ITEM 4. 19
CITY MANAGER' SREPORT
FEBRUARY 12, 2024 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
COMMERCIAL PUMP & MECHANICAL FOR THE WELL
10 TESTING, ANALYSIS AND MODIFICATIONS, CIP
PW 22- 37
RECOMMENDATION: Adopt Resolution Accepting Public Improvements Constructed by Commercial Pump & Mechanical for
the Well 10 Testing, Analysis and Modifications, CIP
PW 22- 37, Authorizing the Filing of a Notice of
Completion, Release of Contract Retention, and
Release of Performance and Payment Bonds
SUMMARY:
Commercial Pump & Mechanical ( CPM) has completed the construction of improvements associated with CIP PW 22- 37 (Project) for Well 10 Testing, Analysis and Modifications ( Project). Staff inspected the improvements and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
CPM has submitted lien releases confirming all sub -contractors and suppliers have been paid in full and provided a one- year warranty bond for the improvements to be accepted.
Staff requests City Council accept the completed improvements constructed by CPM 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 CPM of $ 14, 611 within forty-ive (45) days after recording the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
On February 14, 2022, City Council awarded a construction contract to CPM for the construction contract of the Project for $ 87, 664 and an additional $ 112, 336 authorized for contingencies related to the construction of the Project. During the construction, contract change orders ( CCO) were issued by staff pursuant to the approved contingency or approved by City Council for a total final contract amount of $ 378, 20. The costs referenced below include all construction expenditures associated with the Project:
A. Construction Contract
B. Contract Change Orders
87, 664
290, 616
Total Construction Contract Costs $ 378, 20
CITY MANAGER' S REPORT PAGE 2
FEBRUARY 12, 2024 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY COMMERCIAL PUMP & MECHANICAL FOR THE WELL 10 TESTING, ANALYSIS AND MODIFICATIONS, CIP PW 22- 37
Upon acceptance of the improvements, the performance bond and payment bond will be released and replaced with a one- year warranty bond ( Bond No. 5958118, 37, 748). 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. CPM has also provided the necessary lien releases for the materials supplied and completed work.
Staff requests City Council accept the improvements constructed by CPM for the Well 10 Testing, Analysis and Modifications, CIP PW 22- 37. 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 CPM for $ 14, 611 within forty-ive (45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
CPM has completed the Project pursuant to the construction contract documents dated November 14, 2022 and subsequent CCOs. Staff inspected the improvements and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
CPM has submitted a one- year warranty bond for the improvements to be accepted 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 upon City Council' s acceptance of the improvements.
FISCAL IMPACT:
The final construction cost amount with CPM for the Project is $ 378, 20.
Adequate funds have been allocated in the FY 2023-4 budget to close out for the Well 10 Testing, Analysis and Modifications, CIP PW 22- 37. With the completion of the Project, staff requests that unused funds be transferred back to the original funding sources.
Staff requests that unused funds be transferred back into the Water Replacement CIP Fund ( 5600).
CITY MANAGER' S REPORT PAGE 3
FEBRUARY 12, 2024 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY COMMERCIAL PUMP & MECHANICAL FOR THE WELL 10 TESTING, ANALYSIS AND MODIFICATIONS, CIP PW 22- 37
ATTACHMENTS:
A. Resolution to Accept Public Improvements Constructed by Commercial Pump Mechanical for the Well 10 Testing, Analysis and Modifications, CIP PW 22- 37, Authorizing the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds B. Notice of Completion - Well 10 Testing, Analysis and Modifications, CIP PW 22- 37
C. Vicinity Map
CITY MANAGER' SREPORT PAGE 4
FEBRUARY 12, 2024 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY COMMERCIAL PUMP & MECHANICAL FOR THE WELL 10 TESTING, ANALYSIS AND MODIFICATIONS, CIP PW 22- 37
APPROVALS:
Greg
Senior
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Civil
son
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Date
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Engineer
Brad Taylor
City Engineer
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Date
1/ 2-5/021- 4
Cari James Date
Finance Director
Michael King
Assistant City anager
Date
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Salvador Navarrete Date
City Attorney
Steen J. Salvatore Date
City Manager
2./ 4174
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP ACCEPTING
PUBLIC IMPROVEMENTS CONSTRUCTED BY COMMERCIAL PUMP &
MECHANICAL FOR THE WELL 10 TESTING, ANALYSIS AND MODIFICATIONS, CIP PW 22- 37, AUTHORIZING THE FILING OF A NOTICE OF COMPLETION,
RELEASE OF CONTRACT RETENTION, AND RELEASE OF PERFORMANCE AND
PAYMENT BONDS
WHEREAS, Well 10 Testing, Analysis and Modifications ( Project), CIP PW 22- 37 was created to address sanding and other maintenance items for the City' s Well 10, one of four active wells comprising the City' s groundwater supply; and WHEREAS, on February 14, 2022, City Council awarded a construction contract in the amount of $ 87, 664 to Commercial Pump & Mechanical ( CPM) for the construction of the Project; and
WHEREAS, the scope of work included recommended maintenance and repairs, in addition to testing and analysis to evaluate whether additional modifications are needed to improve the performance and efficiency of Well 10.; and WHEREAS, during construction, contract change orders were issued to CPM in the amount of $ 290, 616 for a final contract amount of $ 378, 20; 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, CPM 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. 5958118, $87, 664) and payment bond ( Bond No. 5958118, $ 43, 832) will be released and replaced with a one- year warranty bond ( Bond No. 5958118, $ 37, 748) 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, adequate funds have been allocated in the FY 2023-4 approved budget to close out the Project. With the completion of the Project, staff requests that unused funds be transferred back to the source CIP Fund ( 5600); and WHEREAS, staff request City Council accept the completed public improvements constructed by CPM for the Well 10 Testing, Analysis and Modifications, CIP PW 22- 37; 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 CPM in the amount of $ 14, 611 within forty-ive (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 CPM for Fueling Facility Tank Footings, CIP PW 22- 37, pursuant to the contract documents dated February 14, 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 CPM, in the amount of $ 14, 611, within forty-ive (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 Water Replacement CIP Fund 5600).
The foregoing resolution was passed and adopted this 12th day of February, 2024 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
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
CITY OF LATHROP
ATTN: CITY CLERK
390 TOWNE CENTRE DRIVE
LATHROP, CA 95330
Exempt from payment ofrecording fees ( GC 11922)
ATTACHMENT
tr3
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 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 the title of stated owner, or if more than one owner, then of the stated owner and co - owners is fee ( e.g. fee, leasehold, joint tenancy, etc.).
4. That on the 12th day of February, 2024 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: Commercial Pump & Mechanical
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY
Commercial Pump & Mechanical 11254 Midway Chico,
7. That the real property herein referred to is situated in the City of Lathrop State of California, and is described as follows:
CIP PW 22- 37 Well 10 Testing, Analysis and Modifications, Lathrop, CA 95330 That the undersigned has knowledge of the contents herein and states under penalty ofperjury that the foregoing is true and correct.
STATE AND ZIP CODE
CA 95928
County of San Joaquin,
CITY OF LATHROP
By:
By:
Stephen J. Salvatore, City Manager Date
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 February 12, 2024 by Commercial Pump & Mechanical to the City ofLathrop, 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 February 12, 2024, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager
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