MEETING(S) - (Meetings are virtual)
REGULAR RICHMOND HOUSING AUTHORITY
REVISED REGULAR RICHMOND CITY COUNCIL AGENDA
Tuesday, September 20, 2022, 5:00 p.m.
Community Services Building
440 Civic Center Plaza
Richmond, CA 94804
Members:
Thomas K. Butt, Mayor
Demnlus Johnson III, Councilmember at Large
Nathaniel Bates, Councilmember at Large
Claudia Jimenez, Councilmember District 6
Eduardo Martinez, Vice Mayor at Large
Melvin Willis, Councilmember District 1
Gayle McLaughlin, Councilmember District 5
Jaycine Scott, Housing Authority Tenant Commissioner
Link to City Council Agendas/Packets
http://www.ci.richmond.ca.us/4157/City-ofRichmond-Council-Meetings Register to receive notification of new agendas, etc.
http://www.ci.richmond.ca.us/list.aspx
CORONAVIRUS DISEASE (COVID-19) ADVISORY
PURSUANT to the Governor of the State of California’s Assembly Bill 361 and in the interest of the public health and safety, attendance at the City of Richmond City Council meeting will be limited to Council members, essential City of Richmond staff, and members of the news media. Public comment will be confined to items appearing on the agenda and will be limited to the methods provided below.
How to watch the meeting from home:
KCRT – Comcast Channel 28 or AT&T Uverse Channel 991.
Livestream online at http://www.ci.richmond.ca.us/3178/KCRT-Live2.
Public comment may be submitted by mail, eComment, email and/or Zoom video conference in the manner that follows, provided that no member of the public may submit more than one verbal comment per agenda item.
Via mail: received by 1:00 p.m. the day of the meeting, sent to 450 Civic Center Plaza, 3rd Floor, Office of the Clerk, Richmond, CA 94804.
Via eComments: eComments are available once an agenda is published. Locate the meeting in "upcoming meetings" and click the comment bubble icon. Click on the item you wish to comment on. eComments can be submitted when the agenda is published and until the conclusion of public comments for the agenda item. eComments can be viewed by the City Council and members of the public as they are submitted.
Email your comment to [email protected] should you have difficulty submitting an eComment during a meeting.
Via email: to [email protected] by 1:00 p.m. the day of the meeting.
Emails MUST contain in the subject line 1) public comments – Open Session prior to Closed Session; 2) public comments – Open Forum; or 3) public comments agenda item #__ [include the agenda item number]. All such email with correctly labeled subject lines will be posted on-line and emailed to the City Council before the meeting is called to order. Email received after 1:00 p.m. will be posted on-line following the meeting as part of the supplemental materials attached to the meeting minutes.
Via Zoom by video conference: for Open Session and City Council: Please click the link below to join the webinar:
https://zoom.us/j/99312205643?pwd=MDdqNnRmS2k4ZkRTOWhlUldQOUF1Zz09 Passcode: ccmeeting
By iPhone one-tap: US: +16699006833,,99312205643# or +13462487799,,99312205643# By Telephone: Dial (for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 312 626 6799 or +1 929 205 6099 or +1 301 715 8592 Webinar ID: 993 1220 5643
International numbers available: https://zoom.us/u/aehrwCgISx
CC MTG 9-20-22
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 [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.
CC MTG 9-20-22
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.
Pages
CC MTG 9-20-22
A. OPEN SESSION TO HEAR PUBLIC COMMENT BEFORE CLOSED SESSION 5:00 p.m.
B. ROLL CALL
C. CLOSED SESSION
.
C.1. CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6)
Agency Representatives: Jaclyn Gross and Sharrone Taylor 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 LEGAL COUNSEL - EXISTING LITIGATION (paragraph (1) of Subdivision [d] of Government Code Section 54956.9) Medina v. City of Richmond•
Arriaga v. City of Richmond•
Richmond Shoreline Alliance v. City of Richmond•
East Bay Regional Park District v. City of Richmond•
SPRAWLDEF et al. v. City of Richmond•
The Guidiville Rancheria of California, et al. v. The United States of America, et. al.
•
North Coast Rivers Alliance et al./Point Molate Alliance et al. v. City of Richmond
•
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C.3. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8)
Property: 12th and Macdonald
Agency Negotiators: Dave Aleshire, Lina Velasco, Jesus Morales Negotiating parties: SAA-EVI Richmond Partners, LLC
Under negotiation: Price and terms of payment
•
Property: South 45th Street to the west, Wall Avenue to the south, Interstate 80 to the east, and the BART tracks to the north Agency negotiator: Anita Luck, Lina Velasco, Jesus Morales Negotiating parties: Miraflores Community Devco, LLC
Under negotiation: Price and terms of payment
•
C.4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to paragraph (2) or (3) of Subdivision (d) [as applicable] of Government Code Section 54956.9) Three cases:•
In light of the California Court of Appeal's decision in Fowler v. City of Lafayette, the City Attorney's Office is attaching to this agenda four communications regarding the amended judgment and various agreements related to Point Molate. These letters provide the existing facts and circumstances for going into closed session on these items pursuant to California Government Code Section 54956.9(d)(2) and (e)(3).
D. PUBLIC COMMENT BEFORE CLOSED SESSION (public comment limited to items on the Closed Session agenda only)
E. ADJOURN TO CLOSED SESSION
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F. SPECIAL MEETING OF THE RICHMOND HOUSING AUTHORITY
6:25 p.m.
G. ROLL CALL
H. PUBLIC COMMENT INSTRUCTIONAL VIDEO
I. STATEMENT OF CONFLICT OF INTEREST
J. AGENDA REVIEW
K. HOUSING AUTHORITY CONSENT CALENDAR
K.1. Continued use of teleconference technology 11
ADOPT a resolution requiring the continued use of teleconferencing for the meetings of the Board of Commissioners of the Richmond Housing Authority pursuant to the provisions of AB 361 – City Clerk’s Office (Pamela Christian 510-620-6513).
L. ADJOURNMENT
_______________________________________________________ CC MTG 9-20-22
M. REGULAR MEETING OF THE RICHMOND CITY COUNCIL
6:30 p.m.
N. ROLL CALL
O. STATEMENT OF CONFLICT OF INTEREST
P. AGENDA REVIEW
Q. REPORT FROM THE CITY ATTORNEY OF FINAL DECISIONS MADE DURING
CLOSED SESSION
R. REPORT FROM THE CITY MANAGER (public comment allowed under Open Forum) S. REPORT FROM REIMAGINING TASK FORCE - 3rd Tuesday (public comment allowed under Open Forum)
T. OPEN FORUM FOR PUBLIC COMMENT
U. CITY COUNCIL CONSENT CALENDAR
U.1. City Clerk's Office
U.1.a. Continued Use of Teleconferencing 15
ADOPT a resolution requiring the continued use of teleconferencing for the meetings of all City legislative bodies pursuant to the provisions of Assembly Bill 361 – City Clerk’s Office (Pamela Christian 510-620-6513).
U.2. City Council
U.2.a. Amend the Local Urgency Eviction Moratorium to Indicate that the Ordinance Will Not Apply to Owner Move-ins and Instead Owner Move-ins Will be Regulated by the Original Rent Program Ordinance. 19 DIRECT City staff to draft an amendment to the Urgency Eviction Moratorium ordinance (by the end of October) to add a provision within the ordinance that allows for Owner Move-ins during the remainder of this moratorium - Councilmembers Gayle McLaughlin (510-620-6636) and Claudia Jimenéz (510-620-6565).
U.3. Finance Department
U.3.a. Annual Review and Adoption of Financial Policies for Fiscal Year 2022-23 (Cash Reserve, Debt, Investment, OPEB Funding, SWAP and Grant Management)
28 REVIEW and ADOPT the Financial Policies (Cash Reserve, Debt, Investment, OPEB Funding, SWAP and Grant Management) and resolutions for Fiscal Year 2022-2023 – Finance Department (Delmy Cuellar 510-620-6740).
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U.4. Human Resources
U.4.a. Resolution Granting the City Manager Authority to Amend the City’s Position Control List to Add Deputy Director of Public Works – City Engineer.
96 ADOPT a resolution granting the city manager permission to amend the current position control list to reallocate the Deputy Director of Public Works - Operations and Maintenance as Deputy Director of Public Works - City Engineer – City Manager’s Office/Human Resources Department (Shasa Curl/Sharrone Taylor 510-620-6602).
U.5. Library and Community Services
U.5.a. Contract with Rebuilding Together East Bay-North for Resilience Hubs
100
APPROVE a sole-source contract with Rebuilding Together East Bay-North, in an amount not to exceed $90,000, to procure and mobilize equipment for the power hubs project, with a term from October 1, 2022, through June 30, 2023 – Library and Community Services Department (LaShonda White/Stephanie Ny 510-620-6563).
U.6. Mayor's Office
U.6.a. Drive Electric Week – September 23 – October 2, 2022 130 PROCLAMATION declaring September 23 – October 2, 2022, as Drive Electric Week in the City of Richmond – Mayor’s Office (Mayor Tom Butt 510-620-6503).
U.7. Police Department
U.7.a. Pre-Employment Background Investigations Companies for Police Department Applicants
133
APPROVE contracts with three vendors: James Anthony Carroll Investigations; Moreland Investigations; and T Jung Investigations, for the purpose of providing background investigations for sworn and non-sworn Police Department applicants, for a total combined amount of $180,000, not to exceed $60,000 per vendor, over the entire three-year contract term of October 1, 2022, through September 30, 2025 – Police Department (Chief Bisa French 510- 621-1802).
U.7.b. Out of State Travel Approval for the Police Chief to attend the International Association of Chiefs of Police Conference in Texas 275
APPROVE the out of state travel request to Texas, as an exception to Resolution 91-17, to allow for the Police Chief to attend the 2022 International Association of Chiefs of Police Conference which includes several presentations that align with the travel exception list – Police Department (Chief Bisa French 510-621-1802).
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U.8. Public Works
U.8.a. Proposed Contract with Advance Crime Scene Restoration 278 APPROVE a three-year contract with Advance Crime Scene
Restoration to manage biohazardous cleanups, in an amount not-to- exceed $117,000, with a term beginning September 1, 2022, and ending September 1, 2025, with a $75,500 two-year option to renew – Public Works Department (Joe Leach 510-620-5478).
U.8.b. Playground Resurfacing Contract 307
APPROVE a contract in the amount of $269,519 with SpectraTurf for playground resurfacing, with a contract term from September 21, 2022, to June 30, 2023; and APPROPRIATE budget using fund balance – Public Works Department (Joe Leach 620-5478/Greg Hardesty 620-6920).
V. NEW BUSINESS
V.1. Special Cases at Rydin Road 343
DIRECT City staff to coordinate efforts with County services to get the identified residents connected with the necessary service providers by October 31, 2022 – Vice Mayor Eduardo Martinez (510-620-6593)
V.2. Distribution of the Initial $50,000 Funds To Rydin Road Residents by a Service Provider.
345
APPROVE a sixth contract amendment and APPROPRIATE $50,000 to Housing Consortium of the East Bay (HCEB) to support residents’ sunsetting from Rydin Road, which was previously appropriated to Community Development; and APPROVE an option for the criteria HCEB shall use to distribute $50,000, in a total not to exceed $250,000 in flex funds; and CONSIDER the extension of the HCEB contract and sunset date to October 21, 2022 – City Manager’s Office (Shasa Curl 510-620-6512).
W. REPORTS OF OFFICERS: REFERRALS TO STAFF, AND GENERAL REPORTS (INCLUDING AB 1234 REPORTS)
X. ADJOURNMENT
________________________
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September 20, 2022
City Clerk's Office
DATE: September 20, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Pamela Christian, City Clerk
Subject:
Continued use of teleconference technology
FINANCIAL IMPACT: There will be no fiscal impact associated with this action.
PREVIOUS COUNCIL
ACTION:
December 21, 2021, January 18, 2022, February 15,
2022, March 15, 2022, April 19, 2022, May 17, 2022, June 21, 2022, July 19, 2022, August 19, 2022
STATEMENT OF THE
ISSUE:
In order for the Board of Commissioners of the Richmond Housing Authority to continue conducting virtual meetings and comply with the provisions of the Brown Act it is
necessary for the Board of Commissioners of the
Richmond Housing Authority to make findings verifying
the need for the continuation of virtual meetings.
RECOMMENDED ACTION:
ADOPT a resolution requiring the continued use of
teleconferencing for the meetings of the Board of
Commissioners of the Richmond Housing Authority
pursuant to the provisions of AB 361 – City Clerk’s Office (Pamela Christian 510-620-6513).
AGENDA
REPORT
September 20, 2022
DISCUSSION:
Background
Beginning in March of 2020, the Governor issued a series of Executive Orders relaxing certain provisions of the Brown Act in response to the COVID-19 pandemic. In short, those orders allowed local governments to conduct their meetings 100% remotely, so long as members of the public still had the ability to view, listen and comment on items on the agenda. The most recent of these orders expired on September 30, 2021. On September 16, 2021, the governor signed into law AB 361, an urgency measure (meaning it became effective immediately) which largely continues the executive orders allowing for remote meetings. The Governor subsequently issued an order making the provisions of AB 361 effective beginning October 1, 2021.
Analysis of Assembly Bill (AB) 361
AB 361 contains several requirements in order to continue the use of remote meetings.
These include:
● There must be a state of emergency declared under the California Emergency Services Act. This effectively means the Governor must have declared the emergency. ● During the state of emergency, either state or local officials have imposed or recommended measures to promote social distancing, or that meeting in person would present an imminent risk to the health or safety of attendees. ● In order to continue to utilize remote meetings, the Council must reconsider the factors above every 30 days and adopt specified findings that the fact relied upon still exist.
As the attached resolution spells out, the State of California is still under an emergency declaration regarding COVID-19, and both state and local health officials continue to recommend social distancing to help stop the spread of the virus. The resolution requires that all meetings of the Board of Commissioners of the Richmond Housing Authority will be held using teleconferencing technology The Board of Commissioners of the Richmond Housing Authority will continue to update the findings every 30 days, in compliance with AB 361.
