The City does not currently test for SS but has in the past and will need to do so again for Sconza monitoring and should also test for the total SS received at the treatment plant.
Appendix B-3 through Appendix B-5 provides the method used to calculate the non-residential fixed charges, variable rates, and Sconza BOD and SS strength charges.
Proposed Wastewater Rates
The proposed rates for wastewater service are provided in Table 33 and include the current rates for comparison.
Table 33 is a summary of the fixed, variable, and strength charges that were calculated in Appendices B-3 through B-5. The proposed wastewater rates correct the deficiencies shown in Table 32 which were illustrated in Charts 2 and 3 while also recovering the cost of service for each class. 336
Water and Wastewater Rate Study City of Oakdale
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Wastewater Bill Impacts
Since the single-family residential wastewater charge is a fixed charge per month, the impact to the current SFR can be determined by inspection of Table 33. The SFR monthly wastewater bill will increase from $61.27 per month to $63.10, an increase of $1.83 per month, or 3.0 percent.
Wastewater Rate Survey
A wastewater rate survey was conducted for neighboring communities to the City of Oakdale. Chart 4 compares the Oakdale single-family residential monthly wastewater bill with those of neighboring communities.
The rate survey includes rate schedules in effect March 2026. Wastewater bills for Oakdale are shown using the current rates and the proposed rates for implementation July 16, 2026. All of the bills are fixed charges per month and have no volume component.
Table 33
Proposed Wastewater Rates
[1] For each 20 Average Daily Attendance (ADA).
Current July 16, July 16, July 16, July 16, July 16,
Classification Rate 2026 2027 2028 2029 2030
Fixed Charge ($ per month)
Residential $61.27 $63.10 $68.53 $74.43 $76.67 $78.97
Multifamily Residential 61.27 29.86 32.43 35.22 36.28 37.37 Commercial Std Strength (C1) 38.10 85.73 93.09 101.08 104.11 107.22 Commercial High Strength (C2) 38.10 85.73 93.09 101.08 104.11 107.22 Church (CH) 38.10 63.10 68.53 74.43 76.67 78.97
Industrial (I) 28.64 85.73 93.09 101.08 104.11 107.22
Oakdale Unified Schools [1] 38.10 31.30 34.00 36.92 38.03 39.18 Industrial (Sconza) $28.64 $85.73 $93.09 $101.08 $104.11 $107.22 Variable Charge ($ per Ccf)
Commercial Std Strength (C1) $2.65 $3.21 $3.49 $3.79 $3.91 $4.02 Commercial High Strength (C2) $4.23 $7.47 $8.12 $8.82 $9.10 $9.37 Industrial (Sconza) n/a $4.64 $5.05 $5.48 $5.65 $5.82
Sconza Strength Charges ($ per lb)
BOD ($/lb) n/a $0.7717 $0.8393 $0.9128 $0.9416 $0.9713
SS ($/lb) n/a $0.7337 $0.7969 $0.8655 $0.8916 $0.9185
Industrial (Sconza)
From (mg/l) To (mg/l)
200 300 $1.86
301 700 $1.97
701 1,000 $3.31
1,001 1,500 $3.52
1,501 2,000 $3.82
2,001 2,500 $4.46
2,501 3,000 $4.85
Over 3,000 $6.44
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Water and Wastewater Rate Study City of Oakdale
Tuckfield & Associates DRAFT 41
The chart indicates that with the July 2026 wastewater rate change, an Oakdale single-family residential customer will experience a bill that is in the mid to upper range of the communities listed.
Chart 4
Single-family Residential Monthly Wastewater Bills
For Rates in Effect March 2026
Note: Above table uses wastewater rates in effect March 2026. Oakdale July 2026 bill is based on the rate structure and rates in Table 33.
338
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Appendix A
Technical Appendix
Water Cost of Service Allocations are provided in Appendix A. 339
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Table A-1
Water Cost of Service Allocation
Direct
5-Year Peaking Customer Fire
Description Average Base Max Day Max Hour Meters/Serv Customer Protection Waterline Maintenance
Maintenance Personnel Services $1,909,446 $583,884 $467,107 $654,540 $172,061 $0 $31,854 Maintenance 1,808,545 1,048,708 304,147 305,316 80,259 0 70,114 Maintenance Capital Outlay 170,853 52,245 41,796 58,567 15,396 0 2,850 Total Waterline Maintenance $3,888,844 $1,684,836 $813,051 $1,018,423 $267,716 $0 $104,818 Waterline Administration
Admin Personnel Services $574,195 $99,508 $48,019 $60,149 $15,811 $344,517 $6,191 Admin Maintenance 623,888 108,119 52,175 65,354 17,180 374,333 6,726 Admin Capital Outlay 59,317 9,896 5,068 6,457 1,697 35,590 609 Total Waterline Administration $1,257,400 $217,524 $105,262 $131,960 $34,689 $754,440 $13,526 Total Average O&M $5,146,244 $1,902,360 $918,313 $1,150,383 $302,404 $754,440 $118,344 Capital Costs
Capital Improvement Program $1,965,078 $600,895 $480,717 $673,610 $177,074 $0 $32,782 Machinery and Equipment 24,250 7,415 5,932 8,313 2,185 0 405 Computer and Related Equipment 9,876 3,020 2,416 3,385 890 0 165 Fueling and Fleet Maintenance Software 11,000 3,364 2,691 3,771 991 0 184 Vehicles 52,000 15,901 12,721 17,825 4,686 0 867
Total Average Capital $4,062,204 $1,242,170 $993,736 $1,392,486 $366,046 $0 $67,766 Adjustments
Miscellaneous Income ($2,468,975) ($912,681) ($440,572) ($551,911) ($145,082) ($361,952) ($56,777) Adjustments to Annual Cash Balance (298,824) (110,463) (53,323) (66,799) (17,560) (43,808) (6,872) Total Average Adjustments ($2,767,799) ($1,023,144) ($493,895) ($618,709) ($162,642) ($405,760) ($63,649) Total Average Revenue Requirement $6,440,649 $2,121,385 $1,418,153 $1,924,159 $505,809 $348,680 $122,461 Percentage Allocation 32.9% 22.0% 29.9% 7.9% 5.4% 1.9%
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Table A-2
FY 2026-27 Distribution of Costs to Fire Protection
Fire
Description Max Day Max Hour Protection
Total Costs of Service $1,350,586 $1,832,483 $116,627
Units of Service 10,371 20,855 9,060
Unit Costs of Service $130.23 $87.87 $12.87
Units of Measure HCF/day HCF/day Eq. Hyd
Direct
Allocated Peaking Fire
Description Total Cost Max Day Max Hour Protection
Unit Costs of Service $130.23 $87.87 $12.87
Units of Measure HCF/day HCF/day Eq. Hyd
Public Fire Protection
Units of Service 963 6,738 9,060
Allocated Cost of Service $834,032 $125,353 $592,052 $116,627 Private Fire Protection
Units of Service 49 346 0
Allocated Cost of Service $36,799 $6,430 $30,369 $0
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Appendix B
Technical Appendix
Wastewater Cost of Service Allocations and Design of Fixed, Variable, and Strength Charges are provided in Appendix B. 342
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Table B-1
Wastewater Cost of Service Allocation
Common to All Common to All
5-Year Strength Customer Except Sconza Direct to
Description Average Flow BOD SS Capacity Customer Capacity Customer Sconza Storm Drains
Maintenance $91,713 $14,952 $0 $0 $0 $76,761 $0 $0 $0
Total Waterline Maintenance $91,713 $14,952 $0 $0 $0 $76,761 $0 $0 $0 WW Control Plant
Control Plant Personnel Services $1,111,121 $432,608 $356,504 $210,140 $100,109 $0 $0 $0 $11,760 Control Plant Maintenance 1,316,277 720,092 318,548 187,767 89,451 0 0 0 420 Control Plant Capital Outlay 30,170 11,872 9,784 5,767 2,747 0 0 0 0 Total WW Control Plant Maintenance Exp $2,457,568 $1,164,572 $684,836 $403,673 $192,307 $0 $0 $0 $12,179 Sewer Line Maintenance
Sewer Line Personnel Services $1,833,130 $0 $0 $0 $492,507 $0 $1,207,452 $133,171 $0 Sewer Line Maintenance 423,678 55,256 0 0 98,984 0 242,673 26,765 0 Sewer Line Capital Outlay 397,737 0 0 0 106,860 0 261,983 28,894 0 Total Sewer Line Maintenance Expense $2,654,545 $55,256 $0 $0 $698,352 $0 $1,712,108 $188,830 $0 Administration
Administration Personnel Services $611,699 $105,902 $87,272 $51,442 $113,501 $9,782 $218,183 $24,064 $1,552 Administration Maintenance 626,940 108,541 89,447 52,724 116,329 10,026 223,619 24,663 1,591 Administration Capital Outlay 67,638 11,710 9,650 5,688 12,550 1,082 24,125 2,661 172 Total Administration Expense $1,306,277 $226,154 $186,369 $109,854 $242,381 $20,889 $465,927 $51,388 $3,314 Subtotal Average O&M $6,510,103 $1,460,933 $871,205 $513,528 $1,133,040 $97,650 $2,178,035 $240,217 $15,494 Allocation of General Costs
Total Average O&M $6,510,103 $1,460,933 $871,205 $513,528 $1,133,040 $97,650 $2,178,035 $240,217 $15,494 Capital Costs
Replacement Transfer $800,000 $181,755 $149,781 $88,288 $132,901 $0 $222,711 $24,563 $0 Current Debt Service [1] 1,165,084 458,470 377,817 222,703 106,094 0 0 0 0 Total Capital Costs $1,965,084 $640,226 $527,599 $310,990 $238,996 $0 $222,711 $24,563 $0 Adjustments [2]
Revenue Offsets ($189,900) ($42,615) ($25,413) ($14,980) ($33,051) ($2,848) ($63,533) ($7,007) ($452) Adjustments for Annual Cash Balance (1,382,823) (310,320) (185,054) (109,079) (240,671) (20,742) (462,641) (51,025) (3,291) Total Adjustments ($1,572,723) ($352,935) ($210,467) ($124,059) ($273,722) ($23,591) ($526,174) ($58,032) ($3,743) Total Average O&M and Capital $6,902,464 $1,748,224 $1,188,336 $700,459 $1,098,314 $74,060 $1,874,572 $206,748 $11,751 Percentage Allocation 25.3% 17.2% 10.1% 15.9% 1.1% 27.2% 3.0% 0.2% 343
