
[email protected]
ACTION: (Alvarez/Wright; 5/0) Resolution 2026-127 approving the Plans and Specifications for the Coffee Road Pavement Rehabilitation Phase II Project, accepting the Bid and Awarding a Contract to United Pavement Maintenance, Inc., of Hughson, CA, in the amount of $3,057,484, and authorizing Change Orders up to a cumulative amount of $305,749, for a total Agreement amount not to exceed $3,363,233, and authorizing the City Manager, or his designee, to execute the Contract.

Consent

6. Consider accepting the Tuolumne River Regional Park (TRRP) Picnic Area B Renovation Project as complete, releasing securities, releasing payments totaling $373,173 to Sinclair General Engineering Construction, Inc. of Oakdale, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Various Funds)
• Resolution accepting Tuolumne River Regional Park (TRRP) Picnic Area B Renovation Project as complete, releasing securities, releasing payments totaling $373,173 to Sinclair General Engineering Construction, Inc. of Oakdale, CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] ACTION: (Alvarez/Wright; 5/0) Resolution 2026-128 accepting Tuolumne River Regional Park (TRRP) Picnic Area B Renovation Project as complete, releasing securities, releasing payments totaling $373,173 to Sinclair General Engineering Construction, Inc. of Oakdale, CA, and authorizing the City Clerk to file a Notice of Completion.

Consent
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7. Consider accepting the Bret Harte Neighborhood Strengthen & Replace Water Mains Phase 1B Project as complete, releasing securities, releasing payments totaling $1,966,083 to Mid Cal Pipeline & Utilities, Inc., of Merced, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Water Fund) • Resolution accepting the Bret Harte Neighborhood Strengthen & Replace Water Mains Phase 1B Project as complete, releasing securities, releasing payments totaling $1,966,083 to Mid Cal Pipeline & Utilities, Inc., of Merced, CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] ACTION: (Alvarez/Wright; 5/0) Resolution 2026-129 accepting the Bret Harte Neighborhood Strengthen & Replace Water Mains Phase 1B Project as complete, releasing securities, releasing payments totaling $1,966,083 to Mid Cal Pipeline & Utilities, Inc., of Merced, CA, and authorizing the City Clerk to file a Notice of Completion.

Consent

8. Consider accepting the J.M. Pike Park Stormwater to Sanitary Sewer Cross Connection Removal and Water Main Project as complete, releasing securities, releasing payments totaling $33,768,501 to Mozingo Construction, Inc. of Oakdale, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Wastewater and Water Funds)
• Resolution accepting the J.M. Pike Park Stormwater to Sanitary Sewer Cross Connection Removal and Water Main Project as complete, releasing securities, releasing payments totaling $33,768,501 to Mozingo Construction, Inc. of Oakdale, CA, and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] ACTION: (Alvarez/Wright; 5/0) Resolution 2026-130 accepting the J.M. Pike Park Stormwater to Sanitary Sewer Cross Connection Removal and Water Main Project as complete, releasing securities, releasing payments totaling $33,768,501 to Mozingo Construction, Inc. of Oakdale, CA, and authorizing the City Clerk to file a Notice of Completion.

Consent

9. Consider approving three On-Call Consultant Agreements for Materials Testing and Special Inspection Services with Krazan & Associates, Inc. of Fresno, CA; BSK Associates, of Fresno, CA; and Terracon Consultants, Inc., of Sacramento, CA, for a total amount not to exceed $497,500 over five years per consultant. (Funding Source:

Various Capital Improvement Program Projects)
• Resolution approving On-Call Consultant Agreement for Materials Testing and Special Inspection Services with Krazan & Associates, Inc. of Fresno, CA; for a three year agreement with two one-year extension options, for an estimated annual amount not to exceed $99,500, and a total amount not to exceed $497,500 over five years, and authorizing the City Manager or his designee to execute the agreement.
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• Resolution approving On-Call Consultant Agreement for Materials Testing and Special Inspection Services with BSK Associates, of Fresno, CA; for a threeyear agreement with two one-year extension options, for an estimated annual amount not to exceed $99,500, and a total amount not to exceed $497,500 over five years and authorizing the City Manager or his designee to execute the agreement.
• Resolution approving On-Call Consultant Agreement for Materials Testing and Special Inspection Services with Terracon Consultants, Inc., of Sacramento, CA, for a three-year agreement with two one-year extension options, for an estimated annual amount not to exceed $99,500, and a total amount not to exceed $497,500 over five years and authorizing the City Manager or his designee to execute the agreement.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] ACTION: (Alvarez/Wright; 5/0) Resolution 2026-131 approving On-Call Consultant Agreement for Materials Testing and Special Inspection Services with Krazan & Associates, Inc. of Fresno, CA; for a three year agreement with two one-year extension options, for an estimated annual amount not to exceed $99,500, and a total amount not to exceed $497,500 over five years, and authorizing the City Manager or his designee to execute the agreement.

ACTION: (Alvarez/Wright; 5/0) Resolution 2026-132 approving On-Call Consultant Agreement for Materials Testing and Special Inspection Services with BSK Associates, of Fresno, CA; for a three-year agreement with two one-year extension options, for an estimated annual amount not to exceed $99,500, and a total amount not to exceed $497,500 over five years and authorizing the City Manager or his designee to execute the agreement.

ACTION: (Alvarez/Wright; 5/0) Resolution 2026-133 approving On-Call Consultant Agreement for Materials Testing and Special Inspection Services with Terracon Consultants, Inc., of Sacramento, CA, for a three-year agreement with two one-year extension options, for an estimated annual amount not to exceed $99,500, and a total amount not to exceed $497,500 over five years and authorizing the City Manager or his designee to execute the agreement.

Consent

10. Consider accepting the Monthly Investment Report for February 2026. (Funding Source: Various Funds)
• Motion accepting the Monthly Investment Report for February 2026.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
ACTION: (Alvarez/Wright; 5/0) Motion accepting the Monthly Investment Report for February 2026.

Consent
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11. Consider accepting an Informational Report for the March 2026 Accounts Payable Payment Register and Void Report. (Funding Source: Not Applicable) • Motion accepting an Informational Report for the March 2026 Accounts Payable Payment Register and Void Report.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Alvarez/Wright; 5/0) Motion accepting an Informational Report for the March 2026 Accounts Payable Payment Register and Void Report.

Consent

12. Consider approving the Agreements for On-Call Board-up and Clean-up of Unsafe Properties to L.S. Construction and Design, Inc., Los Banos, CA, and Garcia Septic & Construction, Inc., Modesto, CA, for a total combined amount not to exceed $180,000 over three years. (Funding Source: Abatement and Public Nuisance Fund) • Resolution approving the Award of Bid and Agreements for On-Call Board-up and Clean-up of Unsafe Properties Services to L.S. Construction and Design, Inc., Los Banos, CA, and Garcia Septic & Construction, Inc., Modesto, CA, for a one year Agreement with two one-year extension options, for an estimated annual combined amount of $60,000 and a total combined amount not to exceed $180,000 over 3 years, and authorizing the Director of Finance to adjust Agreement totals between vendors based on contractor’s availability and department’s needs, ensuring the combined total does not change; and authorizing the City Manager, or his designee, to execute the Agreements.

POLICE DEPARTMENT; TJ Moffett, 209-572-9886, [email protected] ACTION: (Alvarez/Wright; 5/0) Resolution 2026-134 approving the Award of Bid and Agreements for On-Call Board-up and Clean-up of Unsafe Properties Services to L.S. Construction and Design, Inc., Los Banos, CA, and Garcia Septic & Construction, Inc., Modesto, CA, for a one year Agreement with two one-year extension options, for an estimated annual combined amount of $60,000 and a total combined amount not to exceed $180,000 over 3 years, and authorizing the Director of Finance to adjust Agreement totals between vendors based on contractor’s availability and department’s needs, ensuring the combined total does not change; and authorizing the City Manager, or his designee, to execute the Agreements.

Removed from Consent

13. Consider accepting the Modesto Police Department’s annual Military Equipment report, approving an Ordinance re-authorizing the department’s Military Equipment Use Policy (Policy 710) and authorizing purchasing additional equipment that qualifies as “military equipment” in Fiscal Year 2026-2027. (Funding Source: Various Funds) • Motion introducing and waiving the first reading of an Ordinance approving the Modesto Police Department’s Military Equipment Use Policy (Policy 710) in accordance with CA Assembly Bill 481, and approving the purchase of additional equipment that qualifies as “military equipment,” in Fiscal Year 2026-2027 and rescinding Ordinance No. 3794-C.S.
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• Motion accepting the Modesto Police Department’s annual Military Equipment Report.

POLICE DEPARTMENT; Joseph Bottoms, 209-572-9500, [email protected] ACTION: (Wright/Alvarez; 5/0) Motion introducing and waiving the first reading of an Ordinance 3813-C.S. approving the Modesto Police Department’s Military Equipment Use Policy (Policy 710) in accordance with CA Assembly Bill 481, and approving the purchase of additional equipment that qualifies as “military equipment,” in Fiscal Year 2026-2027 and rescinding Ordinance No. 3794-C.S.

ACTION: (Wright/Alvarez; 5/0) Motion accepting the Modesto Police Department’s annual Military Equipment Report.

Consent

14. Consider approving the Plans and Specifications for the Septic to Sewer Construction Project: County Area 07 – Spencer/Marshall Neighborhood, accepting the Bid and Awarding a Construction Contract to Frontline General Engineering Construction, Inc., of Tracy, CA in the amount of $1,739,773 and authorizing 15% in contingency (if needed), for a total payment amount not to exceed $2,000,739. (Funding Source:

Wastewater Fund)
• Resolution approving the Plans and Specifications for the Septic to Sewer Construction Project: County Area 07 – Spencer /Marshall Neighborhood, accepting the Bid and Awarding a Construction Contract to Frontline General Engineering Construction, Inc., of Tracy, CA in the amount of $1,739,773, authorizing the Director of Engineering Services to approve Change Orders up to the cumulative amount of $260,966, 15% of the original Contract price, for a total payment amount not to exceed $2,000,739 and authorizing the City Manager, or his designee, to execute the Contract.
• Resolution approving a Construction Management and Inspection Services Agreement with TRC Engineers, Inc., of Rancho Cordova, CA for the Septic to Sewer Construction Project: County Area 07 – Spencer /Marshall Neighborhood in the amount of $302,455, plus $30,245 in Additional Services, if needed, for an Agreement total amount not to exceed $332,700 and authorizing the City Manager, or his designee, to execute the Agreement. • Resolution amending the Fiscal Year 2025-26 Capital Improvement Program Budget in the amount of $375,000 to be transferred into the Project from Wastewater Fund Reserves to fund the Septic to Sewer Construction Project:

County Area 07 – Spencer /Marshall Neighborhood and Authorizing the City Manager, or his designee, to implement the provision of the Resolution.

UTILITIES; Miguel Alvarez, 209-577-5348, [email protected] ACTION: (Alvarez/Wright; 5/0) Resolution 2026-135 approving the Plans and Specifications for the Septic to Sewer Construction Project: County Area 07 – Spencer /Marshall Neighborhood, accepting the Bid and Awarding a Construction Contract to Frontline General Engineering Construction, Inc., of Tracy, CA in the amount of $1,739,773, authorizing the Director of Engineering Services to approve Change #3..
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Orders up to the cumulative amount of $260,966, 15% of the original Contract price, for a total payment amount not to exceed $2,000,739 and authorizing the City Manager, or his designee, to execute the Contract.

ACTION: (Alvarez/Wright; 5/0) Resolution 2026-136 approving a Construction Management and Inspection Services Agreement with TRC Engineers, Inc., of Rancho Cordova, CA for the Septic to Sewer Construction Project: County Area 07 – Spencer /Marshall Neighborhood in the amount of $302,455, plus $30,245 in Additional Services, if needed, for an Agreement total amount not to exceed $332,700 and authorizing the City Manager, or his designee, to execute the Agreement.

ACTION: (Alvarez/Wright; 5/0) Resolution 2026-137 amending the Fiscal Year 2025-26 Capital Improvement Program Budget in the amount of $375,000 to be transferred into the Project from Wastewater Fund Reserves to fund the Septic to Sewer Construction Project: County Area 07 – Spencer /Marshall Neighborhood and Authorizing the City Manager, or his designee, to implement the provision of the Resolution.

Consent

15. Consider approving an Agreement for the purchase and installation of granular activated carbon to Calgon Carbon Corporation, Moon Township, PA, for a total amount not to exceed $3,205,360 over five years. (Funding Source: Water Fund and PCE Mitigation Fund)
• Resolution approving an Agreement with Calgon Carbon Corporation, Moon Township, PA, by utilizing the Competitive Bid Process with the City of Tulare, for a two year Agreement with three one-year extension options, for an estimated annual amount of $600,000 and a total amount not to exceed $3,205,360 over five years; and authorizing the City Manager, or his designee, to execute the Agreement.

UTILITIES; Manuel Martinez, 209-342-4592, [email protected] ACTION: (Alvarez/Wright; 5/0) Resolution 2026-138 approving an Agreement with Calgon Carbon Corporation, Moon Township, PA, by utilizing the Competitive Bid Process with the City of Tulare, for a two year Agreement with three one-year extension options, for an estimated annual amount of $600,000 and a total amount not to exceed $3,205,360 over five years; and authorizing the City Manager, or his designee, to execute the Agreement.

COUNCIL COMMENTS & REPORTS
• Councilmember Wright shared that he and the Mayor attended a ceremony at the Sylvan Post Office honoring a local service member who was killed in the Iraq War in 2004. The Post Office was officially dedicated in Corporal Michael Anderson Jr.'s name following approval by local, state, and federal authorities, including the President. Wright described the event as solemn and meaningful, with remarks from the service member’s commanding officer highlighting his bravery and sacrifice. #3..
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• Vice Mayor Williams expressed appreciation for a recent Post Office dedication honoring a local service member and noted his conversation with the family. He also highlighted several community events, including a garden tour, Earth Day activities, a NAACP graduation ceremony, and the Cinco de Mayo parade, praising local organizations and participants for their contributions. He acknowledged recent community losses, mentioning two prominent local figures who had passed away, and requested a moment of silence in their honor.
• Councilmember Alvarez honored Corporal Michael Anderson Jr. and acknowledged the dedication of a Post Office in his name, noting a personal connection to his family through previous professional work. He also referenced a recent Cinco de Mayo parade in South Modesto, describing it as a well-attended community event supported by multiple local officials and regional participation, and thanked organizers for their continued efforts.
• Mayor Zwahlen reported on their role as an ex-officio member of the San Joaquin Regional Rail Commission, noting a recent meeting where a 10% fare increase for ACE service was approved after public outreach and no opposition during public comment. She also attended the Stanislaus Disaster Council meeting, which included updates from local emergency response agencies. Additionally, she reflected on attending the dedication honoring Corporal Michael Anderson Jr., describing remarks from his commanding officer as especially impactful.

CITY MANAGER COMMENTS & REPORTS
None.

HEARINGS
ITEM REMOVED FROM AGENDA. Published in the Modesto Bee on April 15, 2026.

16. Hearing to consider the development of a car wash at 1600 and 1604 Kansas Avenue, comprised of a rezone of 1600 Kansas from C-3 Zone to new Planned Development Zone P-D(616), and prezone of 1604 Kansas Avenue to P-D(616) with annexation of that parcel, to facilitate the development. (Funding Source: Developer Application Fees)
• This item was previously noticed but has been removed prior to the posting of the agenda and will not be heard or discussed at the meeting. Any future consideration will be separately noticed.

CED; Katharine Martin, 209-577-5267, [email protected]

NEW BUSINESS

17. Consider approving the Award of Proposal and Agreement for Banking Services to BMO Bank N.A., Sacramento, CA for a total amount not to exceed $282,220 over six years; approving a three-year extension for the Irrevocable Direct Pay Letter of Credit #3..
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(LOC) issued by BMO Bank N.A. supporting the Lease Revenue Refunding Bonds Series 2008 (LRB Bonds); approving a three-year extension for the Standby Certificate Purchase Agreement with BMO Bank N.A. supporting the Water Refunding Revenue Certificate of Participation 2008 Series A (Water COPS). (Funding Source: Various Funds)
• Resolution approving the Award of Proposal and Agreement for Banking Services to BMO Bank National Association (NA), Sacramento CA for a two year agreement with four one-year extension options, for an estimated annual amount of $47,037 and a total amount not to exceed $282,220 over six years and authorizing the City Manager or his designee to execute the Agreement. • Resolution of the City Council of the City of Modesto relating to Modesto Public Financing Authority Lease Revenue Refunding Bonds Series 2008; approving Amendment No. 2 to Reimbursement Agreement among BMO Bank N.A., City of Modesto and Modesto Public Financing Authority; Amendment No. 2 to Fee Letter Agreement; and a Supplement of to Official Statement; and authorizing certain other related actions.
• Resolution of the City Council of the City of Modesto relating to Water Refunding Revenue Certificates of Participation, 2008 Series A; approving Amendment No. 1 to Standby Certificate Purchase Agreement among BMO Bank N.A., City of Modesto and Modesto Public Financing Authority; Amended and Restated Fee Letter Agreement; and a Supplement to Remarketing Memorandum; and authorizing certain other related actions.

FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] ACTION: (Williams/Bavaro; 5/0) Resolution 2026-139 approving the Award of Proposal and Agreement for Banking Services to BMO Bank National Association (NA), Sacramento CA for a two year agreement with four one-year extension options, for an estimated annual amount of $47,037 and a total amount not to exceed $282,220 over six years and authorizing the City Manager or his designee to execute the Agreement.

ACTION: (Wright/Bavaro; 5/0) Resolution 2026-140 of the City Council of the City of Modesto relating to Modesto Public Financing Authority Lease Revenue Refunding Bonds Series 2008; approving Amendment No. 2 to Reimbursement Agreement among BMO Bank N.A., City of Modesto and Modesto Public Financing Authority; Amendment No. 2 to Fee Letter Agreement; and a Supplement of to Official Statement; and authorizing certain other related actions.

ACTION: (Williams/Wright; 5/0) Resolution 2026-141 of the City Council of the City of Modesto relating to Water Refunding Revenue Certificates of Participation, 2008 Series A; approving Amendment No. 1 to Standby Certificate Purchase Agreement among BMO Bank N.A., City of Modesto and Modesto Public Financing Authority; Amended and Restated Fee Letter Agreement; and a Supplement to Remarketing Memorandum; and authorizing certain other related actions.

18. Consider approving the extension of a Credit Facility with BMO Bank N.A. relating to #3..
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the Modesto Public Financing Authority Lease Revenue Refunding Bonds Series 2008 (the “2008 Bonds”). (Funding Source: General Fund and Successor Redevelopment Agency)
• Resolution of the Modesto Public Financing Authority relating to Modesto Public Financing Authority Lease Revenue Refunding Bonds Series 2008 approving the extension of a Credit Facility and approving the form of and authorizing the execution and delivery of an Amendment No. 2 to Reimbursement Agreement and an Amendment No. 2 to Fee Letter Agreement with BMO Bank N.A. and a supplement to Official Statement; and authorizing certain other related actions.

FINANCE DEPARTMENT; DeAnna Christensen, 209-577-5387,
[email protected]
ACTION: (Wright/Bavaro; 5/0) Resolution 01-2026 of the Modesto Public Financing Authority relating to Modesto Public Financing Authority Lease Revenue Refunding Bonds Series 2008 approving the extension of a Credit Facility and approving the form of and authorizing the execution and delivery of an Amendment No. 2 to Reimbursement Agreement and an Amendment No. 2 to Fee Letter Agreement with BMO Bank N.A. and a supplement to Official Statement; and authorizing certain other related actions.

19. Consider approving the extension of a Credit Facility with BMO Bank N.A. relating to the Water Refunding Revenue Certificates of Participation, 2008 Series A. (Funding Source: Water Utility System Revenue Fund)
• Resolution of the Modesto Public Financing Authority relating to Water Refunding Revenue Certificates of Participation, 2008 Series A; approving Amendment No. 1 to Standby Certificate Purchase Agreement among BMO Bank N.A., City of Modesto and Modesto Public Financing Authority; approving Amended and Restated Fee Letter Agreement; and a supplement to Remarketing Memorandum; and authorizing certain other related actions.

FINANCE DEPARTMENT; DeAnna Christensen, 209-577-5387,
[email protected]
ACTION: (Wright/Williams; 5/0) Resolution 02-2026 of the Modesto Public Financing Authority relating to Water Refunding Revenue Certificates of Participation, 2008 Series A; approving Amendment No. 1 to Standby Certificate Purchase Agreement among BMO Bank N.A., City of Modesto and Modesto Public Financing Authority; approving Amended and Restated Fee Letter Agreement; and a supplement to Remarketing Memorandum; and authorizing certain other related actions.

20. Consider receiving Mayor Sue Zwahlen’s Fiscal Year 2026-27 Final Budget Modifications Message per Charter Section 1303 for the Fiscal Year 2026-27 budget year. (Funding Source: All City Funds)
• Motion receiving Mayor Sue Zwahlen’s Fiscal Year 2026-27 Final Budget Modifications Message per Charter Section 1303 for the Fiscal Year 2026-27 budget year.
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BUDGET; Steve Christensen, 209-577-5390, [email protected] ACTION: (Alvarez/Wright; 5/0) Motion receiving Mayor Sue Zwahlen’s Fiscal Year 2026-27 Final Budget Modifications Message per Charter Section 1303 for the Fiscal Year 2026-27 budget year.

MATTERS TOO LATE FOR THE AGENDA
None.

ADJOURNMENT
This meeting adjourned at 7:03 p.m.

Attest:____________________________
Diane Nayares-Perez, City Clerk
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EFFECTIVE DATE: June 11, 2026
ORDINANCE NO. 3813-C.S.

ORDINANCE APPROVING THE MODESTO POLICE DEPARTMENT’S MILITARY EQUIPMENT USE POLICY (POLICY 710) IN ACCORDANCE WITH CA ASSEMBLY BILL 481, AND APPROVING THE PURCHASE OF ADDITIONAL EQUIPMENT THAT QUALIFIES AS “MILITARY EQUIPMENT” IN FISCAL YEAR 2026-2027 AND RESCINDING ORDINANCE NO. 3794-C.S.

