Richmond City Council
July 5, 2022

MEETING(S) - (Meetings are virtual)

AMENDED REGULAR RICHMOND CITY COUNCIL AGENDA
(TO ADD CLOSED SESSION ITEM C.4.)

Tuesday, July 5, 2022, 4:30 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 CC July 5, 2022, Mtg.

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 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 CC July 5, 2022, Mtg.

[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.

Disclaimer: The City Clerk's Office translates agendas to enhance public access. Translated agendas are provided as a courtesy and do not constitute legal notice of the meeting or items to be discussed. In case of discrepancy, the English agenda will prevail.

CC July 5, 2022, Mtg.

Pages
A. OPEN SESSION TO HEAR PUBLIC COMMENT BEFORE CLOSED SESSION 4:30 P.M.

B. ROLL CALL
C. CLOSED SESSION
.

C.1. CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6)
Agency Representatives: Jaclyn Gross, Sharrone Taylor, and Teresa Fairbanks
•
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 RFMA6.

C.2. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8)
Property: 1324 Canal Boulevard (General Warehouse, Port of Richmond) Agency negotiator: Dave Aleshire and Lizeht Zepeda
Negotiating parties: Richmond Grown
Under negotiation: Price and terms of payment
C.3. PUBLIC EMPLOYEE APPOINTMENT (Government Code Section 54957.6) Title: City Attorney•
C.4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Initiation of litigation pursuant to paragraph (4) of Subdivision (d) of Government Code Section 54956.9)
Riggers Loft Wine Company•
D. PUBLIC COMMENT BEFORE CLOSED SESSION (public comment on Closed Session items only)
E. ADJOURN TO CLOSED SESSION
________________________________________________________ CC July 5, 2022, Mtg.

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 Clerk's Office
O.1.a. Voting Delegate and Alternate – League of California Cities 2022 Annual Conference
9 DESIGNATE Mayor Tom Butt as voting delegate and Eduardo Martinez as an alternate to represent the City of Richmond at the Annual Business Meeting of the League of California Cities’ 2022 Annual Conference, to be held in Long Beach at the Long Beach Convention Center, Wednesday, September 7 through Friday, September 9, 2022 – City Clerk’s Office (Pamela Christian 510-620- 6513).

O.2. City Council
O.2.a. Street Safety improvements 14
DIRECT staff to address interim solutions to street safety concerns (prior to our Local Road Safety Plan being finalized and funded) such as dangerous pedestrian crossings along Carlson Boulevard and sideshows at Key Boulevard & Barrett Avenue, May Road & Santa Rita Road as well as at other locations – Councilmembers Gayle McLaughlin (510) 620-6581 and Claudia Jimenez (510) 620-6565, and Vice Mayor Eduardo Martinez (510) 620-6593.

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O.3. Finance Department
O.3.a. Ordinance Allowing for the Credit of Rent Board Fees Paid By Landlords With Four or Fewer Rental Units Against the Gross Receipts Tax Obligation and Amnesty Program for Residential Rental Properties
18 INTRODUCE an ordinance (first reading) allowing landlords with four or fewer residential units to credit their paid Rent Board fees against their gross receipts tax obligation; and ADOPT a resolution authorizing the Finance Department to offer a Business Tax Amnesty Program for a period commencing on July 1, 2022, and ending on August 15, 2022, for residential rental property businesses with unpaid business licenses – Finance Department (Delmy Cuellar 510- 620-6740/ Antonio Banuelos 510-620-6741).

O.4. Human Resources
O.4.a. Resolution Amending the Salary Schedule to Add Newly Established Classifications and Amend Position Control
26 ADOPT resolutions amending the salary schedule to add Electrician I/II (flexibly-staffed) and Senior Electrician classifications and salary ranges, and amending the salary schedule to update the bargaining unit assignment and salary ranges for the Deputy Director of Public Works-Operations and Maintenance and Deputy Director of Finance (Budget and Financial Services) and the salary range for Police Officer Trainee; AMEND Public Works authorized staffing (i.e., position control) to retitle the current Electricians to Electrician I/II and to add one (1) Senior Electrician position to be reallocated from one Electrician I/II position after a promotional examination is conducted; and APPROPRIATE funds for associated wages, salaries, and compensation for the Electrician I/II and Senior Electrician positions – Human Resources Department (Sharrone Taylor 510-620-6803).

O.4.b. Second Contract Amendment with Regional Government Services (RGS) to Provide Temporary Services and Support in Several Critical Areas to the City on an As-Needed Basis
37 APPROVE a second contract amendment with Regional Government Services to increase the contract amount by $300,000, for a new total payment limit not to exceed $700,000, for the provision of expertise in a variety of functional areas such as Human Resources, Financial Management, and Accounting – Human Resources Department (Sharrone Taylor 510-620-6803).

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O.5. Public Works
O.5.a. Proposed Contract with Community Fire Protection. 73 APPROVE a three-year contract with Community Fire Protection in the amount of $32,448 to provide annual East Bay Municipal Utility District (EBMUD) mandatory testing and repair of backflows in various City buildings, parks and right-of-ways, with an additional two-year extension option of $21,632. The contract term will be from July 1, 2022, to June 30, 2025 – Public Works Department (Joe Leach 510-620-5478/Greg Hardesty 510-620-6920/Jose Urquilla 510-620-6896).

P. ITEM(S) FROM PREVIOUS MEETINGS
P.1. Resolution Establishing the Fiscal Year 2022-23 Residential Rental Housing Fee
124
ADOPT a resolution establishing the Fiscal Year 2022-2023 Residential Rental Housing Fee in the amount of $226.00 per Controlled Rental Unit and $127.00 per Partially Covered Rental Unit – Rent Program (Nicolas Traylor 620-6564).

This item was continued from the June 21, 2022, meeting.

Consider if budget should be modified to provide General Fund support at historic level and if revised cost study should be performed by parties.

Q. PUBLIC HEARINGS
Q.1. Ballot Approval to Renew the Downtown Richmond Property and Business Improvement District
166
ADOPT a resolution renewing the Downtown Richmond Property and Business Improvement District (DRPBID), approving the assessment formula, and levying the assessments – City Manager’s Office (Shasa Curl/Thomas Omolo/Lizeht Zepeda 510-620-6512).

Q.2. Public Hearing to Adopt a Resolution to Establish an Underground Utility District on Pierce Street and San Mateo Street Pursuant to Electric Rule 20A 218
ADOPT a resolution: (1) Finding that the public necessity, health, safety and/or welfare requires the removal of poles, overhead wires and associated overhead structures and underground installation services along Pierce Street and San Mateo Street; and (2) Establishing Underground Utility District No. 2022-1 on Pierce Street and San Mateo Street; and (3) Approving the use of the Rule 20- A funding by Pacific Gas & Electric (PG&E) to pay for the cost associated with the underground of the electric distribution within the District – Public Works Department (Joe Leach 510-620-5478).

R. REPORTS OF OFFICERS: REFERRALS TO STAFF, AND GENERAL REPORTS (INCLUDING AB 1234 REPORTS)
S. ADJOURNMENT
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________________________
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June 2, 2022

City Clerk's Office

DATE: July 5, 2022
TO: Mayor Butt and Members of the City Council
FROM:

Pamela Christian, City Clerk

Subject:

Voting Delegate and Alternate – League of California
Cities 2022 Annual Conference
FINANCIAL IMPACT: The financial impact will be the travel, registration, and hotel expenses for the voting delegate and the alternate or alternates to attend the Annual Conference – to be
paid from the mayor’s and councilmember’s travel
budgets.

PREVIOUS COUNCIL
ACTION:

2021

STATEMENT OF THE
ISSUE:

The League of California Cities makes an annual request to member cities to designate a voting delegate and
alternate(s) to attend the Annual Business Meeting of the League of California Cities’ Annual Conference.

RECOMMENDED ACTION:

DESIGNATE Mayor Tom Butt as voting delegate and
Eduardo Martinez as an alternate to represent the City of Richmond at the Annual Business Meeting of the League
of California Cities’ 2022 Annual Conference, to be held in Long Beach at the Long Beach Convention Center,
Wednesday, September 7 through Friday, September 9,
2022 – City Clerk’s Office (Pamela Christian 510-620-
6513).

AGENDA
REPORT

June 2, 2022
DISCUSSION:

An Annual Business Meeting is held each year at the League of California Cities’ Annual Conference. During the Business Meeting, the members consider and vote on resolutions to establish policies for the League. It is important that each member city participate in the business meeting to ensure they have the opportunity to be a part of the decision-making process for League policies.

Attendance and participation at the Business Meeting is restricted to cities that have designated a voting delegate and an alternate. Both the voting delegate and the alternate must be registered for the Annual Conference.

The Annual Conference will be held September 7 through 9 in Long Beach at the Long Beach Convention Center, and the deadline to submit the names of the delegate and alternate is Friday, September 2, 2022.

DOCUMENTS ATTACHED:

Attachment 1 – Letter from League of California Cities dated June 1, 2022

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: June 1, 2022
T
O: City Managers and City Clerks
RE
: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference & Expo – September 7-9, 2022 Cal
Cities 2022 Annual Conference & Expo is scheduled for September 7-9, 2022 in Long Beach. An important part of the Annual Conference is the Annual Business Meeting (during General Assembly) on Friday, September 9. At this meeting, Cal Cities membership considers and acts on resolutions that establish Cal Cities policy.

I
n order to vote at the Annual Business Meeting, your city council must designate a voting delegate. Your city may also appoint up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity.

P
lease complete the attached Voting Delegate form and return it to Cal Cities office no later than Friday, September 2. This will allow us time to establish voting delegate/alternate records prior to the conference.

Please view Cal Cities’ event and meeting policy in advance of the conference. • Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council.

When completing the attached Voting Delegate form, please attach either a copy of the council resolution that reflects the council action taken, or have your city clerk or mayor sign the form affirming that the names provided are those selected by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone. • C
onference Registration Required. The voting delegate and alternates must be r
egistered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration will open by June 1 on the Cal Cities
website. In order to cast a vote, at least one voter
must be present at the Business Meeting and in possession of the voting delegate c
ard. Voting delegates and alternates need to pick up their conference b
adges before signing in and picking up the voting delegate card at the Voting Delegate Desk. This will enable them to receive the special sticker on their name b
adges that will admit them into the voting area during the Business Meeting.

Council Action Advised by August 31, 2022

• Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and al
ternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. • S
eating Protocol during General Assembly. At the Business Meeting, individuals w
ith the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying them as a v
oting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges.

T
he Voting Delegate Desk, located in the conference registration area of the Long Beach Convention Center, will be open at the following times: Wednesday, September 7, 8:00 a.m. – 6:00 p.m.; Thursday, September 8, 7:00 a.m. – 4:00 p.m.; and Friday, September 9, 7:30 a.m.–12:30 p.m. The Voting Delegate Desk will also be open at the Business Meeting on Friday, but will be closed during roll calls and voting.

T
he voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

O
nce again, thank you for completing the voting delegate and alternate form and returning it to Cal Cities office by Friday, September 2. If you have questions, please call Darla Yacub at (916) 658-8254.

A
ttachments:
• Annual Conference Voting Procedures

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org Annual Conference Voting Procedures

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Design
ating a City Voting Representative. Prior to the Annual Conference, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the Cal Cities Credentials Committee.

3. Regist
ering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk in the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting.

4. Signin
g Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the Credentials Committee at the Voting Delegate Desk, may sign petitions to initiate a resolution.

5. Voting
. To cast the city's vote, a city official must have in their possession the city's voting card and be registered with the Credentials Committee. The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official who is neither a voting delegate or alternate.

6. Voting
Area at Business Meeting. At the Business Meeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate.

7. Resolv
ing Disputes. In case of dispute, the Credentials Committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the Business Meeting.

July 5, 2022

City Council

DATE: July 5, 2022
TO: Mayor Butt and Members of the City Council
FROM:

Councilmembers Gayle McLaughlin, Claudia Jimenez
and Vice Mayor Eduardo Martinez

Subject:

Street Safety improvements
FINANCIAL IMPACT: The financial impact is to be determined. Currently, there is $750,000 in the FY 2022-2023 budget for Street Safety Initiatives. There is also funding in the Capital
Improvement Budget

PREVIOUS COUNCIL
ACTION:

On June 7, 2022, the City Council heard a presentation
on the Local Road Safety Plan. On June 21, 2022, the
City Council approved the FY 2022-2023 Operating
Budget and Capital Improvement Budget – both include
street safety funding. Then in fall of 2021, the City
Council authorized City staff to implement engineering
solutions for sideshows.

STATEMENT OF THE
ISSUE:

Members of the community have organized themselves
to express major concerns about street safety, especially at certain dangerous crossing areas, such as pedestrians trying to cross Carlson Boulevard when walking their
young children to Nomura Preschool. Parents and their
toddlers have experienced many “close calls” from
speeding cars nearly hitting them. In addition, residents throughout the city have expressed concerns about
sideshows. Most recently, residents have organized and sent emails to the City Council about sideshows along
Key Boulevard and Barrett Avenue. Last year other
areas, such as El Sobrante Valley, Hilltop, and Marina
Bay have expressed concerns of sideshows.

AGENDA
REPORT

July 5, 2022
RECOMMENDED ACTION: DIRECT staff to address interim solutions to street safety concerns (prior to our Local Road Safety Plan being
finalized and funded) such as dangerous pedestrian
crossings along Carlson Boulevard and sideshows at Key
Boulevard & Barrett Avenue, May Road & Santa Rita
Road as well as at other locations – Councilmembers
Gayle McLaughlin (510) 620-6581 and Claudia Jimenez
(510) 620-6565, and Vice Mayor Eduardo Martinez (510)
620-6593.

DISCUSSION:

At the June 7, 2022, Richmond City Council meeting, we heard a presentation on the Local Road Safety Plan. The consultants and City staff have been working hard on this plan to address road safety throughout the city. Once this plan is completed, it will bring about many street safety improvements to assure safety for drivers, pedestrians, and bicyclists. However, it will take more time to finalize the plan and also to fundraise for its implementation.

In the meantime, residents have expressed major concerns about some seriously dangerous streets. Residents living in the Richmond Annex and Panhandle Annex have organized repeatedly about the dangerous situation that pedestrians have experienced in crossing Carlson Blvd., especially in the vicinity of Nomura Preschool.

They have shared many stories of how they and their toddlers have had “close calls” from the speeding traffic. Councilmember McLaughlin has repeatedly brought their concerns to City staff, had ongoing conversations with the residents and staff, and held a zoom meeting the included City staff and the residents.

Some of these residents have shared ideas with City staff on some interim solutions, while the Local Road Safety Plan is being worked on. See Attachment 1. While communication has occurred with residents, no actual interim solutions have occurred at this point. That needs to be rectified to assure the safety of our families.

In addition, we have heard from residents throughout the City with concerns about sideshows. Most recently, residents in the Key Blvd. and Barrett Ave. area have organized seeking immediate solutions. Councilmember Jimenez has brought this issue to the attention of City staff. In additional there are other areas of the City, where residents have organized around the issue of sideshows, such as in the El Sobrante, Hilltop and Marina Bay area.

RPD has proposed engineering solutions as one way to address the sideshow problem.

Such solutions include temporary or permanent roundabouts at hotspots for such activity, or Botts Dots and raised circular markers that work to deter reckless driving.

July 5, 2022
While this agenda report mentions a number of areas where serious street safety issues have been brought to the Council’s attention, these are other areas of concern as well that staff should explore addressing as soon as possible.

To address all these concerns, the Council has taken various actions:

1. On June 21st, 2022, City Council allocated $750k toward street safety initiatives.

2. The Capital Improvement Budget, also approved on June 21st, has some additional funding allocation for street safety.

3. The City Council, in the fall of 2021, voted to direct staff to implement engineering solutions to sideshows.

It is imperative that City staff move as swiftly as possible to mitigate some of the most serious conditions needing immediate attention. It is understood that the City needs to finalize the Local Road Safety Plan and fundraise for its implementation for the long- term. However, in the interim period, while the plan is still not ready for implementation (and may not be ready for some time yet), the City of Richmond must implement interim solutions to protect our residents.

DOCUMENTS ATTACHED:

Attachment 1 – Traffic Calming Suggestions for Carlson Ave

Richmond Annex
Traffic Calming
Plan

Key/Notes:

1. Lighted four-way
intersection at
Burlingame and
Carlson with
crosswalks and
pedestrian call
buttons

2. Lighted four-way
intersection at
Columbia and
Carlson with
crosswalks and
pedestrian call
buttons

3. Three-way stop
T-Junction at
Sacramento and
San Luis where
uphill approach
from both north
and south limits
visibility of
pedestrians using
walking bridge
over I-80.

4. Signed four-way
stop at Columbia
and San Mateo

5. Signed four-way
stop at
Huntington and
San Mateo

6. Speed humps on
San Luis at Sutter
to limit speeding
on San Luis

7. Lighted, flashing
crosswalk across
Carlson at Sutter
(site of existing
crosswalk)

8. Lighted, flashing
crosswalk across
Carlson at Shasta
(site of existing
crosswalk)

July 5, 2022

Finance Department

DATE: July 5, 2022
TO: Mayor Butt and Members of the City Council
FROM:

Delmy Cuellar, Director of Finance
Antonio Banuelos, Accounting Manager
Gabino Arredondo, Project Manager

Subject:

Ordinance Allowing for the Credit of Rent Board Fees
Paid By Landlords With Four or Fewer Rental Units
Against the Gross Receipts Tax Obligation and Amnesty
Program for Residential Rental Properties
FINANCIAL IMPACT: The financial impact of adopting the proposed Ordinance allowing for the credit of Rent Board fees paid by
landlords owning four or less residential units is
approximately $1.6 million less business tax collected per year. The FY 2022-2023 budget already includes this
reduction in General Fund business tax revenue. The
financial impact of adopting the proposed Resolution for the Amnesty Program for residential rental properties is approximately $50,000 which is projected to be recouped with a higher percentage of businesses paying the tax
during the 45 day-period of the program.

PREVIOUS COUNCIL
ACTION:

November 16, 2021
December 21, 2021

STATEMENT OF THE
ISSUE:

This proposed Ordinance allows for the crediting of Rent Board fees paid by landlords with four or fewer residential units against their gross receipts tax obligation. The proposed Resolution for the Business Tax Amnesty
Program would give residential rental property
businesses that have failed to pay their Business Tax by June 30, 2022, an additional 45 days to bring their
accounts current, and would also provide businesses that AGENDA
REPORT

July 5, 2022
have never registered with the City the opportunity to
comply with the Richmond Municipal Code (RMC),
Section VII, Chapters 7.04 and 7.88 without the
assessment of late fees and penalties.

RECOMMENDED ACTION:

INTRODUCE an ordinance allowing landlords with four or
fewer residential units to credit their paid Rent Board fees against their gross receipts tax obligation; and
ADOPT a resolution authorizing the Finance Department
to offer a Business Tax Amnesty Program for a period
commencing on July 1, 2022, and ending on August 15,
2022, for residential rental property businesses with
unpaid business licenses – Finance Department (Delmy
Cuellar 510-620-6740/ Antonio Banuelos 510-620-6741).

DISCUSSION:

City Council placed a measure on the November 3, 2020, ballot that was approved by the voters, which changed the Business Tax calculation methodology to be based on gross receipts instead of the prior method based upon the number of employees employed by a business.

Rent Board Fee Credit

At the November 23, 2021, City Council directed City staff to prepare Measure U regulations to allow landlords of four or fewer residential units to credit their paid Rent Board fees against their gross receipts tax obligation for the same period.

On December 21, 2021, City Council approved a Resolution allowing landlords with four or fewer residential units to credit their paid Rent Board fees against their gross receipts business tax obligation. The approved resolution only gave direction for one year. The proposed Ordinance will codify City Council direction that is currently in place and the item will not need to return to City Council for further extension.

Measure U was projected to result in new revenue growth of over $6 million per year ($9.5 million total) in Business Tax revenues assuming full implementation of Measure U. The City’s estimate included revenues anticipated from both residential properties as well as commercial businesses operating in Richmond. Based on current Rent Board rates, approximately $1.6 million is paid by owners of small residential properties. This amount will be credited to their Business Tax and thus will reduce the Business Tax collected. The proposed FY 2022-2023 budget includes the $1.6 million reduction from residential rental properties.

July 5, 2022
The proposed Ordinance implements City Council’s direction, which would require a landlord to demonstrate that the Rent Board fees were paid in a timely manner to receive the gross receipts tax credit.

Amnesty Program

On November 16, 2021, City Council approved the Business Tax Amnesty Program that gave businesses that had failed to pay their Business Tax an opportunity to bring their accounts current by waiving late fees and penalties through June 30, 2022. If the proposed resolution is approved, City Council will be granting residential rental property owners a 45-day extension on late fees and penalties. The proposed extension of the Amnesty Program would expire on August 15, 2022, and will allow residential rental property owners additional time to both reach out to City staff to help determine the applicable exemptions, the Rent Board credits, and help calculate the amounts due.

The City estimates that there is approximately $500,000 to $1,000,000 in outstanding Business Taxes from Residential Rental properties, not including late fees and penalties. The current late fees and penalties are estimated at approximately $50,000 for the first month. The priority is to collect the tax and staff believes more tax can be collected if the late fees are waived. Additionally, this action allows staff to update the Business Tax Customer Database for more businesses and staff anticipates this will lead to more business tax revenue in the coming years.

In the previous months, City staff reached out to commercial businesses and not residential rental property owners regarding Measure U implementation. Many of these residential rental property owners may not owe significant amounts because of the Rent Board fee credits and exemptions embedded into the Measure U Ordinance. In many cases, property owners will need to speak with City staff to have a clear understanding of the ordinance and what amount, if any, is due. City staff propose giving these businesses an opportunity to pay the back taxes while waiving the corresponding late fees and penalties. This action is expected to lead to a higher tax compliance rate for Richmond businesses, in addition to enhancing the Business Tax customer database.

These steps will potentially yield more tax revenue in the coming years which will likely cover any revenue loss caused by waiving the late fees. The proposed expiration date of the Amnesty Program is August 15, 2022.

During the period of the Amnesty Program, business license taxes can be paid all at once or, if it is agreed upon by the City, an installment agreement can be created allowing the business owner to pay the delinquent tax in three installments. If the business pays the business license taxes due before August 15, 2022, no penalties will be assessed. However, if payment is not made by August 15, 2022, the following late fees will be assessed based on the number of days delinquent:

1- 60 days late 10% late fee (10% of total business tax due) Over 60 days 25% late fee (25 % of total business tax due)

July 5, 2022
Next Steps

During the next few weeks, City staff will continue to provide information and support to the business community. The Finance Department will provide enhanced business tax advice services to the Richmond business community, which includes in person, phone calls, through our online payment portal, and through virtual online appointments. The community can leave questions for Finance staff on the business tax hotline at (510) 620-5555 or email [email protected] and we will return these questions as quickly as possible.

DOCUMENTS ATTACHED:

Attachment 1 – Ordinance
Attachment 2 – Resolution

ORDINANCE NO. N.S.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RICHMOND AMENDING CHAPTER 7.04 TO THE CITY OF RICHMOND MUNICIPAL CODE ENTITLED “BUSINESS LICENSES”

The City Council of the City of Richmond do ordain as follows:

SECTION 1. Section 7.04.210 of the City of Richmond Municipal Code is hereby amended to add Section 7.04.210 (E)(3) to read as follows:

3. Any person owning four or fewer residential rental units under this Section may receive a credit from their gross receipts tax obligation under this Section in an amount equal to the Rent Board fees paid to the City during the same period, upon demonstration in writing and approved by the City Manager or their designee that such fees were paid in a timely manner.