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Table B-2
FY 2026-27 Allocated Wastewater Cost of Service to Customer Classification Common to All Common to All
Allocated Strength Customer Except Sconza Direct to
Description Total Cost Flow BOD SS Capacity Customer Capacity Customer Sconza Unit Costs of Service $2.38 $0.7717 $0.7337 $378.05 $0.56 $651.89 $2.15 $0.80 Units of Measure HCF lb lb HCF/day Bills HCF/day Bills HCF Residential
Units of Service 610,437 795,221 795,221 2,509 87,156 2,509 87,156 0 Allocated Cost of Service $5,468,025 $1,451,195 $613,659 $583,461 $948,382 $48,859 $1,635,351 $187,119 $0 Multifamily Residential
Units of Service 48,581 63,286 63,286 200 15,336 200 15,336 0 Allocated Cost of Service $457,908 $115,491 $48,837 $46,434 $75,476 $8,597 $130,147 $32,926 $0 Commercial Std Strength (C1)
Units of Service 93,276 121,511 121,511 383 5,280 383 5,280 0 Allocated Cost of Service $813,763 $221,745 $93,768 $89,154 $144,915 $2,960 $249,885 $11,336 $0 Commercial High Strength (C2)
Units of Service 23,192 101,341 86,864 95 660 95 660 0
Allocated Cost of Service $297,020 $55,134 $78,203 $63,733 $36,031 $370 $62,131 $1,417 $0 Church (CH)
Units of Service 5,340 6,956 6,956 22 240 22 240 0
Allocated Cost of Service $46,419 $12,695 $5,368 $5,104 $8,296 $135 $14,306 $515 $0 Industrial (I)
Units of Service 252 328 328 1 24 1 24 0
Allocated Cost of Service $2,225 $599 $253 $241 $392 $13 $675 $52 $0 Oakdale Unified Schools
Units of Service 8,822 7,159 5,507 36 12 36 12 0
Allocated Cost of Service $67,910 $20,973 $5,525 $4,041 $13,706 $7 $23,634 $26 $0 Industrial (Sconza)
Units of Service 12,141 671,252 15,816 50 12 0 0 12,141 Allocated Cost of Service $587,001 $28,863 $517,994 $11,604 $18,862 $7 $0 $0 $9,670 Total Costs of Service $7,740,271 $1,906,695 $1,363,608 $803,772 $1,246,060 $60,947 $2,116,129 $233,390 $9,670 344
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Table B-3
Design of Wastewater Fixed Charges
Description FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 SFR Residential
Customer $48,993 $53,455 $58,324 $60,360 $62,465
Capacity 956,678 1,043,997 1,139,258 1,179,234 1,220,584 Flow 1,463,889 1,597,502 1,743,267 1,804,439 1,867,710
BOD 619,027 676,566 739,430 766,572 794,683
SS 588,565 642,397 701,135 725,865 751,448
Common to All Except Industrial
Customer 1,649,657 1,800,120 1,964,263 2,033,069 2,104,236 Capacity 187,634 204,724 223,367 231,164 239,229
Total Costs $5,514,444 $6,018,762 $6,569,043 $6,800,704 $7,040,355 Number of Bills 87,396 87,828 88,260 88,704 89,148
Customer Cost per Unit $63.10 $68.53 $74.43 $76.67 $78.97 Multifamily Residential
Customer $8,597 $9,334 $10,134 $10,436 $10,746
Capacity 75,476 81,962 89,005 91,670 94,415
Flow 115,491 125,416 136,194 140,271 144,471
BOD 48,837 53,116 57,768 59,591 61,470
SS 46,434 50,433 54,777 56,426 58,126
Common to All Except Industrial
Customer 130,147 141,323 153,459 158,044 162,767
Capacity 32,926 35,748 38,812 39,966 41,154
Total Costs $457,908 $497,332 $540,150 $556,405 $573,149 Number of Bills 15,336 15,336 15,336 15,336 15,336
Customer Cost per Unit $29.86 $32.43 $35.22 $36.28 $37.37 Commercial (Includes Church (CH) and Industrial (I))
Customer $3,343 $3,630 $3,941 $4,058 $4,179
Capacity 181,338 196,921 213,844 220,246 226,840
Flow 599 651 706 728 749
BOD 253 276 300 309 319
SS 241 262 284 293 302
Common to All Except Industrial
Customer 312,691 339,543 368,701 379,717 391,063
Capacity 12,804 13,902 15,094 15,542 16,004
Total Costs $511,270 $555,183 $602,870 $620,893 $639,456 Number of Bills 5,964 5,964 5,964 5,964 5,964
Customer Cost per Unit $85.73 $93.09 $101.08 $104.11 $107.22 Oakdale Unified Schools
Customer $7 $7 $8 $8 $8
Capacity 13,706 14,884 16,163 16,647 17,145
Flow 20,973 22,775 24,732 25,473 26,235
BOD 5,525 6,009 6,535 6,741 6,954
SS 4,041 4,389 4,767 4,910 5,058
Common to All Except Industrial
Customer 23,634 25,664 27,867 28,700 29,558
Capacity 26 28 30 31 32
Total Costs $67,910 $73,755 $80,102 $82,510 $84,990
Each 20 of ADA 2,169 2,169 2,169 2,169 2,169
Customer Cost per Unit $31.30 $34.00 $36.92 $38.03 $39.18 Industrial (Sconza)
Direct to Industrial 1,029 1,117 1,213 1,249 1,287
Total Costs $1,029 $1,117 $1,213 $1,249 $1,287
Number of Bills 12 12 12 12 12
Customer Cost per Unit $85.73 $93.09 $101.08 $104.11 $107.22 345
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Table B-4
Design of Commercial and Industrial Variable Charges
Volume Charge FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Commercial Std Strength (C1)
Flow $221,745 $240,801 $261,495 $269,324 $277,387
BOD $93,768 $101,983 $110,917 $114,416 $118,024
SS $89,154 $96,832 $105,172 $108,340 $111,603
Total Volume Costs $404,668 $439,617 $477,584 $492,080 $507,015 Volume 125,989 125,989 125,989 125,989 125,989
Volume Cost per Unit $3.21 $3.49 $3.79 $3.91 $4.02
Commercial High Strength (C2)
Flow $55,134 $59,872 $65,018 $66,964 $68,969
BOD 78,203 85,054 92,505 95,423 98,433
SS 63,733 69,222 75,183 77,448 79,781
Total Volume Costs $197,070 $214,149 $232,706 $239,835 $247,183 Volume 26,369 26,369 26,369 26,369 26,369
Volume Cost per Unit $7.47 $8.12 $8.82 $9.10 $9.37
Industrial (Sconza)
Capacity/Customer not recovered in fixed charge $18,869 $20,491 $22,252 $22,918 $23,604 Flow 28,863 31,343 34,037 35,056 36,105
Direct to Industrial (less fixed revenue) 8,641 9,424 10,277 10,630 10,995 Total Volume Costs $56,373 $61,258 $66,565 $68,603 $70,705 Volume 12,141 12,141 12,141 12,141 12,141
Volume Cost per Unit $4.64 $5.05 $5.48 $5.65 $5.82
Table B-5
Design of Industrial (Sconza) Strength Charges
Strength Charge FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Extra Strength Industrial (Sconza) Charges
BOD Costs $517,994 $563,374 $612,725 $632,055 $651,989
BOD (lbs) 671,252 671,252 671,252 671,252 671,252
BOD Unit Cost ($/lb) $0.7717 $0.8393 $0.9128 $0.9416 $0.9713 SS $11,604 $12,604 $13,689 $14,102 $14,526
SS (lbs) 15,816 15,816 15,816 15,816 15,816
SS Unit Cost ($/lb) $0.7337 $0.7969 $0.8655 $0.8916 $0.9185 346
Proposition 218 Notification ATTACHMENT C
NOTICE TO PROPERTY OWNERS OF PUBLIC
HEARING ON PROPOSED INCREASE TO WATER RATES
Hearing Date: _____________, 2026
Time: At or after 6:30 PM
Location: City of Oakdale Council Chambers
277 N. 2nd Ave, Oakdale, CA 95361
Why Are You Receiving This Notice?
This notice is being furnished to you by the City of Oakdale (City) pursuant to the California Constitution Article XIIID (also known as “Proposition 218”). Under Proposition 218, the City is required to notify property owners of proposed changes to property-related fees such as water service. This letter serves as notice that the City will hold a public hearing on __________, 2026, to consider changes to its current water rates.
Why Is The Rate Change Required?
The City recently completed an analysis of the capital project requirements of the water system. The utility requires extensive investment, primarily in the replacement and repair of aging pipes and other equipment, in order to maintain a safe and reliable system. These replacements will be funded primarily with water rate revenues, financial reserves, and fees paid by new development connecting to the system.
What Do Water Rates Fund?
The City provides water service to over _______ customers (residential and commercial) within the city limits. The water system is an enterprise fund and must be financially self-sufficient. Monthly rates paid by users of the systems are the primary source of revenue. All revenue generated from your water bill is used to maintain and operate the water system; it is not used for other general government purposes. These revenues must meet costs such as purchasing raw water, electricity, chemicals, maintenance, and salaries and benefits for utility staff. Additionally, revenue generated from these rates is used to fund the replacement of water system assets identified in the City’s capital improvement program to rebuild aging components of the system.
Proposed Water Rates
The proposed rates would maintain the uniform rate per unit of water used (1 Unit = 748 gallons or One Hundred Cubic Feet “HCF”) for City customers. All users will pay ascending charges by meter size installed at the customer’s premises. The proposed rates are structured to meet the increasing costs of operations, maintenance, and infrastructure. The proposed rates would go into effect July 16, 2026. The subsequent year rate increases are stated in the table on the following page.
Impact on Your Bill
For a typical single family home that uses 15 hundred cubic feet (HCF) of water per month, the water portion of your bill would increase from $47.94 per month currently to $49.61 per month under the new rates for July 16, 2026. Lower users of water and users who conserve water from their current levels will see smaller increases.