DOCUMENTS ATTACHED:
Attachment 1- Resolution requiring the continued use of teleconferencing for the meetings of all the Board of Commissioners of the Richmond Housing Authority pursuant to the provisions of AB 361
Reso. No.
RESOLUTION NO.
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING
AUTHORITY OF THE CITY OF RICHMOND, CALIFORNIA, MAKING FINDINGS
REQUIRING THE CONTINUED USE OF TELECONFERENCING FOR MEETINGS
OF THE BOARD OF COMMISSIONERS OF THE RICHMOND HOUSING
AUTHORITY PURSUANT TO THE PROVISIONS OF AB 361
WHEREAS in response to the COVID-19 pandemic, the Governor adopted a series of Executive Orders allowing the legislative bodies of local governments to meet remotely via teleconference through September 30, 2021, so long as other provisions of the Ralph M. Brown Act (“Brown Act”) were followed; and
WHEREAS, on September 16, 2021, the Governor signed into law as an urgency measure, Assembly Bill (AB) 361 a bill that amends the Brown Act to allow local policy bodies to continue to meet by teleconferencing during a state of emergency without complying with restrictions in state law that would otherwise apply, provided that the policy bodies make certain findings at least once every 30 days; and
WHEREAS, the Board of Commissioners of the Richmond Housing Authority has considered the current state of health guidance related to public meetings in Contra Costa County and finds it necessary to continue with remote meetings for the next 30 days to promote public health and safety; and
WHEREAS, the entire State of California remains under a proclaimed state of emergency as declared by the Governor of the state of California related to the COVID-19 pandemic; and
WHEREAS, the California Department of Public Health continues to require the use of face coverings in indoor settings in order to help stop the spread of the virus.
WHEREAS, the Health Officer for Contra Costa County published “Recommendations for Safely Holding Public Meetings” on September 20, 2021, that “strongly recommend” online meetings, and that local agencies should provide options for the public to participate without having to attend meetings in person, and that social distancing should be used for any in-person meetings, including six feet of spacing between all in attendance; and
WHEREAS, the Board of Commissioners of the Richmond Housing Authority has met remotely during the COVID-19 pandemic and can continue to do so in a manner that allows public participation and transparency while minimizing health risks to members, staff, and the public who would be present with in-person meetings while this emergency continues.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY OF RICHMOND, COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA THAT the Board of Commissioners of the Richmond Housing Authority finds as follows:
1. As described above, the State of California, the County of Contra Costa and the City of Richmond remain in a state of emergency due to the COVID-19 pandemic. At this meeting the Board of Commissioners of the Richmond Housing Authority has considered the circumstances of the state of emergency; and
2. As described above State and County officials continue to recommend measures to promote physical distancing and other social distancing measures, in some settings; and
3. As described above meetings of this body in person would present imminent risks to the safety of attendees, and the state of emergency continues to directly impact the ability of members to meet safely in public; and:
Reso. No.
BE IT FURTHER RESOLVED THAT That, based on the findings required by Government Code section 549539(e), as amended by AB 361, the Board of Commissioners of the Richmond Housing Authority requires the continued use of teleconferencing for the next 30 days for all public meetings of the Board of Commissioners of the Richmond Housing Authority; and
BE IT FURTHER RESOLVED, That all public meetings of the Board of Commissioners of the Richmond Housing Authority conducted by teleconferencing technology shall provide an opportunity for members of the public to address the body and otherwise occur in a manner that protects all statutory and constitutional rights of the public attending the meeting via teleconferencing, and;
BE IT FURTHER RESOLVED That the Clerk of the Board of Commissioners of the Richmond Housing Authority is directed to place a resolution substantially similar to this resolution on the agenda of a future meeting of the Board of Commissioners of the Richmond Housing Authority within the next 30 days.
**************************
The foregoing resolution was passed and adopted by the Commissioners of the Housing Authority of the City of Richmond at a regular meeting thereof held on September 20, 2022, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Chairperson
[SEAL]
Attest:
Secretary
Approved as to form:
Interim City Attorney
September 20, 2022
City Clerk's Office
DATE: September 20, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Pamela Christian, City Clerk
Subject:
Continued Use of Teleconferencing
FINANCIAL IMPACT: There is no additional financial impact.
PREVIOUS COUNCIL
ACTION:
December 21, 2021, January 18, 2022, February 15,
2022, March 15, 2022, April 19, 2022, June 21, 2022, July 19, 2022, August 19, 2022
STATEMENT OF THE
ISSUE:
In order for the City Council to continue conducting virtual meetings and comply with the provisions of the Brown
Act, it is necessary for the City Council to make findings verifying the need for the continuation of virtual meetings.
RECOMMENDED ACTION:
ADOPT a resolution requiring the continued use of
teleconferencing for the meetings of all City legislative bodies pursuant to the provisions of Assembly Bill 361 – City Clerk’s Office (Pamela Christian 510-620-6513).
AGENDA
REPORT
September 20, 2022
DISCUSSION:
Background
Beginning in March of 2020, the Governor issued a series of executive orders relaxing certain provisions of the Brown Act in response to the COVID-19 pandemic. In short, those orders allowed local governments to conduct its meetings one hundred percent remotely, so long as members of the public still had the ability to view, listen and comment on items on the agenda. The most recent of these orders expired on September 30, 2021.
On September 15, 2021, the governor signed into law AB 361, an urgency measure (meaning it became effective immediately) which largely continues the executive orders allowing for remote meetings. The Governor subsequently issued an order making the provisions of AB 361 effective beginning October 1, 2021.
Analysis of Assembly Bill (AB) 361
AB 361 contains several requirements in order to continue the use of remote meetings.
These include:
● There must be a state of emergency declared under the California Emergency Services Act. This effectively means the Governor must have declared the emergency.
● During the state of emergency, either state or local officials have imposed or recommended measures to promote social distancing, or that meeting in person would present an imminent risk to the health or safety of attendees. ● In order to continue to utilize remote meetings, the Council must reconsider the factors above every 30 days and adopt specified findings that the fact relied upon still exist.
As the attached resolution spells out, the State of California is still under an emergency declaration regarding COVID-19, and both state and local health officials continue to recommend social distancing to help stop the spread of the virus. The resolution applies to all of the City’s legislative bodies (as defined by the Brown Act) and will remain in effect for the next 30 days. The city will continue to update the findings every 30 days, in compliance with AB 361.
DOCUMENTS ATTACHED:
Attachment 1- Resolution requiring the continued use of teleconferencing for the meetings of all City legislative bodies pursuant to the provisions of AB 361
Reso. No.
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA,
MAKING FINDINGS REQUIRING THE CONTINUED USE OF
TELECONFERENCING FOR MEETINGS OF ALL CITY OF RICHMOND
LEGISLATIVE BODIES PURSUANT TO THE PROVISIONS OF AB 361
WHEREAS, in response to the COVID-19 pandemic, the Governor adopted a series of Executive Orders allowing the legislative bodies of local governments to meet remotely via teleconference through September 30, 2021, so long as other provisions of the Ralph M. Brown Act (“Brown Act”) were followed; and
WHEREAS, on September 16, 2021, the Governor signed into law as an urgency measure, AB 361 a bill that amends the Brown Act to allow local policy bodies to continue to meet by teleconferencing during a state of emergency without complying with restrictions in state law that would otherwise apply, provided that the policy bodies make certain findings at least once every 30 days; and
WHEREAS, on behalf of all legislative bodies of the City of Richmond that are subject to the Brown Act, the Richmond City Council has considered the current state of health guidance related to public meetings in Contra Costa County and finds it necessary to continue with remote meetings for the next 30 days to promote public health and safety; and
WHEREAS, the entire State of California remains under a proclaimed state of emergency as declared by the Governor of the state of California related to the COVID-19 pandemic; and
WHEREAS, the California Department of Public Health continues to require the use of face coverings in indoor settings in order to help stop the spread of the virus.
WHEREAS, the Health Officer for Contra Costa County published “Recommendations for Safely Holding Public Meetings” on September 20, 2021 that “strongly recommend” online meetings, and that local agencies should provide options for the public to participate without having to attend meetings in person, and that social distancing should be used for any in- person meetings, including six feet of spacing between all in attendance; and
WHEREAS, the City Council and all other legislative bodies of the City of Richmond have met remotely during the COVID-19 pandemic and can continue to do so in a manner that allows public participation and transparency while minimizing health risks to members, staff, and the public who would be present with in-person meetings while this emergency continues.
NOW, THEREFORE, BE IT RESOLVED, That the City Council of the City of Richmond finds as follows:
1. As described above, the State of California, the County of Contra Costa and the City of Richmond remain in a state of emergency due to the COVID-19 pandemic. At this meeting the Richmond City Council has considered the circumstances of the state of emergency; and
2. As described above State and County officials continue to recommend measures to promote physical distancing and other social distancing measures, in some settings; and
3. As described above meetings of this body in person would present imminent risks to the safety of attendees, and the state of emergency continues to directly impact the ability of members to meet safely in public; and:
BE IT FURTHER RESOLVED That, based on the findings required by Government Code section 549539(e), as amended by AB 361, the City of Richmond requires the continued use of teleconferencing for the next 30 days for all public meetings of the Richmond City Council and all City of Richmond boards, commissions, committees and subcommittees subject to the Brown Act; and
Reso. No.
BE IT FURTHER RESOLVED, That all City public meetings subject to the Brown Act conducted by teleconferencing technology shall provide an opportunity for members of the public to address the body and otherwise occur in a manner that protects all statutory and constitutional rights of the public attending the meeting via teleconferencing, and;
BE IT FURTHER RESOLVED That the City Clerk is directed to place a resolution substantially similar to this resolution on the agenda of a future meeting of the City Council within the next 30 days.
*********************
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 September 20, 2022, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
Mayor
Approved as to form:
Interim City Attorney
September 20, 2022
City Council
DATE: September 20, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Councilmembers Gayle McLaughlin and Claudia Jimenéz
Subject:
Amend the Local Urgency Eviction Moratorium to Indicate that the Ordinance Will Not Apply to Owner Move-ins and Instead Owner Move-ins Will be Regulated by the Original Rent
Program Ordinance.
FINANCIAL IMPACT: There is no financial impact to the City of Richmond for this item
PREVIOUS COUNCIL
ACTION:
An urgency ordinance was passed by the City Council on March 23, 2021, enacting a temporary moratorium on certain evictions of residential tenants in Richmond impacted by the COVID-19 pandemic through the state of the local emergency and sixty days thereafter.
https://www.ci.richmond.ca.us/DocumentCenter/View/57404/Or dinance-02-21-NS
STATEMENT OF THE
ISSUE:
Certain property owners in recent months have repeatedly contacted the City of Richmond stating that they have a critical need to move back into their homes that are currently rented to a tenant. At present, the eviction moratorium ordinance disallows owner move-ins. If we remove owner move-ins from this ordinance, there will still be regulations on owner move-ins, such as payment of relocation fees to the tenant. This item directs City staff to amend the eviction moratorium ordinance to allow for owner move-ins.
AGENDA
REPORT
September 20, 2022
RECOMMENDED
ACTION:
DIRECT City staff to draft an amendment to the Urgency
Eviction Moratorium ordinance (by the end of October) to add a provision within the ordinance that allows for Owner Move-ins during the remainder of this moratorium - Councilmembers Gayle McLaughlin (510-620-6636) and Claudia Jimenéz (510- 620-6565).
DISCUSSION:
On March 23, 2021, the Richmond City Council adopted an urgency ordinance to enact a temporary moratorium on certain evictions of residential tenants to provide these tenant protections during the Local Emergency and 60 days thereafter.
Local, county, and state emergency ordinances are still in place and will likely remain in place until early 2023.
Currently, there are some property owners in Richmond who have health reasons and other critical needs such that they need to move back into their homes/units. As per the Rent Program staff, there have been several property owners who have inquired about owner move-ins over the last six (6) months.
This item directs City staff to come back to City Council by the end of October with an amendment to our Eviction Moratorium Ordinance that allows for owner move-ins consistent with the regulations as defined in the Richmond Fair Rent, Just Cause for Eviction & Homeowner Protection Ordinance.
If possible, this amendment should be an urgency ordinance so that in-need property owners can begin immediately to follow the regulated process to move back into their units/homes. This process includes providing the tenant with relocation fees, plus other stipulations.
DOCUMENTS ATTACHED:
Attachment 1 – Ord. 02-21 N.S – Temporary moratorium on certain evictions of residential tenants impacted by the COVID-19 pandemic.
September 20, 2022
Finance Department
DATE: September 20, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Delmy Cuellar, Director of Finance
Mubeen Qader, Budget Administrator
Subject:
Annual Review and Adoption of Financial Policies for
Fiscal Year 2022-23 (Cash Reserve, Debt, Investment,
OPEB Funding, SWAP and Grant Management)
FINANCIAL IMPACT: The adoption of and adherence to financial policies can be measured by factors such as:
•Minimizing borrowing costs;
•Better management of the City's debt and investment
portfolios;
•Providing fiscal security during times of unforeseen
economic downturns; and
•Paying down the City’s unfunded liability annually.
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
City Staff is requesting that City Council review and
approve the City’s annual Financial Policies (Cash
Reserve, Debt, Investment, OPEB Funding, SWAP and
Grant Management)
RECOMMENDED ACTION:
REVIEW and ADOPT the Financial Policies (Cash
Reserve, Debt, Investment, OPEB Funding, SWAP and
Grant Management) and resolutions for Fiscal Year
2022-2023 – Finance Department (Delmy Cuellar 510-
620-6740).
AGENDA
REPORT
September 20, 2022
DISCUSSION:
Cash Reserve Policy
Municipal governments provide a wide range of services that have an impact on public safety and quality of life for community members. Prudent use of resources helps determine how effectively these services are provided on an ongoing basis. In addition to managing revenues and expenditures, it is also the municipal finance official’s responsibility to focus on the General Fund balance and maintain cash reserves. In particular, to maintain operations in case of any significant event that could cause disruptions in cash flow, such as an economic downturn or natural disaster.
Determination of the appropriate level of General Fund reserves is a policy decision.
Some general guidelines have been suggested in governmental finance literature. The Governmental Finance Officers Association (GFOA) recommends that reserve levels be directly related to the degree of uncertainty the local government faces. As a general guideline, the GFOA recommends a minimum level of unrestricted fund balance equal to two months of regular revenues or regular expenditures.
