ITEM 4. 11
CITY MANAGER' S REPORT
JULY 8, 2024 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
KNIFE RIVER FOR LATHROP ROAD PAVEMENT
REPAIR, CIP PS 24- 35
RECOMMENDATION: Adopt Resolution Accepting Public Improvements Constructed by Knife River for Lathrop Road
Pavement Repair, CIP PS 24- 35, Authorizing the
Filing of a Notice of Completion, the Release of
Contract Retention, and the Release of Performance
and Payment Bonds
SUMMARY:
On May 13, 2024, City Council created Capital Improvement Project ( CIP) PS 24- 35 for Lathrop Road Pavement Repair ( Project) to reconstruct damaged pavement on the eastbound travel lane of Lathrop Road near the easterly rail road grade separation. The Project consisted of grinding 3" of existing asphalt, installing tensar glasgrid, repaving 3" of asphalt, and installing thermoplastic striping. At the same Council meeting, City Council awarded a construction contract to DSS Company dba Knife River Construction ( Knife River) for construction of the Project in the amount of $ 75, 000 plus a 15% construction contingency in the amount of $ 11, 250 for a total approved construction budget of $ 86, 250.
Knife River has completed construction of the Project. Staff inspected the improvements which have been deemed complete and in accordance with the approved plans and specifications by the City Engineer. Knife River 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 is requesting City Council accept the improvements constructed by Knife River for Lathrop Road Pavement Repair, CIP PS 24- 35. Staff also requests City Council to authorize the filing of a Notice of Completion with the San Joaquin County Clerk, release of contract retention to Knife River in the amount of $ 3, 804. 21 within fortyfive ( 45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
Staff evaluated the existing pavement conditions on Lathrop Road and determined the need to repair approximately 975 linear feet along the eastbound travel lane near the easterly rail road grade separation.
CITY MANAGER' SREPORT PAGE 2
JULY 8, 2024 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY KNIFE RIVER FOR LATHROP ROAD PAVEMENT REPAIR, CIP PS 24- 35
On May 13, 2024, City Council created CIP PS 24- 35 and awarded a construction contract to Knife River for construction of the Project. The scope of work consisted of grinding 3" of existing asphalt, installing tensar glasgrid, repaving 3" of asphalt, and installing thermoplastic striping with reflective pavement markers.
The awarded contract was in the amount of $ 75, 000 and a 15% construction contingency of $ 11, 250 was authorized for staff to use as necessary to achieve the goals of the project. The total construction budget for the Project was $ 86, 250.
During construction, a contract change order of $ 1, 084. 13 was issued for a final contract amount of $ 76, 084. 13.
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. Knife River has also 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.
Upon acceptance of the improvements, the performance and payment bonds ( No. 190- 054-40/ 107991763) will be released and replaced with a warranty bond ( Bond No. 190 -054 -040 -W/ 107991763 -W, $75, 000). 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. Knife River has also provided the necessary lien releases for the materials supplied and completed work.
Staff requests City Council accept the improvements constructed by Knife River for the Project. Staff is also requesting City Council to authorize the filing of a Notice of Completion with the San Joaquin County Clerk, release of contract retention to Knife River in the amount of $ 3, 804. 21 within forty-ive (45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
Knife River completed the Project pursuant to the contract documents dated May 13, 2024. 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 ( No. 190- 054-40/ 107991763) will be released and replaced with a one- year warranty bond ( Bond No. 190 - 054 - 040 -W/ 107991763 - W, $75, 000) upon City Council' sacceptance of the improvements.
CITY MANAGER' S REPORT PAGE 3
JULY 8, 2024 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY KNIFE RIVER FOR LATHROP ROAD PAVEMENT REPAIR, CIP PS 24- 35
FISCAL IMPACT:
The final construction contract amount with Knife River for the Project is $ 76, 084. 13.
