REPORT TO THE CITY COUNCIL FROM: SCOTT MOZIER, PE, Director Public Works Department BY: JILL M. GORMLEY, TE, Assistant Director Public Works Department, Traffic & Engineering Services Division JAIRO MATA, Public Works Manager Public Works Department, Traffic and Land Planning Section SUBJECT ..Title Approve a Reimbursement Agreement with Century Communities of California, LLC for the application of Type I Slurry Seal regarding Final Map of Tract No. 6281, in the amount of $113,458.92 and authorize the Public Works Director, or designee, to execute the Reimbursement Agreement subject to modifications which shall be approved as to form by the City Attorney's Office (Council District 4) ..Body RECOMMENDATION Staff recommends the City Council to approve the standalone Reimbursement Agreement for the Final Map of Tract No. 6281, authorizing the Public Works Director or his designee to execute the agreement with Century Communities of California, LLC, for the application of Type I Slurry Seal to all Tract No. 6281 local streets, and authorizing City reimbursement to Century Communities in the amount of $113,458.92 no later than July 31, 2026. EXECUTIVE SUMMARY The Public Works Department requests Council approval of the standalone Reimbursement Agreement for the Final Map of Tract No. 6281 between Century Communities of Californica, LLC, and the City of Fresno. The Agreement requires Century Communities to apply a Type I Slurry Seal to all local streets within Tract No. 6281as a condition precedent to the City's acceptance of Tract No. 6281 subdivision improvements. In return, the City will reimburse Century Communities the difference between the cost of the originally required seal coat of $59,800.00, and the cost of the higher-quality Type I Slurry Seal of $173,258.92, for a total City reimbursement of $113,458.92. The payment shall be made no later than July 31, 2026, after City inspection and acceptance of the Slurry Seal application. BACKGROUND On October 14, 2021 the City and Century Communities of California, LLC entered into a Subdivision Agreement for the Final Map of Tract No. 6281 recorded on November 24, 2021 as Document No. 2021-0193941 in the Official Records of the County of Fresno, California. Century Communities desires to obtain the City's acceptance of Tract No. 6281 subdivision improvements. Century Communities' obligation is to address remaining corrective work that would be satisfied by applying a seal coat to all local street within Tract No. 6281 at Century Communities' sole expense, at the amount $59,000.00, as a condition precedent to City's Acceptance of Tract N0. 6281, subdivision improvements. The City has determined that a Type I Slurry Seal treatment would be a better investment to address Century Communities' obligation as well as provide a higher-level, longer-lasting pavement treatment to all local streets within Tract No. 6281. Century Communities has obtained a low bid amount of $173,258.92 to apply the Type I Slurry Seal treatment to all local streets within Tract No. 6281. The proposed standalone Reimbursement Agreement requires Century Communities to apply the Type I Slurry Seal treatment to all local streets within Tract No. 6281, and request City inspection immediately after completion. The City shall reimburse Century Communities $113,458.92, the difference between the Type I Slurry Seal Slurry Seal amount of $173,258.92 and the seal coat amount of $59,800.00 no later than July 31, 2026 upon acceptance by the Public Works Director or designee. The Type I Slurry Seal is a typical pavement preservation application for the roadways in the CFD at the roadway age within Tract No. 6281. ENVIRONMENTAL FINDINGS N/A LOCAL PREFERENCE Local preference was not considered because this Agreement does not include a bid or award of a construction or services contract. FISCAL IMPACT The City will reimburse Century Communities $113,458.92, the difference between the Type I Slurry Seal Slurry Seal amount of $173,258.92 and the seal coat amount of $59,800.00 no later than July 31, 2026. Payment shall be drawn from the available Tract No. 6281 fund balance within Community Facilities District No. 11. Attachments: Recorded Subdivision Agreement for Tract No. 6281 Recorded Final Map Tract No. 6281 Reimbursement Agreement for Tract No. 6281 Resolution No. 2021-193 Communities Facilities District (CFD) No. 11 Annexation No. 96