The Cash Reserve Policy identifies a year end cash balance equal to fifteen – twenty percent (15-20%), slightly more than two months of General Fund total expenditures including transfers out as the minimum needed to provide stability against potential volatility of revenues and uneven cash flows.
Debt Policy
The foundation of any well-managed debt program is a comprehensive debt policy. A debt policy sets forth the parameters for issuing debt and managing the debt portfolio, including post-issuance compliance. In the credit rating process, the rating agencies believe it is appropriate to place significant value on debt policies that have been adopted by cities.
The City's Debt Policy requires that annual commitments relating to General Fund debt not to exceed ten percent (10%) of annual General Fund revenues.
Investment Policy
The City of Richmond Investment Policy is an integral part of the Finance Department, setting standards and procedures regarding how the City's funds are invested. The Investment Policy is consistent with the guidelines of the California Municipal Treasurers Association (CMTA) Certification Program. The policy addresses the 19 sections that the Association deems as critical elements, which are as follows:
1. Policy
2. Scope
3. Prudence
4. Objective
September 20, 2022
5. Delegation of Authority
6. Ethics and Conflicts of Interest
7. Authorized Financial Dealers and Institutions
8. Authorized and Suitable Investments
9. Review of Investment Portfolio
10. Investment Pools/Mutual Funds
11. Collateralization
12. Safekeeping and Custody
13. Diversification
14. Maximum Maturities
15. Internal Controls
16. Performance Standards
17. Reporting
18. Investment Policy Adoption
19. Glossary
The Investment Policy provides for the City to invest public funds in a manner which will provide the highest investment return, with maximum security, while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. It further provides that the policy shall be reviewed annually and adopted by resolution of the City Council.
OPEB Funding Policy
The City provides medical benefits to retirees. The benefit is paid monthly to the retiree, subject to proof of coverage and attestation of premium payment, and generally ceases upon death of the retiree. Unlike the expenses associated with pension benefits, the City has historically chosen to pay its OPEB expenses as they come due (the monthly reimbursements to retirees) rather than as they are earned. These annual “pay-as-you- go” benefit expenses have increased over the last five years, are expected to continue growing at that pace as more active employees retire and as healthcare costs increase.
Payment of OPEB expenses as they come due, rather than as they are earned, results in the accumulation of unfunded liability for the future benefit. To estimate that liability, and to calculate the annual contribution required to pay down that liability over a specified amortization period (the actuarial determined contribution, ADC), the City’s actuary prepares an OPEB valuation annually.
Effective as of January 17, 2017, the City and Richmond Police Officers Association (RPOA) agreed on separating and maintaining two separate OPEB Plans. The RPOA OPEB plan was established in June 2019 with CalPERS. All current RPOA employees and future retirees after January 17, 2017, belong to the RPOA OPEB Plan. All other City active members and Retirees belong to the City OPEB Plan with Public Agency Retirement Services (PARS).
The City’s OPEB valuation, as of July 1, 2021, estimated an unfunded actuarial accrued liability (UAAL) of $103.79 million, $90.80 million for City OPEB plan and $12.99M for RPOA OPEB plan. In May 2022, the City’s Actuary estimated and projected an ADC of
September 20, 2022
$12.48 million consisting of $10.23M for the City Plan and $2.25M for the RPOA plan for FY22-23.
Based on the City’s current efforts to pay down the UAAL by contributing annually to the OPEB trusts established with PARS and CalPERS, the City has managed to have an ending balance of $31.1M in PARS and $7.4M in CalPERS as of June 30, 2022.
Staff recommends that the City Council continue pre-funding the City’s OPEB liabilities by directing the City Manager to continue contributing the ADC minus the pay-as-you-go costs into the Trusts to pay down the City’s unfunded liability annually.
SWAP Policy
As of April 20, 2021, the City adopted a guiding fiscal policy which prohibits the use of interest rate swaps when issuing debt (section VII Debt Management). Therefore, the Interest Rate Swap Policy in the paragraph below relates only to interest rate swap agreements entered into prior to April 20, 2021, and prohibits the City from that date forward from entering into swap agreements on currently held and future debt. The Policy does not prohibit the renegotiation of current swap agreement terms as long as the renegotiation does not involve entering into another swap agreement.
Since the scope of interest rate swaps is beyond that of the traditional fixed rate long term bonds covered by the Debt Policy, it is important for the City to maintain a policy that will provide guidance in selecting, implementing and administering all swaps related to City bond issues. Standard & Poor's Rating Agency assigns Debt Derivative Profile (DDP) scores to individual swap transactions, with the lowest score of "1" equating to no risk and highest score of "4" meaning "high risk". By adhering to the guidelines established in its Swap Policy, the City has successfully achieved a DDP score of "1.5" (low risk) on all of its swap transactions.
Grant Management Policy
The City of Richmond continues its practice of taking advantage of granting opportunities to support operations, programs, and capital improvement projects. Major sources of grant awards are federal, state, and local agencies, and private organizations. A grant’s scope is determined by the policy goals of the grantor, and the grantee is obligated to deliver services through successful execution of the provisions.
Each grant has unique features based on the funding source and scope of work. City staff members at any given time are managing grants from different sources with a range of scopes including but not limited to capital improvement and operational.
The purpose of this policy is to set forth an overall framework for guiding the City’s use and management of grant resources. The Government Finance Officers Association (GFOA) recommends that governments develop a formal grants policy. The proposed revised policy was drafted according to the GFOA’s best practices and provides guidance on steps in the grant life cycle, including grant application, execution, and closeout.
September 20, 2022
DOCUMENTS ATTACHED:
Attachment 1 – Resolution Adopting Fiscal Year 2022-23 Cash Reserve Policy Attachment 2 – Fiscal Year 2022-23 Cash Reserve Policy
Attachment 3 – Resolution Adopting the Fiscal Year 2022-23 Debt Policy Attachment 4 – Fiscal Year 2022-23 Debt Policy
Attachment 5 – Resolution Adopting the Fiscal Year 2022-23 Investment Policy Attachment 6 – FY2022-23 Investment Policy
Attachment 7 – Resolution Adopting Fiscal Year 2022-23 OPEB Funding Policy Attachment 8 – Fiscal Year 2022-23 OPEB Funding Policy
Attachment 9 – Resolution Adopting Fiscal Year 2022-23 Swap Policy Attachment 10 – Fiscal Year 2022-23 Swap Policy
Attachment 11 – Resolution Adopting Fiscal year 2022-23 Grant Management Policy Attachment 12 – Fiscal Year 2022-23 Grant Management Policy
Reso No.____
RESOLUTION NO. _____
RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA,
ADOPTING THE CASH RESERVE POLICY
WHEREAS, the City of Richmond has determined that an appropriate level of the General Fund reserves is a policy decision; and
WHEREAS, the Governmental Finance Offi cers As sociation recommends that reserve levels be directly related to the degree of uncertainty the local government faces; and
WHEREAS, the Cash Reserve Policy identifies an ending cash balance equal to fifteen – twenty percent (15-20%) of total General Fund expenditures as the minimum needed to provide stability against potential volatility of revenues and uneven cash flows; and
WHEREAS, City Council approval is required before any withdrawals from cash reserves, which should be used for one-time emergencies only and not to be used for ongoing expenditures; and
WHEREAS, as the City experiences net revenue gains in future years, cash reserves must grow back to a minimum fifteen – twenty percent (15-20%) of total General Fund expenditures; and
WHEREAS, the adoption of the Cash Reserve Policy is consistent with “best practices” and the City Council’s fiduciary oversight of fiscal policies.
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby adopts the Cash Reserve Policy for the City of Richmond that is attached hereto as Exhibit A.
Reso No.____
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 September 20, 2022, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
____________________________________
CLERK OF THE CITY OF
RICHMOND
(SEAL)
Approved:
_________________________________
Mayor
Approved as to Form:
_________________________________
City Attorney
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No._____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on ____________.
Cash Reserve Policy of the City of Richmond
1 Cash Reserve of the City of Richmond
Established by the Finance Department
Fiscal Year 2022-2023
1. Overview
Municipal governments provide a wide range of services that have an impact on public safety and quality of life for community members. Prudent use of resources helps determine how effectively these services are provided on an ongoing basis. In addition to managing revenues and expenditures, it is also the municipal finance official’s responsibility to focus on the General Fund bal ance and maintain ca sh reserves. In particular, to maintain operations in case of any significant event that could cause disruptions in cash flow, such as an economic downturn or natural disaster.
The City of Richmond endeavors to maintain adequate reserves in its General Fund as a matter of fiscal prudence and sound financial management: This policy will guide the City in:
Planning for contingencies and unexpected events;
Ensuring cash availability to stabilize cash flow;
Maintaining creditworthiness;
Long-range financial planning; and
Deciding when to use reserves and how to replenish reserves should they fall below the minimum threshold
2. Policy Guidelines
For purposes of this policy document, cash reserves refer to the sum of the Committed, Assigned, and Unassigned portions of the fund balance in the General Fund. The Governmental Accounting Standards Board Statement No. 54 (GASB 54) defines five distinct classifications of fund balances, applicable to governmental funds only, as follows:
CLASSIFICATION NATURE OF DESIGNATION
Non-Spendable Cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to remain intact
Restricted Restricted either externally imposed or imposed by law through constitutional provisions or enabling legislation Committed Reserved f or specific purposes pursuant to constraints imposed by formal action of the City Council
Assigned Reserved by the City Council or City Manager f or specific purposes, but neither restricted nor committed
Cash Reserve Policy of the City of Richmond
2 Unassigned Residual balance not classified in any of the above categories and has not been restricted, committed, nor
assigned to specific purposes
The City shall maintain year end contingency reserv e balances in the General Fund of a minimum fifteen – twenty percent (15-20%) of next year’s budgeted General Fund expenditures including transfers out. This is the minimum needed to maintain the City’s creditworthiness and to adequately provide for economic and legislative uncertainties, cash flow needs and contingencies. A policy based upon percentage assures that the reserve will remain a prudent cushion as the City’s budgets grow over time.
City Council approval is required before any withdrawals from the reserve fund. The City Council shall have the discretion to use the reserve for one -time emergencies only and not to be used for ongoing expenditures. As the City experiences net revenue gains in future years, the reserve balan ce must grow back to a minimum of fifteen – twenty percent ( 15-20%) of total expenditures, in order to allow the City to build up its capacity to handle future short term economic downturns or emergencies with minimal to no impact to City services.
The Director of Finance will review the Cash Reserve Policy annually in connection with the City’s annual budget process to ensure that the City is in compliance with the policy .
Additionally, the City Manager will review the policy at regular intervals and will make recommendations for modification as deemed appropriate.
Reso No.____
RESOLUTION NO. ____
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA , ADOPTING THE DEBT POLICY FOR FISCAL YEAR 202 2-23
WHEREAS, the City of Richmond (the "City") is a charter city that operates under the Council-Manager form of government for the purposes of providing a full range of municipal services including police and fire protection; construction and maintenance of highways, streets and infrastructure; library services; storm water and municipal sewer systems; a wastewater treatment facility; and the administration of recreational activities and cultural events; and
WHEREAS, the City also operates the Richmond Memorial Convention Center and the Port of Richmond; and
WHEREAS, the City has established and maintains a well-managed debt program pursuant to a comprehensive debt policy that sets forth the parameters for issuing debt and managing the debt portfolio, including post-issuance compliance; and
WHEREAS, in the credit rating process, the rating agencies believe it is appropriate to place significant value on debt policies that have been adopted by cities; and
WHEREAS, the City established a Debt Policy that requires annual commitments relating to the General Fund debt cannot exceed ten percent (10%) of current General Fund revenues; and
WHEREAS, the City has determined that an appropriate level of the General Fund reserves is a policy decision; and
WHEREAS, the GFOA recommends that reserve levels be directly related to the degree of uncertainty the local government faces; and
WHEREAS, the adoption of the financial policies listed in this document is consistent with "best practices" and the City's fiduciary oversight of the Fiscal Policies of FY2022-23.
NOW THEREFORE BE IT RESOLVED, that the City Council hereby adopts the Debt Policy for the City of Richmond that is attached hereto as Exhibit A.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Reso No.____
I 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
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No._____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on ____________.
Table of Contents
City of Richmond
Debt Policy
Fiscal Year 2022-23
1. Introduction ..............................................................................................................................................2
2. Policy Purpose ..........................................................................................................................................2
3. CDIAC Reporting/Debt Policy Requirements ............................................................................................3
4. Scope of Application .................................................................................................................................3
5. Types and Purposes of Debt .....................................................................................................................4
5.1. Long-Term Debt ..............................................................................................................................4
5.2. Short-Term Debt .............................................................................................................................5
5.3. Refunding Financing .......................................................................................................................6
5.4. Other Debt ......................................................................................................................................6
6. Integration with Planning Goals and Objectives ......................................................................................7
7. Internal Control Policies ...........................................................................................................................7
8. Debt Approval Procedures .......................................................................................................................8
9. Debt Limitations .......................................................................................................................................8
10. Methods of Sale ....................................................................................................................................8
10.1. Competitive Sale .............................................................................................................................8
10.2. Negotiated Sale ...............................................................................................................................9
10.3. Private Placement ...........................................................................................................................9
11. Debt Structuring Practices.....................................................................................................................9
11.2. All Bonds .........................................................................................................................................9
11.3. Variable Rate Bonds ..................................................................................................................... 10
12. Derivatives Policy ............................................................................................................................... 10
13. Permitted Investments ....................................................................................................................... 11
14. Professional Assistance ...................................................................................................................... 11
15. Ongoing Debt Administration ............................................................................................................ 12
City of Richmond
Debt Policy
Fiscal Y ear 2022-23
1. Introduction
The City of Richmond (the City), through the Finance Department, executes debt instruments, administers debt proceeds, manages ongoing disclosure and debt compliance, and makes debt service payments, acting with prudence and diligence and with attention to prevailing economic conditions. The City believes th at debt is an equitable means of financing projects and represents an important means of meeting fiscal responsibilities.
