Agenda packet — Finance Committee, June 22, 2026 (part 3 of 4)

Bulk oils and lubricants used at these facilities are purchased on an as-needed basis throughout the year from annual purchase agreements. Annual agreements take advantage of economies of scale, by combining department volumes for long-term procurement commitments with various suppliers.

On November 4, 2020, under Resolution 2020-462, City Council approved the award of Request for Bid and an Agreement for bulk oils and lubricants to Hunt & Sons, Inc. of Modesto, California, for the total amount not to exceed $486,602 over five (5) years.

On September 14, 2021, by Resolution No. 2021- 365, Hunt & Sons, Inc. entered into a First Amendment to the Agreement with the City of Modesto to provide bulk oils and lubricants for the City of Modesto Fleet Services Division to increase the amount by $456,599 from $486,602 to a new total amount $943,201.

On August 19, 2025, the City Manager approved a Second Amendment for the purchase of Bulk Oils and Lubricants with Hunt & Sons Inc., Ceres, CA, to increase the amount by $800,000 to a new total amount of $1,743,201 over the remaining duration of the agreement. This amendment will expire on June 30, 2026.

DISCUSSION:

The City will utilize other public agencies’ bidding processes to streamline the procurement process especially when the bidding process of these public agencies aligns with the City of Modesto bidding requirements. The competitive process is continually refined to best meet agency needs and allows other government agencies to offer exceptional products from nationally acclaimed vendors.

On February 9, 2025, the City Manager authorized the Purchasing Manager to solicit the procurement for Bulk Oil and Lubricants.

Hunt Oil of California
On March 1, 2025, City of Vallejo, CA issued a Request for Proposal (RFP) under Agreement #26PW016 for Supply Fuel and Petroleum Products on their public bidding portal, PlanetBids. On April 3, 2025, proposals were opened at City of Vallejo City Hall.

Six (6) proposals were received, and one (1) was a local vendor within Stanislaus County and based on the scoring criteria outlined in the RFP, Hunt Oil of California was awarded for this commodity. The evaluation criteria were based on description of products and services, pricing and terms, background and experience, other considerations and incentives. Based on the responsive and responsible proposer offering the highest scoring criteria, City staff recommends to award to Hunt Oil of California to purchase Bulk Oil and Lubricants for a two (2) year agreement with three (3) one-year extension options for an estimated annual amount of $300,000 and a total amount not to exceed $1,500,000 over five (5) years.

SC Fuels
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Finance Committee, June 22, 2026
Bulk Oil and Lubricants Agreements

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On June 22, 2023, City of Visalia, CA issued a Request for Bids (RFB) under RFB 22- 23-57 for Supply Fuel and Petroleum Products on their public bidding portal BidNet Direct). On July 20, 2023, bids were opened at City of Visalia location. Five (5) prospective bidders downloaded the bid. Three (3) bids were received, and none were local vendors or within Stanislaus County and based on the lowest bid, SC Fuels was awarded for this commodity. Based on the lowest responsive and responsible bid, City staff recommends to award to SC Fuel to purchase Bulk Oil and Lubricants for two (2) year agreement with three (3) one-year extension options for an estimated annual amount of $150,000 and total amount not to exceed $750,000 over five (5) years.

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(d) “Where the Purchasing Manager, in her discretion, determines that a process other than the formal bid procedure set for in Section 8-3.203 will result in a procurement for the City at the lowest possible cost commensurate with the desired quality.” In addition, MMC 8-3.202(h) encourages the Purchasing Manager to join with the State of California or other units of government in cooperative purchasing plans when the best cost savings interest of the City would be served. Based on these requirements, both Hunt Oil of California and SC Fuels were awarded utilizing a competitive bidding process through other government agencies.

FISCAL IMPACT:

The Bulk Oil and Lubricants for these Agreements are funded through the Fleet Fund and allocated to all City departments that are assigned City vehicles. Below is the five (5) year spending history with the current agreement with Hunt Oil of California.

Below is the breakdown of the Proposed new Agreement for the five (5) year term.

Term
Hunt Oil of
California SC Fuels Total
Year 1 $ 300,000 $ 150,000 $ 450,000
Year 2 $ 300,000 $ 150,000 $ 450,000
Year 3 $ 300,000 $ 150,000 $ 450,000
Year 4 $ 300,000 $ 150,000 $ 450,000
Agreement Term Annual Spend
Year 1 $ 160,060
Year 2 $ 245,953
Year 3 $ 312,727
Year 4 $ 398,799
Year 5 $ 361,718
Year 6 $ 174,380
TOTAL $ 1,653,637
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Finance Committee, June 22, 2026
Bulk Oil and Lubricants Agreements

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Year 5 $ 300,000 $ 150,000 $ 450,000
Total $ 1,500,000 $ 750,000 $ 2,250,000
CEQA/NEPA REQUIREMENTS:

This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the Competitive Bidding Process from City of Vallejo with Hunt Oil of California, Modesto, CA and the Competitive Bidding Process from City of Visalia with SC Fuels for Bulk Oil and Lubricants for two (2) year Agreement with three (3) oneyear extension options, for an estimated combined annual amount $450,000, and a total combined amount not to exceed $2,250,000 over five (5) years; and forwarding to Council for approval.

Approved by:

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

1. Draft Agreement – SC Fuels

2. Draft Agreement – Hunt Oil of California

3. Exhibit B – SC Fuels

4. Exhibit B – Hunt Oil of California

5. Exhibit C – City of Visalia RFB – SC Fuels

6. Exhibit C – Hunt Oil of California

7. Cost Abstract – SC Fuels

8. Cost Abstract – Hunt Oil

9. FID – Hunt Oil of California

10.CA Levine Act – Hunt Oil of California

11.FID – SC Fuels
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Bulk Oil and Lubricants Agreements

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12.CA Levine Act – SC Fuels

13.Exhibit D – SC Fuels Pricing

14.Exhibit D – Hunt Oil Pricing
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1 ANNUAL PURCHASE AGREEMENT
BULK OIL & LUBRICANTS - AGREEMENT #284309
This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 20___, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Southern Counties Oil Company dba SC Fuels, a California limited liability company, hereinafter called VENDOR, WHEREAS, the Modesto City Council adopted Resolution No. 202____ - ______ authorizing the Award of Bid and agreement for the Bulk Oil & Lubricants materials, supplies or equipment described herein (the “GOODS”) to VENDOR, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the VENDOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and VENDOR shall enter into an agreement for the Bulk Oil & Lubricants as described in RFB 22-23-57, attached hereto as Exhibit “C” and made a part hereof, and NOW, THEREFORE, the parties hereto mutually agree as follows:

1. TERM OF AGREEMENT:

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

Year 1: JULY 15, 2026, through JULY 14, 2027
Year 2: JULY 15, 2027, through JULY 14, 2028
Year 3: JULY 15, 2028, through JULY 14, 2029
Year 4: JULY 15, 2029, through JULY 14, 2030
Year 5: JULY 15, 2030, through JULY 14, 2031
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2 2. PRICING:

A. Per the aforementioned Council Resolution, the annual estimated amount of the AGREEMENT is $150,000. The total amount paid by CITY to VENDOR over the full term of the AGREEMENT shall not exceed $750,000.

B. The AGREEMENT pricing is attached hereto as Exhibit D. Pricing during AGREEMENT Year one and two shall be as set forth in Exhibit D, attached hereto and made a part hereof by this reference.

C. The CITY and VENDOR may agree to update the products and prices contained in Exhibit D to add, remove, or substitute items, or change pricing. All changes shall be in writing and approved by the Finance Director.

D. Pricing shall remain firm for the two (2) years of the AGREEMENT.

E. Price increases for each subsequent AGREEMENT years three, four, and five, shall be negotiated in good faith by the parties, but in no instance may exceed the net percentage increase during the prior 12-month period in the Federal Bureau of Labor Statistics’ Consumer Price Index (CPI) for West Urban Area. Requests for price increases in any renewal year shall be submitted by VENDOR in writing at least ninety (90) days prior to the annual anniversary date of the AGREEMENT.

3. USAGE:

Vendor shall provide whatever quantities may be required during the term of this Agreement. No minimum or maximum quantities are guaranteed or implied by CITY.

4. ORDERING:

Vendor shall deliver GOODS to the location specified within CITY’s purchase order. Unless specified by the Purchasing Division, no GOODS may be delivered to CITY unless a purchase order has been provided by CITY to VENDOR.

5. PAYMENT:

All invoices shall be paid in full by CITY after completion and acceptance of the GOODS by the City, and receipt of a properly prepared invoice submitted by VENDOR via email to [email protected]. As specified by the Purchasing Division, every invoice must reference this AGREEMENT number or CITY’s purchase order number. VENDOR will be paid by CITY via Net 45 Days via manual check.

6. AMENDMENTS:

No changes to this AGREEMENT shall be effective unless documented by a written amendment to this AGREEMENT and signed by the parties hereto with CITY represented by the Purchasing Division. #6..
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3 7. TERMINATION:

A. In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the non-performance.

Within thirty (30) days after receipt of notification, the breaching party shall correct any nonperformance to the reasonable satisfaction of the non-breaching party. Failure to correct any nonperformance shall allow the non-breaching party to terminate this AGREEMENT for cause.

B. CITY may terminate this AGREEMENT for convenience upon thirty (30) days prior notice to VENDOR by CITY’s authorized employee.

8. INSPECTION:

All GOODS are subject to inspection and testing by the CITY for compliance with specifications as included herein, within a reasonable time after delivery. In the event GOODS are defective or not in conformity with this AGREEMENT or CITY’s purchase order, the CITY shall have the right to either reject the GOODS or require correction. Defective articles or services shall be removed from CITY premises and/or corrected by and at the expense of VENDOR; provided that should the VENDOR fail, neglect or refuse to do so, the CITY shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding quantity of any such items. CITY may deduct from any moneys due or that may there after coming due to VENDOR or send an invoice to the VENDOR which shall be paid within thirty (30) days, the difference between the prices named in the contract or purchase order and the actual cost thereof to the CITY. In the event that the VENDOR fails to make prompt delivery as specified for any item, the same conditions as to the rights of the CITY to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government. Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the Bidder. Failure by CITY to inspect and accept or reject shall not relieve the VENDOR from responsibility for compliance with specifications. Final acceptance shall be conclusive except as regards to latent defects, fraud, or such gross mistakes as amount to fraud.

9. RESPONSIBILITY:

Unless otherwise specified, the VENDOR shall be responsible for all GOODS until delivered at CITY’s designated delivery point and shall bear all risks as to items rejected or requiring correction after notice of such rejection or correction is given.

10. SHIPMENT:

Unless otherwise authorized by CITY’s Purchasing Division, GOODS shall be delivered F.O.B.

Destination Freight Prepaid and Included in Price of GOODS. VENDOR may not collect freight collect or charge shipping expenses otherwise to CITY. Original receipted freight bill must accompany the invoice. Shipment must be made within the time stated on Purchase Order, failing which CITY reserves the right to purchase elsewhere and charge VENDOR with any loss incurred, unless delay in making shipment is due to unforeseeable causes beyond the control and without the fault or negligence of VENDOR.
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4 11. CHANGES:

The AGREEMENT or purchase order may at any time, by written order of the CITY, be changed in regard to the GOODS to be furnished, quantities ordered, unit price, discount, delivery point or arrangements, terms or any other matters affecting a valid purchase order or AGREEMENT. In the event such change causes an increase or decrease in the cost of performance hereunder, and equitable adjustment will be made for the cost thereof, subject to the approval of the Purchasing Manager, and written notice given, therefore.

12. WARRANTY:

Notwithstanding any other provisions of the purchase order, VENDOR warranties for the GOODS shall extend for 90 days after delivery thereof to CITY, shall meet or exceed all original manufacturer warranties, and that GOODS shall be of the most suitable grade as specified in this AGREEMENT, VENDOR’s own marketing materials and in the purchase order. Moreover, VENDOR warrants and represents that GOODS shall comply with warranties of merchantability and fitness for a particular purpose. If a defect is discovered in any GOODS covered in this AGREEMENT, VENDOR shall correct at its expense, including transportation/freight, such defects as are reported within one year of final acceptance.

13. INSURANCE:

Any AGREEMENT or purchase order where work, maintenance, or service is performed on CITY property requires appropriate insurance. VENDOR shall ensure proper insurance certificates are on file with the CITY prior to performing onsite work. Contact CITY’s Purchasing Division to verify the type of insurance required.

14. TAX EXEMPTIONS:

The CITY is exempt from payment of federal excise tax. All invoices shall be exclusive of such excise tax. Moreover, if the CITY’s purchase is not subject to sales tax, the statement for resale will appear in the body of the purchase order.

15. INDEMNITIES:

A. VENDOR agrees to protect, indemnify and save harmless CITY and its agents, officers, employees, and volunteers from any claim, loss or damage from VENDOR’s, or the GOODs’, infringement of trademarks, patents, copyrights and unfair competition action with to any third party.

B. VENDOR shall hold the CITY and its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of VENDOR, or its agents, officers, employees, or subcontractors relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active #6..
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5 negligence of the CITY. VENDOR’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement for VENDOR to procure and maintain a policy of insurance VENDOR.

16. GOVERNING LAW:

This AGREEMENT shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, U.S.A., without giving effect to its conflicts of law provisions or principles.

17. VENUE:

Venue for any dispute or claim arising or related to this AGREEMENT its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California.

18. ATTORNEY'S FEES:

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

19. LIMITATION OF LIABILITY:

The CITY shall not be responsible for any damage that may accrue by reason of the death or injury of the person of the VENDOR’s officers, agents, employees, invitees, or licensees, or be set up at any time because of personal injury or damage to property sustained by any other person or persons, which may have been caused or contributed to, approximately or remotely, by reason of or in the course of performance of the AGREEMENT. The VENDOR shall assume full responsibility for the defense of any claims arising under the AGREEMENT and the VENDOR shall save, keep, and bear harmless the CITY, all officers and employees thereof, from all damages, costs, or expenses because of personal injury or property damage based on the performance of this AGREEMENT or asserted against it.

20. NOTICES:

Any notice, payment or instrument required or permitted by this AGREEMENT to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:
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6 VENDOR: SC Fuels
Attention: Jake Loveland
237 E. Whitmore Avenue
Modesto, CA 95358
(888) 723-8357
[email protected]
CITY: City of Modesto
Purchasing Division
Attention: Kim Presson
P.O. Box 642
Modesto, CA 95353
(209) 577-5405 [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

21. ASSIGNMENT:

Neither this AGREEMENT nor any portion hereof shall be subcontracted or assigned without the written consent of the CITY in each and every instance.

22. MISCELLANEOUS:

Time is of the essence in each and every provision of this AGREEMENT.

23. ENTIRE AGREEMENT:

This AGREEMENT and its exhibits contain the entire understanding between VENDOR and CITY.

Additional or new terms contained in this AGREEMENT which vary from VENDOR’S bid are controlling and are deemed accepted by VENDOR by provision of any GOODS or other commencement of performance hereunder. The terms and conditions of the IFB, attached hereto as Exhibit C, are incorporated herein. In the event of a conflict between the IFB and this AGREEMENT, this AGREEMENT shall control. All previous bids, offers and communications relative to this AGREEMENT, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this AGREEMENT. No future waiver or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by the parties.

24. PARTIAL INVALIDITY:

If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
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7 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this AGREEMENT by its Director of Finance under authority of Resolution No. 20____- ____ adopted by the Council of the City of Modesto on the 14 day of July, 2026 and Southern Counties Oil Company dba SC Fuels, has caused this Agreement to be duly executed. #6..
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1 ANNUAL PURCHASE AGREEMENT
BULK OIL AND LUBRICANTS - AGREEMENT #284310
This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 20___, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Hunt Oil of California, LLC, a California limited liability company, hereinafter called VENDOR, WHEREAS, the Modesto City Council adopted Resolution No. 202____ - ______ authorizing the Award of Bid and agreement for the Bulk Oil and Lubricants materials, supplies or equipment described herein (the “GOODS”) to VENDOR, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the VENDOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and VENDOR shall enter into an agreement for the Bulk Oil and Lubricants as described in Supply of Fuel and Petroleum Products for Fiscal Year 2025/2026 - 2026/2027, attached hereto as Exhibit “C” and made a part hereof, and
NOW, THEREFORE, the parties hereto mutually agree as follows:

1. TERM OF AGREEMENT:

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

Year 1: JULY 15, 2026 through JULY 14, 2027
Year 2: JULY 15, 2027 through JULY 14, 2028
Year 3: JULY 15, 2028 through JULY 14, 2029
Year 4: JULY 15, 2029 through JULY 14, 2030
Year 5: JULY 15, 2030 through JULY 14, 2031
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2 2. PRICING:

A. Per the aforementioned Council Resolution, the annual estimated amount of the AGREEMENT is $300,000. The total amount paid by CITY to VENDOR over the full term of the AGREEMENT shall not exceed $1,500,000.

B. The AGREEMENT pricing is attached hereto as Exhibit D. Pricing during AGREEMENT Year one and two shall be as set forth in Exhibit D, attached hereto and made a part hereof by this reference.

D. Pricing shall remain firm for the two (2) years of the AGREEMENT.

3. USAGE:

Vendor shall provide whatever quantities may be required during the term of this Agreement. No minimum or maximum quantities are guaranteed or implied by CITY.

4. ORDERING:

5. PAYMENT:

6. AMENDMENTS:

A. In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the non-performance.

B. CITY may terminate this AGREEMENT for convenience upon thirty (30) days prior notice to VENDOR by CITY’s authorized employee.

8. INSPECTION:

9. RESPONSIBILITY:

10. SHIPMENT:

Unless otherwise authorized by CITY’s Purchasing Division, GOODS shall be delivered F.O.B.

12. WARRANTY:

13. INSURANCE:

14. TAX EXEMPTIONS:

15. INDEMNITIES:

B. VENDOR shall hold the CITY and its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of VENDOR, or its agents, officers, employees, or subcontractors relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active #6..
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5 negligence of the CITY. VENDOR’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement for VENDOR to procure and maintain a policy of insurance VENDOR.

16. GOVERNING LAW:

17. VENUE:

18. ATTORNEY'S FEES:

19. LIMITATION OF LIABILITY:

20. NOTICES:

Any notice, payment or instrument required or permitted by this AGREEMENT to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:
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6 VENDOR: Hunt Oil of California
Attention: Zachary James
720 B Street
Modesto, CA 95354
(916) 903-6630
[email protected]
CITY: City of Modesto
Purchasing Division
Attention: Kim Presson
P.O. Box 642
Modesto, CA 95353
(209) 577-5405 [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

21. ASSIGNMENT:

Neither this AGREEMENT nor any portion hereof shall be subcontracted or assigned without the written consent of the CITY in each and every instance.

22. MISCELLANEOUS:

Time is of the essence in each and every provision of this AGREEMENT.

23. ENTIRE AGREEMENT:

This AGREEMENT and its exhibits contain the entire understanding between VENDOR and CITY.

24. PARTIAL INVALIDITY:

If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
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7 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this AGREEMENT by its Director of Finance under authority of Resolution No. 20____- ____ adopted by the Council of the City of Modesto on the 14 day of July, 2026 and Hunt Oil of California, LLC, has caused this Agreement to be duly executed.
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Jun 24, 2025 2:37 PM, 1356278933
Pre-Requisition Form
Finance Department 555 Santa Clara Street Vallejo CA 707.648.4592 Department: Public Works Departments, Maintenance
Staff Contact: Angel Abinasa, [email protected] Vendor: Hunt Oil of California Vendor Number 101974
Term: Purchase next FY
Anticipated Purchase Date: Jul 01, 2025
Anticipated Contract Type: Other: Supply of Fuel and Petroleum Products Agreement Purchasing Authority: City Council Anticipated Date to Council: Jun 03, 2025 Total Projected Expenditure: 5000000.00
Anticipated Account Number 5012901 5014009
Multiple Project Numbers? Multiple Account Numbers? No, just one Description of Proposed Purchase:

Fuel and lubrcation supplies.

