City Council - Regular Meeting

It having reached the hour of 5.30 p.m., I am calling the June 2nd, 2026 Modesto City Council meeting to order and ask the city clerk to call the roll. Council Member Rickey.

Here. Council Member Bavaro.

Here.

Vice Mayor Williams. Here. Council Member Wright. Here. Council Member Scudia-Brayton. Here. Council Member Alvarez.

Here.

And Mayor Zwollin.

Here. Will everyone please rise for the Pledge of Allegiance. Thank you the person that was to give our Invocation is not here this evening. So we will move on to our next agenda item. Hopefully she'll be able to be here next time Does the city clerk have any announcements I

Yes, Mayor. Just a reminder, public comment is three minutes. There are blue speaker cards at the entrance of the chambers. In addition, general and public comment was received, and that was forwarded to the council.

Right, and it was received. Thank you very much for that information. Do any of the council members have any conflicts of interest? Seeing none, will the city attorney please report out on closed session?

Yes, Mayor. The council met in closed session today. Regarding a few items, a couple related to existing litigation and also property negotiations, no reportable action was taken.

Thank you. Next is acknowledgements and presentations. And we have a proclamation declaring June 2026 is LBGTQ plus month. And I will read the proclamation. Every June, Pride Month is celebrated to recognize the courage and contributions that the lesbian, gay, bisexual, transgender, and queer LGBTQ plus community have contributed to the cultural, social, and economic fabric of our city. This annual recognition serves as an important reminder of acceptance, diversity, and love. It is also a time to acknowledge the challenges faced by this community and to stand in solidarity with their advocacy. Throughout the world, Pride Month and LGBTQ plus rights are still challenged, highlighting the obstacles they continue to face today. This month and always, we recognize the history of the LGBTQ plus rights movement by honoring the brave leaders and organizers, by educating ourselves and others, and continuing to foster a community of acceptance. The City of Modesto reaffirms its commitment to protecting the civil rights of all people, regardless of sexual orientation, gender identity or expression, and to fostering a safe and inclusive environment for everyone. We humbly remind the LGBTQ community PLUS COMMUNITY THAT THEY ARE VALUED AND SEEN FOR WHO THEY ARE, DESERVING OF DIGNITY, RESPECT, AND SUPPORT. NOW, THEREFORE, I, SUSE WALLEN, DO HEREBY PROCLAIM THE MONTH OF JUNE 2026 AS PRIDE MONTH IN SUPPORT OF THE LGBTQ PLUS COMMUNITY AND RECOGNIZE ALL RESIDENTS WHOSE IMPACTFUL CONTRIBUTIONS TO OUR CITY MAKE MODESTO A VIBRANT COMMUNITY. DATED THE SECOND DAY OF JUNE 2026. SIGNED BY ME, SUSE WALLEN, MAYOR. Accepting will be Jessica Parman, Executive Director, CalPride Stanislaus. And I'm sorry if it's Ryan. Ryan? Great. Hall, Vice President of Communications, CalPride. Please step up to the podium if you have some comments.

Communications at CalPride. I was born and raised in Modesto. As a queer kid growing up here, I found acceptance at the local businesses, clubs, and organizations that celebrated Pride with me. The United States officially began celebrating Pride Month in the 1970s. In the 1960s, though, the fight for change started in Baltimore, New York City, Philadelphia, Chicago, San Francisco, and Los Angeles, where the very first Pride parade happened 60 years ago in 1966. These protests and uprisings were led by revolutionary transgender women of color like Marsha P. Johnson, Sylvia Rivera, Ms. Major Griffin Gracie, Felicia Elizondo, and Tamara Chang. CalPride would not be here today without them and the work that our founders, our employees, and our volunteers do every single day. It'd be an understatement to say that pride means a lot to us. It means the world to us, actually, because it's a celebration of our world. It's a reminder that we have each other and that we're never alone. By celebrating Pride as a community, we empower ourselves, each other, and our movement towards a world that begins with love. And we're literally safer for it. We are safer, healthier, and more resilient during emergencies and moments of crisis when we are well connected with our local communities. This proclamation is a reminder that Modesto is a city for all. It is a city with a diverse, vibrant history with a diverse, vibrant communities. Thank you again for reaffirming equity and inclusion here in Modesto. I'm happy to have Jessica Parman, the Executive Director of Cal Pride Stanislaus, speak on the impact that Pride Month has on our local communities today.

Thank you. Welcome.

Thank you, Ryan. Oh, I'm sorry. Good evening, everybody. I am happy to be here. On behalf of Cal Pride Stanislaus, I would like to thank the City of Modesto for once again proclaiming June as Pride Month. For the past four Pride seasons, I have had the privilege of serving at Cal Pride, and we have been honored to receive Pride Month proclamations from Modesto and Stanislaus County every single month, I mean every single year. for the last four years. Today is especially meaningful to me because this is the first Pride Proclamation I have had the honor of accepting as Executive Director of CalPride Stanislaus. Pride Month means so much to me and to the thousands of LGBTQ plus individuals we serve throughout this county. To me, Pride means pride in my community, pride in our allies, pride in the cities and the leaders who choose to make LGBTQ plus voices and stories a priority, and the pride in the people of Modesto and beyond who continued to show up for one another. This proclamation is more than just a document to all of us. It is a reminder that LGBTQ plus people belong here, that our stories matter and that our community is stronger when everyone has the opportunity to be seen, respected and included. On behalf of myself and my incredible team at Cal Pride Stanislaus, thank you for your continued support and for proclaiming June as Pride Month once again. We are greatly, we are grateful to call Modesto home and we look forward to celebrating Pride Month with our community throughout this month. Thank you very much.

