Report Prepared by: Christopher Jensen, Director, Parks & Community Services
Title
SUBJECT: Approval of a First Amendment to Memorandum of Understanding Between City of Merced, Merced County, Merced Union High School District, and Merced County Office of Education Extending the Term to June 30, 2026, Pertaining to Community Park #42.
REPORT IN BRIEF
Considers approving a First Amendment to Memorandum of Understanding between City of Merced, Merced County, Merced Union High School District, and Merced County Office extending the term of this Memorandum of Understanding to June 30, 2026, regarding Community Park #42.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a First Amendment to Memorandum of Understanding between City of Merced, Merced County, Merced Union High School District, and Merced County Office of Education extending the term of this Memorandum of Understanding to June 30, 2026; and,
B. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommend by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to Staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Merced City Charter, Section 200
CITY COUNCIL PRIORITIES
City Council’s FY 25/26 Goals and Priorities- Complete CP42 JPA formation and CP42 North entitlements
DISCUSSION
In 2023 City Council entered into a Memorandum of Understanding with the County of Merced, Merced Union High School District, and the Merced County Office of Education to collaborate on the development of CP-42 and the operation of the Regional Sports Complex. Merced County obligated 1.5 million dollars in American Rescue Plan Act funding and Merced Union High School District has obligated roughly 38 acres of land immediately to the north of the City parcel (CP42 south) currently under construction.
The MOU outlined City responsibilities of annexation, conceptual design & operational proforma, along with Annexation and Environmental Review. Each of those roles is either pending completion or still underway. However, in an effort to maximize funding as much as possible the City still has approximately $1,200,000 available from the County’s contribution of ARPA funding. In reviewing potential options for use of the available funding the pending Partners have agreed to utilize $300,000 on CP42 North Engineering, and the remaining $900,000 on further developments of CP42 South to ensure immediate potential for generating revenues.
In addition, these parties are extending their commitment to form a Joint Powers Authority (JPA) in the future to oversee operations of the Sports Complex. The responsibilities of each party under the JPA are as follow:
City of Merced
1. The City shall serve as lead agency for the Project, in consultation with the County.
2. The City shall be jointly responsible, along with MUHSD, for maintenance of the MUHSD Property until the JPA is established.
3. The City shall cooperate with the Parties as necessary to facilitate the Project.
Merced County
1. The County shall contribute the Funding.
2. The County shall cooperate with the City in determining how the MUHSD Property is developed.
3. The County shall support annexation of the MUHSD Property.
4. The County shall cooperate with the Parties as necessary to facilitate the Project.
MUHSD
1. MUHSD consents to City operating as lead agency for the Project.
2. MUHSD shall contribute the MUHSD Property to the JPA upon formation.
3. MUHSD shall be jointly responsible, along with the City, for maintenance of the MUHSD Property until the JPA is established.
4. MUHSD shall cooperate with the Parties as necessary to facilitate the Project.
MCOE
1. MCOE shall contribute Six Hundred Fifty Thousand Dollars ($650,000) for the construction of a futsal court at the Sports Complex, as set forth in the Futsal Agreement, and shall retain equal access to the Sports Complex Phase One, as outlined in the Futsal Agreement.
2. MCOE shall cooperate with the Parties as necessary to facilitate the Project.
The MOU proposes the following governance structure for the future JPA:
• City of Merced: two voting members
• Merced County: two voting members
• MUHSD: two voting members
• MCOE: one voting member
In light of the ongoing construction efforts and need to form the JPA, Staff is requesting Council approval of the First Amendment of the Memorandum of Understanding between City of Merced, Merced County, Merced Union High School District, and Merced County Office of Education for the collaborative development of Community Park 42.
This amendment would extend the MOU through June 30th 2026.
IMPACT ON CITY RESOURCES
No funding is required at this time.
ATTACHMENTS
1. CP-42 First Amendment_ MOU between City of Merced, Merced County, MUHSD, & MCOE
2. CP-42 MOU between City of Merced, Merced County, MUHSD, & MCOE dated October 17, 2023.