MEETING(S) - (Meetings are virtual)
RICHMOND CITY COUNCIL
Tuesday, May 3, 2022, 4:00 p.m.
Community Services Building
440 Civic Center Plaza
Richmond, CA 94804
Members:
Thomas K. Butt, Mayor
Demnlus Johnson III, Councilmember at Large
NathanielBates, Councilmember at Large
Claudia Jimenez, Councilmember District 6
Eduardo Martinez, Vice Mayor at Large
Melvin Willis, Councilmember District 1
Gayle McLaughlin, Councilmember District 5
Link to City Council Agendas/Packets
http://www.ci.richmond.ca.us/4157/City-ofRichmond-Council-Meetings Register to receive notification of new agendas, etc.
http://www.ci.richmond.ca.us/list.aspx
CORONAVIRUS DISEASE (COVID-19) ADVISORY
PURSUANT to the Governor of the State of California’s Assembly Bill 361 and in the interest of the public health and safety, attendance at the City of Richmond City Council meeting will be limited to Council members, essential City of Richmond staff, and members of the news media. Public comment will be confined to items appearing on the agenda and will be limited to the methods provided below.
How to watch the meeting from home:
KCRT – Comcast Channel 28 or AT&T Uverse Channel 991.
Livestream online at http://www.ci.richmond.ca.us/3178/KCRT-Live2.
Public comment may be submitted by mail, eComment, email and/or Zoom video conference in the manner that follows, provided that no member of the public may submit more than one verbal comment per agenda item.
Via mail: received by 1:00 p.m. the day of the meeting, sent to 450 Civic Center Plaza, 3rd Floor, Office of the Clerk, Richmond, CA 94804.
Via eComments: eComments are available once an agenda is published. Locate the meeting in "upcoming meetings" and click the comment bubble icon. Click on the item you wish to comment on. eComments can be submitted when the agenda is published and until the conclusion of public comments for the agenda item. eComments can be viewed by the City Council and members of the public as they are submitted.
Email your comment to [email protected] should you have difficulty submitting an eComment during a meeting.
Via email: to [email protected] by 1:00 p.m. the day of the meeting.
Emails MUST contain in the subject line 1) public comments – Open Session prior to Closed Session; 2) public comments – Open Forum; or 3) public comments agenda item #__ [include the agenda item number]. All such email with correctly labeled subject lines will be posted on-line and emailed to the City Council before the meeting is called to order. Email received after 1:00 p.m. will be posted on-line following the meeting as part of the supplemental materials attached to the meeting minutes.
Via Zoom by video conference: for Open Session and City Council: Please click the link below to join the webinar:
https://zoom.us/j/99312205643?pwd=MDdqNnRmS2k4ZkRTOWhlUldQOUF1Zz09 Passcode: ccmeeting
By iPhone one-tap: US: +16699006833,,99312205643# or +13462487799,,99312205643# By Telephone: Dial (for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 312 626 6799 or +1 929 205 6099 or +1 301 715 8592 Webinar ID: 993 1220 5643
International numbers available: https://zoom.us/u/aehrwCgISx
To comment by video conference: click on the Participants button at the bottom of your screen and select the “Raise Your Hand” button to request to speak when Public Comment is being asked for. When called upon, press the unmute button. After the allotted time, you will then be re-muted. **
To comment by phone: you will be prompted to “Raise Your Hand” by pressing “*9” to request to speak when Public Comment is asked for. When called upon, you will be asked to unmuted by pressing *6. After the allotted time, you will then be re-muted. Instructions of how to raise your hand by phone are available May 3, 2022, CC Meeting
at:
https://support.zoom.us/hc/en-us/articles/201362663 -Joining-a-meeting-by-phone. **
**The mayor will announce the agenda item number and open public comment when appropriate.
The City cannot guarantee that its network and/or the site will be uninterrupted. To ensure that the City Council receives your comments, you are strongly encouraged to submit your comments in writing in advance of the meeting.
AB 361 Procedures in the Event of Technical Difficulties: In the event the meeting broadcast is disrupted, or if a technical issue on the agency's end disrupts public participation, the legislative body board cannot take any further action on the agenda until the technical issue is resolved.
Properly labeled public comments will be considered a public record, put into the official meeting record, available after the meeting as supplemental materials, and will be posted as an attachment to the meeting minutes when the minutes are posted: http://www.ci.richmond.ca.us/Archive.aspx?AMID=31.
Procedures for Removing Items from the Consent Calendar:
Members of the public who request to remove an item from the consent calendar must first discuss the item with a staff member by phone or a back-and-forth email discussion, and state the name of the staff member when requesting removal of the item from the consent calendar (by 2 p.m. the day of the meeting).
Any member of the City Council who would like to remove an item from the consent calendar must notify the appropriate staff person and the City Clerk’s Office prior to the meeting. Although members of the City Council are encouraged to ask questions and share concerns with staff ahead of the meeting, they are not required to do so.
The Clerk’s Office must be informed of any requests to remove items from the Consent Calendar. Items removed from the Consent Calendar shall be placed at the end of the agenda for consideration.
Accessibility for Individuals with Disabilities:
Upon request, the City will provide for written agenda materials in appropriate alternative formats, or disability-related modification or accommodation, including auxiliary aids or services and sign language interpreters, to enable individuals with disabilities to participate in and provide comments at/related to public meetings. Please submit a request, including your name, phone number and/or email address, and a description of the modification, accommodation, auxiliary aid, service or alternative format requested at least two days before the meeting. Requests should be emailed to [email protected] or submitted by phone at 510-620-6513, ext. 9, or 510-620-6509. Requests made by mail to City Clerk’s Office, City Council meeting, 450 Civic Center Plaza, Richmond, CA 94804 must be received at least two days before the meeting. Requests will be granted whenever possible and resolved in favor of accessibility.
Effect of Advisory on In-person public participation:
During the pendency of Assembly Bill 361, the language in this Advisory portion of the agenda supersedes any language contemplating in-person public comment.
May 3, 2022, CC Meeting
Pages
A. OPEN SESSION TO HEAR PUBLIC COMMENT BEFORE CLOSED SESSION 4:00 p.m.
B. ROLL CALL
C. CLOSED SESSION
.
C.1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957)
Title: City Attorney•
C.2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (paragraph (1) of Subdivision [d] of Government Code Section 54956.9) SPRAWLDEF et al. v. City of Richmond•
The Guidiville Rancheria of California, et al. v. The United States of America, et. al.
•
North Coast Rivers Alliance et al./Point Molate Alliance et al. v. City of Richmond
•
City of Richmond v. Thomas K. Butt•
C.3. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to paragraph (2) or (3) of Subdivision (d) [as applicable] of Government Code Section 54956.9) Three cases:•
In light of the California Court of Appeal's decision in Fowler v. City of Lafayette, the City Attorney's Office is attaching to this agenda four communications regarding the amended judgment and various agreements related to Point Molate. These letters provide the existing facts and circumstances for going into closed session on these items pursuant to California Government Code Section 54956.9(d)(2) and (e)(3).
C.4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (initiation of litigation pursuant to paragraph (4) of Subdivision (d) of Government Code Section 54956.9)
One case•
May 3, 2022, CC Meeting
C.5. CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6)
Agency Representatives: Jaclyn Gross and Anil Comelo•
Employee organizations:
SEIU Local 1021 Full Time Unit and Part Time Unit1.
IFPTE Local 21 Mid-Level Management Unit and Executive
Management Units
2. Richmond Police Officers Association RPOA3.
Richmond Police Management Association RPMA4.
IAFF Local 1885.
Richmond Fire Management Association RFMA 6.
C.6. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8)
Property: 1324 Canal Boulevard (General Warehouse, Port of Richmond)
Agency negotiator: Alan Wolken
Negotiating parties: Richmond Grown
Under negotiation: Price and terms of payment
•
D. PUBLIC COMMENT BEFORE CLOSED SESSION (Public comment on Closed Session items only)
E. ADJOURN TO CLOSED SESSION
________________________________________________________ May 3, 2022, CC Meeting
F. REGULAR MEETING OF THE RICHMOND CITY COUNCIL
6:30 p.m.
G. ROLL CALL
H. PUBLIC COMMENT INSTRUCTIONAL VIDEO
I. STATEMENT OF CONFLICT OF INTEREST
J. AGENDA REVIEW
K. REPORT FROM THE CITY ATTORNEY OF FINAL DECISIONS MADE DURING
CLOSED SESSION
L. REPORT FROM THE CITY MANAGER (public comment allowed under Open Forum) M. ABATEMENT REPORT FROM THE PUBLIC WORKS DIRECTOR - 1st Tuesday (public comment allowed under Open Forum)
N. OPEN FORUM FOR PUBLIC COMMENT
O. CITY COUNCIL CONSENT CALENDAR
O.1. City Attorney's Office
O.1.a. Point Molate Legal Services Agreement with Downey Brand and Amendment Related to Claims and Litigation
12 APPROVE a third amendment with Downey Brand, for $60,000, for a not to exceed total amount of $1,010,000, for the Point Molate litigation and claim, and a $60,000 legal services agreement (LSA) for Guidiville work – City Attorney’s Office (Dave Aleshire 510-620- 6509).
O.1.b. Approve second amendment to a legal services agreement with Meyers Nave LLP and request appropriation from the General Fund 73 APPROVE a second amendment in the amount of $215,000 to a legal services agreement with the law firm of Meyers Nave, LLP, for a total amount not to exceed $300,000; APPROPRIATE $215,000 from the general fund to pay for the second contract amendment; RATIFY the first amendment executed by the Vice Mayor; and AUTHORIZE the Vice Mayor to execute the second amendment and any other necessary documents – City Attorney’s Office (Heather McLaughlin 510-620-6509).
O.2. City Manager's Office
O.2.a. Downtown Richmond Property and Business Improvement District (DRPBID) Renewal
104
ADOPT a resolution authorizing the city manager to execute all documents on behalf of the City of Richmond in support of the renewal of the Downtown Richmond Property and Business
Improvement District (DRPBID) – City Manager’s Office (Shasa Curl/Thomas Omolo 510-620-5560).
May 3, 2022, CC Meeting
O.3. Finance Department
O.3.a. Investment and cash balance report for the month of March 2022 159 RECEIVE the City’s Investment and Cash Balance Report for the month of March 2022 – Finance Department (Delmy Cuellar 510-620- 6790).
O.3.b. Fiscal Year 2021-2022 Third Quarter Budget report and Overtime Report
175
RECEIVE the Fiscal Year 2021-2022 third quarter budget report and the overtime report for the period of July 1, 2021, through March 31, 2022 – Finance Department (Delmy Cuellar/Mubeen Qader 510-412- 2077).
O.3.c. Write-Off of Uncollectable Richmond Housing Authority Debt 234 APPROVE the write-off of uncollectible Richmond Housing Authority receivables in the amount of $10,442,853 – Finance Department (Anil Comelo/Delmy Cuellar 510-620-6740).
O.3.d. Contract for Collection Services 261
APPROVE a three-year contract with Rash, Curtis & Associates to provide collection services in the Finance Department, with costs for services paid on a contingency fee of revenue collected, with an option to renew the contract for two years based on the same terms if approved by both parties – Finance Department (Delmy Cuellar 510- 620-6740/Antonio Banuelos 510-620-6741).
O.4. Human Resources
O.4.a. Approve Legal Services Agreements with Three Firms to Perform Confidential Personnel Investigations
339
APPROVE a first amendment to the legal services agreement with Kramer Workplace Investigations and a second amendment to the legal services agreement with Ellis Investigations and an initial legal services agreement with Boucher Labor and Employment Law.
Terms of these agreements are until June 30, 2024, for an amount not to exceed $50,000 per agreement, to conduct confidential personnel investigations for the Human Resources Department – Human Resources Department (Anil Comelo/Sharrone Taylor 510- 620-6600).
May 3, 2022, CC Meeting
O.5. Information Technology
O.5.a. Pole License Agreement for Small Cell Sites on City Infrastructure 410 ADOPT a resolution approving a Pole License Agreement with New Cingular Wireless PCS, LLC, that establishes the procedures, terms, and conditions under which New Cingular Wireless is permitted to deploy “small cell” facilities on City-owned streetlights, traffic signals, and other vertical infrastructure, for a term of ten years – Information Technology Department (Sue Hartman 510-620-6874).
O.6. Library and Community Services
O.6.a. Accept and Appropriate California State Library State-Funded English as a Second Language Service Project Grant Award.
590
ADOPT a resolution to accept and appropriate into the Fiscal Year 2021-2022 budget a California State Library grant, in the amount of $21,700, to support English as a Second Language educational services offered at the library’s literacy services program, LEAP - Library and Community Services Department (Melinda Cervantes 510-620-5452/Abigail Sims-Evelyn 510-307-8082).
O.7. Mayor's Office
O.7.a. CalFresh Awareness Month – May 2022 626
PROCLAMATION declaring May 2022 as CalFresh Awareness
Month in the City of Richmond – Mayor’s Office (Mayor Tom Butt 510-620-6503).
O.7.b. Preservation Month – May 2022 629
PROCLAMATION declaring May 2022 as Preservation Month in the City of Richmond – Mayor’s Office (Mayor Tom Butt 510-620-6503).
O.7.c. Military Appreciation Month – May 2022 632
PROCLAMATION declaring May 2022 as Military Appreciation Month in the City of Richmond – Mayor’s Office (Mayor Tom Butt 510-620- 6503).
O.7.d. Stroke Awareness Month 635
PROCLAMATION declaring May 2022 as Stroke Awareness Month in the City of Richmond – Mayor’s Office (Mayor Tom Butt 510-620- 6503).
O.7.e. Affordable Housing Month – May 2022 638
PROCLAMATION declaring May 2022 as Affordable Housing Month in the City of Richmond – Mayor’s Office (Mayor Tom Butt 510-620- 6503).
May 3, 2022, CC Meeting
O.7.f. Bike Month – May 2022 641
PROCLAMATION declaring May 2022 as Bike Month in the City of Richmond – Mayor’s Office (Mayor Tom Butt 510-620-6503).
O.8. Police Department
O.8.a. Proposed Standing Purchase Order with LN Curtis and Sons 644 APPROVE a standing purchase order with LN Curtis and Sons to purchase police tools, equipment, uniforms, and safety supplies, in a total amount not to exceed $70,000, for a term of three years beginning May 1, 2022, through April 30, 2025, with the option of an additional one (1) year extension – Police Department (Louie Tirona 510-621-1802).
O.8.b. Allied Universal Security (AUS) Services Contract Amendment 735 APPROVE a contract amendment with Allied Universal for additional security guard services at 325 Civic Center Plaza to increase the contract amount by $55,000, for a new total payment limit not to exceed $1,064,350, with a term expiring on December 31, 2022 – Police Department (Louie Tirona 510-621-1802).
O.9. Public Works
O.9.a. Engineer’s Report for Fiscal Year 2022-23 for the Hilltop Landscape Maintenance District
797
ADOPT a resolution approving the Engineer’s Report for Fiscal Year 2022-2023 for the Hilltop Landscape Maintenance District (“HLMD”), declaring the City Council’s intention to increase the annual assessment in the HLMD, and announcing a public hearing about the proposed increased assessment on June 21, 2022, at 6:30 PM – Public Works Department (Joe Leach 510-620-5478/Greg Hardesty 510-620-6920).
O.9.b. Engineer’s Report for Fiscal Year 2022-2023 for the Marina Bay Landscape and Lighting Maintenance District
869
ADOPT a resolution approving the Engineer’s Report for FY2022- 2023 for the Marina Bay Landscaping and Lighting Maintenance District, declaring the City Council’s intention to increase the annual assessment in the Marina Bay Landscaping and Lighting
Maintenance District, and setting a public hearing about the proposed increased assessment on June 21, 2022, at 6:30 PM – Public Works Department (Joe Leach 510-620-5478/ Greg Hardesty 510-620- 6920).
May 3, 2022, CC Meeting
O.9.c. Transportation Development Act (TDA) Grant Contracts with Bike East Bay and SOS! Richmond
966
APPROVE a Transportation Development Act (TDA) grant-funded contract with Bike East Bay to provide two years of bicycle safety education, in an amount not to exceed $25,000. Contract will have a term starting May 3, 2022, and ending May 3, 2024 – Public Works Department (Joe Leach/Patrick Phelan 510-307-8111).
O.9.d. Approve a Contract for Repairs to a Loader 1011
APPROVE a contract with Pape Machinery, Inc., for repairs to a John Deere loader (VIN ending 17154), in an amount not to exceed $25,000 – Public Works Department (Joe Leach 510-620-5478).
O.9.e. Action Necessary Related to the Vacation and Dedication of a Public Storm Drain Easement Related to the Pinole Point Phase 3 Development
1044
ADOPT a resolution to abandon an old, unusable 10’ and 15’ storm drain easement (SDE) owned by the City of Richmond on the property of 6065 Giant Road in the City of Richmond, California in the County of Contra Costa; AUTHORIZE to quitclaim said easement; and ACCEPT the grant of new storm drain easement to be recorded within the same property – Public Works Department (Joe Leach 620-5478).
O.9.f. Approval of Contract for Repairs to a Sweeper 1070 Approve a contract with Owen Equipment for repairs to an Elgin sweeper (VIN ending H3506), in an amount not to exceed $15,000 – Public Works Department (Joe Leach 510-620-5478).
O.9.g. Large Lot Final Map for the Point Molate Development Area 1103 AUTHORIZE the Mayor to sign, and staff to record the large lot final map for the Point Molate Development – Public Works Department (Joe Leach 620-5478).
P. NEW BUSINESS
P.1. Update on the Transportation Division 1126
RECEIVE a presentation from the Transportation Division to update the City Council and the community on the status of current and upcoming projects - City Council Office (Councilmember Demnlus Johnson III 510-620-6568). This item was continued from the April 26, 2022, meeting.
Q. PUBLIC HEARINGS
Q.1. Approval of New Fees for the Revised Master Fee Schedule 1128 INTRODUCE an ordinance (first reading) establishing certain fees for the proposed Master Fee Schedule - Finance Department (Delmy Cuellar/Antonio Banuelos 510-620-6741).
May 3, 2022, CC Meeting
R. BUDGET SESSION
R.1. Budget Presentation 1181
RECEIVE budget presentation from the Richmond City Council, Mayor’s Office, and the Public Works Department – Finance Department (Delmy Cuellar/Mubeen Qader 510-412-2077).
R.2. Acknowledge receipt of Fiscal Year 2022-2023 Proposed First Draft Budget 1227 ACKNOWLEDGE receipt of the first draft of the Fiscal Year 2022-2023 Annual Operating Budget and Fiscal Year 2022-2027 Five-Year Capital Improvement Plan Budget and establish the review process and schedule for their review and adoption – City Manager’s Office/Finance Department (Shasa Curl/Delmy Cuellar 510-620-6740).
R.3. Update on Cost Recovery and Revenue Enhancement 1293 RECEIVE an update on the Cost Recovery and Revenue Enhancement tracking document and Options for Long-term Fiscal Sustainability; and PROVIDE input to City staff – City Manager’s Office (Shasa Curl/LaShonda White 620-6512). This item was continued from the April 26, 2022, meeting.
S. REPORTS OF OFFICERS: REFERRALS TO STAFF, AND GENERAL REPORTS (INCLUDING AB 1234 REPORTS)
T. ADJOURNMENT
May 3, 2022, CC Meeting
May 3, 2022
City Attorney's Office
DATE: May 3, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Dave Aleshire, Interim City Attorney
Subject:
Point Molate Legal Services Agreement with Downey
Brand and Amendment Related to Claims and Litigation
FINANCIAL IMPACT: The additional expenditure for the Point Molate legal services amendment is $120,000. The $60,000 for Point
Molate/Guidiville work will be paid from Risk
Management/ General Liability account 50182316. The
other $60,000 is for work related to the development and the NCRA lawsuit will be reimbursed by the developer.
PREVIOUS COUNCIL
ACTION:
Previous Council action on the NCRA related legal
services agreement (LSA) occurred on October 6, 2020,
April 1, 2021, and November 2, 2021.
STATEMENT OF THE
ISSUE:
To ensure the City has appropriate legal representation relating to the Point Molate litigation and claims, including the existing NCRA v. Richmond and Guidiville v. United
States litigation matters, the City Attorney’s Office
requests approval of a legal services agreement (LSA)
amendment and new LSA for $60,000 each.
RECOMMENDED ACTION:
APPROVE a third amendment with Downey Brand, for
$60,000, for a not to exceed total amount of $1,010,000, for the Point Molate litigation and claim, and a $60,000 legal services agreement (LSA) for Guidiville work – City Attorney’s Office (Dave Aleshire 510-620-6509).
AGENDA
REPORT
May 3, 2022
DISCUSSION:
To ensure the City continues to have appropriate and adequate representation in litigation pending against the City related to Point Molate, the Interim City Attorney requests two separate approvals for legal services:
1) Approval of a Legal Services Agreement (“LSA”) with Downey Brand in the amount of $60,000 for representation of the City in Guidiville Rancheria v. United States; and
2) Amendment to the LSA with Downey Brand in the amount of $60,000 (a total contract amount of $1,010,000) for continuing representation of the City in North Coast Rivers Alliance v. City of Richmond (“NCRA Litigation”).1 The proposed amounts will allow the City to monitor and maintain independent representation in the above-referenced litigation, as well as to respond in a timely manner to the claims and other matters that may arise in the existing litigation.
Depending on how these matters proceed, it may become necessary to augment the above contract amounts.
BACKGROUND
A. Guidiville v. United States (Guidiville Litigation):
To promote redevelopment of the former Point Molate Naval Fuel Depot, the City in 2004 entered into a Land Disposition Agreement (“LDA”) with Upstream Point Molate LLC (“Upstream”) and Guidiville Rancheria Tribe (“Guidiville”) for the purposes of pursuing a possible casino project. The City prepared and certified an Environmental Impact Report (“EIR”) for the proposed redevelopment. In 2011, the City formally ceased consideration of the proposed casino project.
In 2012, Upstream and Guidiville commenced litigation against the City, alleging a breach of the LDA. After years of litigation, the City, Upstream, and Guidiville entered a settlement that was memorialized in a form of judgment entered by the U.S. District Court on April 12, 2018. The District Court entered an Amended Judgment on November 21, 2019.
The Amended Judgment contains a number of commitments by the City, Upstream, and Guidiville, including obligations to market portions of the site designated as “Development Areas” for sale to one or more qualified developers. The Amended Judgment also ordered the Parties to prepare and submit a joint report to the District Court every 120 days regarding efforts to comply with the Amended Judgment. The joint reports were suspended by the District Court when the City approved the Point Molate Mixed-Use Development Project in September 2020 (see below).
1 A third lawsuit pending against the City related to Point Molate, SPRAWLDEF v. City of Richmond, Ninth Circuit Court of Appeal (filed May 2018), involves a claim under the Brown Act challenging the settlement entered in Guidiville v. United States. The City is separately represented in that action.
May 3, 2022
In response to requests for emergency relief against the City related to its defense of a parallel lawsuit involving Point Molate (SPRAWLDEF v. City of Richmond), the District Court in November 2021 ordered the Parties to reinstate the reporting requirement of the Amended Judgment, but on a forty-five (45) day basis. Downey Brand will serve as counsel of record for the City in this re-activated case, with responsibility primarily for preparing the Parties’ joint reports, managing the case, making appearances (if necessary), coordinating among the Parties, assisting with settlement negotiations, and providing advice to and representation of the Richmond City Attorney’s Office in the proceedings.
Downey Brand’s litigation fees and expenses incurred in Guidiville v. United States are not reimbursable and shall be paid by the City’s General Fund.
B. NCRA v. City of Richmond (NCRA Litigation):
On September 8 and 15, 2020, the City Council certified a Subsequent Environmental Impact Report (“SEIR”) and approved a Disposition and Development Agreement (“DDA”) and Development Agreement (“DA”) with Winehaven Legacy LLC (“Winehaven”), as well as a series of land use entitlements for the Point Molate Mixed- Use Development Project (“Project”).
On October 9, 2020, opponents of the Project filed two lawsuits in Contra Costa County Superior Court seeking to set aside the SEIR and Project approvals, which actions were consolidated as North Coast Rivers Alliance v. City of Richmond (“NCRA Litigation”).
The NCRA Litigation asserted multiple claims under the California Environmental Quality Act (“CEQA”), state planning and zoning laws, California Constitution, and common law public trust doctrine. The Superior Court entered judgment in the City’s favor on March 15, 2022, and the case has been appealed to the First Appellate District.
Downey Brand will continue to serve as trial and appellate counsel for the City in its defense of the NCRA litigation and will have responsibility for case management and coordination among counsel, assisting with settlement negotiations, and for providing advice to and representation of the Richmond City Attorney’s Office in the proceedings.
Downey Brand’s litigation fees and expenses will be reimbursed by real party in interest Winehaven based on the indemnity provisions and conditions imposed under the entitlements and both the DDA and DA.
C. Litigation Expenses Incurred:
Downey Brand’s existing LSA for representation of the City in the NCRA Litigation is in the amount of $950,000, as approved by the City Council on November 2, 2021. Due to significant unexpected post-trial proceedings in the NCRA Litigation, as well as the need to immediately respond to the District Court’s November 2021 orders in the Guidiville v.
