Merced City Council/Public Finance and Economic Development Authority/Parking Authority/Successor Agency Meeting - March 2, 2026

The Merced City Council met on March 2, 2026, at 6:00 PM in the City Council Chamber. The meeting included ceremonial presentations, public comments, a consent calendar, a public hearing, action items on mid-year budget adjustments and annexation support, and a FEMA reimbursement report. Key decisions included approval of a private patrol license, most mid-year supplemental appropriations, and preliminary support for a 110.6-acre annexation project.

Ceremonial Matters

• The Yosemite Gateway Chapter #126 of the Order of the Eastern Star donated two ballistic vests for K9 Officers Zeke and Mako. The chapter has raised over $50,000 since 2024 for such vests, with 25 vests presented or on order. City officials highlighted the K9 unit’s 68 deployments in 2026, including recovery of narcotics and drug money, and a 10% reduction in use-of-force incidents.

Consent Calendar

• The council unanimously approved the consent calendar, which included:
  • Reading by title and waiver of reading of ordinances and resolutions.
  • Information-only contracts for February 2026.
  • Approval of meeting minutes from December 1 and December 2, 2025.
  • Subrecipient agreements with Dr. Jennifer M. Jones Foundation ($44,059 for Legacy Fund), Harvest Time ($74,955 for Food 4 You), and Project Sentinel ($50,000 for Tenant-Landlord Counseling) using CDBG funds.
  • First amendment with Vasquez & Company LLP for auditing services, adding $7,500 (total not-to-exceed $307,500).
  • Waiver of competitive bidding and purchase of Ignition SCADA software for the wastewater treatment plant ($73,305.70).
  • Second reading and final adoption of Ordinances 2588 and 2589, amending Municipal Code to replace references to the dissolved Traffic Committee with “city engineer or his/her designee.”

Public Comments & Testimony

• Rosie Campania commented on proposed changes to high-speed rail funding rules (SB 1411), urging the council to continue public discussion and consider a future agenda item. She expressed concern about fiscal clarity and accountability for Merced residents.
• Nolan Moss Goldsby invited the community to UC Merced’s 15th Annual African Student Union Cultural Showcase on April 11, 2026, highlighting the organization’s community connection.
• Karthique Prasad (representing Congressman Adam Gray) announced a March 6 deadline for community project funding submissions and noted that last year $16 million was secured for the district, including $3 million for Bear Creek restoration and $800,000 for road construction in Merced.
• Alexandra Rizzo (field representative for Assemblywoman Esmeralda Soria) provided updates on state legislation and local investments, including $5 million for flood infrastructure in Merced County, over 1,500 backpacks distributed, and 1,000 families served through holiday programs.
• Patricia Pratt and Arvin Mendoza (local artists and business owners) presented the Merced Art Festival (May 18–24, 2026), funded privately, but noted that a new street closure ordinance prevents their planned closure of Canal Street on May 23. They are working with city staff on alternatives and requested openness from the city.
• Rochelle April (61-year Merced resident) spoke about youth violence, the need for youth programs and a larger budget (referencing a past $700,000 budget), and requested a four-way stop sign at Martin Luther King Jr. Way and 12th Street after speaking with a youth from the McNamara Youth Center.

Discussion Items

• Public Hearing: Hastings Patrol Services License (J.1) – Staff reported that Hastings Patrol Services, a licensed private security firm, seeks a certificate of public convenience and necessity to operate in Merced. The company has one prior disciplinary action (a $1,000 fine in 2022 for training record violations, since resolved) and two pending contracts in Merced. Councilmember Zhang opposed private security, citing accountability concerns. The resolution passed 6-1, with Zhang voting no.
• Mid-Year Budget Review and Supplemental Appropriations (K.1) – Finance Officer Venus Rodriguez presented the FY 2025-26 mid-year report. The General Fund ended FY 2024-25 with a $14 million balance, $2.2 million above estimate. Sales tax is up 11.4% year-over-year. Staff requested supplemental appropriations totaling $157,400 from the General Fund and $652,545 in budget amendments across various funds. Items included:
  • A. City Clerk’s Office remodel ($20,000)
  • B & C. Delete one Payroll Supervisor and add one Senior Accountant (no fiscal impact)
  • D. Fire Department weed abatement ($60,000 from General Fund)
  • E. Fire Department AED replacements ($60,000 from Measure Y)
  • F. Police Department software ($20,300 from Measure Y)
  • G. Transfer from Affordable Housing Fund (1020) to Housing Administration ($352,600)
  • H. Transfer from General Fund to Housing Administration ($77,400)
  • I. Transfer from Affordable Housing Fund (1020) to Cal HOME ($72,773)
  • J. Engineering Division equipment and services ($110,000 from Development Services Fund)
  • K. Fleet replacement equipment ($109,645 from Fleet Replacement Fund)
  • L. Authority to reconcile PBID/TBID deliquencies Councilmember Harris moved to add item M: $30,000 from the General Fund for a tortoise exhibit at the zoo, noting a private donor provided for another exhibit but the tortoise habitat was not funded. Councilmembers Smith and DuPont opposed creating a precedent of last-minute additions. The motion (A–L plus M) failed 4-3. Council then approved items B and C (the personnel change) separately, and then approved items A and D–L (excluding M) on a second motion (5-2, with Zhang and Harris opposing due to concerns over using Affordable Housing funds for administrative costs). Director Jensen noted the tortoise exhibit addition could be brought back on a future agenda.
• Preliminary Annexation Support: Mission 82 (K.2) – Staff presented Preliminary Annexation Application #25-02 for 110.6 acres at the southwest corner of East Mission Avenue and Mariano Way. The proposal includes up to 1,056 single-family homes on 64.6 acres (various densities) and 46 acres of business park reserve. Councilmember DuPont recused himself due to a client conflict. Councilmember Zhang opposed the low-density residential focus and lack of affordable units. The council voted 5-1-1 (Zhang no, DuPont recused) to express general support for proceeding with the formal annexation process.
• FEMA Storm Reimbursement Report (L.1) – Staff reported total reimbursement received from FEMA for the January and March 2023 storms was $3,007,146.72. The January storm work within the first 60 days was 100% federally funded; later work and March storm work used a 75% federal/18.75% state/6.25% local cost share. Funds were used to repay borrowed CIP funds and reimburse departments.

Key Outcomes

• Consent calendar approved unanimously.
• Hastings Patrol Services certificate granted (6-1).
• Mid-year supplemental appropriations: Personnel change (B & C) approved; items A and D–L approved (5-2); item M (zoo tortoise exhibit) not approved.
• Mission 82 Annexation preliminary support approved (5-1-1).
• Mayor requested future agenda items on a downtown ad hoc subcommittee and a volunteer fair in April; no formal vote taken.
• The meeting adjourned in recognition of Officer Eduardo Chavez, who is retiring after long service.