ITEM 4.24
CITY MANAGER' S REPORT
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
ITEM: CREATE CIP PS 23- 10, MOSSDALE ROAD OVERLAY,
APPROVE REIMBURSEMENT AGREEMENT WITH
BROWN SAND, INC. AND APPROVE BUDGET
AMENDMENT
RECOMMENDATION: Adopt Resolution Creating CIP PS 23- 10, Mossdale Road Overlay, Approving Reimbursement Agreement
with Brown Sand, Inc. and Approving Budget
Amendment
SUMMARY:
Mossdale Road is a frontage road on the east side of Interstate 5 near the City' s southeastern City Limit. The road' s southern terminus is the entrance to Brown Sand, Incorporated' s ( Brown Sand) aggregate quarry. The surface of this road indicates the need for structural maintenance and Brown Sand has offered to fund half of the cost to construct an asphalt overlay with typical appurtenances on the 2, 700' long segment of Mossdale Road from the Interstate 5 grade separation to the south end of the road ( Project).
Staff requests that City Council approve the creation of CIP PS 23- 10, Mossdale Road Overlay and a budget amendment transferring $ 135, 000 from the General Fund Street Repair Reserves ( 1010) to the CIP Project Fund to create the project and potentially fund half of the design and construction and a 20% contingency.
Staff also requests that City Council approve the proposed Reimbursement Agreement ( Attachment B) which authorizes reimbursement to Brown Sand for half of the final cost of the Project up to $ 135, 000 upon completion of the Project to City Specifications, dedication of such improvements to the City with lien release and warranty bond, and upon City Council acceptance of the dedicated improvements.
BACKGROUND:
Mossdale Road fronts Interstate 5 on the east and runs 5, 800' from the San Joaquin River south to the end of the road, which is the entrance to Brown Sand' s quarry.
Brown Sand' s aggregate delivery trucks frequently use the southernmost 2, 700' segment of this road, and comprise a large percentage of this segment' s traffic. The condition of this segment indicates the need for maintenance, including an asphalt overlay of at least 2".
Brown Sand has approached the City and offered to fund half the cost to construct a 3" asphalt overlay on this 2, 700' segment, including grinding off and removing the top 3" of existing pavement to prep the road surface for the overlay. The Project also includes centerline and edgeline striping and shoulder backing.
CITY MANAGER' S REPORT PAGE 2
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
CREATE CIP PS 23- 10, MOSSDALE ROAD OVERLAY, APPROVE
REIMBURSEMENT AGREEMENT WITH BROWN SAND, INC. AND APPROVE
BUDGET AMENDMENT
The Project' s limits of work are from the road' s grade separation with Interstate 5 south to the entrance to Brown Sand' s quarry, which is the limit of City- maintained roadway, as shown on Attachment C, Project Location Map. The overlay is expected to have a minimum service life of 12 years and will improve the structure and ride quality of this segment of Mossdale Road.
Brown Sand' s contractor, Tom Mayo Construction ( Mayo), has provided a cost estimate for the Project of $ 224, 113. Brown Sand has also secured encroachment permit # 2022- 133 for the work and Mayo has posted a performance bond in the amount of $ 270, 000.
Following construction, it is anticipated that Brown Sand will pay the entire cost of the Project to Mayo and provide the City proof of payment. City staff would then inspect the work, and if deemed by the City Engineer complete and built to the City' s specifications, request a warranty bond and lien releases from Mayo. Upon receipt of the warranty bond and lien releases, staff would return to City Council to request Council' s acceptance of the subject public improvements and release of performance bond.
To fund the City' s half of the Project and provide a 20% construction contingency, staff requests City Council approve the creation of CIP PS 23- 10 Mossdale Road Overlay and a budget amendment transferring $ 135, 000 from the General Fund Street Repair Reserves to the CIP Project Fund.
A reimbursement agreement is necessary to clarify the conditions and expectations of potential reimbursement. Therefore, staff also requests that City Council approve the attached reimbursement agreement with Brown Sand and authorize reimbursement upon the successful completion of the Project to the City' s specifications.
REASON FOR RECOMMENDATION:
The Project is needed to bolster the structure and improve the wearing course of this segment of Mossdale Road. The proposed creation of CIP PS 23- 10, the budget amendment and reimbursement agreement would allow the Project to move forward and the City to fund its potential portion of the overlay design and construction, which would add approximately 12 years to the pavement' s service life at approximately half the typical cost.