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HOW TO PROTEST THE PROPOSED RATES
The following persons may submit a written protest against the Proposed Water and Wastewater Rate Increase to the City Clerk before the close of the Public Hearing. • An owner(s) of property (parcel(s)) (“owner of record”) receiving water service from the Oakdale Water or Wastewater Systems. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain, or be accompanied by, written evidence that such person signing the protest is the owner of the parcel(s) receiving water service;
• “Customer of record” (Tenant(s)) whose name appears on the City records as the customer of record for the corresponding parcel receiving water service from the City of Oakdale.
A valid written protest must include:
1. A statement that it is a protest against the proposed water rate increase;
2. The name of the record owner or customer of record;
3. The identity of the affected parcel by assessor’s parcel number or service address;
4. An original signature (not photocopy, email, or fax copy) of the record owner or customer of record of the identified parcel; AND
5. The date the written protest is signed.
One written protest per parcel shall be counted in calculating a majority protest. Written protests will not be accepted by email or by fax. Verbal protests will not be counted in determining the existence of a majority protest.
Current and Proposed Water Rates
Current July 16, July 16, July 16, July 16, July 16,
Rate 2026 2027 2028 2029 2030
Meter Size Fixed Charge ($ per month)
5/8 thru 1 inch $15.69 $16.16 $16.84 $17.55 $18.29 $19.06 1-1/2 inch $16.65 $17.43 $18.17 $18.94 $19.74 $20.57
2 inch $19.28 $20.94 $21.83 $22.76 $23.72 $24.73
3 inch $38.66 $46.74 $48.79 $50.88 $53.06 $55.33
4 inch $45.84 $56.30 $58.78 $61.29 $63.92 $66.67
Fireline Size Fixed Charge ($ per month)
2 inch n/a $4.40 $4.60 $4.81 $5.03 $5.26
3 inch n/a $12.79 $13.37 $13.98 $14.61 $15.27
4 inch n/a $27.26 $28.50 $29.79 $31.14 $32.55
6 inch n/a $79.18 $82.77 $86.53 $90.45 $94.55
8 inch n/a $168.74 $176.39 $184.39 $192.75 $201.50
10 inch n/a $303.46 $317.22 $331.60 $346.63 $362.36
Variable Charge ($ per HCF)
All Customers $2.15 $2.23 $2.33 $2.44 $2.55 $2.66
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Written protests regarding the water rate increase may be delivered to the City of Oakdale Finance Department located at 285 N. 3rd Ave, placed in the City’s payment drop-box located in the parking lot of the City of Oakdale Finance Department, or mailed to:
City of Oakdale, 285 N. 3rd Ave, Oakdale, CA 95361
or in person at the public hearing on the date and time specified above, until the close of the public hearing. No postmarks will be accepted; therefore, any written protest not actually received by the close of the Public Hearing, whether or not mailed prior to the Public Hearing, will not be counted.
Protests submitted by email will not be accepted.
A representative may sign the written protest on behalf of an owner of record or a customer of record provided the representative attaches to the written protest, written documentation/authorization, with original signature, to act in such capacity. Any interested party or their representative may submit comments via email to [email protected] by 9:00 a.m. on the day of the hearing for inclusion in the record of the hearing. All comments received by email will be transmitted to the City Council or read at the hearing.
If valid written protests are presented by a majority of owners of record and/or customers of record of parcels receiving water service within the City of Oakdale’s Water System, then the City will not adjust/increase the water rates. Only one protest per parcel will be counted in determining whether or not a majority protest exists.
How do I preserve my ability to judicially challenge the proposed water rates? Pursuant to California Government Code Sections 53759.1 and 53759.2, a person or entity will be prohibited from bringing a judicial action or proceeding alleging that the proposed water rates do not comply with Article XIII D of the California Constitution (Proposition 218) unless that person or entity has timely submitted a substantive Written Objection to the proposed water rates. This is known as an Exhaustion of Administrative Remedies requirement and is separate from the Proposition 218 majority protest against the amounts of the rates through the process described above.
To exhaust your administrative remedies, your Written Objection must be submitted to the City not later than 5:00 pm on _____________, 2026 and include the specific grounds for alleging that the proposed rates do not comply with Article XIII D of the California Constitution. The City will respond to each timely Written Objection that raises a substantive issue.
Written Objections may be mailed to the City of Oakdale at 285 N. 3rd Ave, Oakdale, CA 95361, emailed to the City at [email protected] , or hand delivered to the City Finance Office at 285 N. 3rd Ave. However, delivered, Written Objections must be received by the City by 5:00 pm on _______________, 2026. Note that this deadline for submitting a Written Objection is earlier than the deadline for submitting a Written Protest to provide the City with time to respond. A failure to file a timely objection in writing bars any right to challenge the proposed rates through a legal proceeding.
The City will respond in writing to all Written Objections received by the deadline and the City Council will consider timely objections and responses during the public hearing.
Exhaustion of Administrative Remedies - Written Objections 349
A Written Objection that also complies with the requirements for a Written Protest (see “How to Protest The Proposed Water Rate Increases” above) will also be counted as a Written Protest in determining whether a majority protest exists against the proposed water rate increases.
If the City Council adopts the proposed water rates, then pursuant to California Government Code Section 53759, there will be a 120-day statute of limitations for judicially challenging the water rates that runs from the date the City adopts a resolution approving the water rates.
AVAILABILITY OF STUDIES, REPORTS, AND INFORMATION
Additional information and analysis on the proposed water rates is available in the Water and Wastewater Rate Study, April 2026. This report is available for review at the City’s Finance Department located at 285 N. 3rd Avenue, Oakdale or the City Clerk’s Office at 280 N. 3rd Avenue and on the City’s website at www.oakdalegov.com.
Not later than __________, 2026 the agenda, staff report, and proposed resolutions will also be available on the City’s website. In addition, customers may contact the Finance Department or the City Manager’s Office at (209) 845-3571 during business hours for further information about the proposed rates.
Questions? Please call the City of Oakdale Finance Department or the City Manager’s Office at (209) 845-3571.
Statute of Limitations for Challenging The Proposed Water Rates 350
PUBLIC HEARING
A Public Hearing for the Proposed Water Rate Increases will be held on:
_______, 2026 at 6:30 PM
Oakdale City Council Chambers
277 N. 2nd Ave, Oakdale
At the public hearing the City of Oakdale City Council will consider all public comment in support and in opposition of the Water Rate Increase, any substantive objections submitted prior to the deadline, and whether or not a Majority Protest exists. If approved, the Water Rate Increase would become effective July 16, 2026. A legal challenge, if any, will be limited to the issues raised at the public hearing.
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Proposition 218 Notification ATTACHMENT D
NOTICE TO PROPERTY OWNERS OF PUBLIC
HEARING ON PROPOSED INCREASE TO WASTEWATER RATES
Hearing Date: _____________, 2026
Time: At or after 6:30 PM
Location: City of Oakdale Council Chambers
277 N. 2nd Ave, Oakdale, CA 95361
Why Are You Receiving This Notice?
This notice is being furnished to you by the City of Oakdale (City) pursuant to the California Constitution Article XIIID (also known as “Proposition 218”). Under Proposition 218, the City is required to notify property owners of proposed changes to property-related fees such as wastewater service. This letter serves as notice that the City will hold a public hearing on __________, 2026, to consider changes to its current wastewater rates.
Why Is The Rate Change Required?
The City recently completed an analysis of the capital project requirements of the wastewater system.
The utility requires extensive investment, primarily in the replacement and repair of aging pipes and other equipment, in order to maintain a safe and reliable system. These replacements will be funded primarily with wastewater rate revenues, financial reserves, and fees paid by new development connecting to the system.
What Do Wastewater Rates Fund?
The City provides wastewater service to over 8,250 customers (residential and commercial) within the city limits. The wastewater system is an enterprise fund and must be financially self-sufficient.
Monthly rates paid by users of the systems are the primary source of revenue. All revenue generated from your wastewater bill is used to maintain and operate the wastewater system; it is not used for other general government purposes. These revenues must meet costs such as wastewater treatment, electricity, chemicals, maintenance, and salaries and benefits for utility staff. Additionally, revenue generated from these rates is used to pay to fund replacement identified in the City’s capital improvement program to rebuild aging components and to pay off existing debt of the system.
Proposed Wastewater Rates
The proposed rates would maintain a fixed charge per month by all users of the system. Commercial and industrial also pay a variable charge with one industrial customer also paying for wastewater strength. The proposed rates are structured to meet the increasing costs of operations, maintenance, and infrastructure. The proposed rates would go into effect July 16, 2026. The subsequent year rate increases are stated in the table on the following page.
Impact on Your Bill
For a typical single family home, the wastewater portion of your bill would increase from $61.27 per month currently to $63.10 per month under the new rates for July 16, 2026. Other customer classification types will see different increases or decreases in their monthly bill for the July 16, 2026 wastewater rates.
352
HOW TO PROTEST THE PROPOSED RATES
The following persons may submit a written protest against the Proposed Wastewater Rate Increase to the City Clerk before the close of the Public Hearing. • An owner(s) of property (parcel(s)) (“owner of record”) receiving wastewater service from the Oakdale Wastewater Systems. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain, or be accompanied by, written evidence that such person signing the protest is the owner of the parcel(s) receiving wastewater service;
• “Customer of record” (Tenant(s)) whose name appears on the City records as the customer of record for the corresponding parcel receiving wastewater service from the City of Oakdale.
A valid written protest must include:
1. A statement that it is a protest against the proposed wastewater rate increase;
2. The name of the record owner or customer of record;
Current and Proposed Wastewater Rates
[1] For each 20 ADA.