The Debt Policy primarily addresses debt instruments/securities issued by the City in public or private bond markets. This is consistent with examples of debt policies of other comparable municipalities, GFOA guidelines, and rating agency guidelines. The debt policies pertain to debt that is typically incurred when capital is raised in the public or private markets, including borrowings from sophisticated qualified institutional buyers, to meet the City’s funding needs. Such debt constitutes obligations whereby a third-party has provided funds, which is evidenced by the formal execution of a bond or certificate (or a similar instrument), and is held by the third-party until it is repaid.
The Debt Policy does not cover other obligations like contracts payable, notes payable, arbitrage liability, and net pension liability and/or pension unfunded accrued actuarial liability and Other Post-Employment Benefits (OPEB) unfunded accrued actuarial liability. The City’s Annual Comprehensive Financial Report (ACFR) provides a complete list of the outstanding long -term obligations. The sections in the ACFR listing the long-term obligations are:
Governmental Activities Long-Term Debt Obligations; Business Type Activities Long-Term Debt Obligations; Special Assessment Debt without City Commitment; and Conduit Debt . Consistent with GASB standards, the net pension liability is reflected in Notes 10 and 11 of the ACFR as a long-term liability. OPEB-related obligations are reflected in Note 12.
The Debt Policy outlines the City’s procedures and goals for the use of debt to finance City needs. This Debt Policy is enacted in an effort to standardize and plan the issuance and management of debt by the City. While the Debt Policy serves as a guideline for general use, from time to time, however, compelling or extraordinary circumstances may arise that require the City Council, at the recommendation of the Finance Department, to deviate from this policy.
Appendices of this Debt Policy consist of: Appendix A: Investment Policy, Appendix B: Swap Policy, and Appendix C: List of Material Events.
2. Policy Purpose
The purpose of this Debt Policy is to set forth the principles and objectives that should guide the City’s decisions to issue debt and establishes guidelines for responsibly managing debt. The core objectives of this policy include the following:
2.1. Establish guidelines for the use of various categories of debt.
2.2. Create procedures and policies that minimize the City’s debt service and issuance costs.
2.3. Maintain access to cost-effective borrowing.
2.4. Ensure full and timely repayment of debt.
2.5. Achieve and maintain the highest practical credit ratings of the various bond and credit types as well as the City’s overall credit rating.
2.6. Ensure financial controls are in place with respect to proceeds of debt issuances.
2.7. Ensure compliance with covenants contained in financing documents and compliance with applicable state and federal laws and regulations.
2.8. Promote the City’s best interests and protect the City’s financial stability when deciding whether to approve debt.
2.9. Provide full and complete financial disclosure and reporting.
In meeting these objectives, the City also fulfills the requirements of California Government Code Section 8855 with respect to local debt policies.
An annual review of the Debt Policy will be performed and any changes to the policy will be brought forward for City Council consideration and approval. Further, in the event there are any material deviations or exceptions from the Debt Policy when a certain bond issue is structured, those exceptions will be discussed in the staff reports when the bond issue is docketed for City Council’s consideration.
3. California Debt and Investment Advisory Commission (CDIAC) Reporting/Debt Policy Requirements
Effective January 1, 2017, Government Code Section 8855 was amended to require reporting to CDIAC both before and after the issuance of debt by or on behalf of local governments, including the City. Section 8855 also requires local governments to have a debt policy that includes the following (locations in this policy are identified parenthetically):
3.1. The purposes for which the debt proceeds may be used (Section: 5).
3.2. The types of debt that may be issued (Section: 5).
3.3. The relationship of the debt to, and integration with, the issuer’s capital improvement program or budget, if applicable (Section: 6.2).
3.4. Policy goals related to the issuer’s planning goals and objectives (Section: 6.1)
3.5. The internal control policies that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use (Section: 7).
4. Scope of Application
This Debt Policy applies to debt issued by the City of Richmond, the Richmond Housing Authority, the Successor Agency to the Richmond Community Redevelopment Agency, and the Richmond Joint Powers Financing Authority; to debt the City issues on behalf of assessment districts and community facilities districts; and to debt the City issues on behalf of third parties where public benefit can be achieved i.e., conduit financing.
5. Types and Purposes of Debt
5.1. Long-Term Debt
Long-term debt may be issued only to serve a public purpose and may be used to finance the costs of acquiring or improving land, infrastructure, facilities, or equipment if it is appropriate to spread these costs over more than one budget year. Long -term debt may also be used to fund capitalized interest, costs of issuance, required reserves, and any other financing-related costs that may be legally capitalized. Long-term debt may not be used to fund City operating costs. The final maturity of long -term debt should not exceed 40 years. The following are the types of long-term debt that may be undertaken by the City:
5.1.1. Special-Assessment Bonds. The Improvement Act of 1911 and the Improvement Bond Act of 1915 authorize the City to form assessment districts for imposing special-assessment liens on properties within the districts. Assessments on each property are calculated according to the “special benefit” the property receives from the local public improvements. Local public improvements examples include local streets, street lights, landscaping, sidewalks and sanitary sewers. The assessments are used to secure payment of bonds that amortize the local public improvement costs over a period of years. A majority of the property owners within the district must approve both the formation of the district and the issuance of the bonds.
Approval occurs through submission of assessment ballots weighted according to the amount of each property’s proposed assessment.
5.1.2. Special-Tax Revenue Bonds. Under the Mello -Roos Community Facilities District Act of 1982, codified at Governmental Code sections 53311 to 53368.3 (the “Mello-Roos Act”), the City may use special-tax bonds to finance the construction or acquisition of various public improvements. The Mello-Roos Act provides an efficient means of financing certain public capital facilities and services and promotes economic development in areas that lack sufficient infrastructure, such as infill or brownfield areas. Bonds may be issued to fund capital facilities so long as the estimated useful life of the facilities is at least five years. These bonds must be approved by at least two -thirds of the qualified electors within the Community Facilities District unless there are fewer than 12 qualified electors, in which case the vote is by the landowners.
5.1.3. Marks-Roos Bonds. Under the Marks-Roos Local Bond Pooling Act of 1985, codified at Government Code sections 6500 to 6599.3 (the “Marks-Roos Act”), governmental entities, in consort with or as part of a joint- powers financing authority, may use a “pooled” financing technique for a broad array of public capital improvements.
5.1.4. General Obligation Bonds. These bonds may be issued by governmental entities that have the legal authority to levy ad valorem property taxes and other charges at whatever rate and amount is necessary to pay the debt. Under article XVI, section 18 of the California Constitution, these bonds may only be issued for the acquisition or improvement of real property such as libraries, parks and public safety facilities. Two- thirds voter approval is required.
5.1.5. Tax-Allocation Bonds. Until January 2012, the City was authorized to issue tax -allocation bonds (“TABs”) that were secured by a pledge of tax -increment revenues from redevelopment project areas. Proceeds from TABs were used to revitalize blighted and economically depressed areas and promote economic growth. The City is no longer authorized to issue new -money TABs unless the City or its related financing authorities are aware of enforceable obligations that need to be met. Only refunding TABs are now authorized, and only the Successor Agency to the Richmond Community Redevelopment Agency may issue them.
5.1.6. Certificates of Participation and Lease-Revenue Bonds. These debt instruments are secured by a lease - leaseback arrangement between the City and another public entity. The City uses its general operating revenues (which are not expressly pledged) to pay amounts owed under the lease. The payments are in turn used to pay debt service on lease -revenue bonds issued by a joint -powers financing authority or on certificates of participation executed and delivered by a trustee. Under this type of financing , a site, on which a capital project is being built, is leased to a joint-powers financing authority and subsequently the site and the capital project, are leased back to the City. In an alternative arrangement, a different asset is leased to the joint-powers financing authority and leased back, with the proceeds of the bonds being used for some other capital improvements (this is known as an "asset transfer" financing). Lease payments from the City are subsequently collected by the joint-powers financing authority and used to fu nd the debt service payments. Internally, costs of particular projects can be allocated to the budgets of one or more departments, but the City's general fund is liable to pay lease payments. Voter approval is not required because these debt instruments are not subject to the debt limit in article XVI, section 18 of the California Constitution.
5.1.7. Revenue Bonds. These bonds are payable from revenue generated by a City enterprise, such as the Port, KCRT Cable Television, and Water Resource Recovery. Because debt service on revenue bonds is paid solely from enterprise revenues and are not secured by any pledge of tax or general fund revenues, these bonds are not subject to the debt limit in article XVI, section 18 of the California Constitution. Revenue bonds are used for the improvements to the enterprise.
5.1.8. Pension Obligation Bonds. Pension Obligation Bonds are issued to finance all or part of the unfunded pension liabilities of a pension plan . Typically, these bonds are issued at a lower rate of return than wa s being paid to the Pension System Administrator, and in this way, provide an economic benefit to the City.
5.1.9. State and Federal Loans or Other Similar Debt Instruments. State and federal loan proceeds are an important source of funds for capital projects in addition to bond procee ds. State Revolving Funds make low cost loans available to local agencies to fund certain public infrastructure projects. Through these programs, various state agencies, such as the California State Water Resources Control Board, Ca lifornia Infrastructure and Economic Development Bank , and California Department of Resources Recycling and Recovery, as well as federal agencies such as the Department of Transportation and Environmental Protection Agency, offer local agencies loans to fu nd qualifying public infrastructure projects. Often the cost of borrowing through the loan programs is lower than the cost of issuing. Benefiting departments within the City will evaluate such programs in conjunction with the Finance Department on a case by case basis. City Council approval is required to apply for such loans.
5.1.10. Conduit Debt. The City may agree to provide conduit financing for specific public purposes, such as financings for affordable rental housing and qualified 501c3 organizations. In a conduit financing, the debt is solely repaid with non-City revenues. No City funds will be pledged to the repayment of conduit debt and no appropriation of City funds will be made in the event of a default. All conduit financings must have at least one investment grade rating from a nationally recognized rating agency, or have a private placement investor committed to purchase the bonds.
5.2. Short-Term Debt
Short-term debt may be issued for any purpose for which long-term debt may be issued, including the payment of capitalized interest and other financing -related costs; it may also be used to address legitimate short-term cash- flow requirements during a given fiscal year, so that the City may continue to fund the operating costs of providing necessary public services; and it may be used to bridge the gap in financing before long-term debt is issued to meet
the ongoing capital needs of a project or series of projects. The City will not engage in short-term borrowing solely for the purpose of generating investment returns (arbitrage). Short term debt usually may not exceed five years.
5.2.1. Tax and Revenue Anticipation Notes (“TRANs”). These are short-term notes used to cover cash shortfalls resulting from a mismatch between the timing of revenues and expenditures. The City may issue TRANs when needed to meet general fund cash -flow needs in a fiscal year. TRAN proceeds may be used and expended for any purpose, including operating expenses, capital expenditure, repayment of indebtedness and investment and reinvestment. TRAN proceeds may be invested at an unrestricted yield if TRANs are issued in an amount not to exceed the maximum anticipated cumulative cash flow deficit over 13 months, plus the lesser of either (i) a reasonable working capital reserve or (ii) 5% of the prior fiscal year's expenditures paid out of current revenues. TRANs are secured by the property taxes and other revenues received later in the fiscal year. Voter approval is not required.
5.2.2. Line of Credit. This is a contract between the issuer and a bank that provides a source of borrowed monies to the issuer in the event that monies available to pay debt service or to purchase a demand bond are insufficient for that purpose. The City may enter into agreements with commercial banks or other financial entities for purposes of acquiring a Line of Credit. Voter approval is not required.
5.2.3. Lease-Purchase Financings. These financings may be used for the short -term financing of essential equipment or capital assets. The term of a lease purchase agreement is typically less than 10 years but may be as long as 15 years. Under this type of financing, the City and a lessor enter into a master lease agreement for the lease -purchase of equipment or capital assets up to a certain aggregate amount. The City and the lessor then enter into separate “schedules of property” or “lease schedules” for each lease purchase of equipment or capital asset, and the City Council annually budgets and appropriates an amount sufficient to pay rent for the equipment or capital asset under lease during that year; the failure to appropriate will result in termination of the lease-purchase agreement. Voter approval is not required.
5.3. Refunding Financing
The Finance Department will periodically review outstanding City Debt to identify re funding opportunities and evaluate the costs and benefits of restructuring or retiring outstanding obligations. Refunding will be considered (within federal tax-law constraints) when it will provide a net economic benefit or when it is needed to achieve City objectives relating to changes in covenants, call provisions, operational flexibility, tax status, the issuer, debt-service profile, etc. The City may purchase City Debt in the open market for the purpose of retiring the debt when doing so is cost effective.
5.3.1. There are two types of refunding transactions: a current refunding occurs when outstanding bonds are paid off within 90 days after the proceeds of refunding bonds are deposited into an escrow account with the escrow agent (typically the same entity as the trustee); and an advance refunding occurs when outstanding bonds are paid off more than 90 days after proceeds of refunding bonds are deposited into an escrow account with the escrow agent. Federal tax law does not currently permit tax exempt advance refundings.
5.3.2. In general, when the City undertakes a current refunding or an advance refunding for net economic benefit, the refunding should produce net present value debt service savings of at least 3%. This 3% threshold is a goal rather than a requirement, as the City may have reason to refund an issue that generates net-present- value savings of less than 3% (i.e., the refunding will eliminate unduly restrictive bond covenants or achieve a favorable restructuring of debt).
5.4. Other Debt
There may be special circumstances when other forms of debt are appropriate; these will be evaluated on a case - by-case basis by the Finance Department . Such other forms may include, but are not limited to non -enterprise revenue bonds, bond anticipation notes, grant anticipation notes and judgment or settlement obligation bonds.
6. Integration with Planning Goals and Objectives
6.1. Policy Goals Related to Planning Goals and Objectives . The City is committed to long -term capital and financial planning, maintaining appropriate reserve levels and employing prudent practices in governance, management and budget administration. This Debt Policy, in conjunction with the City’s Swap Policy, Reserve Policy, Capital Improvement Plan, Five -Year Revenue and Expenditure Forecast, Investment Policy and the Cash Reserve Policy, serves as an important tool that supports the use of the City’s resources to meet its financial commitments and to maintain sound financial management practices. The City intends to issue debt for the public purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s annual operating and capital budgets. This Debt Policy will help ensure that debt is issued and managed in a manner that protects the public interest.
