Report Prepared by: Jennifer Flachman, Senior Management Analyst, Scott McBride, City Manager
Title
SUBJECT: Approval of a Supplemental Appropriation from the Unreserved, Unencumbered Fund Balance in the General Fund in the Amount of $53,250 and Approval of a Service Agreement with the Lew Edwards Group to Facilitate a Community Assessment and Public Opinion Survey
REPORT IN BRIEF
Considers approving a supplemental appropriation from the unreserved, unencumbered fund balance in the General Fund in the amount of $53,250; and, approving a Service Agreement with the Lew Edwards Group to facilitate a community assessment and public opinion survey.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a supplemental appropriation from the unreserved, unencumbered fund balance in the General Fund in the amount of $53,250 in City Manager Division; and,
B. Approving a Service Agreement with The Lew Edwards Group in the amount of 53,250; and,
C. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by the City Manager; or,
2. Deny; or,
3. Refer back to staff for further study.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
Fiscal Year 2025 - 2026 Budget.
DISCUSSION
The City of Merced continues to prioritize long-term strategic planning for its public facilities and essential services. In alignment with past Council directives and community engagement efforts, staff is recommending approval of a supplemental appropriation of $53,250 from the Unreserved, Unencumbered Fund Balance in the General Fund. This funding will support a new service agreement with the Lew Edwards Group (LEG) to conduct a Community Assessment and Public Opinion Survey, in partnership with FM3 Research.
The purpose of this contract is to assess community priorities and gauge potential support for future public investment, including infrastructure and quality-of-life initiatives.
The proposed scope of services builds upon the City’s history of successful collaboration with LEG and FM3, and is structured to produce actionable, data-driven insights through a proven methodology.
Recently a Council Subcommittee was formed for the purpose of evaluating a potential measure for the 2026 ballot. The subcommittee has met and held a call with LEG and FM3. The subcommittee is recommending that work be initiated to poll community priorities and potential support. Those tasks would be completed through the proposed scope of services. The contract does not currently contemplate work beyond this stage. Should polling demonstrate community support to proceed the Council may consider a future amendment.
Although not specifically listed in the Council’s adopted 2025/2026 Goals and Priorities, implementation of community outreach and polling may help identify resources which could potentially support the established priority of fiscal stability to ensure the City’s long term financial health to maintain services and ongoing operations.
Scope of Services
The Lew Edwards Group (LEG), in collaboration with FM3 Research, two of California’s most highly regarded public affairs and opinion research firms, will provide the following services in support of the City’s strategic planning and community engagement initiatives:
• Review of Archival and Historical Information:
LEG will examine past collaborative efforts with the City, identifying key milestones, strategic outcomes, and best practices for public outreach and engagement. This review will help ground future strategy in a clear understanding of the City's historical context and prior communication efforts.
• Analysis of Budget and Election Activity:
LEG will review relevant City budget documents and election items presented to the public over the past 24 months. This ensures that any survey messaging developed is consistent with current fiscal realities and aligns with community priorities and past ballot activities.
• Baseline Public Opinion Survey:
Conducted by FM3 Research, a premier California-based opinion research firm with over 40 years of experience advising public agencies on policy and ballot strategies.
o Sample size: up to 400 likely November 2026 voters
o Survey duration: approximately 20 minutes
o Language: conducted in both English and Spanish
o Methodology: dual-mode (telephonic and online) approach to promote accessibility and diverse participation
• Strategic Analysis and Recommendations:
Following completion of the survey, LEG will provide a comprehensive analysis of findings. This will include strategic guidance and messaging recommendations to inform next steps, such as community outreach, ballot timing, and public information efforts. LEG’s proven success rate in over 95% of public agency ballot measure campaigns ensures recommendations will be actionable and results driven.
About the Firms:
The Lew Edwards Group has been a statewide leader in public agency revenue strategy and community engagement since 1997, helping clients secure billions in funding through successful outreach and ballot measure campaigns. Learn more at lewedwardsgroup.com
FM3 Research (Fairbank, Maslin, Maullin, Metz & Associates) brings deep expertise in public opinion research, providing actionable insights through surveys, focus groups, and advanced data analysis. Learn more at fm3research.com
Together, these firms offer an integrated approach to community engagement, combining data-driven insight, strategy and communications planning.
Historical Context
This initiative is consistent with previous Council actions that emphasized evidence-based decision-making and robust public engagement. Notable milestones include:
August 7, 2017: Council approved the Purchase and Sale Agreement for 3033 North “G” Street. At that time, staff was directed to evaluate all City-owned public facilities and assess financing options.
October 2017 - July 2018: LEG and FM3 conducted a series of public opinion surveys to evaluate community support for a ballot measure funding a new Police Headquarters, Fire Stations, Corporation Yard expansion, and park restroom renovations. Based on survey results, Council deferred a 2018 ballot initiative and instead pursued a detailed Needs Assessment.
January 2019: LPA, Inc. was awarded the Needs Assessment contract. The process generated critical insights that have informed ongoing facility planning.
FY 2021/22 Council Goals: A renewed focus on the potential extension of Measure C prompted another round of community outreach. LEG, FM3, and Zephyr Collaboration were contracted to conduct comprehensive outreach, including surveys, workshops, and online engagement.
November 2022 Election Planning: FM3 also conducted polling on alternate funding strategies for addressing affordable housing and homelessness, another emerging Council priority. Findings from this work supported future planning for potential ballot measures.
Current Recommendation
This proposed agreement with the Lew Edwards Group and FM3 Research marks the next phase in the City’s long-term planning strategy. By approving this supplemental appropriation and authorizing the services agreement, the City positions itself to:
• Responsively gauge community sentiment regarding future ballot initiatives;
• Maintain continuity with prior community engagement efforts;
• Establish a research-based framework for decisions related to public safety, infrastructure, housing, and fiscal sustainability.
Staff recommends approval of this agreement and appropriation to ensure timely implementation of the research effort, with findings expected to be presented to the City Council for consideration in preparation for the November 2026 election cycle.
IMPACT ON CITY RESOURCES
Staff is requesting a supplemental appropriation from the unreserved, unencumbered fund balance in the General Fund of $53,250 in the City Manager Division to cover The Lew Edwards Group Service Agreement.
This item requires five affirmative votes for Council approval.
ATTACHMENTS
1. The Lew Edwards Group Services Agreement