A significant discussion unfolded at the City Council meeting in Chico on February 3, 2025, as officials deliberated the potential outsourcing of jobs within the Department of Public Works. The council chambers were filled with over 30 employees clad in orange, highlighting their opposition to the proposal.
During the public comment section, employee Nels Rasmussen emphasized the vital role public works plays in maintaining the city’s infrastructure. He quoted the department’s mission statement, warning that outsourcing could shift the focus from community service to profit for private companies. “If you sell out public works, those last nine words will change to ‘the cost efficiency and profit of private groups,’” he said, underlining the stakes involved in the council’s decision.
Public works directors Skyler Lipski and Brendan Ottoboni presented data comparing the costs and effectiveness of contracted jobs versus in-house services. They noted that while outsourcing is sometimes necessary due to workload spikes or the need for specialized expertise, it frequently proves more expensive and less effective. Lipski revealed that approximately 30% of services in his department are currently outsourced, indicating a hybrid model of service provision.
The council’s discussions were prompted by concerns raised by Tom van Overbeek regarding the city’s substantial $181 million unfunded pension liability to CalPERS, the California Public Employees’ Retirement System. Van Overbeek addressed the public works employees, assuring them of the council’s commitment to maintaining their pension benefits. He stated, “We have a commitment to you… so that when you come to retirement, you have a pension, right? In order for us to be able to honor that obligation, we need to be very careful not to over commit.”
Eight members of the public voiced their opinions during the meeting, with most expressing support for keeping jobs within the city. Speaker Mat Bocior highlighted the importance of local spending, stating, “I know that you understand that $1 spent locally is spent three, six more times locally.” In contrast, Brandon Slater from the Chico Chamber of Commerce expressed gratitude for the discussion, acknowledging the reality of the unfunded liability and the complexities involved in the council’s decision-making process.
Councilor Katie Hawley pointed out that outsourcing considerations are part of each budget cycle, emphasizing that all departments face this scrutiny. She cautioned against what she termed “department favoritism,” urging the council to be mindful of the broader implications of their discussions. “Every single time we continue this hurtful pattern… staff notices and the community notices,” she remarked.
Councilor Bryce Goldstein echoed the sentiment against outsourcing, stating, “I’m in strong support of keeping as many jobs as possible within the city of Chico because I support keeping our dollars within the city.”
Mayor Kasey Reynolds expressed her appreciation for the dialogue, noting that discussions like these are crucial outside of the busy budget season. “I think this was great because everybody learned something tonight that they didn’t know before,” she concluded, emphasizing the value of the meeting.
As the council continues to explore the implications of outsourcing, the discussions reflect a broader concern for maintaining local employment and fiscal responsibility in the face of rising pension liabilities.
