COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: November 18, 2025
SUBJECT: Adoption of a Resolution Authorizing an Increase in Project Contingency for the Citywide Road Resurfacing Project, Bid No. 2025- 01 Description:
The City Council will c onsider approving an increase of $100,000 to the project contingency for the Citywide Road Resurfacing Project, Bid No. 2025 -01, to accommodate potential overruns in material quantities and ensure suffic ient funds are available to complete the project in accordance with City standards.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATIONS:
1. Adopt a Resolution authorizing an increase of $100,000 to the project contingency for the Citywide Road Resurfacing Project, Bid No. 2025-01; and
2. Authorize the City Manager, or designee, to approve project change orders and expenditures within the revised contingency amount.
BACKGROUND:
On August 5, 2025, the City Council awarded Bid No. 2025-01 to Pavement Coatings Co. in the amount of $2,910,328.82 for the Citywide Road Resurfacing Project. The project includes the application of chip seal and fog seal , along with pavement markings and striping replacement throughout various City streets to extend pavement life and reduce long-term maintenance costs.
Several change orders have been issued to date to address unforeseen field conditions and adjustments required to meet City standards. As the project progresses, staff anticipates potential material quantity overruns and cost impacts that may exceed the current authorized contingency level.
2 DISCUSSION:
To ensure the project can be completed in full compliance with City standards without delay, staff recommends increasing the project contingency by $100,000. This adjustment will provide the necessary flexibility to process future change orders related to quantity adjustments or other field conditions that arise during construction.
No changes to the existing contract or scope of work are proposed. All modifications will continue to be processed through standard change order procedures within the limits of the revised contingency.
Alternative(s)
The City Council may choose not to approve the contingency increase; however, this may delay completion or require separate future budget authorization if available funds are exceeded.
Fiscal Considerations
The City Council originally approved a total project budget of $3,492,394.58, which included a 15% contingency of $ 436,549.32. The proposed increase of $100,000 will adjust the total project budget to $3,592,394.58.
Funding for this increase will be provided from existing appropriations within the Enhanced Roadway Maintenance Fund (SB -1, Gas Tax, and Measure A account s). No additional appropriations outside of these funding sources are required .
Impact on the Community
This adjustment ensures sufficient resources are available to complete the resurfacing project to City standards, maintaining roadway safety and qua lity for motorists, cyclists, and pedestrians throughout Santa Maria.
ATTACHMENT(S)
A. Resolution
B. Original Agreement