MINUTES OF
REGULAR MEETING
June 2, 2026
CALL TO ORDER - PLEDGE OF ALLEGIANCE
Mayor Nagy called the meeting to order at 6:30 P.M. and conducted the pledge of allegiance.
ROLL CALL
Council Members: Melville – Giles – Marsigli – Mayor Pro Tem Ford – Mayor Nagy Staff present: City Manager Melanie Correa, Finance Director Jennifer Morrison, Economic & Community Development Director Jami Westervelt, Police Chief Ruben Chavez, Fire Chief Rich Martin, City Attorney Olivia Clark (virtual), Recreation Manager Tiffany Vitorino, City Engineer Mario Gouveia, HR Manager/Deputy Clerk Desirae Porras and Public Works Director Alberto Villa-Leyva
APPROVAL OF AGENDA
Council member Melville made a motion to approve the agenda.
The motion was seconded by Council member Giles and carried 5-0.
DECLARATIONS OF CONFLICT OF INTEREST
There were no declarations of conflict of interest.
PRESENTATIONS
PUBLIC COMMENT
James Moore, Merced County Regional Waste Authority, advised the County is seeking applicants for the Integrated Waste Management Local Task Force.
CONSENT CALENDAR
1. Minutes of the May 19, 2026 Special Meeting
Recommendation: Review and approve
2. Minutes of the May 19, 2026 Regular Meeting
Recommendation: Review and approve
3. Warrants
Recommendation: Review and ratify
4. Approve Resolution Accepting Completion of Fire Department Roof Project, Authorizing the City Clerk to File a Notice of Completion, and Authorizing City Manager to Make Final Payment of Retention Monies
Recommendation: Review and approve resolution
5. Approve Resolution Authorizing City Manager to Enter into Agreement for Extension with Merced County for Animal Services
Recommendation: Review and approve resolution
6. Approve Resolution Accepting Completion of Henry Miller Park Playground Install Project, Authorizing the City Clerk to File a Notice of Completion, and Authorizing City Manager to Make Final Payment of Retention Monies
Recommendation: Review and approve resolution
7. Approve Resolution Directing the Review of the City of Gustine’s Conflict of Interest Code
Recommendation: Review and approve resolution
8. Approve Request from Gustine Pentecost Society for Use of City Streets, and Services for Annual Celebration Event
Recommendation: Review and approve request
9. Approve Resolution Authorizing Regional Surface Transportation Program Claim Recommendation: Review and approve resolution
10. Approve Resolution Calling for Election and Consolidating City’s Municipal Election with General Election and Authoring Merced County Elections Department to Conduct the Election and Canvass Returns
Recommendation: Review and approve resolution
11. Approve Resolution Adopting the 2026 Water Master Plan Recommendation: Review and approve resolution
Mayor Nagy introduced the consent calendar.
There was no public comment.
Mayor Pro Tem Ford inquired whether SGMA has authority over the City’s Water Master Plan, to which City Engineer Gouveia answered no.
Mayor Pro Tem Ford inquired whether the City can tap into Saputo’s well and water storage, to which City Engineer Gouveia advised it is not City property so the Water Master Plan does not account that.
Mayor Pro Tem Ford made a motion to approve the consent calendar.
The motion was seconded by Council member Marsigli and carried 5-0.
ADMINISTRATIVE AGENDA
12. WORKSHOP: Fiscal Year 2026-2027 Budget
1. Receive Staff Report and Presentation
2. Receive Public Comment
3. Conduct Workshop
Finance Director Morrison presented the staff report and presentation.
Mayor Pro Tem Ford inquired whether all insurances are through the CSJVRMA, to which City Manager Correa affirmed.
Mayor Pro Tem Ford inquired whether the insurance increase is due to past claims, to which City Manager Correa affirmed.
Council member Marsigli inquired on the operating account amount difference, to which Finance Director advised of the City website upgrades included in the draft budget.