You're welcome. All right. Thank you very much. If you have comments, please stay close by. Are there any comments at this time from council members? All right. Council member Rickey.

Thanks, Mayor. I just want to thank you guys for all the work you do supporting our LGBTQ plus community here in Modesto. It's strong. It's been here for many years, and it's just a very vibrant and important part of our community, and I just appreciate your support.

All right, thank you. Any other comments? Council Member Alvarez.

Yeah, Mayor, thank you. Thank you, Mayor. I'll be brief. I just want to highlight your guys' continued advocacy. I always love seeing you guys out here. Even your group, right, LGBTQ community, LGBTQ community, even has subgroups, right, LGBTQ community. TO COMMUNITY MEMBERS WITH DISABILITIES, FOR EXAMPLE, RIGHT? THERE'S SO MANY DIFFERENT SUBPOPULATIONS THAT ARE IMPORTANT TO HIGHLIGHT AND RECOGNIZE, AND I THINK YOUR GUY'S ADVOCACY DOES JUST THAT AND IS TOTALLY INCLUSIVE, SO PROPS TO YOU GUYS AND ALL YOU ALL.

Thank you so much, and I do appreciate receiving the newsletters. When I receive those to see all the services that are provided, that go way beyond, I think, what some of us might typically recognize as a nurse, especially the health services and unique situations that sometimes arise, that there's that support. I appreciate knowing that in Modesto there's a place also that people can... go and feel safe and advocate for each other and to be involved and to get information and services that are truly helpful and can save lives ultimately. So thank you very much. Seeing no other comments, thank you for being here this evening and I will now bring the proclamation down and present it.

Thank you.

Thank you for the shout-out for our health services.

We've got our health people over here tonight.

That's so important.

It's really, really important in the emergency room. I would take care of patients without special needs sometimes, and it's really important to know that that was there for them.

All right. There you go. Thank you so much. You're very welcome. Appreciate you. Thank you. Appreciate you. Thank you very, very much.

All right. Next on the agenda is item two, consider accepting the resignation of Elizabeth Brunastro from the Entertainment Commission. Does council have any questions of staff? Seeing none, I will open this item up to the public. Any members of the public that would like to speak on item two? Seeing none, I will close public comments. Council comments, anyone? Seeing none, I have a resolution accepting the resignation of Elizabeth Bernostro from the Entertainment Commission. Do I have a motion?

So moved. Second.

Moved by Council Member Wright, second by Council Member Rickey. Will the clerk please call the roll for this item?

Council Member Rickey. Aye. Council Member Bavaro. Aye. Vice Mayor Williams. Aye. Council Member Wright.

Aye.

Council Member Scudier-Brayton. Aye. Council Member Alvarez. Aye. And Mayor Zwollin.

Aye. Motion carries unanimously. Next, Item 3, consider approving the retroactive reappointment of Amanda Heitlinger and Maria Apodaca. to the downtown improvement district board of directors for a four year term ending December 31st, 2029. Do I have any questions from council of staff seeing that? Oh, council member Rickey.

Thanks, Mayor. I just have some concerns about this because the Downtown Improvement District was kind of merged with Domo or has some sort of connection to Domo now. And their purpose is to promote a positive atmosphere in downtown Modesto by caring for physical space. And their mission also includes attracting and retaining businesses, employees, residents, and visitors to downtown Modesto. And I think they've done a really good job in the PR space. Their social media game is really good, and I think that does bring visitors to downtown Modesto. But I'm concerned about the other pieces of their purpose that I just don't see happening, at least not in a way that I can confirm, right? Like, I don't see them, I don't know that they take care of downtown Modesto physically anymore. I don't I don't know what they're doing in terms of attracting and retaining businesses and employees and residents. So I just don't know. It doesn't feel like putting the same people on the board again is the right call right now because it just doesn't seem like they're fulfilling their purpose. And so I'm just concerned about that, and I'm wondering if anyone has any answers as to those questions.

Let's see. Jessica here.

Well, Council Member Rickey, this is actually a topic I had a conversation with Jessica earlier today. I'd be happy to have a follow-up conversation with you on that at a later date.

Thank you.

And I will speak to serving on the downtown, the DMP board, and we have been having combined meetings, but there are, I will say, robust discussions surrounding your concerns. And... I believe there's going to be changes made, and they're going to be addressed going forward.

Do you feel that these members would be part of that good change? Yes. Thank you.

I do. Both Amanda and Maria put the time in. They show up for every meeting. They are prepared, have put a lot of additional work into their responsibilities, especially most recently. So they are really dedicated to wanting to make improvements.

Thank you, Mary.

You're welcome.

Any other questions for staff regarding item two?

All right. I will open this up to the public. Any members of the public regarding item three? Sorry, item three. Am I on three? Yes, I'm on three. Seeing none, comments from council members? All right. I have a resolution approving the retroactive reappointment of Amanda Heitlinger and Maria Apodaca to the Downtown Improvement District Advisory Board for a four-year term ending December 31st, 2029. Do I have a motion?

So moved.

Motion by Council Member Wright. Second. Second by Council Member Scudia Brayton.

Will the clerk please call the roll? Council Member Rickey. Aye. Council Member Bavaro. Aye. Vice Mayor Williams. Aye. Council Member Wright. Aye. Council Member Scudia Brayton. Aye.

Aye.

Council Member Alvarez?

Aye. And Mayor Zwollin?

