Report Prepared by: 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 $104,375 and Approval of an Agreement for Professional Services with the Lew Edwards Group to Provide Community Engagement and Communications Consulting Services
REPORT IN BRIEF
Considers approving a supplemental appropriation from the unreserved, unencumbered fund balance in the General Fund in the amount of $104,375; and, approving an agreement for professional services with the Lew Edwards Group to provide community engagement and communications consulting services
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 $104,375; and,
B. Approving an Agreement for Professional Services with The Lew Edwards Group in the amount of not to exceed $104,375; 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 essential services and public facilities. In alignment with Council Goals and Priorities to consider options for locally-controlled revenue sources an Ad Hoc Sub Committee of the City Council was created for the purpose of discussing a new local measure or other options. This subcommittee has been integral in the process leading to the City Manager and staff recommendation.
Based on valuable information obtained through public engagement efforts through the public survey process, staff is recommending approval of a supplemental appropriation of $104,375 from the Unreserved, Unencumbered Fund Balance in the General Fund. This funding will support an agreement for professional services with the Lew Edwards Group (LEG) to provide strategic community engagement and communications consulting services in partnership with FM3 Research and, should a local funding measure continue to be viable, ballot measure preparation services.
Background
FM3 Research conducted a baseline public opinion survey of just over 400 likely November 2026 voters in the City of Merced From November 30th to December 7th, 2025. The survey was approximately 20 minutes in length and was offered in both English and Spanish. A combination of telephone and online methods was used to encourage broad participation and achieve a representative sample.
Following completion of the survey, the Lew Edwards Group prepared an analysis of the responses which is summarized in Attachment 1 - City of Merced Local Funding Measure Survey.
Scope of Services
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. This team has previously assisted on other significant policy issues for the city, within Merced County, and throughout the Central Valley.
The Lew Edwards Group (LEG) will perform the following services:
• Project-facilitate and continuously update a coordinated strategy and timeline for City staff and other professionals/consultants assigned to the Project.
• Work with city staff on methods to engage constituents, expand community awareness of city service/fiscal needs and solicit additional community input on infrastructure, safety, and general fund service priorities. Recommend to staff/project professionals methods of engaging/informing constituents about Project in city communications vehicles, including newsletters, guest columns, website, and social media. Consultant will update or refine community input content and informational messaging. Advise and train city staff on messaging.
• Recommend methods to conduct informational outreach with community networks and organizations in the city to solicit feedback on city needs, provide information and advise city staff on the best manner of responding to questions from the public. Consultant will update and refine concise, user-friendly messaging content.
• Through subcontractor FM3 Research, conduct a Tracking Survey of approximately 15 minutes of up to 400 respondents to assess community viewpoints and project viability.
• Recommend a plan for informational mailings, paid digital and augmentation of city’s existing social media activities, and draft recommended content copy for these vehicles. The City Manager’s office and City Attorney will review/approve content copy. city to facilitate its own graphics, printing, mail house, social/digital media, and postage needs with its own vendors at its own expense, outside of this Agreement.
• Consultant will review earned (non-paid) local media and/or online media opportunities with city staff/assigned professionals as a method for disseminating information and assist with rapid response needs from media or the community as necessary to correct misinformation or clarify confusing information. Consultant does not function as a paid spokesperson for the city.
• Confer with the City Attorney on the ballot question or other revenue measure or informational municipal election materials. Work with City staff on related budget and staff reports and measure development.
Recommendation
By approving this supplemental appropriation and authorizing this professional 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.
This proposed agreement reflects work that is consistent with prior council direction emphasizing evidence-based decision making and meaningful public engagement.
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, City Manager Division of $104,375 to cover The Lew Edwards Group Service Agreement.
Recommendation A will require an affirmative vote of five Council members.
ATTACHMENTS
1. Summary of City of Merced Local Funding Measure Voter Survey
2. LEG Professional Services Agreement
3. Exhibit A - Scope of Services
4. Exhibit B - Schedule of Charges
5. Presentation