Current July 1, July 1, July 1, July 1, July 1,
Classification Rate 2026 2027 2028 2029 2030
Fixed Charge ($ per month)
Residential $61.27 $63.10 $68.53 $74.43 $76.67 $78.97
Multifamily Residential 61.27 29.86 32.43 35.22 36.28 37.37 Commercial Std Strength (C1) 38.10 85.73 93.09 101.08 104.11 107.22 Commercial High Strength (C2) 38.10 85.73 93.09 101.08 104.11 107.22 Church (CH) 38.10 63.10 68.53 74.43 76.67 78.97
Industrial (I) 28.64 85.73 93.09 101.08 104.11 107.22
Oakdale Unified Schools [1] 38.10 31.30 34.00 36.92 38.03 39.18 Industrial (Sconza) $28.64 $85.73 $93.09 $101.08 $104.11 $107.22 Variable Charge ($ per Ccf)
Commercial Std Strength (C1) $2.65 $3.21 $3.49 $3.79 $3.91 $4.02 Commercial High Strength (C2) $4.23 $7.47 $8.12 $8.82 $9.10 $9.37 Industrial (Sconza) n/a $4.64 $5.05 $5.48 $5.65 $5.82
Sconza Strength Charges ($ per lb)
BOD ($/lb) n/a $0.7717 $0.8393 $0.9128 $0.9416 $0.9713
SS ($/lb) n/a $0.7337 $0.7969 $0.8655 $0.8916 $0.9185
Sconza BOD Range in mg/l
From To
200 300 $1.86
301 700 $1.97
701 1,000 $3.31
1,001 1,500 $3.52
1,501 2,000 $3.82
2,001 2,500 $4.46
2,501 3,000 $4.85
Over 3,000 $6.44
353
3. The identity of the affected parcel by assessor’s parcel number or service address;
4. An original signature (not photocopy, email, or fax copy) of the record owner or customer of record of the identified parcel; AND
5. The date the written protest is signed.
One written protest per parcel shall be counted in calculating a majority protest. Written protests will not be accepted by email or by fax. Verbal protests will not be counted in determining the existence of a majority protest.
Written protests regarding the wastewater rate increase may be delivered to the City of Oakdale Finance Department Office located at 285 N. 3rd Ave, placed in the City’s payment drop-box located in front of the City of Oakdale Finance Department Office, or mailed to:
City of Oakdale, 285 N. 3rd Ave, Oakdale, CA 95361
or in person at the public hearing on the date and time specified above, until the close of the public hearing. No postmarks will be accepted; therefore, any written protest not actually received by the close of the Public Hearing, whether or not mailed prior to the Public Hearing, will not be counted.
Protests submitted by email will not be accepted.
A representative may sign the written protest on behalf of an owner of record or a customer of record provided the representative attaches to the written protest, written documentation/authorization, with original signature, to act in such capacity. Any interested party or their representative may submit comments via email to [email protected] by 9:00 a.m. on the day of the hearing for inclusion in the record of the hearing. All comments received by email will be transmitted to the City Council or read at the hearing.
If valid written protests are presented by a majority of owners of record and/or customers of record of parcels receiving wastewater service within the City of Oakdale Wastewater System, then the City will not adjust/increase the wastewater rates. Only one protest per parcel will be counted in determining whether or not a majority protest exists.
How do I preserve my ability to judicially challenge the proposed wastewater rates? Pursuant to California Government Code Sections 53759.1 and 53759.2, a person or entity will be prohibited from bringing a judicial action or proceeding alleging that the proposed wastewater rates do not comply with Article XIII D of the California Constitution (Proposition 218) unless that person or entity has timely submitted a substantive Written Objection to the proposed wastewater rates. This is known as an Exhaustion of Administrative Remedies requirement and is separate from the Proposition 218 majority protest against the amounts of the rates through the process described above.
To exhaust your administrative remedies, your Written Objection must be submitted to the City not later than 5:00 pm on _____________, 2026 and include the specific grounds for alleging that the proposed rates do not comply with Article XIII D of the California Constitution. The City will respond to each timely Written Objection that raises a substantive issue.
Written Objections may be mailed to the City of Oakdale at 285 N. 3rd Ave, Oakdale, CA 95361, emailed to the City at [email protected] , or hand delivered to the City Finance Office at 285 Exhaustion of Administrative Remedies - Written Objections 354
N. 3rd Ave. However, delivered, Written Objections must be received by the City by 5:00 pm on _______________, 2026. Note that this deadline for submitting a Written Objection is earlier than the deadline for submitting a Written Protest to provide the City with time to respond. A failure to file a timely objection in writing bars any right to challenge the proposed rates through a legal proceeding.
The City will respond in writing to all Written Objections received by the deadline and the City Council will consider timely objections and responses during the public hearing.
A Written Objection that also complies with the requirements for a Written Protest (see “How to Protest The Proposed Wastewater Rate Increases” above) will also be counted as a Written Protest in determining whether a majority protest exists against the proposed wastewater rate increases.
If the City Council adopts the proposed wastewater rates, then pursuant to California Government Code Section 53759, there will be a 120-day statute of limitations for judicially challenging the wastewater rates that runs from the date the City adopts a resolution approving the wastewater and wastewater rates.
AVAILABILITY OF STUDIES, REPORTS, AND INFORMATION
Additional information and analysis on the proposed wastewater rates is available in the Water and Wastewater Rate Study, April 2026. This report is available for review at the City’s Finance Department located at 285 N. 3rd Ave, Oakdale and on the City’s website at www.oakdalegov.com.
Not later than __________, 2026 the agenda, staff report, and proposed resolutions will also be available on the City’s website. In addition, customers may contact the Finance Department or City Manager’s Office at (209) 845-3571 during business hours for further information about the proposed rates.
Questions? Please call the Finance Department or the City Manager’s Office at (209) 845-3571.
Statute of Limitations for Challenging The Proposed Wastewater Rates 355
PUBLIC HEARING
A Public Hearing for the Proposed Wastewater Rate Increases will be held on:
_______, 2026 at 6:30 PM
Oakdale City Council Chambers
277 N. 2nd Ave, Oakdale
At the public hearing the City of Oakdale City Council will consider all public comment in support and in opposition of the Wastewater Rate Increase, any substantive objections submitted prior to the deadline, and whether or not a Majority Protest exists. If approved, the Wastewater Rate Increase would become effective July 16, 2026. A legal challenge, if any, will be limited to the issues raised at the public hearing.
356
CITY OF OAKDALE
CITY COUNCIL STAFF REPORT
Date: Monday, April 6, 2026
To: Mayor Bairos and Members of the City Council
From: Carina McDonald, Capital Projects Manager
Reviewed by: Jeff Gravel, Director of Public Services
Subject: Consider a Resolution Approving the Execution of the Measure L Master Funding Agreement between the Stanislaus Council of Governments and the City of Oakdale
BACKGROUND
On November 8, 2016, the voters of Stanislaus County approved Measure L, thereby authorizing STANCOG to administer the proceeds from the one-half cent transaction and use tax (“Measure L”). The duration of the Measure L sales tax is 25 years from the initial year of collection, which began April 1, 2017. The tax proceeds will be used to pay for the programs and projects outlined in the Stanislaus Council of Governments’ Expenditure Plan.
The Measure L Master Funding Agreement delineates the requirements for Measure L funds allocated to jurisdictions within Stanislaus County for local streets and roads, traffic management, and bike and pedestrian improvements. The last Measure L Master Funding Agreement was approved by the Oakdale City Council on May 18, 2020. This agreement has expired, and a new agreement needs to be approved. The new Measure L Master Funding Agreement is for a five-year term running from July 1, 2025, to June 30, 2030.
DISCUSSION
Major Points of the Agreement:
• The agreement authorizes StanCOG to allocate the 65% Local Control Funds derived from Measure L receipts to the various agencies within Stanislaus County.
The breakdown of the 65% Local Control Funds by program is as follows: 50% to Local Streets and Roads; 10% to Traffic Management, and 5% to Bike and Pedestrian Improvements.
• Each jurisdiction must provide an annual adopted Capital Improvement program and annual budget identifying Measure L projects scheduled for project delivery. • Annual Maintenance of Effort (MOE) calculations demonstrating the City’s compliance with the MOE. The MOE calculations are based on the prior three fiscal years’ spending on transportation purposes as reported to the State Controller’s Office. The MOE calculation will need to be verified by an annual independent audit, conducted at the City’s sole cost and expense. • If the City fails to comply with one or more of the requirements set forth in the Agreement, StanCOG may withhold payment of Measure L funds until full compliance is achieved.
AGENDA ITEM 11.2
357
CITY OF OAKDALE
City Council Staff Report (Continued)
SUBJECT: Consider a Resolution Approving the Execution of Measure L Master Funding Agreement 2025-2030 MEETING DATE: April 6, 2026
• The StanCOG Policy Board has adopted Measure L Policies and Procedures, which contain additional fund usage and eligibility guidelines that the City • acknowledges and agrees that it will comply with the provisions of the Measure L Policies and Procedures.
• StanCOG will provide a quarterly report to its Board of Directors, which shall include all Measure L revenues distributed to each City Recipient. • The City will set up and maintain an appropriate system of accounts to report on Measure L Funds revenues received and spent.
• The City will submit monthly revenue and expenditure reports, which identify the Measure L revenue received and expended.
• Direct costs associated with the delivery of programs and projects funded by Measure L, including direct staff costs and consultant costs, are eligible uses of Measure L Funds.
FISCAL IMPACT
The City of Oakdale’s percentage allocation identified in the adopted Measure L Expenditure Plan is 3.86%.
Funds controlled by the local jurisdictions (Local Controlled Funds) as described in the voter-approved Measure L Expenditure Plan and as summarized below by jurisdiction for each of the three different programs covered under Local Control Funds (Local Streets and Roads, Traffic Management, and Bike and Pedestrian Improvements).
The Local Streets and Roads funds must be used to augment current transportation spending and cannot be used to replace other expenditures.
RECOMMENDATION
358
CITY OF OAKDALE
City Council Staff Report (Continued)
SUBJECT: Consider a Resolution Approving the Execution of Measure L Master Funding Agreement 2025-2030 MEETING DATE: April 6, 2026
Staff recommends the city council consider a resolution approving the execution of the Measure L Master Funding agreement between the Stanislaus Council of Governments and the City of Oakdale for 2025-2030.