SECTION 2. If any section, subsection, paragraph, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid, the remaining portions of this Ordinance shall remain in full force and effect. The City Council hereby declares that it would have passed each section, subsection, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, paragraph, sentence, clause or phrase.

SECTION 3. This Ordinance becomes effective thirty (30) days after its final passage and adoption.

*****************************
(This section to be completed by Clerk’s Office)

First introduced at a regular meeting of the City Council of the City of Richmond held on _____________ and finally passed and adopted at a regular meeting held on ___________ by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

________________________________________
Clerk of the City of Richmond

(SEAL)

Approved:

_______________________________
Mayor

Approved as to form:

____________________________
City Attorney

RESOLUTION NO. __

A RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE

BUSINESS LICENSE DIVISION OF THE FINANCE

DEPARTMENT TO EXTEND THE TEMPORARY BUSINESS

LICENSE TAX AMNESTY PROGRAM FOR OWNERS OF

RESIDENTIAL RENTAL PROP ERTIES FOR A N ADDITION AL
45 DAYS STARTING JU LY 1, 2022 AND ENDING AUGUST 15,
2022

WHEREAS, the City Council of the City of Richmond (the “City”), has previously approved and directed the Business License Division of the Finance Department to implement an Amnesty Program for businesses that have failed to pay their business license tax; and
WHEREAS, the Amnesty Program period will be extended to August 15, 202 2 for residential rental property businesses that have failed to pay their business license tax to give them the opportunity to bring their accounts up t o date and to give them additional time to identify if they qualify for exemptions applicable to the tax or credits from payments made to the Rent Program. Suc h extension also gives residential rental property businesses that have never registered their business the opportunity to register; and WHEREAS, the proposed Amnesty Program extension would continue to permit the Business L icense Division to w aive these penalties assessed on residential rental property businesses with delinquent taxes owed to the City.

NOW, THEREFORE, BE IT RESOLVED by the C ouncil of the City of Richmond that the Council hereby authorizes the extension of the Business License Tax Amnesty program for residential rental businesses for a period of 45 days commencing on July 1, 2022 and ending on August 15, 2022.

-------------------------
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond, California at a regular meeting thereof held July 5, 2022 by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

Clerk of the City of Richmond

(SEAL)

Approved:

Mayor

Approved as to form:

City Attorney

July 5, 2022

Human Resources

DATE: July 5, 2022
TO: Mayor Butt and Members of the City Council
FROM:

Sharrone Taylor, Acting Director of Human Resources
Subject:

Adopt Resolution Amending the Salary Schedule to Add
Newly Established Classifications and Amend Position
Control
FINANCIAL IMPACT: The annual fiscal impact for the Electrician I/II salary and benefits is approximately $50,100, additional budget
appropriation is requested. There is no fiscal impact for the amended salary range and bargaining unit
assignment for the Deputy Director of Finance (Budget
and Financial Services), Deputy Director of Public Works – Operations and Maintenance, nor for the amended
salary range for Police Officer Trainee - Public Works
Salary Line Item 01232531-40003

PREVIOUS COUNCIL
ACTION:

None

STATEMENT OF THE
ISSUE:

City Council's approval is required to amend the salary schedule and the City’s authorized staffing (i.e., position control) to add newly established classifications, and
appropriate funds for wages, salaries, and associated
compensation.

RECOMMENDED ACTION:

ADOPT resolutions amending the salary schedule to add
Electrician I/II (flexibly-staffed) and Senior Electrician classifications and salary ranges, and amending the
salary schedule to update the bargaining unit assignment and salary ranges for the Deputy Director of Public
Works-Operations and Maintenance and Deputy Director
of Finance (Budget and Financial Services) and the
salary range for Police Officer Trainee; AMEND Public
AGENDA
REPORT

July 5, 2022
Works authorized staffing (i.e., position control) to retitle the current Electricians to Electrician I/II and to add one (1) Senior Electrician position to be reallocated from one Electrician I/II position after a promotional examination is conducted; and APPROPRIATE funds for associated
wages, salaries, and compensation for the Electrician I/II and Senior Electrician positions – Human Resources
(Sharrone Taylor 620-6803).

DISCUSSION:

City Council approval is required to amend the publicly available salary schedule, amend position control, and appropriate funds for associated wages, salaries, and compensation. Human Resources is requesting:

 Amendment of the salary schedule to add flexibly staffed Electrician I/II and Senior Electrician classifications.
 Amend the salary schedule to change (1) the salary range for Police Officer Trainee and (2) the salary ranges and bargaining unit assignment for Deputy Director of Public Works – Operations and Maintenance and Deputy Director of Finance (Budget and Financial Services), changing them from IFPTE Local 21 Mid-Management bargaining group to IFPTE Local 21 Executive Management bargaining group.
 Amend position control to retitle the current Electricians to Electrician II and add one (1) Senior Electrician position, which a promotional examination will fill, and an Electrician II position will be reallocated to, and appropriate funding associated wages, salaries, and compensation.

SEIU Local 1021 and IFPTE Local 21 Unions and the City Manager support these actions.

Electrician I/II and Senior Electrician

SEIU Local 1021 Union leaders petitioned the Public Works Director to revise the Electrician job specification to include underground service alerts (USA) duties and increase compensation to address the increased set of responsibilities. As a result, Human Resources staff retitled and revised the Electrician classification and created the flexibly staffed Electrician I/II and Senior Electrician job specifications, including duties associated with underground service alerts. The creation of these new classifications provides career progression at the Senior level and allows for the hire of less experienced candidates at the Electrician I level who can, with training, grow into journey-level Electricians at the II level.

July 5, 2022
The salary ranges were created with five steps, including a 10 percent increase to the Electrician II classification. Accordingly, the Electrician II salary range was used as the baseline to set the salary ranges for Electrician I and Senior Electrician. The Electrician I salary range is 10 percent below the Electrician II salary range, and the Senior Electrician salary range is 5 percent above the Electrician II salary range to prevent salary compaction between the salary ranges.

The current five (5) Electricians will be immediately retitled to the Electrician II and granted a salary step aligned with their current salary step. Shortly thereafter, a promotional recruitment will be conducted to fill one (1) Senior Electrician position with one of the current Electrician II positions.

SEIU Local 1021 union approved these changes through the meet-and-confer process on Friday, June 10, 2022, and a side letter agreement was drafted to memorialize the agreement. The Personnel Board approved these classifications on June 23, 2022.

Police Officer Trainee, Deputy Director of Public Works – Operations and Maintenance and Deputy Director of Finance (Budget and Financial Services) Salary Range Amendment

The Police Department is faced with a critical staffing shortage which is exacerbated by recruitment challenges. It has been determined that the Police Officer Trainee salary range is well below market. Therefore, it is proposed that the salary be brought up to market. By increasing the salary, the City of Richmond will be able to attract candidates that are interested in a career in law enforcement and bolster the recruitment efforts.

The Police Trainee classification is exempt and unrepresented.

The Deputy Director of Public Works – Operations and Maintenance and Deputy Director of Finance (Budget and Financial Services) salary ranges must be commensurate with other Deputy Director classifications, that have a similar scope of roles and responsibilities, and be placed in the 3.1 executive salary range to ensure parity.

IFPTE Local 21 union approves and supports this amendment to the bargaining unit assignment and salary range. The Personnel Board approved this change on June 23, 2022.

Deputy Director of Public Works – Operations and Maintenance and Deputy Director of Finance (Budget and Financial Services) Bargaining Group Assignment Amendment

On March 22, 2022, the City Council approved the addition of the Deputy Director of Public Works – Operations and Maintenance and Deputy Director of Finance (Budget and Financial Services) positions to the City’s authorized staffing (position control) as part of the mid-year budget. These classifications are currently in the IFPTE Local 21 Mid-Managers bargaining group and must be aligned with other Deputy Director

July 5, 2022
classifications and placed in the IFPTE Local 21 – Executive Management bargaining group. In addition, the salary ranges must be commensurate with other Deputy Directors and be placed in the 3.1 executive salary range to ensure parity with comparable Deputy Director classifications.

IFPTE Local 21 union approves and supports this amendment to the bargaining unit assignment. The Personnel Board approved this change on June 23, 2022.

FISCAL IMPACT:

The annual salary and fiscal impact figures reflected below are estimates based on the current salary range and benefits costs projections. The annual salary and benefits impacts reflected below are a combination of base salary and projected benefits costs.

Electrician I/II:

The Electrician positions are permanently filled and will be reallocated to the Electrician II classification and will, therefore, have a minimal fiscal impact in the current and subsequent fiscal years. In addition, the salary and benefits will be budgeted in subsequent fiscal years. The current Electricians will be retitled to Electrician II and granted a 10 percent salary range increase per the formal agreement with SEIU Local 1021 to compensate them for additional duties associated with underground service alerts (USA).

Below is a table that delineates the salary and benefits cost difference for five (5) Electricians positions:

Electrician (5)
Current Salary Annual Impact for five (5) Electricians $33,399 Proposed Salary Monthly Impact for five (5) Electricians II $36,739 Annual Fiscal Impact Salary and Benefits @25% $50,100

In addition, a promotional recruitment will be conducted for the Senior Electrician, which will provide a promotional opportunity for a current Electrician. Salary will be determined by the candidate’s base salary in accordance with SEIU Local 1021 – General Employees MOU Article II, Direct Pay for Services, section J. Promotion Effect on Rate of Compensation.

There are no proposed increases to the department’s FTEs; one Electrician II position will be reallocated to the Senior Electrician position, maintaining the department’s current staffing level.

Salary schedule amendment changing the salary range for Police Officer Trainee, Deputy Director of Finance (Budget and Financial Services) and Deputy Director of Public Works – Operations and Maintenance:

July 5, 2022
There will be no negative fiscal impact in the current fiscal year for the Police Trainee.

Salary and benefits will be budgeted in subsequent fiscal years as positions are added or reallocated.

There will be no negative fiscal impact in the current fiscal year for the Deputy Director of Public Works – Operations and Maintenance and Deputy Director of Finance (Budget and Financial Services) funding is currently available in the approved Finance and Public Works budgets due to the adoption of these positions in the mid-year budget.

Accordingly, the salary and benefits will be budgeted in subsequent fiscal years.

Bargaining group unit amendment for Deputy Director of Finance (Budget and Financial Services) and Deputy Director of Public Works – Operations and Maintenance:

The bargaining group unit assignment will not have a fiscal impact.

SUMMARY:

To summarize, the classification changes and amendment to the bargaining groups, which would become effective July 5, 2022, are as follows:

New Classification
Current New
Electrician Electrician I/II
n/a Senior Electrician

Bargaining Group Unit Amendment
Classification Title Current New
Deputy Director of Finance
(Budget and Financial Services)
IFPTE Local 21 – Mid
Management
IFPTE Local 21-Executive
Management
Deputy Director of Public Works –
Operations and Maintenance
IFPTE Local 21 – Mid
Management
IFPTE Local 21- Executive
Management

SALARY SCHEDULE AMENDMENTS
New Classifications New Salary Range
Job Title Range Step 1 or
Min.

Step 2 Step 3 Step 4 Step 5 or
Max
Bargaining
Group
Electrician I
(flexibly staffed)
143 $5,434 5,720 6,021 6,338 $6,672 SEIU Local 1021 –
General
Employees
Electrician II
(flexibly staffed)
145 $6,094 6,415 6,753 7,087 $7,413
Senior Electrician 147 $6,340 6,673 7,025 7,394 $7,784 SEIU Local 1021 –
General
Employees
Police Officer Trainee 299 $6,390 Exempt -
Unrepresented

July 5, 2022

NEXT STEPS:

City Staff recommends amending the City’s staffing (i.e., position control) and amending the salary schedule to include the classifications of Electrician I/II (5), Senior Electrician (1) classifications, and appropriate associated wages, salaries, and additional compensation.

Amend the salary schedule to change the bargaining group unit and salary range for Deputy Director of Finance (Budget and Financial Services) and Deputy Director of Public Works – Operations and Maintenance and to change the salary range for Police Officer Trainee.

Accordingly, the attached resolution will adjust the salary ranges for these classifications in the following manner:

Job Classification Range Step 1
or Min.

Step 2 Step 3 Step 4 Step 5
or Max.

FLSA Unit
TBD Electrician I 143 $5,434 $5,720 $6,021 $6,338 $6,672 Non- Exempt
SEIU Local
1021 -
General
Employees
TBD Electrician II 145 $6,094 $6,415 $6,753 $7,087 $7,413 Non- Exempt
SEIU Local
1021 -
General
Employees
TBD Senior Electrician 147 $7,516 $7,871 $8,261 $8,659 $9,090 Non- Exempt
SEIU Local
1021 -
General
Employees
1343 Police Officer Trainee 299 $6,390 Exempt Unrepresented 2190 Deputy Director of Finance
(Budget and Financial
Services)

3.1 $9,024 $14,364 Exempt IFPTE Local
21 - Executive
2197 Deputy Director of Public
Works – Operations and
Maintenance

3.1 $9,024 $14,364 Exempt IFPTE Local
21 - Executive

Upon approval of the Electrician I/II, Senior Electrician, Police Officer Trainee, Deputy Director of Finance (Budget and Financial Services), and Deputy Director of Public Current
Classifications
Salary Range and Bargaining Group Unit Amendment
Job Title Range Step 1 or
Min.

Step 2 Step 3 Step 4 Step 5 or
Max
Bargaining
Group
Deputy Director of
Finance (Budget and
Financial Services)

3.1 $9024.00 $12,364.00 IFPTE Local
21 - Executive
Deputy Director of
Public Works –
Operations and
Maintenance

3.1 $9024.00 $12,364.00 IFPTE Local
21 - Executive

July 5, 2022
Works – Operations and Maintenance, the salary schedule, and authorized staffing (i.e., position control) will be amended accordingly.

The current Electricians will be retitled to Electrician II and be granted salary steps in relation to their current salary. In addition, a promotional recruitment for Senior Electrician will be conducted to provide the opportunity for advancement for an incumbent.

DOCUMENTS ATTACHED:

Attachment 1 – Resolution amending Salary Schedule
Attachment 2 -- Resolution amending Position Control

RESOLUTION NO. _____

RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA

AMENDING THE SALARY SCHEDULE

WHEREAS the Department of Human Resources maintains the classification and salary schedule on behalf of the City; and

WHEREAS the City wishes to amend the salary schedule and such amendments are supported by the City Manager.

NOW THEREFORE, BE IT RESOLVED, that effective July 5, 2022, the Salary Schedule is hereby revised as follows and the Director of Human Resources shall publicly post the revised Salary Schedule.

Job Classification Range Step 1
or Min.

Step 2 Step 3 Step 4 Step 5
or
Max.

FLSA Unit
TBD Electrician I 143 $5,434 $5,720 $6,021 $6,338 $6,672 Non- Exempt
SEIU Local
1021 -
General
Employees
TBD Electrician II 145 $6,094 $6,415 $6,753 $7,087 $7,413 Non- Exempt
SEIU Local
1021 -
General
Employees
TBD Senior Electrician 147 $7,516 $7,871 $8,261 $8,659 $9,090 Non- Exempt
SEIU Local
1021 -
General
Employees
1343 Police Officer Trainee 299 $6,390 Exempt Non-
Represented
2190 Deputy Director of Finance
(Budget and Financial
Services)

3.1 $9,024 $14,364 Exempt IFPTE
Local 21 -
Executive
2197 Deputy Director of Public
Works – Operations and
Maintenance

3.1 $9,024 $14,364 Exempt IFPTE
Local 21 -
Executive

-----------

I hereby certify that the foregoing Resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

_____________________________

CLERK OF THE CITY OF RICHMOND
(SEAL)

Approved:

____________________
Mayor

Approved as to form:

____________________
City Attorney

RESOLUTION NO. _____

RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA AMENDING THE CITY’S POSITION CONTROL LIST

WHEREAS, pursuant to Article IV Section 1(b)(1) of the City Charter, the City Manager has the responsibility to manage all affairs of the City's operations, and appoint employees when necessary for the good service of the City; and

WHEREAS, pursuant to City Resolution No. 148-20, the City Manager has the authority to make appropriate administrative changes to the City’s position control list; and

WHEREAS, the City Manager has determined that certain amendments to the position control list are necessary to meet the operational needs of the City.

NOW THEREFORE, BE IT RESOLVED, that the Richmond City Council authorizes the City Manager to modify the position control in order to meet the operational needs of the City; and

BE IT FURTHER RESOLVED, that, effective July 5, 2022, the City’s position control is hereby revised as follows:

Department Prior
Classification
New Classification Prior Bargaining
Unit
New Classification
Bargaining Unit
Public
Works
Electrician I n/a SEIU Local 1021 –
General Employees
Public
Works
Electrician Electrician II n/a SEIU Local 1021 –
General Employees
Public
Works
Senior Electrician n/a SEIU Local 1021 –
General Employees

-----------
I hereby certify that the foregoing Resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

_____________________________

CLERK OF THE CITY OF RICHMOND
(SEAL)

Approved:

____________________
Mayor

Approved as to form:

____________________
City Attorney

July 5, 2022

Human Resources

DATE: July 5, 2022
TO: Mayor Butt and Members of the City Council
FROM:

Sharrone Taylor, Acting Director of Human Resources

Subject:

Second Contract Amendment with Regional Government
Services (RGS) to Provide Temporary Services and
Support in Several Critical Areas to the City on an As- Needed Basis
FINANCIAL IMPACT: There will no new financial impact or budget action necessary resulting from the recommended amendment.

The funds expended for this contract will be from
previously approved budget sources within Human
Resources/Risk, Finance, and Employment and Training.

A significant portion of these expenditures will be
reimbursed by grants or by developers; currently staff
estimates that this reimbursement will exceed $100,000 – (Risk Management Worker’s Compensation Professional
Services 50182116-400201, Human Resources
Professional Services 01181016-400201, Human
Resources Recruitment Services 01181016-400, Finance
Professional Services 400201, Employment and Training
Professional Services 400201).

PREVIOUS COUNCIL
ACTION:

May 18, 2021
March 1, 2022

STATEMENT OF THE
ISSUE:

The Human Resources Department seeks a second
contract amendment to the Regional Government
Services contract originally executed on March 18, 2021.

The City has utilized the services of Regional
Government Services (RGS) because of the lack of
internal capacity or expertise for several critical functions.

RGS is a public agency, whose employees possess deep
knowledge and experience in the public sector, and the
AGENDA
REPORT

July 5, 2022
City continues to need RGS support in several critical
areas.

RECOMMENDED ACTION:

APPROVE a second contract amendment with Regional
Government Services to increase the contract amount by
$300,000, for a new total payment limit not to exceed
$700,000, for the provision of expertise in a variety of functional areas such as Human Resources, Financial
Management, and Accounting – Human Resources
(Sharrone Taylor 510-620-6803).

DISCUSSION:

Regional Government Services (RGS) is a unique California public agency serving the consulting, administrative, and project management needs of local governments. Their greatest asset is their expert team of Advisors who pride themselves on delivering outstanding services to support the mission of partner agencies. RGS routinely provides Advisors and consulting to public agencies to address peak workloads, capacity constraints resulting from vacancies, and the lack of internal expertise.

In order to provide this expertise, RGS has developed a highly flexible and adaptive team environment and work culture. The organization uses technology to support a remote workforce of approximately one hundred Advisors. The Advisors are trained and experienced public sector professionals from a variety of relevant disciplines.

Public agencies such as the City of Richmond can procure the services of highly capable individuals who have deep knowledge of the public sector and can deliver high- quality project services on an as-needed basis.

RGS provides the City with project support in functional areas, including: Emergency Services; Public Agency Finance & Accounting; Budget process and Development; Benefit Management; Grants Management; Human Resources including Mandatory and Discretionary Training, Coaching and Workforce Development; Disability Management; Recruitment; Economic Development; Land Use and other Planning including Regional Planning & Services: Community Outreach, Clerking including Public Records Act Request Management; Organizational Assessments, Meeting Facilitations, Strategic Plans; Transition Management; and Workplace Cultural Change Management.

During the last several months, RGS staff have helped the City with the following projects:
 City Budget Development
 Annual Financial Statements and Audit
 Single Audits Compliance
 GASB 87 Implementation
 Community Facilities District formation
 Disability Claims Management

July 5, 2022
 Staff Recruitment
 Migration from Munis 11 to Munis 19
 Pension Obligation Bond strategy review
 Department of Employment & Training grants accounting and grants reporting to grantors
 Department of Employment & Training budget analysis and development

The City continues to need RGS expertise in the following areas due to staffing vacancies, absence of internal expertise, and/or because outside review and analysis is prudent:
 Department of Employment & Training grants accounting as well as grants reporting to grantors
 Quality Assurance of Class and Compensation data
 Community Facilities District issues (if needed)
 Disability Claims Management
 Staff Recruitment
 Review of financial controls

It should be noted that the services provided by RGS have been in areas with roles represented by IFPTE Local 21. The City has conferred with Local 21 and the parties agreed to the following:
 The City will continue to adhere to the MOU terms related to contracting out bargaining unit work.
 The City will only use RGS Advisors on a temporary basis and commits to meet and confer regarding such uses as needed. The City will also keep Local 21 informed of the ongoing need for RGS expertise in areas where capacity is lacking.

The City entered into an initial legal services agreement with Regional Government Services (RGS) in the amount of $250,000 which was approved by City Council May 18, 2021. On March 1, 2022, City Council approved the first contract amendment which revised the terms of the agreement and added $150,000 to the contract payment limit.

This second amendment is a request to add $300,000 to the contract payment limit for an not-to-exceed contract payment limit of $700,000.

DOCUMENTS ATTACHED:

Attachment 1 – Regional Government Services Contract
Attachment 2 – First Contract Amendment with Regional Government Services Attachment 3 – Second Contract Amendment with Regional Government Services

REGIONAL

GOVERNMENT

SERVICES
SERVING PUBLIC AGENCIES SINCE 2002
RGS is committed to reducing paper waste by converting to electronic processes. Toward these waste reduction goals, RGS uses DocuSign to digitally sign and execute our Agreements. DocuSign provides a secure and legally binding digital signature process which eliminates the need for printing and distribution of documents for signature. Additionally, and especially under the current health and safety restrictions, RGS requests that agencies use electronic payment methods whenever possible to reduce mailing and paper expenses. RGS requests your assistance with meeting these waste reduction goals by joining us in the use of DocuSign and electronic payment methods during our collaboration.

Preamble: The agreement for services described below is also an agreement to engage in a relationship between organizations - Agency partners. In order to establish a mutually respectful relationship as well as a productive one, RGS has adopted the following values and business methods.

Our Values
• Expert Services: RGS serves exclusively public sector agencies with its team of public-sector experts.
• Innovation: RGS encourages and develops innovative and sustainable services to help each Agency meet its challenges through new modes of service provision. • Customer Driven: RGS customizes solutions to achieve the right level and right kind of service at the right time for each Agency's unique organizational needs. • Perseverance: Sometimes the best solutions are not immediately apparent. RGS listens, works with you, and sticks with it until a good fit with your needs is found. • Open Source Sharing: RGS tracks emerging best practices and shares them, learning openly from each other's hard-won experience.
• Commitment: Government agencies are the public's only choice for many services. Public trust is earned and must be used wisely. And RGS will do its part. Each Agency should and will know how RGS sets its rates. RGS' pledge to you is that we will act with honesty, openness, and full transparency.

