City Council Meeting

CITY OF LOS BANOS CITY COUNCIL MEETING MINUTES March 4, 2026 ACTION MINUTES – These minutes are prepared to depict action taken for agenda items presented to the City Council. For a detailed account of this meeting, refer to the video recording available on YouTube, which serves as a permanent record. CALL TO ORDER: Mayor Amabile called the City Council Meeting to order at the hour of 6:01 p.m. PLEDGE OF ALLEGIANCE: Police Chief Reyna led the pledge of allegiance. ROLL CALL – MEMBERS OF THE CITY COUNCIL PRESENT: Council Members Mitzy Perez – District 1, Marcus Chavez – District 3, Deborah Lewis – District 4, Mayor Michael Amabile, District 2 – vacant STAFF MEMBERS PRESENT: City Manager Than, City Attorney Lerner, City Clerk Mallonee, Community & Economic Development Director Souza Elms, Police Chief Reyna, Public Works Director Via, Fire Chief Tualla, Finance Director Moreno, Parks & Recreation Director Heim, Interim Human Resources Director Carlos. CONSIDERATION OF APPROVAL OF AGENDA: Motion by Lewis, seconded by Chavez to approve the agenda as submitted. The motion carried by the affirmative action of all Council Members present. PRESENTATIONS. PROCLAMATION RECOGNIZING ARBOR DAY. Mayor Amabile presented proclamation and Parks & Recreation Director Heim was present to accept. PROCLAMATION RECOGNIZING ANGELINA BORELLI. Mayor Amabile presented the proclamation and Miss Angelina Borelli was present to accept. PENINSULA CLEAN ENERGY (PCE) PROGRAM UPDATES AND PRESENTATION – BY DR. SHAWN MARCHALL, CEO OF PENINSULA CLEAN ENERGY. Community & Economic Development Director Souza Elms presented the staff report, introducing Shawn Marshall, Peninsula Clean Energy CEO, who spoke in more detail regarding its continued programs, partnerships, and investments benefiting Los Banos residents and businesses, which included a PowerPoint presentation. Mayor Amabile expressed appreciation on behalf of the community and all communities served, thanking Peninsula Clean Energy (PCE) for the services they provide and commending the quality and dedication of staff. He highlighted the positive impact of strong leadership on team commitment and service delivery, and thanked the group for their work and presence at the meeting. PUBLIC FORUM: MEMBERS OF THE PUBLIC MAY ADDRESS THE CITY COUNCIL MEMBERS ON ANY ITEM OF PUBLIC INTEREST THAT IS WITHIN THE JURISDICTION OF THE CITY; INCLUDES AGENDA AND NON-AGENDA ITEMS. NO ACTION WILL BE TAKEN ON NON-AGENDA ITEMS. SPEAKERS ARE LIMITED TO A FIVE (5) MINUTE PRESENTATION. DETAILED GUIDELINES ARE POSTED ON THE COUNCIL CHAMBER INFORMATIONAL TABLE. Mayor Amabile opened the public forum. SCOTT SILVEIRA, Merced County Supervisor, shared that Merced County is working on bringing official document services to the Westside at the Merced County Fairgrounds location, allowing residents to obtain items such as birth, death, and marriage certificates and file fictitious business names locally; the program is expected to begin one day per week with the goal of expanding to additional days based on demand. An UNNAMED PERSON spoke regarding the recent hazardous incident, highlighting gaps in information and expressing the need for timely and accurate communication to residents, and suggested the creation of a Community Emergency Response Team with training through FEMA. Another UNNAMED PERSON spoke on Item 13 regarding Council pay, stating that public office is a privilege and not a means to earn extra income, expressing concern over the lack of a clear justification for proposed raises, questioning the timing in light of the recent Pinheiro situation and payout, asking why the mayor would receive an increase immediately while councilmembers would not, why the item was placed at the end of the agenda, and requesting transparency, a clear plan for the City, disclosure of additional benefits, and a roll call vote. NATHAN ALZONO, PG&E representative, spoke about an upcoming press release announcing a reduction in the price per kilowatt hour as part of affordability efforts and expressed interest in returning to provide a more comprehensive update. An UNNAMED PERSON inquired about the opportunity to speak on Item 12. JAVIER POWELL, representing the Milliken Museum, reported on a successful lecture series, shared that related content is available online, and announced the upcoming Arbor Day Breakfast fundraiser to be held Friday at the Los Banos Community Center. BLANCHE JORGE, a downtown resident, followed up on a proposal to allow placement of a poster at the local airport encouraging pilots to transport shelter animals to rescues, praised staff efforts and ongoing rescue coordination, emphasized the importance of education, spay and neuter programs, and the need for additional veterinary services, and noted outreach efforts related to attracting veterinarians to local shopping centers, while expressing appreciation for progress in the City. MIGUEL ALEJANDRE requested that the City and County work together to improve emergency response communication, referencing the recent incident, noting difficulties with alert systems, and sharing that he had spoken with Cal Fire representatives, emphasizing the importance of public awareness before emergencies occur. City Clerk Mallonee read into the record an email from Julie Creighton regarding concerns with the recent ammonia leak response, including issues with the emergency notification system, delays in alerts, inconsistent communication, and a request for accountability and an after-action report. No one else came forward to speak and the public forum was closed. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Motion by Chavez, seconded by Perez to approve the consent agenda items as follows: Check Register for #256355 – #256557 in the Amount of $2,119,303.15; City Council Meeting Minutes for February 18, 2026; City Council Resolution No. 7054 – Approving the Purchase of a Code Enforcement Vehicle in the amount of $36,979.20 from Winner Chevrolet/Elk Grove Auto Group Through the State of California Contract No. 1-22-23-23D; City Council Resolution No. 7055 – Authorizing the City Manager to Execute an Amendment to the Existing Cooperative Procurement Agreement with Axon Enterprises Inc. for the Addition of Fleet 3 In-Car Cameras to the Police Department’s Existing Axon System in the Amount of $69,517.74 Annually; City Council Resolution No. 7056 – Authorizing the Purchase of One (1) Fouts Fire F.O.U.R Mini-Pumper in the Amount of $433,836.38 from Fire Apparatus Solutions; City Council Resolution No. 7057 – Approving and Authorizing the Mayor to Execute an Administrative Amendment to Paragraph 2.2 of the Peninsula Clean Energy Joint Powers Agreement Reflecting the Name Change From Peninsula Clean Energy to WestLight Energy; City Council Resolution No. 7058 – Approving and Authorizing the City Manager to Execute the First Amendment to the Professional Services Agreement with MuniTemps (Government Staffing Services, Inc.) to Increase the Total Not-to-Exceed Compensation Amount from $30,000 to $150,000. The motion carried by the affirmative action of all Council Members present. PUBLIC HEARING – TO RECEIVE PUBLIC COMMENT AND CONSIDERATION OF APPROVING FINAL DEVELOPMENT PLAN #2025-01 FOR THE OVERLAND TRAIL SUBDIVISION (STONEFIELD HOME INC.); CITY COUNCIL RESOLUTION NO. 7059 – APPROVING FINAL DEVELOPMENT PLAN #2025-01 FOR THE OVERLAND TRAIL SUBDIVISON (STONEFIELD HOME, INC). Community Economic Development Director Souza Elms presented the staff report which included a PowerPoint presentation. Mayor Amabile opened the public hearing. KATHY BALLARD inquired about the scope of the CEQA process and whether it includes consideration of local school capacity, noting concerns about limited availability at nearby schools, and also asked about the use of rolled curbs in combination with square curbs and whether this design could impact drainage. MARK TRAICH? expressed concerns regarding access and egress for emergency services, emphasizing that street design in the proposed subdivision should ensure adequate space for fire and police vehicles, and stated that this should be a top priority, particularly in light of challenges observed in nearby developments. ERASMO VIVEROS spoke about the City’s history of residential development, encouraging the use of lessons learned over the years to avoid repeating issues such as narrow roadways, insufficient parking, and design shortcomings, and suggested it would be beneficial to identify what has not worked in the past to guide future planning. BLANCHE JORGE expressed support for the architectural style of the homes, particularly the early Americana design, and recommended incorporating pet-friendly amenities into the subdivision, such as dog wash stations, built-in feeding areas, and kennel spaces, noting these could be optional upgrades for buyers and are already being implemented in other regions. REFUGIO LLAMAS raised concerns about emergency ingress and egress, the proximity of homes to sidewalks, and inquired about the availability of nearby parks for the development. MATTHEW ROGERS of Benchmark Engineering thanked staff for the presentation and addressed several public concerns, explaining that the project complies with City standards for street width, parking, emergency access, drainage, setbacks, and architectural consistency, noted coordination efforts regarding school capacity, and stated that certain amenities, including pet features, could be offered as options to homebuyers. MIGUEL ALEJANDRE, speaking from his experience in heating and cooling, suggested consideration of alternative materials such as concrete instead of asphalt for roadways in order to reduce heat retention and improve overall conditions for residents and pets. No one else came forward to speak and the public hearing was closed. Ms. Souza Elms addressed the width of the streets, noting that the new streets, at approximately 52 feet, significantly exceed older developments built to 32-foot standards, reflecting updated City design requirements to improve access, safety, and emergency vehicle circulation. She also clarified CEQA, explaining that impacts on schools, as well as police and fire services, were considered and mitigated through required fees and coordination with the school district. Regarding curbing, she noted that rolled curbs exist in the Presidential area and on State Streets, and the proposed subdivision’s combination of rolled and vertical curbs represents a pilot program balancing infrastructure functionality, ADA compliance, and aesthetic considerations requested by the applicant. She also discussed lessons learned from past subdivisions, noting that the City is required to apply design standards objectively and cannot prohibit development, but can encourage desired design outcomes. Parks & Recreation Director Heim provided information on nearby parks, including Regency Lot D Park and other parks within a half- mile to one-mile radius, while noting constraints that limit adding a new park within the subdivision itself. Ms. Souza Elms stated that the use of concrete versus asphalt is governed by the City’s standards and specifications, with