ATTACHMENTS
Attachment A: Draft City Council Resolution 2026-__
Attachment B: Measure L Master Funding Agreement 2025-2030 359
IN THE CITY COUNCIL
OF THE CITY OF OAKDALE
STATE OF CALIFORNIA
CITY COUNCIL RESOLUTION 2026-___
A RESOLUTION OF THE CITY OF OAKDALE CITY COUNCIL APPROVING THE
EXECUTION OF THE MEASURE L MASTER FUNDING AGREEMENT BETWEEN THE
STANISLAUS COUNCIL OF GOVERNMENTS AND THE CITY OF OAKDALE FOR 2025-2030
WHEREAS, the Stanislaus Council of Governments (StanCOG) is a Regional Transportation Planning Agency and a Metropolitan Planning Organization (MPO), pursuant to State and Federal Designation; and,
WHEREAS, StanCOG is the Local Transportation Authority (“Authority”) as designated by the Stanislaus County Board of Supervisors, pursuant to the Local Transportation Authority and Improvement Act set forth at California Public Utilities Code Section 180000 et seq; and,
WHEREAS, on November 8, 2016, the voters of Stanislaus County approved Measure L, thereby authorizing StanCOG to administer the proceeds from the one-half cent transaction and use tax (“Measure L”); and,
WHEREAS, on May 18, 2020, the Oakdale City Council approved the 2020 Measure L Master Funding Agreement that expires on June 30, 2025; and, WHEREAS, a new agreement is needed, and it is proposed that the City Council approve the 2025 Measure L Master Funding Agreement that has a term beginning July 1, 2025, and ending on June 30, 2030; and,
WHEREAS, the 2020 Measure L Master Funding agreement delineates the requirements of the Measure L funds that are allocated to the jurisdictions within Stanislaus County for local streets and roads, traffic management, and bike and pedestrian improvements, and transit provider funds for transit services, as authorized by the Measure L Expenditure Plan; and,
WHEREAS, each of the member agencies of StanCOG (Stanislaus County and cities of Ceres, Hughson, Modesto, Newman, Oakdale, Patterson, Riverbank, Turlock, and Waterford) will be required to enter into the 2025 Measure L Master Funding Agreement in order to continue receiving Measure L fund disbursements. 360
CITY OF OAKDALE
City Council Resolution 2026-XX
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Oakdale does hereby approve the execution of the Measure L Master Funding agreement between the Stanislaus Council of Governments and the City of Oakdale for 2025-2030.
THE FOREGOING RESOLUTION IS HEREBY ADOPTED THIS 6th DAY OF APRIL 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAINED: COUNCIL MEMBERS:
SIGNED:
Cherilyn Bairos, Mayor
ATTEST:
Patrick Mondragon, City Clerk
361
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Docusign Envelope ID: AD9A0602-8E1F-85E5-8302-9DE13E0E5E84 3/10/2026
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CITY OF OAKDALE
CITY COUNCIL STAFF REPORT
Date: Monday, April 6, 2026
To: Mayor Bairos and Members of the City Council
From: Carina McDonald, Capital Projects Manager
Reviewed by: Jeff Gravel, Public Services Director
Subject: Consider a Resolution Authorizing the City Manager to Execute an Agreement with American Pavement Systems, Inc. in the Amount of $458,500.00 for the 2026 Area 8 Slurry Seal Project, and Authorize a 5% Construction Contingency in the Amount of $22,925.00 and Authorize a Construction Engineering Contingency in the Amount of $36,000.00 for a Total Project Budget of $517,425.00 to be Funded by SB1 Road Maintenance Fund 216.
BACKGROUND
The 2026 Area 8 Slurry Seal Project is part of a multi-year slurry seal pavement maintenance plan primarily funded by SB1, Fund 216.
The limits of Area 8 are primarily within the Bridle Ridge neighborhood, east of Willowood, including parts of Greger Street to S. Yosemite Avenue.
This project includes 786,500 sq ft of Type II Slurry Seal, pneumatic rolling in 20 strategic locations, and re-striping of the roads.
Greger Street includes 215,500 Sq feet of Rubberized Cape Seal.
The intent of this work is to extend the life of the streets by an additional five to seven years. The residential neighborhood streets will receive a Type II slurry seal, which is appropriate for low-volume roadways in fair condition requiring surface preservation.
AGENDA ITEM 11.3
373
CITY OF OAKDALE
City Council Staff Report (Continued)
SUBJECT: Slurry Seal Area 8
MEETING DATE: April 6, 2026
Greger Street will receive a rubberized cape seal due to its higher traffic volumes and greater loading demands. The cape seal provides a thicker, more durable treatment with improved crack resistance and longer service life, making it the most cost-effective option for this corridor.
DISCUSSION
Bids were opened on February 12, 2026. The bids were as follows:
CONTRACTOR BID
American Pavement Systems $458,500
Dryco Construction Inc $483,000
VSS International Inc $573,211
American Asphalt Repair $633,000
Dolittle Construction $690.000
FISCAL IMPACT
The low bidder is American Pavement Systems, Inc., at $458,500. Staff is also recommending the inclusion of a 5% Construction Contingency of $22,925.00 and a Construction Engineering Contingency of $36,000.00, for a total project cost of $517,425.00. The project is funded by the SB1 Road Maintenance Fund 216. SB1 funds can only be used for street rehabilitation and maintenance, as preprogrammed and approved by the City Council. Approval was obtained on June 16, 2025 – Resolution 2025-054.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an agreement with American Pavement Systems, Inc. in the amount of $458,500.00 for the 2026 Area 8 Slurry Seal Project, and authorize a 5% contingency in the amount of $22,925.00 and authorize a Construction engineering contingency in the amount of $36,000.00 for a total project budget of $517,425.00 to be funded by SB1 Road Maintenance Fund 216.
ATTACHMENTS
Attachment A: Draft City Council Resolution 2026
Attachment B: Construction Agreement
374
IN THE CITY COUNCIL
OF THE CITY OF OAKDALE
STATE OF CALIFORNIA
CITY COUNCIL RESOLUTION 2026-___
A RESOLUTION OF THE CITY OF OAKDALE CITY COUNCIL A RESOLUTION OF
THE CITY OF OAKDALE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH AMERICAN PAVEMENT SYSTEMS, INC. IN THE AMOUNT OF $458,500.00 FOR THE 2026 AREA 8 SLURRY SEAL PROJECT, AND AUTHORIZE A 5% CONSTRUCTION CONTINGENCY IN THE AMOUNT OF $22,925.00 AND AUTHORIZE A CONSTRUCTION ENGINEERING CONTINGENCY IN THE AMOUNT OF $36,000.00 FOR A TOTAL PROJECT BUDGET OF $517,425.00 TO BE FUNDED BY SB1 ROAD MAINTENANCE FUND 216.
WHEREAS, the 2026 Area 8 Slurry Seal Project is part of a multi-year slurry seal pavement maintenance plan that Staff developed, consisting primarily of SB1 funding; and,
WHEREAS, the limits of Area 8 are primarily within the Bridle Ridge neighborhood, east of Willowood, including parts of Greger Street to S. Yosemite Avenue; and, WHEREAS, bids were opened on February 12, 2026, and the low bidder was American Pavement Systems, Inc. in the amount of $458,500.00; and, WHEREAS, on June 16, 2025, the City Council authorized SB1 funds to be used for this project per the Road Repair and Accountability Act of 2017 (SB1) (Chapter 5, Statutes of 2017) via Resolution 2025-054; and,
WHEREAS, staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an agreement with American Pavement Systems, Inc. in the amount of $458,500.00 for the 2026 Area 8 Slurry Seal Project and authorize a 5% contingency in the amount of $22,925.00 and authorize a Construction engineering contingency in the amount of $36,000.00 for a total project budget of $517,425.00 to be funded by SB1 Road Maintenance Fund 216; and,
NOW, THEREFORE, BE IT RESOLVED, that the City Council in the City of Oakdale does hereby adopt a resolution authorizing the City Manager to execute an agreement with American Pavement Systems, Inc. in the amount of $458,500.00 for the 2026 Area 8 Slurry Seal Project, authorizing a 5% contingency in the amount of $22,925.00 and authorizing a Construction engineering contingency in the amount of $36,000 for a total project budget of $517,425.00 to be funded by SB1 Road Maintenance Fund 216. 375
CITY OF OAKDALE
City Council Resolution 2026-XX
THE FOREGOING RESOLUTION IS HEREBY ADOPTED THIS 6th DAY OF APRIL, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAINED: COUNCIL MEMBERS:
SIGNED:
Cherilyn Bairos, Mayor
ATTEST:
Patrick Mondragon, City Clerk
376
C-1
CONSTRUCTION AGREEMENT
THIS AGREEMENT made the 6th day of April , 20 26
by and between THE CITY OF OAKDALE, A Municipal Corporation, hereinafter designated as the owner, and American Pavement Systems, Inc. hereinafter designated as the Contractor.
WITNESSETH: The Contractor agrees to provide all required materials, labor transportation, equipment, facilities, services, incidentals necessary for construction of the Slurry Seal Area 8 CP2517 all in strict conformity with the Drawings and Contract Documents prepared by the Owner.
ARTICLE II: CONSTRUCTION DOCUMENTS: The Construction Documents consisting of the Invitation to Bidders, Proposal, Construction Agreement, the Specifications, all as listed under the Table of Contents, and the Drawings, together with all modifications and addenda included in these documents before their execution, all of which Construction Documents are made a part hereof.
ARTICLE III: CONTRACT TIME: It is hereby understood and agreed that the work under this Contract shall be completed within the following times for the work set forth in the Bid Proposal.
A. All work as set forth under Contract Bid Items within 40 calendar days ARTICLE IV: DAMAGES FOR DELAY: In case of failure on the part of the Contractor to complete the work within the time stipulated, plus any duly authorized extension of time, the parties hereby agree and recite that Owner's actual damages in the sum of $ 1,000.00 for each calendar days delay. Time is of the essence in the completion of this contract.
ARTICLE V: CONTRACT SUM: The Owner shall pay or cause to have paid to the Contractor, for the performance of the Contract, subject to additions and deductions described in Exhibit A hereof shall not exceed Four hundred fifty eight thousand and five hundred dollars and 00/100 ($458,500.00). In lawful money of the United States and shall be paid in payments in accordance with and subject to the provisions embodied in the Documents made a part of this contract. The contract sum as herein stipulated shall include all applicable taxes.
ARTICLE VI: CONTRACT ALTERATIONS: Any alteration or alterations made in the Drawings and Specifications which are a part of this Agreement, or in any provision of this Agreement, shall not operate to release any surety from liability on any bond required hereunder, and the consent to make such alterations is hereby given, and any surety on said bonds hereby waives the provisions of Section 2819 of the Civil Code.
ARTICLE VII: PRECEDENCE OF CONTRACT ELEMENTS: All parts of this Construction Agreement (also known as Contract) shall be construed with each other to be consistent wherever possible, but in the event any conflict shall occur with any of the Contract Documents, then the order of precedence shall be as follows:
A. This Construction Agreement
B. Addenda
377
C-2
C. General & Supplementary Conditions
D. Technical Specifications
E. Improvement Plans
In this regard, if there is a conflict between the plans and the technical portions of the Specifications, quality shall be governed by the Specifications. In the event of conflict within the technical portions of the Specifications, a higher quality shall govern. If there is a conflict between quantities, the higher quantity shall be provided.
