06/16/26 Council Meeting
REGULAR CHICO CITY COUNCIL MEETING June 16, 2026
Chico Municipal Center, Council Chamber, 421 Main Street
1. CALL TO ORDER
06/16/26 Agenda
1.1. Invocation - Chaplain MaryAnn Hawkins
1.2. Pledge of Allegiance to the Flag
1.3. Roll Call
1.4. June 9, 15, and 16, 2026, Closed Session Announcements - City Attorney Ryan Jones
1.5. Presentation by Matthew Allen, California State Parks - Status of Bidwell Mansion
2. CONSENT AGENDA - All matters listed under the Consent Agenda are to be considered routine in nature.
2.1. RESOLUTION OF THE CITY 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 - 2667 ALAMO AVENUE ASSESSOR’S PARCEL NO. 042-070-174 Adopt - a resolution authorizing sewer assessment to be collected on the tax roll, in lieu of full and immediate payment of the sewer system connection fees. (Brendan Ottoboni, Director of Public Works - Engineering)
2.1. Staff Report
2.2. RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF CHICO TO ABANDON AND VACATE A PORTION OF A PUBLIC UTILITY EASEMENT PURSUANT TO THE PUBLIC STREETS, HIGHWAYS, AND SERVICE EASEMENTS VACATION LAW (APN: 015-210-057) Adopt - a resolution scheduling a public hearing on July 14, 2026. Matthew J. O’Brien and Jaime R. O’Brien, husband and wife as joint tenants, is requesting the City of Chico to abandon and vacate the easterly 81 feet of a public utility easement located on the south side of APN 015-210-057, addressed as 1075 Via Verona Drive. Local utility companies have reviewed the request and have no objections. (Brendan Ottoboni, Director of Public Works - Engineering)
2.2. Staff Report
2.3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO APPROVING THE FISCAL YEAR 2026-27 LIST OF PROJECTS FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT Adopt - the adoption of a resolution approving the fiscal year 2026-27 list of project(s) funded by SB1 to be submitted to the California Transportation Commission (CTC) by July 1, 2026. (Skyler Lipski, Public Works Director - Operations & Maintenance)
2.3. Staff Report
2.4. CONSIDERATION OF GRANT APPLICATION SUBMITTAL FOR ENCAMPMENT RESOLUTION FUNDING PROGRAM ROUND-5 The California Department of Housing and Community Development (HCD) has released the Encampment Resolution Funding Program Round 5 (ERF-5) Notice of Funding Availability (NOFA), providing approximately $93 million statewide to support local efforts that address unsheltered homelessness, resolve encampments, and transition individuals into interim and permanent housing. Staff propose submitting an ERF-5 application seeking approximately $4.1 million to support a strategy centered on maintaining emergency shelter capacity and creating permanent housing opportunities for individuals experiencing homelessness in Chico. (Erik Gustafson, Assistant City Manager)
2.4. Staff Report
2.5. FIRE DEPARTMENT FIREFIGHTER FLOATER POSITIONS
The Fire Department seeks approval to hire three (3) Firefighter Floater positions during FY 2026/27. These positions will fill daily staffing vacancies resulting from employee leave, thereby reducing the department’s reliance on mandatory overtime to maintain minimum staffing levels. This proposal does not increase the department’s current daily minimum staffing. The Fire Chief recommends that the City Council approve the addition of three (3) Firefighter Floater positions to the Fire Department’s authorized staffing and that City Council approve the changes to Appendix B-3 Schedule of Job Title Allocations to Departments. (Wes Metroka, Fire Chief)
2.5. Staff Report
2.6. MINUTE ORDER - AUTHORIZATION FOR THE DONATION OF TWO SURPLUS GEM ELECTRIC VEHICLES TO THE JESUS CENTER Approve - the Minute Order to 1) authorize the donation of the electric vehicles to the Jesus Center, which have an estimated cumulative value of $5,000 - $7,500; and 2) authorize the Public Works Director O&M to execute the necessary documents for the transfer. (Skyler Lipski, Public Works Director - Operations & Maintenance)
2.6. Staff Report
2.7. SIDE LETTER AGREEMENT - MULTIPLE EMPLOYEE GROUPS REGARDING HEALTH INSURANCE ADVISORY COMMITTEE A side letter agreement between the City of Chico and multiple employee groups, modifying applicable Memoranda of Understanding to establish a Health Insurance Advisory Committee and replace existing health benefit committee provisions. (Barbara Martin, Administrative Services Director)
2.7. Staff Report
2.8. APPROVAL OF COUNCIL MEETING MINUTES OF 6/2/26 AND 6/9/26
2.8. 6/2/26 Draft Minutes
2.8. 6/9/26 Draft Minutes
2.9. ITEMS REMOVED FROM THE CONSENT AGENDA
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 - None
5. REGULAR AGENDA
5.1. SEWER ENTERPRISE STUDY
On March 17, 2026, Council received a comprehensive presentation on a five-year sewer rate update for the City of Chico’s sewer enterprise to address critical financial, regulatory, and infrastructure needs of the Water Pollution Control Plant and collection system. To reduce the initially proposed sewer rate increase staff have identified two additional rate increase scenarios which reduce the proposed Capital Improvement Plan but present some level of risk. This report summarizes the reduced sewer rate increase scenarios including risks and tradeoffs.