I have reviewed the city-wide contracts, expenditure and encumbrance reports to comply with the VMC.

It is an existing vendor and I am working to take an action to the City Council because it will exceed the Citywide cap of $100,000 in a single FY.

Competitive Process: I have completed a Formal Bid Process and I have received written quotes Winning Quote Uploaded: Yes
Explanation for Vendor Selection:

A formal RFP was advertised in May 2025. Proposals were received from the following companies:

Ramos Oil
Bosco Oil
Pinnacle Petroleum
Merrimac Energy Group
Safety Kleen
Hunt Oil of California received the highest score
Other Comments:

City Council approved awarding this contract to Hunt Oil of California on June 03, 2025.

Uploaded documents available for review https://bit.ly/vPreReqs.

WarrantyNo
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Score SheetsYes
Winning Bid/Quote/ProposalYes
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Pre-Requisition Signature Section
Department Comment
Supervisor/Manager: Brisa Long
Title: Admin Analyst II
E-mail: [email protected]
_
_
Signature Date
Delegated Signee: Oscar Alcantar
Title: Public Works Director
E-mail: [email protected]
_
Signature Date
Route Final HTE PO to City Clerk for Contract Log
6/24/25
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RFP Title: SUPPLY OF FUEL AND PETROLEUM PRODUCTS FOR FISCAL YEARS 2025/2026 – 2026/2027 Total Points Available
25 50
15 10
100 Total Points Possible
Jorge Luis
VENDOR NAME RATER 1 SCORES RATER 2 SCORES AVERAGE
Hunt & Sons 92 86 89
Ramos Oil 87 78 82.5
Bosco Oil 86 83 84.5
Pinnacle Petroleum 84 81 82.5
Merrimac Energy Group 82 69 75.5
Safety Kleen 65 56 60.5

PROPOSAL SCORE SUMMARY
Evaluation Criteria
Description of Products and Services
Pricing and Terms
Background, Experience, and Reputation
Other Considerations and/or Incentives
#6..

FINANCIAL INTEREST DISCLOSURE
Any contract award therewith will require approval by a majority vote of the City of Modesto’s City Council.

In order to have full transparency in any City of Modesto commercial actions, the City Council may not approve an agreement between the City and the Vendor until all person with a direct or indirect financial interest of greater than $2,000 in the Vendor are identified by name.

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

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

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

For the purposes of this disclosure, a “Financial Interest” shall have the meaning contained in Modesto Municipal Code section 2-10.02.

Persons having an aggregate economic interest in the Vendor less than two thousand dollars ($2,000.00) at all times prior to final Council action of the proposed contract are not required to be listed on the Financial Interest Disclosure.

Notwithstanding the foregoing, a Financial Interest Disclosure is not required for a Vendor meeting the financial criteria for listing on the New York or the Pacific Stock exchanges unless it is reasonably foreseeable that a City Council decision will increase or decrease that entity's gross revenues or expenses by one million dollars ($1,000,000) or more and the requirements of Modesto Municipal Code Section 2-10.03(h) are satisfied.

It is the legal obligation of all applicants for approval of an agreement or of an application for development rights to verify in writing, under penalty of perjury, that the identity of each person having a material financial interest in the Vendor is true, correct and complete. By signing below, the applicant understands that this information is provided under penalty of perjury, and that intentionally supplying misinformation or deception may result in either invalidation of the agreement or application, or criminal prosecution for misdemeanor violation of the Modesto Municipal Code, or both. Negligent provision of misinformation shall be grounds for invalidation. In accordance with the Modesto Municipal Code, each applicant has a continuing obligation to maintain the truth, accuracy and completeness of the financial interest disclosure information provided below until after final consideration by the City Council of any matter arising out of or relating to the agreement or application.
#6..
- 580 -
Print Names of Persons Having a Financial Interest in Vendor Receiving this Agreement:

First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
By signing this document, I agree to the information contained within.

Bidder Company Name:

Name of Vendor Signatory:

Signature of Vendor Representative:
#6..
- 581 -
California Levine Act Disclosure
California Government Code Section 84308, also known as the "Levine Act", prohibits City “officers” from participating in any action related to a license, permit, or other entitlement for use (a “proceeding”) if such member accepts, solicits, or directs political contributions from a party to the proceeding or their agent totaling more than $500 while the proceeding is pending before the agency, and for twelve (12) months following the date a decision concerning the proceeding has been made. The Levine Act also requires disclosure of such contribution by a party to the proceeding.

Section 84308(a)(4) of the Levine Act defines an "officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency of officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position; (2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4)Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Modesto City Council Board Members can be found online at: Modesto City Council https://modestogov.com/706/Council-Members (modestogov.com). The party making this certification is responsible for determining whether a recipient of a political contribution is a City officer prior to answering the following questions:

1. Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $500 to any City officer, in the twelve (12) months preceding the date of the submission of your proposals or the anticipated date of any Council action related to this contract?
___ YES If yes, please identify the Council Member(s):
___ NO

2. Do you, or your company, or any agent on behalf of you or your company, anticipate or plan to make any political contribution of more than $500 to any City officer in the twelve (12) months following any Council action related to this contract?
___ YES If yes, please identify the Council Member(s):
___ NO
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Answering YES to either of the questions above does not preclude the City of Modesto from awarding a contract to your firm or taking any subsequent action related to the contract. It may, however, preclude the identified City officer from participating in any actions related to such contract.

HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
_________________ _____________________________
Date Signature of authorized individual

_____________________________
Company/Applicant Name
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Thursday, May 28, 2026
City Of Modesto
1010 10th Street
Modesto Ca, 95354
Attn: Kim Presson
SC Fuels is pleased to present the following oil product and pricing information regarding your lubricants needs. Please feel free to contact me at your convenience to discuss any questions you might have. *CONFIDENTIAL PRICING *
Product Name Price Per Unit Package Style
Chevron Ursa 15W40 $10.89/gal Bulk
Chevron Ursa 15W40 $11.43/gal Drum
Chevron Delo XLE 15W40 $14.81/gal Bulk
Chevron Delo XLE 15W40 $15.60/gal Drum
Chevron Supreme 5W30 $8.78/gal Drum
Chevron Supreme 10W30 $8.78/gal Drum
Chevron Havoline Pro DS 5W30 $14.20/gal Drum
Chevron 1000 THF $14.77/gal Bulk
Chevron Tractor Fluid $8.92/gal Bulk
Delo ELC Advanced 50/50 Coolant $9.84/gal Drum
Delo XLC 50/50 Coolant $9.96/gal Drum
Azure Green 50/50 Coolant $6.88/gal Drum
Azure Red AF/C HD Nitrite Free
Coolant
$9.45/gal Drum
Chevron Delo Syn ATF $34.79/gal Drum
Chevron ATF MD-3 $9.45/gal Drum
Chevron Ultra Duty HD 2 $149.90/case Case of 40 Tubes
Chevron Rykon HD 2 M5 $248.13/case Case of 40 Tubes
Chevron Starplex HD 2 $3.96/lb 120LB Keg
Chevron Regal R&O 68 $19.27/gal Drum
Chevron Meropa EliteSyn XM 150 $34.77/gal Drum
Chevron Meropa EliteSyn XM 220 $35.97/gal Drum
Fuchs FM Hyd AW32 $29.64/gal Drum
Chevron Hydraulic Oil AW 32,46,68 $8.44/gal Drum
Superb Food Grade Oil 32 $18.25/gal Drum
Rando HD ISO 32,46,68 $12.89/gal Drum
Chevron Cetus Hipersyn 68 $32.56/gal Drum
Castrol CRB 15W40 $9.99/gal Bulk
Castrol Essential 5W30 $9.06/gal Drum
Castrol Universal Tractor Fluid $13.58/gal Bulk
Castrol GTX 10W30 $15.91/gal Drum
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Radicool SFO 50/50 Coolant $10.13/gal Drum
Castrol Transynd 668 $30.93/gal Drum
Pyroplex Red EP 2 $4.71/lb 120LB Keg
Castrol Hyspin AW 22,32,46,68 $14.77/gal Drum
Phillips 66 Guardol ECT 15W40 $16.89/gal Bulk
Phillips 66 Guardol TT 15W40 $15.71/gal Bulk
Phillips 66 Guardol ECT 15W40 $17.34/gal Drum
Phillips 66 Guardol TT 15W40 $16.78 Drum
Phillips 66 Powertran Fluid $16.23/gal Bulk
Phillips 66 Megaflow AW 32,46,68 $15.66/gal Drum
Phillips 66 Triton Heavy Duty ATF $38.71/gal Drum
Phillips 66 Shield Choice 5W30 SB $17.91/gal Drum
Phillips 66 Shield Choice 10W30 SB $16.67/gal Drum
• Pricing does not include applicable taxes.
• Additional products available from SC Fuels include: Environmental Diesels, Inventory/Tank Monitoring, ALL Lubrication Products, Chemicals, Solvents, Floor Sweep, Soaps, Storage and Dispensing Equipment, Oil Safe Containers
Thank you for the opportunity to provide you with our quality products and service. I look forward to hearing from you soon.

Sincerely,
Jake Loveland
SC Fuels
209-480-5546 (CELL) | 209-537-1565 (FAX)
[email protected]
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Product Product ID
Price Name Change
BLACK PEARL SRI 2 (8P ) SRI2-8P $5.19/lb
BLUEDEF 55G DRUM W/COMPONENT (55G) DEF001B-55G $3.45/gal CAMCO FMO 8-15 (5G ) COFMO815-5G $42.90/gal
CHEV CETUS HIPERSYN ISO 220 (55G) HIPSYN220-55G $30/gal CHEV CETUS HIPERSYN ISO 220 (55G) HIPSYN220-55G
CHEV CETUS PAO 46 (5G ) CET46-5G $36/gal
CHEV RANDO HD ISO 32 (55G) AWH32-55G $13.99/gal
CHEV RANDO HD ISO 32 (55G) AWH32-55G $13.99/gal
CHEV RANDO HD ISO 46 (55G) AWH46-55G $13.99/gal
CHEV RANDO HD ISO 68 (55G) AWH68-55G $13.99/gal
CHEV RANDO HD ISO 68 (5G ) AWH68-5G $15.99/gal
CHEV STARPLEX HD 2 (QTB) STARHD2-QTB $4.25/lb.

CHEV STARPLEX HD 2 (QTB) STARHD2-QTB $4.25/lb.

CHEV TRACTOR FLUID (55G) TRACTOR-55G $12.99/gal
CHEV TRACTOR FLUID (BKO) TRACTOR-BKO $11.99/gal
CHEV TRACTOR FLUID (BKO) TRACTOR-BKO $11.99/gal
CHEV ULTI-PLEX GRS EP NLGI 2 (QTB) ULTPLEX2-QTB $4.69/lb.

CHEV URSA SPR+EC 15W40 (55G) URSA1540-55G $12.99/gal
CHEV URSA SPR+EC 15W40 (55G) URSA1540-55G $12.99/gal
CHEV URSA SPR+EC 15W40 (BKO) URSA1540-BKO $11.99/gal
CHEV URSA SPR+EC 15W40 (BKO) URSA1540-BKO $11.99/gal
CHEVRON ATF MD-3 (55G) ATFDEX-55G $11.99/gal
CHEVRON ATF MD-3 (55G) ATFDEX-55G
CHEVRON ATF MD-3 (BKO) ATFDEX-BKO
CHEVRON ATF MD-3 (C12) ATFDEX-C12 $15.59/gal
CHEVRON DELO SYN HD ATF (55G) DELATFHD-55G $28.90/gal
CHV 1000 THF (55G) TRAHYD-55G $16.99/gal
CHV 1000 THF (BKO) TRAHYD-BKO $15.99/gal
CHV 1000 THF (BKO) TRAHYD-BKO $15.99/gal
CHV DELO GREASE EP NLGI 2 (C14) DG2-C14 $4.25/lb. New name CHV Starplex EP 2 CHV DELO TORQFORCE SAE 30 (5G ) TORQFORC30-5G $14.99/gal CHV DELO TORQFORCE SAE 30 (5G ) TORQFORC30-5G $14.99/gal CHV HAV PRODS SYN 5W30 GF6 SP (55G) HAVPRO530-55G $15.99/gal CHV HAV PRODS SYN 5W30 GF6 SP (55G) HAVPRO530-55G $15.99/gal CHV HYDRAULIC OIL AW 32 (55G) HYD32-55G $11.99/gal
CHV HYDRAULIC OIL AW 68 (5G ) HYD68-5G $12.99/gal
CHV HYDRAULIC OIL AW46 (55G) HYD46-55G $11.99/gal
CHV STARPLEX EP 2 (PL5) STARPLEX2-PL5 $4.35/lb.

CHV STARPLEX EP 2 (QTB) STARPLEX2-QTB $4.05/lb.

Price List Hunt Oil of California
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CHV STARPLEX EP 2 (QTB) STARPLEX2-QTB $4.05/lb.

CHV SUP SYN BLEND 5W20 MO GF6 (55G) SUP520-55G $11.99/gal CHV SUP SYN BLEND 5W30 MO GF6 (55G) SUP530-55G $11.99/gal CHV SUPREME MO 10W30 GF5+SN+ (55G) SUPGF4130-55G $11.99/gal CHV SUPREME MO 10W30 GF5+SN+ (55G) SUPGF4130-55G $11.99/gal CRYSTAL BAR & CHAIN (55G) BARCHAIN-55G $9.99/gal
DELO ESI HD GREASE EP 2 (C14) DELESIHDG2-C14 $4.49/lb. New name CHV Starplex HD 2 DELO ESI HD GREASE EP 2 (NR4) DELESIHDG2-NR4 $4.05/lb. New name CHV Starplex HD 2 DELO ESI HD GREASE EP 2 (PL5) DELESIHDG2-PL5 $4.49/lb. New name CHV Starplex HD 2 DELO ESI HD GREASE EP 2 (QTB) DELESIHDG2-QTB $4.39/lb. New name CHV Starplex HD 2 DELO ESI HD GREASE EP 2 (QTB) DELESIHDG2-QTB $4.39/lb. New name CHV Starplex HD 2 DELO ESI HD GREASE EP 2 (QTB) DELESIHDG2-QTB $4.39/lb. New name CHV Starplex HD 2 DELO GEAR EP 5 SAE 85W140 (RD4) DELEP5140-RD4 $2.99/lb.

DELO GEAR EP-5 SAE 80W90 (RD4) DELEP5890-RD4 $2.99/lb.

DELO GEAR LUBRICANT ESI 85-140 (RD4) DELO140-RD4 $2.99/lb.

DIESEL EXHAUST FLUID (55G) DEF-55G $3.99/gal
DIESEL EXHAUST FLUID (55G) DEF-55G $3.99/gal
DIESEL EXHAUST FLUID (55G) DEF-55G $3.99/gal
DIESEL EXHAUST FLUID (55G) DEF-55G $3.99/gal
DIESEL EXHAUST FLUID (55G) DEF-55G $3.99/gal
DIESEL EXHAUST FLUID (BKO) DEF-BKO $2.39/gal
DIESEL EXHAUST FLUID (BKO) DEFVB-BKO $2.39/gal
DIESEL EXHAUST FLUID (BKO) DEF-BKO $2.39/gal
DIESEL EXHAUST FLUID (BKO) DEFVB-BKO $2.39/gal
DIESEL EXHAUST FLUID (BKO) DEF-BKO $2.39/gal
DIESEL EXHAUST FLUID (BKO) DEFVB-BKO $2.39/gal
DIESEL EXHAUST FLUID (E25) DEF-E25 $13.99/case
DIESEL EXHAUST FLUID (E55) DEF-E55 $13.99/case
DIESEL EXHAUST FLUID (E55) DEF-E55 $13.99/case
DIESEL EXHAUST FLUID (E55) DEFVB-E55 $13.99/case
DIESEL EXHAUST FLUID (E55) DEF-E55 $13.99/case
DIESEL EXHAUST FLUID (E55) DEFVB-E55 $13.99/case
DIESEL EXHAUST FLUID (E55) DEF-E55 $13.99/case
DRUM DEPOSIT (EA ) DRUMS-EA $20
DRUM DEPOSIT (EA ) DRUMS-EA $20
DRUM DEPOSIT (EA ) DRUMS-EA $20
DRUM DEPOSIT (EA ) DRUMS-EA $20
DRUM DEPOSIT (EA ) DRUMS-EA $20
DRUM DEPOSIT (EA ) DRUMS-EA $20
DRUM DEPOSIT (EA ) DRUMS-EA $20
DRUM ENVIRONMENTAL CLEAN. FEE (EA ) DRCLEAN-EA $15
DRUM ENVIRONMENTAL CLEAN. FEE (EA ) DRCLEAN-EA $15
DRUM ENVIRONMENTAL CLEAN. FEE (EA ) DRCLEAN-EA $15
DRUM ENVIRONMENTAL CLEAN. FEE (EA ) DRCLEAN-EA $15
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DRUM ENVIRONMENTAL CLEAN. FEE (EA ) DRCLEAN-EA $15
DRUM ENVIRONMENTAL CLEAN. FEE (EA ) DRCLEAN-EA $15
DRUM ENVIRONMENTAL CLEAN. FEE (EA ) DRCLEAN-EA $15
FM CHAIN OIL 100 (5G) FMCHN100-5G $10.50/gal
FM HYDRAULIC OIL 32 (55G) FM32-55G $31.90/gal
FUCHS FM GREASE CSC EP2 (20P) FMCSC2-20P $290/20P
FUCHS FM GREASE CSC EP2 (C14) FMCSC2-C14 $15.50/lb.

FUCHS FM GREASE CSC EP2 (PL5) FMCSC2-PL5 $14.50/lb.

HAVOLINE 2-CYCLE ENGINE OIL (C12) HAVTWOCYC-C12 $28.60/gal HEAT TRANSFER OIL 46 (55G) HT46-55G $19.50/gal
MUSKET DEF (55G) DEFM-55G $3.95/gal
MUSKET DEF (55G) DEFM-55G $3.95/gal
MUSKET DEF (55G) DEFM-55G $3.95/gal
MUSKET DEF (55G) DEFM-55G $3.95/gal
MUSKET DEF (55G) DEFM-55G $3.95/gal
MUSKET DEF (55G) DEFM-55G $3.95/gal
MUSKET DEF (E25) DEFM-E25 $13.99/case
MUSKET DEF (E55) DEFM-E55 $13.99/case
MUSKET DEF (E55) DEFM-E55 $13.99/case
P66 MULTIPLEX 220 #2 (C14) MLPLXRD2-C14 $4.49/lb. CHV Starplex EP 2 P66 MULTIPLEX 220 #2 (NR4) MLPLXRD2-NR4 $4.05/lb. CHV Starplex EP 2 P66 MULTIPLEX FS 100 EP2 (C14) MLPX100FS2-C14 $9.50/lb.

P66 MULTIPURPOSE R&O 68 (55G) MLTRO68-55G $17.99/gal CHV Regal R&O 68 P66 SHIELD CHOICE 10W30 (55G) SUSYN130-55G $10.99/gal CHV Supreme MO 10W30 P66 SYNCON R&O 150 (55G) SYNCON150-55G $32/gal CHV Cetus HiperSyn 150 P66 SYNCON R&O 68 (55G) SYNCON68-55G $28.50/gal CHV Cetus HiperSyn 68 P66 SYNCON R&O 68 (55G) SYNCON68-55G $29.50/gal
P66 SYNCON R&O 68 (5G ) SYNCON68-5G $31.50/gal CHV Cetus HiperSyn 68 P66 SYNCON R&O OIL 220 (55G) SYNCON220-55G $29.50/gal CHV Cetus HiperSyn 220 P66 SYNCON R&O OIL 220 (5G ) SYNCON220-5G $31.50/gal CHV Cetus HiperSyn 220 P66 TRITON HD ATF (55G) ATFTRI-55G $28.9/gal CHV DELO SYN ATF HD P66 TRITON HD ATF (55G) ATFTRI-55G $28.9/gal CHV DELO SYN ATF HD P66 TRITON HD ATF (5G ) ATFTRI-5G $30.50/gal
P66 TURBINE OIL 68 (5G ) TURB68-5G $20.00/gal
PENRAY FUEL PREP 1000 (5G ) SP1000-5G
PH 66 TRITON/MULTIPLEX FS 100 (8P ) MPLXFS100-8P $9.50/lb.

ULTRA DUTY HD 2 (NR4) ULTRA2-NR4 $4.05/lb.

ULTRA DUTY HD 2 (PL5) ULTRA2-PL5 $4.49/lb.

ULTRA DUTY HD 2 (QTB) ULTRA2-QTB $43.9/lb.

VAL ALLTERRAIN 15W40 CK4 HDMO (55G) VAT1540-55G $12.99/gal CHV URSA Spr+ 15W40 VAL ALLTERRAIN 15W40 CK4 HDMO (BKO) VAT1540-BKO $11.99/gal CHV URSA Spr+ 15W40 VAL ALLTERRAIN 15W40 CK4 HDMO (BKO) VAT1540-BKO $11.99/gal ZEREX HD EXT LIFE 50/50 AFC (55G) VZEXTRTU-55G $8.99/gal ZEREX HD EXT LIFE 50/50 AFC (55G) VZEXTRTU-55G $8.99/gal #6..
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ZEREX HD EXT LIFE 50/50 AFC (C6 ) VZEXTRTU-C6 $9.99/gal ZEREX ORIGINAL 50/50 AFC (C6 ) VZORGRTU-C6 $7.99/gal
ZX HD ELC 50/50 NITRITE FREE (55G) VZHDNITF50-55G $9.99/gal ZX HD ELC 50/50 NITRITE FREE (55G) VZHDNITF50-55G $9.99/gal ZX HD ELC 50/50 NITRITE FREE (55G) VZHDNITF50-55G $9.99/gal ZX HD ELC 50/50 NITRITE FREE (55G) VZHDNITF50-55G $9.99/gal ZX HD ELC 50/50 NITRITE FREE (BKO) VZHDNITF50-BKO $9.99/gal ZX HD ELC 50/50 NITRITE FREE (C6 ) VZHDNITF50-C6 $10.99/gal ZX HD ELC 50/50 NITRITE FREE (C6 ) VZHDNITF50-C6 $10.99/gal #6..
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FINANCIAL INTEREST DISCLOSURE
Any contract award therewith will require approval by a majority vote of the City of Modesto’s City Council.

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

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

For the purposes of this disclosure, a “Financial Interest” shall have the meaning contained in Modesto Municipal Code section 2-10.02.

It is the legal obligation of all applicants for approval of an agreement or of an application for development rights to verify in writing, under penalty of perjury, that the identity of each person having a material financial interest in the Vendor is true, correct and complete. By signing below, the applicant understands that this information is provided under penalty of perjury, and that intentionally supplying misinformation or deception may result in either invalidation of the agreement or application, or criminal prosecution for misdemeanor violation of the Modesto Municipal Code, or both. Negligent provision of misinformation shall be grounds for invalidation. In accordance with the Modesto Municipal Code, each applicant has a continuing obligation to maintain the truth, accuracy and completeness of the financial interest disclosure information provided below until after final consideration by the City Council of any matter arising out of or relating to the agreement or application.
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Print Names of Persons Having a Financial Interest in Vendor Receiving this Agreement:

Bidder Company Name:

Name of Vendor Signatory:

Signature of Vendor Representative:
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California Levine Act Disclosure
California Government Code Section 84308, also known as the "Levine Act", prohibits City “officers” from participating in any action related to a license, permit, or other entitlement for use (a “proceeding”) if such member accepts, solicits, or directs political contributions from a party to the proceeding or their agent totaling more than $500 while the proceeding is pending before the agency, and for twelve (12) months following the date a decision concerning the proceeding has been made. The Levine Act also requires disclosure of such contribution by a party to the proceeding.

2. Do you, or your company, or any agent on behalf of you or your company, anticipate or plan to make any political contribution of more than $500 to any City officer in the twelve (12) months following any Council action related to this contract?
___ YES If yes, please identify the Council Member(s):
___ NO
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Answering YES to either of the questions above does not preclude the City of Modesto from awarding a contract to your firm or taking any subsequent action related to the contract. It may, however, preclude the identified City officer from participating in any actions related to such contract.

_____________________________
Company/Applicant Name
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

June 22, 2026
Date: April 27, 2026
TO: Finance Committee
David Wright, Chair
Nick Bavaro, Vice Chair
Rosa Escutia-Braaton, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: William Wong, Director of Utilities
SUBJECT: Agreement with IEH-JL Analytical for Analytical Lab Testing for Drinking Water
CONTACT: Manuel Martinez, Water Division Manager, [email protected], 209-342-4592
DESCRIPTION:

Consider an Agreement for the furnishing of Analytical Laboratory Testing Services for Drinking Water to Institute for Environmental Health, Inc., dba IEH-JL Analytical, Modesto, CA for a total amount not to exceed $217,970 over five (5) years and forwarding to Council for approval. (Funding Source: Water Fund)
STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto 2025-2026 Strategic Plan Initiatives, Goal D:

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

BACKGROUND:

The Utilities Department, Water Division is requesting a local Environmental Laboratory Accreditation Program (ELAP) and/or National Environmental Laboratory Accreditation Conference (NELAC) certified laboratory for drinking water sample testing on an “as needed basis” throughout the year, to conduct various tests of drinking water samples.

The results from the tests are reported to the State Water Resources Control Board. Due to the complexity and time sensitivity for sampling of the City’s water system such as short hold times, monitoring and the need for sampling to be performed seven (7) days per week throughout the day or night by staff, the City is requiring laboratory services to be within a 20-mile radius from the City of Modesto Northeast Corporation Yard located at #7..
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Economic Development Committee, June 22, 2026
Agreement with IEH-JL Analytical for Laboratory Testing Services

Page 2 of 4 ends

4240 Litt Road. As part of this bid, no subcontracting of water quality results will be allowed. The awarded laboratory will be used concurrently with the City’s existing contract.

On October 27, 2020, by Resolution No. 2020-440, Council authorized the award of bid and Agreement for the furnishing of Laboratory Testing Services to Institute for Environmental Health, Inc., dba IEH-JL Analytical (“IEH-JL Analytical”) for a total amount not to exceed $263,480 over five (5) years.

On December 14, 2022, the City Manager approved the First Amendment to Agreement No. 191604 with IEH-JL Analytical, extending the term of the Agreement through Year Three (3) and updating the Agreement pricing. On December 1, 2023, the City Manager approved the Second Amendment to the Agreement, extending the term through Year Four (4). On December 2, 2024, the City Manager approved the Third Amendment to Agreement No. 191604, extending the term through Year Five (5). On December 18, 2025, the City Manager approved the Fourth Amendment to Agreement No. 191604, extending the term through June 30, 2026, and updating the Agreement pricing.

On April 15, 2026, the City Manager approved the Fifth Amendment to Agreement No. 191604, extending the term through August 31, 2026, and updating the Agreement.

DISCUSSION:

On November 17, 2025, the City Manager authorized the Purchasing Manager to solicit the procurement for Analytical Laboratory Testing for Drinking Water. On January 27, 2026, the Purchasing Division issued Invitation for Bids (IFB) 00065 for Analytical Laboratory Testing Services for Drinking Water on the City’s OpenGov public bidding website under several category codes1. 4,326 prospective bidders, including 47 local vendors, were notified online and via email of the bid opportunity. 31 companies downloaded the IFB document from OpenGov and three (3) were local vendors.

On March 3, 2026, bids were formally opened in the City Clerk’s office and broadcast via Microsoft Teams Livestream. One (1) bidder, also being a local vendor, chose to respond.

City staff contacted potential bidders to inquire about their reasons for not submitting a bid, and most indicated that they were unable to meet the 20-mile radius requirement specified in the IFB. Based on providing the lowest responsive and responsible bid, City staff recommends the award of Bid and Agreement for Analytical Laboratory Testing Services for Drinking Water to Institute for Environmental Health, Inc., dba IEH-JL Analytical, Modesto, CA, for a two (2) year agreement with three (3) one-year extension options, for an estimated annual amount of $40,600 and a total amount not to exceed $217,970 over five (5) years.
1 90783 Testing Services, 91812 Analytical/Predictive Studies and Surveys (Consulting), 92685 Soil, Soil Vapor, and Groundwater Sampling and Analysis (including Disposal), 96148 Laboratory and Field Testing Services (Not Otherwise Classified), Including Hazardous Waste, 98900 Sampling and Sample Preparation Services (For Testing), 98991 Water Sampling and Analysis Services
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Economic Development Committee, June 22, 2026
Agreement with IEH-JL Analytical for Laboratory Testing Services

Page 3 of 4 ends

Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material equipment, or contractual services to follow the formal bid procedures. An award of Bid and Agreement for the furnishing of Analytical Laboratory Testing Services for Drinking Water for the Utilities Department to IEH-JL Analytical, Modesto, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and IEH-JL Analytical was the lowest responsive bidder.

FISCAL IMPACT:

The anticipated cost of $217,970 will be absorbed within the current Utilities Department, Water Fund: 4100-45050. Funds have been budgeted in the current operating budget for Fiscal Year 2025-26 and proposed operating budget for Fiscal Year 2026-27.

Current Expenditures:

Agreement #191604 Contract Years Expenditures
CY 1: 01.01.21 – 12.31.21 $ 17,230
CY 2: 01.01.22 – 12.31.22 $ 19,404
CY 3: 01.01.23 – 12.31.23 $ 22,349
CY 4: 01.01.24 – 12.31.24 $ 28,536
CY 5: 01.01.25 – 12.31.25 $ 27,518
CY 6: 01.01.26 – 06.30.26 (as of 04.06.26) $ 7,063
Total Expenditures $122,100
Anticipated Expenditures:

New Agreement Contract Year (CY) Amount
Contract Year 1 $ 40,600
Contract Year 2 $ 40,600
Contract Year 3 (+5.8% CPI Increase) $ 43,020
Contract Year 4 (+5.8% CPI Increase) $ 45,550
Contract Year 5 (+5.8% CPI Increase) $ 48,200
Total Not To Exceed $217,970
The overall agreement total was calculated by forecasting Consumer Price Index (CPI) percentage increases based on an average of the CPI index over the last twelve (12) months. City staff project annual increases based on this estimated forecast. Annual increases will be calculated using the current CPI index at the time of the requested increase.

The new bid submittal for the upcoming agreement term reflects an estimated annual cost of $59,010 which is a 12% increase over the existing agreement. This contract provides on-call services, including water sampling that is performed on an as-needed basis and reported to the State Water Resources Control Board. While usage varies from year to year, projected expenditures were based on historical usage and anticipated operational #7..
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Economic Development Committee, June 22, 2026
Agreement with IEH-JL Analytical for Laboratory Testing Services

Page 4 of 4 ends

needs, so the Water Division has requested an estimated annual amount that is 31% lower ($40,600 vs $59,010) than the bid amount to more accurately reflect projected expenditures.

CEQA/NEPA REQUIREMENTS:

This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the Award of Bid and Agreement for Analytical Laboratory Testing for Drinking Water services to Institute for Environmental Health, Inc., dba IEH-JL Analytical, Modesto, CA for a two (2) year Agreement with three (3) one-year extension options, for an estimated annual amount of $40,600 and a total not to exceed $217,970 over five (5) years, and forwarding to Council for approval.

Approved by:

William Wong, Director of Utilities
Joseph P. Lopez, City Manager
Attachments:

1. Agreement, IEH-JL Analytical

2. Exhibit B – IEH-JL Analytical Bid Submittal, Financial Interest Disclosure, Levine Act Form

3. Exhibit C – IFB-00065, Lab Testing Services for Drinking Water

4. Exhibit E – Pricing, IEH-JL Analytical

5. Exhibit D – Insurance Requirements
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1 ANNUAL AGREEMENT FOR
ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER – AGREEMENT #322261
This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 20___, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Institute for Environmental Health, Inc. d/b/a IEH-JL Analytical, a California corporation, hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 20___ - ______ authorizing the Award of Bid and agreement for the furnishing of Analytical Laboratory Testing Services for Drinking Water to CONTRACTOR, attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for the furnishing of Analytical Laboratory Testing Services for Drinking Water as described in IFB-00065, attached hereto as Exhibit “C” and made a part hereof (hereinafter called IFB).

NOW, THEREFORE, the parties hereto mutually agree as follows:

1. THE WORK:

A. CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, and insurance necessary to perform and complete the required work as specified in Exhibit “B”, and in strict accordance with the conditions of the complete AGREEMENT.

B. CONTRACTOR shall do and perform the work contemplated hereby in a good workmanlike manner under the direction of and to the satisfaction of the CITY Representative. #7..
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2 C. CONTRACTOR shall maintain proper insurance with the CITY for the duration of the AGREEMENT.

D. CONTRACTOR shall maintain a CITY business license for the duration of the AGREEMENT.

E. CONTRACTOR shall furnish said services at the following AGREEMENT rates for an estimated annual amount of $40,600. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $217,970. Unless the services provided are for a lump sum or flat fee, fees for work performed by CONTRACTOR on an hourly basis shall not exceed the amounts shown on Bid attached hereto as Exhibit "B".

F. The AGREEMENT pricing is attached hereto as Exhibit "E". Pricing during AGREEMENT Year one and two shall be as set forth in Exhibit "E", attached hereto and made a part hereof by this reference.

2. CITY REPRESENTATIVE:

CITY Representative is: Jeremy Parnell, [email protected] Purchasing Representative: Armando Fabro, [email protected] The CITY Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be effective only by written change to the AGREEMENT, issued by the City of Modesto, Purchasing Division.

3. CONTRACTOR CONTACT:

Pete Mostoufi
(209) 538 - 8111
[email protected]

4. TERM OF AGREEMENT:

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

Year 1: September 1, 2026 through August 31, 2027
Year 2: September 1, 2027 through August 31, 2028
Year 3: September 1, 2028 through August 31, 2029
Year 4: September 1, 2029 through August 31, 2030
Year 5: September 1, 2030 through August 31, 2031
Price increases for any subsequent AGREEMENT years following the second year shall not exceed the percentage change in the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year and shall be negotiated through the Purchasing Division. Requests for price increases shall be #7..
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3 submitted by CONTRACTOR in writing, ninety (90) days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year.

Price adjustments for diesel fuel fluctuations may be considered. Thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division and approved at the sole discretion of the CITY.

The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/, California data.

5. INSURANCE REQUIREMENTS:

During the term of this AGREEMENT, CONTRACTOR shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit (D) to this AGREEMENT and shall otherwise comply with the other provisions of Exhibit (D) to this AGREEMENT. The city utilizes a software program “PINS Advantage” where vendor is responsible for uploading and maintaining updated insurance.

6. PAYMENT:

CONTRACTOR shall invoice CITY not less than once per month based on the cost for services performed and reimbursable costs incurred prior to the invoice date. All invoices shall be paid in full the following payment terms within thirty days after completion and acceptance of the Services by the CITY, and receipt of a properly prepared invoice, CITY will pay CONTRACTOR by Net 30 terms via CITY's ePay Program.

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

Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
At a minimum, invoices shall state the following:
• This AGREEMENT number 322261
• CITY department/division name and address
• Billing period
• Service hours worked day and week
• Unit price, extended price, sales tax and total

7. INDEMNITY:

The CONTRACTOR shall hold the CITY, its agents, officials, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, #7..
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4 judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, officials, officers, employees, or volunteers relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the willful or active negligence of the City. CONTRACTOR’s obligation to defend, indemnify, and hold the CITY, its agents, officials, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONTRACTOR to procure and maintain a policy of insurance.

8. VENUE & GOVERNING LAW:

This AGREEMENT shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, without giving effect to its conflicts of laws provisions or principles.

9. ATTORNEY'S FEES:

10. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:

A. Proofs of insurance (approved by CITY Risk Manager); and B. Resolution No.20___ - _______;
C. CONTRACTOR Bid submittal;
D. IFB-00065;
E. Contractor’s City of Modesto business license

11. TERMINATION OF SERVICES:

Termination for Default: In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the nonperformance. Within 10 days after receipt of notification, the breaching party shall correct any nonperformance to the reasonable satisfaction of the non-breaching party, or such other time as may be identified in the notice. Failure to correct any non-performance shall allow the non-breaching party to terminate this AGREEMENT for cause.
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5 Termination by City for Convenience: The City may also terminate this AGREEMENT the Contractor's performance under the Agreement, either in whole or in part, at its own discretion and without cause.

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:

A. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
B. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
C. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; D. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process; E. Settle outstanding liabilities and claims, subject to the approval of CITY; F. Complete performance of such part of the SERVICES as has not been terminated; G. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES; H. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.

I. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date.

J. CITY will pay CONTRACTOR for SERVICES actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:

K. The cost of settling and paying valid claims arising out of the termination of the SERVICES such as subcontractor agreements or contracts for materials; #7..
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6 L. The AGREEMENT price allocable to the portion of the SERVICES properly performed or goods supplied to the work site by the CONTRACTOR as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES.

12. COMPLIANCE WITH ALL LAWS:

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

13. FAILURE TO PERFORM SATISFACTORY WORK:

It is agreed and understood that if the CONTRACTOR fails to perform the SERVICES as specified herein, CITY's representative may:

A. Consent to accept such unsatisfactory service with an appropriate adjustment in contract price, based on established cost factors,
B. Have such required work done by CITY forces or otherwise, and charge the cost thereof to the CONTRACTOR, or
C. Recommend termination of AGREEMENT between said the CONTRACTOR and the City of Modesto.

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

14. ASSIGNMENT OF RIGHTS:

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

15. CITY PROCESS/PROCEDURE APPROVALS:

CITY approval of any process or procedure shall not relieve CONTRACTOR of its responsibility to furnish the required SERVICES meeting all specifications contained herein. #7..
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7 16. CONTRACTOR'S RESPONSIBILITY FOR DAMAGES:

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

17. NOTICES:

CONTRACTOR: IEH - JL Analytical
Attention: Pete Mostoufi
4100 Bangs Ave
Modesto, CA 95356
(209) 538 - 8111
[email protected]
CITY: City of Modesto
Purchasing Division
Attention: Armando Fabro
P.O. Box 642
Modesto, CA 95353
(209) 577-5405 [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

18. SIGNATORY(IES) FOR CONTRACTOR:

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

19. QUANTITIES:

No minimum or maximum is guaranteed or implied.

