ADMINISTRATIVE REPORT
MEETING DATE: 7/15/2026 AGENDA CATEGORY: Consent – Agreements TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: 6/24/2026
SUBJECT: Contract Change Order Nos. 23, 35, 36, and 54 to Agreement No. 2024-235 (7th Movement) with Granite Construction Company (increasing compensation by $32,509.79; revised not to exceed $28,102,546.72) for the Centennial Corridor EB58 to NB99 Loop Connector Project. (Wards 1 & 2)
RECOMMENDATION:
Staff recommend approval of the change orders.
BACKGROUND:
The 7th Movement Project proposes to construct a new freeway connector ramp from eastbound State Route (SR) 58 freeway to northbound SR 99. At the SR58/SR99 Interchange, construct a new connector starting west of SR 99, on the south side of 58 with a bridge widening over SR 99, a new bridge spanning over Wible Road, and connecting to n orthbound SR 99. This project also includes the construction of a bike path from Commerce Drive to California Avenue with a pedestrian bridge over the Carrier Canal, permanent closure of the southbound SR 99 to Stockdale Avenue off -ramp, drainage improvements for the Elcia Drive and Real Road intersection, and installation of permanent barrier at the Ming Avenue to southbound SR 99 on -ramp. This Project was awarded in September of 2024 and has an estimated completion date of August of 2026.
Change Order No. 23 provides compensation to the contractor to construct approximately 198.40 linear feet of concrete gutter. This concrete gutter on the northbound Ming Ave connector ramp was not shown in the plans and is necessary to complete the project to Caltrans standards. This change order results in a net increase of $27,000.00.
Change Order No. 3 5 provides compensation to the contractor for the additional Temporary Hydrolic Mulch, Temporary Silt Fence, Import Borrow Materials, Straw, Hydroseed, and incorporat e materials .
Request-for-Information No. 108 was submitted due to potential discrepancies between the Contractor’s survey data and original bid quantities for earthwork. An independent survey was conducted by City’s Construction Management group and shar ed with City design consultant. It was determined additional quantities for these bid items at their bid item unit price. This change order results in a net increase of $3,309.79.
Change Order No. 3 6 provides compensation to the contractor for additional Drill and Bond Dowels. It was found during the that the quantities for drill and bond dowels were not included on one the project sheets. The work will be paid by field measurement/ verification for a net increase of $2,200.00.
Change Order No. 54 will be utilized to record changes pertaining to the Disadvantaged Business Enterprise (DBE) program (49 CFR 26). The US Department of Transportation’s Interim Final Rule, effective October 3, 2025, modified the DBE program. The City has reviewed the Construction Procedure Directive provided by Caltrans on October 29, 2025, with guidance in alignment with the United States Department of Transportation’s Frequently -Asked-Questions, p ublished October 24, 2025. Effective immediately, enforcement of the existing contract requirements related to the DBE Program, as outlined in Sections 2-
1.12, “Disadvantaged Business Enterprise” and 5 -1.13B, “Disadvantaged Business Enterprises,” of the Standard Specifications and Special Provisions will be suspended except for Section 5 -1.13B(2)(c) “Termination”. Upon reauthorization of the DBE Program by the Federal Highway Administration, the suspensions may be removed. This change order has no time adjustments or monetary increase.
FISCAL IMPACT:
The sum of all change orders to date on this project reflects a total cost increase of $802,249.92 which results in a 2.94% increase of the original contract amount as illustrated below:
Original Contract Amount = $27,300,296.80
Previous Change Orders = $769,740.13
Current Change Order = $32,509.79
Amended Contract Agreement after CCOs = $28,102,546.72
Net Increase to date = $802,249.92
There is no General Fund impact associated with this change order.
Federal, State, and Local funding for this change orde r is available in project 25PWTR01 Centennial Corridor 7th Movement.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Contract Change Order 23
2. Contract Change Order 35
3. Contract Change Order 36
4. Contract Change Order 54