DATE: August 18, 2026
TO: Mayor and City Council
FROM: City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute a Memorandum of Understanding Between the City of Hayward and the County of Alameda for the Administration of the Russell City Redress Fund and Phase 1 Payments and Related Actions
RECOMMENDATION
That the City Council adopts the attached resolution (Attachment II) 1) authorizing the City Manager to execute a Memorandum of Understanding (MOU) between the City of Hayward and the County of Alameda for administration and governance of the Russell City Redress Fund and Phase 1 payments; 2) accepting a $100,000 contribution from the Alameda County Office of Education (ACOE) and authorizing its transfer to the Alameda County Auditor-Controller for deposit in the Russell City Redress Fund; 3) authorizing receipt of up to $100,000 in additional contributions from other entities or persons and transfer of those contributions to the Alameda County Auditor-Controller; and 4) authorizing the City Manager to take related budgetary actions.
SUMMARY
Russell City was part of unincorporated County of Alameda until its annexation into the City of Hayward in 1964. During the 1950s and 1960s, approximately 1,400 residents were displaced through the acquisition of nearly 700 parcels of land, resulting in la sting economic and community harm.
Following formal apologies by the City and County and an extensive community process, the City of Hayward, County of Alameda, and ACOE committed a combined $1.3 million to the Russell City Redress Fund. On August 4, 2026, the Alameda County Board of Superv isors approved an MOU with the City establishing the administration and governance of the Redress Fund and authorizing the County Auditor-Controller to issue Phase 1 payments consistent with the MOU. 1 Phase 1 prioritizes eligible applicants who personally owned and resided in residential property in Russell City that was acquired by Alameda County through eminent
1 County of Alameda Board of Supervisors Regular Meeting Agenda, August 4, 2026, item 129:
https://www.alamedacountyca.gov/board/bos_calendar/documents/DocsAgendaReg_08_04_26/GENERAL%20ADMI NISTRATION/Set%20Matter%20Calendar/Supervisor%20M%c3%a1rquez_409832.pdf
domain between January 1, 1961 and December 31, 1964. Eligible Phase 1 households may receive payments of up to $25,000.
The recommended action would approve the City's participation in the MOU, establish the administrative and governance framework for the Redress Fund, authorize transfer of the City's and ACOE's committed funds to the County Auditor-Controller, and allow implementation of Phase 1 payments.
FISCAL IMPACT
There is no new fiscal impact to the recommended action. The City Council previously appropriated $250,000 as part of the FY 2026/27 budget adoption. The recommended action will authorize transfer of these funds to the County’s Auditor -Controller for deposit in the Russell City Redress Fund. The recommended action will also allow the City to accept ACOE’s $100,000 contribution to the Russell City Redress Fund and transfer of this $100,000 to the County Auditor-Controller. This transfer has been deemed efficient for accounting purposes.
BACKGROUND
Russell City was founded in 1853 as an unincorporated community in Alameda County. In the 1950s and 1960s, Russell City residents were displaced as land was acquired for commercial and industrial development. Approximately 700 parcels were acquired and rou ghly 1,400 residents were forced to relocate. Russell City was annexed into the City of Hayward in 1964.
The City issued its formal apology on November 16, 2021, based on the recommendation of the Community Services Commission, acknowledging the City’s role in the atrocities of Russell City.
In 2022, the City launched the Russell City Reparative Justice Proje ct, which included the creation of the Russell City Community Advisory Committee which made 26 recommendations to the City Council in March 2024. Following further input from the community, the City Council created the Russell City Redress Fund in 2025 with a commitment of $250,000.
On June 27, 2023, the Board of Supervisors of the County of Alameda issued its formal apology for its role in the displacement and destruction of Russell City during the 1950s and 1960s.
Through that action, the County committed to pursuing meaningful redr ess for former residents and their descendants. Since July 2025, the Board of Supervisors has appropriated $950,000 to be directed to the Russell City Redress Fund.
