3/7/23 City Council

# ADJOURNED REGULAR CHICO CITY COUNCIL MEETING - March 7, 2023 Minutes

## 1.1. REGULAR CITY COUNCIL MEETING - 6:00 p.m.

1.2. Call to Order - Mayor Coolidge called the March 7, 2023 - Regular City Council meeting to order at 6:00 p.m. in the Council Chamber, 421 Main Street, Chico, CA.

## 1.3. Invocation – Zion Community Christian Center - Reverend Penny Derosier

## 1.4. Pledge of Allegiance to the Flag

## 1.5. Roll Call

Present: Bennett, Morgan, Tandon, van Overbeek, Winslow, Reynolds, Coolidge Absent: None

Mayor Coolidge announced Item 2.4. was being pulled from the agenda and heard at a future meeting.

## 1.6. March 7, 2023 Closed Session Announcement

City Clerk Presson announced that Council met in Closed Session with staff regarding the items as noted below:

2.1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION: Pursuant to Cal. Gov. Code Sec. 54956.9(a): BCSC Case No. 23CV00376. Sierra Club, et al v. City of Chico – No action was taken; direction was provided.

2.2. CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION: Pursuant to Cal. Gov. Code Sec. 54956.9(a): BCSC: Case No. 22CV01954: Chicoans Against Financial Mismanagement – No on Measure H et al v. City of Chico, et al – No action was taken; direction was provided.

2.3. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION: Pursuant to Cal. Gov. Code Sec. 54956.9(a): USDC (ED) Case No. 2:21-cv-00640 – MCE-DMC: Warren v. Chico – No action was taken; direction was provided.

2.4. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION: Significant exposure to litigation pursuant to Gov. Code Sec. 54956.9(d)(2) - (3 cases) – No action was taken; direction was provided.

## 1.7. Proclamation – American Red Cross Month

2. CONSENT AGENDA – All matters listed under the Consent Agenda were considered routine and could therefore be enacted by one motion.

Addressing the Council on the Consent Agenda was Nichole Nava.

## Item 2.2. was removed from Consent for further discussion and Item 2.4. was continued to a future meeting.

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A motion was made by Vice Mayor Reynolds and seconded by Councilmember Bennett to approve the Consent Agenda, as read, with Item 2.2. removed for further discussion and Item 2.4. continued to a future meeting.

The motion carried by the following vote:

AYES: Bennett, Morgan, Tandon, van Overbeek, Winslow, Reynolds, Coolidge NOES: None

## 2.1. RESOLUTION NO. 23-23 - RESOLUTION OF THE COUNCIL OF THE CITY OF CHICO LEVYING ASSESSMENT INSTALLMENTS IN LIEU OF THE PAYMENT OF SEWER SYSTEM CONNECTION FEES INCIDENT TO THE CONNECTION OF PREMISES TO THE CITY SEWER SYSTEM - 115 CHICO CANYON ROAD - ASSESSOR'S PARCEL NO. 018-010-080 (Petition from property owner Oakleaf Properties LLC, by Leslie Depweg, manager)

Adopted a resolution authorizing sewer assessments to be collected on the tax roll, in lieu of full and immediate payment of the sewer system connection fees. (Leigh Ann Sutton - Public Works Director-Engineering)

## 2.2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO OPPOSING INITIATIVE 21-0042A1 - THE TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT – This item was removed from Consent for further discussion.

## 2.3. FIRE STATION NO. 1 - PHASE 1 & 2 PROJECT CLOSEOUT

On October 11, 2019, the City of Chico entered into a Public Works Agreement with Anthem Builders, Inc. to remodel Fire Station No. 1 in several phases. Anthem failed to complete the work due to bankruptcy, with only a few minor "punch list" items remaining to be completed. The City made a demand on Berkley Insurance Company, the issuer of the performance bond to complete the project. Berkley and the City entered into a Closeout Agreement whereby Berkley hired a new Contractor to complete the work, and the City agreed to pay the remaining contract funds in the amount of $70,816.27 to Berkley. The work has been completed satisfactorily, and the City was now prepared to release the funds to Berkley. (Erik Gustafson, Public Works Director - Operations and Maintenance)

## 2.4. CONSIDERATION OF AN AGREEMENT WITH THE DOWNTOWN CHICO BUSINESS ASSOCIATION - This item was not heard and continued to a future meeting.

## 2.5. LETTER AGREEMENT BETWEEN CITY OF CHICO AND SEIU, LOCAL 1021

A letter agreement between the City of Chico and Service Employees International Union (SEIU), Local 1021, modifying the Memorandum of Understanding (MOU) effective January 1, 2022 - December 31, 2024, providing a recruitment signing bonus for the Equipment Mechanic II position. (Chelsea Phebus, Director of Human Resources & Risk Management)

## 2.6. ACKNOWLEDGEMENT AND ACCEPTANCE OF ANNUAL AUDITED FINANCIAL REPORTS

The certified public accounting firm of CliftonLarsonAllen, LLP was engaged by the City Council to perform an audit of the financial statements and perform compliance testing of the City of Chico, Chico Public Financing Authority, Passenger Facility Charge and Chico Urban Area Joint Powers Financing Authority for the fiscal year ended June 30, 2022. (Barbara Martin, Administrative Services Director)

## 2.7. APPROVAL OF COUNCIL MEETING MINUTES OF 1/3/23, 1/17/23, 2/7/23, AND 2/21/23

## 2.8. ITEMS REMOVED FROM THE CONSENT AGENDA - Items 2.2. and 2.4.

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2.2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO OPPOSING INITIATIVE 21-0042A1 - THE TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT – removed from the Consent Agenda for further discussion.

