Merced City Council Meeting - June 1, 2026

The Merced City Council held a regular meeting on June 1, 2026, beginning at 6:00 PM after a closed session. The agenda included a public hearing on the Fiscal Year 2026-27 proposed budget, a continued public hearing on the HUD 2026 Annual Action Plan, and action items on council stipends, public participation procedures, a repeat housing code violators program, grant applications, and street maintenance. The meeting also featured ceremonial recognition of a school counselor and public comments on youth safety, budget priorities, and housing.

Consent Calendar

• Approved unanimously (with separate vote on I.7):
  • Item I.1: Waiving reading of ordinances and resolutions.
  • Item I.2: Information only contracts for May 2026.
  • Item I.3: Citizens’ Stipend Setting Commission minutes.
  • Item I.4: Contract for a Type 6 Fire Engine from Golden State Fire Apparatus ($388,443.98 plus 10% contingency).
  • Item I.5: Accept $20,000 from UC Merced for Bobcat exhibit renovations at Applegate Zoo.
  • Item I.6: Amendment to SART exam fee process with Forensics Nurse Specialist.
  • Item I.8: Purchase of survey equipment ($60,000) from California Surveying & Drafting Supply.
  • Item I.9: Resolution setting FY 2026-27 special tax rates for CFD No. 2003-2.
  • Item I.10: Purchase of one 2027 Chevrolet Traverse for Purchasing ($45,034.97 plus 10% contingency).
• Item I.7 (Bellevue Ranch North Final Map) pulled: Approved 6-1 (Councilmember Zhang voting no).

Public Comments & Testimony

• General Public Comment (before budget):
  • James Moore (Director, Merced County Regional Waste Management Authority) requested citizen volunteers for the integrated waste management task force.
  • A resident (law enforcement veteran) and a second speaker expressed urgent concern about children riding bikes recklessly into traffic, urging enforcement and community partnership.
  • Rochelle (resident) criticized the council for not addressing youth violence concerns despite her repeated pleas; Mayor noted it would be placed on a future agenda.
• Budget Public Hearing (J.1):
  • Monique Torres opposed the budget allocation, demanding $800,000 for an eviction protection program, emphasizing that existing resources exclude undocumented people and tenants with termination notices.
  • Ashley Marie Suarez requested $250,000 for tenant relocation assistance and $800,000 for eviction prevention, highlighting the need for the South Merced community-specific plan, sidewalk/lighting improvements, and stormwater drainage.
  • Rosio Pena supported the eviction protection program and called for street repairs, playground restoration, and more vegetation.
  • Daisy Ramos Acosta shared her personal eviction story after reporting mold, urging relocation assistance and tenant protections.
  • Latonya Richard directed council to allocate $607,000 from affordable housing funds for tenant relocation (15 families), and criticized eliminating peer support specialists, arguing police are not trained for mental health emergencies.
  • Blanca Ojeda reiterated support for tenant protections and assistance for undocumented residents.
• HUD Annual Action Plan Public Hearing (J.2):
  • Sheila Garcia (Harvest Time) presented a video on food distribution serving 330 families biweekly.
  • Joe Carroll (Sierra Saving Grace) described rehabbing blighted homes into housing for homeless, veterans, and domestic violence survivors (18 units, 50 people).
  • Armando Valenzuela (Merced County Community Action Agency) requested $210,000 in HOME funds for major repairs (roofs, electrical panels) for low-income families.
  • Greg Trizakis (California Apartment Association) supported exploring HUD flexibility for tenant assistance and endorsed the enforcement ordinance.
• Stipend Commission Recommendation (K.1):
  • Belinda Burnett (commissioner) opposed the 200% increase, suggesting $700 for council and $800 for mayor.
  • Lee Pesner (commissioner) noted younger commissioners supported the full increase and cited general law city comparisons ($1,900/month possible).
• Repeat Housing Code Violators Program (K.3):
  • Blanca Ojeda and Ashley Suarez (on behalf of residents) supported the ordinance but requested amendments: 30-day cure cap, definition of good faith, criteria for red-tagging, and six-week reinspection timeline.
• ATP Grant (K.5):
  • Juliana Stocking (Merced City School District superintendent) supported the grant for safe routes to school improvements at up to 14 school sites.
  • Mae Clifford (eighth grader, via Councilmember Smith) expressed student support for safer walking routes.

