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Los Banos council approves street rehab contract, OKs grocery’s off-sale beer-and-wine permit and introduces ADU ordinance changes
Summary
At its May 20 meeting Los Banos City Council approved a $1.58 million street rehabilitation contract, granted a conditional use permit for Santa Fe Mercado to sell beer and wine off-site, and waived first reading of an updated ADU ordinance to align with state law; staff also reported a 4.9% vacancy rate under AB 2561.
The Los Banos City Council on May 20 approved several measures affecting local infrastructure, land use and the municipal code, and received the statutorily required annual report on vacancies and recruitment.
Street rehabilitation: Council approved Resolution No. 7089 to award the Fiscal Year 2026 Phase 1 street rehabilitation contract (including a 15% contingency) to Rolfe Construction Inc. in the amount shown on the consent item. Public Works Director William Vai summarized the pavement-condition-index (PCI) data that guided the project list, noting several streets in the Snow Goose area and West I Street had PCIs as low as 0–20 and that some sections require full-depth reconstruction. Vai told the council that, if the contract documents are finalized, construction could begin the second week of June with ADA corner work and seasonal completion targets in mid–late August, weather permitting.
Santa Fe Mercado conditional use permit: The council considered Conditional Use Permit 2026-02 and Resolution No. 7095 to allow Santa Fe Mercado Inc. to operate a second Los Banos grocery at 1209 West Pacheco Boulevard and to sell beer and wine (Type 20 off-sale ABC license). Planning staff said alcohol would be a small portion of sales (about 1.3% based on an existing location), that the site was an existing retail footprint (a former 99¢ store) and that the project was categorically exempt from CEQA under Section 15301. The applicant described in-person operations plans, security cameras and the store layout; after a public hearing the council approved the resolution by voice vote.
ADU/JADU ordinance update: Planning Director Stacy Elms presented amendments to the municipal ADU/JADU ordinance to align with recent California housing laws. The update emphasizes ministerial approval (a 60-day timeline for complete applications), removes minimum lot-size restrictions, clarifies setbacks and parking rules (one parking space per ADU with certain transit-area exceptions), and sets size and impact-fee treatments (no impact fees for units under 750 sq ft). Elms said preapproved plans are being developed as a next step. After public questions about parking and design standards, the council waived the first reading and introduced Ordinance No. 1216 by roll-call vote (Perez, Yamas, Chavez, Lewis and Amabile voted yes).
AB 2561 vacancies presentation: Human Resources staff presented the AB 2561-required annual status report on vacancies and recruitment. Staff reported 221 approved full-time equivalent (FTE) positions, 210 current FTEs and 11 vacancies for a citywide vacancy rate of 4.9%. The presenter noted the rate had improved from about 7.5% the prior year and compared favorably with county figures cited in the meeting (about 12.9% for Merced County).
Other business: The consent agenda included warrants and multiple administrative resolutions and tract-map acceptances; the council pulled item 8h for separate discussion before approving it. The mayor and council also recognized retiring Fire Chief Paul Tuala and named an employee of the month.
Ending: Councilmembers said the decisions advance planned infrastructure work and code alignment with state housing law; staff said construction and implementation timelines would be shared as contracts are executed and as preapproved ADU plans are completed.