WHEREAS, the Modesto Police Department is committed to using the most up-to-date tools and equipment to safeguard the residents of Modesto; and WHEREAS, Assembly Bill 481 (AB 481), codified at Government Code sections 7070 through 7075 requires a law enforcement agency to obtain approval from the applicable governing body, via adoption of a “military equipment” use policy by ordinance, prior to funding, acquiring, or using military equipment; and
WHEREAS, items deemed to be “military equipment” by AB 481 are used as a component of overall best practices for law enforcement agencies (LEAs) throughout the country; and WHEREAS, the term “military equipment”, as used in AB 481, in fact does not necessarily indicate equipment that has been used by the military; and WHEREAS, pursuant to AB 481, items deemed to be “military equipment” include, but are not limited to, unmanned aerial or ground vehicles, armored vehicles, command and control vehicles, pepper balls, less lethal shotguns, less lethal 40mm projectile launchers, and flashbangs; and
WHEREAS, these items provide peace officers with the ability to safely resolve volatile situations which otherwise might rise to the level of a lethal force encounter; and WHEREAS, this policy outlines each item identified in Government Code section 7070, that is currently owned by MPD and the City of Modesto and also includes the current use and cost of each item; and
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- 2 - ORDINANCE NO. 3813-C.S.

EFFECTIVE DATE: June 11, 2026
WHEREAS, these particular items have been in place prior to the implementation of AB 481 and any future acquisitions of any item deemed to be “military equipment” will require policy update and Council approval; and
WHEREAS, the Modesto City Council approved Ordinance No. 3794-C.S. on May 6, 2025 approving the MPD Military Equipment Use Policy (MPD Policy 710); and WHEREAS, the Modesto City Council has reviewed the annual military equipment report and found that each type of military equipment identified in that report has complied with the standards for approval; and
WHEREAS, MPD staff has conducted a review of the equipment needs for the department and determined that there is a need to purchase additional items that fall under the Military Equipment Use Policy and these items, their uses and cost are outlined in Attachment B; and
WHEREAS, the Modesto Police Department has held a well-publicized community engagement meeting; and
WHEREAS, AB 481 requires an annual renewal of the MPD Military Equipment Use Policy (MPD Policy 710) by ordinance, therefore staff requests Ordinance No. 3794-C.S. be rescinded with the approval of this ordinance.

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

SECTION 1. FINDINGS
The City Council of the City of Modesto finds that all of the above Recitals within this Ordinance are true and correct and incorporated herein by reference and makes the following findings:

1. The City Council hereby approves the Modesto Police Department Military Equipment Use Policy 710, attached hereto.
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- 3 - ORDINANCE NO. 3813-C.S.

EFFECTIVE DATE: June 11, 2026

2. The City Council finds that the purchase of the requested military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; the use of the equipment under the military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties; and the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

3. Ordinance No. 3794-C.S. is hereby rescinded.

SECTION 2. SEVERABILITY.

If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application any other person or circumstance. The City Council or the City of Modesto hereby declares that it would have adopted each section, sentence, clause, or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of this Ordinance be declared invalid, unenforceable or unconstitutional.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) The City Council hereby finds that the adoption of this Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) of the State CEQA Guidelines. Specifically, this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment because it does not authorize the construction of any new structures or other physical changes to the environment.

SECTION 4. EFFECTIVE DATE.

This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.
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- 4 - ORDINANCE NO. 3813-C.S.

EFFECTIVE DATE: June 11, 2026
SECTION 5. PUBLICATION.

At least two (2) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in the Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this Ordinance, the date of its introduction and the places where this ordinance is posted. #4..
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- 5 - ORDINANCE NO. 3813-C.S.

EFFECTIVE DATE: June 11, 2026
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 5th day of May, 2026, by Council Member Wright, who moved its introduction and passage to print, which motion being duly seconded by Council Member Alvarez, was upon roll call carried and the ordinance adopted by the following vote:

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

By: _________________________________
DIANE NAYERES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: _________________________________
JOSE M. SANCHEZ, City Attorney
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- 6 - ORDINANCE NO. 3813-C.S.

EFFECTIVE DATE: June 11, 2026

FINAL ADOPTION CLAUSE
The foregoing Ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 12th day of May, 2026, Councilmember ??? moved its final adoption, which motion being duly seconded by Councilmember ???, was upon roll call carried and the Ordinance adopted by the following vote:

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

SUE ZWAHLEN, MAYOR
ATTEST: ___________________________________
DIANE NAYARES-PEREZ, City Clerk
Effective Date: June 11, 2026
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CITY OF MODESTO
ORDINANCE NO. 3813-C.S.

The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of May 5, 2026:

ORDINANCE APPROVING THE MODESTO POLICE DEPARTMENT’S
MILITARY EQUIPMENT USE POLICY (POLICY 710) IN
ACCORDANCE WITH CA ASSEMBLY BILL 481, AND APPROVING

THE PURCHASE OF ADDITIONAL EQUIPMENT THAT QUALIFIES
AS “MILITARY EQUIPMENT” IN FISCAL YEAR 2026-2027 AND
RESCINDING ORDINANCE NO. 3794-C.S.

Copies of the above-mentioned ordinance are posted at the following locations:
• Tenth Street Place, 1010 10th Street
• Neighborhood Center at Marshall Park, 420 Chicago Ave. • Senior Citizen Center, 211 Bodem Street
Diane Nayares-Perez
City Clerk
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: May 4, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Combining of Budgets into the Fiscal Year 2026-27 Proposed Budget CONTACT: Stephan Christensen, Office of Performance Management and Budget Director, [email protected], 209-577-5390
DESCRIPTION:

Consider the Draft Budget as submitted by the City Manager with the Mayor’s Final Budget Modifications and combining the documents into the Proposed Budget for Fiscal Year 2026-27 and noticing a public hearing to be held on June 2, 2026, for Council’s consideration and adoption of the Fiscal Year 2026-27 Proposed Budget and related actions. (Funding Source: Various Funds)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

According to the City of Modesto’s Charter Section 1302.2, there are specific steps that must be taken to adopt a final budget. Initial steps include the compilation and review of the City Manager’s Draft Budget. This Draft Budget is then submitted to the City Council’s Finance Committee for review under public budget workshops. These workshops occurred on April 20th and April 21st, 2026. The City Manager’s Draft Budget totals approximately $674.9 million in operating expenditure, of which $215.6 million is in the General Fund and $50.9 million is in the Measure H Sales Tax Fund. The public received notice of these workshops through the City’s website, social media, and agenda postings from the City Clerk’s Office.
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City Council, May 12, 2026
Combining of Budgets into the Fiscal Year 2026-27 Proposed Budget

Section 1303 of the City of Modesto Charter states that the Mayor is to prepare and deliver final budget modifications, if any, to the Draft Budget at least forty-five (45) days prior to the new fiscal year. In accordance with Section 1303, the Mayor prepared her Final Budget Modifications Message, and this message included language related to final budget modifications. Furthermore, the Mayor delivered this message to the public and Council at the May 5, 2026, Council meeting. The message contained no additional budget modifications and will also be included in the final City of Modesto Fiscal Year 2026-27 Adopted Budget book.

DISCUSSION:

The City Manager’s Fiscal Year 2026-27 Draft Budget
Fiscal responsibility continues to be the foundation in second year of the Two-Year budget process. The City Manager’s Draft Budget for Fiscal Year 2026-27 focuses on ensuring that allocated tax dollars, either through the General Fund or Measure H, are used to enact the strategies set forth by the City Council priorities in the Strategic Plan.

Despite increases in General Fund revenues the City continues to put forth a budget that is balanced and built on a fiscal strategy that looks towards the future. The Draft Budget has been scrutinized by City staff and reconciled against past expenditures and future needs to ensure that Modesto continues its progress towards being a thriving city in any economic climate.

The approach is simple but rigorous: maintain a balanced budget, invest in sustainable growth, and protect our resources. By aligning City staff’s expertise with the community’s evolving needs, the City will align any upward financial trajectory that has defined our recent history, proving that responsible management leads to a thriving city.

This can be seen throughout the Draft Budget.

Measure H Sales Tax
The Measure H one-cent sales tax for general city services was approved by the voters on November 8, 2022. In Fiscal Year 2026-27, it is estimated to generate approximately $48.5 million annually in sales tax revenue. These funds are critical in maintaining and improving the services and infrastructure in Modesto. As part of addressing those needs, the Draft Proposed Budget has included a Measure H Spending Plan that works toward achieving those goals and improving the quality of life for the residents and visitors of Modesto.

The Fiscal Year 2026-27 Measure H Spending Plan will appropriate approximately $35.8 million in Measure H funds to fund ongoing and one-time expenses for Council approved items. This amount includes $7.7 million in new spending for Fiscal Year 2026-27 as recommended for approval in the Measure H Spending Plan. An additional $15.2 million has been recommended for approval to cover the General Fund budget shortfall as well. The recommended new expenditures in the Fiscal Year 2026-27 Measure H Spending Plan include the following areas:
• Awesome Spot Phase 1 Completion - $3.0 million
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City Council, May 12, 2026
Combining of Budgets into the Fiscal Year 2026-27 Proposed Budget

• Public Safety - $2.4 million
• Parks Deferred Maintenance - $1.6 million
• Operation Funding for Aquatics Park - $450 thousand
• Safe Sleeping Program - $100 thousand
The specific program improvements recommended for approval in the Measure H Spending Plan for Fiscal Year 2026-27 can be found in the FY 2026-27 Proposed Budget book1.

The Fiscal Year 2026-27 General Fund Operating Budget contains a structural deficit (expenditures exceeding revenues) in the amount of $17.2 million. This amount is proposed to be offset by revenues that will be received through the Measure H Sales Tax in the upcoming fiscal year ($15.2M) as well as the return of fund balance from the Fleet Internal Service Fund ($520k) and Employee Benefits Internal Services Fund ($1.5M).

The General Fund structural deficit continues to be caused by the rate of growth of expenditures outpacing the growth of revenues. This has only been worsened by the prolonged inflation and its impact on the cost of goods, fuel, and professional services contracts. With regard to revenue, some General Fund categories are increasing (Property Tax, Sales Tax, Utility Users Tax, and Transient Occupancy Tax) which are positive indicators, but the growth is being outpaced by the costs of providing services.

Pension costs continue to rise, and while the City is planning for future peaks in these costs the impacts on expenditures are felt on an annual basis.

Below is a chart that shows the breakdown of the major funds that make up the total operating expenditure budget of $674.9 million for the City Manager’s Draft Budget for Fiscal Year 2026-27:
1 https://modestogov.com/DocumentCenter/View/26475/Fiscal-Year-2026-27-ProposedMeasure-H-Spending-Plan-PDF #5..
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City Council, May 12, 2026
Combining of Budgets into the Fiscal Year 2026-27 Proposed Budget

The General Fund continues to be the largest portion of the City’s total expenditure budget at 32% followed by the Water Enterprise Funds (12%), Wastewater Enterprise Funds (9%) and the Measure H Fund (8%).

Mayor’s Final Budget Modifications
As required by the City’s Charter (Article XIII Section 1303 and Section 1304), the Mayor shall prepare and deliver to Council the Mayor’s Final Budget Modifications on the Draft Budget. Following the receipt of the Mayor’s Final Budget Modifications, the Council shall then consider and review the draft budget as submitted by the City Manager together with the Mayor’s Final Budget Modifications and may make such revisions as the Council may deem advisable. The document that results from this Fund Name FY 2026-27 Draft Proposed Operating Budget
General Fund $ 215,635,182
Water Enterprise Funds $ 82,091,475
Wastewater Enterprise Funds $ 60,248,876
Measure H Spending Plan Expenditures $ 50,937,690
Employee Benefits Administration and Mangaement ISF Funds $ 48,377,492 Fleet Management and Replacement ISF Funds $ 36,795,315 Insurance Funds $ 26,072,222
Solid Waste Funds $ 21,228,789
Surface Transportation Fund $ 21,089,580
Information Technology ISF Fund $ 17,038,758
Storm Drainage Fund $ 8,547,735
Liability Insurance ISF Fund $ 13,467,385
Capital Improvement Support Fund $ 8,401,562
Inventory Purchases Fund $ 10,280,818
Community Facilities District (CFD) Funds $ 7,618,786
Other Special Revenue and Grant Funds $ 7,103,469
Workers Compensation ISF Fund $ 9,592,604
Debt Service Fund $ 5,878,672
Golf Funds $ 3,945,012
Housing and Urban Development (HUD) Funds $ 4,353,828
Building Services ISF Fund $ 3,558,101
Joint Powers Authority (JPA) Funds $ 3,760,848
Parking Fund $ 2,118,646
Property Insurance ISF Fund $ 2,709,672
Community Center Operations Fund $ 467,775
Airport Funds $ 1,665,870
Insurance Administration ISF Fund $ 1,469,673
Mail Services ISF Fund $ 411,103
Landscape District Funds $ 82,959
All Funds Total $ 674,949,897
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City Council, May 12, 2026
Combining of Budgets into the Fiscal Year 2026-27 Proposed Budget

process shall be deemed the “Proposed Budget” and shall be considered for approval at a hearing prior to June 30th for adoption of the Final Budget.

This year, the City Councilmembers were able to attend and participate in the Finance Committee Budget Workshops that were held on April 20th and April 21st, 2026. The Draft Budget that is being presented to City Council is largely a collaborative effort.

As previously stated, in accordance with Section 1303 of the City of Modesto Charter, the Mayor has submitted her Final Budget Modifications Message at the May 5, 2026, City Council meeting. The message communicated the Mayor’s position that no changes are being recommended to the budget at this time and that Draft Budget be moved forward for consideration by the Council as the Proposed Budget in June.

FISCAL IMPACT:

The Fiscal Year 2026-27 Proposed Operating Expenditure Budget2 (inclusive of Transfers Out) is approximately $674.9 million of which the General Fund budget is $215.6 million. Public Safety continues to be the largest portion of the General Fund expenditure budget at $179.4 million. This represents 83% of the total General Fund operating expenditure budget.

This year’s budget includes the Fiscal Year 2026-27 Measure H Spending Plan which includes proposed expenditures of $50.9 million. A breakdown of the overall Measure H spending has been provided for the Fiscal Year 2026-27 Measure H Spending Plan below:

All other active funds of the City are shown to be solvent and include adjustments to expenditures to maintain appropriate reserve levels.

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. 2 The Proposed Budget can be found on the City’s website at the following link:
https://modestogov.com/ArchiveCenter/ViewFile/Item/5230 FY 2026-27 Measure H Spending Plan Amount
Approved FY 26-27 Spending Plan on New Programs $ 7,637,996 Already Approved Measure H Spending $28,134,710
General Fund Budget Deficit Funding $13,164,984
Supplement for ARPA Lost Funding in General Fund $ 2,000,000 Total FY 2026-27 Measure H Spending $50,937,690
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City Council, May 12, 2026
Combining of Budgets into the Fiscal Year 2026-27 Proposed Budget

COMMITTEE RECOMMENDATION:

This Finance Committee approved and recommended forwarding the City Manager’s Draft Budget for Fiscal Year 2026-27 to Council for final review and adoption by a 3-0 vote on April 21, 2026, at the Finance Committee Budget Workshops.

As other financial impacts develop throughout Fiscal Year 2026-27, staff will report back to Finance Committee and City Council for recommendation and approval of modifications to the adopted budget within the first quarter of the new fiscal year.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution combining the City Manager’s Draft Budget and the Mayor’s Final Budget Modifications into the Proposed Budget for Fiscal Year 2026-27 and noticing a public hearing to be held on June 2, 2026, for Council’s consideration and adoption of the Fiscal Year 2026-27 Proposed Budget and related actions.

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
Attachments:

1. Resolution Combining of Budgets into the Fiscal Year 2026-27 Proposed Budget

2. FY 2026-27 Mayor’s Final Budget Modifications Message

3. Fiscal Year 2026-27 Proposed Budget –
https://modestogov.com/ArchiveCenter/ViewFile/Item/5230 #5..
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05/12/2026/OPMB/SChristensen/Item X 1 2026-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-
RESOLUTION COMBINING THE CITY MANAGER’S DRAFT BUDGET
AND THE MAYOR’S FINAL BUDGET MODIFICATIONS INTO THE
PROPOSED BUDGET FOR FISCAL YEAR 2026-27, AND NOTICING A PUBLIC HEARING TO BE HELD JUNE 2, 2026, FOR COUNCIL’S
CONSIDERATION AND ADOPTION OF THE FISCAL YEAR 2026-27

PROPOSED BUDGET AND RELATED ACTIONS
WHEREAS, the Finance Committee heard the City Manager’s Draft Budget on April 20th and April 21st, 2026, through a series of Budget Workshops, and
WHEREAS, the Finance Committee approved the City Manager’s Draft Budget with a 3-0 vote and approved the budget to be moved on to Council for final review and adoption, and
WHEREAS, the City’s Charter, Article XIII Section 1303 and Section 1304 requires that the Mayor has the opportunity to make any final budget modifications to the City Manager’s Draft Budget at least 45 days prior to the end of the fiscal year and adoption by City Council, and
WHEREAS, the Mayor presented her Final Budget Modifications Message of the City Manager’s Draft Budget to City Council at the May 5, 2026, City Council meeting and has presented no changes and recommended that the Draft Budget be moved forward to Council as the City of Modesto’s Fiscal Year 2026- 27 Proposed Budget for adoption consideration, and
WHEREAS, the City of Modesto’s Fiscal Year 2026-27 Proposed Budget will be inclusive of the City Manager’s Draft Budget and the Mayor’s Final Budget Modifications and will be heard at a public hearing scheduled to be held on June #5..
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05/12/2026/OPMB/SChristensen/Item X 2 2026-XX
2, 2026.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves combining the City Manager’s Draft Budget as well as the Mayor’s Final Budget Modifications into the City of Modesto’s Fiscal Year 2026-27 Proposed Budget and notices a public hearing to be held on June 2, 2026, for the adoption of the Fiscal Year 2026-27 Proposed Budget.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of May 2026, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST:
________________________________

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

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

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 1, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Community Cleanup and Employment Pathway (CCEP) Grant Acceptance and Agreement
CONTACT: Edgar Garcia, Community Development Manager
[email protected], 209-571-5101
DESCRIPTION:

Consider accepting the Community Cleanup and Employment Pathway (CCEP) grant in the amount of $575,000 to expand the Modesto Mo’Beautiful Initiative. (Funding Source:

Clean California Funds)
STRATEGIC PLAN ELEMENT:

This item supports quality of life consistent with the City Council’s 2025-2026 Strategic Plan Goal C: Develop and implement a comprehensive housing and homelessness action plan
BACKGROUND:

The Community Cleanup and Employment Pathway (CCEP) Grant Program is a statewide initiative under the Clean California Program designed to fund locally led litter abatement, graffiti removal, community beautification, and transitional workforce development efforts, with a strong emphasis on serving disadvantaged communities. The Summer 2025 CCEP grant cycle was formally announced in September 2025, and the City submitted its application for funding in the amount of $837,000 in November 2025.

The City’s proposal addressed two critical needs in our community – homelessness response and blight abatement.

Many Modesto neighborhoods experience persistent litter, illegal dumping, graffiti, and general blight, particularly along major corridors and in historically underserved areas.

These conditions impact safety, aesthetics, and overall quality of life. Launched in 2025, #6..
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City Council, May 12, 2026
Community Cleanup and Employment Pathway
(CCEP) Grant Acceptance and Agreement

the Modesto Mo’Beautiful Initiative is a collaborative, community-led cleanup and beautification effort within the City of Modesto. By combining community participation with coordinated City operations, Mo’Beautiful helps address these ongoing challenges and works to make Modesto cleaner, safer, and more welcoming while strengthening civic pride and stewardship.

The City’s application for CCEP funding created a coordinated approach that reduces blight while helping individuals experiencing homelessness gain stability and pathways to long-term employment through interdepartmental partnerships and collaboration with local organizations.

DISCUSSION:

In February 2026, the City was awarded $575,000 to further the Mo’Beautiful Initiative through workforce development, interdepartmental coordination with City of Modesto Public Works (PW) and the Modesto Police Department (MPD),and enhance blight abatement activities. The following outlines the primary activities and partners supported by the grant.

Modesto Gospel Mission – HopeWorks
Modesto Gospel Mission will be allocated $333,159 in CCEP grant funds to support transitional employment for HopeWorks participants, including part-time wages, case management, a part-time program manager, and a driver, along with essential equipment and supplies for cleanup activities. These resources support individuals experiencing homelessness by providing paid work experience and structured support while contributing directly to litter and graffiti abatement across underserved areas throughout the community.

Modesto Police Department (MPD)
CCEP grant funding in the amount of $100,000 will support MPD’s role in providing employment‑pathway exposure and operational support in high‑need areas, helping ensure cleanup crews can safely address chronic blight and illegal dumping hotspots.

Modesto Public Works Department (PW)
CCEP grant funding in the amount of $73,133 will support City PW staff time for community disposal events, disposal costs, equipment needs, and logistical coordination that supports routine cleanup routes and illegal dumping removal across priority areas.

City of Modesto Communications Division – Community Engagement The City’s Communications Team will lead all public outreach and awareness efforts, sharing project updates and promoting community participation in Mo’Beautiful activities. $28,851 in CCEP grant funds will support these efforts.

The grant agreement with CalTrans will be through November 1, 2027 with quarterly progress reports required throughout this period. These reports will require #6..
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City Council, May 12, 2026
Community Cleanup and Employment Pathway
(CCEP) Grant Acceptance and Agreement

accomplishments, challenges, and key performance metrics—such as litter removed, graffiti abated, workforce participation, and community engagement. A final report and full grant closeout, including proof of completion and financial reconciliation, are due November 3, 2027.

FISCAL IMPACT:

The grant award is for a total of $575,000 to further the City’s Mo’Beautiful Initiative. The City has also identified $1,552,581 in in-kind funds to support the program. The funding grant award is broken down in further detail in the table below:

CCEP Grant Activity Budget
Modesto Gospel Mission - HopeWorks $333,159
Modesto Police Department $100,000
Public Works Department $73,133
Community Engagement $28,851
City of Modesto Administrative Costs $39,857
TOTAL ALLOCATION $575,000
Sufficient funds are available in the grant budget to fund the program, and there will be no impact to the General Fund.

