Merced City Council Meeting: JPA Study Session, Housing Element, and Actions — July 20, 2026

The Merced City Council met on Monday, July 20, 2026, in the City Council Chamber at the Merced Civic Center, beginning with a 4:00 PM study session, a 5:00 PM closed session, and a regular meeting at 6:00 PM. The council considered a proposed Joint Powers Authority (JPA) to finance Virginia Smith Trust (VST) infrastructure, adopted the housing element update and several action items, and made numerous board and commission appointments. The meeting was briefly paused from approximately 7:07 PM to 7:19 PM due to a Brown Act technical disruption affecting remote public participation; remote speakers were allowed to comment before action on the affected item.

Study Session: Joint Powers Authority (JPA) for Virginia Smith Trust (VST) Infrastructure Financing

• City Manager McBride and Dr. Steve Tejan (Merced County Superintendent of Schools and Virginia Smith Trust Executive Director) introduced Adam Bauer, President/CEO of Fieldman, to present a concept for a JPA between the City and the Merced County Board of Education to form Community Facilities Districts (CFDs) and eventually issue tax-exempt bonds for infrastructure. Bauer noted his firm handles about 50% of CFD transactions in California.
• The proposal would proceed in phases: (1) form the JPA; (2) form a CFD (resolution of intention, public hearing within 30–60 days, ordinance); (3) sell bonds only after sufficient development occurs (typically 3–5 years; bond rates around 5.5% or less versus developer borrowing costs of 12–15%).
• Tier 1 funding priorities: charter school and transportation facilities. Tier 2: sewer, water, and treatment plant improvements. Sensitivity analysis: at a 1.5% effective tax rate, about $46.5 million could be funded ($37M Tier 1, $9.5M Tier 2) with $49 million unfunded; at 1.6%, $66.5 million funded and $29 million unfunded; at 1.7%, $86.6 million funded and $9.1 million unfunded. Staff identified 1.7% as the likely maximum for the area.
• Councilmember Smith asked whether a JPA is required (it is, for the Office of Education to participate), whether adjoining landowners could benefit (yes, if formation documents are broad), and raised concerns about long-term JPA stability based on his school board experience. He expressed support for exploring the idea if longevity and fairness concerns are addressed.
• Public comment: Greg Opinski, an adjacent property owner west of Lake Road, asked whether this was a Mello-Roos structure and urged that any such financing be done fairly so no single developer gets a leg up. Dr. Tejan responded that VST has invested heavily in planning and wants fairness, including financial participation in shared improvements.
• The item was information only; no vote was taken. City Manager McBride indicated staff would finalize draft documents for future council consideration.

Closed Session

• The council convened in closed session for anticipated litigation (one potential case, Gov. Code § 54956.9(d)(2)) and a City Manager performance evaluation (Gov. Code § 54957). No reportable action was announced.

Public Comments & Testimony

• Karthique Prasad (representing Congressman Adam Gray) reported on federal activity, including amendments to the FY27 National Defense Authorization Act to streamline naturalization for military personnel and veterans, the Family Act, and letters opposing the administration's decision not to renew the USMCA and supporting $15 billion in specialty crop relief.
• Aggie Freeman (Merced PD Canine Association) invited the community to the inaugural "Pause on Patrol Fun Run and Dog Walk" on October 17 at 9:00 AM at Lake Yosemite to fund retired K-9 health care, noting 40–50 registrations so far.
• Vincent Tremel proposed a "historical Merced Gold Belt Transportation Landing Hub" connecting high-speed rail travelers to Mariposa and Yosemite via stagecoach/private transport.
• Cindy Ramos (District 5 resident) asked for contacts regarding the city's "Let's Talk Merced" flyer, citing concerns about a $1.3 million shortfall and ending federal fire grants.
• Arturo Martinez Jr. raised public health concerns about cyclosporiasis (more than 1,600 confirmed CDC cases across 34 states since May 1, with over 5,100 additional cases under review) and HHS workforce reductions from approximately 82,000 to 62,000 employees, asking the council to consider a future resolution or letter on food safety surveillance.
• Marcus Ariano (Treehouse Tutoring board chair) reported on the Loft Family Literacy Program, a six-month, 15-family pilot, and requested continuation or parent cafes.
• Multiple speakers from Faith in the Valley and the Community Alliance for a Sustainable Economy (Lyria Rodriguez, Angela Matthews, Corey Crowson, Ingrid Brostrom) urged keeping the high-speed rail station downtown as required by SB 198, warning that the revised south/southwest plan would cut Merced as a connector and skip a stop in Sacramento. Brostrom cited UC Merced Labor Center survey data: only a quarter of residents were fully aware of the HSR project; over 60% would likely use it; 78% wanted retail and 78% wanted restaurants near the station; 64% ranked pedestrian walking paths as very important; 67% wanted tourism and local business activity as a benefit.

