ITEM 4. 15
CITY MANAGER' SREPORT
JANUARY 12, 2026 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS ASSOCIATED WITH
EP NO. 22- 128, LOCATED AT 1500 E. MADRUGA
ROAD, FROM CUNHA TRUCKING
RECOMMENDATION: Adopt Resolution to Accept Public Improvements Associated with Encroachment Permit No. 22- 128,
Located at 1500 E. Madruga Road, from Cunha
Trucking
SUMMARY:
Cunha Trucking ( Cunha), the developer of the trucking facility expansion located at 1500 E. Madruga Road, has completed the public improvements associated with Encroachment Permit ( EP) No. 22- 128. A vicinity map of the improvements is included in Attachment " B".
Staff has inspected the improvements listed in Attachment " C" and the City Engineer has deemed them complete and in compliance with the approved plans and specifications. The approximate value of the improvements constructed is 784, 800. 0, as shown in the GASB 34 Report included as Attachment " C".
Cunha has provided a one- year warranty bond based on 10% of the completed construction costs, as well as lien releases for the improvements proposed for acceptance.
Staff requests that City Council accept the public improvements listed in Attachment BACKGROUND:
On August 12, 2021, the City of Lathrop Planning Division approved Minor Site Plan Review No. 21- 48 (MSPR- 21- 48) for the expansion of the existing trucking facility at 1500 E. Madruga Road ( APN: 241- 030- 33). The expansion authorizes an additional 11 commercial truck trailer parking spaces and 21 automobile parking spaces including 1 accessible parking space). This approved construction includes expansion of the existing roadway, utility extensions, landscaping, and related site improvements.
The conditions of approval associated with MSPR- 21- 48required the installation of offsite improvements along Madruga Road, including but not limited to curb, gutter, sidewalk, landscaping, and utilities. The work was completed under EP 22- 128.
CITY MANAGER' S REPORT PAGE 2
JANUARY 12, 2026 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS ASSOCIATED WITH EP NO. 22- 128, LOCATED AT 1500 E. MADRUGA ROAD, FROM CUNHA TRUCKING
Staff has inspected the public improvements associated with EP 22- 128, as listed in Attachment " C" and the City Engineer has deemed them complete and in compliance with the approved plans and specifications.
Cunha has submitted a one- year warranty bond equal to 10% of the completed construction costs, along with lien releases for the improvements proposed for acceptance. Upon acceptance, the performance bond will be released and replaced with the warranty bond. The bonds associated with the improvements proposed for acceptance are detailed in Table 1 below.
Table 1
Description Performance Bond Warranty Bond
Encroachment Permit
22- 128
4459688
173, 524. 00
4459688W
78, 480. 0
REASON FOR RECOMMENDATION:
Staff has inspected the public improvements associated with EP 22- 128 listed in the GASB 34 Report, and the City Engineer has deemed them complete and in accordance with the approved plans and specifications.
Cunha has provided unconditional lien releases and a one- year maintenance bond for the completed improvements. Staff recommends that the City Council accept the public improvements listed in Attachment " C".
FISCAL IMPACT:
The City' s
maintenance costs will increase to maintain the accepted improvements.
The warranty bond will cover any repairs or replacements due to defective materials or workmanship required during the one- year period beginning with this acceptance.
The City' s
Service Maintenance Capital Facilities District 2019- 01 has been established to fund City maintenance and operating costs.
