5/19/26 Council Meeting - Budget Session Begins at 1:00 p.m.
REGULAR CHICO CITY COUNCIL MEETING May 19, 2026
Chico Municipal Center, Council Chamber, 421 Main Street
1. BUDGET SESSION
5/19/26 Agenda
1.1. Call to Order - 1:00 p.m.
1.4. Roll Call
1.5. BUDGET PRESENTATIONS
A.
DEPARTMENT BUDGET PRESENTATIONS
1. Introduction and Financial Overview
2. Administrative Services Department – Vision & Goals
3. City Clerk
4. City Manager
5. Fire
6. Police
7. Community Development
8. Operations & Maintenance
9. Engineering
1.5. BUDGET PRESENTATIONS
B.
RESOLUTION TO ADOPT THE FY2026-27 PROPOSED ANNUAL BUDGET The 2026-2027 Proposed Budget will be presented and discussed by the City Manager and Department Directors with the City Council. At this meeting, the City Council is asked to approve the Proposed Budget for the City of Chico and the Successor Agency to the Chico Redevelopment Agency. (Report - Mark Sorensen, City Manager) Recommendation : The City Manager recommends adoption of the following resolution:
RESOLUTION OF THE COUNCIL OF THE CITY OF CHICO ADOPTING THE 2026-2027 PROPOSED BUDGET FOR THE CITY OF CHICO AND THE SUCCESSOR AGENCY TO THE CHICO REDEVELOPMENT AGENCY 2026-2027 Proposed Budget
1.6. RECESS TO CLOSED SESSION
1.7. RECONVENE AND CALL MEETING TO ORDER - 6:00 P.M.
Item 1.7.A Flag Salute
1.2. Invocation - Chaplain Eileen Brownell
1.3. Pledge of Allegiance to the Flag
1.4. Roll Call
1.8. MAY 19, 2026, CLOSED SESSION ANNOUNCEMENT - City Attorney Ryan R. Jones
2. CONSENT AGENDA - All matters listed under the Consent Agenda are to be considered routine in nature.
2.1. RESOLUTION OF THE COUNCIL OF THE CITY OF CHICO APPROVING "MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHICO AND STATIONARY ENGINEERS, LOCAL 39, REGARDING PAY, HOURS, AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT FOR THE PERIOD OF JULY 1, 2025 - JUNE 30, 2027 (2025 LOCAL 39 MOU) The Administrative Services Director recommends the City Council approve the Memorandum of Understanding Between the City of Chico and the Stationary Engineers, Local 39 (Local 39) for July 1, 2025 - June 30, 2027, approving modifications to Local 39 pay and benefit provisions following recent negotiations. (Barbara Martin, Administrative Services Director)
2.1. Staff Report
2.2. AP&P 10-2- ROOM RESERVATION POLICY CANCELLATION
The Council is being asked to cancel AP&P 10-2 which governs the outside use of City facilities specifically related to the Council Chamber building and Conference Rooms, along with the use of the rooms located in the Old Municipal Building. An internal policy will be created addressing the room reservation process currently used by Council and staff that will continue to use the City Clerk’s office to reserve space when needed. Due to the safety needs of the audio/video equipment and metal detector installed in the Chamber along with all the City’s infrastructure housed in the Old Municipal Building, staff believes it is prudent to eliminate the outside use of these City’s facilities especially due to security concerns. Over time, the policy has evolved into a highly administrative and resource-intensive process. The existing policy permits use by outside organizations, requiring staff coordination from a myriad of departments with reservations, determination and collection of fees, set up of equipment, insurance verification, custodial oversight, compliance monitoring, along with now needing to address security concerns for use without staff being present. (Deborah R. Presson, City Clerk & Elections Official)
2.2. Staff Report
2.3. GEOGRAPHIC INFORMATION SYSTEMS ANALYST JOB DESCRIPTION AMENDMENT This City Council is asked to consider an amendment to the Geographic Information System (GIS) Analyst job description to accurately reflect the responsibilities of the GIS Analyst position. (Barbara Martin, Administrative Services Director)
2.3. Staff Report
2.4. APPROVAL OF COUNCIL MEETING MINUTES OF 4/16/26, 4/21/26 AND 5/5/26 Draft Minutes 4/16/26
Draft Minutes 4/21/26
Draft Minutes 5/5/26
