ITEM 4. 10
CITY MANAGER' S REPORT
JULY 14, 2025 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS IN TRACT 3225
WITH CONDITIONS FROM K. HOVNANIAN HOMES
NORTHERN CALIFORNIA, INC.
RECOMMENDATION: Adopt Resolution to Accept Public Improvements in Tract 3225 with Conditions from K. Hovnanian
Homes Northern California, Inc.
SUMMARY:
K. Hovnanian Homes Northern California, Inc. ( K. HOV) has completed the construction of the public improvements identified in the GASB 34 Reports, included as Attachment " C", associated with the Subdivision Improvement Agreement ( SIA) for Final Map Tract 3225 (" Tract 3225").
Staff have inspected the improvements listed in Attachment " C," and the City Engineer has deemed them complete and in compliance with the approved plans and specifications, with one exception noted below. K. HOV has provided a one- year warranty bond equal to 10 percent of the completed construction costs, along with lien releases for the improvements proposed for acceptance. A vicinity map of the improvements is provided in Attachment " B."
All required improvements have been completed except for the installation of an electric meter for an irrigation controller, which is delayed pending PG& Ereview and approval, and the slurry seal of a portion of Mckee. The Performance and Labor & Materials bonds associated with the SIA will remain in place until the City Engineer confirms that the outstanding work is complete.
The approximate value of the improvements proposed for acceptance is 3, 008, 499. 25, as shown in the GASB 34 Reports.
Staff recommend that City Council accept the completed improvements and accept the pending improvement contingent upon its completion.
BACKGROUND:
On January 27, 2003, Council and Planning Commission approved the Mossdale Landing Project entitlements, including compliance with the California Environmental Quality Act ( CEQA), adoption of the Urban Design Concept ( UDC), Vesting Tentative Subdivision Map ( VTM) for Tract 3142, VTM for Tract 3225, and a Development Agreement ( DA) for the Mossdale Landing Project. The land for Tract 3225 lies within the geographic boundaries of the VTM.
CITY MANAGER' SREPORT PAGE 2
JULY 14, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS IN TRACT 3225 WITH CONDITIONS FROM K. HOVNANIAN HOMES NORTHERN CALIFORNIA, INC.
The developer, Lathrop Mossdale Investors, LP ( LMI), was required to use the low - density residential area of Tract 3225 as a recycled - water storage pond ( S1) until a river discharge permit was obtained from the Regional Water Quality Control Board RWQCB). LMI retained reversionary rights to the S1 land to regain title once alternative recycled - water disposal methods were funded by LMI.
LMI agreed to fund a portion of the Surface Water Discharge Project corresponding to the pro -rata share of the S1 pond. On January 8, 2024, the Council approved the Project Funding Agreement with LMI and a quitclaim deed transferring ownership of the S1 property to K. H0V at LMI' srequest.
On July 8, 2024, City Council approved the Final Map for Tract 3225, establishing 66 single- family lots. In accordance with the Lathrop Municipal Code, approval of Tract 3225 included an SIA to ensure completion of public improvements.
Staff has inspected the public improvements associated with the SIA for Tract 3225, as listed in the GASB 34 Reports and the City Engineer has deemed them complete and in compliance with approved plans and specifications, with the exception of an electric meter that has not yet been installed for an irrigation controller due to delays in PG& Ereview and approval and the slurry seal of a portion of McKee Boulevard.
To guarantee completion of the remaining work for Tract 3225, Performance Bond No. SURU2210003499 in the amount of $ 5, 156,18 and Labor & Materials Bond No.
SURU2210003499 in the amount of $ 2, 578, 059 will remain in place until staff inspect the outstanding improvement and the City Engineer deems it complete. Upon completion, staff will release both the Performance and Labor & Materials bonds.
K. H0V has submitted a one- year warranty bond equal to 10 percent of the completed construction costs, along with lien releases for the improvements proposed for acceptance. The bonds are detailed in Table 1 below.
Table 1
Tract No.
Performance Bond
Number/ Value
Labor & Materials
Bond
Number/ Value
Maintenance Bond
Number/ Value
SURU2210003499- M1
16, 052. 59
Tract 3225
SURU2210003499
5, 156,18
SURU2210003499
2, 578, 059
SURU2210003499- M2
222, 386. 93
SURU2210003499- M
34, 402. 20
CITY MANAGER' S REPORT PAGE 3
JULY 14, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS IN TRACT 3225 WITH CONDITIONS FROM K. HOVNANIAN HOMES NORTHERN CALIFORNIA, INC.