United States case, the City incurred another $51,062.50 in litigation expenses through February 2022 (for a total of $1,001,062.50).
May 3, 2022
To date, the City has invoiced Winehaven for reimbursements in the total amount of $850,000 pursuant to its indemnity obligations under the Project entitlements and DA/DDA. Winehaven has only paid $250,000 to date, though it had pledged to reimburse the balance invoiced ($600,000) by about April 15, 2022.
DOCUMENTS ATTACHED
Attachment 1 – Original Contract for NCRA Litigation
Attachment 2 – First Amendment to the Contract
Attachment 3 – Second Amendment to the Contract
Attachment 4 – Proposed Third Amendment to the Contract Attachment 5 – Proposed Contract for Guidiville v. United States
DocuSign Envelope ID: E64B1D4F-FCCC-4803-8DCC-E2DC4F6E6B61
DocuSign Envelope ID: E64B1D4F-FCCC-4803-8DCC-E2DC4F6E6B61
DocuSign Envelope ID: E64B1D4F-FCCC-4803-8DCC-E2DC4F6E6B61
DocuSign Envelope ID: E64B1D4F-FCCC-4803-8DCC-E2DC4F6E6B61
1798408v3 Third Amendment to Agreement for Legal Services A-1
THIRD AMENDMENT TO AGREEMENT FOR LEGAL SERVICES
BETWEEN
THE CITY OF RICHMOND
AND
DOWNEY BRAND LLP
This Third Amendment to the Agreement for Legal Services between the CITY OF RICHMOND (“City”) and DOWNEY BRAND LLP (“Special Counsel ”) (the “Third Amendment”) is entered into as of MAY 3, 2022, by and between the City and Special Counsel with reference to the following facts:
RECITALS
WHEREAS, the City and Special Counsel entered into that certain Legal Services Agreement (“Original Agreement”) for $250,000 representation of the City and City- related entities; and
WHEREAS, the Original Agreement was amended on April 1, 2021, for $500,00 and on November 2, 2021 for $200,000; and
WHEREAS, the City now desires for Special Counsel to continue its representation of the City, to amend the scope of representation, and to increase the compensation limit by Sixty Thousand Dollars ($60,000); and
WHEREAS, the City and Special Counsel desire to amend the Original Agreement pursuant to this Third Amendment.
NOW, THEREFORE, in consideration of the recitals hereof, and other mutual covenants and promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and Special Counsel agree as follows:
1. Amendment. Exhibit A of the Original Agreement, “Scope of Work and Schedule of Fees & Charges,” is hereby amended to read as shown in Attachment 1 to this Third Amendment.
2. Effect of Third Amendment. Except as provided in this Third Amendment, all other terms of the Original Agreement shall remain in full force and effect.
3. Counterparts. This Third Amendment may be executed in counterparts each of which shall be an original and all of which shall constitute one and the same instrument.
[Signatures on following page]
1798408v3 Third Amendment to Agreement for Legal Services A-2 IN WITNESS WHEREOF, the City and Special Counsel have caused this Third Amendment to be effective as of the last date written below.
CITY OF RICHMOND DOWNEY BRAND LLP
By ________________________ By __________________________ Mayor Christian Marsh, Partner
Date:____________________ Date:_________________________
Attest:
By: _____________________
City Clerk
Approved as to form:
By: _____________________
Interim City Attorney
1798408v3 Third Amendment to Agreement for Legal Services A-3 Attachment 1
SCOPE OF WORK AND SCHEDULE OF FEES & CHARGES
Scope of work:
The City Council of the City of Richmond on September 8, 2020, certified a Subsequent Environmental Impact Report (SEIR) and adopted a resolution approving land use entitlements for the Point Molate Mixed-Use Development Project. Those approvals were the subject of two lawsuits in the form of peremptory writs of mandate filed in the Contra Costa County Superior Court on or about October 9, 2020, including Point Molate Alliance, et al., v. City of Richmond and North Coast Rivers Alliance, et al. v. City of Richmond. The lawsuits named the City as respondent and Winehaven Legacy, LLC as real party in interest and asserted causes of action under the California Environmental Quality Act, California Planning and Zoning Law, California Constitution, and the common law public trust doctrine, as well as other grounds. The cases were subsequently consolidated into a single case, entitled North Coast Rivers Alliance, et al. v. City of Richmond. The trial court entered judgment on March 15, 2022, and the case is now pending in the First District Court of Appeal.
Downey Brand will continue to serve as lead trial and appellate counsel for the City in its defense of these actions, and will have responsibility for case management and coordination among defense counsel, assisting with settlement negotiations, and for providing advice to and representation of the Richmond City Attorney’s Office in the proceedings. Downey Brand’s litigation fees and expenses shall be reimbursed by real party in interest Winehaven Legacy, LLC based on the indemnity provisions and conditions imposed under the entitlements and both the Disposition and Development Agreement and Development Agreement.
As part of its services above, Downey Brand shall provide concise written reports to the City Attorney on a monthly basis, which will address important milestones and efforts in the case. The City Attorney will share the reports with the City Council, and will return to the Council for more substantive reports and to further augment the contract amount as may be necessary for future phases of the litigation, including appellate briefing.
City’s Contact Attorney: Dave Aleshire, Interim City Attorney Heather McLaughlin, Interim Sr. Assistant City Attorney
Schedule of Fees & Charges:
ATTORNEY HOURLY RATES
Christian Marsh $410/hour
Kathryn Oehlschlager $410/hour
Hina Gupta $365/hour
Natalie Kirkish $365/hour
1798408v3 Third Amendment to Agreement for Legal Services A-4 Megan Unger $335/hour
PARALEGAL HOURLY RATES
Jon Shackelford $225/hour
Jessica Wise $225/hour
Compensation:
Only those costs and expenses set forth in Section III of Exhibit "B", entitled "Reimbursements" shall be paid to Special Counsel.
Total compensation for legal services and reimbursements shall be charged in accordance with Exhibits "A" and "B" and shall not exceed the sum of One Million and Ten Thousand Dollars ($1,010,000) for attorneys’ fees.
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LEGAL SERVICES AGREEMENT
BY AND BETWEEN
THE CITY OF RICHMOND
AND
DOWNEY BRAND LLP
PREAMBLE
This legal services agreement (“Agreement”) is made and entered into on this third day of May, 2022 (the “Effective Date”) by and between the City of Richmond, California, a chartered California municipal corporation (“City”), with its principal place of business located at 450 Civic Center Plaza, Richmond, California 94804 and Downey Brand LLP comprised of attorneys licensed to practice law in the State of California (“Special Counsel”) with its principal place of business located at, 455 Market Street, Suite 1500, San Francisco, California 94105.
Special Counsel may be referred to herein individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”
RECITALS
The following recitals are as follows:
A. City desires to secure professional services more fully described in this Agreement; and,
B. Special Counsel represents that it has the professional qualifications, expertise, necessary licenses and desire to provide legal services of the quality and type, which meet objectives, and requirements of City.
AGREEMENT PROVISIONS
The Parties agree as follows:
1. RETENTION OF FIRM.
A. City hereby confirms, retains and authorizes Special Counsel to represent City and provide legal services as may be requested, from time to time, orally or in writing, by authorized representatives of City on an as-needed basis. By this Agreement, City is retaining Special Counsel and not individual members of the Special Counsel. Special Counsel’s client is the City, as a public entity, and not any of its individual members, groups of individuals or any other entity.
B. The Special Counsel shall report to and receive direction from the City Attorney only and not from any other Department Head or City staff.
C. Special Counsel shall perform such legal services for and on behalf of City under the primary direction of the City Attorney. Special Counsel shall undertake, subject to approval of the City Attorney, additional duties as may be authorized by City from
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time to time under the terms and conditions of this Agreement.
2. DESCRIPTION OF SERVICES TO BE PROVIDED.
[See “Scope of Work” in Exhibit A].
3. TERM OF AGREEMENT.
This Agreement and its terms shall become operative as of the Effective Date, but shall become effective retroactive to the date Downey Brand first performed services related to this Matter. This Agreement shall terminate on June 30, 2023, unless the parties extend the Agreement in writing. The services shall be undertaken and completed in such sequence as to assure their completion as expeditiously as is consistent with professional skill and care.
4. ASSIGNMENT OF DUTIES.
It is contemplated that no other attorney will be assigned from Special Counsel other than the attorneys listed on Exhibit A. It is agreed by and between the Parties that should it be desirable for any attorney other than the attorneys listed on Exhibit A to work under this Agreement, such attorney may only be added with the express oral consent of the City Attorney. Should any associate in the Special Counsel be assigned any task under this Agreement that exceeds three (3) billable hours per month, City Attorney should approve the assignment of such associate orally.
5. PUBLIC FUNDING.
Special Counsel and City mutually recognize that Special Counsel’s services under this Agreement are being paid for with tax dollars from citizens and taxpayers of the City of Richmond, California, and that, given this fact, a heightened duty of care exists in both Special Counsel and City to ensure that Special Counsel scrupulously adheres to principles of moderation, frugality and cost consciousness in carrying forth the goals of this Agreement. Special Counsel and each of its attorneys pledge themselves to scrupulously observe a duty of reasonableness and cost effective representation in all aspects of this Agreement.
6. PAYMENT FOR SERVICE.
In consideration for Special Counsel’s performance of legal services on behalf of City under the terms of this Agreement, and upon review and approval of Special Counsel’s bill by the City Attorney, Special Counsel shall be compensated at the preapproved hourly rates and for authorized expenses set forth in the “Scope of Work and Schedule of Fees and Charges” set forth in Exhibit A, attached and incorporated by this reference.
Fees for services performed by retained consultants, subcontractors, experts or other personnel may be billed to City only if approved in writing by the City Attorney.
Exhibit A may be amended from time to time by letter agreement duly signed and
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approved by the City Attorney.
7. BILLING INVOICES.
Special Counsel shall, within thirty (30) days after the end of each month in which services are performed under this Agreement, submit to the City an itemized bill describing in detail the specific services performed as set forth in this Agreement. Special Counsel shall adhere to the Protocols and Guidelines set forth in Exhibit B, attached and incorporated by this reference. The bill shall be electronically submitted to [email protected].
8. PROJECT PLAN AND BUDGET AND RESERVES.
Special Counsel shall provide a project plan and budget for any project or case assigned to Special Counsel under this Agreement. Project plans and budgets shall conform to the guidelines set forth in Exhibit C (Project Plan and Budget) and Exhibit D (Mandatory Case Reporting Policy), when the case is reportable to the City’s excess insurance carrier, California Joint Powers Risk Management Authority (CJPRMA). If the case is reportable to CJPRMA, Special Counsel shall provide an initial report notifying them of the claim or lawsuit within 30 days of receipt of the assignment and the estimated exposure. The City Attorney and Risk Manager shall be copied on all correspondence sent to CJPRMA.
9. LITIGATION GUIDELINES.
When litigation is included in the scope of work, litigation guidelines as specified in Exhibit E are to be followed.
10. BILLING.
Special Counsel shall scrupulously examine all bills submitted for services rendered under this Agreement to assure that appropriate billing judgment is employed in billing City for service. Special Counsel shall not bill for hours other than those hours expressly devoted to the tasks approved in advance by the City Attorney. Special Counsel agrees it will not bill for time, which is not specifically devoted to the task(s). Special Counsel shall not use legal professionals for secretarial work and under no circumstances shall Special Counsel have lawyers billing for making copies, scheduling appointments or taking care of matters or work that would otherwise be work performed by a law clerk, assistant or secretary.
11. STATUS REPORTS.
Special Counsel shall, every thirty (30) days, submit via electronic mail a written update setting forth a summary of activities performed on behalf of City during the preceding month, the current status of each pending matter, results obtained or expected to be obtained, a summary of invoices for the preceding month and other information relating to the services rendered as City may reasonably request. The update should be emailed to
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the City Attorney with a copy to the Risk Manager and CJPRMA, if applicable. Please keep the status reports brief and spend no more than one (1) hour billing for your time.
Please also attach any referenced filings to your status report.
12. TERMINATION.
Either Party may terminate this Agreement by providing written notice to the other. Any termination hereunder shall become effective immediately upon receipt of written notice of termination; provided, however, that Special Counsel may exercise its right of termination only to the extent and under terms and conditions consistent with the obligations of Special Counsel under the Rules of Professional Conduct of the State Bar of California; and provided, that in the event of termination, the amount due Special Counsel for services rendered and costs and expenses incurred prior to termination shall remain due and payable. Special Counsel agrees to turn over to any attorney substituted in its place, the entire file and attorney work product regarding any such matter within seven (7) days of any such termination.
13. CONFLICTS OF INTEREST.
A. No member of the governing body of the City, and no other officer, employee or agent of the City who exercises any discretion, function or responsibility in connection with the carrying out of any project to which this Agreement pertains, shall have any personal interest, direct or indirect, in this Agreement.
B. Special Counsel agrees to secure the informed written consent of the City Attorney before accepting any representation adverse to the City (actual or apparent) during the term of this Agreement, and to forego the representation if the City Attorney, in his or her sole discretion, objects for any reason. This provision is intended to provide rights to the City above and beyond the rights Special Counsel owes to the City under all applicable rules of professional conduct relating to conflict of interest.
14. ASSIGNMENTS AND SUCCESSORS IN INTEREST.
City and Special Counsel bind themselves, their partners, successors, assigns, executors and administrators to the terms of this Agreement. Except as otherwise set forth in this Agreement, no interest in this Agreement or any of the work provided for in this Agreement shall be assigned or transferred, either voluntarily or by operation of law, without the prior written approval of the City Attorney.
15. AUDITS, RECORDS, AND DOCUMENTATION.
A. The City and any other federal, State or local governmental agency, and any of their authorized auditors or representatives, including auditors, shall have access to, and the right to audit and reproduce any of Special Counsel's records to the extent the City or such other governmental agency deems necessary to ensure that City is paying only the amounts to which Special Counsel is properly entitled or for other
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purposes relating to the Agreement. Special Counsel shall assist the City in responding to any requests from the City’s auditors, and Special Counsel shall not bill the City for any time spent responding to any such audit requests.
B. Special Counsel shall maintain complete and accurate records of the services provided to City and expenses incurred on behalf of City. Special Counsel shall maintain and preserve all such records for at least three (3) years after termination of the Agreement or until an audit has been completed and accepted in writing by City.
Upon written notice by the City, the Special Counsel shall promptly make all such records available to auditors or other representatives of the City or other governmental agencies.
16. NON-DISCRIMINATION.
A. Special Counsel agrees to observe the provisions of Section 2.28.030 of the Municipal Code of the City of Richmond, obligating every contractor or subcontractor under a contract or subcontract with the City of Richmond for services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, sexual orientation, gender identity, religious creed, national origin or ancestry of any employee, any applicant for employment or any potential subcontractor.
Said Section 2.28.030 is, by this reference, a part of this Agreement.
B. If Special Counsel is found in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions of federal law or executive order in the performance of this Agreement, it will be in default of this Agreement. Thereupon, City will have the power to cancel or suspend this Agreement, in whole or in part.
17. HOLD HARMLESS/INDEMNIFICATION.
Special Counsel agrees to indemnify, hold harmless, release and defend to the maximum extent p ermitted by law, and covenants not to sue, the City, its City Council and each member thereof, and its officers, employees, commission members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney’s fees and costs of litigation) which in whole or in part result from, or arise out of, any negligent acts, errors or omissions (including, without limitation, professional negligence) of Special Counsel, its employees, representatives, subcontractors, or agents in connection with the performance of this Agreement. This Agreement to indemnify, hold harmless, release and defend includes, but is not limited to, personal injury (including death at any time) and property or other damage (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Special Counsel and its employees or agents, and members of the general public).
18. INSURANCE REQUIREMENTS.
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Special Counsel shall maintain in full force and effect the following insurance policies:
A. Commercial general liability policy (bodily injury and property damage); B. Worker’s compensation/employer’s liability policy;
C. Business automobile liability insurance policy; and, D. Professional liability policy.
Said policies shall be maintained with respect to employees and vehicles assigned to the performance of work under this Agreement with coverage amounts, endorsements, certificates of insurance and coverage verifications as defined in Exhibit G, attached to this Agreement and incorporated by this reference.
19. CONFIDENTIALITY AND MEDIA STATEMENTS.
The data, information and reports acquired or prepared by Special Counsel in connection with matters upon which the City has retained Special Counsel shall not be shown or distributed to any other public or private person or entity except as authorized by the City Attorney and in no event prior to having been first disclosed to the City Attorney. All information, documents, records, reports, data or other materials furnished by City to Special Counsel or other such information, documents, records, data or other materials to which the Special Counsel has access during its performance pursuant to this Agreement are deemed confidential and shall remain the property of City. Special Counsel shall not make oral or written disclosure of such documents or materials, other than as necessary for its performance under this Agreement, without the prior written approval of the City Attorney. Special Counsel shall not provide any written or oral statements to the media without the prior written authorization of the City Attorney.
20. AMENDMENTS.
This Agreement, including any Exhibits attached to it, represents the entire understanding of the Parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may be modified only by a written amendment duly executed by the Parties to this Agreement.
21. ENGAGEMENT OF OTHER COUNSEL, SPECIALISTS, OR EXPERTS.
Special Counsel will not engage or otherwise incur an obligation to pay other counsel, specialists, or experts for services in connection with this Agreement without the prior written approval of the City Attorney.
22. NOTICES.
All notices, pleadings, reports or other communication to the Parties shall be properly sent via electronic mail to [email protected] and to Special
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Counsel at its principal place of business listed on page one of this Agreement.
Either Party may change its address for receipt of notices under this Agreement by notice given in the manner provided herein.
23. LAW GOVERNING AGREEMENT.
This Agreement shall be interpreted under the laws of the State of California. All claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within Contra Costa County.
24. INVALID PROVISIONS.
If any provision of this Agreement is held to be illegal, invalid or unenforceable, in full or in part, then such provision shall be modified to the minimum extent necessary to make the provision legal, valid and enforceable, and the other provisions of this Agreement shall not be affected thereby.
25. LICENSE REQUIREMENTS.
Special Counsel shall demonstrate that the attorney(s) who provide legal services to City under this Agreement are licensed to practice law in the State of California and, if not, indicate to the satisfaction of the City Attorney why such license is not required to perform the services required.
26. SANCTUARY CITY CONTRACTING ORDINANCE COMPLIANCE
STATEMENT.
Contractor agrees to comply with the provisions of the Richmond Sanctuary City Contracting Ordinance (SCCO, Ordinance No. 12-18). Contractor must submit the Sanctuary City Compliance Statement included herein as Exhibit F along with the bid or proposal prior to execution of the contract.
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The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives. It is the intent of the Parties that this Agreement shall become operative on the Effective Date.
DOWNEY BRAND LLP
By:_______________________________
Title:_____________________________
CITY OF RICHMOND
____________________________
Mayor/ City Manager
Name:______________________
APPROVED AS TO FORM:
__________________________
City Attorney
ATTEST:
__________________________
City Clerk
EXHIBIT A
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SCOPE OF WORK AND SCHEDULE OF FEES & CHARGES
Scope of work:
The City Council in 2004 entered into a Land Disposition Agreement (“LDA”) with Upstream and Guidiville, granting them certain rights to acquire land and seek to develop a casino project at the former Point Molate Navy Fuel Depot. The City in 2011 ceased consideration of the proposed casino project. In 2012, Upstream and Guidiville commenced litigation against the City in the U.S. District Court, Northern District, alleging a breach of the LDA (Guidiville v.
United States). The City, Upstream, and Guidiville entered a settlement that was memorialized in a form of judgment entered by the Court on April 12, 2018. The Court entered an Amended Judgment on November 21, 2019 (“Amended Judgment”).
The Amended Judgment ordered the Parties to prepare and submit a joint report to the Court every 120 days regarding efforts to comply with the Amended Judgment. The joint reports were suspended by the Court when the City approved the Point Molate Mixed-Use Development Project in September 2020. In response to requests for emergency relief against the City related to its defense of parallel lawsuits involving Point Molate, the Court in November 2021 ordered the Parties to reinstate the reporting requirement of the Amended Judgment, but on a forty-five (45) day basis.
Downey Brand will serve as counsel of record for the City in this re-activated case, with responsibility primarily for preparing the Parties’ joint reports, managing the case, coordinating among the Parties, assisting with settlement negotiations, and providing advice to and representation of the Richmond City Attorney’s Office in the proceedings. Downey Brand’s litigation fees and expenses incurred in Guidiville v. United States are not reimbursable, and shall be paid by the City’s General Fund.
City’s Contact Attorney: Dave Aleshire, Interim City Attorney Heather McLaughlin, Interim Sr. Assistant City Attorney
Schedule of Fees & Charges:
PARTNER HOURLY RATES
Christian Marsh $410/hour
Kathryn Oehlschlager $410/hour
ASSOCIATE HOURLY RATES
Hina Gupta $365/hour
Natalie Kirkish $365/hour
Megan Unger $335/hour
EXHIBIT A
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PARALEGAL HOURLY RATES
Jon Shackelford $225/hour
Jessica Wise $225/hour
COMPENSATION
Only those costs and expenses set forth in Section III of Exhibit "B", entitled "Reimbursements" shall be paid to Special Counsel.
Total compensation for legal services and reimbursements shall be charged in accordance with Exhibits "A" and "B" and shall not exceed the sum of Sixty Thousand Dollars ($60,000) for attorneys’ fees and reimbursements.
EXHIBIT B
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BILLING PROTOCOLS/GUIDELINES
The City of Richmond (“City”) has adopted the following protocols for billing, budgeting, and planning for projects involving outside counsel. Special Counsel will be required to comply with this protocol. If you have questions concerning it, please contact the City Attorney for clarification. In the event you wish to negotiate changes due to the internal operation of your firm, please raise them in writing as soon as possible. Any changes to this protocol will need prior, written approval from the City Attorney. In the interest of fairness, all Special Counsel is required to comply with this protocol. This protocol is also to be used in conjunction with any new proposal for services.
These protocols and guidelines are instituted to ensure that Special Counsel conveys the information necessary for the City Attorney to manage outside projects and litigation.
Also, because these guidelines are set out in advance, they are designed to minimize any confusion or misunderstanding. Compliance with these guidelines should enhance the attorney-client relationship. If you have any comments or suggestions that could improve this system, please feel free to contact the City Attorney.
I. BILLING FORMAT
Unless otherwise agreed, the following information must be provided in monthly bills:
a. A detailed description of work, in time increments of .1 hour (one tenth of an hour) for and by each and every individual billing services. b. Identification of the lawyer who is in charge of the matter. c. Reasonably detailed disbursement breakdowns with backup documentation of any individual charge exceeding $100.00.
d. Each billing item must be separately stated on a separate line identifying the individual performing the services, the time spent and the exact nature of the service rendered.
e. When charges are made for research time, the specific issue being researched and the need for the research should be identified.
f. Each item billed should be coded to a specific litigation budget line item, if applicable.
g. The City Attorney reserves the right to request various levels of detail and specific formats (such as columnar comparisons with established budgets).
EXHIBIT B
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II. BILLING GUIDELINES
a. All tasks set forth in Special Counsel’s billing documentation shall be specific and detailed. Overly generalized listings of task descriptions such as “review contract” or “prepare for negotiations” are not acceptable. b. Billings under this Agreement shall not be provided in more than six (6) minute increments and shall represent the devotion of a full six minutes before an increment is billed. Under no circumstances shall Special Counsel use “block billing” procedures, wherein a list or series of activities is done each day with only an aggregate amount of time specified. c. Special Counsel shall keep the City advised of the identity and billing rates of those people working on the project account.
d. All time shall be billed within 30 days of the end of the month in which services were performed.
e. Counsel shall advise City whenever it anticipates the amount of services necessary to properly execute the task will exceed the amount of the contract.
When accrued billings are equal to eighty percent (80%) of the Payment Limit, written notice shall be given to the City as soon as possible, via e-mail, to the City Attorney’s Office, of this fact. In order to satisfy this notification requirement, Counsel shall monitor its accrued billings on a weekly basis and immediately notify the City Attorney if the eighty percent (80%) threshold is met. Special Counsel acknowledges the fiscal constraints on City funding and therefore Special Counsel assumes risk of non-payment for services rendered in the event the amount of services rendered exceeds the amount of the contract unless prior written authorization is received. Authorization to exceed the amount set forth in Exhibit A may be given only by City Attorney in writing.
f. Only those attorneys approved by the City may bill on the case. g. The City expects the attorney assigned to the case to handle all significant matters in the litigation. The City Attorney must approve in advance the assignment of other attorneys to the litigation or project. The City may request that the assigned work be instead handled by the primary attorney. h. Special Counsel shall not charge for more than one attorney at any hearing, deposition, or meeting of any kind without advance approval of the City Attorney.
i. No more than two paraprofessionals may bill on a particular case without the prior approval of the City.
