City Council Staff Report Page 1 of 2 July 28, 2026
Staff Report
Agenda Item No. 4.8
DATE: July 28, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Accepting Completion of the Kennedy Park Improvements, Phase I, City Project No. 24-15, and Authorizing Release of the Retention Payment to RNR Paving, Inc.
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution accepting the Kennedy Park Improvements, Phase I, City Project No. 24-15, and authorizing the release of the $14,877.69 retention payment to RNR Paving, Inc.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.
BACKGROUND
On March 10, 2026, the City Council adopted Resolution No. 2026-026, awarding a construction contract to RNR Paving, Inc., in the amount of $271,922.91, and approving a construction budget, with contingency and construction support, in the amount of $326,308, for the Kennedy Park Improvements, Phase I, City Project No. 24-15. The contractor has completed the project in accordance with the project plans and specifications.
DISCUSSION
The project scope included parking lot resurfacing, concrete sidewalk, driveway, curb ramp and curb improvements, striping, and bioretention basin and drainage modifications.
The project was completed in June 2026, and all final project punch-list items have been resolved with the contractor.
Agenda Item No. 4.8
City Council Staff Report Page 2 of 2 July 28, 2026
The final construction cost for the project is $297,553.78, which is $25,630.87 (approximately 9.43%) above the original construction contract amount. This increase is due to two construction change orders to address additional quantities in original bid items, drainage modifications, and gate post replacements.
Approved Construction Budget with Contingency $326,308.00 Construction Contract Baseline Costs $271,922.91
Change Order #1 $ 8,395.00
Change Order #2 $ 17,235.87
Total Project Cost $297,553.78
The City withheld a retention amount of five percent (5%) for each progress payment made to the contractor in accordance with standard construction practice. The total retention amount to be released upon project acceptance is $14,877.69.
FISCAL IMPACT
This project is funded by Community Development Block Grant Funds (Account No. 231- 92415-57127) and Park-in-Lieu (Residential) Funds (Account Number 255-92415- 57127), as identified in the Five-Year Capital Improvement Plan (CIP) for FY 2025-2026 through FY 2029-2030. There are sufficient funds for the total project cost.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Accepting the Kennedy Park Improvements, Phase I, City Project No. 24-15; and
2. Authorizing the release of the retention payment, in the amount of $14,877.69, to RNR Paving, Inc.
Prepared by: Trieu Tran, Civil Engineer III
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Draft Resolution
2. Exhibit A – Certificate of Completion
3. Exhibit B – Notice of Completion and Notice of Acceptance