ADMINISTRATIVE STAFF REPORT 8.9
TO: Mayor and Town Council August 11, 2026
SUBJECT: Resolution No. 74-2026, authorizing a contract change order for additional work under the 2025/26 Pavement Slurry Seal Project, Contract No. C-610J, CIP No. C-655
BACKGROUND
The Pavement Management Program is an annual effort approved by the Town Council to maintain the Town’ s street system at a high level of service. The program utilizes preventative maintenance treatments, including crack sealing and slurry sealing, to extend pavement life and avoid more costly pavement rehabilitation or reconstruction in the future.
On March 3, 2026, the Town Council adopted Resolution No. 18-2026, awarding the 2025/ 26 Pavement Slurry Seal Project, Contract No. C-610J, to American Pavement Systems, Inc. of Modesto, California. The construction contract was awarded in the amount of $1,766,273.46, with a 15% construction contingency of $264,941, resulting in an original total construction budget of $2,031,214.46.
Seven bids were received for the project. The bid submitted by American Pavement Systems was approximately $ 813,000 below the Engineer’ s Estimate of $2,578,998. The competitively bid contract includes asphalt concrete dig-out repairs, crack sealing, Type I and Type II slurry seal, traffic control, pavement striping and markings, pavement markers, utility cover adjustments, and related work.
CIP No. C-610 has since been closed and replaced by CIP No. C-655 as the Town’ s Pavement Management Program funding account. Contract No. C-610J remains the applicable construction contract number for the 2025/ 26 Pavement Slurry Seal Project.
DISCUSSION
Additional pavement preservation work had previously been identified through the Town’ s pavement management program for the following roadway segments:
Crow Canyon Road from Camino Tassajara to the southern Town limits; Camino Tassajara generally east of the Crow Canyon Road intersection; and Camino Ramon from Sycamore Valley Road to Kelley Lane.
Authorize Construction Change Order 2 August 11, 2026
2025/ 26 Pavement Slurry Seal Project
CIP No. C-610J
The proposed additional work consists primarily of asphalt concrete dig-out repairs, crack sealing, Type II slurry seal, traffic control, pavement striping and markings, pavement markers, utility cover adjustments, and related pavement preservation work.
The work will also include modifications to bicycle lane striping along portions of Crow Canyon Road and Camino Tassajara.
These roadway segments involve the same general pavement preservation treatments included in the competitively bid contract. Although Crow Canyon Road, Camino Tassajara, and Camino Ramon are higher-volume arterial roadways that will require more extensive traffic control and coordination, the original contract already includes Type II slurry seal, traffic control, pavement striping, bicycle lane markings, and similar pavement preservation work.
Incorporating the additional roadway segments into the existing contract will provide greater construction efficiency because American Pavement Systems is already mobilized and performing similar work for the Town. The additional work can be coordinated under the same construction schedule, traffic control planning, public notification, inspection, and contract administration efforts.
Adding the work to the existing contract will also:
Avoid duplicative mobilization and project startup costs; Coordinate pavement treatment, traffic control, and striping work under a single construction schedule;
Reduce the time and administrative expense associated with preparing and advertising a separate construction contract; and
Allow the additional pavement preservation work to be completed during the current construction season.
Existing contract unit prices will be used where applicable. Pricing for work that is not adequately represented by the original bid items, including enhanced traffic control and modified bicycle lane striping treatments, will be negotiated with the contractor and reviewed by staff for reasonableness before execution of the change order.
The Contract Special Provisions authorize the Town to add to, alter, or delete portions of the work through a written contract change order. Staff has determined that the proposed additional work is within the same general scope, purpose, and character as the competitively bid 2025/ 26 Pavement Slurry Seal Project. Because of the size of the proposed change order, staff is seeking express authorization from the Town Council before proceeding.