REASON FOR RECOMMENDATION:
Staff has inspected the improvements listed in the GASB 34 Reports and confirmed that they have been completed in accordance with City specifications, with the exception of the electric meter for the irrigation controller and the slurry seal of a portion of Mckee Boulevard.
Staff recommend City Council accept the completed public improvements listed in the GASB 34 Reports and accept the outstanding improvement contingent upon its completion and receipt of final unconditional lien releases. K. HOV has submitted lien releases and a one- year maintenance bond for the improvements proposed for acceptance.
FISCAL IMPACT:
The City' smaintenance costs will increase to cover the accepted improvements. The warranty bond will cover any repairs or replacements due to defective materials or workmanship for the completed improvements that may become necessary during the one- year period beginning with this acceptance. Maintenance and operating costs will be funded from Mossdale Services CFD 2004- 1.
ATTACHMENTS:
A. Resolution to Accept Public Improvements in Tract 3225 with Conditions from K. Hovnanian Homes Northern California, Inc.
B. Vicinity Map
C. GASB 34 Reports
CITY MANAGER' S REPORT PAGE 4
JULY 14, 2025 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS IN TRACT 3225 WITH CONDITIONS FROM K. HOVNANIAN HOMES NORTHERN CALIFORNIA, INC.
APPROVALS:
VI c
Bellal Nabizadah Date
Assistant Engineer
Brad 4 aylor
City ; ngineer
Cari James
Finance Dir- or
Forte
11/ 74nvS
Date
Date
liq%
Mich el King Date
7lR/ 2o7' S
Assistant City Manager
Salvador Navarrete Date
City Attorney
Steffen J. Salvatore Date
City Manager
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO ACCEPT PUBLIC IMPROVEMENTS IN TRACT 3225 WITH CONDITIONS FROM K.
HOVNANIAN HOMES NORTHERN CALIFORNIA, INC.
WHEREAS, on January 27, 2003, Council and Planning Commission approved the Mossdale Landing Project entitlements, including compliance with the California Environmental Quality Act ( CEQA), adoption of the Urban Design Concept ( UDC), Vesting Tentative Subdivision Map ( VTM) for Tract 3142, VTM for Tract 3225, and a Development Agreement ( DA) for the Mossdale Landing Project. The land for Tract 3225 lies within the geographic boundaries of the VTM; and WHEREAS, the developer, Lathrop Mossdale Investors, LP ( LMI), was required to use the low - density residential area of Tract 3225 as a recycled - water storage pond ( S1) until a river discharge permit was obtained from the Regional Water Quality Control Board ( RWQCB). LMI retained reversionary rights to the S1 land to regain title once alternative recycled - water disposal methods were funded by LMI; and WHEREAS, LMI agreed to fund a portion of the Surface Water Discharge Project corresponding to the pro -rata share of the S1 pond. On January 8, 2024, the Council approved the Project Funding Agreement with LMI and a quitclaim deed transferring ownership of the S1 property to K. Hovnanian Homes Northern California, Inc. (K. HOV) at LMI' s request; and
WHEREAS, on July 8, 2024, City Council approved the Final Map for Tract 3225, establishing 66 single- family lots. In accordance with the Lathrop Municipal Code, approval of Tract 3225 included a Subdivision Improvement Agreement ( SIA) to ensure completion of public improvements; and
WHEREAS, an electric meter has not yet been installed for an irrigation controller due to delays in PG& Ereview and approval and the slurry seal of a portion of McKee Boulevard has not been completed. The Performance and Labor & Materials bonds associated with the SIA will remain in place until the City Engineer determines that the outstanding work is complete; and
WHEREAS, staff has inspected the public improvements associated with the SIA for Tract 3225, as listed in the GASB 34 Reports and the City Engineer has deemed them complete and in compliance with approved plans and specifications, with the exception of an electric meter that has not yet been installed for an irrigation controller due to delays in PG& E review and approval and the slurry seal of a portion of McKee Boulevard; and
WHEREAS, to guarantee completion of the remaining work for Tract 3225, Performance Bond No. SURU2210003499 in the amount of $ 5, 156,18 and Labor & Materials Bond No. SURU2210003499 in the amount of $ 2, 578, 059 will remain in place until staff inspect the outstanding improvement and the City Engineer deems it complete. Upon completion, staff will release both the Performance and Labor & Materials bonds; and
WHEREAS, K. H0V has submitted a one- year warranty bond equal to 10 percent of the completed construction costs, along with lien releases for the improvements proposed for acceptance. The bonds are detailed in Table 1 below Table 1
Tract No.
