ITEM 4. 11
CITY MANAGER' S REPORT
JULY 14, 2025 CITY COUNCIL REGULAR MEETING
ITEM: RATIFY CITY MANAGER' SEXECUTION OF CHANGE
ORDER NO. 3 AND ACCEPT PUBLIC IMPROVEMENTS
CONSTRUCTED BY GEORGE REED, INC. FOR ROTH
ROAD PAVEMENT REHABILITATION, CIP PS 25- 04
RECOMMENDATION: Adopt Resolution to Ratify City Manager' s Execution
of Change Order No. 3, Accept Public Improvements
Constructed by George Reed, Inc. for Roth Road
Pavement Rehabilitation CIP PS 25- 04, and
Authorize the Filing of a Notice of Completion,
Release of Contract Retention, and Release of
Performance and Payment Bonds
SUMMARY:
George Reed Inc. (George Reed) completed construction of Capital Improvement Project ( CIP) PS 25- 04 for Roth Road Pavement Rehabilitation ( Project). The scope of work consisted of grinding and overlaying 3" of Hot Mix Asphalt ( HMA), installing glasgrid pavement reinforcement, and installing new signing and striping along Roth Road from Manthey Road to Intermodal Way. The contract amount was $ 1, 339, 543 with an approved contingency of $ 201, 000.
During the construction phase, Change Orders No. 1 and No. 2, totaling $ 162, 838, were approved to address unforeseen pavement repairs. The Project has reached completion
ratification,
and
to reconcile
a final change
the ultimate
order
quantities
of $ 108, 023
of the
is needed,
constructed
pending
bid.
City
Staff
Manager' s
requests
that City Council adopt a resolution to ratify City Manager' s execution of Change Order No. 3 with George Reed in the amount of $ 108, 023 for the final constructed bid quantities.
The total cost for the change orders and final balance is $ 270, 861. Of this, the approved contingency covers $ 201, 000, leaving a remaining balance of $69, 861. The California Department of Transportation ( Caltrans) has authorized the release of 1, 694, 522 in federal funds with a local match of $285, 000for a total Project budget of $ 1, 979, 522. Upon receiving reimbursement from Caltrans, the Project will have adequate funds to cover the remaining final balance.
The construction of CIP PS 25- 04 has been successfully completed. Following a thorough inspection by our staff, the City Engineer has confirmed that the improvements meet all approved plans and specifications. George Reed 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.
CITY MANAGER' SREPORT PAGE 2
JULY 14, 2025 CITY COUNCIL REGULAR MEETING
RATIFY CITY MANAGER' SEXECUTION OF CHANGE ORDER NO. 3 AND ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY GEORGE REED, INC. FOR ROTH ROAD PAVEMENT REHABILITATION, CIP PS 25- 04
Staff requests City Council accept the improvements constructed by George Reed for the Project. Staff also requests City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, release of contract retention to George Reed in the amount of $ 80, 521 within forty-ive (45) days after the recording of the Notice of Completion, and the release of performance and payment bonds.
BACKGROUND:
On October 14, 2024, City Council created CIP PS 25- 04 and approved a construction contract to George Reed for construction of the Project to rehabilitate Roth Road from Manthey Road to Intermodal Way. The Project removed the existing deteriorated pavement, reconstructed 3" of HMA overlay with glasgrid, and installed new thermoplastic striping and markings with reflective pavement markers.
George Reed completed construction of the Project. Staff inspected the improvements and the City Engineer deemed the improvements complete and in accordance with the plans and specifications.
The construction costs referenced below capture all expenditures.
A. Construction Contract Amount $ 1, 339, 543
B. Change Order 1 - Approved $ 160, 070
C. Change Order 2 - Approved $ 2, 768
D. Change Order 3 - Pending Ratification $ 108, 023
Total Construction Costs $ 1, 610, 404
Staff request City Council accept the public improvements constructed by George Reed 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 George Reed in the amount of $ 80, 521 within forty-ive (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 George Reed pursuant to the contract documents. 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. 30232961) will be released and replaced with a one- year warranty bond ( Bond No. 30232961, $161, 040) upon City Council' s
acceptance of the improvements. The warranty bond covers any repairs or replacements that become necessary during the one- year period, beginning with this CITY MANAGER' SREPORT PAGE 3
JULY 14, 2025 CITY COUNCIL REGULAR MEETING
RATIFY CITY MANAGER' SEXECUTION OF CHANGE ORDER NO. 3 AND ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY GEORGE REED, INC. FOR ROTH ROAD PAVEMENT REHABILITATION, CIP PS 25- 04
acceptance, due to defective materials or workmanship in connection with the completed improvements.
