July 1, 2025
Public Works
DATE: July 1, 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:
Authorizing an Appropriation to Fund the Point Molate
Bay Trail Project
FINANCIAL IMPACT: The proposed $1,000,000 appropriation from the General Capital Fund will fully fund a shortfall caused by an
additional service request from East Bay Regional Park
District’s construction management consultant, as well as all remaining anticipated expenses associated with the
City’s segment of the Point Molate Bay Trail Project.
(Account string: 20136031-400708-01A14).
PREVIOUS COUNCIL
ACTION:
July 22, 2021
STATEMENT OF THE
ISSUE:
The City and the East Bay Regional Park District
(EBRPD) executed a Cooperative Agreement in August
2021 to complete the Point Molate Bay Trail. On May
16, 2025, EBRPD received an additional service
request from its construction management consultant
that exceeds the current Capital Improvement Program
(CIP) budget for the City’s segment.
RECOMMENDED ACTION:
ADOPT a resolution authorizing the appropriation of
$1,000,000 from the General Capital Fund to fully fund
the Point Molate Bay Trail Project – Public Works
Department (Robert Armijo 510-620-5477 / Darcie
DeLashmutt 510-672-3944).
AGENDA
REPORT
July 1, 2025
DISCUSSION:
The City and East Bay Regional Park District (EBRPD) have been working cooperatively to implement the Point Molate Bay Trail (Beach Park) project. The 2.5-mile project consists of two segments equal in length of 1.25 miles. Segment A, which extends from the Richmond-San Rafael Bridge to Point Molate Beach Park, will be owned and maintained by EBRPD. Segment B, extending from Beach Park to the Historic Winehaven District, falls under the City’s ownership and maintenance responsibilities (Attachment 1). Both entities have successfully applied for grants to fund the construction of each of their respective segments. On July 22, 2021, the Council authorized the City Manager to enter into a Cooperative Agreement with EBRPD (Attachment 2). On August 27, 2021, the Cooperative Agreement was executed (Attachment 3).
The Cooperative Agreement states that the City will reimburse EBRPD for construction and construction management costs associated with the City’s 1.25-mile portion of the trail.
The estimated amount in the Cooperative Agreement is $3,358,460.
On May 16, 2025, the EBRPD received seven (7) bids for construction. EBRPD determined the lowest responsive bidder was Carone and Company Inc. whose bid for Segment B is $3,811,662. The total base bid for both segments was $8,660,411. The City and EBRPD recommended a 10 percent contingency in the amount of $381,166 for Segment B, for a total potential construction cost of $4,192,828. The EBRPD Board of Directors awarded the construction contract on June 17, 2025. The CIP budget of $4,283,143 was sufficient for the EBRPD to award the contract.
However, EBRPD later received an Additional Service Request from its construction management consultant, WSP, Inc., in the amount of $626,435 for Segment B. This increase is attributed to an extended project schedule and higher labor rates, and it results in a funding shortfall for the City’s share of the project.
City staff recommends that the City Council adopt a resolution to appropriate an additional $1,000,000 from the General Capital Fund to ensure completion of the Point Molate Bay Trail Project and to fully cover all known and anticipated project costs (Attachment 4).
City staff will return to the City Council in fall 2025 with a proposed amendment to the Cooperative Agreement to reflect the updated funding obligations.
DOCUMENTS ATTACHED:
Attachment 1 – Location Map
Attachment 2 – July 22, 2021 - Agenda Report
Attachment 3 – Cooperative Agreement
Attachment 4 – Resolution