Aye. Carries unanimously. Next on the agenda is public comment. Public comments tonight. is in person only. Zoom remains available for viewing and for wordly translation. Thank you for joining us. The city council meetings are a place where everyone is encouraged to share insights, listen, and participate in the decision-making process that benefits our community. To ensure a fair and respectful environment, the mayor is responsible for maintaining order and decorum as outlined in the city charter and the rules of decorum posted at the entrance of the chamber. I ask that we are all respectful of all members of the public, presenters, and council members. Anyone who disrupts the meeting may be asked to leave. I appreciate your cooperation as we discuss key issues and make decisions that affect our city. We will now open public comment for items not on the council agenda, and you have three minutes to speak. Is there anyone wishing to come forward to speak under public comment? I currently have one speaker card. Charles Christensen, welcome.

I HAD TO WRITE IT DOWN.

WELCOME.

THANK YOU. GOOD EVENING, MAYOR, VICE MAYOR, CITY COUNCIL. MY NAME IS CHARLIE CHRISTIANSEN. I LIVE IN THE GREAT DISTRICT FIVE IN 95350 ZIP CODE. OVER THE LAST WEEK, I'VE DEVELOPED A VERY STRONG DESIRE TO COME BEFORE YOU JUST TO OFFER MY FULL-THROATED SUPPORT AND ADMIRATION FOR MODESTA POLICE DEPARTMENT. AS WE ALL KNOW, about the tragic event over the last week as it unfolded. In addition to that, however, my family had an experience that required our great law enforcement community to come together. We had a family member assaulted on Dry Creek Trail last week. She was able to call 911, get a picture of the assailant, and the Modesto Police Department responded. Quite frankly, given that it happened on Dry Creek Trail and the perpetrator could literally be in the wind, we could have expected a cursory look and we can't find the guy, he's in the wind. But not our Modesto Police Department. They... They kept with it. They found the person, the perpetrator. They were able to positively ID him. And as I understand it anyway, he currently sits in jail. And so I appreciate that. I just wanted to share how proud and impressed I am with the professionalism and the attention to detail our strong Modesto Police Department provided on this case. And it seems to me they really do that on any and all cases involving violence or other crimes committed in our community. I just wanted to reaffirm to the council and anyone listening how lucky we are to have a department that cares about community, demonstrates professional courtesy, and thorough execution of their role to serve the people and keep the peace. Thank you.

Thank you for your comments. Anyone else? that would like to come forward to speak under public comment. Seeing none, next on the agenda is consent items. An item may be removed from consent and discussed at the request of a member of the public or council member. Is there anyone on the council that would like a consent item removed for further discussion? Seeing none, is there anyone in the public that would like an item removed from consent for further discussion or comment? Seeing none, will the city clerk please read the consent items?

Item 4, consider approving the minutes for the May 12, 2026 Council meeting. Item 5, consider approving final adoption of Ordinance 3814CS, amending Sections 2-1.24, Compensation of Mayor, and 2-1.26, Compensation of City Council Members of Chapter 1, City Council Organization and Procedure of Title II, Administration of the Modesto Municipal Code to Increase the Salaries of the Mayor and and city council members pursuant to Charter Section 703 and the recommendations of the Citizen Salary Setting Commission of 2026. Item 6, consider receiving the 2026 local agency biennial notice and directing staff to conduct a review of the city's conflict of interest code and the code of the city's boards, commissions, and committees and the filing of a biennial notice with the city clerk regarding such review as required by the Political Reform Act. Item 7, consider approving the recommended budget adjustment to fiscal year 2025-2026 annual operating and CIP budgets. Item 8, consider accepting fiscal year 2026-2027 engineer's report and setting a public hearing on June 23, 2026 for the levy and collection of assessments for landscape maintenance in the public right-of-way street medians and areas adjacent to the access control walls and dry creek meadows, subdivisions number 1 through 6. Item 9, consider accepting the fiscal year 2026-2027 engineer's annual report For Landscape Maintenance Assessment District Number 2, issuing a notice of intention to levy and collect assessments and setting a public hearing on June 23, 2026 for the levy and collection of assessments for landscape maintenance in the public right-of-way, street mediums and areas adjacent to the access control walls and Dry Creek Meadows Subdivisions Number 7 through 10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivision Units 1 and 2. Item 10, consider accepting the fiscal year 2026-2027 engineer's annual report for the Sheckerford Landscape and Lighting District issuing a notice of intention to levy and collect assessments and setting a public hearing on June 23, 2026 to consider the fiscal year 2026-2027 levy and collection of assessments within the district. Item 11, consider approving a memorandum of understanding with Stanislaus Council of Governments for sub-allocation of regional early action planning grant of 2021 program Funds are EAP 2.0 in the amount of $839,492. Councilmembers Escutia, Brayton, and Wright, along with Mayor Zwollin, serve as council representatives on Stancock boards. That includes the Policy Board and Executive Committee. Councilmember Alvers serves as an alternate member. Item 12, consider approving updates to the city's investment policy. Item 13, consider approving the updates to the city's debt management policy. Item 14, consider accepting an informational report on the March and April 2026 grant applications and awards. Item 15, consider approving the fiscal year 2026-2027 appropriations limit, which is an annual spending limit calculation that identifies the maximum amount of appropriations for publicly funded programs. Item 16, consider approving the purchase for three fleet additions and 10 fleet replacements in a total amount not to exceed $1,435,294. Item 17, consider approving payment of various equipment maintenance agreements for fiscal year 2026-2027 with multiple equipment manufacturers for all city departments for an annual amount not to exceed $932,343. Item 18, consider approving a letter OF AGREEMENT WITH MODESTO CONFIDENTIAL AND MANAGEMENT ASSOCIATION FOR POLYGRAPH SERVICES. ITEM 19, CONSIDER APPROVING THE PAYMENT OF SOPHOMORE MAINTENANCE SUPPORT AGREEMENTS FOR FISCAL YEAR 2026-2027 IN A TOTAL AMOUNT NOT TO EXCEED $11,750,176. ITEM 20, CONSIDER ADOPTION OF THE 2026-2028 CITY OF MODESTO SMART CITY STRATEGY. ITEM 21, CONSIDER APPROVING CO-SPONSORSHIPS FOR DESIGNATED CITY PARTNERS EVENTS AND PROGRAMS with direct contributions of $114,500 and in-kind support with an estimated value of $261,022 for fiscal year 2026-2027. Item 22, consider approving an agreement for on-call roll-up door maintenance and repair services to West Coast Door and Gate, Modesto, California, and Barton Overhead Door, Incorporated, Modesto, California, for a total combined amount not to exceed $348,510 over five years. Item 23, consider approving a First Amendment to the agreement With the BGR Group Incorporated Santa Clara, California, for fire safety system services, increasing the agreement amount by $584,576 through the duration of the agreement. And item 24, consider approving a list of projects to be funded with road repair and accountability act tax proceeds for fiscal year 2026-2027. Oh, all right.

