ITEM 4. 18
CITY MANAGER' S REPORT
MARCH 13, 2023 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
AMERICAN PAVEMENT SYSTEMS, INC. FOR THE
CITYWIDE PAVEMENT MAINTENANCE AND
REHABILITATION, CIP PS 21- 12
RECOMMENDATION: Adopt Resolution Accepting Public Improvements Constructed by American Pavement Systems, Inc.
for the Citywide Pavement Maintenance and
Rehabilitation, CIP PS 21- 12, and Authorizing 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 construction of Capital Improvement Project ( CIP) PS 21- 12 Pavement Maintenance and Rehabilitation Project). Staff inspected the improvements and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications.
APS submitted lien releases confirming all sub- contractors and suppliers have been paid in full, and a one- year maintenance 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 Project. Staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, release of contract retention to APS in the amount of$ 60, 435 within forty- five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
On June 13, 2022, City Council awarded a construction contract to APS to maintain and repair deteriorated pavement on local streets as part of the Project. The scope of work included slurry sealing and re- striping various roadways citywide using funds from the federal government through the Regional Surface Transportation Program RSTP) managed by the San ] oaquin Council of Governments ( SJCOG).
APS completed the construction of the Project; staff inspected the improvements and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications.
CITY MANAGER' S REPORT PAGE 2
MARCH 13, 2023 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE CITYWIDE PAVEMENT MAINTENANCE AND REHABILITATION, CIP PS 21- 12
The awarded contract was in the amount of $ 1, 204, 294 and a 15% construction contingency of $ 180, 650 was authorized for staff to use as necessary to achieve the goals of the project. The total construction budget for the project was $ 1, 384, 950.
During construction, contract change orders totaling $ 4, 402 were issued for a final contract amount of $ 1, 208, 695.
The project has been completed within the available construction budget, original contract period, and in accordance with the plans, specifications, and City of Lathrop Standards. The construction costs referenced below capture all expenditures.
Construction costs are as follows:
A. Construction Contract Amount 1, 204, 294
B. Approved Change Orders 4, 402
Total Construction Costs 1, 208, 695
With Council' s acceptance of the improvements, the performance and payment bonds Performance Bond No. 107620655, Payment Bond No. 107620655) would be released and replaced with a warranty bond ( Bond No. 107620655, $ 120, 869. 45).
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.
Staff is requesting City Council accept the public improvements constructed by APS for the Project. 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 $ 60, 435 within forty- five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
The project was completed by APS pursuant to the contract documents dated June 13, 2022. Staff has inspected the improvements and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
The performance and payment bonds ( Performance Bond No. 107620655, Payment Bond No. 107620655) will be released and replaced with a one- year warranty bond Bond No. 107620655, $ 120, 869. 45) upon City Council' s acceptance of the improvements.
CITY MANAGER' S REPORT PAGE 3
MARCH 13, 2023 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE CITYWIDE PAVEMENT MAINTENANCE AND REHABILITATION, CIP PS 21- 12
FISCAL IMPACT:
The final construction contract amount with APS for the Project is $ 1, 208, 695.
Adequate funds were allocated in FY 22/ 23 budget to close out the project. With completion of this project and all RSTP funds exhausted, staff requests that unused local funds be transferred back into the Gas Tax Fund ( 2030).
ATTACH M ENTS:
A. Resolution Accepting Public Improvements Constructed by American Pavement Systems, Inc. for Pavement Maintenance and Rehabilitation, CIP PS 21- 12, Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds
B. Notice of Completion - Pavement Maintenance and Rehabilitation, CIP PS 21- 12
C. Project Location Map - Pavement Maintenance and Rehabilitation, CIP PS 21- 12
CITY MANAGER' S REPORT PAGE 4
MARCH 13, 2023 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN PAVEMENT SYSTEMS, INC. FOR THE CITYWIDE PAVEMENT MAINTENANCE AND REHABILITATION, CIP PS 21- 12
APPROVALS:
02 2 Lo23
Ange Abarca Date
Assistant Engineer
2 - 8 -2023
Ken Reed Date
Senior Construction Manager
G— 3 2 2oZ3
Brad aylor Date
City Engineer
C,.
