ITEM 4. 16
CITY MANAGER' S REPORT
JULY 10, 2023 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
CUSHMAN CONSTRUCTION CORPORATION FOR THE
CTF DECHLORINATION FACILITY, ASSOCIATED
WITH CIP WW 20- 17 RECYCLED WATER RIVER
DISCHARGE PR07ECT
RECOMMENDATION: Adopt Resolution Accepting Public Improvements Constructed by Cushman Construction Corporation
for the CTF Dechlorination Facility, Associated with
CIP WW 20- 17 Recycled Water River Discharge
Project, Authorizing the Filing of a Notice of
Completion, Release of Contract Retention, and
Release of Performance and Payment Bonds
SUMMARY:
Cushman Contracting Corporation ( Cushman) has completed the construction of the Consolidated Treatment Facility ( CTF) Dechlorination Facility ( Project), associated with the Recycled Water River Discharge, Capital Improvement Project ( CIP) WW 20-
17. Staff inspected the improvements and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
Cushman has submitted lien releases confirming all sub- contractors and suppliers have been paid in full and provided a one- year warranty bond ( based on 10% of the construction contract) for the improvements to be accepted.
Staff requests City Council accept the completed improvements by Cushman for the construction of the CTF Dechlorination Facility, related to the related to the Recycled Water River Discharge, CIP WW 20- 17. 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 Cushman of$ 219, 266 within forty- five ( 45) days after recording the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
On September 13, 2021, City Council awarded a construction contract in the amount of $ 3, 620, 000 to Cushman for the construction of the CTF Dechlorination Facility.
These improvements will remove trace chlorine from the Consolidated Treatment Facility effluent prior to discharging to the San Joaquin River in accordance with the discharge permit requirements.
During construction, contract change orders were issued for a final contract amount of $ 4, 385, 327. The Project' s costs referenced below capture all construction expenditures.
CITY MANAGER' S REPORT PAGE 2
JULY 10, 2023 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY CUSHMAN
CONSTRUCTION FOR THE CTF DECHLORINATION FACILITY, CIP WW 20- 17 Construction costs are as follows:
A. Construction Contract 3, 620, 000
B. Contract Change Orders 765, 327
Total Construction Contract Costs 4, 385, 327
Upon acceptance of the improvements, the performance bond ( Bond No. 107- 407- 647, $ 3, 620, 000 and payment bond ( Bond No. 107- 407- 647, $ 1, 810, 000) will be released and replaced with a one- year warranty bond ( Bond No. 107- 407- 647, 438, 532. 70). 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. Cushman has also provided the necessary lien releases for the materials supplied and completed work.
Staff requests City Council accept the completed improvements by Cushman for the construction of the CTF Dechlorination Facility, associated with the Recycled Water River Discharge, CIP WW 20- 17. 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 Cushman for $ 219, 266 within forty- five ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
Cushman has completed the project pursuant to the construction contract documents. Staff inspected the improvements and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
Cushman has submitted a one- year warranty bond for the improvements to be accepted ( based on 10% of the construction contract) and lien releases confirming all sub- contractors and suppliers have been paid in full. 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.
The performance bond and payment bond will be released and replaced with the oneyear warranty bond ( based on 10% of the contract price) upon City Council' s acceptance of the improvements.
FISCAL IMPACT:
The final construction contract amount with Cushman for the Project is for 4, 385, 327.
CITY MANAGER' S REPORT PAGE 3
JULY 10, 2023 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY CUSHMAN
CONSTRUCTION FOR THE CTF DECHLORINATION FACILITY, CIP WW 20- 17 Adequate funds have been allocated in the FY 2023/ 24 budget to close out the project. With the completion of the Project, staff requests that unused funds be transferred back into the project funding sources.