There was no public comment.
City Manager Correa further advised staff is reviewing all contract services and vendors to ensure City funds are being used efficiently while also identifying opportunities to increase revenue.
Council member Marsigli inquired how the general fund is currently in a deficit when last year’s budget overview was optimistic, to which City Manager Correa advised of rise in costs due to the economy and further advised of past claims coming to fruition, teamed with the state of the economy and slow in consumer spending and the related slow of sales tax revenue.
City Manager Correa further advised most of the CIP project amounts are refundable grants and stated other amounts related to the amount would come out of the fund balance for each project.
Mayor Pro Tem Ford inquired the annual revenue on the UUT, to which Finance Director Morrison advised it is estimated at $340K for this year.
Mayor Pro Tem Ford inquired whether this is a consistent amount or does it vary, to which Finance Director Morrison advised of past receipts.
Mayor Nagy inquired on the expected pool revenue, to which Finance Director Morrison advised it is $36,200.
Council member Marsigli inquired on the Recreation deficit amount of $208K, to which Finance Director Morrison advised of the expenses.
Council member Giles expressed concern with the unforeseen events that could take please and increase the deficit, to which City Manager Correa advised of staff’s plan to endeavor towards more preventative maintenance to reduce contracted repairs and unnecessary spending.
Council member Marsigli inquired how much operating funds in recreation is necessary, to which City Manager Correa advised the proposed budget will keep the same level of services for pool, recreation and Goman without cutting staffing nor contract services.
Council member Marsigli advised the City needs to look into cutting services that are not necessary.
Council member Melville inquired whether increase of pool fees has been a topic, to which City Manager Correa advised Recreation Manager Vitorino has increased fees for non-regulatory fees.
Council member Marsigli recommended shutting down community events such as Trunk or Treat due to the City’s financial situation.
City Manager Correa recommended Council look to review future requests and waivers for City services.
Council member Marsigli commented on making event waivers available to only City organizations.
Mayor Pro Tem Ford inquired whether there are outside City organizations receiving waivers, to which Recreation Manager Vitorino answered no and advised it is currently only available to City Service Clubs as defined in the city’s fee schedule.
Mayor Pro Tem Ford suggested the City look into adjusting fees for City Service Clubs.
Council member Marsigli inquired how much of the Goman deficit is salaries, to which Finance Director Morrison advised the amount is $36,313.
Council member Giles inquired whether staff has a total amount or rental fees that have been waived, to which City Manager Correa advised staff can gather this information for Council.
Council member Marsigli reiterated frustration regarding the City’s current deficit, noting that in the prior year Council had been advised the City was financially stable and able to support additional salaries and positions, to which Finance Director Morrison advised the City was using fund balances, which are continuing to decline and need to be replenished.
Council member Marsigli inquired whether the budget has to be approved by June 30, to which City Manager Correa denied and advised of the process Council would need to take for a budget continuation.
Mayor Pro Tem Ford inquired on the salaries for a Facilities Maintenance position, to which City Manager Correa provided the accounts a Facilities Maintenance position is paid out of.
Mayor Nagy inquired the breakdown of the $208K, to which City Manager Correa advised it includes, salaries, trainings for employee, and improvements to city landscaping and baseball fields.
Finance Director Morrison further advised of other contract services that are included.
Mayor Pro Tem Ford inquired the amount of time staff needs to provide a breakdown to Council, to which City Manager Correa advised it is at the Council’s discretion.
Mayor Nagy inquired whether the City would have to do a rate study to change the Goman fees, to which City Manager Correa affirmed.
There was further discussion regarding continuation of budget.
Council directed staff to continue Budget Workshop on July 21st.
13. PUBLIC HEARING: Consider a Resolution Confirming Diagrams and Levying Assessments for Fiscal Year 2026-2027 for the Citywide, Southport, and Borrelli Landscape and Lighting Districts Pursuant to the Landscape and Lighting Act of 1972
1. Receive staff report
2. Open the Public Hearing
3. Receive Public Comment
4. Close the Public Hearing
5. Consider a motion to approve the resolution
City Manager Correa presented the staff report.
