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Yuba City Council approves policing grant, water contract and housing disbursement plan
Summary
At its Nov. 18 meeting the council accepted a $30,000 ABC policing grant, awarded a $5.3 million ASR well construction contract, and authorized a supplemental disbursement agreement to implement Homekey funds for the 79-unit Merriment Village; the council also approved routine staffing and budget items.
The Yuba City Council on Nov. 18 approved a package of measures including a police grant, a major water-infrastructure contract and the formal disbursement plan for a 79-unit affordable housing project.
The council unanimously authorized the Yuba City Police Department to accept a $30,000 Alcoholic Beverage Control (ABC) Alcohol Policing Partnership grant for 2025–26 to fund decoy and shoulder-tap operations aimed at preventing illegal sales to minors and reducing alcohol-related driving risks.
Council members awarded construction of Phase 2 of the city’s Aquifer Storage and Recovery (ASR) project to W.M. Lyles Company of Rockland, California, in a $5,304,500 base bid after staff deemed the apparent low bidder nonresponsive because the prime contractor proposed less than the required 50% self-performance. The award included a 10% construction contingency and contracts for construction management and labor-compliance services; staff identified an approximate $1.9 million funding shortfall to be covered by transfers from several water capital accounts.
On housing, the council authorized the mayor to sign a supplemental loan/disbursement agreement between the city and Habitat for Humanity Yuba-Sutter implementing a previously recorded covenant for Merriment Village. The agreement fixes disbursement controls (including a requirement that accumulated interest be used first), insurance and reporting requirements, and a third-party disbursement control agent paid by Habitat. City staff said the Homekey grant award for Merriment Phase 1 totaled $24.6 million with $22.6 million for construction.
Other council actions included approving consent calendar items 6–15 in one motion; authorizing the interim human resources director to recruit and fill a permanent wastewater collections maintenance worker I/II position after a retirement; and approving reestablished development services classifications to support economic development work. The council adopted the 2026 regular meeting calendar and received a first-quarter budget recap.
The council’s formal motions were recorded on the record and approved by voice vote, with the mayor announcing each motion carried.
What’s next: staff will execute the ASR construction contract and return to the council or finance director for required supplemental appropriations to cover the identified funding shortfall; Habitat must provide an approved Exhibit C construction budget before disbursements for Merriment Phase 1.
