City Council Meeting & Los Banos Successor Agency Meeting

CITY OF LOS BANOS CITY COUNCIL MEETING AND LOS BANOS SUCCESS AGENCY MEETING MINUTES JANUARY 21, 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 6:02 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, Deborah Lewis – District 4, Mayor Michael Amabile, District 2 – vacant (Council Member Sanders resigned); ABSENT: Marcus Chavez – District 3 STAFF MEMBERS PRESENT: City Manager Than, City Attorney Lerner, City Clerk Mallonee, City Treasurer Lawrence, Community & Economic Development Director Souza Elms, Police Chief Reyna, City Engineer Cozad, Fire Chief Tualla, Finance Director Moreno CONSIDERATION OF APPROVAL OF AGENDA: Motion by Lewes, seconded by Perez to approve the agenda as submitted. The motion carried by the affirmative action of all Council Members present, Chavez absent. PRESENTATIONS. CERTIFICATE OF RECOGNITION – EMPLOYEE OF THE MONTH FOR DECEMBER 2025 – AARON GOINS, POLICE OFFICER, POLICE DEPARTMENT. Mayor Amabile presented the certificate to Aaron Goins who was in attendance to accept. PROCLAMATION RECOGNIZING REVEREND DR. MARTIN LUTHER KING, JUR. DAY. Mayor Amabile presented proclamation. Pastor STEPHEN HAMMOND from Bethel Community Church was present to accept. PROCLAMATION RECOGNIZING THE RETIREMENT OF HUMAN RESOURCES DIRECTOR LUCY MALLONEE. Mayor Amabile presented the proclamation to Lucy Mallonee, who was in attendance to accept. CITY COUNCIL RESOLUTION NO. 7037 – COMMENDATION TO EVAN SANDERS. Motion by Lewis, seconded by Perez to adopt City Council Resolution No. 7037 – Commendation to Evan Sanders. The motion carried by the affirmative action of all Council Members present, Chavez absent. NEW EMPLOYEE INTRODUCTIONS. City Manager Than presented the staff report, asking each department head to come forward and introduce their new employees: Police Chief Reyna introduced Officer Zach Zuspan, who joined the Police Department on December 16th, bringing with him valuable experience from the Fresno Police Department. Fire Chief Tualla introduced Greg Avery, the new Battalion Chief, with over 40 years of experience from the Los Angeles Fire Department, and Joshua Odahl, a new firefighter from North Central Fire in Fresno. Public Works Director (represented by City Engineer James Cozad) introduced several new employees: Christopher Bruzzone, a Utilities Maintenance Worker 1 with over 10 years of welding experience; Martin DeFranco, promoted to Utilities Maintenance Worker 1 from a custodian role; Juan Lopez, promoted to Environmental Control Specialist 1 after obtaining wastewater certifications; Gabriel Cervantes, now an Environmental Control Specialist Trainee after achieving water distribution and treatment certifications; Fernando Perez, a new maintenance worker in the Facilities Division; and Carlos Pena, a part-time maintenance worker in the Fleet Division. Additionally, Roem Sioson, Ruben Sedano, and Emiliano Barrios were introduced as new Utility Maintenance Workers. Parks and Recreation Director (represented by City Manager Than) introduced several new recreation staff members: Jesse Spangler, a maintenance worker and recent graduate of California State University, Bakersfield; Margarita Ortiz, a recreation assistant and long-time Los Banos community member; Michael Cosenza, a recreation assistant studying financial accounting at Merced College and former high school football coach; Karina Salvatier, a recreation assistant pursuing a business degree at Merced College and a recent Los Banos High School graduate; and Daniella Guilford, promoted to Recreation Coordinator, who has a passion for creating welcoming environments for residents. Community and Economic Development Director Souza Elms introduced Marizol Romero, the new Homeless Outreach Coordinator, who brings years of social work and community service experience to the city. Finance Director Moreno introduced Monica Heguy, an Accounting Clerk returning to the city after nearly 30 years, and Martha Brazil, returning to the Finance Department as an Accountant II after 23 years with the city. Lastly, City Attorney Lerner introduced Alex Torres as the new Legal Assistant. Alex has experience in both private and public sectors, including a prior role with the Merced County Human Services Agency. City Manager Than concluded by recognizing the late Lucy Mallonee, former HR Director, for her contributions to processing these new hires, and expressed appreciation for the support of the families of the new employees. A brief recess was taken for family photos before the meeting resumed. 