ATTACHMENTS:
A. Resolution to Accept Public Improvements Associated with Encroachment Permit ( EP) No. 22- 128 Located at 1500 E. Madruga Road from Cunha Trucking
B. Vicinity Map
C. GASB 34 Report - 1500 E. Madruga Road
CITY MANAGER' S REPORT PAGE 3
JANUARY 12, 2026 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS ASSOCIATED WITH EP NO. 22- 128, LOCATED AT 1500 E. MADRUGA ROAD, FROM CUNHA TRUCKING
APPROVALS:
Bellal Nabizadah
Assistant Engineer
Brad A" aylor
City Engineer
Car
Finance rector
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Date
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Date
Date
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Thomas Hedega h—' Date
Deputy City Manager
J 7 . 2ozc4,
Michael King Date
Assistant City Manager
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO ACCEPT
THE PUBLIC IMPROVEMENTS ASSOCIATED WITH ENCROACHMENT PERMIT NO. 22- 128, LOCATED AT 1500 E. MADRUGA ROAD, FROM CUNHA TRUCKING WHEREAS, on August 12, 2021, the City of Lathrop Planning Division approved Minor Site Plan Review No. 21- 48 (MSPR- 21- 48) for the expansion of the existing trucking facility at 1500 E. Madruga Road ( APN: 241- 030- 33). The expansion authorizes an additional 11 commercial truck trailer parking spaces and 21 automobile parking spaces ( including 1 accessible parking space), and includes expansion of the existing roadway, utility extensions, landscaping, and related site improvements; and
WHEREAS, the conditions of approval associated with MSPR- 21- 48 required the installation of offsite improvements along Madruga Road, including but not limited to curb, gutter, sidewalk, landscaping, and utilities. The work was completed under Encroachment Permit No. 22- 128 (EP 22- 128); and
WHEREAS, Cunha Trucking has submitted a one- year warranty bond equal to 10% of the completed construction costs, along with lien releases for the improvements proposed for acceptance. Upon acceptance, the performance bond will be released and replaced with the warranty bond. The bonds associated with the improvements proposed for acceptance are detailed in Table 1 below:
Table 1
Description Performance Bond Warranty Bond
Encroachment Permit
22- 128
4459688
173, 524. 00
4459688W
78, 480. 0
and
WHEREAS, staff has inspected the public improvements associated with EP 22- 128 listed in the GASB 34 Report and they have been deemed complete and in accordance with the approved plans and specifications by the City Engineer; and WHEREAS, the one- year 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; and
WHEREAS, staff recommends that the City Council accept the public improvements listed in Attachment " C" of the City Manager' s Report that accompanied this Resolution; and
WHEREAS, the City' s Service Maintenance Capital Facilities District 2019- 01 has been established to fund City maintenance and operating costs.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements associated with Encroachment Permit No. 22- 128 located at 1500 E. Madruga Road from Cunha Trucking.
PASSED AND ADOPTED by the City Council of the City of Lathrop this 12th day of January 2026 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas
City Clerk
Salvador Navarrete
City Attorney
ATTACHMENT
C ..
CITY OF LATHROP
PROJECT ACCEPTANCE
GASB34 REPORT)
Submitted by: Paul Bottini
Projecty Name: CUNHATRUCKING FACILITY
Description
Off -site UG Improvements
15" Storm Drain
24" Storm Drain
60" Storm Drain Manhole
Storm Drain Catch Basin
CTE Storm Drain Stub
8" Septic Sewer
60" Sewer Manhole
CTE Septic Sewer Stub
6" Water
8" Water
Hydrant Lateral W/ GV & Hydrant
6" RP Backflow
8" Backflow
6" Gate Valves
8" Gate Valves
4" Water Meter & Vault
Off -Site Street Improvements ( Topside)
Demo Asphalt
Install 10" CL II AB
Install6" HMA
Driveway
Sidewalk 6"
Curb and Gutter
Road stripping
Bollards
Signage
Unit Qty Unit Price Amount
LF 23 $ 260. 87 $ 6, 000.0
LF 307 $ 342. 02 105, 000.
EA 2 $ 14, 000. 28, 000.
EA 1 $ 7, 000. 7, 000.
EA 1 $ 7, 000. 7, 000.
LF 305 $ 573. 77 175, 000.
EA 2 $ 25, 000. 50, 000.
EA 1 $ 7, 600. 0 7, 600. 0
LF 51 $ 147. 06 7, 500. 0
LF 350 $ 185. 71 65, 000.
EA 1 $ 15, 000. 15, 000.
EA 1 $ 24, 000. 24, 000.
EA 1 $ 28, 000. 28, 000.
EA 3 $ 3, 000.0 9, 000.
EA 1 $ 4, 000.0 4, 000.0
EA 1 $ 18, 000.0 18, 000.
556, 100. 0
SF 16883 $ 0. 95 $ 16, 000.0
SF 16979 $ 3. 53 60, 000.0
SF 16979 $ 6. 48 110, 000.
SF 250 $ 8. 00 2, 000.
SF 2612 $ 9. 38 24, 500. 0
LF 1007 $ 9.3 10, 000.
EA 1 $ 4, 800. 00 4, 800. 0
EA 2 $ 200. 00 400. 00
EA 4 $ 250. 00 1, 000.
228, 700. 0
Total Offsite Underground and Topside $ 784, 800. 0