FISCAL IMPACT:
Staff also requests City Council approve a budget amendment transferring $ 135, 000 from the General Fund Street Repair Reserves ( 1010) to the CIP Project Fund ( 3310) as follows:
CITY MANAGER' S REPORT PAGE 3
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
CREATE CIP PS 23- 10, MOSSDALE ROAD OVERLAY, APPROVE
REIMBURSEMENT AGREEMENT WITH BROWN SAND, INC. AND APPROVE
BUDGET AMENDMENT
Decrease Street Repair Reserves
1010- 251- 03- 00 135, 000
Increase Transfer Out
1010- 9900- 990- 9010 135, 000
Increase Transfer In
3310- 9900- 393- 0000 PS 23- 10 135, 000
Increase A propriation
3310- 8000- 420- 1200 PS 23- 10 135, 000
ATTACH M ENTS:
A. Resolution Creating CIP PS 23- 10, Mossdale Road Asphalt Overlay and Approving Budget Amendment and Reimbursement Agreement
B. Public Infrastructure Reimbursement Agreement with Brown Sand, Inc.
C. Project Location Map - CIP PS 23- 10, Mossdale Road Asphalt Overlay CITY MANAGER' S REPORT PAGE 4
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
CREATE CIP PS 23- 10, MOSSDALE ROAD OVERLAY, APPROVE
REIMBURSEMENT AGREEMENT WITH BROWN SAND, INC. AND APPROVE
BUDGET AMENDMENT
APPROVALS:
a 4- 3. 23
Steven Hollenbea Date
Assistant Engineer
4- i3 - 0. 3
Ken Reed Date
Senior Construction Manager
19 ZoL3
Brad ylor Date
City Engineer
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Ca ' ] a Date
Finance rector
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Michael King Date
Assistant City Mana r
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Salvador Navarrete Date
City Attorney
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Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP CREATING CIP PS 23- 10, MOSSDALE ROAD OVERLAY, APPROVING PUBLIC
INFRASTRUCTURE REIMBURSEMENT AGREEMENT WITH BROWN SAND, INC.
AND APPROVING BUDGET AMENDMENT
WHEREAS, Mossdale Road is City- maintained road and is in need of maintenance; and
WHEREAS, Brown Sand, Inc. ( Brown Sand) is an aggregate supply company whose production facility is sited at the southern terminus of this road; and WHEREAS, Brown Sand' s commercial truck traffic comprises the majority of traffic volume on this road; and
WHEREAS, Brown Sand has offered to fund half of the $ 225, 000 estimated cost plus a 20% contingency to grind selected areas of existing pavement, place an asphalt overlay and provide centerline and edgeline striping and shoulder- backing on the southern- most 2, 700' segment of this road from the Interstate 5 grade separation south to the limit of City- maintenance ( Project); and WHEREAS, staff requests City Council approve the creation of CIP PS 23- 10, Mossdale Road Overlay; and
WHEREAS, staff also requests the approval of a budget amendment transferring $135, 000 from the General Fund Street Repair Reserves to the CIP Project Fund to create the project and fund the design and construction as follows; and
Decrease Street Repair Reserves
1010- 251- 03- 00 135, 000
Increase Transfer Out
1010- 9900- 990- 9010 135, 000
Increase Transfer In
3310- 9900- 393- 0000 PS 23- 10 135, 000
Increase A propriation
3310- 8000- 420- 1200 PS 23- 10 135, 000
WHEREAS, staff further requests City Council approve the proposed public infrastructure reimbursement agreement with Brown Sand for a value not to exceed 135, 000.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby creates Capital Improvement Project ( CIP) PS 23- 10, Mossdale Road Overlay; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop also approves a budget amendment transferring $ 135, 000 from the General Fund Street Repair Reserves ( 1010) to the CIP Project Fund ( 3310) as detailed above; and BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop also approves the proposed public infrastructure reimbursement agreement with Brown Sand to reimburse Brown Sand up to $ 135, 000 as specified therein.
The foregoing resolution was passed and adopted this 8t'' day of May, 2023 by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
ATTACHMENT
p, .
CITY OF LATHROP
PUBLIC INFRASTRUCTURE REIMBURSEMENT AGREEMENT WITH
BROWN SAND, INC. FOR CAPITAL IMPROVEMENT PROJECT ( CIP) PS 23- 10 MOSSDALE ROAD OVERLAY
This Public Infrastructure Reimbursement Agreement Relating to CIP PS 23- 10, Mossdale Road Overlay, Lathrop, CA (" AgreemenP') is made and entered into this day of 2023 (" Effective Date") by and between the City of Lathrop, a municipal corporation of the State of California (" City"), and Brown Sand, Inc. (" Developer"). City and Developer may be collectively referred to herein as the " Parties" or individually as a" Party".
RECITALS
A. Lathrop Municipal Code ( LMC) 3. 22 provides a mechanism to reimburse developers for certain public improvements as detailed therein.
