Report Prepared by: Juan Olmos, Deputy Public Works Director
Title
SUBJECT: Acceptance of Reimbursement from McLaren’s Insurance for the Frederick Douglass Park Playground and Black Rascal Creek (Columbia) Park Playground Destroyed Due to Fire Damage, Approval of Appropriation in the Parks & Community Services CIP Fund 5000 in the Amount of $213,669, and Authorizing a Statement of Service with Park Planet in the Amount of $263,668.37
REPORT IN BRIEF
Considers accepting and appropriating reimbursement from McLarens Property Insurance Company for the claim submitted to Alliant Property Insurance for fire damage incidents on July 18, 2023 at the Black Rascal Creek (Columbia) Park playground and on May 10, 2025 at the Frederick Douglass Park playground, approval to waive the competitive bidding requirements, and authorize a Statement of Service with Park Planet for playground installation.
RECOMMENDATION
City Council - Adopt a motion:
A. Accepting insurance reimbursement and increasing revenue in the amount of $213,669 (estimate) from McLaren’s Insurance in Fund 5000 - Parks & Community Services CIP; and,
B. Appropriating in Fund 5000-Parks & Community Services CIP the amount of $213,669 (Projects CP270041 Frederick Douglass Playground $89,699 and CP270042 Black Rascal Creek (Columbia) Playground $123,970) for replacement of the damaged playground equipment; and,
C. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code section 3.04.210 and authorizing the purchase to be made for equipment standardization; and,
D. Approving a Statement of Services with Park Planet for the purchase and installation of two playgrounds for $229,276.84 plus 15% contingency for a not to exceed amount of $263,668.37; and,
E. Approving the use of pooled cash until reimbursement from insurance is received; and,
F. Authorizing the City Manager to execute and sign the necessary documents; and,
G. Authorizing the Finance Officer to make any necessary future budget adjustments for any additional funds received from McLaren’s Insurance.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Article XI - Fiscal Administration and Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the 2026-27 Adopted Budget.
DISCUSSION
The Black Rascal Creek (Columbia) Playground was damaged by a fire on July 18, 2023. The damage was extensive, and the remainder of the structure had to be removed for safety reasons. Similarly, Frederick Douglass Playground was damaged by a fire on May 10, 2025, and the widespread fire damaged the whole structure which was removed as well.
A claim was submitted to our property Insurance broker, Alliant (APIP). Per the insurance stipulations, the reimbursement will be processed after the City has purchased the replacement playgrounds. The insurance reimbursement amount is estimated to be the cost of the replacement playgrounds (minus $25,000 deductible per incident) which will be credited back to Fund 5000 - Parks & Community Services CIP.
Staff is requesting City Council approve the appropriation and revenue increase as well as waiving the competitive bid requirement and approving the Statement of Service with Park Planet for $229,276.84 plus 15% contingency for a not to exceed amount of $263,668.37.
IMPACT ON CITY RESOURCES
Council allocated $50,000 from Fund 2004 (Measure Y) to the project during the adoption of the FY 26-27 budget.
This item requires five affirmative votes by City Council.
If the recommendations are not adopted, or if the insurance reimbursement is less than the actual costs, then the City will need to provide funding for the replacement from an appropriate funding source.
ATTACHMENTS
1. Statement of Services
2. Black Rascal Creek (Columbia) Park Design
3. Frederick Douglass Park Design
4. Black Rascal Creek (Columbia) Park Location Map
5. Frederick Douglass Park Location Map