Title
Recommendation to Authorize the City Manager to Execute a First Amendment to the Agreement with McGuire and Hester for Construction of the Estuary Park Phase 2 Site Improvements Project, Increasing the Total Compensation by $155,000 for a Total Amount Not-to-Exceed $5,736,440.
In Accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), and 15303 (New Construction or Conversion of Small Structures). (Recreation and Parks, and Public Works C52500)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
In October 2025, City Council awarded McGuire and Hester (M&H) an agreement to construct the Estuary Park Phase 2 Site Improvements Project (Exhibit 1). Construction began in November 2025 and was substantially completed in October 2026.
Community input and field conditions required additional work, expanding M&H’s scope of work and increasing M&H’s cost to complete the project. Sufficient funding is available in the Capital Improvement Program Project No. C52500 for the additional work.
Staff recommends that City Council authorize the City Manager to execute a first amendment to the agreement to incorporate the additional work and increase the agreement amount by $155,000, for a total amount not to exceed $5,736,440.
BACKGROUND
Estuary Park was designed to be the primary neighborhood park for Admiral’s Cove, Alameda Landing, and other nearby neighborhoods. It also serves residents at Alameda Point, including those living at the Alameda Point Collaborative and the future RESHAP affordable housing development. Phase 1 opened to the public in January 2019 and included two synthetic turf athletic fields.
Phase 2 of the Estuary Park Project expands the park to include amenities such as restrooms, picnic areas, benches, drinking fountains, an open lawn area, pickleball courts, a basketball court, dog parks, a Bankshot inclusive basketball system, and an inclusive playground.
City Council approved the conceptual design for Phase 2 in June 2024. In October 2025, City Council authorized the City Manager to execute an agreement with M&H for the construction of the Estuary Park Phase 2 Site Improvements Project. The approved agreement included a construction amount not to exceed $5,168,000 and an 8% contingency of $413,440, for a total agreement amount not to exceed $5,581,440.
DISCUSSION
The construction contingency for the Estuary Park Phase 2 Site Improvements Project has been exhausted due to additional work identified during construction. A first amendment to the agreement with M&H is needed to provide an additional $155,000 to address remaining construction costs and unforeseen conditions through project completion.
Several changes contributed to the use of the original contingency. In April 2026, staff directed M&H to install separator fencing at four pickleball courts. Although the fencing was included as a bid alternate, it was not initially approved. Following further staff review and community outreach, the fencing was deemed necessary for the court's intended use. Staff authorized a $43,400 agreement change order funded from the agreement contingency.
Soil removal quantities have also exceeded the original estimate of 9,000 tons. To date, 10,000 tons have been removed. Staff estimates that the final quantity will exceed the original estimate by approximately 18%, resulting in an additional cost of approximately $78,000.
Other modifications resulting from field conditions included picnic area shade structure foundation changes, select areas of added concrete curbs and flatwork, and various lighting and drainage components.
The proposed amendment would provide additional funding to complete the remaining work under the original agreement and address additional work identified through the construction process, subject to staff review and approval of change orders.
Staff recommends City Council approve the first amendment, included as Exhibit 2, to increase the total agreement amount by $155,000, bringing it to a total not to exceed amount of $5,736,440. Sufficient funding is available in Capital Improvement Program Project No. C52500, and no budget amendment is required.
ALTERNATIVES
City Council may consider the following alternatives and others not listed here:
• Do not Authorize the First Amendment, which will result in an incomplete project, and/or mechanic’s liens on the project by McGuire and Hester and subcontractors.
FINANCIAL IMPACT
Funding for the first amendment is available in the Capital Improvement Program, Project No. C52500, for Estuary Park Phase 2. There is no additional impact on the General Fund
|
Description |
Amount |
|
Total Project C52500 Funding |
$7,731,411 |
|
Design & Construction Administration |
-$427,145 |
|
Pre-Fabricated Restroom |
-$541,371 |
|
Permit Fees |
-$114,852 |
|
Construction (M&H) - Original Agreement approved by Council in October 2025 |
-$5,581,440 |
|
Environmental & Materials Testing |
-$254,820 |
|
Arborist |
-$3,250 |
|
City Project Management |
-$628,225 |
|
Ancillary Costs |
-$24,581 |
|
Available Fund Balance |
$155,727 |
|
Proposed Construction Amendment #1 |
-$155,000 |
|
Project C52500 Balance |
$727 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. This supports the City of Alameda Strategic Plan project CS12 to complete design and construct Phase 2 of Estuary Park under the priority to Enhance Community Safety and Services. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (existing facilities), 15302 (replacement or reconstruction), and 15303 (new construction or conversion of small structures).
Separately, as part of the LWCF grant funding Phase 2 of the proposed project, the National Park Service (NPS) directed the City to complete cultural and biological studies to substantiate the City’s compliance with certain LWCF criteria. The California Dept. of Parks and Recreation, which manages LWCF funds on behalf of NPS, confirmed compliance with NPS criteria.
CLIMATE IMPACT
Estuary Park Phase 2 scope includes: promoting clean transportation options by incorporating EV charging stations within the new parking lot, complying with the City’s Zero Waste Implementation Plan to minimize solid waste disposal (including construction and demolition debris), minimizing the need for irrigation and, when necessary, utilizing only water-efficient irrigation systems, and mitigating excessive storm water runoff with the use of infiltration trenches and bioretention basins. In addition, and aligned with the City’s Climate Action and Resiliency Plan, the included public restroom building is all-electric to reduce greenhouse gas emissions.
RECOMMENDATION
Authorize the City Manager to execute a first amendment to the agreement with McGuire and Hester for construction of the Estuary Park Phase 2 Site Improvements Project to increase the total compensation by $155,000 for a total amount not-to-exceed $5,736,440
Respectfully submitted,
Erin Smith, Public Works Director
By,
Jay Reed, Project Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Original 2025 McGuire and Hester Agreement
2. Amendment to 2025 McGuire and Hester Agreement
cc: Justin Long, Director of Recreation and Parks