Council Meeting

# ADJOURNED REGULAR CHICO CITY COUNCIL MEETING - November 4, 2025 Minutes

1.1. Call to order - Mayor Reynolds called the November 4,2025, Regular City Council meeting to order at 6:00 p.m. in the Council Chamber, 421 Main Street, Chico, CA.

1.2. Invocation - Minister Chet Rutledge, Chico Church of Christ

1.3. Pledge of Allegiance to the Flag

## 1.4. Roll Call

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

## 1.5. November 4,2025, Closed Session Announcement - City Attorney John Lam

City Attorney Lam announced that Council met in Closed Session with staff regarding the following items:

2.1. Existing Litigation - Warren v. Chico - 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.

2.3 Existing Litigation - Believe in Chico v. Chico - Councilmember van Overbeek recused himself due to living within 500 feet of the project area and left the room when this item was discussed. Council was briefed with no direction provided; no formal action was taken.

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

## 1.6. Proclamation - Homeless Youth Awareness Month

## 2. CONSENT AGENDA

ORDINANCE NO. 2615 - ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHICO AMENDING TITLE 14 STREETS AND SIDEWALKS OF THE CHICO MUNICIPAL CODE - Final reading and adoption, by reading of title only

The motion carried by the following vote:

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Adopted ordinances updating several titles of the Chico Municipal Code (CMC). The amendments to the CMC were to adhere to regulatory changes, follow City Council Directives, implement process enhancements promote modern engineering practices, and provide long-term sustainability to City infrastructure. （Brendan Ottoboni, Director of Public Works - Engineering)

## 2.2. CONSIDERATION OF APPROVAL OF SUPPLEMENTAL APPROPRIATION/BUDGET MODIFICATION NO. 2025-ASD-0011

The Administrative Services Director requested consideration and approval of a Supplemental Appropriation/Budget Modification to the FY 2024-25 Budget. (Barbara Martin, Administrative Services Director)

## 2.3 ITEMS REMOVED FROM THE CONSENT AGENDA - None

3. PUBLIC COMMENTS - Members of the public addressed the Council 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, Sam Barber, Traci Andersen and Ted Schwartz. A letter of public comments was read into the record for Andrew Merkel.

## 4. PUBLIC HEARINGS

## 4.1. CONSIDERATION OF AN ORDINANCE REGULATING MASSAGE ESTABLISHMENTS (CMC CHAPTER 5.44) - 10/6/25 INTERNAL AFFAIRS COMMITTEE RECOMMENDATIONS

At this meeting, the Council considered the recommendations made by its Internal Affairs Committee regarding an ordinance regulating massage establishments. Council had directed staff to prepare a massage establishment ordinance incorporating California Massage Therapy Council (CAMTC) requirements and guidelines, with that draft ordinance considered at its August 19,2025, meeting. In response to public comments received at that meeting, Council then referred the item to the Internal Affairs Committee (IAC) for obtaining more public input and to discuss possible amendments to the proposed ordinance to include grandfathering long-time massage therapists, limitation on business hours, and clarifying exemptions.

Based on the discussions from several IAC meetings, at its meeting of 10/6/25, the IAC voted (3-0) to forward the amendments to the proposed ordinance to Council for its consideration at this meeting. These regulations are exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15061(b)(3). （Report - Charlene Durkin, Code Enforcement Supervisor)

The motion carried by the following vote:

Mayor Reynolds opened the hearing to the public. Addressing the Council was Amy Alward. The hearing was closed to further comment.

## 5. REGULAR AGENDA

NOES: None

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## 5.1. CONSIDERATION OF A RESOLUTION ADDING THE EL MONTE ANNEXATION TERRITORY TO COUNCIL DISTRICT 7

At its meeting on March 15,2022, Council authorized the City Manager to enter into an Island Annexation Agreement between the City of Chico and Butte Local Agency Formation Commission (Butte LAFCo), to consolidate City boundaries and ensure efficient delivery of urban services. This agreement required the City to submit an annexation application that included four remaining island areas within the City. It was agreed that the annexation of the four areas would be staggered to allow the City reasonable time to prepare for provision of services in those areas.

