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*Councilmembers Alvarez and Escutia-Braaton
will participate remotely pursuant to Government
Code section 54953.8.3(c)(4) (Just Cause – travel
while on official business of the legislative body).
MODESTO CITY COUNCIL
City of Modesto Website (www.modestogov.com)
AGENDA
City of Modesto
CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, July 14, 2026 at 5:30 PM
Roll Call - Councilmembers *Alvarez, Bavaro, *Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
THIS MEETING WILL BE PHYSICALLY OPEN TO THE PUBLIC AND BY ZOOM
VIDEO CONFERENCING AND TELEPHONE
In conformance with SB 707, the City of Modesto is providing alternatives to view and participate in Council meetings as well as to provide public comments. If you wish to make either a general public comment or to comment on a specific agenda item, you may use one of the following options:
Submitting Comments by E-Mail
Written comments may be submitted via email by emailing the City Council Meeting email address ([email protected]) and include the Agenda Item Number in the subject line. All comments will be shared with the Councilmembers and placed in the record but will not be read aloud during the meeting. Written comments must be received two hours before the meeting.
Joining the City Council meeting via Zoom
The City of Modesto offers the ability to view and remotely participate in Council meetings via telephonic conferencing through “Zoom” video conferencing computer technology. The meeting may be accessed through Zoom using the following options:
• Enter the following link into an Internet Browser
Zoom Website (https://us02web.zoom.us/j/95895497651)
• Or enter the following Zoom Website (https://zoom.us) into an Internet Browser and using the Webinar ID: 958 9549 7651, and Passcode: 84326 - 1 -
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Joining the City Council meeting via Telephone
If you do not have a smartphone or computer to join the meeting via Zoom, you can participate by phone, by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and enter the Webinar ID: 958 9549 7651 Passcode: 84326
Providing Public Comment on Zoom and by Telephone
The Mayor will request public comment during the Public Comment periods on the meeting agendas and during each Public Hearing and Regular Calendar Item on the Council Agenda.
Once the Mayor has announced the public comment period, please do one of the following. • Computer or Smartphone App: Click “Raise Hand” in Zoom. Staff will unmute you when it is your turn. Confirm the unmute prompt to begin speaking. • Phone Only: Dial *9 to “Raise Hand.” Staff will unmute you when it is your turn.
If needed, dial *6 to toggle mute on/off. Once your public comment has ended, you will be muted again.
• If your phone is unmuted, and you are unable to be heard, the host may ask that you Dial *6 to toggle mute on/off in Zoom.
Additional Zoom Resources and Support
To participate in the Council meeting using Zoom, sign up for a free account or join as a guest through https://zoom.us/.
You may also observe a livestream of the meeting on the Agenda and Minutes web page. (https://media.modestogov.com), and the City of Modesto YouTube Channel (https://www.youtube.com/user/TheCityofModesto).
Technical Issues/Remote Participation
Per SB707, if a technical issue arises with Zoom or the phone dial-in option during the meeting, proceedings will pause for up to one hour while restoration efforts are made. If remote access to the meeting cannot be restored, the City Council may continue with the meeting upon making a finding by roll-call vote that good faith efforts have been made to restore remote access and that continuing the meeting outweighs the public interest in remote access. All disruptions and decisions will be documented in the official minutes.
Wordly Translation Service
“Wordly” can translate into 25+ different languages! To access written translation during the meeting, please scan the QR Code or click this link Join the live session on Wordly (https://attend.wordly.ai/join/RJDY-6364).
"Wordly" puede traducir a más de 25 idiomas diferentes! Para acceder a la traducción durante la reunión, por favor escanee el código QR o Únete a la sesión en vivo sobre Wordly (https://attend.wordly.ai/join/RJDY-6364).
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Closed Captioning/Live Written Translation
This meeting will be closed captioned via the Zoom platform. In person attendees will be able to see the caption at the bottom of the screens in the Council Chamber and City Hall. Zoom attendees with a Zoom version 5.0.2 or higher will be able to see the transcription at the bottom of their personal zoom screen.
Requests for Accommodations or Translation Services
In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto's ADA web page (https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA) If you need special assistance to participate in this meeting and/or interpreter services, please contact the City Clerk 209-577-5396, [email protected]. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Notice
This Agenda is on file in the City Clerk’s Office, Sixth Floor, 10th Street Place, Posting Board at entry of 10th Street Place, and is available on the City's Website (https://www.modestogov.com/).
Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Clerk’s office during normal business hours. Such documents are also available online, subject to staff’s ability to post the documents before the meeting on the Agendas and Meetings page. (https://www.modestogov.com/councilmeetings) Pledge of Allegiance to the Flag
Invocation
City Clerk’s Announcements
Declaration of Conflicts of Interest
Reports from Closed Session
ACKNOWLEDGEMENTS AND PRESENTATIONS
1. Presentation by Stanislaus Regional Transit Authority (StanRTA) regarding route changes. (Funding Source: Not Applicable)
CITY MANAGER; Joseph Lopez, 209-577-5223, [email protected]
2. Proclamation declaring August 2nd - 8th, 2026 as National Health Center Week. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-571-5169, [email protected] - 3 -
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3. Proclamation declaring August 4, 2026 as National Night Out. (Funding Source: Not Applicable)
CITY COUNCIL; BreAnna Griffin, 209-571-5169, [email protected]
MISCELLANEOUS
Legislation, Appointments, Other
4. Consider accepting the resignation of Jamie Reed from the Entertainment Commission. (Funding Source: Not Applicable)
Staff Recommendation:
• Resolution accepting the resignation of Jamie Reed from the Entertainment Commission.
CED; Amber Abruzzo, 209-577-5244, [email protected]
5. Consider appointing Sara Lytle-Pinhey and John Griswold to fill two (2) vacancies to the City of Modesto Entertainment Commission as a non-permit holder with a partial term ending December 31, 2028, and appointing William Patterson to fill one (1) vacancy of a non-profit/special event permit holder for a partial term ending December 31, 2028. (Funding Source: Not Applicable)
Staff Recommendation:
• Resolution approving the appointment of Sara Lytle-Pihney, John Griswold, and William Patterson to the Entertainment Commission for partial terms ending December 31, 2028.
CED; Amber Abruzzo, 209-577-5244, [email protected]
PUBLIC COMMENT PERIOD
Three-minute time limit per speaker.
Only interested persons in the audience may present these matters. Under State law, Councilmembers may respond to matters being presented under this item only as follows:
a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, a Councilmember or the Council itself may take action to direct staff to place a matter of business on a future agenda.
CONSENT ITEMS – ROLL CALL VOTE REQUIRED
Information concerning the consent items listed below has been forwarded to each Councilmember prior to this meeting for study. Unless some member of the audience or Councilmember has a question concerning an item and asks that it be withdrawn from the consent list, the Council approves the items at one time. The action taken by the Council in approving consent items is set forth in the explanation of this individual item. - 4 -
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CONSENT
An item may be removed from consent and discussed at the request of an audience member or Council member.
Consent
6. Consider approving the Minutes for the June 23, 2026 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
• Motion approving the Minutes for the June 23, 2026 Council Meeting.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] Consent
7. Consider approving Final Adoption of Ordinance 3816-C.S. repealing Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office Of The City Clerk And Auditor,” of the Modesto Municipal Code; adding Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk,” to the Modesto Municipal Code to clarify the Office of the City Clerk as a standalone position; and adding Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 20, “City Auditor,” to the Modesto Municipal Code to establish the Office of the City Auditor as a standalone position consistent with the Modesto City Charter. (Funding Source: Not Applicable)
Staff Recommendation:
• Motion approving Final Adoption of Ordinance 3816-C.S. repealing Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office Of The City Clerk And Auditor,” of the Modesto Municipal Code; adding Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk,” to the Modesto Municipal Code to clarify the Office of the City Clerk as a standalone position; and adding Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 20, “City Auditor,” to the Modesto Municipal Code to establish the Office of the City Auditor as a standalone position consistent with the Modesto City Charter.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] Consent
8. Consider approving the recommended budget adjustments to Fiscal Year 2025-26 Annual Operating and Capital Improvement Program Budgets. (Funding Source:
Various Funds)
Staff Recommendation:
• Resolution amending Fiscal Year 2025-26 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager, to take the necessary steps to implement the provisions of this Resolution.
BUDGET; Kaceey Culbertson, 209-571-5855, [email protected] Consent
9. Consider approving the recommended reserve policies for the various Internal Services Funds for the City of Modesto. (Funding Source: Various Funds) - 5 -
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Staff Recommendation:
• Resolution approving the reserve policies for the various Internal Service Funds for the City of Modesto and authorizing the City Manager, to take the necessary steps to implement the provisions of this Resolution.
BUDGET; Kaceey Culbertson, 209-571-5855, [email protected] Consent
10. Consider accepting the informational 2025 Measure H Oversight Board Annual Report. (Funding Source: Measure H)
Staff Recommendation:
• Resolution accepting the informational 2025 Measure H Oversight Board Annual Report.
BUDGET; Stephan Christensen, 209-577-5390, [email protected] Consent
11. Consider approving the submission of eligible Opportunity Zones 2.0 to the Governor’s Office of Business and Economic Development. (Funding Source: Not Applicable)
Staff Recommendation:
• Resolution approving the submission eligible Opportunity Zones 2.0 to the Governor’s Office of Business and Economic Development.
CED; Amber Abruzzo, 209-577-5244, [email protected] Consent
12. Consider approving an Agreement with Alta Planning + Design for the preparation of the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan, in the amount not to exceed $449,966. (Funding Source:
Caltrans Sustainable Transportation Planning Grant)
Staff Recommendation:
• Resolution approving an Agreement with Alta Planning + Design, Oakland, CA, for a total amount not to exceed $449,966 for the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan, and authorizing the City Manager, or his Designee, to negotiate and execute the Agreement.
CED; Michael Hren, 209-577-5273, [email protected]
Consent
13. Consider approving a Will Serve Letter and Outside Service Agreement with Costa Limited Partners, LP, to connect to the City of Modesto’s existing water and sewer systems for the property located at 4555 North Star Way (APN: 046-011-002). (Funding Source: Water Fund and Sewer Fund)
Staff Recommendation:
• Resolution approving a Will Serve Letter and Outside Service Agreement with Costa Limited Partners, LP, to connect to the City of Modesto’s existing water and sewer systems for the property located at 4555 North Star Way (APN: 046- 011-002) and authorizing the City Manager, or his designee, to sign the Will - 6 -
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Serve Letters and execute the Outside Service Agreements.
ENGINEERING SERVICES; Jaspreet Mangat, 209-577-5253,
[email protected]
Consent
14. Consider approving the Plans and Specifications for the Coleman F. Brown Playground Replacement Project, accepting the Bid and Awarding a Construction Contract to Eclipse Pro dba Jaycon, of Elk Grove, CA, in the amount not to exceed $643,768. (Funding Source: Measure H)
Staff Recommendation:
• Resolution approving the Plans and Specifications for the Coleman F. Brown Playground Replacement Project, accepting the Bid and Awarding a Construction Contract to Eclipse Pro dba Jaycon of Elk Grove, CA, in the amount of $585,243, authorizing $58,525, for contingency (if needed), for a total payment amount not to exceed $643,768, and authorizing the City Manager, or his designee, to execute the Agreement.
• Resolution amending the Fiscal Year 2026-27 Non-Capital Improvement Program budget to fund Project #101517 (23-24 Deferred Maint - Measure H), Project #101518 (23-24 Prevent Maint – Measure H), and #101605 (Def. Maint – Realloc to Meas H), in an amount not to exceed $63,703, in transfers, revenue, and to budget expenditures to fund the project, and authorizing the City Manager, or his designee, to implement the provisions of this resolution.
ENGINEERING SERVICES; Nathan Houx, 209-571-5526, [email protected] Consent
15. Consider accepting the Monthly Investment Report for April 2026. (Funding Source:
Various Funds)
Staff Recommendation:
• Motion accepting the Monthly Investment Report for April 2026.
FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
Consent
16. Consider approving the purchase for eight (8) Fleet Replacements for Heavy-Duty Construction Equipment for a total amount not to exceed $2,210,323. (Funding Source:
Fleet Replacement Fund and Water Fund)
Staff Recommendation:
• Resolution approving the Competitive Bidding Process from Sourcewell to John Deere Shared Services LLC, under the authorized dealer, Pape Machinery, Inc., French Camp, CA for the purchase of four (4) Backhoe Loaders, one (1) Grader Motor Tractor, two (2) Track Loader Tractors, and one (1) Excavator Tractor for an amount not to exceed $2,210,323; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] - 7 -
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Consent
17. Consider approving an Agreement for the purchase of Pipe Saddles to Pace Supply, Sacramento, CA for a total amount not to exceed $225,587 over five (5) years. (Funding Source: Water Fund)
Staff Recommendation:
• Resolution approving the Award of Bid and Agreement for the purchase of Pipe Saddles to Pace Supply, Sacramento, CA, for one (1) year agreement with four (4) one-year extension options, for an estimated annual amount of $45,117 and a total amount not to exceed $225,587 over five (5) years and authorizing the Director of Finance, or her designee to execute the Agreement.
FINANCE DEPARTMENT; Dianne Love, 209-571-5174, [email protected] Consent
18. Consider accepting an Informational Report for the May 2026 Accounts Payable Payment Register and Void Report. (Funding Source: Not Applicable) Staff Recommendation:
• Motion accepting an Informational Report for the May 2026 Accounts Payable Payment Register and Void Report.
FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
Consent
19. Consider approving the Agreements for conducting citywide Administrative Investigations to Ellis Investigations Law Corporation, Sacramento, CA, Oppenheimer Investigations Group LLP, Oakland, CA, Shaw Law Group, PC, Sacramento, CA, Command Investigations, Lake Mary, FL, CPS HR Consulting, Sacramento, CA, and DigiStream Investigations, Davis, CA, for a total combined amount not to exceed $800,000 over four (4) years. (Funding Source: Various Funds) Staff Recommendation:
• Resolution approving the award of proposal and Agreements for conducting citywide administrative investigations to Ellis Investigations Law Corporation, Sacramento, CA, Oppenheimer Investigations Group LLP, Oakland, CA, Shaw Law Group, PC, Sacramento, CA, Command Investigations, Lake Mary, Fl, CPS HR Consulting, Sacramento, CA, And Digistream Investigations, Davis, CA, for a two (2) year Agreement with two (2) one-year extension options, for an estimated annual combined amount of $200,000 and a total combined amount not to exceed $800,000 over four (4) years and authorizing the Director of Finance to adjust agreement totals between vendors based on contractor’s availability and department’s needs, ensuring the combined total amount does not change and authorizing the City Manager or his designee to execute the agreements.
HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected] Consent
20. Consider approving Agreements for Occupational Medical Services to Occu-Med, - 8 -
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LTD Fresno, California and Life Extension Clinics, Inc. dba Life Scan Wellness Centers Tampa, Florida for a combined total amount not to exceed $2,292,500 over five (5) years. (Funding Source: Various Funds)
Staff Recommendation:
• Resolution approving the Award of Proposal and Agreement for Occupational Medical Services to Occu-Med, LTD Fresno, California and Life Extension Clinics, Inc. dba Life Scan Wellness Centers Tampa, Florida for a two (2) year agreement with three (3) one-year extension options, for an estimated annual combined amount of $458,500 and a total combined amount not to exceed $2,292,500 over five (5) years; and authoring the Director of Finance to adjust Agreement totals between vendors based on contractors availability and department needs, ensuring the combined total amount does not change and authorizing the City Manager, or his designee, to execute the Agreements.
HUMAN RESOURCES; Dawn Kelley, 209-577-5490, [email protected] Consent
21. Consider approving a First Amendment to the Agreement with Assurance Polygraph, LLC, Castro Valley, CA, for Polygraph Examination Services and adding two (2) additional Agreements with Matthew W. Lampo DBA Lampo Investigations Polygraph, San Ramon, CA and Pacific Cost Polygraph and Investigations, Alameda, CA under the existing not to exceed amount of $538,260 between all Agreements. (Funding Source: General Fund)
Staff Recommendation:
• Resolution approving a First Amendment to the Agreement with Assurance Polygraph, LLC, Castro Valley, CA, for Polygraph Examination Services and adding two (2) additional agreements with Matthew W. Lampo DBA Lampo Investigations Polygraph, San Ramon, CA, and Pacific Coast Polygraph and Investigations, Alameda, CA, under the existing not to exceed amount of $538,260 between all agreements; and authorizing the Director of Finance to adjust agreement totals between vendors based on availability and department need, ensuring the combined total amount does not change and authorizing the City Manager, or his designee, to execute the Agreements.
POLICE DEPARTMENT; Jessica Nicholson, 209-572-9500,
[email protected]
Consent
22. Consider approving the Award of Bid and Agreement for On-Call Airport Planning Services to Kimley-Horn and Associates, Inc., San Jose, CA., for a total amount not to exceed $4,350,000 over five (5) years. (Funding Source: Federal Aviation Administration and Airport Fund)
Staff Recommendation:
• Resolution approving the Award of Proposal and Agreement for On-Call Airport Planning Services to Kimley-Horn and Associates, Inc., San Jose, CA. for a two (2) year Agreement with three (3) one-year extension options, for an estimated annual amount of $870,000 and a total amount not to exceed $4,350,000 over five (5) years; and authorizing the City Manager, or his - 9 -
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designee, to execute the Agreement.
PUBLIC WORKS; Marisol Navarro, 209-577-5319, [email protected] Consent
23. Consider approving the Agreements for the furnishing of Bulk Oil and Lubricants to SC Fuels, Modesto, CA and Hunt Oil of California, Modesto, CA for a total combined amount not to exceed $2,250,000 over five (5) years. (Funding Source: Fleet Fund and Outside Service Agreements)
Staff Recommendation:
• Resolution approving 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, Modesto, CA for Bulk Oil and Lubricants for a two (2) year Agreement with three (3) one-year extension options, for an estimated combined annual amount of $450,000, and a total combined amount not to exceed $2,250,000 over five (5) years; authorizing the Director of Finance to adjust agreement totals between vendors based on vendor’s availability and department’s needs, ensuring the combined total amount does not change; and authorizing the City Manager, or his designee, to execute the Agreements.
PUBLIC WORKS; Patrick Crowley, 209-342-2274, [email protected] Consent
24. Consider approving 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. (Funding Source: Water Fund)
Staff Recommendation:
• Resolution approving an 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 authorizing the City Manager, or his designee, to execute the Agreement.
UTILITIES; Manuel Martinez, 209-342-4592, [email protected]
COUNCIL COMMENTS & REPORTS
CITY MANAGER COMMENTS & REPORTS
HEARINGS
Published in the Modesto Bee on June 26, 2026
25. Hearing to consider applying for and participating in the Prohousing Designation Program administered by the California Department of Housing and Community Development (HCD). (Funding Source: General Fund)
Staff Recommendation:
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• Resolution of the City Council of the City of Modesto authorizing application to and participation in the Prohousing Designation Program administered by the California Department of Housing and Community Development (HCD), and authorizing the City Manager, or designee, to execute all documents necessary to submit and complete the application.
CED; Taranjot Khehra, 209-577-5239, [email protected] Published in the Modesto Bee on July 1, 2026.
26. Hearing to consider approving the application and issuance of a Permit to operate as a Non-Emergency Medical Transport Company to Khan Healthcare in the City of Modesto. (Funding Source: General Fund)
Staff Recommendation:
• Resolution approving the application and issuance of a Permit to operate as a Non-Emergency Medical Transport Company to Khan Healthcare in the City of Modesto.
POLICE DEPARTMENT; Joseph Bottoms, 209-572-9500, [email protected] Published in the Modesto Bee on July 1, 2026.
27. Hearing to consider approving the application and issuance of a Permit to operate as a Non-Emergency Medical Transport Company to Heartway Transport LLC in the City of Modesto. (Funding Source: General Fund)
Staff Recommendation:
• Resolution approving the application and issuance of a Permit to operate as a Non-Emergency Medical Transport Company to Heartway Transport LLC in the City of Modesto.
POLICE DEPARTMENT; Joseph Bottoms, 209-572-9500, [email protected]
MATTERS TOO LATE FOR THE AGENDA
These may be presented by members of the City Council and staff upon determination by a majority vote that an emergency exists, as defined by State law, or by a 2/3 vote that (1) there is a need to take immediate action, and (2) that the need for action came to the City’s attention after the agenda was posted.
ADJOURNMENT
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place at by
date time signature
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community & Economic Development SUBJECT: Accepting resignation of Jamie Reed from the Entertainment Commission CONTACT: Amber Abruzzo, Administrative Office Assistant III [email protected], 209-577-5244
DESCRIPTION:
Consider accepting the resignation of Jamie Reed from the Entertainment Commission. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto’s 2025-2026 Strategic Plan, Goal I: Promote trust and engagement between the community and the City by enhancing responsiveness, communicating broadly about City opportunities and challenges and increasing participation in municipal affairs.
BACKGROUND:
The Entertainment Commission is responsible for overseeing the entertainment permit process, including dance and processing of special event requests within the City of Modesto. The Commission’s purpose is to encourage the development of new entertainment businesses as well as assist the organizers and operators to plan and coordinate City services for major events. This will allow the business or event to flourish while meeting the City’s public health, safety and welfare needs.
DISCUSSION:
On August 22, 2025, by Resolution No 2025-255, Jamie Reed was appointed to the Entertainment Commission with a term expiration date of December 31, 2027. On May 21, 2026, Jamie Reed formally resigned from the Entertainment Commission. #4..
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City Council, July 14, 2026
Accepting resignation of Jamie Reed from the Entertainment Commission
FISCAL IMPACT:
Appointing members to a committee is administrative in nature, therefore, does not have a fiscal impact on the General Fund.
COMMITTEE RECOMMENDATION:
This item is for a resignation which goes directly to Council for approval.
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution accepting the resignation of Jamie Reed from the Entertainment Commission.
Approved by:
Jessica Hill, Director of Community &
Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. JamieReed_Resignation_Redacted
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07/14/2026/CED/AAbruzzo/Item X 1 2026-XX
MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX
RESOLUTION ACCEPTING THE RESIGNATION OF JAMIE REED FROM THE
ENTERTAINMENT COMMISSION
WHEREAS, on August 22, 2025, by Resolution No 2025-255, Jamie Reed was appointed to the Entertainment Commission with a term expiration date of December 31, 2027; and
WHEREAS, on May 21, 2026, Jamie Reed formally resigned from the Entertainment Commission; and
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Modesto hereby accepts the resignation of Jamie Reed from the Entertainment Commission with regret.
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07/14/2026/CED/AAbruzzo/Item X 2 2026-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of July, 2026, by , who moved its adoption, which motion being duly seconded by , was upon roll call carried and the resolution adopted by the following vote:
AYES:Councilmembers:
NOES:Councilmembers:
ABSENT:Councilmembers:
ATTEST: ______________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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Citizen's Advisory Group Letter of Resignation Submittal 05/21/2026 6:59 AM (PDT)
Citizen Advisory Group Letter of Resignation
Title II Compliance
In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website.
Name Jamie Reed
Phone Number
Email Address
Mailing Address
City Modesto
State CA
Zip Code
Which Citizen Advisory Group are
you resigning from?
Entertainment Commission
Why do you want to resign from
this Citizen Advisory Group?
I have loved being on the Entertainment Commission! Unfortunately, the meeting schedule no longer works for me as I also am a stay-at-home mom to an almost two-year-old and I no longer have backup childcare available during the meeting times. Additionally, I am expecting a second baby in the fall, so my schedule is going to become more unpredictable and difficult to work around very soon. I hope to be able to join another Citizen Advisory Group one day! Signature
Thank you for providing this information. After clicking ‘Submit’ you will receive a Submission ID number that can be retained for future reference.
You will be updated by our staff, if necessary, as your resignation form is processed.
Have a great day!
Submission ID: f1a7057e-bd93-46e0-bd8a-232b772f5b42 Page 1/1 #4..
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 12, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Appointments to the Entertainment Commission
CONTACT: Amber Abruzzo, Administrative Office Assistant III, [email protected], 209-577-5276
DESCRIPTION:
Consider appointing Sara Lytle-Pinhey and John Griswold to fill two (2) vacancies to the City of Modesto Entertainment Commission as a non-permit holder with a partial term ending December 31, 2028, and appointing William Patterson to fill one (1) vacancy of a non-profit/special event permit holder for a partial term ending December 31, 2028. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto’s 2025-2026 Strategic Plan, Goal I: Promote trust and engagement between the community and the City by enhancing responsiveness, communicating broadly about City opportunities and challenges and increasing participation in municipal affairs.
BACKGROUND:
The Entertainment Commission was established to oversee the entertainment permit process, including dance permits and the processing of special event requests within the City of Modesto. The Commission’s purpose is to encourage the development of new entertainment businesses as well as assist the organizers and operators to plan and coordinate City services for major events. This will allow the business or event to flourish while meeting the City’s public health, safety and welfare needs.
DISCUSSION:
There are three (3) vacancies on the Entertainment Commission, these vacancies are a result of resignations from the commission members. Two resignations are for non-permit holders. The first resignation occurred on September 9, 2025, by Jennifer Anne Aoyama Valenzula and the other occurred on March 16, 2026 by Ricardo Ortiz. Both vacancies #5..
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City Council, July 14, 2026
Appointments to the Entertainment Commission
had partial terms remaining until December 31, 2028. The last vacancy is for a nonprofit/special event permit holder. Elizabeth Buenrostro resigned from the Entertainment Commission on April 14, 2026. This position also has a partial term remaining until December 31, 2028. These vacancies are to be filled by prospective candidates, recommended by the Appointments Committee, with final approval by the City Council.
Citizen applications for vacant committee positions are accepted online and the attached applicants applied between January 2026 and May 2026 indicating interest in various committees, including the Entertainment Commission. We received a total of three (3) applications for the non-permit holder, and one (1) application for the non-profit/special event permit holder. Staff were able to confirm all individuals remain interested in the positions.
FISCAL IMPACT:
There is no fiscal impact related to this action.
