ITEM 4. 14
CITY MANAGER' SREPORT
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
D. L. FALK CONSTRUCTION, INC. FOR THE POLICE
PROPERTY AND EVIDENCE BUILDING, CIP GG 21- 13
RECOMMENDATION: Adopt Resolution to Accept Public Improvements Constructed by D. L. Falk Construction, Inc. for Police Property and Evidence Building, 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:
D. L. Falk Construction, Inc. (D. L. Falk Construction) has completed construction of the Police Property and Evidence Building, 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.
D. L. Falk Construction 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 D. L.
Falk Construction 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 D. L. Falk Construction of $319, 071 within forty-ive (45) days after filing the Notice of Completion and the release of performance and payment bonds.
BACKGROUND:
On June 12, 2023, City Council awarded a construction contract to D. L. Falk Construction for the Project in the amount of $ 5, 494, 000, authorized a 10% construction contingency of $ 549, 400, and authorized staff to spend up to this amount as necessary to achieve the goals of the Project.
The Project scope consisted of constructing a Property & Evidence Building for the Lathrop Police Department. The scope of work also included concrete and asphalt site paving, perimeter and internal fencing, and extensive modifications to increase building and site security.
On August 12, 2024, Council approved the payment of Contract Change Orders ( CCO) 4, 5 and 6 for $ 147, 72. On November 18, 2024, Council approved a budget CITY MANAGER' SREPORT PAGE 2
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY D. L. FALK
CONSTRUCTION, INC. FOR THE POLICE PROPERTY AND EVIDENCE BUILDING, CIP GG 21- 13
amendment for the Project for $ 340, 00 to provide additional project funding for anticipated costs and approved the $ 222,62 cost of CCO 8. Eight ( 8) CCOs totaling 887, 405 were issued during construction. In summary, the total Project budget authorized by City Council was $ 6, 531, 612and the final contract price is $ 6, 381, 405.
Upon acceptance of the improvements, the performance bond ( Bond No. 57BCSIS2375, $ 5, 494, 000) and payment bond ( Bond No. 57BCSIS2375, 5, 494, 000) will be released and replaced with a one- year warranty bond ( Bond No. 57BCSIS2375- M, $638, 140) upon City Council' s
acceptance 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.
D. L. Falk Construction has also provided the necessary lien releases for the materials supplied and completed work.
Staff request City Council accept the improvements constructed by D. L. Falk Construction for the Police Property and Evidence Building, 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 D. L. Falk Construction of $319, 071 within forty-ive (45) days after the recording of the Notice of Completion and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
D. L. Falk Construction has completed the Project pursuant to the contract documents dated June 12, 2023. Staff inspected the improvements, and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
D. L. Falk Construction 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.
CITY MANAGER' S REPORT PAGE 3
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY D. L. FALK
CONSTRUCTION, INC. FOR THE POLICE PROPERTY AND EVIDENCE BUILDING, CIP GG 21- 13
FISCAL IMPACT:
The final construction contract amount with D. L. Falk Construction for the Project is 6, 381, 405. Adequate funds have been allocated in the FY 2024-5 budget to the Police Property and Evidence Building, 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.
ATTACHMENTS:
A. Resolution to Accept Public Improvements Constructed by D. L. Falk Construction, Inc. for the Police Property and Evidence Building, 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 - Police Property and Evidence Building, CIP GG 21- 13 CITY MANAGER' S REPORT PAGE 4
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY DL FALK
CONSTRUCTION, INC. FOR POLICE PROPERTY AND EVIDENCE BUILDING, CIP GG 21- 13
APPROVALS:
311&/ 4664 --
Steven Hollenbeak
Assistant Engineer
Brad aylor
City ngineer
Cari Jam
Finance • U ctor
1. z7, 2s
Date
Date
LiAthin. sS4102M5
Date
11 • 30 • 202. 3 -
Michael King Date
Assistant City Manager
Salvador Navarrete Date
City Attorney
3.7.25 Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY DL FALK CONSTRUCTION, INC.
FOR POLICE PROPERTY AND EVIDENCE BUILDING, 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 June 12, 2023, City Council awarded a construction contract to DL Falk Construction, Inc. (DL Falk Construction) for Police Property and Evidence Building, CIP GG 21- 13 (Project) in the amount of $ 5, 494, 000 with a 10% construction contingency of $ 549, 400, 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 constructing a Property and Evidence Building for Lathrop Police Department; 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, via resolution 24- 5608 on August 12, 2024, City Council approved the payment of Contract Change Orders ( CCO) 4, 5 and 6 for $ 147, 72; and WHEREAS, via resolution 24- 5674 on November 18, 2024, City Council approved a $ 340, 00 budget amendment for the Project and approved CCO 8 for 222,62; and
WHEREAS, during construction, eight ( 8) contract change orders totaling 887, 405 were issued, for a final contract cost of $6, 381, 405; and WHEREAS, DL Falk Construction 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. 57BCSIS2375, $ 5, 494, 000) and payment bond ( Bond No. 57BCSIS2375, $ 5, 494, 000) will be released and replaced with a one- year warranty bond ( Bond No. 57BCSIS2375- M, $638, 140) upon City Council' sacceptance 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 Police Property & Evidence Building, 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 DL Falk Construction for Police Property and Evidence Building, 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 DL Falk Construction in the amount of $ 319, 071 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 DL Falk Construction for Police Property and Evidence Building, CIP GG 21- 13, pursuant to the contract documents dated June 12, 2023; 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 DL Falk Construction in the amount of $ 319, 071 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
ATTACHMENT
Q "
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 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: DL Falk Construction, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
DL Falk Construction, Inc. 3526 Investment Blvd. Hayward, CA 94545
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 Police Property and Evidence Building
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 DL Falk Construction, Inc. 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 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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