City Council Agenda Report Meeting Date: September 15, 2026 TO: City Council
FROM: Barbara Martin, Administrative Services Director
RE: Side Letter Agreement with Chico Management Employees Regarding Risk Manager Classification REPORT IN BRIEF:
Upon approval, this item updates the City of Chico and Chico Management Employees (CME) Memorandum of Understanding effective January 1, 2026 – December 31, 2027 (2026 CME – MOU) through a Side Letter Agreement establishing the Risk Manager classification. This classification will be used to reclassify an existing Administrative Specialist position in the Confidentials Bargaining Unit; no new position is being added.
The reclassified position will be allocated to Administrative Services, within the Human Resources and Risk Management Division, to provide dedicated managerial oversight of the City’s risk and safety functions. The City previously maintained a Risk Manager position, which was eliminated in 2013. This reclassification restores dedicated managerial capacity for proactive risk management, employee safety, regulatory compliance, and loss prevention.
RECOMMENDATION:
The Administrative Services Director recommends approval of the CME Side Letter Agreement and amendment to Appendices B-1 and B-3 establishing the Risk Manager classification to reclassify an existing Administrative Specialist position, as submitted.
FISCAL IMPACT: Budgeted: No Supplemental Required: No
This reclassification is estimated to cost up to $43,000 per year at top step of the salary scale. This cost is distributed among all City funds as part of the General Liability and Workers Compensation Reserve Funds’ allocations.
DISCUSSION:
Section 1.4 of the 2026 CME – MOU provides for a Letter Agreement for Variation of Provisions, allowing the City and Union to mutually agree to changes to the MOU when beneficial to both parties.
Pursuant to the Meet and Confer provisions of Section 2R72.250 of the Chico Municipal Code, matters agreed upon through the meet and confer process are incorporated into a written memorandum of understanding or agreement and submitted to the City Council for determination and implementation on matters within the Council’s authority.
The City and CME have completed the meet and confer process regarding the Risk Manager classification and reclassification of an existing Administrative Specialist position. The reclassified position will provide managerial oversight of workers’ compensation, liability and property claims, safety compliance, Cal/OSHA requirements, training and prevention, accident investigations, insurance coordination, and loss-control measures.
The proposed action reclassifies an existing Administrative Specialist position to Risk Manager and does not increase authorized staffing. This will provide managerial-level oversight for risk and safety responsibilities currently overseen within Human Resources in addition to broader operational duties. The classification will be incorporated into the 2026 CME – MOU through the Side Letter Agreement and become effective the pay period following City Council approval.
ATTACHMENTS:
Exhibit A – CME Side Letter Agreement – Risk Manager Classification Exhibit B – Risk Manager Job Description
Exhibit C – Appendices B-1 and B-3
SIDE LETTER AGREEMENT
SIDE LETTER AGREEMENT BETWEEN CITY OF CHICO AND
CHICO MANAGEMENT EMPLOYEES REGARDING THE CREATION AND
ADDITION OF RISK MANAGER CLASSIFICATION
WHEREAS, pursuant to the provisions of the Meyers-Milias-Brown Act (“MMBA”) and Article 1, Section 1.4, entitled “Letter Agreement for Variation of Provisions,” of the Memorandum of Understanding between the City of Chico (“City”) and Chico Management Employees (“CME”), effective January 1, 2026 through December 31, 2027 (“2026 CME-MOU”), this Side Letter Agreement is entered into on September 15, 2026, between the City and CME (“Side Letter Agreement”) as an amendment to the 2026 CME-MOU; and WHEREAS, it is understood and agreed that the specific provisions contained in this Side Letter Agreement shall supersede any previous agreements, whether oral and/or written, regarding the matters contained herein; and
WHEREAS, the City and CME have agreed to add the Risk Manager classification to the CME bargaining unit and allocate the classification to Administrative Services, specifically the Human Resources and Risk Management Division, to provide dedicated managerial oversight of the City’s risk and safety functions, including workers’ compensation claims, liability and property claims, safety compliance requirements, Cal/OSHA regulations, training and prevention programs, accident investigations and reporting, insurance coordination, and loss-control measures; and a job description for the Risk Manager classification has been created and agreed upon by the parties; and
WHEREAS, the Risk Manager position previously existed within the City and was eliminated in 2013. The addition of the classification will restore dedicated management capacity for risk and safety functions; and
WHEREAS, the salary placement for the Risk Manager classification is proposed to be aligned with the Senior Human Resources Analyst CME classification.