FISCAL IMPACT:
The approved contract amount was $ 1, 339, 543. Throughout the construction phase, contract change orders totaling $ 270, 861 were issued, resulting in a final construction cost of $ 1, 610, 404. The City secured $ 1, 694, 522 in federal funding, complemented by a required local match of $ 285, 000, which together establishes a total Project budget of $ 1, 979, 522, sufficient to successfully close out CIP PS 25- 04.
With the Project' scompletion, staff request the transfer of any unused local match funds back into the General Fund Street Repair Reserves ( 1010).
ATTACHMENTS:
A. Resolution to Ratify the City Manager' s
Execution of Change Order No. 3,
Accept Public Improvements Constructed by George Reed, Inc. for Roth Road Pavement Rehabilitation CIP PS 25- 04, and Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds
B. Notice of Completion - Roth Road Pavement Rehabilitation, CIP PS 25- 04 C. Change Order No. 3 ( Requested for Ratification)
CITY MANAGER' SREPORT PAGE 4
JULY 14, 2025 CITY COUNCIL REGULAR MEETING
RATIFY CITY MANAGER' SEXECUTION OF CHANGE ORDER NO. 3 AND ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY GEORGE REED, INC. FOR ROTH ROAD PAVEMENT REHABILITATION, CIP PS 25- 04
APPROVALS:
Angef barca Date
Assistant Engineer
Brad
City
Cari i a es
Fina - Director
fine
io /. 2, c) Z, i
Date
7/ 10/ 22. 5
Date
7// 04° 2-1
7, 4 ()AO
Mich el King Date
Assistant City Manager
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
1• ,o•Z5
RESOLUTION NO. 25 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO RATIFY CITY MANAGER' SEXECUTION OF CHANGE ORDER NO. 3, ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY GEORGE REED, INC. FOR ROTH ROAD PAVEMENT REHABILITATION, CIP PS 25- 04, AND AUTHORIZE THE FILING
OF A NOTICE OF COMPLETION, THE RELEASE OF CONTRACT RETENTION,
AND THE RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, George Reed, Inc. ( George Reed) has completed construction of Roth Road Pavement Rehabilitation, Capital Improvement Project ( CIP) PS 25- 04 Project); and
WHEREAS, the Project consisted of removing the existing deteriorated pavement, reconstructing 3" of HMA overlay with pavement reinforcing fabric, and installing new thermoplastic striping and markings with reflective pavement markers; and
WHEREAS, during the construction phase, Change Orders No. 1 and No. 2, totaling $ 162, 838, were approved to address unforeseen pavement repairs.; and WHEREAS, the Project has reached completion and a final change order of 108, 023 is needed, pending City Manager' sratification, to reconcile the ultimate quantities of the constructed bid; and
WHEREAS, staff requests that City Council adopt a resolution to ratify City Manager' s execution of Change Order No. 3 with George Reed in the amount of 108, 023 for the final constructed bid quantities; and
WHEREAS, the total cost for the change orders and final balance is $ 270, 861.
Of this, the approved contingency covers $ 201, 000, leaving a remaining balance of 69, 861; and
WHEREAS, the California Department of Transportation ( Caltrans) has authorized the release of $ 1, 694, 522 in federal funds with a local match of $ 285, 000 for a total Project budget of $ 1, 979, 522. Upon receiving reimbursement from Caltrans, the Project will have adequate funds to cover the remaining final balance; and
WHEREAS, the construction of CIP PS 25- 04 has been successfully completed.
Staff inspected the improvements and the City Engineer deemed the improvements complete and in accordance with the approved plans and specifications; and WHEREAS, George Reed has provided the necessary lien releases for the materials supplied and completed work; and
WHEREAS, George Reed 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. 30232961) will be released and replaced with a one- year warranty bond ( Bond No. 30232961, 161, 040) upon City Council' sacceptance of the improvements; and WHEREAS, with the Project' scompletion, staff request the transfer of any unused local match funds back into the General Fund Street Repair Reserves ( 1010); and
WHEREAS, staff request City Council accept the public improvements constructed by George Reed for Roth Road Pavement Rehabilitation, CIP PS 25- 04; and
WHEREAS, staff also request City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk upon acceptance of the improvements, release of contract retention to George Reed in the amount of $ 80, 521 within fortyfive ( 45) days after the recording of the Notice of Completion, and the release of the performance and payment bonds.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby ratify City Manager' s action to execute Contract Change Order No. 3 with George Reed, Inc., in the amount of $ 108, 023, for Roth Road Pavement Rehabilitation, CIP PS 25- 04; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements constructed by George Reed for Roth Road Pavement Rehabilitation, CIP PS 25- 04; 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, release of contract retention to George Reed in the amount of $80, 521 within fortyfive ( 45) days after the recording of the Notice of Completion, and release of performance and payment bonds; and
BE IT FURTHER RESOLVED, that City Council also authorizes the return of unused local match funds back into the General Fund Street Repair Reserves ( 1010).