COMMITTEE RECOMMENDATION:
On June 3, 2026, Appointments Committee made a motion recommending the appointment of Sara Lytle-Pinhey and John Griswold for the two (2) non-permit holder vacancies, both with partial terms ending on December 31, 2028. Committee also recommends the appointment of William Patterson for the Non-Profit/Special Event Holder vacancy with a partial term ending on December 31, 2028.
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the appointment of Sara Lytle-Pihney, John Griswold, and William Patterson to the Entertainment Commission for partial terms ending December 31, 2028.
Approved by:
Jessica Hill, Director of Community and
Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
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City Council, July 14, 2026
Appointments to the Entertainment Commission
2. Entertainment Commission By-Laws
3. Board Applications
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05/06/2026/CED/JHill 1 2026-
MODESTO CITY COUNCIL
RESOLUTION NO. 2026-
RESOLUTION APPROVING THE APPOINTMENT OF SARA LYTLE-PIHNEY,
JOHN GRISWOLD, AND WILLIAM PATTERSON TO THE ENTERTAINMENT COMMISSION FOR PARTIAL TERMS ENDING DECEMBER 31, 2028
WHEREAS, Section 1102 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions; and WHEREAS, the Entertainment Commission is currently seeking to fill three vacancies following the resignations of Jennifer Anne Aoyama Valenzula on September 9, 2025, Ricardo Ortiz on March 16, 2026, and Elizabeth Buenrostro on April 14, 2026; and
WHEREAS, on June 3, 2026, Appointments Committee made a motion recommending the appointment of Sara Lytle-Pinhey and John Griswold for the two (2) non-permit holder vacancies, both with partial terms ending on December 31, 2028. Committee also recommends the appointment of William Patterson for the Non-Profit/Special Event Holder vacancy with a partial term ending on December 31, 2028.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Council of the City of Modesto that it herby is approves the appointment of Sara Lytle-Pihney, John Griswold, and William Patterson to the Entertainment Commission for partial terms ending December 31, 2028.
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05/06/2026/CED/JHill 2 2026-
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th of July, 2026 by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST: ___________________________
DIANE NAYARES-PEREZ, CMC City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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1 Rules and Procedures
Of the
Entertainment Commission
Article I
Organization
Section 1.1 Establishment. The Entertainment Commission of the City of Modesto, hereafter called “The Commission”, is established pursuant to the provisions of Chapter I of Title X of the Modesto Municipal Code.
Article II
Powers and Duties
Section 2.1 Enumerated. The Commission shall have the following powers and duties:
a) Perform all of the functions assigned to the Entertainment Commission by the City of Modesto, insofar as they are not inconsistent with the provisions of the Charter of the City of Modesto.
b) Review and render decision on applications for an Entertainment Establishment Permit or Special Event Permit.
c) Approve or disapprove punitive actions on violations of the Entertainment Ordinance and/or Permit.
d) Place conditions and modifications on any Entertainment Establishment Permit or Special Event Permit prior to approval.
e) Suspend, revoke and deny Entertainment Establishment Permit or Special Event Permit.
f) Conduct appeal hearing regarding imposition of fines and/or penalties and may affirm, modify, or suspend the imposition of such fines and penalties. #5..
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2 g) Coordinate with relevant City departments any inspection or investigation regarding the Entertainment Establishment Permit or Special Event Permit.
h) Periodically review the Entertainment Establishment Ordinance and recommend needed changes to the City Council.
Article III
Number of Commissioners
Section 3.1 Number. The authorized number of Commissioners shall be seven (7). Each application for membership to the Commission shall be reviewed by the Safety and Communities Committee prior to being forwarded to City Council for appointment. In addition, there shall be a City staff person assigned as the Permit Administrator to the Commission.
Section 3.2 Alternates. In addition to the seven (7) Commissioners, the City Council shall also appoint two (2) alternates to step in to serve, on a rotating basis, when a Commissioner is absent. The alternate shall serve a term of four (4) years.
Section 3.3. Member Composition. Membership composition for the Entertainment Commission shall be: one (1) business permit holder, one (1) non-profit/special event permit holder, one (1) representatives from the Board of Directors of an economic/tourist establishment that promotes Modesto (such as the Modesto Convention and Visitors Bureau or the Downtown Improvement District), three (3) at-large citizens (non-permit holders), one (1) Event Planning or Marketing Specialist, and two (2) alternates to be non-permit holders.
Article IV
Designated Commissioners
Section 4.1 Designation. Seven (7) of the Commissioners shall be designated as holding office for four (4) year terms. The Commissioners shall serve at the pleasure of the City Council and shall serve until a successor has been designated and qualified.
No person shall serve more than two (2) consecutive terms as a Commissioner. #5..
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3 Commission Members are eligible for reappointment to the Commission after a two (2) year absence.
Section 4.2 Initial Term. For purposes of staggering the terms of the Commissioners, the initial appointment shall have terms as follows: three (3) Commissioners shall have initial terms of four (4) years, two (2) Commissioners shall have initial terms of three (3) years, and two (2) Commissioners shall have initial terms of two (2) years. One alternate shall have an initial term of two (2) years and another alternate shall have an initial term of three (3) years. All terms of the initial appointees to the Commission shall be one alternate shall serve for a two (2) year period and one alternate shall server for a three (3) year term as the initial one deemed to commence upon the same date, which shall be the date upon which the last of the seven (7) initial appointees assumes office.
Thereafter, all appointments and reappointments shall be for a term of four (4) years.
Article V
Effective Date
Section 5.1 Effective Date. Aside from the initial term and vacancies, the term of office shall be effective as of the 1st of January. Serving any portion of an unexpired term shall not be counted as service of one term. Members not eligible for reappointment may continue to serve until their successors are appointed and meet all of the qualifications outlined in Sections 9 and 10.
Article VI
Term of Office
Section 6.1 Service. The term of office for the Commissioners will be set to coincide with the term as described in Sections 4.1 and 4.2. Each member’s term shall terminate on December 31 of his or her respective year.
Article VII
Compensation
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4 Section 7.1 Pay. The members of the Commission shall receive no compensation for the performance of their official duties.
Article VIII
Vacancy Appointments
Section 8.1 Appointments. Appointments to fill vacancies on the Commission shall be handled in the same manner as original appointments. When a vacancy occurs during a term, the appointment to fill such a vacancy shall be for the unexpired portion of the term. Appointments shall be made in a timely manner.
Section 8.2 Vacancy on Board.
a. Resignation – The resignation or death of any Commissioner. b. Attendance – Unexcused absence from three (3) consecutive regular meetings or five (5) or more regular meetings in a twelve (12) month period shall result in the position being vacated. Excused absences shall include illness, medical reasons, work related conflicts, and jury duty which shall be authorized provided that notification is given to the appropriate staff member by telephone, facsimile, mail or email at least 48 hours prior to such absence. In addition, attendance shall be recorded in the minutes of monthly meetings, and such minutes shall be transmitted to the Commissioners at the Commission meeting.
c. Qualifications – The Commissioner no longer meets the qualifications set forth in Sections 9 and 10.
Article IX
Qualifications
Section 9.1 Qualifications. Commissioners shall be chosen without discrimination on the basis of race, sex, sexual preference, color, religion, age, national origin, income, marital status or handicap. Commissioners are required to complete and file Form 700 with the City Clerk’s Office annually. Additionally, Commissioners shall at all times comply with all applicable conflict of interest laws.
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5 Article X
Residency
Section 10.1 Residency. The members of the Commission shall reside in the City of Modesto at the time of appointment and must maintain residence within the City limits throughout their term(s).
Article XI
Meetings
Section 11.1 Meetings. Regular meetings of the Commission shall be held twice a month, unless cancelled. Special meetings of the Commission may be held at any time by the Chair of the Commission or by a majority of the Commissioners. The time for regular meetings and special meetings of this Commission shall be provided for by Commission resolution or, if none, by the Chair. All meetings shall be held at 1010 10th Street, City Hall in a room to be scheduled by the facilitating department.
Section 11.2 Notice. Written notice of the time and place of any regular or special meeting of the Entertainment Commission shall be delivered personally to each voting member of the respective body, or sent to each voting member by mail or other form or written delivery, charges prepaid, addressed to him or her at his or her address as it is shown in the corporate records, or by fax or email, sent to him or her at the fax or email address shown in the corporate records. Any such notice shall be mailed, delivered, faxed or emailed at least seventy-two (72) hours before the date of a regular meeting, and at least twenty-four (24) hours before the time of a special meeting.
Article XII
Brown Act Compliance
Section 12.1 Compliance. All meetings of the Commission, or any other committee of the Commission, shall be held in conformity with the Brown Act, found at Government Code §54950 et seq. Accordingly, any and all meetings of the Commission and the Commission’s committees to which the Brown Act applies, shall be open and public. #5..
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6 a. “Meeting” Defined. A “meeting” under the provisions of the Brown Act includes any congregation of a majority of the members of the Commission, or any other committee of the Commission to which the Brown Act applies, at the same time and place to hear, discuss, or deliberate upon any item that is within the subject matter jurisdiction of any such body or the local agencies to which it pertains.
b. Notice. Where required by the Brown Act, the Commissioners shall:
i. Cause mailed notice of any regular meeting to be sent at least seventy-two (72) hours prior to the date set for the meeting to any and all persons who have filed a written request for that notice with the Commissioners.
ii. Cause mailed notice of any special meeting to be given as deemed practical, provided it otherwise complies with Brown Act requirements, where the special meeting is called less than seventy-two (72) hours prior to the date set for the meeting to any and all persons who have filed a written request for that notice with the Commissioners.
iii. Cause notice of any special meeting of the Commissions to be personally delivered or mailed to each local newspaper of general circulation, radio or television station requesting notice in writing, said notice, stating time, place and business to be transacted, to be received at least twenty-four
iv. Cause notice of the date, time and location of any regular meeting, and an agenda containing a brief general description of each item of business to be transacted or discussed at the meeting, to be posted at least seventy-two (72) hours prior to the meeting in a location that is freely accessible to members of the public; and v. Cause notice of the date, time, and location of any special meeting to be posted at least twenty-four (24) hours prior to the special meeting in a location that is freely accessible to members of the public.
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7 c. Agenda. Every meeting agenda mailed or posted shall provide an opportunity for members of the public to directly address the Commissioners on any item of interest to the public, before or during consideration of the item.
d. Adjournment. Where a meeting is adjourned, the time and place to which it is adjourned shall be announced at the time of adjournment, and the time and place so announced shall be conspicuously posted on or near the door of the place where the regular, adjourned regular, special or adjourned special meeting was held within twenty-four (24) hours after the time of adjournment. Written notice of said adjournment shall be given in the same manner as provided for special meetings under Article 5, §C2, subsections b, c and e of these bylaws. Where a regular meeting or adjourned regular meeting is adjourned, the resulting adjourned meeting is a regular meeting for all purposes, including notice.
e. Cancellation of Scheduled Meetings. The Chair may cancel any scheduled meeting when in his/her opinion there is no policy matter requiring a full Commission meeting, or due to lack of quorum.
Article XIII
Meeting Quorum
Section 13.1 Quorum.
a. Meetings of the Commission. At least half of the whole number of Commissioners appointed and seated on the Commission shall constitute a quorum for the transaction of business by the Commission of the organization and every act or decision of a majority of the seated Commissioners present at a meeting at which at least a quorum is present, made or done when duly assembled, shall be valid as the act of the Commission. A majority of those present at the time and place of any stated or special meeting, although less than a quorum, may adjourn without further notice. When a quorum shall attend, any business may be transacted that might have been transacted at the meeting had the same #5..
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8 been held on the day which the same was originally appointed or called.
Should a meeting be held with less than a quorum present, any business transacted thereat may be advisory only and not valid as an act of the Commission. Every voting member or member of the Commission shall have one vote for the transaction of business of the corporation, and the use of proxy votes is prohibited.
b. Conduct of Meeting. The Chair of the Commission, or in his or her absence, the Vice-Chair, or in the absence of the Vice-Chair, a chairperson elected by the Commissioners present, shall call the meeting to order, and shall act as the presiding officer thereof. c. Minutes. The Permit Administrator or his/her designee shall cause the minutes of all meetings to be recorded, and in his or her absence, the presiding officer may appoint any person to act as recorder. These minutes shall be promptly mailed to each member of the Commission having met, and to each member of the Commission, and a copy shall be filed in the appropriate office in the City of Modesto.
Article XIV
Procedures, Powers, Duties
and Staff
Section 14.1 Designated. The provisions of the Municipal Code of the City of Modesto pertaining to procedures, powers, duties, and staff shall prevail. The Permit Administrator or his/her designee shall serve as the Secretary to the Commission. The Secretary shall keep a written record of all business transacted by the Commission, notify Commission members of meetings, and keep the official records of the Commission.
Article XV
Rules of Order
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9 Section 15.1 Rules. All meetings of the Commission shall be conducted in accordance with the Roberts Rules of Order and any applicable rules, procedures and policies adopted by the Commission. These rules, procedures and policies can be amended from time to time by the Commission as necessary.
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Boards, Commissions and Committees Application
04/10/2026 3:50 PM (PDT)
Advisory Boards and Commissions Application
City of Modesto
Title II Compliance
In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website.
Which Board, Committee or
Commission are you expressing
interest in?
Entertainment Commission
About the Entertainment Commission
The Entertainment Commission is responsible for overseeing the entertainment permit process and processing of special event requests within the City of Modesto. The Entertainment Commission’s purpose is to encourage the development of new entertainment businesses as well as assist the organizers and operators to plan and coordinate City services for major events. This will allow the business or event to flourish while meeting the City’s public health, safety, and welfare needs.
Membership Requirements
The Entertainment Commission shall be comprised of seven (7) members. In additional to the seven (7) Commissioners, two (2) alternates shall step in to serve, on a rotating basis, when a Commissioner is absent.
Membership composition for the Entertainment Commission shall be:
One (1) Business Permit Holder
One (1) Non-Profit/Special Event Permit Holder
Two (2) Representatives from the Board of Directors of an Economic/Tourist Establishment that Promotes Modesto
Two (2) At-Large Citizens (Non-Permit Holders)
One (1) Culture Commission Member
Two (2) Alternates to be Non-Permit Holders
Qualifications and Eligibility
Commissioners shall be chosen without discrimination on the basis of race, sex, sexual preference, color, religion, age, national origin, income, marital status or handicap.
Commissioners are required to complete and file Form 700 with the City Clerk’s Office annually.
Commissioners shall at all times comply with all applicable conflict of interest laws.
The members of the Commission shall reside in the City of Modesto at the time of appointment and must maintain residence within the City limits throughout their term(s).
Powers and Duties
Perform all of the functions assigned to the Entertainment Commission by the City of Modesto, insofar as they are not inconsistent with the provisions of the Charter of the City of Modesto.
Review and render decision on applications for an Entertainment Establishment Permit or Special Event Permit.
Approve or disapprove punitive actions on violations of the Entertainment Ordinance and/or Permit.
Place conditions and modifications on any Entertainment Establishment Permit or Special Event Permit prior to approval.
Suspend, revoke and deny Entertainment Establishment Permit or Special Event Permit.
Conduct appeal hearing regarding imposition of fines and/or penalties and may affirm, modify, or suspend the imposition of such fines and penalties.
Coordinate with relevant City departments any inspection or investigation regarding the Entertainment Establishment Permit or Special Event Permit.
Periodically review the Entertainment Establishment Ordinance and recommend needed changes to the City Council.
Terms of Office
Members shall be designated as holding office for four (4) year terms.
Submission ID: e9cc62c9-ae8e-49f5-91c9-5b1072c560b4 Page 1/7 #5..
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The Commissioners shall serve at the pleasure of the City Council and shall serve until a successor has been designated and qualified.
No person shall serve more than two (2) consecutive terms as a Commissioner.
Commission Members are eligible for reappointment to the Commission after a two (2) year absence.
Meetings
Entertainment Commission meetings occur every first and third Thursday of the month at 4:30PM at 1010 10th Street, Modesto, CA, 95354 (room location may vary).
Read full ByLaws, membership requirements and view current members and vacancies.
Are you currently serving on this
board?
No
Have you ever served on this
board?
Yes
What was the term end-date for
when you served on this board?
05/01/2016
Have you previously served or are
you currently serving on a Board,
Committee or Commission for the
City Modesto?
Yes
Previous Boards or Commissions
i. Name of Board or Commission
Entertainment Commission
Start Date
03/10/2009
End Date
05/01/2016
Submission ID: e9cc62c9-ae8e-49f5-91c9-5b1072c560b4 Page 2/7 #5..
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Applicant Information & Background
First Name Sara
Last Name Lytle-Pinhey
Phone Number
Email Address
Occupation Executive Officer, Stanislaus LAFCO
Your Address
City Modesto
State California
Zip
Are you a paid employee of the
City of Modesto?
No
Education CSU Stanislaus - Bachelor of Science in Business Admin, minor in Economics Document Uploads
You may upload a cover letter and resume to outline your educational, work and community service experiences.
Submission ID: e9cc62c9-ae8e-49f5-91c9-5b1072c560b4 Page 3/7 #5..
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Qualifications
Are you a Business Entertainment
Permit Holder in the City of
Modesto?
No
Are you a member of a Non-profit
that has had a Special Event
Permit in the City of Modesto?
No
Are you a Board of Director
member of Economic/Tourist
establishment that promotes
Modesto?
No
List relevant employment,
training, and experience,
certificates of training, licenses,
and professional registration.
Served on the Entertainment Commission during its inception in 2009. Previously worked as a land use planner for Stanislaus County reviewing business licenses and Alcoholic Beverage Control applications for "public convenience and necessity" approvals.
Explain how you learned about
the board or commission you are
applying for
Social media
Describe your involvement in
community activities and civic
organizations. (Do not list partisan
political parties.)
I currently serve on the Legislative Committee for the California Association of LAFCOs. I am a member of the Friends of the Modesto Library as well as the State Theatre and regularly support local entertainment and venues.
What is it about this position that
interests you?
Having previously served, I'm interested to see how the Commission has progressed since that time and how the City has streamlined the process for businesses seeking entertainment permits.
What qualities, experience, and
expertise would you bring to the
Board, Commission or
Committee?
I'm familiar with the municipal codes related to entertainment permits for business establishments and special events. I'm also familiar with the rules and procedures of the Commission itself, as well as Brown Act compliance and Roberts Rules of Order.
Submission ID: e9cc62c9-ae8e-49f5-91c9-5b1072c560b4 Page 5/7 #5..
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Questionnaire
How did you learn about the
board for which you are applying?
Other (Please specify)
Other (Please Specify) Public meetings when the City first adopted ordinances related to entertainment permits
Submission ID: e9cc62c9-ae8e-49f5-91c9-5b1072c560b4 Page 6/7 #5..
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Signature Agreement
Signature
Date Applied 04/10/2026
Application Disclosure
Members of the City Advisory Groups must disclose financial interests, including investments, businesses, and rental properties. Members are required to file Statements of Economic Interest when they assume office, annually, and upon leaving office.
Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.
Confirmation Required Yes, I confirm and acknowledge the above responsibilities and understand that my application is a public document and may be disclosed upon request.
Thank you for providing this information. After clicking ‘Submit’ you will receive a Submission ID number that can be retained for future reference.
You will be updated by our staff as your submission is processed.
Have a great day!
Submission ID: e9cc62c9-ae8e-49f5-91c9-5b1072c560b4 Page 7/7 #5..
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Boards, Commissions and Committees Application
04/09/2026 2:52 PM (PDT)
Advisory Boards and Commissions Application
City of Modesto
Title II Compliance
In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website.
Which Board, Committee or
Commission are you expressing
interest in?
Entertainment Commission
About the Entertainment Commission
The Entertainment Commission is responsible for overseeing the entertainment permit process and processing of special event requests within the City of Modesto. The Entertainment Commission’s purpose is to encourage the development of new entertainment businesses as well as assist the organizers and operators to plan and coordinate City services for major events. This will allow the business or event to flourish while meeting the City’s public health, safety, and welfare needs.
Membership Requirements
The Entertainment Commission shall be comprised of seven (7) members. In additional to the seven (7) Commissioners, two (2) alternates shall step in to serve, on a rotating basis, when a Commissioner is absent.
Membership composition for the Entertainment Commission shall be:
One (1) Business Permit Holder
One (1) Non-Profit/Special Event Permit Holder
Two (2) Representatives from the Board of Directors of an Economic/Tourist Establishment that Promotes Modesto
Two (2) At-Large Citizens (Non-Permit Holders)
One (1) Culture Commission Member
Two (2) Alternates to be Non-Permit Holders
Qualifications and Eligibility
Commissioners shall be chosen without discrimination on the basis of race, sex, sexual preference, color, religion, age, national origin, income, marital status or handicap.
Commissioners are required to complete and file Form 700 with the City Clerk’s Office annually.
Commissioners shall at all times comply with all applicable conflict of interest laws.
The members of the Commission shall reside in the City of Modesto at the time of appointment and must maintain residence within the City limits throughout their term(s).
Powers and Duties
Perform all of the functions assigned to the Entertainment Commission by the City of Modesto, insofar as they are not inconsistent with the provisions of the Charter of the City of Modesto.
Review and render decision on applications for an Entertainment Establishment Permit or Special Event Permit.
Approve or disapprove punitive actions on violations of the Entertainment Ordinance and/or Permit.
Place conditions and modifications on any Entertainment Establishment Permit or Special Event Permit prior to approval.
Suspend, revoke and deny Entertainment Establishment Permit or Special Event Permit.
Conduct appeal hearing regarding imposition of fines and/or penalties and may affirm, modify, or suspend the imposition of such fines and penalties.
Coordinate with relevant City departments any inspection or investigation regarding the Entertainment Establishment Permit or Special Event Permit.
Periodically review the Entertainment Establishment Ordinance and recommend needed changes to the City Council.
Terms of Office
Members shall be designated as holding office for four (4) year terms.
Submission ID: c0c1dac7-6118-4926-b2d0-e6a720535852 Page 1/7 #5..
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The Commissioners shall serve at the pleasure of the City Council and shall serve until a successor has been designated and qualified.
No person shall serve more than two (2) consecutive terms as a Commissioner.
Commission Members are eligible for reappointment to the Commission after a two (2) year absence.
Meetings
Entertainment Commission meetings occur every first and third Thursday of the month at 4:30PM at 1010 10th Street, Modesto, CA, 95354 (room location may vary).
Read full ByLaws, membership requirements and view current members and vacancies.
Are you currently serving on this
board?
No
Have you ever served on this
board?
No
Have you previously served or are
you currently serving on a Board,
Committee or Commission for the
City Modesto?
No
Submission ID: c0c1dac7-6118-4926-b2d0-e6a720535852 Page 2/7 #5..
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Applicant Information & Background
First Name John
Last Name Griswold
Phone Number
Email Address
Occupation Interior Design, Concert promoter, founder and officer of a non-profit group Your Address
City MODESTO
State California
Zip
Are you a paid employee of the
City of Modesto?
No
Education AA Degree in Architecture
Document Uploads
You may upload a cover letter and resume to outline your educational, work and community service experiences.
Submission ID: c0c1dac7-6118-4926-b2d0-e6a720535852 Page 3/7 #5..
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Applicant Demographics
City of Modesto invites all applicants to voluntarily self-identify their gender, race/ethnicity, veteran status and disability. Submission of this information is voluntary and refusal to provide will not affect the application process. The information will be kept confidential and will only be used in accordance with the provisions of applicable laws, executive orders and regulations, including those that require the information to be summarized and reported to the federal government for civil rights enforcement.
Ethnicity
Are you currently, or have you
ever, served in the Armed
Forces?
Do you consider yourself
disabled?
Submission ID: c0c1dac7-6118-4926-b2d0-e6a720535852 Page 4/7 #5..
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Qualifications
Are you a Business Entertainment
Permit Holder in the City of
Modesto?
No
Are you a member of a Non-profit
that has had a Special Event
Permit in the City of Modesto?
Yes
Which non-profit and which
special event?
Founder of Red Tie Arts and responsible for the Re Opening of the State Theatre in 1994
Are you a Board of Director
member of Economic/Tourist
establishment that promotes
Modesto?
No
List relevant employment,
training, and experience,
certificates of training, licenses,
and professional registration.
Started my commercial Interior Design business in 1970. Opened the State Theatre in 1994, Founded Red Tie Arts, an agency that funds underserved children for the study of the arts, in 2013. Was a certified, licensed commercial interior designer. (ASID and IBD)
Explain how you learned about
the board or commission you are
applying for
Facebook
Describe your involvement in
community activities and civic
organizations. (Do not list partisan
political parties.)
I was a member of the Arts Commission years ago when it was a mayoral appointment. I Helped restart the current Arts Coucil. I was on the board of the Haven Women's Center. I worked on many fundraisers for several non=profits What is it about this position that
interests you?
As a person who has applied for entertainment permits and became frustrated at the process, I would like to work to streamline the process. The process was so frustrating that I took my fundraising concerts to Ripon and ran 9 years' worth of very successful fundraising concerts. I would like to explore ways to make the whole process more encouraging for folks to obtain permits.
What qualities, experience, and
expertise would you bring to the
Board, Commission or
Committee?
I have over 30 years of experience in the event and entertainment business Submission ID: c0c1dac7-6118-4926-b2d0-e6a720535852 Page 5/7 #5..
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Questionnaire
How did you learn about the
board for which you are applying?
Other (Please specify)
Other (Please Specify) Facebook
Submission ID: c0c1dac7-6118-4926-b2d0-e6a720535852 Page 6/7 #5..
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Signature Agreement
Signature
Date Applied 04/09/2026
Application Disclosure
Members of the City Advisory Groups must disclose financial interests, including investments, businesses, and rental properties. Members are required to file Statements of Economic Interest when they assume office, annually, and upon leaving office.
Please confirm that you acknowledge the above responsibilities and understand that your application is a public document and may be disclosed.
Confirmation Required Yes, I confirm and acknowledge the above responsibilities and understand that my application is a public document and may be disclosed upon request.
Thank you for providing this information. After clicking ‘Submit’ you will receive a Submission ID number that can be retained for future reference.
You will be updated by our staff as your submission is processed.