20. FUNDING:

All annual extensions are based upon continuous funding for that purpose by the City Council. Failure to fund any annual extension shall result in an immediate termination of the AGREEMENT without redress. #7..
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8 21. OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:

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

22. NON-DISCRIMINATION:

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

The CONTRACTOR and any allowed subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. The CONTRACTOR and any allowed subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, and Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.

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

C. The CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in any allowed subcontracts to perform SERVICES.

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

E. By executing this AGREEMENT, CONTRACTOR certifies that it shall follow and be in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation and will continue to do so for at least the duration of the AGREEMENT and any extensions thereof. #7..
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9 23. CONTRACTOR LICENSES & PERMITS:

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

24. RECORDS:

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

25. FACILITIES AND EQUIPMENT:

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

26. INDEPENDENT CONTRACTOR; NOT AGENT:

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

27. DRUG FREE WORKPLACE:

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

28. ASSIGNMENT:

Neither this AGREEMENT nor any SERVICES hereunder shall be subcontracted or assigned by CONTRACTOR without the prior written consent of the CITY in each and every instance. #7..
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10 29. WAIVER:

The waiver by any party to this AGREEMENT of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.

30. HEADINGS NOT CONTROLLING:

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

31. MISCELLANEOUS:

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

32. ENTIRE AGREEMENT:

This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY.

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

33. PARTIAL INVALIDITY:

IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attested by its City Clerk under authority of Resolution No. 20___ - _______, adopted by the Council of the City of Modesto on the 23rd day of June, 2026 and Institute for Environmental Health, Inc. d/b/a IEH-JL Analytical has caused this Agreement to be duly executed.
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Institute of Environmental Health, Inc. dba IEH-JL Analytical 4100 Bangs Ave.

Modesto, CA 95356
12/9/2027
12/10/2025
3130

CALIFORNIA STATE

ENVIRONMENTAL LABORATORY ACCREDITATION PROGRAM

CERTIFICATE OF

ENVIRONMENTAL LABORATORY ACCREDITATION
Is hereby granted to
Scope of the certificate is limited to the
“Fields of Accreditation”
which accompany this Certificate.

Continued accredited status depends on compliance with applicable laws and regulations, proficiency testing studies, and payment of applicable fees.

This Certificate is granted in accordance with provisions of Section 100825, et seq. of the Health and Safety Code.

Certificate No.:

Expiration Date:

Effective Date:

Sacramento, California
subject to forfeiture or revocation
__________________________________________________
Christine Sotelo, Program Manager
Environmental Laboratory Accreditation Program
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Institute of Environmental Health, Inc. dba IEH-JL Analytical Modesto, CA 95356

CALIFORNIA STATE

ENVIRONMENTAL LABORATORY ACCREDITATION PROGRAM
Fields of Accreditation
Certificate Number: 3130
Phone: 2095388111
Expiration Date: 12/9/2027 4100 Bangs Ave.

Field of Accreditation:101 - Microbiology of Drinking Water 101.010 001 Heterotrophic Bacteria SM 9215 B
101.020 004 Total Coliform (Enumeration) SM 9221 B,C
101.020 005 Fecal Coliform (Enumeration) SM 9221 B,E
101.020 006 E. coli (Enumeration) SM 9221 B,F
101.050 001 Total Coliform P/A SM 9223 B Colilert
101.050 002 E. coli P/A SM 9223 B Colilert
101.050 003 Total Coliform (Enumeration) SM 9223 B Colilert 101.050 004 E. coli (Enumeration) SM 9223 B Colilert
Field of Accreditation:102 - Inorganic Chemistry of Drinking Water 102.030 003 Chloride EPA 300.0
102.030 005 Fluoride EPA 300.0
102.030 006 Nitrate (as N) EPA 300.0
102.030 007 Nitrite (as N) EPA 300.0
102.030 008 Phosphate,Ortho (as P) EPA 300.0
102.030 009 Sulfate (as SO4) EPA 300.0
102.100 001 Alkalinity SM 2320 B-1997
102.130 001 Specific Conductance SM 2510 B-1997
102.140 001 Residue, Filterable TDS SM 2540 C-1997
102.203 001 Hydrogen Ion (pH) SM 4500-H+ B-2000
Field of Accreditation:107 - Microbiological Methods for Non-Potable Water and Sewage Sludge 107.050 001 Total Coliform (Enumeration) SM 9221 B-2014 107.052 001 Fecal Coliform (Enumeration) SM 9221 E-2014 107.054 001 E. coli (Enumeration) SM 9221 F-2014
107.068 001 E. coli (Enumeration) SM 9223 B-2016 Colilert Field of Accreditation:108 - Inorganic Constituents in Non-Potable Water 108.017 002 Chloride EPA 300.0
108.017 003 Fluoride EPA 300.0
108.017 004 Nitrate (as N) EPA 300.0
108.017 005 Nitrate-Nitrite (as N) EPA 300.0
108.017 006 Nitrite (as N) EPA 300.0
108.017 007 Phosphate,Ortho (as P) EPA 300.0
108.017 008 Sulfate (as SO4) EPA 300.0
108.053 002 Oil & Grease, Total Recoverable EPA 1664 B
As of 12/10/2025, this list supersedes all previous lists for this certificate number.

Customers: Please verify the current accreditation standing with the State. Page 1 of 2 #7..
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Certificate Number: 3130
Expiration Date: 12/9/2027
Institute of Environmental Health, Inc. dba IEH-JL Analytical 108.063 001 Alkalinity SM 2320 B-2011
108.069 001 Specific Conductance SM 2510 B-2011
108.070 001 Residue, Total SM 2540 B-2015
108.072 001 Residue, Filterable TDS SM 2540 C-2015
108.074 001 Residue, Non-filterable TSS SM 2540 D-2015
108.076 001 Residue, Volatile SM 2540 E-2015
108.076 002 Residue, Fixed Filterable (FDS) SM 2540 E-2015 108.078 001 Residue, Settleable SM 2540 F-2015
108.137 001 Hydrogen Ion (pH) SM 4500-H+ B-2011
108.139 001 Ammonia (as N) SM 4500-NH3 C-2011
108.139 002 Kjeldahl Nitrogen,Total (as N) SM 4500-NH3 C-2011 108.174 001 Oxygen, Dissolved SM 4500-O G-2016
108.206 001 Biochemical Oxygen Demand SM 5210 B-2016
108.206 002 Carbonaceous BOD SM 5210 B-2016
108.213 001 Chemical Oxygen Demand SM 5220 D-2011
108.325 001 Chemical Oxygen Demand Hach 8000
Field of Accreditation:126 - Microbiological Methods for Ambient Water 126.031 001 E. coli (Enumeration) EPA 1604 Enumeration
126.102 001 Total Coliform (Enumeration) SM 9221 B-2014 126.104 001 Fecal Coliform (Enumeration) SM 9221 E-2014 126.106 001 E. coli (Enumeration) SM 9221 F-2014
126.120 001 E. coli (Enumeration) SM 9223 B-2016 Colilert As of 12/10/2025, this list supersedes all previous lists for this certificate number.

Customers: Please verify the current accreditation standing with the State. Page 2 of 2 #7..
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FINANCIAL INTEREST DISCLOSURE
Any contract award to result from this IFB process and Bidder’s submission of a Bid therewith will require approval by a majority vote of the City of Modesto’s City Council. In order to have full transparency in any City of Modesto commercial actions, the City Council may not approve an agreement between the City and the Bidder until all person with a direct or indirect financial interest of greater than $2,000 in the Bidder are identified by name.

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

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

For the purposes of this disclosure, a “Financial Interest” shall have the meaning contained in Modesto Municipal Code section 2-10.02.

Persons having an aggregate economic interest in the Bidder less than two thousand dollars ($2,000.00) at all times prior to final Council action of the proposed contract are not required to be listed on the Financial Interest Disclosure.

Notwithstanding the foregoing, a Financial Interest Disclosure is not required for a Bidder meeting the financial criteria for listing on the New York or the Pacific Stock exchanges unless it is reasonably foreseeable that a City Council decision will increase or decrease that entity's gross revenues or expenses by one million dollars ($1,000,000) or more and the requirements of Modesto Municipal Code Section 2-10.03(h) are satisfied.

It is the legal obligation of all applicants for approval of an agreement or of an application for development rights to verify in writing, under penalty of perjury, that the identity of each person having a material financial interest in the Bidder is true, correct and complete. By signing below, the applicant understands that this information is provided under penalty of perjury, and that intentionally supplying misinformation or deception may result in either invalidation of the agreement or application, or criminal prosecution for misdemeanor violation of the Modesto Municipal Code, or both. Negligent provision of misinformation shall be grounds for invalidation. In accordance with the Modesto Municipal Code, each applicant has a continuing obligation to maintain the truth, accuracy and completeness of the financial interest disclosure information provided below until after final consideration by the City Council of any matter arising out of or relating to the agreement or application. #7..
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Print Names of Persons Having a Financial Interest in Bidder Receiving this Agreement:

Bidder Company Name:

Name of Bidder Signatory:

Signature of Bidder Representative:
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BIDDER COMPANY HISTORY STATEMENT
Bidder shall have been in business for a minimum of three continuous years (immediately prior to the time of the City’s solicitation) providing the services described in this Invitation for Bids (IFB).

The Bidder’s company history overview statement shall be approximately one to three pages in length and inserted below:

Bidder Company Legal Name: Insert Bidder Logo Here (if existent):

Insert Bidder Company History Overview Statement Beginning Here:
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Dr. Mansour Samadpour and Dalia Alfi are the
Group. Dalia and Mansour are both microbiologists, and graduates of the University of Washington. Mansour joined the faculty in the school of public he most of the major U.S. outbreaks and recalls since Jack in the Box in 1993.

In 2001, following years of work in public health and environmental microbiology, as well as the epidemiology of foodborne outbreaks, Mansour and
starting their company came from the realization that it is far more productive to work with food companies to enhance and monitor their food safety programs and prevent outbreaks, than to wait for crises to happen and tr
company allowed them to prevent and respond more effectively to foodborne outbreaks, meet industry needs and move the field of food safety forward.

IEH partners with food companies to implement p
risks. We provide routine analytical support to the food industry through consultation, testing services, and regulatory support. We specialize in risk management, and implement programs proven to ensure strong food safety and quality standards, to prevent people from getting sick from food.

We are a privately held, family owned company and
organically and through acquisitions.
scientists, laboratory analysts, food safety experts and consultants, and support staff.

We operate over 100 laboratories
England, Austria, Australia, China, and the Netherlands.

Our team of highly experienced
implement testing programs.

We are a technical, innovative company, with over
than 80 research publications.

We manufacture and distribute
devices through our partner companies.

Our contribution to public health and food safety is featured in Company and Bloomberg.

Please visit IEH Laboratories & Consulting Group
Food Safety Laboratories for additional information.
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IEH History
Dr. Mansour Samadpour and Dalia Alfi are the founders of IEH Laboratories and Consulting Dalia and Mansour are both microbiologists, and graduates of the University of Washington. Mansour joined the faculty in the school of public health. He has most of the major U.S. outbreaks and recalls since Jack in the Box in 1993.

In 2001, following years of work in public health and environmental microbiology, as well as the epidemiology of foodborne outbreaks, Mansour and Dalia started IEH. starting their company came from the realization that it is far more productive to work with food companies to enhance and monitor their food safety programs and prevent outbreaks, than to wait for crises to happen and try to detect them after they have occurred. company allowed them to prevent and respond more effectively to foodborne outbreaks, meet industry needs and move the field of food safety forward.

IEH partners with food companies to implement proactive approaches to manage food safety We provide routine analytical support to the food industry through consultation, testing services, and regulatory support. We specialize in risk management, and implement programs d safety and quality standards, to prevent people from getting sick We are a privately held, family owned company and have grown rapidly since 2001, both organically and through acquisitions. Our success is fueled by the dedication of our team scientists, laboratory analysts, food safety experts and consultants, and support staff. laboratories across the United States, Canada, Mexico, Germany, England, Austria, Australia, China, and the Netherlands. perienced food safety consultants work directly with clients to design and implement testing programs.

We are a technical, innovative company, with over 50 approved and pending patents 80 research publications.

We manufacture and distribute test kits, pathogen detection systems, and sampling through our partner companies.

Our contribution to public health and food safety is featured in the NY Times, CNN, Fast IEH Laboratories & Consulting Group – The Institute for Environmental Health for additional information.
founders of IEH Laboratories and Consulting
Dalia and Mansour are both microbiologists, and graduates of the University of alth. He has been involved in
In 2001, following years of work in public health and environmental microbiology, as well as the The motivation for
starting their company came from the realization that it is far more productive to work with food companies to enhance and monitor their food safety programs and prevent outbreaks, than to y to detect them after they have occurred. Having their own company allowed them to prevent and respond more effectively to foodborne outbreaks, meet roactive approaches to manage food safety
We provide routine analytical support to the food industry through consultation, testing services, and regulatory support. We specialize in risk management, and implement programs d safety and quality standards, to prevent people from getting sick have grown rapidly since 2001, both
Our success is fueled by the dedication of our team of
scientists, laboratory analysts, food safety experts and consultants, and support staff. across the United States, Canada, Mexico, Germany,
work directly with clients to design and
50 approved and pending patents and more
pathogen detection systems, and sampling
the NY Times, CNN, Fast
The Institute for Environmental Health –
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BIDDER WARRANTY STATEMENTS
As a material part of its Bid, Bidder shall insert below a written statement detailing any materials and workmanship warranties, terms and conditions in conformance with the specifications and requirements set forth in this IFB.

Notwithstanding any other provisions of this IFB, Bidder warrants that the materials, supplies, or other services furnished under any contract or purchase order resulting from its Bid shall be on the most suitable grade and meet or exceed the standards set forth in this IFB. Such warranty shall include the following; performance, workmanship, labor, materials, and Bidder design or engineering contributions. If a defect is discovered in any item of the materials, assemblies, components, supplies or services covered in this Bid, Bidder shall correct at its sole expense, all such defects as are reported within 30 days of City’s final acceptance. Upon expiration of the applicable warranty period, all such liability shall terminate except for fraud or such gross mistakes as amount to fraud, latent defects, or specific failure to comply with the terms or any resultant purchase order.

All materials, parts, labor, assemblies and components shall by subject to the warranty conditions and terms unless specifically exempted in writing by the City of Modesto.

Bidder Company Legal Name: Insert Bidder Logo Here (if existent):

Insert Bidder Warranty Statement Beginning Here:
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IEH Laboratories
Job Description

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Document No.

JD003.01
QA Supervisor
Revision Date: 9/10/18
Authority: OPS
Education level: Bachelor’s degree or higher with experience appropriate to specific assigned tasks
Issue Reports: Authorized by Laboratory Manager on individual basis Job Description: In addition to performing the tasks of a microbiologist, chemist or laboratory supervisor, the QA Supervisor oversees the quality assurance program for the entire laboratory by performing a wide variety of tasks, which include, but are not limited to, the following:

Training personnel on the quality system and their role in it and on technical SOPs.

Conducting internal audits.

Investigating complaints and non-conformances or ensuring that it is done.

Developing and implementing corrective actions and writing CAR’s or insuring that it is done.

Stops testing when necessary and authorizes resumption of testing when situation is resolved.

Administers ISO 17025 quality management system.

Maintains document database and issues controlled copies of all documents.

Reviews data and reports for accuracy.

Administers QC sample program (i.e., prepares internal QC samples and submits them for analysis, when required).

Reviews and analyzes QC data and prepares charts. Reports QC results to laboratory management.

Delegates responsibilities of quality program to analysts and/or technicians, if necessary, and trains them on those responsibilities.

Reports any issues that are unresolvable at the laboratory to the next level of quality management.

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Document No.

JD003.01
QA Supervisor
Revision Date: 9/10/18
Authority: OPS
Document Revision History
Revision
Date: Revisions Made Revised By
3/20/18 Reformatted E. Kotsides
9/10/18 Added technical SOP training to the responsibilities “

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Document No.

JD004.01
Microbiology Supervisor
Revision Date: 3/30/18
Authority: OPS
Education level: Bachelor’s degree or higher in microbiology or biology, animal or food science, or other related field, with a specialty in microbiology and with experience appropriate to specific tasks assigned.

Issue Reports: Yes
Job Description: The Microbiology Supervisor is responsible for the overall function of the microbiology laboratory and the quality of the work produced. In addition to the requirements and responsibilities of a microbiologist, the supervisor is a member of the WAL management team, which establishes work and quality policies and procedures. The supervisor also
- assigns work;
- reviews and approves worksheets;
- signs reports;
- trains and authorizes microbiologists and technicians; - interacts with clients, as necessary. UNCONTROLLED

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IEH Laboratories
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Document No.

JD004.01
Microbiology Supervisor
Revision Date: 3/30/18
Authority: OPS
Document Revision History
Revision
Date: Revisions Made Revised By
3/20/18 Reformatted E. Kotsides

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IEH Laboratories
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Document No.

JD007.01
Chemistry Supervisor
Revision Date: 3/30/18
Authority: OPS
Education level: Bachelor’s degree with at least 3 years of experience in chemistry, food science or a related field and experience relevant to the tasks assigned.

Issue Reports: Yes
Job Description: The Chemistry Supervisor is responsible for the overall function of the chemistry laboratory and the quality of the work produced. In addition to the requirements and responsibilities of a chemist, the supervisor is a member of the management team, which establishes work and quality policies and procedures. The supervisor also:
- assigns work;
- reviews and approves worksheets;
- signs reports;
- trains and authorizes chemists and technicians;
- interacts with clients, as necessary;
- directs quality control and check sample programs;
- plans and performs method development and special projects. UNCONTROLLED

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IEH Laboratories
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Document No.

JD007.01
Chemistry Supervisor
Revision Date: 3/30/18
Authority: OPS
Document Revision History
Revision
Date: Revisions Made Revised By
3/20/18 Reformatted E. Kotsides

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IEH Laboratories
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Document No.

JD001.01
Laboratory Management
Revision Date: 12/10/24
Authority: OPS
Relevant
Positions:

Laboratory Director, Laboratory Manager, Laboratory Coordinator, Laboratory Lead and associated Deputy
Education
Level:
▪ Bachelor's degree or higher with experience appropriate to the assigned tasks. ▪ Successful completion of the IEH ISO 17025 Management Training Course is required.
▪ Promotion from a previous role may be considered based on relevant experience and knowledge.

Duties: Executes all the responsibilities of lab analyst, lab tech, or other employees as needed - as well as the following management responsibilities.
.

Operational
Communication:
▪ Execute all responsibilities as assigned by IEH Corporate Management. ▪ Communicate essential information between lab staff and IEH Operations. ▪ Notify Operations or Account Managers of any client-related changes, emerging needs, complaints, or issues.
▪ Report internal employee issues to HR.
▪ Alert Operations to any irregularities or discrepancies in Standard Operating Procedures (SOPs), samples, or data.

Client
Relationship
Management:
▪ Maintain strong client relationships, ensuring all laboratory activities meet their needs. ▪ Provide consistent communication, address inquiries promptly, and ensure proper follow-up for critical issues, delays, or errors.
▪ Ensure clients always have a contact for any urgent needs via lab phone, email, or on call management.

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Document No.

JD001.01
Laboratory Management
Revision Date: 12/10/24
Authority: OPS
Laboratory
Facility
Management:
▪ Maintain the laboratory facility to ensure it is secure, operational, and meets all safety standards.
▪ Identify maintenance needs and coordinate required services for facility upkeep, such as repairs, landscaping, HVAC, waste management, door locks, and security systems. ▪ Maintain laboratory appearance so it is always clean, organized, and professional Laboratory
Equipment &
Consumables:
▪ Ensure the laboratory is equipped with all necessary equipment and consumables that meet specifications for analytical methods.
▪ Verify that routine maintenance and calibration schedules are followed to ensure the validity of SOPs.
▪ Provide support for non-routine repairs and ensure timely ordering of replacement parts. ▪ Assign equipment monitors for periodic checks, and review maintenance and calibration records to address any performance variations.
▪ Maintain inventory and implement a reordering protocol to ensure all materials and consumables are available as needed.