2.5. PROPOSITION 64, PUBLIC SAFETY AND HEALTH GRANT OPPORTUNITY The Chico Police Department along with Chico Code Enforcement are seeking a $4.5 million grant opportunity to fund Cannabis education, enforcement, and compliance within the schools, parks, and marijuana dispensaries. Specifically, the State of California has funding under Proposition 64 Public Safety and Health, Grant Cohort 4. The Chief of Police recommends approval by City Council for Chico Police Department and Chico Code Enforcement to seek funding offered by this grant as there are no matching fund requirements. (Billy Aldridge, Chief of Police)
2.5. Staff Report
2.6. ITEMS REMOVED FROM THE CONSENT AGENDA
2.2. AP&P 10-2- ROOM RESERVATION POLICY CANCELLATION
The Council is being asked to cancel AP&P 10-2 which governs the outside use of City facilities specifically related to the Council Chamber building and Conference Rooms, along with the use of the rooms located in the Old Municipal Building. An internal policy will be created addressing the room reservation process currently used by Council and staff that will continue to use the City Clerk’s office to reserve space when needed. Due to the safety needs of the audio/video equipment and metal detector installed in the Chamber along with all the City’s infrastructure housed in the Old Municipal Building, staff believes it is prudent to eliminate the outside use of these City’s facilities especially due to security concerns. Over time, the policy has evolved into a highly administrative and resource-intensive process. The existing policy permits use by outside organizations, requiring staff coordination from a myriad of departments with reservations, determination and collection of fees, set up of equipment, insurance verification, custodial oversight, compliance monitoring, along with now needing to address security concerns for use without staff being present. (Deborah R. Presson, City Clerk & Elections Official)
3. PUBLIC COMMENTS - Members of the public may address the Council at this time on any matter 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 cannot take any action at this meeting on requests made under this section of the agenda.
4. PUBLIC HEARINGS
4.1. HEARING TO REVIEW AND APPROVE THE 2026-2027 ANNUAL ACTION PLAN FOR THE USE OF FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP GRANT (HOME) FUNDS The City receives an annual award of community development and housing funds from the Federal Department of Housing and Urban Development (HUD). Each year, the City must submit an Annual Action Plan (AAP) to HUD describing the City’s plans for using these funds in the upcoming year. The AAP has been made available for public comment since April 4th, with the initial public hearing held on April 21st. At that meeting, the City Council conducted a hearing on the draft 2026-27 Annual Plan and directed staff to schedule a second hearing for adoption of the Final AAP at its meeting on May 19, 2026. (Report - MaryJo Alonzo, Housing Program Manager) Recommendation : The Community Development Director recommends that City Council:
1) Hold a public hearing on the 2026-2027 HUD Annual Action Plan and proposed budget; 2) Consider any public comment received during the hearing; 3) Approve the 2026-2027 Final Annual Action Plan, as revised or amended, and authorize its submittal to HUD; and 4) Authorize the City Manager to execute any and all agreements and documents necessary to implement the Annual Action Plan.
4.1. Staff Report
5. REGULAR AGENDA
5.1. COUNCILMEMBER HAWLEY REQUEST - SEWER RATE PROGRAM FOR LOW INCOME - Continued from 5/5/26 Council Meeting At its meeting of 4/7/26, the Council voted to agendize a discussion regarding a sewer rate program for people with low incomes.
5.1. Councilmember Hawley request
5.2. COUNCILMEMBER VAN OVERBEEK REQUEST - BIDWELL MANSION - Continued from 5/5/26 Council Meeting At its meeting of 4/7/26, the Council voted to agendize a discussion on the Bidwell Mansion and what Council would like to see there.