COMMITTEE RECOMMENDATION:

This item was not reviewed by a Council Committee, due to the time sensitive nature of this item to begin implementation in accordance with the terms of the agreement.

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 COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the Community Cleanup and Employment Pathway (CCEP) grant in the amount of $575,000 to expand the Modesto Mo’Beautiful Initiative, and authorizing the City Manager, or his designee, to execute the agreement.

Resolution amending the Fiscal Year 2025-26 Annual Operating and Non-Capital Project fund budgets to establish a project as well as the necessary revenue, expenditures, and transfers in the amount of $575,000 to appropriate funds for the Community Cleanup and Employment Pathway (CCEP) Grant, and authorizing the City Manager, to take the necessary steps to implement the provisions of this resolution. #6..
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City Council, May 12, 2026
Community Cleanup and Employment Pathway
(CCEP) Grant Acceptance and Agreement

Approved by:

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

1. Resolution

2. Budget Resolution

3. Agreement with CalTrans

4. Levine Act
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05/12/2026/CED/EGarcia/Item X 1 2026-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-

RESOLUTION ACCEPTING THE COMMUNITY CLEANUP AND
EMPLOYMENT PATHWAY (CCEP) GRANT IN THE AMOUNT OF $575,000 TO EXPAND THE MODESTO MO’BEAUTIFUL INITIATIVE, AND AUTHORIZING

THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT WHEREAS, the Community Cleanup and Employment Pathway (CCEP) Grant Program is a statewide initiative under the Clean California Program designed to fund locally led litter abatement, graffiti removal, community beautification, and transitional workforce development efforts, with a strong emphasis on serving disadvantaged communities; and
WHEREAS, the Summer 2025 CCEP grant cycle was formally announced in September 2025, and the City submitted its application for funding in the amount of $837,000 in November 2025; and
WHEREAS, the City was notified of award in the amount of $575,000 in February 2026 to further the Mo’Beautiful Initiative in coordination with City of Modesto Public Works (PW) and the Modesto Police Department (MPD), and the United Way of Stanislaus County and Modesto Gospel Mission; and WHEREAS, the grant will fund the HopeWorks program by supporting paid transitional employment, job training, tailored case management, and routine blight abatement in underserved areas; and
WHEREAS, City of Modesto Public Works will facilitate community disposal events and logistical coordination that supports routine cleanup routes across the City; and
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05/12/2026/CED/EGarcia/Item X 2 2026-XX
WHEREAS, City of Modesto Police Department will provide employment‑pathway exposure and operational support, helping ensure cleanup crews can safely address chronic blight and illegal dumping hotspots; and WHEREAS, the City’s Communications Team will lead all public outreach and awareness efforts, sharing project updates and promoting community participation in Mo’Beautiful activities; and
WHEREAS, the grant agreement with CalTrans will be through November 1, 2027 with quarterly progress reports required throughout this period; and WHEREAS, these reports will require accomplishments, challenges, and key performance metrics such as litter removed, graffiti abated, workforce participation, and community engagement; and
WHEREAS, the grant award is for a total of $575,000 to further the City’s Mo’Beautiful initiative and includes $39,857 in administrative costs for staff activity delivery.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Agreement with State of California Department of Transportation (CalTrans) for the acceptance of the Community Cleanup and Employment Pathway (CCEP) grant in the amount of $575,000 to expand the Modesto Mo’Beautiful Initiative.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to execute agreements and submit applicable documents as required by the State.
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05/12/2026/CED/EGarcia/Item X 3 2026-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of May, 2026 by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: ____________________________

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

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney

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5/12/2026/CED/EGarcia/Item x 1 2026-xx

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX
RESOLUTION AMENDING THE FISCAL YEAR 2025-26 ANNUAL OPERATING

AND NON-CAPITAL PROJECT FUND BUDGETS TO ESTABLISH A PROJECT

AS WELL AS THE NECESSARY REVENUE, EXPENDITURES, AND
TRANSFERS IN THE AMOUNT OF $575,000 TO APPROPRIATE FUNDS FOR

THE COMMUNITY CLEANUP AND EMPLOYMENT PATHWAY (CCEP)

GRANT, AND AUTHORIZING THE CITY MANAGER, TO TAKE THE

NECESSARY STEPS TO IMPLEMENT THE PROVISIONS OF THIS

RESOLUTION
WHEREAS, the Community Cleanup and Employment Pathway (CCEP) Grant Program is a statewide initiative under the Clean California Program designed to fund locally led litter abatement, graffiti removal, community beautification, and transitional workforce development efforts, with a strong emphasis on serving disadvantaged communities; and
WHEREAS, the Summer 2025 CCEP grant cycle was formally announced in September 2025, and the City submitted its application for funding in the amount of $837,000 in November 2025; and
WHEREAS, the City was notified of award in the amount of $575,000 in February 2026 to further the Mo’Beautiful Initiative in coordination with City of Modesto Public Works (PW) and the Modesto Police Department (MPD), and United Way of Stanislaus County; and
WHEREAS, the grant will fund paid transitional employment and case management for HopeWorks program participants, and routine blight abatement in highneed areas; and WHEREAS, the grant will also support interdepartmental coordination between the City’s Public Works Department, Police Department, and Communications Team to #6..
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ensure aligned operations, outreach, and sustained community impact; and WHEREAS, if the Agreement is approved, the fiscal year 2025-2026 Multi-Year budget must be amended.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby amends the Fiscal Year 2025-2026 Annual Operating and Non-Capital Project Fund budgets to establish a project as well as applicable revenue, expense and transfer budgets in the amount of $575,000 to appropriate the funds for the Community Cleanup and Employment Pathway (CCEP) grant.

BE IT FURTHER RESOLVED that the City Manager or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution. #6..
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5/12/2026/CED/EGarcia/Item x 3 2026-xx
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12h day of May 2026, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________

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

BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

Clean California Local Grant Program (State)
Restricted Grant Agreement
This Restricted Grant Agreement (RGA), between the State of California acting by and through its Department of Transportation, referred to herein as CALTRANS, and the City of Modesto, hereinafter referred to as AGENCY, will commence on April 30, 2026, or upon approval by CALTRANS, whichever occurs later. This RGA is of no effect unless approved by CALTRANS.

AGENCY shall not receive payment for work performed prior to approval of this RGA and before receipt of Notice to Proceed from CALTRANS. This RGA shall expire on November 1, 2027.

Recitals

1. Under this RGA, CALTRANS intends to convey State restricted grant funds to AGENCY, pursuant to Budget Act Line Item 2660-130-0001, who will implement the project pursuant to the attached Approved Grant Application and Amendment(s) to Grant Application, Attachment III under the terms, covenants, and conditions of this RGA.

2. CALTRANS and AGENCY intend that only funds that are authorized as restricted grants will be subject to this RGA, and that no funds that should be the subject of a Joint Powers Agreement, Interagency Agreement, or other non-grant agreement shall be subject to this RGA.

3. WHEREAS, the Clean CA Program, through its Clean CA Local Grants Program, is authorized under California Streets and Highways Code Section 91.41 to provide funding and resources to support local projects that advance the program's goals and objectives;

4. WHEREAS, California Streets and Highways Code Section 91.41 provides the legislative authority for the Clean CA Program to advance the following intent and objectives:
a. Reduce Waste and Beautify Public Spaces: The primary goal of the program is to allocate grants to local and regional public agencies, transit agencies, and tribal governments to reduce waste and debris within public rights-of-way, tribal lands, parks, pathways, transit centers, and other public spaces. The program aims to enhance, rehabilitate, restore, or install measures to beautify and improve these public spaces. b. Improve Public Health and Community Placemaking: The program seeks to enhance public health, cultural connection, and community placemaking by improving public spaces for walking and recreation. By investing in the improvement of these spaces, it aims to create a positive and welcoming environment for the community. c. Promote Equity for Underserved Communities: The program places a strong emphasis on advancing equity for underserved communities.
d. Support Sustainable Practices: The program encourages the implementation of sustainable practices in the beautification and enhancement of public spaces. This includes greening efforts, such as providing shade and reducing the urban heat island effect, as well as using native, low-water plants.
e. Engage Local Communities: The program promotes community engagement by requiring project proposals to reflect community priorities. It encourages the involvement of local communities in the development and selection of projects to ensure they meet the needs and preferences of the affected population.
f. Prohibit Displacement of Persons Experiencing Homelessness: The program prohibits grants from funding projects that displace persons experiencing homelessness. This #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

reflects the intention to address public space improvements without negatively impacting vulnerable populations.
g. Transparent and Efficient Grant Allocation: The program requires the program to issue a call for projects and announce grant awards. The guidelines for allocating grants must include project selection criteria and program evaluation metrics.

5. WHEREAS, the purpose of this RGA is to authorize Caltrans districts to enter into agreements with local agencies to support the development, implementation, and funding of local agencies partnership projects that align with the goals and priorities of the Clean CA Program and comply with California Streets and Highways Code Section 91.41;

6. WHEREAS, this RGA establishes a framework for Caltrans districts to provide financial contributions and other assistance to local agencies, fostering effective collaboration and coordination to deliver successful transit partnership projects;

7. WHEREAS, this RGA emphasizes transparency, objective evaluation, and fair allocation of resources, ensuring that projects scoring higher based on established criteria receive prioritization for funding and implementation;

8. WHEREAS, the Clean CA Program facilitates collaboration between Caltrans districts and local agencies to support litter abatement and public space beautification efforts on locally owned public right-of-way while creating workforce development opportunities for individuals facing barriers to employment that align with the goals and priorities of the Clean CA Program and comply with California Streets and Highways Code Section 91.41;

9. WHEREAS, the Clean CA Program, in partnership with Caltrans districts, seeks to enhance local right-of-way areas to address waste management challenges, graffiti mitigation, and public space beautification, thereby contributing to create cleaner, safer, and more equitable public spaces throughout California;

10. WHEREAS, the Clean CA Program, established by the State of California, is a transformative initiative which promotes sustainable transportation alternatives, reducing greenhouse gas emissions, and combatting climate change to improve the overall quality of life for residents and visitors of California;

11. WHEREAS, the Clean CA Program envisions a comprehensive approach to address transportation challenges, enhance transit infrastructure, and support local agencies in their efforts to create efficient, safe, and environmentally friendly transit options;

12. NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the Parties enter into this RGA to advance the purpose and intent of the Clean CA transit initiative, harnessing the legislative authority provided under California Streets and Highways Code Section 91.41, and collaborating on transit partnership projects that contribute to a sustainable, innovative, and well-connected transportation network throughout the State of California.

Now, Therefore, based upon the terms, covenants, and conditions of this RGA, the parties agree as follows:

Section I
AGENCY Agrees:

To timely and satisfactorily complete all Project work described in Attachment III (“Project Work”) within the project budget and in accordance with the items of this RGA. #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

Section ll
CALTRANS Agrees:

That when conducting an audit of the costs claimed by AGENCY under the provisions of this RGA, to conduct the audit in accordance with applicable laws and regulations.

Section lII
It Is Mutually Agreed:

1. Under this RGA, CALTRANS will convey State grant restricted funds to AGENCY, pursuant to Budget Act Line Item 2660-130-0001, and AGENCY will use the funds to only conduct the scope of work identified in this agreement and authorized by Streets and Highway Code section 91.41 The funds subject to this RGA must be identified as available to a public entity that is responsible for implementing the scope of work authorized under the Clean California Program in CALTRANS’ budget, and AGENCY represents and warrants that it is a public entity that is responsible for implementing the scope of work authorized under the Clean California Program.

2. Under this restricted grant, funds may be only used for the purposes set forth in this RGA, AGENCY Resolution (Attachment IV), Approved Grant Application and Amendment(s) to Grant Application (Attachment III), and the Grant Program Guidelines (Attachment I), and the funds may only be used for costs and expenses that are directly related to such purpose.

3. AGENCY shall perform all the duties and obligations described in Modesto Mo’Beautiful, hereinafter “Project”, subject to the terms and conditions of this RGA and Approved Grant Application and Amendment(s) to Grant Application (Attachment III), which are attached hereto as Attachment III.

4. The resolution authorizing AGENCY to execute this RGA pertaining to the above-described Project is attached hereto as Attachment IV.

5. All services performed by AGENCY pursuant to this RGA shall be subject to and performed in accordance with California Streets and Highways Code §91.41 including, but not limited to, Government Code Section 14460(a)(1), as well as all applicable Federal, State, and Local laws, regulations, and ordinances, all applicable CALTRANS policies and procedures, and all applicable CALTRANS published manuals, including, but not limited to, the Grant Program Guidelines (Attachment I).

California Government Code Section 14460(a)(1) provides: “The department [CALTRANS], and external entities that receive state and federal transportation funds from the department, are spending those funds efficiently, effectively, economically, and in compliance with applicable state and Federal requirements. Those external entities include, but are not limited to, private for profit and nonprofit organizations, local transportation agencies, and other local agencies that receive transportation funds either through a contract with the department or through an agreement or grant administered by the department.”
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

6. Project funding is as follows:

Fund Title Fund Source Dollar Amount
Clean California Funds State General Fund (0001)
Budget Item 2660-130-0001
State Program Code

20.30.010.900
FY 2025/26
Local Match/ In Kind
$ 575,000.00
$1,552,581.00
Total Project Costs $2,127,581.00
For Caltrans Use Only
I hereby Certify upon my own personal knowledge that budgeted funds are available for encumbrance.

Accounting Officer Printed
Name
Accounting Officer
Signature
Date Amount Certified

7. This RGA is exempt from the legal review and approval by the Department of General Services, pursuant to Legal Opinions of the Attorney General: 58 Ops. Cal. Atty. Gen. 586 (1975), 63 Ops.

Cal. Atty. Gen. 290 (1980), 74 Ops. Cal. Atty. Gen. 10 (1991), and 88 Ops. Cal. Atty. Gen. 56.

8. Notification of Parties
a. AGENCY’s Project Manager for Project is Edgar Garcia (209) 571-5101 b. CALTRANS’ District Partnership Liaison is Kelly Loehrer (209) 986-9406. “District Partnership Liaison” as used herein includes his/her designee.
c. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and received by the parties at their respective addresses:

City of Modesto
Attention: Edgar Garcia, Community Development Manager
Phone Number: (209) 571-5101
Email: [email protected]
1010 10th Street, Suite 3100
Modesto, California 94354
California Department of Transportation, District Partnership Liaison District 10 Clean California
Attention: Kelly Loehrer, Clean CA CCEP Grant Program Coordinator Phone Number: (209) 986-9406
Email: [email protected]
1604 S B St.

Stockton, California 95206
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

9. Period of Performance
a. Reimbursable work under this RGA shall begin no earlier than on April 30, 2026, following the written approval of CALTRANS and AGENCY’s receipt of the Notice to Proceed letter of this RGA by CALTRANS. All reimbursable work shall terminate no later than November 1, 2027.

Project closeout and final invoicing to CALTRANS must be submitted no later than June 30, 2027. Work incurred after November 1, 2027, will not be reimbursed. Payment shall be forfeit for any and all invoicing submitted to CALTRANS after November 1, 2027. Notwithstanding the foregoing, Caltrans will reimburse for actual close out costs incurred by AGENCY through November 1, 2027 (which, in total, shall not exceed 5% of the grant award). b. If requested by the CALTRANS District Partnership Liaison, AGENCY will attend a kickoff meeting with CALTRANS to be scheduled within one (1) week from receipt of Notice to Proceed sent by CALTRANS.

10. Changes in Terms/Amendments
This Agreement may only be amended or modified by mutual written agreement of the parties.

11. Cost Limitation
a. The maximum total amount granted and reimbursable to AGENCY pursuant to this RGA by CALTRANS shall not exceed $575,000.00.
b. It is agreed and understood that the Clean CA funds are limited to the amount granted.

CALTRANS will only reimburse the cost of services actually incurred in accordance with the provisions of this RGA and as authorized by the CALTRANS District Partnership Liaison at or below that fund limitation established herein.

12. Termination
a. CALTRANS reserves the right to terminate this RGA upon written notice to AGENCY at least 30 days in advance of the effective date of such termination in the event CALTRANS determines (at its sole discretion) that AGENCY failed to proceed with PROJECT Work in accordance with the terms of this RGA. In the event of termination for convenience, CALTRANS will reimburse AGENCY for all allowable, authorized, and non-cancelled costs up to the date of termination.

AGENCY shall return any unused advance amounts which cannot be supported by eligible expenditure documentation.
b. This RGA may be terminated by either party for any reason by giving written notice to the other party at least 30 days in advance of the effective date of such termination. In the event of termination for convenience, CALTRANS will reimburse AGENCY for all costs that are expressly allowable, pre-authorized in writing, and non-cancellable, up to the date of termination. c. AGENCY has 60 days after the Termination Date to submit accurate invoices to CALTRANS to make final allowable payments for Project costs in accordance with the terms of this RGA.

Failure to submit invoices within this period of time shall result in a waiver by AGENCY of its right to reimbursement of expended costs. Costs that are reimbursed and later determined to be ineligible for reimbursement shall be returned by AGENCY to CALTRANS.

13. Budget Contingency Clause
a. It is mutually agreed that if the US Congress or the State Legislature fail to appropriate or allocate funds during the current year and/or any subsequent years covered under this RGA do not appropriate sufficient funds for the program, this RGA shall be of no further force and effect.

In this event, CALTRANS shall have no liability to pay any funds whatsoever to AGENCY or to #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

furnish any other considerations under this RGA and AGENCY shall not be obligated to perform any provisions of this RGA.
b. The certification of FY 2025/26 funds will be contingent upon the passage of the FY 2023/24 Budget. Payment for any work performed that is funded by FY 2023/24 will be delayed if the FY 2023/24 Budget is not signed by June 30, 2023. Pursuant to Government Code (GC), Section 926.10, no late payment penalty shall accrue during any time period for which no Budget Act in effect. If funding for any fiscal year is reduced or deleted by US Congress or State Legislature for purposes of this program, CALTRANS shall have the option to either terminate this RGA with no liability occurring to CALTRANS or offer an RGA Amendment to AGENCY to reflect reduced amount.

14. Payment and Invoicing
a. AGENCY, its contractors, subcontractors and sub-recipients, shall establish and maintain an accounting system and records that properly accumulate and segregate incurred Project costs and matching funds by line. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP) and any standards specified by the source of funds, to enable the determination of incurred costs at interim points of completion, and to provide support for reimbursement payment vouchers or invoices.
b. The method of payment for this RGA will be based on the actual allowable costs that are incurred in accordance with the provisions of this RGA and in the performance of the Approved Grant Application and Amendment(s) to Grant Application (Attachment III). CALTRANS will reimburse AGENCY for expended actual allowable direct costs, and including, but not limited to, labor costs, travel, and contracted consultant services costs incurred by AGENCY in performance of the Project Work. Indirect costs are reimbursable only if the AGENCY has identified the estimated indirect cost rate in Attachment II and an approved Indirect Cost Allocation Plan or an Indirect Cost Rate Proposal as set forth in Section III–Cost Principles, Item 16d. The total cost shall not exceed the cost reimbursement limitation set forth in Section III–Cost Limitations, Item 11a. Actual costs shall not exceed the estimated wage rates, labor costs, travel, and other estimated costs and fees set forth in Attachment III without an amendment to this RGA, as agreed between CALTRANS and AGENCY. c. Reimbursement of AGENCY expenditures will be authorized only for those allowable costs actually incurred by AGENCY in accordance with the provisions of this RGA and in the performance of Project Work. AGENCY must not only have incurred the expenditures on or after the start date and the issuance of the Notice to Proceed letter for this RGA and before the Expiration Date but must have also paid for those costs to claim any reimbursement. d. The AGENCY indirect cost rate must be approved in writing by the California Department of Transportation Independent Office of Audits and Investigations or federal cognizant agency before any reimbursement payment is made by CALTRANS to AGENCY for such cost. e. Travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Human Resources for similar employees (i.e. non-represented employees) unless written verification is supplied that government hotel rates were not then commercially available to AGENCY, its subrecipients, contractors, and/or subcontractors, at the time and location required as specified in the California Department of Transportation's Travel Guide Exception Process at the following link: https://travelpocketguide.dot.ca.gov/.

Also see website for summary of travel reimbursement rules. #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

f. AGENCY shall submit invoices to CALTRANS at least quarterly, but no more frequently than monthly, in arrears upon completion of project tasks, milestone and/or deliverables in accordance with the Project Timeline in Attachment III to the satisfaction of CALTRANS District Partnership Liaison
g. Invoices shall reference this RGA Number and shall be signed and submitted to CALTRANS District Partnership Liaison, as stated in Section III–Notification of Parties, Item 8c. h. Invoices shall include the following information:
1) Names of the AGENCY personnel performing work
2) Dates and times of Project Work
3) Locations of Project Work
4) Itemized costs as set forth in Attachment III, including identification of each employee, contractor or subcontractor staff who provided services during the period of the invoice, the number of hours and hourly rates for each employee, contractor, sub-recipient or subcontractor staff member, authorized travel expenses with receipts, receipts for authorized materials or supplies, and contractor, subrecipient and subcontractor invoices. 5) AGENCY shall submit written progress reports with each set of invoices to allow CALTRANS District Partnership Liaison to determine if AGENCY is performing to expectations, is on schedule, is within funding cost limitations, to communicate interim findings, and to afford occasions for airing difficulties respecting special problems encountered so that remedies can be developed.
i. Incomplete or inaccurate invoices shall be returned to the AGENCY unapproved for correction.

Failure to submit invoices on a timely basis may be grounds for termination of this RGA for material breach per Section III–Termination, Item 12.
j. CALTRANS will reimburse AGENCY for all allowable Project costs at least quarterly, but no more frequently than monthly, in arrears as promptly as CALTRANS fiscal procedures permit upon receipt of an itemized signed invoice.
k. The RGA Expiration Date refers to the last date for AGENCY to incur valid Project costs or credits and is the date this RGA expires. AGENCY has until June 30, 2027, to make final allowable payments to Project contractors or vendors, and November 1, 2027, to submit the Project’s Final Report, as defined in Attachment I and a final invoice to CALTRANS for reimbursement for allowable Project costs. Any unexpended Project funds not invoiced by the 60th day will be reverted and will no longer be accessible to reimburse late Project invoices contractor.
l. The final invoice will be paid upon submission by AGENCY to CALTRANS and acceptance by CALTRANS of the Final Delivery Report. Complete final delivery reports and invoices must be submitted to CALTRANS by November 1, 2027.