The foregoing resolution was passed and adopted this 14th day of July 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
Exempt from payment ofrecording fees ( GC 11922)
1 Attachment
e
K N
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, ifthere 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 14th day ofJuly 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: George Reed, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO.
George Reed, Inc. P. O. Box 4760
CITY STATE
Modesto CA 95354
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 PS 25- 04 Roth Road Pavement Rehabilitation
That the undersigned has knowledge ofthe contents herein and states under penalty ofperjury 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 July 14, 2025 by George Reed, 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 July 14, 2025, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager
Docusign Envelope ID: BE8A1DFA- 3E30- 46E0- AD58- 25C1275CE1E5 Attachment C
BALANCING CONTRACT CHANGE ORDER SUMMARY
Roth Rd Pavement Rehabilitation, CIP PS 25- 04
Bid Item List Quanttt
George Reed, Inc.
ORIGINAL COST FINAL COST
Unit I Unit Cost I Subtotal Quantity I Subtotal I Difference 1 Mobilization, Bonds & Insurance 1 LS 43, 250. 5 43, 250. 5 1. 00 43, 250. 5 0.0 2 Traffic Control 1 LS 100, 00. 100, 00. 1. 00 100, 00. 0.0 3 Erosion and Sediment Control Plan (ESC(?) 1 LS 4. 500. 0 4, 500. 0 1. 00 4, 500. 0 0.0 4 Lower and Raise Water Valve Covers ( City of Lathrop) 17 EA 1, 500. 0 25, 500. 0 22. 00 33, 000. 7, 500. 0 5 Lower and Raise Sanitary Sewer Manhole Covers (City of 6 EA 2, 000. 12, 000. 6. 00 12, 000. 0.0 6 Lower and Raise Monument Covers 3 EA 1, 500. 0 4, 500. 0 3. 00 4, 500. 0 0.0 7 Digouts as Shown per Plans 15, 000 SF 0. 85 12, 750. 0 26, 729. 00 22, 719. 65 9,69. 65 8 Remove and Replace In -Kind Traffic Signal Loop 1 LS 5,10. 0 5,10. 0 1. 00 5,10. 0 0.0 9 Grind and Dispose 3" AC 235, 900 SF 0. 50 117, 950. 0 258, 896. 64 129, 448. 32 11, 498. 32 10 Place HMA et 3" Depth / Single Lifts 5, 325 TON 5116. 00 617, 700. 0 6, 067. 30 703, 806.0 86, 106. 80 11 Install Tensar 8502 Glasgrid 265, 000 SF 1. 08 286,00. 0 260, 661. 00 281, 53. 88 4, 686. 12 12 Remove and Construct Median Island 60 LF 118. 50 7, 110. 0 64. 00 7, 584. 00 474. 00 13 Thermoplastic Striping -12" White Line 400 LF 10. 00 4, 000. 618. 00 6, 180. 0 2, 180. 0 14 Thermoplastic Striping - 8" Chevrons 240 LF 3. 00 5720. 0 240. 00 720. 00 0.0 15 Thermoplastic Striping - 8" White / Yellow Hatch 730 LF 3. 00 2, 190. 0 730. 00 2, 190. 0 0.0 16 Thermoplastic Striping- Caltrans Std. Pln. A20, Detail 9 740 LF 1. 00 740. 00 1, 080. 1. 080. 340. 00 17 Thermoplastic Striping - Caltrans Std. PIn. A20, Detail 22 4, 670 LF 3. 50 16, 345. 00 4, 125. 00 14, 437. 50 1, 907. 50 18 Thermoplastic Striping- Caltrans Std. PIn. A20. Detail 25 1, 310 LF 1. 50 1, 965. 00 1, 635. 00 2, 452. 50 487. 50 19 Thermoplastic Striping- Caltrans Std. PIn. A20, Detail 27B 12, 630 LF 1. 50 18, 945. 00 11, 984. 00 17, 976. 00 969. 00 20 Thermoplastic Striping -Caltrans Std. PIn. A20, Detail 29 1020 LF 7. 00 7, 140. 0 835. 00 5, 845. 00 1, 295. 00 21 Thermoplastic Striping -Caltrans Std. PIn. A20, Detail 32 525 LF 6. 50 3, 412. 50 415. 00 2, 697. 50 715. 00 22 Thermoplastic Striping - Caltrans Std. PIn. A20, Detail 38 1700 LF 2. 15 3, 655. 00 1, 960. 0 4, 214. 00 559. 00 23 Thermoplastic Striping -Caltrans Std. PIn. A20, Detail 37B 240 LF 2. 00 480. 00 170. 00 340. 00 140. 00 24 Thermoplastic Striping -Caltrans Std. PIn. A20, Detail 41 120 LF 2. 00 240. 00 0.0 240. 