City of Piedmont
COUNCIL AGENDA REPORT
DATE: December 15, 2025
TO: Mayor and Council
FROM: Rosanna Bayon Moore, City Administrator
SUBJECT: Consideration of a Contract Amendment for the 2025 Pavement Rehabilitation Project to McGuire and Hester in the Amount of $344,324 for an Overall Project Budget of $1,854,409
RECOMMENDATION
By a single motion, take the following actions regarding the 2025 Pavement Rehabilitation Project:
1. Approve a contract amendment for the 2025 Pavement Rehabilitation Project to McGuire and Hester in the amount of $344,324, bringing the overall budget of the project to $1,854,409.
2. Authorize the Public Works Director to execute any change orders associated with the project up to the newly authorized amount.
BACKGROUND
On July 7, 2025, the City Council awarded the 2025 Street Restoration Project to McGuire & Hester in the amount of $1,372,805. Additionally, $137,281 in contingency funds were awarded, for a total construction budget of $1,510,085.
DISCUSSION
A significant amount of striping was included in the original design of the project. Part of the striping was in and around Piedmont’s Civic Center area. Due to the timing of the school district’s summer break and when the contractor could potentially get started on the project, staff removed all striping associated with the Civic Center from the 2025 Street Restoration project and attempted to bid the Civic Center striping as a stand-alone project to be completed over the summer.
Staff solicited bids from several striping companies at the beginning of July in hopes that all striping could be completed by the start of school in mid-August. The City received no response from any contractor for this work. In checking with several of the contractors that considered bidding, all of them explained their schedules for already committed work were such that they could not complete the work prior to when school was scheduled to begin.
Due to the extent of striping adjacent to schools in the Civic Center area, it is necessary for all striping to occur while schools are not in session. The overall work will take approximately 1-2 weeks to complete.
Staff requested a bid from McGuire & Hester to expand the striping shown in the 2025 Pavement Restoration Project to include the Civic Center Striping. McGuire & Hester provided a bid to complete all Civic Center Striping using the same unit costs as was in their original bid. Based on the quantities of striping, red curb, and signage required in the Civic Center area, the overall cost using the original unit costs as shown in their bid is $255,000.
This amount was not included in the original award of the contract. Roadways that would be included in the Civic Center restriping effort are:
• Highland Ave. (between Moraga Ave. and Wildwood Ave.) • Bonita Ave. (between Magnolia Ave. and Oakland Ave.)
• Hillside Ave. (between Magnolia Ave. and Oakland Ave.) • Magnolia Ave. (between Hillside and Highland Ave.)
• Vista Ave. (between Hillside and Highland Ave.)
Additionally, during the course of the project, several changes were encountered:
The contractor for Grand Avenue Project was not able to keep pace with the established schedule. Part of the Grand Avenue project included a rubberized cape seal over the southbound section of Grand Avenue between Linda Avenue and the south end of the job.
The prime contractor had a subcontractor scheduled to do the work and the subcontractor was unable to perform the work prior to the anticipated end date of the project.
In reviewing the bid from McGuire & Hester for the 2025 Pavement Restoration Project, the project also included rubberized cape sealing of several streets. In an effort to ensure the work be completed on time, staff executed a deductive change order with the Grand Avenue Project contractor, Rapid Grading & Paving, to remove the rubberized cape sealing and associated striping, and executed another change order with McGuire & Hester to add the Grand Avenue rubberized cape sealing to their contract, as the work would get more expeditiously and at a lower unit cost. This change eliminated over $99,000 from the Grand Avenue project and added approximately $50,000 to the 2025 Pavement Restoration Project, providing a net savings to the City of approximately $49,000. However, this additional work was not included in the original award of the 2025 Pavement Restoration Project and this change expended a significant portion of the allocated contingency funds.
During the course of the 2025 Pavement Restoration Project, in two locations there were waterline leaks discovered (one on Dracena and one on lower San Carlos Avenue). Although staff coordinated with EBMUD, McGuire & Hester was required to perform additional work, totaling approximately $48,000. Staff will be coordinating with EBMUD to file a claim for reimbursement; however, the contractor will need to be paid for this work in a timely manner.
Additional work to address damaged curb and gutter previously buried under asphalt, failed pavement, and missing striping has been required on several of the roadways, as the contractor encountered conditions worse than expected which necessitated more extensive repairs in order to ensure a lasting, quality product. These changes total more than was allocated in the original approved construction budget.
The Civic Center striping is scheduled to take place between December 22 and January 5 (when schools are out). Staff are seeking approval of additional budget prior to Agenda Report Page 2
commencement of the striping work.
Additional of Grand Avenue work $50,000
Additional of Civic Center striping $255,000
Additional work due to water leaks $48,000
Other changes during contract $128,605
TOTAL $481,605
FISCAL IMPACT
The original sources of funding for the project were Measure BB (Local Streets and Roads), Vehicle Registration Fee (VRF), and Senate Bill 1 (SB-1). The following funding sources will be utilized for the additional roadway improvements:
Project contingency $137,281
Grand Ave. Project unused contingency $100,000
Measure BB Streets/Roads $244,324
TOTAL $481,605
By: Daniel Gonzales, Public Works Director
John Wanger, City Engineer
Agenda Report Page 3