15. Quarterly Progress Reporting
a. AGENCY shall submit written quarterly progress reports to the CALTRANS District Partnership Liaison to determine if AGENCY is performing to expectations, is on schedule, is within funding cost limitations, to communicate interim findings, and to afford occasions for airing difficulties respecting special problems encountered so that remedies can be developed.
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

16. Cost Principles
a. AGENCY agrees to comply with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
b. AGENCY agrees, and will assure that its contractors, sub-recipients, in-kind contributors, and subcontractors will be obligated to agree, that (a) Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual Project cost items and (b) and (b) all parties shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

Every sub-recipient receiving Project funds as a sub-recipient, contractor, or subcontractor under this RGA shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards to the extent applicable. c. Any Project costs for which AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, and/or Part 48, Chapter 1, Part 31, are subject to repayment by AGENCY to CALTRANS. Should AGENCY fail to reimburse moneys due CALTRANS within 30 days of discovery or demand, or within such other period as may be agreed in writing between the parties hereto, CALTRANS is authorized to intercept and withhold future payments due AGENCY from CALTRANS or any third-party source, including, but not limited to, the State Treasurer, the State Controller or any other fund source.
d. Prior to AGENCY seeking reimbursement of indirect costs, AGENCY must have identified estimated indirect cost rate in Attachment II, prepare and submit annually to CALTRANS for review and approval an indirect cost rate proposal and a central service cost allocation plan (if any) in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 5 of the Local Assistance Procedures Manual which may be accessed at: https://dot.ca.gov/-/media/dotmedia/programs/local-assistance/documents/lapm/ch05.pdf e. AGENCY agrees and shall require that all its agreements with consultants and subrecipients contain provisions requiring adherence to this section in its entirety except for section c, above.

17. Americans with Disabilities Act
By signing this Agreement, AGENCY assures CALTRANS that in the course of performing Project Work, it will fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, as amended, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA (42 USC Section 12101 et seq.).

18. Iran Contracting Act
AGENCY must complete and submit to CALTRANS the Iran Contracting Act Certification certifying that it is not on the most current DGS list of Entities Prohibited from Contracting with Public Entities in California per the Iran Contracting Act, 2010 (https://www.dgs.ca.gov/PD/Resources/PageContent/Procurement-Division-Resources-List-Folder/List-of-Ineligible-Businesses), before the Agreement has been executed, unless Contractor is exempted from the certification requirement by Public Contract Code Section 2205(c) or (d). If claiming an exemption, the proposed Contractor #6..
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Agreement Number 10-CCEP-01
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shall provide written evidence that supports an exemption under Public Contract Code Section 2203(c) or (d) before execution of the Agreement.

19. Indemnification
a. Neither CALTRANS nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by AGENCY, its officers, employees, agents, its contractors, its subrecipients, or its subcontractors under or in connection with any work, authority, or jurisdiction conferred upon AGENCY under this RGA.

It is understood and agreed that AGENCY shall fully defend, indemnify, and save harmless CALTRANS and all of CALTRANS’ officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, including, but not limited to, tortuous, contractual, likeness statutes under California Civil Code §§ 3344 and 3344.1, inverse condemnation, or other theories or assertions of liability occurring by reason of anything done or omitted to be done by AGENCY, its officers, employees, agents, contractors, subrecipients, or subcontractors under this RGA.
b. AGENCY agrees to fully defend, indemnify, and save harmless CALTRANS and all of its officers and employees from any and all claims, lawsuits, or legal actions, including reasonable attorneys’ fees and legal costs, relating to intellectual property claims arising from or related to the Project and/or any work procured under this RGA, including but not limited to claims based on (1) U.S. federal or state trademark infringement laws, (2) patent infringement laws (3) 17 U.S.C. §§ 101-810 (the Copyright Act of 1976, as modified), (4) 17 U.S.C. § 106A(a) (the Visual Artists Rights Act of 1990, “VARA”), (5) 17 U.S.C. § 113, (6) California Civil Code § 987 (the California Art Preservation Act), California Civil Code §989, or (7) any other rights arising under U.S. federal or state laws or under the laws of any other country that conveys rights and protections of the same nature as those conveyed under 17 U.S.C. §106A(a) and California Civil Code §987, including intellectual property claims arising from or related to breach of contract, inverse condemnation, conversion, and/or taking of property.

20. Nondiscrimination Clause (2 CCR 11105 Clause b)
a. During the performance of this RGA, the AGENCY, its contractors, its subrecipients, and its subcontractors shall not deny the contract's benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. AGENCY shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. b. AGENCY shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code Sections 12900 et seq.), the regulations promulgated thereunder (California Code of Regulations, Title 2, Sections 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code Sections 11135-11139.5), and the regulations or standards adopted by CALTRANS to implement such article. c. AGENCY shall permit access by representatives of the Department of Fair Employment and Housing and CALTRANS upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours' notice, to such of its books, records, accounts, and all other #6..
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sources of information and its facilities as said Department or CALTRANS shall require to ascertain compliance with this clause.
d. AGENCY and its contractors, its sub-recipients, and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
e. AGENCY shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements with all of same that each of them in turn include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under this RGA.

21. Retention of Records/Audits
a. AGENCY, its contractors, subcontractors, and sub-recipients, agree to comply with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
b. AGENCY, its contractors, subcontractors, and sub-recipients shall establish and maintain an accounting system and records that properly accumulate and segregate incurred Project costs and matching funds by line. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of AGENCY, its contractors, subcontractors and sub-recipients connected with Project performance under this RGA shall be maintained for a minimum of three (3) years from the date of final payment to AGENCY and shall be held open to inspection, copying, and audit by representatives of CALTRANS, the California State Auditor, and auditors representing the federal government. Copies thereof will be furnished by AGENCY, its contractors, its subcontractors, and sub-recipients upon receipt of any request made by CALTRANS or its agents. In conducting an audit of the costs and match credits claimed under this RGA, CALTRANS will rely to the maximum extent possible on any prior audit of AGENCY pursuant to the provisions of State and AGENCY law. In the absence of such an audit, any acceptable audit work performed by AGENCY’s external and internal auditors may be relied upon and used by CALTRANS when planning and conducting additional audits. c. For the purpose of determining compliance with applicable State and AGENCY law in connection with the performance of AGENCY’s contracts with third parties pursuant to Government Code Section 8546.7, AGENCY, AGENCY’s sub-recipients, contractors, subcontractors, and CALTRANS, shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire Project period and for three (3) years from the date of final payment to AGENCY under this RGA. CALTRANS, the California State Auditor, or any duly authorized representative of CALTRANS or the United States Department of Transportation, shall each have access to any books, records, and documents that are pertinent to a Project for audits, examinations, excerpts, and transactions, and AGENCY shall furnish copies thereof if requested. d. AGENCY, its subrecipients, contractors, and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by CALTRANS, for the purpose of any investigation to ascertain compliance with this RGA.
e. Additionally, all grants may be subject to a pre-award audit prior to execution of this RGA to ensure AGENCY has an adequate financial management system in place to accumulate and segregate reasonable, allowable and allocable costs.
f. Any contract with a contractor, subcontractor, or sub-recipient entered into as a result of this RGA shall contain all the provisions of this article.

22. Adjudication of Facts in Disputes
a. Any dispute concerning a question of fact arising under this RGA that is not disposed of by agreement shall be decided by the CALTRANS Contract Officer, who may consider any written or verbal evidence submitted by AGENCY. The CALTRANS Contract Officer shall issue a written decision within 30 days of receipt of the dispute. If AGENCY rejects the decision of the CALTRANS Contract Officer, AGENCY can pursue any and all remedies authorized by law. Neither party waives any rights to pursue remedies authorized by law.
b. Neither the pendency of a dispute nor its consideration by CALTRANS Contract Officer will excuse AGENCY from full and timely performance in accordance with the terms of this RGA.

23. Third-Party Contracts
a. AGENCY shall perform the work contemplated with resources available within its own organization and no portion of the work shall be contracted to a third party without prior written authorization by the CALTRANS District Partnership Liaison unless expressly included (subrecipient identified) in Attachment III as Project Work. b. All State-government-funded procurements must be conducted using a fair and competitive procurement process. AGENCY may use its own procurement procedures as long as the procedures comply with the local AGENCY’s laws, rules, and ordinances governing procurement and all applicable provisions of State law, including, without limitation, the requirement that the AGENCY endeavor to obtain at least three (3) competitive bids for solicitation of goods, services, and consulting services (see Part 2, Chapter 2, Articles 3 and 4 of the Public Contract Code); a qualifications-based solicitation process, for which statements of qualifications are obtained from at least three (3) qualified firms for architecture and engineering services (see Title 1, Division 5, Chapter 10 of the Government Code); and, the applicable provisions of the State Contracting Manual (SCM), Chapter 5, which are not inconsistent with this Item 23, Third Party Contracts. The SCM can be found and the following link: https://www.dgs.ca.gov/OLS/Resources/PageContent/Office-of-Legal-Services-Resources-List-Folder/State-Contracting. c. Any contract entered into as a result of this RGA shall contain all the provisions stipulated in this RGA to be applicable to AGENCY’s sub-recipients, contractors, and subcontractors.

Copies of all agreements with sub-recipients, contractors, and subcontractors, must be submitted to the CALTRANS District Partnership Liaison. d. CALTRANS does not have a contractual relationship with the AGENCY’s subrecipients, contractors, or subcontractors, and the AGENCY shall be fully responsible for all work performed by its subrecipients, contractors, or subcontractors. #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

e. Prior authorization in writing by the CALTRANS District Partnership Liaison shall be required before AGENCY enters into any non-budgeted sub-agreement. AGENCY shall provide an evaluation of the necessity or desirability of incurring such costs. AGENCY shall retain all receipts for such purchases or services and shall submit them with invoices per Section III–Payment and Invoicing, Item 14(h)(4), above. f. Any contract entered into by AGENCY as a result of this RGA shall mandate that travel and per diem reimbursements and third-party contract reimbursements to subrecipients, contractors, and subcontractors, will be allowable as Project costs only after those costs are incurred and paid for by the subrecipients, contractors, and subcontractors. Travel expenses and per diem rates for subcontractors shall be reimbursed pursuant to Section III–Payment and Invoicing, Item 14c, above.

24. Drug-Free Workplace Certification
By signing this RGA, AGENCY hereby certifies under penalty of perjury under the laws of California that AGENCY will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code Sections 8350 et seq.) and will provide a Drug-Free workplace by doing all of the following:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). b. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(a)(2) to inform employees about all of the following:
1) The dangers of drug abuse in the workplace.
2) The person's or organization's policy of maintaining a Drug-Free workplace. 3) Any available counseling, rehabilitation, and employee assistance programs. 4) Penalties that may be imposed upon employees for drug abuse violations. c. Provide, as required by Government Code Section 8355(a)(3), that every employee who works on the proposed contract or grant:
1) Will receive a copy of the company's Drug-Free policy statement. 2) Will agree to abide by the terms of the company's statement as a condition of employment on the contract or grant.
d. Failure to comply with these requirements may result in suspension of payments under this RGA or termination of this RGA or both, and AGENCY may be ineligible for the award of any future state contracts if CALTRANS determines that any of the following has occurred: (1) AGENCY has made a false certification or, (2) AGENCY violates the certification by failing to carry out the requirements as noted above.

25. Relationship of Parties
It is expressly understood that this agreement is executed by and between two (2) independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party. #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

26. State-Owned Data
a. AGENCY agrees to comply with the following requirements to ensure the preservation, security, and integrity of State-owned data on portable computing devices and portable electronic storage media:
1) Encrypt all State-owned data stored on portable computing devices and portable electronic storage media using government-certified Advanced Encryption Standard (AES) cipher algorithm with a 256-bit or 128-bit encryption key to protect CALTRANS data stored on every sector of a hard drive, including temp files, cached data, hibernation files, and even unused disk space.
2) Data encryption shall use cryptographic technology that has been tested and approved against exacting standards, such as FIPS 140-2 Security Requirements for Cryptographic Modules.
3) Encrypt, as described above, all State-owned data transmitted from one computing device or storage medium to another.
4) Maintain confidentiality of all State-owned data by limiting data sharing to those individuals contracted to provide services on behalf of the State, and limit use of State information assets for State purposes only.
5) Install and maintain current anti-virus software, security patches, and upgrades on all computing devices used during the course of the Agreement. 6) Notify the CALTRANS District Partnership Liaison immediately of any actual or attempted violations of security of State-owned data, including lost or stolen computing devices, files, or portable electronic storage media containing State-owned data. 7) Advise the owner of the State-owned data, the AGENCY Information Security Officer, and the AGENCY Chief Information Officer of vulnerabilities that may present a threat to the security of State-owned data and of specific means of protecting that State-owned data. b. AGENCY agrees to use the State-owned data only for State purposes under this Agreement. c. AGENCY agrees to not transfer State-owned data to any computing system, mobile device, or desktop computer without first establishing the specifications for information integrity and security as established for the original data file(s) (State Administrative Manual (SAM) Section 5335.1).

27. CALTRANS’ Use of “Before” and “After” Project Photographs a. AGENCY acknowledges it provided a “Before” photograph of the Project with the AGENCY’s application for the Clean California Local Grant Program. AGENCY acknowledges and agrees it must provide an “After” photograph of the Project as part of the close out reporting process. b. AGENCY warrants it is the copyright owner of the “Before” and “After” Project photographs. c. Neither the “Before” nor “After” Project photographs shall include the faces of any individuals.
d. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the “Before” and “After” Project photographs, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication. #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

e. When applicable, AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.

28. Limited Grant of Rights to CALTRANS for Use of Educational Programming (“educational programming”) Created or Produced for Project and Visual Art Located Outside of State Right-ofWay (“Artwork”) Created or Produced for Project a. Educational programming:
i. AGENCY shall obtain from any and all copyright owner(s) of educational programming a sublicensable, irrevocable, perpetual, royalty-free, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the educational programming created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, exhibition catalogues or other similar publication. AGENCY shall obtain any and all other intellectual property rights necessary to make this grant to CALTRANS as described in this RGA.
ii. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the educational programming created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication.
iii. When applicable, AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license or sublicense described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.
iv. To the extent any logos, including trademarks or service marks, belonging to third parties and/or the AGENCY are used on educational programming created or produced for Project under this RGA, AGENCY agrees to obtain and grant all necessary rights for CALTRANS to use and allow agents of CALTRANS to use the logos in connection with use of the educational programming for non-commercial purposes or State government purposes. This includes but is not limited to reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education and exhibition catalogues or other similar publication. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required. b. Artwork:
i. AGENCY shall obtain from the artist(s), or any other copyright owner(s) of Artwork, a sublicensable, irrevocable, perpetual, royalty-free, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of Artwork created or produced for Project under this RGA, or #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication. AGENCY shall obtain any and all other intellectual property rights necessary to make this grant to CALTRANS as described in this RGA.
ii. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of Artwork created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication.
iii. AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license or sublicense described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.

29. Government Purpose Rights for Inventions
a. Inventions are any idea, methodologies, design, concept, technique, invention, discovery, improvement or development regardless of patentability made solely by AGENCY or jointly with the AGENCY’s contractor, subcontractor and/or subrecipient during the term of this RGA and in performance of any work under this RGA, provided that either the conception or reduction to practice thereof occurs during the term of this RGA and in performance of work issued under this RGA.
b. CALTRANS will have Government Purpose Rights to any inventions created as a result of the Project. “Government Purpose Rights” are the unlimited, irrevocable, worldwide, perpetual, royalty-free, non-exclusive rights, and licenses to use, modify, reproduce, perform, release, display, create derivative works from, and disclose any said invention. “Government Purpose Rights” also include the right to release or disclose said invention(s) outside CALTRANS for any State government purpose and to authorize recipients to use, modify, reproduce, perform, release, display, create derivative works from, and disclose the invention(s) for any State government purpose. “Government Purpose Rights” do not include any rights to use, modify, reproduce, perform, release, display, create derivative works from, or disclose the invention(s) for any commercial purpose.

30. Additional Intellectual Property Provisions
a. To the extent any intellectual property is created or produced for Project under this RGA, and not covered in other provisions of this RGA, AGENCY agrees to take reasonable steps to ensure that CALTRANS has the rights necessary to allow for use of the intellectual property in a fashion substantially similar to other rights for non-commercial uses and State government purposes described in this RGA.
b. If additional uses are reasonably determined to be needed by CALTRANS for public outreach purposes, AGENCY will obtain rights and grant CALTRANS and its agents said additional rights for use of the “Before” and “After” Project photos, Artwork created or produced for Project under this RGA, and educational programming created or produced for Project under this RGA. #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

The grant will be an irrevocable, non-exclusive, perpetual, royalty-free, sublicensable, unlimited, worldwide license.
c. When requested to so do by AGENCY, all reproductions and/or copies by CALTRANS of “Before” or “After” Project photographs, educational programming, and Artwork shall contain a credit to the Artist/ Copyright owner(s) and a copyright notice in substantially the following form:
© [Artist/Copyright owner’s name, date of publication]. AGENCY bears sole responsibility to promptly notify CALTRANS, in writing, about instances where such accreditation is requested and provide the Artist/ Copyright owner’s name and date of publication. CALTRANS will make reasonable efforts to affix the copyright notice in a timely manner. d. Required disclaimer language for educational programming and Artwork created or produced for Project under this RGA.
i. Educational programming: AGENCY must place a disclaimer statement in a conspicuous manner on the educational programming created or produced for Project under this RGA a disclaimer that states the content of the educational programming does not reflect the official views or policies of CALTRANS. The educational programming does not constitute a standard, specification, or regulation.
ii. Artwork: AGENCY must place a disclaimer statement in a conspicuous manner on or in close proximately to the Artwork created or produced for Project under this RGA a disclaimer statement that the contents of the artwork do not reflect the official views or policies of CALTRANS.
e. Avoidance of Infringement: In performing work under this RGA, AGENCY and its employees agree to avoid designing or developing any items that infringe one or more patents or other intellectual property rights of any third party. If AGENCY or its employees becomes aware of any such possible infringement in the course of performing any work under this RGA, AGENCY or its employees shall immediately notify CALTRANS in writing. f. Contractors, Subcontractors, and Subrecipients: Through contract with its sub-recipients, contractors, and subcontractors, AGENCY shall affirmatively bind by contract all of its contractors, subcontractors, subrecipients, and service vendors (hereinafter “AGENCY’s Contractor/Subcontractor/Subrecipient”) providing services under this RGA to conform to the provisions of paragraphs 31-33 of this RGA. In performing services under this RGA, AGENCY’s Contractor/Subcontractor/Subrecipient shall agree to avoid designing or developing any items that infringe one (1) or more patents or other intellectual property rights of any third party. If AGENCY’s Contractor/Subcontractor/Subrecipient becomes aware of any such possible infringement in the course of performing any work under this RGA, AGENCY’s Contractor/Subcontractor/Subrecipient shall immediately notify the AGENCY in writing, and AGENCY will then immediately notify CALTRANS in writing.

31. Visual Art Located on California State Right-of-Way AGENCY agrees if Project involves visual art located on California State right-of-way, Project must be submitted and adhere to CALTRANS’ most current Transportation Art Proposal process, policies, guidelines, and requirements. Information regarding CALTRANS’ Transportation Art program can be found at https://dot.ca.gov/programs/design/lap-landscape-architecture-andcommunity-livability/lap-liv-j-transportation-art. AGENCY bears sole responsibility for ensuring that any Project will be timely submitted through CALTRANS’ Transportation Art Proposal process, approved, and installed prior to any deadlines as required by this RGA. #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

a. AGENCY acknowledges that funds provided by CALTRANS under this RGA shall not be used for maintenance outside of the project time limits as provided in this RGA. b. AGENCY acknowledges that the CALTRANS’ Transportation Art Proposal process requires, among other things, CALTRANS ownership of any tangible visual final artwork, an unlimited, irrevocable copyright assignment to CALTRANS of the final artwork, and waiver of moral rights under California Civil Code § 987 (the California Art Preservation Act) and 17 U.S.C. § 106A(a) (the Visual Artists Rights Act of 1990, “VARA”) of the final artwork. c. AGENCY acknowledges that any submittal to the CALTRANS’ Transportation Art Proposal process includes restrictions on the type of work that can be located on California State right-ofway.

32. Assumption of Risk and Indemnification Regarding Exposure to Environmental Health Hazards In addition to, and not a limitation of, AGENCY’s indemnification obligations contained elsewhere in this Agreement, AGENCY hereby assumes all risks of the consequences of exposure of AGENCY’s employees, agents, Subcontractors, Subcontractors’ employees, and any other person, firm, or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, to any and all environmental health hazards, local and otherwise, in connection with the performance of this Agreement. Such hazards include, but are not limited to, bodily injury and/or death resulting in whole or in part from exposure to infectious agents and/or pathogens of any type, kind or origin. AGENCY also agrees to take all appropriate safety precautions to prevent any such exposure to AGENCY’s employees, agents, Subcontractors, Subcontractors’ employees, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement. AGENCY also agrees to indemnify and hold harmless CALTRANS, the State of California, and each and all of their officers, agents and employees, from any and all claims and/or losses accruing or resulting from such exposure. Except as provided by law, AGENCY also agrees that the provisions of this paragraph shall apply regardless of the existence or degree of negligence or fault on the part of CALTRANS, the State of California, and/or any of their officers, agents and/or employees.

33. Mandatory Organic Waste Recycling
It is understood and agreed that pursuant to Public Resources Code Sections 42649.8 et seq., if AGENCY or its subcontractor generates two (2) cubic yards or more of organic waste or commercial solid waste per week, AGENCY or its subcontractor shall arrange for organic waste or commercial waste recycling services that separate/source organic waste for organic waste recycling. AGENCY shall provide proof of compliance, i.e. organic waste recycling services or commercial waste recycling services that separate/source organic waste recycling, upon request from CALTRANS District Partnership Liaison

34. Project Close Out/Closeout Report
a. AGENCY will provide a final close out report to the CALTRANS District Partnership Liaison no later than November 1, 2027.

CALTRANS reserves the right to inspect the project location prior to approving the final invoice and closeout report.
b. CALTRANS reserves the right to withhold final payment to AGENCY pending receipt and approval of the final closeout report by the CALTRANS District Partnership Liaison. c. Payments shall be forfeit if invoices are submitted after November 1, 2027. #6..
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

35. ADA Compliance
All entities that provide electronic or information technology or related services that will be posted online by CALTRANS must be in compliance with Government Code Sections 7405 and 11135 and the Web Content Accessibility Guidelines (WCAG) 2.0 or subsequent version, published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success. All entities will respond to and resolve any complaints/deficiencies regarding accessibility brought to their attention.

36. Prevailing Wages and Labor Code Compliance
AGENCY shall comply with any and all applicable labor and prevailing wage requirements in Labor Code Sections 1720 through 1815 and implementing regulations for any public works or maintenance contracts and subcontracts executed for the AGENCY’s work on or for the Project.

37. In the event of any inconsistency between the provisions which constitute this RGA, the following order of precedence shall apply:

I. This Restricted Grant Agreement (as amended);
II. The CALTRANS Local Grant Program Guidelines;
III. Approved Indirect Cost Rate (if applicable);
IV. Approved Grant Application (as amended); and
V. AGENCY Resolution.

38. Survival
AGENCY’s representations, the indemnification provisions in paragraph 21, intellectual property provisions in paragraphs 30, 31, 32, and 33, and all other provisions which by their inherent character establish ongoing obligations shall remain in full force and effect, regardless of any expiration and/or termination of this RGA.

39. Sanctions
No agreements under this RGA shall be made with individuals and/or entities that are determined to be a target of sanctions by the State of California while such sanctions are in effect.

Section IV
Attachments:

The following attachments are incorporated into and are made a part of this RGA by this reference and attached hereto.

I. Clean CA Community Cleanup and Employment Pathway (CCEP) Grant Program Guidelines II. Approved Indirect Cost Rate (if applicable)
III. Approved Grant Application and Amendment(s) to Grant Application (if applicable) IV. AGENCY Resolution
In Witness Whereof, the parties hereto have executed this RGA on the day and year first herein above written:
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

AGENCY NAME
By:

Printed Name:

Title:

Date:

CALTRANS DISTRICT PARTNERSHIP LIAISON

CLEAN CALIFORNIA PROGRAM
By:

Printed Name:

Kelly Loehrer
Title:

Clean CA CCEP Grant Program Coordinator
Date:

CALIFORNIA DEPARTMENT OF TRANSPORTATION

CLEAN CALIFORNIA PROGRAM
By:

Printed Name:

Walter Yu
Title:

Clean California Program Director
Date:
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City of Modesto
Agreement Number 10-CCEP-01
AMS ADV ID: 1026000131

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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services Department / City Engineer SUBJECT: Accept the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project
CONTACT: Peter Kambel, Senior Civil Engineer, [email protected], 209-577-5444
DESCRIPTION:

Consider accepting the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project as complete, releasing securities, releasing payments totaling $3,938,967 to TCB Industrial Inc., of Modesto, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Wastewater Fund) STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2025-26 Strategic Plan Initiative, Goal D:

Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.

BACKGROUND:

Following the startup of the Phase 2 Tertiary Treatment Process at the Regional Water Recycling Facility – Jennings Campus (RWRF-JC), maintenance and operations staff observed corrosion on equipment, pipes, and fittings downstream of the tertiary process.

The RWRF-JC Corrosion Control Measures Project replaced the existing corroded steel influent line between the screening facility and the distribution box with a corrosion resistant fiberglass reinforced plastic (FRP) line. A stainless-steel liner was also installed in the ultraviolet (UV) channels to assist with the cleaning of the channels and to reduce the growth of algae. The influent Parshall Flume No. 2 at Regional Water Recycling Facility – Sutter Campus has been repaired. Finally, a built-in crane and existing loading #7..
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City Council, May 12, 2026
Accept the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project

dock doors of the maintenance shop have been removed in order to repurpose the maintenance shop into additional office space.

DISCUSSION:

The work for this project was advertised for bids on October 16, 2023. Bids were publicly opened on December 5, 2023, and TCB Industrial Inc., of Modesto, CA, was the lowest responsible bidder at 22.86% above the engineers’ estimate.

On January 24, 2024, by Resolution 2024-019, Council awarded a contract to TCB Industrial Inc., in the amount of $3,870,047. The Contractor received the Notice to Proceed with a start date of April 2, 2024. All contract work was completed on March 12, 2026.

By accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed. The City Clerk is authorized to complete all the necessary steps to file Notice of Completion with the County Recorder, release securities, and authorize payments totaling $3,938,967. The work is covered by a one-year warranty for any issues that may arise.

Staff recommends the project for acceptance as the contractor has complied with all contract requirements for the project.

FISCAL IMPACT:

The total project costs were $4,866,507, which included design, design consultants (Carollo / Hazen & Sawyer) construction, and construction administration costs. The total project amount originally budgeted was $5,110,554 which included $4,450,554 for the construction contract and contingency with TCB Industrial Inc.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, updated by Resolution No. 2019-326 on July 9, 2019, and revised a second time on September 12, 2023 by Council Resolution No. 2023-405 established a contract change order authority of 10% for construction contracts of this dollar amount. However, after reviewing the plans and specifications, and given the nature of this project where unforeseen utilities or buried structures, and other unaccounted for issues may arise, it is likely that this project could exceed the Director’s Authority of 10% of the construction contract amount of $3,870,047. Therefore, staff requested that the Director’s Authority to issue change orders be increased to 15% ($580,507) of the construction contract amount.

There were eleven (11) change orders resulting in an overall increase of $68,920 for change order work as listed on the attached change order log. A summary of the expenditures for the overall project is listed below.
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City Council, May 12, 2026
Accept the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project

101092 – Jennings Corrosion Control
PROJECT EXPENDITURES:

Construction Contract $3,870,047
Construction Contingency (Change Orders) 1.78% $68,920
Construction Administration – City Staff Support 5.44% $210,369 Engineering Design/Admin. – City Staff Support/Misc. 1.23% $47,732 Design Consultant – Carollo Engineers 15.49% $599,613
Design Consultant – Hazen and Sawyer 1.80% $69,826
TOTAL CONSTRUCTION EXPENDITURES: $4,866,507
COMMITTEE RECOMMENDATION:

On June 28, 2021, the Finance Committee recommended that the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project be forwarded to Council upon successful bidding.

CEQA/NEPA REQUIREMENTS:

Environmental review has been provided through a Categorical Exemption under CEQA Section 15301 (Ex. Facilities) Class1, (b).

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project as complete, releasing securities, releasing payments totaling $3,938,967 to TCB Industrial Inc., of Modesto, CA, and authorizing the City Clerk to file a Notice of Completion.

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

1. Resolution

2. Contract Change Order Log

3. Project (101092) Substantial Completion Form

4. Notice of Completion
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MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX

RESOLUTION ACCEPTING THE REGIONAL WATER RECYCLING FACILITY – JENNINGS CAMPUS CORROSION CONTROL MEASURES PROJECT AS

COMPLETE, RELEASING SECURITIES, RELEASING PAYMENTS TOTALING $3,938,967 TO TCB INDUSTRIAL INC., OF MODESTO, CA, AND

AUTHORIZING THE CITY CLERK TO FILE A NOTICE OF COMPLETION WHEREAS, following the startup of the Phase 2 Tertiary Treatment Process at the Regional Water Recycling Facility – Jennings Campus (RWRFJC), maintenance and operations staff observed corrosion on equipment, pipes, and fittings downstream of the tertiary process; and
WHEREAS, the RWRF-JC Corrosion Control Measures Project replaced the existing corroded steel influent line between the screening facility and the distribution box with a corrosion resistant fiberglass reinforced plastic (FRP) line.

A stainless-steel liner was also installed in the ultraviolet (UV) channels to assist with the cleaning of the channels and to reduce the growth of algae. The influent Parshall Flume No. 2 at Regional Water Recycling Facility – Sutter Campus has been repaired. Finally, a built-in crane and existing loading dock doors of the maintenance shop have been removed in order to repurpose the maintenance shop into additional office space; and
WHEREAS, the project was advertised for bids on October 16, 2023; and WHEREAS, bids were publicly opened on December 5, 2023, and TCB Industrial Inc., of Modesto, CA, was the lowest responsible bidder at 22.86% above the engineers’ estimate; and
WHEREAS, on January 24, 2024, by Resolution 2024-019, Council awarded a contract to TCB Industrial Inc., in the amount of $3,870,047; and #7..
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WHEREAS, the Contractor received the Notice to Proceed with a start date of April 2, 2024. All contract work was completed on March 12, 2026; and WHEREAS, the total project costs were $4,866,507, which included design, design consultants (Carollo / Hazen & Sawyer) construction, and construction administration costs. The total project amount originally budgeted was $5,110,554 which included $4,450,554 for the construction contract and contingency with TCB Industrial Inc; and
WHEREAS, the City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, updated by Resolution No. 2019-326 on July 9, 2019, and revised a second time on September 12, 2023 by Council Resolution No. 2023-405 established a contract change order authority of 10% for construction contracts of this dollar amount; and
WHEREAS, after reviewing the plans and specifications, and given the nature of this project where unforeseen utilities or buried structures, and other unaccounted for issues may arise, it is likely that this project could exceed the Director’s Authority of 10% of the construction contract amount of $3,870,047.

Therefore, staff requested that the Director’s Authority to issue change orders be increased to 15% ($580,507) of the construction contract amount; and WHEREAS, there were eleven (11) change orders resulting in an overall increase of $68,920 for change order work as listed on the attached change order log; and
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WHEREAS, by accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Modesto that the Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures Project as complete, releasing securities, releasing payments totaling $3,938,967 to TCB Industrial Inc., of Modesto, CA, and authorizing the City Clerk to file a Notice of Completion.

BE IT FURTHER RESOLVED that the City Clerk is hereby authorized to file a notice of Completion.
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of May, 2026, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________

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

BY: ______________________________________
JOSE M. SANCHEZ, City Attorney
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: April 15, 2026
TIME
EXT. Approved
2024/03 - RWRF Jennings Corrosion Control Measures BSK
PROJECT NUMBER AND NAME:
01 Time of Completion Adjustment 06/21/24 $0.00 5 W.D. No No Yes Yes 02 Knife Gate Pedestals 02/07/25 $52,536.00 10 W.D. No No Yes Yes 03 Fine Screens Inlet Pipe Connectoin 04/17/25 $24,963.27 8 W.D. No Yes No Yes 04 Fine Screens Electrical Modificationsand 3 Additional Working Days
07/03/25 $21,889.98 3 W.D. No Yes No Yes
05 Knife Gate Anchors and 2 Additional Working Days 07/03/25 $2,501.94 2 W.D. No Yes No Yes 06 Fine Screen Outlet Alignment and 3 Additional Working Days
07/03/25 $14,482.94 3 W.D. No Yes No Yes
07 Pipe Support Pedestals and 4 Additional Working Days 07/03/25 $12,910.66 4 W.D. No Yes No Yes 08 Dewatering 08/25/25 $77,458.30 20 W.D. No No Yes Yes 09 Distribution Box Inlet 12/09/25 $2,170.57 0 W.D. No No Yes Yes 10 Replace Can Sig . Elbow and 60 Additional Working Days 12/15/25 $98,650.20 60 W.D. No No Yes Yes 11 Adjust Quantities Consistent with Field Conditions -$238,644.24 0 W.D. No Yes No No Total Change Orders Processed To Date: $68,919.62
Original Contract Amount: $3,870,047.00
IDA To:

Total Working Days Time Extension: 115
Original Director's CCO Authority: $580,507.00
IDA Date: 12/23/2024
Total Executed Change Orders To Date: $307,563.86
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: April 15, 2026
TIME
EXT. Approved
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MODESTO
Capital Project In Beneficial Use/Substantial Completion Notice ThisnoticemustbesubmittedtotheFinanceDepartmentwhen a capitalprojecthasreachedsubstantialcompletion,is in beneficial use or has entered the warranty period to meet financial reporting guidelines of depreciation.

Project #: 101092 Fund: 4210 Cost Center: 49999
Contact: Pete Kambel Ext: 75444
When the Project was Created was it Non-Capital or Capital: Non-Capital X Capital Project in Oracle: Jennings Corrosion Control
Project Description:
(What new infrastructure
was built/created)
Project In Use/Completion Date or Council Acceptance Date: Accepted May 12, 2026 Warranty Period X Yes No
Project expenses include (Check one):

If yes, Project Warranty End Date: May 12, 2027
X Non-Capital Capital Capital and Non-Capital*
If expenses are mixed - Amount of total expenses to be recorded as Capital, either dollar amount or percentage:
* IQproject expenses include Capital and Non-Capital, an Itemized list o/New Assets and Costs which make up the amount/percentage listed above must be provided with this form Authorization Signatures to Begin Depreciation of Project Expense Project Manager:

Financial Analyst(Budget): Directorof Finance: Financial Analyst (Assets):

Latest Revision
Date:

Date:

Date:
01-FEB-2025
Non-Capital modifications and refurbishment of
piping and equipment at wastewater facility to
prevent corrosion.
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Requested by
City of Modesto/City Clerk’s Office
Return to City of Modesto/City Clerk’s Office:

PO Box 642
Modesto CA 95353

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on January 24, 2024, the City of Modesto, PO Box 642, Modesto, California 95353, a Municipal Corporation in the County of Stanislaus, State of California, awarded the contract to TCB Industrial Inc., of Modesto, CA for the project titled “Regional Water Recycling Facility – Jennings Campus Corrosion Control Measures” located at 7007 Jennings Road, Modesto CA 95358. On March 12, 2026, said contract, as a whole, was completed by TCB Industrial Inc., and accepted by the Council of the City of Modesto at a regular meeting of the Council held on May 12, 2026.

CITY OF MODESTO
By
Diane Nayares-Perez, City Clerk
I certify under penalty of perjury that the foregoing is true and correct.

Date: By
Modesto, CA Diane Nayares-Perez, City Clerk
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services Department / City Engineer SUBJECT: Accept the Sisk Road Signal Coordination CML 5059 (264) Project CONTACT: Peter Kambel, Senior Civil Engineer, [email protected], 209-577-5444
DESCRIPTION:

Consider accepting the Sisk Road Signal Coordination CML 5059 (264) Project as complete, releasing securities, releasing payments totaling $769,144 to Bear Electrical Solutions, LLC., of Alviso, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Congestion Mitigation and Air Quality and Measure L Funds)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2025-26 Strategic Plan Goal Element:
“Quality of Life”, Goal D to provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.

BACKGROUND:

The Sisk Road Signal Coordination Project installed fiber optic cable and connected eight (8) traffic signals and equipment along Sisk Road from Pelandale Avenue to Briggsmore Avenue and back to the City’s Advanced Traffic Management System (ATMS) operation center at 1010 10th Street.

The completion of this project aligns with the City’s Intelligent Transportation System goals and will allow staff to continuously monitor and improve signal performance on this roadway connecting major commercial use properties.

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City Council, May 12, 2026
Accept the Sisk Road Signal Coordination CML 5059 (264) Project

DISCUSSION:

The project was advertised for bids on May 2, 2025. Bids were publicly opened on June 10, 2025, and Bear Electrical Solutions, LLC., of Alviso, CA, was the lowest responsible bidder at 12.35% below the engineers’ estimate.

On August 26, 2025, by Council Resolution 2025-313, Council awarded a contract to Bear Electrical Solutions, LLC, in the amount of $731,713. The Contractor received the Notice to Proceed with a start date of October 13, 2025. All contract work was completed on January 22, 2026.

By accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed. The City Clerk is authorized to complete all the necessary steps to file the Notice of Completion with the County Recorder, release securities, and authorize payments totaling $769,144. The work is covered by a one-year warranty for any issues that may arise.

Staff recommends the project for acceptance as the contractor has complied with all contract requirements for the project.

FISCAL IMPACT:

The total project costs were $865,267, which included design, construction, and construction administration costs. The total project amount originally budgeted was $914,641 which included $804,884, for the construction contract and contingency with Bear Electrical Solutions, LLC.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, updated by Resolution No. 2019-326 on July 9, 2019, and revised a second time September 12, 2023, by Resolution 2023-405 established a contract change order authority of 10% (73,171), for construction contracts of this dollar value.

There are five (5) change orders resulting in an overall increase of $37,431 for change order work as listed on the attached change order log. A summary of the expenditures for the overall project is listed below.
101397 – Capital Gains – Streets CIP Projects - 3160 “Sisk Rd Signal Coordination” PROJECT EXPENDITURES: % of Contract
Construction Contract (Bear Electrical) $731,713
Construction Contingency (Change Orders) 5.12% $37,431
Construction Administration – City Staff Support 8.55% $62,550 Engineering Design/Admin. – City Staff Support/Misc. 4.59% $33,573 TOTAL CONSTRUCTION EXPENDITURES: $865,267
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City Council, May 12, 2026
Accept the Sisk Road Signal Coordination CML 5059 (264) Project

COMMITTEE RECOMMENDATION:

On August 4, 2025, this project was presented to the Economic Development Committee for consideration. The Committee recommended forwarding to Council for approval.

CEQA/NEPA REQUIREMENTS:

The State has determined that this project has no significant impact on the environment as defined by the National Environmental Policy Act (NEPA).

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the Sisk Road Signal Coordination CML 5059 (264) Project as complete, releasing securities, releasing payments totaling $769,144 to Bear Electrical Solutions, LLC., of Alviso, CA, and authorizing the City Clerk to file a Notice of Completion.

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

1. Resolution

2. Contract Change Order Log

3. Substantial Completion Form

4. Notice of Completion
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5/12/2026/ESD/PKambel 1 2026-

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX
RESOLUTION ACCEPTING SISK ROAD SIGNAL COORDINATION CML 5059 (264) PROJECT AS COMPLETE, RELEASING SECURITIES, RELEASING PAYMENTS TOTALING $769,144 TO BEAR ELECTRICAL SOLUTIONS, LLC.,

OF ALVISO, CA, AND AUTHORIZING THE CITY CLERK TO FILE A NOTICE

OF COMPLETION
WHEREAS, the Sisk Road Signal Coordination CML 5059 (264) Project installed fiber optic cable and connected eight (8) traffic signals and equipment along Sisk Road from Pelandale Avenue to Briggsmore Avenue and back to the City’s Advanced Traffic Management System (ATMS) operation center at 1010 10th Street; and
WHEREAS, the completion of this project aligns with Traffic Engineering Division’s Intelligent Transportation System goals and will allow staff to continuously monitor and improve signal performance on this roadway connecting major commercial use properties; and
WHEREAS, the project was advertised for bids on May 2, 2025; and WHEREAS, bids were publicly opened on June 10, 2025, and Bear Electrical Solutions, LLC., of Alviso, CA, was the lowest responsible bidder at

12.35% below the engineers’ estimate; and
WHEREAS, on August 26, 2025, by Council Resolution 2025-313, Council awarded a contract to Bear Electrical Solutions, LLC, in the amount of $731,713; and
WHEREAS, the Contractor received the Notice to Proceed with a start date of October 13, 2025. All contract work was completed on January 22, 2026; and #8..
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WHEREAS, the total project costs were $865,267, which included design, construction, and construction administration costs. The total project amount originally budgeted was $914,641 which included $804,884 for the construction contract and contingency with Bear Electrical Solutions, LLC.; and WHEREAS, the City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, updated by Resolution No. 2019-326 on July 9, 2019, and revised a second time September 12, 2023, by Resolution 2023-405 established a contract change order authority of 10% (73,171), for construction contracts of this dollar value; and
WHEREAS, there were five (5) change orders resulting in an overall increase of $37,431 for change order work as listed on the attached change order log; and
WHEREAS, by accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Modesto that it hereby accepts the Sisk Road Signal Coordination CML 5059 (264) Project as complete, releasing securities, releasing payments totaling $769,144 to Bear Electrical Solutions, LLC., of Alviso, CA, and authorizing the City Clerk to file a Notice of Completion.
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The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of May, 2026, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________

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

BY: ______________________________________
JOSE M. SANCHEZ, City Attorney
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: March 24, 2026
TIME
EXT. Approved
2025/22 - Sisk Road Signal Coordination CML 5059 (264) (101397) PROJECT NUMBER AND NAME:
01 Bid Line #7 Increase Fiber Splice Box 01/20/26 $21,000.00 0 W.D. No Yes No Yes 02 Driveway & Traffic Rated Box and 2 Additional Working Days
01/26/26 $13,446.32 2 W.D. No No Yes Yes
03 Change Connectors 02/26/26 $3,708.75 0 W.D. No No Yes Yes 04 Fiber Consolidation Briggsmore & Prescott 02/26/26 $9,775.00 0 W.D. No No Yes Yes 05 Balancing Change Order 03/24/26 -$10,500.00 0 W.D. No Yes No Yes Total Change Orders Processed To Date: $37,430.07
Original Contract Amount: $731,713.00
IDA To:

Total Working Days Time Extension: 2
Original Director's CCO Authority: $73,171.25
IDA Date:

Total Executed Change Orders To Date: $37,430.07
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: March 24, 2026
TIME
EXT. Approved
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MODESTO
Capital Project In Beneficial Use/Substantial Completion Notice ThisnoticemustbesubmittedtotheFinanceDepartmentwhen a capitalprojecthasreachedsubstantialcompletion,is in beneficial use or has entered the warranty period to meet financial reporting guidelines of depreciation.