EXHIBIT B
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j. The City has retained Special Counsel for its expertise, and therefore expects not to be billed for introductory or background research. City appreciates when Special Counsel has researched an issue previously and uses that research on present cases or projects. Do not charge the City for work Special Counsel has done and billed another client for in the past. k. Within thirty (30) days of the Effective Date of this Agreement, Special Counsel shall provide any manuals or policies describing Special Counsel’s billing practices.
l. The City does not allow “double billing” of any sort. If Special Counsel is working on another client’s matter, do not bill City for that time. This applies to travel time or any other matter.
m. Training time is not billable. Law clerks may be used only with prior approval.
n. City will not pay for new attorneys to “get up to speed” on a file unless it has been preapproved.
o. If a matter arises that requires Special Counsel to open a new file, the City Attorney should be informed immediately.
p. City reserves the right to require additional substantiation of any item of claimed expense.
III. REIMBURSEMENTS
a. The City will reimburse Special Counsel for the following expenses, and for no other expenses:
Actual printing costs;
Copying costs at $.12 / page (for legal documents and file materials, but not library materials);
Actual cost of postage (including express mail delivery charges); Facsimile charges at the rate of $0.25 per page;
Computer research support services (e.g., Westlaw, LEXIS or computer time or services) at actual cost, but not to exceed 15% of the total fees for all legal services;
Actual cost of long distance telephone calls;
Transcription and reporter's fees; and
Reasonable travel. The City does not pay for meals unless Attorney is required to be away from office for one full day. All meals and/or travel reimbursements will be subject to approval by the City Attorney. Travel expenses are limited to the lesser of actual expenses or expenses that would be authorized for City employee travel pursuant to City policy.
EXHIBIT B
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b. The City Attorney must approve in advance any single reimbursement item in excess of $250.
c. Any expense other than those listed in section “a.” must be approved by the City Attorney in writing and in advance in an approved budget. d. No compensation shall be allowed for administrative overhead or premiums added to the direct cost of research support or other services. e. Court filings shall be prepared in a timely manner so that “rush” or “expedited” messenger fees are not incurred.
f. Messenger and other charges in excess of actual costs are not permitted. City does not allow cost, plus a percentage, for actual outside costs g. City does not pay for secretarial time or secretarial overtime. City does not pay attorneys or paralegals for secretarial tasks or tasks that should not be included in Special Counsel’s overhead. For example, faxing, mailing, arranging for messengers and calendaring are not acceptable charges. h. City does not pay for billing or discussions of bills, including discussions initiated by the City or City’s requests for additional information about a bill. i. The practice of minimum billing charges is prohibited. Please charge for actual time spent. For example, a minimum of .2 for phone calls or .4 for letters is unreasonable unless it is an accurate measure of time spent. j. Do not charge for file opening or file closing. These are not true legal services, tasks or adequate descriptions of legal activities.
EXHIBIT C
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PROJECT PLAN AND BUDGET
Project plans and budgets should conform to the following guidelines:
a. The project plan shall include a projection of recommended strategies and actions to be taken in the project and a range of costs for each such strategy or action. b. If the scope of work includes representation of the City in litigation, the project plan shall include the following elements, with explanations:
Anticipated total costs;
The primary issues;
The probability of success; and
A settlement/trial recommendation
The project plan will be modified during the litigation as the need arises. c. The project budget shall include an estimate of the attorneys' hours and fees and disbursements during each phase and/or activity. All anticipated expenses must be listed and costs estimated.
d. In the event of litigation, the project budget shall include, but not be limited to, estimates for:
Pre-commencement (legal and factual research for the complaint or answer); Pleadings;
Preliminary motions;
Initial discovery;
Factual investigation of merits (interviewing clients, employees and third parties);
Review and abstract City's documents;
Expert (non-medical) investigation and reports;
Medical experts and examinations;
Legal research on merits;
More thorough discovery (including the identity of deponents and expected costs of each deposition and preparation);
Settlement negotiations;
Trial preparation; and
Trial.
e. The project budget should include the anticipated cost of each line item, the time allotted to complete it and the professional level of the person handling it. f. The project budget is not a fixed fee agreement and is subject to revision. g. Special Counsel shall provide revisions to the project plan or budget at the request of the City Attorney.
EXHIBIT C
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h. Special Counsel understands and agrees that major unjustified deviations from the project budget, or failure to timely submit a project budget or revisions, if requested, may constitute a breach and result in termination of this Agreement.
EXHIBIT D
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California Joint Powers Risk Management Authority
Mandatory Case Reporting Policy
Pursuant to Section VII (Conditions) of the Memorandum of Coverage, the following rule is applicable to all cases reported to CJPRMA.
The Authority shall be entitled to complete access to the covered party’s claim file, the defense attorney’s complete file, and all investigation material and reports, including all evaluations and information on negotiations. The covered party shall be responsible to report the progress of the litigation and any significant developments at least quarterly to the Authority, and to provide the Authority with sim ultaneous copies of all correspondence provided to the covered party by its defense attorneys and/or its agents.
In addition, the CJPRMA Board of Directors has adopted the following mandatory case reporting standards:
1) Defense counsel is expected to provide a written analysis of liability and exposure in any reported claim no later than ninety days following receipt of the file from the member agency. CJPRMA understands that the liability picture may develop as discovery is ongoing, but this does not excuse the responsibility of providing an early, objective analysis of the file, subject to later developments. An early analysis not only permits the JPA member to set an accurate reserve level, but also permits the member entity to decide whether to actively litigate the case, try to settle the case, or limit discovery based upon the exposure.
2) The initial status report should provide, at a minimum, a brief synopsis of the facts giving rise to the lawsuit; the status of the pleadings, including any discussions of demurrers or motions to dismiss, or cross-complaints; a summary and analysis of plaintiff’s injuries, damages and exposures in the case; an initial impression of liability; any requests for additional investigation; a brief outline of the discovery planne d; and an evaluation of anticipated litigation costs. The report need not be lengthy, and typically might not exceed three to five pages, but must address the issues directly and in a straightforward manner so that the member entity and CJPRMA can set cost and loss reserves as necessary. 3) Defense counsel is responsible to report, in writing, the setting of a trial date, settlement conference date, hearing date on motion for summary judgment or similar dispositive motion in any litigated case, within one week of the date on which a court establishes such date.
4) Defense counsel is responsible to report, in writing, all settlement demands or offers within one week of the time the offer is made or the demand is received.
EXHIBIT D
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5) Defense counsel is responsible to report, in writing, on the substance of all depositions taken in the case. This need not be a multi -page deposition summary, but must, at a minimum, include a concise report of major events occurring at the deposition, and an evaluation of the effect of the deposi tion testimony on the case. 6) Finally, no later than sixty days before the date set for trial in any case, defense counsel is responsible to report, in writing, on (1) an assessment of liability in the case, (2) the adverse potential exposure if liability is found, (3) a concise summary of injuries sustained and/or claims, (4) an assessment of any other factors (such as local jury tendencies, appearance of important witnesses, etc.) that may affect the liability analysis or exposure assessment, and (5) an opinion on the settlement value of the case. 7) All status reports from defense counsel must be copied to the CJPRMA Board member whose entity is involved in the claim.
This policy is designed to protect the member entity and CJPRMA, so that they can make informed litigation decisions on reported cases. Past experience has shown that defense counsel retained by the member entities of CJPRMA are high-caliber, hard working attorneys who have done very well for their clients, and CJPRMA is grateful for their efforts. Defense counsel are cautioned, however, that case reporting is given a high priority by CJPRMA and its members, and is a major consideration in evaluating counsel’s performance.
EXHIBIT E
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LITIGATION GUIDELINES
The following guidelines should be followed when the scope of work includes representing the City in litigation:
a. The Special Counsel shall consult the City Attorney regarding the component parts of litigation handled so that the City Attorney, in consultation with the City Council, if necessary, can determine whether a particular activity is reasonable in light of its costs and benefits.
b. The City Attorney must approve the identity and number of staff assigned to the litigation, and any changes.
c. All pleadings shall be submitted to the City Attorney for review prior to filing. d. Copies of major work product, pleadings, motions, orders, decisions, research memoranda, reports on significant developments, and quarterly status reports shall be submitted to keep the City Attorney advised of any major developments in the lawsuit.
Such copies shall be provided in electronic format compatible with software in the City Attorney’s office.
e. Generally, the City Attorney will rely upon Special Counsel for guidance on litigation strategy. Nonetheless, prior approval from the City Attorney is necessary for demurrers, motions for summary judgment and discovery motions.
f. City expects that Special Counsel will resolve all discovery disputes without court intervention. If this is impossible due to the conduct of others, please inform the City Attorney immediately. City’s intent is to have discovery be fair and open with the money spent on reviewing relevant items that are discovered, not on discovery battles. g. Provide full descriptions of legal tasks performed. This will help the City Attorney follow case development and understand Firm’s strategy. h. Some types of litigation-related expenses require prior approval by the City Attorney, including, but not limited to, experts and investigators. Expenses over a certain dollar amount always require prior approval. See Section III (Reimbursements) of Exhibit B (Billing Protocols and Guidelines) of this Agreement for a list of those expenses that may be reimbursed.
EXHIBIT F
1803658v2 20
SANCTUARY CITY COMPLIANCE STATEMENT
The undersigned, an authorized agent of (hereafter
"Contractor"), has had an opportunity to review the requirements of City of Richmond Ordinance 12-18 (hereafter "Sanctuary City Contracting Ordinance" or “SCCO”). Contractor understands and agrees that the City may choose with whom it will maintain business relations and may refrain from contracting with any person or entity that provides Data Broker or Extreme Vetting services to the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security (“ICE”). Contractor understands the meaning of the following terms used in the SCCO:
a. “Data Broker” means either of the following:
i. The collection of information, including personal information about consumers, from a wide variety of sources for the purposes of reselling such information to their customers, which include both private-sector business and government agencies;
ii. The aggregation of data that was collected for another purpose from that for which it is ultimately used.
b. “Extreme Vetting” means data mining, threat modeling, predictive risk analysis, or other similar services.
Contractor understands that it is not eligible to receive or retain a City contract if at the time the Contract is executed, or at any time during the term of the Contract, it provides Data Broker or Extreme Vetting services to ICE.
Contractor further understands and agrees that Contractor's failure to comply with the SCCO shall constitute a material default of the Contract and the City Manager may terminate the Contract and bar Contractor from bidding on future contracts with the City for five (5) years from the effective date of the contract termination.
By executing this Statement, Contractor certifies that it complies with the requirements of the SCCO and that if at any time during the term of the Contract it ceases to comply, Contractor will promptly notify the City Manager in writing.
Based on the foregoing, the undersigned declares under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed this day of , 20 , at _________ , California.
Printed Name: Title:
Signed: Date:
Business Entity:
Vendor SCCO Compliance Statement (Augt2020)
EXHIBIT G
1803658v2 21
City of Richmond - Insurance Requirements - Type 2:
Professional Services
In all instances where CONTRACTOR or its representatives will provide professional services (architects, engineers, construction management, counselors, medical professionals, hospitals, clinics, attorneys, consultants, accountants, etc.) to the City of Richmond (City), the City requires the following MINIMUM insurance requirements and limits.
CONTRACTOR shall procure and maintain for the duration of the contract, agreement, or other order for work, services or supplies, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the CONTRACTOR, its agents, representatives, employees or subcontractors. Maintenance of proper insurance coverage is a material element of the contract. Failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract.
CONTRACTOR agrees that in the event of loss due to any of the perils for which it has agreed to provide Commercial General Liability insurance, CONTRACTOR shall look solely to its insurance for recovery.
CONTRACTOR hereby grants to CITY, on behalf of any insurer providing Commercial General Liability insurance to either CONTRACTOR or CITY with respect to the services of CONSULTANT herein, a waiver of any right to subrogation which any such insurer of said CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance.
Original, signed certificates and original, separate policy endorsements, naming the City as an additional insured for general liability coverage, as well as a waiver of subrogation for Workers’ Compensation insurance, shall be received and approved by the City before any work may begin. However, failure to do so shall not operate as a waiver of these insurance requirements.
City reserves the right to modify or require additional coverages for specific risk exposures depending on scope of CONTRACTORS work.
Minimum coverage is detailed below. The policy limits of coverage shall be made available to the full limits of the policy. The minimum limits stated herein shall not serve to reduce the policy limits of coverage of CONTRACTOR.
Minimum Scope of Insurance – the following forms shall be provided and coverage shall be at least as broad as the following:
1. Insurance Services Office Commercial General Liability coverage (ISO Occurrence Form CG 0001), and including coverage for bodily and personal injury, property damage, and products and completed operations (if applicable).
2. Insurance Services Office Automobile Liability coverage (ISO Form CA 0001, Code 1, Any Auto).
3. Original and Separate Additional Insured Endorsement for General Liability (ISO Form CG 20 10 11/85 or its equivalent) with primary and non-contributory language.
4. Workers’ Compensation Insurance as required by the State of California including Employer’s Liability coverage.
5. Original and Separate Waiver of Subrogation for Workers’ Compensation insurance.
6. Professional Liability or Errors & Omissions Liability Insurance appropriate to the CONTRACTOR’s profession (if required.)
Required Coverage Minimum Limits
Workers’ Compensation and
Employers’ Liability
Statutory limits as required by the State of California including $1 million Employers’ Liability per accident, per employee for bodily injury or disease. If CONTRACTOR is self-insured, provide a certificate of Permission to Self- Insure, signed by the California Department of Industrial Relations and Self- Insurance. If contractor is a sole proprietor (has no employees) than contractor must sign “Contractor Release of Liability” found at:
http://www.ci.richmond.ca.us/index.aspx?nid=61.
General Liability
(primary and excess limits
combined)
$2,000,000 per occurrence for bodily injury, personal injury and property damage. If the policy includes a general aggregate, either the general aggregate shall apply separately to this project, service or location or the minimum required aggregate limit shall be twice the per occurrence limit ($4 million aggregate limit).
Policy shall be endorsed to name the City of Richmond as an additional insured per the conditions detailed below.
EXHIBIT G
1803658v2 22
City of Richmond - Insurance Requirements - Type 2:
Professional Services
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage.
Professional Liability or Errors &
Omissions Liability –
Required for all professionals
including architects, engineers,
consultants, construction
management, counselors, medical
professionals, hospitals, clinics,
attorneys and accountants, & other
consultants as may be required by
the City.
PROJECT COST
$0 - $1 million
$1 million - $5 million
Over $5 million
REQUIRED LIMIT
$1 million p/o
$2 million p/o
$5 million p/o
Required Policy Conditions
Additional Insured Endorsement Applicable to General Liability coverage.
The City of Richmond, its officers, officials, employees, agents and volunteers are to be named as additional insureds for all liability arising out of the operations by or on behalf of the named insured including bodily injury, deaths and property damage or destruction arising in any respect directly or indirectly in the performance of this contract.
ISO form CG 20 10 (11/85) or its equivalent is required. If the Contractor is supplying their product or providing a service then the endorsement must not exclude products and completed operations coverage. If it does, then CG 20 37 (10/01) is also required.
SAMPLE Endorsements can be found at
http://www.ci.richmond.ca.us/index.aspx?nid=61.
Primary and Noncontributory The contractor’s insurance coverage must be primary coverage as it pertains to the City, its officers, officials, employees, agents and volunteers. Any insurance or self insurance maintained by the City is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance.
Waiver of Subrogation
Endorsement Form
Contractor’s insurer will provide a Waiver of Subrogation in favor of the City for Workers’ Compensation Insurance during the life of this contract.
SAMPLE Endorsements can be found at
http://www.ci.richmond.ca.us/index.aspx?nid=61.
Deductibles and Self-Insured
Retentions
Any deductible or self-insured retention must be declared to and approved by the City. At the option of the City either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City or the CONTRACTOR shall procure a financial guarantee in an amount equal to the deductible or self-insured retention guaranteeing payment of losses and related investigations, claims administration and defense expenses.
Contractor is responsible for satisfaction of the deductible and/or self -insured retention for each loss.
A. M. Best Rating A:VII or Better. If the A.M. Best Rating falls below the required rating, CONTRACTOR must replace coverage immediately and provide notice to City.
Umbrella/Excess Liability Policies
If an Umbrella or Excess Liability Policy is used to meet the liability limits, coverage shall be as broad as specified for underlying coverage’s and cover those insured in the underlying policies.
EXHIBIT G
1803658v2 23
City of Richmond - Insurance Requirements - Type 2:
Professional Services
Claims-Made Policies
If any insurance policy is written on a claims-made form: 1) the retroactive date must be shown, and must be before the date of the contract or the beginning of contract work. 2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 3) If coverage is canceled or non-renewed, and not replaced with another claims- made policy form with a retroactive date prior to the contract effective date, the Contractor must purchase an extended period coverage for a minimum of five (5) years after completion of contract work.
Subcontractors
CONTRACTOR shall include all subcontractors as insured under its policies or shall furnish to the City for review and approval, separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein.
CONTRACTOR agrees to defend and indemnify the City of Richmond for any damage resulting to it from failure of either CONTRACTOR or any subcontractor to take out or maintain the required insurance policies. The fact that insurance is obtained by CONTRACTOR, and/or CONTRACTOR’s subcontractors, will not be deemed to release or diminish the liability of CONTRACTOR, including, without limitation, liability under the indemnity provisions of this contract. Damages recoverable by CITY from CONTRACTOR or any third party will not be limited by the amount of the required insurance coverage.
Verification of Coverage
All original certificates and endorsements shall be received and approved by the City before work may begin. The City of Richmond reserves the right to require complete, certified copies of all required insurance policies including endorsements affecting the coverage at any time.
Original insurance certificates and required policy endorsements shall be mailed or delivered to the Designated Project Manager for the City of Richmond.
Insurance certificates and endorsements may be faxed to the Designated Project Manager. However, CONTRACTOR must mail the original certificates and endorsements to Designated Project Manager once faxed.
Continuous Coverage
CONTRACTOR shall maintain the required insurance for the life of the contract. Should the CONTRACTOR cease to have insurance as required during this time, all work by the CONTRACTOR pursuant to this agreement shall cease until insurance acceptable to the City is provided. In the event that CONTRACTOR fails to comply with the City’s insurance requirements, the City may take such action as it deems necessary to protect the City’s interests. Such action may include but is not limited to termination of the contract, withholding of payments, or other actions as the City deems appropriate.
If services or the scope of work extend beyond the expiration dates of the required insurance policies initially approved by the City, CONTRACTOR must provide updated certificates and endorsements indicating that the required coverage, terms and conditions are still in place. Renewal certificates and updated endorsements shall be mailed to the Designated Project Manager.
Cancellation
CONTRACTOR shall ensure that coverage shall not be cancelled, reduced or otherwise materially changed except after thirty (30) days’ prior written notice has been given to the City.
Reporting Requirements
Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers.
Consistent with Public Policy
The insuring provisions, insofar as they may be judged to be against public policy shall be void and unenforceable only to the minimum extent necessary so that the remaining terms and provisions herein may be consistent with public policy and thus enforceable
May 3, 2022
City Attorney's Office
DATE: May 3, 2022
TO: Vice Mayor Johnson and Members of the City Council
FROM:
Dave Aleshire, Interim City Attorney
Subject:
Approve second amendment to a legal services
agreement with Meyers Nave LLP and request
appropriation from the General Fund
FINANCIAL IMPACT: Approval of the proposed second amendment will increase the total contract amount to $300,000. The
City Attorney is requesting an additional
appropriation of $215,000 from the General Fund to
account string 01151014-400206 to pay for the
contract amendment.
PREVIOUS COUNCIL
ACTION:
December 14, 2021
STATEMENT OF THE
ISSUE:
To ensure the City has appropriate legal
representation related to general municipal law
advice and litigation, the City Attorney requests
approval of a second amendment in the amount of
$215,000 to an existing legal services agreement with
Meyers Nave, LLP for a total contract amount of
$300,000. In addition, the City Attorney requests a
$215,000 additional appropriation from the General
Fund to pay for the second contract amendment. This
amendment relates to authorized litigation against
Mayor Butt and requires Mayor Butt’s recusal on the
matter.
AGENDA
REPORT
May 3, 2022
RECOMMENDED ACTION:
APPROVE a second amendment in the amount of
$215,000 to a legal services agreement with the law
firm of Meyers Nave, LLP, for a total amount not to
exceed $300,000; APPROPRIATE $215,000 from the
general fund to pay for the second contract
amendment; RATIFY the first amendment executed
by the Vice Mayor; and AUTHORIZE the Vice Mayor
to execute the second amendment and any other
necessary documents. – City Attorney’s Office
(Heather Mc Laughlin 510-620-6509).
DISCUSSION:
In November of 2021, the City Attorney retained the law firm of Meyers Nave to represent the City in municipal law litigation involving constitutional law issues. The initial contract amount was $10,000. Meyers Nave was on the 2018 approved list of legal services providers and has submitted a response for the Request for Proposals process currently underway. After interviewing three firms, the City Attorney selected Meyers Nave because Meyers Nave partner, Deborah Fox, is an expert in First Amendment issues.
The Mayor posted certain confidential attorney -client privileged communications on his blog. The City sued the Mayor because the blog disclosed, without prior authorization from the City Council, certai n confidential attorney-client privileged communications between the City Attorney and the City Council. Despite requests to remove the offending posts from his E -Forum, he continued (and continues) to maintain the posts on his E-Forum. The City has obtained a temporary restraining order, preliminary injunction, and also defeated several motions seeking intervention and defeated an appeal of the same. To date, the City has prevailed on all aspects of this high profile matter. The matter has been stayed for the last several weeks while negotiations with attorney Daniel Butt and the City Attorney were moving forward.
At this time, the City would like to terminate the litigation with each side to bear its own costs. Those efforts to end the litigation have not been successful and once the parties’ agreed upon stay is lifted there will be additional litigation at the trial court and appellate court level.
On December 14, 2021, the City Council approved a first amendment to the existing $10,000 legal services agreement in the amount of $75,000 for a total contract amount of $85,000. This $75,000 amendment was signed by the Vice Mayor, but no payments were made as the Mayor raised objections. Total outstanding unreimbursed services to Meyers Nave are $226,000. The City Attorney requests a second
May 3, 2022
amendment in the amount of $215,000 for a total contract amount of $300,000 to allow Meyers Nave to continue representing the City in the pending civil litigation matter City of Richmond vs Thomas King Butt . However, if the parties do not reach a satisfactory agreement, Ms. Fox estimates that some $75,000 -$150,000 more in legal fees and costs may be needed.
Because the Mayor is the subject of the litigation, specific authorization is requested for the Vice Mayor to execute the necessary agreements and amendments and any other documents needed.
Despite the success of the City efforts, if this matter is to continue, it is anticipated that at least another year of legal action could follow, at which time the Mayor would be out of office. The litigation could be extensive including the following: (i) defense of the pending appeal of the City’s preliminary injunction victory and denial of motion to intervene; (ii) the City proceeding to obtain a permanent injunction at the trial court; (iii) a cross complaint by the Mayor for defense and indemnity; (iv) an anti-SLAPP action by the Mayor contending his First Amendment rights were violated; (v) efforts by the Mayor to force the City to pay his attorney fees; and (vi) litigation over various subsidiary matters. Deborah Fox has estimated potential attorney fees in all of these matters to exceed what has already been spent, or another roughly $190,000.
The City Attorney has worked extensively to find a compromise in this matter which avoids these extensive fees, from deleting only one of the offending posts; to proceeding with the appeal, but not litigate the other matters; to simply abandoning all actions with both sides absorbing their attorney fees. The Mayor has been unwilling to enter into any sort of agreement of any nature.
Given this situation, the options seem to be (i) go forward with the most minimal effort possible until the Mayor is out of office (estimated cost: $25,000), or (ii) simply abandon the matter without any understanding or agreement with the Mayor. The City Attorney is now fully aware of the (i) many actual litigation matters in which the City is involved; (ii) the possible future litigation matters it faces; and finally (iii) the very difficult financial issues it faces, deferred employee increases, debt needing refinancing, and other financial obligations. The parties have framed this as a matter of principle, but the City Manager has requested we reduce the legal budget by $2M, and it is frankly a frivolity to spend another $190,000 prioritizing this above the City’s other obligations. Accordingly, I recommend that the City Council instruct us to dismiss and abandon these legal proceedings and authorize the Vice Mayor to execute the 2nd Amendment.
DOCUMENTS ATTACHED:
Attachment 1 – Original Legal Services Agreement
Attachment 2 – First Amendment to the Legal Services Agreement Attachment 3 – Second Amendment to the Legal Services Agreement
First Amendment to Agreement for Legal Services A-1
FIRST AMENDMENT TO AGREEMENT FOR LEGAL SERVICES
BETWEEN
THE CITY OF RICHMOND
AND
MEYERS NAVE
This First Amendment to the A greement for L egal Services between the City of Richmond (“City”) and MEYERS NAVE (“Special Counsel”) (the "First Amendment") is e ntered into as of NOVEMBER 23, 2021, by and between the City and Special Counsel with reference to the following facts:
RECITALS
WHEREAS, on November 19 the City and Special Counsel entered into that certain Legal Services Agreement (“Original Agreement”) for representation of the City in connection with municipal law advice and municipal law litigation matters, including appeals for a total contract amount of Ten Thousand Dollars ($10,000) and expiration term date of June 30, 2023; and
WHEREAS, the City now desires for Special Counsel t o continue its representation of the City and to inc rease the compensation limit by Seventy Five Thousand Dollars ($75,000); and
WHEREAS, the City and Special Counsel desire to amend the Original Agreement pursuant to this First Amendment.