El Monte Annexation was recently annexed into the City in August 2025. CMC Section 1.30.250 (B) provides that "At the time of any annexation of territory to the City, the City Council shall designate, by resolution adopted by a vote of at least a majority of the City Council, the contiguous district to which the annexed territory shall be a part and shall amend the district boundaries if necessary in accordance with Elections Code Section 21603." （Report - Deborah R. Presson, City Clerk & Elections Official)

A motion was made by Councilmember van Overbeek and seconded by Vice Mayor Bennett to adopt the following resolution.

RESOLUTION NO. 62-25 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO ADDING THE EL MONTE ANNEXATION TERRITORY TO CITY COUNCIL DISTRICT 7 PURSUANT TO ELECTIONS CODE SECTION 21603 (a)

The motion carried by the following vote:

AYES: Goldstein, Hawley, O'Brien, van Overbeek, Winslow, Bennett, Reynolds

NOES: None

Council Meeting

REGULAR CHICO CITY COUNCIL MEETING November 4, 2025 Chico Municipal Center, Council Chamber, 421 Main Street

1.1.

Call to order - Mayor Reynolds called the November 4, 2025 Regular City Council meeting to order at 6:00 p.m. in the Council Chamber, 421 Main Street, Chico, CA.

1.2.

Invocation - Minister Chet Rutledge, Chico Church of Christ

1.3.

Pledge of Allegiance to the Flag

1.4.

Roll Call

1.5.

November 4, 2025, Closed Session Announcement - City Attorney John Lam City Attorney Lam announced that Council met in Closed Session regarding the following items: 2.1 Existing Litigation - Warren v. Chico - 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. 2.3 Existing Litigation - Believe in Chico v. Chico - Councilmember van Overbeek recused himself due to living within 500 feet of the project area. Council was briefed and no direction was provided; no formal action was taken. 2.4 Public Employment - City Attorney - Council was briefed and direction was provided; no formal action was taken.

1.6.

Proclamation - Homeless Youth Awareness Month

2.

CONSENT AGENDA

2.1.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHICO AMENDING TITLE 10 VEHICLES AND TRAFFIC OF THE CHICO MUNICIPAL CODE - Final reading and adoption, by reading of title only ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHICO AMENDING TITLE 14 STREETS AND SIDEWALKS OF THE CHICO MUNICIPAL CODE - Final reading and adoption, by reading of title only ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHICO AMENDING TITLE 16 BUILDINGS AND CONSTRUCTION OF THE CHICO MUNICIPAL CODE - Final reading and adoption, by reading of title only Adopt - ordinances updating several titles of the Chico Municipal Code (CMC). The amendments to the CMC are to adhere to regulatory changes, follow City Council Directives, implement process enhancements, promote modern engineering practices, and provide long-term sustainability to City infrastructure. (Brendan Ottoboni, Director of Public Works - Engineering) 2.1 Staff Report

2.2.

CONSIDERATION OF APPROVAL OF SUPPLEMENTAL APPROPRIATION/BUDGET MODIFICATION NO. 2025-ASD-0011 The Administrative Services Director requests consideration and approval of a Supplemental Appropriation/Budget Modification to the FY 2024-25 Budget. (Barbara Martin, Administrative Services Director) 2.2 Staff Report

2.3

ITEMS REMOVED FROM THE CONSENT AGENDA - None

3.

PUBLIC COMMENTS - Members of the public addressed the Council on matters not already listed on the agenda and within the jurisdiction's authority. Comments will be limited to three minutes or as determined by the Mayor based on the number of speakers. The Council was prohibited from taking any action at this meeting on requests made under this section of the agenda.

4.

PUBLIC HEARINGS

4.1.

