Merced City Council/Public Finance and Economic Development Authority/Parking Authority/Successor Agency Meeting Summary – May 19, 2025

The Merced City Council held a regular meeting on Monday, May 19, 2025, beginning at 6:03 PM in the Council Chamber. A study session on the 2025/26 City Council Goals and Priorities was held from 5:10 to 5:50 PM, followed by a closed session from 5:50 to 6:00 PM. The regular meeting included special presentations, proclamations, public comments, consent calendar items, public hearings, action items, a budget review, and formation of a Citizens Advisory Focus Group. Key actions include continuation of a public hearing on a General Plan Amendment and Zone Change, approval of an annexation into Community Facilities District No. 2003-2, approval of a final subdivision map for Royal Wood Estates Phase 1, failure of a police vehicle outfitting contract, and continuation of several action items due to lack of five affirmative votes.

Consent Calendar

• Approved as a block (with items I.3 and I.4 pulled):
  • Waiver of reading of ordinances and resolutions.
  • Street closure for Merced County Fair (June 4-8, 2025, 3:00 PM–12:30 AM, G Street between West Childs Avenue and 11th Street).
  • Approval of Final Map #5425 for Crossing at River Oaks Phase 7 (44 lots) and Subdivision Agreement.
  • Purchases for Public Works Fleet Maintenance and Operations through June 30, 2025, up to $100,000 with C&R Royal SVC, Inc.; $110,000 with Fisher Scientific; $200,000 with Golden State Emergency Vehicle; $70,000 with Harrison’s Collision Repair, Inc.; $60,000 with Harvest Technology LLC; $200,000 with Horizon Distributors; $45,000 with Hydrologics; $85,000 with Jorgensen & Sons, Inc.; $40,000 with Meister Sealcoat & Supplies LLC; $275,000 with PrivITation Consulting Corp; $50,000 with RDO Equipment Co.; $60,000 with Rockwell Engineering & Equipment Co.; $65,000 with Seal Analytical; $250,000 with Schoettler Tire; $60,000 with Shape Incorporated.

Public Comments & Testimony

• Brian Arechiga (Merced resident): Spoke about the feral cat problem, impacts on wildlife, and urged for cat control policies similar to dogs, including licensing and confinement.
• Cindy Kelly (Merced SPCA): Reported that the SPCA’s spay/neuter program has sterilized 300 pets since January 2025 using $75,000 in grants, emphasized the difference between community cats and strays, and promoted the annual yard sale fundraiser on June 7, 2025.
• Pam Joseph (Merced resident): Expressed concern about lack of activities in Merced compared to the Bay Area, including free concerts and community events.
• Gloria Valdovinos (new Executive Director, Downtown Merced Property Owners Association): Introduced herself and outlined plans to lead the PBID and Tourism Business Improvement District, including event coordination, website/social media, and community collaboration.
• Youth United members (Merced Youth Leadership Institute): Spoke on their participation in focus groups for the Merced Parks Master Plan and requested investments in park fitness equipment at Applegate Park.
• Cindy Rose (Merced resident): Highlighted the work of New Beginnings for Merced County Animals, noting that 306 animals (119 cats, 134 dogs, 2 guinea pigs) were being transported that week, and asked for community help.
• Andrea Uribe (Leadership Counsel): During the budget discussion, requested additional information on prioritizing investments in disadvantaged communities (e.g., South Merced) and an analysis of how city funds are leveraged with other funds.
• Ashley Marie Suarez (Leadership Counsel): During the budget discussion, advocated for funding for housing programs including a rent registry, housing rehabilitation (5% of general fund revenue), a first-time homebuyer program, and a permanent rental assistance program.
• Colton Dennis (Merced resident, Vice Chair of Arts and Culture Advisory Commission): During the budget discussion, asked for continued arts funding, noting momentum with murals and other projects.

