Merced City Council Meeting - June 15, 2026

The Merced City Council held a regular meeting on June 15, 2026, at 6:00 PM following a closed session at 5:00 PM. The six-hour meeting included a special presentation on new meeting procedures under SB 707, a consent calendar with several items pulled for public comment, six public hearings, and multiple action items. Key highlights included the adoption of the FY 2026-27 budget, approval of a self-storage facility over neighborhood opposition, adoption of the 2025 Urban Water Management Plan, and approval of a $499,725.60 CARB grant for South Merced planning. The meeting adjourned at 10:32 PM.

Consent Calendar

• I-1 through I-11: Routine items approved unanimously except I-8 (legal services amendments) and I-10 (repeat housing code violators program) were pulled for separate consideration.
• I-4: Resolution 2026-32 adopted (General Municipal Election for three council seats on November 3, 2026).
• I-11: Resolution 2026-33 adopted (FEMA Assistance to Firefighters Grant application for $500,000 with 10% city match).

Public Comments & Testimony

• I-8 (Legal Services Amendments): Gloria Sandoval (District 3) expressed concern over escalating legal contracts, noting increases from $25,000 to $260,000 for one firm. City Attorney Craig Cornwell explained the contracts were funded from existing vacant positions and did not require additional budget.
• I-10 (Repeat Housing Code Violators): Multiple speakers, including Latanya Richard and Ashley Marie Suarez, urged adoption with clear 30-day repair timelines and six-week reinspection clauses. A tenant (Ms. Worth) shared a case of being evicted after reporting code violations.
• J-1 (Self-Storage Facility): Six speakers opposed the project, citing inadequate landscaping, heat island effects, and incompatibility with the neighborhood. Robert and Carol Danuzo presented evidence of 300 signatures against the project. Applicant Todd Bender argued the design exceeded code requirements and included enhanced landscaping.
• J-6 (Budget): Latanya Richard, Ashley Marie Suarez, and others requested $250,000 for a tenant relocation assistance program and $500,000 for an eviction prevention pilot program, funded from the general fund or affordable housing reserves.
• K-3 (CARB Grant): Jean Okui urged a 60-day delay to include input from the Bicycle and Pedestrian Advisory Committee and questioned the selection of Valley Onward and Merced Lao Family as community partners.

Discussion Items

• F.1: Assistant City Clerk Jennifer Parsley presented upcoming changes under SB 707 (effective July 1, 2026), including two-way teleconference participation and online registration. Council discussed procedures for public comment and consent calendar speaker registration.
• J-1: The council debated the self-storage project (1380 E. Yosemite Ave, 500 storage units). Councilmember Smith provided a detailed legal analysis, stating the council acts in a quasi-judicial capacity and must base decisions on record criteria. Councilmember Zhang opposed, citing lack of pedestrian-friendly design. The motion to approve passed 4-1 (Zhang dissenting; DuPont and Tao recused).
• J-2: The 2025 Urban Water Management Plan and Water Shortage Contingency Plan were presented. Water Manager Johnny Baptista answered questions about water loss (21.1 in 2023) and aquifer health, noting significant progress toward the 2028 water loss standard. The plan was adopted unanimously.
• J-3: Maintenance districts budgets for FY 2026-27 were approved. Staff noted seven underfunded districts, some requiring reduced services. Council directed staff to target future ballot measures with community meetings and phased approaches.
• J-4: AB 2561 report on vacancies showed 8.9% overall vacancy rate (512 full-time employees) with no group exceeding 20%. Public hearing held with no additional comment.
• J-5: Continued public hearing for parks fee schedule to July 6, 2026, approved unanimously.
• J-6: Finance Officer Venus Red reports presented the final budget ($461.5 million total, $69.2 million general fund). The budget was balanced using $733,682 from the general fund reserve and $582,608 from Trust 115 (pension). Council rejected amendments for additional arts funding ($29,500) and tenant programs, but staff will revisit arts funding mid-year. Budget adopted 6-1 (Zhang dissenting).
• K-1: Supplemental appropriation of $100,000 from Economic Development Opportunity fund for TSA security equipment at the airport terminal replacement project, approved unanimously.
• K-2: Authorized community mailers and digital outreach (AdMail $46,994.53; Division D $42,217.50) to close the loop on public input, approved 6-1 (Zhang dissenting).
• K-3: Accepted $499,725.60 CARB grant for Connect South Merced Safety and Mobility Planning Project. Council debated selection of community partners; staff explained they were chosen based on capacity, not a competitive process. Approved 6-1 (Zhang dissenting).
• K-4: Approved five-year lease of Stephen Leonard Youth Center to Merced Community College (with option to extend five more years) per Recreation & Parks Commission recommendation. Approved 6-1 (Zhang dissenting).
• K-5: Approved Change Order No. 4 for Community Park 42 ($1,107,754.63) to add a fifth soccer field, pickleball court amenities, restroom, and ADA improvements. Staff confirmed this is the final change order due to exhausted funds. Approved unanimously.
• L.1: Report on Arts and Culture Advisory Commission's selection of the metal "Canal Street Blossom" public art piece for Bob Hart Square arch, by sculptor Eddie McGonya. Expected installation by December 31, 2026.

Key Outcomes

• Budget Adopted: Resolution 2026-35 (City Council), PFA 2026-01 (Public Financing Authority), PA 2026-01 (Parking Authority), SA 2026-01 (Successor Agency) all adopted, appropriating $461.5 million for FY 2026-27.
• Self-Storage Facility Approved: Site Plan Review Permit #26-0018, Minor Use Permit #26-0030, and Environmental Review #26-0050 approved for 1380 E. Yosemite Ave (5 storage buildings, office, 500 units).
• Urban Water Management Plans Adopted: Resolution 2026-36 (UWMP) and Resolution 2026-37 (WSCP) adopted; to be submitted to Department of Water Resources within 30 days.
• Repeat Housing Code Violators Program Approved: Ordinance 2591 adding Chapter 8.53 to Municipal Code, with fines and penalties resolution to be presented at next meeting.
• CARB Grant Accepted: Resolution 2026-34 authorized acceptance of $499,725.60 for South Merced planning; staff to return for authorization of an administrative analyst position.
• Maintenance Districts: Resolution 2026-28 adopted; staff directed to conduct targeted community meetings for underfunded districts and consider phased rate increases.
• Stephen Leonard Youth Center Leased: Five-year lease with Merced Community College approved; college will operate teen/adult education, workforce development, and College for Kids programs.
• Election Called: Resolution 2026-32 calls for General Municipal Election on November 3, 2026, for three council seats by district, consolidated with county election.
• Committee Membership: Councilmember DuPont and Tao recused from J-1 vote due to conflicts of interest (client of DuPont's law firm and DuPont's role as a planning commissioner, respectively).
• Meeting Adjournment: Adjourned in memory of former Councilmember Don Bergman (Marine veteran, chamber president) and real estate agent Dan Gallagher.