Sufficient funds were allocated within CIP PS 24- 35 to close out the project. With the completion of this project, staff requests that unused funds be transferred back into the General Fund Street Repair Reserves ( 1010).
ATTACHMENTS:
A. Resolution Accepting Public Improvements Constructed by Knife River for Construction of Lathrop Road Pavement Repair, CIP PS 24- 35, Authorizing the Filing of a Notice of Completion, Releasing of Contract Retention, and Releasing of Performance and Payment Bonds
B. Notice of Completion - Lathrop Road Pavement Repair, CIP PS 24- 35 CITY MANAGER' S REPORT PAGE 4
JULY 8, 2024 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY KNIFE RIVER FOR LATHROP ROAD PAVEMENT REPAIR, CIP PS 24- 35
APPROVALS:
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Ange Abarca Date
Assistant Engineer
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Ken Reed Date
Senior Construction Manager
Brad aylor
City Engineer
Cari Jam
Finance rector
Date
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Date
Michael King Date
Assistant City Manager
Salvador Navarrete Date
City Attorney
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Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 24 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
ACCEPTING PUBLIC IMPROVEMENTS CONSTRUCTED BY KNIFE RIVER FOR LATHROP ROAD PAVEMENT REPAIR, CIP PS 24- 35, AUTHORIZING THE
FILING OF A NOTICE OF COMPLETION, THE RELEASE OF CONTRACT
RETENTION, AND THE RELEASE OF PERFORMANCE AND PAYMENT BONDS WHEREAS, on May 13, 2024, City Council created Capital Improvement Project ( CIP) PS 24- 35 for Lathrop Road Pavement Repair ( Project) to reconstruct damaged pavement on the eastbound travel lane of Lathrop Road near the easterly rail road grade separation; and
WHEREAS, the Project consisted of grinding 3" of existing asphalt, installing tensar glasgrid, repaving 3" of asphalt, and installing thermoplastic striping; and WHEREAS, at the same Council meeting, City Council awarded a construction contract to DSS Company dba Knife River Construction ( Knife River) for construction of the Project in the amount of $ 75, 000 plus a 15% construction contingency in the amount of $ 11, 250 for a total approved construction budget of $86, 250; and WHEREAS, Knife River has completed construction of the Project; and WHEREAS, staff inspected the improvements which have been deemed complete and in accordance with the approved plans and specifications by the City Engineer; and
WHEREAS, Knife River 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; and WHEREAS, the performance and payment bonds ( No. 190- 054- 040/ 107991763) will be released and replaced with a one- year warranty bond ( Bond No. 190 - 054 -040 -W/ 107991763 - W, $75, 000) upon City Council' s acceptance of the
improvements; and
WHEREAS, staff requests City Council accept the improvements constructed by Knife River for the Project; and
WHEREAS, staff is also requesting City Council to authorize the filing of a Notice of Completion with the San Joaquin County Clerk, release of contract retention to Knife River in the amount of $ 3, 804. 21 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 public improvements constructed by Knife River for Lathrop Road Pavement Repair, CIP PS 24- 35, for a total construction cost of 76, 084. 13; 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 Knife River, in the amount of $ 3, 804. 21 within forty-ive (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 8th day of July 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 of recording fees ( GC 11922)
SPACE ABOVE THIS LINE FOR RECORDER' SUSE
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 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, ifthere 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 24- 35 Lathrop Road Pavement Repair by DSS Company dba Knife River Construction.
4. That on the 8th day of July 2024 a work of improvement on the real property herein described was completed.
5. That the name ofthe original contractor, if any, for said work of improvement was: DSS Company dba Knife River Construction.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
DSS Company dba 655 West Clay Street Stockton CA 95206
Knife River Construction
7. That the real property herein referred to is situated in the State of California, and is described as follows:
City of Lathrop County of San Joaquin,
Project No. CIP PS 24- 35 Lathrop Road Pavement Repair
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.
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 8, 2024 by DSS Company dba Knife River Construction 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 8, 2024, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager
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