Staff
Scheduling:
▪ Ensures staff schedule is optimized to meet business and client needs, maintaining adequate coverage for peak activity times.
▪ Coordinate schedules appropriately when staff require PTO or holidays, ensuring continuity in meeting client and laboratory needs. This may require Operations coordination for OST support.
▪ Manage staff availability for receiving, reporting, and fulfilling client expectations. ▪ Oversee hiring for replacement and new roles, ensuring compliance with hiring U
procedures and documentation.

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IEH Laboratories
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Document No.

JD001.01
Laboratory Management
Revision Date: 12/10/24
Authority: OPS
Quality
Management
System:
▪ Ensure all SOPs, Quality Assurance Procedures (QAPs), and training requirements are adhered to by all staff.
▪ Implement, maintain, and enforce the Quality Management System, which includes internal audits, management reviews, corrective actions, and traceability throughout the laboratory.
▪ Verify that validation/verification data is recorded accurately and that all equipment and process validations are completed per SOPs.
▪ Ensure all records, from sample receipt to reporting, are complete, dated, and traceable, with data that is consistent and authentic.

Data Review &
Reporting:
▪ Review all data, including quality control (QC) documentation, to ensure accuracy, completeness, and consistency with laboratory procedures. Validate all calculations, enforcing proper scientific notation, significant figures, and detection limits. Ensure QC documentation adheres to established standards and protocols. Ensure data entries follow correct syntax, grammar, and spelling.
▪ Validate and verify data and ensure the timely preparation of final reports. ▪ Ensure Certificates of Analysis (COAs) include accurate client and laboratory information, method references, and are fully completed.

Management
Position Titles
▪ From decreasing level of responsibility and laboratory operational management, titles are:
- Laboratory Director
- Laboratory Manager
- Laboratory Coordinator
- Laboratory Lead
- Deputy to any position above
- Shift Lead
The following criteria are used to determine appropriate management position title:
laboratory operational scope and complexity, # clients, # departments, # employees, operating hours and # shifts, sample / test volume, scope of testing capability, on site vs. corporate administrative responsibility for client services, accounting, HR, purchasing / procurement, and other departments; level of required corporate oversight, scope of services, annual net revenue managed; knowledge, skills, and abilities.

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IEH Laboratories
Job Description

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Document No.

JD001.01
Laboratory Management
Revision Date: 12/10/24
Authority: OPS
Document Revision History
Revision
Date: Revisions Made Revised By
3/20/18 Reformatted E. Kotsides
9/10/18 Added “Training personnel on the quality system and their role in it and on technical SOPs.” “
12/10/24 Updated Logo, changed V.P. or area directors to Operations M. President “ Updated Education requirement “
“ Added IEH 17025 Management Training to Education “
“ Update overall structure and rewording of responsibilities “ 12/10/24 Changed format to table structure, added categories, many additions / clarifications H. Richter UNCONTROLLED

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IEH Organizational Chart
LAB: IEH JL Analytical
Date: 11/20/2025 Pete M
Laboratory Director

IEH CEO
Crystal McNabb
Technical Manager - Cal ELAP
Quality Manager Ernesto Madueno Regional Chromatography Coordinator Leanna Brown Deputy Chromatography Coordinator Chemistry Analysts Lab Technicians
Britney Dundee
Chemistry Coordinator Joe Alves Wet Chemistry Lead
Chemistry Analysts Lab Technicians Loretta Moore Office Administration Manager Sample Administration Trina Raley Courier Services Manager Allen Johnson Courier Services Lead Couriers Ulyses Contreras Microbiology Coordinator
Microbiology Leads
Ariana Holguin
Jennifer Lewis Angelica Macias
Phylicia Santana
Kyle Cruz
Microbiology Analysts Lab Technicians
Melanie Khut Deputy Microbiology Coordinator Deysi Marquez Chromatography Lead Shannon Vidal Sample Receiving Lead 20S00017 v.29 Authorized by: CM 11/20/25
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IEH Organizational Chart
This IEH Organization Chart is intended to comply with ISO/IEC 17025:2017 requirements.

Dalia Alfi
Co-CEO
Mansour Samadpour
Co-CEO
Human Resources
Legal
Account Managers
Consultants/Sales
Purchasing/Equipment
Calibrations
Support Services
Operations
H.Richter, Director of Operations
S.Sanchez, Sr. VP Analytical Services (Chemistry)
Ramon Aboytes, VP Technical Services (Salinas/Yuma)
K.Sanchez, Director of Training Operations
M.President, VP Quality Assurance
Regional Managers
IEH Laboratories
Command Center
FQA023.01-01
Authorized by: OPs
06/05/25
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Job Description

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Document No.

JD006.01
Microbiologist
Revision Date: 3/30/18
Authority: OPS
Education level: Bachelor’s degree or higher with experience appropriate to specific assigned tasks
Issue Reports: Authorized by laboratory manager on individual basis Job Description: Microbiologists must consistently exercise their discretion and independent judgment to complete a wide variety of tasks.

These tasks include:
- prioritizing workload;
- preparing media;
- receiving and logging samples into the LIMS;
- preparing samples for analysis (weighing and diluting); - analyzing samples using conventional and molecular
techniques;
- recording results and making necessary calculations;
- evaluating and interpreting data;
- entering results into the LIMS;
- troubleshooting problems;
- performing QC tasks as assigned by the Lab Mgr.;
- decontaminating and disposing of samples;
- cleaning and sanitizing the laboratory;
- trash removal;
U
- and supervising laboratory technicians.

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Document No.

JD006.01
Microbiologist
Revision Date: 3/30/18
Authority: OPS
The microbiologist uses aseptic technique to perform all analytical procedures.

The microbiologist maintains equipment in clean (sterile, if necessary) and operable condition.

The microbiologist may train other personnel, if authorized by the laboratory manager.

The microbiologist interacts with customers, as authorized by the laboratory manager.

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Document No.

JD006.01
Microbiologist
Revision Date: 3/30/18
Authority: OPS
Document Revision History
Revision
Date: Revisions Made Revised By
3/20/18 Reformatted E. Kotsides

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IEH Laboratories
Job Description

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Document No.

JD008.01
Chemist
Revision Date: 3/30/18
Authority: OPS
Education level: Bachelor’s degree or higher or higher in chemistry, food science or a related field and experience appropriate to specific tasks assigned.

Issue Reports: Authorized by Chemistry Supervisor on an individual basis Job Description: Chemists must consistently exercise their discretion and independent judgment to complete a wide variety of tasks. The tasks constantly vary but include:
- prioritizing workload;
- receiving and logging samples into the LIMS;
- preparing samples for analysis
- analyzing samples by conventional or instrumental methods; - recording results and making necessary calculations;
- evaluating and interpreting data;
- troubleshooting problems;
- entering results into the LIMS;
- performing QC tasks as assigned by the Lab or QA Mgrs.; - decontaminating and disposing of samples;
- cleaning and sanitizing the laboratory;
- trash removal;
- supervising student helpers and laboratory technicians.

The chemist may train other personnel, if authorized by the laboratory manager.

The chemist interacts with customers, as authorized by the laboratory manager.

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Job Description

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Document No.

JD008.01
Chemist
Revision Date: 3/30/18
Authority: OPS
Document Revision History
Revision
Date: Revisions Made Revised By
3/20/18 Reformatted E. Kotsides

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Institute of Environmental Health, Inc. dba IEH-JL Analytical 4100 Bangs Ave.

Modesto, CA 95356
12/9/2027
12/10/2025
3130

CALIFORNIA STATE

ENVIRONMENTAL LABORATORY ACCREDITATION PROGRAM

CERTIFICATE OF

ENVIRONMENTAL LABORATORY ACCREDITATION
Is hereby granted to
Scope of the certificate is limited to the
“Fields of Accreditation”
which accompany this Certificate.

Continued accredited status depends on compliance with applicable laws and regulations, proficiency testing studies, and payment of applicable fees.

This Certificate is granted in accordance with provisions of Section 100825, et seq. of the Health and Safety Code.

Certificate No.:

Expiration Date:

Effective Date:

Sacramento, California
subject to forfeiture or revocation
__________________________________________________
Christine Sotelo, Program Manager
Environmental Laboratory Accreditation Program
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Institute of Environmental Health, Inc. dba IEH-JL Analytical Modesto, CA 95356

CALIFORNIA STATE

ENVIRONMENTAL LABORATORY ACCREDITATION PROGRAM
Fields of Accreditation
Certificate Number: 3130
Phone: 2095388111
Expiration Date: 12/9/2027 4100 Bangs Ave.

Customers: Please verify the current accreditation standing with the State. Page 1 of 2 #7..
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Certificate Number: 3130
Expiration Date: 12/9/2027
Institute of Environmental Health, Inc. dba IEH-JL Analytical 108.063 001 Alkalinity SM 2320 B-2011
108.069 001 Specific Conductance SM 2510 B-2011
108.070 001 Residue, Total SM 2540 B-2015
108.072 001 Residue, Filterable TDS SM 2540 C-2015
108.074 001 Residue, Non-filterable TSS SM 2540 D-2015
108.076 001 Residue, Volatile SM 2540 E-2015
108.076 002 Residue, Fixed Filterable (FDS) SM 2540 E-2015 108.078 001 Residue, Settleable SM 2540 F-2015
108.137 001 Hydrogen Ion (pH) SM 4500-H+ B-2011
108.139 001 Ammonia (as N) SM 4500-NH3 C-2011
108.139 002 Kjeldahl Nitrogen,Total (as N) SM 4500-NH3 C-2011 108.174 001 Oxygen, Dissolved SM 4500-O G-2016
108.206 001 Biochemical Oxygen Demand SM 5210 B-2016
108.206 002 Carbonaceous BOD SM 5210 B-2016
108.213 001 Chemical Oxygen Demand SM 5220 D-2011
108.325 001 Chemical Oxygen Demand Hach 8000
Field of Accreditation:126 - Microbiological Methods for Ambient Water 126.031 001 E. coli (Enumeration) EPA 1604 Enumeration
126.102 001 Total Coliform (Enumeration) SM 9221 B-2014 126.104 001 Fecal Coliform (Enumeration) SM 9221 E-2014 126.106 001 E. coli (Enumeration) SM 9221 F-2014
126.120 001 E. coli (Enumeration) SM 9223 B-2016 Colilert As of 12/10/2025, this list supersedes all previous lists for this certificate number.

Customers: Please verify the current accreditation standing with the State. Page 2 of 2 #7..
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California Levine Act Disclosure
California Government Code Section 84308, also known as the "Levine Act", prohibits City “officers” from participating in any action related to a license, permit, or other entitlement for use (a “proceeding”) if such member accepts, solicits, or directs political contributions from a party to the proceeding or their agent totaling more than $500 while the proceeding is pending before the agency, and for twelve (12) months following the date a decision concerning the proceeding has been made. The Levine Act also requires disclosure of such contribution by a party to the proceeding.

2. Do you, or your company, or any agent on behalf of you or your company, anticipate or plan to make any political contribution of more than $500 to any City officer in the twelve (12) months following any Council action related to this contract?
___ YES If yes, please identify the Council Member(s):
___ NO
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Answering YES to either of the questions above does not preclude the City of Modesto from awarding a contract to your firm or taking any subsequent action related to the contract. It may, however, preclude the identified City officer from participating in any actions related to such contract.

_____________________________
Company/Applicant Name
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1 INVITATION FOR BIDS (“IFB”) NO. IFB-00065
FOR

ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER BIDS DUE: March 3, 2026 before 11:00 am
CITY OF MODESTO CONTACT: Armando Fabro, Buyer
E-MAIL ADDRESS: [email protected]
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INVITATION FOR BIDS # IFB-00065

ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 2 Table Of Contents

NOTICE TO BIDDERS

INSTRUCTIONS TO BIDDERS

VIRTUAL BID OPENING

GENERAL BID REQUIREMENTS

BID SUBMITTAL

TECHNICAL SPECIFICATIONS AND REQUIREMENTS

SAMPLE ANNUAL AGREEMENT - SERVICES-NON-PREVAILING WAGE
EXHIBIT D: INSURANCE REQUIREMENTS FOR MOST CONTRACTS
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INVITATION FOR BIDS # IFB-00065

ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 3 NOTICE TO BIDDERS
NOTICE IS HEREBY GIVEN that the City of Modesto, County of Stanislaus, State of California (“City”), will receive electronic sealed Bids (each, a “Bid”) from qualified Bidders (each, a “Bidder”) for the furnishing of Analytical Laboratory Testing Services for Drinking Water equipment, materials, supplies and/or related services (the “Services”) for the City of Modesto, Utilities Department, Water Division.

All equipment, materials, and supplies shall be furnished F.O.B. City of Modesto (delivery charges borne by Bidder, included in the Services pricing herein, and not separately charged to the City). Bidders are highly recommended to download all IFB documents from the City’s OpenGov Procurement portal at https://procurement.opengov.com/portal/modestogov; such IFB documents shall include all specifications necessary for Bidders to submit a responsive Bid.

Each Bid shall be submitted electronically through the City's OpenGov Procurement portal prior to 11:00 am on Tuesday, March 3, 2026, after which time Bids will be opened, read and recorded. The opening of bids will not be physically open to the public but may be viewed simultaneously via video conferencing in the manner provided for herein. All Bids shall be available for review following City Council award approval at the Purchasing Division, 1010 Tenth Street, 5th Floor, Suite 5300, Modesto, CA 95354.

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

Bids received in any other format will not be accepted. The City of Modesto assumes no responsibility for delay in the upload of documents or final submittal of the Bid. #7..
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INVITATION FOR BIDS # IFB-00065

ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 4 INSTRUCTIONS TO BIDDERS

CALENDAR OF EVENTS
IFB Issued: January 27, 2026
Questions Due via City's OpenGov
Procurement portal:

February 3, 2026, 5:00pm
Addendum Issued (if required): February 10, 2026
Bid Due Date & Time: March 3, 2026, 11:00am
Approximate Contract Award: June 2026

CITY CONTACT
All questions regarding these specifications, terms, and conditions shall be submitted through the Question & Answer area of the City's OpenGov Procurement portal prior to 5:00 pm on Tuesday, February 3, 2026. The City will respond to questions through the OpenGov portal where answers can be found in the Question & Answer tab; however, if a response to a question elicits a change to the bid documents, an addendum will be posted through the OpenGov portal under the Addenda & Notices tab. All contact between Bidder and the City regarding the Bid process shall be through the City Contact. Attempts by the Bidder to contact other City personnel regarding this IFB and associated process may result in disqualification of the Bidder. Notwithstanding the foregoing, information intentionally or unintentionally provided by any person other than the City Contact may not be correct and will not be binding upon the City.

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

PRECEDENCE
Bidder agrees that any agreement resulting from City’s acceptance of its Bid, together with the terms in any City purchase order and associated specifications provided by the City to Bidder therewith, shall comprise the entire agreement between City and Bidder. Moreover, Bidder agrees that any additional or contrary terms contained in Bidder’s acknowledgement of, shall be null and void.

SUBMITTAL OF NO BID
If you are not submitting a Bid, you have the option to submit "No Bid" and state the reason you are not submitting a bid for this particular IFB.
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INVITATION FOR BIDS # IFB-00065

ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 5 VIRTUAL BID OPENING
The City of Modesto will be broadcasting Bid openings live electronically via Microsoft Teams at 11:00 am (Pacific Time) on Tuesday, March 3, 2026. The City Clerk Record of Proposal document should be available on the City's OpenGov Procurement portal by the end of the same day.

The public Bid opening for this Invitation for Bids will be available using the URL link provided below. By submitting your Bid for the above-stated IFB you acknowledge, understand, and agree to this modified Bid opening procedure.

URL: https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NTI0YzBiMDMtNDQ0Yi00YjNlLWIwZjYtYzg4ZDVjMDdkM2Mz%40thread.v2/0?co ntext=%7b%22Tid%22%3a%22125ccacf-fc61-463c-9976-
189f876ff90b%22%2c%22Oid%22%3a%229715c333-c997-4dd7-8984-12cd4deaa705%22%7d Call-In#: 1 469-998-7409
Conference ID: 961 656 049#
Should you have any questions regarding this, please do not hesitate to contact Armando Fabro. #7..
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INVITATION FOR BIDS # IFB-00065

ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 6 GENERAL BID REQUIREMENTS

BID SUBMITTAL
Bidders shall submit electronically through the City's OpenGov Procurement portal. No hard copy bids or bids submitted in any other manner as that prescribed within this IFB will be accepted.

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

BIDDER COSTS INCURRED IN RESPONDING TO IFB
All costs associated with the preparation and submission of a Bid shall be borne by the Bidder.

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

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

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

Failure to furnish any of these documents or information required within such documents may result in disqualification of Proposer.
• Pricing Schedule
• Bidder Exceptions, Clarifications, Amendments (if applicable) • Bidder Customer References
• Financial Interest Disclosure
• Support of Local Vendors (if applicable)
• Bidder Company History Statement
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 7 • Bidder Warranty Statements
• Bidder Experience and Certifications
• California Levine Act Disclosure

COMPLIANCE/NON-COMPLIANCE
If Bidder cannot comply with a specification requirement in this IFB, note on the Exception, Clarifications, Amendments form of the specification paragraph, your exception, and your recommendation. The Purchasing Manager will evaluate your recommendation. If after evaluation it is determined that the Bidder is not in compliance with the specification, the Bid may be rejected.

PROPOSED PRICING FORMAT
• The cost of labor, equipment, fuel, licenses, bonds, permits, and insurance necessary to perform the required provision of Services shall be included in Bid pricing, along with Bidder’s profit margin and any other cost factors.
• Unless otherwise stated, the Bidder agrees that, in the event of a price decline, the benefit of such lower pricing shall be extended to the City.
• The City of Modesto shall not pay mileage charges or travel time from the Contractor’s place of business to the job site, or from site to site, or for the Contractor’s travel time to pick up materials. • Bidder shall use the pricing schedule provided in this IFB to present Bid pricing. No other form or format shall be accepted. Bid must be submitted on the Pricing Schedule provided. No alterations may be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the Exception, Clarification, Amendments Form.

AWARD OF BID
• The City may award one or more agreements to one or more Bidder in order to provide for backup, or in case the “primary” contractor is unable to meet the City’s needs. • The City reserves the right to decline to award any agreement if it is determined that the proposed pricing is not competitively priced based on similar agreements with public agencies within the State of California or if the bids received fail to meet the City’s requirements. • The City reserves the right to select that Bid, which best suits the City’s needs. In addition to price, consideration will be given to the quality and performance of the service to be purchased, and the criteria listed in Modesto Municipal Code Section 8-3.203(f). Regardless of City staff’s recommendation, the City Council reserves the right to award an agreement to the Bidder that best suits the City’s needs as determined by the City Council whether or not said award is consistent with City staff’s recommendation for award.
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 8 SUPPORT OF LOCAL VENDORS
Should the Bidder that submits the lowest responsive Bid or and would otherwise normally qualify to receive the Bid pursuant to Sections 8-3.203 and 8-3.204 of the Modesto Municipal Code (MMC) not be a local business as defined herein, the lowest Bid or quote submitted by a local business that is within 5% of the lowest Bid, whether or not that Bidder is the second lowest Bidder, may be deemed to be the lowest Bidder if the local Bidder agrees to reduce its Bid to match the Bid or quote of the lowest Bidder in writing within five business days after notification by City Purchasing staff, provided that said local Bidder is deemed to be a responsible Bidder as determined by the Purchasing Manager. To qualify as a local Bidder, the Bidder must have a physical business location within the City of Modesto and a current City of Modesto business license.