Have a great day!
Submission ID: c0c1dac7-6118-4926-b2d0-e6a720535852 Page 7/7 #5..
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Entertainment Commission Application
What vacancy are you interested in?
Position 8
Previous or Current Service
Are you currently serving on this board?
No
Have you ever served on this board?
No
Have you previously served or are you currently serving on a Board, Committee or Commission for the City Modesto?
No
Applicant Information & Background
First Name
william
Last Name
patterson
Phone Number
REDACTED
Email Address
REDACTED
Occupation
Modesto City Schools
Administrator
Your Address
REDACTED
City
Modesto
State
CA
Zip
95356
Are you a paid employee of the City of Modesto?
No
Education
B.A. Business Management
Applicant Demographics
Qualifications
E-Filed
05/11/2026
14:33:19
Filing ID:
13129
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2/3
Are you a Business Entertainment Permit Holder in the City of Modesto? Reponse
No
Are you a member of a Non-profit that has had a Special Event Permit in the City of Modesto? Reponse
No
Are you a Board of Director member of Economic/Tourist establishment that promotes Modesto? Reponse
No
List relevant employment, training, and experience, certificates of training, licenses, and professional registration.
I am currently an Administrator for Modesto City Schools. I have be employed by MCS for 11 years and 4 of those years have been as an administrator Explain how you learned about the board or commission you are applying for Jeremiah Williams is a close friend and mentor. He spoke to me about applying.
Describe your involvement in community activities and civic organizations. (Do not list partisan political parties.)
I have been involved in the community of Modesto since I was born. MY father Richard Patterson was the first African American to be on MCS school board and he was the second African American to become a City Council Member. So I have always had pride and involvement within Modesto.
What is it about this position that interests you?
My current title for MCS is Student Engagement Specialist. I want students of MCS to feel connected to this City the way I am. So I hope to start the work with being apart of Entertainment commission
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3/3
What qualities, experience, and expertise would you bring to the Board, Commission or Committee? The perspective of some who was born and raised in Modesto and know I work directly with the future community members of this great city. The students of MCS can take more pride and feel more connected to Modesto if there were things to entertain them and keep them out of trouble.
Questionnaire
How did you learn about the board for which you are applying? Place of Employment
Conclusion
Signature
William Patterson
Data Applied
05/11/2026
Confirmation Required
Yes, I confirm and acknowledge the above responsibilities and understand that my application is a public document and may be disclosed upon request. #5..
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6/23/2026 5:30:00 PM
MODESTO CITY COUNCIL
www.modestogov.com
MINUTES
City of Modesto
CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, June 23, 2026 at 5:30 PM
Regular City Council Meeting 5:30 p.m.
Roll Call: Present: Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci (arrived at 5:34 p.m.), Williams, Wright, Mayor Zwahlen
Absent: None
Pledge of Allegiance to the Flag
Invocation: Emily Moreno, College Ave United Church of Christ City Clerk’s Announcements: Written public comment was received and forwarded to Council.
Declaration of Conflicts of Interest: None.
ACKNOWLEDGEMENTS AND PRESENTATIONS
1. Proclamation declaring June 2026 as Disability Rights Month. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] ACTION: Mayor Zwahlen presented the proclamation declaring June 2026 as Disability Rights Month.
2. Proclamation declaring July 2026 as National Parks and Recreation Month. (Funding Source: Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-577-5421, [email protected] #6..
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ACTION: Mayor Zwahlen presented the proclamation declaring July 2026 as National Parks and Recreation Month.
3. Proclamation declaring July 4, 2026 as America's 250th Birthday. (Funding Source:
Not Applicable)
CITY COUNCIL; Breanna Griffin, 209-571-5169, [email protected] ACTION: Mayor Zwahlen presented the proclamation declaring July 4, 2026 as America's 250th Birthday.
MISCELLANEOUS
4. Consider approving the appointment of Kevin Cosgrove, for appointment to fill the Creekside Golf Club representative seat on the City of Modesto Golf Courses Advisory Committee for a four‑year term ending December 31, 2029. (Funding Source: Not Applicable)
Staff Recommendation:
• Resolution approving the appointment of Kevin Cosgrove, for appointment to the Golf Courses Advisory Committee to fill the Creekside Golf Club representative seat for a term ending December 31, 2029.
PRN; Juana Lynch, 209-577-5278, [email protected]
ACTION: (Williams/Alvarez; 7/0) Resolution 2026-221 approving the appointment of Kevin Cosgrove, for appointment to the Golf Courses Advisory Committee to fill the Creekside Golf Club representative seat for a term ending December 31, 2029.
PUBLIC COMMENT PERIOD
• Barry Jackson provided an update on the annual basketball game between Beyer High School students and the Modesto Police Department, which promotes interaction between students and law enforcement. He noted the Police Department's continued participation and support and stated that the event is expected to continue in the future. • Danielle Morgart, representing Assemblymember Juan Alanis, reported that AB 2085 has advanced to the Governor for consideration and announced a community blood drive scheduled for June 29th in Modesto.
• Yesenia Manfut, a Modesto resident and pop-up market organizer, requested the City establish a clear permitting process for pop-up markets on private commercial property after her event was shut down by Code Enforcement. She stated that the markets support local vendors, small businesses, and community engagement, and shared that she is providing workshops to help vendors understand compliance requirements. • Derek Castle shared positive experiences with City services, including the quick response to a sidewalk repair reported through the Go Modesto app and support from #6..
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City staff on community projects. He also raised concerns regarding the need for additional transitional bridge housing options for unsheltered residents and encouraged the City to continue efforts toward addressing homelessness. • Jerry Thompson thanked the City Council and community partners for supporting the Modesto High School auto shop’s lowrider police car project. He highlighted the students’ involvement, skills gained, and participation in the vehicle reveal and community events, and noted continued interest from students in future projects. • Pansy Plata, a Modesto resident and small food business owner, requested clearer communication and a realistic pathway for small vendors to operate legally and grow their businesses. She stated that she supports regulations but emphasized the need for accountability from both vendors and event organizers to ensure requirements and approvals are addressed.
• Jennifer Nunez, a Modesto business owner and pop-up vendor, highlighted the economic benefits of pop-up events, including supporting local businesses, increasing foot traffic, and providing fundraising opportunities for nonprofits. She encouraged continued communication between the City, event organizers, and the business community to address opportunities and concerns related to pop-up markets. • Michelle Strange, a pop-up vendor event organizer, requested clarification on when permits are required and suggested streamlining the permitting process to better support small business events. She stated that pop-up markets help entrepreneurs build clientele and grow toward permanent businesses, and encouraged the City to explore solutions that improve the process while maintaining compliance. • Emerson Drake raised concerns about political donations, transparency, and the potential perception of influence on elected officials. He questioned whether large contributions from developers or outside individuals could create conflicts of interest and emphasized the need for accountability and public trust in local government. • Elizabeth Portillo, a member of the Modesto pop-up community, highlighted the value of pop-up events in supporting entrepreneurship, local economic development, and community engagement. She encouraged the City to consider streamlining permit processes, maintaining reasonable fees, and providing access to spaces that support small business growth.
Written General Public Comments Received (Funding Source: Not Applicable) CITY CLERK; City Clerk, 209-577-5396, [email protected] #6..
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CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS: 5, 7-15 (Wright/Ricci; 7/0)
CONSENT
Consent
5. Consider approving the Minutes for the June 9, 2026 Council Meeting. (Funding Source: Not Applicable)
• Motion approving the Minutes for the June 9, 2026 Council Meeting.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Ricci; 7/0) Motion approving the Minutes for the June 9, 2026 Council Meeting.
Removed from Consent
6. Consider Final Adoption of Ordinance 3815-C.S. amending Section 3-2.1401.1 of Article 14 of Chapter 2 of Title 3 of the Modesto Municipal Code relating to Speed Limits. (Funding Source: Not Applicable)
• Motion approving Final Adoption of Ordinance 3815-C.S. amending Section 3-
2.1401.1 of Article 14 of Chapter 2 of Title 3 of the Modesto Municipal Code relating to Speed Limits.
CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Ricci; 6/1, Escutia-Braaton No) Motion approving Final Adoption of Ordinance 3815-C.S. amending Section 3-2.1401.1 of Article 14 of Chapter 2 of Title 3 of the Modesto Municipal Code relating to Speed Limits.
Consent
7. Consider accepting the Cash Handling Internal Controls Testing Report dated March 26, 2026. (Funding Source: Not Applicable)
• Motion to accept the Cashing Handling Internal Controls Testing Report.
CITY AUDITOR; Colleen Rozillis, 206-302-6795, [email protected] ACTION: (Wright/Ricci; 7/0) Motion to accept the Cashing Handling Internal Controls Testing Report.
Consent
8. Consider accepting the Homelessness Performance Audit Report dated April 3, 2026. (Funding Source: Not Applicable)
• Motion to accept the Homelessness Performance Audit Report.
CITY AUDITOR; Colleen Rozillis, 206-302-6795, [email protected] ACTION: (Wright/Ricci; 7/0) Motion to accept the Homelessness Performance Audit Report.
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Consent
9. Consider accepting the Fiscal Year (FY) 2026-27 Internal Audit Work Plan. (Funding Source: Not Applicable)
• Motion to accept the FY 2026-27 Internal Audit Work Plan.
CITY AUDITOR; Colleen Rozillis, 206-302-6795, [email protected] ACTION: (Wright/Ricci; 7/0) Motion to accept the FY 2026-27 Internal Audit Work Plan.
Consent
10. Consider referring the Appeal of the Entertainment Commission Decision regarding the Business Entertainment Permit for the Vault Nightclub to a Hearing Examiner pursuant to Modesto Municipal Code Section 4-1.418. (Funding Source: Not Applicable)
• Resolution referring the Appeal of the Entertainment Commission Decision regarding the Business Entertainment Permit for the Vault Nightclub to a Hearing Examiner pursuant to Modesto Municipal Code Section 4-1.418 and authorizing the City Manager to appoint the hearing examiner.
CED; Jessica Hill, 209-577-5321, [email protected]
ACTION: (Wright/Ricci; 7/0) Resolution 2026-222 referring the Appeal of the Entertainment Commission Decision regarding the Business Entertainment Permit for the Vault Nightclub to a Hearing Examiner pursuant to Modesto Municipal Code Section 4-1.418 and authorizing the City Manager to appoint the hearing examiner.
Consent
11. Consider approving an Agreement with The Salvation Army to provide operating support for the Access Center Emergency Shelter in an amount not to exceed $486,000. (Funding Source: Permanent Local Housing Allocation)
• Resolution approving an Agreement with The Salvation Army to provide operating support for Access Center Emergency Shelter in an amount not to exceed $486,000, and authorizing the City Manager, or his designee, to execute the Agreement.
• Resolution amending the fiscal year 2025-2026 annual operating and noncapital project fund budgets to establish a project for The Salvation Army Permanent Local Housing Allocation (PLHA) funding in the amount of $486,000 and budgeting the applicable revenue, expenditures, and transfer.
CED; Meggan Clifford, 209-577-5311, [email protected] ACTION: (Wright/Ricci; 7/0) Resolution 2026-223 approving an Agreement with The Salvation Army to provide operating support for Access Center Emergency Shelter in an amount not to exceed $486,000, and authorizing the City Manager, or his designee, to execute the Agreement.
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ACTION: (Wright/Ricci; 7/0) Resolution 2026-224 amending the fiscal year 2025- 2026 annual operating and non-capital project fund budgets to establish a project for The Salvation Army Permanent Local Housing Allocation (PLHA) funding in the amount of $486,000 and budgeting the applicable revenue, expenditures, and transfer.
Consent
12. Consider approving the purchase of four (4) Fleet Additions and three (3) Fleet Replacements in a total amount not to exceed $2,553,227. (Funding Source: Various Funds)
• Resolution approving the Competitive Bidding Process from Sourcewell to Mobark, LLC under the authorized dealer, Pape Machinery, French Camp, CA for the purchase of one (1) Trailer Grinder for an amount not to exceed $1,384,656; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price. • Resolution approving the Competitive Bidding Process from Sourcewell to Deere and Company under the authorized dealer, Belkorg AG, Stockton, CA for the purchase of two (2) John Deere Tractors for an amount not to exceed $798,843; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price. • Resolution approving the Competitive Bidding Process from Sourcewell through State of Minnesota to Rush Truck Centers, Ceres, CA for the purchase of one (1) Ford Transit 350 Van for an amount not to exceed $104,870; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price. • Resolution approving the Competitive Bidding Process from Sourcewell to Rush Truck Centers, Ceres, CA for the purchase of three (3) Ford F-150 Trucks for an amount not to exceed $264,858; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] ACTION: (Wright/Ricci; 7/0) Resolution 2026-225 approving the Competitive Bidding Process from Sourcewell to Mobark, LLC under the authorized dealer, Pape Machinery, French Camp, CA for the purchase of one (1) Trailer Grinder for an amount not to exceed $1,384,656; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price. #6..
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ACTION: (Wright/Ricci; 7/0) Resolution 2026-226 approving the Competitive Bidding Process from Sourcewell to Deere and Company under the authorized dealer, Belkorg AG, Stockton, CA for the purchase of two (2) John Deere Tractors for an amount not to exceed $798,843; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
ACTION: (Wright/Ricci; 7/0) Resolution 2026-227 approving the Competitive Bidding Process from Sourcewell through State of Minnesota to Rush Truck Centers, Ceres, CA for the purchase of one (1) Ford Transit 350 Van for an amount not to exceed $104,870; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
ACTION: (Wright/Ricci; 7/0) Resolution 2026-228 approving the Competitive Bidding Process from Sourcewell to Rush Truck Centers, Ceres, CA for the purchase of three (3) Ford F-150 Trucks for an amount not to exceed $264,858; and authorizing the Director of Finance, or her designee, to issue the Purchase Order; and authorizing the Director of Finance or her designee to execute any Change Orders not to exceed 15% of the total purchase price.
Consent
13. Consider accepting an Informational Report for the April 2026 Accounts Payable Payment Register and Void Report. (Funding Source: Not Applicable) • Motion accepting an Informational Report for the April 2026 Accounts Payable Payment Register and Void Report.
FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Wright/Ricci; 7/0) Motion accepting an Informational Report for the April 2026 Accounts Payable Payment Register and Void Report.
Consent
14. Consider approving the Community/Special Event and Program Grants for grant funding of $4,700 for events and programs planned in the second half of Fiscal Year 2025-2026. (Funding Source: General Fund)
• Resolution approving the Community/Special Event and Program Grants for grant funding of $4,700 for events and programs planned in the second half of Fiscal Year 2025-2026.
PRN; Jeremy Rogers, 209-577-5347, [email protected] ACTION: (Wright/Ricci; 7/0) Resolution 2026-229 approving the Community/Special Event and Program Grants for grant funding of $4,700 for events and programs planned in the second half of Fiscal Year 2025-2026. #6..
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Consent
15. Consider approving the Agreement for On-Call Mechanical and Refrigeration Services to Champion Industrial Contractors, Inc., Modesto, CA for a total amount not to exceed $2,109,797 over five (5) years. (Funding Source: Various Funds) • Resolution approving the Award of Bid and Agreement for On-Call Mechanical and Refrigeration Services to Champion Industrial Contractors, Inc., Modesto, CA for a two (2) year Agreement with three (3) one-year extension options, for an estimated annual amount of $421,960, and a total amount not to exceed $2,109,797 over five (5) years, and authorizing the City Manager, or his designee, to execute the Agreement.
PUBLIC WORKS; Gabe DaSilva, 209-652-2579, [email protected] ACTION: (Wright/Ricci; 7/0) Resolution 2026-230 approving the Award of Bid and Agreement for On-Call Mechanical and Refrigeration Services to Champion Industrial Contractors, Inc., Modesto, CA for a two (2) year Agreement with three (3) one-year extension options, for an estimated annual amount of $421,960, and a total amount not to exceed $2,109,797 over five (5) years, and authorizing the City Manager, or his designee, to execute the Agreement.
Removed from Consent
16. Consider approving an Engineering Services Agreement with HDR Engineering, Inc., of Sacramento, CA for an Agreement total not to exceed $546,500 for the Flood Risk Reduction Feasibility Study Scoping Project. (Funding Source: Wastewater Fund) • Resolution approving an Engineering Services Agreement with HDR Engineering, Inc., of Sacramento, CA, for the Flood Risk Reduction Feasibility Study Scoping Project for a total Agreement amount not to exceed $546,500 and authorizing the City Manager, or his designee, to execute the Agreement.
UTILITIES; Tim Barahona, 209-577-5485, [email protected] ACTION: (Wright/Zwahlen; 7/0) Resolution 2026-231 approving an Engineering Services Agreement with HDR Engineering, Inc., of Sacramento, CA, for the Flood Risk Reduction Feasibility Study Scoping Project for a total Agreement amount not to exceed $546,500 and authorizing the City Manager, or his designee, to execute the Agreement.
Recessed 7:08 p.m.
Reconvened 7:15 p.m.
COUNCIL COMMENTS & REPORTS
• Council Member Ricci raised concerns regarding Stanislaus Animal Services and called for a performance audit and improvements to services. He also discussed the timing of the Graffiti Parade, suggesting changes to increase attendance and economic impact, and encouraged the City to support entrepreneurship through programs such as community kitchens, marketplaces, and support for small businesses. #6..
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• Vice-Mayor Williams provided updates on community events, including the Graffiti Parade, veteran events, and upcoming July 4th activities. He recognized community members and organizations for their contributions, encouraged safe fireworks practices, shared information on upcoming events and memorial services, and congratulated participants in local programs and initiatives. • Council Member Alvarez supported creating a streamlined framework for pop-up events to encourage entrepreneurship and economic development. He also discussed addressing business concerns related to blight and safety, and efforts to restore youth boxing programs through potential funding opportunities. • Council Member Bavaro reported on a neighborhood meeting in Lincoln Estates, highlighting resident concerns about traffic speeds on Scenic Drive and positive feedback regarding police enforcement and emergency services. He supported efforts to assist pop-up businesses through available City resources and recognized Council Member Ricci’s birthday.
• Mayor Zwahlen recognized Council Member Rosa Escutia-Braaton for being named 2026 Comadre of the Year at the Comadres in Action Latinas Empowerment Luncheon. She also announced upcoming community events, including the Gold Runner Passenger Appreciation event, the America’s 250th birthday celebration, and the Independence Day parade.
CITY MANAGER COMMENTS & REPORTS
• City Manager Joe Lopez welcomed new Public Works Director Chad Reed and highlighted his experience and commitment to serving Modesto. He also announced new website tools, including a permitting cost estimator and a housing continuum dashboard to provide information on development costs and housing resources.
HEARINGS
Published in the Modesto Bee on June 10, 2026
17. Hearing to consider approving Fiscal Year 2026-27 Diagram and Annual Assessment and ordering the Levy and Collection of Charges within Landscape Maintenance Assessment District No. 1 for Dry Creek Meadows Subdivisions Nos. 1-6. (Funding Source: Landscape Maintenance District No. 1)
• Resolution ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within Landscape Maintenance Assessment District No. 1 for Dry Creek Meadows Subdivisions Nos. 1-6 for Fiscal Year 2026-27.
CED; Edgar Garcia, 209-577-5211, [email protected] ACTION: (Bavaro/Williams; 7/0) Resolution 2026-232 ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within Landscape Maintenance Assessment District No. 1 for Dry Creek Meadows Subdivisions Nos. 1-6 for Fiscal Year 2026-27.
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Published in the Modesto Bee on June 10, 2026
18. Hearing to consider approving Fiscal Year 2026-27 Diagram and Annual Assessment and ordering the Levy and Collection of Charges within Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2. (Funding Source: Landscape Maintenance District No. 2)
• Resolution ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2 for Fiscal Year 2026-27.
CED; Edgar Garcia, 209-577-5211, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2026-233 ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within Landscape Maintenance Assessment District No. 2 for Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2 for Fiscal Year 2026-27.
Published in the Modesto Bee on June 10, 2026
19. Hearing to consider approving Fiscal Year 2026-27 Diagram and Annual Assessment and ordering the Levy and Collection of Charges within Shackelford Landscape and Lighting District. (Funding Source: Shackelford Landscape and Lighting District) • Resolution ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within the Shackelford Landscape and Lighting District for Fiscal Year 2026-27.
CED; Edgar Garcia, 209-577-5211, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2026-234 ordering the levy and collection of such charges as shown within the Engineer’s Annual Report within the Shackelford Landscape and Lighting District for Fiscal Year 2026-27.
Published in the Modesto Bee on May 24, 2026 and May 31, 2026.
20. Hearing to consider adopting the Draft 2025 Joint Urban Water Management Plan and Water Shortage Contingency Plan Update. (Funding Source: Water Fund) • Resolution adopting the Draft 2025 Joint Urban Water Management Plan and instructing staff to submit the Final 2025 Joint Urban Water Management Plan to the Department of Water Resources by July 1, 2026.
• Resolution adopting the 2025 Water Shortage Contingency Plan and instructing staff to submit the 2025 Water Shortage Contingency Plan as part of the Final 2025 Joint Urban Water Management Plan to the Department of Water Resources by July 1, 2026.
UTILITIES; Miguel Alvarez, 209-577-5348, [email protected] #6..
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ACTION: (Bavaro/Wright; 7/0) Resolution 2026-235 adopting the Draft 2025 Joint Urban Water Management Plan and instructing staff to submit the Final 2025 Joint Urban Water Management Plan to the Department of Water Resources by July 1, 2026.
ACTION: (Bavaro/Wright; 7/0) Resolution 2026-236 adopting the 2025 Water Shortage Contingency Plan and instructing staff to submit the 2025 Water Shortage Contingency Plan as part of the Final 2025 Joint Urban Water Management Plan to the Department of Water Resources by July 1, 2026.
NEW BUSINESS
21. Consider adopting Meeting Technology Disruption and Public Participation and Public Outreach Council Policies to comply with Government Code § 54953.4, effective July 1, 2026. (Funding Source: Not Applicable)
• Resolution adopting a City Council Meeting Technology Disruption Policy to comply with Government Code § 54953.4, effective July 1, 2026. • Resolution adopting a City Council Public Participation and Public Outreach Policy to comply with Government Code § 54953.4, effective July 1, 2026.
CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] ACTION: (Alvarez/Ricci; 7/0) Resolution 2026-237 adopting a City Council Meeting Technology Disruption Policy to comply with Government Code § 54953.4, effective July 1, 2026.
ACTION: (Alvarez/Ricci; 7/0) Resolution 2026-238 adopting a City Council Public Participation and Public Outreach Policy to comply with Government Code § 54953.4, effective July 1, 2026.
22. Consider approving an Ordinance amending the Modesto Municipal Code section related to the “Office of the City Clerk and City Auditor” to create separate sections for the Office of the City Clerk and the Office of the City Auditor. (Funding Source: Not Applicable)
• Motion introducing and waiving the first reading of an Ordinance repealing Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk and Auditor,” of the Modesto Municipal Code; adding Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk,” to the Modesto Municipal Code to clarify that the Office of the City Clerk is a standalone position; and adding Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 20, “City Auditor,” to the Modesto Municipal Code to clarify that the Office of the City Auditor is a standalone position, consistent with the Modesto City Charter.
CITY AUDITOR; Colleen Rozillas, 206-302-6795, [email protected] ACTION: (Wright/Bavaro; 7/0) Motion introducing and waiving the first reading of Ordinance 3816-C.S. repealing Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk and Auditor,” of the Modesto #6..
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Municipal Code; adding Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk,” to the Modesto Municipal Code to clarify that the Office of the City Clerk is a standalone position; and adding Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 20, “City Auditor,” to the Modesto Municipal Code to clarify that the Office of the City Auditor is a standalone position, consistent with the Modesto City Charter.
MATTERS TOO LATE FOR THE AGENDA
None.
ADJOURNMENT
This meeting adjourned at 8:49 p.m.
Attest:____________________________
Diane Nayares-Perez, City Clerk
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- 1 - ORDINANCE NO. 3816-C.S.
EFFECTIVE DATE: August 13, 2026
ORDINANCE NO. 3816-C.S.
AN ORDINANCE REPEALING TITLE 2, “ADMINISTRATION,” CHAPTER 3, “ADMINISTRATIVE DEPARTMENTS,” ARTICLE 3, “OFFICE OF THE CITY CLERK AND AUDITOR,” OF THE MODESTO MUNICIPAL CODE; ADDING TITLE 2, “ADMINISTRATION,” CHAPTER 3, “ADMINISTRATIVE
DEPARTMENTS,” ARTICLE 3, “OFFICE OF THE CITY CLERK,” TO THE
MODESTO MUNICIPAL CODE TO CLARIFY THE OFFICE OF THE CITY CLERK AS A STANDALONE POSITION; AND ADDING TITLE 2, “ADMINISTRATION,” CHAPTER 3, “ADMINISTRATIVE DEPARTMENTS,” ARTICLE 20, “CITY AUDITOR,” TO THE MODESTO MUNICIPAL CODE TO ESTABLISH THE
OFFICE OF THE CITY AUDITOR AS A STANDALONE POSITION CONSISTENT
WITH THE MODESTO CITY CHARTER
WHEREAS, the Modesto Municipal Code currently contains provisions establishing a combined office of City Clerk and City Auditor in Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk and Auditor”; and
WHEREAS, the City Charter separately establishes the offices and functions of the City Clerk and the City Auditor; and
WHEREAS, the City Council desires to repeal the combined City Clerk and City Auditor provisions to reflect current positions and operational practices, clarifying that each office is a standalone position; and WHEREAS, the City Charter establishes the Office of the City Clerk and authorizes the City Council to prescribe the Clerk’s duties by ordinance; and WHEREAS, the City Council desires to codify the duties and authority of the City Clerk as a standalone Charter office within Title 2, Chapter 3, Article 3 of the Modesto Municipal Code; and
WHEREAS, Section 902.1 of the City Charter establishes the Office of the City Auditor and defines the Auditor’s powers and duties; and #7..
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- 2 - ORDINANCE NO. 3816-C.S.
