Merced City Council Regular Meeting – January 20, 2026

The Merced City Council convened on January 20, 2026, at 6:00 PM in the City Council Chamber. The meeting included a study session on solid waste collection rates, a public hearing on maintenance district assessments, action on several contracts and grants, and a report on council goals and priorities. Key actions included the acceptance of a $28.2 million Homekey+ grant for affordable housing, general support for a preliminary annexation, and approval of funding for community engagement services. The council also continued a tree removal contract item after a bid protest and directed staff to proceed with a 45-day Proposition 218 notice for solid waste rate adjustments.

Study Session – Solid Waste Collection Rate Study

• The council reviewed a rate study for solid waste services, presented by consultant Garth Schultz of R3 Consulting Group. Current annual revenues ($24.35M) are below annual expenses ($26.4M), and without adjustments, the fund balance would be depleted by fiscal year 2030–2031. Two options were presented: Option 1 – annual 5.3% increases for five years; Option 2 – annual 4.5% increases for five years followed by higher increases (up to 7.2%) in years six through ten. The study noted that capital costs for zero-emission refuse trucks (estimated to double post-2030) are not forecasted in this five-year window. Councilmembers discussed the options, with some favoring a constant 5.3% increase to avoid a future spike. No formal direction was given; staff was asked to bring the item back to a future meeting to launch the Proposition 218 process.

Consent Calendar

• K.1–K.12: Ordinances, minutes, and routine approvals were adopted by a single motion, except items K.3, K.8, and K.12 which were pulled for separate consideration.
  • K.3 (OTS Grant): Authorized the police department to apply for up to $427,500 from the California Office of Traffic Safety for DUI enforcement, traffic safety, and related activities. Passed 6–1 (Councilmember Zhang voted no).
  • K.8 (Tree Pruning Service Agreement): A service agreement with West Coast Arborists in an amount not to exceed $413,000 was continued to the next meeting after a bid protest from United Pacific Services alleged it was the lowest bidder. The motion to continue passed unanimously.
  • K.12 (Speed Limits Ordinance): Second reading and adoption of Ordinance 2584 was approved unanimously, with three street segments (Bear Creek Drive, Mansionette Drive, Olive Avenue) referred for further study.

Public Comments & Testimony

• Mike Weber (Superintendent, Weaver Union School District) and Zachary Kaikendall (community member) spoke during the public comment period, urging the council to plan for school impacts from new development. They noted that developer fees only cover a fraction of school construction costs and that Weaver District is already over capacity. Both asked for mitigation measures as growth proceeds.
• During the maintenance district public hearing, several residents expressed opposition to proposed assessment increases, particularly in Fahrens Park (a jump from ~$31 to $414 per year). Speakers Richard Garcia, Ted Woods, and Shannon questioned the magnitude of the increases, the inclusion of major road maintenance, and the quality of tree trimming. The public hearing was closed, and ballots will be counted on January 21, with results reported on February 2, 2026.

Discussion Items

• M.1 – Homekey+ Grant for Mercy Village: The council accepted a $28,257,013 conditional grant for a 65-unit permanent supportive housing project at 3015 Park Avenue, in partnership with UPholdings and Self-Help Enterprises. Approved unanimously.
• M.2 – Preliminary Annexation Support (Mission West): The council expressed general support for a pre-annexation application covering 133+ acres at the southeast corner of Mission Avenue and State Highway 59. The project proposes 618 dwelling units, commercial, and business park space. Passed 6–1 (Councilmember Zhang voted no), with some members noting the need for a community plan and school mitigation.
• M.3 – Environmental Document for Ardison and Baxter Annexations: The council approved a professional services agreement ($45,068) and a reimbursement agreement ($49,574.80) for environmental review of two adjacent annexations totaling ~208 acres, expected to yield about 786 housing units. Councilmembers Smith and DuPont recused themselves; passed unanimously.
• M.4 – Community Engagement Contract with Lew Edwards Group: The council approved a $104,375 appropriation and contract for community outreach and communications consulting, to support potential future ballot measures. The discussion included polling results showing 63% support for a general-purpose tax. Passed 6–1 (Councilmember Zhang voted no).
• M.5 – Gateway to Yosemite Run Proceeds: Accepted $9,178 in race registration fees and a $2,000 sponsorship from CVOF, appropriating some funds to the Aletha June All-Inclusive Playground at General Vang Pao Park. Approved unanimously.

Key Outcomes

• Solid Waste Rates: Staff was directed to schedule a future meeting to formally launch the Proposition 218 process, with council feedback favoring a constant rate adjustment (likely ~5.3% annually).
• Tree Pruning Contract: Continued to the next regular meeting to allow staff to address the bid protest from United Pacific Services.
• Speed Limits: Ordinance 2584 adopted; three street segments referred for further speed study.
• Maintenance District Assessments: Public hearing closed; ballot counting on January 21, results to be reported February 2.
• High-Speed Rail Letter: Councilmember Harris successfully requested adding an item to the January 27, 2026 study session agenda to discuss a letter of support for a Southeast Merced high-speed rail station (passed 6–1).
• Goals and Priorities: The council received an update on 2025 goals and draft 2026/27 department mission goals and CIP requests; a goal-setting session is scheduled for January 31.