INDEMNITY
The successful Bidder (the “Contractor”) will be required to hold the City, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgements or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of the Contractor, its agents, officers, employees, and volunteers relating to or during the performance of its obligations under this Bid, except for claims arising from the willful or active negligence of the City. Contractor’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement for Contractor to procure and maintain a policy of insurance. With reference to the foregoing, the parties agree that all risk of loss, including but not limited to damages, property losses and defense of third-party suits, arising out of or relation to the operation of Cityowned vehicles by Contractor’s employees will be apportioned to Contractor in accordance with the provisions contained in indemnity.

BIDDER REPRESENTATION
Bidder represents that:
• Bidder has had an opportunity to examine and has examined any and all of the documents, including specifications, any resultant contract and supporting data, and that it has, from the information contained in such documents, specifications, and data, fully acquainted itself with all conditions relevant to the work.
• Bidder has made all reasonable investigations essential to a full understanding of the difficulties which may be encountered in performing the work.
• Bidder will complete the proposed provision of Services for the compensation stated in any resultant agreement.
• Bidder assumes full and complete responsibility for all conditions relevant to the proposed provision of Services and all risks in connection therewith.
• Bidder represents that it is fully qualified to perform the proposed provision of Services in accordance with the terms of any resultant agreement within the time specified therein. #7..
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 9 BID PROTEST AND APPEAL PROCEDURES
Bidders wishing to protest or appeal a contract award decision by the City of Modesto must follow the procedures provided in this section. Protests or appeals which are not submitted in accordance with these procedures will not be reviewed.

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

Protest Procedures
• Only a Bidder who has actually submitted a Bid is eligible to submit a protest against the City’s Announced Decision.
• Subcontractors are not eligible to submit bid protests. • A Bidder may not rely on the bid protest submitted by another bidder but must timely pursue its own protest.
• A written protest to an Announced Decision must be made to the City of Modesto's Director of Finance no later than ten days after the date of the Announced Decision. • The protest shall be delivered or sent by registered mail and received by the City by the deadline, or protest will be automatically rejected. Protestors who choose to be represented by legal counsel are responsible for the associated expenses.
• The protest shall be accompanied by a certified cashier's check in the amount of $300.00, (except for protests of Federally Funded agreements), made payable to the Clerk of the City of Modesto. Protests filed without the requisite fee will be rejected without any additional review. • The protest filed with the Director of Finance shall:
a. Include the name, address, email address and business telephone number of the protestor; b. Identify the protest by name, Invitation for Bid (IFB) or Request for Proposal (RFP) number, and IFB/RFP date;
c. The bid protest must contain a complete statement of the basis for the protest and all supporting documentation. The protest must refer to the specific portion or portions of the Contract Documents upon which the protest is based;
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 10 d. Include all supporting documentation, if any. Documentation submitted after filing deadline will not be reviewed.
• Bid Protests: A Bidder shall follow, in order, the following steps:
a. Protest to Director of Finance: Upon receipt of a complete and timely protest, the Director of Finance shall review all the submitted materials and shall create and retain a written record of the review. The Director of Finance shall respond at least generally to each material issue raised in the protest not later than ten days after receipt of the protest. Notice of the Director of Finance's decision may be given by letter mailed through U.S. Postal Service.

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

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

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

Further protest appeals shall either be delivered to:

City Clerk’s Office
Attn: Deputy City Manager
1010 Tenth St. Suite 6600
Modesto CA 95354
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 11 Or mailed to:

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

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

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

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

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

The City of Modesto shall select and engage an impartial and qualified person to act as hearing officer in the pending protest. The protestor shall have the right to twice reject the selected hearing officer, provided that the City is notified of such rejection within three days of notice to protestor of the name of the hearing officer.
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 12 The protest shall be heard not later than twenty days after receipt of protestor's request for hearing and the selection of a hearing officer. Protests not made in a timely manner shall be deemed withdrawn, unless the City and the protestor mutually agree otherwise in writing. The protestor’s failure to accept a hearing officer after the third attempt by City staff to identify an impartial hearing officer shall be deemed a withdrawal of the protest.

The costs of the hearing officer and expenses of the protest shall be borne by the protestor. The sums deposited with the request for hearing shall be credited to the costs of the hearing officer and other hearing expenses.
e. Mandatory Alternative Process for Protests of Procurements Obtained with Federal Funds: If the protested procurement involves federal funds, the Deputy City Manager, City Council, or hearing officer shall give notice, accompanying their respective decisions, to the protestor that he or she has the right to appeal to the appropriate federal agency, for which an agency name, contact (where available) and address shall be provided by City staff. Such an appeal shall be filed with the appropriate agency within seven business days of the dispatch or rejection notices to the protestor. Federal agencies may entertain protests alleging that the City has failed to adopt written protest procedures or has failed to follow such procedures. The City Council is the highest authority of the City of Modesto, and its decisions are final. A disappointed Bidder for a contract involving expenditures of Federal funds shall have the right to appeal the City Council decision directly to the federal agency as described herein. #7..
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 13 BID SUBMITTAL
Bidder’s submission should include all City of Modesto forms as provided. If any form is not applicable, Bidder should write or type “Not Applicable” on it but still include the form in your submission. Before submitting the forms, make sure to review the forms to avoid submitting duplicate forms.

ACKNOWLEDGEMENTS
IFB ACKNOWLEDGEMENT*
The Bidder submitting acknowledges receipt of the referenced IFB and/or Addenda and offers and agrees to provide the articles and/or services specified on behalf of the Bidder indicated in Bidder’s Bid Forms provided by the City, attached hereto and made a part hereof, this includes any forms for the pricing proposed on the Pricing Schedule.

By checking the "please confirm" box below, you acknowledge the above statement. ☐ Please confirm
*Response required
PREPARATION OF BIDS*
Bidder acknowledges that they have quoted price as specified in Bid. No alterations or changes of any kind shall be permitted to the Pricing Schedule as provided. Responses that do not comply shall be subject to rejection in total.

By checking the "please confirm" box below, you acknowledge the above statement. ☐ Please confirm
*Response required
TAXES AND FREIGHT CHARGES*
Bidder acknowledges that:

A. Unless otherwise required and specified in the IFB, the prices quoted herein do not include Sales, Use or other taxes.

B. No charge for delivery, drayage, express, parcel post packing, cartage, insurance, license fees, permits, costs of bonds, or for any other purpose, except taxes legally payable by City, will be paid by the City unless expressly included and itemized in the Bid.

C. Amount paid for transportation of property to the City is exempt from Federal Transportation Tax. An exemption certificate is not required where the shipping paper shows the consignee as one (1) of the City; as such papers may be accepted by the carrier as proof of the exempt character of the shipment.

D. Articles sold to the City are exempt from certain Federal excise taxes. The City will furnish an exemption certificate.
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 14 By checking the "please confirm" box below, you acknowledge the above statement. ☐ Please confirm
*Response required
AWARD*
Bidder Acknowledges that:

A. Unless otherwise specified by the Bidder or the IFB gives notice of an all-or-none award, the City may accept any item or group of items of any Bid.

B. Bids are subject to acceptance by the City at any time within 45 days of opening, unless otherwise specified in the IFB. A Bidder shall not change its bid if accepted within such time.

C. A valid, agreement based on the sample agreement attached to the IFB and the submitted bid shall be provided, or otherwise furnished, to the successful Bidder within the time for acceptance specified, and such agreement shall be a binding agreement without further action by either party. The agreement shall be interpreted, construed and given effect in all respects according to the laws of the State of California.

By checking the "please confirm" box below, you acknowledge the above statement. ☐ Please confirm
*Response required
PATENT INDEMNITY*
Bidder Acknowledges:

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

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

Samples of items, when required, shall be furnished free of expense to the City and if not destroyed by test may upon request (made when the sample is furnished), be returned at the Bidder’s expense.

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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 15 ☐ Please confirm
*Response required
RIGHTS AND REMEDIES OF CITY FOR DEFAULT*
Bidder Acknowledges:

A. In the event any item furnished by the Bidder in the performance of the contract or purchase order should fail to conform to the specifications therefore or to the sample submitted by the Bidder with its Bid, the City may reject the same, and it shall thereupon become the duty of the Bidder to reclaim and remove the same forthwith, without expense to the City, and immediately to replace all such rejected items with others conforming to such specifications or samples; provided that should the Bidder fail, neglect or refuse to do so, the City shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding quantity of any such items. City may deduct from any moneys due or that may there after come due to Bidder, or send an invoice to the Bidder which shall be paid within thirty (30) days, the difference between the prices named in the contract or purchase order and the actual cost thereof to the City. In the event that the Bidder fails to make prompt delivery as specified for any item, the same conditions as to the rights of the City to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government.

B. Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the Bidder.

C. The rights and remedies of the City provided above shall not be exclusive and are in addition to any other rights and remedies provided by law or under the contract.

By checking the "please confirm" box below, you acknowledge the above statement. ☐ Please confirm
*Response required
CALIFORNIA GOVERNMENT CODE SECTION 4552*
Bidder Acknowledges:

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

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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 16 ☐ Please confirm
*Response required
NO GUARANTEE OR WARRANTY*
Bidder Acknowledges that:

The City makes no guarantee or warranty as to the condition, completeness or safety of any material or equipment that may be traded under a contract or purchase order resulting from this Bid.

By checking the "please confirm" box below, you acknowledge the above statement. ☐ Please confirm
*Response required
MINOR IRREGULARITIES*
Bidder Acknowledges that:

The City reserves the right, in its sole discretion, to waive any informalities or minor irregularities in a Bid.

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

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

NOTE: If the company is not operating under an additional name or a dba, then you may state "N/A" here.
*Response required
TYPE OF LEGAL ENTITY*
Is the Bidder Company a Corporation, Limited Liability Company, Partnership, or Sole Proprietorship? #7..
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 17 If the Bidder Company is something other than one of the above options, please answer "No" here and you will be asked to provide more information after this question. ☐ Yes
☐ No
*Response required
When equals "Yes"
TYPE OF LEGAL ENTITY - SELECT*
Please select which of the following legal entity options under which the Bidder Company operates. ☐ Corporation
☐ Limited Liability Company
☐ Partnership
☐ Sole Proprietorship
*Response required
When equals "Yes"
LEGAL ENTITY STATE OF REGISTRATION*
In which State is the Bidder Company registered?
*Response required
When equals "No"
TYPE OF LEGAL ENTITY - OTHER*
You have indicated that the Bidder Company does not operate as a Corporation, a Limited Liability Company, a Partnership, or as a Sole Proprietorship. Please explain and be sure to note which State the Bidder Company is registered/established.
*Response required
BIDDER COMPANY HEADQUARTERS ADDRESS*
Please provide the full street address for the headquarters of the Bidder Company. Be sure to include the following:
• Full Street Address
• City
• State
• Country
• Postal Code
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 18 *Response required
BIDDER COMPANY WEBSITE ADDRESS*
Please provide the full company website address for the Bidder Company. *Response required
CONTACT PERSON DETAILS*
Please provide the following information for the Contact person for this bid:
• Name
• Title
• Phone (Office)
• Phone (Mobile)
• Mailing Address (Street Address, City, State, Postal Code) • Fax Number
• Email
*Response required
FEDERAL TAXPAYER IDENTIFICATION NUMBER (TIN)*
Please provide the Bidder Company's Federal Taxpayer Identification Number here. *Response required

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

BIDDER OFFICER NAMES AND TITLES*
Please provide the Names and Titles of the Top Three Bidder Officers in the following manner:
• Full Name, Full Title
• Full Name, Full Title
• Full Name, Full Title
*Response required
YEARS IN BUSINESS*
For how long has the Bidder Company been in business? Please indicate in number of years. *Response required
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 19 CLOSEST BIDDER OFFICE*
Please provide the address for the Bidder Office closest to the City of Modesto. Please be sure to provide:
• Full Street Address
• City
• State
• Country
• Postal Code
*Response required
CITY OF MODESTO BUSINESS LICENSE*
Does the Bidder Company currently possess a valid City of Modesto Business License? NOTE: An answer of "No", does not exclude the bid from potential award as it is not required until the contract begins.
☐ Yes
☐ No
*Response required
When equals "Yes"
CITY OF MODESTO BUSINESS LICENSE NUMBER*
You have indicated that the Bidder Company already possesses a City of Modesto Business License, please provide the business license number here.
*Response required

PRICING SCHEDULE
PRICING SCHEDULE*
Please download the below documents, complete, and upload. • Pricing_Schedule_Form.doc
*Response required
PREPARATION OF PRICING SCHEDULE*
All prices and notations must be printed in ink or typewritten. No erasures permitted. Errors may be crossed out and corrections printed in ink or typewritten adjacent and must be initialed in ink by person signing the Bid.

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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 20 ☐ Please confirm
*Response required

CITY FORMS
BIDDER EXCEPTIONS, CLARIFICATIONS, AMENDMENTS*
Does the Bidder have any exceptions, clarifications, or amendments to this IFB, sample agreement, or its associated specifications?
☐ Yes
☐ No
*Response required
When equals "Yes"
BIDDER EXCEPTIONS, CLARIFICATIONS, AMENDMENTS*
Please download the below documents, complete, and upload. • bidder_experience_cert.docx
*Response required
BIDDER CUSTOMER REFERENCES*
Please download the below documents, complete, and upload. • Bidder_Customer_References.pdf
*Response required
FINANCIAL INTEREST DISCLOSURE*
Please download the below documents, complete, and upload. • Financial_Interest_Disclosu...
*Response required
LOCAL VENDOR?*
Is the Bidder a local vendor as defined by the following requirement? To qualify as a local Bidder, the Bidder must have a physical business location within the City of Modesto and a current City of Modesto business license.
☐ Yes
☐ No
*Response required
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 21 When equals "Yes"
SUPPORT OF LOCAL VENDORS*
Please download the below documents, complete, and upload. • Support_of_Local_Vendors.pdf
*Response required
BIDDER COMPANY HISTORY STATEMENT*
Please download the below documents, complete, and upload. • Bidder_Company_History_Stat...
*Response required
BIDDER WARRANTY STATEMENTS*
Please download the below documents, complete, and upload. • Bidder_Warranty_Statements.pdf
*Response required
BIDDER EXPERIENCE AND CERTIFICATIONS*
Please download the below documents, complete, and upload. • bidder_experience_cert.docx
*Response required
CALIFORNIA LEVINE ACT DISCLOSURE*
Please download the below documents, complete, and upload. • Modesto_Levine_Act_Statemen...
*Response required

ADDITIONAL BID INFORMATION

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

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

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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 22 ☐ Please confirm
*Response required
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 23 TECHNICAL SPECIFICATIONS AND REQUIREMENTS

BACKGROUND
The Utilities Department, Water Division is requesting a drinking water Environmental Laboratory Accreditation Program (ELAP) and/or National Environmental laboratory Accreditation conference (NELAC) certified laboratory for local analytical testing services of drinking water samples on an "as needed basis".

More information about the certifications can be found on the links below. https://www.waterboards.ca.gov/drinking_water/certlic/labs/index.html https://nelac-institute.org/
As part of this bid, no subcontracting will be allowed. The awarded Laboratory shall furnish all labor, materials, test results, equipment (including bottles) and insurance necessary to perform the services outline in the Pricing Schedule and Scope of work.

SCOPE OF WORK
The City of Modesto is requesting bids for local analytical laboratory testing services for drinking water on as needed basis for Colilerts, Quanti Tray, HPCs, and Nitrate as Nitrogen analysis. The City is requiring HPC analysis to be completed through the Pour Plate method Analytical results for Nitrate as nitrogen are to be reported electronically to the State Water Resources Control Board water quality database when requested by the City of Modesto.

Pricing shall include all labor, materials, equipment, tools, fuel, and insurance necessary to do the work.

LOCATION REQUIREMENT
• Due to the complexity and sensitivity of these tests, the City is requiring the awarded laboratory to be within a 20-mile radius from the City of Modesto Northeast Corporation Yard located at 4240 Litt Road.

SERVICE SPECIFICATIONS
• Hold Times for Samples:
o Hold times begin at the time of sample collection. All analyses shall be completed within hold times required by EPA method.
• Sample Containers:
o Sample containers of appropriate size and type, containing the proper preservatives to comply with EPA requirements, shall be included in testing items unit price. Sample containers shall be prelabeled identifying the analyses type and preservative used for the test. • Travel Blanks:
o Analysis of travel blanks, when needed, will be provided at no additional cost to the City. • Field Services:
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 24 o Under normal circumstance, City staff will collect all samples and deliver samples to the awarded laboratory. The City may choose to hire the Contract Laboratory to perform fieldwork (sample collection) on an as needed basis.
• Analytical Report:
o A separate analytical report that meets ELAP requirement shall be provided for each chain of custody. This report shall be delivered with invoice. The report shall be well organized and easy to follow, containing the following information:
▪ Laboratory contact information for all labs providing results ▪ Client information
▪ Report title and number
▪ Sample identification, collection date and time
▪ Sample receipt date
▪ Date of sample preparation and prep method
▪ Date of sample analysis and test method
▪ Analytical results
▪ Detection levels used
▪ Quality Assurance/Quality Control (QA/QC) data for each method performed ▪ Signature and title of person authorized to release final results ▪ Certification that the test results meet all ELAP and/or NELAC and laboratory QA/QC requirements notation of results reported outside of quantitation limits ▪ Explanation of any qualifiers
▪ A copy of the Chain of Custody (COC)
• Notification Protocol:
• Awarded bidder will be provided a list of personnel to address immediate concerns or any critical findings, such as positive and/or over Maximum Contaminant Level (MCL) exceedance test results. List of personnel will include the point of contact's name, office/cell phone number and email. Any emails sent to personnel on the provided list must be sent at a high importance.

WORK SCHEDULE
Will be provided by City Representative(s) as needed.
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 25 REQUIRED LICENSES
Prior to beginning any service that shall be furnished under this specification, the Bidder shall secure the appropriate Business/Delivery license from the City of Modesto. Business/Delivery license information may be obtained by calling (209) 577-5389 or emailing [email protected]. The successful Bidder shall maintain a City of Modesto business license for the duration of the agreement.

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

A. Pricing shall remain firm for the first two years of any agreement which may be awarded pursuant to this IFB.

B. Price increases for subsequent agreement years three, four, and five, shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one agreement year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by Contractor(s) in writing, ninety (90) days prior to the annual anniversary date of the agreement to be effective for the subsequent year.

C. Price adjustments for diesel fuel fluctuations may be considered. Thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division and approved at the sole discretion of the CITY.

The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/, California data. #7..
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 26 SAMPLE ANNUAL AGREEMENT - SERVICES-NON-PREVAILING WAGE This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this _______ day of ________________, 20___, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and _____, a _______, hereinafter called CONTRACTOR.

W I T N E S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 20___-______ authorizing the Award of Bid and agreement for the ______ SERVICES to CONTRACTOR, attached hereto as Exhibit “A” and made a part hereof, and
WHEREAS, the CONTRACTOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for the ______ SERVICES as described in IFB ____-____, attached hereto as Exhibit “C" and made a part hereof (hereinafter called IFB).

