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BACKGROUND Phase 1 of the I-680/Bemal Avenue Interchange project installed a traffic signal at the intersection of Bernal Avenue and the 1-680 southbound ramps. This signal installation was completed in late 2008. Phase 2 of the interchange project was separated into two stages. Stage 1 was completed with this construction contract and modified the alignment of the signalized intersections at the 1-680 interchange at Bernal Avenue. At the northbound on-ramp intersection, one westbound through lane was converted to a shared through/right turn lane for the northbound on-ramp to reduce vehicle queue and congestion. This included widening the northbound on-ramp to include a second lane to receive the added right turn lane. At the 1-680 on-ramp intersection, one westbound through lane was converted to a second westbound left turn lane to the southbound on-ramp to reduce vehicle queue and congestion. The intersection was also realigned to create a 90 degree intersection and remove a weaving movement from the ramp onto eastbound Bernal Avenue for safety reasons. Stage 2 of Phase 2 of the interchange project will install the landscape and gateway feature elements at this interchange. Construction is currently underway for this project through a separate contract awarded by City Council at their meeting on July 21, 2015. On June 3, 2014, Council awarded the contract to the lowest responsible bidder, Prism Engineering, Inc. in the amount of $1,423,681.30 for Stage 1 of Phase 2 and authorized the Director of Community Development to approve and execute contract change orders for a contingency amount not to exceed $284,700. Council also approved the Fifth Amendment to the Professional Services Agreement with BKF Engineers in the amount of$162,200 to provide design services during construction. In addition, Council adopted a resolution approving a letter of understanding regarding payment of GHC Bernal Investors of$4.5M to fulfill its obligation for the Bernal Interchange Improvement. DISCUSSION The final construction contract cost of Stage 1 of Phase 2 was $1,529,257.46, which includes 35 change orders totaling $105,576.16 (6.9% of the construction contract) The majority of the cost change was a result of needing to reclassify the earthwork due to the archaeological monitoring requirement; encountering unforeseen pavement conditions that required additional dig outs and asphalt, as well as the removal of pavement fabric; complying with change that Caltrans made to the standards for guardrails; and increases in contract quantities as part of the balancing change order. Staff recommends that $15,000 be retained to cover the cost of replacing one signal pole at the intersection of Bernal Avenue and the 1-680 NB on-ramp. The signal modification was constructed per the approved project plans. However, at the post-construction field review with Caltrans staff, Caltrans recommended replacing an existing signal pole with a bigger pole and foundation to accommodate the additional wind load due to the installation of an electronic no right turn sign on this pole. The City's signal maintenance contractor will replace the signal pole as recommended by Caltrans. The City received Stop Notices from two subcontractors of Prism Engineering, Inc. totaling $13,790.76 for incomplete payment. At this time, the Stop Notices are still outstanding, and per Civil Code, the City will withhold 125% of the amount of the stop Page 2 of 3