How RGS Does Business
When you work with RGS you can expect:
• RGS will strive to be explicit up front and put our understandings in writing. Before making assumptions, we hope to talk directly to prevent any misunderstandings. • Ongoing interaction throughout our relationship to ensure that your needs are being met, and that projects progress appropriately and agreed-upon timelines are met. • RGS is committed to honest interaction.
• When RGS employees are on your site, we expect them to treat people respectfully and be treated respectfully. If problems arise, we want to communicate early, accurately, and thoroughly to ensure that we find mutually acceptable solutions. • As a public Agency, partnering is valued. We look out for each Agency's interests consistent with maintaining the public trust.
• To keep expectations realistic, it is important to understand that RGS is a governmental, joint powers authority evolving to meet changing local government needs. RGS has carefully constructed policies and procedures to allow maximum flexibility to meet your needs.

P.O. BOX 1350 I CARMEL VALLEY, CA 93924 I 844.587.7300 I WWW.RGS.CA.GOV

Agreement for Management and Administrative Services
This Agreement for Management Services ("Agreement") is made and entered into as of the 181 day of April 2021, by and between the CITY OF RICHMOND, a municipal Agency ("Agency"), and Regional Government Services Authority (RGS), a joint powers authority, (each individually a "Party" and, collectively, the "Parties").

RECITALS
THIS AGREEMENT is entered into with reference to the following facts and circumstances:

A. That Agency desires to engage RGS to render certain services to it; B. That RGS is a management and administrative services provider and is qualified to provide such services to the Agency; and
C. That Agency has elected to engage the services of RGS upon the terms and conditions as hereinafter set forth.

TERMS AND CONDITIONS
Section 1. Services. The services to be performed by RGS under this Agreement shall include those services set forth in the attached Exhibits, which ate incorporated by this reference herein and made a part hereof as though it were fully set forth herein. All services will be performed following the execution of Task Orders specifying specific services, budget, and time of performance requested by Agency.

Where in conflict, the terms of this Agreement supersede and prevail over any terms set forth in the Exhibits.

1.1 Standard of Performance. RGS shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the types of services that RGS agrees to provide in the geographical area in which RGS operates.

1.2 Service Advisor. To ensure quality and consistency for the services provided, RGS also assigns a service advisor to Agency. The service advisor is available to assigned RGS staff and to Agency management and will check in regularly with both to address program/project directives. Typically service advisor time is not billed to Agency, with some exceptions where significant programmatic direction is provided.

1.3 Reassignment of Personnel. Assignment of personnel to provide the services described in the Exhibits is at the sole discretion of RGS. In the event that Agency or RGS, at any time during the term of this Agreement, desires the reassignment of personnel, Agency and RGS shall meet and discuss in good faith to address the issue of concern, including but not limited to reassigning such person or persons.

1.4 Time. RGS shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance described above and to provide the services described in the Exhibits.

Agreement for Management and AdmnuslTative Service?
Between the CITY OF RICHMOND and Regional Government Services Authority

Aprill, 2021

Term of Agreement and Termination. Services shall commence on or about April1, 2021, and this Agreement is anticipated to remain in force to June 30, 2024, at which time services may continue on a month-to-month basis until one party terminates the Agreement, or if Exhibit A contains a "not to exceed" amount, until that amount of charges has been reached, at which point the Parties shall either amend or terminate this Agreement. This Agreement may be terminated by either Party, with or without cause, upon 30 days' written notice. Agency has the sole discretion to determine if the services performed by RGS are satisfactory to the Agency which determination shall be made in good faith. If Agency determines that the services performed by RGS are not satisfactory, Agency may terminate this Agreement by giving written notice to RGS. Upon receipt of notice of termination by either Party, RGS shall cease performing duties on behalf of Agency on the termination date specified and the compensation payable to RGS shall include only the period for which services have been performed by RGS.

Section 2. Compensation. Payment for services under this Agreement shall not exceed $250,000 and shall be as provided in the Exhibits.

Section 3· Effective Date. This Agreement shall become effective on the date first herein above written.

Section 4· Relationship of Parties.

5.1 It is understood that the relationship of RGS to the Agency is that of an independent contractor and all persons working for or under the direction of RGS are its agents or employees and not agents or employees of Agency. The Agency and RGS shall, at all times, treat all persons working for or under the direction of RGS as agents and employees of RGS, and not as agents or employees of the Agency. Agency shall have the right to control RGS employees only insofar as the results of RGS' services rendered pursuant to this Agreement. In furtherance of this Section 5.1, the Parties agree as follows:

5.1.1 Agency shall not request from RGS or from an RGS employee providing services pursuant to this Agreement an RGS employee's Social Security Number or other similar personally identifying information.

5.1.2 Agency shall not report an RGS employee to a third party as an employee of Agency. For the purposes of this Section 5.1, "third party" means another government agency, private company, or individual.

5.1.3 In the event that a third-party requests information about au RGS employee~ including but not limited to personally identifying information, hours or locations worked, tasks performed, or compensation-Agency shall inform RGS of the request prior to responding. If Agency possesses such information about an RGS employee, the Parties shall confer in good faith about an appropriate and legally compliant response to the request.

Agreement for Management and Adriumstratlve Services
Between the CITY OF RICHMOND and Regional Govemment Services Authority

April I, 2021

64.3 Verification of coverage. Prior to beginning any work under this Agreement, RGS shall furnish Agency with notifications of coverage and with original endorsements effecting coverage required herein. The notifications and endorsements are to be signed by a person authorized by the MIC to bind coverage on its behalf. Agency reserves the right to require complete, certified copies of all MOC at any time.

6.4-4 Subcontractors. RGS shall include all subcontractors a$ insureds under its coverage or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
6-4.5 Variation. During the term of this Agreement, RGS may change the insurance program in which it participates. RGS will provide reasonable notice of any such change to Agency and replacement copies of Certificates of Coverage and endorsements.

6.4.6 Deductibles and Self-Insured Retentions. RGS shall disclose any self-insured retention if Agency so requests prior to performing services under this Agreement or within a reasonable period of time of a request by Agency during the term of this Agreement.

6.4.7 Maintenance of Coverages. The coverages stated herein shall be maintained throughout the term of this Agreement and proof of coverage shall be available for inspection by Agency upon request.

6.4.8 Notice of Cancellation or Reduction in Coverage. In the event that any coverage required by this section is reduced, limited, or materially affected in any other manner, RGS shall provide written notice to Agency at RGS earliest possible opportunity and in no case later than five business days after RGS is notified of the change in coverage.

Sectio.n 6. Legal Requirements.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. RGS and any subcontractors shall comply with all laws applicable to the performance of the work hereunder. 7 ·3 Reporting Requirements. If there is a statutory or other legal requirement for RGS to report information to another government entity, RGS shall be responsible for complying with such requirements.
7·4 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, RGS and any subcontractors shall comply with all applicable rules and regulations to which Agency is bound by the terms of such fiscal assistance program. 7 ·5 Licenses and Permits. RGS represents and warrants to Agency that RGS and its employees, agents, and any subcontractors have all licenses, permits, Agreement for Management and AdmmtstratiVe Services
Between the CITY OF RICHMOND and Regional Government Services Authority

April], 2021

qualifications, and approvals of whatsoever nature that are legally required to provide the services contemplated by this Agreement. RGS represents and warrants to Agency that RGS and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions.

7.6 Nondiscrimination and Equal Opportunity. RGS shall not discriminate on the basis of a person's race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided under this Agreement. RGS shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement.

Section 8. Keeping and Status of Records.

8.1 Records Created as Part of RGS' Performance. All final versions of reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that RGS prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of Agency. RGS hereby agrees to deliver those documents to Agency upon termination of the Agreement, if requested. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for Agency and are not necessarily suitable for any future or other use.

8.2 Confidential Information. RGS shall hold any confidential information received from Agency in the course of performing this Agreement in trust and confidence and will not reveal such confidential information to any person or entity, either during the term of the Agreement or at any time thereafter. Upon expiration of this Agreement, or termination as provided herein, RGS shall return materials which contain any confidential information to Agency. For purposes of this paragraph, confidential information is defined as all information disclosed to RGS which relates to Agency past, present, and future activities, as well as activities under this Agreement, which information is not otherwise of public record under California law. Agency shall notify RGS what information and documents are confidential and thus subject to this section 8.2.

Agreement tor Management and Adm1111stratJve Services
Between the CITY OF RICHMOND and Regional Government Services Authority

Aprill, 2021
I

8.3 RGS Books and Records. RGS shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to Agency under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment under this Agreement.

8.4 Inspection and Audit of Records. Any records or documents that Section 8.3 of this Agreement requires RGS to maintain shall be made available for inspection, audit, and/ or copying at any time during regular business hours, upon oral or written request of Agency. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $w,ooo.oo, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of Agency or as part of any audit of Agency, for a period of three years after final payment under the Agreement.

Section 9· Non-assignment. This Agreement is not assignable either in whole or in part without the written consent of the other party.

Section 10. Amendments. This Agreement may be amended or modified only by written Agreement signed by both Parties.

Section 11. Validity. The invalidity, in whole or in part, of any provisions of this Agreement shall not void or affect the validity of any other provisions of this Agreement.

Section 12.. Disputes. Should any dispute arise out of this Agreement, Agency agrees that it shall only file a legal action against RGS, and shall not file any legal action against any of the public entities that are members of RGS.

Section 13. Venue. Any suit or action initiated by either party shall be brought in Alameda County, California.

Section 14. Mediation. Should any dispute arise out of this Agreement, the Parties shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither Party shall be permitted to file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The costs of the mediator, if any, shall be paid equally by the Parties. If a mediated settlement is reached, neither Party shall be deemed the prevailing party for purposes of the settlement and each Party shall bear its own legal costs.

Section 15. Employment Offers to RGS Staff. Should Agency desire to offer permanent or temporary employment to an RGS employee who is either currently providing RGS services to Agency or has provided RGS services to Agency within the previous six months, said Agency will be charged a fee equal to the full-time cost of the RGS employee for one month, using the most recent RGS bill rate for the RGS employee's services to Agency.

This fee is to recover RGS' expenses in recruiting the former and replacement RGS staff.

Section 16. Entire Agree1nent. This Agreement, including the Exhibits, comprises the entire Agreement.

Agreement for Management and Actmmtstrat!Ve Servtces
Between the CITY OF RICHMOND and Regional Govenunent Services Authority

April 1, 2021

Section 17. Indemnification.

17.1 RGS' indemnity obligations.

RGS shall indemnify, defend, and hold harmless Agency and its legislative body, boards and commissions, officers, and employees ("Indemnitees") from and against all claims, demands, and causes of action by third parties, including but not limited to attorneys' fees, arising out of RGS' performance of this Agreement, to the extent caused by RGS' negligent act, error, or omission. Nothing herein shall be interpreted as obligating RGS to indemnify Agency against its own negligence or willful misconduct.

Training disclaimer
Agency understands and acknowledges that RGS advisors may, as part of the scope of services under this Agreement, provide training on various matters including human resources, accounting, or management practices. The advice and guidance included in such training does not, and is not intended to, constitute legal advice; instead, all information, content, and materials provided are based on industry best practices, but may not be applicable in all situations. Agency staff should not act or refrain from acting on the basis of the information provided as part of a training without first seeldng legal advice from counsel in its relevant jurisdiction and/ or appropriate Agency approval. RGS' obligation to indemnify, defend, and hold harmless indemnities pursuant to this section 17.1 for professional errors and omissions shall not exceed $soo,ooo.

17.2 Agency's indemnity obligations. Agency shall indemnify, defend and hold harmless RGS and its officers, directors, employees and agents from any and all claims and lawsuits where such persons are named in the lawsuit solely because of a duty any of them performs in accordance with the services outlined in Exhibit B.

It is the intent of the parties here to define indemnity obligations that are related to or arise out of Agency's actions as a governmental entity. Thus, Agency shall be required to indemnify and defend only under circumstances where a cause of action is stated against RGS, its employees or agents:
a. which is unrelated to the skill they have used in the performance of the duties delegated to them under this Agreement;
b. when the allegations in such cause of action do not suggest the active fraud or other misconduct of RGS, its employees, or agents; or
c. where an Agency employee, if he had been acting in a like capacity, otherwise would be acting within the scope of that employment.

Whenever Agency owes a duty hereunder to indemnify RGS, its employees or agents, Agency further agrees to pay RGS a reasonable fee for all time spent by any RGS employee, or spent by any person who has performed work pursuant to this Agreement, for the purpose of preparing for or testifying in any suit, action, or legal proceeding in connection with the services the assigned employee has provided under this Agreement.

Agreement tor Management and Admlllistrative Serv1ces
Between the CITY OF RICHMOND and Regional Govenunent Services Authority

April I, 2021

17.3 Obligations and indemnity related to defined benefit retirement plan participation.
a. RGS and Agency acknowledge and agree that, if Agency participates in a defined benefit plan (such as CalPERS, a defined benefit pension Plan, or Social Security) or ("Retirement Program"), it is possible that the Retirement Plan may find that RGS employees providing services pursuant to this Agreement are employees of Agency and should be registered with the Retirement Program as employees of Agency, which possibility is the same as if Agency were contracting with a private consulting firm. Pursuant to Section 5.1 of this Agreement, Agency has an obligation to tre&t all persons working for or under the direction of RGS as agents and employees of RGS, and not as agents or employees of Agency. Agency agrees not to ask RGS employees for personally identifying information.
b. In the event that the Retirement Program initiates an inquiry that includes examination of whether individuals providing services to Agency are Agency's employees, Agency shall inform RGS within five days and share all communications and documents from the Retirement Program that it may legally share. Agency and RGS shall cooperate to determine the manner of responding to the inquiry and what, if any, documents to provide. c. In the event that the RetireiQ.ent Program makes a finding that one or more RGS employees are employees of Agency, Agency shall promptly inform RGS and share all communications and documents from the Retirement Program that it may legally share. RGS and Agency shall cooperate in determining how to respond to the Retirement Program, including but not limited to whether and how to make any corrections described by the Retirement Program.
d. RGS and Agency each reserves the right to file an appeal of the Retirement Program's finding that an RGS employee is an employee of Agency and should be registered with the Retirement Program as an employee of Agency and to challenge such a decision in court. Agency assigns its right to file an appeal of such a finding, if Agency does not itself file an appeal. In the event that either RGS or Agency files an appeal or court challenge, RGS and Agency each agree to cooperate with each other in pursuit of the action. e. Notwithstanding Section 17.1 of this Agreement, RGS and Agency shall each bear their own costs in responding to an inquiry by a Retirement Program, including but not limited to costs of an appeal or court challenge.

In the event that (1) Retirement Program finds that an RGS employee is an employee of Agency and should be registered in the Retirement Program as an employee of the Agency; (2) Retirement Program :finds that a payment is required to register the employee as an employee of Agency; and (3) neither RGS nor Agency challenges those findings or the payment is upheld in a final appeal or court decision, RGS' obligation for any payments to Agency for Retirement Program benefits shall be limited to Agreement for Management and Adnumstrattve Set-vtces
Between the CITY OF RICHMOND and Regional Govet1unent Services Authority Page lO of 14
April I, 2021

so% of the employer's share of those payments that Agency may be required to pay.

Section 18. Notices. All notices required by this Agreement shall be given to Agency and RGS in writing, by first class mail, postage prepaid, or by email transmission addressed as follows:

Agency:

RGS:

City of Richmond
450 Civic Center Plaza, Suite 310
Richmond, CA 94804
Regional Government Services Authority
P. 0 . Box 1350
Carmel Valley, CA 93924
Email: [email protected] .gov
Notice by email transmission shall be deemed given upon verification of receipt if received before s:oop.m. on a regular business day or else on the next business day.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on the date first written by their respective officers duly authorized on their behalf.

DATED: ____ _ Agency
APPROVED AS TO FORM:

By1l~,, G~M<Mlageo­
IC<'A -eo I L\~~ or
DATED: _ ___ _
Teresa Striker, City Attorney
S-tvtckv-
Regional Government Services Authority
By: --"-~---L...6---~-~------"---~--
Richard H. Averett, Executive Director
Ag reement tor Manageme nt and AdmmJstrat Jve Serv 1ces Betwee n the CITY OF RICHMOND and Reg ional Govenu 11ent Services Authority Page II of 12
Apri l l , 2021

a. RGS and Agency acknowledge and agree that, if Agency participates in a defined benefit plan (such as CalPERS, a defined benefit pension Plan, or Social Security) or ("Retirement Program"), it is possible that the Retirement Plan may find that RGS employees providing services pursuant to this Agreement are employees of Agency and should be registered with the Retirement Program as employees of Agency, which possibility is the same as if Agency were contracting with a private consulting firm. Pursuant to Section 5.1 of this Agreement, Agency has an obligation to treat all persons working for or under the direction of RGS as agents and employees of RGS, and not as agents or employees of Agency. Agency agrees not to ask RGS employees for personally identifying information.
b. In the event that the Retirement Program initiates an inquiry that includes examination of whether individuals providing services to Agency are Agency's employees, Agency shall inform RGS within five days and share all communications and documents from the Retirement Program that it may legally share. Agency and RGS shall cooperate to determine the manner of responding to the inquiry and what, if any, documents to provide. c. In the event that the Retirement Program makes a finding that one or more RGS employees are employees of Agency, Agency shall promptly inform RGS and share all communications and documents from the Retirement Program that it may legally share. RGS and Agency shall cooperate in determining how to respond to the Retirement Program, including but not limited to whether and how to make any corrections described by the Retirement Program.
d. RGS and Agency each reserves the right to file an appeal of the Retirement Program's finding that an RGS employee is an employee of Agency and should be registered with the Retirement Program as an employee of Agency and to challenge such a decision in court. Agency assigns its right to file an appeal of such a finding, if Agency does not itself file an appeal. In the event that either RGS or Agency files an appeal or court challenge, RGS and Agency each agree to cooperate with each other in pursuit of the action. e. Notwithstanding Section 17.1 of this Agreement, RGS and Agency shall each bear their own costs in responding to an inquiry by a Retirement Program, including but not limited to costs of an appeal or court challenge.

In the event that (1) Retirement Program finds that an RGS employee is an employee of Agency and should be registered in the Retirement Program as an employee of the Agency; (2) Retirement Program finds that a payment is required to register the employee as an employee of Agency; and (3) neither RGS nor Agency challenges those findings or the payment is upheld in a final appeal or court decision, RGS' obligation for any payments to Agency for Retirement Program benefits shall be limited to Agreement tor Management and Admu11strat1ve Servtces
Between the ClTY OF RICHMOND and Regional Govenuncnt Services Authority

April I, 2021

Should it be necessary for payments to be made by check then please use the following address:

Regional Government Services Authority
PO Box 1350
Carmel Valley, CA 93924

AGENCY CONTACTS
Agency Billing Contact. Invoices are sent electronically only. Please provide the contact person to whom invoices should be sent:

NAME EMAIL
Anil Cornela, HR Director Aniil [email protected] Agency Insurance Contact. Please provide the contact person to whom the certificate of coverage should be sent:

NAME
Laura

RGSSTAFF
CLASSIFICATION HOURLY RATE*
Chief Operating Officer $135 to $220
Deputy Chief Operating Officer $130 to $195
Senior /Lead Advisor $125 to $190
Advisor $115 to $160
Project Advisor $105 to $125
Project Coordinator $85 to $120
Technical Specialist $75 to $115 . *The Hourly Rate does not mclude direct external costs whiCh Will be mv01ced to Agency With no markup and will fall outside of the not-to-exceed (if established) for services provided.

Agreement for Management and Admm1stra1we Serv1ces
Between the CITY OF RICHMOND and Regional Govenunent Services Authority

April 1, 2021

ExhibitB
Scope of Services. Pursuant to the provisions of this Agreement, RGS shall provide certain services to Agency as described and implemented in Task Orders to this Agreement. Task Orders shall be executed by the Parties and shall by this reference be incorporated as part of this Agreement.

Agreement for Management and Admuustratrve Serv1ces
Between the CITY OF RICHMOND and Regional Govenunent Services Authority

Aprill, 2021

·~ REGIGOV-02 VKUMAR
ACORD" CERTIFICATE OF LIABILITY INSURANCE I
DATE {MM/DD/YYYY)
~· 6/4/2021
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

PRODUCER License # 0C36861 ~2AA¥:-cT Anne Krueger
Newport Beach-AIIiant Insurance Services, Inc. wg,N~o, Ext): (949) 260-5087 I FAX 1301 Dove St Ste 200 {AJC, No):

Newport Beach, CA 92660 ~~DA~~ss: [email protected]
INSURER{S) AFFORDING COVERAGE NAIC#
INSURER A: Great American E & S Insurance Company 37532 INSURED INSURERS:

REGIONAL GOVERNMENT SERVICES AUTHORITY INSURERC:

PO BOX 1350 INSURERD:

CARMEL VALLEY, CA 93924 INSURERE:

INSURER F:

COVERAGES CERTIFICATE NUMBER· REVISION NUMBER·

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ~~~~ TYPE OF INSURANCE ~~f~ IW9~ POLICY NUMBER ~~~l-6%~ ~~~}-6~~ LIMITS A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 5,000,000 f--
0 CLAIMS-MADE [RJ OCCUR X 214510003 9/29/2020 9/29/2021 ~~~b~H9E~~J~~nr.e\ $ 1,000,000 f--
X GL OED: $50,000 MED EXP IAn one oerson\ $ 0
1-- 5,000,000 PERSONAL & ADV INJURY $ 1-- 0 ~'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ POLICY D ~~T D LOG PRODUCTS · COMP/OP AGG $ 5,000,000
OTHER: $
A AUTOMOBILE LIABILITY ~~~~~~~~!\SINGLE LIMIT $ 5,000,000 r--

ANY AUTO
r- X 214510003 9/29/2020 9/29/2021 BODILY INJURY (Per person) $ r-- OWNED SCHEDULED 'X

AUTOS ONLY
ex
AUTOS BODILY INJURY (Per accident) $
~l)t~SONLY ~&~o~~~T.~ FP~?~.l'!;d~RAMAGE $
'X t~o~~oSED:
f--
$
UMBRELLA LIAB H OCCUR EACH OCCURRENCE $ r-- EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED I I RETENTION $ $

WORKERS COMPENSATION I PER I I OTH-AND EMPLOYERS' LIABILITY STATUTE ER YIN
ANY PROPRIETOR/PARTNER/EXECUTIVE D N/A EL EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? (Mandatory in NH) E.L. DISEASE • EA EMPLOYEE $ If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE ·POLICY LIMIT $ A PUBLIC OFFICIALS E&O 214510003 9/29/2020 9/29/2021 LIMIT 5,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES {ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Additional Insured endorsement attached. Policy form does not contain a General Liability Aggregate. Notice of cancellation will be delivered only to the participating named insured as stated in Item 1 of the Participation Endorsement. Subject to policy terms, conditions and exclusions.

AS RESPECTS SERVICE CONTRACT. CITY OF RICHMOND, IT'S OFFICERS, EMPLOYEES AND AGENTS ARE NAMED AS ADDITIONAL INSURED FOR GENERAL LIABILITY AND AUTO LIABILITY ONLY AS RESPECTS TO LIABILITY ARISING OUT OF ACTIVITIES PERFORMED.

SEE ATTACHED ACORD 101

CERTIFICATE HOLDER
City of Richmond
Attn: Laura Marquesz
450 Civic Center Plaza, Suite 310
Richmond, CA 94804
ACORD 25 (2016/03)

CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

AUTHORIZED REPRESENTATIVE
© 1988-2015 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD Page 53 of 252 AGENCY CUSTOMER ID: REGIGOV-02 VKUMAR
--------------------------------------LOC#:

ADDITIONAL REMARKS SCHEDULE
AGENCY License # OC36861
Newport Beach-AIIiant Insurance Services, Inc.