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. LARRY BYERS spoke about several topics, starting with his request for renewal on the Tree Commission. He also expressed concerns regarding the new Sutter Health facility, hoping it will include a trauma center, as current accident victims are taken to Modesto due to the lack of local facilities. He also voiced concerns about traffic, particularly with the Complete Streets Project, suggesting the City plan for six lanes on Pioneer Road instead of the current plan for four, due to anticipated growth. He discussed his recent experience with Mid Valley Disposal, highlighting their service in picking up old electronics like TVs and VCRs, and then mentioned his efforts to clean out his garage crawl space. He proposed a curbside trash collection day, advocating for a day where larger items could be left at the curb for pickup, especially for residents without trucks. CARLOS FLORES raised concerns about a perceived disconnect between the City Council and the community. He expressed frustration with the slow pace of progress on issues like homelessness and noted that, after reading emails regarding the homeless situation, it seemed that the Council was dragging its feet. He also shared his dissatisfaction with public records requests that had gone unanswered, particularly about the homeless encampment, where he observed inadequate conditions such as a lack of coverage and moisture protection. He urged the Council to act more swiftly and plan for the City’s growth, including more stores and infrastructure. He vowed to continue advocating for the community and pushing for changes. BLANCHE JORGE spoke about her work with the feral cat population and how she had recently acquired a dog trap to help rescue lost dogs, stressing the importance of acting quickly before they enter survival mode. She explained that local shelters and rescues are at capacity and mentioned new California laws that could help address puppy mills and breeding for profit. She asked the Council to review these laws to improve animal welfare efforts. Additionally, she suggested that the City provide an option for residents to donate to the shelter online, which could help support their operations. Finally, an UNNAMED SPEAKER shared a personal story about his mother, who is at an age where she needs to downsize but found limited options in Los Banos. After considering a senior center, she ultimately decided to move to a condo in Modesto, near critical care facilities and hospitals. The speaker urged the City Council to focus on increasing condominium and senior housing options to better meet the needs of aging residents who wish to downsize but stay within the City. Mayor Amabile acknowledged the good points raised during the public forum, particularly regarding the City's housing needs. He recognized that the City is far from meeting the housing expectations and needs of its citizens but assured that efforts are underway to address these concerns. He mentioned ongoing discussions about smaller homes, including two-bedroom options, as opposed to larger homes like those with five or six bedrooms, which he considered excessive. He emphasized that while progress is being made, these changes take time to implement. He thanked everyone who spoke during the public forum and reminded them that they are always welcome to participate in future forums. No one else came forward to speak and the public forum was closed. CONSIDERATION OF APPROVAL OF CONSENT AGENDA. Mayor Amabile addressed Item 8C, City Council Resolution No. 7038, regarding the Delegate Substitution for the 2026 Merced County Association of Governments (MCAG) One Voice Program. He explained that the One Voice program, which involves City representatives meeting with federal officials to advocate for funding, has historically been beneficial. However, given the current political climate, especially the reluctance to allocate funds to California, he did not believe it was the right time to invest in the program this year. He stated that while the program has had success in the past, the return on investment this year was uncertain. As a result, he proposed pausing the One Voice program for 2026 and requested the removal of Item 8C from the agenda for consideration of adoption. Council Member Lewis then requested to pull Item 8F for discussion. She inquired whether the City specifies contractor qualifications when sending out bids. City Manager Than confirmed that the bid process typically includes specific qualifications, such as experience with similar projects. However, he clarified that a discrepancy had occurred in this particular bid, where the required drilling depths listed on the front page and the back page of the document were inconsistent. This led to some confusion, particularly with bidders who did not meet the higher depth requirement. He recommended revising the bid documents and re-releasing the bid to ensure fair participation from qualified contractors. Following the discussion, Mayor Amabile reiterated the request to remove Item 8C from the consent agenda for consideration of adoption, and Item 8F was noted for further discussion. Motion by Lewis, seconded by Perez to approve the consent agenda items as follows, with the removal of item 8C – City Council Resolution No. 7038 – Delegate Substitution for the 2026 Merced County Association of