Mayor Nagy opened the public hearing at 7:39P.M.
Craig Christenson, 657 West Avenue, inquired whether the Borrelli Ranch homes will now be obligated to pay their portion, to which Mayor Nagy denied and advised those homes would need to vote themselves into the district.
Mr. Christenson expressed frustration with the loss of revenue in the Borrelli District.
The public hearing was closed at 7:40P.M.
Council member Marsigli made a motion to approve resolution Confirming Diagrams and Levying Assessments for Fiscal Year 2026-2027 for the Citywide, Southport, and Borrelli Landscape and Lighting Districts Pursuant to the Landscape and Lighting Act of 1972.
The motion was seconded by Council member Melville and carried 5-0.
14. Consider Introduction and Waiver of First Reading of an Ordinance Adding Division 3 and Section 7-7-241 to Title 7 of the Municipal Code Related to the Sale of Nitrous Oxide within the City
1. Receive staff report
2. Receive Public Comment
3. Consider a motion to introduce and waive the first reading of an ordinance adding Division 3 and Section 7-7-241 to Title 7 of the Municipal Code related to the sale of nitrous oxide within the city
City Attorney Clark presented the staff report.
Mayor Nagy inquired if it is legal to run nitrous oxide in your vehicle to boost your horsepower, to which Police Chief Chavez advised it is illegal.
Mayor Nagy questioned the verbiage on page 236, to which City Attorney Clark advised state law does cap fines for a misdemeanor at $1,000 but there are caveats that do not apply. She further advised of the City options on how to penalize.
Mayor Nagy inquired whether, if classified as an administrative fee, the full amount of the fee would go to the City, to which City Attorney Clark affirmed.
Mayor Nagy inquired on the twelve-month component, to which City Attorney Clark advised of the state law requirements and further advised the City is mirroring those in order to protect the City from any challenges.
Council member Marsigli inquired whether spray paint is considered an inhalant, to which Police Chief Chavez affirmed.
Council member Marsigli inquired whether the ordinance will affect the sale of spray paint, to which Police Chief answered no and advised it would be in effect if the inhalant is being used to get high- and would require additional ordinance language to be enforceable as an administrative fee.
City Attorney Clark advised of the definitions included in the ordinance.
Council member Marsigli inquired on the 6th Whereas, regarding a guilty verdict, to which City Attorney Clark advised it is in Penal Code and stated the Whereas does not have the actual enforcement as the Ordinance itself.
There was no public comment.
Police Chief Chavez thanked City Attorney Clark for her work on the ordinance. He further advised this will be a future law in the state and stated with the City acting now they are able to retain more of the fine than the state will.
Council member Melville made a motion to introduce and waive the first reading of an ordinance adding Division 3 and Section 7-7-241 to Title 7 of the Municipal Code related to the sale of nitrous oxide within the city.
The motion was seconded by Council member Giles and carried 5-0.
CITY DEPARTMENT REPORTS
City Engineer Gouveia advised the Sewer Manhole Rehabilitations project has begun.
Police Chief Chavez thanked the volunteers for their work at the Pickleball for a Cause event. He informed Council Newman’s Police Chief, Randy Richardson, retired and Ashley Williams is in Acting Duty. He reported on a recent incident that lead to the confiscation of gun. He advised the CSO is busy with weed abatement, abandoned vehicles and homeless people. He advised of an upcoming academy that the Explorer’s will be attending.
Fire Chief Martin reminded and invited everyone to the annual pancake breakfast on July 12th. He warned the community of firework season and advised of concerns with illegal fireworks. He advised of the request for the Fire Department to carry the American flag down the parade route for 4th of July.