Project #: 101397 Fund: 3160 Cost Center: 59999
Contact: Pete Kambel Ext: 75444
When the Project was Created was it Non-Capital or Capital: Non-Capital X Capital Project Name in Oracle: Sisk Rd Signal Coordination
Project Description:
(What new infrastructure
was built/created)
Project In Use/Completion Date or Council Acceptance Date: Accepted May 12, 2026 Warranty Period X Yes No
Project expenses include (Check one):

If yes, Project Warranty End Date: May 12, 2027
Non-Capital X Capital Capital and Non-Capital*
If expenses are mixed - Amount of total expenses to be recorded as Capital, either dollar amount or percentage:
* IQproject expenses include Capital and Non-Capital, an Itemized list o/New Assets and Costs which make up the amount/percentage listed above must be provided with this form Authorization Signatures to Begin Depreciation of Project Expense Project Manager:

Financial Analyst(Budget): Directorof Finance: Financial Analyst (Assets):

Latest Revision
Date:

Date:

Date:
01-FEB-2025
Installing approximately 18,725 Linear Feet of new
Fiber Optic Cable, 10 Pull boxes, 6 Fiber splice
boxes, and 3,600 Linear Feet of Conduit.
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Requested by
City of Modesto/City Clerk’s Office
Return to City of Modesto/City Clerk’s Office:

PO Box 642
Modesto CA 95353

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on May 12, 2025, the City of Modesto, PO Box 642, Modesto, California 95353, a Municipal Corporation in the County of Stanislaus, State of California, awarded the contract to Bear Electrical Solutions, LLC., of Alviso, CA for the project titled “Sisk Road Signal Coordination” along Sisk Road from Pelandale Avenue to Briggsmore Avenue and back to the City’s Advanced Traffic Management System (ATMS) operation center at 1010 10th Street. On January 22, 2026, said contract, as a whole, was completed by Bear Electrical Solutions, LLC, and accepted by the Council of the City of Modesto at a regular meeting of the Council held on May 12, 2026.

CITY OF MODESTO
By
Diane Nayares-Perez, City Clerk
I certify under penalty of perjury that the foregoing is true and correct.

Date: By
Modesto, CA Diane Nayares-Perez, City Clerk
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services Department / City Engineer SUBJECT: Accept Rebid Carpenter Road Area Soccer Complex - Phase 2 Project CONTACT: Peter Kambel, Senior Civil Engineer, [email protected], 209-577-5444
DESCRIPTION:

Consider accepting the Rebid Carpenter Road Area Soccer Complex - Phase 2 Project as complete, releasing securities, releasing payments totaling $1,294,183 to Frontline General Engineering Construction, Inc. of Tracy, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Various Funds) STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2025-26 Strategic Plan Area of Focus:

Quality of Life and Governance and Service Delivery.

BACKGROUND:

On October 11, 2016, by Resolution 2016-411, and February 28, 2017, by Resolution 2017-82 Council authorized staff to apply for a grant of $1,000,000 from the Youth Soccer and Recreation Development Grant Program. The City was awarded $1,000,000 in June of 2017. On May 2, 2023, a construction agreement was awarded to Machado & Sons Construction, Inc. of Turlock, CA. However, the construction agreement was terminated on December 11, 2023, requiring the project to be rebid, which was completed in March 2024.

The Rebid Carpenter Road Area Soccer Complex - Phase 2 Project constructed two new soccer fields, site furnishings, and parking lots with landscaping and security lighting.

DISCUSSION:
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City Council, May 12, 2026
Accept Rebid Carpenter Road Area Soccer Complex -
Phase 2 Project

The work for this project was advertised for bids on March 12, 2024. Bids were publicly opened on April 16, 2024, and Frontline General Engineering Construction, Inc. of Tracy, CA,
was determined to be the responsible bidder with the lowest bid at 5.54% above the engineer’s estimate.

On June 4, 2024, by Resolution 2024-181, Council awarded a contract to Frontline General Engineering Construction, Inc., in the amount of $1,270,424. The Contractor received the Notice to Proceed with a start date of July 29, 2024. All contract work was completed on May 16, 2025.

By accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed. The City Clerk is authorized to complete all the necessary steps to file Notice of Completion with the County Recorder, release securities, and authorize payments totaling $1,294,183. The work is covered by a one-year warranty for any issues that may arise.

Due to delays in final quantity and As-built approval, change order processing, and monument preservation, the administrative closure of this project was delayed. As such, the Construction Administration and the City Manager’s Office authorized the retention release on January 27, 2026, per the attached memorandum.

Staff recommends the project for acceptance as the contractor has complied with all contract requirements for the project.

FISCAL IMPACT:

The total project costs were $1,685,092, which included design, construction, construction administration, and funds spent prior to construction (previous contract with Machado & Sons). The total project amount originally budgeted was $1,805,000, which included $1,397,466 for the construction contract and contingency with Frontline General Engineering Construction, Inc.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, updated by Resolution No. 2019-326 on July 9, 2019, and revised a second time September 12, 2023, by Resolution 2023-405 established a contract change order authority of 10% ($127,042) for construction contracts up to $10,000,000.

There were eight (8) change orders resulting in an overall increase of $23,759 for change order work as listed on the attached change order log. A summary of the expenditures for the overall project is listed below.
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City Council, May 12, 2026
Accept Rebid Carpenter Road Area Soccer Complex -
Phase 2 Project

101061 – PRN - TRRP Carpenter Road Area Soccer Complex

PROJECT EXPENDITURES:

Construction Contract % of Contract $1,270,424
Construction Contingency (Change Orders) 1.87% $23,759
Construction Administration – City Staff Support 15.22% $193,365 Engineering Design/Admin. – City Staff Support/Misc. 4.62% $58,705 Previously Spent Funds (Machado & Sons) $138,839
TOTAL CONSTRUCTION EXPENDITURES: $1,685,092
COMMITTEE RECOMMENDATION:

On April 15, 2024, the Safety & Communities Committee recommended forwarding the item to Council for approval.

CEQA/NEPA REQUIREMENTS:

City staff prepared a Notice of Exemption No. EA/PR&N 2016-007 (FoC), which demonstrates the project’s conformance with the General Plan and its Master Environmental Impact Report, which was approved by the Council on October 11, 2016, by Resolution 2016-410.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting Rebid Carpenter Road Area Soccer Complex - Phase 2 Project as complete, releasing securities, releasing payments totaling $1,294,183 to Frontline General Engineering Construction, Inc. of Tracy, CA, and authorizing the City Clerk to file a Notice of Completion.

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

1. Resolution
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City Council, May 12, 2026
Accept Rebid Carpenter Road Area Soccer Complex -
Phase 2 Project

2. Contract Change Order Log

3. Project (101061) Substantial Completion Notice

4. Retention Release Memorandum

5. Notice of Completion
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5/12/2026/ESD/PKambel 1 2026-

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX

RESOLUTION ACCEPTING REBID CARPENTER ROAD AREA SOCCER
COMPLEX - PHASE 2 PROJECT AS COMPLETE, RELEASING SECURITIES, RELEASING PAYMENTS TOTALING $1,294,183 TO FRONTLINE GENERAL ENGINEERING CONSTRUCTION, INC. OF TRACY, CA, AND AUTHORIZING

THE CITY CLERK TO FILE A NOTICE OF COMPLETION
WHEREAS, on October 11, 2016, by Resolution 2016-411, and February 28, 2017, by Resolution 2017-82 Council authorized staff to apply for a grant of $1,000,000 from the Youth Soccer and Recreation Development Grant Program; and
WHEREAS, the City was awarded $1,000,000 in June of 2017; and WHEREAS, on May 2, 2023, a construction agreement was awarded to Machado & Sons Construction, Inc. of Turlock, CA. However, the construction agreement was terminated on December 11, 2023, requiring the project to be rebid, which was completed in March 2024; and
WHEREAS, the Rebid Carpenter Road Area Soccer Complex - Phase 2 Project constructed two new soccer fields, site furnishings, and parking lots with landscaping and security lighting; and
WHEREAS, the project was advertised for bids on March 12, 2024; and WHEREAS, bids were publicly opened on April 16, 2024, and Frontline General Engineering Construction, Inc. of Tracy, CA, was determined to be the responsible bidder with the lowest bid at 5.54% above the engineer’s estimate; and
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5/12/2026/ESD/PKambel 2 2026-
WHEREAS, on June 4, 2024, by Resolution 2024-181, Council awarded a contract to Frontline General Engineering Construction, Inc., in the amount of $1,270,424; and
WHEREAS, the Contractor received the Notice to Proceed with a start date of July 29, 2024. All contract work was completed on May 16, 2025; and WHEREAS, the total project costs were $1,685,092, which included design, construction, construction administration, and funds spent prior to construction (previous contract with Machado & Sons). The total project amount originally budgeted was $1,805,000, which included $1,397,466 for the construction contract and contingency with Frontline General Engineering Construction, Inc; and
WHEREAS, the City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, updated by Resolution No. 2019-326 on July 9, 2019, and revised a second time September 12, 2023, by Resolution 2023-405 established a contract change order authority of 10% ($127,042) for construction contracts up to $10,000,000; and
WHEREAS, there were eight (8) change orders resulting in an overall increase of $23,759 for change order work as listed on the attached change order log; and
WHEREAS, by accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed.
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5/12/2026/ESD/PKambel 3 2026-
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Modesto that the Rebid Carpenter Road Area Soccer Complex - Phase 2 Project is complete, releasing securities, releasing payments totaling $1,294,183 to Frontline General Engineering Construction, Inc. of Tracy, CA, and authorizing the City Clerk to file a Notice of Completion.
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5/12/2026/ESD/PKambel 4 2026-
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of May, 2026, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________

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

BY: ______________________________________
JOSE M. SANCHEZ, City Attorney
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: March 11, 2026
TIME
EXT. Approved
2024/08 - Carpenter Road Area Soccer Complex - Phase 2 (101061) Rebid - KRAZAN PROJECT NUMBER AND NAME:
01 Supply and Install Irrigation Boxes and 10 Additional Working Days
04/17/25 $2,603.00 10 W.D. No Yes No Yes
02 Concrete Spoils 04/17/25 $3,307.31 0 W.D. No Yes No Yes 03 Install Root "Watering Systen & Temprary Power 04/17/25 $8,827.86 11 W.D. No Yes No Yes 04 Purchase and Install Bike Rack 04/17/25 $1,018.36 1 W.D. No No Yes Yes 05 MID Deposit for Electrical Services 08/07/25 $6,842.50 0 W.D. No Yes No Yes 06 Extended Time For The Temporary Construction Fence. 08/07/25 $3,300.00 0 W.D. No Yes No Yes 07 Balancing Change Order - Bid Line #30 11/06/25 -$2,140.60 0 W.D. No No Yes Yes 08 Add an Additional 83 Working Days 03/11/26 $0.00 83 W.D. No No Yes Yes Total Change Orders Processed To Date: $23,758.43
Original Contract Amount: $1,270,424.00
IDA To: $127,042.00
Total Working Days Time Extension: 105
Original Director's CCO Authority: $127,042.00
IDA Date: 6/4/2024
Total Executed Change Orders To Date: $23,758.43
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CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: March 11, 2026
TIME
EXT. Approved
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MODESTO
Capital Project In Beneficial Use/Substantial Completion Notice ThisnoticemustbesubmittedtotheFinanceDepartmentwhen a capitalprojecthasreachedsubstantialcompletion,is in beneficial use or has entered the warranty period to meet financial reporting guidelines of depreciation.

Project #: 101061 Fund: 6710 Cost Center: 89999
Contact: Pete Kambel Ext: 75444
When the Project was Created was it Non-Capital or Capital: Non-Capital X Capital Project in Oracle: Carpenter Road Area Soccer
Project Description:
(What new infrastructure
was built/created)
Project In Use/Completion Date or Council Acceptance Date: Accepted May 12, 2026 Warranty Period X Yes No
Project expenses include (Check one):

If yes, Project Warranty End Date: May 12, 2027
Non-Capital X Capital Capital and Non-Capital*
If expenses are mixed - Amount of total expenses to be recorded as Capital, either dollar amount or percentage:
* IQproject expenses include Capital and Non-Capital, an Itemized list o/New Assets and Costs which make up the amount/percentage listed above must be provided with this form Authorization Signatures to Begin Depreciation of Project Expense Project Manager:

Financial Analyst(Budget): Directorof Finance: Financial Analyst (Assets):

Latest Revision
Date:

Date:

Date:
01-FEB-2025
Construction of two new soccer fields, site
furnishings, parking lots (with landscaping) and
security lighting.
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Requested by
City of Modesto/City Clerk’s Office
Return to City of Modesto/City Clerk’s Office:

PO Box 642
Modesto CA 95353

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on June 4, 2024, the City of Modesto, PO Box 642, Modesto, California 95353, a Municipal Corporation in the County of Stanislaus, State of California, awarded the contract to Frontline General Engineering Construction, Inc. of Tracy, CA for the project titled “Rebid Carpenter Road Area Soccer Complex - Phase 2” located at 1920 John Street, Modesto CA 95351. On May 16, 2025, said contract, as a whole, was completed by Frontline General Engineering Construction, Inc., and accepted by the Council of the City of Modesto at a regular meeting of the Council held on May 12, 2026.

CITY OF MODESTO
By
Diane Nayares-Perez, City Clerk
I certify under penalty of perjury that the foregoing is true and correct.

Date: By
Modesto, CA Diane Nayares-Perez, City Clerk
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services/City Engineer SUBJECT: Sixth Amendment to Interwest Consulting Group, Inc. Agreement for Rightof-Way Services for State Route 132 West Freeway/Expressway – Phase 1 Project
CONTACT: Toby Wells, Director of Engineering Services/City Engineer, 209-571-5542 DESCRIPTION:

Consider approving a Sixth Amendment to the Agreement with Property Specialists, Inc., dba CPSI, now known as Interwest Consulting Group, Inc., for additional right-ofway services for the State Route 132 West Freeway/Expressway - Phase 1 Project, increasing the agreement amount by $199,801, plus $19,980 additional services, if needed, for a total increase of $219,781 and a total not to exceed amount of $4,178,975. (Funding Source: Streets Capital Facility Fees) STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

The purpose of the State Route 132 West Freeway/Expressway - Phase 1 Project is to improve regional and interregional circulation, relieve traffic congestion along existing State Route 132, and enhance safety and operations for the existing and proposed transportation network.

On August 8, 2017, by Resolution No. 2017-314, the City Council approved an agreement with Property Specialists, Inc., (dba CPSI) to perform right-of-way consultant #10..
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City Council, May 12, 2026
Sixth Amendment to Interwest Consulting Group, Inc. Agreement for Right-of-Way Services for State Route 132 West Freeway/Expressway – Phase 1 Project

services for the Project in an amount of $735,000, plus $73,500 additional services, for a total contract amount of $808,500.

On February 27, 2018, by Resolution No. 2018-84, the City Council approved the First Amendment to the CPSI Agreement to increase the contract by $864,687, plus $86,500 for additional services, for a total contract amount of $1,759,687.

On November 27, 2018, by Resolution No. 2018-528, Council approved the Second Amendment to the CPSI Agreement to increase the contract by $1,356,773, plus $135,677 for additional services, for a total contract amount of $3,252,137.

On June 23, 2020, by Resolution No. 2020-260, Council approved the Third Amendment to the CPSI/Interwest Agreement to increase the contract by $246,160, plus $24,616 for additional services, for a total contract amount of $3,522,912.

On May 25, 2021, by Resolution No 2021-183, Council approved the Fourth Amendment to the CPSI/Interwest Agreement to increase the contract by $195,000, plus $19,500 for additional services, for a total contract amount of $3,737,413.

On October 11, 2022, by Resolution No 2022-414, Council approved the Fifth Amendment to the CPSI/Interwest Agreement to increase the contract by $177,425, plus $44,356 for additional services, for a total contract amount of $3,959,194.

DISCUSSION:

This Sixth Amendment is required to complete the activities previously authorized by Council and to close out the project right-of-way services contract. Many of the tasks include specialized work that must be completed by subconsultants with specialized expertise. The focus of the remaining work involves the transfer of properties acquired by the City for the project to Caltrans. These additional services are described in the attached agreement and scope of services and are typical for large highway projects.

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 his or her discretion, determines that it is appropriate to amend the services or goods provided under an existing agreement to include additional similar goods or services, of limited quantity or scope, in order to increase efficiency and avoid delays or disruptions to City projects or services.” On April 13, 2026, Interwest Consulting Group submitted a Sixth Amendment Request to the Agreement in the amount of $199,801, plus $19,980 for additional services, if needed, for a total amount not to exceed $219,781. Staff recommends approving the Sixth Amendment to the Agreement with Interwest Consulting Group, Inc. to complete the scope of right-of-way services for the Project.
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City Council, May 12, 2026
Sixth Amendment to Interwest Consulting Group, Inc. Agreement for Right-of-Way Services for State Route 132 West Freeway/Expressway – Phase 1 Project

Although the construction of the SR 132 project has been completed and accepted as complete, there is a continued and ongoing need for consultant services to ensure all of the documentation is completed to reach the project closeout. The project closeout includes the transfer and final disposition of all properties acquired by the City transferred to Caltrans and Stanislaus County and surplus properties.

FISCAL IMPACT:

The Project is supported by a complex matrix of funding elements including a combination of local, Regional Measure L, State, and Federal sources; of which, each have a variety of requirements and constraints.

This Sixth Amendment increases the original agreement amount by $199,801, plus $19,980 additional services, if needed, for a total increase of $219,781, and will be funded with Streets Capital Facility Fees (CFF).

This Sixth Amendment will be paid from Project #100614 – State Route 132 West Expressway. There are sufficient funds available in the Streets Capital Facility Fees Fund 3410 and the project has funds available to support the amendment.

INTERWEST CONSULTING GROUP RIGHT-OF-WAY SERVICES AGREEMENT Original Agreement, 8/8/2017 $735,000
First Additional Services Request $73,500
Contract w/Additional Services $808,500
First Amendment, 2/27/2018 $864,687
Additional Services $86,500
Amendment w/Additional Services $951,187
Second Amendment, 11/27/2018 $1,356,773
Additional Services $135,677
Amendment w/Additional Services $1,492,450
Third Amendment, 6/23/2020 $246,160
Additional Services $24,616
Amendment w/Additional Services $270,775
Fourth Amendment, 5/25/2021 $195,000
Additional Services $19,500
Amendment w/Additional Services $214,500
Fifth Amendment, 10/11/2022 $177,425
Additional Services $44,356
Amendment w/Additional Services $221,781
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City Council, May 12, 2026
Sixth Amendment to Interwest Consulting Group, Inc. Agreement for Right-of-Way Services for State Route 132 West Freeway/Expressway – Phase 1 Project

Proposed Sixth Amendment $199,801
Additional Services, If Needed $19,980
Amendment w/Additional Services $219,781
REVISED TOTAL AGREEMENT $4,178,975
COMMITTEE RECOMMENDATION:

Due to the urgent nature of the action needed to expedite the closeout of the project, this item was not presented to Council Committee.

CEQA/NEPA REQUIREMENTS:

Caltrans has completed California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) review of the Project with approval of the document as part of the PA&ED Phase on March 9, 2018.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving a Sixth Amendment to the Agreement with Property Specialists, Inc., dba CPSI, now known as Interwest Consulting Group, Inc., for additional right-ofway services for the State Route 132 West Freeway/Expressway - Phase 1 Project, increasing the agreement amount by $199,801, plus $19,980 additional services, if needed, for a total increase of $219,781 from $3,959,194 for a total amount not to exceed $4,178,975, and authorizing the City Manager, or his designee to execute the Sixth Amendment to Agreement.

Approved by:

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

1. Resolution

2. Interwest-CPSI Sixth Amendment to Agreement and Exhibit.

3. Exhibit A-6 Interwest-CPSI 6th Amendment

4. Original Agreement

5. First Amendment to Agreement

6. Second Amendment to Agreement

7. Third Amendment to Agreement

8. Fourth Amendment to Agreement

9. Fifth Amendment to Agreement
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5/12/2026/ESD/T.Wells/Item # 1 2026-

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-

RESOLUTION APPROVING A SIXTH AMENDMENT TO THE AGREEMENT WITH PROPERTY SPECIALISTS, INC., DBA CPSI, NOW KNOWN AS INTERWEST CONSULTING GROUP, INC., FOR ADDITIONAL RIGHT-OFWAY SERVICES FOR THE STATE ROUTE 132 WEST FREEWAY/EXPRESSWAY - PHASE 1 PROJECT, INCREASING THE
AGREEMENT AMOUNT BY $199,801, PLUS $19,980 ADDITIONAL
SERVICES, IF NEEDED, FOR A TOTAL INCREASE OF $219,781 FROM $3,959,194 FOR A TOTAL AMOUNT NOT TO EXCEED $4,178,975, AND

AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE TO EXECUTE THE

SIXTH AMENDMENT TO AGREEMENT
WHEREAS, the purpose of the State Route 132 West
Freeway/Expressway - Phase 1 Project is to improve regional and interregional circulation, relieve traffic congestion along existing State Route 132, and enhance safety and operations for the existing and proposed transportation network; and
WHEREAS, on August 8, 2017, by Resolution No. 2017-314, the City Council approved an agreement with Property Specialists, Inc., (dba CPSI) to perform right-of-way consultant services for the Project in an amount of $735,000, plus $73,500 additional services, for a total contract amount of $808,500; and
WHEREAS, on February 27, 2018, by Resolution No. 2018-84, the City Council approved the First Amendment to the CPSI Agreement to increase the contract by $864,687, plus $86,500 for additional services, for a total contract amount of $1,759,687; and
WHEREAS, on November 27, 2018, by Resolution No. 2018-528, Council approved the Second Amendment to the CPSI Agreement to increase the #10..
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5/12/2026/ESD/T.Wells/Item # 2 2026-
contract by $1,356,773, plus $135,677 for additional services, for a total contract amount of $3,252,137; and
WHEREAS, on June 23, 2020, by Resolution No. 2020-260, Council approved the Third Amendment to the CPSI/Interwest Agreement to increase the contract by $246,160, plus $24,616 for additional services, for a total contract amount of $3,522,912; and
WHEREAS, on May 25, 2021, by Resolution No 2021-183, Council approved the Fourth Amendment to the CPSI/Interwest Agreement to increase the contract by $195,000, plus $19,500 for additional services, for a total contract amount of $3,737,413; and
WHEREAS, on October 11, 2022, by Resolution No 2022-414, Council approved the Fifth Amendment to the CPSI/Interwest Agreement to increase the contract by $177,425, plus $44,356 for additional services, for a total contract amount of $3,959,194; and
WHEREAS, this Sixth Amendment is required to complete the activities previously authorized by Council and to close out the project right-of-way services contract; and
WHEREAS, many of the tasks include specialized work that must be completed by subconsultants with specialized expertise; and WHEREAS, the attached agreement and scope of services and are typical for large highway projects; and
WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or #10..
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5/12/2026/ESD/T.Wells/Item # 3 2026-
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 his or her discretion, determines that it is appropriate to amend the services or goods provided under an existing agreement to include additional similar goods or services, of limited quantity or scope, in order to increase efficiency and avoid delays or disruptions to City projects or services”; and WHEREAS, on April 13, 2026, Interwest Consulting Group submitted a Sixth Amendment Request to the Agreement in the amount of $199,801, plus $19,980 for additional services, if needed, for a total amount not to exceed $219,781; and
WHEREAS, Staff recommends approving the Sixth Amendment to the Agreement with Interwest Consulting Group, Inc. to complete the scope of rightof-way services for the Project.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Sixth Amendment to the agreement with Property Specialists, Inc. (dba CPSI), now known as Interwest Consulting Group, Inc. for additional right of way services for the State Route 132 West Freeway/Expressway - Phase 1 Project in the amount of $199,801, plus $199,801 for additional services (if needed), for a total increase of $219,781 from $3,959,194 for a total not to exceed amount of $4,178,975.

