Chico City Council convened on February 3, 2025, to discuss the potential outsourcing of services within the Department of Public Works. The meeting drew significant public attention, with many employees from the department attending in bright orange shirts to express their concerns.
During public comments, Nels Rasmussen emphasized the importance of public works to the community. He stated, “We build, manage, and protect the city’s largest asset, public infrastructure, for the use and enjoyment of our Chico community.” He warned that outsourcing would shift the focus from community needs to the profit motives of private entities.
The council listened to presentations from public works directors Skyler Lipski and Brendan Ottoboni, who outlined the current hybrid model of service delivery. They noted that about 30% of services are currently outsourced, primarily for workload spikes or specialized needs. Lipski highlighted that outsourcing can often lead to increased costs and reduced effectiveness.
Despite the discussions, the council did not reach a decision regarding outsourcing. They did vote on a separate agenda item, approving a 15 mph speed limit for e-bikes in lower Bidwell Park. Additionally, Councilor Tom van Overbeek requested a report from Chico Police Chief Billy Aldridge on the department’s hiring and training practices at the next meeting.
The conversation around outsourcing was prompted by concerns raised by van Overbeek about the city’s $181 million unfunded pension liability associated with CalPERS, the California Public Employees’ Retirement System. This system is the largest public pension fund in the United States, providing retirement and health benefits for public employees across California.
In his address to the packed chamber, van Overbeek reassured public works employees, stating, “We have a commitment to you… so that when you come to retirement, you have a pension, right? And in order for us to be able to honor that obligation, we need to be very careful not to over commit.”
Eight speakers took to the floor during the meeting, most of whom voiced support for maintaining public works jobs within the city. Mat Bocior emphasized the economic impact of local spending, stating, “I know that you understand that $1 spent locally is spent three, six more times locally.”
Conversely, Brandon Slater, representing the Chico Chamber of Commerce, acknowledged the gravity of the unfunded liability issue. He remarked, “It’s kind of the elephant in the room that nobody wants to talk about,” and urged the council to weigh their options carefully.
Councilor Katie Hawley stressed the need for fairness across all departments, indicating that outsourcing should not solely focus on public works. “Every single time we continue this hurtful pattern of department favoritism, staff notices and the community notices,” she said.
Councilor Bryce Goldstein echoed the sentiment against outsourcing, advocating for the retention of jobs within Chico to keep local dollars circulating in the community. Meanwhile, Councilor Mike O’Brien recognized the importance of discussing such issues openly. Mayor Kasey Reynolds welcomed the ongoing conversation, noting that it provided a valuable opportunity to gather more information outside of the typical budget discussions.
As the meeting concluded, it became evident that the council must navigate a complex landscape of fiscal responsibility while considering the impact on public service jobs and the community. The challenges posed by outsourcing and unfunded liabilities will likely continue to be pivotal topics in future council meetings.