NOW, THEREFORE, in consideration of the recitals hereof, and other mutual covenants and promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and Special Counsel agree as follows:
1. Amendment. Exhibit A of the Original Agreement, “Scope of Work and Schedule of Fees & Charges,” is hereby amended to read as shown in Attachment 1 to this First Amendment.
2. Effect of First Amendment. Except as provided in this First Amendment, all other terms of the Original Agreement shall remain in full force and effect.
3. Counterparts. This First Amendment may be executed in counterparts each of which shall be an original and all of which shall constitute one and the same instrument.
[Signatures on following page]
DocuSign Envelope ID: D266A387-190C-431D-8AF3-1093C70E2DFE
First Amendment to Agreement for Legal Services A-2
IN WITNESS WHEREOF, the City and Special Counsel have caused this First Amendment to be effective as of the last date written below.
CITY OF RICHMOND MEYERS NAVE
________________________ By __________________________ Mayor
Title _________________________
Attest:
By: _____________________
City Clerk
Approved as to form:
By: _____________________
City Attorney
DocuSign Envelope ID: D266A387-190C-431D-8AF3-1093C70E2DFE Principal
First Amendment to Agreement for Legal Services A-3
Attachment 1
SCOPE OF WORK AND SCHEDULE OF FEES & CHARGES
Scope of work:
Special Counsel shall provide municipal law advice and represent the City of Richmond in municipal law litigation matters, including appeals, as assigned by the City Attorney.
(City of Richmond Contact Attorney: Shannon L. Moore, Sr. Assistant City Attorney)
Schedule of Fees & Charges:
Hourly Rates
PRINCIPAL(S) $495/hour
SENIOR PRINCIPAL(S) $495/hour
OFCOUNSEL $450/hour
ASSOCIATE $395/hour
Compensation:
Only those costs and expenses set forth in Section III of Exhibit "B", entitled "Reimbursements" shall be paid to Special Counsel.
Total compensation for legal services and reimbursements shall be charged in accordance with Exhibits "A" and "B" and shall not exceed the sum of Eighty Five Thousand Dollar ($ 85,000) for attorneys’ fees and reimbursements.
DocuSign Envelope ID: D266A387-190C-431D-8AF3-1093C70E2DFE
Second Amendment to Agreement for Legal Services A-1
SECOND AMENDMENT TO AGREEMENT FOR LEGAL SERVICES
BETWEEN
THE CITY OF RICHMOND
AND
MEYERS NAVE
This Second Amendment to the Agreement for Legal Services between the City of Richmond (“City”) and MEYERS NAVE (“Special Counsel ”) (the " Second Amendment") i s ent ered into as of MARCH 18 , 20 22, by and between the City and Special Counsel with reference to the following facts:
RECITALS
WHEREAS, the City and Special Counsel entered into that certain Legal Services Agreement (“Original Agreement”) for representation of the City and City-related entities; and
WHEREAS, the City Council approved an amendment to the Original Agreement to increase compensation by $75,000 but the Mayor refused to sign it; and
WHEREAS, the City now desires to ratify the amendment signed by the Vice Mayor and to increase the compensation to $300,000 for work done and to bring the case to a conclusion; and
WHEREAS, the City and Special Counsel desire to amend the Original Agreement pursuant to this Second Amendment.
NOW, THEREFO RE, in consideration of the r ecitals hereof, and other mutual covenants and promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and Special Counsel agree as follows:
1. Amendment 1. Exhibit A of the Original Agreement, “Scope of Work and Schedule of Fees & Charges,” is hereby amended to read as shown in Attachment 1 to this Second Amendment.
2. Effect of Second Amendment. Except as provided in this Second Amendment, all other terms of the First Agreement shall remain in full force and effect.
3. Counterparts. This Second Amendment may be executed in counterparts each of which shall be an original and all of which shall constitute one and the same instrument.
Second Amendment to Agreement for Legal Services A-2
IN WITNESS WHEREOF , the City and Special Counsel have caused t his Second Amendment to be effective as of the last date written below.
CITY OF RICHMOND MEYERS NAVE
________________________ By __________________________ Mayor
Title _________________________
Date:____________________ Date:_________________________
Attest:
By: _____________________
City Clerk
Approved as to form:
By: _____________________
Interim City Attorney
Second Amendment to Agreement for Legal Services A-3
Attachment 1
SCOPE OF WORK AND SCHEDULE OF FEES & CHARGES
Scope of work:
Special Counsel shall provide municipal law advice and represent the City of Richmond in municipal law litigation matters, including appeals, as assigned by the City Attorney.
(City of Richmond Contact Attorney: Shannon L. Moore, Sr. Assistant City Attorney)
Schedule of Fees & Charges:
Hourly Rates
PRINCIPAL(S) $495/hour
SENIOR PRINCIPAL(S) $495/hour
OF COUNSEL $450/hour
ASSOCIATE $395/hour
Compensation:
Only those costs and expenses set forth in Section III of Exhibit "B", entitled "Reimbursements" shall be paid to Special Counsel.
Total compensation for legal services and reimbursements shall be charged in accordance with Exhibits "A" and "B" and shall not exceed the sum of Three Hundred Thousand Dollar ($300,000) for attorneys’ fees and reimbursements.
May 3, 2022
Economic Development
DATE: May 3, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Shasa Curl, City Manager
Thomas Omolo, Senior Management Analyst
Lizeht Zepeda, Senior Business Assistance Officer
Subject:
Downtown Richmond Property and Business
Improvement District (DRPBID) Renewal
FINANCIAL IMPACT: There is no immediate financial impact. If the DRPBID renewal is successful, then the City will continue its
annual contribution, which would be $39,305.10
beginning in the fiscal year 2022-2023 (01917090-
400391).
PREVIOUS COUNCIL
ACTION:
July 6, 2021
STATEMENT OF THE
ISSUE:
The City of Richmond is a property owner in the
Downtown Richmond Property and Business
Improvement District (DRPBID) and, as such,
participates in the process to vote on the formation and continuance of the DRPBID program. City staff is
requesting authorization for the City Manager to execute all documents on behalf of the City of Richmond in
support of the renewal of the DRPBID.
RECOMMENDED ACTION:
ADOPT a resolution authorizing the City Manager to
execute all documents on behalf of the City of
Richmond in support of the renewal of the Downtown
Richmond Property and Business Improvement District
(DRPBID) – City Manager’s Office (Shasa Curl/Thomas
Omolo 620-5560).
AGENDA
REPORT
May 3, 2022
DISCUSSION:
The Richmond Main Street Initiative and Downtown Richmond Property and Business Improvement District (DRPBID) property owners have proposed the renewal of the DRPBID to continue providing activities and improvements which constitute and convey special benefits to assessed property owners. The renewed DRPBID will provide additional maintenance, safety and nuisance abatement, marketing, promotions and business development, capital improvements, and related administration to assessed properties within the DRPBID boundary.
After a majority of the property owners subject to assessment, weighted according to the amount of assessment to be paid by each property owner, petitioned the City Council to establish the Downtown Richmond Property and Business Improvement District (“DRPBID”); the City Council adopted a resolution on July 17, 2012, to establish the DRPBID (which includes City property). The DRPBID was renewed at the July 11, 2017, Richmond City Council meeting. The City of Richmond is a significant property owner in the district. City staff is requesting City Council approval for renewing of the DRPBID program. This support is through designating the City Manager with the authority to sign petitions and ballots in favor of formation and signing all other documents necessary on behalf of City-owned properties during the renewal process.
The DRPBID will be governed in accordance with a written Management District Plan, pursuant to Streets and Highways Code Section 36622. The Plan sets guidelines for the district, including the assessment rate, service plan, collection provisions, and governance (Attachment 2).
The DRPBID proposed assessment rate (cost to the parcel owner) is based on parcel type and square footage. The initial annual assessment rate applied to commercial parcels will be $0.15 per square foot per year, and applied to non-profit housing parcels will be $0.08 per square foot per year. Assessment rates may be subject to an increase of no more than three percent (3%) per year.
Under “The Right to Vote on Taxes Act” (also known as Proposition 218), all public agencies are required to pay the same assessments for a public property that applies to private property unless they can demonstrate by clear and convincing evidence that the public property does not receive a benefit. The Management District Plan provides that the City and other public entities should pay their “fair share” of all assessments.
District renewal requires the submittal of petitions from property owners representing at least 50 percent of the total annual assessment, followed by a ballot vote of the property owners. The “Right to Vote on Taxes Act” requires that more than 50 percent of the ballots received, weighted by assessment, be in support of the district. The final renewal of the district boundaries and reading of the vote is expected to take place in front of the City Council in or around July 2022, depending on the timing of the ballot mailings.
May 3, 2022
DOCUMENTS ATTACHED:
Attachment 1 – Resolution Authorize City Manager to Sign Documents Attachment 2 – DRPBID Management District Plan
Attachment 3 – District Parcels Map
Attachment 4 – City of Richmond and Redevelopment Agency Assessed Properties Attachment 5 – DRBID All Properties and Owners
733\12\174097.1 1
RESOLUTION NO. _______
A RESOLUTION OF THE RICHMOND CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO SIGN THE
PETITION, BALLOT, AND OTHER DOCUMENTS FOR ALL
CITY-OWNED PROPERTIES IN SUPPORT OF THE RENEWAL
OF THE DOWNTOWN RICHMOND PROPERTY & BUSINESS
IMPROVEMENT DISTRICT.
WHEREAS, the property owners within the downtown commercial core propose renewal of the Downtown Richmond Property and Business Improvement District ( DRPBID) pursuant to the Property and Business Improvement Law of 1994, set forth in California Streets and Highways Code section 36600 et seq., which authorizes cities to establish property and business improvement districts for the purposes of promoting economic revitalization and financing activities and services to improve the overall ec onomic climate in said districts; and
WHEREAS, the City owns several properties within the proposed DRPBID, a list of which is attached as Exhibit A; and
WHEREAS, City-owned properties will have a total first -year annual assessment of approximately $39 ,305.10. Future assessment rates may be subject to an increase of no more than three percent (3%) annually. Funds are currently budgeted for continued participation in the DRPBID; and
WHEREAS, the City Council has determined that the public interest will be served by having these City properties participate in the DRPBID.
NOW, THEREFORE, BE IT RESOLVED, that the City Manager is authorized to sign all documents on behalf of the City of Richmond in support of the DRPBID:
---------------------------------------
I certify that the foregoing Resolution was passed and adopted by the Richmond City Council at a regular meeting held on , 2022, by the following vote:
AYES:
NOES:
ABSTENTIONS:
733\12\174097.1 2
ABSENT:
______________________________
City Clerk
Approved:
_____________________________
Mayor
Approved as to Form:
_____________________________
City Attorney
DRPBID Management District Plan April 5, 2022 i
2023-2030
April 5, 2022 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
DOWNTOWN RICHMOND PROPERTY AND BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN AND ENGINEER’S REPORT
DRPBID Management District Plan April 5, 2022 ii Contents I. Overview .................................................................................................................................................... 1 II. Background ............................................................................................................................................... 3 III. Accomplishments .................................................................................................................................... 4 IV. Boundaries ................................................................................................................................................. 5 V. Service Plan & Budget ............................................................................................................................. 6 A. Establishment 6 B. Improvements, Maintenance and Activities 6 C. Annual Assessment Budget 7 D. Service Budget 8 E. Annual Maximum Assessment Budget 8 VI. Assessment Rate ..................................................................................................................................... 10 A. Assessment Formula 10 B. Changes in Zoning, Ownership, Building Square Footage, or Parcel Size 10 C. Assessment Notice 10 D. Time and Manner for Collecting Assessments 10 VII. Governance ............................................................................................................................................. 11 A. Owners’ Association 11 B. Brown Act & Public Records Act Compliance 11 C. Annual Report 11 VIII. Engineer’s Report .................................................................................................................................. 12 Appendix 1 – Maximum Annual Assessment Rates ........................................................................................... 26 Appendix 2 – PBID law ........................................................................................................................................... 27 Appendix 3 – Map ..................................................................................................................................................... 39 Appendix 4 – Parcel Assessment Calculations .................................................................................................... 40 Appendix 5 – Total Estimated Maximum Cost Of Improvements, Maintenance, And Activities ... Error! Bookmark not defined. Prepared by Civitas www.civitasadvisors.com (800)999-7781
DRPBID Management District Plan April 5, 2022 Page 1 I. OVERVIEW Developed by a growing coalition of property owners, Downtown Richmond Property and Business Improvement District (DRPBID) is a benefit assessment district whose purpose is to provide improvements, maintenance and activities that constitute and convey a special benefit to assessed parcels. As required by state law, property owners have created this Management District Plan (Plan) to renew the DRPBID. This approach has been used successfully in other cities throughout the country to provide special benefits to property owners, namely increased sales, attraction of new tenants, increased occupancies, and specifically increased property values. As required by state law, property owners have created this Management District Plan (Plan) to renew the DRPBID. Location: The DRPBID generally includes parcels along portions of Macdonald Avenue from 6th Street (in the west) to the BART tracks (in the east); portions of 8th Street and Harbour Way from Barrett Avenue (in the north) to Bissell Avenue (in the south); portions of Marina Way from Nevin Avenue (in the north) to Bissell Avenue (in the south); and portions of 16th Street from Macdonald Avenue (in the north) to Bissell Avenue (in the south), as shown on the map in Section IV. Purpose: The purpose of the DRPBID is to provide improvements, maintenance, and activities, which constitute and convey a special benefit to assessed parcels. The DRPBID will provide Maintenance, Safety and Nuisance Abatement; Marketing, Promotions and Business Development; Capital Improvements; and related administration directly and only to assessed parcels within its boundaries. Budget: The DRPBID annual assessment budget for the initial year of its seven (7) year operation is anticipated to be $239,990.60. The annual budget may be subject to an increase in assessment rates of no more than three percent (3%) per year. The assessment funds shall be supplemented by non-assessment funds (such as grants and event income), so that the total budget for the initial year is estimated at $255,098.26. Cost: The assessment rate (cost to the parcel owner) is based on parcel square footage. The initial annual rate to each parcel is shown in the table below. Over the seven (7) year term of the DRPBID, the assessment rate may be subject to annual increases that shall not exceed three percent (3%) per year. Increases shall be determined by the Owners’ Association Board of Directors and may vary each year. Parcel type Assessment rate (per square foot) Commercial $0.15 Non-profit Housing $0.08 Renewal: DRPBID renewal requires submittal of petitions from property owners representing more than fifty percent (50%) of the total assessment. The “Right to Vote on Taxes Act” (also known as Proposition 218) requires a ballot vote in which more than fifty percent (50%) of the ballots received, weighted by assessment, be in support of the DRPBID.
DRPBID Management District Plan April 5, 2022 Page 2 Duration: The renewed DRPBID will have a seven (7) year life beginning January 1, 2023 to December 31, 2029. After the seven (7) year term, the DRPBID may be renewed again for up to ten (10) years if property owners support continuing the programs. Management: Richmond Main Street Initiative (RMSI) shall continue to serve as the Owners’ Association to provide improvements, maintenance, and activities for the DRPBID. The City of Richmond will enter into a contract with RMSI regarding the provision of improvements and services for the DRPBID. RMSI must provide an annual report on improvements, maintenance, and activities and expenditures to the City, which is also available to property owners.
DRPBID Management District Plan April 5, 2022 Page 3 II. BACKGROUND The International Downtown Association estimates that more than 1,500 Property and Business Improvement Districts (PBIDs) currently operate throughout the United States and Canada. PBIDs are a time-tested tool for property owners who wish to come together and obtain collective services which benefit their properties. PBIDs provide supplemental services in addition to those provided by local government. They may also finance physical and capital improvements. These improvements and activities are concentrated within a distinct geographic area and are funded by a special parcel assessment. Services and improvements are only provided to those who pay the assessment. Although funds are collected by the local government, they are then directed to a private nonprofit. The nonprofit implements services and provides day-to-day oversight. The nonprofit is managed by a Board of Directors representing those who pay the assessment, to help ensure the services meet the needs of property owners and are responsive to changing conditions within the PBID. PBIDs all over the globe have been proven to work by providing services that improve the overall viability of commercial districts, resulting in higher property values, lease rates, occupancy rates, and sales volumes. The DRPBID will be renewed pursuant to a state law that took effect in January of 1995. The “Property and Business Improvement District Law of 1994,” which was signed into law by Governor Pete Wilson, ushered in a new generation of Property and Business Improvement Districts in California. Key provisions of the law include: Ø Allows a wide variety of services which are tailored to meet specific needs of assessed properties in each individual PBID; Ø Requires property owner input and support throughout the renewal process; Ø Requires written support on both a petition and ballot from property owners paying 50% of proposed assessments; Ø Allows for a designated, private nonprofit corporation to manage funds and implement programs, with oversight from property owners and the City of Richmond (City); Ø Requires limits for assessment rates to ensure that they do not exceed the amount owners are willing to pay; and Ø Requires the PBID be renewed after a certain time period, making it accountable to property owners. The “Property and Business Improvement Business District Law of 1994” is provided in Appendix 2 of this document.
DRPBID Management District Plan April 5, 2022 Page 4 III. ACCOMPLISHMENTS From 2017 to 2020, RMSI accomplished significant efforts within the DRPBID, helping to establish long-term sustainability. Accomplishments are as follows: • Assisted Safety 1st in managing community liaisons: o 10,694 hospitality and maintenance service hours o 1,554 bags of trash and debris removed o 181 cases of graffiti abatement o 84 visitor and homeless “touches”; • Served as a leading partner in the design and unveiling of the Downtown Richmond Business Hub resulting in 3 new businesses. • Provided 518 hours of business assistance: o 19 workshops, total attendance 226; • Initiated and maintained a comprehensive “Community Resource Directory” providing access to current pandemic-related health orders, safety guidelines, employer obligations, and relief programs; • Instituted a new E-commerce program in partnership with Square and Renaissance Entrepreneurship Center resulting in: o 115 hours of one-on-one technical assistance including advising on business licensing, permitting, COVID-19 relief o Letters of recommendation and business equipment to 92 current and prospective businesses; • Unveiled the “Heart of Richmond” series, a robust multi-media digital storytelling and social media advertising campaign: o Showcased 12 diverse business owners, resulting in two businesses being featured in the July 2020 cover story of East Bay Express; • Partnered with Travis Credit Union to launch “Protecting Lives & Livelihoods” campaign in response to the COVID-19 pandemic featuring 4 Downtown vendors and benefitting 17 local businesses: o 140 Masks distributed, o 55 Face shields distributed, o 130 Hand Sanitizers; • Provided COVID-19 Response, Meal Giveaway Program: o Contributed 1876 hours of volunteer services and 82,500 meals to Richmond residents; • Hired 2 Richmond residents as Census 2020 phone bankers to encourage households to complete the census survey and ensure a complete count of our historically undercounted neighborhoods; and • Promoted and prominently featured 20 Downtown businesses in our Shop Local Safely for Small Business Saturday.
DRPBID Management District Plan April 5, 2022 Page 5 IV. BOUNDARIES The DRPBID generally includes parcels along portions of Macdonald Avenue from 6th Street (in the west) to the BART tracks (in the east); portions of 8th Street and Harbour Way from Barrett Avenue (in the north) to Bissell Avenue (in the south); portions of Marina Way from Nevin Avenue (in the north) to Bissell Avenue (in the south); and portions of 16th Street from Macdonald Avenue (in the north) to Bissell Avenue (in the south). The DRPBID includes approximately 81 parcels with 34 parcel owners. The DRPBID boundary is illustrated by the map below. This plan, including a copy of this map is on file with the Richmond City Clerk. A larger map is available on request by calling (916)437-4300 or (800)999-7781.
DRPBID Management District Plan April 5, 2022 Page 6 V. SERVICE PLAN & BUDGET A. Establishment Property and business owners in Downtown Richmond have been concerned about the need for coordinated supplemental services in the area for several years. City services and efforts in the area have been welcomed, but limited resources have not allowed for a more comprehensive approach to managing the commercial area. A service plan to provide special benefits to assessed properties was developed using several methods. A service plan to provide special benefits to assessed properties was developed using several methods. A series of property owner meetings and an analysis of current property conditions were conducted. The primary needs identified were: Maintenance, Safety and Nuisance Abatement; Marketing, Promotions and Business Development; and Capital Improvements. To meet those needs, the DRPBID shall provide related improvements, maintenance and activities to assessed parcels within its boundaries. B. Improvements, Maintenance and Activities The DRPBID will provide supplemental improvements, maintenance and activities that are above and beyond those provided by the City and other government agencies. None of the services to be provided by the DRPBID are provided by the City or other government agencies. The improvements and activities will be provided directly and only to assessed parcels; they will not be provided to parcels that are not assessed. Each and every service is unique to the DRPBID, thus the benefits provided are particular and distinct to each assessed parcel. 1. Maintenance, Safety, and Nuisance Abatement The maintenance program will make Downtown Richmond cleaner, more accessible, and more attractive to potential tenants and customers. Maintenance services may include litter and graffiti removal, sidewalk pressure washing, weed abatement, median maintenance, and communicating code violations by absentee property owners to the City. Safety services will focus on making Downtown Richmond a safer place to do business. Safety services may include security patrols, coordination with the police department and private security agencies operating within the DRPBID, space management improvements to encourage safety on assessed parcels, and dissemination of safety information to property owners and tenants. Nuisance abatement services will be deployed throughout the DRPBID to increase the usability of assessed parcels and address issues that discourage property owners, tenants, and customers from visiting assessed parcels within the DRPBID. Nuisance abatement services may include: an ambassador to provide additional services to mitigate the negative impacts of homeless individuals on assessed properties; establishment and maintenance of a radio network to ensure quick response times to incidents; working with property owners and local agencies to address blighted areas; and enhanced lighting and linkages to decrease that likelihood of nuisance activities from occurring. 2. Marketing, Promotions, and Business Development The DRPBID will have a unified marketing and promotions program that will collaborate with DRPBID businesses to market and promote the DRPBID to the public as a single destination with a rich collection of attractions, businesses, events and services. The marketing and promotions program may include the use of pole banners, wayfinding signage, visitor guides, press releases, e-newsletters, e-calendars, a DRPBID website, marketing research, special events,
DRPBID Management District Plan April 5, 2022 Page 7 and other similar projects to increase visitation and commerce on assessed parcels. Business development programs will seek to attract and retain tenants for the assessed parcels. The business development program may include retail and business recruitment activities to encourage businesses to locate on assessed parcels; market research and maintenance of a business databases; advocacy for business-friendly policies on behalf of assessed parcels; providing staff who will serve as a liaison between property owners, brokers, tenants, businesses, and government agencies to facilitate growth and retail development on assessed parcels; and creating an active evening and weekend environment to increase commerce on assessed parcels. 3. Capital Improvements The capital improvements program will use a multi-faceted approach to planning, design and management of public spaces in the DRPBID. DRPBID funds will be leveraged to create a unique sense of place. Capital improvements may include wayfinding signage/banners, seasonal banners and lighting, trash receptacles, and other public space improvements. 4. Administration The administration portion of the budget will be utilized for administrative costs associated with providing the services. Those costs may include rent, telephone charges, legal fees, accounting fees, postage, administrative staff, insurance, and other general office expenses. 5. Contingency/Reserve The budget includes a contingency line item to account for unanticipated program costs and uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of RMSI. Reserve funds may be used for program costs in any proportion deemed appropriate by RMSI. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of money from the reserve fund shall be set by RMSI. 6. Collection Fees The budget includes a collection fees line item to account for City and County administrative fees for levying, collecting, forwarding the assessment to the Owners’ Association and accounting. C. Annual Assessment Budget A projected seven (7) year budget for the DRPBID is provided below. The overall assessment budget shall remain consistent with this Plan. In the event of a legal challenge, assessment funds may be used to defend the DRPBID. The annual assessment budget is based on the following assumptions and guidelines: 1. The cost of providing improvements, maintenance and activities may vary depending upon the market cost for those improvements, maintenance and activities. Expenditures may require adjustment up or down to continue the intended level of improvements, maintenance and activities. RSMI and their board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. Any change will be approved by the RSMI and submitted with the Annual Report. 2. Funds not spent in any given year may be rolled over to the next year.
DRPBID Management District Plan April 5, 2022 Page 8
3. The assessment rate may be subject to annual increases that will not exceed three percent per year. Increases shall be determined by RMSI and will vary each year. 4. Each budget category includes all costs related to providing that improvements, maintenance and activities. For example, the maintenance budget includes the cost of staff time dedicated to overseeing and implementing the maintenance program. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The staffing levels necessary to provide the services below shall be determined by RMSI on an as-needed basis. D. Service Budget The total improvement, maintenance and activity budget for 2022 that is funded by property assessments is $239,990.60. In addition to the assessment revenue, the programs will be supplemented by non-assessment funds. The total of non-assessment and assessment funds, and the determination of special and general benefits, are included in the Engineer’s Report. Following is a table of the estimated total assessment budget allocations for each category for the initial year of operations.
