ITEM 4. 27
CITY MANAGER' S REPORT
JUNE 8, 2026 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
WELL INDUSTRIES, INC. FOR THE ASR WELL
DRILLING, DEVELOPMENT AND TESTING, CIP PW 22-
36 RECOMMENDATION: Adopt Resolution to Accept Public Improvements Constructed by Well Industries, Inc. for the Aquifer
Storage and Recovery ( ASR) Well Drilling,
Development and Testing, CIP PW 22- 36, and
Authorize the Filing of a Notice of Completion,
Release of Contract Retention, and Release of
Performance and Payment Bonds
SUMMARY:
Well Industries, Inc. ( Well Industries) has completed construction of Capital Improvement Project ( CIP) PW 22- 36 - Aquifer Storage and Recovery ( ASR) Well Drilling, Development and Testing ( Project). The scope of work included construction of one ASR well, including drilling, geophysical logging, zonal testing, casing and screen installation, well development, test pumping, water quality testing, video recording, disinfection, and related improvements.
City staff has inspected the work, and the City Engineer has determined that the improvements have been completed in accordance with the approved plans and specifications. Well Industries has submitted lien releases confirming that all subcontractors and suppliers have been paid in full. In addition, a one- year warranty bond, equal to 10% of the construction contract amount, has been provided to ensure the continued integrity of the improvements.
Staff requests City Council accept the improvements completed by Well Industries for the Project. Staff also requests City Council authorize the following actions:
Filing of the Notice of Completion with the San Joaquin County Clerk; and Release of contract retention totaling $ 85, 135 to Well Industries within fortyfive ( 45) days after the Notice of Completion is recorded; and Release of the performance and payment bonds associated with the Project.
BACKGROUND:
On April 14, 2025, City Council approved a construction contract with Well Industries for CIP PW 22- 36 ASR Well Drilling, Development and Testing. The scope of work included construction of one ASR well, including drilling, geophysical logging, zonal testing, casing and screen installation, well development, test pumping, water quality testing, video record, disinfection and other items.
CITY MANAGER' SREPORT PAGE 2
JUNE 8, 2026 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY WELL INDUSTRIES, INC.
FOR THE ASR WELL DRILLING, DEVELOPMENT AND TESTING, CIP PW 22- 36 Well Industries has completed construction of the Project. City staff conducted a final inspection, and the City Engineer has determined that all improvements were completed in accordance with the approved plans and specifications.
Staff requests City Council accept the public improvements completed by Well Industries 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 Well Industries in the amount of $85, 135 within forty-ive (45) days after recording of the Notice of Completion, and the release of performance and payment bonds.
REASON FOR RECOMMENDATION:
Upon City Council' sacceptance of the improvements, the performance and payment bonds will be released and replaced with a one- year warranty bond in the amount of 171, 565. The warranty bond provides coverage for any necessary repairs or replacements resulting from defective materials or workmanship discovered within one year of project acceptance.
FISCAL IMPACT:
The awarded contract amount was $ 1, 547, 985, and a 20% construction contingency of $ 309, 57 was authorized, for a total construction budget of $ 1, 857, 582.
During construction, three contract change orders totaling $ 154, 711 were issued, resulting in a final construction cost of $ 1, 702, 696.
ATTACHMENTS:
A. Resolution to Accept Public Improvements Constructed by WeII Industries, Inc. for ASR WeII Drilling, Development and Testing, CIP PW 22- 36, and Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds
B. Notice of Completion - ASR WeII Drilling, Development and Testing, CIP PW 22- 36
CITY MANAGER' S REPORT PAGE 3
JUNE 8, 2026 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY WELL INDUSTRIES, INC.
FOR ASR WELL DRILLING, DEVELOPMENT AND TESTING, CIP PW 22- 36 APPROVALS:
Sam
Greg bson
Seni• Civil Engineer
Dateos72( Q/ 07- 6.
Bradaraylor Date
Public Works Director/ City Engineer
Cari a s
Financ: P irector
5/ 77/ mb
o- Audarlke,
Date
Thomas Hedegard Date
Deputy City Manager
Michael King
Assistant City Manager
Date
S • Z.2, pzce
I- z-0-L6
Salvador Navarrete Date
City Attorney
e•4 •2(0
Steen 3. Salvatore Date
City Manager
RESOLUTION NO. 26 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY WELL INDUSTRIES, INC. FOR
THE AQUIFER STORAGE AND RECOVERY ( ASR) WELL DRILLING,
DEVELOPMENT AND TESTING, CIP PW 22- 36, AND AUTHORIZE THE FILING
OF A NOTICE OF COMPLETION, RELEASE OF CONTRACT RETENTION, AND
RELEASE OF PERFORMANCE AND PAYMENT BONDS
WHEREAS, Well Industries, Inc. (Well Industries), has completed construction of Capital Improvement Project ( CIP) PW 22- 36 - Aquifer Storage and Recovery ASR) Well Drilling, Development and Testing ( Project); and WHEREAS, the scope of work included the construction of one ASR well, including drilling, geophysical logging, zonal testing, casing and screen installation, well development, test pumping, water quality testing, video recording, disinfection and other related improvements; and
WHEREAS, City staff has inspected the work, and the City Engineer has determined that the improvements have been completed in accordance with the approved plans and specifications; and
WHEREAS, Well Industries has submitted lien releases confirming that all subcontractors and suppliers have been paid in full; and WHEREAS, a one- year warranty bond, equal to 10% of the construction contract amount, has been provided to ensure the continued integrity of the improvements; and
WHEREAS, staff requests that the City Council accept the public improvements completed by Well Industries 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 Well Industries in the amount of $85, 135 within forty-ive (45) days after recording of the Notice of Completion, and the release of performance and payment bonds; and WHEREAS, upon City Council' s acceptance of the improvements, the performance and payment bonds will be released and replaced with a one- year warranty bond in the amount of $ 171, 565; and
WHEREAS, the warranty bond provides coverage for any necessary repairs or replacements resulting from defective materials or workmanship discovered within one year from the date of acceptance; and
WHEREAS, the awarded contract amount was $ 1, 547, 985, and a 20% construction contingency of $ 309, 57 was authorized, for a total construction budget of $1, 857, 582. During construction, three contract change orders totaling $ 154, 711, were issued resulting in a final construction cost of $ 1, 702, 696.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements constructed by Well Industries for ASR Well Drilling, Development and Testing, CIP PW 22- 36; 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 Well Industries in the amount of $ 85, 135 within fortyfive ( 45) days after the recording of the Notice of Completion, and release of performance and payment bonds.
The foregoing resolution was passed and adopted this 8th day of June 2026, 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 8th day of June 2026 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: Well Industries, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
We11 Industries, Inc 3282 Hwy 32 Chico CA
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 PW 22- 36 ASR Well Drilling, Development and Testing 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 8, 2026 by Well Industries, 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 8, 2026, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager