3/17/26 Council Meeting

# ADJOURNED REGULAR CHICO CITY COUNCIL MEETING - March 17, 2026 Minutes

1.1. Call to order-6:00 p.m.-Mayor Reynolds called the March 17,2026, Regular Council meeting to order at 6:02 p.m.in the Council Chamber,421 Main Street, Chico, CA.

1.2. Invocation - Police Chaplain Peter Hansen

1.3. Roll Call

Present: Goldstein, Hawley, O'Brien, van Overbeek, Winslow, Bennett, Reynolds Absent: None

## 1.4. Pledge of Allegiance to the Flag

## 1.5. March 17,2026, Closed Session Announcement - City Attorney Ryan Jones

City Attorney Ryan Jones announced that Council met with staff on the Closed Session matters on March 16, 2026.

2.2 Existing Litigation - Believe in Chico- Council was briefed and direction was provided; no formal action was taken. Councilmember van Overbeek was disqualified from this discussion due to owning property within 500 feet of the area being discussed. He left the room during the discussion.

2.3 Public Employment - City Manager - Council was briefed and direction was provided; no formal action was taken.

2.1 Public Employment - City Manager - Council was briefed and direction was provided; no formal action was taken.

2.2 Labor Negotiations - Council was briefed and direction was provided; no formal action was taken.

## MINUTE ORDER AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE LOAN DOCUMENT BETWEEN THE CITY OF CHICO AND TURNING POINT COMMONS

## 2. CONSENT AGENDA

This item arose after the posting of the agenda. It required a 2/3 majority vote to be added to the agenda. If agendized, it would be heard as Item 5.6.

NOES: None

The motion carried by the following vote:

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The motion carried by the following vote:

AYES: Goldstein, Hawley, O'Brien, van Overbeek, Winslow, Bennett, Reynolds NOES: None

NOES: None

2.1. ORDINANCE NO. 2621 - ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHICO AMENDING SECTION 16.66.040(A) OF THE CHICO MUNICIPAL CODE TO ADD THE CHICO AREA RECREATION AND PARK DISTRICT AS AN EXEMPT ENTITY FROM TREE PRESERVATION REGULATIONS - Final reading and adoption by reading of title only

2.2. RESOLUTION NO. 16-26 - RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AGREEMENT AND ANY RELATED DOCUMENTS IN CONNECTION WITH THE ACQUISITION OF REAL PROPERTY LOCATED AT 2329 FAIR STREET (PORTION OF 005- 610-010) - JENNETTE C. MEDEIROS, AN UNMARRIED WOMAN

RESOLUTION NO. 17-26 - RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AGREEMENT AND ANY RELATED DOCUMENTS IN CONNECTION WITH THE ACQUISITION OF REAL PROPERTY LOCATED AT 2255 FAIR STREET (PORTION OF 005- 471-042) - JESUS PROVIDES OUR DAILY BREAD, INC., A CALIFORNIA NON-PROFIT BENEFIT CORPORATION WHO ACQUIRED TITLE AS JESUS PROVIDES OUR DAILY BREAD, INC., A CALIFORNIA CORPORATION

RESOLUTION NO. 18-26 - RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AGREEMENT AND ANY RELATED DOCUMENTS IN CONNECTION WITH THE ACQUISITION OF REAL PROPERTY LOCATED AT 2049 FAIR STREET (PORTION OF 005 (61-003) - RAJEEV VASUDEVA, A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY

Adopted resolutions authorizing the City Manager to execute the purchase agreement and any related documents necessary to acquire real property in order to construct the Fair Street Rehabilitation Project.

## 2.3. AMENDMENT TO THE CITY OF CHICO BUDGET APPENDIX B-1 AND UPDATE TO THE FIRE CHIEF AND DEPUTY CHIEF - FIRE JOB DESCRIPTIONS

An amendment to the City of Chico's Fiscal Year 2025-26 Budget, Appendix B-1, and updated the Fire Chief and Deputy Chief - Fire job descriptions. (Barbara Martin, Administrative Services Director)

Consideration of a Side Letter Agreement between the City of Chico and the Chico Public Safety Association (CPSA) providing a $40,000 signing bonus for a lateral Public Safety Dispatcher hired on January 20, 2026 funded through the previously authorized dispatcher recruitment and retention bonus program. (Barbara Martin, Administrative Services Director)

## 2.5. APPROVAL OF COUNCIL MEETING MINUTES OF 3/3/26

Addressing the Council were Bo Powell, Carrie Welch, Rob Berry and Charnel Schaff-James.

