March 24, 2026
Public Works
DATE: March 24, 2026
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:
Construction Agreement with Azul Works Inc. for the
Shields-Reid Park and Community Center Projects
FINANCIAL IMPACT: The proposed $400,000 amendment will increase the construction agreement to a not-to-exceed total amount
of $5,297,064.31 and is included within the approved
fiscal year 2025-2026 Shields-Reid Park and Community
Center Project budget (Account String: 20136031-
400642-23080).
PREVIOUS COUNCIL
ACTION:
October 19, 2022
May 7, 2024
June 24, 2025
STATEMENT OF THE
ISSUE:
The Shields-Reid Park Improvement Project has
remaining grant funds near the end of construction. To utilize the funds, additional improvements focused on the Shields-Reid Community Center have been identified.
Maintenance related improvements are not eligible to
utilize the remaining grant funding and will require
supplemental City funding. City staff is requesting that the City Council adopt a resolution to amend the
construction agreement with Azul Works, Inc. for the
Shields-Reid Park and Community Center Project to
increase the not-to-exceed amount by $400,000. The
revised not-to-exceed contract amount of $5,297,064.31
will address maintenance related improvements to the
Community Center.
AGENDA
REPORT
March 24, 2026
RECOMMENDED ACTION:
ADOPT a resolution to APPROVE a second amendment
to the construction agreement with Azul Works, Inc. to
increase the not-to-exceed amount by $400,000, for a
revised not-to-exceed total contract amount of
$5,297,064.31, to complete maintenance-related
improvements to the Shields-Reid Community Center as
part of the Shields-Reid Park and Community Center
Project – 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 through the State of California Department of Parks and Recreation’s Statewide Park Development and Community Revitalization Program (SPP) to renovate the southern
5.17-acre portion of Shields-Reid Park (Capital Improvement Project No. 23028) (Attachment 1). The proposed layout highlights key park features, including recreation areas, pathways, landscaping, and areas designated for renovation. (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 contingency amount of $408,824 for the Shields-Reid Park Improvement Project (Attachment 3). On June 4, 2025, Council approved Contract Amendment 1 to increase the construction contract agreement by $400,000 to $4,897,064.31 to address unforeseen circumstances and City requested changes (Attachment 4). Funds were utilized for a variety of changes including utility revisions, rubber play surfacing in lieu of fibar, renovating existing basketball courts, public art, and expanding planting and irrigation areas.
Park construction is 95 percent complete. The project is expected to have approximately $100,000 in remaining SPP grant funds at completion. The project team has identified additional improvements to support the Shields-Reid Community Center and utilize the remaining funds. While some of the improvements will be performed under the park project, other improvements need to be performed as part of a Community Center project. The maintenance-related improvements are not eligible under SPP grant stipulations. These include painting, roof repairs, gutter installation, and entry or sidewalk repairs. Because these items fall outside the allowable grant expenditures, additional City funding will be required, and the Shields-Reid Community Center Project (Capital Improvement Project No. 23080) was created to execute the improvements. Final improvements will be complete by early summer 2026.
Cit staff recommends that the City Council adopt a resolution to approve an amendment to the construction agreement with Azul Works, Inc. to increase the not-to-exceed amount of $400,000 for not-to-exceed total contract amount of $5,297,064.31; and approving the prior reappropriation of $100,000 in surplus funding from the General Capital Fund FY2024-25 Q4 unspent funds and approving the prior reallocation of
March 24, 2026
$206,975 from the Heating, Ventilation, and Air Conditioning Project (Capital Improvement Project No. AR233) to the Shields-Reid Community Center Project.
DOCUMENTS ATTACHED:
Attachment 1 – Project Location
Attachment 2 – Site Plan
Attachment 3 – Construction Agreement
Attachment 4 – Contract Amendment 1
Attachment 5 – Proposed Contract Amendment 2
Attachment 6 – Resolution