5.2. Councilmember van Overbeek Request
5.3. INTRODUCTION OF AN ORDINANCE AMENDING SECTION 15.36.072 OF THE CHICO MUNICIPAL CODE The proposed ordinance amends Chico Municipal Code (CMC) Section 15.36.072 to clarify and update the procedures for collecting delinquent sewer service charges through placement on the Butte County property tax roll. The amendments ensure consistency with California Health and Safety Code sections 5473 through 5473.4. (Report - Barbara Martin, Administrative Services Director) Recommendation : The Administrative Services Director recommends the City Council introduce the following ordinance by reading its title only:
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHICO AMENDING SECTION 15.36.072 OF THE CHICO MUNICIPAL CODE RELATING TO COLLECTION OF DELINQUENT SEWER FEES
5.3. Staff Report
5.4. CONSIDERATION OF AN INTERFUND LOAN FROM THE WORKERS COMPENSATION RESERVE FUND TO THE FIBER UTILITY FUND The City Council is asked to consider approval of a $500,000 interfund loan from the Workers Compensation Reserve Fund to the Fiber Utility Fund to support the startup costs of the Fiber Utility. (Report - Barbara Martin, Administrative Services Director) Recommendation : The Administrative Services Director recommends adoption of the following resolution:
RESOLUTION OF CITY COUNCIL OF THE CITY OF CHICO APPROVING AN INTERFUND LOAN FROM THE WORKERS COMPENSATION INSURANCE RESERVE FUND TO THE FIBER UTILITY FUND
5.4. Staff Report
5.5. CONSIDERATION OF THREE HERITAGE TREE APPLICATIONS
The Chico Municipal Code (CMC Section 16.68.010) establishes a Voluntary Heritage Tree Program in which property owners can submit applications to nominate trees as a Heritage Tree. In the past fifteen months, staff received three applications from property owners and state agencies to nominate a tree on their property. A Southern Magnolia at 525 Esplanade (Bidwell Mansion), An American elm at 488 E 3rd St (Enloe Mansion) and a Valley oak at Little Chico Creek Elementary, 2090 Amanda Way. All three trees qualify and meet the criteria of a Heritage Tree under the CMC 16.68 regulations. (Report - Richie Bamlet, Urban Forest Manager) Recommendation : The Urban Forest Manager and the Bidwell Park and Playground Commission recommend that the City Council approve the designation of the private American elm at 488 E 3rd St, the public Valley oak at 2090 Amanda Way and the public Southern magnolia at 525 Esplanade as City of Chico Heritage Trees.
5.5. Staff Report
5.6. POLICY ON DISRUPTION OF TELEPHONIC OR INTERNET SERVICE DURING COUNCIL MEETING California Senate Bill 707 (2025) was signed into law on October 3, 2025, updating requirements of the Brown Act. Among its provisions, SB 707 requires all qualified legislative bodies to offer hybrid meetings through a two-way phone or video platform by July 1, 2026. The City will be utilizing Zoom to facilitate these hybrid meetings. SB 707 also requires the City to formally adopt a policy outlining procedures for recessing and reconvening a meeting in the event of disruption, as well as the efforts the City Council and staff will make to restore service. (Report - Deborah R. Presson, City Clerk & Elections Official) Recommendation : The City Clerk recommends adopting the updates to AP&P 10-10 as required by SB 707.
5.6. Staff Report
5.7. CONSIDERATION OF POST WARREN VERSUS THE CITY OF CHICO OPTIONS REGARDING THE ALTERNATE SITE, GENESIS, AND ENFORCEMENT OPERATIONS This report provides City Council with some discussion points and staff’s recommended approach for transitioning services, enforcement, and shelter operations following the expiration of the Warren Vs. City of Chico Settlement Agreement on January 14, 2027. This report is the initial in likely several City Council discussions that focus on the future of the Genesis emergency shelter, the closure of the Alternate Site, proposed operational rule changes, and enforcement strategies to address unsheltered individuals including the service resistant in a post Warren Vs. Chico Settlement Agreement environment. (Report - Erik Gustafson, Assistant City Manager) Recommendation : The Assistant City Manager recommends City Council provide direction on the following options:
1. Direct staff to close the Alternate Site upon expiration of the Settlement Agreement.
2. Direct staff to continue operation of Genesis emergency shelter with updated rules.
3. Direct staff to continue pursuit of grant funding to offset Genesis operational costs.
4. Provide direction to the City Attorney to review Chico Municipal Code Sections and return with recommendations at a future meeting.
5. Direct staff to deploy a phase enforcement approach working from the center of the City outwardly using an Outreach and Engagement (O&E) model.