EFFECTIVE DATE: August 13, 2026
WHEREAS, the City Council desires to codify the City Auditor’s Charterbased authority in a separate article of the Modesto Municipal Code to reinforce independence and clarity.
NOW, THEREFORE, the City Council of the City of Modesto does ordain as follows:
SECTION 1. REPEAL OF COMBINED OFFICE
Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk and Auditor;” of the Modesto Municipal Code, including Section 2-3.301, and any other provisions establishing or describing a combined City Clerk and City Auditor, insofar as such provisions establish or describe a combined office, is hereby repealed.
SECTION 2. ADDITION OF OFFICE OF THE CITY CLERK
Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 3, “Office of the City Clerk,” is added to the Modesto Municipal Code to read as follows:
Article 3. - Office of the City Clerk
§ 2-3.301 – City Clerk
The office of the City Clerk is hereby established. This office is an administrative division under the direct control of the City Clerk. The City Clerk shall perform the duties and exercise such authority as prescribed by the Charter, this Code, and the laws of the State of California.
§ 2-3.302 – Powers and Duties
The City Clerk shall perform all duties and exercise all powers prescribed by the Charter and by ordinance, including:
(a) Attending all meetings of the City Council and maintaining a full and accurate record of Council proceedings.
(b) Serving as custodian of City records and the City seal. (c) Maintaining ordinances, resolutions, contracts, and official City documents. (d) Administering oaths and certifying official records. (e) Conducting City elections as required by law.
(f) Publishing official City notices.
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- 3 - ORDINANCE NO. 3816-C.S.
EFFECTIVE DATE: August 13, 2026
(g) Performing such other duties as may be required by the City Council or prescribed by law.
§ 2-3.303 – Acting City Clerk
In case of absence or disability of the City Clerk, the Council shall appoint an Acting City Clerk.
SECTION 3. ADDITION OF OFFICE OF THE CITY AUDITOR
Title 2, “Administration,” Chapter 3, “Administrative Departments,” Article 20, “City Auditor,” is added to the Modesto Municipal Code to read as follows:
Article 20 – City Auditor
§ 2-3.2001 – City Auditor
The Office of the City Auditor is established by the Charter. The office is an administrative division under the direct control of the City Auditor. The City Auditor shall exercise all authority and perform all functions prescribed by the Charter, this Code, and the laws of the State of California. § 2-3.2002 – Powers and Duties
In addition to the duties set forth in Charter Section 902.1, the City Auditor shall:
(a) Conduct financial and performance audits of all City departments, offices, boards, activities, agencies, and programs in accordance with generally accepted government auditing standards.
(b) Conduct special audits and investigations as requested by the City Council, as defined in Charter Section 902.1(c)(2).
(c) Have access to City records necessary to perform authorized audits, and City officers and employees shall fully cooperate.
(d) In consultation with the City Attorney, seek City Council authorization to issue administrative subpoenas and recommend enforcement actions as permitted by law.
(e) Monitor the City’s fraud, waste, and abuse hotline and report quarterly to the Audit Committee.
(f) Perform such other duties as may be required by the City Council. § 2-3.2003 – Acting City Auditor
In case of absence or disability of the City Auditor, the Council shall appoint an Acting City Auditor.
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- 4 - ORDINANCE NO. 3816-C.S.
EFFECTIVE DATE: August 13, 2026
SECTION 4. SEVERABILITY
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are severable. This City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance be enforced.
SECTION 5. CALIFORNIA ENVIRONMENTAL QUALITY ACT
The proposed Ordinance is exempt from the California Environmental Quality Act (CEQA) under the general rule in CEQA Guidelines Section 15061(b)(3), that CEQA only applies to projects that have the potential for causing a significant effect on the environment.
SECTION 6. EFFECTIVE DATE
This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.
SECTION 7. PUBLICATION
At least two (2) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in The Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this Ordinance, the date of its introduction and the places where this Ordinance is posted. #7..
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- 5 - ORDINANCE NO. 3816-C.S.
EFFECTIVE DATE: August 13, 2026
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 23rd day of June, 2026, by Council Member Wright, who moved its introduction and passage to print, which motion being duly seconded by Council Member Bavaro, was upon roll call carried and the ordinance adopted by the following vote:
AYES: Councilmembers: Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED: _____________________________
SUE ZWAHLEN, Mayor
ATTEST:
By: _________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:
By: _________________________________
JOSE M. SANCHEZ, City Attorney
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- 6 - ORDINANCE NO. 3816-C.S.
EFFECTIVE DATE: August 13, 2026
FINAL ADOPTION CLAUSE
The foregoing Ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 14th day of July, 2026, Councilmember ?? moved its final adoption, which motion being duly seconded by Councilmember ??, was upon roll call carried and the Ordinance adopted by the following vote:
AYES: Councilmembers: Alvarez, Bavaro Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED: ________________________
SUE ZWAHLEN, MAYOR
ATTEST: ___________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
Effective Date: August 13, 2026
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CITY OF MODESTO
ORDINANCE NO. 3816-C.S.
The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of June 23, 2026:
AN ORDINANCE REPEALING TITLE 2, “ADMINISTRATION,” CHAPTER 3, “ADMINISTRATIVE DEPARTMENTS,” ARTICLE 3, “OFFICE OF THE CITY CLERK AND AUDITOR,” OF THE MODESTO MUNICIPAL CODE; ADDING TITLE 2, “ADMINISTRATION,” CHAPTER 3, “ADMINISTRATIVE DEPARTMENTS,” ARTICLE 3, “OFFICE OF THE CITY CLERK,” TO THE MODESTO MUNICIPAL CODE TO CLARIFY THE OFFICE OF THE CITY CLERK AS A STANDALONE POSITION; AND ADDING TITLE 2, “ADMINISTRATION,” CHAPTER 3, “ADMINISTRATIVE DEPARTMENTS,” ARTICLE 20, “CITY AUDITOR,” TO THE MODESTO MUNICIPAL
CODE TO ESTABLISH THE OFFICE OF THE CITY AUDITOR AS A STANDALONE
POSITION IN CONSISTENT WITH THE MODESTO CITY CHARTER
Copies of the above-mentioned ordinance are posted at the following locations:
• Tenth Street Place, 1010 10th Street
• Neighborhood Center at Marshall Park, 420 Chicago Ave. • Senior Citizen Center, 211 Bodem Street
Diane Nayares-Perez
City Clerk
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 23, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management and Budget Director
SUBJECT: Monthly Budget Adjustment Report – June 2026
CONTACT: Kaceey Culbertson, Budget Manager, [email protected], 209-571-5855
DESCRIPTION:
Consider approving the recommended budget adjustments to Fiscal Year 2025-26 Annual Operating and Capital Improvement Program Budgets. (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:
Each month, City staff presents a variety of budget adjustments requiring the approval of the City Council. These changes are submitted to the Finance Committee for review prior to submission to Council and include an explanation and justification for each transaction.
This report includes a number of adjustments that have been identified by monitoring department budgets. Due to the number of adjustments, they have been included as an attachment to this report (Exhibit A). As in past reports, adjustments are separated by fund and department as appropriate. The adjustments are reflected in a more summarized version and supporting documentation is available for review upon request. #8..
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City Council, July 14, 2026
Monthly Budget Adjustment Report – June 2026
Also included in this report as an attachment (Exhibit B) is a summary of the budget adjustments approved by the City Manager and/or the Office of Performance Management and Budget Director consistent with the authority levels that were approved by Council with the passing of the Fiscal Year 2025-26 Operating Budget via Resolution No. 2025-187.
DISCUSSION:
The monthly budget adjustments attached as Exhibit A in this item include adjustments across various departments. These adjustments are explained in further detail within Exhibit A.
FISCAL IMPACT:
The fiscal impact of each item is noted in the attachments to this report. The adjustments are for Fiscal Year 2025-26.
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
COMMITTEE RECOMMENDATION:
This item was presented to the Finance Committee on June 22, 2026, and the Committee recommended forwarding the item to Council for approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution amending Fiscal Year 2025-26 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager, to take the necessary steps to implement the provisions of this Resolution.
Approved by:
Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Exhibit A – Budget Adjustments Requiring Council Approval
3. Exhibit B - Staff Approved Budget Adjustments
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07/14/2026/OPMB/SChristensen/Item X 1 2026-XX
MODESTO CITY COUNCIL
RESOLUTION NO. 2026-
RESOLUTION AMENDING FISCAL YEAR 2025-26 ANNUAL
OPERATING AND CAPITAL IMPROVEMENT PROJECT FUND
BUDGETS AND AUTHORIZING THE CITY MANAGER, TO TAKE THE
NECESSARY STEPS TO IMPLEMENT THE PROVISIONS OF THIS
RESOLUTION
WHEREAS, a financial analysis has been completed and it has been determined that a budget adjustment is required to the Annual and Capital Improvement Budgets of the City of Modesto for Fiscal Year 2025-26.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves amending the Fiscal Year 2025-26 Annual Operating and Capital Improvement budget as shown in Exhibit A, which is attached hereto and incorporated by reference herein.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution.
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07/14/2026/OPMB/SChristensen/Item X 2 2026-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of July 2026, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST: _____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
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City Council, July 14, 2026
Monthly Budget Adjustment Report
EXHIBIT A
FISCAL YEAR 2025-26
COMMUNITY AND ECONOMIC DEVELOPMENT
• A budget adjustment in the amount of $225,703 is needed in the Tivoli CFD Fund (3255) for Project 101418 – SB Reimburse Fee (Tivoli). The adjustment will recognize revenue related to the plan reimbursement fees and increase discretionary expenditure accounts to match. Utility Studies for Tivoli that have been paid out of the Water, Wastewater, and Storm Drain Funds in prior years will be budgeted as a transfer out of the Project. As development occurs, the Specific Plan Reimbursement Fee will be paid by property owners and/or developers. There is no General Fund impact.
PUBLIC WORKS
• The following adjustments are being made from the various city Fleet Replacement sub-funds to the Fleet Replacement Fund (5409). This action is being taken to reimburse the Fleet Replacement Fund (5409) for vehicle purchases that had been made as required by fund accounting rules in FY 25-26 for the activity through December 2025. Below is a table showing the net effect in each sub-fund because of the various adjustments.
Fund Fund Name Net Impact
of
Adjustments
1709 Surface Transportation Fleet Replacement $949,301
4109 Water Fund Fleet Replacement $474,651
4219 Wastewater Fleet Replacement Fund $753,654
4899 Solid Waste Fleet Replacement Fund $307,655
5410 General Fund Equipment Fleet Replacement $264,626
Total Transfer Outs $2,749,887
5409 Transfer In – Fleet Management Fleet
Replacement
$2,749,887
Total Transfer Ins $2,749,887
A budget adjustment is necessary to establish a transfer in the amount of $949,301 from the Surface Transportation Fleet Replacement Fund to Fleet Replacement Fund for purchase of (4) dump trucks.
A budget adjustment is necessary to establish a transfer in the amount of $474,651 from the Water Fund Fleet Replacement Fund to Fleet Replacement Fund for purchase of (2) dump trucks.
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City Council, July 14, 2026
Monthly Budget Adjustment Report
A budget adjustment is necessary to establish a transfer in the amount of $753,654 from the Wastewater Fund Fleet Replacement Fund to Fleet Replacement Fund for purchase of (1) dump truck and (1) crane.
A budget adjustment is necessary to establish a transfer in the amount of $307,655 from the Solid Waste Fleet Replacement Fund to Fleet Replacement Fund for purchase of (2) dump trucks.
A budget adjustment is necessary to establish a transfer in the amount of $264,626 from General Fund Equipment Fleet Replacement Fund 5410 to Fleet Replacement Fund for purchase of (4) patrol SUV’s.
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Department Director/Director of Office Performance and Budget (OPMB)/City Manager Approved Budget Adjustments - EXHIBIT B For FY2025/26
AT #
Approved
by CM,
Director
OPMB or DD
Fund Fund Name Cost Ctr/Project Name Account Name Rev/Exp/TI/TO Account
Current
Budget
Increase
(Decrease)
Revised
Budget Description
AT-115 OPMB 0100 General Fund 33030 - Recreation Operations 51991 - Service Credit Intrafund Exp $ - $ (27,741) $ (27,741) This budget adjustment is to recognize the Service credits (51991) to protect PT salaries while still recognizing the charges to discretionary (54501) between cost centers.
AT-115 OPMB 0100 General Fund 33140 - Adult & Child Services 51991 - Service Credit Intrafund Exp $ - $ (16,919) $ (16,919) AT-115 OPMB 0100 General Fund 33150 - Aquatic Services 51991 - Service Credit Intrafund Exp $ - $ (30,160) $ (30,160) AT-115 OPMB 0100 General Fund 33320 - Maddux Youth Center 51991 - Service Credit Intrafund Exp $ - $ (35,493) $ (35,493) AT-115 OPMB 0100 General Fund 33330 - Marshall Park 51991 - Service Credit Intrafund Exp $ (86,416) $ (10,296) $ (96,712) AT-115 OPMB 0100 General Fund 33350 - Senior Citizens Center 51991 - Service Credit Intrafund Exp $ - $ (68,808) $ (68,808) AT-115 OPMB 0100 General Fund 33030 - Recreation Operations 54501 - Service City Forces - Intrafund Exp $ 19,926 $ 27,741 $ 47,667 AT-115 OPMB 0100 General Fund 33140 - Adult & Child Services 54501 - Service City Forces - Intrafund Exp $ - $ 16,919 $ 16,919 AT-115 OPMB 0100 General Fund 33150 - Aquatic Services 54501 - Service City Forces - Intrafund Exp $ - $ 8,635 $ 8,635 AT-115 OPMB 0100 General Fund 33320 - Maddux Youth Center 54501 - Service City Forces - Intrafund Exp $ - $ 35,493 $ 35,493 AT-115 OPMB 0100 General Fund 33330 - Marshall Park 54501 - Service City Forces - Intrafund Exp $ - $ 10,296 $ 10,296 AT-115 OPMB 0100 General Fund 33350 - Senior Citizens Center 54501 - Service City Forces - Intrafund Exp $ - $ 68,808 $ 68,808 AT-115 OPMB 0100 General Fund 33360 - Chavez Water Park 54501 - Service City Forces - Intrafund Exp $ - $ 21,525 $ 21,525 Total Changes for Fund 0100 $ (66,490) $ - $ (66,490)
AT-112 OPMB 1180 Emergency Shelter Grants (ESG) 101650 - ESG FY 2025-26 Allocation 1537 AD DST - Services City Forces -
Interfund Exp $ 5,000 $ (5,000) $ - A budget adjustment is needed to reallocate ESG grant funds originally designated for the Downtown Streets Team to HMIS Activity 1541. The redistributed funds will support activity delivery costs associated with the oversight and management of the City's Homeless AT-112 OPMB 1180 Emergency Shelter Grants (ESG) 101650 - ESG FY 2025-26 Allocation 1537 DST - Direct Grants Exp $ 20,000 $ (20,000) Management Information System (HMIS). $ - AT-112 OPMB 1180 Emergency Shelter Grants (ESG) 101650 - ESG FY 2025-26 Allocation 1541 - Services City Forces - Interfund Exp $ 12,967 $ 25,000 $ 37,967 Total Changes for Fund 1180 $ 37,967 $ - $ 37,967
AT-120 OPMB 1321
Public Education Governmental
(PEG) Fund
17425 - IT Public Educational and
Governmental (PEG) operations
IT Equipment less than capitalization
threshold Exp $ - $ 5,000 $ 5,000 A budget adjustment is necessary in the amount of $5,000 to increase the PEG fund budget for the purchase of two matrox devices in Council Chambers.
Total Changes for Fund 1321 $ - $ 5,000 $ 5,000
AT-118 OPMB 1800
Economic Development / Strategic
Plan Fund 101737 - Shelter Cove DA Amendment CS-CD Time and Materials Rev $ - $ 25,000 $ 25,000 A budget adjustment in the amount of $25,000 is necessary to establish a project budget for the Time and Materials for the Shelter Cove Development Agreement Amendment project. Developer funded. AT-118 OPMB 1800
Economic Development / Strategic
Plan Fund 101737 - Shelter Cove DA Amendment AuC - Professional Services Exp $ - $ 17,500 $ 17,500 AT-118 OPMB 1800
Economic Development / Strategic
Plan Fund 101737 - Shelter Cove DA Amendment Auc - Service City Forces - Interfund Exp $ - $ 7,500 $ 7,500 AT-119 OPMB 1800
Economic Development / Strategic
Plan Fund 101589 - Founder's Point East Sp CS-CD Time and Materials Rev $ 60,000 $ 13,317 $ 73,317 A budget adjustment in the amount of $13,317 is necessary to identify the total time and materials deposit that was received for the Founders Point East Specific Plan project. There is no impact to the General Fund. AT-119 OPMB 1800
Economic Development / Strategic
Plan Fund 101589 - Founder's Point East Sp AuC - Professional Services Exp $ 60,000 $ 13,317 $ 73,317 Total Changes for Fund 1800 $ 60,000 $ 76,634 $ 73,317
AT-113 OPMB 1130
Community Development Block
Grants (CDBG) 14015 - CDBG Direct Programs 54706 - Direct Grants Exp $ 40,000 $ (40,000) $ - A budget adjustment is needed to redistribute the CDBG grant funds originally allocated to the Downtown Streets Team to the six other public services funded this year. The funds will be used for staff activity delivery to support the management and oversight of public services.
AT-113 OPMB 1130
Community Development Block
Grants (CDBG) 14015 - CDBG Direct Programs 54500 - Services City Forces - Interfund Exp $ 3,400 $ (3,400) $ - AT-113 OPMB 1130
Community Development Block
Grants (CDBG) 14015 - CDBG Direct Programs 54500 - Services City Forces - Interfund Exp $ 3,400 $ 7,234 $ 10,634 AT-113 OPMB 1130
Community Development Block
Grants (CDBG) 14015 - CDBG Direct Programs 54500 - Services City Forces - Interfund Exp $ 3,400 $ 7,234 $ 10,634 AT-113 OPMB 1130
Community Development Block
Grants (CDBG) 14015 - CDBG Direct Programs 54500 - Services City Forces - Interfund Exp $ 3,400 $ 7,233 $ 10,633 AT-113 OPMB 1130
Community Development Block
Grants (CDBG) 14015 - CDBG Direct Programs 54500 - Services City Forces - Interfund Exp $ 3,400 $ 7,233 $ 10,633 AT-113 OPMB 1130
Community Development Block
Grants (CDBG) 14015 - CDBG Direct Programs 54500 - Services City Forces - Interfund Exp $ 3,400 $ 7,233 $ 10,633 AT-113 OPMB 1130
Community Development Block
Grants (CDBG) 14015 - CDBG Direct Programs 54500 - Services City Forces - Interfund Exp $ 3,400 $ 7,233 $ 10,633 Total Changes for Fund 1130 $ 63,800 $ - $ 63,800
AT-114 OPMB 3160 Capital Grants 101269 - Pelandale Ave Rehab AUC - CFF Exp $ 26,830 $ (5,059) $ 21,771 A budget adjustment in the amount of $5,059 necessary to alleviate the negative task line AUC - EDA. The adjustment will also include reducing $5,059 from AUC CCF to cover the overage. There will be no overall increase to the Total Budget of$3.2 Million. The project will then be closed. AT-114 OPMB 3160 Capital Grants 101269 - Pelandale Ave Rehab AUC - EDA Total Changes for Fund 3160
Exp $ 400,000 $ 5,059 $ 405,059
$ 426,830
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 23, 2026
TO: Mayor and City Council
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 approving the recommended reserve policies for the various Internal Services Funds for the City of Modesto. (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:
• Establishing appropriate reserve levels in each Internal Service Fund (ISF). #9..
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City Council, July 14, 2026
Internal Service Funds Reserve Policies
• 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 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. #9..
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City Council, July 14, 2026
Internal Service Funds Reserve Policies
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 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.
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City Council, July 14, 2026
Internal Service Funds Reserve Policies
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:
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.
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City Council, July 14, 2026
Internal Service Funds Reserve Policies
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:
• 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. #9..
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City Council, July 14, 2026
Internal Service Funds Reserve Policies
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. • 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. #9..
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City Council, July 14, 2026
Internal Service Funds Reserve Policies
• 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 meet over the next 5 years.
In the chart above, any ISF that is referenced as not meeting the reserve policy currently, staff are working with the respective 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:
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City Council, July 14, 2026
Internal Service Funds Reserve Policies
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
COMMITTEE RECOMMENDATION:
This item was presented to the Finance Committee on June 22, 2026, and the Committee recommended forwarding the item to Council for approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the reserve policies for the various Internal Service Funds for the City of Modesto and authorizing the City Manager, to take the necessary steps to implement the provisions of this Resolution.
Approved by:
Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Policy Memo – Building Services ISF Reserve Policy
3. Policy Memo – Employee Benefits Fund ISF Reserve Policy
4. Policy Memo – Fleet Fund ISF Reserve Policy
5. Policy Memo – General Liability ISF Reserve Policy
6. Policy Memo – Information Technology ISF Reserve Policy
7. Policy Memo – Property Insurance ISF Reserve Policy
8. Policy Memo – Workers Compensation ISF Reserve Policy
9. Policy Memo – Mail Services ISF Reserve Policy
Exhibits:
1. Exhibit A – FY 2026-27 Proposed Policies
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07/14/2026/OPMB/SChristensen/Item X 1 2026-XX
MODESTO CITY COUNCIL
RESOLUTION NO. 2026-
RESOLUTION APPROVING THE RESERVE POLICIES AND THE
VARIOUS INTERNAL SERVICE FUNDS FOR THE CITY OF MODESTO
AND AUTHORIZING THE CITY MANAGER, TO TAKE THE
NECESSARY STEPS TO IMPLEMENT THE PROVISIONS OF THIS
RESOLUTION
WHEREAS, the City Council establishes the reserve levels for the various funds back on the needs of the City, and
WHEREAS, the City’s internal Auditor recommended establishing appropriate reserve levels in each Internal Service Fund (ISF), plans to reach reserve levels over ten (10) plus years in each ISF as needed, and ensuring reserve levels are at a maximum level of three (3) to six (6) months of operating costs, plus amortized equipment costs, and
WHEREAS, staff has worked with the various ISF Managers to ensure that these items have been considered when developing recommended levels of reserves, and
WHEREAS, staff has developed recommendations for minimum levels of reserves for each ISF as outlined in Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the reserve policies for the various Internal Service Funds for the City of Modesto as shown in Exhibit A, which is attached hereto and incorporated by reference herein.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution.
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07/14/2026/OPMB/SChristensen/Item X 2 2026-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of July 2026, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST: _____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
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CITY OF MODESTO
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:
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 months of the regular operating expenditures.
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:
#9..
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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.
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.
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. #9..
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Attachment 1 – FY 2026-27 Proposed Policies
Approved by:
Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#9..
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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: 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:
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 months of the regular operating expenditures.
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:
#9..
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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.
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.
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 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 #9..
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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
#9..
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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: 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:
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 months of the regular operating expenditures.
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:
#9..
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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.
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.
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 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:
#9..
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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
#9..
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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: 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:
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 months of the regular operating expenditures.
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:
#9..
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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.
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 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 #9..
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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
#9..
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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: 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:
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 months of the regular operating expenditures.
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:
#9..
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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.
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 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 #9..
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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
#9..
- 98 -
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:
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 months of the regular operating expenditures.
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:
#9..
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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.
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.
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 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.
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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
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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:
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 months of the regular operating expenditures.
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:
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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.
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 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 #9..
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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
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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 Mail Services 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:
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 months of the regular operating expenditures.
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:
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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.
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.
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 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 balance and evaluate the level on an annual basis to take any adjustments to Council, if necessary.
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Attachment 8 – FY 2026-27 Proposed Policies
Approved by:
Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
#9..
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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. #9..
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Stephan Christensen, Office of Performance Management & Budget (OPMB) 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 accepting the informational 2025 Measure H Oversight Board Annual Report. (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 June 30, 2023. The Measure H Oversight Board (the Board) has the following responsibilities:
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City Council, July 14, 2026
2025 Measure H Oversight Board Annual Report
1) Meet quarterly to review all revenues and expenditures of funds from the authorized Measure H sales tax.
2) Review annual audit reports related to the Measure H sales tax. 3) Provide at least one written annual report to the City Council at a public meeting summarizing the Measure H Oversight Board findings.
DISCUSSION:
During each fiscal year, the Measure H Oversight Board held meetings on a quarterly basis and received presentations that showed the spending on funds associated with the Council approved Measure H Spending Plan. As part of their duties, members of the Measure H Oversight Board also received copies of the Measure H audited financials and a presentation from the external auditor, Vasquez + Company, LLP, on the Measure H Fund.
For the Board’s first Annual Report, the decision was made to form a sub-committee composed of three (3) of the Board’s members to focus on design, key components to be included in the annual report, and potential recommendations. The sub-committee worked with City Staff to finalize the various sections to be included in the report. These were then incorporated into a draft version and then discussed by the full Measure H Oversight Board Committee at a board meeting for review and comments. After multiple meetings and input from the sub-committee and the Measure H Oversight Board, the final design of the report was decided, and the Measure H Oversight Board’s conclusions were finalized.
The main components included in the Measure H Oversight Board Annual Report for Fiscal Year 2025 are as follows:
• Introduction
• Measure H Fund 2025 Financials Summary
• Revenue and Expense Highlights
• 2025 Measure H Program Highlights
• Overview of the Fiscal Year 2025-26 Spending Plan
• Measure H Oversight Board Conclusions
The report is a culmination of the time and effort of the members of the Measure H Oversight Board and their commitment to ensuring that the City has spent Measure H funds according to the language provided on the ballot that was approved by the voters.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
COMMITTEE RECOMMENDATION:
This agenda item was presented to the Finance Committee on June 22, 2026. The Finance Committee approved forwarding the item to Council for acceptance and approval.
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City Council, July 14, 2026
2025 Measure H Oversight Board Annual Report
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution accepting the informational 2025 Measure H Oversight Board Annual Report.