o t co 3 2 Zo?l3
Cari James Date
Finance Director
Z• Z8 -Z.OZ3
Michael King Date
Assistant City Manager
3 - /- Zoz3
Salvador Navarrete Date
City Attorney
3•• 2 3
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 23 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
ACCEPTING PUBLIC IMPROVEMENTS CONSTRUCTED BY AMERICAN
PAVEMENT SYSTEMS, INC. FOR THE PAVEMENT MAINTENANCE AND REHABILITATION, CIP PS 21- 12, AND AUTHORIZING THE FILING OF A
NOTICE OF COMPLETION, RELEASE OF CONTRACT RETENTION, AND
RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, on June 13, 2022, City Council awarded a construction contract to American Pavement Systems, Inc. ( APS) for construction of the Capital Improvement Project ( CIP) PS 21- 12 Pavement Maintenance and Rehabilitation ( Project); and WHEREAS, the scope of work included slurry sealing and re- striping various roadways citywide using funds from the federal government through the Regional Surface Transportation Program ( RSTP) managed by the San Joaquin Council of Governments ( SJCOG); and
WHEREAS, the awarded contract was in the amount of$ 1, 204, 294 and a 15% construction contingency of $ 180, 650 was authorized for staff to use as necessary to achieve the goals of the project; and
WHEREAS, during construction, contract amendments totaling $ 4, 402 were issued for a final contract amount of $ 1, 208, 695; and WHEREAS, APS has completed the construction of the project; staff inspected the improvements and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications; and WHEREAS, APS provided the necessary lien releases for the materials supplied and completed work; and
WHEREAS, APS submitted a one- year warranty bond ( based on 10% of total project cost) for the improvements being accepted; and
WHEREAS, the performance and payment bonds ( Performance Bond No. 107620655, Payment Bond No. 107620655) will be released and replaced with a oneyear warranty bond ( Bond No. 107620655, $ 120, 869. 45) upon City Council' s acceptance of the improvements; and
WHEREAS, the construction budget for the Project was sufficient to fund the project, and staff requests that unused funds be transferred back into the Gas Tax Fund ( 2030); and
WHEREAS, staff is requesting City Council accept the public improvements constructed by APS for the Project; and
WHEREAS, staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk upon acceptance of the improvements and the release of the contract retention to APS, in the amount of $ 60, 435, within forty- five ( 45) days after the recording of the Notice of Completion and the release of the performance and payment bonds ( Bond No. 107620655, $ 120, 869. 45).
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements constructed by APS for the Pavement Maintenance and Rehabilitation, CIP PS 21- 12, pursuant to the contract documents dated June 13, 2022; 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 $ 60, 435 within forty-five ( 45) days after the recording of the Notice of Completion, and authorizes the release of the performance and payment bonds; and
BE IT FURTHER RESOLVED, that City Council also authorizes the transfer of the unused project funds into the Gas Tax Fund ( 2030).
The foregoing resolution was passed and adopted this 13th day of March 2023, 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 Salva or Navarrete, City Attorney
ATTACHMEN''
S
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:
1. 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 a d address of each must be stated)
2. That the full name and address of the owner of said interest or estate, if there is only one owner, and that the full names and addresses of all the co- owners who own said interest or estate 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 more than one owner, then of the stated owner and co- owners is:
Project No. CIP PS 21- 12 Pavement Maintenance and Rehabilitation by American Pavement Systems, Inc.
4. That on the 13th day of March 2023 a wark of improvement on the real property herein described was completed.
5. That the name of the original contractor, if any, for said work of improvement was: American Pavement Systems, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
American Pavement 1012 11` Street, Suite 1000 Modesto CA 95354 Svstems, Inc.
7. That the real property herein referred to is situated in the City of Lathrop County of San Joaquin, State of California, and is described as follows:
Project No. CIP PS 21- 12 Pavement Maintenance and Rehabilitation
CITY OF LATHROP
By:
Stephen J. Salvatore, City Manager Date
That the undersigned has knowledge of the contents herein and states under penalty of perjury that the foregoing is true and correct.
B y:
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 March 13, 2023 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 March 13, 2023, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager
LEGEND
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