00 25 8' STOP, AHEAD, XING, KEEP, CLEAR Legends 30 EA 540. 00 16, 200. 0 30. 00 16, 200. 0 0.0 26 Thermoplastic Marking -Type I Arrow 7 EA 140. 00 980. 00 7. 00 980. 00 0.0 27 Thermoplastic Marking -Type IV Arrow ( Left or Right) 30 EA 150. 00 4, 500. 0 26. 00 3, 900. 0 600. 00 28 Thermoplastic Marking -Type VII Arrow 2 EA 270. 00 540. 00 0.0 540. 00 29 Insert Blue RPM Cot Fire Hydrant 8 EA 65. 00 520. 00 8. 00 520. 00 0.0 30 Install Shoulder Backing 1 LS 500. 00 500. 00 1. 00 500. 00 0.0 31 Install Signage per Plans 1 LS 19, 500. 0 19, 500. 0 1. 00 19, 500. 0 0.0 Contract
Subtotal 1, 339, 543. 00 Subtotal 1, 447, 565. 6 108, 022. 65 Change Orders
CCO 1 Median Sub -grade Removal and Deeplift Asphalt 1 LS 160, 070. 160, 070. 1 160, 070. 0.0 CCO 2 Fumish and install additional signage 1 LS 2, 768. 00 2, 768. 00 1 2, 768. 00 0.0 Subtotal 162, 838. 00Subtotal 162. 838. 00 0.0
Subtotal Bid Item List + CCO 1, 502, 381. 00 Subtotal Contract Change + CCO 108, 022. 65 TOTAL CONTRACT AMOUNT $ 1, 610, 403. 65
SUMMARY
Total Balancing Change Order 5108, 022. 65
Original Contract Price
Approved Contract
Contract Bid Items Changes
Contract Change Orders
Total for extra work
Total Contract Amount After Change Orders
Approved Contingency
Approved Supplemental Contingency
Total Approved Contingency
Remaining Contingency After Change Orders
1, 339, 543. 00
1, 339, 543. 00
108, 022. 65
162, 838. 00
270, 860. 65
1, 610, 403. 65
201, 000.
201, 000.
469, 860. 65
CHANGE ORDER JUSTIFICATION
Roth Road Pavement Rehabilitation Project
CIP # PS 25- 04
CHANGE ORDER No. 3
Date: 5/ 22/5
Resolution: 24- 5661
Project Name: Roth Road Rehabilitation Project
Contractor: George Reed Inc.
CIP: PS 25- 04
Contract Amount : $ 1, 339, 543. 00
Contingency Amount: $ 201, 000.
Lathrop City Council awarded a construction contract and authorized the City Manager to approve change orders up to the specified project contingency amount of $ 201, 000. if needed.
Balancing Change Order
The proposed balance change order provides final bid item quantities completed by the contractor George Reed, Inc.) during construction of the project. It reconciles the differences between the original contract quantities and the actual quantities used or needed during construction. This is needed in order to provide a financial " true -up" before project closeout.
This Change Order gives authorization to the City Manager to approve Change Orders as needed up to the allowed contingency. Engineering is requesting City Manager to approve Change Order No. 3 in order to meet Building Compliance, ADA compliance and meet the expectations of the design as intended.
Submitted by:
Zak Karver (:' 5.-' z 74 Lr
Project Manager
Approved by:
BracYffaylor, P. E., City Engineer
Docusign Envelope ID: BE8A1DFA- 3E30- 46E0- AD58- 25C1275CE1E5 Acceptance by Contractor:
I have examined the quantities of contract items and amounts indicated as payment for extra work and deductions on the proposed final estimate. I agree to accept the total of 1, 610. 403. 65 as indicated, as total amount eamed for all work performed on the above contract, except as may be indicated below.
Exceptions (check one)
x None
As indicated on the attached letter dated:
pactojogni, Inc.
s t, Fata
Inice ianieI -Mier Sf
City of Lathrop
6/ 12/ 2025
Date
pDocuSignsd by:
tr
Ldber`' leer"'°"`_. VP -GM
Recommende , By: Reviewed By:
Project Manager
Reviewed By:
Departm
Approved By:
Analyst
Step vatore, City Manager
6C/ 4 tic
Date Brad ylor, City Engineer
6/ 13/ 2025
Date
J/ Iib( rlecDate
Approved As to Form By:
7A4N- - -
Date Salvador Navarrete, Ci Attorney Date
do -
f
Date