E. Annual Maximum Assessment Budget The budget below assumes the maximum annual increase of three percent (3%) is enacted and that there are no changes to the categorical budget allocations. Year Maintenance, Safety and Nuisance Abatement Marketing, Promotions and Business Development
Administration Contingency/Reserve Capital Improvements Collection Fees Total 2023 $119,995.30 $64,797.46 $35,998.59 $11,999.53 $4,799.81 $2,399.91 $239,990.60 2024 $123,595.16 $66,741.39 $37,078.55 $12,359.52 $4,943.81 $2,471.90 $247,190.32 2025 $127,303.01 $68,743.63 $38,190.90 $12,730.30 $5,092.12 $2,546.06 $254,606.03 2026 $131,122.10 $70,805.94 $39,336.63 $13,112.21 $5,244.88 $2,622.44 $262,244.21 Maintenance, Safety, and Nuisance Abatement, $119,995.30 , 50% Marketing, Promotions, and Business Development, $64,797.46 , 27% Administration, $35,998.59 , 15%
Contingency / Reserve, $11,999.53 , 5%
Capital Improvements, $4,799.81 , 2% Collection Fees, $2,399.91 , 1%Annual Assessment Budget-$239,990.60
DRPBID Management District Plan April 5, 2022 Page 9 2027 $135,055.77 $72,930.11 $40,516.73 $13,505.58 $5,402.23 $2,701.12 $270,111.53 2028 $139,107.44 $75,118.02 $41,732.23 $13,910.74 $5,564.30 $2,782.15 $278,214.88 2029 $143,280.66 $77,371.56 $42,984.20 $14,328.07 $5,731.23 $2,865.61 $286,561.33 Total $919,459.45 $496,508.10 $275,837.83 $91,945.94 $36,778.38 $18,389.19 $1,838,918.90
DRPBID Management District Plan April 5, 2022 Page 10 VI. ASSESSMENT RATE A. Assessment Formula Individual assessed parcels shall be assessed an assessment rate according to each assessed parcel’s proportionate special benefit derived from the services provided to each assessed parcel, as shown in the table below. Parcel type Assessment rate (per square foot) Commercial $0.15 Non-profit Housing $0.08 B. Changes in Zoning, Ownership, Building Square Footage, or Parcel Size If the zoning, ownership, building square footage, or size of a parcel within the DRPBID boundary changes during the term of the DRPBID the assessment amount may be modified according to the assessment methodology detailed in this Plan that is applicable to the parcel. These changes may be a result of land adjustments (including but not limited to lot splits, consolidations, right away setbacks, etc.), new construction, new ownership, or changes in zoning. C. Assessment Notice During the hearing process, an Assessment Ballot will be sent to owners of each parcel in the DRPBID. The Assessment Ballot provides an estimated assessment. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage or type differ from those used to calculate the amount shown on the notice, which can be found in Appendix 4. D. Time and Manner for Collecting Assessments As provided by State Law, the DRPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Contra Costa. Alternatively, the DRPBID assessment may be collected by the City of Richmond if needed. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Contra Costa and City of Richmond shall distribute funds collected to RMSI. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the DRPBID assessments. E. Bonds Bonds shall not be issued.
DRPBID Management District Plan April 5, 2022 Page 11 VII. GOVERNANCE A. Owners’ Association The DRPBID shall continue to be governed by Richmond Main Street Initiative (RMSI), with oversight from the Richmond City Council. RMSI shall serve as the Owners’ Association described in Streets and Highways Code §36651. The Board of Directors of RMSI and its staff are charged with the day-to-day operations of the DRPBID. A majority of the Board of Directors of RMSI must be parcel owners paying the assessment. In addition, the Board of Directors must represent a variety of interests within the DRPBID and respond to the needs of all properties within the DRPBID. The Board of Directors shall act in the best interests of all the properties within the DRPIBD. The City Council or Board of Directors reserves the right to amend or modify the composition of the Board by a separate resolution without amending this Management District Plan. B. Brown Act & Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association must act as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of RMSI Board of Directors and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. C. Annual Report RMSI shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 2). The annual report is a prospective report for the upcoming year and must include: 1. Any proposed changes in the boundaries of the DRPBID or in any benefit zones or classification of property within the district; 2. The improvements, maintenance, and activities to be provided for that fiscal year; 3. The estimated cost of providing the improvements, maintenance, and activities to be provided for that fiscal year; 4. The method and basis of levying the assessment in sufficient detail to allow each real property owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year; 5. The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and 6. The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this Plan.
DRPBID Management District Plan April 5, 2022 Page 12 VIII. ENGINEER’S REPORT The DRPBID’s parcel assessments will be imposed in accordance with the provisions of Article XIII D of the California Constitution. Article XIII D provides that “only special benefits are assessable,”1 and requires the City to “separate the general benefits from the special benefits conferred on a parcel.”2 Special benefits are a “particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public-at-large.”3 Conversely, a general benefit is “conferred on real property located in the district or to the public-at-large.”4 Assessment law also mandates that “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”5 The Engineer determined the total cost of the improvements and activities, quantified the general benefit accruing to the public-at-large and non-assessed parcels adjacent to and within the DRPBID, and separated that amount from the special benefit accruing to the assessed parcels. Then, the Engineer determined the proportional special benefit derived by each parcel and allocated the special benefit value of the improvements and activities accordingly. The Engineer’s determinations and detailed calculations are summarized in this report. A. Separation of General and Special Benefits Each of the improvements and activities, and the associated costs and assessments within the DRPBID, were reviewed, identified, and allocated based on special and general benefits pursuant to Article XIII D of the California Constitution. The assessment has been apportioned based on the proportional special benefits conferred to the assessed parcels located within the DRPBID boundaries as determined below. 1. General Benefits Unlike special benefits, which are conferred directly and only upon assessed parcels, a general benefit is conferred on the general public or non-assessed parcels. Existing City and other public services, which are provided to every person and parcel, everywhere within the City, are an example of a general benefit. Although the DRPBID’s boundaries have been narrowly drawn, programs have been carefully designed to provide special benefits, and activities and improvements will only be provided directly to assessed parcels, it is acknowledged that there will be general benefits as a result of the DRPBID’s activities and improvements. The California Constitution mandates that “only special benefits are assessable, and an agency shall separate the general benefits from the special benefits.”6 “Generally, this separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.”7 The first step that must be undertaken to separate general and special benefits provided by the DRPBID’s activities and improvements is to identify and quantify the general 1 Cal. Const., art. XIII D, §4(a) 2 Cal. Const., art. XIII D, §4(a) 3 Id, §2(i) 4 Cal Const., art XIII D §2(i) 5 Cal. Const., art. XIII D, §4(a) 6 Cal. Const., art XIII D §4(a) 7 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal.App.4th 416
DRPBID Management District Plan April 5, 2022 Page 13 benefits. There are two bodies who can receive general benefits: the public-at-large within the DRPBID, and non-assessed parcels within and surrounding the DRPBID. a. General Benefit to the Public-at-Large Although the activities and improvements are narrowly designed and carefully implemented to specially benefit the assessed parcels, and only provided directly to assessed parcels, they will generate a general benefit to the public-at-large within the DRPBID. State law indicates that “Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.”8 However, “the mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.”9 Further, “the value of any incidental or collateral effects that arise from the improvements, maintenance or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.”10 Thus, although there may be some incidental benefit to persons engaged in business on the assessed parcels, that incidental benefit is not considered general benefit because it is inherently produced by activities and improvements that provide special benefits to the assessed parcels. There is, however, a general benefit to persons not engaged in business on the assessed parcels. Intercept surveys conducted in similar districts have found that approximately 97.3% of pedestrian traffic within PBID boundaries is engaged in business on assessed parcels, while the remaining approximately 2.7% is simply passing through and not engaging in business on the assessed parcels11. The 2.7% of traffic passing through does not have any connection to the assessed parcels, and therefore does not represent a special benefit to the assessed parcels. The 2.7% will, however, receive a derivative and indirect general benefit as a result of the activities and improvements being provided in the DRPBID. Therefore, it is estimated that 2.7% of the benefit created by the DRPBID’s services is general benefit provided to the public-at-large. To ensure that the assessment dollars do not fund general benefits to the public-at-large, that portion of the cost of activities and improvements will be paid for with funds not obtained through assessments. Using the 2.7% figure, based on the initial year activity and improvement budget, the value of this general benefit to the public-at-large is $6887.66 ($255,098.26*0.027). b. General Benefit to Non-Assessed Parcels Although they are only provided directly to the assessed parcels, the DRPBID’s activities and improvements may also confer general benefits upon non-assessed parcels within and surrounding the DRPBID. One study examining property values in PBID areas found “no evidence of spill-over impacts (either good or bad) on commercial properties located just outside the BID’s boundaries;”12 however, the California Court of Appeals has stated that “services specifically intended for assessed parcels concomitantly confer collateral general benefits to surrounding properties.”13 It is reasonable 8 Streets and Highways Code section 36601(h)(2) 9 Ibid 10 Streets and Highways Code Section 36622(k)(2) 11 Surveys conducted in: North Park, San Diego (January 2015); Mack Road, Sacramento (July 2014); and Sunrise MarketPlace, Citrus Heights (December 2013) 12 Furman Center for Real Estate & Urban Policy; The Impact of Business Improvement Districts on Property Values: Evidence from New York City (2007) p. 4 13 Beutz v. Riverside (2010) 184 Cal.App.4th 1516
DRPBID Management District Plan April 5, 2022 Page 14 to conclude that activities and improvements within the DRPBID will have an incidental impact on non-assessed parcels surrounding or within the DRPBID boundaries. Although the legislature has indicated that “the value of any incidental or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit,”14 the California Court of Appeals has noted that “the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement…or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement.”15 Those derivative and indirect impacts are considered general benefits and will be quantified and separated. In this Engineer’s opinion, because activities and improvements are provided only within the DRPBID and on its perimeter, parcels separated from the DRPBID by either at least one intervening parcel or an impassable physical barrier such as a wall, freeway, or ditch will not receive spill over benefits. Parcels separated from the DRPBID will not benefit because they are physically removed from the actual location of activities and improvements provided, and do not face serviced parcels. Therefore, this analysis considers non-assessed parcels within the DRPBID’s boundaries and surrounding parcels that are immediately adjacent to and accessible from the DRPBID’s boundaries. The total DRPBID activity and improvement budget for the first year is $255,098.26. After reducing the activity and improvement budget by the general benefit to the public-at-large ($6,887.66), the remaining benefit to parcels is $248,210.60 . This benefit has been distributed to both assessed and non-assessed parcels using the following methodology. The general benefit to the public-at-large has been proportionally allocated to the DRPBID’s activity and improvement categories as shown in the following table. Category Benefit to Parcels Benefit to Public-at-Large Total Maintenance, Safety, and Nuisance Abatement $124,408.17 $3,452.23 $127,860.40 Marketing, Promotions and Business Development $66,701.87 $1,850.93 $68,552.80 Capital Improvements $4,976.32 $138.09 $5,114.41 Administration, Contingency/Reserve, & Collection Fees $52,124.24 $1446.41 $53,570.65 Total $248,210.60 $6887.66 $255,098.26 To determine the general benefit to parcels, the Engineer assigned each parcel group a benefit factor, determined the appropriate parcel characteristic to use in the calculation, multiplied the benefit factor by the benefit characteristic to determine the benefit units attributable to each parcel group, and 14 Streets and Highways Code section 36622(k)(2) 15 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077
DRPBID Management District Plan April 5, 2022 Page 15 apportioned the remaining service cost (service cost minus general benefit to the public) in accordance with the benefit units derived by each parcel group. i. Benefit Factors All parcels within and adjacent to the DRPBID have been assigned a benefit factor to mathematically represent the proportional special and general benefit and quantify the value of each. The determination of benefit factors for each type of activity and improvement follows. Improvements The improvements to be provided by the DRPBID provide two types of special benefits: • Improvement – The primary special benefit provided by the DRPBID’s improvements is the improvements themselves, which are available to tenants and customers of assessed parcels. • Proximity – The DRPBID’s improvements also provide the special benefit of being in proximity to a parcel that is benefitting from an improvement, as parcels will enjoy the spillover benefits of neighboring parcels utilizing the improvements. The majority of the benefit is the improvements themselves; proximity is a lesser benefit. It is this Engineer’s estimation that eighty-five percent (85%) of the special benefit from the DRPBID’s improvements is the improvement, while the proximity special benefit accounts for fifteen percent (15%) of the special benefit. Assessed parcels will receive both benefits; non-assessed parcels within and adjacent to the DRPBID will not be directly improved, and therefore only receive the general benefit of proximity. Tangible Activities The tangible activities (those that are physically provided via a person or people working throughout the district) to be provided by the DRPBID generate three types of special benefits: • Service – The primary special benefit provided by the DRPBID’s physical activities is the actual service. That is, the actual cleanliness and safety created by security and maintenance clean and safe personnel. • Presence – The DRPBID’s physical activities also provide the special benefit of an individual’s presence on the assessed parcel as the activities are provided, which can have a deterrent effect and creates a positive impression that the area is well-maintained and safe. The “Disneyland effect” is the benefit the parcels receive from the observation that parcels are being maintained. There are studies which link the perception of cleanliness to a perception of increased security. • Proximity – The DRPBID’s physical activities also provide the special benefit of being in proximity to a cleaner, safer parcel. Neighboring parcels enjoy the spillover benefits of being adjacent to increased safety and cleanliness. The majority of the benefit received by the parcels is the results of the DRPBID’s services; onsite presence and proximity are lesser benefits. It is this Engineer’s estimation that seventy-five percent (75%) of the special benefit from the DRPBID’s physical activities is the service, while the presence and proximity benefits each account for twelve and one-half percent (12.5% presence, 12.5% proximity) of the special benefit. Assessed parcels will receive all three benefits; non-assessed parcels
DRPBID Management District Plan April 5, 2022 Page 16 within and adjacent to the DRPBID will not be directly serviced and therefore only receive the general benefit of proximity. Intangible Activities Some of the DRPBID’s activities, such as marketing, are distinct in that they are not provided to a targeted area within the DRPBID, rather they are provided via internet, radio, and other forms of media and targeted at an audience outside the DRPBID in an effort to bring the audience into the DRPBID. These activities provide two types of special benefits: Direct Exposure – The primary special benefit provided by the DRPBID’s intangible activities is exposure. The intangible activities increase awareness of the DRPBID as a commercial and business destination and lead to increased patronage. Incidental Exposure – The DRPBID’s intangible activities will also have a secondary special benefit of incidental exposure, such as word-of-mouth exposure, that results from the direct exposure and increases awareness of the DRPBID as a commercial and business destination. The majority of the benefit from these activities is the direct exposure; the incidental exposure is a lesser benefit. It is this Engineer’s estimation that ninety percent (90%) of the special benefit from the intangible activities is direct exposure, while ten percent (10%) is incidental exposure. Assessed parcels will receive both as special benefits; non-assessed parcels within and adjacent to the DRPBID will not be directly marketed and therefore only receive the general benefit of incidental exposure. Factors Determined Based on the foregoing analysis, all assessed parcels within the DRPBID specially benefit from the DRPBID’s activities and improvements, and have been assigned a benefit factor of 1.0. Parcels that are not assessed have been assigned benefit factors based on the portion of the benefit they will receive, as described above. The non-assessed parcels will benefit from fifteen percent (15%) of the improvements, twelve and one-half percent (12.5%) of the tangible activities, and ten percent (10%) of the intangible activities; therefore they have been assigned benefit factors of 0.15, 0.125, and 0.10 respectively. ii. Non-Assessed Benefit Characteristics There are two types of parcels that are not assessed; those within the DRPBID and those immediately adjacent to and accessible from the DRPBID. Because they generally benefit in a differing manner, distinct parcel characteristics are used to quantify the general benefit to each type. • Inside – Non-assessed parcels inside of the DRPBID are surrounded by parcels that are assessed and receiving the full special benefits; they will, therefore, receive the general benefit of proximity. These parcels are impacted on more than one side by the DRPBID’s activities and improvements and activities and improvements are provided all around them. Because these parcels are surrounded by specially benefitted parcels, it is appropriate that parcel square footage be used to measure the general benefit they receive. • Adjacent – Adjacent parcels are those that are immediately adjacent to or directly across the street from specially benefitted parcels, and accessible from specially benefitted parcels. These parcels generally benefit differently than those inside the DRPBID, because these parcels are adjacent to, rather than surrounded by, specially benefitted parcels. Square footage is not an appropriate measure of benefit to these parcels. Because the parcels are not surrounded by serviced parcels, a long, shallow parcel with the same square footage as a deep, narrow parcel
DRPBID Management District Plan April 5, 2022 Page 17 will receive a different level of general benefit. Likewise, two parcels with the same depth but a different width adjacent to serviced parcels will benefit differently. To account for this difference, it is appropriate that parcel linear frontage be used to measure the general benefit the adjacent parcels receive. The linear footage is the length of parcels fronting public streets. The amount listed for “assessed linear feet” is the value for all assessed parcels within the DRPBID and the amount listed for “non-assessed linear feet” is the value for all non-assessed parcels adjacent to the district boundary. iii. Calculations To quantify and separate the general benefit to non-assessed parcels, the following calculations were undertaken for each budget category. 1. The total service budget for each category was determined and the amount of general benefit to the public-at-large was subtracted from the category budget. 2. The benefit factor applicable to each activity or improvement was multiplied by the parcel square footage or linear frontage of assessed and non-assessed parcels, to determine the number of benefit units received by each parcel group. 3. The benefit units for all parcel groups were summed, and the percentage of benefit units attributable to each parcel group was calculated. 4. The total remaining activity and improvement budget, less the amount already determined to be general benefit to the public-at-large, was allocated to general and special benefit categories for each parcel group using the calculated benefit percent and applicable benefit characteristic methodology. 5. The special and general benefit resulting from the administration and contingency / reserve portions of the budget were determined based on the proportional allocation of benefits derived from activities and improvements. Maintenance, Safety and Nuisance Abatement The maintenance, safety, and nuisance abatement budget, minus the amount of general benefit to the public-at-large, is $124,408.17. The calculations below determine the amount of general benefit to non-assessed parcels within the DRPBID. Parcel Type Square Footage Benefit Factor Benefit Units Benefit Percent Remaining Budget Assessed 1,721,854.00 1.000 1,721,854.00 99.387% $124,408.17 $123,645.35 Non-Assessed 84,983.00 0.125 110,622.88 0.613% $124,408.17 $762.82 The maintenance, safety, and nuisance abatement budget, minus the amount of general benefit to the public and non-assessed parcels within the DRPBID, is $123,645.35. The calculations below determine the amount of general benefit to parcels adjacent to the DRPBID. Parcel Type Linear Frontage Benefit Factor Benefit Units Benefit Percent Remaining Budget Inside 22,881.00 1.000 22,881.00 97.048% $123,645.35 $119,995.30 Adjacent 5,568.00 0.125 696.00 2.952% $123,645.35 $3,650.05
DRPBID Management District Plan April 5, 2022 Page 18 Therefore, the allocation of the maintenance, safety, and nuisance abatement budget is as follows: General Benefit – Public At Large $3,452.23 General Benefit – Inside Parcels $762.82 General Benefit – Adjacent Parcels $3,650.05 Special Benefit $119,995.30 Total $127,860.40 Marketing, Promotions and Business Development The marketing, promotions, and business development budget, minus the amount of general benefit to the public-at-large, is $66,701.87. The calculations below determine the amount of general benefit to non-assessed parcels within the DRPBID. Parcel Type Square Footage Benefit Factor Benefit Units Benefit Percent Remaining Budget Assessed 1,721,854.00 1.000 1,721,854.00 99.509% $66,701.87 $66,374.28 Non-Assessed 84,983.00 0.100 8,498.30 0.491% $66,701.87 $327.59 The marketing, promotions, and business development budget, minus the amount of general benefit to the public and non-assessed parcels within the DRPBID, is $66,374.28. The calculations below determine the amount of general benefit to parcels adjacent to the DRPBID. Parcel Type Linear Frontage Benefit Factor Benefit Units Benefit Percent Remaining Budget Inside 22,881.00 1.000 22,881.00 97.624% $66,374.28 $64,797.46 Adjacent 5,568.00 0.100 556.80 2.376% $66,374.28 $1,576.82 Therefore, the allocation of the marketing, promotions, and business development budget is as follows: General Benefit – Public At Large $1,850.93 General Benefit – Inside Parcels $327.59 General Benefit – Adjacent Parcels $1,576.82 Special Benefit $64,797.46 Total $68,522.80 Capital Improvements
DRPBID Management District Plan April 5, 2022 Page 19 The capital improvements budget, minus the amount of general benefit to the public-at-large, is $4,976.32. The calculations below determine the amount of general benefit to non-assessed parcels within the DRPBID. Parcel Type Square Footage Benefit Factor Benefit Units Benefit Percent Remaining Budget Assessed 1,721,854.00 1.000 1,721,854.00 99.387% $4,976.32 $4,945.81 Non-Assessed 84,983.00 0.125 10,622.88 0.613% $4,976.32 $30.51 The capital improvements budget, minus the amount of general benefit to the public and non-assessed parcels within the DRPBID, is $4,945.81. The calculations below determine the amount of general benefit to parcels adjacent to the DRPBID. Parcel Type Linear Frontage Benefit Factor Benefit Units Benefit Percent Remaining Budget Inside 22,881.00 1.000 22,881.00 97.048% $4,945.81 $4,799.81 Adjacent 5,568.00 0.125 696.00 2.952% $4,945.81 $146.00 Therefore, the allocation of the capital improvements budget is as follows: General Benefit – Public At Large $138.09 General Benefit – Inside Parcels $30.51 General Benefit – Adjacent Parcels $146.00 Special Benefit $4,799.81 Total $5,114.41 Administration, Contingency/Reserve, and Collection Fee The administration, contingency/reserve and collection fee budget line items relate to the activities and improvements provided. These costs have been allocated proportionally based on the special and general benefit provided by each category. Special Benefit to Parcels General Benefit to Parcels Maintenance, Safety, and Nuisance Abatement $119,995.30 $4,412.87 Marketing, Promotions and Business Development $64,797.46 $1,904.41 Capital Improvements $4,799.81 $176.51 Activity Totals $189,592.57 $6,493.79 Percent 96.688% 3.312% Administration, Contingency/Reserve, & Collection Fee $50,398.03 $1,726.21
DRPBID Management District Plan April 5, 2022 Page 20 Total Parcel Benefits $239,990.60 $8,220.00 iv. Total Benefits Based on the foregoing calculations, the total benefits to assessed parcels, non-assessed parcels, and the general public are:
Special Benefit to Parcels General Benefit to Parcels General Benefit to Public Total Maintenance, Safety, and Nuisance Abatement $119,995.30 $4,412.87 $3,452.23 $127,860.40 Marketing, Promotions and Business Development $64,797.46 $1,904.41 $1,850.93 $68,552.80 Capital Improvements $4,799.81 $176.51 $138.09 $5,114.41 Administration, Contingency/Reserve, & Collection Fees $50,398.03 $1,726.21 $1,446.41 $53,570.65 Total $239,990.60 $8,220.00 $6,887.66 255,098.26 c. Non-Assessment Funding The programs funded by the DRPBID receive additional non-assessment funding in the form of grants, corporate sponsorships, event income, and other miscellaneous funds. These funding sources are anticipated to equal or exceed the amount of general benefit conferred annually by the DRPBID’s activities and improvements, $15,107.66. These non-assessment funds will be used to pay for the general benefit provided by the DRPBID’s activities and improvements, ensuring that parcel assessments will only be used to provide special benefits and “any additional costs of providing general benefits [are] not included in the amounts assessed.”16 2. Special Benefit The activities and improvements to be provided by the DRPBID constitute and convey special benefits directly to the assessed parcels. Assessment law requires that “the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided.”17 Further, “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”18 Special benefit “includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed.”19 To determine the total special benefit value to be conveyed to the assessed parcels, we deduct the general benefit value ($15,107.66) from the total value of the activities and improvements ($255,098.26). The remaining $ is considered the special benefit to assessed parcels (the “Total Assessment”). The Total Assessment represents the total value of the special benefit to be provided 16 Streets and Highways Code section 36632(a) 17 Cal. Const., art XIII D §4(a) 18 Ibid 19 Streets and Highways Code section 36615.5
DRPBID Management District Plan April 5, 2022 Page 21 by the activities and improvements. The Total Assessment has been proportionally divided among the assessed parcels so that no assessment exceeds the reasonable cost of the proportional special benefit conferred on a parcel. The assessment rate has been designed to ensure that “properties that receive the same proportionate special benefit pay the same assessment.”20 Service Provided Total Benefit Value General Benefit Value to Public Benefit Value to Parcels (Special & General) Special Benefit to Assessed Parcels Maintenance, Safety, and Nuisance Abatement $127,860.40 $3,452.23 $124,408.17 $119,995.30 Marketing, Promotions and Business Development $68,552.80 $1,850.93 $68,552.80 $64,797.46 Capital Improvements $5,114.41 $138.09 $5,114,41 $4,799.81 Administration $38,264.74 $1,033.15 $37,231.59 $35,998.59 Contingency/Reserve $12,754.92 $344.38 $12,410.54 $11,999.53 Collection Fees $2,550.99 $68.88 $2,482.11 $2,399.91 TOTAL $255,098.26 $6,887.66 $248,210.60 $239,990.60 B. Assessment Methodology 1. Base Formula Each parcel will be assessed based on proportional special benefits received. The variables used for the annual assessment formula are parcel type and parcel square footage. These variables are appropriate measures of the proportional special benefit because the need for services, level of services, and quantity of services are all relative to these variables; thus the special benefit provided to each parcel by the services can be proportionally measured using these variables. Determination of Assessment Rates “Because not all parcels in the district are identical in size…some will receive more special benefit than others.”21 Each of the variables used relates directly to the service level and special benefit provided to each parcel. Parcel square footage is the size of the parcel, measured in square feet. Size is an appropriate measure of proportional special benefit because it relates directly to the quantity of services provided to the parcel, the highest and best use of a parcel, and reflects the long-term value implications of the DRPBID. The larger a parcel, the more services and benefit the parcel will receive. Because not all parcels in the DRPBID are identical in use, some will receive more special benefit than others. For example, a commercial parcel will benefit to a lesser degree than a retail trade use parcel, because it will not enjoy the benefits of increased commerce resulting from the services. Further detail on the benefit to each parcel type is in the following pages. To determine the assessment rates, the assessed parcels were classified by the estimated benefit each type of parcel receives, the estimated special benefit value of the activities and improvements provided to each type was determined based 20 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057 21 Dahms v. Downtown Pomona (2009) 174 Cal.App.4th 708
DRPBID Management District Plan April 5, 2022 Page 22 on approximate cost of service provision, and an assessment rate that is proportional to the estimated proportional benefit received by each parcel type was determined. To determine the assessment rates, the estimated special benefit value for each parcel type was divided by the total assessable parcel square footage as shown in the tables below. Parcel Type Parcel types were categorized based on their typical amount of foot and vehicle traffic on the various parcels. Retail trade use parcels will receive the highest level of services because their owners aim to benefit from increased customers or increased use by visitors and receive the highest volume of foot and vehicle traffic. However, parcels with low traffic, such as private tax-exempt parcels, will receive a lower level of services, because their owners primarily aim to benefit from increased cleanliness and security and receive the lowest level of foot and vehicle traffic. The approximate cost of special benefit services by parcel type was determined. Then, the special benefit cost of services by type was divided by the frontage and square footage of those parcels to determine the assessment rates. Parcel Size The DRPBID’s services will benefit each assessed parcel as a whole. The service budget which, in this Engineer’s estimation, represents special benefits to the parcels, has been allocated based on parcel size and parcel frontage.
