ITEM 4.4
CITY MANAGER' S REPORT
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
AMERICAN PAVEMENT SYSTEMS, INC. FOR THE
MANTHEY ROAD REHABILITATION, CIP PS 21- 08
RECOMMENDATION: Adopt Resolution Accepting Public Improvements Constructed by American Pavement Systems, Inc.
for the Manthey Road Rehabilitation, CIP PS 21- 08,
Authorize the Filing of a Notice of Completion,
Release of Contract Retention, and Release of
Performance and Payment Bonds
SUMMARY:
American Pavement Systems, Inc. ( APS) has completed the construction of the Manthey Road Rehabilitation Capital Improvement Project ( CIP) PS 21- 08 ( Project).
Staff has inspected the improvements and has deemed these improvements complete and in accordance with the approved plans and specifications.
APS has submitted lien releases confirming all sub- contractors and suppliers have been paid in full and a one- year warranty bond ( based on 10% of the construction contract) for the improvements to be accepted.
Staff requests City Council accept the improvements constructed by APS for the Manthey Road Rehabilitation Capital Improvement Project, CIP PS 21- 08. Staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, the release of contract retention to APS for $ 22, 544. 43 within forty- five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
On August 9, 2021, City Council awarded a construction contract to APS to rehabilitate the surface of Manthey Road from Towne Centre Drive to the San Joaquin River. The Project scope included the application of a Scrub Seal coat to the segment of Manthey Road. However, further investigation into the road' s condition indicated that an Asphalt Rubber Aggregate Membrane ( ARAM) surfacing treatment would extend the pavement life at a lower life cycle cost than the Scrub Seal. Additional segments of City roads near the Project but not included in the initial Project scope were also identified as suitable for the application of ARAM surfacing, including segments of Brookhurst Boulevard, Sadler Oak Drive and newly constructed lanes on Manthey Road and Sadler Oak Drive.
CITY MANAGER' S REPORT PAGE 2
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPTANCE OF PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21- 08
On May 16, 2022, City Council approved a Contract Change Order ( CCO) No. 1 with APS in the amount of $ 129, 119 for the application of ARAM to the original Project scope and additional identified roads. The initial awarded contract was for $ 302, 353, and a 10% construction contingency of $ 30, 235 was authorized for staff to use as necessary to achieve the goals of the Project. With the CCO No. 1, the total construction budget for the Project was $ 461, 707.
During construction, additional contract change orders were issued for a final contract amount of $ 450, 888. The construction costs referenced below capture all expenditures.
Construction costs are as follows:
A. Construction Contract 302, 353. 00
B. Additional Change Orders 148, 535. 60
Total Construction Costs 450, 888. 60
Upon acceptance of the improvements, the performance bond ( Bond No. 107456708, 302, 353) and payment bond ( Bond No. 107456708, $ 302, 353) will be released and replaced with a one- year warranty bond ( Bond No. 107456708, $ 45, 038. 83). The one- year warranty bond covers any repairs or replacements that may become necessary during the one- year period beginning with this acceptance due to any defective materials or workmanship in connection with the completed improvements.
APS has also provided the necessary lien releases for the materials supplied and completed work.
Staff requests City Council accept the improvements constructed by APS for the Manthey Road Rehabilitation, CIP PS 21- 08. Staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, the release of contract retention to APS for $ 22, 544. 43 within forty- five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds. Staff requests that unused funds be transferred back into the General Street Reserves Fund ( 1010).
REASON FOR RECOMMENDATION:
APS completed the project pursuant to the contract documents dated August 9, 2021.
Staff has inspected the improvements and deemed them complete and in accordance with City standards and approved plans and specifications. The performance bond Bond No. 107456708, $ 302, 353) and payment bond ( Bond No. 107456708, 302, 353) will be released and replaced with a one- year warranty bond ( Bond No. 107456708, $ 45, 038. 83) upon City Council' s acceptance of the improvements.
CITY MANAGER' S REPORT PAGE 3
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPTANCE OF PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21- 08
The warranty bond covers any repairs or replacements that become necessary during the one- year period, beginning with this acceptance, due to defective materials or workmanship in connection with the completed improvements. APS has also provided the necessary lien releases for the materials supplied and completed work.
FISCAL IMPACT:
The final construction contract amount with APS for CIP PS 21- 08 is for $ 450, 888.
Adequate funds have been allocated in the FY 2021/ 22 budget to close out the project. With the completion of this project, staff requests that unused funds be transferred back into the General Street Reserves Fund ( 1010).
