ITEM 4. 18
CITY MANAGER' SREPORT
NOVEMBER 18, 2024 CITY COUNCIL SPECIAL MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
DSS COMPANY DBA KNIFE RIVER CONSTRUCTION
FOR PAVEMENT REHABILITATION, CIP PS 24-9
RECOMMENDATION: Adopt Resolution to Accept Public Improvements Constructed by DSS Company dba Knife River
Construction for the Pavement Rehabilitation CIP PS
24-9, and Authorize the Filing of a Notice of
Completion, Release of Contract Retention, Release
of Performance and Payment Bonds, and File a
One -Year Maintenance Warranty Bond
SUMMARY:
DSS Company dba Knife River Construction ( Knife River) completed construction of the Capital Improvement Project ( CIP) PS 24-9 for Pavement Rehabilitation Project). The Project repaired the deteriorated pavement on Cherry Hills Drive, Cherry Hills Court, Kilarney Drive, and Kilarney Court. Staff inspected and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications.
Knife River has 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 requests City Council accept the improvements constructed by Knife River for the Project. Staff also requests City Council 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 $ 31, 446 within forty-ive (45) days after the recording of the Notice of Completion, release of performance and payment bonds, and file of a oneyear maintenance warranty bond.
BACKGROUND:
On February 12, 2024, City Council awarded a construction contract to Knife River for construction of the Project to correct existing road deficiencies in the Woodfield community area. The scope of work consisted of a full -reconstruction pavement treatment on Cherry Hills Drive, Cherry Hills Court, Kilarney Drive, and Kilarney Court.
Knife River completed the construction of the Project. Staff inspected the improvements and deemed the improvements complete and in accordance with the approved plans and specifications by the City Engineer.
CITY MANAGER' S REPORT PAGE 2
NOVEMBER 18, 2024 CITY COUNCIL SPECIAL MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY DSS COMPANY DBA KNIFE RIVER CONSTRUCTION FOR PAVEMENT REHABILITATION, CIP PS 24- 29 The awarded contract was in the amount of $ 582, 982 and a 10% construction contingency of $ 58, 298 was authorized for staff to use as necessary to achieve the goals of the Project. The total construction budget for the Project was $ 641, 280.
During construction, contract change orders totaling $ 45, 934 were issued for a final contract amount of $ 628, 916. Theconstruction costs referenced below capture all expenditures.
Construction costs are as follows:
A. Construction Contract Amount $ 582, 982
B. Approved Change Order 1 $ 30,80
C. Approved Change Order 2 $ 15, 554
Total Construction Costs $ 628, 916
The Project has been completed within original contract period and in accordance with the plans, specifications, and City of Lathrop standards. Upon acceptance of the improvements, the performance and payment bonds ( Bond No. 190- 054- 038/ 107885655) will be released and replaced with a warranty bond ( Bond No. 190- 054-38/ 107885655, $62, 892). 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 is requesting City Council accept the public improvements constructed by Knife River 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 Knife River in the amount of $ 31, 446 within forty-ive (45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
The Project was completed by Knife River pursuant to the contract documents dated February 12, 2024. Staff inspected the improvements and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications. The performance and payment bonds ( Bond No. 190- 054- 038/ 107885655) will be released and replaced with a one- year warranty bond ( Bond No. 190- 054-38/ 107885655, $62, 892) upon City Council' s acceptance of the
improvements.
CITY MANAGER' S REPORT PAGE 3
NOVEMBER 18, 2024 CITY COUNCIL SPECIAL MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY DSS COMPANY DBA KNIFE RIVER CONSTRUCTION FOR PAVEMENT REHABILITATION, CIP PS 24- 29 FISCAL IMPACT:
The awarded contract was in the amount of $ 582, 982 with a 10% construction contingency for a total construction budget of $ 641, 280. During construction, contract change orders totaling $ 45, 934 were issued for a final contract amount of 628, 916.