ARTICLE VIII: BONDS: Contractor shall furnish and deliver to Owner for its approval upon the execution of this Construction Agreement, two good and sufficient bonds issued by a Surety Company authorized to do business in the State of California and shall maintain such bonds during the entire life of the Construction Agreement. The Bonds shall be a Labor and Material Payment Bond and a Faithful Performance Bond in the sum of not less than 100 percent each of the Contract sum. No prepayment or delay in payment, change extension of time, alteration, or addition to the terms of the contract or to the work to be performed there under or the specifications accompany the same and no forbearance on the part of the Owner shall in any way affect the obligations of the surety on the bonds, and the extension of time, alteration, or addition to the terms of the Contract or to the work or to the specifications and forbearance and said surety does hereby waive the provisions of Section 2819 and 2845 of the California Civil Code.
ARTICLE XI: GENERAL INSURANCE: Contractor shall, at its expense, maintain in effect at all times during the duration of this Agreement not less than the following coverage and limits of insurances:
A. General Liability. Contractor shall maintain commercial general liability insurance with coverage as least as broad as Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence, four million dollars ($4,000,000) general aggregate, and two million dollars ($2,000,000) products damage and completed operations aggregate for bodily injury, personal injury and property damage. General liability polices shall provide or be endorsed using Insurance Services Office forms CG 20 10 to provide that City and its officers, officials, employees, and agents shall be additional insureds (‘the Additional Insureds”) under such policies.
An endorsement providing completed operations to the Additional Insureds, ISO form CG 20 37, is also required. For construction contracts, an endorsement providing completed operations to the Additional Insureds to the policy, shall be endorsed on each commercial general liability policy issued to Contractor for ten years after completion of the work.
B. Automobile Liability. Contractor shall maintain automobile liability insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than two million dollars ($2,000,000) combined single limit for each accident.
C. Workers Compensation. Contractor shall maintain Workers’ Compensation Insurance (statutory benefits) and Employer’s Liability Insurance (with limits of at least one million dollars ($1,000,000)). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers (unless otherwise approved by the City).
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D. Pollution Coverage: Contractor shall provide a Contractors Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than two million dollars ($2,000,000) per claim. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.
E. Umbrella or Excess Liability: Contractor shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than four million dollars ($4,000,000) that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary liability coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied provides to be uncollectible, in whole or in part for any reason; • Pay on behalf of working as opposed to reimbursement; • Concurrency of effective dates with primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies with no additional restrictions.
F. Professional Liability: Design-build contractors shall maintain professional liability insurance that insures against professional errors and omissions that may be made in performing the Services to be rendered in connection with the Agreement, in the minimum amount of five million dollars ($5,000,000) per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement, and Contractor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
G. Certificates of Insurance. Prior to commencement of any work, Contractor shall provide City with certificates of insurance evidencing that all insurance and/or endorsements required by this Agreement have been obtained and are in full force and effect. Approval of the insurance by City shall not relieve or decrease any liability of Contractor. The certificates and policies shall provide those thirty (30) days’ written notice of any material change, reduction in coverage or cancellation of the insurance policies will be provided to City. In addition, in the event any change is made in the insurance carrier, policies or nature of coverage required under this Agreement, Contractor shall notify City prior to making such changes.
Such insurance shall include a provision for endorsement naming City, its officers, directors, employees and agents as additional insureds with respect to liability arising out of the performance of any work under this Agreement, and providing that such insurance is primary insurance with respect to the interest of City and that any other insurance maintained by City is excess and not contributing insurance with the insurance required hereunder.
H. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an A.M.
Best-assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class IV (or larger), unless otherwise approved by the City.
I. Maintenance of Coverage: Contractor shall procure and maintain, for the duration of the contract, insurance against claims for injuries to persons or damages to property, which may arise from or 379
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in connection with the performance of the Work hereunder by Contractor, his agents, representatives, employees or subconsultants as specified in this contract.
J. Proof of Insurance: Contractor shall provide to City, certificates of insurance and endorsements, as required, as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. For policies using so-called “blanket” or “automatic insurance” “where required by contract” provisions, contractor must provide a copy of the policy language or the “blanket” endorsement. Insurance certificates and endorsements must be approved by City prior to commencement of performance. Current evidence of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
K. City’s Rights of Enforcement: In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary. Any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.
L. Acceptable Insurers: All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an A.M. Best-assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger), unless otherwise approved by the City.
M. Waiver of Subrogation: All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Contractor, or others providing insurance evidence in compliance with these specifications, to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
N. Enforcement of Contract Provisions (non estoppel): Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City, nor does it waive any rights hereunder.
O. Primary and Non-contributory: For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
P. Specifications not Limiting: Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
Q. Severability of Interests: The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
R. Notice of Cancellation: Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with thirty (30) days notice of cancellation (except for nonpayment for which ten (10) days’ notice is required) or nonrenewal of coverage for each required coverage. 380
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S. City’s Right to Revise Specifications: The City reserves the right, at any time during the term of the contract, to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation.
T. Self-insured Retentions: Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
U. Timely Notice of Claims: Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
V. Additional Insurance: Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.
ARTICLE IX: ACCEPTANCE: Final inspection shall be made by the owner upon receipt of written notice from the Contractor stating that the work is substantially completed and ready for such inspection.
The work will be accepted in writing by the Owner when the work is found acceptable under the terms of the Contract and the Contract is fully performed and the work fully completed.
ARTICLE X: FINAL PAYMENT: Final payment shall be made within 35 days after filing the Notice of Completion, provided that the Contract be then fully performed and the work fully completed and duly accepted and also provided that no liens remaining unsatisfied are on file at that time.
The making and acceptance of the Final payment shall constitute a waiver of all claims by the Owner, other than those arising from unsettled liens from defects in materials and workmanship or from faulty work appearing after final payment, and of all claims by the Contractor, except those previously made and still unsettled. No payment or certificate issued to the Contractor shall be considered to be an acceptance of any of the work of the Contract.
ARTICLE XI: INDEMNITY: Contractor shall indemnify, defend and hold harmless City, its officers, employees, agents and volunteers from and against all liability, loss, damage, expense, and cost (including, without limitation, reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor’s negligence, recklessness, or willful misconduct in the performance of work hereunder, or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage caused by the active negligence, sole negligence or willful misconduct of the City. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
ARTICLE XII: ASSIGNMENT: The contract shall not be assigned or sublet as a whole, by either party without the written consent of the other. The Owner and the Contractor for themselves, their heirs, successors, executors, administrators, agents, representatives, and subcontractors do hereby agree to the full performance of the terms, conditions, provisions, and covenants herein contained. 381
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ARTICLE XIII: ATTORNEY'S FEES: If any legal action, including arbitration, is necessary to enforce or interpret the terms of this agreement, the prevailing party shall be entitled to reasonable attorney's fees, which may be set by the Court or the Arbitrator, as the case may be, in the same action, or in a separate action brought for that purpose, in addition to any other relief to which he may be entitled.
IN WITNESS WHEREOF the parties execute this Agreement on the day and year first hereinabove written.
CITY OF OAKDALE CONTRACTOR: American Pavement Systems, Inc.
Jerry Ramar, City Manager Name
Title:
ATTEST:
Patrick Mondragon, City Clerk
APPROVED AS TO FORM:
THOMAS HALLINAN, City Attorney
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CITY OF OAKDALE
CITY COUNCIL STAFF REPORT
Date: Monday, April 6, 2026
To: Mayor Bairos and Members of the City Council
From: Carina McDonald, Capital Projects Manager
Reviewed by: Jeff Gravel, Public Services Director
Subject: Consider a Resolution Authorizing the City Manager to Execute an Agreement with Consolidated Engineering for the G St Bike and Pedestrian Improvements Project in the Amount of $608,384.50 and Authorizing $60,000.00 for Construction Engineering & Inspection Services and $60,838.00 for Contingency for a Total Project Budget of $729,222.50 to be Funded from Surface Transportation Fund 316, Measure L Fund 222, Water Capital Improvement Fund 644 and Sewer Capital Improvement Fund 621
BACKGROUND
On October 6, 2025, the City Council approved the submission of several grant applications (Resolution 2025-096) for bicycle, pedestrian, and roadway improvements.
The City of Oakdale was awarded a federal grant from the Congestion Mitigation and Air Quality Improvement Program, or CMAQ, for the G Street Bike and Pedestrian Improvements Project.
DISCUSSION
East G Street is critical to the City of Oakdale as it provides an alternate corridor to East F Street (SR 108/120). It is also identified in the City’s Accessibility Master Plan as a major east-west bicycle corridor. The City has been adding buffered Class II Bike lanes along this corridor as funds permit. This project will close the final gap and complete the City’s major east-west corridor by repairing existing pavement to make it suitable for new bike lanes. This path will provide connectivity to Oak Valley Hospital, Oakdale High School, Oakdale Library, the Bianchi Community Center, Oakdale Jr High School, Sierra View Elementary, and various parks, schools, and churches. This project is needed to address the four blocks shown below that currently lack sidewalk improvements, forcing students and local residents to walk in the dirt or on the roadway. There will be some water and sewer related correctios due to sidewalk and curbline improvements. This project will construct missing sidewalks and curb returns at these locations to promote safe pedestrian and bicycle travel.
AGENDA ITEM 11.4
384
CITY OF OAKDALE
City Council Staff Report (Continued)
SUBJECT: G St Bike & Pedestrian Improvements Project
MEETING DATE: April 6, 2026
FISCAL IMPACT
Bids were received on February 12, 2026. Bids were submitted as shown below.
