Report Prepared by: Craig J. Cornwell, City Attorney
Title
SUBJECT: Approval of a Revised Second Amendment to the Community Park #42 Memorandum of Understanding Extending the Term Through December 15, 2026
REPORT IN BRIEF
Considers a revised Second Amendment to the Memorandum of Understanding between City of Merced, County of Merced, Merced Union High School District, and Merced County Office of Education regarding the collaborative development of Community Park #42, extending the term through December 15, 2026.
RECOMMENDATION
City Council - Adopt a Motion:
A. Rescinding the City Council's June 15, 2026 authorization of the Second Amendment to the Memorandum of Understanding between City of Merced, County of Merced, Merced Union High School District, and Merced County Office of Education, which would have extended the term of the Memorandum of Understanding through September 30, 2026; and
B. Approving the revised Second Amendment to the Memorandum of Understanding extending the term through December 15, 2026; and
C. Authorizing the City Manager to execute the revised Second Amendment.
Body
ALTERNATIVES
1. Approve, subject to conditions other than as recommended by staff; or,
2. Deny; or,
3. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200 et seq.
CITY COUNCIL PRIORITIES
City Council’s FY 2026/2027 Goals and Priorities - Complete CP-42 JPA Formation and CP42 North Entitlements
DISCUSSION
In 2023, the City Council approved a Memorandum of Understanding (MOU) between City of Merced, County of Merced, Merced Union High School District, and Merced County Office of Education to collaborate on the development of Community Park #42 (CP-42) and the operation of the Regional Sports Complex.
As part of the collaborative effort, Merced County committed $1.5 million in American Rescue Plan Act funding, and Merced Union High School District committed approximately 38 acres of land immediately north of the City's CP-42 South parcel, which is currently under construction.
The MOU identifies the City's responsibilities as including annexation, conceptual design, preparation of an operational pro forma and environmental review. These activities are either ongoing or pending completion. The participating agencies are also continuing their efforts toward formation of a Joint Powers Authority (JPA) for the Regional Sports Complex.
On June 15, 2026, the City Council authorized a Second Amendment to the MOU extending its term through September 30, 2026. The Second Amendment was not fully executed by the participating agencies.
The County of Merced subsequently requested that the MOU instead be extended through December 15, 2026, to provide additional time for the participating agencies to continue project development activities and efforts toward formation of the JPA. Because the Second Amendment previously authorized by the City Council was not fully executed, staff is requesting that the City Council rescind its June 15, 2026 authorization and approve a revised Second Amendment extending the term of the MOU through December 15, 2026.
The proposed revised Second Amendment changes the expiration date of the MOU from September 30, 2026, as previously authorized, to December 15, 2026. All other terms and conditions of the MOU remain unchanged.
Approval of the revised Second Amendment does not establish or approve the contemplated JPA. Rather, it extends the existing MOU to allow the participating agencies to continue their collaborative efforts regarding CP-42 while work toward formation of the JPA continues.
IMPACT ON CITY RESOURCES
None.
ATTACHMENTS
1. Revised CP-42 Second Amendment Memorandum of Understanding between City of Merced, County of Merced, MUHSD & MCOE.
2. Prior CP-42 Second Amendment Memorandum of Understanding between City of Merced, County of Merced, MUHSD & MCOE.
3. CP-42 First Amendment Memorandum of Understanding between City of Merced, County of Merced, MUHSD & MCOE dated December 15, 2025.
4. Memorandum of Understanding between City of Merced, County of Merced, MUHSD & MCOE dated October 17, 2023.