ITEM 4. 19
CITY MANAGER' S REPORT
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
CONSOLIDATED ENGINEERING, INC. FOR
CONSTRUCTION OF MCKINLEY AVENUE PAVEMENT
REHABILITATION, CIP PS 23- 18
RECOMMENDATION: Adopt Resolution to Accept Public Improvements Constructed by Consolidated Engineering, Inc. for
Construction of McKinley Avenue Pavement
Rehabilitation, CIP PS 23- 18, and Authorize the
Filing of a Notice of Completion, Release of Contract
Retention, and Release of Performance and Payment
Bonds
SUMMARY:
Consolidated Engineering, Inc. (Consolidated Engineering) completed construction of Capital Improvement Project ( CIP) PS 23- 18 for McKinley Avenue Pavement Rehabilitation ( Project) to repair the deteriorated pavement surface on McKinley Avenue from Louise Avenue to Yosemite Avenue. The scope of work included reconstructing the road' sstructural section, wearing course, and installation of new striping.
Consolidated Engineering completed construction of the Project. Staff inspected and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications. Consolidated Engineering 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 request City Council accept the improvements constructed by Consolidated Engineering for the Project. Staff also request City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, release of contract retention to Consolidated Engineering, in the amount of $ 60, 939, within forty-ive (45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
On August 12, 2024, City Council awarded a construction contract to Consolidated Engineering for construction of CIP PS 23- 18 to rehabilitate McKinley Avenue from Louise Avenue to Yosemite Avenue. The Project construction consisted of removing the existing asphalt and replacing 6" of Hot -Mix -Asphalt over 7" of Class 2 Aggregate Base on prepared subgrade, and installing new signing and striping.
CITY MANAGER' SREPORT PAGE 2
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY CONSOLIDATED
ENGINEERING, INC. FOR CONSTRUCTION OF MCKINLEY AVENUE PAVEMENT REHABILITATION, CIP PS 23- 18
Consolidated Engineering completed construction of the Project. Staff inspected the improvements and they have been deemed complete and in accordance with the plans and specifications approved by the City Engineer. The awarded contract was in the amount of $ 1, 093, 858 and a 15% construction contingency of $ 164, 080 was authorized for staff to use as necessary to achieve the goals of the project. The total construction budget for the project was $ 1, 257, 938.
During construction, contract change orders totaling $ 124, 919 were issued for a final contract amount of $ 1, 218, 777. The construction costs referenced below capture all expenditures.
Construction costs are as follows:
A. Construction Contract Amount
B. Approved Change Order 1
C. Approved Change Order 2
D. Approved Change Order 3
1, 093, 858
109, 932
3, 727
11, 260
Total Construction Costs $ 1, 218, 777
The Project has been completed in accordance with the plans, specifications, and City of Lathrop standards. Upon acceptance of the improvements, the performance and payment bonds ( Bond No. 7470477) will be released and replaced with a warranty bond ( Bond No. 7470477, $ 121, 878). 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. Consolidated Engineering has also provided the necessary lien releases for the materials supplied and completed work.
Staff request City Council accept the public improvements constructed by Consolidated Engineering for the Project. Staff also request City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, the release of contract retention to Consolidated Engineering in the amount of $ 60, 939 within fortyfive ( 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 Consolidated Engineering pursuant to the contract documents dated August 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. 7470477) will be released and replaced with a one- year warranty bond ( Bond No. 7470477, 121, 878) upon City Council' s
acceptance of the improvements.
CITY MANAGER' SREPORT PAGE 3
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY CONSOLIDATED
ENGINEERING, INC. FOR CONSTRUCTION OF MCKINLEY AVENUE PAVEMENT REHABILITATION, CIP PS 23- 18
FISCAL IMPACT:
The awarded contract was in the amount of $ 1, 093, 858 with a 15% construction contingency of $ 164, 080 for a total construction budget of $ 1, 257, 938. During construction, contract change orders totaling $ 124, 919 were issued for a final construction cost of $ 1, 218, 777. Adequate funds were allocated within Fiscal Year 24/5 budget to close out CIP PS 23- 18. With the completion of this project, staff request that unused funds be transferred back into the Local Transportation Funds 2140).