6.2. Relationship of Debt to Capital Improvement Plan and Budget . The City ’s Capital Improvement Plan sets priorities for projects and funding while the Debt Policy provides policy direction and limitations for proposed financings undertaken to implement the Capital Improvement Plan. Debt issuances will be integrated with the goals of the capital improvement plan and capital budget by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes , and that th e long-term repayment obligation is sustainable from a budgetary perspective. The City will seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from the general fund.
Debt issuances for capital projects will be incorporated into the Capital Improvement Plan at the time the plan is recommended for City Council approval.
The City shall strive to fund the upkeep and maintenance of its infrastructure and facilities , due to normal wear and tear, through the expenditure of available operating revenues. The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear, unless a specific revenue source has been identified for this purpose.
7. Internal Control Policies
When issuing debt, in addition to complying with the terms of this Debt Policy, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post -issuance compliance, and investment of bond proceeds. Without limiting the foregoing, the City will periodically review the requirements of and will remain in compliance with the following:
7.1. Federal securities law, including any continuing disclosure undertakings entered into by the City in accordance with Securities and Exchange Commission Rule 15c2-12;
7.2. Any federal tax compliance requirements, including, without limitation, arbitrage and rebate compliance; The City’s investment policy as it relates to the use and investment of bond proceeds; and
7.3. Government Code section 8855(k) and the annual reporting requirements therein. Proceeds of debt will be held either: (a) by a third-party trustee or fiscal agent, which wi ll disburse such proceeds to or upo n order of the City with the submission of one or more written requisitions by the Finance Department; or (b) by the City, to be held and accounted for in a separate fund or account.
Timely authorizations and processing of transactions will be undertaken and e xpenditures will be carefully documented by the City to ensure proceeds are utilized for the intended use. Regular budget and schedule progress updates will be required by the Finance Department to track the status of debt-funded projects.
8. Debt Approval Procedures
8.1. Reviewed by City Council . All proposed long-term financing transactions for capital improvements shall be reviewed by the City Council. For matters related to the City Council approval process, "long-term financing" means financing which constitutes an obligation beyond one fiscal year.
8.1.1. Proposed transactions submitted for City Council approval should be reviewed prior to submission by the Finance Director, City Manager and City Attorney.
8.1.2. Upon approval by the Finance Director, City Manage r and City Attorney, the proposed transaction shall then be presented to the full City Council.
8.2. Approval by the City Council. All long -term financing transactions over $10 ,000 should be agendized as *action* items and shall be approved and adopted by the City Council. The City Council shall comply with all public hearing requirements applicable to the specific type of bond being approved.
9. Debt Limitations
There is no statutory restriction on the amount of Lease Revenue Bonds or Certifications of Participation that can be outstanding at any given time. However, it is the policy of the City of Richmond that net debt service payments funded from General Fund sources shall be no greater than 10% of current General Fu nd revenues. Payments on bonds that are tied to a specified revenue stream other than General Fund sources (e.g. revenue bonds, tax allocation bonds and assessment bonds) are not subject to this 10% limit. Each proposed financing will be individually assessed by the Finance Department and subject to the approval policies contained herein.
The City also issues debt funded by revenues of Business-type activities, also known as Enterprise Funds. Any debt secured by revenues of an Enterprise Fund shall maintain a coverage ratio (defined as the ratio of revenues subject to the bondholders’ pledge over aggregate debt service on bonds secured by the pledged revenues of the Enterprise Fund) that equals or exceeds the minimum coverage required by the rate covenant in the financing documents.
10. Methods of Sale
The Finance Department shall review each transaction on a case-by-case basis to determine the most appropriate method of sale.
10.1. Competitive Sale. In a competitive sale, bids for the purchase of the bonds are opened at a specified place and time and are awarded to the underwriter (or syndicate) whose conforming bid represents the lowest true interest cost (TIC) to the City. The City may take bids in person, by facsimile, or by electronic means.
10.1.1. Bond sales shall be advertised as broadly as possible, including advertising in an industry newspaper. The financial advisors for each transaction shall undertake to provide information on the bonds to prospective bidders and investors as relevant.
10.1.2. Terms of the bonds shall be amendable as late as possible and ideally until at least 1:00 p.m. Pacific Time the day prior to the day bids are to be received.
10.1.3. Bond sales shall be cancelable at any time prior to the time bids are to be received.
10.1.4. Upon award to the bidder whose conforming bid represents the lowest true interest cost (TIC), the City may restructure the bonds in accordance with the Official Notice of Sale.
10.1.4.1. The City shall reserve the unfettered right to reject all bids or waive bid irregularities.
10.1.4.2. The Finance Department shall award any bonds sold via competitive sale.
10.2. Negotiated Sale. In a negotiated sale, the City chooses the initial buyer of the bonds in advance of the sale date. The initial buyer is usually an investment banking firm, or a syndicate of investment banking firms interested in reoffering the bonds to investors through an underwriting process. This type of sale allows the City to discuss different financing techniques with the underwriter in advance of the sale date, and is particularly appropriate for complex bond structures, difficult credit situations (such as non -rated assessment or Mello-Roos Bonds, and refundings).
10.3. Private Placement. Also referred to as a direct placement, private placement is a variation of a negotiated sale. Instead of retaining the services of an investment banking firm to underwrite the bonds, the City will sell the bonds directly to a limited number of investors. The City may use a placement agent to assist it in identifying likely investors.
11. Debt Structuring Practices
11.1. Standard Terms. The following terms shall be applied to the City's transactions as appropriate. Individual terms may change as dictated by the marketplace or the unique qualities of the transaction.
11.2. All Bonds
11.2.1. Term - 30 years is standard, but up to 35 years may be acceptable, depending on cash flow assumptions, construction timeline and remaining useful life of the asset being financed.
11.2.2. Maximum Yield – as set by State law.
11.2.3. Maximum Premium - case by case, as recommended by the City's Municipal Advisor.
11.2.4. Maximum Discount - case by case, as recommended by the City's Municipal Advisor.
11.2.5. Payment Dates - fixed after considering cash flow needs, the Finance Department will determine the occurrence of all new debt service payments.
11.2.6. Coupons - fixed rate or variable rate.
11.2.7. Call Provisions - shortest possible optional call consistent with optimal pricing.
11.2.8. Structure of Debt - prefer level debt service, but shall be determined on a case -by-case basis, at the discretion of the Finance Department.
11.2.9. Debt Service Reserve – case by case, as recommended by the City’s Municipal Advisor and/or the underwriter.
11.2.10. Capitalized Interest – may be sized through substantial completion plus a minimum of six months unless other assets are available to be pledged or otherwise limited under Federal Tax Law. Liquidated damages of construction contract must include amount of daily debt service.
11.2.11. Net Funding - the project and capitalized interest funds may be net funded if investments are secured upon issuance of bonds.
11.2.12. Reimbursement Resolution - must be adopted by the City Council if the project hard costs are advanced by the General Fund prior to the bond sale.
11.2.13. Good Faith Deposit - determined on a case-by-case basis by the Finance Department.
11.3. Variable Rate Bonds - The City may elect to issue any bonds as variable rate bonds, which are broadly defined to mean daily, weekly, monthly, semi-annual or auction rate bonds.
11.3.1. Purpose - reduction of net borrowing cost; match of assets and liabilities.
11.3.2. Maximum Portfolio Allocation - no more than 20% of the City's outstanding debt portfolio shall be in un - hedged short-term paper consistent with policies for underlying debt types.
11.3.3. Term - consistent with policies for underlying debt types.
11.3.4. Maximum Yield – as set by State Law.
11.3.5. Monitoring - the Finance Department shall monitor all variable rate bonds on a monthly basis and shall determine, from time to time, whether to change modes and/or replace a broker/dealer or remarketing agent.
11.3.6. Budgeting Debt Service - the Finance Department will recommend that annual debt service on any variable rate bonds be budgeted at 1.5 times SIFMA Municipal Swap Index (or another relevant index or successor index to SIFMA) as of the last Wednesday in February in the year in which the budget is being prepared.
The Finance Department will also include in the budget any ongoing fees associated with floating rate bonds.
11.3.7. Liquidity - a liquidity facility shall be obtained, either externally or internally, for all short -term indebtedness containing a put feature.
11.3.8. Mode - all bonds issued as variable rate bonds shall be issued as "multi-modal" bonds.
11.3.9. Good Faith Deposit - determined on a case-by-case basis by the Finance Department.
12. Derivatives Policy
Derivative products and other financial instruments can be beneficial interest rate management tools that can assist the City as part of its overall debt and investment management program, but need to be monitored very
closely. Derivative products may be used by the City to reduce risk exposures or reduce interest costs, but may not be used for speculative purposes. The City maintains a separate Swap Policy attached hereto as Appendix B.
13. Permitted Investments
All investments of bond proceeds shall adhere to the City's Investment Policy, approved periodically by the City Council, as outlined in Appendix A. With the exception of guaranteed investment contracts, investments shall not allow security types or credit standards less than those of the City's Investment Policy.
13.1. City of Richmond Investment Policy: attached hereto as Appendix A.
13.2. Investment Agreements
13.2.1. Purpose - a) maximize interest earnings, thereby reduci ng net borrowing cost, b) match o f assets and liabilities and/or c) hedging.
13.2.2. Counterparty - minimum rating of AA- from S&P or Aa3 from Moody's.
13.2.3. Mandatory Termination - limited to credit-related events and nonpayment.
13.2.4. Cure Provisions - timelines on City's obligations to cure must provide for appropriate legislative action.
13.2.5. City's Priority of Payment - termination payments - subordinate to related debt payments.
13.2.6. Procurement/Award - award based on best bid as defined in bid form after limited negotiation of terms.
13.2.7. Term - not in excess of the term of the bonds.
14. Professional Assistance
14.1. Municipal Advisors. The City shall utilize the services of independent municipal advisor(s) on debt financing when deemed prudent by the Finance Director. All such municipal advisors should be registered with the Securities and Exchange Commission and hold the Municipal Securities Rulemaking Board Series 50 designation. The City may utilize an RFP-selected pool of such municipal advisors to mitigate time constraints and reduce overhead costs of the City in procuring such services. Services shall be documented by contract and compensation shall be capped.
14.2. Underwriters. In the case of a competitive sale, the City will award the bonds to the underwriting firm whose bid results in the lowest True Interest Cost. In the case of a negotiated sale, the Finance Director will determine the best method of selection, taking into consideration all factors involved in each particular sale, and shall recommend the best qualified underwriter to the City Council.
14.3. Bond Counsel. The Finance Department, in consultation with the City Attorney's Office, shall recommend the bond counsel for each transaction to the City Council.
14.4. Broker-Dealers and Remarketing Agents. For all variable rate bonds, the Finance Director shall recommend broker-dealers or remarketing agents for each transaction to the City Council. The City shall monitor performance on a monthly basis. The City may replace a remarketing agent or broker-dealer with notice at any time.
14.5. Disclosure Counsel. The Finance Department, in consultation with the City Attorney’s Office, shall recommend the disclosure counsel for each transaction to the City Council.
14.6. Trustees. Selected for each transaction by RFP, unless use of current trustee (particularly for parity obligations) is deemed practical by the Finance Director. The Trustee (or applicable holding company) shall have a combined capital and surplus of at least $500,000,000 and be subject to supervision or examination by federal or state authority.
14.7. Rebate Consultant. Selected by RFP for all bonds for a set term with 1-year extensions.
14.8. Financial Printer. Selected for each issue by RFP.
14.9. Auction Agents. Selected for each relevant issue by RFP issued by the Finance Department or its agent and subject to negotiation of terms.
14.10. Placement Agents. Selected for each relevant issue by RFP issued by the Finance Department or its agent and subject to negotiation of terms.
14.11. Liquidity Providers. Selected for each relevant issue by RFP issued by the Finance Department or its agent and subject to negotiation of terms.
14.12. Investment Agreement Counterparties. Selected by bid in compliance with Federal Tax Law Requirements in accordance with relevant bond documents and the City's Investment Policy.
14.12.1. In general, uncollateralized Investment Agreements shall be executed with counterparties rated at least AAA with collateral required upon downgrade below AAA.
14.12.2. Repurchase Agreements or Forward Delivery Agreements shall be executed with counterparties rated at least AA (by at least one of the major rating agencies) with downgrade provisions requiring assignment or collateral should the rating fall below A- or A3 by Standard and Poor's or Moody's Investor Services respectively.
15. Ongoing Debt Administration
15.1. Continuing Disclosure. It is the goal of the Finance Department to be as transparent as possible and comply with its obligations under continuing disclosure undertakings executed by the City in connection with its outstanding bonds.
15.2. Annual Report. The City will covenant to provide its annual disclosure report no later than 270 days following the end of the fiscal year. However, the City will use its best efforts to issue the Annual Report as soon as practical following the issuance of the City’s Annual Comprehensive Financial Report (ACFR).
The City shall use its best efforts to issue the Annual Report electronically on the Electronic Municipal Market Access (EMMA) system or any other successor thereto as designated by the United States Securities and Exchange Commission (SEC) or the Municipal Securities Rulemaking Board (MSRB), and to post the Annual Report on its web site. The Annual Report will also be on file with the City Clerk.
15.3. Material Event. The City will issue a notice of occurrence of a material event (as defined in Appendix C) in accordance with the provisions of SEC Rule 15c2-12. Prior to the issuance of any material event, the Finance Director will consult with the Mayor, City Manager, City Attorney and policymakers or outside professionals as appropriate, to discuss the materiality of any event and the process for accurate, timely and appropriate disclosure to the marketplace.
15.4. Post-Issuance Compliance on Build America Bonds. The City will adhere to the instructions contained in Appendix B regarding required post-issuance activities when Build America Bonds have been issued.
Upon recommendation of the Finance Department, the City may retain a firm to assist it in maintaining compliance with all continuing disclosure requirements.
15.5. Arbitrage Rebate Compliance. The City shall calculate arbitrage annually in each year that the related construction fund (or equivalent) has had an outstanding balance. Thereafter, the City shall calculate arbitrage on the fifth anniversary of the bond issuance in accordance with IRS recommended practices.
15.6. Insurance Certifications. The City (through its Risk Manager) shall provide annual insurance certification to the Trustee and Bond Insurer, if required under the legal documents for each issue.
15.7. Ratings. The policy of the Finance Department is to secure underlying ratings on all newly issued obligations from at least one national rating agency.
15.7.1. Citywide Ratings Notification. Any changes in ratings will be promptly noticed to the City Council.
15.7.2. Annual Meeting. The Finance Department shall meet with each rating agency that rates City debt issues at least annually unless such meeting is declined by the respective rating agency.
15.7.3. Annual Reporting. The Finance Department shall ensure prompt delivery to each of the rating agencies of the following public documents:
15.7.3.1. Annual Comprehensive Financial Reports (ACFR’s)
15.7.3.2. Adopted budgets
15.7.3.3. Other Reporting Certificates of Substantial Completion. On projects financed with long term obligations Certificates of Substantial Completion shall be delivered to the rating agencies and Bond Insurer, as relevant.
15.8. Voluntary Disclosures. The Finance Director may determine to file voluntary disclosure or information that is not required under any continuing disclosure undertaking. The City shall have no obligation to update any voluntary disclosure or information.
15.9. Record Retention. At a minimum, the following documentation shall be retained for the term of each issuance of bonds, including any refunding bonds, plus five years, or longer if contemplated by a tax certificate for a specific issuance of bonds.
(i) Continuing disclosure undertaking:
(ii) Annual Reports, including any EMMA transmittal letters and filing receipts;
(iii) Material Event Notices, including any EMMA transmittal letters and filing receipts; (iv) CDIAC transmittal letters and filing receipts, including those related to filing of Annual Debt Transaction Reports (ADTRs), pursuant to Senate Bill 1029 (Chapter 207, Statutes of 2016);
(v) Rating Agency reports; and
(vi) Such other information as the Finance Director determines necessary or useful in accordance with the continuing disclosure undertakings.
Reso No.____
RESOLUTION NO. ____
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA REVISING THE CITY O F RICHMOND'S FINANCIAL POLICIES BY ADOPTING THE INVEST MENT POLICY FOR FISCAL YEAR 2022 -23
WHEREAS, the City of Richmond (the "City") is required to maintain and periodically update the City's Financial Policies consistent with the standards set forth by the California Municipal Treasurers Association (the "CMTA") Certification Program; and
WHEREAS, a written investment policy is reviewed by the City's governing body annually and may be certified by the CMTA as often as needed according to relevance of importance; and
WHEREAS, the Investment Policy Certification Program (the "Program') of the CMTA was developed in 2012; and
WHEREAS, the Program was instituted in an effort to assist state and local governments interested in drafting or improving upon an existing investment policy; and
WHEREAS, the CMTA Certification Committee is comprised of fellow CMTA members, many of whom have earned the Certified California Municipal Treasurers (CCMT) designation and who volunteer to serve as reviewers; and
WHEREAS, for the policy to receive certification, it must be approved by all reviewers in all areas spelled out in the CMTA Certification Program; and
WHEREAS, the CMTA Certification Program investment policy includes language and rationales for those 19 sections that the Association deems as critical elements; and
WHEREAS, those critical elements are:
1. Policy
2. Scope
3. Prudence
4. Objective
5. Delegation of Authority
6. Ethics and Conflicts of interest
7. Authorized Financial Dealers and Institutions
8. Authorized and Suitable Investments
9. Review of Investment Portfolio
10. Investment Pools/Mutual Funds
11. Collateralization
12. Safekeeping and Custody
13. Diversification
14. Maximum Maturities
15. Internal Controls
16. Performance Standards
17. Reporting
Reso No.____
18. Investment Policy Adoption
19. Glossary; and
WHEREAS, prior to July 1, 2022, the investment policy had not been certified by CMTA; and
WHEREAS, the investment policy is reviewed and updated by Finance annually to meet the standards set forth by CMTA.
NOW, THEREFORE , BE IT RESOLVED, that the City Council of the City of Richmond, California, hereby amends the City's existing investment policy to adhere to the CMTA "Certification Program" Investment Policy guidelines which will be reviewed by the City Council annually and may be certified by CMTA as often as needed according to relevance of importance.
BE IT FURTHER RESOLVED, that this certification will serve to assure the City Council and the public that the City of Richmond is abiding by professional standards established to ensure prudent management of public funds.
BE IT FURTHER RESOLVED, that a copy of the new City of Richmond Investment Policy is attached hereto as Exhibit A.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Reso No.____
I 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
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No._____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on ____________.
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CITY OF RICHMOND
INVESTMENT POLICY
FY2022-23
I. Mission Statement
It is the policy of the City of Richmond (City) to invest public funds in a manner which will provide the highest investment return with maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds.
II. Scope
This Statement addresses the investment policy for the City's pooled funds. The pooled funds include the General Fund, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal service, Trust & Agency, Redevelopment/Successor Agency and any other Funds authorized by the City Council which are accounted for in the City of Richmond Annual Comprehensive Financial Report (ACFR).
The investment policy for bond and note proceeds is contained in the bond documents approved by the City Council at the time of the issuance of the debt; provided, that to the extent not inconsistent with such bond documents, bond or note proceeds and in accordance with the Government Code, sections 53601(I) and 5922(d), may be invested in (i) Guaranteed Investment Contracts or other debt issuance proceeds with an investment provider rated in a category of "A" or better and with downgrade protection or (ii) Investment instruments described herein.
The investment policy for the Police and Fire Pension Fund and the General Pens ion Fund are contained in the City Charter.
III. Prudence
Investments shall be made with judgment and care - under circumstances then prevailing – which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for the investment, considering the probable safety of their capital as well as the probable income to be derived. The City holds to the “prudent investor standard’ in that all investments placed shall be made with a degree of judgment and care, not for speculation, but considering the safety of the monies and acting as a fiduciary of the public trust, the prudent investor standard as set forth in Section 53600.3 of the Government Code.
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IV. Objectives
The City's investment activities are designed to accurately monitor and forecast expenditures and revenues to:
1. Invest up to 100% of all idle funds.
2. Guarantee that funds are always available when needed.
3. Manage the portfolio to take advantage of changing economic conditions that can aid in increasing the total return on the City's portfolio.
4. Safety. The primary duty and responsibility of the Treasurer is to protect, preserve and maintain cash and investments placed in his/her trust on behalf of the citizens of the community. To attain this objective, the City will diversify its investments by investi ng funds among a variety of securities offering independent returns and financial institutions.
Specifically, the City shall seek to preserve principal by mitigating credit risk and market or interest rate risk.
5. Liquidity. An adequate percentage of the portfolio should be maintained in liquid short-term securities that can be converted to cash if necessary to meet disbursement requirements. Since all cost requirements cannot be anticipated, investment in securities with active secondary or resale markets is highly recommended. Emphasis should be on marketable securities with low sensitivity market risks.
6. Yield. Yield, sometimes referred to as "rate of return," is the potential dollar earnings investment can provide. Yield should become a consideration only after the basic requirements of safety and liquidity have been met with measurement of investment risk and the cash flow needs.
V. Delegation of Authority
Management responsibility for the investment program is hereby delegated to the Director of Finance, acting in her/his capacity as Treasurer, or the Accounting Manager who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the Director of Finance.
VI. Ethics and Guidelines
1. The City adheres to the guidance provided by the "prudent investor standard".
1 A standard of conduct where a person acts with care, skill, prudence, and diligence when investing, reinvestin g, purchasing, acquiring, exchanging, selling, and managing funds. The test of whether the standard is being met is if a prudent person acting in a similar situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity."
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2. All participants in the investment process shall act as custodians of public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust.
3. In a diversified portfolio it must be recognized that occasional measured losses are inevitable and must be considered within the context of the overall portfolio investment return provided that adequate diversification has been implemented. Each issuer shall be limited in terms of their percentage of the portfolio, to minimize risk exposure.
4. In accordance with California Government Code Sections 89502 and 89503, officers and employees of the City shall refrain from any activity that could conflict with the proper execution of the investment program or that could impair their ability to make impartial investment decisions.
All investment personnel shall comply with the reporting requirements of the Political Reform Act, to include the annual filing of their Statement of Economic Interest.
VII. Authorized Broker/Dealers
The Director of Finance will maintain a list of broker/dealers authorized to provide investment servi ces. The broker/dealers will be selected by credit worthiness that is authorized to provide investment services in the State of California. These may include "primary" dealers or "regional" dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule).
VIII. Authorized Investments and Maximum Maturities
With the above objectives and criteria in mind, the City of Richmond may invest in the following instruments with a rating of “A” or higher (when applicable) that have maturities of five (5) years or less at the time of purchase, unless otherwise stated below:
1. Government Bonds and Notes- Maximum of 100% invested no longer than 5 years
i. United States Treasury Notes, B onds, Bills, or certificates of indebtedness or those for which the full faith and credit of the United States are pledged for the payment of principal and interest; and
ii. Treasury notes or bonds of the State of California; and iii. Bonds, Notes, Warrants or other evidence of indebtedness of Any local agency within California with a minimum rating threshold of an “A”.
2. Bonds and Notes of Federally Sponsored Agencies - Maximum of 100% invested no longer than 5 years, such as the Federal Farm Credit Bank,
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Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, or any other instruments issued by a federal agency, or a United States government sponsored enterprise.
3. Negotiable Certificates of Deposit issued by a Federal and State chartered bank or a Federal and State Savings and Loan Association or by any state licensed branch of a foreign bank. Purchases are not to exceed 30% of invested idle funds.
4. Local Agency Investment Fund (LAIF) - maximum of $75 million The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer for the benefit of local agencies up to the maximum permitted by State law but not to exceed the aggregate limit set by the City of 100%.
5. CalTRUST a Joint Powers Authority created by public agencies to provide a convenient method for public agencies to pool their assets for investment purposes, not to exceed the aggregate limit set by the City of 100%. C alTRUST is governed by a Board of Trustees mad e up of experienced local agency treasurers and investment officers.
6. Medium Term Notes with a maximum of five years maturity issued by corporations organized and operating within the United States. Such securities must be rated in a rating category of "A" or better by a nationally recognized rating service. Purchases may not exceed 30% of invested idle funds in any single institution.
7. Commercial Paper of "prime quality" of the highest ranking or of the highest letter and numerical rating as provided for by Moody's Investor Service, Inc., or Standard & Poor's Corporation. Eligible paper is further limited to issuing corporations that are organized and op erating within the United States and have total assets in excess of five hundred million dollars ($500,000,000.00) and having an "A" or higher rating for the issuer's debt, other than commercial paper, if any, as provided for by Moody's Investors Service, Inc., or Standard & Poor's. Eligible commercial paper may not exceed 270 days maturity nor represent more than 10 percent of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed 25 % of the City’s surplus money that may be invested pursuant to this section.
8. Money Market Funds are eligible for investment if the companies providing the mutual funds invest only in instruments authorized by Government Code, Sections 53601 and 53630. In order to be an eligible money market investment under this section:
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• The money market shall have attained the highest ranking, or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations and shall maintain these ratings for the duration of the investment.
• Retain an investment advisor registered with the Securities and Exchange Commission (SEC) with not less than five (5) years' experience investing in securities and obligations.
• The fund shall have a minimum of $500 million to total asset size of portfolio at time of investment and should not drop below this threshold.
• The purchase price of the share of beneficial interest shall not include any commission that these companies c harge.
• Purchases shall not exceed 20 percent of the City's idle funds
Summary of Maximum Percentage Limitations of Investments, by Investment Type
The following summary of maximum percentage limits, by instrument, is established for the City's total pooled fund's portfolio:
Investment Type: Percentage
U.S. Treasury Bills, Notes, and Bonds 0 to 100%
U.S. Government Agency Obligations 0 to 100%
Negotiable Certificates of Deposit Local 0 to 30%
Local Agency Investment Fund (LAIF) 0 to 100% (Max $75 million) CalTRUST(Joint Powers Authority) 0 to 100%
Medium Term Notes 0 to 30%
Commercial Paper 0 to 25%
Money Market Funds 0 to 20%
IX. Reporting and Review of the Investment Portfolio
The Director of Finance shall report monthly on the City's pooled and Bond funds to the City Manager and City Council and shall report quarterly on other investments, such as pension funds. The following elements will be part of the investment report:
1. Type of investment
2. Institution/Issuer
3. Date of maturity
4. Cost of security (par amount) and dollar amount in all securities
5. Description of the funds, investments and programs managed by contracts
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6. Current market value of securities
7. Rate of return
8. Statement of compliance to meet pool expenditure requirements for the next six months
9. If, in any case, pool expenditures are not met, an explanation of why sufficient monies will not be available.
X. Investment Pools
Government sponsored investment pools (Pools) are permitted un der California Government Code Section 53601 et seq. and an excellent short -term investment option for cash management facilities. These pools can provide safety, liquidity and yield in a single diversified investment. However, thoughtful investigation and due diligence are required both initially at the time of purchase and ongoing analysis to determine that the investment pool is being managed in a manner consistent with the objectives of the Policy.
State of California's Local Agency Investment Fund (LAI F) is an example of a Pool. The City may invest in the LAIF established by the State Treasurer for the benefit of local agencies up to the maximum permitted by State law under California Government Code Section 16429.1 , Each agency is limited to an investm ent of $75 million per account currently, but subject to change.
XI. Collateralization
Collateral for Certificates of Deposit (CD) and Negotiated Certificates of Deposit (NCD) must comply with Government Code, Chapter 4, Bank Deposit law Section 16500 et seq. and the Savings and Loan and Credit Union Deposit Law Government Code Section 16600 et seq. In addition, if the CD is not FDIC insured or goes over the FDIC $250,000 limit, collateral is required to equal 100 percent of the principal of either U.S. Treasury securities or Federal Agency securities.
Collateral will always be held by an ind ependent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted, within the parameters and constraints of the Policy.
XII. Safekeeping and Custody
Securities purchased from broker/dealers shall be held in third party safekeeping by the trust department of the City's bank or other designated third party, in the City's name and control. The basi c premise underlying the City's investment philosophy is and will continue to be to ensure that money is always safe and available when needed. All trades executed by a dealer will settle deliver vs. payment (DVP) through the City's safekeeping agent. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.