ATTACH M ENTS:
A. Resolution Accepting Public Improvements Constructed by American Pavement Systems, Inc. for the Manthey Road Rehabilitation, CIP PS 21- 08, Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds
B. Notice of Completion - Manthey Road Rehabilitation, Capital Improvement Project ( CIP) PS 21- 08
C. Project Limits Map - Manthey Road Rehabilitation, Capital Improvement Project ( CIP) PS 21- 08
CITY MANAGER' S REPORT PAGE 4
JULY 11, 2022 CITY COUNCIL REGULAR MEETING
ACCEPTANCE OF PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21- 08
APPROVALS:
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Angel Abarca Date
Assistant Engineer
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Ken Reed Date
Senior Construction Manager
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Brad yfor Date
City Engineer
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Cari Jame Date
Finance Dir tor
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Michael King Date
Assistant City Manag
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Salvador Navarrete Date
City Attorney
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Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 22 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
ACCEPTING PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN
PAVEMENT SYSTEMS, INC. FOR THE MANTHEY ROAD REHABILITATION, CIP PS 21- 08, AUTHORIZE THE FILING OF A NOTICE OF COMPLETION, RELEASE
OF CONTRACT RETENTION, AND RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, on August 9, 2021, City Council awarded a construction contract to American Pavement Systems, Inc. ( APS) for the construction of the Manthey Road Rehabilitation ( Project), CIP PS 21- 08 in the amount of $ 302, 353, and a 10% construction contingency of $ 30, 235 was authorized for staff to use as necessary to achieve the goals of the Project; and
WHEREAS, the scope of work consisted of rehabilitating the surface of Manthey Road from Towne Centre Drive to the San Joaquin River, restriping center/ edge lines, and installing raised reflective pavement markers; and WHEREAS, the Project scope included the application of a Scrub Seal coat to the segment of Manthey Road. However, further investigation into the road' s condition indicated that an Asphalt Rubber Aggregate Membrane ( ARAM) surfacing treatment would extend the pavement life at a lower life cycle cost than the Scrub Seal; and
WHEREAS, additional segments of City roads near the Project but not included in the initial Project scope were also identified as suitable for the application of ARAM surfacing, including segments of Brookhurst Boulevard, Sadler Oak Drive and newly constructed lanes on Manthey Road and Sadler Oak Drive; and WHEREAS, on May 16, 2022, City Council approved a Contract Change Order ( CCO) No. 1 with APS in the amount of $ 129, 119 for the application of ARAM to the original Project scope and additional identified roads; and WHEREAS, APS has successfully completed the Project work at a total cost of $ 450, 888. 60; and
WHEREAS, staff has inspected the improvements and has deemed them complete and in accordance with the approved plans and specifications; and WHEREAS, APS has provided the necessary lien releases for the materials supplied and completed work and a one- year warranty bond ( based on 10% of total project cost) for the improvements being accepted; and
WHEREAS, the performance bond ( Bond No. 107456708, $ 302, 353) and payment bond ( Bond No. 107456708, $ 302, 353) will be released and replaced with a one- year warranty bond ( Bond No. 107456708, $ 45, 038. 83) upon City Council' s acceptance of the improvements; and
WHEREAS, the one- year warranty bond covers any repairs or replacements that may become necessary during the one- year period, beginning with this acceptance, due to defective materials or workmanship in connection with the completed improvements; and
WHEREAS, staff requests City Council accept the public improvements constructed by APS for the Manthey Road Rehabilitation, CIP PS 21- 08; and WHEREAS, staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, the release of contract retention to APS, in the amount of $ 22, 544. 43, within forty-five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements constructed by APS, Inc. for the Manthey Road Rehabilitation, CIP PS 21- 08, pursuant to the contract documents dated August 9, 2021; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop authorizes the filing of the Notice of Completion with the San Joaquin County Clerk and the release of the contract retention to APS, in the amount of $ 22, 544. 43, within forty- five ( 45) days after the recording of the Notice of Completion, and authorizes the release of the performance and payment bonds.
The foregoing resolution was passed and adopted this 11th day of July 2022, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
ATTACHMENT B
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
CITY OF LATHROP
ATTN: CITY CLERK
390 TOWNE CENTRE DRIVE
LATHROP, CA 95330
Exempt from payment of recording fees( GC 11922)
SPACE ABOVE THIS LINE FOR RECORDER' S USE
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN:
l. That the interest or estate stated in paragraph 3 herein in the real property herein described is owned by: NAME STREET AND NO. CITY STATE City of Lathrop 390 Towne Centre Drive Lathrop CA 95330 If more than one owner of the interest stated, the name and address of each must be stated)
2. That the full name and address of the owner of said interest ar estate, if there is only one owner, and that the full names and addresses of all the co- owners who own said interest or es ate as tenants in common, as joint tenants, or otherwise, if there is more than one owner, are set forth in the preceding paragraph.
3. That the nature of title or the stated owner, or if mare than one owner, then of the stated owner and co- owners is:
Proiect No. CIP PS 21- 08 Manthev Road Rehabilitation bv American Pavement Svstems Inc
4. That on the 1 l th day of July 2022 a work of i nprovement on the real property herein described was completed.
5. That the name of the arigina] contractor, if any, i'or said work of improvement was: American Pavement Svstems Inc.
6. That the name and address of the transfcror is:
NAME STREET AND NO. CITY STATE
American Pavement Svstems, Inc. 1012 1 lth Street Modesto CA 95354
7. That the real property herein referred to is situated in the_ Citv oi' Lathrop Counly of San Joaquin, State of California, and is described as follows:
Proiect No. CIP PS 21- 08 Manthey Road Rehabilitation
CITY OF LATHROP
By:
Stephen J. Salvatore, City Manager Date
That true and the carrect. undersigned has knowledge of the contents herein and states under penalty of perjury that the foregoing is By:
Teresa Vargas, City Clerk Date
CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the NOTICE OF COMPLETION dated July 11, 2022 by American Pavement Systems, Inc. to the City of Lathrop, a political corporation and/ or governmental agency, is hereby accepted by the undersigned officer or agent on behalf of the City Council pursuant to authority conferred by minute action of the City Council adopted on July 11, 2022, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager
ATTACHMENT C
PROJECT LOCATION MAP
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