Merced City Council and Related Authority Meeting: September 15, 2025

The Merced City Council, sitting with the Public Finance and Economic Development Authority, Parking Authority, and Successor Agency to the Redevelopment Agency, met on Monday, September 15, 2025, in the Merced Civic Center Council Chamber. All seven members were present: Mayor Matthew Serratto, Mayor Pro Tempore Sarah Boyle, and Council Members Darin Dupont, Ronnie DeAnda, Michael Harris, Shane Smith, and Fue Xiong. The closed session began at 5:04 PM and ended at 5:35 PM; no reportable action was announced. The regular meeting was called to order at 6:01 PM and adjourned at 10:39 PM.

The agenda included consent items, a wireless lease at Rahilly Park, the 2026 Cafeteria Plan renewal, the HUD CAPER, a report on county islands, the Essential Air Service carrier recommendation, and a discussion of goals, priorities, town halls, and budget timelines.

Consent Calendar

• The Consent Calendar was approved by a 7-0 vote after Agenda Item I.3 was pulled for separate consideration.
• I.1: The Council waived the reading of all ordinances and resolutions pursuant to Section 412 of the Merced City Charter.
• I.2: The Council approved waiving competitive bidding requirements and purchasing inclusive playground equipment from Park Planet for General Vang Pao Park, Aletha June Playground, at a cost not to exceed $244,627.93, using Safe Play Initiative grant funding from First 5 Merced County.
• I.4: The Council authorized payment of litigation costs related to the 2023 flood litigation with Marderosian and Cohen, covering approximately $175,000 incurred to date and approximately $175,000 anticipated through trial, scheduled for January 27, 2026.
• I.3: The Council approved a two-year lease with James G. Moulton, Trustee, and Lynda S. Moulton, Trustee, for a 9,000-square-foot facility at an initial base rent of $8,643 per month, with an option to extend for three additional years. The vote was 6-1, with Council Member Xiong voting no. Xiong cited insufficient information about the original interagency agreement and funding source. Staff and the Chief of Police said the City acts as a financial pass-through using U.S. Department of Justice funds routed to an asset forfeiture fund, and that the City relinquishes responsibility after two years.

Public Comments & Testimony

• Aggie Freeman, of Merced Sunrise Rotary, presented Fire Chief Casey Wilson with a Certificate of Recognition for his appointment as Fire Chief.
• Belinda Burnett asked Council members to speak into microphones due to her hearing disability and spoke in opposition to special flags being flown at Bob Hart Square, saying not every organization has an opportunity to be represented.
• Leah Brown, Management Analyst, provided updates on the General Plan Update and Downtown Station Area Plan, including upcoming community meetings on October 8 and October 23.
• Chief of Police Steven Stanfield recognized the Merced Police Department K-9 Unit for its results at the San Joaquin County canine trials, including first overall in the novice division for Officer McCannon and K9 Mako and second overall as a team.
• James Reese shared details about Neighbors Unidos services and upcoming community meetings, and said he was moving out of state.
• Fernando Aguilera, President of the Soccer Academy/Albion Merced, described the program as prevention-focused with more than 400 recreation participants and 35 competitive teams, and said the academy was invited to play professionals in Ohio.
• Arturo Barajas raised health concerns about pop-up and street vendors and the economic impact on local regulated restaurant owners.
• Karthik Prasad, Representative of Congressman Adam Gray, provided federal legislative updates.
• Necola Adams announced the Merced County Nut Festival and the Merced Gospel-Fest event.
• Angela Lara discussed her granddaughter's arrest and stated she will run for Senior Center president.
• Written correspondence was received for Agenda Items L.1 and L.2 and forwarded to Council before the meeting.

Action Items

• J.1: The Council considered a proposed Ground License Agreement with New Cingular Wireless PCS, LLC for a wireless telecommunications facility at Rahilly Park, 3400 Parsons Avenue. Parks and Community Services Director Chris Jensen presented the project description: an initial five-year term with four potential five-year renewals, a $3,000 per month lease rate with 3% annual increases, a $30,000 one-time Rahilly Park capital improvement fee, approximately $27,000 in revenue for the current fiscal year, and potential total revenue of more than $1.3 million over 25 years. The revised site plan moved the tower approximately 200 feet from the nearest residence and more than 150 feet from the playground. Belinda Burnett, Julie Horal, Linda Rybka, and Brenda Morgun spoke in opposition or raised concerns. Rybka said Oakmont and Brookdale residents opposed the tower and discussed real estate disclosure impacts; Horal asked who would verify the marked location. City staff and the City Engineer said the approved site plan, not the preliminary ground markings, would govern construction and would be verified in the field. The lease was approved 6-1, with Council Member Xiong voting no. The Council then voted 7-0 to dedicate 100% of the lease revenue to Rahilly Park for maintenance and improvements.
• J.2: Risk Analyst Maggie Lemos presented the 2026 Cafeteria Plan renewal for employees and retirees. The medical plan increased by 14.6%, with total premiums rising by roughly $150 biweekly to about $1,169. The City's cost increased by roughly $82 biweekly, and employees faced an average increase of almost $70. Jason Salters, MACE President, spoke about the burden on City employees and called for help. The Council approved the plan 7-0 and agreed to reopen labor negotiations with AFSCME and MACE to explore options such as a side letter related to medical premium increases. The City Attorney noted labor negotiations would be handled through an approved closed session subject.
• J.3: Housing Program Supervisor Kim Nutt presented the 2024 Program Year Consolidated Annual Performance and Evaluation Report (CAPER) for submittal to HUD. The report noted approximately $1.9 million in CDBG funds available, an allocation of just over $1 million, and $1,069,512 expended; about $1.5 million in HOME funds with $2,926 expended, mostly for the Devonwood/River Canyon Apartments project; and CDBG-CV funds of about $1.19 million, with $693,463 expended and about $470,000 repurposed to the K Street water and sewer main project. The Council adopted Resolution 2025-57 and authorized submittal of the CAPER to HUD by a 7-0 vote.

