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
5.3. CONFIRMATION OF DEPUTY DIRECTOR - PUBLIC WORKS ENGINEERING Section 605 of the City Charter states that the appointment of department heads is subject to confirmation by the City Council. In order to meet this requirement, City Council is being presented with the employment agreement for the Deputy Director - Public Works Engineering. (Report - Barbara Martin, Administrative Services Director) Recommendation :A. In compliance with Government Code Section 54953(c)(3), the City Manager shall first orally report a summary of the recommendation for final action related to the Deputy Director - Public Works Engineering employment agreement as follows:
"The City Manager is proposing to enter into an employment agreement with David Kehn as the Deputy Director - Public Works Engineering; and the City Manager is proposing to appoint David Kehn with an annual salary of $185,377.50." B. The City Manager recommends Council Confirmation of the appointment of David Kehn as the Deputy Director - Public Works Engineering.
5.3. Staff Report
5.4. COUNCILMEMBER O'BRIEN REQUEST - REVITALIZATION OF DOWNTOWN At its meeting of 2/17/26, Council voted to agendize a discussion regarding revitalization of the Downtown area. Councilmemeber van Overbeek was disqualified from this discussion due to owning property within 500 feet of the area being discussed. He left the council meeting at this time as he was also disqualified from item 5.5 for the same reason.
Addressing the Council were Leann Powell, Adam Fedeli, and Anika Rodriguez.
5.4. Councilmember O’Brien request
5.5. MAYOR REYNOLDS REQUESTS FOR COUNCIL DISCUSSION REGARDING PBID OPPORTUNITY ZONES AND POSSIBLE DOWNTOWN ENTERTAINMENT ZONES At its meeting of February 17, 2026, at the request of Mayor Reynolds, the Council voted 7-0 to agendize a discussion regarding possible opportunity zones that are being developed and proposed by the PBID for the downtown area.
At its meeting of March 3, 2026, the Council voted 7-0 to waive its 30-day rule to allow Mayor Reynolds to include discussion of possible downtown entertainment zones as part of the previously scheduled discussion of PBID opportunity zones.
Addressing the Council were Audrey Taylor, Molly Kopka, Celeste Cramer and Lindsay Steinberg.
5.5. Mayor Reynolds requests
5.6. ITEMS ADDED AFTER THE POSTING OF THE AGENDA
AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE LOAN AGREEMENTS AND RELATED DOCUMENTS BETWEEN THE CITY OF CHICO AND TURNING POINT COMMONS, LP FOR THE REHABILITATION OF LOW-INCOME HOUSING PROJECT, TURNING POINT COMMONS Staff identified the need for City Council authorization for the City Manager to execute loan documents between the City of Chico and Turning Point Commons, LP, for funding related to the rehabilitation of an existing 66-unit affordable housing project. Community Improvement Housing Program (CHIP), the owner and borrower of Turning Point Commons, has been long-standing partner with the City in the development and preservation of affordable housing. In June 2025, City Council approved the HUD Annual Plan and the FY 2025-26 City Budget, which included funding allocations for this project. While the Council authorized the funding for the loans, it did not explicitly authorize the City Manager to execute the related loan and financing documents necessary to implement the project. This Minute Order provides authority for the City Manager to execute the associated Loan and Regulatory Agreements and Deeds of Trust securing the loans. (Report - MaryJo Alonzo, Housing Program Manager)
Recommendation
The Community Development Director recommends that City Council approve the attached Minute Order authorizing the City Manager to execute all documents necessary to facilitate this transaction, subject to approval as to form by the City Attorney.
Posted Addendum
Item 5.6. Staff Report
Item 5.6. Minute Order
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 agrees to include it on a subsequent agenda.
6.1. CITY MANAGER'S REPORT -
Verbal Report, City Manager Sorensen
6.2. SUNSHINING OF DRAFT MOU - CONFIDENTIALS (CNF) -
Information only
Pursuant to the "Sunshine and Transparency" requirements of the negotiation process, the City Council is provided a draft copy of the Memorandum of Understanding applicable to the Confidentials (CNF) bargaining group. This initiates the two week "sunshining" period for City Council and community members to review the draft document. A final presentation will be brought forward to City Council for consideration at its meeting on April 7, 2026. (Barbara Martin, Administrative Services Director)
6.2. Staff Report
6.3. SHELTER CRISIS DECLARATION STATUS REPORT-
Information only
On October 5, 2021, the City of Chico (City) declared a shelter crisis pursuant to Government Code section 8698.4. This is the City's annual status report to the State of California Senate Committee on Housing and the Assembly Committee on Housing and Community Development, as required by Government Code section 8698.4(a)(6), outlining its progress in addressing its shelter crisis during FY 2022-2023. (Mark Sorensen, City Manager)
6.3. Staff Report
6.4. COUNCILMEMBER REQUESTS - Pursuant to AP&P 10-10, Councilmembers may verbally request an item to be agendized at a future meeting. After stating what the item would be, a majority vote of Council is needed in order for staff to agendize.
CLOSED SESSION MEETING OF THE CHICO CITY COUNCIL
Closed Session Meeting Agenda
March 17, 2026
2:00 p.m.
Council Chamber Building, Conference Room 1
421 Main Street, Chico, CA
3/17/26 Agenda
7. ADJOURNMENT -
Adjourned at 8:14 to Closed Session Meeting on Tuesday, April 7, 2026, at 2:00 p.m., followed by the Adjourned Regular City Council meeting at 6:00 p.m. in the Council Chamber, 421 Main Street, Chico.
1. CALL TO ORDER -
Mayor Reynolds called the Closed Session meeting of March 17, 2026, to order at 2:00 p.m. in the Council Chamber located at 421 Main Street, Chico, CA.
1.1. ROLL CALL -
All members were present.
2. CLOSED SESSION AGENDA -
There were no speakers.
2.1. PUBLIC EMPLOYMENT: Pursuant to Cal. Gov. Code Sec. 54957(b). Title: City Manager Recruitment - Council was briefed and direction was provided; no formal action was taken.
2.2. CONFERENCE WITH LABOR NEGOTIATOR: Pursuant to Cal. Gov. Code Sec. 54957.6 - Council was briefed and direction was provided; no formal action was taken.
Negotiator:
Laura Izon (Atkinson, Andelson, Loya, Ruud and Romo law firm (AALRR)) & Barbara Martin, Administrative Services Director Employee Organizations:
Chico Fire Management Employees, Chico Management Employees, Chico Police Management, Chico Police Officers Association, Chico Public Safety Association, Confidentials, International Association of Fire Fighters, Service Employees International Union - Trades & Crafts, Stationary Engineers Local 39, United Public Employees of California - Local 792
2.3. CLOSED SESSION ITEMS THAT AROSE AFTER THE POSTING OF THE AGENDA - None
3. ADJOURNMENT -
Adjourned at 5:54 p.m. to the Regular City Council Meeting on Tuesday, March 17, 2026, at 6:00 p.m.