ITEM 4. 13
CITY MANAGER' SREPORT
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
ITEM: ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY
CONSOLIDATED ENGINEERING, INC. FOR TESLA
DRIVE AND CHRISTOPHER WAY PAVING, CIP PS 24-
05 RECOMMENDATION: Adopt Resolution to Accept Public Improvements Constructed by Consolidated Engineering, Inc. for
Tesla Drive and Christopher Way Paving, CIP PS 24-
05, and Authorize the Filing of a Notice of
Completion, Release of Contract Retention, and
Release of Performance and Payment Bonds
SUMMARY:
Consolidated Engineering, Inc. ( Consolidated Engineering), has completed construction of Tesla Drive and Christopher Way Paving, CIP PS 24- 05 (Project).
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. Consolidated Engineering has submitted lien releases confirming that all subcontractors and suppliers have been paid in full. A one- year warranty bond equal to 10% of the construction contract amount has been provided for the improvements being accepted.
Staff requests that the City Council accept the public improvements completed by Consolidated Engineering for the Project. Staff further requests that Council authorize the filing of the Notice of Completion with the San Joaquin County Clerk, the release of contract retention totaling $ 45; 594 to Consolidated Engineering within forty-ive 45) days after the Notice of Completion is recorded, and the release of performance and payment bonds associated with the Project.
Following acceptance, staff requests that any unused project funds be returned to the General Fund Street Reserves ( Fund 1010).
BACKGROUND:
On August 11, 2025, the City Council awarded a contract to Consolidated Engineering, Inc. for construction of the Project in the amount of $ 807, 954, approved a 20% construction contingency of $ 161, 590, and authorized staff to spend up to the contingency amount as necessary to achieve the goals of the Project. The Project consisted of grinding off the existing pavement surfaces and constructing two raised crosswalks on Riverfront Drive with new striping and signage.
REASON FOR RECOMMENDATION:
CITY MANAGER' SREPORT PAGE 2
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY CONSOLIDATED
ENGINEERING, INC. FOR TESLA DRIVE AND CHRISTOPHER WAY PAVING, CIP PS 24- 05
Consolidated Engineering has completed the Project pursuant to the contract documents dated August 11, 2025. Staff has inspected the improvements, and the City Engineer has deemed them complete and in accordance with the approved plans and specifications by the City Engineer.
Consolidated Engineering has submitted a one- year warranty bond ( equal to 10% of the construction contract) for the improvements to be accepted and lien releases confirming all subcontractors and suppliers have been paid in full. The warranty bond covers any repairs or replacements that become necessary during the one- year period following acceptance due to defective materials or workmanship. ,.
The performance bond and payment bond will be released and replaced with the one-year warranty bond upon City Council' sacceptance of the improvements.
FISCAL IMPACT:
The awarded contract was for $ 807, 954, with an authorized 20% construction contingency of $ 161, 590, resulting in a total authorized construction budget of 969, 545. During construction, three change orders totaling $ 103, 911 were issued, bringing the final contract cost at $ 911, 866. Sufficient funds were allocated to CIP PS 24- 05 in the adopted Fiscal Year 2026-7 budget to cover all expenses and close out the Project. Following acceptance, staff requests that all remaining unused project funds be returnedtothe General Fund Street Reserves ( Fund 1010).
ATTACHMENTS:
A. Resolution to Accept Public Improvements Constructed by Consolidated Engineering, Inc. for Tesla Drive and. Christopher Way Paving, CIP PS 24- 05, and Authorize the Filing of a Notice of Completion, Release of Contract Retention, and Release of Performance and Payment Bonds B. Notice of Completion Tesla Drive and Christopher Way Paving, CIP PS 24- 05 CITY MANAGER' SREPORT PAGE 3
SEPTEMBER 14, 2026 CITY COUNCIL REGULAR MEETING
ACCEPT PUBLIC IMPROVEMENTS CONSTRUCTED BY CONSOLIDATED
ENGINEERING, INC. FOR TESLA DRIVE AND CHRISTOPHER WAY PAVING, CIP PS 24- 05
APPROVALS:
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Steven Hollenbeak Date
Assistant Engineer
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Bra Taylor Date
Public Works Director / City Engineer
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Cari James Date
Finance Director
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Thomas Hedegard Date
Deputy City Manager
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Michael King Date
Assistant City Manager
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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
PUBLIC IMPROVEMENTS CONSTRUCTED BY CONSOLIDATED ENGINEERING, INC. FOR TESLA DRIVE AND CHRISTOPHER WAY PAVING, CIP PS 24- 05, 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, City Council awarded a contract to Consolidated Engineering, Inc. (Consolidated) for construction of Tesla Drive and Christopher Way Paving, CIP PS 24- 05 ( Project) in the amount of $ 807, 955, approved a 20% construction contingency of $ 161, 590 and authorized staff to spend up to the amount of the contingency as necessary to achieve the goals of the Project; and
WHEREAS, the scope of work included paving an asphalt overlay on the entire lengths of Tesla Drive and Christopher Way, and installing new traffic striping, markings and markers; 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, Consolidated has submitted lien releases confirming that all subcontractors and suppliers have been paid in full, and a one- year warranty bond equal to 10% of the construction contract amount for the improvements being accepted; and
WHEREAS, staff request that City Council accept the public improvements constructed by Consolidated 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 Consolidated in the amount of $ 45, 594 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 ( Bond No. 7483164) will be released and replaced with a one- year warranty bond in the amount of $ 91, 187 (Bond No. 7483164); 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, three change orders for $ 103, 911 were issued, for a final contract cost at $ 911, 866; and
WHEREAS, following acceptance, staff request that any unused project funds be transferred back to the General Fund Street Reserves ( Fund 1O10).
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby accept the public improvements constructed by Consolidated Engineering, Inc. for Tesla Drive and Christopher Way Paving, CIP PS 24- 05; 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 Consolidated in the amount of $ 45, 594 within forty-ive (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 authorizes the return of unused project funds into the General Fund Street Reserves ( 1010).
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 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 ofrecordingfees (GC 11922)
it
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, ifthere 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 ofthe original contractor, if any, for said work of improvement was: Consolidated Engineering, Inc.
6. That the name and address of the transferor is:
NAME STREET AND NO. CITY STATE
Consolidated Engineering, Inc. P. O. Box 701 Valley Springs, CA 95252
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:
Tesla Drive and Christopher Way Paving, CIP PS 24- 05
That the undersigned has knowledge of the 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 September 14, 2026 by Consolidated 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 ofthe 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