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The City's portion of the work, which includes base repairs, crack sealing, and traffic signal loop installation on St. John Place and Main Street is $56,904. Since this amount was within the contingency City Council authorized the Director of Engineering to approve during the project, the intention was to have the entire area slurry sealed, to process a change order for the City work, and to have the developers pay their respective costs directly to American Asphalt. However, prior to the start of work the weather conditions deteriorated and were no longer warm and dry enough to properly complete the work. The developers of Parcel Map 10529 and Subdivision Map 7940 each completed all conditioned work required of them, with the exception of the slurry seal work that could not be accomplished due to weather conditions. The slurry seal work was holding up their completion and ability to gain their respective Certificates of Occupancy. Understanding the details of slurry seal delay, it was proposed that if each developer submitted their slurry seal payment to the City, their slurry seal condition would be satisfied, and the City would proceed with the project as soon as weather permitted. Working with the City Attorney's Office, this arrangement was formalized by agreement and each developer submitted payment. However, when including the City's share of $56,904, and the developer's combined share of$32,612, Contract Change Order No. 1 totals $89,518. As this amount is above the contingency amount of$77,183 that City Council authorized the Director of Engineering to expend on change orders during the project, staff recommends that City Council approve Contract Change Order No. 1. While it is unlikely there will be any unforeseen conditions requiring additional change orders, $44,977 remains in the project budget and the Director of Engineering has not yet used any of the contingency authority on the project granted by City Council when the project was awarded, so the ability remains to react to field conditions in a timely manner, should it become necessary. Schedule The start of Contract Change Order No. 1 will begin March 2020 and be completed by April 2020, weather permitting. It is anticipated that there will be a few days of partial roadway closure to perform the base repairs, crack sealing, and traffic signal loop installation. The installation of the slurry seal is scheduled to be completed within one day and will require northbound traffic on Peters Avenue and St. John Place to be detoured onto Main Street. Submitted by: Fiscal Review: Approve 514/ii Stephe , irkpatrick Tina Olson Nelson Fialho Director of Engineering Director of Finance City Manager Attachments: 1. Funding and Estimated Expenditure Summary Page 3 of 3