Contractor Bid Amount
Consolidated Engineering $608,384.50
Hensley’s Paving $681,570.19
Platinum General Engineering $685,189.50
Central Valley Engineering $685,851.45
United Pavement Maintenance $698,565.59
VSSI $806,211.00
Sinclair General Engineering $822,876.60
Zara Construction $844,579.07
Juarez Brothers General Eng $909,500.00
JPB Designs Inc $1,123,544.90
The engineers' estimate for construction for this project was $793,632.00. The low bidder is Consolidated Engineering with a bid of $608,384.50. $590,462 of this project is grantfunded. The balance serves as the required 12% match for CMAQ grants. This is a budgeted project, and costs will be allocated as follows:
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CITY OF OAKDALE
City Council Staff Report (Continued)
SUBJECT: G St Bike & Pedestrian Improvements Project
MEETING DATE: April 6, 2026
Fund Amount Budgeted
CMAQ Grant Funds $590,462.00
Measure L – Fund 222 $45,000.00
Water Capital Replacement Fund – 644 $34,404.50
Sewer Capital Replacement Fund - 621 $59,356.00
TOTAL $729,222.50
Project Budget
Consolidated Engineering – Construction $608,384.50
Contingency $60,838.00
Engineering & Inspections $60,000.00
TOTAL PROJECT BUDGET $729,222.50
RECOMMENDATION
Staff recommends the City Council adopt a resolution authorizing the City Manager to execute an agreement with Consolidated Engineering for the G St Bike and Pedestrian Improvements Project in the amount of $608,384.50 and Authorizing $60,000.00 for Construction Engineering & Inspection Services and $60,838.00 for Contingency for a Total Project Budget of $729,222.50 to be funded from Surface Transportation Fund 316, Measure L Fund 222, Water Capital Improvement Fund 644 Sewer Capital Improvement Fund 621.
ATTACHMENTS
Attachment A: Draft City Council Resolution 2026-__
Attachment B: Construction Agreement
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IN THE CITY COUNCIL
OF THE CITY OF OAKDALE
STATE OF CALIFORNIA
CITY COUNCIL RESOLUTION 2026-___
A RESOLUTION OF THE CITY OF OAKDALE CITY COUNCIL AUTHORZING THE
CITY MANAGER TO EXECUTE AN AGREEMENT WITH CONSOLIDATED
ENGINEERING FOR THE G ST BIKE & PEDESTRIAN IMPROVEMENTS PROJECT IN THE AMOUNT OF $608,384.50 AND AUTHORIZING $60,000.00 FOR CONSTRUCTION ENGINEERING & INSPECTION SERVICES AND $60,838.00 FOR CONTINGENCY FOR TOTAL PROJECT BUDGET OF $729,222.50 TO BE FUNDED FROM SURFACE TRANSPORTATION FUND 316, MEASURE L FUND 222, WATER CAPITAL IMPROVEMENT FUND 644 AND SEWER CAPITAL IMPROVEMENT FUND 621
WHEREAS, on October 6, 2025, the City Council approved the submission of several grant applications (Resolution 2025-096) for bicycle, pedestrian, and roadway improvements. The City of Oakdale was awarded a federal grant from the Congestion Mitigation and Air Quality Improvement Program, or CMAQ, for the G Street Bike and Pedestrian Improvements Project; and,
WHEREAS, East G Street is critical to the City of Oakdale as it provides an alternate corridor to East F Street (SR 108/120). It is also identified in the City’s Accessibility Master Plan as a major east-west bicycle corridor. The City has been adding buffered Class II Bike lanes along this corridor as funds permit. This project will close the final gap and complete the City’s major east-west corridor by repairing existing pavement to make it suitable for new bike lanes. This path will provide connectivity to Oak Valley Hospital, Oakdale High School, Oakdale Library, the Bianchi Community Center, Oakdale Jr High School, Sierra View Elementary, and various parks, schools, and churches; and, WHEREAS, this project is needed to address the four blocks shown below that currently lack sidewalk improvements, forcing students and local residents to walk in the dirt or on the roadway. This project will construct missing sidewalks and curb returns in these locations to promote safe pedestrian and bicycle paths of travel; and, WHEREAS, Bids were received on February 12, 2026. The engineers' estimate for construction for this project was $793,632.00. The low bidder is Consolidated Engineering with a bid of $608,384.50. $590,462 of this project is grant-funded. The balance serves as the required 12% match for CMAQ grants; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Oakdale does hereby authorize the City Manager to execute an agreement with Consolidated Engineering for the G St Bike and Pedestrian Improvements Project in the amount of $608,384.50 and Authorizing $60,000.00 for Construction Engineering & Inspection Services and $60,838.00 for Contingency for a Total Project Budget of $729,222.50 to be funded from Surface Transportation Fund 316, Measure L Fund 222, Water Capital Improvement Fund 644 and Sewer Capital Improvement Fund 621. 387
CITY OF OAKDALE
City Council Resolution 2026-XX
THE FOREGOING RESOLUTION IS HEREBY ADOPTED THIS 6th DAY of April, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAINED: COUNCIL MEMBERS:
SIGNED:
Cherilyn Bairos, Mayor
ATTEST:
Patrick Mondragon, City Clerk
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CONSTRUCTION AGREEMENT
THIS AGREEMENT made the 6th day of April , 20 26
by and between THE CITY OF OAKDALE, A Municipal Corporation, hereinafter designated as the owner, and Consolidated Engineering Inc. hereinafter designated as the Contractor.
WITNESSETH: The Contractor agrees to provide all required materials, labor transportation, equipment, facilities, services, incidentals necessary for construction of the G Street Bike and Pedestrian Improvements all in strict conformity with the Drawings and Contract Documents prepared by the Owner.
ARTICLE II: CONSTRUCTION DOCUMENTS: The Construction Documents consisting of the Invitation to Bidders, Proposal, Construction Agreement, the Specifications, all as listed under the Table of Contents, and the Drawings, together with all modifications and addenda included in these documents before their execution, all of which Construction Documents are made a part hereof.
ARTICLE III: CONTRACT TIME: It is hereby understood and agreed that the work under this Contract shall be completed within the following times for the work set forth in the Bid Proposal.
A. All work as set forth under Contract Bid Items within 55 calendar days ARTICLE IV: DAMAGES FOR DELAY: In case of failure on the part of the Contractor to complete the work within the time stipulated, plus any duly authorized extension of time, the parties hereby agree and recite that Owner's actual damages in the sum of $ 1,000.00 for each calendar days delay. Time is of the essence in the completion of this contract.
ARTICLE V: CONTRACT SUM: The Owner shall pay or cause to have paid to the Contractor, for the performance of the Contract, subject to additions and deductions described in Exhibit A hereof shall not exceed Six hundred eight thousand three hundred eighty-four dollars and 50/100 ($608,384.50). In lawful money of the United States and shall be paid in payments in accordance with and subject to the provisions embodied in the Documents made a part of this contract. The contract sum as herein stipulated shall include all applicable taxes.
ARTICLE VI: CONTRACT ALTERATIONS: Any alteration or alterations made in the Drawings and Specifications which are a part of this Agreement, or in any provision of this Agreement, shall not operate to release any surety from liability on any bond required hereunder, and the consent to make such alterations is hereby given, and any surety on said bonds hereby waives the provisions of Section 2819 of the Civil Code.
ARTICLE VII: PRECEDENCE OF CONTRACT ELEMENTS: All parts of this Construction Agreement (also known as Contract) shall be construed with each other to be consistent wherever possible, but in the event any conflict shall occur with any of the Contract Documents, then the order of precedence shall be as follows:
A. This Construction Agreement
B. Addenda
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C. General & Supplementary Conditions
D. Technical Specifications
E. Improvement Plans
In this regard, if there is a conflict between the plans and the technical portions of the Specifications, quality shall be governed by the Specifications. In the event of conflict within the technical portions of the Specifications, a higher quality shall govern. If there is a conflict between quantities, the higher quantity shall be provided.
ARTICLE VIII: BONDS: Contractor shall furnish and deliver to Owner for its approval upon the execution of this Construction Agreement, two good and sufficient bonds issued by a Surety Company authorized to do business in the State of California and shall maintain such bonds during the entire life of the Construction Agreement. The Bonds shall be a Labor and Material Payment Bond and a Faithful Performance Bond in the sum of not less than 100 percent each of the Contract sum. No prepayment or delay in payment, change extension of time, alteration, or addition to the terms of the contract or to the work to be performed there under or the specifications accompany the same and no forbearance on the part of the Owner shall in any way affect the obligations of the surety on the bonds, and the extension of time, alteration, or addition to the terms of the Contract or to the work or to the specifications and forbearance and said surety does hereby waive the provisions of Section 2819 and 2845 of the California Civil Code.
ARTICLE XI: GENERAL INSURANCE: Contractor shall, at its expense, maintain in effect at all times during the duration of this Agreement not less than the following coverage and limits of insurances:
A. General Liability. Contractor shall maintain commercial general liability insurance with coverage as least as broad as Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence, four million dollars ($4,000,000) general aggregate, and two million dollars ($2,000,000) products damage and completed operations aggregate for bodily injury, personal injury and property damage. General liability polices shall provide or be endorsed using Insurance Services Office forms CG 20 10 to provide that City and its officers, officials, employees, and agents shall be additional insureds (‘the Additional Insureds”) under such policies.
An endorsement providing completed operations to the Additional Insureds, ISO form CG 20 37, is also required. For construction contracts, an endorsement providing completed operations to the Additional Insureds to the policy, shall be endorsed on each commercial general liability policy issued to Contractor for ten years after completion of the work.
B. Automobile Liability. Contractor shall maintain automobile liability insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than two million dollars ($2,000,000) combined single limit for each accident.
C. Workers Compensation. Contractor shall maintain Workers’ Compensation Insurance (statutory benefits) and Employer’s Liability Insurance (with limits of at least one million dollars ($1,000,000)). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers (unless otherwise approved by the City).
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D. Pollution Coverage: Contractor shall provide a Contractors Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than two million dollars ($2,000,000) per claim. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.
E. Umbrella or Excess Liability: Contractor shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than four million dollars ($4,000,000) that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary liability coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied provides to be uncollectible, in whole or in part for any reason; • Pay on behalf of working as opposed to reimbursement; • Concurrency of effective dates with primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies with no additional restrictions.
F. Professional Liability: Design-build contractors shall maintain professional liability insurance that insures against professional errors and omissions that may be made in performing the Services to be rendered in connection with the Agreement, in the minimum amount of five million dollars ($5,000,000) per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement, and Contractor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
G. Certificates of Insurance. Prior to commencement of any work, Contractor shall provide City with certificates of insurance evidencing that all insurance and/or endorsements required by this Agreement have been obtained and are in full force and effect. Approval of the insurance by City shall not relieve or decrease any liability of Contractor. The certificates and policies shall provide those thirty (30) days’ written notice of any material change, reduction in coverage or cancellation of the insurance policies will be provided to City. In addition, in the event any change is made in the insurance carrier, policies or nature of coverage required under this Agreement, Contractor shall notify City prior to making such changes.