Parcel Type Initial Parcel Size Budget Parcel Square Footage Initial Parcel Assessment Rate ($/sqft/yr) Commercial 219,090.60 ÷ 1460604 = 0.15 Non-Profit Housing 20,900.00 ÷ 261250 = 0.08 Summary of Assessment Rates Therefore, for the initial year, the maximum annual assessment rates to parcels are as shown below and in Appendix 1. Maximum annual assessment rates may be subject to an increase of no more than three percent (3%) per year as shown in Appendix 1. Pursuant to Streets and Highways Code §36622(f) bonds shall not be issued. If you would like more information about parcel assessments, please call Civitas at (916)437-4300 or (800)999-7781. Parcel type Assessment rate (per square foot) Commercial $0.15 Non-Profit Housing $0.08 Sample assessment calculations are shown in Appendix 4.
DRPBID Management District Plan April 5, 2022 Page 23 Parcel Categorization Assessment categories for each parcel were determined based on the parcel’s land use code as shown in the Assessor’s Records and supplemented by other available information. In general, the assessment category for each parcel reflects the use of the parcel as described by its land use code. Parcels with multiple uses, such as strip malls with retail storefronts and commercial use buildings on the same parcel, are assessed at the rate applicable to the use that occupies the largest portion of the building square footage. In cases where the land use code and actual use differ, the actual use prevails for classification purposes. 1. Commercial Commercial parcels will receive and benefit from all DRPBID services, which are aimed to attract and increase customers and visitors to assessed parcels. These parcels have a commercial component because their owners aim to benefit from tenant rents, increased customers, or increased use by visitors. The primary purpose of the DRPBID is to provide property owner services which generate special benefits to parcels with commercial uses. 2. Non-Profit Housing Parcels owned and operated by non-profit housing agencies will receive and benefit from a portion of the DRPBID’s services. They will not, however, receive the same degree of special benefit that is received by commercial parcels as they are not used for commercial purposes. These parcels will receive and benefit from a portion of the DRPBID’s cleaning and maintenance programs. They will not receive nor benefit from marketing, promotions and business attraction services. Due to their lower pedestrian traffic and non-commercial nature, these parcels have a lower need for services; therefore, they will receive services less frequently and less intensively that commercial parcels. Thus, non-profit housing parcels will be assessed at a rate commensurate with the degree of special benefit. 3. Government-Owned Parcels The California Constitution, in Article XIII D, provides that “parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” No public agency owning parcels in the district has made such a demonstration. Government-owned parcels within the DRPBID will receive special benefit from the full range of DRPBID services and will therefore be assessed at the full commercial rate, commensurate with the degree of special benefit. There are thirty-one (31) City of Richmond parcels and one (1) County of Contra Costa parcel. 4. Exempted parcels/Non-Assessed There are sixty-eight (68) parcels within the DRPBID that will not be assessed. These parcels will not specially benefit from or directly receive the DRPBID’s activities and improvements. These parcels are accounted for in the analysis of general benefit provided to non-assessed parcels within the DRPBID. These parcels have the following use: • Residential Parcels: The state legislature has determined that “properties zoned exclusively for residential use…are conclusively presumed not to benefit from the improvements and services
DRPBID Management District Plan April 5, 2022 Page 24 funded through these assessments, and shall not be subject to any assessment.”22 The activities and improvements to be provided are designed to specially benefit commercial and parking parcels via increased commerce, occupancy, and lease rates. None of these benefits apply to residential parcels, which will not be serviced or benefit from the DRPBID’s activities. Residential parcels are those parcels with four family units or less, residential common areas, residential vacant lots, residential planned unit development, and residential condominiums. There are sixty-eight (68) residential parcels within the DRPBID that will not be assessed. 5. Changes in Data Every effort has been made to ensure each parcel included in the DRPBID is clearly identified and that all parcels included in the DRPBID are consistent in the boundary map and the assessment calculation table. However, errors in data can and may arise or data may change after formation of the DRPBID. Inconsistencies may include updated parcel sizes or parcel splits. If inconsistencies arise, the order of precedence shall be: 1) the assessment calculation table and 2) the boundary map. If the parcel size or type of a parcel changes during the term of the DRPBID, the assessment calculation may be modified accordingly. Categorization Appeals The category determined for each parcel is shown in Appendix 4. The use for each parcel is established at formation and may be updated upon each renewal. If a parcel owner believes their parcel has been mis-classified or has changed, they may appeal in writing to the City of Richmond for re-consideration. Appeals must be received by the City no later than June 1 of each year. Appeals must include the parcel number, current classification, requested classification, and the evidence upon which the appeal is based (for instance if a parcel is occupied by a retail store, but classified as commercial, a current photo of the retail store showing the building number). Appeals will not provide retroactive reductions. Appeals should be made to: Thomas Omolo Richmond City Manager’s Office, Economic Development [email protected] (510) 620-5560 A. Assessment Notice During the hearing process, an Assessment Ballot will be sent to owners of each parcel in the DRPBID. The Assessment Ballot provides an estimated assessment for each parcel. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage, linear front footage, or type differ from those used to calculate the amount shown on the notice, which can be found in Appendix 4. B. Time and Manner for Collecting Assessments As provided by State Law, the DRPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Contra Costa. Alternatively, the DRPBID assessment may be collected by the City of Richmond if needed. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Contra Costa and City of Richmond shall distribute 22 Streets and Highways Code § 36632(c)
DRPBID Management District Plan April 5, 2022 Page 25 funds collected to RMSI. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the DRPBID assessments. C. Bonds Bonds will not be issued to finance services as a part of this DRPBID. D. Engineer’s Certification I hereby certify, to the best of my knowledge and experience, that each of the identified assessed parcels located within the Downtown Richmond Property and Business Improvement District will receive a special benefit over and above the general benefits conferred and that the amount of the assessment is no greater than the proportional special benefits conferred on each parcel, as described in this Engineer’s Report. Review of this Downtown Richmond Property and Business Improvement District Management District Plan and preparation of the Engineer’s Report was completed by: __________________________ Ross Peabody State of California April 6, 2022 Date This Engineer’s Report is intended to be distributed as part of the Management District Plan in its entirety, including the Assessment Calculation Table (Appendix 3) and the Boundary Map. Reproduction and distribution of only Section VII of this Management District Plan violates the intent of this stamp and signature.
DRPBID Management District Plan April 5, 2022 Page 26 APPENDIX 1 – MAXIMUM ANNUAL ASSESSMENT RATES Year Commercial Non-Profit Housing 2023/24 $0.150000 $0.080000 2024/25 $0.154500 $0.082400 2025/26 $0.159135 $0.084872 2026/27 $0.163909 $0.087418 2027/28 $0.168826 $0.090041 2028/29 $0.173891 $0.092742 2029/30 $0.179108 $0.095524
DRPBID Management District Plan April 5, 2022 Page 27 APPENDIX 2 – PBID LAW *** THIS DOCUMENT IS CURRENT THROUGH THE 2020 SUPPLEMENT *** (ALL 2019 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18. PARKING PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions ARTICLE 1. Declarations 36600. Citation of part This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following: (a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2) Job creation. (3) Business attraction. (4) Business retention. (5) Economic growth. (6) New investments. (f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
DRPBID Management District Plan April 5, 2022 Page 28 (1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602. Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604. Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes. ARTICLE 2. Definitions 36606. “Activities” “Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district: (a) Promotion of public events. (b) Furnishing of music in any public place. (c) Promotion of tourism within the district. (d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.
DRPBID Management District Plan April 5, 2022 Page 29 36606.5. “Assessment” “Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607. “Business” “Business” means all types of businesses and includes financial institutions and professions. 36608. “City” “City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council” “City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk” “Clerk” means the clerk of the legislative body. 36609.5. “General benefit” “General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5. 36610. “Improvement” “Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms. (d) Lighting and heating facilities. (e) Decorations. (f) Parks. (g) Fountains. (h) Planting areas. (i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls. (l) Rehabilitation or removal of existing structures. 36611. “Management district plan”; “Plan” “Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
DRPBID Management District Plan April 5, 2022 Page 30 “Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property” “Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part. 36614.6. “Property-based assessment” “Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district” “Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner” “Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit” “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. 36616. “Tenant” “Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. ARTICLE 3. Prior Law 36617. Alternate method of financing certain improvements and activities; Effect on other provisions
DRPBID Management District Plan April 5, 2022 Page 31 This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part. CHAPTER 2. Establishment 36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following: (1) A map showing the boundaries of the district. (2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following: (1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. Contents of management district plan The management district plan shall include, but is not limited to, all of the following: (a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner
DRPBID Management District Plan April 5, 2022 Page 32 to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district. (c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. (e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g) The time and manner of collecting the assessments. (h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that
DRPBID Management District Plan April 5, 2022 Page 33 benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment (a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation (a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following: (1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property,
DRPBID Management District Plan April 5, 2022 Page 34 businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. 36627. Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property-based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories
DRPBID Management District Plan April 5, 2022 Page 35 All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3. Assessments 36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property (a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
DRPBID Management District Plan April 5, 2022 Page 36 (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. CHAPTER 3.5. Financing 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4. Governance 36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of
DRPBID Management District Plan April 5, 2022 Page 37 levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information: (1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5. Renewal 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. CHAPTER 6. Disestablishment 36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
DRPBID Management District Plan April 5, 2022 Page 38 (1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
DRPBID Management District Plan April 5, 2022 Page 39 APPENDIX 3 – MAP
DRPBID Management District Plan April 5, 2022 Page 40 APPENDIX 4 – PARCEL ASSESSMENT CALCULATIONS MAP KEY APN TYPE LOT SIZE ASSESSMENT 1 538111001 COM 223,462 $33,519.30 2 538131016 COM 81,598 $12,239.70 3 538132005 COM 6,124 $918.60 4 538132006 COM 2,710 $406.50 5 538132009 COM 2,710 $406.50 6 538132010 COM 2,710 $406.50 7 538132011 COM 2,710 $406.50 8 538132013 COM 46,950 $7,042.50 9 538132014 COM 5,420 $813.00 10 538142016 COM 76,702 $11,505.30 11 538250001 COM 5,625 $843.75 12 538250002 COM 2,812 $421.80 13 538250003 COM 8,437 $1,265.55 14 538250004 COM 2,812 $421.80 15 538250014 COM 16,875 $2,531.25 16 538260001 COM 5,625 $843.75 17 538260002 COM 2,817 $422.55 18 538260003 COM 3,187 $478.05 19 538260004 COM 2,437 $365.55 20 538260007 COM 32,390 $4,858.50 21 538260009 COM 9,135 $1,370.25 22 538260013 COM 52,110 $7,816.50 23 538440001 NPH 254,650 $20,372.00 24 538440002 COM 21,450 $3,217.50 25 540071011 COM 2,710 $406.50 26 540071016 COM 5,213 $781.95 27 540071017 COM 10,840 $1,626.00 28 540071018 COM 5,395 $809.25 29 540072018 COM 62,428 $9,364.20 30 540081001 COM 5,375 $806.25 31 540081002 COM 5,375 $806.25 32 540081003 COM 4,031 $604.65 33 540081004 COM 4,031 $604.65 34 540081005 COM 5,375 $806.25 35 540081020 COM 21,758 $3,263.70 36 540081021 COM 6,795 $1,019.25
DRPBID Management District Plan April 5, 2022 Page 41 37 540081024 COM 5,906 $885.90 38 540081025 COM 2,531 $379.65 39 540081026 COM 15,849 $2,377.35 40 540082030 COM 1,152 $172.80 41 540082032 COM 5,940 $891.00 42 540082033 COM 62,525 $9,378.75 43 540091008 COM 4,300 $645.00 44 540091010 COM 14,063 $2,109.45 45 540091011 COM 5,420 $813.00 46 540091012 COM 2,710 $406.50 47 540091013 COM 5,420 $813.00 48 540091014 COM 2,700 $405.00 49 540091015 COM 2,710 $406.50 50 540091016 COM 5,400 $810.00 51 540091017 COM 11,250 $1,687.50 52 540091018 COM 2,812 $421.80 53 540091019 COM 18,755 $2,813.25 54 540092016 COM 36,087 $5,413.05 55 540092017 COM 29,774 $4,466.10 56 540092018 COM 6,701 $1,005.15 57 540140001 COM 3,750 $562.50 58 540140002 COM 7,500 $1,125.00 59 540140003 COM 5,625 $843.75 60 540140004 COM 2,812 $421.80 61 540140005 COM 5,625 $843.75 62 540140020 RES 5,650 $0.00 63 540140021 RES 3,390 $0.00 64 540140022 RES 5,040 $0.00 65 540140023 RES 2,825 $0.00 66 540140024 RES 2,812 $0.00 67 540140025 COM 5,625 $843.75 68 540140026 COM 2,812 $421.80 69 540140027 COM 2,812 $421.80 70 540140028 COM 2,817 $422.55 71 540150001 COM 5,625 $843.75 72 540150002 COM 5,625 $843.75 73 540150006 COM 5,625 $843.75 74 540150008 COM 8,437 $1,265.55 75 540150026 COM 2,812 $421.80
DRPBID Management District Plan April 5, 2022 Page 42 76 540150029 COM 11,249 $1,687.35 77 540420003 NPH* 8,250 $775.50 78 540420004 COM 8,437 $1,265.55 79 540420005 COM 5,625 $843.75 80 540460008 COM 3,354 $503.10 81 540460048 COM 241,279 $36,191.85 82 540460049 COM 25,091 $3,763.65 83 540480024 RES 1,278 $0.00 84 540480025 RES 1,100 $0.00 85 540480026 RES 1,100 $0.00 86 540480027 RES 1,100 $0.00 87 540480028 RES 1,100 $0.00 88 540480029 RES 1,498 $0.00 89 540480030 RES 1,278 $0.00 90 540480031 RES 1,100 $0.00 91 540480032 RES 1,100 $0.00 92 540480033 RES 1,416 $0.00 93 540480056 RES 1,063 $0.00 94 540480057 RES 964 $0.00 95 540480058 RES 964 $0.00 96 540480059 RES 964 $0.00 97 540480060 RES 964 $0.00 98 540480061 RES 964 $0.00 99 540480062 RES 964 $0.00 100 540480063 RES 964 $0.00 101 540480064 RES 964 $0.00 102 540480065 RES 1,173 $0.00 103 540480066 RES 1,040 $0.00 104 540480067 RES 855 $0.00 105 540480068 RES 855 $0.00 106 540480069 RES 855 $0.00 107 540480070 RES 855 $0.00 108 540480071 RES 855 $0.00 109 540480072 RES 855 $0.00 110 540480073 RES 855 $0.00 111 540480074 RES 855 $0.00 112 540480075 RES 855 $0.00 113 540480076 RES 855 $0.00 114 540480077 RES 847 $0.00
DRPBID Management District Plan April 5, 2022 Page 43 115 540480083 RES 849 $0.00 116 540480084 RES 859 $0.00 117 540480085 RES 859 $0.00 118 540480086 RES 859 $0.00 119 540480087 RES 859 $0.00 120 540480088 RES 859 $0.00 121 540480089 RES 859 $0.00 122 540480090 RES 859 $0.00 123 540480091 RES 859 $0.00 124 540480092 RES 1,045 $0.00 125 540480093 RES 900 $0.00 126 540480094 RES 900 $0.00 127 540480095 RES 900 $0.00 128 540480096 RES 900 $0.00 129 540480097 RES 900 $0.00 130 540480098 RES 900 $0.00 131 540480099 RES 900 $0.00 132 540480100 RES 900 $0.00 133 540480101 RES 900 $0.00 134 540480102 RES 900 $0.00 135 540480124 RES 1,191 $0.00 136 540480125 RES 1,027 $0.00 137 540480126 RES 1,027 $0.00 138 540480127 RES 1,027 $0.00 139 540480128 RES 1,027 $0.00 140 540480129 RES 1,027 $0.00 141 540480130 RES 1,027 $0.00 142 540480131 RES 1,027 $0.00 143 540480132 RES 1,191 $0.00 144 540480133 COM 3,310 $496.50 145 540480134 COM 3,310 $496.50 146 540480135 COM 1,655 $248.25 147 540480138 RES 4,603 $0.00 148 540480144 RES 871 $0.00 149 540062012 COM 90,003 $13,500.45 COM: Commercial NPH: Non-Profit Housing RES: Residential (Not Assessed) * Mixed Used Parcel
DRPBID Management District Plan April 5, 2022 Page 44 APPENDIX 5 – TOTAL ESTIMATED MAXIMUM COST OF IMPROVEMENTS, MAINTENANCE, AND ACTIVITIES The estimated maximum cost of the line items below was developed based on the estimated costs of providing services in the proposed DRPBID. The costs below are estimated; the actual line item costs will fluctuate. The table below shows expenditures from assessment and non-assessed funds. Assessment funds are governed by Section VI. The total maximum budget may exceed the maximum listed in this table if parcel ownership changes results in parcels being assessed at a higher rate due to a higher estimated benefit. Year Maintenance, Safety and Nuisance Abatement Marketing, Promotions and Business Development
Capital Improvements Administration Contingency/Reserve Collection Fees Total 2023 $127,860.40 $68,552.80 $5,114.41 $38,264.74 $12,754.92 $2,550.99 $255,098.26 2024 $131,696.21 $70,609.38 $5,267.84 $39,412.68 $13,137.57 $2,627.52 $262,751.21 2025 $135,647.10 $72,727.67 $5,425.88 $40,595.06 $13,531.69 $2,706.35 $270,633.74 2026 $139,716.51 $74,909.50 $5,588.65 $41,812.91 $13,937.65 $2,787.54 $278,752.76 2027 $143,908.01 $77,156.78 $5,756.31 $43,067.30 $14,355.77 $2,871.16 $287,115.34 2028 $148,225.25 $79,471.48 $5,929.00 $44,359.32 $14,786.45 $2,957.30 $295,728.80 2029 $152,672.00 $81,855.63 $6,106.87 $45,690.10 $15,230.04 $3,046.02 $304,600.66 Total $979,725.48 $525,283.24 $39,188.97 $293,202.12 $97,734.09 $19,546.86 $1,954,680.77
APN OWNER NAME
538440002 RICHMOND CITY OF
538260009 RICHMOND CITY OF
538250004 RICHMOND CITY OF
538250002 RICHMOND CITY OF
538250001 SUCCESSOR AGENCY
538132005 RICHMOND CITY OF
538132006 RICHMOND CITY OF
538132009 RICHMOND CITY OF
538132010 RICHMOND CITY OF
540081026 SUCCESSOR AGENCY
540081020 SUCCESSOR AGENCY
540092016 RICHMOND CITY OF
540081021 SUCCESSOR AGENCY
540081024 SUCCESSOR AGENCY
540081005 SUCCESSOR AGENCY
540081004 SUCCESSOR AGENCY
540081003 SUCCESSOR AGENCY
540081002 SUCCESSOR AGENCY
540081001 SUCCESSOR AGENCY
540092017 RICHMOND CITY OF
540150006 RICHMOND CITY OF
540082030 RICHMOND REDEVELOPMENT AGENCY
540071016 RICHMOND CITY OF
540071018 RICHMOND CITY OF
540071011 RICHMOND CITY OF
540071017 RICHMOND CITY OF
538132014 RICHMOND REDEVELOP AGY-SUC AGY
540081025 RICHMOND CITY OF
540092018 RICHMOND REDEVELOP AGY-SUC AGY
540091010 RICHMOND REDEVELOPMENT AGENCY
540082032 RICHMOND REDEVELOPMENT AGENCY
Attachment 4
2022- DPRPID Renewal - City of Richmond and Redevelopment Agency Assessed Properties
Attachment 5 - DRPBID All property Owners
2022 DPRPID All Property Owners
APN OWNER NAME
538131016 KAISER FOUNDATION HOSPITALS
538142016 KAISER FOUNDATION HOSPITALS
538111001 KAISER FOUNDATION HOSPITALS
540091012 BAY AREA LEGAL AID
540140005 PATTERSON CHARLES A
540140004 SUNG LUCIEN K & DENISE W
540140003 SUNG LUCIEN K & DENISE W
540480134 NASSER ABDO & RAJA
540091008 NASSER ABDO ALI & RAJA K TRE
540091019 NASSER ABDO ALI & RAJA K TRE
540480135 NASSER ABDO & RAJA
540480133 NASSER ABDO & RAJA
540140002 HERNANDEZ ROSEMARIE
538260007 MEGA INVESTMENT CO LLC
540082033 CONTRA COSTA COUNTY
540062012 SAN FRANCISCO BART DISTRICT
540072018 SAN FRANCISCO BART DISTRICT
540091016 EPM PROPERTIES LLC
540091018 LIBERAL CATHOLIC CHURCH OF SF
540091011 EAST BAY CTR PERFORMING ARTS
540091017 TRUSSELL DAVID D & EVONNE Y
540460008 RICHMOND HOUSING ASSOCIATES LP
540420003 CARQUINEZ ASSOCIATES LP
540420004 CARQUINEZ ASSOCIATES LP
540420005 CARQUINEZ ASSOCIATES LP
540140025 CAMPOS ELISEO & DALILA
538260013 CATHOLIC CHARITIES/DIOCESE OAK
538440002 RICHMOND CITY OF
538260009 RICHMOND CITY OF
538250004 RICHMOND CITY OF
538250002 RICHMOND CITY OF
538250001 SUCCESSOR AGENCY
538132005 RICHMOND CITY OF
538132006 RICHMOND CITY OF
538132009 RICHMOND CITY OF
538132010 RICHMOND CITY OF
540081026 SUCCESSOR AGENCY
540081020 SUCCESSOR AGENCY
540092016 RICHMOND CITY OF
540081021 SUCCESSOR AGENCY
540081024 SUCCESSOR AGENCY
540081005 SUCCESSOR AGENCY
540081004 SUCCESSOR AGENCY
540081003 SUCCESSOR AGENCY
540081002 SUCCESSOR AGENCY
540081001 SUCCESSOR AGENCY
APN OWNER NAME
538132011 WHITE CLARENCE & ANNIE M
540140026 KULALY SAYED DAUD & PRISA
538260004 1017 LLC
538260003 1017 LLC
540140027 LIU JIANG TRE
540140028 CABRAL JORGE L & MARIA G
540150029 BAYAT SHAYAN
540150008 AGUILAS CENTRO FAM CRISTIANO
540460048 RICHMOND CITY CENTER LP
540150026 PATTERSON CHARLES II
540150002 PATTERSON CHARLES II
540150001 PATTERSON CHARLES II
538250014 PENTECOSTAL CHURCH OF GOD I M
538250008 PENTECOSTAL CHURCH OF GOD I M
540460049 GRANT ENTERPRISES LLC
540091013 1017 LLC
538132013 KAISER FOUNDATION HOSPITALS
540092017 RICHMOND CITY OF
538260002 GANDER THOMAS M TRE
538260001 GROSS MORTGAGE CORP
540140001 VIERRA CHRISSIE LAI LING LOUIE
540150006 RICHMOND CITY OF
540082030 RICHMOND REDEVELOPMENT AGENCY
540071016 RICHMOND CITY OF
540071018 RICHMOND CITY OF
540071011 RICHMOND CITY OF
540071017 RICHMOND CITY OF
538132014 RICHMOND REDEVELOP AGY-SUC AGY
540081025 RICHMOND CITY OF
540092018 RICHMOND REDEVELOP AGY-SUC AGY
540091010 RICHMOND REDEVELOPMENT AGENCY
540082032 RICHMOND REDEVELOPMENT AGENCY
538440001 BARRETT TERRACE HOUSING CORP
538250003 TRINITY COMMECIAL GROUP LLC
540091014 TCG MACDONALD GROUP 1015 LLC
540091015 TCG MACDONALD GROUP 1009 LLC
2022 DPRPID All Property Owners
Attachment 5 - DRPBID All property Owners
May 3, 2022
Finance Department
DATE: May 3, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Delmy Cuellar, Acting Director of Finance
Jerry Chak, Accounting Manager
Subject:
Investment and cash balance report for the month of
March 2022
FINANCIAL IMPACT: None.