Discussion Items

• Fiscal Year 2026-27 Proposed Budget (J.1): Finance Director Venus Rodriguez presented a $461.2 million citywide budget with a $1.3 million general fund shortfall. Options to close the gap included drawing from reserve overfunding ($740,000) and Trust 115 ($153,000). After extensive discussion, council directed staff to use $740,000 from the reserve overfunding and $553,000 from Trust 115 (50-50 split) to close the shortfall. The public hearing was continued to June 15, 2026. Council also agreed to include $30,000 in community funding. A motion to allocate $250,000 for a tenant relocation program failed for lack of support.
• HUD 2026 Annual Action Plan (J.2): Staff presented two options for public service funding. Option 1 (recommended) funded four projects at 83.5% of request, excluding Youth for Christ Central Valley. Option 2 funded five projects at 75% but required more staff oversight and raised concerns about religious content in Youth for Christ’s program. Council approved Option 1 (6-1, Zhang dissenting), with comments encouraging Youth for Christ to reapply next year after building CDBG experience. The resolution approving the plan was adopted.
• Citizens’ Stipend Setting Commission Recommendation (K.1): Council considered the recommendation to increase council stipends to $1,000/month and mayor’s to $1,250/month. Supporters cited the ballot measure (Measure L) accountability and future council needs. Opponents cited the budget shortfall and timing. Approved 5-2 (DuPont and Zhang voting no, Councilmember Zhang voting no).
• Public Participation Procedures (SB 707) (K.2): City Clerk Jennifer Parsley presented a revised process allowing registration for public comment during an item until the mayor calls for comment, mirroring in-person practice. Approved unanimously.
• Repeat Housing Code Violators Program (K.3): City Attorney Craig Cornwell presented the first reading of Ordinance 2591, with minor amendments clarifying “repeat housing code violator” and prospective tenant notice duration. Approved unanimously for second reading.
• Disruption of Meetings Policy (K.4): Chief Deputy City Attorney presented Policy C-10 for technical and in-person disruptions. Approved unanimously.
• Active Transportation Program (ATP) Cycle 8 Grant (K.5): Staff requested authorization to apply for $7.9 million in grant funding (with $885,000 local match from Measure V) for safe routes to school improvements including hawk signals, multi-use paths, and sidewalk connectivity. Approved 6-1 (Councilmember Zhang dissenting, citing preference for physical infrastructure like curb extensions).
• SB1 Project List (K.6): Resolution approving FY 2026-27 project list for Road Repair Accountability Act funds ($2.7 million anticipated). Approved unanimously.
• CMAQ Grant for Sidewalks (K.7): Resolution accepting $46,920 in CMAQ grant funds for preliminary engineering on sidewalk infill on West Ave., Fig Ave., and Home Ave. Approved unanimously.
• Maintenance Districts Public Hearing Schedule (K.8): Staff set a public hearing for June 15, 2026, on 39 maintenance district budgets and engineers’ reports. Some districts face service reductions (e.g., Fairway Park 1 from bi-weekly to quarterly). Approved unanimously.

Key Outcomes

• Budget Shortfall Closed: Council voted 5-2 to close the $1.3 million general fund shortfall by transferring $740,000 from the overfunded reserve and $553,000 from Trust 115. Community funding of $30,000 was added. The public hearing continues to June 15, 2026.
• HUD Annual Action Plan: Adopted Option 1 for public services (four projects) and Resolution 2026-31 (6-1).
• Council Stipend Increase: Approved (5-2) to increase council stipend to $1,000/month and mayor’s stipend to $1,250/month, effective January 1, 2027.
• Repeat Housing Code Violators Ordinance: First reading of Ordinance 2591 approved unanimously; second reading set for June 15, 2026.
• Grant Applications Authorized: ATP Cycle 8 grant application (6-1) and CMAQ grant acceptance (unanimous). SB1 project list approved unanimously.
• Public Participation Rules: Adopted SB 707-compliant procedures unanimously.
• Maintenance Districts: Public hearing scheduled for June 15, 2026.
• Future Agenda: Youth violence concerns and bike safety to be addressed at upcoming meetings.