CONSIDERATION OF AN ORDINANCE REGULATING MASSAGE ESTABLISHMENTS (CMC CHAPTER 5.44) Council directed staff to prepare a massage establishment ordinance incorporating California Massage Therapy Council (CAMTC) requirements and guidelines. Council considered a draft ordinance at its August 19, 2025 meeting, and in response to public comment referred the item to its Internal Affairs Committee (IAC) to discuss possible amendments to the proposed ordinance to include grandfathering long-time massage therapists, limitation on business hours, and to clarify exemptions. At its 9/16/25 meeting, the IAC received public comment and directed staff to continue soliciting public input and report back with proposed ordinance changes. At its 10/6/25 meeting, the IAC voted to support staff proposed ordinance revisions and to report back to full Council. At its 10/21/25 meeting, Council received the IAC recommendation and directed that the revised ordinance be agendized for a future Council meeting. The proposed amendments do not propose any construction, demolition, or other activity that has the potential for causing a significant effect on the environment and are therefore exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15061(b)(3). (Report - Charlene Durkin, Code Enforcement Supervisor) Recommendation : The Community Development Director recommends that the City Council 1) hold a public hearing regarding the proposed ordinance; and 2) introduce an ordinance to add Chapter 5.44 to Title 5 of the Chico Municipal Code by reading its title only: ORDINANCE OF THE CITY OF CHICO ADDING CHAPTER 5.44 TO THE CITY OF CHICO MUNICIPAL CODE TO REGULATE MASSAGE THERAPY ESTABLISHMENTS WITHIN THE CITY OF CHICO 4.1 Staff Report

5.

REGULAR AGENDA

5.1.

CONSIDERATION OF A RESOLUTION ADDING THE EL MONTE ANNEXATION TERRITORY TO COUNCIL DISTRICT 7 At its meeting on March 15, 2022, Council authorized the City Manager to enter into an Island Annexation Agreement between the City of Chico and Butte Local Agency Formation Commission (Butte LAFCo), to consolidate City boundaries and ensure efficient delivery of urban services. This agreement required the City to submit an annexation application that included four remaining island areas within the City. It was agreed that the annexation of the four areas would be staggered to allow the City reasonable time to prepare for provision of services in those areas. El Monte Annexation was recently annexed into the City in August 2025. CMC Section 1.30.250 (B) provides that "At the time of any annexation of territory to the City, the City Council shall designate, by resolution adopted by a vote of at least a majority of the City Council, the contiguous district to which the annexed territory shall be a part and shall amend the district boundaries if necessary in accordance with Elections Code Section 21603." (Report - Deborah R. Presson, City Clerk & Elections Official) Recommendation : The City Clerk and Elections Official recommends adoption of the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO ADDING THE EL MONTE ANNEXATION TERRITORY TO CITY COUNCIL DISTRICT 7 PURSUANT TO ELECTIONS CODE SECTION 21603 (a) 5.1 Staff Report

5.2.

CalPERS UNFUNDED ACTUARIAL LIABILITY (UAL) DISCUSSION Over the past decade, the City of Chico has undertaken several initiatives to address its CalPERS unfunded accrued liability (UAL). Key strategies have included increasing employee cost sharing, establishing a Section 115 Pension Stabilization Trust, prepaying annual UAL obligations to reduce interest, and evaluating (but not pursuing) Pension Obligation Bonds. This report provides an overview of Council and Finance Committee discussions, decisions, and ongoing management actions related to the City's UAL. Verbal Council discussion was requested by Councilmember van Overbeek at the October 21, 2025 meeting. 5.2 Staff Report

5.3.

ITEMS ADDED AFTER THE POSTING OF THE AGENDA - None

6.

REPORTS AND COMMUNICATIONS - The following reports and communication items were provided for the Council's information. No action could be taken on items under this section unless the Council agreed to include it on a subsequent agenda.

6.1.

CITY MANAGER'S REPORT - Verbal Report, City Manager Sorensen