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XIII. Diversification and Risk Tolerance
The City of Richmond recognizes diversification is an investment strategy that will mitigate risk in the investment portfolio. Portfolio diversification is employed as a way to control risk. The City's investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks regarding specific investment types. Within investment types, the City shall also maintain a mix of securities to avoid concentrations with individual financial institutions, geographic areas, industry types and maturities. No individual investment transaction shall be undertaken that jeopardizes the total c apital position of the overall portfolio. The Treasurer shall periodically establish guidelines and strategies to control risks of default, market price changes, and illiquidity.
XIV. Internal Control
The Treasurer or designee shall maintain a system of internal controls designed to ensure compliance with the Investment Policy and to prevent losses due to fraud, employee error, and misrepresentations by third parties or unanticipated changes in financial markets.
All financial institutions and broker/de alers who desire to become qualified bidders for investment transactions must supply the Director of Finance with the following: audited financial statements, proof of FINRA certification, and proof of state registration, completed broker/dealer questionna ire, and certification of having read the City's investment policy.
A bi-annual review of the financial condition and registrations of qualified bidders will be conducted by the Director of Finance. The bidding process shall be conducted every four years. The current audited financial statement is required to be on file for each financial institution and broker/dealer in which the City invests.
XV. Performance Standards
A. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.
B. The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on a market benchmark Index of similar securities, as determined by the Director of Finance.
XVI. Investment Policy Adoption
The investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the Council and any modification made thereto must be approved by the City Council.
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XVII. Interest Earnings
All moneys earned and collected from investments authorized in this policy shall be allocated quarterly to various fund accounts based on the daily cash balance in each fund as a percentage of the entire pooled portfolio. Should any fund not have a daily c ash balance at the end of a quarter, it will receive none of the moneys earned and collected from the pooled investments. Furthermore, should any fund have a temporary negative daily cash balance at the end of a quarter, the negative amounts will be reallo cated to provide earnings to the funds with a positive daily cash balance.
XVIII. Restrictions
1. The City will not invest any funds in inverse floaters, range notes, or interest- only STRIPS (Separate Trading of Registered Interest and Principal of Securities) that are derived from a pool of mortgages.
2. The City will not invest any funds in any security that could result in zero interest accrual if held to maturity. This limitation does not apply to investments in shares of beneficial interest (mone y market mutual funds) that are authorized elsewhere in the Investment Policy.
3. It is the City's policy not to invest in companies involved in the manufacturing of tobacco and tobacco -related products such as cigarettes, cigars, pipe tobacco, chewing tobacco, etc.
4. In accordance with the Slavery Era Insurance Ordinance 14 -05 N.S. Section
2.29.030 Social Disclosure on Gains from Slavery effective July 1, 2005, the City will not invest any funds in international financial instruments that benefited from slavery. The City Council prohibits, by social investment policy, such investments and reserves the absolute right to divest from such investments with the cost of divestment being borne by the contracting institution.
5. In accordance with Resolution 38-13 effective May 7, 2013 the City declared it a policy of the City of Richmond to not invest in Fossil Fuel companies and urges the Board and Management of the City’s Pension funds to divest from publicly-traded Fossil Fuel Companies.
6. In accordance with the Sanctuary City Ordinance 12 -18 N.S. Section 4 Prohibition on Investments effective June 5, 2018, the City shall not make any investments in stocks, bonds, securities, or other obligations issued by any provider of Data Broker or Extr eme Vetting services to United States Immigration and Customs Enforcement (ICE).
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GLOSSARY
Agencies: Federal agency securities and/or Government-sponsored enterprises.
Bankers' Acceptance (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
Benchmark: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio's investments.
Bid: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.
Broker: A broker brings buyers and sellers together for a commission.
Certificate of deposit (CD): A time deposit with a specific maturity evidenced by a Certificate.
Large-denomination CD's are typically negotiable.
Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
Annual Comprehensive Financial Report (ACFR): The official annual r eport for the government agency. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and cont ractual provisions, extensive introductory material, and a detailed Statistical Section.
Data Broker: Means either 1) the collection of information, including personal information about consumers, from a wide variety of sources for the purpose of reselling such information to their customers, which include both private -sector businesses and government agencies; 2) the aggregation of data that was collected for another purpose from that for which it is ultimately used.
Dealer: A dealer, as opposed to a bro ker, acts as a principal in all transactions, buying and selling for his own account.
Delivery versus Payment (DVP): There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
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Diversification: Investment contained within the portfolio will be diversified by securi ty type, institution and maturity.
Extreme Vetting: Data mining, threat modeling, predictive risk analysis, or other similar services.
Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.
Federal Home Loan Banks (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank.
Federal National Mortgage Association (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
Federal Reserve System: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.
Fossil Fuel: A fuel formed by natural processes, such as anaerobic decomposition of buried dead organisms, containing organic molecules originating in ancient photosynthesis that release energy in combustion such as: coal, oil, and gas reserves as measured by the gigatons of carbon dioxide that would be emitted if those reserves were extracted and burned.
Government National Mortgage Association (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. The security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FHA mortgage s. The term "pass -through" is often used to describe Ginnie Maes.
Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
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Local Government Investment Pool (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
Market Value: The price at which a security is trading and could presumably be purchased or sold.
Maturity: The date upon which the principal or stated value of an investment becomes due and payable.
Money Market: The market in which short -term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.
Offer: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Bid.
Portfolio: Collection of securities held by an investor.
Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its in formal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.
Prudent Person Rule: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This interest may be amortized yield to maturity on a bond or the current income return.
Sanctuary City: A municipal jurisdiction that limits its cooperation with the national government's effort to enforce immigration law.
Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection.
Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.
Securities & Exchange Commission: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
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Securities and Exchange Commission (SEC) Rule 15C3 -1: See Uniform Net Capital Rule.
Treasury Bills: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.
Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
United States Immigration and Customs Enforcement (ICE): A federal law enforcement agency under the U.S. Department of Homeland Security. ICE's stated mission is to protect America from the cross -border crime and illegal immigration that threaten national security and public safety.
Yield: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
Reso No.____
RESOLUTION NO. ____
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA, ADOPTING THE OPEB FUNDING POLICY FOR THE CITY OF RICHMOND OTHER POST EMPLOYMENT BENEFITS (“CITY OPEB” ) TRUST
AND RICHMOND POLICE OFFICERS ASSOCATION OTHER POST
EMPLOYMENT BENEFITS (“RPOA OPEB”) TRUST
WHEREAS, the City of Richmond (the “City”) is a charter city that operates under the Council-Manager form of government for the purposes of providing a full range of municipal services including police and fire protection; construction and maintenance of highways, streets and infrastructure; library services; storm water and municipal sewer systems; wastewater treatment facility; and the administration of recreational activities and cultural events; and
WHEREAS, the City also operates the Richmond Memorial Convention Center and the Port of Richmond; and
WHEREAS, the City has established and maintains certain employee benefit plans that provide post -employment benefits other than pensions (hereafter “other post - employment benefits” or “OPEBs”), such as, but not limited to, medical, dental, vision and prescription drug coverage, to OPEB participants who are eligible for coverage thereunder; and
WHEREAS, beginning in the fiscal year ending June 30, 2018, the City m ust recognize OPEB unfunded liabilities in its Annual Comprehensive Financial Report due to the implementation of Governmental Accounting Standards Board Statement No s. 74 and 75; and
WHEREAS, as of June 2008, the City established an irrevocable OPEB trust (City OPEB) pursuant to Section 115 of the Internal Revenue Code for purposes of funding and pre-funding OPEBs provided under its retirement benefit plans with Public Agency Retirement Services (PARS); and
WHEREAS, as of June 2019, the City established an irrevocable RPOA OPEB trust with CalPERS pursuant to section 115 of the Internal Revenue Code for purposes of funding and pre-funding OPEBs provided under its retirement benefit plans due to a new Contract with RPOA effective January 17, 2017; and
WHEREAS, the City Manager is vested with the City and fiduciary responsibility for the administration, management and operation of the OPEB Trusts; and
WHEREAS, the City Manager has an obligation to provide reasonable as surance that the costs of benefits under the OPEB Trust s will be funded in an equitable and sustainable manner; and
Reso No.____
WHEREAS, a funding policy establishes guidelines for plan funding through actuarial valuations, regular contribution rates, contribution ti ming and actuarial assumptions; and
WHEREAS, the adoption of an OPEB Funding Policy is consistent with “best practices” and the Board’s fiduciary oversight of the OPEB Trust.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby adopts the OPEB Fun ding Policy for the City of Richmon d Other Post -Employment Benefits Plans that is attached hereto as Exhibit A.
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Reso No.____
I 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
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No._____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on ____________.
1 THE CITY OF RICHMOND, CALIFORNIA
OTHER POST EMPLOYMENT BENEFITS
FUNDING POLICY FY22-23
OPEB Funding Policy
A. Introduction
The purpose of this Statement of Benefits Plan Funding Policy (“Policy”) is to establish a methodology for funding benefit obligations accruing under the City of Richmond Other Post- Employment Benefit Plans (the “Plans”). It is anticipated that current assets plus future assets from employer contributions, employee contributions, and investment earnings should be sufficient to fund the Plans benefits. The Policy is intended to reflect a reasonable, conservative approach with each generation of ratepayers financing, to the greatest extent possible, the cost of retiree healthcare benefits being accrued. This Policy recognizes that there will be investment marketplace volatility and that actual economic and demographic experience will differ from assumed experience.
Accordingly, this Policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic, and financially sound manner. Further, it is the intent that this Policy comply with all applicable laws, rules and regulations (collectively “Laws”). In the event that this Policy conflicts with any such Law, the applicable Law shall prevail.
B. General Information
The City of Richmond (the “City”) currently manages two separate trust accounts in regards to Other Post Employment Benefits (“OPEB”). As of January 17, 2017, the Richmond Police Officers Association (“RPOA”) and the City implemented a new contract to create a separate OPEB trust for RPOA members and future retirees. The City OPEB plan is administered by Public A gency Retirement Services (PARS) and the RPOA OPEB plan is administered by CalPERS.
C. Policy Funding Objectives
The primary funding objectives of this Policy, in order of importance, are to:
1. Provide sufficient assets to permit the payment of all benefits under the Plans.
2. Maintain equity among generations of ratepayers by:
a. Establishing improvement, on a projected basis, in the Plan’s Funded Ratio, as defined in the Glossary, such that it approaches 100% over a given period of time;
2 b. Amortizing the Unfunded Actuarial Accrued Liability, as defined in the Glossary, over fixed periods, specified below.
3. Minimize the volatility of the employer ’s annual contributions by smoothing investment gains and losses over a period of years. Smoothing investment returns over a period of years recognizes that investment performance will fluctuate, and only by coincidence will it exactly equal the assumed rate of return for any given year. It is anticipated that this approach may reduce volatility within the calculation of the Unfun ded Actuarial Accrued Liability and the actuarially determined contribution rate.
D. Funding Guidelines
This Policy establishes guidelines for setting the employer contribution rate.
1. Actuarial Valuations
The Plan’s actuary shall conduct an actuarial valuation biennially, based on actual Plan s data, to determine funding progress as well as employer contributions for the following two fiscal years.
2. Actuarially Determined Contribution Rate
a. The actuarial valuation report shall include calculation of a recommended Actuarially Determined Contribut ion (ADC) rate. The ADC is intended to fund new OPEB liabilities as they are earned each year (the Normal Cost) plus an amortization of the existing Unfunded Actuarial Accrued Liability (UAAL).
b. The UAAL amortization component shall consist of:
i. The initial UAAL amortized as a level dollar amount over a fixed 20 -year period.
ii. Future unexpected changes in plan liabilities or assets at each valuation date shall each be amortized in “layers” as level dollar amounts over separate, fixed 20-year periods.
c. The ADC shall be reduced by the expected employee contributions to arrive at a net Actuarially Determined Employer Contribution (ADEC) rate. This target contribution rate may be expressed as a dollar amount or as a percent of payroll.
d. The ADEC shall be further reduced by the amount of annual retiree benefits payments (Implicit Subsidy and/or Explicit Subsidy payments) which are paid from the City’s general assets but not reimbursed by the OPEB trusts.
3. Funding Policy Contribution Rate
3 Coordination of the Plan’s Funding and Investment Policies will attempt to minimize the volatility of the employer’s contribution.
a. The City will seek to contribute the Actuarially Determined Contribution rate annually, though it maintains the flexibility to reduce contributions when fiscally necessary.
b. For the purposes of the ADC calculation, investment return assumptions will be evaluated by an independent investment advisor on a regular basis (at a minimum of every two years), and should reflect the natu re of the investments held in the Plans, and the historical and projected return rates anticipated for the investments.
E. Assumption Guidelines
1. The actuarial assumptions are adopted by the City in an effort to align the funding of the Plans with actual demographic, healthcare and economic experience, thus providing stability to the contribution rate over time. It is expected that actual experience will deviate from the actuarial assumptions and Experience Gains and Losses will occur. These g ains (or losses) will reduce (or increase) future contributions.
2. Actuarial Assumptions are generally grouped into two major categories:
Demographic assumptions -- which include withdrawal (termination), retirement, disability, and mortality rates, as well as assumptions regarding beneficiaries. Economic assumptions -- which include inflation, healthcare inflation and investment return
3. As part of the annual OPEB valuation process, the actuary will also provide advice to the City and recommend non-pension assumptions, such as increases in healthcare costs.
F. Transparency and Reporting
Funding of the City’s OPEB should be transparent to all parties including City employees, retirees, recognized employee organizations, the City Council and Richmond residents. In order to achieve this transparency, the following information shall be available:
a. Copies of the actuarial valuations for the City’s OPEB plans shall be made available to the City Council.
b. The City’s Annual Comprehensive Financial Report (ACFR) shall be published on its website. This report includes information on the City’s OPEB plans, contributions to the OPEB Trusts, and the funded status of the plans.
c. The City’s annual operating budget shall include appropriations for contributions to the OPEB Trusts and pay-go costs.
4 G. Review of Funding Policy
Funding OPEB requires a long-term plan. The City will review this policy annually and make changes as necessary. Annually checking the actuarial valuations to determine if changes to this policy are necessary to ensure adequate resources are being accumulated to fund OPEB.
