ITEM 4. 11
CITY MANAGER' SREPORT
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
NORGO ENGINEERING, INC. FOR CHRISTOPHER WAY
PIPELINE MAINTENANCE PROJECT
RECOMMENDATION: Adopt Resolution to Accept Public Improvements Constructed by Norgo Engineering, Inc. for
Christopher Way Pipeline Maintenance Project, and
Authorize the Filing of a Notice of Completion,
Release of Contract Retention, and Release of
Performance and Payment Bonds
SUMMARY:
Norgo Engineering, Inc. (Norgo), has completed construction of the Christopher Way Pipeline Maintenance ( Project).
City staff has inspected the work, and the City Engineer has determined that the improvements were completed in accordance with the approved plans and specifications. Norgo has submitted lien releases confirming that all subcontractors and suppliers have been paid in full. A one- year warranty bond in the amount of 15, 600 (exceeding the 10% of the contract amount) has been provided for the improvements being accepted.
Staff request that City Council accept the public improvements completed by Norgo for the Project. Staff also requests that Council authorize the filing of the Notice of Completion with the San Joaquin County Clerk, the release of contract retention totaling $ 7, 662 to Norgo within forty-ive (45) days after the Notice of Completion is recorded, and the release of performance and payment bonds.
BACKGROUND:
On August 11, 2025, City Council adopted Resolution No. 25- 5860, to approve a construction contract with Norgo for $ 140, 650, a 25% construction contingency of 35, 160, and authorizing staff to expend contingency funds as necessary to achieve Project goals. The City Council also approved a budget amendment of $ 200, 00 to the CTF- MBR Sewer Fund ( 6080- 5- 34- 420- 75- 00) to fund Project construction.
The Project consisted of closed- circuit television ( CCTV) evaluation, repairs, and short extensions to both ends of an existing 1, 600 -foot, 20 -inch C905 recycled water line along Christopher Way between D' Arcy Parkway and Tesla Drive, as well as minor asphalt and concrete restoration work.
CITY MANAGER' S REPORT PAGE 2
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY NORGO ENGINEERING, INC. FOR CHRISTOPHER WAY PIPELINE MAINTENANCE PROJECT
During construction, staff discovered a 20 -inch butterfly valve in the flow path of the future sewer force main. Because butterfly valves are unsuitable for sewer service, Change Order No. 1 was issued to remove the valve and relocate the tie- in connection.
REASON FOR RECOMMENDATION:
Norgo has completed the Project pursuant to the contract documents dated August 11, 2025. Staff has inspected the improvements, and the City Engineer has determined they are complete and in accordance with the approved plans and specifications.
Norgo submitted all required lien releases and provided a one- year warranty bond in the amount of $ 15, 600. The warranty bond covers any necessary repairs or replacements due to defective materials or workmanship for one year following acceptance. Upon City Council acceptance, the performance and payment bonds will be released and replaced by the one- year warranty bond.
FISCAL IMPACT:
The awarded contract was $ 140, 650, with an authorized 25% contingency of 35, 160, for a total budget of $ 175, 810. During construction, one ( 1) change order totaling $ 12, 578 was issued to remove the butterfly valve and relocation the tie- in connection, bringing the final contract cost to $ 153, 228.
Sufficient funds were allocated to the CTF budget in the adopted Fiscal Year 2025- 26 budget, as amended by City Council on August 11, 2025, to cover all expenses and close out the Project.
ATTACHMENTS:
A. Resolution to Accept Public Improvements Constructed by Norgo Engineering, Inc. for Christopher Way Pipeline Maintenance Project, and Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds
B. Notice of Completion - Christopher Way Pipeline Maintenance Project CITY MANAGER' SREPORT PAGE 3
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY NORGO ENGINEERING, INC. FOR CHRISTOPHER WAY PIPELINE MAINTENANCE PROJECT
APPROVALS:
2 Bellal Nabizadah Date
Assistant Engineer
06/ 106
Bra Taylor Date
Public Works Director / City Engineer
Cari Jame
Finance Di ctor
3/ P/ pwfDate
w, a7c.
Thomas Hedegard Date
Deputy City Manager
I • l•ZoZ(. 0
Michael King Date
Assistant City Manager
1—I —7-0-z-C
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
9. 3 •ZCQ
RESOLUTION NO. 26 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY NORGO ENGINEERING, INC. FOR
CHRISTOPHER WAY PIPELINE MAINTENANCE PROJECT, AND AUTHORIZE
THE FILING OF A NOTICE OF COMPLETION, THE RELEASE OF CONTRACT
RETENTION, AND THE RELEASE OF PERFORMANCE AND PAYMENT BONDS WHEREAS, on August 11, 2025, the City Council approved a construction contract with Norgo Engineering, Inc. (Norgo) for construction of Christopher Way Pipeline Maintenance ( Project) in the amount of $ 140, 650, approved a 25% construction contingency of $ 35, 160 and authorized staff to spend up to the amount of the contingency as necessary to achieve the goals of the Project; and WHEREAS, on August 11, 2025, the City Council also approved a budget amendment of $ 200, 00 to the CTF- MBR Sewer Fund ( 6080- 5- 34- 420- 75- 00) to fund construction of the Project; and
WHEREAS, the scope of work included the closed- circuit television ( CCTV) evaluation of, and repairs and short extensions to both ends of, an existing 1, 600 - foot length of 20 -inch C905 recycled water line in Christopher Way between D' Arcy Parkway and Tesla Drive, and minor asphalt and concrete restoration work; 'and WHEREAS, City staff have 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, Norgo submitted lien releases confirming that all subcontractors and suppliers have been paid in full, and a one- year warranty bond in the amount of 15, 600 exceeding 10% of the construction contract amount, -for the improvements being accepted; and
WHEREAS, staff request that City Council accept the public improvements constructed by Norgo for the Project; and
WHEREAS, staff also request that City Council authorize the filing of a Notice of Completion with the San Joaquin County Clerk, the release of contract retention to Norgo in the amount of $ 7, 662 within forty-ive (45) days after the 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 $ 15, 600; and
WHEREAS, the warranty bond ensures coverage for any necessary repairs or replacements due to defective materials or workmanship discovered within one year from the date of acceptance; and
WHEREAS, during construction, one ( 1) change order for $ 12, 578 was issued to remove a 20 -inch butterfly valve from the flow path of the future sewer force main and relocate the tie- in connection, bringing the final contract cost to $ 153, 228.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements constructed by Norgo Engineering, Inc. for Christopher Way Pipeline Maintenance; and BE IT FURTHER RESOLVED, that City Council authorizes the filing of the Notice of Completion with the San Joaquin County Clerk, release of contract retention to Norgo in the amount of $ 7, 662 within forty-ive (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 14th day of September 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
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
CITY OF LATHROP
ATTN: CITY CLERK
390 TOWNE CENTRE DRIVE
LATHROP, CA 95330
Exempt from payment of recording 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 14th day of September 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: Norgo Engineering, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
Norgo Engineering, Inc. 2525 Flosden Canyon Rd. Spc 145 American Canyon, CA 94503
7. That the real property herein referred to is situated in the Joaquin, State of California, and is described as follows:
Christopher Way Pipeline Maintenance
City of Lathrop County of San
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:
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 September 14, 2026 by Norgo Engineering, 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 resolution of the City Council adopted on September 14, 2026, and the grantee consents to recordation thereof by its duly authorized officer.
Dated By
Stephen J. Salvatore, City Manager