POLICY NUMBER
I5EE PAGE 1
CARRIER ll NAICCODE
I5EE PAGE 1 SEEP 1

ADDITIONAL REMARKS

THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: ACORD 25 FORM TITLE: Certificate of Liability Insurance Description of Operations/LocationsNehicles:

NAMED INSURED

REGIONAL GOVERNMENT SERVICES AUTHORITY
PO BOX 1350
CARMEL VALLEY, CA 93924
EFFECTIVE DATE: SEE PAGE 1

The Company may cancel the coverage by mailing to the first Participating Named Insured at the address shown in the participation endorsement written notice stating when, not less than sixty (60) days thereafter, such cancellation shall be effective. Provided that the Participating Named Insured fails to discharge, when due, any of its obligations in connection with the payment of premium for the policy or any installment thereof, the coverage may be canceled by the Company by mailing to the Participating Named Insured at the address shown in the participation endorsement, written notice stating when, not less than ten (10) days thereafter, such cancellation shall be effective.

ACORD 101 (2008/01) © 2008 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD Page 54 of 252 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Additional Insured -Designated Person or Organization
This endorsement modifies insurance provided under the following:

SPECIAL LIABILITY POLICY FOR PUBLIC ENTITIES AND NON-PROFIT

CORPORATIONS
Name of Person or Organization:

Any person or entity that the "Named Insured" has entered into a written agreement, prior to a loss, to provide defense, indemnity or additional insured protection.

The following is added to Section V. PERSONS OR ENTITIES INSURED:

Any person(s) or organization(s) listed in the Schedule above is an Additional Insured, but only as respects "Personal Injury" (including "Bodily Injury") and "Property Damage" arising, in whole or in part, out of the operations of the Named Insured. The inclusion of such Additional Insured shall not serve to increase the "Company's" Limit of Liability as specified in the participation endorsement of this Policy:

However, additional insured coverage provided by this insurance will not be broader than coverage required in the written agreement.

GL330138 0916 Includes copyrighted material ofiSO Prope1ties, Inc., 2004 with its permission

THIS ENDORSEMENT CHANGES THE POLICY. PLFASE RFAD IT CAREFULLY.

Primary and Non-Contributory Coverage Endorsement
This endorsement modifies insurance provided under the following:

SPECIAL UABU.,ITY POLICY FOR PUBLIC ENTITIES AND NON-PROFIT

CORPORATIONS
The following is added to Section VIII. COMMON POLICY CONDITIONS:

If insurance similar to this insurance is held by a person or organization that is an additional insured on this policy, this insurance is primary to that other insurance.

The "Company" shall not seek contribution from that other insurance for amounts payable under this insurance for liability atising out of the "Participating Named Insured's" ongoing operations performed for that person or organization under a written agreement.

However, the provisions of this endorsement do not apply to a person or organization unless the "Participating Named Insured" had a written agreement with that person or organization requiring:
a. This insurance be p1irnary insurance;
b. They be an additional insured on this Policy; and
c. The written agreement was entered into prior to the date the "Patticipating Named Insured's" operations for that person or organization commenced.

GL330152 0911 Includes copyrighted material ofiSO, Inc., used with permission Page 1 of 1

ABRD® CERTIFICATE OF LIABILITY INSURANCE I

DATE (MMIDD/YYYY)
6/11/2021
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

PRODUCER ~~~1~cT Kristen DesCombes
Alliant Insurance Services, Inc. 11JgN;o Ext\: 949-433-7652 I FAX 1301 Dove St Ste 200 iAIC No\: 949-7 56-2713
Newport Beach CA 92660 ~~DA~~ss: [email protected] INSURER(S) AFFORDING COVERAGE NAIC#
License#: OC36861 INSURER A: State Compensation Ins. Fund INSURED REGIGOV-02 INSURERS:

Regional Government Services Authority INSURERC: PO Box 1350 Carmel Valley CA 93924 INSURERD:

INSURER E:

INSURER F:

COVERAGES CERTIFICATE NUMBER· 950397265 REVISION NUMBER·

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR TYPE OF INSURANCE ~~~~~ ~~ LTR POLICY NUMBER ~~~)-Jg~ ~~grJY,'iv%Yl LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ I--
::=J CLAIMS-MADE D OCCUR ~~~~~~I9E~~~~~~ence\ I-- $
f-- MED EXP (Any one person) $
1---- PERSONAL & ADV INJURY $
R'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $
DPRO- D PRODUCTS -COM PlOP AGG $ POLICY JECT LOG
OTHER: $
AUTOMOBILE LIABILITY fE~~~~~~~~~INGLE LIMIT $
- ANY AUTO BODILY INJURY (Per person) $
- OWNED ,--- SCHEDULED BODILY INJURY (Per accident) $
- AUTOS ONLY 1---- AUTOS·
HIRED NON-OWNED rp~?~.;,~J;;;,RAMAGE $
- AUTOS ONLY 1---- AUTOS ONLY
$
UMBRELLA LIAB HOCCUR EACH OCCURRENCE $ I-- EXCESS LIAB CLAIMS-MADE AGGREGATE $ OED I I RETENTION $ $
A WORKERS COMPENSATION y 927923220 7/1/2020 7/1/2021 X I ~!f~TUTE I I OTH-ER AND EMPLOYERS' LIABILITY YIN ANYPROPRIETORIPARTNER/EXECUTIVE D NIA E.L. EACH ACCIDENT $1,000,000
OFFICER/MEMBER EXCLUDED? (Mandatory in NH) E.L. DISEASE-EA EMPLOYEE $1,000,000 If yes, describe under E.L. DISEASE-POLICY LIMIT $1,000,000 DESCRIPTION OF OPERATIONS below DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space Is required) As respects Agreement for Management and Administrative Services between the City of Richmond and Regional Government Services Authority dated as of April 01, 2021. Waivers of Subrogation applies.

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Richmond ACCORDANCE WITH THE POLICY PROVISIONS.

Attn: Laura Marquez, Assistant RM
450 Civic Center Plaza, Suite 310
IC:E~\SE51~ Richmond CA 94804
I ~ ( "':.)
© 1988-2015 ACORD CORPORATION. All nghts reserved.

ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD Page 57 of 252

STATE ENDORSEMENT AGREEMENT

WAIVER OF SUBROGATION

BLANKET BASIS

BROKER COPY
COMF'ElNSATJON
INSURANCe
FUNO
REP 06
9279232-20
NEW

HOME OFFICE

SAN FRANCISCO

ALL EFFECTIVE DATES ARE
AT 12:01 AM PACIFIC

STANDARD TIME OR THE

TIME INDICATED AT

PACIFIC STANDARD TIME
EFFECTIVE JULY 1, 2020 AT 12.01 A.M.

AND EXPIRING JULY 1, 2021 AT 12.01 A.M.

REGIONAL GOVERNMENT SERVICES AUTHO
PO BOX 1350
CARMEL VALLEY, CA 93924

WE HAVE THE RIGHT TO RECOVER OUR PAYMENTS FROM ANYONE
LIABLE FOR AN INJURY COVERED BY THIS POLICY. WE WILL

NOT ENFORCE OUR RIGHT AGAINST THE PERSON OR
ORGANIZATION NAMED IN THE SCHEDULE.

THIS AGREEMENT APPLIES ONLY TO THE EXTENT THAT YOU

PERFORM WORK UNDER A WRITTEN CONTRACT THAT REQUIRES YOU TO OBTAIN THIS AGREEMENT FROM US.

THE ADDITIONAL PREMIUM FOR THIS ENDORSEMENT SHALL BE

2.00% OF THE TOTAL POLICY PREMIUM.

SCHEDULE

PERSON OR ORGANIZATION

ANY PERSON OR ORGANIZATION

FOR WHOM THE NAMED INSURED

HAS AGREED BY WRITTEN

CONTRACT TO FURNISH THIS
WAIVER

JOB DESCRIPTION

BLANKET WAIVER OF

SUBROGATION
NA
PAGE

NOTHING IN THIS ENDORSEMENT CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE

OR EXTEND ANY OF THE TERMS, CONDITIONS, AGREEMENTS, OR LIMITATIONS OF THIS POLICY OTHER THAN AS STATED. NOTHING ELSEWHERE IN THIS POLICY SHALL BE

HELD TO VARY, ALTER, WAIVE OR LIMIT THE TERMS, CONDITIONS, AGREEMENTS OR LIMITATIONS OF THIS ENDORSEMENT.

COUNTERSIGNED AND ISSUED AT SAN FRANCISCO:
~~-5,{
JULY 9, 2020
li~,P>~ .di-e~~~

PRESIDENT AND CEO
1 OF
2572
1 SCIF FORM 10217 (REV.7-2014) OLD DP 217

CITY OF RICHMOND

CONTRACT AMENDMENT
Department: Project Manager:

Project Manager E-mail:

Project Manager Phone No:

P.R. No: Vendor No: P.O./Contract No:

Description of Services:

Amendment No. ___ modifies the: (2nd or subsequent amendments attach Amendment History page)

Term, Payment Limit and Service Plan
Payment Limit and Service Plan

Term and Service Plan
Service Plan
The parties to this Contract Amendment do mutually agree and promise as follows:

1. Parties. The parties to this Contract Amendment are the City of Richmond, California, a municipal corporation (City), and the following named Contractor:

Company Name:

Street Address:

City, State, Zip Code:

Contact Person:

Telephone: Email:

Business License No: / Expiration Date:

A California [ ] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:]
[ ] other [specify:]

2. Purpose. This Contract Amendment is being entered into to amend the Contract between City and Contractor which was approved by the City Council of the City of Richmond or executed by the City Manager on , which original term commenced on and terminates with an original contract payment limit of $ . Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

3. Original Contract Provisions. The parties hereto agree to continue to abide by those terms and conditions of the Original Contract, and any amendments thereto, which are unaffected by this Contract Amendment.

Human Resources
Anil Comelo
[email protected]
(510) 620-6600
14771
5631
Contract with Regional Government Services (RGS) to provide temporary services to the City on an as-needed basis. ✔
1 Regional Government Services
P.O. Box 1350
Carmel Valley, CA 93924
Richard H. Averett, Executive Director
(844) 587-7300
[email protected]
(B/L waived)
✔
Municipal/Joint Powers Authority
May 18, 2021
April 1, 2021
June 30, 2024
250,000.00
DocuSign Envelope ID: 6B717501-E300-4A97-8598-7D44E640A23C

Contract Amendment/EJ/TE 09-26-07

4. Amendment Provisions. This Contract Amendment is subject to the Amendment Provisions attached hereto, which are incorporated herein by reference, and which control over any conflicting provisions of the Original Contract, or any amendment thereto.

5. City of Richmond Business License Active Status Maintained. Pursuant to Municipal Code Section 7.04.030, the Contractor must maintain its City of Richmond business license for this Contract Amendment to be deemed to be in effect.

6. Insurance Coverage Updated and Maintained. Pursuant to the Original Contract, the Contractor shall provide the City with updated insurance certificates, and the Contractor shall maintain insurance coverage, for this Contract Amendment to be deemed to be in effect.

7. Signatures. These signatures attest the parties’ agreement hereto:

CITY OF RICHMOND, CALIFORNIA
a municipal corporation

By _______________________

Title:

I hereby certify that the Original Contract
and this Amendment have been approved
by the City Council or executed by the City
Manager.

By _______________________
City Clerk

Approved as to form:

By_______________________
City Attorney

List of Attachments:

1. Amendment Provisions

2. Updated Insurance Certificates

CONTRACTOR:

______________________________

(*The Corporation Chairperson of the Board, President or Vice-President should sign on the line below.)

By____________________________

Title:________________________

(*The Corporation Chief Financial Officer, Secretary or Assistant Secretary should sign on the line below.)

By:___________________________

Title:________________________

(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a
corporation or nonprofit organization, this
Contract (1) should be signed by the
Chairperson of the Board, President or
Vice-President
and the Chief Financial
Officer, Secretary or Assistant Secretary; (2)
should have both signatures conform to
designated representative groups pursuant
to Corporations Code Section 313.

Regional Government Services
DocuSign Envelope ID: 6B717501-E300-4A97-8598-7D44E640A23C Executive Director
Mayor

Contract Amendment between the City of Richmond and

Amendment No. P.O./Contract No.

AMENDMENT PROVISIONS (PAYMENT LIMIT AND SERVICE PLAN)

1. Paragraph 3 (Payment Limit) of the Original Contract is hereby amended to increase the payment limit by $ . Paragraph 3 of the Original Contract is amended to read as follows:

"3. Payment Limit. City's total payments to Contractor under this Contract Amendment shall not exceed $ including expenses."

“The City of Richmond shall not pay for services that exceed the Contract Payment Limit without the prior written approval of the City Manager if the total Contract amount does not exceed $10,000 or without the prior approval of the City Council if the total Contract amount is over $10,000.”

2. The Service Plan (Exhibit A) of the Original Contract is hereby amended to include the following tasks and/or services:

Contract Amendment/EJ/TE 9-26-07

400,000.00
Regional Government Services
1 5631
150,000.00
No changes to the Service Plan.

DocuSign Envelope ID: 6B717501-E300-4A97-8598-7D44E640A23C

Contract Amendment between the City of Richmond and

Amendment No. P.O./Contract No.

AMENDMENT PROVISIONS (AMENDMENT HISTORY)

The first Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The second Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The third Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The fourth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The fifth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

Regional Government Services
1 5631
March 1, 2022
150,000.00
400,000.00
✔
✔
DocuSign Envelope ID: 6B717501-E300-4A97-8598-7D44E640A23C

Contract Amendment between the City of Richmond and

Amendment No. P.O./Contract No.

The sixth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The seventh Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The eighth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The ninth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The tenth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

Contract Amendment/EJ/TE 11-30-07

1 Regional Government Services
DocuSign Envelope ID: 6B717501-E300-4A97-8598-7D44E640A23C

___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services

Type 2 – Page 1 of 3

Revised: September 2011
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.

DocuSign Envelope ID: 6B717501-E300-4A97-8598-7D44E640A23C

___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services

Type 2 – Page 2 of 3

Revised: September 2011
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage.

PROJECT COST R EQUIRED LIMIT
$0 - $1 million $1 million p/o
$1 million - $5 million $2 million p/o
Over $5 million $5 million p/o

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.

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.

DocuSign Envelope ID: 6B717501-E300-4A97-8598-7D44E640A23C

___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services

Type 2 – Page 3 of 3

Revised: September 2011
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 Manger. 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.

DocuSign Envelope ID: 6B717501-E300-4A97-8598-7D44E640A23C

CITY OF RICHMOND

CONTRACT AMENDMENT
Department: Project Manager:

Project Manager E-mail:

Project Manager Phone No:

P.R. No: Vendor No: P.O./Contract No:

Description of Services:

Amendment No. ___ modifies the: (2nd or subsequent amendments attach Amendment History page)

Term, Payment Limit and Service Plan
Payment Limit and Service Plan

Term and Service Plan
Service Plan
The parties to this Contract Amendment do mutually agree and promise as follows:

1. Parties. The parties to this Contract Amendment are the City of Richmond, California, a municipal corporation (City), and the following named Contractor:

Company Name:

Street Address:

City, State, Zip Code:

Contact Person:

Telephone: Email:

Business License No: / Expiration Date:

A California [ ] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:]
[ ] other [specify:]

2. Purpose. This Contract Amendment is being entered into to amend the Contract between City and Contractor which was approved by the City Council of the City of Richmond or executed by the City Manager on , which original term commenced on and terminates with an original contract payment limit of $ . Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

3. Original Contract Provisions. The parties hereto agree to continue to abide by those terms and conditions of the Original Contract, and any amendments thereto, which are unaffected by this Contract Amendment.

Contract Amendment/EJ/TE 09-26-07

4. Amendment Provisions. This Contract Amendment is subject to the Amendment Provisions attached hereto, which are incorporated herein by reference, and which control over any conflicting provisions of the Original Contract, or any amendment thereto.

5. City of Richmond Business License Active Status Maintained. Pursuant to Municipal Code Section 7.04.030, the Contractor must maintain its City of Richmond business license for this Contract Amendment to be deemed to be in effect.

6. Insurance Coverage Updated and Maintained. Pursuant to the Original Contract, the Contractor shall provide the City with updated insurance certificates, and the Contractor shall maintain insurance coverage, for this Contract Amendment to be deemed to be in effect.

7. Signatures. These signatures attest the parties’ agreement hereto:

CITY OF RICHMOND, CALIFORNIA
a municipal corporation

By _______________________

Title:

I hereby certify that the Original Contract
and this Amendment have been approved
by the City Council or executed by the City
Manager.

By _______________________
City Clerk

Approved as to form:

By_______________________
City Attorney

List of Attachments:

1. Amendment Provisions

2. Updated Insurance Certificates

CONTRACTOR:

______________________________

(*The Corporation Chairperson of the Board, President or Vice-President should sign on the line below.)

By____________________________

Title:________________________

(*The Corporation Chief Financial Officer, Secretary or Assistant Secretary should sign on the line below.)

By:___________________________

Title:________________________

(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a
corporation or nonprofit organization, this
Contract (1) should be signed by the
Chairperson of the Board, President or
Vice-President
and the Chief Financial
Officer, Secretary or Assistant Secretary; (2)
should have both signatures conform to
designated representative groups pursuant
to Corporations Code Section 313.

Contract Amendment between the City of Richmond and

Amendment No. P.O./Contract No.

AMENDMENT PROVISIONS (PAYMENT LIMIT AND SERVICE PLAN)

1. Paragraph 3 (Payment Limit) of the Original Contract is hereby amended to increase the payment limit by $ . Paragraph 3 of the Original Contract is amended to read as follows:

"3. Payment Limit. City's total payments to Contractor under this Contract Amendment shall not exceed $ including expenses."

“The City of Richmond shall not pay for services that exceed the Contract Payment Limit without the prior written approval of the City Manager if the total Contract amount does not exceed $10,000 or without the prior approval of the City Council if the total Contract amount is over $10,000.”

2. The Service Plan (Exhibit A) of the Original Contract is hereby amended to include the following tasks and/or services:

Contract Amendment/EJ/TE 9-26-07

Contract Amendment between the City of Richmond and

Amendment No. P.O./Contract No.

AMENDMENT PROVISIONS (AMENDMENT HISTORY)

The first Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The second Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The third Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The fourth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

The fifth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan

___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services

Type 2 – Page 1 of 3

Revised: September 2011
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 F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services

Type 2 – Page 2 of 3

Revised: September 2011
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage.

PROJECT COST R EQUIRED LIMIT
$0 - $1 million $1 million p/o
$1 million - $5 million $2 million p/o
Over $5 million $5 million p/o

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.

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 F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services

Type 2 – Page 3 of 3

Revised: September 2011
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 Manger. 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.

July 5, 2022

Public Works

DATE: July 5, 2022
TO: Mayor Butt and Members of the City Council
FROM:

Joe Leach, PE, Public Works Director
Greg Hardesty, Parks & Landscaping Superintendent
Jose Urquilla, Facilities Superintendent

Subject:

Proposed Contract with Community Fire Protection.

FINANCIAL IMPACT: The proposed expenditure of $32,448 for this contract will be included in the proposed Department of Public Works
operating budgets through Fiscal Years 2024-2025. The
additional two-year extension of $21,632 will be included in the proposed Department of Public Works operational
budgets thru Fiscal Year 2026-2027. 01233631-400537
($49,080) and 01232331-400524 ($5,000).

PREVIOUS COUNCIL
ACTION:

None

STATEMENT OF THE
ISSUE:

The Department of Public Works, Parks & Facility
Maintenance Divisions are seeking approval of a contract with Community Fire Protection
RECOMMENDED ACTION:

APPROVE a three-year contract with Community Fire
Protection in the amount of $32,448 to provide annual East Bay Municipal Utility District (EBMUD) mandatory testing and repair of backflows in various City buildings, parks and right-of-ways, with an additional two-year extension option of $21,632. The contract term will be from July 1, 2022, to June 30, 2025 – Public Works Department (Joe Leach 510- 620-5478/Greg Hardesty 510-620-6920/Jose Urquilla 510-
620-6896).

AGENDA
REPORT

July 5, 2022
DISCUSSION:

On March 15, 2022, a request for bid proposals was placed on BidsOnline to provide annual East Bay Municipal Utility District (EBMUD) mandatory testing and repair of backflows in various City buildings, parks, and right-of-ways. Four bid proposals were received on March 29, 2022. The proposals were as follows:

Community
Fire
Backflow
Team
W. R.

Forde
ACCE
Engineered

Annual test & certification per
site
$ 43 $ 90 $ 345 $ 27,510
Labor cost for repair of
backflow
$115 $ 90 $1,600 $ 202
Re-test and certification after
repair
$ 25 $ 90 $2,160 $ 200

Currently, there are 112 backflows tested annually at a cost of $4,816. Sometimes there are backflows that don’t pass testing and will need to be repaired. These repair costs average approximately $6,000 a year.

City staff recommends approval of a contract with Community Fire Protection because their overall cost proposal is the lowest.

DOCUMENTS ATTACHED:

Attachment 1 – Contract
Attachment 2 – Bidsonline Summary Report

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

City of Richmond
Backflow Testing and Repairs (PW-Parks-03-15-2022), bidding on 03/29/2022 2:00 PM (PDT)

Printed 06/16/2022
PlanetBids, Inc.

July 5, 2022

Rent Program

DATE: July 5, 2022
TO: Mayor Butt and Members of the City Council
FROM:

Nicolas Traylor, Rent Program Executive Director
Comments by Interim City Attorney (in red)

Subject:

Resolution Establishing the Fiscal Year 2022-23
Residential Rental Housing Fee
FINANCIAL IMPACT: The Rent Program budget is funded by the Rental Housing Fee. The amount of the Fiscal Year 2022-2023
Residential Rental Housing Fee recommended by the
Rent Board is $226.00 per Controlled Rental Unit and
$127.00 per Partially Covered Unit. As the Residential
Rental Housing Fee is the only source of revenue for
Rent Program operations for the foreseeable future, the fiscal impact to the City will depend upon both the dollar amount of the fees adopted by the City Council, and fee payment compliance rates. To compel compliance,
Ordinance 21-18 N.S., amended by the City Council on
July 17, 2018, establishes penalties for late payment and authorizes the Rent Board to commence collection
actions at any time for nonpayment of the Rental Housing Fee (Attachment 3).

However, Rent Program has paid $106,000 to $130,000
annually for General Fund liability and administrative
charges. This budget discontinues any payments so that
the General Fund is subsidizing the program.

PREVIOUS COUNCIL
ACTION:

Various including July 25, 2017, June 26, 2018, May 21, 2019, June 16, 2020, and May 4, 2021
AGENDA
REPORT

July 5, 2022

STATEMENT OF THE
ISSUE:

The purpose of the Fair Rent, Just Cause for Eviction,
and Homeowner Protection Ordinance is to promote
housing stability and affordability for Richmond renters to the greatest extent allowable under California law while providing Landlords a fair return. In accordance with
Section 11.100.060(l) of the Richmond Fair Rent, Just
Cause for Eviction, and Homeowner Protection
Ordinance, after receiving the Rent Board’s
recommendation on the amount of the Residential Rental
Housing Fee, the City Council shall determine the
amount of the fee by voting on the Rent Board’s
recommendation. The Rent Board is requesting the
adoption of a resolution amending the Master Fee
Schedule by establishing the Residential Rental Housing Fee for Fiscal Year 2022-2023.

