ITEM 4. 18
CITY MANAGER' S REPORT
JUNE 9, 2025 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
GCJ, INC. FORWELL 7 PUMP HOUSE IMPROVEMENTS,
CIP PW 25- 09
RECOMMENDATION: Adopt Resolution to Accept Public Improvements Constructed by GCJ, Inc. for Well 7 Pump House
Improvements, CIP PW 25- 09 and Authorize the
Filing of a Notice of Completion, Release of Contract
Retention, and Release of Performance and Payment
Bonds
SUMMARY:
GCJ, Inc. (GCJ) has completed the construction of Capital Improvement Project ( CIP) WeII 7 Pump House Improvements, CIP PW 25- 09 (Project). Staff inspected the improvements and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
GCJ 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 GCJ 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 GCJ of $ 4, 231 within forty-ive (45) days after recording the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
On December 9, 2024, City Council awarded a construction contract to GCJ for the construction of the Project in the amount of $ 79,20 and approved a 15% construction contingency of $11, 958 for staff to use as necessary to achieve the goals of the Project. The Project scope included reconstruction of the pump house roof and portions of two walls. Within that scope, the removable roof hatch and front full - height double door were rebuilt, maintaining the City' s ability to access the well pipe and pump with a crane for future maintenance. Other improvements include repainting of the entire pump house interior and exterior and the generator' sdiesel tank, removal of fencing no longer needed, and other miscellaneous small repairs.
Contract change orders totaling $ 4, 895 were issued during the construction of the project; therefore, the final contract price of the Project is $ 84, 615.
CITY MANAGER' S REPORT PAGE 2
JUNE 9, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY GCJ, INC. FOR WELL 7 PUMP HOUSE IMPROVEMENTS, CIP PW 25- 09
Upon acceptance of the improvements, the performance bond ( Bond No. 101288341, 79,20) and payment bond ( Bond No. 101288341, $ 79,20) will be released and replaced with a one- year warranty bond ( Bond No. 101288341, $ 8, 461). 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.
GCJ has also provided the necessary lien releases for the materials supplied and completed work.
Staff request City Council accept the improvements constructed by GCJ for Well 7 Pump House Improvements, CIP PW 25- 09. 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 GCJ for $ 4, 231 within forty-ive (45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
GCJ has completed the Project pursuant to the contract documents dated December 9, 2024. Staff inspected the improvements and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer.
GCJ 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 subcontractors 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 GCJ for the Project is $ 84, 615. Adequate funds have been allocated in the FY 2024-5 budget to close out Well 7 Pump House Improvements, CIP PW 25- 09. With the completion of the Project, staff request that unused funds be transferred back to the original funding source, Water Capital Replacement Fund ( 5600).
ATTACHMENTS:
A. Resolution to Accept Public Improvements Constructed by GCJ, Inc. for Well 7 Pump House Improvements, CIP PW 25- 09 and Authorize the Filing of a Notice of Completion, Release of Contract Retention and Release of Performance and Payment Bonds
B. Notice of Completion - Well 7 Pump House Improvements, CIP PW 25- 09 CITY MANAGER' S REPORT PAGE 3
JUNE 9, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY GCJ, INC. FOR WELL 7 PUMP HOUSE IMPROVEMENTS, CIP PW 25- 09
APPROVALS:
Steven Hollenbeak Date
Assistant Engineer
Bracr/ Taylor
City Engineer
Cari Ja : s
Finance irector
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Michael King Date
Assistant City Manager
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Salvador Navarrete Date
City Attorney
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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 GC), INC. FOR WELL 7 PUMP HOUSE IMPROVEMENTS, CIP PW 25- 09 AND AUTHORIZE THE FILING OF A
NOTICE OF COMPLETION, RELEASE OF CONTRACT RETENTION, AND
RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, on December 9, 2024, City Council awarded a construction contract to GCJ, Inc. (GCJ) for Well 7 Pump House Improvements, CIP PW 25- 09 Project) in the amount of $ 79,20 with a 15% construction contingency of $ 11, 958 and authorized staff to spend up to that amount as necessary to achieve the goals of the Project; and
WHEREAS, the scope of work consisted of rebuilding the pump house roof and portions of walls,
weather -tightness;
re -
and
painting the building and other tasks to restore the building' s WHEREAS, staff inspected the improvements, and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications; and
WHEREAS, one contract change order for $ 4, 895 was issued during construction, for a total contract price of $ 84, 615; and WHEREAS, GCJ 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. 101288341, $ 79,20) and payment bond ( Bond No. 101288341, $ 79,20) will be released and replaced with a one- year warranty bond ( Bond No. 101288341, $ 8, 461). 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 adopted FY 2024-5 budget for CIP PW 25- 09 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 GCJ for Well 7 Pump House Improvements, CIP PM 25- 09; and WHEREAS, 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 HB Restoration in the amount of $4, 231 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 GCJ for Well 7 Pump House Improvements, CIP PW 25- 09 pursuant to the contract documents dated December 9, 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 and the release of the contract retention to GCJ, in the amount of $4, 231 within fortyfive ( 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 the City Council of the City of Lathrop approves the transfer of unused funds back to the original funding source, Water Capital Replacement Fund ( 5600).
The foregoing resolution was passed and adopted this 9th day of June 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
Exempt from 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 9th day of June 2025 a work ofimprovement on the real property herein described was completed.
5. That the name of the original contractor, if any, for said work of improvement was: GCJ, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
GCJ, Inc. 3508 Shamrock Way Tracy, CA 95377
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:
We11 7 Pump House Improvements
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:
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 June 9, 2025 by GCJ, 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 June 9, 2025, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager