Update: Stanislaus leaders OK shift in allocations to improve county island in Modesto
Stanislaus County supervisors voted Tuesday to shift allocations in order to make $26.8 million in improvements to the Colorado-Rouse area of Modesto.
The unincorporated pocket is one of seven priority projects for targeting American Rescue Plan Act funds, which were allocated to counties and cities to address economic effects of the COVID-19 pandemic.
Colorado-Rouse is in dire need of storm drainage, sidewalks and wastewater improvements. The area is bordered by South Avenue, Garden Avenue and Sutter and Sunset avenues, west of John Thurman Field.
Tuesday, the Board of Supervisors approved the ARPA-funded improvements for the county pocket, which will be a candidate for annexation to Modesto if the neighborhood is brought up to municipal standards.
The county pieced together $20.3 million for the Colorado-Rouse project through ARPA, $5 million from Modesto and $9.6 million from the state.
Almost $3.6 million in ARPA funding will be reallocated to Colorado-Rouse from the “Herndon project” between south Modesto and Ceres, along with $600,000 in community infrastructure funds from Herndon. The county also will move $900,000 in community infrastructure funds from the Bystrum neighborhood sidewalk project to Colorado-Rouse, bringing the total to $25.2 million, which is still short by $1.7 million.
According to a county staff report, sufficient funds are not available for the improvements in the Herndon and Bystrum areas. The two projects will be on hold until more funding is identified.
County Public Works has been talking with the Stanislaus Council of Governments about Measure L grant funds to cover the remaining $1.7 million. The county could use road maintenance funds if the other sources fail to cover the total project costs, but staff will return to the board to get approval.
Supervisors also approved a construction contract with George Reed Inc. for $21.8 million and a $2.6 million contract with MNS Engineers for construction management.
George Reed was the low bidder when proposals from five companies were unsealed in September. Teichert Construction was the second lowest with a $22.1 million bid.
This story was originally published December 8, 2025 at 2:31 PM.