I have a motion to approve the consent calendar. Motion. Second. Motion by Vice Mayor Williams. Second. Second by Council Member Rickey. Will the clerk please call the roll for this item? Council Member Rickey.

Aye. Council Member Bavaro. Aye. Vice Mayor Williams. Aye. Council Member Wright. Aye. Council Member Skwikia-Breaton. Aye. Council Member Alvarez. Aye. And Mayor Zwollin. Aye.

Carries unanimously. Next on the agenda is council comments and reports. Council Member Wright. Thank you, Mayor.

I just wanted to make a note that on Saturday, May 23rd, Council Member Williams and myself attended the Stanfoss Asian American Community Scholarship Fund. They gave out 19 scholarships. Half of them were climbing on being either an RN or a physical or a physician's assistant. And it was nice to see that we have a good crop of young people that are getting into the medical field. I know we are short RNs and doctors in this area, and hopefully a lot of them will come back, or hopefully all of them will come back and serve here in Modesto.

Thank you. Council Member Alvarez.

Thank you, Mayor. I want to highlight a couple of things. Over the past week, you and I actually, Mayor, attended the Riverdale Park Community Groundbreaking. So through a partnership with Stanislaus County, the City of Modesto Self-Help Enterprises, and the State Water Resources Control Board, the Riverdale Park neighborhood will soon be connected to the Modesto Water Utility System, which addresses the longstanding uranium contamination concern rooted in that community. The mayor and myself, along with Supervisor Withrow, were in attendance, among other folks as well. So the project ultimately will bring safe drinking water that meets state standards, 15 new fire hydrants, new curbs, gutters, sidewalks, ADA ramps, storm drains, and repaved roads for the Riverdale Park community. This has been a long-awaited investment in public health, safety, and neighborhood infrastructure. And the county's funding source was ARPA, so American Rescue Plan Act funding, along with the California Water Resources Control Board's investment. in addition to the city of Modesto's investment. Lastly, I want to highlight just a quick update for my colleagues and for the public. A concern that was brought up last council meeting regarding a cell tower going in on the west side of Modesto in a county unincorporated area. So residents over in that neighborhood provided public comment regarding the proposed cell tower. And this matter was initially communicated in a way that created confusion regarding jurisdiction. And so it's important to clarify for the record that this is a county jurisdiction matter and not a city issue. Most recently, last Friday, Supervisor Withrow and I met with residents to listen directly to concerns and provide information regarding the county's permitting process. Although it's a county jurisdiction, the issue was originally presented here at the council chambers. So upon hearing of this community gathering, I extended the invitation to Supervisor Withrow to ensure residents had access to the appropriate county representative. And I appreciate the residents for their continued engagement and figuring it out, if you will. and Supervisor Withrill for his time in answering the questions from the residents and helping to clarify processes. The community meeting that took place last Friday at 6 p.m. on the Ohio Avenue at the property in question focused on ensuring residents had accurate information regarding the county's permitting process and direct access to the appropriate decision maker. Discussions are ongoing, but I remain hopeful that a path forward can be identified that appropriately addresses the community's concerns. And as a reminder, because the proposed cell tower is located in an unincorporated area of the county, it falls under county jurisdiction. And Supervisor Withrow is the appropriate elected official to engage directly with residents on permitting and related procedures. This clarification is intended to ensure residents receive accurate information about the applicable county processes and decision-making authority. Thank you, Mayor.

You're welcome. Council Member Scootia Brayton.