asphalt preferred for initial cost, repair ease, and housing affordability. Public Works Director Via added context regarding concrete’s greater durability but higher cost and more complex repairs, which can impact overall project feasibility. Mayor Amabile emphasized the City’s approach to balancing infrastructure, aesthetics, and affordability, highlighting the strategy of using development fees to fund both smaller pocket parks within subdivisions and larger regional parks for broader recreational opportunities. Mayor Amabile noted that this approach considers modern community needs, including walkability, safety, and recreational access for residents of all ages. Council Member Lewis commented that narrower streets were a trend in California prior to the recession, noting that older streets in the area are 32 feet wide. She asked whether a fire truck could safely navigate the streets with parked vehicles. Mr. Via responded that the current design, with a 36-foot curb-to-curb width within a 52-foot right-of-way, provides sufficient space for emergency vehicles. City Manager Than added that the updated street standards meet safety requirements for both emergency access and everyday vehicle travel. Council Member Lewis noted that, in general, she has been in favor of rolled curbs, but only when there is public green space between the curb and the home. She observed that in areas with rolled curbs, vehicles sometimes park on the sidewalk, creating hazards. She further noted that the new subdivision design appears to provide proper ingress and egress without dips in the curb, which improves pedestrian safety and accessibility. Motion by Perez, seconded by Chavez to adopt City Council Resolution No. 7059 – Approving Final Development Plan #2025-01 for the Overland Trail Subdivision (Stonefield Homes, Inc.). The motion carried by the affirmative action of all Council Members present. CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 7060 – APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT UP TO $3.6 MILLION AND ANY AMENDMENTS THERETO FROM THE 2025 FUNDING YEAR OF THE STATE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FOR A TINY SHELTER VILLAGE. Community Economic Development Director Souza Elms presented the staff report, which included a PowerPoint presentation. Ms. Souza Elms spoke in more detail that the California Office of Housing and Community Development (HCD) administers CDBG funds for municipalities under 50,000 population, including Las Banos, which must compete with other non-entitlement cities for funding. Up to $3.6 million per application is available through a competitive process, with awards anticipated in September 2026 and an expenditure timeline of two years and nine months from execution of the standard agreement. The CDBG program assists local governments in addressing needs for low- and moderate-income populations, slum and blight prevention, or urgent needs, such as disasters. She noted that current emergency shelter capacity in the city, including two bridge homes totaling 20 beds, is insufficient to meet demand. The proposed tiny shelter village would provide additional shelter and supportive services, including bathrooms, showers, laundry facilities, and case management, complementing One Tree Village’s permanent supportive housing. She provided an overview of the structured site evaluation process for the tiny shelter village. Sites were scored using weighted criteria aligned with CDBG priorities, including public health and safety, neighborhood compatibility, environmental conditions, cost, readiness, and access to utilities. Proximity to residential neighborhoods and sensitive land uses, as well as potential soil contamination, were emphasized. The G Street parcel, located between 9th and 10th Streets, scored highest due to minimal residential proximity, no known contamination, utility access, cost efficiency, and readiness for development. The parcel is currently partially occupied by an asphalt pad used by an encampment and is adjacent to commercial properties. Only half of the 1.1-acre parcel would be used for the shelter. Ms. Souza Elms emphasized that Council direction on site selection is necessary for the CDBG application, environmental review, and project planning. Fiscal impact: no match is required to apply, and if awarded, up to 7% of the grant may reimburse the city for administrative costs. The resolution before Council authorizes staff to apply for up to $3.6 million to develop the tiny shelter village with supportive services, providing at least 30% capacity within the city limits Ms. Souza Elms spoke to a typographical error in the resolution, clarifying that the program allocation should be $500,000. The City would be applying for $3 million in CDBG funding, with $100,000 for administrative costs. Staff also requested that the City Council provide direction to use the city-owned G Street parcel between 9th Street and 10th Street as the proposed site for the tiny shelter village project. Mayor Amabile invited the public to come forward and speak. MARK TREICHEL stated that the City may be conflating different populations by treating “unhoused” and “homeless” individuals as the same, emphasizing that he believes there are important differences in needs and behaviors. He expressed concern about mixing individuals and families seeking stability and assistance with those who may not want help or could present safety risks, citing observed instances of disruptive or unsafe behavior. He suggested dividing the proposed development into separate areas