Approved by:
Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. 2025 Measure H Oversight Board Annual Report
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07/14/2026/OPMB/SChristensen/Item X 1 2026-XX
MODESTO CITY COUNCIL
RESOLUTION NO. 2026-
RESOLUTION ACCEPTING THE INFORMATIONAL 2025 MEASURE H
OVERSIGHT BOARD ANNUAL REPORT
WHEREAS, 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, and
WHEREAS, Measure H is estimated to provide the City with approximately $48 million annually in additional sales tax revenue into its General Fund, and
WHEREAS, a critical component of Measure H, which is codified in Modesto Municipal Code section 8-2.1215, is the requirement that Council appoint a nine-member Oversight Board by June 30, 2023, and WHEREAS, the Measure H Oversight Board has the following responsibilities:
1. Meet at least semi-annually to review all revenues and expenditures of funds from the authorized Measure H sales tax.
2. Review annual audit reports related to the Measure H Sales Tax.
3. Provide at least one written annual report to the City Council at a public meeting summarizing the Measure H Oversight Board findings.
WHEREAS, the Measure H ordinance defines the requirement that the Measure H Oversight Board must provide at least one written annual report to #10..
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07/14/2026/OPMB/SChristensen/Item X 2 2026-XX
the City Council at a public meeting summarizing the Board’s findings, and WHEREAS, the Measure H Oversight Board formed a sub-committee that worked with City Staff to create the layout and content that is presented in the 2025 Measure H Oversight Board Annual Report, and
WHEREAS, the Measure H Oversight Board made the following findings within the 2025 Measure H Oversight Board Annual Report:
1. We find that the Measure H funds were spent by the City according to the language provided on the ballot and approved by the voters.
2. We find that the Measure H funds were spent appropriately on the Council approved Fiscal year 2024-25 Spending Plan Items and within budget.
3. We find that the Measure H funds successfully passed the single audit performed by the external auditors with no findings.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby accepts the informational 2025 Measure H Oversight Board Annual Report.
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07/14/2026/OPMB/SChristensen/Item X 3 2026-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of July 2026, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST: _____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
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Annual
Report
Annual MEASURE
H
2025
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115
TABLE OF
CONTENTS
Brief summary of Measure H and
its history. Including a description
of the responsibilities of the
Measure H Oversight Board.
04 Introduction
Detail of revenues and expenses
for Measure H that were approved
by the City Council and expended
during Fiscal Year 2024-25 and a
summary of fund balances.
06 Measure H Financials
Highlights of program
expenditures for the fiscal year by
department. Showcasing the work
that was carried out in Fiscal Year
2024-25. 08
Expense Highlights
Summary of the approved
spending plan adopted by City
Council for the new fiscal year
2025-26.
Measure H Oversight Board Members.
Measure H Oversight Board
14 Final conclusions and
recommendations from the
Measure H Oversight Board to the
City Council.
Conclusions
1512
FY 2025-26 Spending Plan
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116
Ballot Language: While the
Measure H Sales Tax is a
general sales tax and can be
used for any purpose, the
ballot measure included a list
of examples of types of
expenditures that the tax
would be used for such as
police patrols, gang, drug, and
crime prevention; fire
protection, paramedic/911
emergency response,
addressing homelessness;
cleaning-up trash and illegal
dumping; keeping streets,
parks, sidewalks, landscapes
and infrastructure safe, clean,
and well-maintained.
Ingoude Company 3
Measure H Annual Report 03
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117
The Measure H Oversight Board is composed of nine Modesto residents representing a broad cross-section of the
community. Established to review all revenues and
expenditures related to Measure H sales tax revenue, the Board plays a vital role in ensuring that voter-approved funds are spent responsibly and in alignment with the intent of the measure.
Measure H Oversight Board
Measure H is a one-cent sales tax that was approved by
Modesto voters to fund general city services in November 2022.
On November 29, 2022, the City Council certified the election results via Resolution 2022-453 and Measure H Sales Tax started its collection on April 1, 2023.
History
1. Review all revenues and expenditures of funds generated from the sales tax authorized by the voter approved
Measure H.
2.Review annual audit reports related to the Measure H tax measure as provided.
3.Make at least one (1) annual report to the City Council at a public meeting summarizing the Measure H Oversight
Board’s findings.
Oversight Board Responsibilities
INTRODUCTION
The Modesto voters passed
Measure H with a vote of:
Key Facts about
Measure H
Initial estimates for revenue to be
generated from the Measure H Sales
Tax were $39M annually. Since that
time revenues have exceeded $40+
million on an annual basis.
63% - Yes
37% - No
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118
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119
Description FY 2024-25 Budget FY 2024-25 Actuals
REVENUES:
Measure H Sales Tax
Revenue $42,809,800 $47,211,026
Other Misc. Revenues $301,713 $3,507,263
Total Measure H
Revenues $43,111,513 $50,718,289
EXPENDITURES:
General Government $1,420,275 $1,405,677
Community Development $4,848,729 $1,642,724
Fire Protection $11,357,265 $2,035,770
Police Protection $12,684,517 $9,395,931
Parks and Recreation $16,315,522 $7,256,956
Public Works $4,921,671 $4,449,469
Capital Outlay $3,406,683 $1,467,584
Total Expenditures $54,954,662 $27,654,111
Transfers In $10,997,550 $-
Transfers Out $(12,131,252) $(8,548,686)
Net Transfers In/Out $(1,133,702) $(8,548,686)
Net Change in Fund
Balance $(12,976,851) $14,515,492
Fund Balance, Beg of Year $41,531,639
Fund Balance, End of Year $56,047,131
MEASURE H
FINANCIALS
The Fiscal Year 2024-25 Measure H Spending
Plan, approved by the City Council during
the annual budget process, included an
additional $22.2M in funding. This investment
supports new programs and positions,
including but not limited to:
Fiscal Year 2024-25 Measure H
Spending Plan Enhancements
$450,000 - Revolving Loan Funding for
Accessory Dwelling Unit (ADU)
Development
$350,000 - Continued Funding for the
Downtown Streets Team
$320,000 - Purchase of Six LifePaks and
Six Lucas Devices for the Fire Department
$3.74M - Transition of personnel to the
Measure H Fund including:
5 Community Service Officer (CSO) II
positions
6 Traffic Safety Division positions
9 Police Officers
$5.05M - Additional Funding for High
Priority Deferred Maintenance and
Preventative Maintenance Projects in City
Parks
$2.8M - Continued Funding for Forestry
Operations and Sidewalk Repairs
06 Measure H Annual Report
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120
21% 21% 6% 2% 6%2%8%2%3%
Measure H Sales Tax Other Miscellaneous Revenue
FY 2022-23 FY 2023-24 FY 2024-25
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
Fiscal Year
Measure H Sales Tax $11,116,219
$584
$47,954,202
$1,234,596
$38,848,465
$1,222,230
6%3%
FISCAL YEAR 2024-25 MEASURE H
EXPENDITURE BY CATEGORY
2% 6%2%8% 21% 2%18% 21%
21%
21%
18%
11%
8%
6%
6%
3% 2% 2% 11%
Equipment 2%
Sidewalk 2%
Administrative Support 2%
Park Improvements
Public Safety
Fire/EMS
Transfer to General Fund
Homelessness
Blight Abatement
Forestry
Deferred Maintenance
MEASURE H REVENUE HISTORY
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121
Measure H Position History
0 10 20 30 40 50 60
FY 2023
FY 2024
FY 2025
Position Count
20 57
46 City Clerk's Office Comm & Econ Dev Human Resources Office Perf Mgmt & Budg City Attorney's Office Eng Serv Dept
Information Technology
Finance Dept
Fire Dept
Public Works Dept
Parks, Recr & Neigh Dept
Police Dept
0 20
40 60
80 1 1 1 1 2 2 2 3
9 12 14
75 EXPENSE HIGHLIGHTS
Since its passage, Measure H has enabled
the City of Modesto to expand services that
enhance the quality of life for residents.
These improvements have been made
possible by increased the number of City
jobs that support Measure H programs.
Through Fiscal Year 2024-25, Measure H has
funded the addition of 123 full-time positions
across various departments within the
organization. The distribution of these
positions is shown in the charts below.
Measure H Position Counts by Department (as of FY 2024-25) 08 Measure H Annual Report
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122
24 Individuals Served
280 Parks Litter Abatement
Beautification Hours
46 Needles Removed from
Parks
An additional $350,000 was allocated for the
second year of funding for the Downtown
Streets Team (DST). This support enabled the
expansion of a second 25-member team
focused on blight abatement in City parks and
recreation facilities. During the fiscal year, it is
estimated that the team removed 509,000
pounds of debris and 191 needles from these
public spaces.
Downtown Streets Team
COMMUNITY & ECONOMIC DEVELOPMENT
DEPARTMENT
Map of Parks Cleaned by DST
Measure H Annual Report 09
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123
Addition of Three Police
Technicians Positions
Addition of One Senior
Police Technician
Addition of One Police
Civilian Manager Position
The Modesto Police Department received $6.1
million in Measure H funding. This allocation
supported the addition of non-sworn
personnel in the Real Time Crime Center
(RTCC), enhancing the department’s
capacity to manage calls for service, monitor
camera feeds, and support in field operations
with real time information. The funding also
transitioned select positions from the General
Fund to Measure H, laying the groundwork for
future expansion of the Traffic Safety Division,
improving patrol coverage, traffic
enforcement, and overall safety for Modesto.
Downtown Streets Team
MODESTO POLICE DEPARTMENT
Real Time Crime Center Positions
Traffic Safety Division Positions
Movement of One Police
Sergeant Position
Movement of Four Police
Officer Positions
Movement of One Police
Community Service Officer Position
10 Measure H Annual Report
Traffic Safety Division - Citations
0 2000 4000 6000 8000 10000 12000 14000
2023
2024
2025
# of Citations
Fiscal Year
5170
7712
13685
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124
EMS Division - Medic 1 Response Calls
0 200 400 600 800 1000 1200
2023
2024
2025
# of Calls
Fiscal Year
79 373
1087
The Modesto Fire Department received $9.78M in
Measure H funding via a Council action during the
fiscal year. This funding enabled the purchased of
eight (8) new apparatus, including one (1)
Wildland Pumper Vehicle, five (5) Engines, and two
(2) Trucks. Additionally, the department was
allocated $320,000 to acquire six (6) LIFEPAK 15
units and six (6) LUCAS devices, enhancing the
department’s capacity to deliver life-saving care
during medical emergencies.
MODESTO FIRE DEPARTMENT
Calls Responded Through Measure H
Measure H Annual Report 11
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125
4,610 Trees Pruned
55 Trees Removed
441 Stumps Removed
FY 24-25 Forestry Contractor Work
The Forestry Division received $1.65 million in
Measure H funding, $550,000 was allocated
for contracted services including pruning, tree
removal, and stump grinding, while
$1,094,350 was designated for the City’s
Reforestation program.
The Reforestation program is critical following
the City’s recent tree removals and stump
grinding work. Replanting new trees is
essential to preserving and enhancing
Modesto’s urban tree canopy, specific areas
within the city have been prioritized in the first
phase of reforestation.
PUBLIC WORKS FORESTRY DIVISION
12 Measure H Annual Report
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126
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127
1 $7.87M for the Dr. Martin Luther King Park Renovation Project Funding
2 $926,000 for the Move Alternative Response Unit
(ARU) Operations to Measure H
FY 2025-26 SPENDING PLAN
Measure H Spending Plan
The Measure H Spending Plan is adopted annually by City Council and serves as the official authorization for department expenditures funded by Measure H in the upcoming fiscal year.
Fiscal year 2025-26 Measure H Spending Plan
Highlights
Below are key highlights from the City Council approved Fiscal Year 2025-26 Measure H Spending Plan. The Spending Plan includes $13.6 million in funding for new programs, $25.7 million in ongoing support for existing initiatives, and $13.6 million allocated to the General Fund to help address the City’s structural deficit.
$794,000 for an Addition of five (5) Police Officer
Positions
$761,000 for the Cesar E. Chavez Park Renovation
Project Funding
$500,000 - Measure H - High Priority Deferred
Maintenance Needs
3 4
5 14 Measure H Annual Report
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128
6 $500,000 Measure H funding for High
Priority Preventative Maintenance Needs
7 $466,000 to Move Modesto Police
Department Air Support Operations to
Measure H
$427,000 to Move Modesto Police
Department Area Command Operations to
Measure H
8 $400,000 for the Purchase of an Armored
Vehicle for the Modesto Police Department 9
$260,000 for the Purchase of a Rentable
Community Stage 10
$255,000 for a Radio Maintenance Program
and Wildland Web Gear Funding for the Fire
Department
11 $155,000 to Convert 2 existing Modesto
Police Officer positions to 2 Sergeant
allocations
12 #10..
129
INVESTING IN
MODESTO’S FUTURE
16 Measure H Annual Report 231
MEASURE H OVERSIGHT
BOARD CONCLUSIONS
We find that the Measure H funds were
spent by the City according to the
language provided on the ballot and
approved by the voters.
We find that the Measure H funds were
spent appropriately on the Council
approved Fiscal Year 2024-25 Spending
Plan Items and within budget.
We find that the Measure H funds
successfully passed the single audit
performed by the external auditors with
no findings.
Measure H, the voter approved one-cent sales
tax, is an actionable voter initiative where every
dollar spent in Modesto makes a difference.
From the streets we walk down, to the services
we rely on, supporting our local businesses
helps our families, our neighbors, and our City
grow together.
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Measure H Annual Report 17
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Prepared By :
Board Members:
Measure H Oversight Board
District 1 - Lynn Dickerson
District 2 - Vacant
District 3 - Kirstie Boyett-Zacharias
District 4 - Chris Guptill
District 5 - Mike Kelly
District 6 - Jesse Franco
At-Large - Michael Moradian
At-Large - Aaron Anguiano
At-Large - Vacant
City of Modesto
1010 10 Street th
Modesto, CA 95353
Scan the QR Code to
Watch the Measure H
Short Film Now!
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H.R.1 - 119th Congress (2025-2026): An act to provide for reconciliation pursuant to title II of H. Con. Res. 14. | Congress.gov | Library of Congress
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 12, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Submission of Eligible Opportunity Zones 2.0 to the Governor’s Office of Business and Economic Development
CONTACT: Amber Abruzzo, Administrative Office Assistant III, [email protected], 209-577-5244
DESCRIPTION:
Consider approving the submission of eligible Opportunity Zones 2.0 to the Governor’s Office of Business and Economic Development. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto’s 2025-2026 Strategic Plan, Goal F: Build and implement a comprehensive marketing strategy focused on communicating City achievements and successful investments while promoting City programs, services, and engagement opportunities.
BACKGROUND:
Opportunity Zones are economically distressed communities, defined at the individual census tract level, that are nominated by the governors of each state and certified by the U.S. Secretary of the Treasury through a delegation of authority to the Internal Revenue Service. Opportunity Zones may be eligible for preferential tax incentives and can be a powerful tool for driving private investment into underserved communities.
Opportunity Zones 2.0 refers to the permanent renewal and enhancement of the Opportunity Zones program through Public Law 119-21 and signed into law on July 4, 2025. Under the original law, the program was set to expire on December 31, 2026.
Section 70421 of the federal statute makes it a permanent feature of the Internal Revenue Code while updating eligibility criteria, tax incentives, and compliance requirements.
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City Council, July 14, 2026
Submission of Eligible Opportunity Zones 2.0 to the Governor’s Office of Business and Economic Development
The program now operates on a permanent, rolling 10-year cycle. Governors must nominate qualified Opportunity Zones every decade. The first round of new designations must occur within a 90-day window beginning July 1, 2026, subject to U.S.
Treasury approval. New designations take effect for investments made on or after January 1, 2027.
Opportunity Zones 2.0 differed from the original Opportunity Zones in income eligibility.
Census tracts qualify for Opportunity Zones 2.0 if income does not exceed 70% of the applicable median family income, or the poverty rate is at least 20% and income does not exceed 125% of the applicable median family income.
DISCUSSION:
The State has released the census tracts that will qualify for Opportunity Zones 2.0.
Within the criteria, the City has fourteen (14) eligible areas that qualify as Opportunity Zones 2.0.
Opportunity Zones 2.0 provides incentives including preferential federal tax treatment for capital gains invested in the approved areas and is designed to reward long-term capital that generates sustained economic growth, job creation, and community revitalization in historically underserved areas.
The following census tracts are considered eligible for consideration within Opportunity Zones 2.0:
1. 06099001400
2. 06099000910
3. 06099000405
4. 06099001800
5. 06099002200
6. 06099001700
7. 06099001601
8. 06099001604
9. 06099002402
10.06099002304
11.06099002002
12.06099002100
13.06099002302
14.06099003100
In order to receive the Opportunity Zones 2.0 designation, local jurisdictions need to nominate eligible census tracts to the State of California Governor’s Office of Business and Economic Development where they will be reviewed. The deadline for submission is July 25, 2026.
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City Council, July 14, 2026
Submission of Eligible Opportunity Zones 2.0 to the Governor’s Office of Business and Economic Development
Once submitted, all recommendations will be evaluated against the State’s priority census tract nominations. In addition to these evaluations, the Governor’s office will also consider the public input provided in support of census tracts during the public comment period in August 2026. The Governor’s office will ultimately determine which census tracts will be nominated and submitted to the U.S. Department of the Treasury by September 28, 2026.
The finalized zones will be put into effect in January 2027.
Staff intends to submit all eligible census tracts to become part of Opportunity Zones
2.0. This would maximize the potential for future investment in these areas.
FISCAL IMPACT:
There is no fiscal impact related to this action.
COMMITTEE RECOMMENDATION:
Due to the timing of this item, it was brought directly to Council.
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the submission eligible Opportunity Zones 2.0 to the Governor’s Office of Business and Economic Development.
Approved by:
Jessica Hill,
Director of Community and Economic
Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Map
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05/06/2026/CED/JHill 1 2026-
MODESTO CITY COUNCIL
RESOLUTION NO. 2026-
RESOLUTION APPROVING THE SUBMISSION OF ELIGIBLE OPPORTUNITY ZONES 2.0 TO THE GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT
WHEREAS, Opportunity Zones are economically distressed communities, defined at the individual census tract level, that are nominated by the governors of each state and certified by the U.S Secretary of the Treasury through a delegation authority to the Internal Revenue Service; and WHEREAS, the City includes fourteen (14) eligible areas that qualify as Opportunity Zones 2.0; and
WHEARAS, establishing these areas as Opportunity Zones 2.0 provides incentives including preferential federal tax treatment for capital gains invested in the approved areas; and
WHEREAS, the Opportunity Zone incentive is designed to reward longterm patient capital that generates sustained economic growth, job creating, and community revitalization in historically underserved areas; and WHEREAS, the following census tracts are considered eligible for consideration as Opportunity Zones 2.0: 06099001400, 06099000910, 06099000405, 06099001800, 06099002200, 06099001700, 06099001601, 06099001604, 06099002402, 06099002304, 06099002002, 06099002100, 06099002302, 06099003100; and
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05/06/2026/CED/JHill 2 2026-
WHEREAS, nominations are submitted by local jurisdictional authorities to the State of California Governor’s Office of Business and Economic Development where they will be reviewed; and
WHEREAS, the deadline for submission is July 25, 2026; and WHEREAS, recommendations will be evaluated against the State’s priorities census tract nominations; and
WHEREAS, in addition to these evaluations, the Governor’s office will also consider the public input provided in support of census tracts during the public comment period in August 2026; and
WHEREAS, the Governor’s office will ultimately determine which census tracts will be nominated and submitted to the U.S. Department of the Treasury by September 28, 2026; and
WHERAS, the finalized zones will be put into effect in January 2027.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Council of the City of Modesto that it herby is approves the submission of all eligible Opportunity Zones 2.0 to the Governor’s Office of Business and Economic Development.
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05/06/2026/CED/JHill 3 2026-
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th of July, 2026 by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST: ___________________________
DIANE NAYARES-PEREZ, CMC City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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Opportunity Zones in Modesto
Legend
D Non-Eligible Zones
CJ Eligible Zones
c::::J City of Modesto
Boundaries
Existing Modesto
: : : Sphere of
Influence (SOI)
r
., Proposed Planning
••Area
N
A
0 2.75 5.5
•
Sources: Esri, omTom, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community
11 Miles
3 2
4 5
6 7
8 13
10 9
12 11
1 14
Census Numbers Guide
1. 06099001400
2. 06099000910
3. 06099000405
4. 06099001800
5. 06099002200
6. 06099001700
7. 06099001601
8. 06099001604
9. 06099002402
10. 06099002304
11. 06099002002
12. 06099002100
13. 06099002302
14. 06099003100
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 24, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan Agreement
CONTACT: Michael Hren, Principal Planner,
[email protected], 209-577-5273
DESCRIPTION:
Consider approving an Agreement with Alta Planning + Design for the preparation of the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan, in the amount total not to exceed $449,966. (Funding Source: Caltrans Sustainable Transportation Planning Grant) STRATEGIC PLAN ELEMENT:
The recommended action supports the City’s 2025-2026 Strategic Plan Initiatives:
Goal G: Advance a pro-growth Economic Development Strategy that focuses on Downtown, Sports, and Entertainment, building Modesto as a regional destination, 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 efforts.
BACKGROUND:
On August 11th, 2020, the City of Modesto Council passed Resolution No. 2020- 334 adopting the Downtown Master Plan, which outlines strategies to achieve the General Plan vision for downtown and emphasizes multimodal connectivity and transit-oriented development near the transit center.
In January 2025, the City of Modesto applied for a Caltrans Sustainable Transportation Planning Grant with a project titled Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Plan, with the purpose of establishing a more refined vision for the future of Downtown Modesto on and #12..
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City Council, July 14, 2026
Downtown Modesto Multimodal Transportation Network and
Land Use Compatibility Action Plan Agreement
around the transit center and building on the efforts of the San Joaquin Regional Rail Commission’s Valley Rail Expansion Program to integrate the future rail network and its operations with the new Altamont Commuter Express commuter rail station in 2026.
The Caltrans Sustainable Transportation Planning Grant is a competitive statewide fund created to support the Caltrans mission of providing a safe and reliable transportation network that serves all people and respects the environment. The Program has $17 million available to fund Sustainable Communities grants.
Sustainable Communities grants are funded by the State Highway Account and Senate Bill 1 (SB1). The Program is intended to support and implement the Regional Transportation Plan Sustainable Communities Strategies/Alternative Planning Strategies, contributes to the State’s greenhouse gas reduction targets and assist in achieving the Caltrans Mission and Grant Program Objectives:
• Encourage local and regional multimodal transportation and land use planning that furthers the region’s Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS) (where applicable). For applicants not in a Metropolitan Planning Organization (MPO) region, address how the project encourages local and regional multimodal transportation and land use planning that advances sustainability • Contribute to the State’s Green House Gas reduction targets and other State goals, including but not limited to, the goals and best practices cited in the 2024 RTP Guidelines
• Address the needs of under-resourced communities through robust public engagement
This application follows up on the adopted strategies from the Downtown Master Plan and the Plan’s emphasis areas by establishing funding that intends to implement a Downtown Multimodal Transportation Network and Land Use Compatibility Plan.
Caltrans issued a notification awarding the City of Modesto the Sustainable Transportation Planning Grant on July 1, 2025.
On September 9, 2025, the Council accepted the grant totaling $450,000 by Resolution number 2025-317.
DISCUSSION:
On January 27, 2026, staff issued a Request for Proposals (INF-RFP-00064) for the procurement of professional consulting services for the preparation of the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan for the City. Prospective proposers were notified online and via direct email of the RFP. The RFP document was downloaded by 72 #12..
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City Council, July 14, 2026
Downtown Modesto Multimodal Transportation Network and
Land Use Compatibility Action Plan Agreement
prospective vendors, and four (4) proposals were submitted by the proposal due date on March 23, 2026. There were no proposals submitted by local vendors.
Proposals were reviewed by a committee, and two (2) consultant firms were invited to interview on April 27, 2026. The proposals were evaluated according to the following criteria of understanding the project’s purpose and scope, the proposed budget and fee schedule, their experience and qualifications and lastly on their previous customer reference calls. The consultants were ranked in the following order from highest to lowest scores:
1. Alta Planning + Design
2. Mark Thomas & Company
3. Fehr & Peers
4. VRPA Technologies
Based on the committee ranking of the proposals and interviews, the selection committee recommended awarding a professional services agreement for the preparation of the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan to Alta Planning + Design, based out of Oakland, California.
The Scope of Work for the preparation of the plan will consist of the following activities:
Existing Conditions Review and Report
Existing conditions will consider several project area factors, including but not limited to existing multimodal access, origins and destinations, housing needs, market conditions, parking needs, safety needs, and homelessness concerns. The Existing Conditions will leverage maps, photos, and other graphic content to create a visually appealing and digestible report.
Stakeholder and Public Engagement
Stakeholder outreach and engagement strategy that includes identifying project stakeholders, the engagement timeline, methods of involvement, and an engagement summary to document activities and the results of engagement. The strategy should consider activities that will best identify community needs and desired outcomes, including engagement in Census Tracts with disadvantaged communities at a minimum. Activities will include stakeholder coordination and working groups, community workshops, pop-up events, surveys, and social media collateral.
Disadvantaged Communities Analysis
Analyze historically disadvantaged communities, areas of persistent poverty, and other forms of demographic analysis to determine how the project benefits the community. This will include an analysis of the displacement of residents and those #12..
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City Council, July 14, 2026
Downtown Modesto Multimodal Transportation Network and
Land Use Compatibility Action Plan Agreement
experiencing homelessness and identify mitigations to reduce the potential impacts. The equity displacement strategy will be partially driven by stakeholders and community-based organization outreach efforts, including collaboration with the City Community Health and Assistance Team. Additionally, the analysis will identify opportunities to pursue Affordable Housing and Sustainable. This task will also include an analysis of the displacement of residents and those experiencing homelessness and identify mitigations to reduce the potential impacts.