POSITION TITLE Effective 9/20/2026 BIWEEKLY PAY RATE ANNUAL PAY RATE Risk Manager $3,535.20 $4,738.40 $91,915.20 $123,198.40 THEREFORE, IT IS AGREED AS FOLLOWS:
The Risk Manager classification shall be added to the 2026 CME-MOU, Appendix 1 – Schedule of Job Titles and Hourly Pay Rates.
The Risk Manager classification shall be included within the CME bargaining unit and allocated to Administrative Services, Human Resources and Risk Management Division.
The addition of the Risk Manager classification shall become effective with September 20, 2026 following City Council approval.
This Side Letter Agreement shall remain in effect for the duration of the 2026 CME-MOU, which expires December 31, 2027. All other sections of the 2026 CME-MOU shall remain in full force and effect.
Any amendments or modifications to this Side Letter Agreement shall be in writing, signed, and dated by both parties.
//
The parties hereto have caused this Side Letter Agreement to be executed on the date signed below.
For Chico Management Employees: For the City of Chico:
Miranda Bowersox (Date) Barbara Martin, (Date)
Administrative Services Director
Amanda McGarr (Date)
Gillian Haen, City Manager (Date)
Approved As To Form:
Tom Bahr (Date)
Ryan R. Jones, City Attorney* (Date)
*Pursuant to The Charter of the City of
Chico, Section 906 (D)
2023-24 2024-25 2025-26
JOB TITLE ACTUAL ACTUAL ACTUAL
COUNCIL
ADOPTED
CHANGE
REQUEST
CITY OF CHICO
FY2026-27 ANNUAL BUDGET
SCHEDULE OF JOB TITLE ALLOCATIONS TO DEPARTMENTS
FULL-TIME (EXEMPT & CLASSIFIED) AND HOURLY-EXEMPT POSITIONS 2026-27
Human Resources & Risk Management
A. Full Time (Exempt & Class)
0 0 1 1
0 0 1 1 -1
0 1 1 1
1 0 0 0
1 1 1 1
3 3 2 2
1 1 0 0
0 0 0 0
0 0 0 0 1
1 1 1 1
Administrative Assistant
Administrative Specialist
Deputy Director of Human Resources & Risk Mgmt
Director of Human Resources & Risk Management
Human Resources Analyst
Human Resources Technician
Office Assistant
Principal Human Resources Analyst
Risk Manager
Senior Human Resources Analyst
DIVISION TOTAL: 7 7 7 7
Appendix B-3
Appendix B-1 CITY OF CHICO
FY2025-2026 ANNUAL BUDGET
EMPLOYEE PAY SCHEDULES
B. Basic Pay Schedule (Effective 7/12/2026 - updated 9/20/26)
POSITION TITLE A B C D E F G MINIMUM MAXIMUM MINIMUM MAXIMUM Accountant $54.51 $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $4,360.80 $5,844.00 $113,380.80 $151,944.00 Accounting Manager $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20 Airport Manager $50.67 $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $4,053.60 $5,431.20 $105,393.60 $141,211.20 Assistant Park Manager $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Assistant to the City Manager $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Budget and Treasury Manager $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20 Building Official $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20 City Engineer $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20 Cyber Security Analyst $50.67 $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $4,053.60 $5,431.20 $105,393.60 $141,211.20 Development Engineer $50.67 $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $4,053.60 $5,431.20 $105,393.60 $141,211.20 Economic Development Manager $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20 Environmental Programs Manager $54.51 $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $4,360.80 $5,844.00 $113,380.80 $151,944.00 Facilities Manager $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Financial Systems Engineer $50.67 $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $4,053.60 $5,431.20 $105,393.60 $141,211.20 Fleet Manager $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Homeless Housing Coordinator $43.14 $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $3,451.20 $4,625.60 $89,731.20 $120,265.60 Housing Manager $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20 Housing Program Analyst $43.14 $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $3,451.20 $4,625.60 $89,731.20 $120,265.60 Information Systems Manager $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20 Laboratory Technical Manager $43.14 $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $3,451.20 $4,625.60 $89,731.20 $120,265.60 Management Analyst $43.14 $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $3,451.20 $4,625.60 $89,731.20 $120,265.60 Park and Natural Resources Manager $54.51 $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $4,360.80 $5,844.00 $113,380.80 $151,944.00 Payroll Manager $43.14 $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $3,451.20 $4,625.60 $89,731.20 $120,265.60 Principal Planner $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20 Project Manager $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Project Manager (Facilities) $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Projects and Grants Manager $47.84 $50.23 $52.74 $55.38 $58.15 $61.06 $64.11 $3,827.20 $5,128.80 $99,507.20 $133,348.80 Public Information Officer $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Public Works Administration Manager $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Public Works Manager $50.67 $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $4,053.60 $5,431.20 $105,393.60 $141,211.20 Purchasing Manager $47.84 $50.23 $52.74 $55.38 $58.15 $61.06 $64.11 $3,827.20 $5,128.80 $99,507.20 $133,348.80 Regulatory Compliance Manager $54.51 $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $4,360.80 $5,844.00 $113,380.80 $151,944.00 Risk Manager $44.19 $46.40 $48.72 $51.16 $53.72 $56.41 $59.23 $3,535.20 $4,738.40 $91,915.20 $123,198.40 Senior Civil Engineer $62.61 $65.74 $69.03 $72.48 $76.10 $79.90 $83.90 $5,008.80 $6,712.00 $130,228.80 $174,512.00 Senior Construction Inspector $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Senior Development Engineer $62.61 $65.74 $69.03 $72.48 $76.10 $79.90 $83.90 $5,008.80 $6,712.00 $130,228.80 $174,512.00 Senior Human Resources Analyst $44.19 $46.40 $48.72 $51.16 $53.72 $56.41 $59.23 $3,535.20 $4,738.40 $91,915.20 $123,198.40 Senior Information Systems Analyst $50.67 $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $4,053.60 $5,431.20 $105,393.60 $141,211.20 Senior Communications Analyst $50.67 $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $4,053.60 $5,431.20 $105,393.60 $141,211.20 Senior Plans Examiner $54.51 $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $4,360.80 $5,844.00 $113,380.80 $151,944.00 Senior Planner $54.51 $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $4,360.80 $5,844.00 $113,380.80 $151,944.00 Senior Traffic Engineer $62.61 $65.74 $69.03 $72.48 $76.10 $79.90 $83.90 $5,008.80 $6,712.00 $130,228.80 $174,512.00 Urban Forest Manager $46.83 $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $3,746.40 $5,020.80 $97,406.40 $130,540.80 Wastewater Treatment Manager $57.52 $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $4,601.60 $6,167.20 $119,641.60 $160,347.20
HOURLY PAY RATES BIWEEKLY PAY RATE ANNUAL PAY RATE
Appendix B-1 CITY OF CHICO
FY2025-2026 ANNUAL BUDGET
EMPLOYEE PAY SCHEDULES
C. Basic Pay Schedule (Effective 7/11/2027)
POSITION TITLEABCDEFG MINIMUM MAXIMUM MINIMUM MAXIMUM
Accountant $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $76.70 $4,579.20 $6,136.00 $119,059.20 $159,536.00 Accounting Manager $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20 Airport Manager $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $71.28 $4,256.00 $5,702.40 $110,656.00 $148,262.40 Assistant Park Manager $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Assistant to the City Manager $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Budget and Treasury Manager $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20 Building Official $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20 City Engineer $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20 Cyber Security Analyst $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $71.28 $4,256.00 $5,702.40 $110,656.00 $148,262.40 Development Engineer $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $71.28 $4,256.00 $5,702.40 $110,656.00 $148,262.40 Economic Development Manager $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20 Environmental Programs Manager $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $76.70 $4,579.20 $6,136.00 $119,059.20 $159,536.00 Facilities Manager $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Financial Systems Engineer $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $71.28 $4,256.00 $5,702.40 $110,656.00 $148,262.40 Fleet Manager $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Homeless Housing Coordinator $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $60.71 $3,624.00 $4,856.80 $94,224.00 $126,276.80 Housing Manager $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20 Housing Program Analyst $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $60.71 $3,624.00 $4,856.80 $94,224.00 $126,276.80 Information Systems Manager $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20 Laboratory Technical Manager $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $60.71 $3,624.00 $4,856.80 $94,224.00 $126,276.80 Management Analyst $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $60.71 $3,624.00 $4,856.80 $94,224.00 $126,276.80 Park and Natural Resources Manager $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $76.70 $4,579.20 $6,136.00 $119,059.20 $159,536.00 Payroll Manager $45.30 $47.57 $49.95 $52.45 $55.07 $57.82 $60.71 $3,624.00 $4,856.80 $94,224.00 $126,276.80 Principal Planner $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20 Project Manager $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Project Manager (Facilities) $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Projects and Grants Manager $50.23 $52.74 $55.38 $58.15 $61.06 $64.11 $67.32 $4,018.40 $5,385.60 $104,478.40 $140,025.60 Public Information Officer $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Public Works Administration Manager $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Public Works Manager $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $71.28 $4,256.00 $5,702.40 $110,656.00 $148,262.40 Purchasing Manager $50.23 $52.74 $55.38 $58.15 $61.06 $64.11 $67.32 $4,018.40 $5,385.60 $104,478.40 $140,025.60 Regulatory Compliance Manager $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $76.70 $4,579.20 $6,136.00 $119,059.20 $159,536.00 Risk Manager $46.40 $48.72 $51.16 $53.72 $56.41 $59.23 $62.19 $3,712.00 $4,975.20 $96,512.00 $129,355.20 Senior Civil Engineer $65.74 $69.03 $72.48 $76.10 $79.90 $83.90 $88.10 $5,259.20 $7,048.00 $136,739.20 $183,248.00 Senior Construction Inspector $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Senior Development Engineer $65.74 $69.03 $72.48 $76.10 $79.90 $83.90 $88.10 $5,259.20 $7,048.00 $136,739.20 $183,248.00 Senior Human Resources Analyst $46.40 $48.72 $51.16 $53.72 $56.41 $59.23 $62.19 $3,712.00 $4,975.20 $96,512.00 $129,355.20 Senior Information Systems Analyst $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $71.28 $4,256.00 $5,702.40 $110,656.00 $148,262.40 Senior Communications Analyst $53.20 $55.86 $58.65 $61.58 $64.66 $67.89 $71.28 $4,256.00 $5,702.40 $110,656.00 $148,262.40 Senior Plans Examiner $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $76.70 $4,579.20 $6,136.00 $119,059.20 $159,536.00 Senior Planner $57.24 $60.10 $63.10 $66.26 $69.57 $73.05 $76.70 $4,579.20 $6,136.00 $119,059.20 $159,536.00 Senior Traffic Engineer $65.74 $69.03 $72.48 $76.10 $79.90 $83.90 $88.10 $5,259.20 $7,048.00 $136,739.20 $183,248.00 Urban Forest Manager $49.17 $51.63 $54.21 $56.92 $59.77 $62.76 $65.90 $3,933.60 $5,272.00 $102,273.60 $137,072.00 Wastewater Treatment Manager $60.40 $63.42 $66.59 $69.92 $73.42 $77.09 $80.94 $4,832.00 $6,475.20 $125,632.00 $168,355.20
HOURLY PAY RATES BIWEEKLY PAY RATE ANNUAL PAY RATE