to accommodate these groups, including splitting the parcel into two sections, potentially locating one closer to the police station and the other near the community center, to improve safety and outcomes for residents and assist emergency services. LARRY BYERS stated that the City is applying for a $3.6 million grant and expressed strong support for the effort. He noted that Christy and Stacy have successfully secured multi-million-dollar grants in the past, praised their expertise in grant writing, and encouraged the City to move forward with the application. No one else came forward to speak. Council Member Perez asked whether there are costs associated with applying for the grant. Ms. Souza Elms responded that there are upfront costs to the City, but these would be recouped if the grant is awarded. She noted that required preparations include NEPA clearance, estimated at approximately $12,000, as well as improvement plans, and explained that these steps are necessary to demonstrate readiness for the project. She added that even if the grant is not awarded, the completed work would still be useful for future applications. Council Member Chavez asked about potential separation of populations within the proposed site, referencing earlier public comment. Ms. Souza Elms clarified that the emergency shelter is intended as a sustainable replacement for the existing encampment, primarily serving individuals currently living in tents. She noted that terminology such as “unhoused” follows HUD definitions and is used carefully in the application. Ms. Souza Elms explained that individuals or families in need of longer-term or more stable housing would be better served through other programs, such as permanent supportive housing, while the shelter is not designed for families or extended stays. She added that families with minors are discouraged from staying in encampments and are instead assisted through service providers with motel vouchers and support in obtaining permanent housing. Council Member Lewis asked for clarification on unit size, noting they are only a couple hundred square feet. Ms. Souza Elms responded that the units are approximately 70 to 100 square feet, which is not sufficient for families, and confirmed that they are intended for single individuals only. Mayor Amabile expressed support for securing the full project funding and stated that, if there is a shortfall, the City should consider committing additional resources to complete the shelter and fully address the encampment. Mayor Amabile emphasized the goal of transitioning individuals out of tents into more stable, amenity-equipped shelter units and highlighted the importance of having full-time on-site monitoring or management to ensure safety, accountability, and proper operation of the facility. Motion by Chavez, seconded by Perez to adopt City Council Resolution No. 7060 – Approving an Application for Funding and the Execution of a Grant Agreement up to $3.6 Million and Any Amendments Thereto from the 2025 Funding Year of the State Community Development Block Grant (CDBG) Program for a Tiny Shelter Village, with the correction to Program dollar amount to $500,000 and designation of the project site. The motion carried by the affirmative action of all Council Members present. CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 7061 – ACCEPTING THE INDEPENDENT ACCOUNTANT’S REPORT ON AGREED-UPON PROCEDURES RELATED TO THE CITY’S CAPITAL PROJECTS FOR THE PERIOD OF JULY 1, 2022 THROUGH JUNE 30, 2024 AS PREPARED BY HARSHWAL AND COMPANY LLP. Finance Director Moreno presented the staff report, which included a PowerPoint presentation. Ms. Moreno spoke in more detail to the results of a specialized audit covering City capital projects from July 1, 2022 through June 30, 2024, conducted by an independent accounting firm using agreed-upon procedures rather than a full financial audit. She explained that the review focused on compliance with applicable laws, regulations, and City policies, including procurement, contract management, payment authorization, and accounting practices, and was intended to provide transparency to the Council. Ms. Moreno spoke in more detail regarding the audit scope and findings. The auditors reported no exceptions in compliance, procurement, payments, or accounting records. However, two projects—the 2023 Street Rehabilitation Project and the Animal Shelter Modular Building Project—experienced limited contract overruns. Ms. Moreno stated that staff have implemented and will continue strengthening measures to include appropriate contingencies and seek Council approval for any overruns beyond authorized amounts. She concluded that the report reflects strong overall compliance and requested Council adopt a resolution accepting the independent auditor’s report. Mayor Amabile invited the public to come forward to speak. No one came forward to speak. Council Member Lewis asked if any deficiencies were found in the audit. Ms. Moreno responded that there were none, except for a $12,000 overrun on the 2023 Street Rehabilitation Project due to insufficient contingency and an overrun on the Animal Shelter Project because the prior Public Works Director applied the “Green Book” contingency standard, which allows for more than the City’s stricter policy. She confirmed that there were no other findings whatsoever. Mayor Amabile noted that while the audit found no deficiencies, this Council would have handled some past projects differently, as certain projects were not completed in a sustainable manner or with full transparency. He thanked