ATTACHMENTS:
A. Resolution Accepting Public Improvements Constructed by Cushman Construction Corporation for the CTF Dechlorination Facility, Associated with CIP WW 20- 17 Recycled Water River Discharge Project, Authorizing the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds
B. Notice of Completion - CTF Dechlorination Facility, Capital Improvement Project WW 20- 17
CITY MANAGER' S REPORT PAGE 4
JULY 10, 2023 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY CUSHMAN
CONSTRUCTION FOR THE CTF DECHLORINATION FACILITY, CIP WW 20- 17 APPROVALS:
Y
Ken Reed Date
Senior Construction Manager
6// Z3
Brad ylor Date
City Engineer
Cari Date
Financ irector
6 28/ zoz3
Mich I King Date
Assistant City Manager
6` Z- S - 2-O t
Salvador Navarrete Date
City Attorney
S•23
ephen J. Salvatore Date
City Manager
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP ACCEPTING
PUBLIC IMPROVEMENTS CONSTRUCTED BY CUSHMAN CONSTRUCTION
CORPORATION FOR THE CTF DECHLORINATION FACILITY, ASSOCIATED WITH CIP WW 20- 17 RECYCLED WATER RIVER DISCHARGE PRO) ECT,
AUTHORIZING THE FILING OF A NOTICE OF COMPLETION, RELEASE OF
CONTRACT RETENTION, AND RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, on September 13, 2021, City Council awarded a construction contract to Cushman Contracting Corporation ( Cushman) for the construction of the Consolidated Treatment Facility ( CTF) Dechlorination Facility ( Project), associated with the Recycled Water River Discharge, Capital Improvement Project ( CIP) WW 20- 17, in the amount of $ 3, 620, 000, and a 10% construction contingency of $ 362, 000 was authorized for staff to use as necessary to achieve the goals of the Project; and WHEREAS, the scope of work included construction of improvements that will remove trace chlorine from the CTF effluent prior to discharging to the San Joaquin River ( River) in accordance with the discharge permit requirements; and WHEREAS, Cushman has successfully completed the Project at a total cost of 4, 385, 327; and
WHEREAS, staff inspected the improvements and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications; and
WHEREAS, Cushman 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. 107- 407- 647, $ 3, 620, 000 and payment bond ( Bond No. 107- 407- 647, $ 1, 810, 000) will be released and replaced with a one- year warranty bond ( Bond No. 107- 407- 647, $ 438, 532. 70); 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, adequate funds have been allocated in the FY 2023/ 24 budget to close out the Project. With the completion of the Project, staff requests that unused funds be transferred back into the project funding sources; and WHEREAS, staff requests City Council accept the completed improvements by Cushman for the construction of the CTF Dechlorination Facility, associated with the Recycled Water River Discharge, CIP WW 20- 17; 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 Cushman, in the amount of $ 219, 266 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 completed public improvements constructed by Cushman Contracting Corporation for the construction of the CTF Dechlorination Facility, associated with the Recycled Water River Discharge, CIP WW 20- 17, pursuant to the construction contract documents; 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 Cushman, in the amount of $ 219, 266, 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 the City Council of the City of Lathrop approves the unused funds be transferred back into the project funding sources.
The foregoing resolution was passed and adopted this lOth day of July 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 Salvador Navarrete, City Attorney
ATTACHMENT
M M
RECORDING REpUESTED 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 GNEN:
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 AND ZIP CODE
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 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:
Cushman Contracting Corporation.
4. That on the lOth day of July 2023 a work 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: Cushman ContractinQ Corporation
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE AND ZIP CODE
Cushman Contracting Coruoration P. O. Box 147 Goleta, CA 93116
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
CIP WW 20- 17 CTF DECHLORINATION FACILITY
18800 Christopher Way, Lathrop, CA 95330
CITY OF LATHROP
B y:
Stephen J. Salvatore, City Manager Date
That the undersigned has knowledge ofthe contents herein and states under penalty of perjury that the foregoing is true and correct.
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 10, 2023 by Cushman Contracting Corporation 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 10, 2023, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager