Report Prepared by: Daryl Jordan, PE, City Engineer
Title
SUBJECT: Approval of a Memorandum of Understanding (MOU) with the County of Merced for Road Improvements of McKee Road within Merced City Limits from North Bear Creek Drive to Yosemite Avenue
REPORT IN BRIEF
Considers approving a Memorandum of Understanding (MOU) between Merced County and the City of Merced for the City to reimburse Merced County a maximum estimated amount of $995,000 for roadway improvements to McKee Road within the city limits.
RECOMMENDATION
City Council - Adopt a motion
A. Approving the Memorandum of Understanding (MOU) with Merced County; and,
B. Approving a reimbursement to the County of Merced in an amount not to exceed $995,000; and,
C. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff; or,
2. Approve, subject to modifications by City Council; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
Merced County Department of Public Works has a planned roadway improvement project on McKee Road and has approached the City of Merced to include performing the roadway improvements on McKee for the portions within the city limits, extending from North Bear Creek Drive and Yosemite Avenue.
On October 6, 2025, City Council approved budgeting the 24/25 RSTP funding for CP260036 McKee Road Rehabilitation Project for the reimbursement costs, not to exceed $995,000.
The project scope within City limits consists of, in general, the rehabilitation of the road from North Bear Creek Drive to Yosemite Avenue, curb ramps, and traffic striping and marking. The County plans to rehabilitation the stretch of McKee Road starting at Santa Fe Drive to Yosemite Avenue in coordination with the City.
The City has agreed to reimburse the County for their share of the roadway improvements within the City limits, for an amount not to exceed $995,000. The County of Merced will submit a single invoice to the City of Merced upon completion of construction. If the construction extends into the new fiscal year, then the County will submit two invoices, one for each fiscal year’s portion of work.
Staff recommends approving the Memorandum of Understanding so that the County can start the project and be reimbursed for a portion of the roadway improvement costs.
IMPACT ON CITY RESOURCES
CP260036 was established as a Capital Improvement Project and has sufficient funding to complete the City portion of the project.
ATTACHMENTS
1. Memorandum of Understanding