Governments (MCAG) One Voice Program: Check Register for #255329 – #255789 in the Amount of $3,602,235.72; City Council Meeting Minutes for December 17, 2025; City Council Resolution No. 7038 – Delegate Substitution for the 2026 Merced County Association of Governments (MCAG) One Voice Program; City Council Resolution No. 7039 – Accepting the Transportation Development Act (TDA) Funds Financial Statement for the Years Ended June 30, 2022 and 2021; City Council Resolution No. 7040 – Authorizing the Release of Unclaimed Checks Pursuant to California Government Code Section 50055 to the City of Los Banos; City Council Resolution No. 7041 – Rejecting the Bids for the Construction of Well No. 16 Test Well No. 2; Consideration of Approval of the Los Banos Successor Agency Minutes. The motion carried by the affirmative action of all Council Members present, Chavez absent. APPOINTMENT OF MEMBERS TO THE FOLLOWING COMMISSIONS: AIRPORT ADVISORY COMMISSION, TWO (2) TWO (2) YEAR TERMS – EXPIRING DECEMBER 31, 2027; PARKS & RECREATION COMMISSION, TWO (2) TWO (2) YEAR TERMS – EXPIRING DECEMBER 31, 2027; TREE COMMISSION, THREE (3) TWO (2) YEAR TERMS – EXPIRING DECEMBER 31, 2027. Motion by Amabile, seconded by Perez to appoint Dennis Reed to the Airport Advisory Commission to a Two (2) Year Term – Expiring December 31, 2027. The motion carried by the affirmative action of all Council Members present, Chavez absent. Motion by Amabile, seconded by Lewis, to appoint Wes Wise and Jeri Blevins to the Parks & Recreation Commission to a Two (2) Year Terms – Expiring December 31, 2027. The motion carried by the affirmative action of all Council Members present, Chavez absent. Motion by Amabile, seconded by Lewis, to appoint Jeanette Guzman-Lopez, Javier Ramirez Delgadillo to the Tree Commission to a Two (2) Year Terms – Expiring December 31, 2027. The motion carried by the affirmative action of all Council Members present, Chavez absent. CONSIDERATION OF ADOPTION OF CITY COUNCIL RESOLUTION NO. 7042 – ACCEPTING THE 2024-2025 FISCAL YEAR AUDIT REPORTS CONSISTING OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, AND THE GOVERNMENT AUDITING STANDARDS REPORT. Finance Director Moreno presented the staff report and provided a comprehensive overview of the City’s financial condition for the fiscal year ended June 30, 2025. She explained that the ACFR provides a complete picture of the City’s financial health, long-term fiscal stability, and compliance with applicable accounting standards. She reported that the City’s overall net position totaled $351 million, reflecting an increase from the prior fiscal year, with positive growth in both governmental and business-type activities. She noted increases in assets driven by ongoing infrastructure and equipment investments, healthy fund balances, and reserve levels exceeding adopted fiscal policy thresholds, including the City’s 30% fiscal stability reserve. She further reported that the City’s combined ending fund balance increased from the prior year, revenues exceeded budgeted amounts, and expenditures were below the amended budget. She highlighted continued benefits from property tax growth, development activity, and strong investment earnings, as well as accelerating capital investments in public safety, facilities, and infrastructure. Ms. Moreno stated that the City’s cash and investment portfolio remained in compliance with California Government Code requirements and that the City continues to maintain a strong overall financial position. Ms. Moreno then introduced the City’s independent auditors, CliftonLarsonAllen LLP. Joseph Judson, CPA, presented an overview of the audit scope, methodology, and results, including a discussion of management and auditor responsibilities. Mr. Judson reported that the auditors issued an unmodified (clean) opinion on the City’s financial statements and Government Auditing Standards report, with no audit findings, material misstatements, or instances of fraud or noncompliance identified. He also noted that a single audit was not required for the fiscal year and discussed upcoming Governmental Accounting Standards Board (GASB) pronouncements that may affect future financial reporting. Ms. Moreno thanked the auditors and Finance Department staff for their collaborative efforts and timely completion of the audit. Mayor Amabile emphasized the importance of maintaining a 30% reserve, stating that it supports the City’s long-term fiscal stability and is reassuring to the City Council and residents. Motion by Lewis, seconded by Perez to adopt City Council Resolution No. 7042 – Accepting the 2024-2025 Fiscal Year Audit Reports Consisting of the Annual Comprehensive Financial Report, and the Government Auditing Standards Report. The motion carried by the affirmative action of all Council Members present, Chavez absent. CONSIDERATION OF APPROVAL OF LOS BANOS SUCCESSOR AGENCY RESOLUTION NO. 2026-1 – APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) AND ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2026-27. Financial Director Moreno presented the staff report. Mayor Amabile explained how the Los Banos Successor Agency all came about and the history behind the action being considered tonight. Motion by Lewis, seconded by Perez to adopt Los Banos Successor Agency Resolution No. 2026-1 – Approving a Recognized Obligation Payment Schedule (ROPS) for Fiscal Year 2026-27. The motion carried by the affirmative action of all Agency Members present, Chavez absent. CITY DEPARTMENT REPORTS. Community & Economic Development. Director Souza Elms updated the Council and the public on several items. She announced that the annual Point-in-Time Count of the unhoused community will take place the following day at 6:00 a.m., as required by HUD and the Merced City and County Continuum of Care. She explained that the count is conducted nationwide on the same day and time and provides a census of unhoused individuals within the community. Director Sousa-Elms also announced an upcoming public hearing for the Overland Trail project, a vesting tentative tract map for 50 residential units, which will be presented to the Planning Commission on January 28. Finally, she shared that Wonderland Kids Indoor Playground recently received its business license and will hold its grand opening on January 27 at 12:00 p.m., inviting both the public and Councilmembers to attend. Finance. Director Moreno provided an update on the PBID, noting that the management letter and professional services agreement have been executed, allowing the audit to proceed. She reported that the City’s specialized audit is nearing completion and that results are expected to be presented at the February 18 Council meeting. Director Moreno reminded the public that water service shutoffs will soon begin and highlighted the various assistance options available to residents for paying their balances. She explained that the Finance Department will coordinate calls and notifications in conjunction with the Public Works Department and thanked her staff for their efforts, particularly in achieving a clean audit. Mayor Amabile inquired whether door hangers would also be used to notify residents prior to shutoffs, noting that this method is often the most effective way to communicate the information. Fire. Fire Chief Tualla provided an update on Emergency Medical Services, noting that services are now being provided by American Medical Response (AMR). He reported that the City has already seen improvements in the timeliness and reliability of EMS responses. He also highlighted that AMR has been communicating effectively with the Fire Department, keeping staff informed and coordinated, and expressed satisfaction with the level of service being provided to the community. Human Resources. No report Parks & Recreation. No report Police. Chief Reyna provided an update on department staffing and operations. He reported that 7 police officer trainees are currently attending the Fresno Police Academy. The department currently has 2 officer vacancies, 1 dispatcher vacancy, and several Community Service Officer (CSO) vacancies. He reminded the public that, while foggy conditions are improving, drivers should continue using headlights for safety. Chief Reyna also congratulated Detective Aaron Goins for being named December Employee of the Month. Public Works. City Engineer Cozad provided an update on the City’s standard specifications update. He reported that Marc Thomas has agreed to the terms, pending finalization of updated escalation rates and clarification of the project scope. He indicated that an addendum addressing these items will be brought to the Council for consideration at a future meeting, tentatively scheduled for March 4. CITY ATTORNEY REPORT. City Attorney Lerner reported that she is preparing a legislative update for the City Council to review new laws and regulations for 2026. She also stated that she will conduct a Brown Act training for the Planning Commission during their next regularly scheduled meeting and plans to provide a similar training for the City Council at a future meeting to ensure continued compliance with open meeting requirements. CITY MANAGER REPORT. City Manager Than provided updates on upcoming community events, staffing, and transportation funding. He announced a community blood drive, Arbor Day in March, and the annual Egg Hunt in April, noting that these events are posted in the City’s newsletter, on social media, and at the Community Center. Regarding Human Resources, he reported that the City is actively recruiting for the HR Director position, with interviews scheduled to begin within a week. In the meantime, the position will be backfilled with an interim HR Director starting next week, with a formal introduction to the Council planned for a future meeting. He also provided an update on Measure V funding. He explained that, through the efforts of City staff and Mayor Pro Tem, Los Banos is expected to receive additional