Ms. Moreno and her department for all the work on the audit. Ms. Moreno added that the City has gone through 12 audits since she has been in her role, and these reviews have helped improve processes and strengthen internal controls, highlighting the department’s ongoing efforts and successes. Motion by Lewis, seconded by Chavez to adopt City Council Resolution No. 7061 – Accepting the Independent Accountant’s Report On Agreed-Upon Procedures Related to the City’s Capital Projects for the Period of July 1, 2022 Through June 30, 2024 as Prepared by Harshwal and Company LLP. The motion carried by the affirmative action of all Council Members present. CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 7062 – ESTABLISHING THE PROCESS TO FILL THE DISTRICT 2 VACANCY. City Manager Than presented the staff report. City Manager Than reported that District 2 Council Member Evan Sanders resigned effective January 9, 2026, creating a midterm vacancy. Pursuant to Governing Code Section 36-512, Subsection B, the City Council must fill the vacancy within 60 days—by March 10—either by appointment or by calling a special election. City Manager Than outlined two options: (1) appoint a successor to serve the remainder of the term, from March 10 to November 3, 2026, or (2) call a special election, which would be held on the next regularly established election date, November 3, 2026, coinciding with the general election. Council Member Lewis noted that a special election was held this past September with only 8–9% of the District 2 voting population participating, at a cost of $30,000–$40,000. She stated that District 2 residents should elect their next Council member and that holding the election during the general election would give potential candidates adequate time to consider running. Council Member Lewis expressed that the general election is the best option for ensuring a fair and representative selection. Mayor Amabile invited the public to come forward to speak. KATHY BALLARD, a District 2 resident, stated she would prefer an appointment, noting that leaving the seat vacant for an extended period is too long and that there are residents willing to be appointed but not run in the November election. MIGUEL ALEJANDRE stated that he feels the community has already spoken when REFUGIO ran for Mayor and, as a District 2 resident, he agreed that leaving the seat vacant for so long would be detrimental. MARK TREICHEL stated that he is willing to be appointed, lives in District 2, and would be willing to run in the November election. No one else came forward to speak. Mayor Amabile noted that there is a big difference between why the Council appointed a member a year ago and the current situation. Last year, the Council did not have a full body in place and needed to act quickly to govern the City. He stated that he generally leans toward letting the people decide and referenced an experience from 30 years ago, emphasizing that such decisions are best left to the voters. Council Member Chavez stated that he feels the people should decide who represents District 2, but expressed concern that the seat would remain vacant for nearly a year before someone could be sworn in. He noted that even if the Council chooses to appoint a successor, the voters would still have the opportunity to make the final decision in the November election. Council Member Chavez emphasized that while he is open to exploring an appointment to avoid a long vacancy, he does not support holding a costly special election. Council Member Perez stated that she feels waiting a year to fill the District 2 seat is too long and asked how soon an appointment must be made. City Attorney Mary Lerner confirmed that the deadline for appointment is next week, March 10, 2026. City Attorney Mary Lerner explained that the Council has three options regarding the District 2 vacancy: adopt a resolution to appoint a qualified individual (Option 1), place the position on the November election (Option 2), or give direction to call a special meeting to make the appointment. She recommended calling a special meeting for Monday night to allow the Council to make an appointment before the Tuesday, March 10, 2026, deadline. City Manager Than asked City Attorney Lerner to touch base on the legal requirements for appointing a Council member. City Attorney Lerner explained that any appointee would serve the remainder of former Council Member Sanders’ term until the November 3, 2026, general election. She noted that there are no specific state laws or municipal code provisions requiring a formal appointment procedure, and the Council may appoint any qualified individual who is at least 18, a registered voter in Merced County, and a resident of District 2. All discussions and actions must occur in open session under the Brown Act, and legal limitations, such as appointing a majority of council members or appointing an existing council member, do not apply. Appointments must be made by Tuesday, March 10, 2026. City Clerk Mallonee then spoke about the customary process for appointments, explaining that traditionally it involved multiple steps over several weeks, including public discussion, advertising in the newspaper and on the City website, allowing candidates time to apply, and conducting open interviews before the Council made a final selection. Council Member Lewis expressed concern about the timing of an appointment, stating that two days is not enough time to notify the public or allow potential candidates to apply. She emphasized that Councilmembers are responsible for all residents