PREVIOUS COUNCIL
ACTION:
Click or tap here to enter text.
STATEMENT OF THE
ISSUE:
City staff is requesting that the City Council receive the City’s Investment and Cash Balance Report for the
month of March 2022.
RECOMMENDED ACTION:
RECEIVE the City’s Investment and Cash Balance
Report for the month of March 2022 – Finance
Department (Delmy Cuellar 510-620-6790).
DISCUSSION:
The Investment and Cash Balance Report is a monthly report of the City’s pooled cash balance. The Portfolio Management Report represents the monthly bank balances, along with market balances of permitted investments according to the City’s Investment AGENDA
REPORT
May 3, 2022
Policy. Investment in the Local Agency Investment Fund (LAIF), money market, agency bonds, certificates of deposits, and corporate notes are all allowable and permitted according to the FY2021-2022 Investment Policy.
DOCUMENTS ATTACHED:
Attachment 1 – Investment and Cash Balance Report for March 2022 Attachment 2 – Overtime Report March 2022
Attachment 3 – Overtime Public Safety Report March 2022
City of Richmond
Overtime by Department
FY 2021-22, March 67% Threshold
ORIGINAL TRANFRS REVISED AVAILABLE PCT
APPROP ADJSTMTS BUDGET YTD EXPENDED BUDGET USED
GENERAL FUND
Summary
400031 OVERTIME/General 1,050,794 185,187 1, 235,982 1, 038,001 319,946 84% 400032 OVERTIME/Sworn 8,794,531 705,402 9, 499,933 6, 421,599 2, 979,355 68% TOTAL GENERAL FUND 9, 845,326 890,589 10, 735,915 7,459,600 3, 299,301 69% By Department
12 COMMISSIONS
400031 OVERTIME/General - - 297 ( 297) - 13 CITY MANAGER
400031 OVERTIME/General - - - 14 CITY CLERK
400031 OVERTIME/General 20,000 7,400 27,400 20,528 1,549 75% 14 CITY ATTORNEY
400031 OVERTIME/General - - (11) 11 - 16 PLANNING
400031 OVERTIME/General - - 836 ( 734) - 17 FINANCE
400031 OVERTIME/General 63,473 63,473 25,414 45,905 40% 18 HUMAN RESOURCES
400031 OVERTIME/General - - 374 ( 374) - 19 POLICE
400031 OVERTIME/General 808,468 808, 468 715,786 178,133 89% 400032 OVERTIME/Sworn 5,165,434 5,165,434 3,133,701 2, 340,940 61%
Overtime by Department
FY 2021-22, March 67% Threshold
ORIGINAL TRANFRS REVISED AVAILABLE PCT
APPROP ADJSTMTS BUDGET YTD EXPENDED BUDGET USED
TOTAL POLICE 5,973,903 - 5, 973,903 3, 849,487 2, 519,073 64% 20 FIRE
400031 OVERTIME/General - - - - 400032 OVERTIME/Sworn 3,629,097 705,402 4, 334,499 3, 287,898 638,414 76% TOTAL FIRE 3, 629,097 705,402 4, 334,499 3, 287,898 638,414 76% 23 INFRASTRUCTURE & MAINTENANCE OPS
400031 OVERTIME/General 146,943 175, 443 322,386 257,286 94,847 80% 24 LIBRARY
400031 OVERTIME/General - - 932 ( 456) - 25 COMMUNITY SERVICES
400031 OVERTIME/General 9,000 2,344 11,344 16,552 (2 ,281) 146% 26 INFORMATION TECHNOLOGY
400031 OVERTIME/General 2,910 2,910 - 2,910 0% 36 ECOMOOONOMIC DEVELOPMENT PROGRAM - - - 400031 OVERTIME/General - - 7 (7) - TOTAL GENERAL FUND 9,845,326 890,589 10, 735,915 7,459,600 3, 298,560 69%
NON-GENERAL FUND
By Fund
1012 HILLTOP LANDSCAPE MAINT DIST
400031 OVERTIME/General - - - 18,186 ( 18,186) 100% 1015 MARINA BAY LNDSCP & LIGHT DIST
400031 OVERTIME/General 25,299 - 25,299 11,498 13,801 45% 1018 RENT CONTROL
400031 OVERTIME/General - - - 1,251 (1 ,251) 100%
Overtime by Department
FY 2021-22, March 67% Threshold
ORIGINAL TRANFRS REVISED AVAILABLE PCT
APPROP ADJSTMTS BUDGET YTD EXPENDED BUDGET USED
1050 CR-PLANNING & BUILDING
400031 OVERTIME/General 9,500 - 9,500 - 9,500 0% 1055 ENCROACHMENT SVCS
400031 OVERTIME/General - 1,464 1,464 6,942 (5 ,478) 1205 EMPLOYMENT & TRAINING
400031 OVERTIME/General - - - 241 ( 241) 1303 KIDS FIRST INITIATIVE
400031 OVERTIME/General - - - 522 ( 522) 4003 WASTEWATER
400031 OVERTIME/General 8,100 - 8,100 790 7,310 10% 4006 STORMWATER
400031 OVERTIME/General - - - 16 (16) 100% 4404 RHA-NEVIN PLAZA
400031 OVERTIME/General - 40,000 40,000 27,806 12,194 70% 4405 RHA-NYSTROM VILLAGE
400031 OVERTIME/General - 20,000 20,000 77 19,923 0% 4501-RHA-CENTRAL OFFICE COST CENTER
400031 OVERTIME/General - - - 148 ( 148) TOTAL NON-GENERAL FUNDS 42,899 61,464 104,363 67,478 36,885 65%
City of Richmond
Public Safety Sworn Overtime
Fund: 0001 - General Fund
Period 1 2 3 4 5 6 7 8 9 10 11 12 Average
Month July August September October November December January February M arch April May June YTD YTD Remaining Monthly Target % 8% 17% 25% 33% 42% 50% 58% 67% 75% 83% 92% 100% Total $ Total % Budget Expense
ORIGINAL
BUDGET
REVISED
BUDGET
FY2014-15 Overtime - Sworn 3,785,000 4,870,000 418,539 310,828 411,518 387,930 362,156 457,306 306,802 413,622 495,119 474,497 374,031 472,889 4,885,236 100.3% (15,236) 407,103.04 FY2015-16 Overtime - Sworn 4,405,000 4,405,000 382,540 436,305 552,158 475,640 448,527 504,933 515,570 352,041 409,747 373,446 438,424 316,501 5,205,832 118.2% (800,832) 433,819.34 FY2016-17 Overtime - Sworn 3,169,000 3,169,000 313,703 373,243 423,224 469,661 339,483 327,177 348,075 361,458 349,723 365,735 425,407 563,317 4,660,206 147.1% (1,491,206) 388,350.51 FY2017-18 Overtime - Sworn 3,169,000 3,169,000 569,194 440,670 445,282 459,402 452,278 396,762 322,524 497,979 455,202 554,449 509,368 466,567 5,569,677 175.8% (2,400,677) 464,139.77 FY2018-19 Overtime - Sworn 3,433,019 3,433,019 482,143 537,369 655,866 437,794 524,577 430,398 367,322 512,595 422,587 497,767 536,209 505,966 5,910,593 172.2% (2,477,574) 492,549.39 FY2019-20 Overtime - Sworn 3,433,019 3,433,019 473,963 469,392 491,205 509,931 449,751 473,935 390,897 498,501 501,383 479,696 560,031 439,159 5,737,844 167.1% (2,304,825) 478,153.64 FY2020-21 Overtime - Sworn 3,533,043 3,651,935 275,202 246,822 296,775 382,618 306,787 278,293 205,529 303,631 307,092 357,284 323,537 368,366 3,651,935 100.0% (0) 304,327.96 FY2021-22 Overtime - Sworn 5,165,434 5,165,434 358,067 389,828 472,454 417,698 322,193 301,011 240,070 323,173 309,207 3,133,701 60.7% 2,031,733 261,141.73 FY2014-15 Overtime - Sworn 1,570,000 2,770,000 220,307 246,370 307,942 227,121 168,609 219,890 186,372 206,850 283,970 192,245 278,950 292,381 2,831,007 102.2% (61,007) 235,917.27 FY2015-16 Overtime - Sworn 2,704,914 2,708,914 184,361 180,698 234,169 203,104 189,824 205,064 255,662 252,596 174,378 194,054 181,321 238,505 2,493,736 92.1% 215,178 207,811.37 FY2016-17 Overtime - Sworn 2,486,914 2,486,914 268,353 267,582 178,894 164,200 149,136 147,981 227,796 267,960 182,993 246,898 233,383 316,924 2,652,102 106.6% (165,188) 221,008.47 FY2017-18 Overtime - Sworn 2,486,914 2,486,914 268,465 345,174 291,221 359,542 367,182 310,508 336,315 176,449 132,298 196,306 203,912 166,108 3,153,480 126.8% (666,566) 262,789.99 FY2018-19 Overtime - Sworn 2,509,914 2,509,914 257,785 245,946 179,272 171,370 219,937 204,997 261,780 216,596 196,343 310,702 220,368 275,966 2,761,062 110.0% (251,148) 230,088.48 FY2019-20 Overtime - Sworn 2,509,914 2,509,914 295,166 277,886 286,016 300,083 332,654 382,084 347,492 328,467 350,709 302,505 264,571 325,335 3,792,969 151.1% (1,283,055) 316,080.74 FY2020-21 Overtime - Sworn 1,993,165 3,193,165 398,678 380,282 417,982 393,922 267,819 345,928 341,403 305,081 172,961 261,923 263,518 286,039 3,835,537 120.1% (642,372) 319,628.09 FY2021-22 Overtime - Sworn 3,629,097 4,334,499 334,236 434,974 358,578 358,251 352,789 327,832 427,404 396,618 297,205 3,287,888 75.9% 1,046,611 273,990.65 FY2021-22 TOTAL 5,526,208 6,845,100 692,303 824,803 831,033 775,949 674,982 628,843 667,474 719,790 606,412 - - - 6,421,589 93.8% 423,511 535,132.38
BUDGET ACTUALS TOTAL
POLICE FIRE
May 3, 2022
Finance Department
DATE: May 3, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Shasa Curl, City Manager
Anil Comelo, Interim Deputy City Manager
Delmy Cuellar, Interim Director of Finance
Mubeen Qader, Budget Administrator
Subject:
Fiscal Year 2021-2022 Third Quarter Budget report and
Overtime Report
FINANCIAL IMPACT: There is no fiscal impact as result of this agenda item.
PREVIOUS COUNCIL
ACTION:
June 29, 2021, October 26, 2021, January 25, 2022,
February 1, 2022, February 15, 2022, March 1, 2022,
and March 22, 2022
STATEMENT OF THE
ISSUE:
The quarterly budget report serves to assist the City in monitoring its revenues and expenditures, as compared
to the approved budgeted amounts. The report also
provides staff, the City Council, and the community the ability to monitor trends that impact the budget cycle.
RECOMMENDED ACTION:
RECEIVE the Fiscal Year 2021-2022 third quarter budget
report and the overtime report for the period of July 1, 2021 through March 31, 2022 – Finance Department
(Delmy Cuellar/Mubeen Qader 412-2077).
AGENDA
REPORT
May 3, 2022
DISCUSSION:
Overview
This report represents an overview of the City’s third quarter operating revenues and expenditures for Fiscal Year (FY) 2021-22. The period covers budget activity from July 1, 2021, through March 31, 2022. Generally, at the end of the third quarter, Finance would have expected to have expended 75 percent of the total expenditure budget.
Revenues are not necessarily measured against the same standard due to the seasonality of some major sources of revenue, such as property tax which is received annually in December, April, and June.
At the end of the third quarter, expenditure actuals are trending lower than expected for the current fiscal year and the prior fiscal years. Regardless of the year-to-date expenditures being lower, the budget will continue to be monitored closely given the City’s overall financial condition and the on-going uncertainty in the global economy.
Staff continues to explore cost-saving and revenue enhancement measures but emphasizes that longer-term solutions will be necessary to achieve a structurally balanced budget. It is worth noting that the FY 2021-22 approved Operating Budget includes set-asides from the operating surplus of the prior FY 2020-21 (Refer to City Council Mid-Year Budget Report from March 22, 2022).
General Fund
General Fund Revenues
For the third quarter of FY 2021-22, revenues received total $121 million (63 percent of the budget). This is below the threshold of 75 percent, but the variance is primarily due to the seasonality of most of the revenue sources. For example, the City receives its first secured property tax installment (55 percent) in December and the second installment in April (40 percent). Table 1 below summarizes the General Fund revenue budget to actuals through the third quarter. See Attachment 1 for the breakdown by department.
Table 1: General Fund Revenues thru March 31, 2022
May 3, 2022
For most of the major General Fund revenues, in particular the Utility User Tax and Sales Tax, the final number is unknown until after the revenue accruals have been posted in July and August.
Property Tax
FY 2021-2022 General Fund Property Taxes through third quarter total $24.3 million or
53.7 percent of the budgeted amounts as updated at mid-year. The secured property tax is on pace to meet budgeted amounts. Staff will continue analyzing other components of the Property Tax revenue which are received in the fourth quarter including Homeowner’s Exemptions, Successor Agency Surplus, and pass-through payments from the County.
Sales & Use Tax
Sales & Use Tax through third quarter total $30 million or 57.7 percent of the budgeted amounts as updated at Mid-Year. The Sales & Use Tax revenue stream was the most impacted by the shelter–in-place and the downturn in the economy in Fiscal Year 2019- 2020 due to COVID. The rebound has occurred faster than most predicted and the City Sales Tax revenues have surpassed the pre-COVID levels. The Sales Tax revenues received in the third quarter of FY2021-2022 are trending as budgeted. The amounts received year-to-date match the revenue estimates provided by Avenu Analytics, the City’s sales tax consultants. The increase from previous years is in part due to the local economy being strong, bolstered by the big box stores including Costco, Target, Home Depot, and Wal-Mart.
May 3, 2022
Utility Users Tax (UUT)
UUT through the third quarter total $35.7 million or 76.8 percent of the budgeted amounts as updated at mid-year. The UUT revenue stream, including the maximum cap amount paid by Chevron, is trending to meet the budgeted amounts. The cap amount was expected to grow by 3.0 percent and ended up being 6.8 percent.
Other Taxes
Through the third quarter, the City has received $12.3 million or 58.6 percent of the budgeted amount of Other Taxes. Revenues of note in this category includes the Documentary Transfer Tax, Hotel Tax, and Franchise Fees. The main driver of this revenue category, though, is Documentary Transfer Tax which can vary significantly from month-to-month. The calculation of the budgeted amount for Documentary Transfer Tax is stipulated in the adopted Guiding Fiscal Policies, and is on pace to reach the budgeted amount.
Licenses, Permits & Fees
Through the third quarter, the City has received $4.6 million or 44.1 percent of the budget amount for Licenses, Permits, and Fees. One of the main revenue categories includes the Business Tax. The methodology and collection was changed with the voter-approved passage of Measure U. The percent collected year-to-date is lower than previous years in part because, previously, much of the business tax was paid in December and January. The original budgeted amount for the business tax was $9.5 million. Staff anticipated and mitigated for a year-one reduction of $2 million to account for various potential issues that could impact this year’s Measure U revenue including (1) this being the first year of the program, (2) the expiration date being July 1st, and (3) the amnesty program for the first year where the City will not impose any late fees until after July 1, 2022. The City is currently budgeting $7.9 million in FY 2022 which includes a mid-year reduction of $1.6 million after City Council voted in December 2021 to allow small rental property owners to use any fees paid to the Rent Board as a credit towards the business tax; thus, the estimate for Measure U revenues for the current fiscal year could be as low as $5.9 million ($9.5 million - $1.6 million - $2.0 million = $5.9 million).
That said, City staff anticipated the potential for year-one revenues shortfall and has set-aside revenues from the previous year to mitigate that possibility.
City staff has collected $2.7 million or 34 percent of the $7.9M budgeted in Business Taxes through March 2022. The Measure U Team has recently updated various procedures, documents, online functionality, and brought on temporary staff that will make it easier for businesses to renew. City staff members will not know the final numbers until very late in the fiscal year, especially in light that many of the businesses that owe larger amounts might decide to hold off on submitting payments until closer to the expiration date.
May 3, 2022
General Fund Expenditures
General Fund expenditures totaled $127.4 million (65.2 percent of the budget) at the end of the third quarter of the Fiscal Year 2021-2022. Actuals are trending lower in all major expenditure categories. Table 2 below summarizes the third quarter expenditure budget to actuals. See Attachment 1 for the breakdown by department.
Table 2: General Fund Expenditures Thru March 2022
The following are explanations of some of the major categories’ variances explained.
Salaries and Wages and Payroll/Fringe Benefits
Salaries are at 70.4 percent and Fringe Benefits at 72.1 percent of their respective total budgets which is lower than the threshold of 75 percent. The driver behind the positive variance is due to the significantly higher vacancy rate when compared to prior years.
As of the March 2022 vacancy report there were a total 123 positions vacant and of the total, 98 positions were in the General Fund. A significant part of the saving from these vacant positions is off set by the budgeted vacancy saving factor of $5.8 million.
Professional & Admin Services
The services include professional and consulting services, and contractual obligations, such as animal control services. Actual expenditures total $6.2 million (38.6 percent of budget) and are below the threshold. Factoring in purchase order encumbrances of $2.6 million, the total is $8.8 million (54.7 percent of budget). Operating savings are typically captured in this category.
Other Operating
This category includes copier leases, office supplies, and other items. Actual expenditures total $3.7 million (52.3 percent of budget). Factoring in purchase order encumbrances of $1.1 million, the total is $4.8 million (67.7 percent of the budget).
General Fund
thru
March 31, 2022
ORIGINAL
APPROP
TRANFRS
/
ADJSMTS
REVISED
BUDGET YTD ACTUAL ENCUMB.
AVAILABLE
BUDGET
% USED
WITHOUT
ENCUMB.
% USED
WITHOUT
ENCUMB
40 SALARIES AND WAGES 75,424,602 416,527 75,841,128 53,384,860 - 22,456,268 70.39% 70.40% 41 PYRLL/FRINGE BENEFIT 62,145,202 - 62,145,202 44,819,015 - 17,326,187 72.12% 72.10% 42 PROF & ADMIN 11,201,880 4,790,674 15,992,554 6,177,756 2,576,083 7,238,715 38.63% 54.70% 43 OTHER OPERATING 10,680,893 (3,547,183) 7,133,710 3,731,779 1,100,096 2,301,835 52.31% 67.70% 44 UTILITIES 4,565,743 471,942 5,037,685 3,015,150 294,542 1,727,993 59.85% 65.70% 45 EQPT & CONTRACT SVCS 2,628,158 69,536 2,697,694 1,648,959 312,592 736,143 61.12% 72.70% 46 PROVISN FOR INS LOSS 25,725 1,948 27,673 26,673 - 1,000 96.39% 96.40% 47 COST POOL 14,130,436 325,000 14,455,436 10,597,825 - 3,857,611 73.31% 73.30% 48 ASSET/CAPITAL OUTLAY 1,602,890 (56,876) 1,546,014 652,429 59,349 834,236 42.20% 46.00% 49 DEBT SVC EXPENDITURE 1,065,359 - 1,065,359 644,090 - 421,270 60.46% 60.50% 4A A87 COST PLAN REIMBS (3,516,104) - (3,516,104) (2,603,644) - (912,460) 74.05% 74.00% 50 GRANT EXPENDITURES 2,500 80,000 82,500 10,272 - 72,228 12.45% 12.50% 91 OPER XFERS OUT 7,884,939 4,916,480 12,801,419 5,272,266 - 7,529,153 41.19% 41.20% EXPENDITURE TOTAL 187,842,223 7,468,048 195,310,271 127,377,429 4,342,662 63,590,180 65.22% 67.44%
May 3, 2022
Utilities
Utilities include gas, electricity, water, refuse, telephone, and internet services. Actual expenditures total $3 million (59.9 percent of budget). Factoring in purchase order encumbrances of $295,000, the total is $3.3 million (65.7 percent of the budget).
Equipment & Contract Services
Equipment and Contract Services include equipment and maintenance/repair services.
Actual expenditures total $1.6 million (61.1 percent of the budget). Factoring in purchase order encumbrances of $ 313,000, the total is $2 million (72.7 percent of budget).
Provision for Insurance Loss
This includes premium payments for several property insurances, the costs are paid in full in the beginning of the fiscal year. The total expenditure is at 96.4 percent of the total budget.
Cost Pool
This includes the cost of equipment replacement, general liability insurance premium and Civic Center debt allocation. The activity in this category is recorded through monthly transaction schedules
Transfers Out
This includes transfers out from the General Fund to non-General Funds mostly for operating subsidies and a portion of debt service. Actuals total $7.5 million (41.2 percent of budget). This amount is below the threshold due to the subsidies being on hold until the final subsidy amounts are known towards the end of the fiscal year.
General Fund Overtime Report
The General Fund total overtime, including sworn and miscellaneous overtime, revised budget is $10.7 million. At the end of the third quarter total actual overtime is at 69 percent below the threshold of 75 percent. Sworn-Fire and miscellaneous overtime are above the threshold at 76 percent and 89 percent respectively. Sworn-Police overtime is $3.1 million, below the threshold at 61 percent of the total budget. See attachment 3 for detailed overtime report by type and by department.
Non-General Funds
Non-General Fund Revenues
Overall, 54.5 percent of the Non-General Fund revenues have been collected and are trending as expected. The timing of receipts varies amongst the funds based on the source of funding. For instance, grant funds are typically received after expenditures are
May 3, 2022
incurred and reimbursement requests are submitted to grantors. The chart below summarizes the revenue budget to actuals for non-general funds. See Attachment 4 for revenue budget to actuals by individual fund.
Table 3: Non-General Fund Revenues, as of March 31, 2022
Non-General Fund Expenditures
Overall, 61.1 percent of the Non-General Fund budget appropriations have been expended. Spending patterns in other funds are slightly different than the General Fund depending on the type of the fund. For example, Capital funds’ expenditures depend on the progress of the projects and how invoices are received and processed. The majority of the expenditures are below the threshold of 75 percent. See Attachment 4 for expenditure budget to actuals by individual fund.
Table 4: Non-General Funds Expenditures as of March 321, 2022
Next Steps
City staff will continue to closely monitor the revenues and expenditures to determine if adjustments will need to be made during year-end cleanup process. Please visit the City’s website at https://www.ci.richmond.ca.us/1427/Presentations for the most up-to- date budget information and presentations.
DOCUMENTS ATTACHED:
Attachment 1 – Third Quarter Summary Budget Report – General Fund Fund Types ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL AVAILABLE
BUDGET
W/O ENCUMB. %
USED
Other Operations (23,733,954) (27,526,325) (11,611,284) (15,915,040) 42.2% Special Revenue (18,089,047) (18,258,637) (19,425,486) 1,165,920 1.2% Capital Improvement (25,489,773) (33,477,407) (7,679,010) (25,798,397) 22.9% Debt Service (21,604,190) (21,604,190) (19,732,352) (1,871,839) 91.3% Enterprise (39,014,479) (39,339,830) (20,056,895) (19,282,935) 51.0% Internal Services (14,728,562) (31,969,993) (20,998,282) (10,971,711) 65.7% Housing Department (3,509,880) (3,509,880) (1,464,312) (2,045,568) 41.7% Richmond Housing Authority (4,680,205) (4,763,120) (2,035,693) (2,727,427) 42.7% Pension Trust (934,004) (2,225,764) 3,397,533 (5,623,297) -152.6% Total Revenue (151,784,094) (182,675,146) (99,605,781) (83,070,294) 54.5% Fund Types ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMB. AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB.