Yes, thank you, Mayor. It was my honor this past weekend to attend a couple of Memorial Day observances, both at Acadia and at Lakewood. locations. It was a wonderful opportunity to be with community and to recognize our very, very brave men and women veterans who paid the ultimate price, the price of their life so that we can enjoy the freedom that we all have today. It was a beautiful day. And the words that were expressed by many of the presenters were heartfelt. And to have private conversations with blue and gold star families that were there and shed a few tears. was also pleasant because you did it with community and in honor of our brothers and sisters that have fallen. But it was a lovely, again, tribute to our brave men and women. And since we last met, I also, along with the other finance committee members, participated in a joint finance and planning commission meeting And at this meeting and in compliance with the city charter, we determined that the city's capital improvement program was in conformance with Modesto's urban area general plan for fiscal year 26-27, which is a very good thing. The finance committee also reviewed the major projects and new additions to the capital improvement projects. program for 26, 27. This was a very, very important step and a crucial step to moving forward in towards the final, it's a final step and it was crucial to moving our budget forward and that's going to be something that we adopt tonight. So that will culminate our annual, in this case, biannual process that we do at the city. And it was very eye-opening and had an immense amount of detail. And again, I was very pleased to have been part of that. And lastly, the mayor and I, Was it last week or earlier this week? It just all combines. We had the privilege of going to Virginia Trail to help celebrate Bike to Work Week. And what was so wonderful about being at that event is not that we were only out in nature, but we were celebrating the fact that Modesto has a space in the trail that brought together an idea to open up people's options to get to work. You no longer have to take public transportation or a car. We have this beautiful trail that brings together amenities in Modesto. It's a trail that you can hop on from perhaps your home It's a trail that you get off of and have some yogurt or restaurants. It has retail. It has access to schools. And it's a trail that we actively plan on elongating. So quite possibly in the near future, it will fully connect Modesto and, again, our options, our multiple options of getting from point A to point B. So these are things that were celebrated, and it was just a wonderful day and a good reason to celebrate. So that concludes my remarks. Thank you.

Council Member Rickey.

Thanks, Mayor. As many of you know, shade in our playgrounds has been something that I've been working on for the last couple of years. And in meetings with parks, they've assured me that this is going to be handled. But unfortunately, what I've seen is that we've continued planting small trees that won't really provide shade for 10 to 20 years. And so what I think we need to do is plan for the future. which they're doing and that's awesome, but we also need to plan for the now. And the argument against shade structures is that they wear out and they need to be replaced in about 10 years. Perfect. Put in the shade structure and by the time it needs to be replaced, the trees, if they grow as advertised, will be grown enough to take over. The problem here is how we think. We can't ignore the present because the future also exists. I also want to talk a little bit about everyone's favorite subject, Stanislaus Animal Services. It's June, and that means that Stanislaus Animal Services is supposed to have their budget ready. They have a lot to do. They aren't providing the basic services that our community needs, and they're trying right now to pull safety tags to reduce the effectiveness of rescues. They need to address licensing costs and collection. Stanislaus Animal Services needs a full attitude adjustment. They need to dump capacity for care. They need to fund spay and neuter. They need to fund TNR. They need to answer the phones. They need to work with the rescues rather than working against them. We aren't going to stop until they reform. And I strongly believe that we need to ask for a performance audit of Stanislaus Animal Services. They are letting our community down, and we must hold them accountable. And finally, I am pleased that the investigation into StanCog has yielded results. However, StanCog's CEO didn't spend this money in secret. STANCOG also needs to investigate whether other STANCOG employees were a part of or aware of this corruption. We have to finish this job. This kind of behavior is totally unacceptable and we must ensure that it never happens again. Thanks, Mayor.

Thank you. Vice Mayor Williams.

Thank you, Mayor. First and foremost, I'd like to welcome back our fellow colleague, Councilman Nick Bovaro, who was gone for a moment and glad that he has come back from his vacation. Second of all, it's still time to vote. 8 o'clock is the cutoff time. If you are watching me right now and you are at home and you haven't voted, you still have two hours to get that done. Second of all, I did also join the Riverdale track along with my colleagues, the mayor and council member Alvarez. And I was very, very impressed with the longevity of the work that has took place that is meaningful to the community. And when one of the residents of that area who had photos dating back to 20 years of all of the progress, it just... it was astounding to see that that great love for that community that he had and so glad that the community excuse me so glad that the county and the city and the water bond together work this out to where things can work out for water to be dispersed in that area to where they could have premium drinking water and etc Third, Memorial Day service, I also attended the, along with my colleague Councilwoman Ascudia Brayton, the one at Acacia and then also the one at Lakewood. I was very pleased to see the turnout of people who came to honor, again, the statement that was just made that They actually gave up their life for people they didn't even know, but they were giving it up for this country so that we can have the peace that we have in our world. On that day, and then at Lakewood, I was very, very pleased to see that our fire engines were there with the flag, and also our chief, Chief Shannon, was Evan Shannon. Evan Shannon was there to also be with us. Had his granddaughter, and that was his prize because he seemed like he had her all the time. But also very, very thankful that the fire department was there to honor those that have fallen in the line of duty. I also attended two funerals last Saturday. One was for Tom Van Groningen, and these are, we talk about memorial, we talk about service men, and these are service people in this community, like Tom Van Groningen, who was the YCCD Chancellor, President for MJC, MID board member just on and on and on what took place at 11 o'clock over off of College Avenue and then Going over to Odessa Johnson's service. It started one for the reception But then there was the service that didn't start till 2 30 was well attended She was a beautiful person The mayor was there as well, and she may have comments. I'm not sure. But it was a beautiful service, giving tribute to a person who came to this community in 1962, first African-American teacher at Modesto High School to become a regent, to be a school board member. The list just goes on. And not only that, she was a regal person and a person that you would easily love because she loved us all. Then also coming up June 28th at the Gallo Center at 11 o'clock is another servant, and that servant is Ron Immersion. Ron Immersion passed away, and his service will be at the Gallo Center 11 o'clock at June 28th, and it's a Sunday. Hopefully folks can be able to attend that. And then lastly, Mayor, I'd like to congratulate and say that I love my daughter and her new husband. At 1 o'clock today I performed the wedding ceremony for them to be married. It was a beautiful setting and I'm so glad that they had the opportunity for me. that I had the opportunity to marry them. It was a beautiful occasion, and may God bless them, and just I want them to know, Josh, welcome to the family, and Iris, I love you.

All right, any other comments at this time? I will mention a few that have not yet been mentioned, and one is that on Tuesday, May 19th, our new fire chief was sworn in, Shannon Evans. I want to formally announce that again for everyone to know. We are grateful for him and for his service to our community and all the service that he will give going forward. Also, on Wednesday, May 27th, we celebrated Modesto Symphony's 95th anniversary. 95 years in the city of Modesto, and they are incredible. The music is just uplifting. It's professional in every way and a real delight, and I'm so grateful for them in our community. Also, today there was, I missed it because I was here at this meeting, but our CEO for the Gallo Center for the Arts, Chad Hillegas, is leaving for a position in Southern California, which is a great opportunity for him. We will miss him. He gave back to this community in many ways, serving on boards and really promoting entertainment in downtown Modesto. So there is a national search underway for a new executive CEO for the Gallo Center for the Arts. That's my report. So next we will hear item, oh, we will see if our city manager has any comments and reports. All right, not tonight. Next on the agenda is item 25, a hearing to consider and approve the final proposed fiscal year 2026-27 operating a multi-year non-capital budgets and capital improvement program for the city and related resolutions. And we will have a staff report. Welcome.

Thank you. I'm going to kick it to the city manager.

All right.

Thank you, Steve. Good evening, Mayor and Council Members and members of our community.

We are pleased to present the fiscal year 26-27 budget. This year's process focused on refining last year's adopted budget and incorporating priorities identified during the two strategic plan workshops held this past year. While the foundation of the budget was established last year, staff conducted a comprehensive review of expenditures, revenues, and future needs to ensure it remained aligned with the city's goals and financial realities. Amid ongoing economic uncertainty, the city continues to take a cautious yet adaptable approach to financial management. The strategy supports sustainable growth, effective risk management, and the continued delivery of essential services, while positioning Modesto to seize economic development opportunities even during challenging economic conditions. The city remains committed to maintaining a strong financial foundation, growing responsibly, and preserving a balanced budget. Thanks to Measure H, we can continue to make strategic investments that improve the quality of life for our residents, from enhancing parks to increasing tree maintenance, and addressing longstanding infrastructure needs. Modesto remains resilient and focused on responsibly stewarding taxpayer dollars through transparent, responsive, and effective governance. I would like to thank our staff for their dedication and hard work in preparing this budget and for their ongoing commitment to serving our community. With that, I'll turn it back to Steve for an overview of the budget. All right. Thank you.

Joe? All right, so I have a brief, because I saw that I was the only public hearing, so a 60-slide presentation on the, no, I'm just kidding.

No, uh-oh.