Authorize Construction Change Order 3 August 11, 2026
2025/ 26 Pavement Slurry Seal Project
CIP No. C-610J
American Pavement Systems will be required to provide any necessary increases to its performance bond, payment bond, and insurance coverage based on the revised contract amount.
The additional work consists of maintenance and repair of existing public streets and is therefore categorically exempt from the requirements of the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301, Class 1.
PUBLIC CONTACT
Posting of the meeting agenda serves as notice to the general public. Before construction begins, residents and businesses within close proximity to the project will be notified by the contractor in writing.
FISCAL IMPACT
The proposed contract change order with American Pavement Systems, Inc. is in an amount not to exceed $ 1,450,000. A 15% construction contingency of $ 217,500 is recommended, resulting in a total additional construction authorization of $1,667,500.
The revised construction authorizations would be as follows:
Original construction contract: $ 1,766,273.46
Original 15% construction contingency: $ 264,941.00
Proposed contract change order: $ 1,450,000.00
Additional 15% construction contingency: $ 217,500.00
Revised total construction budget: $ 3,698,714.46
Sufficient funds have been appropriated in the Pavement Management Program, CIP No.
C-655, to cover the additional construction authorization.
Authorize Construction Change Order 4 August 11, 2026
2025/ 26 Pavement Slurry Seal Project
CIP No. C-610J
RECOMMENDATION
Adopt Resolution No. 74-2026, authorizing a contract change order for additional work under the 2025/ 26 Pavement Slurry Seal Project, Contract No. C-610J, CIP No. C-655.
Prepared by:
Steven Jones, P.E.
City Engineer
Reviewed by:
Diane J. Friedmann
Development Services Director
Attachments: A – Resolution No. 74-2026
B – CIP Page No. C-655
RESOLUTION NO. 74-2026
AUTHORIZING A CONTRACT CHANGE ORDER FOR ADDITIONAL WORK UNDER THE 2025/26 PAVEMENT SLURRY SEAL PROJECT, CONTRACT NO. C610J, CIP NO. C-655 WHEREAS, the Danville Town Council has appropriated funding in the Capital Improvement Program for the Town’ s Pavement Management Program, CIP No. C-655, which replaced the former CIP No. C-610; and
WHEREAS, on March 3, 2026, the Town Council adopted Resolution No. 18-2026, awarding the construction contract for the 2025/ 26 Pavement Slurry Seal Project, Contract No. C-610J, to American Pavement Systems, Inc. of Modesto, California, in the amount of $1,766,273.46; and
WHEREAS, Resolution No. 18-2026 also authorized use of a 15% construction contingency of $ 264,941, resulting in an original total construction budget of 2,031,214.46; and
WHEREAS, the original competitively bid contract includes asphalt concrete dig-out repairs, crack sealing, Type I and Type II slurry seal, traffic control, pavement striping and markings, bicycle lane markings, pavement markers, utility cover adjustments, and related pavement preservation work; and
WHEREAS, additional pavement preservation work had previously been identified through the Town’ s pavement management program for Crow Canyon Road from Camino Tassajara to the southern Town limits, Camino Tassajara generally east of the Crow Canyon Road intersection, and Camino Ramon from Sycamore Valley Road to Kelley Lane; and
WHEREAS, the proposed additional work consists of the same general type, purpose, and character of pavement preservation work included in the original competitively bid contract, together with modifications to bicycle lane striping along portions of Crow Canyon Road and Camino Tassajara; and
WHEREAS, American Pavement Systems is already mobilized and performing similar pavement preservation work for the Town, and incorporating the additional roadway segments into the existing contract will provide greater construction and administrative efficiency; and
WHEREAS, incorporating the additional roadway segments into the existing contract will avoid duplicative mobilization, coordinate construction scheduling, traffic control and public notification, reduce administrative costs and public disruption, and allow Docusign Envelope ID: F43010B0- D6CE- 8A64-8053-EAADB975C0E4
ATTACHMENT A
PAGE 2 OF RESOLUTION NO. 74-2026
additional pavement preservation work to be completed during the current construction season; and
WHEREAS, existing contract unit prices will be used where applicable, and pricing for work not adequately represented by the original bid items will be negotiated with the contractor and reviewed by Town staff for reasonableness; and WHEREAS, the proposed additional work consists of maintenance and repair of existing public streets and is categorically exempt from the requirements of the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301, Class 1; now, therefore, be it
RESOLVED, by the Danville Town Council, that the Town Council finds that the proposed additional work is within the same general scope, purpose, and character as the competitively bid 2025/ 26 Pavement Slurry Seal Project, Contract No. C-610J; and, be it further
RESOLVED, by the Danville Town Council, that the Town Manager be and hereby is authorized to execute, on behalf of the Town, a contract change order with American Pavement Systems, Inc. in an amount not to exceed $ 1,450,000 for the additional pavement preservation work described in the Administrative Staff Report, with expenditures charged to the Pavement Management Program, CIP No. C-655; and, be it further
RESOLVED, that the Danville Town Council authorizes use of an additional 15% construction contingency in the amount of $217,500 from funds appropriated in CIP No.