ATTACHMENTS:
A. Resolution to Accept Public Improvements Constructed by Consolidated Engineering, Inc. for McKinley Avenue Pavement Rehabilitation, CIP PS 23- 18, and Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds B. Notice of Completion - McKinley Avenue Pavement Rehabilitation, CIP PS 23- 18 CITY MANAGER' S REPORT PAGE 4
MAY 12, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY CONSOLIDATED
ENGINEERING, INC. FOR CONSTRUCTION OF MCKINLEY AVENUE PAVEMENT REHABILITATION, CIP PS 23- 18
APPROVALS:
Angel Abarca Date
Assistant Engineer
City BradJaylor ngineer
Cari Ja
Finance Jrector
7 Michael King
Assistant City Manager
Date
14/ 2AhAtri, s
O'!/ 2/ /YALE
Date
Date
Salvador Navarrete Date
City Attorney
LS.• • Z3 • ZoZS
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 CONSOLIDATED ENGINEERING, INC. FOR CONSTRUCTION OF MCKINLEY AVENUE PAVEMENT
REHABILITATION, CIP PS 23- 18, AND AUTHORIZE THE FILING OF A NOTICE
OF COMPLETION, THE RELEASE OF CONTRACT RETENTION, AND THE
RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, on August 12, 2024, City Council awarded a construction contract to Consolidated Engineering, Inc. ( Consolidated Engineering) for construction of Capital Improvement Project ( CIP) PS 23- 18 for McKinley Avenue Pavement Rehabilitation ( Project); and
WHEREAS, the Project construction consisted of removing the existing asphalt and replacing 6" of Hot -Mix -Asphalt over 7" of Class 2 Aggregate Base on prepared subgrade, and installing new signing and striping; and
WHEREAS, Consolidated Engineering completed 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, Consolidated Engineering 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; and
WHEREAS, staff request City Council accept the improvements constructed by Consolidated Engineering for the Project; and
WHEREAS, staff also request City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, release of contract retention to Consolidated Engineering, in the amount of $60, 939, within forty-ive (45) days after the recording of the Notice of Completion, and the release of performance and payment bonds; 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. 7470477) will be released and replaced with a one- year warranty bond ( Bond No. 7470477, $121, 878) upon City Council' s
acceptance of the improvements; and
WHEREAS, the awarded contract was in the amount of $ 1, 093, 858 with a 15% construction contingency of $ 164, 080 for a total construction budget of 1, 257, 938. During construction, contract change orders totaling $ 124, 919 were issued for a final construction cost of $ 1, 218, 777; and WHEREAS, adequate funds were allocated within Fiscal Year 24/5budget to close out CIP PS 23- 18. With the completion of this project, staff request that unused funds be transferred back into the Local Transportation Funds ( 2140).
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements constructed by Consolidated Engineering, Inc. for McKinley Avenue Pavement Rehabilitation, CIP PS 23- 18; 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 Consolidated Engineering, Inc., in the amount of $ 60, 939, within forty-ive (45) days after the recording of the Notice of Completion, and authorizes the release of the performance and payment bonds; and BE IT FURTHER RESOLVED, that City Council also authorizes the transfer of the unused project funds into the Local Transportation Funds ( 2140) as detailed above.
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
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 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 ofthe original contractor, if any, for said work of improvement was: Consolidated Engineering, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
Consolidated Engineering, Inc. P. O. Box 701 Valley Springs CA 95252
7. That the real property herein referred to is situated in the State of California, and is described as follows:
CIP PS 23- 18 McKinley Avenue Pavement Rehabilitation
City of Lathrop County of San Joaquin,
That the undersigned has knowledge of the contents herein and states under penalty of perjury that the foregoing is true and correct.
CITY OF LATHROP
By:
By:
Stephen J. Salvatore, City Manager Date
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 Consolidated Engineering, Inc. 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 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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