## 2.6. ITEMS REMOVED FROM THE CONSENT AGENDA - None

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## 5.1. SEWER ENTERPRISE STUDY

The City of Chico completed a Sewer Enterprise Study proposing a five-year sewer rate adjustment to address financial, regulatory, and infrastructure needs of the City's sewer public utility. The rate strategy was intended to stabilize sewer funds; support required capital and regulatory compliance projects and rebuild reserves to ensure long-term utility sustainability. (Report - Brendan Ottoboni, Public Works Director Engineering)

Addressing the Council were Analise Uhlrig, Matt Depa, Molly Kopta, Jennifer Morris, Channel Schaaf-James and Adam Fedeli.

A motion was made by Councilmember van Overbeek and seconded by Councilmember O'Brien to delay the approval of the fee increase until the City got the results of the heavy metal testing.

A substitute motion was made by Councilmember Hawley and seconded by Councilmember Goldstein to approve Option 1 to adopt the proposed sewer rate schedule and direct staff to initiate the Proposition 218 process, including preparation and distribution of the public hearing notice.

The motion carried by the following vote:

AYES: Goldstein, Hawley, Winslow, Bennett

3/17/26 Council Meeting

REGULAR CHICO CITY COUNCIL MEETING March 17, 2026 Chico Municipal Center, Council Chamber, 421 Main Street

1.1.

Call to order - 6:00 p.m. - Mayor Reynolds called the March 3, 2026, Regular Council meeting to order at 6:02 p.m. in the Council Chamber, 421 Main Street, Chico, CA. 3/17/26 Amended Agenda

1.2.

Invocation - Police Chaplain Peter Hansen

1.4.

Roll Call

1.3.

Pledge of Allegiance to the Flag

1.5.

March 17, 2026, Closed Session Announcement - City Attorney Ryan Jones City Attorney Ryan Jones announced that Council met with staff on the Closed Session matters on March 16, 2026. 2.2 Existing Litigation - Believe in Chico Council was briefed and direction was provided; no formal action was taken. Councilmember van Overbeek was disqualified from this discussion due to owning property within 500 feet of the area being discussed. He left the room during the discussion. 2.3 Public Employment - City Manager - Council was briefed and direction was provided; no formal action was taken. City Attorney Ryan Jones announced that Council met with staff on the Closed Session matters on March 17, 2026. 2.1 Public Employment - City Manager - Council was briefed and direction was provided; no formal action was taken. 2.2 Labor Negotiations - Council was briefed and direction was provided; no formal action was taken.

MINUTE ORDER AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE LOAN DOCUMENTS BETWEEN THE CITY OF CHICO AND TURNING POINT COMMONS This item arose after the posting of the agenda. It required a 2/3 majority vote to be added to the agenda. If approved this would be heard as Item 5.3. If agendized, it will be heard as Item 5.6.

3/17/26 Posted Addendum - Item arose after the posting of the agenda

Item 5.6. Staff Report

Item 5.6. Minute Order

2.

CONSENT AGENDA

2.1.

ORDINANCE NO. 2621 - ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHICO AMENDING SECTION 16.66.040(A) OF THE CHICO MUNICIPAL CODE TO ADD THE CHICO AREA RECREATION AND PARK DISTRICT AS AN EXEMPT ENTITY FROM TREE PRESERVATION REGULATIONS - Final reading and adoption by reading of title only 2.1. Ordinance Amending 16.66.040(A) (CARD)

2.2.