funding for local transportation and infrastructure projects. If approved by the Measure V governing board in February, the City is slated to receive approximately $12 million, which will support projects including the Pioneer Road widening, the Highway 165 and Vineyard’s roundabout, and other key intersection improvements. He emphasized the importance of these funds for advancing City infrastructure priorities. CITY COUNCIL MEMBER REPORTS: DEBORAH LEWIS – DISTRICT 4: Provided updates on regional programs, community events, and City services. She reported on funding opportunities through the San Joaquin Valley Air Pollution Control District (SJVAPCD), noting that funding for zero-emission landscape equipment was available as of December 2025, and that at the January 15 meeting, a CARB allotment was made for zero-emission or hybrid vehicles. She reminded residents that grant funds are limited and apply quickly. She congratulated Evan Sanders on his service to the City and wished him well in his future endeavors. She reflected on the Martin Luther King Jr. Day events, noting services on Sunday and Monday, and encouraged participation next year. She thanked attendees and the Mayor for the proclamation, congratulated Lucy on her retirement and expressed appreciation for seeing new employees introduced at the Council meeting, thanking the City Manager for facilitating this. She reported attending the December 10 MCAG meeting on behalf of the Mayor and congratulated Director Moreno and her staff for the clean audit report, praising their work and leadership. She also reminded residents that curbside trash pickup is available by appointment and noted the upcoming Kid Land grand opening. She expressed satisfaction that both special audits are progressing. Additionally, she noted that the APCD is offering a pilot incentive program for special events, including laser shows in lieu of fireworks, with available funding for departments interested in hosting such events. MITZY PEREZ – DISTRICT 1: Wished everyone a Happy New Year and expressed enthusiasm for the year ahead. She welcomed new City Engineer James Cozad and all new City employees, and congratulated Lucy on her retirement. She outlined her goals for 2026, including collaborating with the school district, City representatives, landowners, and developers to support the construction of new schools, and developing additional soccer fields to provide youth with opportunities for physical activity, teamwork, and leadership. She emphasized her honor in representing both District One and the City as a whole, and encouraged residents to reach out to her via email, phone, or text with any questions, comments, or concerns. DISTRICT 2: Vacant MARCUS CHAVEZ – DISTRICT 3: Absent MICHAEL S. AMABILE – MAYOR: Reported on the MCAG meeting held last week, highlighting updates to The Bus system. He noted concerns with outdated software that previously required buses to be physically accessed to download audio and video, and explained that the system is being updated to a cloud-based platform for easier administration. He also mentioned the amended MOU with Caltrans and ongoing efforts to secure additional funding for electrification of the bus fleet. While the OneVoice Program remains on pause, he expressed encouragement that Amtrak has resumed pick- up and drop-off service in Los Banos, with connections to Merced and beyond, offering new commuter options. He reminded the Council that District 2 is currently vacant and that the position will be on the November ballot, with decisions regarding the seat to be made in public. He also addressed community requests for more soccer fields with lighting, explaining that government processes are intentionally slow to ensure transparency and proper public input. He noted that staff is actively working on these and other projects, thanked City staff for their hard work, and emphasized the City’s commitment to maintaining progress and keeping Los Banos moving forward. Council Member Lewis additionally reported that the San Joaquin Valley Air Pollution Control District is offering a fireworks pilot incentive program again this year, encouraging the use of laser shows instead of fireworks. This is the third year of the program, with Merced County allocated $23,840 in funding. The program can be used for the 4th of July or any special event, and departments such as Police or Parks and Recreation are encouraged to apply. Mayor Amabile noted that this initiative may reflect a trend toward requiring alternative displays in the future. CLOSED SESSION – CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION, SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (D) OF SECTION 54956.9 OF THE GOVERNMENT CODE: (ONE CASE). Mayor Amabile stated that there was no report. ADJOURNMENT. The meeting was adjourned at 8:24 p.m. APPROVED: __/s/ Michael S. Amabile________ Michael S. Amabile, Mayor ATTEST: __/s/ Lucille L. Mallonee___________ Lucille L. Mallonee, City Clerk