NOW, THEREFORE, the parties hereto mutually agree as follows:

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

AGREEMENT PRICING
[TBD - Insert Pricing Table Here]

2. CITY REPRESENTATIVE
CITY Representative is: ___________
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 27 Purchasing Representative: __________
The CITY Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be effective only by written change to the AGREEMENT, issued by the City of Modesto, Purchasing Division.

3. CONTRACTOR CONTACT
<Enter Contact Information Here>

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

Year 1: MONTH DD, 20___ through MONTH DD, 20___
Year 2: MONTH DD, 20___ through MONTH DD, 20___
Year 3: MONTH DD, 20___ through MONTH DD, 20___
Year 4: MONTH DD, 20___ through MONTH DD, 20___
Year 5: MONTH DD, 20___ through MONTH DD, 20___
Pricing as set forth in Section 1.e. above shall remain firm for the first two years of the AGREEMENT.

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

The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration Website: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/, California data.

5. INSURANCE REQUIREMENTS
During the term of this AGREEMENT, CONTRACTOR shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit (D) to this AGREEMENT and shall otherwise comply with the other provisions of Exhibit (D) to this AGREEMENT. The City utilizes a software program “PINS Advantage” where vendor is responsible for uploading and maintaining updated insurance. #7..
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 28 6. PAYMENT
CONTRACTOR shall invoice CITY not less than once per month based on the cost for services performed and reimbursable costs incurred prior to the invoice date. All invoices shall be paid in full the following payment terms within thirty days after completion and acceptance of the Services by the CITY, and receipt of a properly prepared invoice, CITY will pay CONTRACTOR [TO BE DETERMINED BY IFB RESPONSE IN FINAL AGREEMENT, EITHER “Net 30 terms via CITY’s ePay Program” or “Net 45 Days via manual check”]. The CITY is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.

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

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

8. VENUE & GOVERNING LAW
Venue for any dispute or claim arising or related to this AGREEMENT its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California.

ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 29 9. ATTORNEY'S FEES
If a party to this AGREEMENT brings any action, including an action for declaratory relief, to enforce or interpret the provision of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10. COMMENCEMENT AND COMPLETION OF THE WORK
The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:
a. Proofs of insurance (approved by CITY Risk Manager); and b. Executed Agreement;
c. CONTRACTOR Bid submittal;
d. IFB No. IFB-00065
e. Contractor’s City of Modesto business license

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

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

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by #7..
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 30 any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; f. Complete performance of such part of the SERVICES as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES; h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.
i. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date.

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

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

13. FAILURE TO PERFORM SATISFACTORY WORK
It is agreed and understood that if the CONTRACTOR fails to perform the SERVICES as specified herein, CITY's representative may:
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 31 a. Consent to accept such unsatisfactory service with an appropriate adjustment in contract price, based on established cost factors,
b. Have such required work done by CITY forces or otherwise, and charge the cost thereof to the CONTRACTOR, or
c. Recommend termination of AGREEMENT between said the CONTRACTOR and the City of Modesto.

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

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

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

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

CONTRACTOR: ____________
____________
____________
____________
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 32 CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

18. SIGNATORY(IES) FOR CONTRACTOR
Each signatory for CONTRACTOR below warrants and represents that it is legally competent to, and has full authority to, execute the AGREEMENT.

19. QUANTITIES
No minimum or maximum is guaranteed or implied.

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

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

22. NON-DISCRIMINATION
a. During the performance of this AGREEMENT, CONTRACTOR and any allowed subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), sexual orientation, or any other basis prohibited by Federal or California law. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment. The CONTRACTOR and any allowed subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. The CONTRACTOR and any allowed subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, and Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.
b. The CONTRACTOR and any allowed subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 33 c. The CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in any allowed subcontracts to perform SERVICES. d. The CONTRACTOR shall permit access by representatives of the Department of Fair Employment and Housing and the CITY upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or CITY shall require to ascertain compliance with this AGREEMENT.
e. By executing this AGREEMENT, CONTRACTOR certifies that it shall follow and be in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation and will continue to do so for at least the duration of the AGREEMENT and any extensions thereof.

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

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

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

26. INDEPENDENT CONTRACTOR; NOT AGENT
At all times during the term of this AGREEMENT, CONTRACTOR shall be an independent contractor and shall not be an employee of CITY. CITY shall have the right to control CONTRACTOR only insofar as the results of CONTRACTOR’s services rendered pursuant to this AGREEMENT. Except as City may specify in writing, CONTRACTOR shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this AGREEMENT to bind City to any obligation whatsoever.
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 34 27. DRUG FREE WORKPLACE
CONTRACTOR certifies that it is following and in compliance with Sections 8350 8355 of Chapter 5.5 of the Government Code, Drug Free Workplace Act whereby each person or organization awarded a contract/purchase order or grant for the procurement of any property or service from any state agency (city) shall certify to the contracting or granting agency that it will provide a drug free workplace.

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

29. WAIVER
The waiver by any party to this AGREEMENT of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.

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

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

32. ENTIRE AGREEMENT
This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY.

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

33. PARTIAL INVALIDITY
If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 35 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attested by its City Clerk under authority of Resolution No. 20___- _______, adopted by the Council of the City of Modesto on the ________ day of __________________, 20___ and _____________.has caused this Agreement to be duly executed.

CITY OF MODESTO
a municipal corporation

CONTRACTOR
By ________________________________ By ________________________________ JOSEPH P. LOPEZ
City Manager
(Signature)
By ________________________________
ATTEST: (Name & Title)
Date: _______________________________
By ________________________________
DIANE NAYARES-PEREZ, CMC, City Clerk
(SEAL)
APPROVED AS TO FORM:

By ________________________________
JOSE M. SANCHEZ, City Attorney
By ________________________________
MATTHEW BRALEY, ARM-PE, Risk Manager
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 36 EXHIBIT D: INSURANCE REQUIREMENTS FOR MOST CONTRACTS Insurance Requirements for Professional Services
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, or employees.

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

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

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

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

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

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

Umbrella or Excess Coverage
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements.

The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to #7..
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 37 a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.

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

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

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

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

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

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

Self-Insured Retentions
All Self-insured retentions must be disclosed to Risk Management for approval and shall not reduce the limits of liability. The City of Modesto may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. #7..
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 38 Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Modesto.

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

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

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

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

Verification of Coverage
Contractor shall furnish the City of Modesto with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements are to be received and approved by the City of Modesto Risk Services before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Modesto reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to obtain a full certified copy of any insurance policy and endorsements.

Failure to exercise this right shall not constitute a waiver of right to exercise later.

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

Special Risks or Circumstances
City of Modesto reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Modesto
Attn: Risk Management
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ANALYTICAL LABORATORY TESTING SERVICES FOR DRINKING WATER 39 1010 10th Street
Modesto, CA 95354
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Description Reporting Units EPA Approved Method Est. Annual QTY Unit Price (Standard Turnaround) Unit Price (Espedited Turnaround) COLILERT P/A SM9223 B 1000 $ 28.50 $ 28.50
QUANTI_TRAY MPN SM9223 B 30 $ 32.00 $ 32.00
HPC* CFU/ML POUR PLATE 600 $ 23.00 $ 23.00
NITRATE AS A NITROGEN MG/L EPA 300.0 500 $ 31.50 $ 63.00 FIELD SERVICES HOURLY N/A AS NEEDED $98.50/HOUR N/A
BID TOTAL $ 59,010.00
Exhibit E - Pricing
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1 Exhibit D:

Insurance Requirements for Most Contracts
(Not for Professional Services or Construction Contracts) Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.

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

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

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

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

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

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

General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance with coverage equal to ISO form CG 2010. For completed operations, a separate endorsement equal to ISO form CG 2037 is required.

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

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

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

However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s #7..
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3 obligation to provide them. The City of Modesto reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to obtain a full certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.

Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Modesto
Attn: Risk Management
1010 10th Street
Modesto, CA 95354
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

June 22, 2026
Date: May 28, 2026
TO: Finance Committee
David Wright, Chair
Nick Bavaro, Vice-Chair
Rosa Escutia-Braaton, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Internal Service Funds Reserve Policies
CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider the recommended reserve policies for the various Internal Services Funds for the City of Modesto; and forwarding to Council for approval. (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:

The City Council establishes the reserve levels for various funds based on the needs of the City. Methodologies for the appropriate levels of reserves vary from fund to fund based on several unique factors depending on the fund. For example, Utility funds have reserve requirements that are governed by debt coverage ratios and target ratios of cash versus operating costs. Whereas in the General Fund the unassigned reserves have a goal of no less than two (2) months of the regular operating expenditure.

In a report by the City’s internal Auditor, there were three (3) recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
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Internal Service Funds Reserve Policies

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• Establishing appropriate reserve levels in each Internal Service Fund (ISF). • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended levels of reserves discussed in this item.

The City has established eight (8) ISFs that are in use to provide services internally amongst the various departments for a variety of needs. These ISFs include the Building Services ISF, Fleet Operations ISF, Information Technology ISF, Employee Benefits ISF, Workers Compensation ISF, General Liability ISF, Property Insurance ISF, and Mail Services ISF.

Each ISF is used to fund unique services and pay for a specific set of costs within the fund. Below is a description of each ISF and their specific allocation methodology.

Building Services ISF
The Building Services ISF Fund was established to account for expenditures related to the maintenance and operation of the City’s buildings and facilities, apart from Tenth Street Place and facilities accounted for in Enterprise or other Internal Service Funds.

This fund does not pay for deferred maintenance of facilities but instead for the maintenance and operation costs associated with the City owned facilities. The Building Services ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the Building Services ISF to distribute costs to the various City funds is based upon a percentage distribution of the number of work orders issued to the fund during the prior fiscal year, the square footage allocated by fund, and various operating costs.

Fleet Operations ISF
The Fleet Operations ISF Fund was established to account for expenditures related to the maintenance and operation of the City’s vehicles and heavy equipment, apart from Transit Buses which are accounted for in the Stanislaus Regional Transit Authority (StanRTA) operations and outside Fire contracts which are billed directly. The Fleet Operations ISF is financed by monthly “rental” charges applied to the operating budgets of City departments which use vehicles and equipment.

It should be noted that the Fleet Operations ISF is separate from the Fleet Replacement ISF. The Fleet Replacement ISF reserve policy will be brought back to Council separately #8..
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Finance Committee, June 22, 2026
Internal Service Funds Reserve Policies

Page 3 of 8 ends

as there is a separate review being conducted on the ISF to determine replacement funds that have been collected and outstanding replacement cycles for vehicles City-wide.

The allocation methodology used by the Fleet Operations ISF to distribute costs to the various City funds is based upon the work orders and fuel charges on the total permanent equipment as well as a distribution of the hourly rate of the staff and overhead.

Information Technology ISF
The Information Technology ISF Fund was established to account for expenditures related to the acquisition, maintenance, and replacement of information systems, hardware and software for the City. The Information Technology ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the Information Technology ISF to distribute costs to the various City funds is based upon a formula that encompasses various factors such as number of computer workstations, applications supported for the department, number of HelpDesk tickets, etc.

Employee Benefits ISF
The Employee Benefits ISF Fund was established to account for expenditures related to the accrued vacation liability City-wide, as well as the cost of post-retirement employee health benefits. This fund also makes the Unfunded Accrued Liability payment that is collected from all City funds that have employees. The Employee Benefits ISF is financed by monthly charges applied to operating budgets of City departments.

The allocation methodology used by the Employee Benefits ISF to distribute costs to the various City funds is based upon total estimated employee benefits administration costs for the upcoming fiscal year divided by the total number of full-time employees. For the retiree health portion, the costs consider the total number of estimated costs for retiree medical and leave reimbursements for the upcoming fiscal year. It is allocated by each cost center’s salary budget and their labor group rate.

Workers Compensation ISF
The Workers Compensation ISF Fund was established to account for expenditures related to processing, managing, and funding employee work-related injury claims. These funds are used for state-mandated benefits, medical care, and wage replacement when appropriately identified through the workers compensation claims process. The Workers Compensation ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the Workers Compensation ISF to distribute costs to the various City funds is based upon the estimated costs for the premium and the claim payments for the City’s Workers Compensation coverage. The costs are recovered with #8..
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Finance Committee, June 22, 2026
Internal Service Funds Reserve Policies

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a 99% weight factor on the department’s average claims for the last five (5) years. The remaining 1% is weighted on the department’s salaries.

General Liability ISF
The General Liability ISF Fund was established to act as a self-insurance fund administered through a third-party administrator (TPA) to finance the cost of administering and paying liability claims, settlements, and potential litigation. Under the City’s current TPA, the City has a $1 million deductible for general liability claims. This means that the City must first pay $1 million per settlement/claim before the insurance covers the cost of the remaining settlement/claim above $1 million. The General Liability ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the General Liability ISF to distribute costs to the various City funds is based upon the estimated costs for the premium and the claim payments for the City’s liability coverage. The costs are recovered with a 99% weight factor on the department’s average claims for the last five (5) years. The remaining 1% is weighted on the department’s salaries.

Property Insurance ISF
The Property Insurance ISF Fund was established to account for expenditures related to the funding of property related settlements/claims against the City that are covered through the City’s excess insurance. The City has a $1,000,000 deductible for any property related claims per occurrence that are covered by the ISF and then recouped by the ISF charges over time. The Property Insurance ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the Property Insurance ISF to distribute costs to the various City funds is based upon the City’s projected insurance premium for the upcoming fiscal year and the square footage for all city owned properties.

Mail Services ISF
The Mail Services ISF Fund was established to account for expenditures related to mail postage and operating expenses of the City for Mail Services. The Mail Services ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the Mail Services ISF to distribute the costs to the various City funds is based upon postage charges from the prior fiscal year and projected operating expenses for the upcoming fiscal year.

DISCUSSION:
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Finance Committee, June 22, 2026
Internal Service Funds Reserve Policies

Page 5 of 8 ends

As part of the recent audit report by the City’s internal Auditor, Baker Tilly, recommendations were made to establish minimum levels of reserves for all ISFs to ensure that those minimum levels could cover obligations of the fund in times of economic uncertainty or should emergency situations arise.

When reviewing the recommended level of reserves for each Internal Service Fund, Staff worked closely with each ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves within the ISF. ISF reserve policies are varied across local municipalities and how they address recommended levels. When conducting research to review peer agencies and how they establish ISF reserves for ones such as Worker’s Compensation, Employee Benefits Fund, Fleet, or Building Services, Staff found that the level of reserves was often different based upon the needs of the agency. While some industry standards were found based on the type of ISF, such as those for an operating ISF where a reserve level of several months of operating expenditures to cover operating and maintenance costs was used, many agencies have unique reserve levels established or none at all for ISFs.

Upon completion of the review of the various ISF policies from other agencies, Staff has developed recommendations for minimum levels of reserves for each ISF tailored to the needs of the City of Modesto. These findings and recommended reserve levels are listed below for each ISF.

Building Services ISF
Staff are recommending a minimum level of reserves of 25% of operating expenditures for the Building Services ISF Fund based upon these findings:
• The funds are used primarily for operating costs and not deferred maintenance which will be funded separately.
• The 25% level of reserves would equate to approximately three (3) months of operating expenditures for the ISF.

Fleet Operations ISF
Staff are recommending a minimum level of reserves of 17% of operating expenditures for the Fleet Operations ISF Fund based upon these findings:
• The fund is used to pay for fuel, parts, and maintenance staff costs related to the City’s equipment and vehicles housed within each fund.
• Due to the nature of this fund only being for operation and maintenance costs it was determined that a target of two (2) months of operating expenditures should be the recommended level of reserves.

Information Technology ISF
Staff are recommending a minimum level of reserves of 30% of operating expenditures for the Information Technology ISF Fund based upon these findings:
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Finance Committee, June 22, 2026
Internal Service Funds Reserve Policies

Page 6 of 8 ends

• The fund is used to cover the costs of staff, operations, hardware replacements, and software maintenance costs.
• The 30% reserve level provides the ISF with adequate funding for emergency hardware purchases, software maintenance, and security needs. This also provides a little over three (3) months of operating expenditures in reserves.

Employee Benefits ISF
Staff are recommending a minimum level of reserves of 40% of operating expenditures for the Employee Benefits ISF Fund based upon these findings:
• The fund is used primarily to pay for retiree cash outs and sick leave conversions and the operating costs for the Employee Benefits Administration staffing. • A reserve level of 40% would maintain a little over five (5) months of operating expenditures for this ISF for a fund that has regular activity with minimal spikes in terms of payouts/unexpected expenditures.

Workers Compensation ISF
Staff are recommending a minimum level of reserves of 70% of operating expenditures for the Workers Compensation ISF Fund based upon these findings:
• The fund is used to pay for Workers Compensation claims and settlements that occur throughout the fiscal year for various City departments. • A reserve level of 70% would cover eight (8) months of operating expenditures and allow for use of reserves should there be any major Workers Compensation claim filed within a City department.

General Liability ISF
Staff are recommending a minimum level of reserves of 70% of operating expenditures for the General Liability ISF Fund based upon these findings:
• The fund is used to pay for liability claims and settlements that occur throughout the fiscal year for various City departments.
• A reserve level of 70% for this fund would maintain a recommended level from an actuarial perspective that would maintain an adequate level of funding for future liability claims and any spikes in our member rate contributions through the TPA.

Property Insurance ISF
Staff are recommending a minimum level of reserves of $1 million for the Property Insurance ISF Fund based upon these findings:
• The fund is used to pay costs associated with insurance premium for property insurance coverage and any claims throughout the fiscal year. #8..
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Finance Committee, June 22, 2026
Internal Service Funds Reserve Policies

Page 7 of 8 ends

• The reserve level of $1 million is recommended as this will cover the costs of one (1) major claim in the fiscal year.

Mail Services ISF
Staff are recommending a minimum level of reserves of 10% of operating expenditures for the Mail Services ISF Fund based upon these findings:
• The fund is used to pay costs associated with mail service operations and postage that occur throughout the fiscal year for various City departments. • A reserve level of 10% would cover one (1) month of operating expenditures and allow for potential unexpected expenses in the year such as additional postage needed for purchase or possible replacement of the postage metering machine.

FISCAL IMPACT:

The minimum levels of reserves recommended for each fund are unique to each ISF. The fiscal impact of the reserve level requirements that would be established are described for each ISF in the table below.

ISF Model Minimum
Reserve
Level
Projected
Fund Balance
Projected
Reserve Level
Meets Reserve
Level in Policy
Building
Services
25% $988,793 25% Yes
Fleet Operations 17% $1.3 Million 10% No, but
targeting to
meet over the
next 5 years.

Information
Technology
30% $3 Million 21.1% No, but
targeting to
meet over the
next 5 years.

Employee
Benefits
40% $2.1 Million 40% Yes
Workers
Compensation
70% $8.7 Million 97% Yes
General Liability 70% $3.1 Million 23.8% No, but
targeting to
meet over the
next 10 years.

Property
Insurance
$1 Million $1.5 Million $1.5 Million Yes
Mail Services 10% $41,110 6.08% No, but
targeting to
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Finance Committee, June 22, 2026
Internal Service Funds Reserve Policies

Page 8 of 8 ends

meet over the
next 5 years.

In the chart above, any ISF that is referenced as not meeting the reserve policy currently, staff is working with the ISF Manager to establish a surcharge that will be charged out over the next five (5) or ten (10) years to meet the recommended reserve level over time.

Staff will continue to monitor the ISF fund balances and evaluate the levels on an annual basis to take any adjustments to Council, if necessary.

