June 24, 2025
Public Works
DATE: June 24, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works /City Engineer
Darcie DeLashmutt, Capital Project Manager
Subject:
Contract Amendment No. 1 with Azul Works, Inc. for the
Shields-Reid Park Improvement Project
FINANCIAL IMPACT: The proposed $400,000 increase to the construction contingency for the Shields-Reid Park Improvement
Project will bring the total construction contract authority with Azul Works, Inc. to $4,897,064.31. The additional
contingency authority will be funded from the existing
$8,000,000 grant awarded by the State of California
Department of Parks and Recreation Statewide Park
Development and Community Revitalization Program
(SPP). No additional City funds are required (Account
String: 10633031-400708-23028)
PREVIOUS COUNCIL
ACTION:
October 19, 2022
May 7, 2024
STATEMENT OF THE
ISSUE:
The current construction contingency of $408,824 for the Shields-Reid Park Improvement Project is nearly
exhausted due to a combination of City-requested
changes and unforeseen site conditions. To complete the project and maintain flexibility for closeout, City staff recommends increasing the contingency by $400,000,
bringing the total construction contract authority to
$4,897,064.31.
AGENDA
REPORT
June 24, 2025
RECOMMENDED ACTION:
ADOPT resolution and APPROVE the first amendment to
the contract with Azul Works, Inc. to increase the
construction contingency for the Shields-Reid Park
Improvement Project by $400,000, from $408,824 to
$808,824, for a revised total payment limit of
$4,897,064.31, and AUTHORIZE the public works
director to approve change orders within this amended
amount – Public Works Department (Darcie DeLashmutt
510-672-3944/Robert Armijo 510-620-5477).
DISCUSSION:
In December 2021, the City of Richmond was awarded $8,000,000 in grant funding from the State of California Department of Parks and Recreation Statewide Park Development and Community Revitalization Program (SPP) to renovate the southern portion of Shields-Reid Park (Capital Improvement Project No. 23028) (Attachment 1).
This 5.17-acre park, located in North Richmond, was prioritized for investment following extensive community engagement in 2020, which identified safety, cultural identity, and recreational access as key community priorities (Attachment 2).
On May 7, 2024, the City Council awarded a construction contract to Azul Works, Inc. in the amount of $4,088,240.31 and authorized a fixed contingency of $408,824 to address changes that may arise during construction (Attachment 3). The contract scope includes construction of a stage, children’s play areas, a fitness zone, community gathering spaces, bicycle pump track, lighting, public restrooms, and other features designed with sustainability, accessibility, and community identity in mind.
Since construction began, nearly the entire authorized contingency has been committed to City-requested changes, including the installation of a new electrical service, substitution of a poured-in-place play surface for wood fiber, renovations to existing basketball courts, Civicorps-led planting around the Community Center, and the installation of public art and associated lighting. These changes were initiated to better reflect community priorities and enhance long-term usability of the park.
In addition to these City-requested changes, staff has encountered several unforeseen field conditions requiring modifications to irrigation systems, restroom footings, storm drainage, manholes, and planting details. While many of these have been resolved within the original contingency, remaining construction activities and project closeout are expected to require additional flexibility to complete (Attachment 4).
The project remains on schedule, and the park is anticipated to reopen to the community in Fall 2025.
To ensure the project can proceed without delay and allow for final construction adjustments, City staff recommend increasing the fixed contingency by $400,000 — from $408,824 to $808,824 — bringing the total construction contract authority to
June 24, 2025
$4,897,064.31. The additional contingency will provide the Public Works Director with continued authority to approve change orders within the amended amount. This increase remains within the $8 million grant budget.
City staff recommend that the City Council adopt a resolution approving the amended contract and the proposed contingency increase and authorizing the Public Works Director to approve future change orders within the revised construction contract limit (Attachment 5 and 6).
DOCUMENTS ATTACHED:
Attachment 1 – Project Location
Attachment 2 – Site Plan
Attachment 3 – Azul Construction Agreement
Attachment 4 – Project Costs
Attachment 5 – Azul Resolution
Attachment 6 – Azul Amendment Proposed