Report Prepared by: Daryl Jordan, P.E., City Engineer
Title
SUBJECT: Approval of Change Order No. 1 to Increase the Contract in the Amount of $142,962 with All About Buildings for the Design Build Agreement and Reallocation of Unspent American Rescue Plan Act (ARPA) Funding in the Amount of $73,485 to Project CP220072 Applegate Park Zoo Renovation
REPORT IN BRIEF
Approval of Change Order No. 1 to increase the contract in the amount of $142,962 for Project No. CP220072 Applegate Park Zoo Renovation and the reallocation of unspent ARPA funding from multiple projects to Project No. CP220072 Applegate Park Zoo Renovation.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the increase in the contract in the amount of $142,962 for Project No. CP220072 - Applegate Park Zoo Renovation for the extra work reflected in Contract Change Order No. 1 with All About Buildings; and,
B. Approving the reallocation of ARPA funding of $56,648 from Project No. GR223024 - Job Training to Project No. CP220072 - Applegate Park Zoo Rehab; and,
C. Approving the reallocation of ARPA funding of $16,417 from Project No. GR223025 - Expanded Youth Services/Calvip to CP220072 - Applegate Park Zoo Rehab; and,
D. Approving the reallocation of ARPA funding of $420 from Project No. CP240043 - Applegate Park Restroom to Project No. CP220072 - Applegate Park Zoo Rehab; and,
E. Authorizing the Finance Officer to make the necessary budget adjustments; and,
F. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve the request as recommended by staff; or,
2. Deny the request; or,
3. Approve, subject to modifications as conditioned by Council; or,
4. Refer back to staff for reconsideration of specific items (specific items to be addressed in City Council motion); or,
5. Continue to a future City Council meeting (date and time to be specified in City Council motion).
AUTHORITY
Charter of the City of Merced, Article XI, Section 1109 - Contracts on Public Works, and Merced Municipal Code Chapter 3.04, Article IV - Public Works Contracts.
CITY COUNCIL PRIORITIES
As provided for in the 2026-27 Adopted Budget
DISCUSSION
ARPA Funding and Council Priority
In 2022, City Council prioritized renovation efforts at Merced Applegate Zoo through a $2-million American Rescue Plan Act (ARPA) allocation. Priority upgrades included the relocation of the two American Black Bears to a new exhibit at the facility, new walking paths and upgrades to the maintenance hall and preparation rooms.
City Council also allocated ARPA funding to a Job Training program ($2.2 million) and Expanded Youth Program - Calvip ($250,000 cash match). At the December 9, 2024 meeting. City Council reallocated $58,343 of ARPA funding from the Calvip project to the Stephen Leonard Building Rehab project. There is a remaining unspent amount of $56,648 from the Job Training Program, and $16,417 from the Expanded Youth Services/CalVIP Program.
The CalVIP program experienced implementation delays due to the loss of its planned location following a fire and challenges with recruiting and hiring qualified staff. These setbacks shortened the timeframe available to expend ARPA funds. Additionally, changes to the youth referral methodology resulted in fewer participants than originally anticipated. As a result, less ARPA funding was needed for program services, including financial assistance and the outdoor recreation program.
The Expanded Youth Program reported that funding was underspent because several youth participants who were successfully placed in work experience positions did not complete their anticipated placement periods. As a result, fewer hours were worked and lower-than-projected payroll and related administrative expenses were incurred, leaving a portion of the allocated funding unspent.
City Council allocated $425,000 of ARPA funding for the Applegate Park Restroom Project No. CP240043. After completion of the project there is $420 in unspent funds that can be reallocated to Applegate Park Zoo Renovation.
In August 2024, staff advertised a Request for Proposals for design-build of the Applegate Zoo project, and All About Buildings Inc. was awarded a not to exceed agreement of $1,800,000 on December 2, 2024. The base award was $1,620,000 with an additional $180,000 set aside for contingency as needed.
The $180,000 contingency was utilized for plumbing around the tree near the front entry, bear squeeze system purchase and installation, the monolithic viewing panel purchase and installation for the bear enclosure, upgrades to the fencing and surfaces in the bobcat enclosure, and the installation of a French drain.
Change Order Request
As the zoo project progressed, approximately $69,462 in unspent ARPA funding became available from other contracts within the project that had been completed, along with approximately $73,485 in unspent ARPA funding from other projects, for a total of $142,947 available in ARPA funding. These additional funds provide an opportunity to reallocate resources to support the zoo project and address its remaining funding needs.
Change Order No. 1 for the zoo addresses the following needs:
• A new tortoise exhibit with water and power supply, fencing, den, and landscaping
• Mini split HVAC system for Bear exhibit
• Concrete pad and new shed, located behind the restrooms
• Furnish and install new lighting fixtures at the restroom, including all required electrical connections
Staff is requesting the reallocation of $73,485 from unspent ARPA funds to Project No. CP220072 Applegate Park Zoo Renovation and the approval of the increase in the contract in the amount of $142,962 to complete Change Order 1.
IMPACT ON CITY RESOURCES
Project No. CP220072 currently has $69,462 of ARPA funding and $32,572 of Parks & Community Service CIP Funding. Staff is requesting the reallocation of $56,648 from Project No. GR223024, $16,417 from Project No. GR223025, and $420 from Project No. CP240043, for a total reallocation of $73,485 to Project No. CP220072 to fully fund Change Order 1 and spend the remaining ARPA funding by the December 2026 deadline.
Change Order No. 1 in the amount of $142,962 will be funded with $142,947 of the remaining ARPA funding, and $15 from the Parks & Community Service CIP project string in Project No. CP220072.
This item will require five affirmative votes for approval.
ATTACHMENTS
1. Executed Agreement
2. Change Order 1