BE IT FURTHER RESOLVED, that the City Manager, or his designee, is authorized to execute the Sixth Amendment to the Agreement in a form approved by the City Attorney.
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5/12/2026/ESD/T.Wells/Item # 4 2026-
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of May, 2026, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

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

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

BY:

JOSE M. SANCHEZ, City Attorney
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Sixth Amendment -1- City of Modesto
Interwest Consulting Group, Inc. State Route 132 West Freeway/Expressway Phase 1 Project

SIXTH AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES FOR STATE ROUTE 132 WEST FREEWAY/EXPRESSWAY PHASE 1 PROJECT This Sixth Amendment to Agreement for Consultant Services is made with reference to the contractual agreement between the CITY OF MODESTO (“City”) and PROPERTY SPECIALISTS, INC., dba CPSI, a California corporation, now known as INTERWEST CONSULTING GROUP, INC., a Colorado corporation, (“Consultant”), entered into by the parties on the 8th day of August, 2017, hereinafter referred to as “Original Agreement”.

This Sixth Amendment to the Original Agreement for Consultant Services is made with regard to the following recitals:

A. On the 27th of February, 2018, the parties entered into a First Amendment to the Agreement for Consultant Services (“First Amendment”).

B. On the 27th of November, 2018, the parties entered into a Second Amendment to the Agreement for Consultant Services (“Second Amendment”).

C. On the 23rd of June, 2020, the parties entered into a Third Amendment to the Agreement for Consultant Services (“Third Amendment”).

D. On the 25th of May, 2021, the parties entered into a Fourth Amendment to the Agreement for Consultant Services (“Fourth Amendment”).

E. On the 11th of October, 2022, the parties entered into a Fifth Amendment to the Agreement for Consultant Services (“Fifth Amendment”).

F. Paragraph no. 9 “AMENDMENTS” of the Original Agreement acknowledges the parties understand it may become desirable or necessary for City or Consultant to modify the scope of services provided for under the Agreement and any such modification must be in writing signed by both parties.
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Sixth Amendment -2- City of Modesto
Interwest Consulting Group, Inc. State Route 132 West Freeway/Expressway Phase 1 Project G. Paragraph no. 3 “COMPENSATION” of the Original Agreement specifies the sum of $735,000 as the total compensation Consultant agrees to accept for performing all services and furnishing all staffing and materials for the project as well as performance by Consultant of all of its duties and obligations required in the Original Agreement.

H. The Parties agreed to additional services with respect to the Original Agreement in the total amount of $73,500.

I. Paragraph no. 2 “COMPENSATION” of the First Amendment specified that additional services will be performed by Consultant, which increased the total amount of the Original Agreement by $864,687, for a new total amount not to exceed $1,759,687.

J. The Parties agreed to additional services with respect to the Original Agreement and First Amendment in the total amount of $86,500.

K. Paragraph no. 3 “COMPENSATION” of the Second Amendment specified that additional services will be performed by Consultant, which increased the total amount of the Original Agreement by $1,356,773, for a new total amount not to exceed $3,252,137.

L. The Parties agreed to additional services with respect to the Original Agreement and Second Amendment in the total amount of $135,677.

M. Paragraph no. 3 “COMPENSATION” of the Third Amendment specified that additional services will be performed by Consultant, which increased the total amount of the Original Agreement by $246,159.50, for a new total amount not to exceed $3,522,912.45.

N. The Parties agreed to additional services with respect to the Third Amendment in the total amount of $24,615.95.
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Sixth Amendment -3- City of Modesto
Interwest Consulting Group, Inc. State Route 132 West Freeway/Expressway Phase 1 Project O. Paragraph no. 3 “COMPENSATION” of the Fourth Amendment specified that additional services will be performed by Consultant, which increased the total amount of the Original Agreement by $195,000.40, for a new total amount not to exceed $3,737,412.89.

P. The Parties agreed to additional services with respect to the Fourth Amendment in the total amount of $19,500.04.

Q. Paragraph no. 3 “COMPENSATION” of the Fifth Amendment specified that additional services will be performed by Consultant, which increased the total amount of the Original Agreement by $177,425, for a new total amount not to exceed $3,959,193.69.

R. The Parties agreed to additional services with respect to the Fourth Amendment in the total amount of $44,356.16.

S. On or about April 13, 2026, Consultant submitted to the City a budget augmentation for additional tasks requested by the City to be added to the Original Agreement, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, and Fifth Amendment related to the State Route 132 West Freeway/Expressway Phase I Project, attached hereto as Exhibit “A-6” and incorporated herein by this reference. Exhibit “A-6” identifies those additional tasks to be performed by Consultant as well as Consultant’s costs for the belowdescribed additional tasks:

1. Caltrans Closeout: $60,501

2. Surplus Land Disposition: $102,500

3. Title Reports: $3,400

4. Primary Appraiser: $22,000

5. Review Appraiser: $7,400

6. ODCs: $4,000
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Sixth Amendment -4- City of Modesto
Interwest Consulting Group, Inc. State Route 132 West Freeway/Expressway Phase 1 Project T. The aforementioned additional tasks increase the total compensation amount of the Original Agreement, and as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, and the Fifth Amendment by $199,801.

U. The parties to this Sixth Amendment to the Original Agreement now understand and agree that it is necessary to modify paragraph no. 1 entitled “SCOPE OF SERVICES” of the Original Agreement, as amended.

V. The parties to this Sixth Amendment to Agreement now understand and agree it is necessary to modify paragraph no. 3 entitled “COMPENSATION” of the Original Agreement, as amended.

NOW, THEREFORE, in consideration of this Sixth Amendment to the Original Agreement, and the mutual promises, covenants, and stipulations contained in the Original Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, and this Sixth Amendment to the Original Agreement, the parties agree as follows:

1. The parties agree that each of the recitals set out above is factually true and correct.

2. Paragraph no. 1 entitled “SCOPE OF SERVICES” of the Original Agreement, including any amendments pertaining thereto, shall be deleted and parties agree to and hereby do substitute the following in its place:
“1. SCOPE OF SERVICES.

Consultant shall undertake and complete the preparation of the scope of work as set forth and described in the documents attached to the Original Agreement and referred to therein as Exhibit “B”. In addition, #10..
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Sixth Amendment -5- City of Modesto
Interwest Consulting Group, Inc. State Route 132 West Freeway/Expressway Phase 1 Project Consultant shall undertake and complete the preparation of the scope of work as set forth and described in the Attachments to the First Amendment, and as set forth and described in the Attachments to the Second Amendment, and as set forth and described in the Attachments to the Third Amendment, and as set forth and described in the Attachments to the Fourth Amendment, and as set forth in Exhibit “A-6” attached to this Sixth Amendment to the Original Agreement for Consultant Services. Exhibit “A-6” is incorporated herein by this reference. The Consultant shall perform all services as required in a manner compatible with the standards of its profession and shall produce a fully complete project acceptable to City.”

3. Paragraph no. 3 entitled “COMPENSATION” of the Original Agreement between the parties shall be deleted and the parties agree to and hereby do substitute the following in its place:
“3. COMPENSATION.

Consultant agrees to perform the work on a time and
materials basis in an amount not to exceed FOUR MILLION ONE

HUNDRED FIFTY-EIGHT THOUSAND NINE HUNDRED
NINETY-FOUR DOLLARS AND 69/100 DOLLARS ($4,158,994.69)
as full remuneration for performing all services and furnishing staffing and materials called for in Exhibit “C” to the Original Agreement, as amended by Attachment “A” (“CPSI – Amended Fee Proposal Worksheet”) to the First Amendment, and Exhibit “A-2” attached to the Second Amendment to #10..
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Sixth Amendment -6- City of Modesto
Interwest Consulting Group, Inc. State Route 132 West Freeway/Expressway Phase 1 Project Agreement, and Exhibit “A-3” attached to the Third Amendment to Agreement, and Exhibit “A-4” attached to this Fourth Amendment to Agreement, and Exhibit “A-5” attached to this Fifth Amendment to Agreement, and Exhibit “A-6” attached to this Sixth Amendment to Agreement.

The compensation shall be paid pursuant to and in the
manner and at the time set forth below:

Professional services received by the City under the Original Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, and this Fifth Amendment to Agreement shall be paid for on a time and materials basis with a not to exceed amount, as called for in Exhibit “C” to the Original Agreement, as amended by Attachment “A” of the First Amendment, and Exhibit “A-2” of the Second Amendment to Agreement, and Exhibit “A-3” of the Third Amendment to Agreement, and Exhibit “A-4” of the Fourth Amendment to Agreement, Exhibit “A-5” of the Fifth Amendment, and Exhibit “A-6” attached to this Sixth Amendment to Agreement. Consultant shall prepare and City agrees to pay Consultant on a time and materials basis for monthly invoices, which include detailed tasks, hours worked, and billable rates for work completed.

Additional services may be authorized by the City Manager in an amount up to, but not to exceed NINETEEN THOUSAND NINE HUNDRED EIGHTY AND 00/100 DOLLARS ($19,980.00). In the
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Sixth Amendment -7- City of Modesto
Interwest Consulting Group, Inc. State Route 132 West Freeway/Expressway Phase 1 Project event that additional services are deemed necessary, the Consultant shall provide a written request to the City Manager indicating the reason for additional work, scope and cost of such work. The City Manager shall provide a written response to the request, either approving or denying the additional expenditure, in whole or in part. If additional services are requested and approved, they will be billed at the hourly rates set forth in Exhibit “A-6” and may not exceed the amount requested and approved in writing by the City Manager. In that event, the new total compensation shall not exceed FOUR MILLION ONE HUNDRED SEVENTY-EIGHT

THOUSAND NINE HUNDRED SEVENTY-FOUR DOLLARS AND
69/100 DOLLARS ($4,178,974.69).

If additional services in excess of this amount are deemed necessary by City Staff, a sixth amendment to the Original Agreement will be required and must be approved by the City Council prior to commencing the work, as provided in Paragraph 9 of the Original Agreement.”

4. Except as herein amended or modified, the provisions of the Original Agreement, First Amendment, Second Amendment, Third Amendment, Fourth Amendment and Fifth Amendment are expressly reaffirmed and remain in full force and effect.
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Sixth Amendment -8- City of Modesto
Interwest Consulting Group, Inc. State Route 132 West Freeway/Expressway Phase 1 Project IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this Sixth Amendment to Agreement for Consultant Services in duplicate by its City Manager and attestation by its City Clerk under authority of Resolution No. 2026-________, adopted by the Council of the City of Modesto on the 12th day of May, 2026, and INTERWEST CONSULTING GROUP, INC. has caused this Sixth Amendment to Agreement to be duly executed in duplicate.
(Signatures on next page)
xx/xx/2026 Approved as to form XX
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April 13, 2026
Toby Wells, Project Manager
City of Modesto
1010 Tenth Street
Modesto, CA 95354
RE: Request to add scope and budget: SR-132 West Freeway/Expressway Project Dear Mr. Wells,
Property Specialists (an Interwest company) is requesting additional budget to add services to the project assignment. The following pages provide a complete budget and detailed scope of work for Sale of Surplus Property and Close-out / Out Grant Services.

Hourly rates are as follows:

Name and Title Billing Rate
Kent Jorgensen, Program Manager $205.00
Amy Betonte, Project Manager $172.86
We are appreciative of the opportunity to continue providing services to the City and the SR-132 project.

Best regards,
Marcella Jorgensen
Director of Real Estate Services
CPSI / Interwest Consulting Group, Inc.
9300 W. Stockton Blvd., Suite 105
Elk Grove, CA 95758
EXHIBIT A-6 #10..
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FEE SCHEDULE
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Scope of Work – Disposition of Surplus Property
Selling land in California that was acquired or improved with federal funds involves complying with both the California Surplus Land Act (SLA) and federal regulations regarding grant-funded property (typically 2 CFR § 200.311). The core requirement is to prioritize affordable housing or public uses and to compensate the federal government for its share of the property's value.

Here are the specific steps:

1. Identify and Declared Land as "Surplus"
• Obtain update Title Policy. Obtain an updated Preliminary Title Report. Review and note any encumbrances that may impact property disposition.
• Determine Property Status. Confirm the land is no longer needed for the program or project originally funded by the federal grant.
• Conduct a physical inspection of the property. For properties with building improvements, assess the physical condition of property, and items of concern.
• Obtain Certificate of Compliance. Before selling surplus land, confirm the property is a legal parcel, by obtaining a Certificate of Compliance (COE) from the local building department, City of County, depending upon specific jurisdiction. Application package for the COE will include a current Grant Deed, written legal description, map of property, documentation of legal access to the property and application fee. • Quality Review. Upon issuance of Certificate of Compliance, verify with the title company, and local agency, the lands permissible use.
• Recording Certificate of Compliance. Before proceeding with the disposition process, the COE will be filed with the County Recorder stating that the parcel was created in accordance with the SLA and local ordinances. This process will ensure the lot is legal and can be sold.

2. Determination of Property Value
• Appraisal. Complete an appraisal to determine fair market value of the property. The potential sale price is generally expected to be at fair market value unless otherwise authorized. • Caltrans/FHWA. If the land involved federal highway funds, obtain Caltrans and FHWA approval before any disposal consideration, particularly for sales below fair market value • Federal Share Requirement. Obtain from the funding source, the expectations for the agencies participation in the original purchase or improvement, based on the current market value or sale proceeds. • Exemption Consideration. Exempt land under the SLA generally includes small parcels (under 0.5 acres not contiguous to other public land), land transferred to other public agencies or tribes, sites for agency operations, and property dedicated for specific public uses like parks. Land determined to be "exempt surplus land" by the City must be verified by HCD that requirements are met. • Resolution. Obtain a resolution from the City of Modesto City Council declaring the land as “surplus land” or “exempt surplus land”.

3. Request Federal Disposition Instructions
• Contact Grantor Agency. Before selling, we will contact Caltrans and FHWA to obtain instructions. • Submit to HCD. If not exempt, the land must be listed in the agency's annual inventory submitted to HCD. • Federal Share Requirement. You must prepare to compensate the federal government for its percentage of participation in the original purchase or improvement, based on the current market value or sale proceeds.

4. Outreach Requirements
• Send Notice of Availability (NOA). A written NOA must be sent to specifically required entities, including affordable housing developers, park/recreation districts, and HCD. • 60-Day Notice Period: These entities have 60 days to respond to the NOA. • 90-Day Good Faith Negotiations. If an eligible entity shows interest, you must enter into 90 days of good faith negotiations.
• Approval by HCD. All dispositions of surplus land must be approved by HCD before the sale can be finalized. For “exempt surplus land” we will notify the California Dept. of Housing and Community Development 30 days before disposition.
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4. Sale and Finalization
• Prioritize Affordable Housing. If multiple entities show interest, priority must be given to projects proposing the greatest number of affordable units.
• Affordability Covenant. If sold for affordable housing, a covenant must be recorded requiring at least 25% of units to be affordable for 55 years (for rentals).
• Open Market Sale. Any open market sale of the surplus property will be conditional upon us confirming that the City has complied with required notification and negotiation procedures with entities such as including affordable housing developers, park/recreation districts, and HCD. The sale is permitted if no affordable housing sponsor or public entity expresses interest during the 60-day notice of availability period, or if 90-day good faith negotiations fail.
• Process: Upon City Council approval, we will use a public bidding process to secure the highest return, which is assumed to be fair market value.
• Affordability Requirement. Even when sold on the open market, the SLA still requires that at least 15% of the total residential units built on the site be sold or rented to lower-income households if 10 or more units are developed.
• Exemptions. Some lands are deemed exempt and can be sold immediately without a public bid, such as small parcels (under 0.5 acres) or land transferred to other public agencies. • Finalize Sale and Repay Federal Funds. Upon closing, the federal share of the proceeds must be returned to the federal agency.
• Closing Requirements. The sale must be finalized, and title transferred typically within 60 days of the agreement.

Scope of Work - Close-Out Activities/Out Grant for State Highway Projects

Interwest will provide close-out activities to encompass the transfer of project acquired land rights to partnered public agencies, coordination of Caltrans related activities will be compliant with the Caltrans Manual requirements that will include documentation for each project parcel, respectively, upon the completion of Right of Way Certification, Joint Use Agreements (JUA) with Caltrans to protect utility rights in Caltrans ROW. In addition, Interwest will provide the following property services to transfer all property rights from the Agency ownership clear of adverse title conditions to Caltrans. To complete these activities Interwest will provide the:

1. Title Guarantees
a. Identifying parcels to provide updates and insurance for title conveyance. b. Clearance of adverse title conditions conducive to providing clear title to Caltrans.

2. Preparation of deed jackets.
a. Coordinate approvals from Caltrans oversight.

3. Preparation of legal description and plats.
a. If project consultants are not able or willing to fulfill project scope. b. Utilizing the prepared landnet used for preparing ROW and appraisal mapping.

4. Coordination with utility surveyors to acquire relocation easements, if needed, for utilities relocated into private land and JUA’s in the projected State right of way (ROW).

5. Parcel Certifications or re-certifications
a. Coordinate with the project team to document all aspects of acquisition, environmental hazards, appraisals and utility relocation and certification.

6. TCE Quit Claim or Extensions
a. Quit Claim interests that have exceeded the time limit stated on the recorded instrument.

7. Processing coordination of deed out grants to State. a. To include parcel certification
b. Needed Title work.

Interwest will maintain an inventory of all documents/items necessary to complete property rights transfers/adverse title clearances and submit to the Project Team/State for approval prior to preparation of deed documentation for concurrence. Upon receiving consensus from all affected Stakeholders, Interwest will prepare and coordinate all documentation and support services to Caltrans to complete close-out services. #10..
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April 13, 2026
Toby Wells, Project Manager
City of Modesto
1010 Tenth Street
Modesto, CA 95354
RE: Request to add scope and budget: SR-132 West Freeway/Expressway Project Dear Mr. Wells,
Property Specialists (an Interwest company) is requesting additional budget to add services to the project assignment. The following pages provide a complete budget and detailed scope of work for Sale of Surplus Property and Close-out / Out Grant Services.

Hourly rates are as follows:

Name and Title Billing Rate
Kent Jorgensen, Program Manager $205.00
Amy Betonte, Project Manager $172.86
We are appreciative of the opportunity to continue providing services to the City and the SR-132 project.

Best regards,
Marcella Jorgensen
Director of Real Estate Services
CPSI / Interwest Consulting Group, Inc.
9300 W. Stockton Blvd., Suite 105
Elk Grove, CA 95758
EXHIBIT A-6 #10..
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FEE SCHEDULE
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Scope of Work – Disposition of Surplus Property
Selling land in California that was acquired or improved with federal funds involves complying with both the California Surplus Land Act (SLA) and federal regulations regarding grant-funded property (typically 2 CFR § 200.311). The core requirement is to prioritize affordable housing or public uses and to compensate the federal government for its share of the property's value.

Here are the specific steps:

1. Identify and Declared Land as "Surplus"
• Obtain update Title Policy. Obtain an updated Preliminary Title Report. Review and note any encumbrances that may impact property disposition.
• Determine Property Status. Confirm the land is no longer needed for the program or project originally funded by the federal grant.
• Conduct a physical inspection of the property. For properties with building improvements, assess the physical condition of property, and items of concern.
• Obtain Certificate of Compliance. Before selling surplus land, confirm the property is a legal parcel, by obtaining a Certificate of Compliance (COE) from the local building department, City of County, depending upon specific jurisdiction. Application package for the COE will include a current Grant Deed, written legal description, map of property, documentation of legal access to the property and application fee. • Quality Review. Upon issuance of Certificate of Compliance, verify with the title company, and local agency, the lands permissible use.
• Recording Certificate of Compliance. Before proceeding with the disposition process, the COE will be filed with the County Recorder stating that the parcel was created in accordance with the SLA and local ordinances. This process will ensure the lot is legal and can be sold.

2. Determination of Property Value
• Appraisal. Complete an appraisal to determine fair market value of the property. The potential sale price is generally expected to be at fair market value unless otherwise authorized. • Caltrans/FHWA. If the land involved federal highway funds, obtain Caltrans and FHWA approval before any disposal consideration, particularly for sales below fair market value • Federal Share Requirement. Obtain from the funding source, the expectations for the agencies participation in the original purchase or improvement, based on the current market value or sale proceeds. • Exemption Consideration. Exempt land under the SLA generally includes small parcels (under 0.5 acres not contiguous to other public land), land transferred to other public agencies or tribes, sites for agency operations, and property dedicated for specific public uses like parks. Land determined to be "exempt surplus land" by the City must be verified by HCD that requirements are met. • Resolution. Obtain a resolution from the City of Modesto City Council declaring the land as “surplus land” or “exempt surplus land”.

3. Request Federal Disposition Instructions
• Contact Grantor Agency. Before selling, we will contact Caltrans and FHWA to obtain instructions. • Submit to HCD. If not exempt, the land must be listed in the agency's annual inventory submitted to HCD. • Federal Share Requirement. You must prepare to compensate the federal government for its percentage of participation in the original purchase or improvement, based on the current market value or sale proceeds.