Discussion Items

• Study Session (5:10-5:50 PM) – 2025/26 City Council Goals and Priorities: City Manager Scott McBride presented a refined document with specific goals, measurable timelines, and responsible parties across categories: fiscal stability, public safety, economic development, pedestrian safety, affordable housing, capital projects, governance, parks and community services, policy items, and new CIP items. Council discussed balancing broad goals with specific deliverables, and it was decided to continue the discussion at a future meeting with more council members present. An ad hoc committee (Mayor Serratto and Mayor Pro Tempore Boyle) was appointed to work with staff.
• Regular Meeting – Special Presentations:
  • MCAG Update: Executive Director Stacey Guzman presented an update on bus service, roadway projects, road funding, and other services. Key points: Over 8 years, Measure V generated $181 million countywide, including $32 million directly to Merced City; the FY 2025-26 budget proposes $52.6 million in city spending (exceeding the ballot measure’s requirement to stay at FY 2021-22 levels of $36.9 million); the 2026 Long-Range Transportation Plan is being developed; and the City’s portion of the Highway 99 widening project is in the project initiation phase.
  • New City Website and Merced Connect App: Software Analyst Jeffrey Kazmierski and IT Manager Michael Machado presented. The website redesign features a service-based menu, new calendar, news section, service finder, and improved search. The Merced Connect app will be relaunched soon; users will need to download the new app and create a new login. The city will transition from .org to .gov domains.
• Consent Calendar – Pulled Items:
  • I.3 – Stowell Elementary School Sidewalks and Crosswalks: Awarded to Badillo Construction & Engineering, Inc. for $165,561. Approved unanimously (4-0).
  • I.4 – Police Patrol Vehicle Outfitting: A $187,377.78 contract with Dana Safety Supply to outfit 10 new patrol units. Discussion emphasized that the vehicles are already purchased and need equipment to be operational. Motion to approve failed 3-1 (Council Member Xiong dissented). City Manager may bring the item back.
• Public Hearings:
  • J.1 – General Plan Amendment #25-0001 and Zone Change #25-0002 (Crossing at River Oaks): Staff recommended continuation to July 21, 2025 for additional research. The public hearing was opened and closed without comments. Council voted unanimously (4-0) to continue.
  • J.2 – Annexations into CFD No. 2003-2 (Services) for Annexation No. 28 (4.59 acres) and Annexation No. 29 (14.02 acres): Staff presented. No public comments. Council adopted Resolutions 2025-25 and 2025-26 (calling elections), and after ballots were canvassed (unanimously in favor), adopted Resolutions 2025-27 through 2025-30 (canvassing and annexing). All motions passed 4-0.
• Action Items:
  • K.1 – Final Map #5413 for Royal Wood Estates Phase 1 (57 lots): Approved unanimously (4-0).
  • K.2-K.5: Items requiring 5 affirmative votes (acceptance of $12,585 state homeland security grant, $14,428 Merced County funding for MAC lighting, $504,291 for Stephen Leonard Youth Center, and $750 USTA tennis grant) were noted as needing 5 votes. With only 4 members present, these items were postponed to the July 7, 2025 agenda.
• K.6 – Fiscal Year 2025-26 Budget Review and Discussion: Finance Officer Venus Rodriguez presented the proposed $438.5 million total budget. The General Fund is $68.4 million, with a projected $429,000 deficit. Key challenges include rising insurance, CalPERS, and vehicle costs; declining Measure Y (cannabis tax) revenue; and underfunding of capital projects. Council discussed unfunding public safety positions (proposed: 3 frozen police, 1 dispatcher, 1 firefighter), community and arts funding (proposed zero), and the McKee Road rehab project ($1.2 million). Council members expressed support for restoring some community/arts funding and not unfreezing public safety positions. Further discussion will occur at June 2 and June 16 budget hearings.
• L.1 – Citizens Advisory Focus Group (CAFG) for General Plan Update: Staff proposed forming a CAFG with 16-17 members, including 2 council members, members from various boards/commissions, and one resident per council district plus an at-large member. Council approved formation, recruitment, and appointment of Mayor Serratto and Mayor Pro Tempore Boyle as council representatives (motion 4-0). A joint study session with Planning Commission is set for June 18, 2025.

Key Outcomes

• Votes:
  • Consent Calendar (except I.3 and I.4): Approved 4-0.
  • I.3 – Stowell School Sidewalks: Approved 4-0.
  • I.4 – Police Vehicle Outfitting: Failed 3-1 (Council Member Xiong voted no).
  • J.1 – Continuation of GP Amendment/ZC: Approved 4-0.
  • J.2 – CFD Annexation Resolutions (2025-25 through 2025-30): All approved 4-0.
  • K.1 – Royal Wood Estates Final Map: Approved 4-0.
  • K.6 – Budget: Informational; no vote.
  • L.1 – CAFG Formation and Appointments: Approved 4-0.
• Deferrals/Continued Items:
  • Study session on goals and priorities will continue at a future meeting (ad hoc committee working).
  • J.1 continued to July 21, 2025.
  • K.2, K.3, K.4, K.5 postponed to July 7, 2025 (needed 5 votes).
  • Budget discussions will continue on June 2 and June 16, 2025.
• Directives:
  • Staff to provide cost options for community/arts funding and unfreezing public safety positions at next budget session.
  • CAFG recruitment to begin; applications due by early July; appointments to be made on July 7, 2025.
  • City Manager may bring back the police vehicle outfitting contract.