Performance Bond
Number/ Value
Labor & Materials
Bond
Number/ Value
Maintenance Bond
Number/ Value
Tract 3225
SURU2210003499
5, 156,18
SURU2210003499
2, 578, 059
SURU2210003499- M1
16, 052. 59
SURU2210003499- M2
222, 386. 93
SURU2210003499- M
34, 402. 20
and
WHEREAS, staff have inspected the improvements listed in the GASB 34 Reports and confirmed that they have been completed in accordance with City specifications, with the exception of the electric meter for the irrigation controller and the slurry seal of a portion of McKee Boulevard; and
WHEREAS, staff recommend City Council accept the completed public improvements listed in the GASB 34 Reports and conditionally accept the outstanding improvement contingent upon its completion and receipt of final unconditional lien releases; and
WHEREAS, the City' s
maintenance costs will increase to cover the accepted
improvements. The warranty bond will cover any repairs or replacements due to defective materials or workmanship for the completed improvements that may become necessary during the one- year period beginning with this acceptance.
Maintenance and operating costs will be funded from Mossdale Services CFD 2004-
1. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the completed public improvements within Tract 3225 from K. Hov; and
BE IT FURTHER RESOLVED, that City Council does hereby conditionally accept the pending public improvement contingent upon installation of the electric meter for the irrigation controller and the slurry seal of McKee Boulevard and authorize staff to release the bonds associated with the SIA after the City Engineer confirms completion and all required documents are received.
PASSED AND ADOPTED by the City Council of the City of Lathrop this 14th day of July 2025 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
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City of Lathrop
Project Acceptance
GASB 34 Report)
Submitted By: MacKay & Somps - Ted Park
Project: Tract 3225 - Neighborhood Improvements
Tract 3225 - Escala @ Stanford Crossing, Bound by Brookhurst Dr, Address: Golden Valley Parkway, and McKee Blvd
SOFT COSTS
ATTACHMENT
s,4a
Date: 06/ 24/025
Unit Price Amount
4 Civil Engineering ( Mackay & Somps)
5 Construction Staking ( Mackay & Somps)
120, 90. 0
95, 000.
120, 90. 0
95, 000.
Item
A Fine Grade, Rock and Pave
Description Unit Qty
Subtotal:
Unit Price Amount
215, 900. 0
1 Finish Grade ( BOW to BOW)
2 5.' AB @ Curb & Gutter
3 4.5" AC/ 7.0" AB @ Streets
4 12" Deep Lift @ McKee Blvd
5 2" Grind & Overlay - Mckee Blvd
6 Striping and Markings
7 Install Monument
LS 1 $ 100, 00. $ 100, 00.
LF 5, 050 $ 4. 25 $ 21, 462. 50
SF 64,50 $ 4. 05 $ 261, 832. 50
LF 800 $ 16. 50 $ 13, 200. 0
SF 15, 600 $ 3.0 $ 51, 480. 0
LS 1 $ 19, 000. $ 19, 000.
EA 1 $ 14, 000. $ 14, 000.
