RESOLUTION NO XX
Resolution of the City of Richmond, California in accepting the Public Bank East Bay Viability Study and acknowledging the City of Richmond as one of the founding member cities.
WHEREAS, the City of Richmond intends to be one of the founding owners of the Public Bank East Bay; and
WHEREAS, the other proposed founding owners of the Public Bank East Bay are the cities of Berkeley and Oakland; and
WHEREAS, the County of Alameda is proposed to be a non-founding owner (counties cannot be founding members as per state law)) of the Public Bank East Bay that will take an ownership stake shortly after the Public Bank East Bay’s founding; and
WHEREAS, Contra Costa Supervisor John Gioia has indicated his interest in this endeavor and will be addressing this with the entire Contra Costa Board of Supervisors; and
WHEREAS, the Public Bank East Bay’s proposed governance plan requires that each member city designate one councilmember to sit on the Public Bank East Bay’s Board of Directors; and
WHEREAS, the California Public Banking Act mandates that “a local agency shall conduct a study to assess the viability of the proposed public bank,” hereafter referred to as the Viability Study; and
WHEREAS, the California Public Banking Act mandates that “The study required… shall be presented to and approved by the governing body of the local agency;” and
WHEREAS, the attached 2022 Public Bank East Bay Viability Study proposes lending in four main areas: affordable housing, small businesses, electrification/greening, and refinancing municipal bonds, and concludes that the Public Bank East Bay will be fiscally viable; and
WHEREAS, the California Public Banking Act further mandates that “a motion to move forward with an application for a public banking charter shall be approved by a majority vote of the governing body at a public meeting.”
NOW THEREFORE BE IT RESOLVED, that the Richmond City Council approves the Public Bank East Bay Viability Study; and
BE IT FURTHER RESOLVED, that the City of Richmond agrees to be a founding member of the Public Bank East Bay as part of the application for a public banking charter; and
BE IT FURTHER RESOLVED, that the Richmond City Council designates Councilmember Gayle McLaughlin as a representative to the Friends of the Public Bank East Bay to help guide the Public Bank East Bay’s opening process and to serve as Richmond’s initial representative on the Public Bank East Bay’s Board of Directors; and
BE IT FURTHER RESOLVED, that the City will amend its investment policy as follows:
Public Bank Obligations: Any commercial paper, debt securities, or other obligations of a public bank, a public bank as defined in California Government Code Section 57600-57607. --Maximum Maturity: [5 year]
--Maximum Portfolio Exposure: N.A.
--Credit Requirement: Prudent Standard Applies
BE IT FURTHER RESOLVED, that the Richmond City Council request that the Alameda County Supervisors commit to join the Public Bank East Bay as a full voting member immediately upon California state approval of the Public Bank East Bay’s charter application, and that the Contra Costa Board of Supervisors consider joining as well; and
BE IT FINALLY RESOLVED, that this Resolution be conveyed immediately to the City Councils of Berkeley and Oakland and to the Alameda County and Contra Costa County Board of Supervisors.
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I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held on INSERT DATE, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
CLERK OF THE CITY OF RICHMOND
Approved:
Mayor
Approved as to form:
City Attorney