Adequate funds were allocated in Fiscal Year 2024/5budget to close out CIP PS 24-
29. 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 to Accept Public Improvements Constructed by DSS Company dba Knife River Construction for the Pavement Rehabilitation CIP PS 24- 29, and Authorize the Filing of a Notice of Completion, Release of Contract Retention, Release of Performance and Payment Bonds, and File a One -Year Maintenance Warranty Bond
B. Notice of Completion - Pavement Rehabilitation, CIP PS 24-9 CITY MANAGER' S REPORT PAGE 4
NOVEMBER 18, 2024 CITY COUNCIL SPECIAL MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY DSS COMPANY DBA KNIFE RIVER CONSTRUCTION FOR PAVEMENT REHABILITATION, CIP PS 24- 29 APPROVALS:
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Angel Abarca Date
Assistant Engineer
Brad( aylor
City Engineer
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Finance D'? ctor
Date
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Date
Michael King Date
Assistant City Manager
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Salvador Navarrete Date
City Attorney
11.4-- 24-
Stephei J. Salvatore Date
City Manager
RESOLUTION NO. 24 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY DSS COMPANY DBA KNIFE RIVER CONSTRUCTION FOR PAVEMENT REHABILITATION, CIP PS 24- 29, AND AUTHORIZE THE FILING OF A NOTICE OF COMPLETION, RELEASE
OF CONTRACT RETENTION, RELEASE OF PERFORMANCE AND PAYMENT
BONDS, AND FILE A ONE- YEAR MAINTENANCE WARRANTY BOND
WHEREAS, on February 12, 2024, City Council awarded a construction contract to DSS Company dba Knife River Construction ( Knife River) for construction of Capital Improvement Project ( CIP) PS 24-9 for Pavement Rehabilitation ( Project) to correct existing road deficiencies in the Woodfield community area; and WHEREAS, the Project repaired the deteriorated pavement on Cherry Hills Drive, Cherry Hills Court, Kilarney Drive, and Kilarney Court; and WHEREAS, the awarded contract was in the amount of $ 582, 982 and a 10% construction contingency of $ 58, 298 was authorized for staff to use as necessary to achieve the goals of the Project; and
WHEREAS, during construction, contract amendments totaling $ 45, 934 were issued for a final contract amount of $ 628, 916; and
WHEREAS, Knife River 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, Knife River has provided the necessary lien releases for the materials supplied and completed work; and
WHEREAS, Knife River has submitted a one- year warranty bond ( based on 10% of total project cost) for the improvements being accepted; and WHEREAS, the performance and payment bonds ( Bond No. 190- 054- 038/ 107885655) will be released and replaced with a one- year warranty bond ( Bond No. 190- 054-38/ 10785655, $62, 892) upon City Council' s acceptance of the
improvements; and
WHEREAS, adequate funds were allocated in Fiscal Year 2024/5 budget to close out CIP PS 24-9. 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 accept the public improvements constructed by Knife River for Pavement Rehabilitation, CIP PS 24- 29; and WHEREAS, staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk upon acceptance of the improvements and the release of the contract retention to Knife Rive, in the amount of $ 31, 446, within forty-ive (45) days after the recording of the Notice of Completion and the release of the 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 Pavement Rehabilitation, CIP PS 24- 29, pursuant to the contract documents dated February 12, 2024; 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, the release of the contract retention to Knife River, in the amount of $ 31, 446, within forty-ive (45) days after the recording of the Notice of Completion, the release of the performance and payment bonds, and the file of a one- year maintenance warranty bond; 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
ATTACHMENT
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
CITY OF LATHROP
ATTN: CITY CLERK
390 TOWNE CENTRE DRIVE
LATHROP, CA 95330
Exemptfrom payment ofrecording 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, if there is more than one owner, are set forth in the preceding paragraph.
3. That the nature oftitle or the stated owner, or if more than one owner, then of the stated owner and co -owners is:
Project No. CIP PS 24-9 Pavement Rehabilitation by DSS Company dba Knife River Construction
4. That on the 18th day of November 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: 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 24-9 Pavement Rehabilitation by DSS Company dba Knife River Construction
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 November 18, 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 ofthe City Council adopted on November 18, 2024, and the grantee consents to recordation thereofby its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager
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