C-655, resulting in a total additional construction authorization of $ 1,667,500 and a revised total construction budget of $3,698,714.46; and, be it further RESOLVED, that the City Clerk is hereby directed to attest the contract change order and affix thereto the official seal of the Town.
Docusign Envelope ID: F43010B0- D6CE- 8A64-8053-EAADB975C0E4 PAGE 3 OF RESOLUTION NO. 74-2026
APPROVED by the Danville Town Council at a regular meeting on August 11, 2026, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
MAYOR
APPROVED AS TO FORM: ATTEST:
CITY ATTORNEY CITY CLERK
Docusign Envelope ID: F43010B0- D6CE- 8A64-8053-EAADB975C0E4 danville. ca.gov CIP 125
Pavement Management:
Local/ Residential Streets
CIP Project: C-655
Department/Division: Engineering
Type: Rehabilitate/Replacement
Status:
Completed Phases:
2024/25
Pavement overlay including resurfacing,
asphalt concrete overlay, ADA compliant
sidewalk curb ramps, traffic striping in
various neighborhoods throughout Town
2025/26
Pavement slurry
seal
Future Phases:
2026/27
Pavement overlay
Description:
The Pavement Management: Local/ Residential Streets Project is an annual effort to maintain the Town’ s street system at a high level of service. A proactive approach to pavement maintenance prevents more costly pavement repairs in the future. The program consists of two approaches: a proactive approach that utilizes preventative maintenance methods such as Crack Seal, Slurry Seal and Rubberized Cape Seal; and rehabilitation, which includes overlays and reconstruction that replace the pavement wearing surface. The planned level of expenditures is aimed at sustaining a minimum overall pavement condition index (PCI) of 70 for Town streets.
Project Cost Estimate:
Prior Years 2026/27 2027/28 2028/29 2029/30 2030/31
Design/ Plan Review $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Construction $ 4,815,561 $ 2,900,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 Inspection & Admin.$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Total Cost Estimate: $ 4,815,561 $ 2,900,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 Total Expenditure:$ 0
Unexpended as of 3/31/ 26: $ 4,815,561
Project Appropriation and Funding:
Prior Years 2026/ 27 2027/ 28 2028/ 29 2029/ 30 2030/ 31 CIP Gen Purpose Rev $ 1,294,895 $ 400,000 $ 150,000 $ 0 $ 0 $ 0 Gas Tax $ 748,083 $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 750,000 Grant $ 80,882 $ 0 $ 0 $ 0 $ 0 $ 0
Meas J Rtrn to Src $ 549,750 $ 550,000 $ 550,000 $ 550,000 $ 550,000 $ 550,000 Solid Waste VIF $ 2,141,951 $ 1,200,000 $ 1,350,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Total Funding: $ 4,815,561 $ 2,900,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000
ATTACHMENT B