ITEM 4. 13
CITY MANAGER' S REPORT
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
BAGLEY ENTERPRISES, INC. FOR THE CORPORATION
YARD FUELING FACILITY, CIP GG 21- 13
RECOMMENDATION: Adopt Resolution to Accept Public Improvements Constructed by Bagley Enterprises, Inc. for the
Corporation Yard Fueling Facility, CIP GG 21- 13, and
Authorize the Filing of a Notice of Completion,
Release of Contract Retention and Release of
Performance and Payment Bonds
SUMMARY:
Bagley Enterprises, Inc. ( Bagley Enterprises) has completed construction of Corporation Yard Fueling Facility, Capital Improvement Project ( CIP) GG 21- 13 Project). Staff inspected the improvements, and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
Bagley Enterprises has submitted lien releases confirming all subcontractors 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 request City Council accept the completed improvements constructed by Bagley Enterprises for the Project. Staff also request City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk -Recorder, the release of contract retention to Bagley Enterprises of $ 16, 761 within forty-ive (45) days after filing the Notice of Completion and the release of performance and payment bonds.
BACKGROUND:
On January 8, 2024, City Council awarded a construction contract to Bagley Enterprises for the Project in the amount of $ 335, 210, approved a 20% construction contingency of $67, 042, and authorized staff to spend up to this amount as necessary to achieve the goals of the Project.
The Project comprised the construction of a fueling facility. The scope of work included anchoring city -furnished gasoline, diesel and diesel exhaust fluid ( DEF) tanks in capacities of 5, 000, 3, 000 and 1, 000 gallons respectively. All additional components were supplied and installed by Bagley Enterprises, including fuel and DEF dispensers, pumps, hoses, nozzles and piping. Also included in the scope of work was a FuelMaster kiosk with software and connections to allow staff to track fuel usage.
CITY MANAGER' S REPORT PAGE 2
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY BAGLEY ENTERPRISES, INC. FOR THE CORPORATION YARD FUELING FACILITY, CIP GG 21- 13 No contract change orders were issued during the construction of the Project; therefore, the final contract price of the Project is $ 335, 210. Upon acceptance of the improvements, the performance bond ( Bond No. 66926354, $335, 210) and payment bond ( Bond No. 66926354, $ 335, 210) will be released and replaced with a one- year warranty bond ( Bond No. 66926354, $33, 521) upon City Council' sacceptance of the improvements. 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. Bagley Enterprises has also provided the necessary lien releases for the materials supplied and completed work.
Staff request City Council accept the improvements constructed by Bagley Enterprises for Corporation Yard Fueling Facility, CIP GG 21- 13. Staff also request City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk - Recorder, the release of contract retention to Bagley Enterprises of $ 16, 761 within forty-ive (45) days after the recording of the Notice of Completion and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
Bagley Enterprises has completed the Project pursuant to the contract documents dated January 8, 2024. Staff inspected the improvements, and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
Bagley Enterprises 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 upon City Council' sacceptance of the improvements.
FISCAL IMPACT:
The final construction contract amount with Bagley Enterprises for the Project is 335, 210. Adequate funds have been allocated in the adopted FY 2024-5 budget to Corporation Yard Fueling Facility, CIP GG 21- 13 to close out the Project. With the completion of the Project, staff request that unused funds be transferred back to the original funding source.
CITY MANAGER' S REPORT PAGE 3
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY BAGLEY ENTERPRISES, INC. FOR THE CORPORATION YARD FUELING FACILITY, CIP GG 21- 13 ATTACHMENTS:
A. Resolution to Accept Public Improvements Constructed by Bagley Enterprises, Inc. for Corporation Yard Fueling Facility, CIP GG 21- 13 and Authorize the Filing of a Notice of Completion, Release of Contract Retention and Release of Performance and Payment Bonds
B. Notice of Completion - Corporation Yard Fueling Facility, CIP GG 21- 13 CITY MANAGER' SREPORT PAGE 4
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY BAGLEY ENTERPRISES, INC. FOR CORPORATION YARD FUELING FACILITY, CIP GG 21- 13 APPROVALS:
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Steven Hollenbeak Date
Assistant Engineer
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City Engineer
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Finance Ii ector
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Michael King Date
Assistant City Manager
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Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
5.-15
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY BAGLEY ENTERPRISES, INC. FOR THE CORPORATION YARD FUELING FACILITY, CIP GG 21- 13, AND
AUTHORIZE THE FILING OF A NOTICE OF COMPLETION, RELEASE OF
CONTRACT RETENTION AND RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, on January 8, 2024, City Council awarded a construction contract to Bagley Enterprises, Inc. (Bagley Enterprises) for Corporation Yard Fueling Facility, CIP GG 21- 13 (Project) in the amount of $335, 210 and approved a 20% construction contingency of $67, 042, and authorized staff to spend up to this amount as necessary to achieve the goals of the Project; and
WHEREAS, the scope of work consisted of providing and installing components for a fueling facility; and
WHEREAS, staff inspected the improvements, and the City Engineer has deemed the improvements complete and in accordance with the approved plans and specifications; and
WHEREAS, no change orders were issued during construction; therefore, the final contract cost is $ 335, 210; and
WHEREAS, Bagley Enterprises 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. 66926354, $335, 210) and payment bond ( Bond No. 66926354, $ 335, 210) will be released and replaced with a one- year warranty bond ( Bond No. 66926354, $ 33, 521) 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 2024-5 budget to Corporation Yard Fueling Facility, CIP GG 21- 13 to close out the Project. With the completion of the Project, staff request that unused funds be transferred back to the source Fund; and
WHEREAS, staff request City Council accept the public improvements constructed by Bagley Enterprises for Corporation Yard Fueling Facility, CIP GG 21- 13; and
WHEREAS, staff also request City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk -Recorder, the release of contract retention to Bagley Enterprises in the amount of $ 16, 761 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 Bagley Enterprises for Corporation Yard Fueling Facility, CIP GG 21- 13, pursuant to the contract documents dated January 8, 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 - Recorder, the release of the contract retention to Bagley Enterprises in the amount of $ 16, 761 within forty-ive (45) days after the recording of the Notice of Completion, the release of the performance and payment bond; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop approves the transfer of unused funds back to the original funding source.
The foregoing resolution was passed and adopted this 12th day of May 2025 by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, 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
Exemptfrom payment ofrecording fees ( GC 11922)
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
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 title (e.g. fee title, leasehold, joint tenancy, etc.).
4. That on the 12th day of May 2025 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: Bagley Enterprises, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
Bagley Enterprises, Inc. 2370 Maggio Circle Lodi, CA 95240
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 GG 21- 13 Corporation Yard Fueling Facility
That the undersigned has knowledge of the contents herein and states under penalty ofperjury that the foregoing is true and correct.
CITY OF LATHROP
By:
Stephen J. Salvatore, City Manager Date
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 May 12, 2025 by Bagley Enterprises, Inc. to the City of Lathrop, a political corporation and/ or governmental agency, is hereby accepted by the undersigned officer or agent on behalfofthe City Council pursuant to authority conferred by minute action of the City Council adopted on May 12, 2025, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager
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