Alternatives Analysis
Analyze Transit-Oriented Development, (TOD), multimodal connectivity, land use, safety, zoning, economic, marketing, and infill development strategies. The intent of the Plan is to conduct high-level analysis of connectivity in the region, supported by zoning, economic marketing, and development strategies for the surrounding regions. The analysis will consider potential gaps in existing plans or efforts and identify strategies to prioritize in various reports, plans, maps, visual renderings, additional graphic content, and recommendations. This analysis will highlight TOD and active transportation projects for implementation and identify infill development opportunities within the planning area.
Project Strategy and Action Plan
The Consultant will prepare a project strategy that includes a financial plan detailing project cost estimates, private and public funding options, and other relevant financial information. This task primarily concerns identifying and prioritizing the program and public infrastructure projects.
Draft and Final Plan
The Consultant will prepare a project strategy that includes a financial plan detailing project cost estimates, private and public funding options, and other relevant financial information. This task primarily concerns identifying and prioritizing the program and public infrastructure projects.
The Program operates as a reimbursement and the grant project period is from November 2025 through June 30, 2028, and all final reimbursement requests must be submitted by August 29, 2028. 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 preparation of the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan for (Department) use to Alta Planning + Design Oakland, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Alta Planning + Design was the lowest responsive and responsible bidder #12..
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City Council, July 14, 2026
Downtown Modesto Multimodal Transportation Network and
Land Use Compatibility Action Plan Agreement
FISCAL IMPACT:
The City was awarded $450,000 by Caltrans. The contract with Alta Planning + Design budgets for $449,966, within the total grant amount allocated. The grant revenue and expense budget is in Project 101686 and has sufficient budget available.
Total Grant Budget:
Activity Estimated Costs
Existing Conditions $77,314
Stakeholder and Public Engagement $108,356
Disadvantaged Communities Analysis $20,829
Alternatives Analysis $131,677
Project Strategy and Action Plan $69,888
Draft and Final Plan $41,902
Total $449,966
COMMITTEE RECOMMENDATION:
Due to the timeframe of the grant, this was brought directly to Council.
CEQA REQUIREMENTS:
A Planning Study is an administrative action that could not have an impact on the environment. Planning studies are statutorily exempt from the preparation of an EIR or negative declaration pursuant to section 15262 of the CEQA Guidelines.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving an Agreement with Alta Planning + Design, Oakland, CA, for a total amount not to exceed $449,966 for the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan, and authorizing the City Manager, or his Designee, to negotiate and execute the Agreement.
Approved by:
Jessica Hill, Director of Community and
Economic Development
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Agreement
3. Exhibit A- Scope of Services
4. Exhibit B- Hourly Rates
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07/14/26/CED/Hill/ 1 2026-XX
MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX
RESOLUTION APPROVING AN AGREEMENT WITH ALTA PLANNING +
DESIGN, OAKLAND, CA, FOR A TOTAL AMOUNT NOT TO EXCEED $449,966
FOR THE DOWNTOWN MODESTO MULTIMODAL TRANSPORTATION
NETWORK AND LAND USE COMPATIBILITY ACTION PLAN AND
AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO NEGOTIATE
AND EXECUTE THE AGREEMENT
WHEREAS, in 2020, the City of Modesto approved Resolution 2020-334, adopting the Downtown Master Plan, which outlines strategies to achieve the General Plan vision for downtown and emphasizes multimodal connectivity and transit-oriented development near the transit center; and WHEREAS, in 2025, the City of Modesto applied for a Caltrans Sustainable Transportation Planning Grant with a project titled Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Plan, with the purpose of establishing a more refined vision for the future of Downtown Modesto on and around the transit center and build on the efforts of the San Joaquin Regional Rail Commission’s Valley Rail Expansion Program to integrate the future rail network and its operations with the new Altamont Commuter Express commuter rail station in 2026; and
WHEREAS, on July 1, 2025, Caltrans issued a notification awarding the City of Modesto the Sustainable Transportation Planning Grant for this project.
Following this notification, the City Council formally accepted the award on September 9, 2025, by Resolution No. 2025-317; and
WHEREAS, on January 27, 2026, staff issued a Request for Proposals (INF-RFP-00064) for the procurement of professional consulting services for #12..
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07/14/26/CED/Hill/ 2 2026-XX
the preparation of the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan for the City, with proposals being due on March 23, 2026. 72 vendors downloaded the request for proposal, and four (4) firms submitted proposals by the deadline; and
WHEREAS, an evaluation committee determined Alta Planning + Design, an Oakland based business, to be the most qualified firm for the proposed project based on the evaluation criteria outlined in the RFP document; and WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to follow the formal bid procedures. An Award of Proposal and Agreement for planning services for the Community and Economic Development Department to Alta Planning + Design, Oakland, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Alta was the highest ranked proposal based on the evaluation criteria; and
WHEREAS, the overall scope of work will include an existing conditions review and report, stakeholder and public engagement, disadvantaged communities analysis, alternative analysis, a project strategy and action plan, and a draft and final plan for an amount not to exceed $449,966.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Modesto that it hereby approves the Award of Proposal and Agreement for Planning Services for the Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Plan to Alta Planning + Design, Oakland, CA, for a #12..
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07/14/26/CED/Hill/ 3 2026-XX
total amount not to exceed $449,966.
BE IT FURTHER RESOLVED that the City Manager, or his Designee, is authorized to negotiate and execute the Agreement in a form approved by the City Attorney’s Office.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of July, 2026, by, who moved its adoption, which motion being duly seconded by was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST:
____________________________
DIANE NAYARES-PEREZ, CMC, City
Clerk
(SEAL)
APPROVED AS TO FORM:
BY: __________________________________________
JOSE M. SANCHEZ, City Attorney
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1 STANDARD AGREEMENT
FOR CONSULTANT SERVICES
THIS AGREEMENT made and entered into in the City of Modesto, State of California, this ______ day of ______, 2026, (“Effective Date”) by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter referred to as "CITY", and Alta Planning + Design, a California C Corporation, hereinafter referred to as "CONSULTANT".
This AGREEMENT is made with regard to the following recitals:
a. The CITY has determined that a Downtown Modesto Multimodal Transportation Network and Land Use Compatibility Action Plan should be prepared for the CITY to increase multimodal transportation options, develop the regional transportation network, increase job opportunities and accessibility, and improve the sustainability of downtown Modesto and the current transportation system.
b. CONSULTANT represents that it is qualified, willing, and able to provide the services to prepare said document(s).
NOW, THEREFORE, in consideration of this AGREEMENT, and the mutual promises, covenants, and stipulations hereinafter contained, the parties agree as follows:
1. TERM OF AGREEMENT.
The term of the AGREEMENT is effective as of the date first written above and will continue in effect until CITY’s acceptance of and payment for all services authorized by CITY and performed by CONSULTANT, unless terminated earlier in accordance with the provisions of the termination clause in this Agreement.
CITY anticipates the AGREEMENT will be completed prior to June 30, 2028, consistent with the Grant Expiration Date of the California Department of Transportation's (Caltrans) Sustainable Transportation Planning Grant Award for Fiscal Year 2025-2026. In the event that Caltrans extends the Grant Expiration date, the CITY may elect to extend the duration of the AGREEMENT for work to continue until June 30, 2029, or until all services authorized by CITY and performed by CONSULTANT have completed.
2. SCOPE OF SERVICES.
CONSULTANT shall undertake and complete the preparation of the scope of work as set forth and described in the documents attached hereto and referred to as Exhibit (A) or “Project”. The CONSULTANT shall perform the services as described in Exhibit (A) in a manner compatible with the standards of its profession and shall produce a project that materially conforms to the scope of services and is prepared consistent with the applicable professional standard of care. #12..
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2 3. COMPENSATION.
CONSULTANT agrees to the annual estimated amount of $89,993 and a sum not to exceed $449,966 (maximum compensation) as full remuneration for performing all services and furnishing all staffing and materials for CITY in accordance with Exhibit (A).
The Compensation shall be paid pursuant in the manner and at the times set forth below:
CITY shall pay CONSULTANT on a time and materials basis for CONSULTANT’s actual costs for all work called for in Exhibit (A) to this AGREEMENT. All work to be performed under this AGREEMENT shall be billed at the hourly rates set forth in Exhibit (B) attached hereto.
CONSULTANT shall submit monthly invoices to CITY which include detailed tasks, hours worked, and billable rates for all work completed, and detailed receipts for any out-of-pocket costs paid by CONSULTANT in connection with work performed on this project. Expenses for travel reimbursement shall comply with the City's Administrative Directive (AD) 1.2, as amended periodically. The City's AD 1.2 can be accessible at the link provided - https://www.modestogov.com/DocumentCenter/View/24156/Citys-Administrative-Directive12.
CITY shall pay CONSULTANT by Net 45 Days via manual check.
4. OBLIGATIONS OF CONSULTANT.
Throughout the term of this AGREEMENT, CONSULTANT shall possess, or secure all licenses, permits, qualifications and approvals legally required to conduct business. CONSULTANT warrants that it has all of the necessary professional capabilities and experience, as well as all tools, instrumentalities, facilities and other resources necessary to provide the CITY with the services contemplated by this AGREEMENT. CONSULTANT further warrants that it will follow current, generally accepted and professional practices consistent with the professional skill and care ordinarily provided by consultants practicing in the same or similar locality under the same or similar circumstances to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding this project.
5. PERFORMANCE BY KEY EMPLOYEE.
CONSULTANT has represented to CITY that Chris Sensenig will be the person primarily responsible for the performance of the services referred to in this AGREEMENT. CITY has entered into this AGREEMENT in reliance on that representation by CONSULTANT. CONSULTANT therefore agrees that fifty percent (50%) or more of the time to be devoted to the project that is the subject of this AGREEMENT will be that of the above-named person.
6. OWNERSHIP OF DOCUMENTS/TITLE TO DATA.
Ownership of Documents
All reports, drawings, designs, graphics, working papers and other incidental work or materials furnished hereunder shall become and remain the property of the CITY upon full payment to CONSULTANT, and may be used by CITY as it may require without any additional cost to CITY. CONSULTANT retains ownership of all pre-existing materials, tools, templates, methodologies, software, and intellectual #12..
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3 property developed outside this Agreement, and grants CITY a nonexclusive license to use such materials solely for purposes of this Project. No reports shall be used by the CONSULTANT for purposes other than this AGREEMENT without the express prior written consent of CITY. CONSULTANT shall have the right to include photographic or artistic representations of the design of the Project among CONSULTANT'S promotional and professional materials. Prior to the subsequent use, reuse, or modification of any consultant documents without CONSULTANT'S involvement and oversight, the CITY shall obtain consent from CONSULTANT.
Title to Data
If, as a part of the AGREEMENT, CONSULTANT is required to produce data such as, but not limited to, drawings, plans, specifications, calculations, models, flow diagrams, visual aids and other related materials, the originals of all such data generated under this AGREEMENT will be delivered to CITY upon the completion or termination of services under the AGREEMENT. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this AGREEMENT are prepared specifically for the CITY and are not necessarily suitable for any future or other use.
All materials, documents, data or information obtained from the CITY data files or any CITY medium furnished to CONSULTANT in the performance of this AGREEMENT will at all times remain the property of the CITY. Such data or information may not be used or copied for direct or indirect use by CONSULTANT after termination of this AGREEMENT without written consent of the CITY.
7. NEWS AND INFORMATION RELEASE.
CONSULTANT agrees that it will not issue any news releases in connection with either the award of this AGREEMENT, or any subsequent amendment of or efforts under this AGREEMENT, without first obtaining review and approval of said news releases from CITY through the CITY Manager.
8. CONFLICT OF INTEREST.
CONSULTANT warrants that it presently has no interest and shall not acquire any interest, direct or indirect, which would create a “conflict of interest”, as that term is defined in the Political Reform Act (Gov. Code § 81000 et seq), for the CONSULTANT in the performance of this AGREEMENT.
CONSULTANT warrants that, in performance of this AGREEMENT, CONSULTANT shall not employ any person having any such interest. CONSULTANT understands that, if this AGREEMENT is made in violation of Government Code § 1090 et seq., the entire AGREEMENT is void and CONSULTANT will not be entitled to any compensation for services performed. CONSULTANT agrees to file a Statement of Economic Interests with the City Clerk at the start and end of this AGREEMENT if so, required at the option of CITY.
9. AMENDMENTS.
This AGREEMENT, including the Exhibits attached hereto, may be amended only by a writing signed by both Parties. CITY will not be responsible to pay any charges CONSULTANT may incur in performing services not identified in Exhibit (A) unless first authorized by the CITY in writing. #12..
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4 10. INDEPENDENT CONTRACTOR.
All acts of CONSULTANT, its agents, officers, and employees and all others acting on behalf of CONSULTANT relating to the performance of this AGREEMENT, shall be performed as independent contractors and not as agents, officers, or employees of CITY. Except as CITY may specify in writing, CONSULTANT has no authority to bind or incur any obligation on behalf of CITY. CONSULTANT has no authority or responsibility to exercise any rights or power vested in the CITY. It is understood by both CONSULTANT and CITY that this AGREEMENT shall not under any circumstances be construed or considered to create an employer-employee relationship or a joint venture. CONSULTANT, its agents, officers and employees are and, at all times during the terms of this AGREEMENT, shall represent and conduct themselves as independent contractors and not as employees of CITY.
CONSULTANT shall determine and control the method, details and means of performing the work and services to be provided by CONSULTANT under this AGREEMENT. CONSULTANT shall be responsible to CITY only for the requirements and results specified in this AGREEMENT, and, except as expressly provided in this AGREEMENT, shall not be subjected to CITY's control with respect to the physical action or activities of the CONSULTANT in fulfillment of this AGREEMENT. CONSULTANT is permitted to provide services to others during the same period service is provided to CITY under this AGREEMENT. If necessary, CONSULTANT has the responsibility for employing other persons or firms to assist CONSULTANT in fulfilling the terms and obligations under this AGREEMENT.
If in the performance of this AGREEMENT any third persons are employed by CONSULTANT, such persons shall be entirely and exclusively under the direction, supervision, and control of CONSULTANT. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by the CONSULTANT.
It is understood and agreed that as an independent contractor and not an employee of CITY neither the CONSULTANT or CONSULTANT's assigned personnel shall have any entitlement as a CITY employee, right to act on behalf of the CITY in any capacity whatsoever as an agent, or to bind the CITY to any obligation whatsoever. It is further understood and agreed that CONSULTANT must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of CONSULTANT's personnel. As an independent CONSULTANT, CONSULTANT hereby indemnifies and holds CITY harmless from any and all claims that may be made against CITY based upon any contention by any third party that an employer-employee relationship exists by reason of this AGREEMENT.
11. ASSIGNMENT.
Neither this AGREEMENT nor any portion thereof shall be subcontracted or assigned, without the express prior written consent of the CITY in each and every instance.
12. PATENT/COPYRIGHT MATERIALS.
Unless otherwise expressly provided in the AGREEMENT, CONSULTANT shall be solely responsible for obtaining the right to use any patented or copyrighted materials in the performance of this AGREEMENT. CONSULTANT shall furnish a warranty of such right to use to CITY at the request of CITY.
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5 13. NOTICES.
Notice required by this AGREEMENT shall be given in writing and shall be deemed given and effective upon delivery provided that such are delivered in accordance with the provisions of this Section. Notices shall be delivered either by: (a) personal delivery; (b) overnight courier service which obtains confirmation of delivery; or (c) certified mail, return receipt requested, if delivery is confirmed by a return receipt; or (d) by electronic transmission subject to reasonable proof that the notice was both transmitted and received. Each such notice shall be sent to the parties at the address respectively set forth below or to such other address as a party may designate by written notice given in accordance with the provisions of this Section:
FOR
CONSULTANT:
Alta Planning + Design
Attention: Brett Hondorp
304 12th Street, Suite 2A
Oakland, CA 94607
(510) 540-5008
[email protected]
CITY: City of Modesto
Community & Economic Development
Attention: Michael Hren
P.O. Box 642
Modesto, CA 95353
(209) 577-5273
[email protected]
14. INSURANCE REQUIREMENTS.
During the term of this AGREEMENT, CONSULTANT shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit (C) to this AGREEMENT and shall otherwise comply with the other provisions of Exhibit (C) to this AGREEMENT. CONSULTANT is responsible for uploading updated insurance documentation to the City's "PINS Advantage" program.
15. TERMINATION OF AGREEMENT.
Termination by CITY for Default of CONSULTANT
Should the CONSULTANT default in the performance of this AGREEMENT or materially breach any of its provisions, CITY shall provide CONSULTANT with written notice describing the alleged default or material breach. CONSULTANT shall have ten (10) calendar days from receipt of such notice to cure the default. If CONSULTANT fails to cure the default within such cure period, CITY may terminate this AGREEMENT upon written notice to CONSULTANT, with the termination effective on the date specified in the notice. For the purposes of this section, material breach of this AGREEMENT shall include, but not limited to, any of the following: failure to perform required services or duties, willful destruction of City's property by CONSULTANT, dishonesty or theft. In the event of termination, CITY shall compensate CONSULTANT for all services performed through the termination date. #12..
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6 Termination by CITY for Convenience
The City may also terminate the CONSULTANT's performance under the AGREEMENT, either in whole or in part, at its own discretion, or when conditions encountered during the services make it impossible or impracticable to proceed, or when the City is prevented from proceeding with the AGREEMENT by act of God, by law, or by official action of a public authority, or upon a determination by the City that such termination is in the best interest and convenience of the City, or whenever the City is prohibited from completing the services for any reason. The City shall provide no less that ten (10) calendar days written notice of its intent to terminate the AGREEMENT for convenience and shall endeavor to provide the CONSULTANT with consultation with the City prior to termination. In the event of termination, CITY shall compensate CONSULTANT for all services performed through the termination date.
Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONSULTANT shall:
A. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subconsultants and agents are notified of such termination and act as specified in the notice of termination;
B. Terminate all orders and subconsultants except as necessary to complete any portion of the work that is not terminated;
C. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such subconsultants, but in no event shall recovery by any CONSULTANT or subconsultant include lost profits for portions of the work not completed or undertaken, including materials not delivered; D. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONSULTANT in performing the work whether completed or in process. Prior to the use of any incomplete instruments of service, or any modification of the instruments of service by the CITY or others, the CITY shall obtain written consent from CONSULTANT; E. Settle outstanding liabilities and claims, subject to the approval of CITY, which approval shall not be unreasonably withheld;
F. Complete performance of such part of the work as has not been terminated; G. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the work and/or property related to the work; H. If CITY so requests, and at CITY's cost, CONSULTANT shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONSULTANT's work on the project.
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7 I. The CONSULTANT understands and agrees that CITY may, in CITY's sole discretion, withhold payment only for services determined not to meet the applicable professional standard of care. CITY will pay CONSULTANT an amount based on the percentage of satisfactory work completed in accordance with the notice or termination. The final payment to the CONSULTANT after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
J. The cost of settling and paying valid claims arising out of the termination of the work such as subconsultant AGREEMENTs or contracts for materials;
K. The AGREEMENT price allocable to the portion of the work properly performed, or goods supplied to the work site by the CONSULTANT as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONSULTANT.
Authorization to Terminate Agreement
Termination of the AGREEMENT may be invoked by the City Manager, or his/her designee, subject to the right of the CONSULTANT to appeal the City Manager, or his/her designee's, decision to the City Council. The CONSULTANT shall appeal by notifying the City Clerk in writing within ten (10) calendar days of receipt of written notification from City of termination of the AGREEMENT. In the event that termination of this AGREEMENT is upheld by the City Council, any cessation of payment of delay claims, extended claims, Eichleay claims, or any other claims for delay shall be retroactive to the date of termination selected by the City Manager, or his/her designee.
16. INDEMNITY.
If CONSULTANT is Design Professional performing design professional services, as defined in California Civil Code section 2782.8, CONSULTANT agrees to indemnify, defend, and hold harmless the CITY, its agents, officers, officials, employees and volunteers, from and against any and all claims, demands, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT and its employees, officials, officers, agents or agents in the performance of services under this AGREEMENT, but this indemnity does not apply to liability for damages arising from the sole negligence, or willful misconduct of the CITY. The CITY agrees that in no event shall the cost to defend charged to the CONSULTANT exceed that CONSULTANT's proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the CONSULTANT shall meet and confer with other parties regarding unpaid defense costs. This duty to indemnify shall not be waived or modified by contractual AGREEMENT or acts of the parties.
If CONSULTANT is not a Design Professional performing Design Professional Services, the CONSULTANT shall hold the CITY, its agents, officers, employees, and volunteers harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONSULTANT, or its agents, officers, #12..
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8 officials, employees, or volunteers relating to or during the performance of its obligations under this AGREEMENT, except for claims arising from the sole negligence of the CITY.
CONSULTANT's obligation to defend, indemnify, and hold the CITY, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONSULTANT to procure and maintain a policy of insurance.
In the event that CONSULTANT or any employee, agent, or subcontractor of CONSULTANT providing services under this AGREEMENT is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of CITY, CONSULTANT shall indemnify, defend, and hold harmless CITY for the payment of any employee and/or employer contributions for PERS benefits on behalf of CONSULTANT or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of CITY.
17. DISPUTE RESOLUTION.
Venue for all claims, controversies, or disputes arising out of, or relating to the formation of this AGREEMENT, or the breach, termination execution, enforcement, interpretation, or validity of this AGREEMENT, including the determination of the scope or applicability of this AGREEMENT provision shall be in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California.
18. ATTORNEY'S FEES.
If a party to this AGREEMENT brings any action, including an action for declaratory relief, to enforce or interpret this AGREEMENT, each party shall bear its own attorney's fees and costs, except to the extent otherwise ordered by a court of competent jurisdiction pursuant to applicable law.
19. ENTIRE AGREEMENT.
This AGREEMENT and its exhibits contain the entire understanding between CONSULTANT and CITY. All previous proposals, offers and communications related to this AGREEMENT, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this AGREEMENT. No future waiver of or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by all the parties.
20. PARTIAL INVALIDITY.
If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
21. WAIVER.
The waiver by any party to this AGREEMENT of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.
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9 22. AUDIT.
The CITY's duly authorized representative shall have access at all reasonable times to all reports, contract records, contract documents, contract files, and personnel necessary to audit and verify CONSULTANT's charges to CITY under this AGREEMENT.
CONSULTANT agrees to retain reports, records, documents, and files related to charges under this AGREEMENT for a period of four (4) years following the date of final payment for CONSULTANT services. CITY's representative shall have the right to reproduce any of the aforesaid documents.
23. GOVERNING LAW.
This AGREEMENT shall be governed according to the laws of the State of California.
24. HEADINGS NOT CONTROLLING.
Headings used in the AGREEMENT are for reference purposes only and shall not be considered in construing this AGREEMENT.
25. COMPLIANCE WITH LAWS.
CONSULTANT shall insure compliance with all safety and hourly requirements for employees, in accordance with federal, state, and county safety and health regulations and laws. CONSULTANT shall fully comply with all applicable federal, state, and local laws, ordinances, regulations and permits.
26. CITY BUSINESS LICENSE.
CONSULTANT will have a City of Modesto business license.
IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has authorized the execution of this AGREEMENT by its City Manager and attested by its City Clerk under authority of Resolution No. 2026 - ______, adopted by the Council of the City of Modesto on the 14th day of July, 2026, and Alta Planning + Design has caused this AGREEMENT to be duly executed as of the Effective Date. #12..
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Scope of Work
3.1. Scope
Task 1: Existing Conditions
This task will involve the Consultant conducting a literature review, performing a site walk, and developing an existing conditions analysis of current and planned land uses and multimodal conditions, including pedestrian, bicycle, transit, and vehicular modes. There are multiple existing policies that support the creation and development of these transportation planning strategies, including 2022 Regional Transportation Plan/Sustainable Communities Strategy, Modesto 2040 General Plan, Modesto NonMotorized Transportation Master Plan, Stanislaus County Non-Motorized Transportation Plan, Downtown Modesto Master Plan, among others listed above. These policies support creating an accessible, safe, and vibrant multimodal transportation system for all users.
Existing conditions will consider several project area factors, including but not limited to existing multimodal access, origins and destinations, housing needs, market conditions, parking needs, safety needs, and homelessness concerns. The Existing Conditions will leverage maps, photos, and other graphic content to create a visually appealing and digestible report.
The literature review will include the collection of any current service or connectivity modes. An understanding of what has been done at the local level is vital to the success of the Plan; as such, station area and specific plans will be collected to round out the understanding of land use efforts. Often, these plans will detail the long-term vision for the station or planning area. This vision may detail design considerations and specific land uses that complement the local industries and balance housing with the local economies.
Task Deliverables:
• Existing Conditions Reports
• Monthly Project Management Team (PMT) Meeting Facilitation and Notes Task 2: Stakeholder & Public Engagement
This planning effort is intended to include public participation throughout the study to involve the local community and interested stakeholders in the planning process. The Consultant will include public outreach experts as part of their team.
This task involves the development of a stakeholder outreach and engagement strategy that includes identifying project stakeholders, the engagement timeline, methods of involvement, and an engagement summary to document activities and the results of #12..
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engagement. The strategy should consider activities that will best identify community needs and desired outcomes, including engagement with disadvantaged communities in Census Tracts 15, 16.01, 16.04, 16.03, 22, 17, 18, 21, 23.01, and 23.02 at a minimum. The engagement strategy will create a project webpage and may include the development of a stakeholder working group, 3 community workshops, 5-8 pop up events, 2 surveys, social media engagement, and a combination of in-person and virtual activities. Public engagement workshops will occur before drafting the plan and after the preparation of the draft plan elements. Stakeholders would at minimum include public agencies, the development community (including affordable housing, non-profit, and private developers), community-based organizations, business groups (such as the Downtown Modesto Partnership), local and regional agencies, utilities, community-based organizations, advocacy groups, housing/resident associations, and the community at large.
A workshop may be held during this task, which will be a working session for the project stakeholders to present their transportation needs. The Consultant will facilitate in advance of and during this working session by communicating to the stakeholders the information and data formats that are expected for a successful collaborative effort. This workshop and other engagement will be an opportunity the City, and the Consultant to understand local priorities and will provide the stakeholders with an understanding of how the Plan supports their transportation and land use initiatives.