City Manager and City Attorney recommended payment
from Rent Program at past levels while a new cost study was performed as mutually agreed upon by the parties.

The Rent Board has not concurred with that
recommendation.

RECOMMENDED ACTION:

ADOPT a resolution establishing the Fiscal Year 2022-
2023 Residential Rental Housing Fee in the amount of
$226.00 per Controlled Rental Unit and $127.00 per
Partially Covered Rental Unit – Rent Program (Nicolas
Traylor 620-6564). This item was continued from the
June 21, 2022, meeting.

Consider if budget should be modified to provide General Fund support at historic level and if revised cost study should be performed by parties.

DISCUSSION:

Background

The Rent Program is funded by a Residential Rental Housing Fee, paid by all Landlords of Rental Units in the City of Richmond in accordance with Section 11.100.060(l)(1) of the Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance (“Rent Ordinance”). The amount of the Rental Housing Fee is determined annually when the City Council votes on the Rent Board’s recommendation of the amount of the fee.

Under Section 50076 of the California Government Code, fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service.

July 5, 2022
Those fees must be approved by the City Council, as the legislative body, in a public session. Therefore, a fee study is necessary to ensure that the Residential Rental Housing Fee recommended by the Rent Board and charged to Landlords is commensurate to the level of services provided by the Rent Program.

Fiscal Year 2022-23 Rental Housing Fee Study

The fee study is designed to allow the Rent Program Department to recover costs of all budgeted operations, including, but not limited to:

 Personnel costs of staff, benefits, and overtime;
 Risk management and supplemental liability insurance plan (SLIP);  Charges allocated to City Departments to reimburse the General Fund for administrative services by central service departments (i.e., City Council, City Manager, City Attorney, City Clerk, Finance, Human Resources, etc.) Allocations still under review and consultants will be engaged to validate methodology;
 Information Technology (IT) expenses associated with a property and rent-tracking database and maintenance of computer hardware and software;
 Legal costs to support enforcement and defense of legal challenges to the Rent Ordinance;
 Costs of education and outreach, including the printing and distribution of print materials and hosting of community workshops and seminars;  Contracts for translation and other professional services;  Mileage and attendance at conferences and trainings; and  An operating reserve to fund unanticipated costs and variations in collection of the Rental Housing Fee.

Proposed Structure of the Rental Housing Fee

Consistent with direction from the Rent Board in 2017, its first year of existence, the Fiscal Year 2016-2017 and FY 2017-2018 Rental Housing Fees were established as “flat fees,” applicable to all units regardless of partial or full applicability under the Rent Ordinance. This approach was utilized during the first 1.5 years of program startup since the tasks and associated benefits of the agency’s startup were reasonably shared among Rental Units regardless of status.

For the 2018-2019 Fiscal Year, the Rent Board adopted a tiered fee, much like that contemplated in the 2017 Fee Study prepared by Management Partners. Under this approach, costs of program administration are allocated among three components or layers: a general “program” layer (calculated at 55% of costs), a “just cause” layer (20% of total costs), and a “rent control” layer (25% of costs). Such allocations correspond with the amount of resources spent administering each component of the program. Rent Program staff members recommend the Board continue to utilize a tiered-fee approach

July 5, 2022
in its determination of the Fiscal Year 2022-2023 Rental Housing Fee to ensure the requirements of Section 50076 of the California Government Code are met.

The amount of the Rental Housing Fee applicable to a particular Rental Unit depends on its status. Units applicable to the Just Cause for Eviction requirements but exempt from the Rent Control provisions of the Rent Ordinance (such as properties with only one dwelling unit on the parcel, governmentally subsidized units, condominiums, and permitted units built after February 1, 1995), are responsible for payment of Program and Just Cause for Eviction layers. Units subject to the Just Cause for Eviction and Rent Control provisions of the Rent Ordinance would be responsible for payment of all three layers. Units that are fully exempt from the Rent Ordinance are not responsible for payment of the Rental Housing Fee.

Comparison of Fiscal Year 2022-2023 Fee to Prior Year Fees

The Rental Housing Fee for the 2022-2023 fiscal year is recommended to be: $226 for Fully Covered Rental Units and $127 for Partially Covered Rental Units. The table below compares the proposed Fiscal Year 2022-2023 Rental Housing Fee to prior year fees.

Table 1. Comparison of Proposed FY 2022-2023 Rental Housing Fee to Prior Year Fees

Fiscal Year Fully Covered
Rental Units
Partially
Covered Rental
Units
Governmentally
Subsidized
Rental Units
2017-18 $145 $145 N/A
2018-19 $207 $100 $50
2019-20 $212 $112 N/A
2020-21 $219 $124 N/A
2021-22 $218 $123 N/A
2022-23 $226 $127 N/A

Next Steps

Following adoption of the Fiscal Year 2022-2023 Residential Rental Housing Fee by the City Council, the fee will be incorporated into the Master Fee Schedule and charged to all Richmond Landlords in accordance with the Rent Ordinance.

DOCUMENTS ATTACHED:

Attachment 1 – Resolution
Attachment 2 – Approved Rent Program Fiscal Year 2023-23 Budget and Rental Housing Fee Study
Attachment 3 – Ordinance 21-18 N.S.

Reso. No. XX-2

RESOLUTION NO. _____ - 2

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND ESTABLISHING THE FISCAL YEAR 2022-23 RESIDENTIAL RENTAL HOUSING

FEE IN THE MASTER FEE SCHEDULE FOR SERVICES RENDERED BY THE CITY

OF RICHMOND RENT PROGRAM

WHEREAS, Section 11.100.060(l) of the Municipal Code of the City of Richmond provides that the Rent Board of the City of Richmond shall finance its reasonable and necessary expenses by charging Landlords annual registration fees in amounts deemed reasonable by the Rent Board; and

WHEREAS, Section 11.100.060(l)(1) of the Municipal Code of the City of Richmond provides that all Landlords shall pay a business license fee if required by the Richmond Municipal Code plus a Residential Rental Housing Fee, the amount of which shall be determined by the City Council after a recommendation by the Rent Board is provided to the City Council; and

WHEREAS, at its meeting on July 25, 2017, the City Council of the City of Richmond adopted Ordinance 16-17 N.S., establishing (1) the Residential Housing Fee in the Master Fee Schedule; (2) a late penalty of 10% of the Residential Rental Housing Fee (“Fee”) for Fees paid 1-30 days late, 25% of the Fee for those paid 31-60 days late, and 50% of the Fee for those paid over 60 days late; and (3) provisions to allow liens to be placed on properties owned by Landlords who fail to pay the Residential Rental Housing Fee; and

WHEREAS, following the Rent Board’s approval of the Fiscal Year 2022-23 Residential Rental Housing Fee Study, and following the Board’s adoption of the Fiscal Year 2022-23 Rent Program budget, the Rent Board, at its meeting on May 31, 2022, adopted a motion recommending to the City Council that the City Council adopt for Fiscal Year 2022-23 a Residential Rental Housing Fee in the amount of $226.00 per Controlled Rental Unit and $127.00 per Partially Covered Rental Unit: and

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richmond that the Master Fee Schedule is hereby amended to change the Residential Rental Housing Fee from $218.00 per Controlled Rental Unit and $123.00 per Partially Covered Rental Unit for Fiscal Year 2021-22 to the following: $226.00 per Controlled Rental Unit and $127.00 per Partially Covered Rental Unit for Fiscal Year 2022-2023 as further described and attached hereto as Exhibit A and incorporated herein by this reference.

*****************************

Reso. No. XX-2

I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a regular meeting thereof, held on ___________, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

____________________________________
City Clerk of the City of Richmond

(SEAL)

Approved:

_________________________
Mayor

Approved as to form:

_________________________
City Attorney

Reso. No. XX-2

EXHIBIT A

Commencing with the effective date of this Resolution ___-2 the fee established in Ordinance 16-17 N.S., Section 1, shall be as follows:

Description Current Fee Proposed Fee
RMC 6.38.110 Section 5 allows the City to collect fees solely to defray actual cost. RMC

6.02.180

RENT PROGRAM

RESIDENTIAL RENTAL HOUSING FEE
Administration of
the Fair Rent, Just
Cause for Eviction,
and Homeowner
Protection
Ordinance
(RMC 11.100)
Fiscal Year 2021-22

(Per Controlled Rental
Unit):
$218.00

(Per Partially Covered
Rental Unit):
$123.00

Fiscal Year 2022-23

(Per Controlled Rental Unit):
$226.00

(Per Partially Covered Rental Unit):
$127.00

FY 2022-23 BUDGET
& RENTAL HOUSING

FEE STUDY

CITY OF RICHMOND RENT PROGRAM
ADOPTED: MAY 31, 2022

Boardmembers
Virginia Finlay
Shiva Mishek
Alana Grice Conner
Carole Johnson
Michael Vasilas

City of Richmond Rent Program
440 Civic Center Plaza, Suite 200
Richmond, CA 94804
(510) 234-RENT [7368]
www.richmondrent.or
g

ACKNOWLEDGMENTS

Rent Program Department Team

Nicolas Traylor Charles Oshinuga Paul Cohen
Executive Director General Counsel Hearing Examiner

Fred Tran Palomar Sanchez Cynthia Shaw
Deputy Director Staff Attorney Administrative Analyst

Monica Bejarano Ramona Howell Moises Serano
Services Analyst Administrative Aide Administrative Aide

Abraham Gonzalez Christopher Villalta
Administrative Intern Administrative Intern

Special Thanks to the below City staff and departments:

IT Department Human Resource s Department Finance Department

Sue Hartman Sharrone Taylor Mubeen Qader Director Principal Personnel Analyst Budget Administrator

Randall Narron Delmy Cuellar
Senior Programmer Finance Manager
(Interim)

Vrenesia Ward
S r . B u d g e t A n a l y s t

TABLE OF CONTENTS

I. Rent Program Organization and Goals………………………………………………………………3 a. Mission Statement……………………………………………………………………………………..3 b. Organizational Chart and Labor Summary …..……….……………………………………..3 c. Progress towards the achievement of Fiscal Year 2021-22 Goals…………………5 d. Proposed Fiscal Year 2022-23 Goals………….……………………………………………….7

II. Proposed 2022-2023 Budget ……………. ………………………………………………….………..9 a. Budget …………………………………………………………………….………………………..….…..9
b. Line Item Descriptions……………………………………………………………………………...11

III. Expense and Revenue Projections
a. Expense and Revenue Summary……………………………………………………………….19

IV. 2022-2023 Rental Housing Fee Study……………………………………….…………………. 20 a. Introduction and Background……………………………………………………………………20 b. Structure of the Rental Housing Fee………………………………………………………....20 c. Applicable Unit Counts and Database Development…………………..………………22 d. Proposed Rental Housing Fees………………………………………………………………….25 e. Comparison to Previously Adopted Rental Housing Fee and Peer Jurisdictions……………………………………………………………………………………..………25
f. Conclusion and Recommended Actions.………………………………………………..….27

V. Unit Descriptions………..…………………………………………….……………………………………28

VI. Appendices………………………………………………………………………….……………..…………30

I. RENT PROGRAM ORGANIZATION AND GOALS

Mission Statement

The mission of the Rent Program is to promote neighborhood and community stability, healthy housing, and affordability for Richmond Tenants through the regulating of those Landlord/Tenant matters that reasonably relate to rents and evictions, while maintaining a Landlord’s right to a fair return.

Proposed Fiscal Year 2022-23 Organizational Chart and Labor Summary

The Richmond Rent Program was established following the adoption of the Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance (Rent Ordinance) by a majority of Richmond voters in 2016. In accordance with the Rent Ordinance, an Executive Director appointed by a five-member Rent Board comprised of Richmond residents leads the Rent Program.

The following figures illustrate how the proposed staffing plan for the upcoming year compares to prior years. Of particular note is the proposed addition of two new personnel classifications, including that of a General Counsel and a Senior Rent Program Services Analyst, as well as the consolidation of the Public Information and Billing and Registration Units into one combined Public Information and Enrollment Unit (PIE). The rationale for these proposed changes to the organizational chart is described in further detail below.

Figure 1 contains the proposed organizational chart for the 2022-23 fiscal year, and Figures 2 and 3 provide a summary of full-time equivalents (FTEs) since Fiscal Year 2020-21.

Figure 1. FY 2022-23 Rent Program Organizational Chart

Figure 2. Proposed Fiscal Year 2022-23 Labor Summary

Authorized
Positions
2020/2021
Authorized
Positions
2021/2022
Proposed
Positions
2022/2023
Amount of
Change
21/22 -
22/23
Unit
Management 2.25 2.25 2.25 0
Legal 1.75 2.25 2.25 0
Public Information 4.6 N/A N/A N/A
Billing & Registration 2.9 N/A N/A N/A
Public Information & Enrollment N/A 6.75 6.75 0
Hearings 1.5 1.75 1.75 0
TOTAL    13 13 13 0

Figure 3. Proposed Fiscal Year 2021-22 Permanent Staff by Classification

Authorized
Positions
2020/2021
Authorized
Positions
2021/2022
Proposed
Positions
2022/2023
Amount
of
Change
21/22 -
22/23
Classification
Administrative Aide 3 3 3 0
Administrative Student Intern 1 1 1 0
Assistant Administrative Analyst 1 1 0 -1
Deputy Director 1 1 1 0
Executive Director 1 1 1 0
General Counsel N/A 1 1 0
Hearing Examiner 1 1 1 0
Rent Program Services Analyst I/II 3 2 2 0
Senior Rent Program Services /
Administrative Analyst N/A 1 2 1
Staff Attorney 2 1 1 0
Total    13 13 13 0

Proposed Reclassification for a Senior Administrative Analyst

The proposed Fiscal Year 2022-23 budget includes a reclassification from an Assistant Administrative Analyst position to a Senior Administrative Analyst (1 FTE). The reclassification would require approval from both the Personnel Board and City Council. This role will assist with managing the Hearings Unit, provide administrative support to the Executive Director, and the Legal Unit. This role will receive direction from the Executive Director and oversees the petition process for the Hearings Unit. The Senior Administrative Analyst will also take direction from the General Counsel, Hearing Examiner, and Staff Attorney in a supportive capacity, but does not direct, the legal work of the agency.

Furthermore, the position will manage and work closely with all phases of the Rent Board, including the coordination of meetings and communications with all Board Members and the public. This proposed change would not increase the overall number of full-time equivalents (FTEs) employed by the agency.

Consolidation of Public Information and Billing and Registration Units

The organizational chart for Fiscal Year 2021-22 includes a “Public Information and Enrollment Unit” that replaces the existing Public Information and Billing and Registration Units. This new organizational structure is anticipated to be advantageous to the agency for the following reasons:

 Improved compliance with enrollment, registration, and fee payment requirements In their conversations with community members, Rent Program Services Analysts (housing counselors) frequently discover rental units that are not in compliance with

the Rent Program in terms of property enrollment, tenancy registration, and fee payment requirements. Coordination between housing counselors and staff who oversee enrollment, registration, and fee payment operations is important, and the new organizational structure will support closer communication and collaboration to ensure that there is follow up after a rental unit found to be noncompliant.

 Greater efficiency in serving members of the public
Distinct units can create unnecessary silos. The Rent Program is a relatively small agency and will be better equipped to face surges in demand or unforeseen circumstances if all Public Information and Enrollment Unit staff have a foundational understanding of both the Rent Ordinance and its requirements, as well as internal policies and procedures regarding property enrollment, tenancy registration, and payment of the Rental Housing Fee. Under the previous organizational structure, staff members in the Billing and Registration Unit would not typically assist with preparation for community workshops, and staff in the Public Information Unit may not have been familiar enough with Billing and Registration processes to fully assist community members with a billing issue. The new proposed structure would provide greater flexibility and redundancy among staff roles.

 Promotes collaboration on large outreach projects
With 6.75 FTE, the new consolidated Public Information and Enrollment Unit will be the largest unit in the agency and better able to manage completion of large projects, such as mailing the Guide to Rent Control, rent validation reports, and Rental Housing Fee invoices to thousands of Landlords and Tenants. Mass-mailing projects also present opportunities to share information that community members may not otherwise seek out; for example, mailing of Rental Housing Fee invoices to all Landlords is an opportunity to share information about other aspects of the Rent Ordinance.

Progress Towards the Achievement of Fiscal Year 2021-22 Goals

As part of the Fiscal Year 2022-23 Rent Program budget development process, staff members identified a series of goals that the proposed budget would support. As was the case for the greater City of Richmond and the nation as a whole, the Covid-19 pandemic forced a reconsideration of goals and objectives for the 2021-22 fiscal year. Table 1, on the following page, provides a status update on the goals established for the 2021-22 fiscal year and notes the impacts of the Covid-19 pandemic.

Table 1. Progress towards achievement of Fiscal Year 2021-22 Goals Fiscal Year 2021-22 Goal Progress Towards Achievement
Develop a training schedule for Rent
Program Services Analysts (but
accessible to all staff), to ensure
housing counselors remain
knowledgeable on the requirements of
the Rent Ordinance and apprised of
any changes to Rent Board
Regulations and related State and
Federal laws.

Nearly complete.

Rent Program Services Analysts received
regular and ongoing support and training from the managing Staff Attorney on the Rent Ordinance and related laws and regulations. Senior staff members provided specific trainings on new regulations and processes as needed. Rent Program Services Analysts provided weekly informational sessions to support staff in the Public Information Unit to keep them apprised of changes to the law and current topics of
relevance. Rent Program Services Analysts also develops collateral to communicate updates to the community.

Continue to implement the mediation
program to provide free formal and
informal mediation services to
Landlords and Tenants as a means of
resolving disputes that have a
reasonable nexus to the Rent
Ordinance through the assistance of a
trained mediator.

Nearly complete
, but significantly impacted by the Covid-19
pandemic, work is ongoing. With mediation guidelines and administrative procedures in place, staff members continue to assess the bandwidth of the Public Information Unit to determine how many mediations may be scheduled per
month. The Covid-19 pandemic delayed the process of filling vacancies in the Public Information Unit and eliminated the possibility of in-person mediations. The Executive and Deputy Directors facilitated mediations as necessary, but the
mediation program has yet to be fully launched.

Continue to develop an online filing
system for the submission of Property
Enrollment and Tenancy Registration
Progress is ongoing.

Online submission of forms and notices
has yet to be fully launched; staff members anticipate
systems will continue to be developed in the 2022-23 fiscal

forms, as well as the filing of rent
increase and termination of tenancy
notices on the City’s e-TRAKiT website.

year. There is also consideration to upgrade to more a
modern system that is suited for Rent Programs.

Publish and distribute the Guide to
Rent Control in Richmond and one-
page fact sheets on common topics
such as Just Cause for Eviction, Owner
Move-In evictions, the Ellis Act, and the
Relocation Ordinance.

Nearly complete
but significantly impacted by the Covid-19
pandemic. The Guide to Rent Control has been completed
and is slated to be distributed to Landlords and Tenants concurrent with the mailing of Rent Validation Reports for Fully Covered Rental Units. Landlords and Tenants of partially- covered Rental Units are anticipated to receive the Guide to Rent Control as well, in the absence of a Rent Validation Report. Originally planned to be completed during the 2020- 21 fiscal year, the distribution of such materials was
significantly delayed by the transition to remote work
necessitated by the Covid-19 pandemic. Staff members
anticipate completion of this task during the 2021-22 and 2022-23 fiscal year as the severity of the pandemic
decreases and restrictions lessen.

One-page fact sheets pertaining to Just Cause for Eviction, Owner Move-In evictions, the Ellis Act, and the Relocation Ordinance have been drafted and are in the process of being displayed on the Rent Program website.

Fiscal Year 2021-22 Goal Progress Towards Achievement
Develop and Execute a Comprehensive
Outreach Plan that includes, but is not
limited to, continuing to bolster our
social media presence, producing
informational, infographic, and/or
testimonial videos to highlight aspects
of the Rent Ordinance and services
provided by the Rent Program and
expanding outreach efforts to local
businesses, schools, non-profits,
neighborhood councils, and other
community stakeholders.

Progress is ongoing but was significantly impacted by
the
Covid-19 pandemic. During the 2020-21 fiscal year, the
Executive Director, in partnership with Public Information Unit staff members, spearheaded an outreach strategy to conduct site visits and make connections with local businesses, churches, and community centers. While the initiative gained momentum in the preceding fiscal year, progress was
severely stunted in Fiscal Year 2021-22 due to the risks of in- person contact remained during the Covid-19 pandemic.

Instead, outreach was primarily conducted through the
agency’s social media accounts, which proved to be an
effective means of sharing information. Informational
webinars were conducted, comprehensive fact sheets
created, podcasts recorded, and instruction videos were produced to be posted to the Rent Program website.

Launch Tenancy Registration Outreach
by beginning to mail out Notices of the
Maximum Allowable Rent (MAR) (sent
to Landlords and Tenants when
Tenancy Registration Forms are
submitted) and create a database
accessible to the public where
community members can research the
MAR for a particular Rental Unit.

Progress is ongoing
due to the limitations of remote work
during the Covid-19 pandemic. Over three-fourths of all rent- controlled tenancies have been registered to date; however, thousands of forms still need to be entered into the database.

Billing and Registration unit staff developed template forms and continue to work closely with the City’s IT department staff to ensure notices can be automatically generated and mailed to Landlords and Tenants to educate them about the Maximum Allowable Rent for their specific unit. Originally planned to be completed during the 2020-21 fiscal year, generating, and mailing of such reports was significantly delayed by the transition to remote work necessitated by the Covid-19 pandemic. Staff members anticipate initiation of this task during the 2021-22 fiscal year as the severity of the pandemic decreases and restrictions lessen. Staff is also considering a new database to transition the registration online.

Continue to improve collection of the
Rental Housing Fee (greater than 90%
compliance) through investing in
effective compliance and outreach
projects to ensure that all Rental Units
subject to the Rent Ordinance are
assessed the Rental Housing Fee and
all Landlords who should be paying the
Rental Housing Fee receive an invoice
and are made aware of their financial
obligation to the Rent Program.

On Track to Complete and compliance is ongoing. Revenue is continuously being collected. Total Rental Housing Fee
revenue is projected to approach 80% by the close of the fiscal year.

Continue to work collaboratively with
other City Departments to improve
rental housing inspection options,
seismic safety policy, enforcement of
the Relocation Ordinance, the
Richmond Rapid Response Fund (R3F)
Rent Assistance Program for

Displacement and Homelessness
Prevention, and the collection of other
City fees, such as the Business License
Tax, Fire Prevention Services Fee, and
Rental Inspection Program fee.

Progress is ongoing.

Rent Program staff continue to host
monthly meetings with the Richmond Police Department,
Code Enforcement, Richmond Housing Authority, and
Community Development Department to foster open
communication about issues pertaining to the Rent
Ordinance. In addition to monthly meetings, staff members in the Public Information and Billing and Registration Unit are frequently in communication with the Finance and Community Development Departments to streamline operations and
improve customer service provided to community members
by facilitating information sharing and identifying
opportunities for collaboration. The Finance Department currently updating their systems to invoice and credit fees for Measure U.

Continue to implement the
recommendations provided by Kevin
Harper CPA and Associates, including
monitoring budgeted versus actual
expenses and providing quarterly
reports to the Rent Board, updating the
Board’s 10-year financial projection,
and proposing budgetary policies for
the Board’s consideration.

