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The zig-zagging lines that once adorned Ladd Lane and Southside Road, drawing international attention, and the jokes aimed at the city for the botched job are a part of the past. But the financial dispute over the project between the city and the road project contractors continued until recently when the parties conditionally settled.
According to a lawsuit settlement reached on Dec. 1 in San Benito County Superior Court, Hollister and primary project contractor Precision Grade will pay subcontractor Sierra Traffic Markings a total of $100,000 related to the project balance, change orders and damages arising from the project. The city’s portion is $72,500.
Interim City Manager Jim Pia said it was the Hollister City Council’s decision to settle.
“It was a good settlement in terms of resolution to the city,” he said.
Hollister Mayor Roxanne Stephens did not respond to BenitoLink’s request for comment.
Court filings indicated the settlement is conditioned upon Precision Grade requesting by Jan. 5 that the court dismiss the lawsuit. As of Dec. 26, such a request was not reflected in court records.
In March 2022, Precision Grade was contracted by the city for $596,336 to transform the four-lane road into a two-lane street with delineators and round tables to address speeding in that area.
According to the lawsuit filed in November 2024, Precision Grade was seeking at least $252,997 it said the city still owed for the job and damages.
Precision Grade hired Sierra Traffic Markings for $262,176 to perform a portion of the project, the lawsuit indicated.
The city filed a cross-complaint in April 2025, claiming it had withheld $251,728 due to damages it suffered arising out of delays to the project. The damages the city alleges include costs incurred to investigate and document deficiencies in the project, costs associated with supervising corrective work, and attorney’s fees in enforcing the contract.
The cross-complaint goes on to say the city suffered $500,500 in damages arising from not completing the work on time. According to the claim, Precision Grade finished the work 143 working days late.
The city blamed “deficient work” by Sierra Traffic Markings for the delays but did not elaborate.
However, Precision Grade contended the project was delayed as a result of communication between city officials and Sierra Traffic Markings without the knowledge of the Salinas-based contractor, and contended such communication led to confusion.
It alleges the city verbally approved a temporary draft striping that was laid out by Sierra Traffic Markings and that Precision Grade attempted to have the subcontractor address its own mistakes.
“On or about September 7, 2022, Precision issued a letter to STM that served as a notice to cure its work and proceed with correction,” the lawsuit states. “On or about September 13, 2022, STM again denied the request, asserting that it had received direct instructions from the city.”
The company goes on to state that its request to the city to change subcontractors was approved but Sierra Traffic Markings appealed the approval saying it had performed the work outlined in the modified plans, and the city was unable to find a hearing officer for the substitution request.
Precision stated it eventually opted to work with Sierra Traffic Markings to get slurry work done before winter because “it was apparent the city was not going to find a hearing officer in 2022.” However, that work was not done as a result of the cold weather.
The job was eventually completed in July 2023, according to the lawsuit.
Community pushback ensued, as well as a report from the San Benito County Civil Grand Jury noting the traffic measures violated state fire codes and did not allow drivers to comply with vehicle code requiring drivers to yield to emergency vehicles.
The city eventually rebid for the project as part of the 2024 city wide roadway improvement project and the roads were returned to their original design.
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