Subtotal:
B Concrete Work
480, 975. 00
1 Vertical Curb and Gutter
2 6' Separated Sidewalk
3 Residential Driveways
4 Curb Ramps
LF 5, 050
SF 23,50
EA 66
EA 8
31. 00
8. 30
1, 250. 0
4, 950. 0
156, 550. 0
192, 975. 00
82, 500. 0
39, 600. 0
Subtotal: $ 471, 625. 00
C Sanitary Sewer
Notice To Proceed
Total Items Below
1 8" SDR- 26
2 4" Sewer Laterals
3 SSMH ( 48")
4 Connect to ex SS Stub
5 Dewatering
LS 1 $ 84, 600. 0 $ 84, 600. 0
LS 1 $ 321, 65. 00 $ 321, 65. 00
LF 2110
EA 66
EA 11
EA 1
EA 23
Subtotal: $ 406, 215. 00
D Storm Drain
Notice To Proceed
Total Items Below
1 15" Polypropylene
2 18" Polypropylene
3 24" Polypropylene
4 30" Polypropylene
5 SDMH ( 48")
6 Type 1 Catch Basins
7 Connect to ex SD Stub
LS 1 562, 100. 0 $ 62, 100. 0
LS 1 $ 203, 447. 25 $ 203, 447. 25
LF 230
LF 1405
LF 150
LF 30
EA 3
EA 18
EA 1
Subtotal: $ 265, 547. 25
S, PWK\ I-OLD\ Staff Reporrs\ 2025\ 07- July\( BN) Accept Public Improvements for Tract 3225\ GASB 34\ Tract 3225 - IP - GASB34 - 2025- 06- 24. xlsx 7/ 9/ 2025
Item
E Domestic Water
Description Unit Qty Unit Price Amount
Notice to Proceed
Total Items Below
1 8" C900 DR18
2 8" Gate Valve
3 1.5" Water Service
6 Fire Hydrants
10 Connect to ex stub
LS 1
LS 1
LF 2080
EA 9
EA 66
EA 6
EA 2
292, 500. 0
165, 483. 00
292, 500. 0
165, 483. 00
Subtotal: $ 457, 983. 00
F Streetlights
1 Post -top Electrolier
2 1 1/ 2" sch 40. pvc conduit with 2-# 8 copper wire
3 State #3-1/ 2 pull box
EA 14
LF 933
LF 30
8,27. 00
12. 00
225. 00
123, 578. 00
11,96. 00
6, 750. 0
Subtotal:
Hard Cost Subtotal
Softcost Total
141, 524. 00
2,23, 869. 25
215, 900. 0
Total $ 2, 439, 769. 25
S:\ PWK\ TOLD \ Staff Reports \ 2025\ 07- JWy\( BN) Accept Public Improvements for Tract 3225\ GASB 34, Tract 3225 - IP - GASB34 - 2025- 06- 24. xlsx City of Lathrop
Project Acceptance
GASB 34 Report)
Submitted By: MacKay & Somps - Ted Park
Project: Tract 3225 - Sound Wall
Tract 3225 - Escala @ Stanford Crossing, Bound by Brookhurst Dr, Address: Golden Valley Parkway, and McKee Blvd
SOFT COSTS
1 Bonding
Item
A Wall Construction
Description
Date: 06/ 24/025
Unit Price Amount
24, 878 $ 24, 878
Unit
Subtotal: 24, 878. 00
Unit Price Amount
1 up to 9' Tall Precast Masonry Sound Wall
2 up to 6' Ta11 Precast Masonry Sound Wall
LF
LF
580 $ 276. 30 $ 160, 254. 00
930 $ 197. 60 $ 183, 768. 00
Subtotal: 344, 022.0
Hard Cost Subtotal $ 344, 022.0
Softcost Total $ 24, 878. 00
Total $368, 900. 0
City of Lathrop
Project Acceptance
GASB 34 Report)
Submitted By:
Project:
Address:
MacKay & Somps - Ted Park
Tract 3225 - Landscaping
Tract 3225 - Escala @ Stanford Crossing, Bound by Brookhurst Dr, Golden Valley Parkway, and McKee Blvd
SOFT COSTS
1 2
Landscape Design ( Jensen Landscapes) - Design costs will be included with Tract 3225 acceptance
Bonding
Item
A Landscape
Description
Date: 06/ 24/025
Unit Price Amount
0.0 $ 0.0
27, 830. 0 $ 27, 830. 0
1 Percolation Testing
2 Soils Testing
3 Weed Abatement
4 Soil Preparation
5 Fine Grading
6 Root Barriers ( 24" x2' Panels)
7 15G Tree
8 1G Plant
9 2G Plant
10 5G Plant
11 ROW Planting Allowance
12 Mulch
B Irrigation
Unit gty
LS 1
EA 1
EA 1
EA 1
SF 21500
SF 21500
LF 708
EA 34
EA 327
EA 18
EA 549
EA 1
SF 21500
Subtotal: $ 27, 830. 0
Unit Price Amount
60, 334. 60
1, 750. 0
60, 334. 60
F General
Subtotal: $ 60, 334. 60
LS 1 100,91. 30 100,91. 30
1 Restroom & Wash Facility
2 Mobilization
3 Cleanup
4 Irrigation As- Builts
5 Traffic Control
6 Handle Spoils
7 90 day maintenance
Subtotal: $ 100,91. 30
LS 1 $ 3674. 10 $ 3, 674. 10
LS 1
EA 1
LS 1
LS 1
LS 1
LS 1
Month 3 $ 2, 600. 0 $ 7, 800. 00
Subtotal: $ 11, 474. 10
Hard Cost Subtotal $ 172, 000.
Softcost Total $ 27, 830. 0
Total $ 199, 830. 0
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