and not just their own districts, and she does not believe the Council would neglect District 2 in the meantime. Council Member Lewis stated her support for Option 2, holding the election in November, noting that the next election is eight months away. A motion was made by Council Member Lewis to go with Option 2, placing the District 2 Council vacancy on the November 3, 2026, general election ballot. The motion did not receive a second and therefore died A motion was made by Council Member Chavez to go with Option 1, adopting Resolution 7062 to appoint a qualified individual to the District 2 Council vacancy. The motion was seconded by Council Member Perez. Motion by Chavez, seconded by Perez to adopt City Council Resolution No. 7062 – Establishing the Process to Fill the District 2 Vacancy with appointment and to circulate a notice and application to be due by Friday March 6 and call a special meeting for Monday March 9. The motion carried by the following roll call vote: AYES: Chavez, Perez, Amabile; NOES: Lewis, ABSENT: None. DISCUSSION AND DIRECTION REGARDING AMENDMENTS TO LOS BANOS MUNICIPAL CODE SECTION 2-1.301, ET SEQ. TO INCREASE ELECTEDS COMPENSATION. City Attorney Lerner presented the staff report, making note of an overview regarding potential modifications to elected officials’ compensation, noting that no vote was required at this time and staff was seeking direction only. She explained that under Senate Bill 329, which amended California Government Code Section 36516, general law cities such as Los Banos may increase Council member salaries based on population. With a current estimated population of approximately 48,896, Los Banos qualifies for a maximum monthly Council member salary of $1,275. City Attorney Lerner noted that current salaries, set in 1989, are $300 per month for Council members and $400 per month for the Mayor, significantly below market levels. Any increase would require a separate ordinance, take effect for Council members after the next regular election in November 2026, and for the Mayor could take effect during the current term. She also noted fiscal impacts, including allocation across multiple city funds, and that the City Clerk and Treasurer currently receive $100 per month, with staff available to prepare revised salary schedules for those positions if directed. The purpose of the discussion was to provide background, legal requirements, and comparative data to allow the Council to give direction on whether to proceed with preparing an ordinance to increase compensation up to the statutory maximum Mayor Amabile invited the public to come forward to speak. REFUGIO LLAMAS stated that the City of Merced has a population of approximately 99,000 and manages a budget twice the size of Los Banos. He noted the current salaries for Merced’s Council members and Mayor and expressed concern that the proposed increase for Los Banos would more than double Council pay. He emphasized that serving on the Council is a position intended to give back to the community rather than for personal financial gain. REFUGIO further stated that he believes any funds allocated for salary increases would be better spent on initiatives that directly benefit residents, such as economic development, community programs, or additional personnel for city services. No one else came forward to speak. Mayor Amabile stated that he had requested the item be brought forward. He emphasized that he does not serve for the money, noting he ran for Mayor because of his love for the community, and shared that he is personally losing income while serving. His primary concern is that council compensation has not been reviewed in 37 years, and he expressed concern about the future. Reflecting on the past, he noted changes in volunteerism and civic participation, and stressed the need to entice individuals to serve as council members. He highlighted efforts to appoint younger individuals to encourage involvement and questioned how the City can attract people to take on the demands of the role, emphasizing the importance of making it worthwhile. He added that he will continue to run for Mayor regardless of whether compensation is increased, but wants to see more community members get involved and make a difference. Speaking from his perspective as a businessman, he suggested that after 37 years, it may be time to consider increasing council compensation to support future recruitment and participation. Council Member Lewis stated she has served 13 years on the City Council and 12 years on the Planning Commission, in addition to volunteering on boards such as the Merced County Fair Board. She noted that through her role on the Valley Air Board, compensation has increased over time and is now higher than what she receives as a Councilmember. She shared that she does not utilize the City’s health insurance, as she has coverage elsewhere. Council Member Lewis emphasized that for 37 years, the Council has worked to be fair and responsible in supporting City employees and managing budgets, while their own compensation has not been revisited. She highlighted that serving on the Council involves significant time, effort, and decision-making, as well as attending community events as an elected servant. She expressed that it is not unreasonable to consider making the Council “whole,” and that compensation should reflect the value of the role. She concluded that the issue is ensuring elected officials are compensated at a level the community believes they deserve. Mayor Amabile stated that, unlike state and federal officials, local