Consent Calendar

• The council approved the consent calendar (J.2, J.3, J.5–J.11, J.13, J.14) with J.4 and J.12 pulled for separate discussion. Approvals included resolutions of intent to vacate street/easement portions (Canal Street, approximately 14,328 square feet; and 400 West 7th Street, approximately 1,145 square feet), setting public hearings for August 17, 2026; equipment purchases (Vermeer brush chipper $98,030.10; Vermeer stump grinder $90,739.59; two Peterbilt 520 refuse trucks $892,186.92; Altec AT40-G aerial truck $262,081.90; Schwarze A9 street sweeper $499,926.05); landscape maintenance agreements (Central Valley Lawnscapes $413,530.48; Brightview $195,416.36; Green Horizon $343,521.36); Alliant property/boiler insurance renewal of $1,308,544.63 (a -2.83% premium decrease); and Arconas airport terminal furniture for $183,479.40 plus 10% contingency (not to exceed $201,828.00).
• J.4 (SB 244 Analysis): Pulled by Councilmember Zhang, who asked about water service language for unincorporated communities and whether goals and implementation measures were included. Senior Planner Leah Brown responded that the analysis is an update consistent with the land use element. Approved (Resolution 2026-45 and Categorical Exemption 15306) with Councilmember Zhang voting no.
• J.12 (Technology Disaster Recovery MOU with Tulare): IT Director Jet Bennyhoff explained the reciprocal disaster recovery partnership (Tulare is 99.9 miles away, close to the roughly 100-mile rule of thumb) with no current funding appropriation. Approved unanimously.

Public Hearing: Housing Element Update and Zoning Ordinance Amendment (K.1)

• Senior Planner Leah Brown presented the sixth-cycle multi-jurisdictional housing element. Merced's Regional Housing Needs Allocation (RHNA) is 10,517 units—about 5,000 more than the previous cycle. Income categories for a family of four in Merced County: very low = $41,000 per year or less; low = $65,000 or less; moderate = $98,000 or less; above moderate = over $98,000. The city received HCD's "golden ticket" compliance letter on March 17, 2026, contingent on completing the required rezones.
• The proposed zoning ordinance amendment (Ordinance 2594) would add state-required language: by-right approval for multifamily development in which 20% or more of units are affordable to lower-income households, minimum density of 20 units per acre and maximum density of at least 24 units per acre on rezoned sites, and related requirements.
• Public comment: Ashley Marie Suarez (Leadership Counsel and Public Interest Law Project) argued the city should adopt the zoning amendment before the housing element and requested tenant protections, relocation assistance, and expanded affordable housing programs. Daisy Ramos shared personal experience of homelessness after raising concerns about her former housing conditions and asked for stronger oversight, transparency, and tenant protections.
• The council adopted Resolution 2026-44 (General Plan Amendment #24-06) and introduced Ordinance 2594, with Councilmember Zhang voting no.

Action Items

• L.1 Opportunity Zone 2.0: Staff requested approval to submit census tract 06047001801 to the Governor's Office of Business and Economic Development by the July 20, 11:59 PM deadline (moved up from July 25). Only about 25% of identified tracts will be designated. Councilmember Smith said he now supports the tract after meeting with staff, citing the Lake Road corridor and developments between Yosemite and UC Merced struggling to find financial footing. Approved with Councilmember Zhang voting no.
• L.2 Speed Study Addendum: City Engineer Darrell Jordan reported that JLB Traffic Engineering recommended keeping existing speed limits unchanged on North Bear Creek Drive (M Street to G Street), Mansionette Drive (Yosemite Avenue to Mercy Avenue), and Olive Avenue (R Street to M Street) after further study. Approved unanimously.
• L.3 RSTP Exchange Funds: The council selected the R Street (Olive to Northwood) Project (CP220050) for the FY 2025-26 Regional Surface Transportation Program exchange claim of $1,374,632, adopting Resolution 2026-41. The project adds a secondary left-turn lane, multi-use path, bike lanes, storm drainage, and road resurfacing. Approved unanimously.
• L.4 M Street/M Street Circle Improvements: City Surveyor Joe Cardoza presented a $114,125.00 Public Facilities Impact Fee credit/reimbursement agreement with Stonefield Home, Inc. for restriping M Street Circle to a one-way, two-lane configuration and removing stop signs. Councilmembers DuPont and Smith recused themselves (Stonefield is a client of their firm, though not their client personally). Councilmember Zhang expressed pedestrian safety concerns about crossing two lanes of traffic in the circle; the council approved with direction for Zhang to work with the city engineer on potential enhancements. Approved with DuPont and Smith recused.
• L.5 Food Truck Moratorium: Staff presented an urgency ordinance establishing a temporary moratorium on new approvals for food trucks in fixed locations. Statistics presented: 36 food truck entitlements approved (28 single-use, 8 multi-use); 18 of 34 locations concentrated within a 2.5-mile radius near downtown; only 3 permitted locations north of 24th Street within a 10-mile radius; and 3–4 new applications currently in the queue. Councilmembers Harris, DuPont, and Smith raised concerns about restricting trade, lack of demonstrated urgency, and Planning Commission procedure (the matter originated from Planning Commission comments rather than an agendized item; City Attorney Cornwall noted Charter Section 708 allows recommendations but acknowledged the process was imperfect). Public commenter Curtis Thomas urged denial, calling the sites "vacant asphalt" and citing free-market principles. A motion to deny the urgency ordinance (Harris, seconded by Zhang) passed unanimously. The council also discussed creating a formal pathway for boards and commissions to refer items to the council, potentially via the ethics and governance committee.
• L.6 2026-2036 Parks, Recreation, and Open Space (PROS) Master Plan: Director Christopher Jensen presented the plan developed from 12 community focus groups, more than 500 individual engagements, and nearly 1,400 community comments. It establishes four pillars (infrastructure and maintenance; connected community; safety and inclusion; resource stewardship), 35 strategic actions, and 15 high-priority actions. Councilmember Smith raised concerns about language that appeared to expand Parks and Rec into human services and public health roles; Chief Stanfield described a potential civilian park ranger/community outreach program. Councilmember Zhang requested more detail on park standards (restrooms, water stations, lighting, trash bins) and community gardens. Public commenter Crystal Ramos (Youth Leadership Institute, Youth United program manager) called for standardized park amenities and ongoing maintenance. The council voted unanimously to table the plan for 60 days for language clarification, further Parks Commission review, and a possible study session.