% USED
Other Operations 24,275,841 29,590,926 12,152,166 4,053,841 13,384,919 41.1% 54.8% Special Revenue 28,652,357 33,819,483 14,502,790 3,548,063 15,636,941 1.2% 53.4% Capital Improvement 34,240,355 52,335,516 11,093,518 12,252,101 28,989,897 21.2% 44.6% Debt Service 22,536,642 22,536,642 18,007,935 - 4,528,707 79.9% 79.9% Enterprise 91,902,760 97,327,850 36,028,464 31,435,051 29,864,335 37.0% 69.3% Internal Services 28,920,034 38,583,592 22,278,398 3,909,450 12,395,745 57.7% 67.9% Housing Department 5,947,891 7,278,471 1,387,321 416,136 5,426,644 19.1% 24.8% Richmond Housing Authority 4,867,095 4,763,120 1,989,174 703,967 2,069,979 41.8% 56.5% Pension Trust - - 1,235,307 - (1,235,307) 100% 100% Expenditures 241,342,975 286,235,601 118,675,074 56,318,608 111,061,859 41.5% 61.1%
May 3, 2022
Attachment 2 – Third Quarter Budget Report by Department – General Fund Attachment 3 – Overtime Report – March 2022
Attachment 4 – Third Quarter Budget Report – All Funds
Attachment 5 – Presentation
General Fund Revenue Expenditures, March 31, Fiscal Year 20212022 ACCOUNT DESCRIPTION ORIGINAL APPROP TRANFRS/ADJSMTS REVISED BUDGET YTD ACTUAL ENCUMBRANCES AVAILABLE BUDGET % USED 30 PROPERTY TAXES (47,460,890.00)$ 2,227,329.00 $ (45,233,561.00)$ (24,288,031.40) $ $ (20,945,529.60)$ 54% 31 SALES & USE TAX (50,060,211.00)$ (1,933,525.00) $ (51,993,736.00) $ (29,991,087.85) $ $ (22,002,648.15)$ 58% 32 UTILITY USERS TAX (45,452,324.00)$ (1,070,339.00) $ (46,522,663.00) $ (35,712,777.38) $ $ (10,809,885.62)$ 77% 33 OTHER TAXES (18,269,102.00)$ (2,684,241.00) $ (20,953,343.00) $ (12,271,554.13) $ $ (8,681,788.87)$ 59% 34 LICENSES,PRMITS&FEES (11,806,325.60)$ 1,451,991.00 $ (10,354,334.60)$ (4,567,692.50) $ $ (5,786,642.10)$ 44% 35 FINES & FORFEITURES (550,000.00)$ 81,103.00 $ (468,897.00)$ (297,306.04) $ $ (171,590.96)$ 63% 36 USE OF MONEY&PROPRTY (236,079.00)$ $ (236,079.00)$ (82,078.70) $ $ (154,000.30)$ 35% 37 CHARGES FOR SERVICES (3,383,931.00)$ (40,528.00) $ (3,424,459.00)$ (2,380,112.81) $ $ (1,044,346.19)$ 70% 38 OTHER REVENUE (158,976.80)$ (1,314,950.00)$ (1,473,926.80) $ (441,756.23) $ $ (1,032,170.57)$ 30% 39 RENTAL INCOME (733,205.90)$ (14,062.00) $ (747,267.90) $ (555,402.17) $ $ (191,865.73)$ 74% 3A INTERGOV STATE TAXES (90,000.00)$ $ (90,000.00)$ (127,227.89) $ $ 37,227.8 9$ 141% 3C INTERGOV STATE GRANT (160,000.00)$ (27,878.00) $ (187,878.00) $ (192,438.30) $ $ 4,560.30$ 102% 3D INTERGOV OTHER GRANT (153,569.13)$ $ (153,569.13)$ (211,209.43) $ $ 57,640.30$ 138% 60 PROC FR SLE PROP (100,000.00)$ $ (100,000.00)$ (706.69) $ $ (99,293.31)$ 0.7% 61 LOAN/BOND PROCEEDS $ (36,400.00)$ (36,400.00) $ (93,800.00) $ $ 57,400.00$ 258% 90 OPER XFERS IN (9,856,182.00) $ (348,042.00) $ (10,204,224.00)$ (9,834,489.00) $ $ (369,735.00)$ 96% Revenue Total (188,470,796.43)$ (3,709,542.00) $ (192,180,338.43)$ (121,047,670.52) $ $ (71,132,667.91)$ 63 % 40 SALARIES AND WAGES 75,424,601.69$ 416,526.7 4$ 75,841,128.43$ 53,384,860.08 $ $ 22,456,268.3 5$ 70% 41 PYRLL/FRINGE BENEFIT 62,145,201.65$ $ 62,145,201.6 5$ 44,819,014.68 $ $ 17,326,186.9 7$ 72% 42 PROF & ADMIN 11,201,879.91$ 4,790,674.2 4$ 15,992,554.1 5$ 6,177,755.71 $ 2,576,083.1 4$ 7,238,715.30 $ 55% 43 OTHER OPERATING 10,680,892.9 4$ (3,547,182.69) $ 7,133,710.2 5$ 3,731,779.1 7$ 1,100,096.1 7$ 2,301,834.91 $ 68% 44 UTILITIES 4,565,742.92$ 471,942.00 $ 5,037,684.9 2$ 3,015,149.5 9$ 294,542.2 6$ 1,727,993.0 7$ 66% 45 EQPT & CONTRACT SVCS 2,628,158.40$ 69,535.7 6$ 2,697,694.1 6$ 1,648,958.71 $ 312,592.10 $ 736,143.3 5$ 73% 46 PROVISN FOR INS LOSS 25,725.00$ 1,948.4 6$ 27,673.4 6$ 26,673.4 6$ $ 1,000.00$ 96% 47 COST POOL 14,130,436.00 $ 325,000.00 $ 14,455,436.00$ 10,597,825.00 $ $ 3,857,611.00$ 73% 48 ASSET/CAPITAL OUTLAY 1,602,889.80$ (56,876.17) $ 1,546,013.63 $ 652,428.71 $ 59,348.60 $ 834,236.3 2$ 46% 49 DEBT SVC EXPENDITURE 1,065,359.36$ $ 1,065,359.3 6$ 644,089.5 4$ $ 421,269.8 2$ 61% 4A A87 COST PLAN REIMBS (3,516,104.00)$ $ (3,516,104.00)$ (2,603,644.00) $ $ (912,460.00)$ 74% 50 GRANT EXPENDITURES 2,500.00$ 80,000.00 $ 82,500.00 $ 10,272.23 $ $ 72,227.7 7$ 43% 91 OPER XFERS OUT 7,884,939.32$ 4,916,480.00 $ 12,801,419.3 2$ 5,272,266.08 $ $ 7,529,153.2 4$ 41% 0001 GENERAL FUND (628,573.44)$ 3,758,506.3 4$ 3,129,932.90 $ 6,329,758.4 4$ 4,342,662.2 7$ (7,542,487.81) $ 341% Expense Total 187,842,222.99$ 7,468,048.34 $ 195,310,271.3 3$ 127,377,428.9 6$ 4,342,662.27 $ 63,590,180.10 $ 67 % Grand Total (628,573.44)$ 3,758,506.34 $ 3,129,932.90 $ 6,329,758.44 $ 4,342,662.27 $ (7,542,487.81) $ 341 %
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
10MAYOR
SALARIES AND WAGES 286,868 294,468 206,084 88,384 70% 70% PYRLL/FRINGE BENEFIT 248,268 248,268 198,380 49,888 80% 80% PROF & ADMIN 16,100 16,100 2,000 14,100 12% 12%
OTHER OPERATIN
G 2,400 2,400 1,60 3 7 9 7 67% 67%
UTILITIES 1,250 1,250 2,236 (986) 179% 179%
COST POOL 18,27
7 18,277 13,708 4,569 75% 75%
A87 COST PLAN REIMBS (113,118) (113,118) (84,839) (28,279) 75% 75% Total Expenditures 460,04 5 467,645 339,171 128,474 73 % 73% 11CITY COUNCIL
SALARIES AND WAGES 299,779 312,384 172,68 3 139,701 55% 55% PYRLL/FRINGE BENEFIT 212,364 212,364 165,781 46,583 78% 78% PROF & ADMIN 37,050 37,050 6,098 30,95 2 16% 16%
OTHER OPERATING 18,600 18,600 7,45 2 1,026 10,121 40% 46% UTILITIES 1,100 1,100 841 259 76% 76%
COST POOL 30,42 2 30,422 22,817 7 , 6 0 5 7 5 % 7 5 %
ASSET/CAPITAL OUTLAY 1,200 1,200 1,200 0% 0%
A87 COST PLAN REIMBS (156,559) (156,559) (117,419) (39,140) 75% 75% Total Expenditures 443,956 456,56 1 258,254 1,026 197,28 1 57% 57% 12COMMISSIONS
SALARIES AND WAGES 78,31 7 78,317 43,698 34,619 56% 56% PYRLL/FRINGE BENEFIT 174 174 5,238 (5,064) 3010% 3010% PROF & ADMIN 10,300 10,300 1,46 7 8 , 8 3 3 14% 14%
OTHER OPERATING 1,350 1,350 6 1,344 0% 0%
Total Expenditures 90,14 1 90,141 50,409 39,732 56 % 56%
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
13CITY MANAGER
OTHER TAXES (1,500,000)
Total Revenue (1,500,000) (1,557) (1,557) 0 % 0%
SALARIES AND WAGES 575,652 554,300 516,160 38,140 93% 93% PYRLL/FRINGE BENEFIT 330,229 330,229 155,152 175,077 47% 47% PROF & ADMIN 122,250 122,250 9,774 9,065 103,410 8% 15% OTHER OPERATING 10,700 10,700 5,210 72 7 4,763 49% 55%
UTILITIES 1,000 1,000 1,308 (308) 131% 131%
EQPT & CONTRACT SVCS 200 200 12
2 78 61% 100%
PROVISN FOR INS LOSS
COST POOL 100,038 100,038 75,02
7 25,011 75% 75%
A87 COST PLAN REIMBS (258,011) (258,011) (193,508) (64,503) 75% 75% Total Expenditures 882,058 860,706 569,24 5 9,871 281,590 66 % 67% 14CITY CLERK
LICENSES,PRMITS&FEES (600) (600) (450) (150) 75% 75%
CHARGES FOR SERVICES (6,000)
OTHER REVENUE (155) (560) 405 361% 361%
Total Revenue (6,600) (755) (1,010) 25 5 134% 134%
SALARIES AND WAGES 411,069 444,369 330,56 3 113,806 74% 74% PYRLL/FRINGE BENEFIT 278,754 278,754 217,080 61,674 78% 78% PROF & ADMIN 348,200 306,200 80,110 76,14 3 149,947 26% 51% OTHER OPERATING 21,800 21,800 6,17 3 1,595 14,03 3 28% 36% UTILITIES 1,500 1,500 280 1,220 19% 19%
COST POOL 21,190 21,190 15,89
3 5 , 2 9 7 75% 75%
A87 COST PLAN REIMBS (121,090) (121,090) (90,818) (30,272) 75% 75% Total Expenditures 961,423 952,723 559,280 77,738 315,70 5 59% 67%
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
15CITY ATTORNEY
LICENSES,PRMITS&FEES (60) (60) 100% 100%
Total Revenue (60) (60) 100 % 100%
SALARIES AND WAGES 1,228,094 1,262,891 734,203 528,688 58% 58% PYRLL/FRINGE BENEFIT 651,957 651,957 366,898 285,059 56% 56% PROF & ADMIN 256,450 1,251,666 216,06 7 365,805 669,794 17% 46% OTHER OPERATING 21,500 21,500 12,72 7 7,775 999 59% 95% EQPT & CONTRACT SVCS 1,250 1,250 26 7 77 906 21% 28%
COST POOL 76,14 3 76,143 57,108 19,035 75% 75%
A87 COST PLAN REIMBS (232,373) (232,373) (174,280) (58,093) 75% 75% Total Expenditures 2,003,02 1 3,033,034 1,212,990 373,656 1,446,388 40 % 52% 16PLANNING & BUILDING SERVICES (CODE ENFORCEMENT)
LICENSES,PRMITS&FEES (530,000) (530,000) (433,326) (96,674) 82% 82% OTHER REVENUE (36,786) (44,429) 7,64 3 100% 100%
Total Revenue (530,000) (566,786) (477,755) (89,031) 84 % 84% SALARIES AND WAGES 675,420 702,020 525,80 2 176,218 75% 75% PYRLL/FRINGE BENEFIT 600,678 600,678 426,92 2 173,756 71% 71% PROF & ADMIN 364,898 364,898 53,218 5,261 306,419 15% 16%
OTHER OPERATIN
G 26,447 26,447 14,273 1,779 10,396 54% 61%
UTILITIES 11,000 11,000 7,535 3,465 68% 100%
EQPT & CONTRACT SVCS 13,549 13,549 4,49
3 9 , 0 5 6 3 3 % 3 3 %
Total Expenditures 1,691,992 1,718,592 1,032,243 10,50 5 675,844 60 % 61%
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
17FINANCE
LICENSES,PRMITS&FEES (68) (68) 0 100% 100%
Total Revenue (68) (68) 0 100 % 100%
SALARIES AND WAGES 3,030,03 2 3,130,577 1,750,951 1,379,626 56% 56% PYRLL/FRINGE BENEFIT 2,267,453 2,267,453 1,272,843 994,610 56% 56% PROF & ADMIN 752,192 751,942 402,182 77,682 272,078 53% 64% OTHER OPERATING 68,806 68,806 44,111 10,305 14,390 64% 79% UTILITIES 1,400 1,394 804 590 58% 58%
EQPT & CONTRACT SVCS 129 385 138 11
2 135 36% 65%
COST POOL 171,164 171,164 128,37 2 42,79 2 75% 75%
A87 COST PLAN REIMBS (1,059,033) (1,059,033) (794,276) (264,757) 75 %7 5 % Total Expenditures 5,232,143 5,332,688 2,805,12 5 88,099 2,439,464 53 % 54% 18HUMAN RESOURCES
SALARIES AND WAGES 747,229 775,615 707,008 68,60 7 91% 91% PYRLL/FRINGE BENEFIT 529,064 529,064 427,184 101,880 81% 81% PROF & ADMIN 565,550 666,150 232,66 3 245,365 188,12 3 35% 72% OTHER OPERATING 17,625 17,625 12,569 3,116 1,940 71% 89% COST POOL 102,656 102,656 76,991 25,665 75% 75%
A87 COST PLAN REIMBS (214,708) (214,708) (161,031) (53,677) 75% 75% Total Expenditures 1,747,566 1,876,552 1,298,10 9 248,509 329,934 69 % 82%
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
19POLICE
LICENSES,PRMITS&FEES (176,500) (116,857) (183,541) 66,684 157% 157% FINES & FORFEITURES (250,000) (150,000) (131,918) (18,082) 88% 88% CHARGES FOR SERVICES (913,403) (959,931) (857,835) (102,096) 89% 89%
OTHER REVENU
E (75,000) (77,000) (78,034) 1,034 101% 101%
INTERGOV STATE GRANT (10,000) (10,000) (14,507) 4,50 7 145% 145% INTERGOV OTHER GRANT (150,000) (150,000) (211,209) 61,209 141% 141% Total Revenue (1,574,903) (1,463,788) (1,477,045) 13,257 101 % 101% SALARIES AND WAGES 32,385,120 33,053,920 21,403,729 11,650,191 65% 6 5% PYRLL/FRINGE BENEFIT 26,827,180 26,827,180 18,023,039 8,804,141 67% 67% PROF & ADMIN 4,061,985 4,079,976 2,926,217 684,247 469,512 72% 88% OTHER OPERATING 2,604,591 2,638,51 3 1,862,260 533,35 2 242,900 71% 91% UTILITIES 400,000 395,000 244,686 36,780 113,534 62% 71% EQPT & CONTRACT SVCS 789,347 799,347 215,545 45,039 538,763 27% 33% PROVISN FOR INS LOSS 1,725 1,81 2 1,812 100% 100%
COST POOL 3,230,83 3 3,230,833 2,423,126 807,70 7 75% 75% ASSET/CAPITAL OUTLAY 421,675 364,675 51,986 10,549 302,140 14% 17% DEBT SVC EXPENDITURE 244,424 244,424 236,160 8,264 97% 97% Total Expenditures 70,966,87 9 71,635,679 47,388,560 1,309,968 22,937,152 66 % 68%
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
20FIRE
LICENSES,PRMITS&FEES (925,000) (925,000) (572,610) (352,390) 62% 62% CHARGES FOR SERVICES (900,503) (900,503) (695,020) (205,483) 77% 77% Total Revenu
e (1,825,503) (1,825,503) (1,268,455) (557,048) 69 % 69% SALARIES AND WAGES 17,615,675 18,632,67 7 13,169,070 5,463,60 7 71% 71% PYRLL/FRINGE BENEFIT 14,428,325 14,428,325 10,404,664 4,023,661 72% 72% PROF & ADMIN 347,326 1,364,326 70,795 79,599 1,213,932 5% 11% OTHER OPERATING 133,274 132,974 40,678 4,11 2 88,184 31% 34% UTILITIES 33,500 33,500 15,17 2 2,308 16,019 45% 52%
EQPT & CONTRACT SVCS 115,650 97,950 22,164 26,129 49,658 23% 49% PROVISN FOR INS LOSS 23,000 24,861 24,861 100% 100% COST POOL 1,642,331 1,642,331 1,231,748 410,58
3 75% 75%
ASSET/CAPITAL OUTLAY 14,500 13,639 7,179 6,460 53% 53%
DEBT SVC EXPENDITUR
E 114,778 114,778 57,409 57,369 50% 50%
OPER XFERS OUT 326,018 326,018 244,514 81,504 75% 75% Total Expenditures 34,794,377 36,811,37 9 25,288,255 112,149 11,410,976 69 % 69% 21OFFICE OF NEIGHBORHOOD SAFETY
INTERGOV STATE GRANT (12,839) (12,839) 100% 100% Total Revenue (17,839) (17,839) 100 % 100%
SALARIES AND WAGES 782,096 812,496 580,39 3 2 3 2 , 1 03 71% 71% PYRLL/FRINGE BENEFIT 600,409 600,409 431,931 168,478 72% 72% PROF & ADMIN 69,790 69,790 1,754 68,036 3% 3%
OTHER OPERATIN
G 36,040 1,636,040 2,356 5,400 1,628,284 0% 0%
UTILITIES 16,000 16,000 8,370 7,630 52% 52%
COST POOL 152,010 152,010 114,006 38,004 75% 75%
ASSET/CAPITAL OUTLAY 9,600 9,600 1,835 7,765 19% 19%
GRANT EXPENDITURES 10,27
2 (10,272) 100% 100%
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
Total Expenditures 1,665,94 5 3,296,345 1,150,917 5,400 2,140,028 35 % 35% 23PUBLIC WORKS
LICENSES,PRMITS&FEES (96,600) (271,600) (193,746) (77,854) 71% 71% CHARGES FOR SERVICES (1,432,025) (1,432,025) (827,099) (604,926) 58 %5 8 %
OTHER REVENU
E (227) (227) (2,871) 2,644 1266% 1266%
RENTAL INCOME (18,000) (18,000) (12,913) (5,087) 72% 72% PROC FR SLE PROP (100,000) (100,000) (707) (99,293) 1% 1% Total Revenue (1,646,852) (1,821,852) (1,037,336) (784,516) 57 % 57% SALARIES AND WAGES 9,079,236 9,227,068 6,259,15 2 2,967,916 68% 68% PYRLL/FRINGE BENEFIT 8,138,085 8,138,085 5,249,75 3 2,888,33 2 65% 65% PROF & ADMIN 811,824 1,256,160 231,10 3 235,674 789,38 3 18% 37% OTHER OPERATING 2,237,744 2,133,09 3 1,344,123 458,947 330,023 63% 85% UTILITIES 3,700,61 2 4,110,612 2,464,620 238,479 1,407,51 2 60% 66% EQPT & CONTRACT SVCS 957,277 1,036,257 734,615 228,939 72,702 71% 93% COST POOL 3,609,030 3,934,030 2,706,774 1,227,256 69% 69% ASSET/CAPITAL OUTLAY 10,000 10,000 10,809 (809) 108% 108%
DEBT SVC EXPENDITUR
E 706,157 706,157 350,520 355,63 7 50% 50%
A87 COST PLAN REIMBS (696,460) (696,460) (606,721) (89,739) 87% 87% Total Expenditures 28,553,50 5 29,855,002 18,744,748 1,162,04 1 9,948,214 63 % 67%
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
24LIBRARY & CULTURAL SERVICES
RENTAL INCOM
E (14,062) (21,092) 7,030 150% 150%
Total Revenue (14,062) (21,092) 7,030 150 % 150%
SALARIES AND WAGES 2,289,201 2,441,672 1,658,267 783,405 68% 68% PYRLL/FRINGE BENEFIT 2,371,797 2,371,797 1,411,855 959,94 2 60% 60% PROF & ADMIN 472,195 477,480 371,668 54,428 51,384 78% 89% OTHER OPERATING 60,550 57,265 26,724 20,791 9,750 47% 83% UTILITIES 8,000 6,000 4,43 2 1 , 5 6 8 7 4 % 7 4 %
EQPT & CONTRACT SVCS 2,136 2,136 2,405 46 (315) 113% 115% COST POOL 246,440 246,440 184,829 61,611 75% 75%
ASSET/CAPITAL OUTLAY 4,500 4,500 4,500 0% 0%
Total Expenditures 5,454,820 5,607,29
1 3,660,180 75,266 1,871,84 5 65% 67%
25COMMUNITY SERVICES
LICENSES,PRMITS&FEES (450,626) (450,626) (334,656) (115,969) 74% 74% OTHER REVENUE (13,750) (207,856) (208,815) 959 100% 100% RENTAL INCOME (393,906) (393,906) (363,850) (30,056) 92% 92% INTERGOV OTHER GRANT (3,569) (3,569) (3,569) 0% 0% Total Revenue (861,851) (1,055,957) (907,321) (148,635) 86 % 86% SALARIES AND WAGES 2,590,506 2,662,675 1,801,935 860,740 68% 68% PYRLL/FRINGE BENEFIT 1,939,771 1,939,771 1,616,417 323,354 83% 83% PROF & ADMIN 480,83 7 398,496 121,619 9,491 267,386 31% 33% OTHER OPERATING 60,410 63,378 13,865 4,989 44,524 22% 30% UTILITIES 18,389 18,389 13,371 2,788 2,229 73% 88%
EQPT & CONTRACT SVCS 9,250 7,250 730 101 6,419 10% 11%
COST POOL 447,718 447,718 335,788 111,930 75% 75%
ASSET/CAPITAL OUTLAY 10,415 11,400 1,098 10,30
2 10% 10%
GRANT EXPENDITURES 2,500 82,500 82,500 0% 0%
City of Richmond
General Fund Budget Report, March 31, FY202122
GENERAL FUND
ORIGINAL
APPROP
REVISED
BUDGET YTD ACTUAL ENCUMBRANCES
AVAILABLE
BUDGET
W/O
ENCUMB.
% USED
WITH
ENCUMB. %
USED
Total Expenditures 5,559,79 5 5,631,577 3,904,824 17,36 9 1,709,384 69 % 70% 26INFORMATION TECHNOLOGY
OTHER REVENUE (2,688) (2,760) 7 2 103% 103%
Total Revenue (2,688) (2,760) 72 103 % 103%
SALARIES AND WAGES 986,519 969,019 645,450 323,569 67% 67% PYRLL/FRINGE BENEFIT 625,145 625,145 435,125 190,020 70% 70% PROF & ADMIN 543,652 589,652 512,981 37,559 39,112 87% 93% OTHER OPERATING 69,880 69,880 44,852 41,901 (16,873) 64% 124% UTILITIES 371,15 2 435,100 251,354 5,721 178,025 58% 59% EQPT & CONTRACT SVCS 727,220 727,220 667,319 12,04 2 47,859 92% 93% COST POOL 56,82 7 56,827 42,620 14,20 7 75% 75%
ASSET/CAPITAL OUTLAY 1,030,000 1,030,000 576,175 48,800 405,025 56% 61 % A87 COST PLAN REIMBS (523,579) (523,579) (392,686) (130,893) 75% 75% Total Expenditures 3,886,816 3,979,264 2,783,190 146,023 1,050,05 1 70% 74% 36ECONOMIC DEVELOPMENT PROGRAM
OTHER TAXES (1,500,000) (1,050,463) (449,537) 100% 100% OTHER REVENUE (1,557) 1 , 5 5 7 100% 100%
OPER XFERS IN (86,778) (86,778) (65,085) (21,693) 75% 75% Total Revenue (86,778) (1,586,778) (1,117,105) (469,673) 70 % 70% SALARIES AND WAGES 782,031 715,296 569,665 145,631 80% 80% PYRLL/FRINGE BENEFIT 472,674 472,674 343,073 129,601 73% 73% PROF & ADMIN 1,176,681 1,299,181 323,674 458,208 517,300 25% 60%
OTHER OPERATIN
G 431,050 432,550 206,97 3 1,233 224,343 48% 48%
UTILITIES 840 5,840 140 5,000 700 2% 88%
EQPT & CONTRACT SVCS 1,000 1,000 1,040 (40) 104% 104% PROVISN FOR INS LOSS 1,000 1,000 1,000