4. Outreach Requirements
• Send Notice of Availability (NOA). A written NOA must be sent to specifically required entities, including affordable housing developers, park/recreation districts, and HCD. • 60-Day Notice Period: These entities have 60 days to respond to the NOA. • 90-Day Good Faith Negotiations. If an eligible entity shows interest, you must enter into 90 days of good faith negotiations.
• Approval by HCD. All dispositions of surplus land must be approved by HCD before the sale can be finalized. For “exempt surplus land” we will notify the California Dept. of Housing and Community Development 30 days before disposition.
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4. Sale and Finalization
• Prioritize Affordable Housing. If multiple entities show interest, priority must be given to projects proposing the greatest number of affordable units.
• Affordability Covenant. If sold for affordable housing, a covenant must be recorded requiring at least 25% of units to be affordable for 55 years (for rentals).
• Open Market Sale. Any open market sale of the surplus property will be conditional upon us confirming that the City has complied with required notification and negotiation procedures with entities such as including affordable housing developers, park/recreation districts, and HCD. The sale is permitted if no affordable housing sponsor or public entity expresses interest during the 60-day notice of availability period, or if 90-day good faith negotiations fail.
• Process: Upon City Council approval, we will use a public bidding process to secure the highest return, which is assumed to be fair market value.
• Affordability Requirement. Even when sold on the open market, the SLA still requires that at least 15% of the total residential units built on the site be sold or rented to lower-income households if 10 or more units are developed.
• Exemptions. Some lands are deemed exempt and can be sold immediately without a public bid, such as small parcels (under 0.5 acres) or land transferred to other public agencies. • Finalize Sale and Repay Federal Funds. Upon closing, the federal share of the proceeds must be returned to the federal agency.
• Closing Requirements. The sale must be finalized, and title transferred typically within 60 days of the agreement.

Scope of Work - Close-Out Activities/Out Grant for State Highway Projects

Interwest will provide close-out activities to encompass the transfer of project acquired land rights to partnered public agencies, coordination of Caltrans related activities will be compliant with the Caltrans Manual requirements that will include documentation for each project parcel, respectively, upon the completion of Right of Way Certification, Joint Use Agreements (JUA) with Caltrans to protect utility rights in Caltrans ROW. In addition, Interwest will provide the following property services to transfer all property rights from the Agency ownership clear of adverse title conditions to Caltrans. To complete these activities Interwest will provide the:

1. Title Guarantees
a. Identifying parcels to provide updates and insurance for title conveyance. b. Clearance of adverse title conditions conducive to providing clear title to Caltrans.

2. Preparation of deed jackets.
a. Coordinate approvals from Caltrans oversight.

3. Preparation of legal description and plats.
a. If project consultants are not able or willing to fulfill project scope. b. Utilizing the prepared landnet used for preparing ROW and appraisal mapping.

4. Coordination with utility surveyors to acquire relocation easements, if needed, for utilities relocated into private land and JUA’s in the projected State right of way (ROW).

5. Parcel Certifications or re-certifications
a. Coordinate with the project team to document all aspects of acquisition, environmental hazards, appraisals and utility relocation and certification.

6. TCE Quit Claim or Extensions
a. Quit Claim interests that have exceeded the time limit stated on the recorded instrument.

7. Processing coordination of deed out grants to State. a. To include parcel certification
b. Needed Title work.

Interwest will maintain an inventory of all documents/items necessary to complete property rights transfers/adverse title clearances and submit to the Project Team/State for approval prior to preparation of deed documentation for concurrence. Upon receiving consensus from all affected Stakeholders, Interwest will prepare and coordinate all documentation and support services to Caltrans to complete close-out services. #10..
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Prepared by: Property Specialists, Inc.

OH Rate Total
$72.12 $50.48 $43.27 $40.87 $33.65 0.9810 0.100
Task
No. Description
Project
Manager
Sr Acq/Rel
Agent
Acquisition
Agent
Relocation
Agent
Project
Coordinator Hour Totals
Original
Direct
Labor Costs
Revised
Direct Labor
Costs
ODC / Pass
Through
Costs
Fully
Burdened
Cost -

ORIGINAL
BUDGET
Fully
Burdened
Cost - NEW
BUDGET
Cost Increase
+ Amendment
Request
Reason for Increase in Budget

1.0 PROJECT MANAGEMENT Owners and displacement count doubled. Brett Paulson is providing additional program support.

1.1 City Meetings 300 300 $9,346 $21,635 $20,366 $47,144 $26,778 Due to sensitivity of project, delayed environmental, and the need to be more involved with the City and stakeholders, CPSI managers must participate as needed to ensure project delivery, schedule adherence, public relations management, etc.

1.2 Status Reports 48 96 144 $3,346 $6,692 $7,292 $14,583 $7,291 Additional reporting data has been required due to the unusual project delivery parameters and separate funding schedules.

1.3 Prepare ROW Management Plan 180 180 $1,731 $12,981 $3,772 $28,286 $24,514 CPSI's original budget assumed environmental, project design, and funding sources were static. Considering the volitilty, environmental delays, funding issues, and need for a Cert 3, significant planning modifications will be necessary as issues arise.

1.4 PDT Meetings 96 96 $2,942 $6,923 $6,412 $15,086 $8,674 City has requested for the Project Manager to attend additional reoccurring meetings.

1.5 Prepare/Review Project Documents 144 144 $3,490 $10,385 $7,606 $22,629 $15,023 With the case count increase, appraisal, acquisition and relocation activities under a unique schedule and the additional involvement with stakeholders, additional documents and revisions are well above the norm.

1.6 Scheduling 48 48 $2,135 $3,462 $4,652 $7,543 $2,891 Schedule is evolving on a daily basis due to delayed EIR, late design changes, and funding restrictions. Manpower is necessary to stay on top of these changes to ensure project delivery.

1.7 QA/QC Management 48 48 $1,731 $3,462 $3,772 $7,543 $3,771 Splitting project phasing due to funding restrictions, and design changes, requires additional coordination with Caltrans and City Legaal. Planning for Cert 3 will require additional QA/QC work.

1.8 Prepare Caltrans Certification 80 20 20 120 $3,726 $7,452 $8,119 $16,238 $8,119 Certification 3 work around and the additional documentation and communication with Caltrans requires additional manhours.

1.9 Project Close Out 20 40 24 12 24 120 $2,899 $5,798 $6,317 $12,635 $6,318 Close-out work will be significantly more due to Cert 3 and case increase.

1.10 Additional Program Support 1080 1080 $0 $77,885 $0 $169,718 $169,718 Quality Manager is working with Dokken and assisting with right of way analysis during design. Delivery Manager will need to provide expertise to accelarate project deliverables before E-76, after E-76, and achieve Cert 3 submssion by November 2018.

ODCs (mileage, postage) $2,500
Hours Subtotal: 2044 60 24 12 140 2280 536
Cost Subtotal: $147,404 $3,029 $1,038 $490 $4,712 $31,346 $156,673 $2,500 $68,308

2.0 RELOCATION PLAN Displacements increased from 10 businesses to 22 relocations

2.1 Complete Interviews 40 24 64 $817 $3,865 $1,781 $8,423 $6,642 Displacements have increased from 10 to 22.

2.2 Write Draft Relocation Plan 40 20 60 $2,570 $3,558 $5,600 $7,753 $2,153 Original budget had no residential displacements. Now, there are potentially 11 residental displacements, pending final design impacts.

2.3 Final Relocation Plan 8 8 $577 $577 $1,257 $1,257 $0 No Increase.

ODCs (mileage, postage) $500
Mileage and postage increased due to a 300% increase in potential displacements, phased funding requirements and splitting of case assignments.

Hours Subtotal: 88 0 0 24 20 132 77
Cost Subtotal: $6,346 $0 $0 $981 $673 $3,964 $8,000 $500 $8,638

3.0 ACQUISITION Scope of work increased from 39 parcel with 24 separate ownerships to 54 parcels with 47 separate ownerships.

3.1 Review Title Reports 14 66 66 146 $3,858 $6,563 $8,407 $14,300 $5,893 Parcels have been removed and added to project scope, after 30% design review.

3.2a Phase I Rincon 0 $0 $0 $64,000 $0 $0 $0 Original budget did not include environmental work since the RFP said it was done.

3.2b Phase II - anticipate 32 properties $0 $0 $312,434 $0 $0 $0 Original budget did not include environmental work since the RFP said it was done.

3.3 Appraisal Inspection 10 80 60 150 $4,385 $7,356 $9,555 $16,029 $6,474 Due to the public sensitivity of project, CPSI must attend all inspections.

3.4a Obtain Appraisals (Fee & Review) 50 10 60 $1,904 $2,957 $240,000 $4,149 $6,443 $2,294 Anticipate appraisals or valuation on up to 42 parcels.

3.5 QA/QC Appraisal Reports 60 60 18 138 $3,808 $8,135 $8,297 $17,726 $9,429 The number of reports have doubled due to separate ownerships on revised design.

3.6 Offer Letter 12 60 30 60 162 $4,183 $7,212 $9,115 $15,715 $6,600 Offer letter and documents are not standard. There are now less parcels owned by the same owner, increasing offer package counts.

3.7 Acquisition Negotiations/Settlements 80 400 300 120 900 $33,216 $42,981 $72,382 $93,659 $21,277 Project parameters have become difficult due to schedule and funding. More owner contacts will be necessary.

3.8 Complete Acquisition Documents 12 60 30 60 162 $5,697 $7,212 $12,415 $15,715 $3,300 Increase case number requires more manpower on document preparation.

3.9 Monitor Escrows 40 100 50 190 $6,656 $8,029 $14,505 $17,496 $2,991 Increase case number requires more manpower on escrow coordination work.

3.10 File & Database Administration 60 132 60 265 517 $14,337 $22,505 $31,241 $49,040 $17,799 Additional time must be spent due to an almost "design-bid" approach, number of changes being made to design, affect data, and urgency to keep the system current.

3.11 Project Team Meetings 150 80 80 80 390 $9,577 $21,010 $20,869 $45,782 $24,913 With project sensitivity and a consolidated schedule, additional meetings are required.

3.12 Close Out Acquisition File 20 60 30 60 170 $6,873 $7,788 $14,976 $16,972 $1,996 Additional cases and probobility of needing a Cert 3 will require more oversight.

ODCs (mileage, postage) $2,500
Additional field visits during planning verses condensed acquisition phase equates to an increase in mileage cost.

Hours Subtotal: 418 1088 718 0 761 2985 2004
Cost Subtotal: $30,144 $54,923 $31,067 $0 $25,611 $94,493 $141,745 $618,934 $205,911

4.0 RESIDENTIAL RELOCATION Residential displacements went for none to five residental housing displacements.

4.1 Conduct Displacee Interviews 20 44 64 $0 $2,808 $0 $6,118 $6,118

4.2 General Informational Notices 22 22 $0 $899 $0 $1,959 $1,959

4.3 Market Study 20 40 60 $0 $2,644 $0 $5,762 $5,762

4.4 Relocation Advisory Services 90 180 270 $0 $11,899 $0 $25,929 $25,929

4.5 Prepare PPD/RAP Entitlements 22 28 50 $0 $2,255 $0 $4,913 $4,913

4.6 Process Relocation Claims 44 44 $0 $1,798 $0 $3,918 $3,918

4.7 Close Out Relocation Files 11 22 33 $0 $1,454 $0 $3,169 $3,169

4.8 Property Management Oversight 40 240 40 320 $0 $16,346 $0 $35,620 $35,620 CPSI's original budget had no property management. Services are necessary for rent collection, maintenance, and property clearance activities.

ODCs (mileage, postage) $4,000
Hours Subtotal: 40 403 0 380 0 543 0
Cost Subtotal: $2,885 $20,344 $0 $15,529 $0 $0 $40,103 $4,000 $0

5.0 BUSINESS RELOCATION Displacements increased from 10 businesses to 17 business relocations.

5.1 Conduct Displacee Interviews 40 20 60 $2,861 $2,837 $6,233 $6,181 -$52

5.2 Relocation Payment Eligibility 80 20 100 $5,313 $4,856 $11,576 $10,581 -$995

5.3 Identify Displacee Needs 80 40 120 $4,279 $5,673 $9,324 $12,362 $3,038

5.4 FF&E and Goodwilll Appraisals 20 20 $1,587 $1,010 $40,000 $3,457 $2,200 -$1,257 FF&E appraisals were reduced after our site visits determined them not necessary.

More oversight wil be needed to address personal property within actual relocation.

5.5 Relocation Advisory Services 400 400 $27,404 $20,192 $59,716 $44,001 -$15,715

5.6 Provide Replacement Sites 80 240 320 $13,846 $13,846 $30,172 $30,172 $0

5.7 Process Relocation Claims 40 40 80 160 $4,615 $6,346 $10,057 $13,829 $3,772

5.8 Close Out Relocation Files 40 40 20 100 $3,606 $4,327 $7,857 $9,429 $1,572 Additional case count requires additional file to be closed.

5.9 Property Management Oversight 80 240 80 400 $0 $20,577 $0 $44,839 $44,839 CPSI's original budget had no property management. Services are necessary for rent collection, maintenance, and property clearance activities.

ODCs (mileage, postage) $5,000
Significant number of site visits will be required to coordinate the move under E76 delivery date and clearance date projections.

Hours Subtotal: 80 1020 0 400 180 1280 1198
Cost Subtotal: $5,769 $51,490 $0 $16,346 $6,058 $63,510 $79,663 $45,000 $138,392 Hours Totals: 2670 2571 742 816 1101 7900 3815
Direct Labor, Expenses Totals: $192,548 $129,786 $32,106 $33,346 $37,053 $426,185 $670,934 $928,700 ODC $670,934
CONTRACT SUMMARY TOTAL $1,599,634
Total Direct Labor Cost: $426,185
TotalOverhead (Indirect) Cost: $418,088
Total Fee (Profit): $84,427
Sub Total: $928,700
Total Direct Expenses: $670,934 (pass-thru cost)
Total Contract Cost: $1,599,634
Existing Contract $734,947.00
Additional Funds Request $864,687
PROPERTY SPECIALISTS, INC. (CPSI) - AMENDED FEE PROPOSAL WORKSHEET MODESTO SR-132 WEST FREEWAY/EXPRESSWAY PROJECT
Actual Hourly Rate Per Exhibit 10-H
Tasks Human Resources (Hours)
Original budget and impacts to properties did not require residential relocations.

Displacement numbers and ability to relocate on a very tight scheulde to ensure Cert 3 work around will be viable and will require additional manpower.

The partial acquisition on the Melton and Olmsted property adds at least 7 impacted units when building is cut and refaced to accommodate right of way requirements.

The partial acquisition on the Melton and Olmsted property adds at least 7 impacted units when building is cut and refaced to accommodate right of way requirements. #10..

P R O P E R T Y S P E C I A L I S T S , I N C . ( C P S I ) 1 1 1 1 J S t r e e t , S u i t e M - 1 0 9 | M o d e s t o , C a l i f o r n i a 9 5 3 5 4 ( 2 0 9 ) 2 2 2 - 6 9 8 2 | w w w . c p s i - r o w . c o m February 2, 2018
City of Modesto
Attn: John Rawles, Project Manager
1010 Tenth Street, Suite 3100
Modesto, CA 95353
Revised CPSI Budget: SR-132 West Freeway/Expressway Phase I Project Dear John,
CPSI is requesting an amended budget to address the increased scope of work and modifications to the project. The original contract ($735,000) was based on preliminary designs (prepared by Jacobs Engineering). As Dokken Engineering made improvements to the design, CPSI’s responsibilities significantly increased. We have prepared the attached revised overall budget for the anticipated work, which details our request for an additional $864,687 (including $376,434 in pass-through fees for the required environmental services). In addition, we have included a list of the updated parcels. CPSI’s amended budget is a result of the following two major modifications to the project and scope of work, including:

1. Environmental Requirements:
• Hazardous Materials Disclosure Document (HMDD)
Per Caltrans requirements, each parcel must be analyzed to properly complete an HMDD.

This document serves to notify Caltrans which parcels are environmentally cleared for transfer and which parcels have environmental issues preventing them from being acquired. The HMDD cannot be completed without completing Phase I and Phase II Environmental Site Assessments (ESAs). Because Phase I and Phase II ESAs, site inspections and applicable testing have not been completed, the HMDD cannot be completed, and therefore, Caltrans will not accept the transfer of any properties. • Environmental Analysis in the Original PAED Document
The PAED document concentrated on a program-specific approach, stock pilings and commercial parcels east of the 99 Freeway. Caltrans requires that Environmental Site Assessments be based on individual site assessments and will not accept the programspecific approach that was originally completed. As a result, 42 parcels need environmental site assessment work before the acquisition process can be completed. • Standard Practice for Environmental Analysis in PS&E
During the acquisition phase, it is standard for Phase I and Phase II Environmental Site Assessments to be completed alongside the appraisal process. This is also the standard practice with Caltrans. As is the case with this project, Phase I and Phase II ESAs are not normally completed during the PAED phase of the project. • Increased Budget for Environmental Analysis
With the mandatory requirement to complete Phase I and Phase II ESAs, CPSI will include a subconsultant to complete the work. The cost associated with the environmental assessment is $376,434. All environmental fees will be billed as a straight pass-through cost with no mark-up.
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PAGE 2

2. Updated Design:

The original Jacobs design reflected 39 parcels with 24 property owners. Because of Dokken’s updated design, which varies considerably from Jacob’s design, the total parcel count increased to 56 with a total of 49 property owners. Additionally, there are approximately 21 residential and business relocations. The original Jacobs design resulted in 10 relocations, but the number has more than doubled based on the latest design.

In addition to the resources needed for field production work, CPSI’s Project Manager has and will need to continue to provide a substantial amount of project management support services to the stakeholder involved with this project. CPSI’s original proposal was prepared with the assumption of getting environmental approval by the end of 2017, allowing a traditional appraisal and acquisition process spread over 14 to 16 months. With the EIR and Caltrans approval process (E-76) being delayed at least four additional months, CPSI’s Project Manager will need to spend additional resources to develop strategies, work with applicable stakeholders, and oversee the environmental process. Without the resources outlined above, this project cannot be delivered as scheduled and the acquired parcels will not be accepted into Caltrans’ highway system.

The following is a summary of the costs associated with the additional work:

Original New Increase
CPSI (Labor) $421,247 $928,700 $507,453
Pass-Through $313,700 $670,934 $357,234 (Appraisal, Environmental) Total $734,947 $1,599,634 $864,687
Please let me know if you have any questions or require additional information.

Sincerely,
Kent Jorgensen
Delivery Manager
(949) 299-5306
[email protected]
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PAGE 3
REVISED PARCELS: SR-132 WEST FREEWAY/EXPRESSWAY PHASE I PROJECT Acquisition Type Total Map Numbers
Full Acquisitions 4 96, 83, 84, 85
Partial Acquisitions 24 4, 5, 17, 18, 19, 95, 20, 21, 25, 26, 27, 28, 29, 30, 31, 32, 33, 35, 65, 66, 70, 74, 86, TBD (16 or 24)
Full/Partial Acquisitions 4 22, 67, 71, 23
TCE Only 12 99, 97, 100, 101, 47, 48, 49, 63, 64, 72, 73, 88 Permit to Enter (PTE) 8 9, 10, 11, 12, 13, 14, 15, 93
MID 4 102, 103, 104, 105
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EXHIBIT A-3 5/13/2020
INTERWEST CONSULTING GROUP, INC. (AKA CPSI)
AGREEMENT FOR PROPERTY MANAGEMENT SERVICES FOR STATE ROUTE 132 WEST FREEWAY/EXPRESSWAY - PHASE 1 PROJECT
AUTHORIZED ORIGINAL BASE AGREEMENT: $735,000.00 Council approved 8/8/17 ADDITIONAL SERVICES, IF NEEDED: $73,500.00 CM Signed 2/14/18 TOTAL COMPENSATION: $808,500.00
AUTHORIZED FIRST AMENDMENT: $864,687.00 Council approved 2/27/18 ADDITIONAL SERVICES, IF NEEDED: $86,500.00 CM Signed 10/16/18 TOTAL COMPENSATION: $951,187.00
AUTHORIZED SECOND AMENDMENT: $1,356,773.00 Council approved 11/27/18 ADDITIONAL SERVICES, IF NEEDED: $135,677.00 CM Signed
TOTAL COMPENSATION: $1,492,450.00
AUTHORIZED THIRD AMENDMENT: $246,159.50 Council approved TBD ADDITIONAL SERVICES, IF NEEDED: $24,615.95
TOTAL COMPENSATION: $270,775.45
NEW TOTAL COMPENSATION: $3,522,912.45
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EXHIBIT A-3 5/13/2020
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Avner Alkhas, Chief Financial Officer
Thomas G. Brackett, CEO
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 13, 2026
TO: Mayor and City Council

THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Fiscal Year 2024-2025 Auditor’s Report on Compliance of the Measure L:

Local Roads First Transportation Funding Measure
CONTACT: Maria Garnica, Accounting Manager
[email protected], 209-577-5249
DESCRIPTION:

Consider approving the Auditors’ Reports and Schedule of Measure L Program Revenues and Expenditures for Fiscal Year Ended June 30, 2025. (Funding Source:

Not Applicable)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

In November of 2016, the voters of Stanislaus County approved of the county wide, 25- year, half-cent sales tax increase known as Measure L. As part of the safeguards built into the expenditure plan, an annual independent audit and annual reporting must be completed. On page 8 of the expenditure plan, the ordinance states “Annual fiscal and compliance audits will be conducted by a CPA, to assure that the revenues expended are necessary and reasonable.” The ordinance also requires an audit annually to ensure that administrative expenses were no more than 1% of revenues expended and that the jurisdiction meets its maintenance of effort.

On December 12, 2017, per Resolution 2017-505, Council approved the Measure L Master Funding Agreement with the Stanislaus Council of Governments (StanCOG) #11..
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City Council, May 12, 2026
Fiscal Year 2024-2025 Auditor’s Report on Compliance of the Measure L: Local Roads First Transportation Funding Measure