Recommendation : The Director of Public Works - Engineering recommends the City Council adopt a 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. CONSIDERATION OF A NEED-BASED SEWER RATE ASSISTANCE PROGRAM The Administrative Services Director recommends the City Council consider information regarding a need-based sewer rate assistance program and provide policy direction including eligibility criteria, funding options, administrative requirements, and program design considerations. (Barbara Martin, Administrative Services Director)
5.2. Staff Report
5.3. SOBERING CENTER FUNDING EXTENSION
On May 7, 2024, the Chico City Council authorized the execution of the Opioid Settlement Fund Disbursement/Sobering Center Services Memorandum of Understanding (MOU) between the City of Chico and the County of Butte. Under the MOU, the City committed to providing $119,000 annually for three years, for a total contribution of $357,000. All payments are to be made using the City of Chico’s opioid settlement funds. (Report - Mark Sorensen, City Manager) Recommendation : The City Manager recommends the City Council authorize the City Manager to amend the Opioid Settlement Fund Disbursement/Sobering Center Services Memorandum of Understanding Between City of Chico and County of Butte to extend the MOU an additional three years to expire June 30, 2030.
5.3. Staff Report
5.4. COMMERICAL CANNABIS CULTIVATION
At its April 21, 2026, meeting, the City Council passed a motion by a 5-2 vote directing staff to evaluate the feasibility of permitting commercial cannabis cultivation within city limits. Staff will provide an overview of the commercial cannabis cultivation license types authorized by the California Department of Cannabis Control and identify the amendments to the Chico Municipal Code that would be necessary to allow such operations within the City. (Report - Garrett Norman, Principal Planner) Recommendation : The Community Development Director recommends the City Council provide direction whether to pursue amendments to the Chico Municipal Code to permit and regulate commercial cannabis cultivation within the City of Chico, or to maintain the existing prohibition on commercial cannabis cultivation within city limits.
5.4. Staff Report
5.5. CONFIRMATION OF INTERIM DEPUTY CHIEF - FIRE
Section 605 of the City Charter states that the appointment of department heads is subject to confirmation by the City Council. To meet this requirement, City Council is being presented with the employment agreement for the Interim Deputy Chief - Fire. (Report - Mark Sorensen, City Manager) 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 Interim Deputy Chief - Fire employment agreement as follows:
"The City Manager is proposing to enter into an employment agreement with Shane Lauderdale as the Interim Deputy Chief - Fire; and the City Manager is proposing to appoint Shane Lauderdale with an annual salary of $184,218.58."
B. The City Manager recommends Council Confirmation of the appointment of Shane Lauderdale as the Interim Deputy Chief - Fire.
5.5. Staff Report
5.6. FIRST AMENDMENT TO FIRE CHIEF EMPLOYMENT AGREEMENT First Amendment to the Employment Agreement between Wesley Metroka (Fire Chief) and the City of Chico, establishing the employee contribution to the Retiree Medical Expense and Health Insurance Trust (Trust) at $75 per pay period, retroactive to May 17, 2026. The amendment is required by the Trust to authorize transmission of employee contributions through City payroll. All other terms of the Employment Agreement remain unchanged. (Report - Mark Sorensen, City Manager) Recommendation :A. In accordance with the Brown Act, this is to announce that the City Council is considering an amendment to the Fire Chief Employment Agreement authorizing an employee contribution of seventy-five dollars ($75.00) per pay period to the Retiree Medical Trust and authorizing payroll transmission of such contributions, effective retroactive to May 17, 2026; and
B. The City Manager requests that the City Council approve the First Amendment to the Fire Chief Employment Agreement and authorize the City Manager to execute the First Amendment on behalf of the City.
5.6. Staff Report
5.7. 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. ACCEPTANCE OF DOWNTOWN CHICO PROPERTY BASED IMPROVEMENT DISTRICT (PBID) 2025 ANNUAL REPORT - Accept and file The Downtown Chico Property Based Improvement District (PBID) is the organization that provides enhanced maintenance for the downtown area in addition to otherwise generally improving the downtown area. This organization is funded through an annual assessment of properties within the area serviced by the Downtown Chico PBID. California Streets & Highway Code Section 36650 requires the PBID Owners Association to prepare an annual report each fiscal year and file such report with the City Clerk. The PBID 2025 Annual Report addresses all elements required by California Streets and Highways Code and satisfies the City’s oversight responsibilities. (Erik Gustafson, Assistant City Manager)
6.2. Staff Report
6.3. SUNSHINING OF DRAFT MOU - CHICO POLICE OFFICERS’ ASSOCIATION (CPOA) - 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 Chico Police Officers’ Association (CPOA) 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 July 14, 2026. (Barbara Martin, Administrative Services Director)
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.
7. ADJOURNMENT - Adjourn to the July 14, 2026 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 - June 16, 2026 - 5:00 p.m.
Chico Municipal Center, Conference Room 2, 421 Main Street, Chico, CA 06/16/26 Agenda
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. PUBLIC EMPLOYMENT: Pursuant to Cal. Gov. Code Sec. 54957(b). Title: City Manager
2.2. 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
2.3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION: Pursuant to Cal. Gov. Code Sec. 54956.9(a): BCSC Case No. 25CV05119: David L. Waddell v. Michael L. Ramsey, et al
2.4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION: Pursuant to Cal. Gov. Code Sec. 54956.9(a): BCSC Case No. 26CV01533 Schwab, Ann, et al V. Reynolds, Kasey, et al
2.5. CLOSED SESSION ITEMS THAT AROSE AFTER THE POSTING OF THE AGENDA
3. ADJOURNMENT - Adjourn to the Adjourned Regular City Council Meeting on Tuesday, June 16, 2026, at 6:00 p.m.