6. Direct staff to develop a High Utilizer / Service Resistant Team to address repeated service resistant individuals.
5.7. Staff Report
5.8. CONSIDERATION OF A RESOLUTION TO ALLOW ALCOHOL SERVICE AND CONSUMPTION AT THE CHICO CREEK NATURE CENTER (CCNC) The Chico Area Recreation and Park District (CARD) has requested authorization to permit the service and consumption of alcoholic beverages during rentals and community events at the Chico Creek Nature Center (CCNC). At its April 27, 2026 meeting, the Bidwell Park and Playground Commission (BPPC) reviewed the proposal, received public input, and recommended that the City Council amend Chapter 12R.04 of the Chico Municipal Code accordingly, subject to applicable licensing and conditions. (Report - Skyler Lipski, Public Works Director - Operations & Maintenance) Recommendation : The BPPC recommends that the City Council consider adoption of the following resolution:
RESOLUTION OF THE COUNCIL OF THE CITY OF CHICO ADDING SECTION 12R.04.057 TO THE CHICO MUNICIPAL CODE REGARDING ALCOHOLIC BEVERAGES AT THE CHICO CREEK NATURE CENTER
5.8. Staff Report
5.7. CONSIDERATION OF POST WARREN VERSUS THE CITY OF CHICO OPTIONS REGARDING THE ALTERNATE SITE, GENESIS, AND ENFORCEMENT OPERATIONS This report provides City Council with some discussion points and staff’s recommended approach for transitioning services, enforcement, and shelter operations following the expiration of the Warren Vs. City of Chico Settlement Agreement on January 14, 2027. This report is the initial in likely several City Council discussions that focus on the future of the Genesis emergency shelter, the closure of the Alternate Site, proposed operational rule changes, and enforcement strategies to address unsheltered individuals including the service resistant in a post Warren Vs. Chico Settlement Agreement environment. (Report - Erik Gustafson, Assistant City Manager) Recommendation : The Assistant City Manager recommends City Council provide direction on the following options:
1. Direct staff to close the Alternate Site upon expiration of the Settlement Agreement.
2. Direct staff to continue operation of Genesis emergency shelter with updated rules.
3. Direct staff to continue pursuit of grant funding to offset Genesis operational costs.
4. Provide direction to the City Attorney to review Chico Municipal Code Sections and return with recommendations at a future meeting.
5. Direct staff to deploy a phase enforcement approach working from the center of the City outwardly using an Outreach and Engagement (O&E) model.
6. Direct staff to develop a High Utilizer / Service Resistant Team to address repeated service resistant individuals.
5.8. CONSIDERATION OF A RESOLUTION TO ALLOW ALCOHOL SERVICE AND CONSUMPTION AT THE CHICO CREEK NATURE CENTER (CCNC) The Chico Area Recreation and Park District (CARD) has requested authorization to permit the service and consumption of alcoholic beverages during rentals and community events at the Chico Creek Nature Center (CCNC). At its April 27, 2026 meeting, the Bidwell Park and Playground Commission (BPPC) reviewed the proposal, received public input, and recommended that the City Council amend Chapter 12R.04 of the Chico Municipal Code accordingly, subject to applicable licensing and conditions. (Report - Skyler Lipski, Public Works Director - Operations & Maintenance) Recommendation : The BPPC recommends that the City Council consider adoption of the following resolution:
RESOLUTION OF THE COUNCIL OF THE CITY OF CHICO ADDING SECTION 12R.04.057 TO THE CHICO MUNICIPAL CODE REGARDING ALCOHOLIC BEVERAGES AT THE CHICO CREEK NATURE CENTER
5.9. ACCEPTANCE OF DOWNTOWN CHICO BUSINESS ASSOCIATION (DCBA) FINAL REPORT ON DOWNTOWN BUSINESS DISTRICT ENHANCEMENT PROGRAM The Downtown Chico Business Association (DCBA) has submitted its Final Report for the Downtown Business District Enhancement Program, funded through the American Rescue Plan Act (ARPA) and administered under the Professional Services Agreement (PSA) executed March 22, 2023.The Final Report summarizes program activities, outcomes, and financial performance over the duration of the agreement. In addition, and per staff’s request, DCBA has committed to allocate $15,000 of its final $32,500 payment toward a Downtown Chico video marketing initiative. This effort is intended to enhance regional visibility and directly supports Objective #4 (Marketing & Communication) included in the PSA scope of services. (Report - Erik Gustafson, Assistant City Manager) Recommendation : The Assistant City Manager recommends City Council:
1. Accept the Downtown Chico Business Association Final Report for the Downtown Business District Enhancement Program; and
2. Acknowledge DCBA's commitment to utilize $15,000 of the final $32,500 payment for a Downtown Chico video marketing effort consistent with the PSA scope of services.