Along with the City of Hayward and the County of Alameda, the ACOE has appropriated $100,000 in support of the Russell City Redress Fund, for a total of $1.3 million.
DISCUSSION
Based on available funding and fiscal constraints, City and County staff have determined that eligible Phase 1 applicants will receive Redress Fund payments of up to $25,000 per household.
This payment amount has been derived following consideration of the current appropriations from the three cooperating agencies and the estimated number of qualified recipients. When
Phase 1 disbursements are completed, future City Council and Board of Supervisors will be required to approve subsequent phases of program eligibility and payments.
City Council approval of the recommended resolution and MOU will establish the administrative and governance framework necessary to implement the Russell City Redress Fund and authorize payments through the County Auditor-Controller’s office.
The administrative and governance structure includes a Working Group comprising County Supervisor Márquez, City Council Member Andrews, and City Council Member Roche. Pursuant to the MOU, the County representative’s vote will be counted as two votes, while each City representative will have one vote. The Working Group will provide policy direction to City and County staff members who will support the project over the two-year duration of the MOU. The Working Group is authorized to make final decisions concerning administration of the Redress Fund.
A separate three-member Eligibility Review Subcommittee will review applications and make final and binding eligibility and payment determinations. The City Manager and County Administrator will each appoint one member to the Subcommittee, and those two members will select a third member as set out in detail in the MOU. The decision -making process is designed to assure fairness and objectivity and avoid political bias or conflicts of interest.
The City Manager will serve as the Authorized Representative for disbursement requests.
Following an eligibility determination by the Subcommittee, the Authorized Representative will submit the required documentation and payment request to the County Auditor-Controller.
The MOU will be effective from August 18, 2026 through August 17, 2028, unless extended by mutual written agreement.
Phase 1 Eligibility and Payments
Phase 1 prioritizes former Russell City homeowners because of the urgency associated with aging former residents. To qualify for Phase 1, an applicant must have resided in and personally owned residential property in Russell City between January 1, 1961 and December 31, 1964, and the property must have been acquired by Alameda County through eminent domain during that period. Funds are allocated on a per-household basis.
Eligible Phase 1 households may receive payments of up to $25,000. The payment amount was developed after consideration of the current Redress Fund balance and the estimated number of qualified recipients. All payments remain subject to satisfaction of the adopted eligibility criteria, the number of eligible applicants, and availability of funds.
After Phase 1 funds have been distributed, the Working Group may develop preliminary payment amounts and eligibility criteria for future phases. Any eligibility criteria for future phases must be approved by both the City and County through an amendment to the MOU, requiring future action by the City Council and Board of Supervisors.
STRATEGIC ROADMAP
This agenda item is associated with a previous project from the FY25 Strategic Roadmap:
• Priority: Cultivate Vibrant Neighborhoods
o Objective: Support Volunteerism, Civic Leadership, and Community -Led Initiatives
▪ Project: Allocate and develop resources to implement approved reparative justice actions resulting from community -led input on the Russell City Reparative Justice Project
PUBLIC CONTACT
The Russell City Reparative Justice Project supported the Russell City Community Advisory Committee starting in December 2022, which ultimately made 26 recommendations to the City Council in March 2024. There were numerous workshops conducted online over the summer of 2024 to obtain community input on the 10 priority recommendations among the advisory committee’s 26 recommendations. In September 2025, an additional survey was conducted, resulting in over 250 responses from the Russell City community identifying and supporting priorities for how funds could be allocated if appropriated. In February 2026, the City Council took public action to authorize steps towards an agreement with the County of Alameda that culminated in the August 4, 2026 meeting of the B oard of Supervisors which was widely attended by both in-person and online members of the Russell City community.
NEXT STEPS
If the City Council adopts the recommended resolution, the next steps will include appointment of the Eligibility Review Subcommittee and publication of the application and criteria for potential Phase 1 recipients. These next steps are anticipated to take 60 to 90 days.
Prepared and
Recommended by: Michael Lawson, City Attorney
Approved by:
_____________________________
Jennifer Ott, City Manager