Reports

• K.1: Acting Planning Manager Jonnie Lan and LAFCo Executive Officer William Nicholson presented a report on county islands within city limits, including annexation law, LAFCo requirements, protest thresholds, and service gaps. Ashley Suarez spoke about contaminated water, septic tank failures, lack of sidewalks, Senate Bill 244 funding, and asked the City to consider alternatives to annexation and to update the SB 244 analysis. Council Member Harris noted that sheriff's response to county islands was often 10 to 15 minutes away, compared with faster city police response. No formal vote was taken. The Council directed staff to prepare individualized assessments for each of the listed county islands, evaluating current services, services needing to be added, and potential costs and revenues, and created a subcommittee with Council Member Smith, Council Member Dupont, and Mayor Serratto.

Business

• L.1: The Council considered the Merced Regional Airport Authority's recommendation for Essential Air Service carrier selection. The Airport Authority recommended SkyWest Charter as Option 1, Contour Airlines as Option 2, and Advanced Air as Option 3. Airport Manager Rhett Williams and Deputy City Manager Frank Quintero discussed the goal of reaching more than 10,000 annual enplanements to qualify for FAA grant funding. Public speakers included Levi Stockton and Barbara Hunt of Advanced Air, Ben Munson of Contour Airlines, and Morgana Dallas and Patrick Menezes, who supported Advanced Air. Menezes also warned about possible federal cuts to the Essential Air Service program. Council Member Dupont disclosed that he had met with all three carriers. The Council discussed frequency of flights, jet capacity, code-sharing partnerships, route options, and safety records. The Council approved a motion 6-1, with Mayor Pro Tempore Boyle voting no, recommending the following ranked options to the U.S. Department of Transportation: Option 1, Contour Airlines with service to Los Angeles International Airport and Harry Reid International Airport in Las Vegas; Option 2, Advanced Air with service to Hawthorne Airport and Las Vegas; and Option 3, Contour Airlines with service to LAX and Phoenix. Note: The published agenda listed the Airport Authority's recommendation as SkyWest Charter, Contour Airlines, and Advanced Air; the minutes and transcript show the Council approved a different ranked recommendation for transmittal to the U.S. DOT.
• L.2: Finance Officer Venus Rodriguez presented a proposed timeline for Council goals, priorities, town halls, and the budget process. The proposal included setting town hall dates in November, holding town halls in January, discussing and adopting goals and priorities in January and February, and using two-year budget planning while continuing to adopt budgets annually. Council Member Harris said goals and priorities should be high-level and should begin with Council and community input; Council Member Smith said the City Manager's team should provide department-level information to inform Council discussions. Ashley Suarez spoke in favor of earlier and more meaningful community input on the budget and raised concerns about a two-year budget planning cycle creating a funding gap. The Council gave direction, without a formal vote, to revise the proposal so that department goals and priorities are presented instead of a City Manager recommended goals and priorities list, to add a goals and priorities setting session, and to set town hall dates in November.
• L.3: Council Member Smith suggested adding a future agenda item for a budget code to track expenses the City incurs to comply with and benefit from High Speed Rail.
• L.4: Council Members and the Mayor gave announcements. Council Member DeAnda shared updates on his wife's health; Council Members Smith, Harris, and Boyle commented on Total Drama Island; Council Member Dupont reported on community events; Mayor Pro Tempore Boyle thanked staff for the High Speed Rail meeting and congratulated the Police Department; and Mayor Serratto reported on community events he attended.

Key Outcomes

• Approved the Consent Calendar 7-0, including the separate 6-1 approval of the Moulton lease.
• Approved the Rahilly Park wireless ground lease 6-1 and dedicated 100% of lease revenue to Rahilly Park 7-0.
• Approved the 2026 Cafeteria Plan renewal 7-0 and directed staff to open labor negotiations with AFSCME and MACE over medical premiums.
• Adopted Resolution 2025-57 and authorized submittal of the CAPER to HUD 7-0.
• Directed staff on county islands work and created a subcommittee with Council Member Smith, Council Member Dupont, and Mayor Serratto; no formal vote was taken.
• Approved a 6-1 recommendation to the U.S. Department of Transportation ranking Contour Airlines, Advanced Air, and Contour Airlines for Essential Air Service.
• Gave staff direction on the goals, priorities, town hall, and budget timeline without a formal vote.
• Adjourned the meeting at 10:39 PM by a unanimous 7-0 vote.