RESOLUTION NO. 16-26 - RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AGREEMENT AND ANY RELATED DOCUMENTS IN CONNECTION WITH THE ACQUISITION OF REAL PROPERTY LOCATED AT 2329 FAIR STREET (PORTION OF 005-610-010) - JENNETTE C. MEDEIROS, AN UNMARRIED WOMAN RESOLUTION NO. 17-26 - RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AGREEMENT AND ANY RELATED DOCUMENTS IN CONNECTION WITH THE ACQUISITION OF REAL PROPERTY LOCATED AT 2255 FAIR STREET (PORTION OF 005-471-042) - JESUS PROVIDES OUR DAILY BREAD, INC., A CALIFORNIA NON-PROFIT BENEFIT CORPORATION WHO ACQUIRED TITLE AS JESUS PROVIDES OUR DAILY BREAD, INC., A CALIFORNIA CORPORATION RESOLUTION NO. 18-26 - RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AGREEMENT AND ANY RELATED DOCUMENTS IN CONNECTION WITH THE ACQUISITION OF REAL PROPERTY LOCATED AT 2049 FAIR STREET (PORTION OF 005-461-003) - RAJEEV VASUDEVA, A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY Adopt - resolutions authorizing the City Manager to execute the purchase agreement and any related documents necessary to acquire real property in order to construct the Fair Street Rehabilitation Project. 2.2. Staff Report

2.3.

AMENDMENT TO THE CITY OF CHICO BUDGET APPENDIX B-1 AND UPDATE TO THE FIRE CHIEF AND DEPUTY CHIEF - FIRE JOB DESCRIPTIONS An amendment to the City of Chico's Fiscal Year 2025-26 Budget, Appendix B-1, and updates to the Fire Chief and Deputy Chief - Fire job descriptions. (Barbara Martin, Administrative Services Director) 2.3. Staff Report

2.4.

SIDE LETTER AGREEMENT - CHICO PUBLIC SAFETY ASSOCIATION Consideration of a Side Letter Agreement between the City of Chico and the Chico Public Safety Association (CPSA) providing a $40,000 signing bonus for a lateral Public Safety Dispatcher hired on January 20, 2026, funded through the previously authorized dispatcher recruitment and retention bonus program. (Barbara Martin, Administrative Services Director) 2.4. Staff Report

2.5.

APPROVAL OF COUNCIL MEETING MINUTES OF 3/3/26 2.5. 3/3/26 Darft Minutes

2.6.

ITEMS REMOVED FROM THE CONSENT AGENDA - None

3.

PUBLIC COMMENTS - Members of the public addressed the Council at this time on matters not already listed on the agenda and within the jurisdiction's authority. The Council was prohibited from taking any action at this meeting on requests made under this section of the agenda. Addressing the Council were Bo Powell, Carrie Welch, Rob Berry and Charnel Schaff-James.

4.

PUBLIC HEARINGS - None

5.

REGULAR AGENDA

5.1.

SEWER ENTERPRISE STUDY The City of Chico has completed a Sewer Enterprise Study proposing a five-year sewer rate adjustment to address financial, regulatory, and infrastructure needs of the City's sewer public utility. The rate strategy is intended to stabilize sewer funds; support required capital and regulatory compliance projects and rebuild reserves to ensure long-term utility sustainability. (Report - Brendan Ottoboni, Public Works Director - Engineering) Addressing the Council were Analise Uhlrig, Matt Depa, Molly Kopta, Jennifer Morris, Charnel Schaaf-James, and Adam Fedeli. Recommendation : The Director of Public Works - Engineering recommends the City Council approve the Finance Committee recommendation, adopt the proposed sewer rate schedule, and direct staff to initiate the Proposition 218 process, including preparation and distribution of the public hearing notice. 5.1. Staff Report

5.2.

AUTHORIZATION OF APPLICATION TO THE PRO-HOUSING INCENTIVE PROGRAM The California Department of Housing and Community Development's (HCD) administers the Pro-Housing Incentive Program (PIP), which provides competitive grant funding to support planning and implementation activities related to housing and community development. Because the City is pursuing HCD's Pro-Housing Designation, the City may be eligible for PIP funding. At its meeting, Council is being asked to adopt a resolution authorizing submittal of a PIP application by the March 31, 2026, Round 4 Notice of Funding Availability deadline. This action may allow the City to secure State funding to support its housing goals. (Report - Brendan Vieg, CDD Director, MaryJo Alonzo, Housing Manager) Recommendation : The Community Development Director recommends that the City Council: 1) adopt the following resolution authorizing application to and participation in the Pro-Housing Incentive Program and 2) authorize the City Manager, or designee, to execute all documents necessary to apply for and, if awarded, accept Pro-Housing Incentive Program funds. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO AUTHORIZING APPLICATION FOR, AND RECEIPT OF, PROHOUSING INCENTIVE PROGRAM FUNDS (CITY OF CHICO) 5.2. Staff Report