Public Works Director Villa-Leyva advised another aerator was connected at the Wastewater Treatment Plant, bringing pond #1 to 3 aerators in operation. He announced Maintenance Worker, Jon Bishop received his Class B CDL. He thanked Mayor and City Manager for their participation with Public Works Week recognition.
Recreation Manager Vitorino updated on the Pickleball for a Cause event. She updated on lifeguard orientation and advised they will be attending an intense training this Friday hosted by CPRS District 5. She informed Council the Color Run registration is still open and t-shirt deadline has been extended until Friday. She advised of pending legislature regarding AED availability for sports fields. She advised of tennis camp and stated funds will be given back to the City for tennis nets. She advised of upcoming registration for aquatic center programs.
Economic & Community Development Director Westervelt updated on the Feihe Brownfields project. She advised of her attendance at a Funding Fair and stated she is looking into possible funding opportunities. She updated on the business license software. She informed Council the Airport Fuel Bid took place and advised the bid will be reopening.
Mayor Nagy inquired whether businesses can still come into City Hall to renew their licenses, to which Economic & Community Development Director Westervelt affirmed and advised they will not be penalized if they wait to complete the process online.
Council member Marsigli inquired whether staff has looked into having a terminal at City Hall where business owners can come in and complete the renewal.
Finance Director Morrison advised of upcoming budget meetings with staff.
HR Manager/Deputy Clerk Porras advised of her attendance on the SB 827 virtual training and further advised if staff has not registered yet there is still an open registration for June 9th. She reminded Council of the City/County Relations Dinner on July 19th at Hilmar Cheese. She advised of the open recruitment for CSO. She informed Council the Public Surplus auction is now live and the City is seeing interest on the site.
CITY MANAGER REPORT
City Manager Correa advised of her attendance at the Pickleball for a Cause event and further advised of her attendance at the upcoming Miss Gustine Pageant next Friday. She informed Council she will work with Finance Director Morrison on the budget.
CITY ATTORNEY REPORT
City Attorney Clark advised she had nothing to report.
COUNCIL REPORTS
Council member Giles commented on the activity at the Henry Miller Park due to the new playground.
Council member Melville complimented the Pickleball event and commended the Police Volunteers and Explorer’s for their assistance at the event. He advised of lack of voters at the in-person voting location at Gustine Library. He complimented the new playground at Henry Miller Park.
Council member Marsigli commended Police Chief Chavez on Code Enforcement. She reiterated compliments on the park.
Mayor Pro Tem Ford commented on the lack of voters at the voting location. He expressed frustration with the constant change in voting locations.
Mayor Nagy welcomed Police Volunteer Janis Peters back. He advised of his attendance at the Memorial Day services at both cemeteries and complimented the services. He advised of his attendance at the Public Works gathering and recommended installing a ramp or steps at the Corp Yard. He advised of the Pickleball for a Cause event and commended the individuals who put it together. He thanked the Police Volunteers and Explorer’s for their assistance. He informed Council that Gustine Redskins Youth Football and Cheer had to terminate their season due to lack of registration. He thanked Finance Director Morrison for her work on the budget. He inquired whether free food is given out every Monday at Schmidt Park, to which Recreation Manager Vitorino advised it is twice monthly.
Mayor Nagy requested a moment of silence for the passing of VFW member, George Medeiros.
CLOSED SESSON PUBLIC COMMENT
There was no public comment.
CLOSED SESSION
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION- Title: City Manager.
2. CONFERENCE WITH LABOR NEGOTIATOR- Pursuant to Government Section 54957.6 Agency Negotiator: City Manager: Unrepresented Employee: Chief of Police
3. CONFERENCE WITH LABOR NEGOTIATOR- Pursuant to Government Section 54957.6 Agency Negotiator: City Manager: Unrepresented Employee: Finance Director After returning to open session, Mayor Nagy reported advised there was no reportable action.
ADJOURNMENT
Mayor Nagy adjourned the meeting at 9:36 P.M.