Ongoing. Rent Program staff completes a variance report and compares budgeted revenues and expenditures monthly. The financing is currently in line with the 10-year financial projection. The Program is requesting to purchase an annual subscription to a system that’s custom to the Program’s needs. The solution will offer functions of CRM,
Billing/Invoice, Interaction Log, Registration, and Petition Management.

Proposed Fiscal Year 2022-23 Goals

The proposed Fiscal Year 2022-23 budget has been prepared for the Board’s consideration in acknowledgement of the following goals in three broad categories: Program Development, Outreach, and Program Sustainability and Compliance.

PROGRAM DEVELOPMENT:

1. Continue to invest in staff training and professional development to ensure staff members are knowledgeable on the requirements of the Rent Ordinance, Rent Board Regulations, and related State and Federal laws.

2. Continue to develop online services (e.g., filing system for the submission of Property Enrollment and Tenancy Registration forms, online appointment scheduling system, increasing Zoom counseling sessions, as well as the filing of rent increase and termination of tenancy notices).

OUTREACH:

1. Increase awareness of the Rent Ordinance by publicizing and distributing the comprehensive Guide to Rent Control in Richmond and continue to develop online outreach services (e.g., fact sheets, webinars, and podcasts on new pandemic related laws and other common topics such as Just Cause for Eviction, Owner Move- In Evictions, Rent Increases, the Rent Adjustment Petition process, the Ellis Act, and the Relocation Ordinance).

2. Expand education efforts through targeted outreach to specific groups, such as (but not limited to) tenants and providers of affordable housing, realtors, monolingual Spanish speaking households, small property owners, and problem properties (those with code violations).

3. Develop systems to produce Notices of the Maximum Allowable Rent (MAR) (sent to Landlords and Tenants when Tenancy Registration Forms are submitted), including a database accessible to the public where community members can research the MAR for a particular rental unit.

PROGRAM SUSTAINABILITY AND COMPLIANCE:

1. Provide highest level of service to the rental community. To properly administer these services, the Rent Program must continually collect the Rental Housing Fees to support the necessary operations.

2. Improve and focus on sustainability of the agency. The success of the Program is tied to the ability to retain, develop, and effectively deploy staff resources in the most effective and efficient manner possible.

3. Continue to work collaboratively with other City departments to improve rental housing inspection options, Richmond’s Rent Assistance Program, enforcement of the Relocation Ordinance, and the collection of other City fees (e.g., Business License Tax, Fire Prevention Services Fee, and Rental Inspection Program fee).

4. Continue to develop and refine the Rent Program’s database, transitioning from using the City’s TRAKiT database, to a new database solution designed to work specifically for the needs of the Rent Program. A more effective and efficient database will allow for more accurate billing, enhancing the Program’s collection rate, and improving the Program’s ability to accurately track lawful rents, Hearing’s decisions, eviction trends, etc. The anticipated long-term impact should be a decrease in overall long-term staff costs, by reducing the number of positions necessary to perform the work of the agency.

II. PROPOSED FY 2022-23 BUDGET

The figure below contains the revised Fiscal Year 2022-23 budget based on feedback provided by the Rent Board at its May 31, 2022, Special meeting. Detailed descriptions of the components within each line item are contained in the sections that follow.

Budget Notes

(1) Assumes a Fiscal Year 2021-22 Rental Housing Fee of $226 for Fully Covered units and $127 for Partially Covered units.
(2) See page 11 for detailed salary and wage assumptions. (3) The Rent Program is seeking the City to cap Total Fringe Benefits at 62% of Total Salaries and Wages.
(4) Includes $100,000 for cloud-based solution – IT charge, $20,000 for consultants to complete Cost Pool and Fringe Benefits analysis, $2,205 TRAKiT annual fee, $4,000 for a property information subscription, $3,000 for a legal research subscription, $8,000 for scheduled interpretation, $6,000 for written translation, and $250 for on-demand interpretation services.
(5) Includes $125,000 contract with the Eviction Defense Center to assist with Unlawful Detainer cases, $75,000 for a contract with Bay Area Legal Aid for the weekly Housing Rights Clinics, and $10,000 for legal filing fees in the event of litigation. (6) In accordance with City personnel policies, eligible employees may receive reimbursement of up to $800 for higher education tuition. (7) Anticipated cost of Bar Association dues for three attorneys ($550 per Attorney). (8) Budgeted amount includes funds to satisfy the requirement to publish notices in the newspaper for public hearings as part of the budget adoption process, social media promotions, and promotional materials.
(9) Budgeted amount includes the cost of email accounts for Rent Board Members, business cards, and videoconference/webinar accounts.
(10) Budgeted amount reflects anticipated postage costs for Rental Housing Fee invoices, tenancy registration mailings, and the Guide to Rent Control. (11) Budgeted amount reflects anticipated printing costs for Rental Housing Fee invoices, tenancy registration mailings, and the Guide to Rent Control. (12) Lease of copy machines including a cost-per-copy amount. 36-month lease ends in 2022.
(13) Stipends for 2 UC Berkeley Public Service Center interns, ranging from $1,000 -$1,500 per intern.
(14) Rent Program is working with the City to determine the proper methodology of Cost Pool allocation, new methodology is under review.
(15) Budgeted reserve is equal to 18 percent of total operating expenses consistent with the Rent Board's proposed Reserve Policy.

SALARIES AND WAGES
400001 – 400006
Permanent Employees
Proposed Allocation:
$1,287,802

The allocation reflects salary-related costs for all filled positions and includes a cost-of-living adjustment (COLA) for all non-exempt staff as set forth in the collective bargaining agreements with the City’s employee unions. The Deputy Director and General Counsel positions are proposed to forfeit cost-of-living adjustments in Fiscal Year 2022-23.

Position
Fiscal Year
2021-22
Salary
Fiscal Year
2022-23
Salary
Notes
Executive Director $153,336 $165,603 COLA for prior 3 fiscal years Hearing Examiner $145,380 $149,596 COLA – partial
General Counsel (formerly Staff
Attorney)
$145,380 $152,649 Reclassified from Staff
Attorney – December 2021
Deputy Director $120,000 $140,000 Hired August 2021
Staff Attorney $113,702 $117,000 COLA - partial
Subtotal Executive Staff $677,798 $724,848
Rent Program Services Analyst II $92,208 $83,724 Budgeted at Step 3 of Analyst II
Senior Administrative Analyst
(pending Personnel Board and
Council approval; budgeted
amount reflects 50% Senior
Administrative Analyst salary
schedule, Step I)

$74,244 $80,982 Reclassification from
Assistant Administrative
Analyst: Third Quarter
Rent Program Services Analyst I $70,968 $74,244 Budgeted at Step 5 of Analyst II
Senior Analyst (Personnel Board
and Council approved FY2021-22;
budgeted amount reflects Senior
Management Analyst salary
schedule)

$47,208
(50% annual
salary)
$85,896 Reallocate from Rent
Program Services Analyst
and reclassify as Senior
Analyst
Subtotal Local 21 Management
Staff
$284,628 $324,846
Administrative Aide $70,476 $70,476
Administrative Aide $32,160
(50% annual
salary)
$61,380

Hire March 2022
Administrative Aide $67,224 $70,476 Anticipated to receive regular step increase
Subtotal SEIU 1021 Staff $169,860 $202,332
Administrative Student Intern $21,518 $17,888
Administrative Student Intern $21,518 $17,888
Subtotal Part Time/Temp Staff $43,036 $35,776
TOTAL SALARIES $1,175,322 $1,287,802

SALARIES AND WAGES
400031
Overtime
Proposed Allocation:
$2,500

The allocation accounts for $2,500 for the Public Information and Enrollment Unit for work that cannot be completed during regularly scheduled hours. Most overtime hours are anticipated to be incurred during billing and registration periods, when there is a high volume of inquiries and thousands of mailers to print and assemble. The proposed allocation also accounts for overtime hours utilized during weekend or evening outreach events.

SALARIES AND WAGES
400048
Bilingual Pay
Proposed Allocation:
$11,172

The allocation accounts for the two percent (2%) salary premium granted to seven (6) bilingual staff members employed by the Rent Program. These staff members include:

 Staff Attorney (1 FTE)
 Hearing Examiner (1 FTE)
 Rent Program Services Analysts (1 FTE)
 Senior Rent Program Services Analyst (1 FTE)
 Administrative Aides (2 FTE)

SALARIES AND WAGES
400049
Auto Allowance
Proposed Allocation:
$4,200

The allocation accounts for an automobile allowance for the Executive Director, in the amount of $350 per month.

BENEFITS
400103 - 400151
Fringe Benefits
Proposed Allocation:
$809,518

The allocation accounts for benefits provided to full-time employees. Individual plan changes and/or actual rate changes during the fiscal year may affect the amount actually expended.

These benefits include:

 Health Benefits
o Health Insurance ($232,291)
o Dental Insurance ($17,520)

o Vision Insurance ($2,052)
o Employee Assistance Program ($216)
 Professional Development funds – 9 permanent employees are eligible for reimbursement of up to $750 for eligible expenses ($6,750)  Medicare Taxes ($18,207)
 Life Insurance ($4,139)
 Long-Term Disability Insurance ($12,342)
 Unemployment Insurance ($5,472)
 Workers’ Comp Insurance1
o Clerical staff ($24,001)
o Professional staff ($0)
 Other Post-Employment Benefits (OPEB) ($40,723)2
 Public Agency Retirement System (PARS) Benefits ($102)  Miscellaneous Benefits ($443,555)3

PROFESSIONAL AND ADMINISTRATIVE SERVICES
400201
Professional Services
Proposed Allocation:
$143,455

The allocation accounts for professional services provided by contractors. These services include:
 Cloud-based Solution suited for the Program’s critical needs and goals. The system will improve the efficiency, accuracy, and reliability of the critical data. The available modules consist of a CRM/Database to store all the rental unit data such as property addresses, landlord information, and activity/interaction log, which would include the history and summary of all submissions and notices filed with the Rent Program.

The system would also integrate billing/invoicing.

This will also allow online submissions of Property Enrollment forms, Tenancy Registration forms, and Rent Adjustment petitions.

1 The Rent Program is seeking for the City to cap Total Fringe Benefits at 62% of Total Salaries and Wages. No charge will be included in the budget for Worker’s Compensation for Professional staff and Worker’s Compensation for Clerical staff had been adjust for the cap. 2 According to the California Department of Human Resources, through the collective bargaining process and under the authority of Government Code 22944.5, OPEB (Other Post-Employment Benefits) is the method by which the State of California, as the employer, and its employees jointly prefund health benefits that active employees will receive as state retirees. All employees in positions that are eligible for health benefits, whether or not currently enrolled, prefund OPEB. The state prefunds a matching contribution. 3 Miscellaneous benefits refer to the employer portion of CalPERS pension costs for miscellaneous (non-sworn) staff. CalPERS costs are remitted in two parts—one being a percentage of p ayroll each pay period (object code 400149) and the other being a flat dollar amount per FTE for the unfunded liability (object code 400151).

CalPERS provides an annual valuation report that specifies these rates/dollar amounts.

Finally, the solution will allow for comprehensive counseling and petition case management. Start-up costs and first year annual subscription (estimate $100,000).

 Consultants to review and analyze Cost Pool Allocation methodology provided by the City. A proper mechanism for charging overhead costs to the Rent Program needs to be established for the administrative support provided by the City of Richmond. The Rent Program and City will mutually solicit a new consultant to prepare a separate joint study to be used for cost allocation between the two parties (estimated $20,000).

 Translation Services
o Written translation ($8,000)
o Scheduled verbal interpretation ($6,000)
o On-demand verbal interpretation ($250)

 Property Information subscription ($250 per month, plus $1,000 annually for special reports, for a total of $4,000)
 Legal Information subscription ($250 per month, for a total of $3,000)  TRAKiT End User license for Citywide database ($2,205)

PROFESSIONAL AND ADMINISTRATIVE SERVICES
400206
Legal Services
Proposed Allocation:
$210,000

The allocation accounts for legal services provided by contractors for community members.

More specifically, the allocation includes funds for two categories of legal services:

1. Community Services Agency Contracts
o The Rent Program contracts with Bay Area Legal Aid in the amount of $75,000 to offer weekly legal service clinics for both Landlords and Tenants who are Richmond residents
o The Rent Program contracts with the Eviction Defense Center in the amount of $125,000 to provide legal referrals to individuals who need assistance with responding to Unlawful Detainer (eviction) lawsuits.

2. Legal costs
o The additional costs for legal filing fees in the event of litigation.

TRAVEL AND TRAINING
400245
Tuition Reimbursement
Proposed Allocation:
$800

The allocation accounts for reimbursement for tuition reimbursement, consistent with the City’s personnel policies ($800).

DUES AND PUBLICATIONS
400261
Memberships & Dues
Proposed Allocation:
$1,650

The allocation accounts for California BAR Association dues for three attorneys ($550 per attorney).

ADVERTISING AND PROMOTION
400271
Advertising & Promotional Materials
Proposed Allocation:
$800

The allocation accounts for newspaper announcements as required as part of the budget adoption process ($200) and monthly promotion on social media accounts ($600).

ADMINISTRATIVE EXPENSES
400280
Program Supplies
Proposed Allocation:
$5,380

The allocation includes funds for supplies not classified as office supplies, including:
 Emails for Rent Board Members ($100 per month, for a total cost of $1,200)  Business cards for staff members ($50 per order, for an estimated 12 orders, for a total cost of $600)
 Zoom Accounts
o 8 Standard Accounts ($1,313)
o 3 Webinar Accounts ($2,267)

OFFICE EXPENSES
400231
Postage and Mailing
Proposed Allocation:
$17,300

The allocation includes funds for mailing invoices, letters, and the Guide to Rent Control to Tenants and Landlords. Specifically, the allocation accounts for the following projects and assumes a postage rate of $0.58 per envelope for all projects, with the exception of the Guide to Rent Control mailing, which assumes a postage rate of $0.50 per envelope:
 Rental Housing Fee invoices to 5,716 Landlords: $3,315  Late Rental Housing Fee invoices to 1,905 Landlords: $1,105  Sending the Notice of Apparent Lawful Rent Ceiling to 1,000 Tenants and Landlords:
$580
 Sending Rent Validation Reports to 1,000 Tenants and Landlords: $580  Mailing the Guide to Rent Control to 23,439 Tenants and Landlords: $11,719

OFFICE EXPENSES
400232 – 400233
Printing and Binding
Proposed Allocation:
$24,904
The allocation includes funds for printing resources for community members, as well as invoices, letters, and the Guide to Rent Control for Tenants and Landlords. Specifically, the allocation accounts for the following projects:

 General print materials: $4,000 (includes $500 in account string 400233)  Rental Housing Fee invoices to 5,716 Landlords: $286
 Late Rental Housing Fee invoices to 1,905 Landlords: $95  Printing the Notice of Apparent Lawful Rent Ceiling for 1,000 Tenants and Landlords:
$50
 Printing Rent Validation Reports for 1,000 Tenants and Landlords: $50  Printing the Guide to Rent Control for 23,439 Tenants and Landlords: $19,923

OFFICE EXPENSES
400304
Equipment Rental
Proposed Allocation:
$9,000

The allocation provides for funding for the lease of combination printers, scanners, copiers, and fax machines at City Hall. In 2019, the Rent Program, in partnership with the Richmond Promise, Arts and Culture, and Department of Infrastructure, Maintenance, and Operations, entered into a 36-month lease for two machines for the second floor of 440 Civic Center Plaza building. The cost of the lease is shared equally among participating entities, while the cost-per-copy is charged to each entity. The cost to the Rent Program is approximately $666 per month, which includes $558 for the lease of two machines and approximately $108 for cost-per-copy charges ($0.0055 per page for black and white copies; $0.048 for color.)

MISCELLANEOUS EXPENSES
400321 - 400322
Miscellaneous Contributions and Expenses
Proposed Allocation:
$4,000

The allocation provides for the Rent Program to continue to partner with the UC Berkeley Public Service Center to retain a student intern for the 2021-22 academic year. The estimated cost is approximately $2,000 per intern. The allocation also includes $2,000 for miscellaneous expenses based on minor unforeseen program needs throughout the year.

OFFICE SUPPLIES
400341
Office Supplies
Proposed Allocation:
$5,000

The Rent Program purchases office supplies through the City’s purchasing division which contracts with an office supply vendor. This allocation covers traditional office supplies necessary to maintain daily professional operations.

UTILITIES
400401
Telephone
Proposed Allocation:
$500

The allocation covers the cost of the Executive Director’s work cell phone service. During the Covid-19 pandemic, the Executive Director’s cell phone has been utilized by program staff to handle incoming calls to the main Rent Program phone line.

SUPPLEMENTAL INSURANCE
400552
General Liability Insurance
Proposed Allocation:
$9,300

The allocation covers the cost of a supplemental liability insurance policy (SLIP) for the Rent Program. More specifically, the policy accounts for Errors and Omissions and General Liability coverage.

COST POOL
400574 – 400591
General Liability, Admin Charges, Space
Proposed Allocation:
$48,217

The allocation covers General Liability, Administrative Charges, and space at City Hall for the Rent Program.

The Rent Program has been in discussions with the City of Richmond to evaluate the new methodology and accuracy of the allocation that covers General Liability and Administrative Charges. Staff reviewed the allocation for Gene ral Liability and Administrative Charges from the Finance (Budget) Department since being advised by the Finance Department that the Cost Pool amounts were anticipated to increase significantly.

The City’s new methodology must align with California law which requires fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service of the Rent Program.

Rent Program leadership are engaged in on-goin g discussions with the City Attorney’s, City Manager, Human Resources, and Finance Department regarding the budgeted Cost Pool and Fringe Benefits amounts. Rent Program st aff have reached a tentative solution and understanding with the City to hire consultants to review and analyze the Cost Pool Allocation methodology provided by the City. A proper me chanism for charging overhead costs to the Rent Program needs to be established for the ad ministrative support provided by the City of Richmond. The Rent Program and City will mutually solicit a new consultant to prepare a separate joint study to be used for cost a llocation between the tw o parties (Professional Services estimated $20,000).

 General Liability and Workers’ Compensation at a total cost of $0. The City’s new methodology must align to Section 50076 of the California Government Code which requires fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service of the Rent Program. Until this methodology has been researched and validated by consultants hired jointly with the City, no charge will be included in the budget.

 Administrative Charges (previously referred to as “Indirect Costs”) are allocated to City Departments to reimburse the General Fund for administrative services performed by central service departments (e.g. Information Technology (IT), Human Resources, Finance Department, City Manager, City Attorney, City Clerk, and City Council.) Allocations are determined in the City’s Cost Allocation Plan (CAP) which is conducted by an external consultant on a periodic basis. The Rent Program was not included in the most recent Cost Allocation Plan. The City Manager’s Office was used as the basis for the original figure in prior years. The new CAP was conducted by NBS, and the latest report dated April 25, 2022, requires further research and validation on the consultant’s findings. The City’s new methodology must align to Section 50076 of the California Government Code which requires fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service of the Rent Program. Until this methodology has been researched and validated by consultants hired jointly with the City, no charge will be included in the budget. The cost allocated in the budget is $0.

 Civic Center Allocation refers to the cost of space at 440 Civic Center Plaza. The cost of this space is based on the percentage of total occupied square footage at City Hall.

This percentage is then applied to the total annual debt service. Based on the most recent assessment conducted in 2017, the Rent Program is presumed to occupy

0.9% of the total square footage at City Hall. Since the Rent Program’s square footage has increased each year since 2017, the budgeted allocation has increased accordingly. The City anticipates conducting a new assessment in the near future, and as such, the cost of these charges may increase or decrease depending on their findings. The cost allocated in the budget is $48,217.

III. EXPENSE AND REVENUE PROJECTIONS

Overview
In accordance with the Rent Ordinance, the Rent Program’s budget is funded by a Residential Rental Housing Fee, paid by all Richmond Landlords. Table 2, below, contains a summary of funds expended and collected for departmental operations since the Program’s establishment in 2017. Collection efforts for all assessed fees are ongoing. In 2019, the Rent Board entered into a contract with a collection services agency to recover unpaid fees.

To date, the agency has collected approximately $50,000 in outstanding fee revenue. This figure is expected to grow as collection efforts continue.

Table 2. Expense and Revenue Summary

FISCAL YEAR BUDGETED
AMOUNT
FUNDS

EXPENDED

FEE REVENUE

COLLECTED
4 COLLECTION
RATE
2017-185
FY 16-17 (partial):
$1,150,433 $1,967,834 $2,753,3516 77% FY 17-18:
$2,425,338
2018-19 $2,804,925 $2,047,186 $2,192,672 78%
2019-20 $2,923,584 $2,264,738 $2,684,140 92%
2020-21 $2,896,242 $2,137,638 $2,778,234 96%
2021-22 $2,893,854 $2,178,4197 $2,362,6268 80%9 +

PROJECTED
Source: City of Richmond Rent Program, 2022 (reports generated using eTRAKiIT and MUNIS software systems.)

10-Year Financial Projection

A ten-year financial projection of revenue, expenses, and reserves is contained in Appendix B of this report. The projected Rental Housing Fee collection rate for the 2021-22 fiscal year is expected to be above 80 percent. There may be a slight decrease in the collection rate from prior years primarily attributable to the challenges posed by the Covid-19 pandemic.

Not only have many property owners experienced financial hardship because of the effects of the pandemic, but the Rent Program and City of Richmond’s ability to collect revenue has also been negatively impacted by the shift to remote work, which has significantly reduced staff time in the office and eliminated the possibility for property owners to pay the Rental Housing Fee in person at City Hall.

4 Includes revenue collected by the collection agency.
5 Includes the FY 2016-17 Rental Housing Fee (December 2016 – June 2017) 6 Includes revenue collected in FY 2017-18 for both the FY 2016-17 and FY 2017-18 fees. 7 Represents projected total expenses through the end of FY 2021-22. 8 Represents projected total revenues through the end of FY 2021-22, excluding interest. 9 Represents a collection rate based on projected expenses and revenues through the end of FY 2021-22.

IV. FISCAL YEAR 2022-23 RENTAL HOUSING FEE
STUDY

Introduction and Background

Section 11.100.060(l)(1) of the Rent Ordinance provides all Landlords shall pay a Residential Rental Housing Fee to fund the Rent Program budget. The amount of the Rental Housing Fee is established annually by the Richmond Rent Board and approved by the City Council.

Under Section 50076 of the California Government Code, fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service. Those fees must be approved by the City Council, as the legislative body, in public session.

The fee study is designed to allow the Rent Program to recover costs of all budgeted operations, including, but not limited to:

 Personnel costs of staff, benefits, and overtime;
 Risk management of general and supplemental liability insurance;  Charges allocated to City Departments to reimburse the General Fund for administrative services by central service departments (i.e. City Council, City Manager, City Attorney, City Clerk, Finance, HR, etc.);  Information Technology (IT) expenses associated with a property and rent- tracking database and maintenance of computer hardware and software;  Legal costs to support enforcement and defense of legal challenges to the Rent Ordinance;
 Costs of education and outreach, including the printing and distribution of print materials and hosting of community workshops and seminars;  Contracts for translation and other professional services;  An operating reserve to fund unanticipated costs and variations in collection of the Rental Housing Fee.

Structure of the Rental Housing Fee

Consistent with direction from the Rent Board in 2017, its first year of existence, the Fiscal Year 2016-17 and FY 2017-18 Rental Housing Fees were established as “flat fees,” applicable to all units regardless of partial or full applicability under the Rent Ordinance. This approach was utilized during the first 1.5 years of program startup since the tasks and associated benefits of the agency’s startup were reasonably shared among Rental Units regardless of status.