CEQA/NEPA REQUIREMENTS:

This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Motion recommending the reserve policies for the various Internal Service Funds for the City of Modesto; and forwarding to Council for approval.

Approved by:

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

1. Policy Memo – Building Services ISF Reserve Policy

2. Policy Memo – Employee Benefits Fund ISF Reserve Policy

3. Policy Memo – Fleet Fund ISF Reserve Policy

4. Policy Memo – General Liability ISF Reserve Policy

5. Policy Memo – Information Technology ISF Reserve Policy

6. Policy Memo – Property Insurance ISF Reserve Policy

7. Policy Memo – Workers Compensation ISF Reserve Policy

8. Policy Memo – Mail Services ISF Reserve Policy
Exhibits:

1. Exhibit A – FY 2026-27 Proposed Policies
#8..
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CITY OF MODESTO

PROPOSED BUDGET

POLICY MEMO
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Building Services Internal Service Fund Reserve Policy CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider providing policy direction regarding:

1. The adoption of the Building Services Internal Service Fund Reserve Policy to establish a minimum reserve level of 25% of expenditures for the fund.

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:

In a report by the City’s internal Auditor, there were three recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
#8..
- 693 -
Attachment 1 – FY 2026-27 Proposed Policies
• Establishing appropriate reserve levels in each Internal Service Fund (ISF) • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended level of reserves in the policy discussed within this memo.

DISCUSSION:

The Building Services ISF Fund was established to account for expenditures related to the maintenance and operation of the City’s buildings and facilities, with the exception of Tenth Street Place and facilities accounted for in Enterprise or other Internal Service Funds. This fund does not pay for deferred maintenance of facilities but instead for the maintenance and operation costs associated with the City owned facilities. The Building Services ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

As part of the recent audit report by the City’s internal auditor, Baker Tilly, recommendations were made to establish minimum levels of reserves for all ISFs to ensure that those minimum levels could cover obligations of the fund in times of economic uncertainty or should emergency situations arise.

When reviewing the recommended level for the Building Services ISF, Staff worked closely with the ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves. Upon completion of the review, Staff is recommending a minimum level of reserves of 25% of operating expenditures for the Building Services ISF Fund based upon these findings:
• The funds are used primarily for operating costs and not deferred maintenance which will be funded separately.
• The 25% level of reserves would equate to approximately 3 months of operating expenditures for the ISF.

FISCAL IMPACT:

The Building Services ISF has a projected fund balance of $988,793 for the Proposed Fiscal Year 2026-27 Operating Budget. This fund balance represents a reserve level of 25% of operating expenditures and would meet the minimum reserve level requirement set forth in this policy. Staff will continue to monitor this fund balance and evaluate the level on an annual basis to take any adjustments to Council, if necessary. #8..
- 694 -
Attachment 1 – FY 2026-27 Proposed Policies
Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#8..
- 695 -

CITY OF MODESTO

PROPOSED BUDGET

POLICY MEMO
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Employee Benefits Internal Service Fund Reserve Policy CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider providing policy direction regarding:

1. The adoption of the Employee Benefits Internal Service Fund Reserve Policy to establish a minimum reserve level of 40% of expenditures for the fund.

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:

In a report by the City’s internal Auditor, there were three recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
#8..
- 696 -
Attachment 2 – FY 2026-27 Proposed Policies
• Establishing appropriate reserve levels in each Internal Service Fund (ISF) • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended level of reserves in the policy discussed within this memo.

DISCUSSION:

The Employee Benefits ISF Fund was established to account for expenditures related to the accrued vacation liability City-wide, as well as the cost of post-retirement employee health benefits. This fund also makes the Unfunded Accrued Liability payment that is collected from all City funds that have employees. The Employee Benefits ISF is financed by monthly charges applied to operating budgets of City departments.

When reviewing the recommended level for the Employee Benefits ISF, Staff worked closely with the ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves. Upon completion of the review, Staff is recommending a minimum level of reserves of 40% of operating expenditures for the Employee Benefits ISF Fund based upon these findings:
• The fund is used primarily to pay for retiree cash outs and sick leave conversions and the operating costs for the Employee Benefits Administration staffing. • A reserve level of 40% would maintain a little over five (5) months of operating expenditures for this ISF for a fund that has regular activity with minimal spikes in terms of payouts/unexpected expenditures.

FISCAL IMPACT:

The Employee Benefits ISF has a projected fund balance of $2.1 million for the Proposed Fiscal Year 2026-27 Operating Budget. This fund balance represents a reserve level of 40% of operating expenditures and would meet the minimum reserve level requirement set forth in this policy. Staff will continue to monitor this fund balance #8..
- 697 -
Attachment 2 – FY 2026-27 Proposed Policies
and evaluate the level on an annual basis to take any adjustments to Council, if necessary.

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#8..
- 698 -

CITY OF MODESTO

PROPOSED BUDGET

POLICY MEMO
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Fleet Operations Internal Service Fund Reserve Policy CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider providing policy direction regarding:

1. The adoption of the Fleet Operations Internal Service Fund Reserve Policy to establish a minimum reserve level of 17% of operating expenditures for the fund.

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:

In a report by the City’s internal Auditor, there were three recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
#8..
- 699 -
Attachment 3 – FY 2026-27 Proposed Policies
• Establishing appropriate reserve levels in each Internal Service Fund (ISF) • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended level of reserves in the policy discussed within this memo.

DISCUSSION:

The Fleet Operations ISF Fund was established to account for expenditures related to the maintenance and operation of the City’s vehicles and heavy equipment, with the exception of Transit Buses which are accounted for in the StanRTA operations. The Fleet Operations ISF is financed by monthly “rental” charges applied to the operating budgets of City departments which use vehicles and equipment.

It should be noted that the Fleet Operations ISF is separate from the Fleet Replacement ISF. The Fleet Replacement ISF reserve policy will be brought back to Council separately as there is a separate review being conducted on the ISF to determine replacement funds that have been collected and outstanding replacement cycles for vehicles City-wide.

When reviewing the recommended level for the Fleet Operations ISF, Staff worked closely with the ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves. Upon completion of the review, Staff is recommending a minimum level of reserves of 17% of operating expenditures for the Fleet Operations ISF Fund based upon these findings:
• The fund is used to pay for fuel, parts, and maintenance staff costs related to the City’s equipment and vehicles housed within each fund.
• Due to the nature of this fund only being for operation and maintenance costs it was determined that a target of two months of operating expenditures should be the recommended level of reserves.

FISCAL IMPACT:
#8..
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Attachment 3 – FY 2026-27 Proposed Policies
The Fleet Operations ISF has a projected fund balance of $1.3 million for the Proposed Fiscal Year 2026-27 Operating Budget. This fund balance represents a reserve level of 10% of operating expenditures. This amount does not currently meet the minimum reserve level requirement set forth in this policy of 17%. Staff have built a surcharge into the Fleet Operations ISF to recover funds and help build the ISF’s reserves to reach the target of 17% over the next 5 years. Staff will continue to monitor this fund balance and evaluate the level on an annual basis to take any adjustments to Council, if necessary.

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#8..
- 701 -

CITY OF MODESTO

PROPOSED BUDGET

POLICY MEMO
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: General Liability Internal Service Fund Reserve Policy CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider providing policy direction regarding:

1. The adoption of the General Liability Internal Service Fund Reserve Policy to establish a minimum reserve level of 70% of expenditures for the fund.

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:

In a report by the City’s internal Auditor, there were three recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
#8..
- 702 -
Attachment 4 – FY 2026-27 Proposed Policies
• Establishing appropriate reserve levels in each Internal Service Fund (ISF) • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended level of reserves in the policy discussed within this memo.

DISCUSSION:

The General Liability ISF Fund was established to act as a self-insurance fund administered through a third-party administrator (TPA) to finance the cost of administering and paying liability claims, settlements, and potential litigation. Under the City’s current TPA, the City has a $1 million deductible for general liability claims. This means that the City must first pay $1 million of per settlement/claim before the insurance covers the cost of the remaining settlement/claim above $1 million. The General Liability ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the General Liability ISF to distribute costs to the various City funds is based upon the estimated costs for the premium and the claim payments for the City’s liability coverage. The costs are recovered with a 99% weight factor on the department’s average claims for the last five years. The remaining 1% is weighted on the department’s salaries.

When reviewing the recommended level for the General Liability ISF, Staff worked closely with the ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves. Upon completion of the review, Staff is recommending a minimum level of reserves of 70% of operating expenditures for the General Liability ISF Fund based upon these findings:
• The fund is used to pay for liability claims and settlements that occur throughout the fiscal year for various City departments.
• A reserve level of 70% for this fund would maintain a recommended level from an actuarial perspective that would maintain an adequate level of funding for future liability claims and any spikes in our member rate contributions through the TPA.

FISCAL IMPACT:

The General Liability ISF has a projected fund balance of $3.1 million for the Proposed Fiscal Year 2026-27 Operating Budget. This fund balance represents a reserve level of #8..
- 703 -
Attachment 4 – FY 2026-27 Proposed Policies

23.8% of operating expenditures. This amount does not currently meet the minimum reserve level requirement set forth in this policy of 70%. Staff are researching the best way to build out a surcharge to help build the ISF’s reserves to reach the target of 70% over the next 10 years and will incorporate that surcharge into future allocations. Staff will continue to monitor this fund balance and evaluate the level on an annual basis to take any adjustments to Council, if necessary.

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#8..
- 704 -

CITY OF MODESTO

PROPOSED BUDGET

POLICY MEMO
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Information Technology Internal Services Fund Reserve Policy CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider providing policy direction regarding:

1. The adoption of the Information Technology Internal Services Fund Reserve Policy to establish a minimum reserve level of 30% of operating expenditures for the fund.

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:

In a report by the City’s internal Auditor, there were three recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
#8..
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Attachment 5 – FY 2026-27 Proposed Policies
• Establishing appropriate reserve levels in each Internal Service Fund (ISF) • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended level of reserves in the policy discussed within this memo.

DISCUSSION:

The Information Technology ISF Fund was established to account for expenditures related to the acquisition, maintenance, and replacement of information systems, hardware and software for the City. The Information Technology ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the Information Technology ISF to distribute costs to the various City funds is based upon a formula that encompasses various factors such as number of PCs, applications supported for the department, number of HelpDesk tickets, etc.

When reviewing the recommended level for the Information Technology ISF, Staff worked closely with the ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves. Upon completion of the review, Staff is recommending a minimum level of reserves of 30% of operating expenditures for the Information Technology ISF Fund based upon these findings:
• The fund is used to cover the costs of staff, operations, hardware replacements, and software maintenance costs.
• The 30% reserve level provides the ISF with adequate funding for emergency hardware purchases, software maintenance, and security needs. This also provides a little over three (3) months of operating expenditures in reserves.

FISCAL IMPACT:

The Information Technology ISF has a projected fund balance of $3 million for the Projected Fiscal Year-End 2025-26 Operating Budget. This fund balance represents a reserve level of 21.1% of operating expenditures. This amount does not currently meet the minimum reserve level requirement set forth in this policy of 30%. Staff are researching the best way to build out a surcharge to help build the ISF’s reserves to #8..
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Attachment 5 – FY 2026-27 Proposed Policies
reach the target of 30% over the next 5 years and will incorporate that surcharge into future allocations. Staff will continue to monitor this fund balance and evaluate the level on an annual basis to take any adjustments to Council, if necessary.

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#8..
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CITY OF MODESTO

PROPOSED BUDGET

POLICY MEMO
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Property Insurance Internal Service Fund Reserve Policy CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider providing policy direction regarding:

1. The adoption of the Property Insurance Internal Service Fund Reserve Policy to establish a minimum reserve level of $1 million.

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:

In a report by the City’s internal Auditor, there were three recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
#8..
- 708 -
Attachment 6 – FY 2026-27 Proposed Policies
• Establishing appropriate reserve levels in each Internal Service Fund (ISF) • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended level of reserves in the policy discussed within this memo.

DISCUSSION:

The Property Insurance ISF Fund was established to account for expenditures related to the funding of property related settlements/claims against the City that are covered through the City’s excess insurance. The City has a $1,000,000 deductible for any property related claims per occurrence that are covered by the ISF and then recouped by the ISF charges over time. The Property Insurance ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

When reviewing the recommended level for the Property Insurance ISF, Staff worked closely with the ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves. Upon completion of the review, Staff is recommending a minimum level of reserves of $1 million for the Property Insurance ISF Fund based upon these findings:
• The fund is used to pay costs associated with insurance premium for property insurance coverage and any claims throughout the fiscal year. • The reserve level of $1 million is recommended as this will cover the costs of one major claim in the fiscal year.

FISCAL IMPACT:

The Property Insurance ISF has a projected fund balance of $1.5 million for the Proposed Fiscal Year 2026-27 Operating Budget. This fund balance meets the minimum reserve level requirement set forth in this policy. Staff will continue to monitor this fund balance and evaluate the level on an annual basis to take any adjustments to Council, if necessary.
#8..
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Attachment 6 – FY 2026-27 Proposed Policies
Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#8..
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CITY OF MODESTO

PROPOSED BUDGET

POLICY MEMO
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Workers Compensation Internal Service Fund Reserve Policy CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider providing policy direction regarding:

1. The adoption of the Workers Compensation Internal Service Fund Reserve Policy to establish a minimum reserve level of 70% of expenditures for the fund.

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:

In a report by the City’s internal Auditor, there were three recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
#8..
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Attachment 7 – FY 2026-27 Proposed Policies
• Establishing appropriate reserve levels in each Internal Service Fund (ISF) • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended level of reserves in the policy discussed within this memo.

DISCUSSION:

The Workers Compensation ISF Fund was established to account for expenditures related to processing, managing, and funding employee work-related injury claims.

These funds are used for state-mandated benefits, medical care, and wage replacement when appropriately identified through the workers compensation claims process. The Workers Compensation ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

The allocation methodology used by the Workers Compensation ISF to distribute costs to the various City funds is based upon the estimated costs for the premium and the claim payments for the City’s Workers Compensation coverage. The costs are recovered with a 99% weight factor on the department’s average claims for the last five years. The remaining 1% is weighted on the department’s salaries.

When reviewing the recommended level for the Workers Compensation ISF, Staff worked closely with the ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves. Upon completion of the review, Staff is recommending a minimum level of reserves of 70% of operating expenditures for the Workers Compensation ISF Fund based upon these findings:
• The fund is used to pay for Workers Compensation claims and settlements that occur throughout the fiscal year for various City departments. • A reserve level of 70% would cover eight (8) months of operating expenditures and allow for use of reserves should there be any major Workers Compensation claim to be filed within a City department.

FISCAL IMPACT:

The Workers Compensation ISF has a projected fund balance of $8.7 million for the Proposed Fiscal Year 2026-27 Operating Budget. This fund balance represents a reserve level of 97% of operating expenditures and would meet the minimum reserve level requirement set forth in this policy. Staff will continue to monitor this fund balance #8..
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Attachment 7 – FY 2026-27 Proposed Policies
and evaluate the level on an annual basis to take any adjustments to Council, if necessary.

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#8..
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CITY OF MODESTO

PROPOSED BUDGET

POLICY MEMO
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Mail Services Internal Services Fund Reserve Policy CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:

Consider providing policy direction regarding:

1. The adoption of the Information Technology Internal Services Fund Reserve Policy to establish a minimum reserve level of 10% of operating expenditures for the fund.

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:

In a report by the City’s internal Auditor, there were three recommendations related to establishing reserve policies for the City. These recommendations were focused on the following topics:
#8..
- 714 -
Attachment 8 – FY 2026-27 Proposed Policies
• Establishing appropriate reserve levels in each Internal Service Fund (ISF) • Establishing plans to recoup/reach reserve levels over 10+ years in each ISF as needed.
• Ensuring reserve levels established are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs.

Staff have worked with the various ISF Managers to ensure that these items have been considered when developing the recommended level of reserves in the policy discussed within this memo.

DISCUSSION:

The Mail Services ISF Fund was established to account for expenditures related to mail postage and operating expenses of the City for Mail Services. The Mail Services ISF is financed by monthly charges applied to operating budgets of City departments that make use of the services provided.

When reviewing the recommended level for the Mail Services ISF, Staff worked closely with the ISF Manager, reviewed industry standards (where applicable), and reviewed the current level of reserves. Upon completion of the review, Staff is recommending a minimum level of reserves of 10% of operating expenditures for the Mail Services ISF Fund based upon these findings:
• The fund is used to pay costs associated with mail service operations and postage that occur throughout the fiscal year for various City departments. • A reserve level of 10% would cover (1) month of operating expenditures and allow for potential unexpected expenses in the year such as additional postage needed for purchase or possible replacement of the postage metering machine.

FISCAL IMPACT:

The Mail Services ISF has a projected fund balance of $41 thousand for the Projected Fiscal Year-End 2025-26 Operating Budget. This fund balance represents a reserve level of 6% of operating expenditures. This amount does not currently meet the minimum reserve level requirement set forth in this policy of 10%. Staff have built a surcharge into the Mail Services ISF to recover funds and help build the ISF’s reserves to reach the target of 10% over the next 5 years. Staff will continue to monitor this fund #8..
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Attachment 8 – FY 2026-27 Proposed Policies
balance and evaluate the level on an annual basis to take any adjustments to Council, if necessary.

Approved by:

Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#8..
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Exhibit A – FY 2026-27 Proposed Policies
Fiscal Year 2026-27
Proposed Policies

1. The adoption of the Building Services Internal Service Fund Reserve Policy to establish a minimum reserve level of 25% of expenditures for the fund.

2. The adoption of the Employee Benefits Internal Service Fund Reserve Policy to establish a minimum reserve level of 40% of expenditures for the fund.

3. The adoption of the Fleet Operations Internal Service Fund Reserve Policy to establish a minimum reserve level of 17% of operating expenditures for the fund.

4. The adoption of the General Liability Internal Service Fund Reserve Policy to establish a minimum reserve level of 70% of expenditures for the fund.

5. The adoption of the Information Technology Internal Services Fund Reserve Policy to establish a minimum reserve level of 30% of operating expenditures for the fund.

6. The adoption of the Property Insurance Internal Service Fund Reserve Policy to establish a minimum reserve level of $1 million.

7. The adoption of the Workers Compensation Internal Service Fund Reserve Policy to establish a minimum reserve level of 70% of expenditures for the fund.

8. The adoption of the Mail Services Internal Service Fund Reserve Policy to establish a minimum reserve level of 10% of expenditures for the fund. #8..
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

June 22, 2026
Date: June 5, 2026
TO: Finance Committee
David Wright, Chair
Nick Bavaro, Vice-Chair
Rosa Escutia-Braaton, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: 2025 Measure H Oversight Board Annual Report
CONTACT: Stephan Christensen, Office of Performance Management and Budget Director, [email protected], 209-577-5390
DESCRIPTION:

Consider the informational 2025 Measure H Oversight Board Annual Report and forwarding to Council for acceptance and approval. (Funding Source: Measure H) 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 as well as 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:

On November 8, 2022, the Modesto voters approved Measure H, a one-cent sales tax for general City services, and on November 29, 2022, by Resolution No. 2022-453, the Modesto City Council certified the election results. Measure H provides the City with approximately $48 million annually in additional sales tax revenue for its General Fund.

An important part of Measure H, as codified into Modesto Municipal Code section 8-

1.1215, was the requirement that Council appoint a nine-member Oversight Board by #9..
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Finance Committee, June 22, 2026
2025 Measure H Oversight Board Annual Report

Page 2 of 3 ends

Finance CommitteeJune 22, 2026

Finance Committee
June 22, 2026