ITEM 4. 17
CITY MANAGER' SREPORT
NOVEMBER 18, 2024 CITY COUNCIL SPECIAL MEETING
ITEM: AUTHORIZE THE RELEASE OF CONTRACT
RETENTION, AND PERFORMANCE AND PAYMENT
BONDS FOR THE LATHROP ROAD RESIDENTIAL
DRIVEWAY RECONSTRUCTION, CIP GG 24-7
RECOMMENDATION: Adopt Resolution to Release the Contract Retention, and Performance and Payment Bonds from Dirt
Dynasty, Inc. for the Lathrop Road Residential
Driveway Reconstruction, CIP GG 24-7
SUMMARY:
Dirt Dynasty Inc. (Dirt Dynasty) completed the construction of Capital Improvement Project ( CIP) GG 24-7 for Lathrop Road Residential Driveway Reconstruction Project). The Project consisted of reconstructing the concrete residential driveway at 570 Lathrop Road.
Staff inspected and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications. Dirt Dynasty has submitted lien releases, confirming all sub - contractors and suppliers have been paid in full, and a one- year warranty bond ( based on 10% of the construction contract) for the improvements to be accepted.
Staff requests City Council release the contract retention to Dirt Dynasty in the amount of $ 1, 831, and the performance and payment bonds for the Lathrop Road Residential Driveway Reconstruction, CIP GG 24-7.
BACKGROUND:
In 2017, the City constructed the Lathrop Road Widening that included installation of driveway transitions from the new roadway improvements to existing residential driveways. At that time, the contractor was unable to construct a driveway transition at the property of 570 Lathrop Road. On September 11, 2023, City Council created CIP GG 24-7 to reconstruct the residential driveway at 570 Lathrop Road.
On May 13, 2024, City Council awarded a construction contract to Dirt Dynasty for construction of the Project. The scope of work included sawcutting, removing the existing concrete residential driveway and sidewalk, and reconstructing a new driveway, vertical curb, gutter, and sidewalk improvements at 570 Lathrop Road.
The awarded contract was in the amount of $ 40,92 and a 10% construction contingency of $ 4, 049 was authorized for staff to use as necessary to achieve the goals of the project. The total construction budget for the Project was $ 44, 541.
CITY MANAGER' SREPORT PAGE 2
NOVEMBER 18, 2024 CITY COUNCIL SPECIAL MEETING
AUTHORIZE THE RELEASE OF CONTRACT RETENTION, AND PERFORMANCE
AND PAYMENT BONDS FOR THE LATHROP ROAD RESIDENTIAL DRIVEWAY RECONSTRUCTION, CIP GG 24-7
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. Dirt Dynasty has also submitted lien releases, confirming all subcontractors and suppliers have been paid in full, and a one- year warranty bond based on 10% of the construction contract) for the improvements to be accepted.
Upon Council' sapproval, the performance and payment bonds ( Bond No. GM235983) will be released and replaced with a warranty bond ( Bond No. GM235983, $ 4, 049).
The warranty bond covers any repairs or replacements that become necessary during the one- year period, beginning with this authorization, due to defective materials or workmanship in connection with the completed improvements. Dirt Dynasty also provided the necessary lien releases for the materials supplied and completed work.
Staff requests City Council release the contract retention to Dirt Dynasty in the amount of $ 1, 831, and release the performance and payment bonds for CIP GG 24-
27. REASON FOR RECOMMENDATION:
The Project was completed by Dirt Dynasty pursuant to the contract documents dated May 13, 2024. Staff inspected the improvements and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications.
Upon Council' sapproval, the performance and payment bonds ( Bond No. GM235983) will be released and replaced with a one- year warranty bond ( Bond No. GM235983, 4, 049).
FISCAL IMPACT:
The awarded contract was in the amount of $ 40,92 with a 10% construction contingency for a total construction budget of $ 44, 541. Adequate funds were allocated within the fiscal year 2024/5 budget to close out CIP GG 24-7. With the completion of the Project, staff requests that unused funds be transferred back into the General Fund Street Repair Reserves ( 1010).
ATTACHMENTS:
A. Resolution to Release the Contract Retention, and Performance and Payment Bonds from Dirt Dynasty, Inc. for the Lathrop Road Residential Driveway Reconstruction, CIP GG 24-7
CITY MANAGER' S REPORT PAGE 3
NOVEMBER 18, 2024 CITY COUNCIL SPECIAL MEETING
AUTHORIZE THE RELEASE OF CONTRACT RETENTION, PERFORMANCE AND
PAYMENT BONDS FOR THE LATHROP ROAD RESIDENTIAL DRIVEWAY RECONSTRUCTION, CIP GG 24-7
APPROVALS:
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Angel Abarca Date
Assistant Engineer
Brad Ifiaylor
City Engineer
Cari Ja
Finance rector
Date
1o/ 3o/ 2rsv- 1
Date
Michael King Date
Assistant City Manager
Salvador Navarrete Date
City Attorney
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li•7•ZLiSte en J. Salvatore Date
City Manager
RESOLUTION NO. 24 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO RELEASE
THE CONTRACT RETENTION, AND PERFORMANCE AND PAYMENT BONDS FROM DIRT DYNASTY, INC. FOR THE LATHROP ROAD RESIDENTIAL DRIVEWAY RECONSTRUCTION, CIP GG 24-7
WHEREAS, on September 11, 2023, City Council created Capital Improvement Project ( CIP) GG 24-7 for Lathrop Road Residential Driveway Reconstruction ( Project) to reconstruct the residential driveway at 570 Lathrop Road; and
WHEREAS, on May 13, 2024, City Council awarded a construction contract to Dirt Dynasty, Inc. (Dirt Dynasty) for construction of the Project; and WHEREAS, the scope of work included sawcutting, removing the existing concrete residential driveway and sidewalk, and reconstructing a new driveway, vertical curb, gutter, and sidewalk improvements at 570 Lathrop Road; and WHEREAS, the awarded contract was in the amount of $ 40,92 and a 10% construction contingency of $ 4, 049 was authorized for staff to use as necessary to achieve the goals for a total construction budget of $44, 541; and WHEREAS, Dirt Dynasty has completed the construction of the project; staff inspected and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications; and WHEREAS, Dirt Dynasty has provided the necessary lien releases for the materials supplied and completed work; and
WHEREAS, Dirt Dynasty has submitted a one- year warranty bond ( based on 10% of total project cost) for the improvements being accepted; and WHEREAS, upon City Council' s
approval, the performance and payment bonds
Bond No. GM235983) will be released and replaced with a one- year warranty bond Bond No. GM235983, $4, 049); and
WHEREAS, adequate funds were allocated within the fiscal year 2024/5 budget to close out CIP GG 24-7. With the completion of this project, staff requests that unused funds be transferred back into the General Fund Street Repair Reserves 1010); and
WHEREAS, staff requests City Council release the contract retention to Dirt Dynasty in the amount of $ 1, 831, and release the performance and payment bonds to CIP GG 24-7.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby Release the contract retention to Dirt Dynasty in the amount of 1, 831, and the performance and payment bonds to CIP GG 24-7; and BE IT FURTHER RESOLVED, that City Council also authorizes the transfer of the unused project funds into the General Fund Street Repair Reserves ( 1010).
The foregoing resolution was passed and adopted this 18th day of November 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