Mayor Sabatino record ignored by people who abused their power and means

Modesto leases exceeded spending limits; fixes aim to prevent future problems

BY ROSALIO AHUMADA

rahumada@modbee.com

October 25, 2018 03:41 PM

Updated October 25, 2018 04:09 PM

Modesto officials have found lease agreements that exceeded city council spending limits, including nearly $500,000 in rental fees for a modular trailer that’s been used at a work site since 2003.

The discrepancies also included the leases of water well sites that were approved by the city council four years ago. Reports and resolutions submitted to the council at the time did not include $24,000 in estimated increases for Consumer Price Index and tax payments.

Modesto’s Finance Department discovered these discrepancies as the city conducted a comprehensive review of its past and current contracting and purchasing. The Modesto City Council on Tuesday evening unanimously approved a resolution to fix the discrepancies.
 

When the rental agreement was first established, the annual amount in rental fees for the modular trailer was less than $50,000 and only required approval from the city manager. When the total rental fees exceeded the $50,000 limit, the rental agreement was not returned to the city council for approval.