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BACKGROUND On May 7, 2019, City Council awarded a contract in the amount of $771,829 to the lowest bidder, American Asphalt Repair & Resurfacing Company, Inc., for the Annual Slurry Seal of Various Streets Project, CIP No. 18504. The project consisted of applying a thin layer of pavement coating to approximately 1.7 million square feet of pavement on 25 city streets to prolong the service life of the existing pavement. The project included Type II slurry seal on most of the streets, and micro-pavement on streets with significant traffic volumes. On May 7, City Council also authorized the Director of Engineering to approve change orders up to the project contingency amount of$77,183. Construction began in August 2019 and was substantially completed in October 2019. The Director of Engineering did not issue any change orders during construction. A condition of approval for Parcel Map 10529 (377 Peters Avenue) required the developer to slurry seal a portion of Peters Avenue adjacent to their project because of the amount of trenching (patching) in the street required to install utilities to service their project. A condition of approval for Subdivision Map 7940 (535 and 550 St. John Place) required the developer to slurry seal a portion of St. John Place adjacent to their development, also due to the amount of trenching in the street necessary to extend utilities to their project. City staff was asked for a recommendation regarding qualified slurry seal contractors by each of the developers, and let the developers know that recent experience with American Asphalt Repair & Resurfacing Company, Inc. was positive. Staff also informed the developers that Peters Avenue (from St. Marys Street to St. John Place) and St. John Place (from Main Street to the west end cul-de-sac) are scheduled to be slurry sealed as part of the City's preventative maintenance program in summer 2021. Each developer desired to do their required work immediately so they could finalize their respective projects. The developer of Parcel Map 10529 received a proposal in the amount of $22,612 from American Asphalt to perform their project's required slurry seal work, including pavement markings restoration. The developer of Map 7940 received a proposal from American Asphalt in the amount of $10,000 for their project's required slurry seal work, also including pavement markings restoration. These proposals are consistent with the per square foot cost and traffic striping costs in the City's current contract with American Asphalt. DISCUSSION Peters Avenue (from St. Marys Street to St. John Place) and St. John Place (from Main Street to the west end cul-de-sac) are scheduled to receive slurry seal treatment in summer 2021. To reduce the traffic impacts and other inconveniences to the community caused by construction, and to improve the aesthetics of the slurry seal work by completing all the work at one time, the Director of Engineering began a discussion with the developers whereby the City would accelerate the planned slurry seal work on Peters Avenue and St. John Place by issuing a change order under the current contract with American Asphalt. As a part of the change order, the developers would each pay the amount quoted to them by American Asphalt. Page 2 of 3