For the 2018-19 Fiscal Year, the Rent Board adopted a tiered fee, much like that contemplated in the 2017 Fee Study prepared by Management Partners. Under this approach, costs of program administration are allocated among three components or layers:
a general “program” layer (calculated at 55% of costs), a “just cause” layer (20% of total costs), and a “rent control” layer (25% of costs). Such allocations correspond with the

amount of resources spent administering each component of the program. Staff members recommend the Board continue to utilize a tiered-fee approach in its determination of the Fiscal Year 2022-23 Rental Housing Fee to ensure the requirements of Section 50076 of the California Government Code are met. The figure on the following page illustrates this concept and identifies key example tasks associated with each program component. This list is not exhaustive; the tasks below are identified for illustrative purposes only.

Figure 2. Fee Layers and Associated Tasks

The amount of the Rental Housing Fee applicable to a particular Rental Unit depends on its status. Units applicable to the Just Cause for Eviction requirements but exempt from the Rent Control provisions of the Ordinance (such as properties with only one dwelling unit on the parcel, governmentally subsidized units, condominiums, and permitted units built after February 1, 1995), are responsible for payment of Program and Just Cause for Eviction layers. Units subject to the Just Cause for Eviction and Rent Control provisions of the Rent Ordinance would be responsible for payment of all three layers. Units that are fully exempt from the Rent Ordinance are not responsible for payment of the Rental Housing Fee. Figure 3, below, identifies the types of units within each of these categories and the proposed fee.

Program Layer (55%)
•Agency administration and management
•Legal defense of the Rent Ordinance and agency policies •Preparing studies, regulations, and reports as directed by the Rent Board •Database development and maintenance
•Billing and collection of the Rental Housing Fee
•Website maintenance
•Development of informational materials
•Interdepartmental coordination
Just Cause for Eviction Layer (20%)
•Public education and outreach (i ncludes counseling on evictions) •Legal services referrals to community services agencies •Administration of Relocation Ordinance
•Administration of eviction-related complaints
•Evictions intervention mediations (payme nt plan agreements and mediations to avoid breach of lease/nuisance etc.)
•Processing of termination of tenancy notices and development of templates Rent Control Layer (25%)
•Public education and outreach (includes counseling)
•Legal services referrals to community services agencies •Administration of petition and hearings to adjudicate Rent Adjustment Petitions and Excess Rent Complaints
•Rent Registration and tracking of the Maximum Allowable Rent •Processing of rent increase notice s and courtesy compliance letters

Figure 3. Proposed Fees Applicable to Fully Covered, Partially Covered, and Fully Exempt Rental Units

Applicable Unit Counts and Database Development

The number of applicable Rental Units within each category is a critical input in the calculation of the Rental Housing Fees for partially and Fully Covered units. The Fiscal Year 2016-17 and 2017-18 Fee Study utilized data provided by the Contra Costa County Assessor’s Office to identify suspected Rental Units. While County Assessor data may be used to arrive at an estimated number of total Rental Units, it cannot produce an exact figure. Nevertheless, County Assessor data was the best and most readily available data at the time of the Fiscal Year 2016-17 and 2017-18 Fee Study.

Since the first iteration of the Rental Housing Fee Study in Fiscal Year 2017-18, staff have continued to refine the database of Rental Units in the City of Richmond, most notably through the completion of an exemption verification project of single-family homes in the City to accurately identify units that are truly rented. This project involved mailing an introductory letter and policy information to all single-family homes and condominiums possessing one of the following characteristics in the County Assessor database:

(1) No Homeowner’s Tax Exemption was claimed
(2) The site address of the property did not match the owner on record’s mailing address Approximately 15,500 properties met the above criteria. To confirm applicability under the Rent Ordinance, Rent Program staff members mailed information about the requirements of the Rent Ordinance to all the owners of properties that met the criteria above. Owners of $226
per Unit
$127
per Unit
$0
per Unit

properties in the City of Richmond that did not contain any Rental Units (for example, owners of condominiums that are owner-occupied) were required to complete and submit a Declaration of Owner Occupancy and/or Exemption form and submit documentation to allow staff members to approve the exemption. Rent Program staff members received and processed approximately 1,731 Declaration of Owner Occupation and/or Exemption forms.

Additional sources of data, including the identification of Rental Units not identified in the previous fee study, include:

 Rental Units enrolled in the Rent Program online at www.richmondrent.org/enroll  Rental Units identified by the Rental Inspection Program  Rental Units participating in the Section 8 Housing Choice Voucher Program  Rental Units with an active business license
 Rental Units in subsidized housing developments, such as those built with Low Income Housing Tax Credits (LIHTC), based on the inventory of deed-restricted affordable housing prepared by Rent Program staff members in 2017  Unknown Rental Units identified through Tenant inquiries and other sources to the Rent Program

Since the adoption of last year’s Rental Housing Fee, staff members have continued to refine the database of Rental Units through processing of Property Enrollment and Owner Declaration forms. These processes have further unveiled suspected Rental Units that are not truly rented, decreasing the total number of applicable Rental Units among which the Rent Program budget is divided to calculate the Rental Housing Fee. For example, the processing of Property Enrollment forms has unearthed many multifamily properties where an owner may occupy one unit. In such case, the status of a unit would be changed from “Compliant” or “Noncompliant” [Partially or Fully Covered Rental Unit] to “Owner Occupied.” The table on the following page summarizes these changes as of February 2021. In total, records indicate that the Rent Program is aware of 18,150 Rental Units applicable to the Rent Ordinance.

According to the 2019 American Community Survey (Table DP04), the number of renter- occupied housing units in Richmond is reported as 20,467 units, with a margin of error of 1,767. The American Community Survey is a sample, not a complete count, which is why the margin of error is reported. This means that there is estimated to be between 18,700 and 22,234 renter-occupied housing units in Richmond. This data suggests that there could be at least one thousand Rental Units absent from the Rent Program’s database. Rent Program staff are committed to dedicating resources to compliance and outreach projects to ensure that all Rental Units subject to the Rent Ordinance are assessed the Rental Housing Fee and all Landlords who should be paying the Rental Housing Fee receive an invoice and are made aware of their financial obligation to the Rent Program.

Table 3. Unit Status Counts, 2020 – 2022

NOTE: These numbers are continuously being verified and all figures are subject to change.

STATUS 2020
TOTAL
2021
TOTAL
2022
TOTAL
CHANGE

BETWEEN
2021
AND
2022

SUSPECTED FULLY COVERED
RENTAL UNITS 8 31 33 +2
FULLY COVERED RENTAL UNITS 7,425 7,484 7,632 +148
SUBTOTAL – FULLY COVERED UNITS 7,433 7,515 7,665 +150

SUSPECTED PARTIALLY COVERED

RENTAL UNITS (EXCLUDING GOV

SUBSIDIZED RENTAL UNITS)
120 203 124 -79

PARTIALLY COVERED RENTAL UNITS
(EXCLUDING GOV SUBSIDIZED RENTAL
UNITS)
5,568 5,497 5,863 +366
SUBTOTAL – PARTIALLY COVERED

UNITS (EXCLUDING GOV SUBSIDIZED

RENTAL UNITS)
5,688 5,700 5,987 +287

SUBTOTAL - GOVERNMENTALLY
SUBSIDIZED RENTAL UNITS 4,512 4,508 4,498 -10
TOTAL APPLICABLE UNITS 17,633 17,723 18,150 +427
OWNER OCCUPIED 5,463 5,625 5,759 +134
RENT FREE 250 259 250 -9
NOT AVAILABLE FOR RENT 317 315 265 -50
NOT APPLICABLE10 682 805 533 -272

TOTAL NON-APPLICABLE OR
CONDITIONALLY EXEMPT UNITS 6,712 7,004 6,807 -197

Rental Housing Fees Associated with Proposed FY 2022-23 Budget

Table 4, below, present the fees corresponding to the proposed Fiscal Year 2022-23 budget:

Table 4. Fiscal Year 2022-23 Proposed Budget and Rental Housing Fees

UNIT COUNTS PROPOSED FY
2022-23
CHANGE

FROM FY
2022 TO
2023
TOTAL BUDGET11 $3,062,686 +$175,923
(+6.1%)

FULLY COVERED
UNITS12 7,665 $226 +$8
(+3.5%)

PARTIALLY COVERED

UNITS (INCLUDING
SUBSIDIZED UNITS)13
10,485 $127 +$4
(+3.4%)
TOTAL REVENUE14 $3,106,686 +$168,372
(+5.7%)

Comparison to Previously Adopted Rental Housing Fee and Peer Jurisdictions

On May 4, 2021, the Richmond City Council adopted Resolution 65-20, approving the Fiscal Year 2021-22 Residential Rental Housing Fee in the City’s master fee schedule of $218 per Controlled Rental Unit and $123 per Partially Covered Rental Unit. Table 5, below, contains a historical comparison of the Residential Rental Housing Fees charged in previous years.

Table 5. Comparison of Proposed FY 2022-23 Rental Housing Fee to Prior Year Fees

FISCAL YEAR FULLY COVERED

RENTAL UNITS

PARTIALLY

COVERED RENTAL
UNITS

GOVERNMENTALLY

SUBSIDIZED RENTAL
UNITS15
2017-18 $145 $145 N/A
2018-19 $207 $100 $50
2019-20 $212 $112 N/A
2020-21 $219 $124 N/A
2021-22 $218 $123 N/A
2022-23 (Proposed) $226 $127 N/A

11 Total expenditures include a budgeted reserve equal to 18 percent of proposed expenses 12 Includes suspected Fully Covered Rental Units
13 Includes suspected Partially Covered Rental Units
14 Fees rounded to the nearest full dollar; includes revenue from collections agency and interest 15 Governmentally Subsidized Rental Units are not segregated from partially covered units. The only year in which that occurred was FY 18’-19’. As the same level of services are offered for both types of Rental Units, they are charged the same Fee.

Table 6 compiled by the Richmond Rent Program on this page compares the proposed Rental Housing Fee to fees in other jurisdictions with rent programs in the state of California.

This table calculates a per unit cost of administration, revealing that of California’s actively enforced programs. Richmond’s proposed fees are comparable to the peer jurisdictions with actively enforced rent programs, it is important to consider that Richmond’s average rental rates are also less than those in peer rent control jurisdictions.

Table 6: Comparison of Program Budgets, Unit Counts, Fees, and Median Rents in Case Study Cities

JURISDICTION
2021-22

PROGRAM
BUDGET

APPLICABLE
RENTAL
UNITS

RENTAL

HOUSING FEES
(PER UNIT)

AVERAGE
RENT16

PORTION OF

FEE PASSED

THROUGH TO

TENANTS

ACTIVELY ENFORCED RENT PROGRAMS
BERKELEY $5,822,405 19,607 $250 $3,164
50%, City may
reimburse low-
income
Tenants17

EAST PALO
ALTO $400,930 2,325 $222 $2,662 50%
OAKLAND $5,954,690 65,000 $101 $2,772 50%

RICHMOND
$3,062,686
(proposed for
FY 2022-23)

7,665 Fully
Covered Units;
10,485
Partially
Covered Units

$226 per Fully
Covered Unit; $127
per Partially
Covered Unit
(proposed for FY
2022-23)

$2,537 None
SANTA MONICA $5,505,178 26,620 $198 $3,891 50%

COMPLAINT-DRIVEN RENT PROGRAMS
LOS ANGELES $7,575,111 631,000
$90 per Fully
Covered Unit; $30
per Partially
Covered Unit
$2,661 50%
WEST
HOLLYWOOD $2,335,728 15,800 $14418 $3,354
50% (excludes
Section 8
Tenants)
ALAMEDA $1,376,529
12,174 Fully
Regulated
Units; 1,887
Partially
Regulated
Units
$148 per Fully
Regulated Unit;
$100 per Partially
Regulated Unit; $0
for Subsidized
Units
$2,560 50%
SAN
FRANCISCO $9,381,302 173,000
$59 per apartment
unit; $29.50 per
residential hotel room

$3,230 50%

16 Source: RentCafe: The average apartment per square footage varies greatly depending on unit type, with less expensive and luxury alternatives for houses and apartments alike. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments, and 3- bedroom apartments offer more square footage. Zillow Rent Index (ZRI) was used as the source in prior year. 17 Pass-through only applies to tenancies that began prior to January 1, 1999. 18 West Hollywood’s Rent Program receives support from the City’s General Fund, and the $144 fee allows the program to recover 65% of total costs. The program would need to collect $221 per unit to recover 100% of costs.

Conclusion and Recommended Actions

The revised 2022-23 budget will support the overarching goal of the Rent Program; that is, to continue to develop as an actively enforced program that equips community members with an understanding of their rights and responsibilities under the Rent Ordinance. The Fiscal Year 2022-23 Fee Study will allow the agency to recover costs of all budgeted operations and does not necessitate changing the amount of the Rental Housing Fee.

The recommendations put forth by staff for consideration by the Rent Board are as follows:

 Adopt the proposed Fiscal Year 2022-23 Budget to provide the support necessary for continued development of all Rent Program operations.

 Receive and approve the Revised Fiscal Year 2022-23 Rental Housing Fee Study.

 Direct staff to prepare a resolution, consistent with the Rent Board’s approved Fee Study and Budget, recommending to the City Council adoption of a two-tier fee structure for Fiscal Year 2022-23 of $226 for Fully Covered Rental Units and $127 for Partially Covered Rental Units.

V. UNIT DESCRIPTIONS
Management Unit (2.25 FTE)
The Management Unit, comprised of the Executive Director, Deputy Director, and Senior Administrative Analyst (0.25 FTE), is responsible for guiding the development of the Rent Program agency and managing day-to-day operations. The Senior Administrative Analyst supports the Executive Director with confidential matters of the Rent Program and administers full collaboration with the Rent Board. The Management Unit also conducts policy research to support the agency and Rent Board, which includes conducting surveys and studies to help guide administrative improvements and the formation of sound public policy. The Management Unit oversees all personnel-related issues (hiring, training, discipline in conformance with MOU’s, etc.) Other duties include providing staff support to the Rent Board, including but not limited to the preparation of agendas, minutes, and documents for all Rent Board meetings. Central to the Management Unit’s duties are preparation, monitoring, and reporting of the annual Rent Program budget. The Management Unit also publishes the Rent Program Annual Report, required by the Rent Ordinance.

Legal Unit (2.25 FTE)
The Legal Unit includes Staff Attorneys (2 FTE) and a Senior Administrative Analyst (0.25 FTE). The duties of the Legal Unit include representing the Board in litigation, advising the Director and the Rent Board on legal matters (this may include the preparation of Confidential Legal Memoranda and ensuring compliance with Brown Act requirements, reviewing and opining on decisions on appeal, coordinating responses to public records act requests, training Rent Program Services Analysts, supervising investigations and lawsuits for non-compliance, reviewing contracts, and responding to legal challenges to the Ordinance and applicable regulations. Staff members in the Legal Unit are also responsible for drafting regulations for consideration by the Rent Board and establishing processes to monitor rent increase and termination notices in accordance with the requirements of the Rent Ordinance.

Public Information and Enrollment Unit (6.75 FTE)
The Public Information and Enrollment Unit, comprised of a Senior Rent Program Services Analyst, Administrative Aides (3 FTE), Rent Program Services Analysts (2 FTE) and Administrative Student Intern (0.75 FTE), is responsible for educating community members about Landlord and Tenant rights and responsibilities under the Rent Ordinance, as well as related State and Federal laws. This includes maintenance of the agency’s property enrollment and tenancy registration database. The enrollment and tenancy registration database is an essential tool used to generate accurate Rental Housing Fee invoices, track the Maximum Allowable Rent for Controlled Rental Units, and manage contact and case information for all Rental Units in the City of Richmond. Public Information and Enrollment Unit staff members are responsible for planning and executing the annual billing cycle of the Rental Housing Fee and managing the collection of revenue, including late fees. Community education is provided in the form of one-on-one counseling, facilitating mediation sessions, drafting print materials such as the Guide to Rent Control, and providing direct referrals to community legal services agencies. Staff members in this unit also plan, prepare, and conduct monthly community educational workshops for Landlords and Tenants, maintain

the agency’s social media accounts, and assist Landlords and Tenants with the filing of Rent Adjustment Petitions.

Hearings Unit (1.75 FTE)
The Hearings Unit consists of a Hearing Examiner, who is supported by a Senior Administrative Analyst (0.5 FTE) and an Administrative Student Intern (0.25 FTE). The main functions of the Hearings Unit include administering the petition process, conducting hearings, and issuing decisions, conducting settlement conferences, acting as a back-up resource on interpretation of the Rent Ordinance and regulations, assisting with drafting public information documents such as the Guide to Rent Control and other print and online materials and maintaining all forms required for administration of the Rent Adjustment Petition process. Staff members in the Hearings Unit also assist with special projects, such as working with City staff to develop rent registration/tracking software to adjust rents in the Maximum Allowable Rent database.

VI. APPENDICES

Appendix A: Adopted FY 2022-23 Budget and Fee Study Calculations

Appendix B: Ten-year Financial Projection

FY 2022‐23 Rent Program Budget APPENDIX A
# UNITS Proposed Fee Revenue
Program
Fee
Just Cause
Fee
Rent Control
Fee
7,665 $226 $1,729,668 2022-23 87.60$ 39.53 $ 98.52 $ 10,485 $127 $1,333,019
$3,062,687
BUDGET
Object # City Account Description
FY 18-19

ACTUALS
FY 19-20

ACTUALS
FY 20-21

ACTUALS
FY 21-22

PROPOSED
FY 22-23
PROPOSED Notes
Program
Allocation
(%)
Program
Allocation ($)
Just Cause
Allocation
(%)
Just Cause
Allocation
($)
Rent Control
Allocation (%)
Rent Control
Allocation ($)

REVENUES
340445 Fees/Admin Fees 2,189,703 2,681,689 2,764,961 2,893,854 3,062,687 (1) 361701 Int & Invest/Pooled-All Other 367 11,537 6,096 14,460 14,000 364867 Revenue from Collections 133 13,042 24,796 30,000 30,000 TOTAL REVENUES 2,190,203 2,706,268 2,795,854 2,938,314 3,106,687

EXPENSES
400001 Salaries & Wages/Executive 530,092 639,594 649,356 677,798 724,848 (2) 55% 398,666 20% 144,970 25% 181,212 400002 Salaries & Wages/Mgmt-Local 21 294,152 263,080 183,838 284,628 324,846 (2) 55% 178,665 20% 64,969 25% 81,212 400003 Salaries & Wages/Local 1021 128,866 150,317 168,422 169,860 202,332 (2) 55% 111,283 20% 40,466 25% 50,583 400006 Salaries & Wages/PT-Temp 49,557 45,905 32,244 43,036 35,776 (2) 55% 19,677 20% 7,155 25% 8,944 400031 Overtime/General 4,778 2,094 1,312 2,500 2,500 55% 1,375 20% 500 25% 625 400048 Other Pay/Bilingual Pay 6,993 9,064 9,719 11,377 11,172 55% 6,145 20% 2,234 25% 2,793 400049 Other Pay/Auto Allowance 4,200 4,200 4,200 4,200 4,200 55% 2,310 20% 840 25% 1,050 400050 Other Pay/Medical-In Lieu of 2,700 1,500 - 2,400 - 55% - 20% - 25% - 400079 Comp Absences/WC-Prof-Mgt-Tec 1,486 5,328 - - - 55% - 20% - 25% - Subtotal - Salaries & Wages 1,022,823 1,121,084 1,049,091 1,195,799 1,305,674 718,120 261,135 326,418 400103 P-Roll Ben/Medicare Tax-ER Shr 14,937 16,389 15,313 15,992 18,207 (3) 55% 10,014 20% 3,641 25% 4,552 400104 P-Roll Ben/PERS Benefits - - - - - 55% - 20% - 25% - 400105 P-Roll Ben/Health Insurance Be 146,557 136,575 128,611 140,309 232,291 (3) 55% 127,760 20% 46,458 25% 58,073 400106 P-Roll Ben/Dental Insurance 16,652 17,021 17,534 15,508 17,520 (3) 55% 9,636 20% 3,504 25% 4,380 400109 P-Roll Ben/Employee Assistance 430 473 422 464 216 (3) 55% 119 20% 43 25% 54 400110 P-Roll Ben/Professional Dev-Mg 3,728 5,200 1,500 3,750 6,750 (3) 55% 3,713 20% 1,350 25% 1,688 400111 P-Roll Ben/Vision 2,106 2,095 2,049 2,052 2,052 (3) 55% 1,129 20% 410 25% 513 400112 P-Roll Ben/Life Insurance 5,557 4,006 3,433 3,713 4,139 (3) 55% 2,276 20% 828 25% 1,035 400114 P-Roll Ben/Long Term Disabilit 9,408 10,100 9,259 10,076 12,342 (3) 55% 6,788 20% 2,468 25% 3,086 400116 P-Roll Ben/Unemployement Ins 1,860 5,100 4,960 5,730 5,472 (3) 55% 3,010 20% 1,094 25% 1,368 400117 P-Roll Ben/Personal/Prof Dev 750 1,493 1,500 5,250 2,250 (3) 55% 1,238 20% 450 25% 563 400118 P-Roll Ben/Worker Comp-Injury Appt - - 692 359 - (3) 55% - 20% - 25% - 400121 P-Roll Ben/Worker Comp-Clerica 13,806 12,154 14,541 19,240 24,001 (3) 55% 13,201 20% 4,800 25% 6,000 400122 P-Roll Ben/Worker Comp-Prof 69,352 60,744 74,891 79,290 - (3) 55% - 20% - 25% - 400127 P-Roll Ben/OPEB 39,338 43,623 42,145 22,763 40,723 (3) 55% 22,398 20% 8,145 25% 10,181 400130 P-Roll Ben/PARS Benefits 642 434 50 94 - (3) 55% - 20% - 25% - 400149 P-Roll Ben/Misc 123,021 140,616 139,314 151,638 156,287 (3) 55% 85,958 20% 31,257 25% 39,072 400151 P-Roll Ben/Misc (UAL) 162,985 235,683 271,234 271,391 287,268 (3) 55% 157,997 20% 57,454 25% 71,817 Subtotal Fringe Benefits 611,127 691,706 727,447 747,618 809,518 445,235 161,904 202,380 400201 Prof Svcs/Professional Svcs 32,112 38,241 10,957 18,350 143,455 (4) 55% 78,900 20% 28,691 25% 35,864 400206 Prof Svcs/Legal Serv Cost 137,614 193,742 149,994 210,000 210,000 (5) 10% 21,000 70% 147,000 20% 42,000 400220 Prof Svcs/Info Tech Services 2,375 - 2,142 - - 55% - 20% - 25% - 400241 Travel & Trng/Meal Allowance 359 - - - - 55% - 20% - 25% - 400242 Travel & Trng/Mileage 1,284 17 - - - 55% - 20% - 25% - 400243 Travel & Trng/Conf, Mtng Trng 280 - - - - 55% - 20% - 25% - 400245 Travel & Trng/Tuition Rmb/Cert 800 800 - 800 800 (6) 55% 440 20% 160 25% 200 400261 Dues & Pub/Memberships & Dues 824 1,590 1,453 1,650 1,650 (7) 55% 908 20% 330 25% 413 400263 Dues & Pub/Subscription 1,500 - - - - 55% - 20% - 25% - 400271 Ad & Promo/Advertising & Promo Materials 1,559 2,106 1,702 5,675 800 (8) 55% 440 20% 160 25% 200 400272 Ad & Promo/Community Events 1,563 1,722 - - - 55% - 20% - 25% - 400280 Adm Exp/Program Supplies 5,292 1,600 3,432 3,950 5,380 (9) 55% 2,959 20% 1,076 25% 1,345 Subtotal Prof & Admin Services 185,563 239,819 169,680 240,425 362,085 104,647 177,417 80,021 400231 Off Exp/Postage & Mailing 10,849 5,905 6,528 22,647 17,300 (10) 55% 9,515 20% 3,460 25% 4,325 400232 Off Exp/Printing & Binding 12,071 3,295 3,428 25,807 24,404 (11) 55% 13,422 20% 4,881 25% 6,101 400233 Off Exp/Copying & Duplicating 46 - 236 500 500 55% 275 20% 100 25% 125 400304 Rental Exp/Equipment Rental 8,721 4,532 2,488 8,000 9,000 (12) 55% 4,950 20% 1,800 25% 2,250 400321 Misc Exp/Misc Contrib 3,000 - 1,500 3,000 2,000 (13) 55% 1,100 20% 400 25% 500 400322 Misc Exp/Misc Exp 3,061 2,262 - 2,925 2,000 55% 1,100 20% 400 25% 500 400341 Off Supp/Office Supplies 8,721 6,024 1,891 6,795 5,000 55% 2,750 20% 1,000 25% 1,250 400344 Off Supp/Computer Supplies 18 783 - - - 55% - 20% - 25% - Subtotal Other Operating 46,486 22,801 16,072 69,674 60,204 33,112 12,041 15,051 400401 Utilities/Tel & Telegraph 254 414 551 500 500 55% 275 20% 100 25% 125 400538 Contract Svcs/Other Contract Svcs - - 103 - - 55% - 20% - 25% - 400552 Prov Fr Ins Loss/Ins Gen Liab 8,029 8,765 9,047 9,300 9,300 55% 5,115 20% 1,860 25% 2,325 400574 Cost Pool/(ISF)-Gen Liab 55,701 75,144 69,513 79,937 - (14) 55% - 20% - 25% - 400586 Cost Pool/(CAP)-Admin Charges 51,454 51,454 51,454 52,481 - (14) 55% - 20% - 25% - 400591 Cost Pool/(IND)Civic Ctr Alloc 52,420 47,026 50,289 50,286 48,217 55% 26,519 20% 9,643 25% 12,054 400601 Noncap Asst/Comp Hrdware<5K - 6,526 - 10,800 - 55% - 20% - 25% - 400604 Noncap Asst/Furniture <5K 13,328 - - - - 55% - 20% - 25% - TOTAL EXPENSES 2,047,186 2,264,738 2,143,246 2,456,820 2,595,497 1,333,024 624,099 638,374 OPERATING RESERVE 560,985 424,794 420,821 429,944 467,190 (15) 55% 256,954 20% 93,438 25% 116,797 TOTAL BUDGET 2,804,925 2,923,584 2,896,242 2,886,764 3,062,687 1,589,978 717,537 755,172 Notes:
(1) Assumes a Fiscal Year 2022-23 Rental Housing Fee of $226 for Fully Covered unit and $127 for Partially Covered units (2) See page 11 of the budget and fee study report for detailed salary and wage assumptions (3) The Rent Program is seeking the City to cap Total Fringe Benefits at 62% of Total Salaries and Wages. (4) Includes $100,000 for cloud-based solution - IT charge, $20,000 for consultants - Cost Pool and Fringe Benefits, $2,205 TRAKiT annual fee, $4,000 for a property information subscription, $3,000 for a legal research subscription, $8,000 for scheduled interpretation, $6,000 for written translation, and $250 for on-demand interpretation services. (5) Includes $125,000 contract with the Eviction Defense Center to assist with Unlawful Detainer cases, $75,000 for a contract with Bay Area Legal Aid for the weekly Housing Rights Clinics, and $10,000 for legal filing fees in the event of litigation.
(6) In accordance with City personnel policies, eligible employees may receive reimbursement of up to $800 for higher education tuition. (7) Anticipated cost of Bar Association dues for three attorneys ($550 per Attorney). (8) Budgeted amount includes funds to satisfy the requirement to publish notices in the newspaper for public hearings as part of the budget adoption process and social media promotions. (9) Budgeted amount includes the cost of email accounts for Rent Board Members, business cards, and videoconference/webinar accounts. (10) Budgeted amount reflects anticipated postage costs for Rental Housing Fee invoices, tenancy registration mailings, and the Guide to Rent Control. (11) Budgeted amount reflects anticipated printing costs for Rental Housing Fee invoices, tenancy registration mailings, and the Guide to Rent Control. (12) Lease of copy machines including a cost-per-copy amount. 36-month lease ends in 2022. (13) Stipends for UC Berkeley Public Service Center interns, ranging from $1,000 -$1,500 per intern. (14) Rent Program is working with the City to determine the proper methodology of Cost Pool allocation, new methodology is under review. (15) Budgeted reserve is equal to 18 percent of total operating expenses consistent with the Rent Board's proposed Reserve Policy.