A motion was made by Vice Mayor Reynolds and seconded by Councilmember Morgan to delay any action on this resolution until more information was received clarifying the impacts if this initiative is passed by the voters.

The motion carried by the following vote:

AYES: Bennett, Morgan, Tandon, van Overbeek, Winslow, Reynolds, Coolidge NOES: None

3. BUSINESS FROM THE FLOOR - Members of the public addressed the Council at this time on matters not already listed on the agenda. The Council was prohibited from acting at this meeting on requests made under this section of the agenda.

3/7/23 City Council

REGULAR CHICO CITY COUNCIL MEETING March 7, 2023 Chico Municipal Center, Council Chamber, 421 Main Street

1.1.

REGULAR CITY COUNCIL MEETING - 6:00 p.m. 3/7/23 Agenda

1.2.

Call to Order - Mayor Coolidge called the March 7, 2023 - Regular City Council meeting to order at 6:00 p.m. in the Council Chamber, 421 Main Street, Chico, CA.

1.3.

Invocation – Zion Community Christian Center - Reverend Penny Derosier

1.4.

Pledge of Allegiance to the Flag

1.5.

Roll Call

1.6.

March 7, 2023 Closed Session Announcement - City Clerk Presson announced that Council met in Closed Session regarding the items as noted below:

1.7.

Proclamation – American Red Cross Month

2.

CONSENT AGENDA - All matters listed under the Consent Agenda were considered routine and could therefore be enacted by one motion.

2.1.

RESOLUTION NO. 23-23 - RESOLUTION OF THE COUNCIL OF THE CITY OF CHICO LEVYING ASSESSMENT INSTALLMENTS IN LIEU OF THE PAYMENT OF SEWER SYSTEM CONNECTION FEES INCIDENT TO THE CONNECTION OF PREMISES TO THE CITY SEWER SYSTEM - 115 CHICO CANYON ROAD - ASSESSOR'S PARCEL NO. 018-010-080 (Petition from property owner Oakleaf Properties LLC, by Leslie Depweg, manager) Adopted a resolution authorizing sewer assessments to be collected on the tax roll, in lieu of full and immediate payment of the sewer system connection fees. (Leigh Ann Sutton - Public Works Director-Engineering) 2.1. Staff Report

2.2.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO OPPOSING INITIATIVE 21-0042A1 - THE TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT - Item was continued to a future meeting. 2.2. Staff Report

2.3.

FIRE STATION NO. 1 - PHASE 1 & 2 PROJECT CLOSEOUT On October 11, 2019, the City of Chico entered into a Public Works Agreement with Anthem Builders, Inc. to remodel Fire Station No. 1 in several phases. Anthem failed to complete the work due to bankruptcy, with only a few minor "punch list" items remaining to be completed. The City made a demand on Berkley Insurance Company, the issuer of the performance bond to complete the project. Berkley and the City entered into a Closeout Agreement whereby Berkley hired a new Contractor to complete the work, and the City agreed to pay the remaining contract funds in the amount of $70,816.27 to Berkley. The work has been completed satisfactorily, and the City is now prepared to release the funds to Berkley. (Erik Gustafson, Public Works Director - Operations and Maintenance) 2.3. Staff Report

2.4.

CONSIDERATION OF AN AGREEMENT WITH THE DOWNTOWN CHICO BUSINESS ASSOCIATION - This item was not heard and continued to a future meeting. 2.4. Staff Report

2.5.

LETTER AGREEMENT BETWEEN CITY OF CHICO AND SEIU, LOCAL 1021 A letter agreement between the City of Chico and Service Employees International Union (SEIU), Local 1021, modifying the Memorandum of Understanding (MOU) effective January 1, 2022 - December 31, 2024, providing a recruitment signing bonus for the Equipment Mechanic II position. (Chelsea Phebus, Director of Human Resources & Risk Management) 2.5. Staff Report

2.6.

ACKNOWLEDGEMENT AND ACCEPTANCE OF ANNUAL AUDITED FINANCIAL REPORTS The certified public accounting firm of CliftonLarsonAllen, LLP was engaged by the City Council to perform an audit of the financial statements and perform compliance testing of the City of Chico, Chico Public Financing Authority, Passenger Facility Charge and Chico Urban Area Joint Powers Financing Authority for the fiscal year ended June 30, 2022. (Barbara Martin, Administrative Services Director) 2.6. Staff Report

Attachment 1 Governance Communication Letter

Attachment 2 ACFR Independent Auditors' Report

Attachment 3 Single Audit Report

Attachment 4 PFC Report

Attachment 5 JPFA Audit Report

Attachment 6 Final Appropriations Limit Report

2.7.

APPROVAL OF COUNCIL MEETING MINUTES OF 1/3/23, 1/17/23, 2/7/23, AND 2/21/23 2.7. Draft Minutes

2.8.

ITEMS REMOVED FROM THE CONSENT AGENDA - Items 2.2. and 2.4.