December 16, 2025
Community Development
DATE: December 16, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Community Development Director
Darcie DeLashmutt, Capital Project Manager
Subject:
Authorize Change Order Authority for the Miraflores
Sustainable Greenbelt Interpretive Signage Project
FINANCIAL IMPACT: The construction contract with Mark Lee & Yong Kay, Inc. dba Bay Construction, Inc. is $563,000. Approval of this action would authorize the Community Development
Director to approve change orders in an amount not to
exceed $84,450 (equivalent to fifteen percent of the
construction contract), for a total project authorization of $647,450. This project is included within the approved
fiscal year 2025-2026 Successor Agency funds budget,
and no additional funding is required.
PREVIOUS COUNCIL
ACTION:
March 11, 2025
STATEMENT OF THE
ISSUE:
During construction, unforeseen site conditions or design refinements may require adjustments to the scope of
work to maintain constructability, design intent, and
project schedule. Change orders above the City
Manager’s administrative threshold must return to the
City Council for approval, delays may occur that affect contractor productivity and overall project delivery.
Authorizing the Community Development Director to
approve change orders in an amount not to exceed
$84,450 (equivalent to 15 percent of the construction
contract) will allow timely decision-making and support efficient project completion.
AGENDA
REPORT
December 16, 2025
RECOMMENDED ACTION:
ADOPT a resolution to AUTHORIZE the community
development director to approve change orders for the
Miraflores Sustainable Greenbelt – Interpretive Signage Project in an amount not to exceed $84,450 (equivalent
to 15 percent of the base construction contract) with Mark Lee & Yong Kay, Inc. dba Bay Construction, Inc., for a
total project authorization of $647,450 - Public Works
Department/Community Development Department
(Darcie DeLashmutt 510-672-3944/Lina Velasco 510
620-6841).
DISCUSSION:
The Miraflores Sustainable Greenbelt - Interpretive Signage Project is a historic and cultural interpretation initiative that is part of the broader Miraflores Sustainable Community Greenbelt, a multi-phase redevelopment project that integrates affordable housing, open space, and historic preservation (Attachments 1 and 2).
On March 11, 2025, Council authorized the City Manager to enter into a construction contract following a competitive bid process. The construction contract was awarded to Mark Lee & Yong Kay, Inc. dba Bay Construction, Inc. on June 19, 2025. The contract was fully executed in November 2025 and construction activities will begin in December 2025 (Attachment 3).
During construction, it is common for unforeseen field conditions, design refinements, or unanticipated coordination requirements to necessitate adjustments to the scope of work. These circumstances typically require change orders to ensure constructability, preserve design intent, and avoid delays that can increase overall project costs.
The City Council previously authorized award of the construction contract; however, without delegated change-order authority, any required field adjustments above the City Manager’s administrative threshold must return to Council. This can introduce delays to the construction schedule, affect contractor productivity, and increase the risk of claims.
Delegating authority to the Community Development Director to approve change orders up to fifteen percent (15%) of the base construction contract is consistent with common practice for capital projects of this scale. This level of authority provides flexibility to address routine construction contingencies while maintaining fiscal control and compliance with procurement requirements. All approved change orders will remain subject to City policies governing documentation, justification, and project tracking.
Reporting to Council will occur at project closeout.
City staff recommends that the City Council adopt a resolution authorizing the Community Development Director to approve change orders for the Miraflores Sustainable Greenbelt – Interpretive Signage Project in an amount not to exceed $84,450 (equivalent to fifteen percent of the base construction contract), for a total project authorization of $647,450 (Attachment 4). This delegation will support timely decision-making, limit schedule impacts, and facilitate successful delivery of the project.
December 16, 2025
DOCUMENTS ATTACHED:
Attachment 1 – Project Location
Attachment 2 – Site Plan
Attachment 3 – Contract
Attachment 4 – Resolution