elected officials receive minimal compensation and emphasized that he views himself as a public servant rather than a politician. He noted that Councilmembers generally do not receive additional pay for serving on outside boards or committees, with the exception of Council Member Lewis’ role on the Air Board, and that the only additional benefit provided is a City-issued cell phone allowance. He added that he rarely seeks reimbursement for expenses such as mileage, even when traveling for City business, underscoring that his service is not motivated by financial gain. Council Member Chavez clarified that $1,275 is the maximum allowable compensation and not a proposed amount, but rather a reference point to help guide discussion. He expressed concern over why council compensation has not been adjusted in 37 years and noted that volunteerism has declined over time, making it more difficult to attract individuals to serve. He also pointed to outdated allowances, such as per diem rates, and highlighted the low compensation of $100 for positions like the City Clerk, stating it raises concerns about how to recruit and retain qualified individuals for demanding roles. Council Member Chavez emphasized that no one is seeking to profit from serving, but acknowledged the significant time, effort, and responsibilities involved. He stated that it is worth further review, including gathering staff input and community feedback, and suggested that it may be time to consider increasing compensation to better reflect current expectations and support future participation. Council Member Perez expressed agreement with previous comments, noting that when she shares the current compensation, people are often surprised and find it hard to believe. She stated that she does not submit reimbursement for her phone and emphasized that serving on the Council is not her primary job. She shared that she takes time off from work to attend meetings and events, highlighting the personal sacrifices involved. Council Member Perez noted that many people are not aware of the significant time and effort required, including reviewing extensive materials. She added that while compensation is not the main motivation, having some level of pay could help entice the younger generation to get involved and serve. Mayor Amabile stated that he approaches managing the City with a business mindset, particularly in terms of financial performance, while recognizing the differences related to government operations and employee protections. He noted the City’s positive financial standing, highlighting a current budget surplus compared to the previous year, and credited strong leadership and management. Based on this perspective, he suggested that council compensation could be evaluated in a similar manner and indicated a desire to provide direction to staff to return with further information for consideration. Mayor Amabile referenced the City of Chowchilla’s recent increase in Council compensation to approximately $900, noting that while the Mayor received the increase immediately, Council Members will not receive the adjustment until after the next election. Mayor Amabile also discussed including consideration of factors such as CPI and inflation as part of evaluating potential changes. City Manager Than referenced data from the U.S. Bureau of Labor Statistics, noting that when adjusting the 1989 council compensation of $300 for inflation using the Consumer Price Index, the equivalent value in January 2026 would be approximately $805.74. Mayor Amabile requested consensus from the Council to direct staff to return with a proposed ordinance revision, including a compensation model and a specific dollar amount to be determined by the Council. CITY DEPARTMENT REPORTS. Community & Economic Development. Director Souza Elms reported that there are no public hearings and stated that the Planning Commission meeting scheduled for March 11 is canceled, as four of the five commissioners will be attending a League of California Cities academy in Anaheim, resulting in a lack of quorum. Finance. Director Moreno stated that she attended the CSMFO conference last week, which had approximately 2,000 attendees, including 500 first-time participants, and described it as a very valuable conference. She reported that the market rate study for City facilities will be released to the public next week, with the goal of bringing it to Council on April 15. She also noted that staff will be working on preparing the next year’s budget. Fire. Chief Tualla reported that on February 26, AMR held a meet-and-greet in the community. He noted that he stays in close contact with AMR and the EMS agency, and that ambulance compliance has significantly improved. He added that it is currently weed abatement season and the department is working on implementing a county-used mobile application to streamline weed abatement tracking. Chief Tualla also reported that earlier this week the department responded to an ammonia leak at Kagome. He noted that there are several areas to address and that a post-incident analysis will be conducted. He emphasized that without adequate personnel, entry into hazardous situations cannot be made, but mutual aid resources were successfully obtained. Notifications are being improved, and the department recognizes that much will come out of this. He described the incident as very high risk. Mayor Amabile noted the importance of consistent messaging between the schools and the City and referenced changes to the reverse 911 system. He acknowledged that the incident was unfortunate, emphasized