AgdaPkt 2008-03-24 Clsd and Reg - Laserfiche WebLink

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6.28 Page 1 REPORT TO the Honorable Mayor and City Council FrOm th~ Ci . Mana er March 24, 2008 SUBJECT Final Acceptance - Route 101/Ralston Avenue Interchange Improvements Project (Engineeftng FHe No. 803..o2} RECOMMENDATION Accept, by motion, Route 101/Ralston Avenue Interchange Improvements Project, authorize final value of contract, and authorize the release of bonds and remaining retention according to City procedures. BACKGROUND On August 11, 2003, Council approved the contract documents, and awarded the construction contract for the Route t01/Ralston Avenue Interchange Improvements Project to O.C. Jones & Sons, Inc. of Berkeley, California. The interchange was redesigned to increase efficiency for motorists during peak traffic hours. The nature of the project required the City to comply with Caltrans' terms and conditions of work. Acceptance of this project has been detayed due to lengthy negotiation with the contractor and subcontractor over payment for additional work. Construction was substanttaHy completed in March 2006. Retentron has twice been reduced, from 10% to 5%, and again to 1.25%, in accordance with Caltrans practices. In January 2008, the contractor accepted the City's offer to close out the project, thereby preventing any future claims by the contractor. The contract price was finalized in February 2008 after adjustment for quantities of materials. The project was awarded for the base bid of $12,426,983. Council has authorized two increases in contract value. On February 28, 2005, Council authorized an increase from 10% to 15% of the contract value. On October 24, 2005, Council authorized an additional increase from 15% to 20% of the contract value. Change orders (175) were issued totaling $2,576,710 or 20.7% of the original contract amount. Change orders resulted from unforeseeable site conditions, quantity adjustments of materials. and additional design and construction. Staff attributes the significant overage on this project to required compliance with Caltrans' terms and conditions and notes that sizeable variances are common to Caltrans related construction activity. In February 2008, this project received recognition from Caltrans for Excellence in Transportation in the Urban Highway category. ALTERNATIVES Council may choose not to accept the project and direct staff to renegotiate the final contract price.