Such insurance shall include a provision for endorsement naming City, its officers, directors, employees and agents as additional insureds with respect to liability arising out of the performance of any work under this Agreement, and providing that such insurance is primary insurance with respect to the interest of City and that any other insurance maintained by City is excess and not contributing insurance with the insurance required hereunder.
H. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an A.M.
Best-assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class IV (or larger), unless otherwise approved by the City.
I. Maintenance of Coverage: Contractor shall procure and maintain, for the duration of the contract, insurance against claims for injuries to persons or damages to property, which may arise from or 391
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in connection with the performance of the Work hereunder by Contractor, his agents, representatives, employees or subconsultants as specified in this contract.
J. Proof of Insurance: Contractor shall provide to City, certificates of insurance and endorsements, as required, as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. For policies using so-called “blanket” or “automatic insurance” “where required by contract” provisions, contractor must provide a copy of the policy language or the “blanket” endorsement. Insurance certificates and endorsements must be approved by City prior to commencement of performance. Current evidence of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
K. City’s Rights of Enforcement: In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary. Any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.
L. Acceptable Insurers: All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an A.M. Best-assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger), unless otherwise approved by the City.
M. Waiver of Subrogation: All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Contractor, or others providing insurance evidence in compliance with these specifications, to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
N. Enforcement of Contract Provisions (non estoppel): Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City, nor does it waive any rights hereunder.
O. Primary and Non-contributory: For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
P. Specifications not Limiting: Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
Q. Severability of Interests: The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
R. Notice of Cancellation: Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with thirty (30) days notice of cancellation (except for nonpayment for which ten (10) days’ notice is required) or nonrenewal of coverage for each required coverage. 392
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S. City’s Right to Revise Specifications: The City reserves the right, at any time during the term of the contract, to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation.
T. Self-insured Retentions: Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
U. Timely Notice of Claims: Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
V. Additional Insurance: Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.
ARTICLE IX: ACCEPTANCE: Final inspection shall be made by the owner upon receipt of written notice from the Contractor stating that the work is substantially completed and ready for such inspection.
The work will be accepted in writing by the Owner when the work is found acceptable under the terms of the Contract and the Contract is fully performed and the work fully completed.
ARTICLE X: FINAL PAYMENT: Final payment shall be made within 35 days after filing the Notice of Completion, provided that the Contract be then fully performed and the work fully completed and duly accepted and also provided that no liens remaining unsatisfied are on file at that time.
The making and acceptance of the Final payment shall constitute a waiver of all claims by the Owner, other than those arising from unsettled liens from defects in materials and workmanship or from faulty work appearing after final payment, and of all claims by the Contractor, except those previously made and still unsettled. No payment or certificate issued to the Contractor shall be considered to be an acceptance of any of the work of the Contract.
ARTICLE XI: INDEMNITY: Contractor shall indemnify, defend and hold harmless City, its officers, employees, agents and volunteers from and against all liability, loss, damage, expense, and cost (including, without limitation, reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor’s negligence, recklessness, or willful misconduct in the performance of work hereunder, or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage caused by the active negligence, sole negligence or willful misconduct of the City. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
ARTICLE XII: ASSIGNMENT: The contract shall not be assigned or sublet as a whole, by either party without the written consent of the other. The Owner and the Contractor for themselves, their heirs, successors, executors, administrators, agents, representatives, and subcontractors do hereby agree to the full performance of the terms, conditions, provisions, and covenants herein contained. 393
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ARTICLE XIII: ATTORNEY'S FEES: If any legal action, including arbitration, is necessary to enforce or interpret the terms of this agreement, the prevailing party shall be entitled to reasonable attorney's fees, which may be set by the Court or the Arbitrator, as the case may be, in the same action, or in a separate action brought for that purpose, in addition to any other relief to which he may be entitled.
IN WITNESS WHEREOF the parties execute this Agreement on the day and year first hereinabove written.
CITY OF OAKDALE CONTRACTOR: Consolidated Engineering, Inc.
Jerry Ramar, City Manager Name
Title:
ATTEST:
Patrick Mondragon, City Clerk
APPROVED AS TO FORM:
THOMAS HALLINAN, City Attorney
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CITY OF OAKDALE
CITY COUNCIL STAFF REPORT
Date: Monday, April 6, 2026
To: Mayor Bairos and Members of the City Council
From: Carina McDonald, Capital Projects Manager
Reviewed by: Jeff Gravel, Public Services Director
Subject: Consider a Resolution Authorizing the City Manager to Execute an Agreement with Well Industries, Inc. for the Well 11 Test Hole & Operational Well Project in the Amount of $886,710 and $88,671 for Contingency and $88,600 for Construction Engineering and Inspections for a Total Cost of $1,063,981 to be Funded by Water Capital Facility Fund 646
BACKGROUND
The City of Oakdale owns and operates groundwater production wells that are essential to maintaining a reliable potable water supply system. The City currently relies on groundwater to meet its water demands. As part of the Water Master Plan, an evaluation of the future water system determined the need for additional capacity within the City, including the construction of four new wells by 2040 to accommodate anticipated growth identified in the City of Oakdale General Plan. To address these infrastructure needs, the City has established funding mechanisms by collecting developer fees, which are deposited into the Water Capital Facility Fund 646.
AGENDA ITEM 11.5
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CITY OF OAKDALE
City Council Staff Report (Continued)
SUBJECT: Well 11 Test Hole & Operational Well Project
MEETING DATE: April 6, 2026
The well will be located on East D Street in the northeast corner of the Oakdale Rodeo Grounds property.
This project will be completed in two phases. The first phase includes mobilizing the contractor to complete Test Hole Drilling to a target depth of 800 feet. Once all appropriate testing is complete, should the water quality data obtained from the zone test indicate a successful test hole, the contractor will begin construction of the operational well.
DISCUSSION
Project bids were opened on January 22, 2026. There were two bids for this project; one was incomplete and could not be accepted. The lowest responsive bid was provided by Well Industries, Inc. in the amount of $886,710. The bid is as follows:
Base Bid – Test Hole Drilling $311,750.00
Additive A – Test Hole Removal $15,000.00
Additive B – Operational Well Construction $559,960.00
TOTAL CONSTRUCTION COST: $886,710.00
FISCAL IMPACT
397
CITY OF OAKDALE
City Council Staff Report (Continued)
SUBJECT: Well 11 Test Hole & Operational Well Project
MEETING DATE: April 6, 2026
The purpose of constructing this well is to accommodate anticipated growth. The City has planned for this growth through its General Plan, and the Water Master Plan identifies the necessary water system improvements to support it. Funding for this project will be provided solely through developer impact fees.
To be clear, this project will not be funded by City of Oakdale water ratepayers, nor will it have any impact on the City’s General Fund.
The low bidder is Well Industries, Inc., at $886,710. Staff is also recommending a construction contingency of $88,761 and a construction engineering and inspections contingency of $88,600, for a total project cost of $1,063,981, to be funded from Water Capital Facility Fund 646.
It should be noted that City staff will return to the City Council with a construction easement agreement and potential purchase of land from the Oakdale Saddle Club.
RECOMMENDATION
Staff recommends the City Council adopt a Resolution authorizing the City Manager to execute an agreement with Well Industries, Inc., for the Well 11 Test Hole and Operational Well Project and authorizing $88,761 for contingency and 88,600 for Construction Engineering and Inspections for a total project cost of $1,063,981 to be funded by Water Capital Facility Fund 646.
ATTACHMENTS
Attachment A: Draft City Council Resolution 2026-__
Attachment B: Construction Agreement
398
IN THE CITY COUNCIL
OF THE CITY OF OAKDALE
STATE OF CALIFORNIA
CITY COUNCIL RESOLUTION 2026-___
A RESOLUTION OF THE CITY OF OAKDALE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH WELL INDUSTRIES, INC.
FOR THE WELL 11 TEST HOLE & OPERATIONAL WELL PROJECT FOR $886,710 AND $88,671 FOR CONTINGENCY AND $88,600 FOR CONSTRUCTION ENGINEERING INSPECTIONS FOR A TOTAL PROJECT OF $1,063,981 TO BE FUNDED FROM WATER CAPITAL FACILITY FUND 646
WHEREAS, the City of Oakdale owns and operates groundwater production wells that are essential to maintaining a reliable potable water supply system. As part of the Water Master Plan, an evaluation of the future water system determined the need for additional capacity within the City, including the construction of four new wells by 2040 to accommodate anticipated growth identified in the City of Oakdale General Plan. To address these infrastructure needs, the City has established funding mechanisms through the collection of developer fees, which are deposited into the Water Capital Facility Fund (Fund 646); and,
WHEREAS, the well will be located on East D Street in the northeast corner of the Oakdale Rodeo Grounds property. This project will be completed in two phases. The first phase includes mobilizing the contractor to complete Test Hole Drilling to a target depth of 800 feet. Once all appropriate testing is complete, should the water quality data obtained from the zone test indicate a successful test hole, the contractor will begin construction of the operational well; and,
WHEREAS, the purpose of constructing this well is to accommodate anticipated growth.
Funding for this project will be provided solely through developer impact fees. This project will not be funded by City of Oakdale water ratepayers, nor will it have any impact on the City’s General Fund; and,
WHEREAS, the low bidder is Well Industries, Inc., at a bid of $886,710. Staff is also recommending a construction contingency in the amount of $88,761 and a construction engineering and inspections contingency in the amount of $88,600 for a total project cost of $1,063,981.00 to be paid from Water Capital Facility Fund 646; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Oakdale does hereby adopt a resolution authorizing the City Manager to execute an agreement with Well Industries, Inc. for the Well 11 Test Hole and Operational Well Project and $88,761.00 for contingency and 88,600.00 for Construction Engineering and Inspections for a total project cost of $1,063,981.00 to be funded from Water Capital Facility Fund 646.
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CITY OF OAKDALE
City Council Resolution 2026-XX
THE FOREGOING RESOLUTION IS HEREBY ADOPTED THIS 6th DAY OF April, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAINED: COUNCIL MEMBERS:
SIGNED:
Cherilyn Bairos, Mayor
ATTEST:
Patrick Mondragon, City Clerk
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