that improvements are always possible, and expressed that the City looks forward to working with the school district to enhance future emergency response and communications. Human Resources. Interim Director Carlos reported on recruitment efforts and stated that the HR team will be participating in Portfolio Day at Los Banos High School. She also noted that the department coordinated the Read Across America event and expressed that the City is happy to contribute to local schools and support educational initiatives. Parks & Recreation. Director Heim provided updates on Parks and Recreation activities, highlighting the upcoming Arbor Day Celebration at Citrus 2 Park, the popular Easter Egg Hunt on March 28 at Olivera Park, and ongoing registration for T-ball, noting that spots fill up quickly and encouraging community participation in all events. Police. Chief Reyna reported that the SNIP bus was brought to Los Banos for community spay/neuter events. He noted that four trainees are scheduled to graduate on March 27. A conditional offer has been extended to a Maintenance I employee, and one CSO and one dispatcher are currently in background checks. He congratulated Officers Zachary Zuspan and David Peralta, who have completed their field training and are now on solo patrol. Chief Reyna also spoke regarding the ammonia incident, noting that all hands were on deck and that such situations are always evolving. He emphasized that the department prides itself on working with the public to ensure safety. He added that the Police and Fire Departments have already discussed the incident and are scheduling additional conversations to improve future responses. Mayor Amabile noted that emergencies involving hazardous materials require extra steps, which can delay response efforts. Public Works. Director Via had no report. CITY ATTORNEY REPORT. City Attorney Lerner reported that she attended the PARMA conference last week, which featured a number of great speakers, including Captain Richard Phillips, who spoke on the importance of leadership and putting the community first. She noted that next week she will be attending a League of California Cities conference with staff. CITY MANAGER REPORT. City Manager Than thanked staff for their efforts during the Monday event and noted that he was on scene for the entire incident. He acknowledged that emergencies like this occur unexpectedly and emphasized the importance of having a level of certainty in decision-making, balancing timely action with minimizing panic, with the safety of the community being the top priority. He reported that the RFQ for Fire Station 4 and the Emergency Operations Center has been released, a $13 million project to improve public safety resources. He also highlighted the ongoing challenges with the City’s road conditions and outlined plans for community outreach, including sharing the City’s four-year paving plan, and engagement efforts to keep residents informed and involved in City projects and initiatives. CITY COUNCIL MEMBER REPORTS: MARCUS CHAVEZ – DISTRICT 3: Noted that last year the City was working on road widening to ensure adequate access for fire and police. He asked City Manager Than about backflow valves and why some work is performed by out-of-town contractors instead of keeping it local. Mr. Than explained the backflow preventer process, and Council Member Chavez thanked staff. DEBORAH LEWIS – DISTRICT 4: Reported that at the last Air Board meeting, they accepted an appropriation from the Department of Finance to fund projects to mitigate excess emissions. She attended the MCAG meeting on behalf of the Mayor and noted that the Measure V project implementation plan was delayed due to a lack of quorum related to an issue with Livingston; going forward, westside and eastside issues will be handled separately. She provided a 2025 Air Board calendar to council, noting that no Los Banos students have ever won the student art contest and has made it her mission to get the information out to schools. She also discovered that the City itself can promote participation. She thanked Director Moreno for fixing the check register. MITZY PEREZ – DISTRICT 1: Had no formal report but expressed excitement for Arbor Day and appreciation for being invited to announce the winner. She also briefly discussed the current vacancy, encouraging word-of-mouth outreach to help fill it and thanked staff for their efforts. DISTRICT 2: Vacant MICHAEL S. AMABILE – MAYOR: Reported that the CARE program provides a credit on residents’ electric bills. He attended a 2x3 meeting with LBUSD last week to discuss future school sites and proactive planning. He also attended the Boys & Girls Club open house, noting the district will offer transportation to College Greens Park and emphasized the need for a permanent site. He mentioned that the Club needs two representatives from Los Banos. Mayor Amabile highlighted the Los Banos Museum events, speakers, and the theme “Center of the Universe.” He met with Anna Boyenga, a candidate for County Superintendent, and has a meeting scheduled with PG&E tomorrow. He encouraged attendance at the Arbor Day breakfast and discussed plans for the future Milliken Museum site. CLOSED SESSION – PUBLIC EMPLOYEE PERFORMATIVE EVALUATION, TITLE: CITY MANAGER, PURSUANT TO GOVERNMENT CODE SECTION 54957(B). Mayor Amabile stated that there was no report. ADJOURNMENT. The meeting was adjourned at 11:07 p.m. APPROVED: __/s/ Michael S. Amabile________ Michael S. Amabile, Mayor ATTEST: __/s/ Lucille L. Mallonee___________ Lucille L. Mallonee, City Clerk