Report Prepared by: Joe Cardoso, P.L.S., City Surveyor, Engineering Department
Title
SUBJECT: Request to Authorize the City Manager to Execute Contract Change Order No. 4 with American Paving Co. for the Additional Construction of the Third Phase of Development at Community Park 42 (CP-42), in an Amount not to Exceed $1,107,754.63 for Additional Work on Community Park 42 (CP-42)
REPORT IN BRIEF
Staff request authorization to waive the competitive bidding requirements for CP-42 for the construction of the third phase of development at CP-42, and request Council approve Contract Change Order No. 4 for an additional field, field markings, goal posts, landscaping, irrigation system, soil amendments, additional parking lot, additional sidewalk and contract quantity adjustments in the amount of $1,107,754.63.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210; and,
B. Approving Contract Change Order No. 4 with American Paving Co. in the amount of $1,107,754.63 for the additional work; and,
C. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and or/ conditions amended to be addressed in the motion); or,
3. Deny.
AUTHORITY
Charter of the City of Merced, Article Xl, Section 1109 - Contracts on Public Works, Merced Municipal Code Chapter 3.04, Article lV - Public Works Contracts, and City of Merced Charter Section 3.04.210 - Exemptions from Competitive Bidding.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
Background
During the December 6, 2021, Public Hearing, City Council adopted the American Rescue Plan Act (ARPA) Strategic Investment Plan that included an allocation of $5,000,000 to fund the Community Park 42 Regional Sports Facility. The allocation of ARPA funds was approved by City Council on April 18, 2022.
On May 2, 2022, City Council accepted and appropriated grant funds in the amount of $177,952.00 from State of California - Natural Resources Agency Department for the development of one restrooms at Community Park-42. The grant requires matching funds in the amount of $44,488.00 from the City of Merced.
On April 17, 2023, City Council approved a Memorandum of Understanding (MOU) Between the City of Merced and the Merced County Office of Education (MCOE) to Accept $650,000 to Install a Futsal Court at Community Park 42 Regional Sports Facility and Award Bid the base bid to American Paving Co. for the Community Park 42, Project Number CP220061, in the Amount of $5,800,580.70.
As part of the adopted City Manager 23-24 budget City Council allocated an additional $3,350,000 of ARPA funds to the project to allow the construction of Change Order 2 and additional work.
On May 6, 2024, City Council allocated $1,051,020 to the project to cover items such as field lights (Musco), turf and hydroseed the additional soccer fields, and additional work.
The awarded contract with American Paving Company included all work proposed as Phase 1 of the project, two soccer fields, a section of parking lot, a futsal court, two tennis and pickleball courts, sand volleyball courts, and some connecting walkways.
On September 5, 2023, City Council approved Contract Change Order No. 1 in the amount of $1,365,524.40 for the award of the following bid schedules:
• Bid Schedule B - extra sidewalks and concrete work, picnic tables, landscaping, and site grading.
• Bid Schedule C - electrical feeder to the shade structure, picnic tables, and the 50’x100’ shade structure.
• Bid Schedule D - additions sidewalk and flatwork, picnic tables, electrical feeder to the shade structure, and excluded the 30’x30’ shade structure due to budgetary reasons.
• Bid Schedule F - adding lights to the parking lot and surrounding areas.
On January 2, 2024, City Council approved Contract Change Order No. 2 in the amount of $1,532,539.00 for the award of the following bid schedules and extra work as described in Contract Change Order No. 2 includes, soil import, grading, electrical, basketball courts, irrigation, and other work as describe in Contract Changer No. 2.
On August 5, 2024, City Council approved Change Order No. 3 in the amount of $1,628,682.12 to add to the overall project which includes items such as Musco field lights, additional fencing, field markers, benches, soccer goals, soils preparation, turf hydroseeds, shrubs, trees, landscape maintenance, and other work as described in Change Order No. 3.
On May 4, 2026, City Council approved the purchase of the second precast concrete restroom near the pickleball and basketball courts in the amount of $129,355.90. This restroom is currently being built and is scheduled to be delivered in late summer.
Funding
In 2023, City Council entered into a Memorandum of Understanding with the County of Merced, Merced Union High School District, and the Merced County Office of Education to collaborate on the development of CP-42 and the operation of the Regional Sports Complex. Merced County obligated $1.5 million dollars in ARPA funding and Merced Union High School District has obligated roughly 38 acres of land immediately to the north of the City parcel (CP42 south) currently under construction.
The MOU outlined City responsibilities of annexation, conceptual design & operational proforma, along with Annexation and Environmental Review. In an effort to maximize funding as much as possible the City still has approximately $1,161,383 available from the County’s contribution of ARPA funding in Project CP250062 - Community Park 42 North. In reviewing potential options for use of the available funding, the pending Partners have agreed to utilize $250,000 on CP42 North Engineering, and the remaining $911,383 on further developments of CP42 South to ensure immediate potential for generating revenues.
CP220061 has $155,794 available in Public Facility Financing Plan (PFFP) funding, and $65,173 available in Park Reserve funding. Combining the available funding from both projects (CP220061 and CP250062), the total available funding is $1,132,350.
Change Order
Change Order No. 4 is necessary to complete the overall project which includes the addition of the fifth football/soccer field, additional field markings, goal posts, landscaping, irrigation system, soil amendments, additional parking lot and temporary roadway, additional sidewalk, slab preparation for the second bathroom, and contract quantity adjustments in the amount of $1,107,754.63.
Staff is currently seeking authorization to waive the competitive bidding process for standardization and efficiency to continue the construction of the third phase of development with the current contractor and is seeking additional funding sources to complete the project, and recommends Council approve Contract Change Order No. 4 to allow the contractor currently on site to continue work to avoid any work stoppages.
IMPACT ON CITY RESOURCES
Projects CP220061 and CP250062 were established as Capital Improvement Projects and contain sufficient funding in the combined projects to complete Change Order 4.
ATTACHMENTS
1. Draft Contract Change Order No. 4
2. Executed Contract Change Order No. 3
3. Executed Contract Change Order No. 2
4. Executed Original Contract & Change Order No. 1