Merced City Council/Public Finance and Economic Development Authority/Parking Authority/Successor Agency Meeting – May 4, 2026

The Merced City Council held a regular meeting on May 4, 2026, at 6:00 PM in the City Council Chamber. The meeting included ceremonial proclamations, a real estate update, public comments, a consent calendar, and several action items. Key actions included the first reading of an ordinance creating a Repeat Housing Code Violators Program, authorization of up to $50 million in state revolving fund financing for wastewater treatment improvements, and a referral to study downtown parking options. Votes were taken on multiple items, with some council members dissenting or abstaining.

Consent Calendar

• Approved unanimously, with the exception of items J.7 (General Vang Pao Park construction contract) and J.8 (restroom purchase for Community Park 42), which were pulled and discussed separately. J.7 was approved with Councilmember Smith recusing himself. J.8 (purchase of a restroom for $129,355.90 via cooperative purchasing) was approved unanimously. Other consent items included routine contracts, minutes, a public hearing setting, veterinary services, engineering services for a municipal well, and an ERP system support contract.

Public Comments & Testimony

• Rosie Campana asked for a transparent breakdown of Measure V transportation sales tax spending on local road repair, including criteria for prioritization and a public schedule. The City Engineer was noted as ready to provide information.
• Arturo Martinez urged equitable development across all districts, cautioning against over-reliance on national retailers and annexation of agricultural land, and asked for support of small businesses and diverse housing options.
• Kim Garner (Opportunity Merced) promoted the upcoming Merced Arts Festival (May 18–23), highlighting large-scale murals and over 80 participating artists as a boost to civic pride and the Arts and Culture District.
• Gloria Sandoval noted a lack of public restrooms at Bob Hart Square during a May Day event and raised concerns about the human aspect of downtown improvements.
• Monica Villa encouraged residents to contact council members about their needs and called for kindness toward homeless individuals.
• Camille Fagundis and Dwayne Habecker (Merced County Office of Education) described a successful Wonderworks Field Lab partnership with the Merced Applegate Zoo, engaging students in place-based learning.
• Jebjeet Singhupal asked for a public, side-by-side cost-benefit analysis of the downtown vs. south Merced high-speed rail station options, emphasizing the need for data-driven decisions.
• Karthiq Prasad (representing Congressman Adam Gray) reported four bills that passed the U.S. House, including the Farm Bill, the HEATS Act, the FIRE Act, and a telehealth reauthorization.
• Ashley Marie Suarez and Latanya Richard called for a $2 million eviction protection program and a $500,000 tenant relocation assistance fund, citing unsafe housing conditions and retaliation against tenants who report violations. They urged the city to prioritize housing safety in the budget.
• Robert Delino (property owner) raised concerns about tenants who deliberately damage units or block repairs, asking for safeguards to prevent abuse of the ordinance by tenants not paying rent.
• Aaron Hamm (Rental Zebra) expressed broad support for the Repeat Housing Code Violators Program as a targeted approach, but cautioned that a $1,000/day fine might be excessive and could hinder rehabilitation.
• Daisy Ramos Acosta shared a personal story of mold exposure and subsequent eviction after reporting conditions, urging strong enforcement and anti-retaliation protections.
• Blanca (reading a tenant's comment) asked for an emergency relocation fund because landlords often refuse to pay relocation assistance, leaving tenants without recourse.
• Greg Terzakis (California Apartment Association) supported the ordinance as written, citing success in Fresno where violators sold properties. He opposed adding further protections, urging vigorous enforcement.

Discussion Items

• K.1 – Repeat Housing Code Violators Program (First Reading): City Attorney Craig Cornwell presented the ordinance, which targets landlords with a pattern of health and safety violations. The ordinance includes designation as a repeat violator, escalating fines, tenant relocation assistance per state law, possible business license revocation, and a public list of non-compliant properties. Council debated the length of tenant retaliation protection (six months vs. twelve months) and fine amounts. Councilmember Harris moved to extend protection to 12 months and set an initial fine of $5,000 (with $1,000/day thereafter). Councilmember Smith urged caution, warning against losing consensus. The motion was seconded and passed, with Councilmember DuPont and Mayor Pro Tem Boyle voting no. The ordinance will return for a second reading, with staff working to expedite.
• K.2 – Wastewater Treatment Financing: Authorized a Construction Installment Sale Agreement with the State Water Resources Control Board for up to $50 million (expected to be reduced to ~$32 million with pending FEMA grant) for rehabilitation of aeration basins, UV channels, and other upgrades. Unanimously approved.
• K.3 – HOME-ARP Funds for Mercy Village Apartments: Accepted an additional $2,970 in federal funds, updated a conditional commitment letter for the project (total budget ~$37 million). Unanimously approved.
• K.4 – Fire Station 56 Construction Management: Approved a $676,190 agreement with Kitchell Corporation for a progressive design-build approach. Councilmember Zhang voted no.
• K.5 – Transit Joint Powers Agreement: Approved a restated JPA for the Transit Powers Authority for Merced County. Councilmember Zhang voted no.
• K.6 – Trailblazers Outdoor Recreation Grant: Accepted $124,725 from Central Valley Community Foundation to fund outdoor recreation, mentorship, and workforce development for youth. Unanimously approved.
• K.7 – Bob Hart Square Clock Replacement: Accepted $27,000 grant, $16,000 in donations, and $1,738 from T-shirt sales for a new clock. Unanimously approved.
• K.8 – Youth Sports Partnership with Merced City School District: Approved a $231,588.05 agreement for free participation in Jr. Giants, NFL Flag Football, and Jr. NBA/WNBA for up to 500 students. Unanimously approved.
• L.1 – Arts and Culture Commission Report: Presented selected mural design "Bajo el Mismo Cielo" (by Saul Gonzalez Lauriano) for the R Street undercrossing, and a recycled blue heron sculpture design by Merced County Juvenile Court School students. Informational only.
• M.1 – Downtown Parking on 18th Street: Mayor Serratto requested study of options (do nothing, add diagonal parking, or one-way with diagonal parking on both sides). After discussion, the matter was referred to the Public Works and Transportation Committee. Motion passed 5-1-1 (Councilmember Zhang no, Councilmember Harris abstained).

Key Outcomes

• Repeat Housing Code Violators Program (K.1): First reading approved with amendments to extend tenant retaliation protection to 12 months and set a $5,000 initial fine (with $1,000/day) to be set by resolution. Ordinance will return for second reading expedited as soon as possible.
• Wastewater Treatment Financing (K.2): Approved up to $50 million in low-interest state loans, with expected reduction pending FEMA grant.
• Mercy Village Apartments (K.3): Additional HOME-ARP funds accepted; project budget now ~$37 million.
• Fire Station 56 (K.4): Construction management contract awarded to Kitchell Corporation ($676,190). Councilmember Zhang voted no.
• Transit JPA (K.5): Restated agreement approved. Councilmember Zhang voted no.
• Trailblazers Program (K.6): Grant accepted; program expands outdoor recreation for youth.
• Clock Replacement (K.7): Funding accepted; clock to be installed at Bob Hart Square.
• Youth Sports Partnership (K.8): Agreement with MCSD approved for free sports programs.
• Downtown Parking (M.1): Referred to Public Works and Transportation Committee for study and community input.
• Future Agenda Items: Councilmember Zhang requested a general discussion on tenant protections for the first meeting in August. Councilmember Boyle requested a discussion on celebrating America's 250th birthday at the May 18 meeting, unanimously approved.