Agency stakeholder coordination will be necessary to build support and for future implementation. The City will work in partnership with the San Joaquin Regional Rail Commission (SJRRC). The agencies will be invited to participate in monthly or bi-monthly meetings to discuss project process, alternatives, and public engagement.
Task Deliverables:
• Public Engagement Plan
• Public Engagement Summary
• Stakeholder List and Meeting Notes
• Public Engagement Materials (agendas/presentations/notes) • Monthly PMT Meeting Facilitation and Notes
Task 3: Community Impact & Displacement Analysis
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This task will develop a community characteristics analysis including maps based on various State and Federal demographic definitions and other forms of demographic analysis to determine how the project benefits the community. This task will also include an analysis of the displacement of residents and those experiencing homelessness and identify mitigations to reduce the potential impacts. Mitigation strategies will be partially driven by stakeholder and community outreach efforts, including collaboration with the City Community Health and Assistance Team (CHAT). Additionally, the analysis will identify opportunities to pursue Affordable Housing and Sustainable Communities (AHSC) funds.
It’s important that this analysis considers past transportation infrastructure investment and past community development, and that any recommendations are drafted through this lens to improve outcomes for these communities.
The effort from this task will be formulated into best practices, and any insights gleaned for the region will be made actionable for the government practitioners with the development of a set of best practices. Many contemporary transportation projects are concerned with improving safety, air emissions, and reconnecting communities. A successful Plan with a strong community impact analysis will allow future planning to align community connectivity objectives with these outcomes in pursuing further grant funding.
Task Deliverables:
• State and Federal Demographic Definition Maps
• Displacement Analysis and mitigations
• Community Benefits Summary
• Monthly PMT Meeting Facilitation and Notes
Task 4: Alternatives Analysis
This task involves an analysis of Transit Oriented Development (TOD), multimodal connectivity, land use, safety, zoning, economic, marketing, and infill development strategies. The intent of the Plan is to conduct high-level analysis of connectivity in the region, supported by zoning, economic marketing, and development strategies for the surrounding regions. The analysis will consider potential gaps in existing plans or efforts and identify strategies to prioritize in various reports, plans, maps, visual renderings, additional graphic content, and recommendations. This analysis will highlight TOD and active transportation projects for implementation and identify infill development opportunities within the planning area.
Recommended strategies will address how desired outcomes like complete streets, joint development, and a safe, secure, sustainable, multimodal community may be achieved and packaged into a set of project alternatives. Activities would include analyzing the #12..
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opportunities for optimal transit and active transportation connections to new and expanded passenger rail and improved transit performance. Alternatives will identify the implementation of pedestrian and bicycle facilities for non-motorized transportation options between the Station and local destinations downtown. The analysis will include identifying appropriate modes for the City given its transportation context. Station area planning performed by the SJRRC, or other localities and any key transit stops identified by the stakeholders will allow the Consultant to develop the Station Area and Key Transit Stops Study to complement adjacent land uses and the future passenger rail networks.
This study will be vital to understanding the necessary infill developments that will support greater ridership and reduce reliance on single occupancy vehicles in favor of multimodal trips.
The Alternatives Analysis will reflect the findings of stakeholder input from Task 2, including the results of any conversations with developers and members of the underserved community. Information provided from the data collection performed during Task 2 will allow for an inventory of what planning has occurred and what additional planning is required to complement this work. These deliverables will result in refined transportation alternative concepts, resulting in greater regional mobility for all within the City. This activity will also include a phasing strategy for the Plan, which accounts for projected changes in passenger rail ridership and future transportation innovations and balances the supply of land for transportation with other potential uses.
Task Deliverables:
• Land Use and Transportation Consistency Review
• Toolbox Strategies
• Draft Alternatives
• Recommended Final Alternatives
• Monthly PMT Meeting Facilitation and Notes
Task 5: Project Strategy & Action Plan
The Consultant will prepare a project strategy that includes a financial plan detailing project cost estimates, private and public funding options, and other relevant financial information. This task primarily concerns identifying and prioritizing the program and public infrastructure projects. Prioritization will allow the implementation of the project to efficiently allocate resources and designate responsible parties for each of these project efforts. The financial plan will identify strategies that best position the project for future grant pursuits and capitalize on public and private sources of funding, including a roadmap #12..
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for the efficient implementation of project components. The project strategy will build on the financial plan to identify an implementation plan that delivers the project. The implementation plan will reflect the findings of stakeholder input from Task 2, including the results of any conversations with developers and members of the underserved community, to establish project phasing and priorities that are consistent with project objectives.
Project phasing will be tied to funding sources identified in the financial plan and will identify major milestones, goals, and deliverables for each phase.
Task Deliverables:
• Financial Plan
• Action and Phasing Plan
• Monthly PMT Meeting Facilitation and Notes
Task 6: Draft and Final Plan
The Consultant will prepare a project strategy that includes a financial plan detailing project cost estimates, private and public funding options, and other relevant financial information. This task primarily concerns identifying and prioritizing the program and public infrastructure projects. Feedback received will be incorporated into the Project’s final plan, which will be distributed among project partners once adopted by the City Council. The project partners will then use the final plan as a guide to identify future funding opportunities for implementing proposed strategies.
The Final Plan will build on the foundation of previous work and coalesce these findings into goals and objectives. A summary of the study, outreach, data collection, and analysis will allow the public and practitioners to understand the comprehensive effort. Ultimately, the Plan coalesces learnings for implementing successful transportation network integration by breaking up this high-level outcome into smaller projects with anticipated milestones that align with future passenger rail service implementation.
Task Deliverables:
• Draft Plan & Create Final Report
• Internal Reviews and Approvals
• Presentations to Agencies and the Public
• Monthly PMT Meeting Facilitation and Notes
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Principal in
Charge Project Manager Project Director
Assistant Project
Manager
Senior Associate -
Community
Planning
Level II -
Community
Planning
Project
Accountant Planner III
Associate I -
Planning
Graphic Designer
III Technical Editor
Level II -
Community
Planning
Senior Associate -
Community
Planning
Level II -
Community
Planning Alta's Hours
Alta
Expenses
Alta's Sub
Total PIC
Managing
Principal VP
Research
Analyst Hours
Sub
Expenses
Economic &
Planning
Systems
(EPS)
Jeffrey Knowles Chris Sensenig Terri O'Connor Magnus Barber Mitali Ganguly Ana Padilla Kirsten Clausen Parin Patel Ben Miller Joseph Abad Jr Katie Atkins Vatsal Bhavesh
Shah Paige Kruza Sarah Perez
Amy Lapin Jason Moody O'Beime Jakobs
Sub Total
1 Existing Conditions 4 48 4 30 8 36 4 34 10 0 0 24 0 0 202 $ 800 $ 44,820 42 0 4 72 122 $ 2,250 $ 32,494 324 $ 77,314
1.01 Site Tour 0 14 0 10 0 14 0 10 0 0 0 0 0 0 48 $ 800 $ 11,440 8 0 0 0 8 $ - $ 2,772 56 $ 14,212
1.02 Land Use and Development Analysis 0 8 0 0 8 18 0 0 0 0 0 24 0 0 58 $ - $ 11,240 0 0 0 0 0 $ - $ - 58 $ 11,240
1.03 Market Analysis and Housing Needs Assessment 0 4 0 0 0 0 0 0 0 0 0 0 0 0 4 $ - $ 1,120 30 0 4 72 110 $ 2,250 $ 28,336 114 $ 29,456
1.04 Property Owner and Developer Interviews (up to 4 hours) 0 4 0 0 0 0 0 0 0 0 0 0 0 0 4 $ - $ 1,120 4 0 0 0 4 $ - $ 1,386 8 $ 2,506
1.05 Mobility and Transportation Analysis 1 2 4 20 0 0 0 24 10 0 0 0 0 0 61 $ - $ 13,300 0 0 0 0 0 $ - $ - 61 $ 13,300
1.06 Management 3 16 0 0 0 4 4 0 0 0 0 0 0 0 27 $ - $ 6,600 0 0 0 0 0 $ - $ - 27 $ 6,600 2 Stakeholder & Public Engagement 5 100 12 50 0 221 6 23 0 0 0 0 0 0 417 $ 4,800 $ 98,687 16 0 0 20 36 $ 250 $ 9,669 453 $ 108,356
2.01 Public Engagement Plan and Summary Notes 1 12 2 0 0 50 0 0 0 0 0 0 0 0 65 $ - $ 13,586 0 0 0 0 0 $ - $ - 65 $ 13,586
2.02 Stakeholder Working Group (3) 0 12 0 0 0 12 0 0 0 0 0 0 0 0 24 $ - $ 5,589 10 0 0 10 20 $ - $ 5,390 44 $ 10,979
2.03 Community Workshops (3) 0 24 0 20 0 80 0 8 0 0 0 0 0 0 132 $ 3,400 $ 32,150 0 0 0 0 0 $ - $ - 132 $ 32,150
2.04 Community Surveys (1) 0 6 6 8 0 24 0 0 0 0 0 0 0 0 44 $ - $ 10,374 0 0 0 0 0 $ - $ - 44 $ 10,374
2.05 Pop-up Event Toolkit 0 4 0 4 0 25 0 15 0 0 0 0 0 0 48 $ - $ 9,513 0 0 0 0 0 $ - $ - 48 $ 9,513
2.06 Planning Commission/City Council Study Session (1) 0 12 0 6 0 10 0 0 0 0 0 0 0 0 28 $ 500 $ 7,556 6 0 0 10 16 $ 250 $ 4,279 44 $ 11,835
2.07 Planning Commission/City Council Hearings (2) 0 20 0 12 0 10 0 0 0 0 0 0 0 0 42 $ 300 $ 11,346 0 0 0 0 0 $ - $ - 42 $ 11,346
2.08 Management 4 10 4 0 0 10 6 0 0 0 0 0 0 0 34 $ - $ 7,973 0 0 0 0 0 $ - $ - 34 $ 7,973 3 Community Impact & Displacement Analysis 1 10 0 0 0 4 1 0 0 0 0 0 22 42 80 $ - $ 15,945 8 2 2 4 16 $ - $ 4,884 96 $ 20,829
3.01 Displacement Risk Analysis + Mitigation Strategies 0 2 0 0 0 1 0 0 0 0 0 0 10 20 33 $ - $ 6,340 0 0 0 0 0 $ - $ - 33 $ 6,340
3.02 Interviews with Communities At-Risk of Displacement 0 2 0 0 0 1 0 0 0 0 0 0 4 6 13 $ - $ 2,660 0 0 0 0 0 $ - $ - 13 $ 2,660
3.03 Opportunity + Community Benefits Analysis 0 4 0 0 0 1 0 0 0 0 0 0 8 16 29 $ - $ 5,780 8 2 2 4 16 $ - $ 4,884 45 $ 10,664
3.04 Management 1 2 0 0 0 1 1 0 0 0 0 0 0 0 5 $ - $ 1,165 0 0 0 0 0 $ - $ - 5 $ 1,165 4 Alternatives Analysis 4 89 31 44 32 105 8 44 40 16 0 30 0 0 443 $ 4,000 $ 103,121 28 26 2 36 96 $ 800 $ 28,556 539 $ 131,677
4.01 Alternatives Charrette 0 24 16 16 16 24 0 0 0 0 0 0 0 0 96 $ 4,000 $ 27,840 14 14 0 0 28 $ 800 $ 11,121 124 $ 38,961
4.02 Draft Mobility and Transportation Alternatives and Analysis 0 2 8 24 0 1 0 28 32 0 0 0 0 0 95 $ - $ 20,900 0 0 0 0 0 $ - $ - 95 $ 20,900
4.03 Draft Placemaking, Economic Development and Retail Strategy 0 5 0 0 0 0 0 0 0 0 0 0 0 0 5 $ - $ 1,400 14 12 2 36 68 $ - $ 17,435 73 $ 18,835
4.04 Draft Land Use and Development Strategies Alternatives and Analysis 0 16 0 0 16 30 0 0 0 0 0 30 0 0 92 $ - $ 18,520 0 0 0 0 0 $ - $ - 92 $ 18,520
4.05 Draft Alternatives Memo/Presentation 0 6 2 2 0 26 0 8 4 8 0 0 0 0 56 $ - $ 11,382 0 0 0 0 0 $ - $ - 56 $ 11,382
4.06 Recommended/Preferred Alternative Memo 0 4 2 2 0 16 0 8 4 8 0 0 0 0 44 $ - $ 8,904 0 0 0 0 0 $ - $ - 44 $ 8,904
4.07 Management 4 32 3 0 0 8 8 0 0 0 0 0 0 0 55 $ - $ 14,175 0 0 0 0 0 $ - $ - 55 $ 14,175 5 Project Strategy and Action Plan 3 44 7 20 8 49 5 0 40 0 0 40 0 0 216 $ - $ 49,439 20 0 12 50 86 $ - $ 20,449 302 $ 69,888
5.01 Public Projects Action and Phasing Plan 0 4 4 20 0 2 0 0 40 0 0 0 0 0 70 $ - $ 17,514 0 0 0 0 0 $ - $ - 70 $ 17,514
5.02 Public Project Financial Plan 0 4 0 0 0 2 0 0 0 0 0 0 0 0 6 $ - $ 1,554 20 0 12 50 86 $ - $ 20,449 92 $ 22,003
5.03 Land Use and Development Strategy and Action Plan 0 16 0 0 8 40 0 0 0 0 0 40 0 0 104 $ - $ 21,000 0 0 0 0 0 $ - $ - 104 $ 21,000
5.04 Management 3 20 3 0 0 5 5 0 0 0 0 0 0 0 36 $ - $ 9,371 0 0 0 0 0 $ - $ - 36 $ 9,371 6 Draft and Final Plan 8 38 8 16 0 46 4 0 0 46 6 0 0 0 172 $ - $ 38,052 6 0 0 8 16 $ - $ 3,850 188 $ 41,902
6.01 Administrative Draft Modesto Downtown Strategy and Action Plan 4 8 4 4 0 16 0 0 0 36 6 0 0 0 78 $ - $ 15,666 0 0 0 0 0 $ - $ - 78 $ 15,666
6.02 Final Modesto Downtown Strategy and Action Plan 1 6 2 6 0 10 0 0 0 10 0 0 0 0 35 $ - $ 7,812 6 0 0 8 16 $ - $ 3,850 51 $ 11,662
6.03 Final Presentations (up to 2 virtual presentations) 0 8 2 6 0 12 0 0 0 0 0 0 0 0 28 $ - $ 6,888 0 0 0 0 0 $ - $ - 28 $ 6,888
6.04 Management 3 16 0 0 0 8 4 0 0 0 0 0 0 0 31 $ - $ 7,686 0 0 0 0 0 $ - $ - 31 $ 7,686 Staff Hours 25 329 62 160 48 461 28 101 90 62 6 94 22 42 1530 120 28 20 190 372 1902 Labor Total $ 7,755 $ 94,906 $ 19,050 $ 42,718 $ 11,616 $ 85,887 $ 3,631 $ 16,440 $ 20,328 $ 9,765 $ 1,008 $ 15,360 $ 5,280 $ 6,720 $ 340,464 $ 37,800 $ 9,800 $ 5,200 $ 33,250 $ 87,520 $ 427,984 Project Total (Labor + Expenses + Sub Markup) $ 7,755 $ 94,906 $ 19,050 $ 42,718 $ 11,616 $ 85,887 $ 3,631 $ 16,440 $ 20,328 $ 9,765 $ 1,008 $ 15,360 $ 5,280 $ 6,720 $ 9,600 $ 350,064 $ 41,580 $ 10,780 $ 5,720 $ 36,575 $ 3,300 $ 99,902 $ 449,966 Phase
Alta Planning + Design, Inc. Economic & Planning Systems (EPS) Total Task Fee
Total
Task
Hours
Cost Proposal
This proposed budget reflects the scope outlined in this proposal. The cost proposal includes a breakdown of costs by activity listed in the scope of work section, as well as the person hours allocated to each step and their hourly rates and total hours. Employees are all reimbursed by salary. Please also find the same information below for our subconsultant EPS. On the following page please find a summary of our cost proposal for our optional tasks indicated throughout the scope section.
The Alta team is flexible in our approach and looks forward to working with the City to finalize the scope and budget to meet the needs of the City and project.
Principal in Charge Project Manager Project Director
Assistant Project
Manager
Senior Associate -
Community
Planning
Level II -
Community
Planning
Project
Accountant
Associate I -
Planning Planner III
Associate I -
Planning
Graphic Designer
III Technical Editor
Level II -
Community
Planning
Senior Associate -
Community
Planning
Level II - Community
Planning Alta's Hours Alta Expenses Alta's Sub Total PIC Managing
Principal VP
Research
Analyst
Production
Staff Hours
Sub
Expenses
Economic &
Planning Systems
(EPS)
Jeffrey Knowles Chris Sensenig Terri O'Connor Magnus Barber Mitali Ganguly Ana Padilla Kirsten Clausen Siqing Yi Parin Patel Ben Miller Joseph Abad Jr Katie Atkins Vatsal Bhavesh
Shah Paige Kruza Sarah Perez Amy Lapin Jason Moody O'Beime Jakobs Sub Total $300 $280 $300 $260 $240 $180 $125 $220 $160 $220 $150 $160 $160 $240 $160 $315 $350 $260 $175 $105 Alta Planning + Design, Inc. Economic & Planning Systems (EPS) Principal in Charge Project Manager Project Director
Assistant Project
Manager
Senior Associate -
Community
Planning
Level II -
Community
Planning
Project
Accountant
Associate I -
Planning Planner III
Associate I -
Planning
Graphic Designer
III Technical Editor
Level II -
Community
Planning
Senior Associate -
Community
Planning
Level II - Community
Planning Alta's Hours Alta Expenses Alta's Sub Total PIC Managing
Principal VP
Research
Analyst
Production
Staff Hours
Sub
Expenses
Economic &
Planning Systems
(EPS)
Jeffrey Knowles Chris Sensenig Terri O'Connor Magnus Barber Mitali Ganguly Ana Padilla Kirsten Clausen Siqing Yi Parin Patel Ben Miller Joseph Abad Jr Katie Atkins Vatsal Bhavesh
Shah Paige Kruza Sarah Perez Amy Lapin Jason Moody O'Beime Jakobs Sub Total $300 $280 $300 $260 $240 $180 $125 $220 $160 $220 $150 $160 $160 $240 $160 $315 $350 $260 $175 $105 Alta Planning + Design, Inc. Economic & Planning Systems (EPS) #12..
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 24, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services / City Engineer SUBJECT: Will Serve Letter and Outside Service Agreement for Water & Sewer service for 4555 North Star Way (APN: 046-011-002)
CONTACT: Jaspreet Mangat, Senior Civil Engineer, [email protected] 209-577-5253
DESCRIPTION:
Consider approving a Will Serve Letter and Outside Service Agreement with Costa Limited Partners, LP, to connect to the City of Modesto’s existing water and sewer systems for the property located at 4555 North Star Way (APN: 046-011-002). (Funding Sources: Water Fund, Sewer Fund)
STRATEGIC PLAN ELEMENT:
The recommended action supports the City’s 2025-2026 Strategic Plan Goal D, ensure safe, efficient, and reliable infrastructure.
BACKGROUND:
On May 22, 2012, by Resolution No. 2012-202, Council approved amending City Council Policy 5.001 relating to water service connections into unincorporated areas. On June 5, 2012, the City Council approved final adoption of Ordinance No. 3566-C.S. amending City of Modesto Municipal Code Section 11-1.05. These amendments included language which required that the City Manager, upon the recommendation of the Director responsible for utility system planning, request City Council approval for all extensions of water services into unincorporated areas.
On November 25, 2014, by Resolution No. 2014-472 Council approved amending City Council Policy 5.001. On December 9, 2014, the City Council approved adoption of Ordinance No. 3611-C.S. amending City of Modesto Municipal Code Section 11-1.05. #13..
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City Council, July 14, 2026
Will Serve Letter and Outside Service Agreement for Water & Sewer service for 4555 North Star Way (APN: 046-011-002)
Both amendments included language allowing the City Manager, upon the recommendation of the Director responsible for utility system planning, to approve the extension of water services into the former Del Este Water Service Areas without City Council approval. However, the subject parcel is not located within the former Del Este Water Service Area and therefore requires City Council approval prior to allowing the new water connection.
Water service may be granted to properties outside the Modesto city limits, outside the Sphere of Influence and inside, contiguous to and near the former Del Este Water Service Area, as provided in Modesto City Council Policy 5.001 when the following conditions are met:
1) The development has been authorized by the appropriate land use agency. 2) The property is within the former Del Este Water Service Area or is contiguous to and near the former Del Este Water Service Area. 3) It is reasonable for the City to extend the water service based on a plan to pay for service extension costs, the quantity of water used, the type of water use and the overall impact on the water system.
On May 22, 2012, by Resolution No. 2012-203, Council approved amending City Council Policy 5.002 relating to sewer service connections into unincorporated areas. On June 5, 2012, the Council approved final adoption of Ordinance No. 3567-C.S. amending City Municipal Code Section 11-1.05. Both amendments included language which required that the City Manager, upon the recommendation of the Director responsible for utility system planning, request Council approval for all extensions of sewer services into unincorporated areas.
On November 25, 2014, by Resolution No. 2014-473, Council approved amending City Council Policy 5.002. On December 9, 2014, the Council approved adoption of Ordinance No. 3612-C.S. amending City Municipal Code Section 11-1.05. Both amendments included language allowing the City Manager, upon the recommendation of the Director responsible for utility system planning, to approve standard agreements of service for extension of sewer services into certain unincorporated areas without Council approval.
However, the subject parcel is not located within one of those designated areas and therefore requires Council approval prior to allowing the sewer connection.
Sewer service may be granted to properties outside the City limits, as described in City Council Policy 5.002, if it is determined that it is reasonable for the City to extend sewer service to the property.
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City Council, July 14, 2026
Will Serve Letter and Outside Service Agreement for Water & Sewer service for 4555 North Star Way (APN: 046-011-002)
DISCUSSION:
Costa Limited Partners, LP owns the property located at 4555 North Star Way, which is outside the City’s boundaries but is within Modesto’s sphere of influence and is contiguous to the former Del Este Water Service Area. Costa Limited Partner, LP has requested water and sewer service.
Staff have completed an analysis and determined that a sufficient quantity of potable water is available for normal usage as a result of the proposed development. Staff recommend approval of the requested water service connection as described in the attached Will Serve Letter.
Consistent with adopted Local Agency Formation Commission (LAFCO) Policy 15, the extension of sewer service is proposed to remedy a health and safety concern for the proposed development on the property to eliminate the septic tank requirements. Staff conducted an analysis and determined that it is reasonable to extend service to this property. The property owner will enter into agreement to waive the right to protest annexation into the City, as required for sewer service outside the City limits.
FISCAL IMPACT:
Applicant will be subject to the following charges and fees:
1. Will Serve Letter for Water & Sewer - $1,168.00
2. Outside Service agreements for Water & Sewer - $510.00 The above fees will be deposited into the General Fund for staff time spent processing both the Will Serve Letter and Outside Service Agreement. There are no other direct impacts to the General Fund.
The water and sewer connection fee will be determined and collected at the time that the County building permit is issued, or when a separate water permit is issued for the construction of the water line to the property. The water connection fees will be deposited into the Water Fund and sewer connection fees will be deposited into the Sewer Fund.
Pursuant to Municipal Code section 11-6.05, the property will pay 125% of the otherwise applicable water rates unless and until the property is annexed into the City.
COMMITTEE RECOMMENDATION:
This item was not presented to the committee.
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
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City Council, July 14, 2026
Will Serve Letter and Outside Service Agreement for Water & Sewer service for 4555 North Star Way (APN: 046-011-002)
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving a Will Serve Letter and Outside Service Agreement with Costa Limited Partners, LP, to connect to the City of Modesto’s existing water and sewer systems for the property located at 4555 North Star Way (APN: 046-011-002) and authorizing the City Manager, or his designee, to sign the Will Serve Letters and execute the Outside Service Agreements.
Approved by:
Toby Wells, Director of Engineering
Services / City Engineer
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Water Will Serve Letter
3. Sewer Will Serve Letter
4. Outside Service Agreements
5. GIS Map
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7/14/2026/ESD/JMangat/Item ? 1 2026-XX
MODESTO CITY COUNCIL
RESOLUTION NO. 2026-XX
RESOLUTION APPROVING A WILL SERVE LETTER AND OUTSIDE
SERVICE AGREEMENT WITH COSTA LIMITED PARTNERS, LP, TO
CONNECT TO THE CITY OF MODESTO’S EXISTING WATER & SEWER SYSTEMS FOR THE PROPERTY LOCATED AT 4555 NORTH STAR WAY (APN: 046-011-002) AND AUTHORIZING THE CITY MANAGER, OR HIS
DESIGNEE, TO SIGN THE WILL SERVE LETTERS AND EXECUTE THE
OUTSIDE SERVICE AGREEMENTS
WHEREAS, Costa Limited Partners, LP own a commercial property located at 4555 North Star Way which is located outside of Modesto City Limits and within the City’s Sphere of Influence; and
WHEREAS the owners are proposing to connect to City’s water system and sewer system; and
WHEREAS, on May 22, 2012, the City Council approved Resolution No. 2012-202 that amended City Council Policy 5.001; and
WHEREAS, on June 5, 2012, the City Council approved final adoption of Ordinance No. 3566-C.S. amending City of Modesto Municipal Code Section 11-
1.05; and
WHEREAS, on November 25, 2014, the City Council approved Resolution No. 2014-472 that amended City Council Policy 5.001; and WHEREAS, on December 9, 2014, the City Council approved adoption of Ordinance No. 3611-C.S. amending City of Modesto Municipal Code Section 11-
1.05; and
WHEREAS, all of these amendments included language allowing the City Manager upon the recommendation of the Director responsible for utility system planning, to approve standard agreements of service for extension of water and #13..
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7/14/2026/ESD/JMangat/Item ? 2 2026-XX
sewer services into certain unincorporated areas that are located within the former Del Este Water Service Area without City Council approval; and WHEREAS the property located at 4555 North Star Way is not located within the former Del Este Water Service area and therefore requires City Council approval prior to allowing the new water service connection; and WHEREAS, it has been determined that a sufficient quantity of potable water is available for normal usage by the proposed development; and WHEREAS, the water connection fees will be paid and associated permits be obtained prior to beginning any on site construction; and WHEREAS, the property located at 4555 North Star Way is not located within one of those designated areas and therefore requires City Council approval prior to allowing the sewer connection; and
WHEREAS, City staff has completed an analysis and determined that it is reasonable for the City of Modesto to provide sewer service to this property; and WHEREAS, pursuant to Government Code Section 56133, a city may provide extended services outside its jurisdictional boundaries only if it first requests and receives written approval from the Stanislaus Local Agency Formation Commission (LAFCO); and
WHEREAS, the sewer connection fees shall be paid and associated permits will be obtained prior to connecting to the City sewer system; and WHEREAS, the property owner signed an Outside Service Agreements for sewer and water service with the City as required to receive sewer and water service outside the City limits.
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7/14/2026/ESD/JMangat/Item ? 3 2026-XX
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Will Serve Letters and Outside Service Agreements with Costa Limited Partners, LP to connect to the City of Modesto’s existing water and sewer system for the property located at 4555 North Star Way (APN:046-011-002).
BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to sign the Will Serve Letters and execute the Outside Service Agreements, in a form approved by the City Attorney.
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7/14/2026/ESD/JMangat/Item ? 4 2026-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of July, 2026 by Councilmember ______, who moved its adoption, which motion being duly seconded by Councilmember _____, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST: _____________________________
DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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June 24th, 2026
Costa Limited Partners, L.P.
3400 Spyres Way
Manteca, CA 95336
Subject: Water Will Serve Letter for a commercial property located at 4555 Northstar Way, Modesto CA (APN: 046-011-002)
To Whom It May Concern:
As requested in your application dated May 07,2026, the proposed commercial development consisting of 8 commercial/industrial buildings including a roller hockey arena, totaling approximately 93,000 square footages of buildings located at 4555 Northstar Way, Modesto CA (APN: 046-011-002) will be allowed to make the necessary water service connections to the City’s existing water system as described below.
Water Service:
Pursuant to Modesto City Council Resolution No. 98-306 and City Council Policy No. 5.001, both addressing the extension of water service into unincorporated areas, it has been determined that a sufficient quantity of potable water is available for normal usage by the proposed development.
In general, Council Policy No. 5.001 provides that water service extensions may be approved by the City Manager on a case-by-case basis to properties outside the Modesto City Limits, outside of the Modesto Municipal Sewer District Number 1 and outside of the City’s Sphere of Influence when all of the following conditions are met:
1. The development has been authorized by the appropriate land use agency.
2. The property is inside, contiguous to, or near the former service area of the Del Este Water Company.
3. City staff has completed an analysis and determined that it is reasonable for the City of Modesto to extend water service based on a plan to pay for the service extension costs, the quantity of water used, the type of water use and the overall impact on the water system.
In addition to the above requirements, the following items are specific conditions on the proposed project:
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4. That the water demand requirements for the proposed structure will not change significantly from the information contained in the above referenced application.
5. That the proposed development meets all of the applicable Fire District's fire code requirements, and current edition of the California Fire Code, California Building Code and California Residential Code for water fire flow pressure and volume.
6. That the water service connections for the proposed development are made from the existing 12-inch water main in Bangs Avenue and extend through Northstar Way and make a looped connection with existing water main in Glass Lane. The water service connection shall be designed per City /Standards and by a registered engineer authorized to perform such work. Improvement plans shall be submitted to the City for review and approval. All costs associated with its design, installation, and permits shall be borne by the property owner.
7. That the water service lines, and associated meter sizes needed to serve the proposed project be installed.
8. This parcel is inside the sphere of influence but outside the city limits, so the water related charges will be charged 25% higher than the regular rate as per the city ordinance No. 3776 C.S.
9. That all applicable water connection fees are paid, and associated permits be obtained prior to beginning any on-site construction.
10. That the property owner enters into a standard water service agreement with the City, as required for water service outside the City limits, by contacting Land Development Engineering, Deborah Vilmur at (209) 577- 5281 for more information.
Construction of the water connection identified to serve the above referenced project shall be completed prior to twelve (12) months from the date of this letter, and if after such time the service connections have not been made, the City’s approval of said connections will be revoked.
If you have any questions, please contact Alfredo Aguilera at (209) 571-5180.
Recommended By: ___________________________________
Jaspreet Mangat, Senior Civil Engineer
Sincerely,
Joseph P. Lopez
City Manager
cc: William S. Wong - Director of Utilities
Jim Alves – Utilities
Stanislaus County – Building
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June 24th, 2026
Costa Limited Partners, L.P.
3400 Spyres Way
Manteca, CA 95336
Subject: Sewer Will Serve Letter for a commercial property located at 4555 NorthStar Way, Modesto CA (APN: 046-011-002)
To Whom It May Concern:
As requested in your application dated May 07, 2026, the proposed commercial development consisting of 8 commercial/industrial buildings including a roller hockey arena, totaling approximately 93,000 square footages of buildings located at 4555 NorthStar Way, Modesto CA (APN 046-011-002), will be allowed to make a sewer service connection to the City’s sewer system to accommodate normal usage as described below.
Sewer Service:
Pursuant to Modesto City Council Resolution No. 91-434 that establishes various conditions for the extension of sewer services into unincorporated areas, it has been determined that a connection to the City’s sewer system will be allowed to accommodate normal usage by the proposed development.
In general, Resolution No. 91-434 provides that sewer service extensions may be approved by the City Manager, on a case-by-case basis, to properties located outside the Modesto Municipal Sewer District No. 1, but within the Ultimate Sewer Service Area, when all the following conditions are met:
1. The sewer system in which the service connection will be made has sufficient capacity to receive the amount and type of discharge expected from the proposed facility.
2. An appropriately sized sewer line or manhole exists relatively close to the subject property to serve as the connection point.
3. That all applicable water and sewer connection fees are paid, and associated permits be obtained prior to beginning any on-site construction. The property owner agrees to pay all associated monthly water and sewer service charges. #13..
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4. The property owner must execute an outside service agreement with the City of Modesto.
In addition to the above requirements, the following items are specific conditions on the proposed project:
5. That the project’s proposed sewer demands will not change significantly from the above reference letter.
6. The property owner shall connect to the sanitary sewer manhole at the intersection of Bangs Avenue and Northstar Way and extend the sanitary sewer main to be able to service the property. Design of the connecting sewer main shall be per City Standards and by a registered engineer authorized to perform such work. The proposed design shall be approved by the City and all costs associated with its design, installation, and permits shall be borne by the property owner.
7. That the property owner enters into a standard outside sewer service agreement with the City, as required for sewer service outside the City limits. For Starting the agreement process, you can contact Deborah Long at (209) 342- 4712 for more information.
On May 22, 2012, the City Council approved Resolution No. 2012-203 that amended City Council Policy 5.002 relating to sewer connection into unincorporated areas. On June 5, 2012, the City Council approved final adoption of Ordinance No. 3567-C.S. amending City of Modesto Municipal Code Section 11-1.05. Both amendments included language which required that the City Manager, upon the recommendation of the Director responsible for utility system planning, request City Council approval for all extensions of sewer services into unincorporated areas.
Construction of the sewer service connection identified to serve the above referenced property shall be completed prior to twelve (12) months from the City Council date of this letter, and if after such time the service connections have not been made, the City’s approval of said connections will be revoked.
If you have any questions, please contact Alfredo Aguilera at (209) 571-5180.
Recommended By: _______________________________
Jaspreet Mangat, Senior Civil Engineer
Sincerely,
Joseph P. Lopez
City Manager
cc: William S. Wong - Director of Utilities
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Stanislaus County Building Dept.
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1 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template Recording Requested By
City of Modesto
Return to / Mail to
City of Modesto City Clerk
P.O. Box 642
Modesto, CA 95353
OUTSIDE SERVICE AGREEMENT FOR SEWER SERVICE AND
AGREEMENT TO WAIVE PROTEST TO ANNEXATION PROCEEDINGS
This Agreement is made in the City of Modesto, County of Stanislaus, State of California, by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter called CITY, and COSTA LIMITED PARTNERS, LLC, a California limited liability company, hereinafter called OWNER, and entered into on the date the last party executes said agreement.
This Agreement is made with reference to the following recitals:
A. OWNER desires to have sewer service from CITY to his property located outside the City limits of CITY;
B. CITY is agreeable to providing said sewer service under the following terms and conditions,
NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained, the parties hereto mutually agree as follows:
Address: 4555 NORTH STAR WAY
APN: 046-011-002
Legal Description: SEE EXHIBIT A FOR FULL DESCRIPTION OF PROPERTY.
1. OWNER shall do any and all acts necessary to annex the following described property to CITY when requested to do so by CITY:
2. In the event OWNER, for whatever reason, fails to take whatever action is necessary to annex said property when requested to do so by City, City may at its election terminate this agreement by giving written notice thereof to OWNER. In the event this agreement is so #13..
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2 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template terminated, OWNER acknowledges, understands, and agrees that City may thereafter, upon 30 days' written notice to OWNER, in the discretion of the Utilities Director, elect to do either of the following:
(1) disconnect the sewer service connection to said property; or, (2) charge up to ten (10) times the inside-City sewer rates then in effect until OWNER'S property is annexed to the City.
3. OWNER shall pay sewer rates for service outside the CITY as provided by the Modesto Municipal Code until OWNER'S property is annexed to the CITY.
4. The remedy provided in paragraph #2, above, to City, in event the owners breach this agreement, is cumulative and is in addition to any other remedies in law or equity that may be available to City. The election of one or more remedies shall not bar the use of other remedies unless the circumstances make the remedies incompatible.
5. OWNER shall, where a sewer lateral exists to serve the property directly, obtain a permit from CITY to connect to the sewer lateral and pay all the required charges as set forth in Municipal Code Section 5-6.801 through 807, including all applicable subtrunk and perimeter sewer charges.
OWNER shall, where a sewer lateral does not exist to serve the property directly, construct the sewer lateral at his own expense. All work shall be in accordance with plans and specifications approved by CITY, and OWNER shall reimburse CITY for all costs of engineering and inspection incurred by CITY for the sewer lateral extension. In addition, OWNER shall obtain a permit from the CITY to connect to the sewer lateral and shall pay all applicable permit, subtrunk and/or perimeter sewer charges prior to beginning any on-site construction.
6. After the initial sewer connection is made for the above-described property, as set forth in paragraph 5 above, OWNER agrees to obtain a new sewer connection permit from the CITY for each additional unit or units added to the existing sewer service.
7. It is further agreed that upon execution of this agreement by both parties, OWNER shall install said sewer service within six (6) months from the date of execution of this agreement. Failure to do so renders this agreement void. #13..
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3 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template
8. It is distinctly covenanted and agreed by the parties hereto that this agreement shall be recorded and that all the covenants and agreements above expressed shall be held to run with and bind the above-described land and all subsequent owners and occupants thereof.
9. OWNER agrees that sewer discharge requirements as to the property will not change significantly from the originally anticipated sewer discharge requirements. #13..
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4 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has caused this agreement to be executed in duplicate by its City Manager pursuant to Modesto Municipal Code 5-6.309 (a) and City Ordinance No. 3612-C.S., adopted on the 9th day of December, 2014, and OWNER has caused this agreement to be duly executed.
CITY:
CITY OF MODESTO,
a California municipal corporation
By: ________________________________
JOSEPH P. LOPEZ
City Manager
OWNER:
COSTA LIMITED PARTNERS, LLC, a
California limited liability company*
By: ______________________________
Name: ______________________________
Title: ______________________________
Date: ______________________________
ATTEST:
By: ________________________________
DIANE NAYARES-PEREZ, CMC
City Clerk
APPROVED AS TO FORM:
By: ______________________________
Name: ______________________________
Title: ______________________________
Date: ______________________________
(SEAL)
By: _____________________________
JOSE M. SANCHEZ
City Attorney
APPROVED AS TO SUFFICIENCY:
* Corporations - signature of two (2) officers required or one (1) officer plus corporate seal.
Partnership - signature of a partner required
Sole Proprietorship - signature of proprietor required
LLC – signature of proprietor or partner required
By: ________________________________
TOBY WELLS
Director of Engineering Services
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5 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of )
On before me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
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6 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of )
On before me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
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7 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template Departmental Information:
LOCATION OF PROPERTY 4555 NORTH STAR WAY
Street Address
MAILING ADDRESS OF OWNER: 4300 Spyres Way
(if different from location Street Address
of property)
Modesto, CA 95356
City
Phone Number
OWNER'S AGENT
(if any) Name
Address
City
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8 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template
AGREEMENT TO WAIVE PROTEST TO ANNEXATION PROCEEDINGS
This Agreement, made and entered into in the City of Modesto, County of Stanislaus, State of California, this day of , 2026, by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter called “CITY”, and COSTA LIMITED PARTNERS, LLC, a California limited liability company, hereinafter called “OWNER”.
This Agreement is made with reference to the following recitals:
1. CITY and OWNER entered into an Outside Service Agreement on __________, 2026 (hereinafter “OSA”). That Agreement required OWNER to do any and all acts necessary to annex the following described property to CITY when requested to do so by CITY:
Address: 4555 NORTH STAR WAY
APN: 046-011-002
Description: SEE EXHIBIT A FOR FULL DESCRIPTION OF PROPERTY.
2. In reliance on the promise related in the next preceding paragraph, the CITY retained the right to terminate its OSA with OWNER and disconnect sewer service to the above-described property, refuse to provide sewer service to it, and/or seek other remedies against Owner, in the event that OWNER did not take all actions necessary to annex its property to CITY.
3. Pursuant to Government Code Section 57051, OWNER has the legal right to file a written protest either as an owner of land or as a registered voter within inhabited territory proposed to be annexed to CITY against annexation of that territory.
4. CITY and OWNER agree that the right described in the next preceding paragraph is an advantage of law intended solely for Owner’s benefit, and not a law established for a public reason which cannot be waived or circumvented by agreement.
5. Owner agrees and represents that if the right described in paragraph 3 is jointly held, it has the sole authority to exercise that right, and that Owner will maintain such sole authority throughout the life of this agreement.
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9 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained, the parties hereto mutually agree as follows:
A. OWNER agrees that all of the foregoing recitals are factually true.
B. OWNER agrees to and does hereby, waive any and all rights, whether jointly or severally held, to do any act authorized by Government Code Section 57051 to the full extent allowed by Civil Code Section 3513.
C. OWNER understands and agrees that this Agreement to waive protest rights does not in any manner amend or alter the OSA.
D. In consideration of OWNER’S agreements contained herein, CITY agrees to accept this waiver as a partial discharge of OWNER’S duties and obligations under the OSA, with respect to OWNER’S duty thereunder to do all things necessary to annex its property to the CITY when requested to do so by CITY.
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10 4555 NORTH STAR WAY P:\Dev Services\Agreements_Water_Sewer_SD\Master Templates\Sewer OSA Template IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement in duplicate by its City Manager and attested by its City Clerk on the _____ day of ____________, 2026, and OWNER has executed the Agreement the day and year first above written.
CITY:
CITY OF MODESTO,
a California municipal corporation
By: ________________________________
JOSEPH P. LOPEZ
City Manager
OWNER:
COSTA LIMITED PARTNERS, LLC, a
California limited liability company*
By: ______________________________
Name: ______________________________
Title: ______________________________
Date: ______________________________
ATTEST:
By: ________________________________
DIANE NAYARES-PEREZ, CMC
City Clerk
By: ______________________________
Name: ______________________________
Title: ______________________________
Date: ______________________________
(SEAL)
APPROVED AS TO FORM:
By: _____________________________
JOSE M. SANCHEZ
City Attorney
* Corporations - signature of two (2) officers required or one (1) officer plus corporate seal.
Partnership - signature of a partner required
Sole Proprietorship - signature of proprietor required
LLC – signature of proprietor or partner required
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ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of )
On before me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
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ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of )
On before me,
(insert name and title of the officer)
personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
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Recording Requested By
City of Modesto
Return to / Mail to
City of Modesto City Clerk
P.O. Box 642
Modesto, CA 95353
SPACE ABOVE THIS LINE FOR RECORDER'S USE
OUTSIDE SERVICE AGREEMENT FOR WATER SERVICE AND
AGREEMENT TO WAIVE PROTEST TO ANNEXATION PROCEEDINGS
This Agreement is made and entered into in the City of Modesto, County of Stanislaus, State of California, by and between the City of Modesto, a municipal corporation of the State of California, (hereinafter “City”), and COSTA LIMITED PARTNERS, LLC, a California limited liability company, (hereinafter “Owner”) and entered into on the date the last party executes said agreement.
This Agreement is made with reference to the following recitals:
A. Owner desires to have water service from City to its property located outside the city limits of City and more fully described in paragraph 1 below, (“Property”), and B. In order to provide said water service, City must extend its system, and C. City is agreeable to providing said water service under the terms and conditions set forth herein,
NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained, the parties hereto mutually agree as follows:
1. This agreement is between the City and the Owner of the following described property:
Address: 4555 NORTH STAR WAY APN: 046-011-002
Legal Description: SEE EXHIBIT A FOR FULL DESCRIPTION OF PROPERTY. #13..
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2. Owner agrees to pay all fixed fees for all system operations and management services for water service. These include, but are not limited to, the following: deposit, disconnect fee, reconnect fee, late payment penalty fee, return check fee, collection agency fee, water disconnect notice, unauthorized reconnect, lock breakage fee/lock replacement fee, disconnect water line at main for nonpayment fee.
3. In the event Owner, for any reason, fails to make any of the payments provided for in Paragraph 2 in a timely manner, City may, at its option, terminate this Agreement by giving written notice thereof to Owner by First class mail. City may thereafter, at any time upon fifteen (15) calendar days written notice by First class mail to Owner, refuse to provide water service, or City may disconnect the water service connection to said property, at the City’s sole discretion.
In the event of Owners' breach of this Agreement, the remedy provided in this Paragraph to City is cumulative and is in addition to any other remedies in law or equity that may be available to City. The election of one or more remedies shall not bar the use of other remedies unless the circumstances make the remedies incompatible. The waiver or failure to enforce any breach hereof shall not be construed as a waiver of or bar to enforcement of subsequent breaches.
4. To the extent permitted by law, Owner agrees to and does hereby waive any and all rights it may have under law to challenge the payment of the City fees as provided for in Paragraphs 2 above. In the event, for whatever reason, Owner at any time contests, protests, or files any action in state or Federal court to invalidate the applicability of said fees to Owner, then, this Agreement shall immediately terminate and shall be of no further force and effect.
5. Owner shall comply with all water use rules and regulations as set forth in the #13..
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Modesto Municipal Code.
6. Owner shall pay water service charges and water main connection charges as set forth in the Modesto Municipal Code.
7. If the necessary water mains or services or appurtenances do not exist to provide water service to the property, City and Owner shall comply with the requirements of the Modesto Municipal Code and the City of Modesto Engineering Standard Specifications for the installation of necessary water mains and appurtenances thereto. The necessary water mains, services and appurtenances shall be installed by either City or Owner, as set forth in said requirements, to provide water service to the above property. In no event, will City be obligated to pay the initial cost of any such water mains, services or appurtenances at the direction of Owner. Rather, City agrees to use the procedures, methods, timing and other criteria set forth in its written authorities to provide water service to Owner at the good faith convenience of the City. Owner may accelerate the process of receiving water service from City by agreeing in a subsequent agreement to pay the facilities installation costs of such services in advance of their installation, subject to reimbursement pursuant to the aforementioned written authorities.
8. It is distinctly covenanted and agreed by the parties hereto that this Agreement shall be recorded and that all the covenants and agreements expressed above shall be held to run with and bind the above-described land and all subsequent owners and occupants thereof.
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IN WITNESS WHEREOF, the City of Modesto, a municipal corporation, has caused this Agreement to be executed in duplicate by its City Manager and attested by its City Clerk pursuant to Modesto Municipal Code 11-1.05 (b) and City Ordinance No. 3611-C.S., adopted on the 9th day of December, 2014, and OWNER has caused this agreement to be duly executed.
CITY:
CITY OF MODESTO,
a California municipal corporation
By: ________________________________
JOSEPH P. LOPEZ
City Manager
ATTEST:
By: ________________________________
DIANE NAYARES-PEREZ, CMC
City Clerk
APPROVED AS TO FORM:
By: _____________________________
JOSE M. SANCHEZ
City Attorney
APPROVED AS TO SUFFICIENCY:
By: ________________________________
TOBY WELLS
Director of Engineering Services
OWNER:
COSTA LIMITED PARTNERS, LLC,
a California limited liability company*
Signature: _________________________________________
Name:
(Print Name)
Title:
Date _______________________________________________
Signature: _________________________________________
Name:
(Print Name)
Title:
Date ________________________________________________
* Corporations - signature of two (2) officers required or one (1) officer plus corporate seal.
Partnership - signature of a partner required
Sole Proprietorship - signature of proprietor required
LLC – signature of proprietor or partner required
(SEAL)
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AGREEMENT TO WAIVE PROTEST TO ANNEXATION PROCEEDINGS
This Agreement, made and entered into in the City of Modesto, County of Stanislaus, State of California, this day of , 2025, by and between the CITY OF MODESTO, a municipal corporation of the State of California, hereinafter called “CITY”, and COSTA LIMITED PARTNERS, LLC, a California limited liability company, hereinafter called “OWNER”.
This Agreement is made with reference to the following recitals:
1. CITY and OWNER entered into an Outside Service Agreement on ___________, 2025 (hereinafter “OSA”). That OSA required OWNER to do any and all acts necessary to annex the following described property to CITY when requested to do so by CITY:
Address: 4555 NORTH STAR WAY APN: 046-011-002
Legal Description: SEE EXHIBIT A FOR FULL DESCRIPTION OF PROPERTY.
2. In reliance on the promise related in the next preceding paragraph, the CITY retained the right to terminate its OSA and disconnect water service to the above-described property, refuse to provide water service to it, and/or seek other remedies against Owner, in the event that OWNER did not take all actions necessary to annex its property to CITY.
3. Pursuant to Government Code Section 57051, OWNER has the legal right to file a written protest either as an owner of land or as a registered voter within inhabited territory proposed to be annexed to CITY against annexation of that territory.
4. CITY and OWNER agree that the right described in the next preceding paragraph is an advantage of law intended solely for Owner’s benefit, and not a law established for a public reason which cannot be waived or circumvented by agreement. #13..
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5. OWNER agrees and represents that if the right described in paragraph 3 is jointly held, it has the sole authority to exercise that right, and that OWNER will maintain such sole authority throughout the life of this agreement.
NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained, the parties hereto mutually agree as follows:
A. OWNER agrees that all of the foregoing recitals are factually true.
B. OWNER agrees to and does hereby, waive any and all rights, whether jointly or severally held, to do any act authorized by Government Code Section 57051 to the full extent allowed by Civil Code Section 3513.
C. OWNER understands and agrees that this Agreement to waive protest rights does not in any manner amend or alter the OSA.
D. In consideration of OWNER’S agreements contained herein, CITY agrees to accept this waiver as a partial discharge of OWNER’S duties and obligations under the OSA, with respect to OWNER’S duty thereunder to do all things necessary to annex its property to the CITY when requested to do so by CITY.
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IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement in duplicate by its City Manager and attested by its City Clerk on the _____ day of , 2025, and OWNER has executed the Agreement the day and year first above written.
CITY:
CITY OF MODESTO,
a California municipal corporation
By: ________________________________
JOSEPH P. LOPEZ
City Manager
OWNER:
COSTA LIMITED PARTNERS, LLC,
a California limited liability company*
Signature: _________________________________________
Name:
(Print Name)
Title:
Date _______________________________________________
ATTEST:
By: ________________________________
DIANE NAYARES-PEREZ, CMC
City Clerk
Signature: _________________________________________
Name:
(Print Name)
Title:
Date ________________________________________________
APPROVED AS TO FORM:
By: ________________________________
JOSE M. SANCHEZ
City Attorney
* Corporations - signature of two (2) officers required or one (1) officer plus corporate seal.
Partnership - signature of a partner required
Sole Proprietorship - signature of proprietor required
LLC – signature of proprietor or partner required
(SEAL)
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4555 NORTH STAR WAY
Parcels
Jurisdiction
Modesto
5/19/2026, 11:01:48 AM
0 0.03 0.06 0.11 mi
0 0.04 0.09 0.18 km
1:3,190
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CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
July 14, 2026
Date: June 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Toby Wells, Director of Engineering Services/City Engineer SUBJECT: Award Construction Contract for the Coleman F. Brown Playground Replacement Project
CONTACT: Nathan Houx, Parks Planning and Development Manager, [email protected], 209-571-5526
DESCRIPTION:
Consider approving the Plans and Specifications for the Coleman F. Brown Playground Replacement Project, accepting the Bid and Awarding a Construction Contract to Eclipse Pro dba Jaycon, of Elk Grove, CA, in the amount not to exceed $643,768. (Funding Source: Measure H)
STRATEGIC PLAN ELEMENT:
This item is consistent with the following 2025-2026 Strategic Plan Area of Focus:
Quality of Life.
BACKGROUND:
With a significant amount of deferred maintenance in our park system, many park amenities are severely in need of replacement. Parks Planning and Development staff established a plan to systematically address the deferred maintenance. In June 2023, by Resolution 2023-266, Council approved the FY 2023-2024 budget, which included $6,100,000 of Measure H funding for deferred park maintenance.
As part of the deferred park maintenance allocation, $2,520,000, was budgeted for the replacement of playground structures at eight (8) City parks: Aqueduct Park, City Gate Children’s Park, Lakewood Park, Mildred Perkins Park, Riverside Park, Orchard Park, Coleman F. Brown Park, and Davis Park. Staff have replaced the playground structures at six (6) of the eight (8) budgeted parks, with Coleman F. Brown Park and Davis Park remaining.
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City Council, July 14, 2026
Award Construction Contract for the Coleman F. Brown Playground Replacement Project