5.9. Staff Report
5.10. ITEMS ADDED AFTER THE POSTING OF THE AGENDA
6. REPORTS AND COMMUNICATIONS - The following reports and communication items are provided for the Council’s information. No action can 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. CHICO FIRE DEPARTMENT 2025 ANNUAL REPORT - Information Only The Chico Fire Department is pleased to submit our 2025 Annual Report, which reflects the dedication, professionalism, and service commitment of the women and men who proudly serve this community. This report provides an opportunity to share our accomplishments, highlight the challenges we have faced, and demonstrate the progress we continue to make in protecting the lives, property, and environment of our residents and visitors. (Bill Hack, Interim Fire Chief)
6.2. Staff Report
6.3. SUNSHINING OF DRAFT MOU - SERVICE EMPLOYEES INTERNATIONAL UNION TRADES AND CRAFTS UNIT (SEIU) - 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 Service Employees International Union, Local 1021 (SEIU) bargaining group. This initiates the two week "sunshining" period for City Council and community members to review the draft document. Final consideration of the MOU will be presented to the City Council at its meeting on June 2, 2026. (Barbara Martin, Administrative Services Director)
6.3. Staff Report
6.4. AUDIT AND CLOSEOUT OF UCEF AGREEMENT - RECEIVE AND FILE In 2014, the City entered into an agreement with the Upstate Community Enhancement Foundation (UCEF) to operate and maintain Channel 11. Under the agreement, UCEF received Public, Educational, and Governmental (PEG) funds, which were restricted for PEG-related purposes only, and was required to maintain records subject to City inspection and audit. Following termination of the agreement, the City resumed control of Channel 11 operations, and UCEF was required to return all PEG-funded equipment and remaining PEG funds to the City. As part of the agreement close-out process, the City initiated an audit of UCEF’s use of PEG funds; however, UCEF did not provide sufficient documentation for the auditor to complete the audit. (Deborah R. Presson, City Clerk & Elections Official)
6.4. Staff Report
6.5. 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.
7. ADJOURNMENT - Adjourn to the 6/2/26 Closed Session meeting at 5:00 p.m. or 5:30 p.m. followed by the Regular City Council meeting at 6:00 p.m. in the Council Chamber, 421 Main Street, Chico.
CLOSED SESSION MEETING OF THE CHICO CITY COUNCIL
Closed Session Meeting Agenda
May 19, 2026 - Following Budget Session
Chico Municipal Center, Conference Room 2, 421 Main Street, Chico, CA
1. CALL TO ORDER IN THE COUNCIL CHAMBER AT 421 MAIN STREET, CHICO, CA.
1.1. ROLL CALL
2. CLOSED SESSION AGENDA - Members of the public may address the Council at this time on any item on the Closed Session agenda, with comments being limited to three minutes or as determined by the Mayor based on the number of speakers.
2.1. CONFERENCE WITH LABOR NEGOTIATOR: Pursuant to Cal. Gov. Code Sec. 54957.6 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
2.2. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Gov. Code Sec. 54956.8.
Agency Negotiator: Mark Sorensen, City Manager
Party Negotiating with Portion of APN Address
A. Nella Enterprises, Inc. 006-190-010 3355 Esplanade B. Lewis and Marilyn Everett 006-190-012 3337 Esplanade C. Lewis and Marilyn Everett 006-190-021 116 & 128 Innsbrook Way D. Jason and Tami Smith 006-210-106 3268 Esplanade
E. Guzman Susana Ramirez 006-220-013 3332 Esplanade
F. Chico Area Recreation and Park District 006-220-014 3400 Esplanade G. Karen and George Robinette 006-220-017 3328 Esplanade H. Karen and George Robinette 006-220-018 3326 Esplanade I. Premier Solano LLC 006-550-015 Leora Court (Vacant Land) J. Merle Webb and Sons, LP 006-840-001 101 Risa Way
K. Merle Webb and Sons, LP 006-840-003 100 Risa Way
L. CAA North Pointe Chico, LP 006-840-005 3432 Esplanade
2.3. CONFERENCE WITH LEGAL COUNSEL - Potential Litigation: Pursuant to Gov. Code Sec. 54956.9(d)(4). One case
2.4. CLOSED SESSION ITEMS THAT AROSE AFTER THE POSTING OF THE AGENDA
3. ADJOURNMENT - Adjourn to the Adjourned Regular City Council Meeting on Tuesday, May 19, 2026, at 6:00 p.m.