ADOPTED FY 2022 - 2023 RENT PROGRAM BUDGET AND FEE STUDY

FEE STUDY
1Page 163 of 252
City of Richmond Rent Program
10-Year Financial Projections
As of April 2022
APPENDIX 2
Object # City Account Description 2018-19 2019-20 2020-21 2021-22 2021-22 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 REVENUES Actual to 3/31/22 Projected Total
340445 Fees/Admin Fees (a) 2,189,703 2,681,689 2,764,961 2,225,353 104,431 2,329,784 3,062,687 3,093,314 3,155,180 3,218,284 3,282,649 3,348,302 3,415,268 3,483,574 3,553,245 361701 Int & Invest/Pooled-All Other 367 11,537 6,096 3,668 1,542 5,210 14,000 14,280 14,566 14,857 15,154 15,457 15,766 16,082 16,403 364867 Revenue from Collections 133 13,042 24,796 17,426 10,206 27,632 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Total Revenues 2,190,203 2,706,268 2,795,854 2,246,447 116,179 2,362,626 3,106,687 3,137,594 3,199,746 3,263,141 3,327,803 3,393,759 3,461,035 3,529,655 3,599,648

EXPENSES
Salaries & Wages
400001 Salaries & Wages/Executive 530,092 639,594 649,356 501,534 175,535 677,069 724,848 739,345 754,132 769,214 784,598 800,290 816,296 832,622 849,275 400002Salaries & Wages/Mgmt-Local 21 294,152 263,080 183,838 106,525 35,508 142,033 324,846 331,343 337,970 344,729 351,624 358,656 365,829 373,146 380,609 400003Salaries & Wages/Local 1021 128,866 150,317 168,422 103,883 36,490 140,373 202,332 206,379 210,506 214,716 219,011 223,391 227,859 232,416 237,064 400006 Salaries & Wages/PT-Temp 49,557 45,905 32,244 25,690 9,970 35,660 35,776 36,492 37,221 37,966 38,725 39,500 40,290 41,095 41,917 400031 Overtime/General 4,778 2,094 1,312 1,251 542 1,793 2,500 2,550 2,601 2,653 2,706 2,760 2,815 2,872 2,929 400048 Other Pay/Bilingual Pay 6,993 9,064 9,719 5,854 1,956 7,810 11,172 11,395 11,623 11,856 12,093 12,335 12,581 12,833 13,090 400049 Other Pay/Auto Allowance 4,200 4,200 4,200 3,150 1,050 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 400050 Other Pay/Medical-In Lieu of 2,700 1,500 - - - - - - - - - - - - - 400058 OTHER PAY/Bonuses - - - 34,200 - 34,200 - - - - - - - - - 400079 Comp Absences/WC-Prof-Mgt-Tec 1,486 5,328 - - - - - - - - - - - - - Subtotal - Salaries & Wages 1,022,823 1,121,084 1,049,091 782,086 261,052 1,043,138 1,305,674 1,331,703 1,358,253 1,385,334 1,412,957 1,441,132 1,469,871 1,499,184 1,529,084 Fringe Benefits 400103 P-Roll Ben/Medicare Tax-ER Shr 14,937 16,389 15,313 11,377 3,801 15,178 18,207 18,570 18,940 19,318 19,703 20,096 20,497 20,905 21,322 400104 P-Roll Ben/PERS Benefits - - - - - - - - - - - - - - - 400105 P-Roll Ben/Health Insurance Be 146,557 136,575 128,611 117,105 42,264 159,369 232,291 236,922 241,645 246,463 251,378 256,390 261,503 266,718 272,038 400106 P-Roll Ben/Dental Insurance 16,652 17,021 17,534 9,858 3,408 13,265 17,520 17,869 18,226 18,589 18,960 19,338 19,723 20,117 20,518 400109 P-Roll Ben/Employee Assistance 430 473 422 198 43 241 216 220 225 229 234 238 243 248 253 400110 P-Roll Ben/Professional Dev-Mg 3,728 5,200 1,500 - - - 6,750 6,885 7,022 7,162 7,305 7,450 7,599 7,750 7,905 400111 P-Roll Ben/Vision 2,106 2,095 2,049 1,159 401 1,560 2,052 2,093 2,135 2,177 2,221 2,265 2,310 2,356 2,403 400112 P-Roll Ben/Life Insurance 5,557 4,006 3,433 2,491 835 3,326 4,139 4,222 4,306 4,392 4,479 4,568 4,660 4,752 4,847 400114 P-Roll Ben/Long Term Disabilit 9,408 10,100 9,259 5,566 1,309 6,875 12,342 12,588 12,839 13,095 13,356 13,622 13,894 14,171 14,454 400116 P-Roll Ben/Unemployement Ins 1,860 5,100 4,960 3,175 1,305 4,480 5,472 5,581 5,692 5,806 5,922 6,040 6,160 6,283 6,408 400117 P-Roll Ben/Personal/Prof Dev 750 1,493 1,500 - - - 2,250 2,295 2,341 2,387 2,435 2,483 2,533 2,583 2,635 400118 P-Roll Ben/Worker Comp-Injury Appt - - 692 - - - - - - - - - - - 400121 P-Roll Ben/Worker Comp-Clerica 13,806 12,154 14,541 5,886 2,040 7,926 24,001 24,479 24,968 25,465 25,973 26,491 27,019 27,558 28,108 400122 P-Roll Ben/Worker Comp-Prof 69,352 60,744 74,891 35,268 12,241 47,508 - - - - - - - - - 400124 P-Roll Ben/CON-MEDICL EE Share - - - - - - - - - - - - - - 400127 P-Roll Ben/OPEB 39,338 43,623 42,145 29,429 10,153 39,582 40,723 41,535 42,363 43,208 44,069 44,948 45,844 46,758 47,691 400130 P-Roll Ben/PARS Benefits 642 434 50 274 130 404 - - - - - - - - - 400149 P-Roll Ben/Misc 123,021 140,616 139,314 94,260 32,508 126,768 156,287 159,403 162,581 165,822 169,129 172,501 175,941 179,450 183,029 400151 P-Roll Ben/Misc (UAL) 162,985 235,683 271,234 192,396 64,905 257,301 287,268 292,995 298,836 304,795 310,872 317,071 323,394 329,843 336,422 Subtotal Fringe Benefits 611,127 691,706 727,447 508,443 175,340 683,783 809,518 825,656 842,117 858,907 876,033 893,502 911,320 929,494 948,032 Prof & Admin Services
400201Prof Svcs/Professional Svcs 32,112 38,241 10,957 7,491 4,166 11,657 143,455 146,324 149,251 152,236 155,280 158,386 161,554 164,785 168,080 400206Prof Svcs/Legal Serv Cost 137,614 193,742 149,994 139,578 62,498 202,076 210,000 214,200 218,484 222,854 227,311 231,857 236,494 241,224 246,048 400220Prof Svcs/Info Tech Services 2,375 - 2,142 - - - - - - - - - - - - 400241Travel & Trng/Meal Allowance 359 - - - - - - - - - - - - - - 400242Travel & Trng/Mileage 1,284 17 - - - - - - - - - - - - - 400243Travel & Trng/Conf, Mtng Trng 280 - - - - - - - - - - - - - - 400245Travel & Trng/Tuition Rmb/Cert 800 800 - - - - 800 800 800 800 800 800 800 800 800 400261Dues & Pub/Memberships & Dues 824 1,590 1,453 1,197 1,043 2,240 1,650 2,400 2,448 2,497 2,547 2,598 2,650 2,703 2,757 400263Dues & Pub/Subscription 1,500 - - - - - - - - - - - - - - 400271Ad & Promo/Advertising & Promo 1,559 2,106 1,702 3,928 3,087 7,016 800 816 832 849 866 883 901 919 937 400272Ad & Promo/Advertising & Promo 1,563 1,722 - - - - - - - - - - - - 400280Adm Exp/Program Supplies 5,292 1,600 3,432 934 468 1,402 5,380 5,487 5,597 5,709 5,823 5,940 6,058 6,180 6,303 Subtotal Prof & Admin Services 185,563 239,819 169,680 153,128 71,262 224,390 362,085 370,027 377,412 384,944 392,627 400,464 408,457 416,610 424,926 Other Operating
400231Off Exp/Postage & Mailing 10,849 5,905 6,528 14,222 3,628 17,850 17,300 17,646 17,999 18,359 18,726 19,100 19,482 19,872 20,270 400232Off Exp/Printing & Binding 12,071 3,295 3,428 735 175 910 24,404 24,892 25,390 25,898 26,416 26,944 27,483 28,033 28,593 400233Off Exp/Copying & Duplicating 46 - 236 - - - 500 510 520 531 541 552 563 574 586 400304Rental Exp/Equipment Rental 8,721 4,532 2,488 1,928 808 2,736 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 400321Misc Exp/Misc Contrib 3,000 - 1,500 1,500 1,500 3,000 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 400322Misc Exp/Misc Exp 3,061 2,262 - 173 - 173 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 400341Off Supp/Office Supplies 8,721 6,024 1,891 5,802 3,022 8,824 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 400344Off Supp/Computer Supplies 18 783 - - - - - - - - - - - - - Subtotal Other Operating 46,486 22,801 16,072 24,360 9,133 33,493 60,204 61,408 62,636 63,889 65,167 66,470 67,800 69,156 70,539 400401Utilities/Tel & Telegraph 254 414 551 407 136 543 500 510 520 531 541 552 563 574 586 400538Contract Svcs/Other Contract Svcs - - 103 150 150 301 - - - - - - - - - 400552 Prov Fr Ins Loss/Ins Gen Liab 8,029 8,765 9,047 8,991 1,076 10,067 9,300 9,486 9,676 9,869 10,067 10,268 10,473 10,683 10,896 400574 Cost Pool/(ISF)-Gen Liab 55,701 75,144 69,513 59,954 19,983 79,937 - - - - - - - - - 400586 Cost Pool/(CAP)-Admin Charges 51,454 51,454 51,454 39,361 13,120 52,481 - - - - - - - - - 400591 Cost Pool/(IND)Civic Ctr Alloc 52,420 47,026 50,289 37,713 12,573 50,286 48,217 49,181 50,165 51,168 52,192 53,235 54,300 55,386 56,494 400601 Noncap Asst/Comp Hrdware<5K - 6,526 - - - - - - - - - - - - - 400604 Noncap Asst/Furniture <5K 13,328 - - - - - - - - - - - - - - TOTAL EXPENSES 2,047,186 2,264,738 2,143,143 1,614,594 563,826 2,178,419 2,595,497 2,647,972 2,700,779 2,754,643 2,809,583 2,865,623 2,922,783 2,981,087 3,040,557 Net Operating Surplus 143,017 441,530 652,711 631,853 (447,646) 184,207 511,190 489,622 498,966 508,498 518,220 528,136 538,251 548,568 559,092 Starting Fund Balance 178 125,341 509,296 425,157 584,010 1,065,200 1,544,822 2,033,789 2,532,287 3,038,506 3,551,643 4,074,894 4,608,462 Annual Contribution to Reserves - - 500,000 25,354 30,000 10,000 10,000 10,000 12,000 15,000 15,000 15,000 15,000 RESERVE BALANCE $ - - 500,000 525,354 630,000 640,000 650,000 660,000 672,000 687,000 702,000 717,000 732,000 RESERVE BALANCE % - - 23% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% Minimum Necessary Starting Fund Balance (b) 363,070 432,583 441,329 450,130 459,107 468,264 477,604 487,131 496,848 506,759 Historical Actuals Projection

July 5, 2022

Economic Development

DATE: July 5, 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:

Ballot Approval to Renew the Downtown Richmond
Property and Business Improvement District
FINANCIAL IMPACT: No immediate financial impact is caused by this action. If DRPBID renewal is approved by 50 percent or more of
the returned property owner ballots and the City adopts the resolution to renew the DRPBID, the City’s annual
assessment for fiscal year 2022-2023 would be
$39,305.10.

PREVIOUS COUNCIL
ACTION:

May 3, 2022 & May 17, 2022

STATEMENT OF THE
ISSUE:

City staff is requesting the City Council conduct the
noticed Public Hearing to consider adopting of a
Resolution renewing the Downtown Richmond Property
and Business Improvement District (DRPBID), approving
the assessment formula, and levying the assessments.

RECOMMENDED ACTION:

ADOPT a resolution renewing the Downtown Richmond
Property and Business Improvement District (DRPBID),
approving the assessment formula, and levying the
assessments – City Manager’s Office (Shasa
Curl/Thomas Omolo/Lizeht Zepeda 620-6512).

AGENDA
REPORT

July 5, 2022
DISCUSSION:

The Richmond Main Street Initiative and Downtown Richmond Property Business Improvement District (DRPBID) property owners have proposed a renewal of the DRPBID to provide 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. The Richmond City Council authorized the City Manager to sign a petition supporting DRPBID renewal and including City property in the DRPBID on May 17, 2022.

The City of Richmond is a significant property owner in this area and City staff is requesting City Council continue to support the DRPBID. 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 DRPBID including the assessment rate, service plan, collection provisions, and governance (Attachment 2).

The DRPBID assessment rate (cost to the parcel owner) is based on parcel type and square footage. The initial annual assessment rate applied to commercial parcels is $0.15 per square foot per year and applied to non-profit housing parcels is $0.08 per square foot per year. Assessment rates may be subject to an increase of no more than three percent (3%) per year. 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 (Attachment 2).

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, including the City of Richmond, owning parcels in the DRPBID has made such a demonstration. City-owned parcels within the DRPBID will receive special benefits from the full range of DRPBID activities and improvements and will therefore be assessed at the full commercial rate, commensurate with the degree of special benefit.

The resolution renewing the DRPBID may be adopted by City Council after holding a public hearing on the proposed renewal if fifty percent (50%) or more of the ballots received (weighted by assessment) are in support of DRPBID renewal. City staff recommends holding the final hearing and ballot count on July 5, 2022. This date is in compliance with the legally required minimum 45-day return period for property owner ballots. The assessment, if renewed, would be placed on property tax bills; thus, the hearing must be held no later than July 31, 2022, to comply with the county assessor’s deadline.

July 5, 2022
DOCUMENTS ATTACHED:

Attachment 1 – Resolution Renewing the DRPBID, Approving the Assessment Formula, and Levying the Assessments
Attachment 2 – Management District Plan

RESOLUTION NO. _________ - ____________

A RESOLUTION OF THE RICHMOND CITY COUNCIL

RENEWING THE DOWNTOWN RICHMOND PROPERTY AND

BUSINESS IMPROVEMENT DISTRICT, APPROVING THE

ASSESSMENT FORMULA, AND LEVYING THE ASSESSMENTS

WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq. authorizes cities to renew property and business improvement districts upon petition by a weighted majority of property owners within the renewed district and affirmative ballot; and

WHEREAS, a majority of the property owners subject to assessment, weighted according to the amount of assessment to be paid by each property owner, have petitioned the City Council to renew the Downtown Richmond Property and Business Improvement District (“DRPBID”); and

WHEREAS, on May 17, 20 22, the City Council adopted Resolution No. 923, which was the Resolution of Intention to renew the DRPBID; and

WHEREAS, on July 5, 2022, the City Council conducted a public hearing at 6:30 PM at 440 Civic Center Plaza, Richmond, CA 94804, with respect to the renewal of the DRPBID; and

WHEREAS, all written and oral protests made or filed were duly heard, evidence for and against the proposed action was received, and a full, fair and co mplete hearing was granted and held; and

WHEREAS, pursuant to California Constitution Article XIII D, ballots were mailed to property owners within the boundaries of the DRPBID, and, among those ballots returned to the City, a weighted majority of the pr operty owners within the DRPBID have approved renewal of the DRPBID; and

WHEREAS, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California, Ross Peabody , in support of the DRPBID’s assessments, has been prepared, is incorporated in the Management District Plan, and is on file with the Office of the City Clerk and is incorporated herein by this reference (“Engineer’s Report”).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RICHMOND RESOLVES:

1. The recitals set forth herein are true and correct.

2. The Downtown Richmond Property and Business Improvement District is hereby renewed and the annual assessment is hereby levied for each year of the entire term of the DRPBID. The initial annual assessment will total approximately $239,990.60.

3. The Management District Plan and the Engineer’s Report are hereby approved.

4. The assessment shall be imposed on properties within the DRPBID. The boundaries of the DRPBID gene rally include parcels along portions of Macdonald Avenue from 6th Street (in the west) to the BART tracks (in the east); portions of 8 th 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).

5. Assessment rates are as follows: The initial annual assessment rate applied to commercial parcels is $0.15 per square foot per year, and applied to non-profit housing parcels is $0.08 per square foot per year. Assessment rates may be subject to an increase of no more than three percent (3%) per year.

6. The Assessment Roll for the Downtown Richmond Property and Business Improvement District, Richmond, State of California has been filed with the City Clerk, and is hereby approved.

7. The assessments shall be collected in accordance with Section 36631 of the Streets and Highways Code.

8. The assessment levied for the DRPBID shall be applied towards economic revitalization and maintenance programs, including Maintenance, Safety and Nuisance Abatement; Marketing, Promotions and Business Development; Capital Improvements; and related administration.

9. Bonds shall not be issued.

10. Properties with in the DRPBID are subject to any amendments to Part 7 (commencing with Section 36600) to Division 18 of the Streets and Highways Code.

11. The improvements and activities to be provided in the DRPBID will be funded by the levy of the assessments specifie d in the assessment roll. The revenue from the levy of such assessments shall not be used to provide improvements or activities outside the DRPBID or for any purpose other than the purposes specified in the Resolution of Intention and Management District Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the DRPBID boundaries to create a special benefit to the assessed parcels may be provided, but shall be limited to marketing or signage pointing to the DRPBID.

12. All property within the DRPBID will be benefited specially and directly by the improvements and activities funded by the assessments proposed to be levied.

13. The City Clerk is directed to take all necessary actions to complete the renewal of the DRPBID. The City Clerk is directed to record in the County Recorder’s Office a notice and assessment diagram as required by Streets and Highways Code section 36627.

14. If any section, subsection, sentence, clause or phrase of this resolution is for an y reason held to be invalid or unconstitutional by the decision of any court of competent

jurisdiction, such decision shall not affect the validity of the remaining portions of the resolution.

The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more of the sections, subsections, sentences, clauses or phases hereof be declares invalid or unconstitutional.

15. This resolution shall take effect immediately.

I HEREBY CERTIFY that the foregoing Resolution of Intention was introduced and adopted at a regular meeting of the City Council on the _____ day of July 2022 by the following vote:

AYES: Council MEMBERS:

NOES: Council MEMBERS:

ABSENT: Council MEMBERS:

ABSTAIN: Council MEMBERS:

__________________
___
Mayor
ATTEST:

_____________________

CITY CLERK

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