B. The" Project," as referenced in this Agreement, consists of grinding off 3 inches of existing asphalt and the construction of a 3 inch asphalt overlay with shoulder-backing and centerline and edgeline striping and markers on Mossdale Road from its grade separation with Interstate 5 to the south limit of City maintenance, an approximately 2, 7001inear foot segment at 24 feet wide, as shown in Exhibit A.
C. Developer will pay expenses for the Project and is entitled to a partial reimbursement from the City of Lathrop (" Reimbursement"). The purpose of this Agreement is to detail the mechanisms for the payment of Reimbursement to Developer only for those items set forth in Exhibit B to this Agreement.
D. Upon completion of the Project, the City agrees to pay one-half of the total Project expenses paid by Developer, with Reimbursement not to exceed $ 135, 000, as shown in Exhibit C.
NOW, THEREFORE, for good and valuable consideration, City and Developer agree as follows:
AGREEMENT
l. Recitals. The recitals set forth above are true and correct and made a part of this Agreement.
2. City and Developer Obli ations.
a) City Obli at ions:
i) City shall accept the subject public improvements from the Developer following Developer' s satisfaction of all obligations as listed in Section 2( b) of this Agreement.
1 ii) City shall reimburse Developer for one- half of the Project cost of construction, with Reimbursement not to exceed $ 135, 000 following City' s acceptance of the Public Improvements contemplated by this Agreement.
b) Developer Obli ations:
i) Developer has submitted Project plans and specifications to the City pursuant to LMC 3. 22.0 l0E as part of its application for Encroachment Permit ( E. P.) 2022- 133.
ii) Developer has provided a Performance Bond ES00008004 for$ 270, 000 and Certificate of Insurance required by E.P. 2022- 133 iii) Developer will complete all construction of the Project in compliance with E.P. 2022- 133.
iv) Developer shall provide reasonable documentation of the actual costs incurred ( which may include, among others, unconditional lien releases, invoices, proof of payment, confirmation on letterhead from relevant contractor( s)/ subcontractor( s) of payment, and/ or any other reasonable documentation similar in detail and content as has been previously provided to City); City shal l then have the right, but not the obligation, to reasonably review and audit said documentation, to the extent it determines reasonably appropriate, with any such audit being completed within thirty ( 30) days. No later than thirty ( 30) days of either ( a) the receipt of said documentation, or ( b) the completion of any audit.
3. Reimbursement.
a) Timing of Reimbursement.
i) Timing of Reimbursement to Developer shall occur within a reasonable time after City Engineer' s approval of the Work pursuant to LMC
3. 22.010 and acceptance of the Public Improvements contemplated herein by City Council. City shall deliver such Reimbursement to the address set forth in Section 10 below.
4. Term of Agreement; Termination.
a) This Agreement shall commence on the Effective Date and shall terminate on the sooner of( i) one year after the date of execution or (ii) when Developer has received Reimbursement.
2 5. Indemnification. Developer agrees to protect, defend, indemnify and hold City, its City Council members, officers, employees, engineer, and construction manager harmless from and against any and all claims, demands, liabilities, losses, damages, costs, expenses, liens, penalties, suits, or judgments, arising in whole or in part, directly or indirectly, at any time from any injury to or death of persons or damage to property as a result of the willful or negligent act or omission of Developer or its Contractors, or which results from Developer' s noncompliance with any Law respecting the condition, use, occupation or safety of the Project site, or any part thereof, or which arises from conduct in the performance of or failure to perform the terms and conditions of this Agreement, except as may arise from the sole willful or negligent act or omission of City or any of its City Council members, officers, employees. This indemnification shall extend to any and all claims, demands, or liens made or filed by reason of any construction, renovation, or remodeling work performed by Developer under this Agreement at any time during the term of this Agreement, or arising thereafter.
6. Governing Law. This Agreement shall be governed by the laws of the State of California.
7. BindinE
ffect. This Agreement is for the benefit of and shall be binding upon both Parties and their respective successors, heirs, executors, administrators, permitted assigns and successors in interest.
8. Assinment. Not Applicable.
9. Notices. For purposes of this Agreement, " notice" means any notice, demand, request, or other communication to be provided under this Agreement. All notices shall be in writing and shall be sent to the below addresses or at such other addresses as either Party may later specify for that purpose. All notices required or permitted under this Agreement shall be personally delivered or sent by registered or certified mail, return receipt requested, postage prepaid ar by a nationally recognized overnight courier, such as FedEx or UPS, with charges prepaid for next business day delivery, addressed to the Parties as follows:
If to City: City of Lathrop
390 Towne Centre Drive
Lathrop, CA 95330
Attn: City Clerk
With a concurrent copy to: City of Lathrop
390 Towne Centre Drive
Lathrop, CA 95330
Attn: Salvador Navarrete, City Attorney
Email: [email protected]
If to Developer: Brown Sand, Inc.