Business Items & Appointments

• M.1 Community Funding Ad-Hoc Committee: The council adopted Resolution 2026-46 creating a three-member ad hoc committee (with an October 30, 2026 sunset) to review and score the 14 nonprofit proposals received for the $30,000 FY 26/27 community funding allocation. Appointed: Councilmember Smith, Mayor Pro Tem Boyle, and Mayor Serrato. Approved unanimously.
• M.2 Arts and Culture Advisory Commission: Appointed Elizabeth Wolfrey (District 1), Noelle Chandler (District 5), and Christopher Carter (District 6), after Tommy Tran withdrew. Approved unanimously.
• M.3 Building and Housing Board of Appeals: The agenda listed one seat; staff noted a second professional-qualified seat had no applicants. The council voted to keep recruitment open rather than appoint from the current applicant pool. Approved unanimously.
• M.4 Recreation and Parks Commission (District 4): Appointed Marcus Ariano. Approved unanimously.
• M.5 Regional Airport Authority (2 seats): Only one applicant, Amos Munford, was appointed; the other seat remains unfilled. Approved unanimously.
• M.6 Tax Transparency Commission (District 4): Directed staff to continue recruitment. Approved unanimously.
• M.7 Planning Commission District 2: The council voted unanimously to reconsider the July 6, 2026 appointment and then unanimously to keep the seat open for additional applicants.
• M.8 Future Agenda Requests: Councilmember Harris requested a September 8 discussion of residential parking structure (carport) standards; City Manager McBride noted common setback and code issues and permit thresholds for smaller structures. Councilmember Smith requested an update on standing committee implementation; staff committed to prioritizing public safety and ethics/governance committees within about three weeks.
• M.9 Council Comments: Councilmembers noted community events, including General Van Pae Park, the Golden Valley High School "Cardinal Regime" marching band's Rose Parade fundraising, the Central Valley Training Center talent show, and downtown concerts.

Key Outcomes

• Information only: VST JPA/CFD financing concept (no vote; staff to finalize draft documents).
• Adopted Resolution 2026-45 (SB 244 Analysis) — passed with Councilmember Zhang voting no.
• Adopted Resolution 2026-44 and introduced Ordinance 2594 (Housing Element/RHNA) — passed with Councilmember Zhang voting no.
• Approved Opportunity Zone 2.0 submission for census tract 06047001801 — passed with Councilmember Zhang voting no.
• Approved speed study addendum, RSTP claim Resolution 2026-41, and M Street agreement ($114,125.00) — the latter with Councilmembers DuPont and Smith recused.
• Denied the food truck urgency ordinance/moratorium unanimously.
• Tabled the PROS Master Plan for 60 days unanimously.
• Created the Community Funding Ad-Hoc Committee and made appointments (Arts & Culture, Recreation & Parks, Regional Airport Authority); continued recruitment for the Building and Housing Board of Appeals, Tax Transparency Commission, and Planning Commission District 2.
• Adjourned in memory of former city employees Dave Tucker and Mike Wegley.