Let's do it. So good evening, council members and mayor. Steve Christensen, OPMB director. So we'll go through just a brief overview of our timeline. So again, this is the second year of our two-year budget process. We are currently at the June period there on the timeline. We went through the process this year of the refinement process of the budget. So we went through the mid-cycle updates and we are in the adoption phase at this moment. So looking at just this fiscal year and the budget process that we're looking at, we went through all of these months. So we had our council retreats that were done in November and Look at my notes. November and January. And then we had our finance committee budget workshops that were done in April. And then going through May, we had the Joint Planning Commission Finance Committee meeting that looked at the CIP for our capital improvement program. And then now we're in June for the public hearing right now to adopt the budget. So again, per our charter, we have to adopt our budget by June 30th so we can have the appropriations ready for all of our departments to have that appropriation ready for budgets by July 1st. So looking at our general fund, you can see our proposed revenues. Again, property tax being our largest revenue source. Seeing an increase there. A lot of these are increasing across the board. We have sales tax increasing, utility user tax, transient occupancy tax, business license mill tax. And then you'll also see here in the departmental revenues a larger increase. A lot of that is made up of we have our fire contracts built into that departmental revenues as well. And then you have our Measure H sales tax. That's the contribution or the subsidy coming over from Measure H, which we'll talk a little bit more when we talk about Measure H. So total revenues, $215.6 million for our general fund and the proposed budget for 26-27. This is just looking at kind of our revenue history for general funds. So you see steady increases across the board there in terms of our overall general fund revenues. I do want to point out in the 23-24 year, that's the first year we started having kind of the Measure H subsidy. So that little variance there between the blue and the orange, that's the subsidy amount coming in over from Measure H to the general fund. On the expenditure sides, you can see, again, all of our departmental expenditures with public safety being the largest portion of our general fund budget. And you can see the variances or the increases from 2526 to 2627 on this chart here as well in the fourth column. Some of the things to point out here, if you go down towards the bottom on the proposed adjustments, there were some adjustments made to this budget where we took some revenue or reserves back from the EBF, the employee benefits, and spread them to the various funds that contribute to there. That makes up a majority of that proposed adjustments. That's about 1.5 million of that 1.8 million there. So it was just returning of... some excess reserves that were built up in that employee benefits fund back to the various funds that contributed to that internal service fund. And then you also see a variance rate that is included there as well for the general fund. So that's taking into account some vacancies, discretionary fund savings that we anticipate through the fiscal year. Total general fund expenditures, $215.6 million for a balanced budget going into 26-27. We do have some non-measure age adjustments in the proposed budget. So in the general fund, we have a few or a couple. There are two development service technicians that are included in this budget for $142,000. And then we have the addition of one employee relations officer that is offset by some revenue coming in. So that's why you see a little bit lower in terms of the total cost for that position at $48,500 So total general fund proposed adjustments of $191,000 and then you also see the non-general fund proposed adjustments coming in for the airport and then we have a tree trimmer as well as a truck for the solid waste operations crew leader. Now going into Measure H. So this is kind of an overview for the spending plan for Measure H. On the left table, you can see the total expenditures for Measure H in fiscal year 26-27 that are proposed. So we have the spending plan on new programs, which is the $7.7 million, which we'll see the breakdown of that on the next slide. And then we have the already approved Measure H spending. So that's $28.1 million in spending that has been approved in previous fiscal year spending plans. That's kind of ongoing from those spending plans. So for positions that have been approved and things like that. And then we also have the general fund budget deficit funding that we had seen on the previous slides. And then we also have the supplement for the ARPA loss funding in the general fund. So all of that total $51 million in Measure H spending. And then on the right, you can see a little bit of a breakdown of just kind of the, what we'll call the spending plan for fiscal year 26-27. So a breakdown of that $7.7 million in the new spending. So we have $1.7 million of ongoing, and then $5.9 million in one-time funds. So there's a total of $7.7, and then again, the deficit funding, for $13.1 million, the subsidy to the general fund, and then the additional $2 million for the ARPA loss funding. So a total of $15.1 going to the general fund. Just some notes there. For the Measure H fund, we're anticipating a projected fund balance of approximately $23 million at the end of 26-27, based on those budgeted figures, which is approximately 46% of the annual revenue that we anticipate receiving. These are the new programs in the proposed spending plan. I'll just point out some of the highlights. So there's about $1.6 million for the parks preventative deferred maintenance projects. And then there's another $3 million that's going towards the awesome spot, completion of phase one. We have the buyout option for five fire engines and two fire trucks. These are ones that were purchased back in 2016. So this is so we can buy them out and keep them for our fire department. And then we also have the Fire Department Merced College paramedic program training. So this is for the paramedic program and the fire department for $410,000. We have the conversion of a police officer position to a police lieutenant position for the fourth area command position. And then we also have some additional operating budget for the water park. So there's the total of the 7.7 million for the new programs. This chart here is showing a breakdown of the other major funds for the city. So this is a comparison of what we had originally projected when we did the initial two-year budget process and what we're showing in this final proposed budget. So just kind of showing the variance of our initial projections to what we're showing now in the proposed. So you can kind of see where those numbers changed. So for the water fund in this proposed budget, $82 million. The wastewater fund, $60.2 million. Solid waste, $21.2 million. Surface transportation funds, $21 million. Storm drain, $8.5 million. And then the capital improvement support fund, $8.4 million. This next slide, it's a little bit small on the screen, but you have it in your handouts. This is our all funds. So total funds for all the city listed out here, general fund, enterprise funds, airport funds, our housing and urban, our HUD funds, all listed out, all total $674.2 or $.4 million. Quite a bit of funds across the city in terms of the total proposed budget that council looks to adopt tonight in our entire budget. Looking at the capital improvement program. So kind of an overview. This is what was presented to the Joint Finance Committee Planning Commission at that meeting. So there are 175 total capital improvement projects for 26-27. Nine of these projects were classified as new projects that increased the total budget by 3.28 million. In that chart, you can see the breakdown of where those projects are in terms of the new projects. And then this next chart will show you kind of the percentage by CIP category. So again, the bulk of these projects for the city, and this has changed over time, now a bulk of them are in the traffic circulation area, and then the wastewater and the water areas. And then before we go to these staff recommended actions, I am happy to answer any questions.

Thank you very much for your presentation. Any questions from council members? Council member Bavaro.

Thank you, Mayor. On the supplement on page 9, the supplement for ARPA loss funding and the general fund of $2 million, is that ongoing operating expense or is that just one-time fixed money?

I can't remember what year it was. It was a few years ago when ARPA funding went away. That was $2 million that we were using to supplement our general fund from ARPA. When we did this, I think it was two years ago from Measure H, we had moved Measure H funding to General Fund. So we call it out. It's part of the General Fund subsidy, but we call it out separately to identify that it was lost funding from ARPA, which is why we're moving it over from Measure H. So it's supplementing our General Fund total operating budget because that's what it was being used for from ARPA as part of the... they called it the COVID, I think it was the COVID public safety portion of it that we received from ARPA. So you're allowed to use a portion of COVID, not COVID, portion of ARPA to supplement like for your COVID response from public safety.

Okay. Got it. And on page 12, what is the projected cost expenditure or revenue I should say for measure H for fiscal year 26-27?

So for fiscal year 26-27 we're at $48.5 million.

$48.5 and our expenditures are $50 million. So I see where we're dipping into more expenses coming out of our expenses more expenses over our revenues so projecting into the future on how we use Measure H money, do you see us, is this going to be a concern like in about five or six years?

No, a portion of that is because we're using some of the one-time funds that we had in reserves to cover that delta. So when you looked at our, let me go back here. If you look at the table on the right, when you see the breakdown of the ongoing versus the one-time, the one-time amount of the 5.9, part of the strategy that we have going forward with Measure H is to limit the amount of ongoing expenses that we're improving in the Measure H spending plan so that the money that we're adding to the Measure H spending plan is one-time in nature. So while we're going above the revenue coming in with Measure H, we're really just using the one-time funding from reserves to cover that one-time expense. So that $5.9 million is going to be covered by reserves, but we're not anticipating a cash flow issue in the future because it's just a one-time hit to the reserves. And then the other factor that we have on our cash flow when we look at our Measure H funding is that We don't spend all of the Measure H funds every fiscal year. So at the end of next year, we anticipate there'll be operating savings from the expense side because we don't, like for capital projects, we don't spend the full amount every fiscal year. There'll be savings at the end of the year. That will recoup in our reserves at the end of the fiscal year.