P. O. Box 1429
Lathrop, CA 95330
Attn: Robert Brown
Email: robert@brownsandinc. com
3 The date of any notice shall be the date of receipt, provided that rejection or other refusal to accept or the inability to deliver because of a change in address of which no notice was given shall be deemed to constitute receipt of the notice sent. Either Party may change its address for notice by giving notice to the other Party in accordance with this Section 9.
10. Payments to Developer. All payments due to Developer hereunder shall be sent to the following address or at such other address ( or wiring instructions) as Developer shall from time to time specify in writing to City:
Brown Sand, Inc.
P. O. Box 1429
Lathrop, CA 95330
Attn: Robert Brown
11. Amendments. Any modifications to this Agreement shall be in writing and signed by authorized representatives of both Parties.
12. Attarney' s Fees and Venue. In the event of a dispute arising under this Agreement between the Parties, the prevailing Party shall be entitled to an award against the other Party of reasonable and actual attorney' s fees and costs incurred in connection with the dispute. The venue for any litigation shall be in San Joaquin County, California.
13. Cumulative Rights; Waiver. The failure by either Party to exercise, or delay in exercising any rights under this Agreement, shall not be construed or deemed a waiver thereof, nor shall any single or partial exercise by either Party preclude any other or future exercise thereof or the exercise of any other right. Any waiver of any provision or any waiver of any breach of any provision of this Agreement must be in writing, and any waiver by either Party of any breach of any provision of this Agreement shall not operate as or be construed as a waiver of any other breach of that provision or of any breach of any other provision of this Agreement.
14. Severabilitv. If any provision of this Agreement is deemed by a court of competent jurisdiction to be invalid, illegal or unenforceable, such provision shall be deemed to be severed or deleted from this Agreement and the balance of this Agreement shall remain in full force and effect notwithstanding such invalidity, illegality or unenforceability.
15. Headin s. All headings herein are inserted only for convenience and ease of reference and are not considered in the construction or interpretation of any provision of this Agreement.
16. Si nin Authority. The individuals signing this Agreement represent and agree that they have full and actual authority to bind their respective Parties to this Agreement.
17. Entire Agreement. This Agreement constitutes the entire agreement between the Parties regarding its subject. This Agreement supersede all proposals, oral and written, and all negotiations, conversations or discussions heretofore and between the Parties related to the subject matter of this Agreement.
4 IN WTTNESS WHEREOF, City and Developer have executed this Agreement as of the Effective Date.
CITY:
CITY OF LATHROP,
A California municipal corporation
B y:
Stephen J. Salvatore
City Manager
ATTEST:
City Clerk of and for the City
of Lathrop, State of California
By:
Teresa Vargas, City Clerk
APPROVED AS TO FORM:
B y:
Salvador Navarrete
City Attorney
DEVELOPER:
Brown Sand, Inc.
By:
Name:
Title:
5 EXHIBIT A
DEPICTION OF PROJECT SITE
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6 EXHIBIT B
ENGINEER' S ESTIMATE
4735 E. KREMONT57REET G NERAI ENGitVEERlNG COIVTRaCTQR
5[`OCK70N, CA 95215- 4{?ll C LIC{ k10. 3$ 8fy77
209) 943- 6248 PAX.( 209) 943- 1$ 5d
PWCR N, 1700001583 IWFO tTaMMAYd. NfT
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3an,uary! 1, Z 23
3ra cvn Sand, Fnc,
AT'' N: RaberF Brawu
RE: Mo sdate Ro d Pavement Rep tr
Y' om M po Caostruction ia Plr.a ed tq quot you fur#he fol] owing w rk b ed npon the foliowing:
1. Gri d roadway' rom Brown Saad entrance to the uader erossing at 1- 5. rinding viII be 24' w c e Qa 3" eep.
2. pave ba ek rpac way and t stripe to eziafing.
Tatmt Caat; 224113. 00
Exctaeiaas:
Pormits fees, i' bo ds are re uired add!. 25 Ja nd alI items not sp cifical!} inc uti d wsU I considered e cc ixled& om t e bid.
A!1 the wc k at ove to be caampl ted in substantial and waxkmanlalca manner+ cccording to standarcl practices. The e ire antract is to be paid ugan camp[ekon. A servi e charge of 1 ! h'% per manth virill be charged on sil past due accounts. urc ser a rees t4 pay al reasonable callection, attorn y f and court costs.
Any altcration or deviatior from tZa above spocific ions invQlving extt'a costs of m2t# rial ar labor will be execntcd u n rvritten Qr verrbal orders for seme and w 31 becam an extra harge avcr thc sum cnentioned in this conh ac#.
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7 EXHIBIT C
REIMBURSEMENTS
Place Holder for copy of Developer payment)
9 ATTACHMENT C— PROJECT LOCATION MAP
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