Got it. Also on page 12, You're projecting your proposed budget for employee benefits administration is increased 1.9%. That seems kind of low considering what we read about the cost of benefits nationwide. I mean, usually you're looking at any double-digit increases. And you're coming in 1.9. Can you explain that?

Yeah, so that line for employee benefits administration and management ISF funds, that's not for, like, our salaries and benefits. That's just the ISF fund. That's for our employee benefits. ISF, our internal service fund, so it's managing like our sick leave payouts for retirees. It's not our salaries and benefits for employees. Yeah.

Okay. I didn't know that.

Yep.

Thank you, Mayor.

All right. Questions? Council Member Wright.

Thank you, Mayor. On the Austin spot, phase one, $3 million, how many phases, Jeremy might know this, how many phases will there be on Austin spot? Okay.

After phase one, there's two more phases, and we are developing a plan to help fund the remaining phases, and we will be bringing back to council what that plan is in the very near future.

And do we have any idea what those next two phases may run approximately?

I want to say $5 million. $5 million.

So this project started out five, six, seven years ago to be $3.5 million. TOTAL.

WELL, TWO THINGS. ONE, I'M NOT SURE THAT WAS A REALISTIC NUMBER, AND TWO, AS TIME GOES ON, THINGS GET MORE EXPENSIVE. I UNDERSTAND. JUST A LITTLE PREVIEW. OUR GOAL IS STILL TO CONTINUE TO FUNDRAISE, AND WHAT WE'RE PUTTING TOGETHER IS WHAT THAT FUNDRAISING PLAN LOOKS LIKE. WE'LL BE RECOMMENDING TO COUNCIL THAT WE DO A ONE-TO-ONE MATCH OF THE FUNDRAISING EFFORTS TO HELP FUND THE REMAINING OF THE PHASES. THANK YOU.

All right, further questions on item 25 from council members? Seeing none, I'll now open the public hearing. Are there members of the public that would like to come forward regarding item 25? Seeing none, I will close public comments. Are there any comments from council members? Rosa, Scudia, Brayton.

Thank you, Mayor. I just want to thank Steve and your entire team and everyone who contributed to this just robust budget. And the process was very detailed and it was very well organized and it was massive and we got through it seamlessly because you're such a pro at this. But thank you for your hard work in presenting this before us today. And I'm very much looking forward to voting in favor of its passage.

All right. Council Member Bavaro.

Thank you, Mayor. I also would like to thank Steve and his department for the hard work that they put into our budget. The process starts you know, in November, October. And, you know, this is something that's, you know, we have ongoing workshops. And it seems to me like the two-year budget plan and the timelines have worked out well. It seems to me that when we're going through the workshop and various meetings, and even in finance, it seemed like we improved the efficiency and, you know, wasn't, yeah, just improved the efficiency of having the two-year plan starting with the budget. So anyway, just wanted to comment on that. And again, thank you.

Council Member Wright.

Thank you, Mayor. Not only do I want to commend you and your staff, I want to commend all the department heads. Because department heads have to put their budget together every year and submit it to you. And department heads do know that we do run a $5, $6, $7 million deficit every year. And they really have to crunch their numbers. and really make sure that the department is running lean and mean, but also getting the work done. So my hat's off to all the department heads on all the great work they do on running their staff and making this Modesto a better place, even though they're limited on staffing.

All right. Vice Mayor Williams.

Thank you, Mayor. So thank you to all of you. Everything that was already said by my colleagues are already been mentioned. There are two individuals that I do want to highlight and that is our city manager and our mayor. They have to oversee this process and as they oversee this process they're asking those questions before they get to us and so I am truly thankful that the team All of you, the team, the directors of all of the departments, city managers, the mayor and others, and the deputy city managers as well, dive into this and make this happen. So we have a great team. Keep it up. See you next year.

I'll add my thanks also, Steven, and to your team and to our directors, all of them, and to Joe, our city manager, everyone, our charter officers. I certainly recognize the hard work, and it's very serious business, I might add, that the looks on everyone's faces on the multiple, multiple budget meetings that I observed going back and forth down that hall. are serious and really do appreciate your due diligence. It's very reassuring to know that we have you to guide us through this process. So thank you for that to your entire team. At this time we have four resolutions and we can do one vote. So I have a resolution approving the adoption of the fiscal year 2026-27 annual and multiyear non-capital operating budgets and the 2026-27 capital improvement program for the City of Modesto and the related inter-fund transfers. I have a resolution approving the budget principles and the operating budget policy as outlined in the fiscal year 2026-27 final proposed budget. A resolution amending the position classification plan for the city of Modesto to create new classifications and amend existing classifications. And a resolution amending the position allocation for fiscal year 2026-27 as adopted in the operating budget. Do I have a motion? So moved.

Second.

Moved by Council Member Wright, second by Council Member Scudia-Brayton. And will the clerk please call the roll for this item? Council Member Rickey. Aye.

Council Member Bavaro. Aye. Vice Mayor Williams. Aye. Council Member Bright. Aye. Council Member Scudier-Brayton. Aye. Council Member Albreth.

Aye.

And Mayor Zwollin.

Aye. Carries unanimously. Thank you very much. At this time, are there any matters too late for the agenda? Seeing none, I'm calling this meeting of the City Council to be adjourned.