All aspects of this Policy and the individual factors in the calculation of the annual employer contribution rate which is the result of the above process are subject to the review and approval of the Board and are subject to change, in whole and in part, if deemed appropriate and in the best interests of the Plan sponsor and participants.
5 Glossary
Actuarial Cost Method: The technique used to allocate costs to various time periods.
Actuarial Accrued Liability (AAL): The portion of the Present Value of Projected Benefits that is attributed to past years of service by the Actuarial Funding Method. The AAL serves as a funding target at any given point in time.
Actuarial Value of Assets : The smoothed value of assets used by the actuary in the actuarial valuation, for the purpose of reducing the impact of market fluctuations on the employer’s contribution rate.
Entry Age Method: An Actuarial Cost (or Funding) Method that determines the plan's Normal Cost as a level percentage of pay over the working lifetimes of plan members.
Experience Gains and Losses: The difference between the experience anticipated by the actuarial assumptions and the plan's actual experie nce during the period between valuations. If actual experience is financially more favorable to the Plan, it is a Gain, (e.g., higher investment return than expected). If actual experience is financially less favorable to the Plan, it is a Loss, (e.g., lower investment return than expected).
Funded Ratio: A measure of the ratio of plan assets to the Actuarial Accrued Liability (funding target) of the Plan. Plan assets can be the Market Value of Assets or the Actuarial Value of Assets.
Market Value of Assets: The total fair value of fund assets as reported in the Plan’s financial statements.
Normal Cost: The portion of the Present Value of Projected Benefits that is attributed to the current year by the Actuarial Funding Method. Also referred to as the Annual Benefit Cost.
Unfunded Actuarial Accrued Liability (UAAL): The portion of the Actuarial Accrued Liability not covered by plan assets. It is calculated by subtracting the Actuarial Value of Assets from the Actuarial Accrued Liability.
Reso No. ___
RESOLUTION NO. ____
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA, ADOPTING THE SWAP POLICY FOR FISCAL YEAR 2022-23
WHEREAS, the City of Richmond (the "City") is a charter city that operates under the Council-Manager form of government for the purposes of providing a full range of municipal services including police and fire protection; construction and maintenance of highways, streets and infrastructure; library services; storm water and municipal sewer systems; a wastewater treatment facility; and the administration of recreational activities and cultural events; and
WHEREAS, the City also operates the Richmond Memorial Convention Center and the Port of Richmond; and
WHEREAS, the City has established and maintains a well-managed debt program pursuant to a comprehensive debt policy that sets forth the parameters for issuing debt and managing the debt portfolio, including post-issuance compliance; and
WHEREAS, in the credit rating process, the rating agencies believe it is appropriate to place significant value on debt policies that have been adopted by cities; and
WHEREAS, the City established a Debt Policy that requires annual commitments relating to the General Fund debt cannot exceed ten percent (10%) of current General Fund revenues; and
WHEREAS, the City has established interest rate swap agreements that are recognized as financial tools by municipal issuers throughout the nation and the use of swap agreements has become a regular tool whereby the Government Finance Officers Association (GFOA) has adopted an official position, viewing swap policies as a governing use and management of such swaps as a "Recommended Practice"; and
WHEREAS, the City has established that the scope of interest rate swaps is beyond that of the traditional fixed rate long-term bonds covered by the Debt Policy and that it is important for the City to maintain a policy that provides guidance in how interest rate swaps entered into prior to April 20, 2021, related to City bond issues, were selected, implemented, and administered; and
WHEREAS, the City adopted a guiding fiscal policy on April 20, 2021, which states that the City shall no longer be permitted to use interest rate swaps when issuing debt (section VII Debt Management); therefore, limiting the scope of the City’s swap policies to those swaps entered into prior to that date and prohibiting the City from entering into interest rate swaps that relate to currently held and future debt; and
Reso No. ___
WHEREAS, the City established a Swap Policy whereby Standard & Poor's (S&P) Rating Agency assigns a Debt Derivative Profile (DDP) in which the City has achieved a DDP score of"l.5" (low risk) on all of its swap transactions; and
WHEREAS, the City has determined that an appropriate level of the General Fund reserves is a policy decision; and
WHEREAS, the GFOA recommends that reserve levels be directly related to the degree of uncertainty the local government faces; and
WHEREAS, the adoption of the financial policies listed in this document is consistent with "best practices" and the City's fiduciary oversight of the Fiscal Policies of FY2022-23.
NOW THEREFORE BE IT RESOLVED, that the City Council hereby adopts the Swap Policy for the City of Richmond that is attached hereto as Exhibit A.
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Reso No. ___
I 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:
Approved:
Mayor
Approved as to form:
City Attorney
State of California }
County of Contra Costa : ss.
City of Richmond }
CLERK OF THE CITY OF RICHMOND
(SEAL)
I certify that the foregoing is a true copy of Resolution No. , finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on .
Interest Rate Swap Policy of the City of Richmond
Established by the Finance Department
Fiscal Year 2022-23
Scope and Authority
This Interest Rate Swap Policy (the Policy), established by and for the Finance Department, is designed to provide procedural direction to the City of Richmond Finance Department, the Richmond Housing Authority, the Richmond Community Redevelopment Agency, the Richmond Joint Powers Finance Authority and the City itself regarding the utilization, execution, and management of interest rate swaps and related instruments (collectively, "interest rate swaps') that were entered into prior to April 20, 2021 . While adherence to this Policy is required in applicable circumstances, it is recognized that changes in the capital markets, agency programs, and other unforeseen circumstances may from time to time produce situations that are not covered by this Policy and will require modifications or exceptions to achieve policy goals. In these cases, management flexibility is appropriate. Periodically, but at least annually, the City will review the Policy and shall make modifications as appropriate due to changes in the business environments or market conditions.
The City of Richmond is authorized under California Government Code Section 5922 to enter into interest rate swaps to reduce the amount and duration of rate, spread, or similar risk when used in combination with the issuance of bonds. However, on April 20, 2021, the City adopted a guiding fiscal policy which prohibits the use of interest rate swaps when issuing debt (section VII Debt Management). Therefore, this Interest Rate Swap Policy relates only to interest rate swap agreements entered into prior to April 20, 2021, and prohibits the City from that date forward from entering into swap agreements on currently held and future debt. The Policy does not prohibit the renegotiation of current swap agreement terms as long as the renegotiation does not involve entering into another swap agreement.
This Policy and any subsequent amendments hereto shall be on file with Finance Department, maintained on the City's website, with copies delivered to the City Clerk, the City Council and the Chair of the Finance Committee of the City Council.
Mission of the Finance Department Treasury Division
The Finance Department shall issue and manage short and long-term financings (bonds, TRANs, etc), both for capital improvement and operating needs, by balancing market and credit risk with satisfactory economic benefits and proper fiscal controls.
I. Interest Rate Swap Objectives (applies to swaps entered into prior to April 20, 2021, when the City adopted a guiding fiscal policy prohibiting the use of interest rate swaps when issuing or refinancing debt).
• Reduce or manage exposure to changes in interest rates on a particular financial transaction or in the context of the management of interest rate risk derived from the City's overall asset/liability balance consistent with prudent debt and risk guidelines.
• Result in a lower net cost of borrowing with respect to the City's debt or achieve a higher net rate of return on investments made in connection with, or incidental to the issuance, or carrying of the City's debt obligations or other City investments.
• Manage variable interest rate exposure consistent with prudent debt practices. • Enhance investment returns within prudent risk guidelines. • Manage exposure to changing market conditions in advance of anticipated bond issues (through the use of anticipatory hedging instruments).
• Achieve more flexibility in meeting overall financial objectives than can be achieved in conventional markets.
II. Conditions for Previous Use of Interest Rate Swaps
Each Agreement and Transaction should have been entered into not for purpose of speculation, but solely in connection with the financing activities of the City.
A. General Usage Interest rate swaps may be used to lock-in a fixed rate or, alternatively, to create additional variable rate exposure. Interest rate swaps may be used to produce interest rate savings, limit or hedge variable rate payments, alter the pattern of debt service payments, or for asset/liability matching purposes.
B. Liquidity Considerations The impact on the cost and availability of letters of credit and liquidity support for both new and existing variable rate programs shall be considered when evaluating the issuance of new variable rate bonds which are to be swapped to a fixed rate liquidity support. Due to the limited supply of letter of credit or liquidity facility support in connection with variable rate bonds, higher overall costs may result.
C. Call Option Value Considerations When considering the relative advantage of a fixed rate swap to fixed rate bonds, the value of the call option that would typically be purchased for the fixed rate bonds shall be compared to the incremental present value of the savings from using a swap. This shall be done to ensure the benefit from use of the swap will provide sufficient compensation to offset the expected value of any foregone future refunding savings.
III. Interest Rate Swap Features
A. Interest Rate Swap Agreement Each interest rate swap executed by the City should have contained terms and conditi ons as set forth in an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement, including any Schedules to the Master Agreement, Confirmations and Credit Support Annexes, or other comparable agreement widely used by recognized derivatives dealers. The swap agreements between the City and each qualified swap Counterparty should have included payment, term, security, collateral, default, remedy, termination, and other terms, conditions and provisions as the Finance Director deems necessary or desirable.
The City is permitted to use law firms and financial advisory firm(s) with recognized experience in derivatives transactions to assist in preparation of the swap documents for swaps entered into prior to April 20, 2021. The City m ay use these same experts to renegotiate and re-evaluate the terms of current swap agreements.
B. Interest Rate Swap Counterparties The City will do business only with qualified swap counterparties. Qualified counterparties are institutions whose long-term credit rating or whose obligations are guaranteed by a financial institution whose long-term credit rating are at the time the swap is entered into at least as high as "A" or "A2" or equivalent and that have a demonstrated record of successfully executing swap transactions. The City will structure interest rate swap agreements to protect itself from credit deterioration of counterparties, including the use of ratings-based termination events, credit support annexes or other forms of credit enhancement. Such protection shall include any terms and conditions which the City deems necessary or appropriate to protect its interests.
C. Term and Notional Amount The City shall determine the appropriate term and size for an interest rate swap agreement on a case-by-case basis. In connection with the issuance or carrying of bonds, the outstanding notional amount of a swap agreement should relate to the amortization of the related existing or anticipated debt of the City. While entering into a swap with a term less than the associated bonds may be appropriate, if the intent is to "rollover" the swap, the City will be subject to the uncertainties of entering into a new swap at then prevailing market conditions. Entering into any swap agreement on current or futur e debt, including refinancing of current debt, is prohibited by the City’s policies. The renegotiation of current interest rate swap agreement terms is permitted.
D. Collateral Requirements Terms imposing collateral requirements based on credit ratings of the counterparty, requiring collateralization or other forms of credit enhancements to secure any or all swap payment obligations may be included as part of any swap agreement. The collateral requirements will be determined in consultation with counsel and the financial advisor and/or swap advisor, and may require the counterparty to post securities, surety bonds, letters of credit or other credit enhancement if the highest credit rating of the counterparty, its parent, or guarantor is or falls below a rating of "AA -" or "Aa3". Additional collateral for further decreases in credit ratings of each counterparty shall be posted in accordance with the provisions contained in the CSA or other collateral support agreement of the Agreement.
Threshold collateral amounts shall be determined on a case-by-case basis. Reasonable threshold limits will be established for the initial deposit and for increments of collateral posting thereafter. Collateral shall be deposited with a third-party trustee or as mutually agreed upon between the City and the counterparty. A list of acceptable securities that may be posted as collateral and the valuation of such collateral will be determined and mutually agreed upon during negotiation of the swap agree ment with each swap counterparty. The market value of the collateral shall be determined on a monthly basis, or more frequently if the City determines it is in its best interest given the specific nature of the swap(s) and/or collateral security.
E. Security and Source of Repayment Generally, the same security and source of repayment (pledged revenues) will secure the interest rate swaps as is used to secure the bonds that are hedged or carried by the swap, if any. The costs and benefits of subordinating the payments under the swap and/or termination payment shall be considered.
F. Cancellation Provisions The benefit of purchasing the right to cancel the interest rate swap at no cost (par call) after a specified period of time, generally 5 to 10 years shall be evaluated. If the cancellation option is cost efficient relative to the cost of obtaining a bond
call option for a similar starting period, it will be purchased. A par call termination provision mitigates some risks of the swap, by allowing a no -cost termination any time after the exercise date.
G. Prohibited Interest Rate Swap Features The City will not use interest rate swaps that (i) are speculative or create extraordinary leverage or risk, (ii) lack adequate liquidity to terminate without incurring a significant bid/ask spread, (iii) provide insufficient price transparency to allow reasonable valuation, or (iv)are used as investments.
IV. Evaluation of Proposed Transactions (Applies only to interest rate swap agreements entered into prior to April 20, 2021)
The City's staff should have undertaken an evaluation of any proposed transaction. This would have included, but not be limited to, consideration of the following:
• Assessment of all inherent risks of the transaction including, but not limited to those outlined below (see Interest Rate Swap Risks)
• Alternative financing options and a comprehensive evaluation of the potential risks and expected benefits of the interest rate swap relative to such other options. • Security and source of payments, for both scheduled and termination payments, and the integration of the swap into the City's debt program. • Procurement process and the suitability of the contemplated counterparties to the swap, taking into account any existing exposure to such counterparties. • Impact on City's credit and liquidity profile and how other financial arrangements, existing or expected, may be impacted by the swap. • Analysis of impact on the City's net variable rate interest exposure from the contemplated transaction and any potential budgetary impact.
• Cost and availability of on-going resources for the effective operations and risk management of the swap.
• Tax, accounting, or other compliance requirements relative to other options. • If the transaction includes option components, analysis of circumstances under which the option will likely, or not likely, be exercised and the consequences of each outcome. • Volatility Exposure (as outlined herein) for each counterparty for all existing and any proposed transactions.
V. Interest Rate Swap Risks
Before proceeding with a swap transaction prior to April 20, 2021 , the City must have reasonably concluded that the expected benefits of the transaction outweigh the expected risks, that the risks are within acceptable levels, and that the contemplated transaction does not impose risks that threaten the City's ability to perform its core functions. The transaction must have been reasonable in relation to the City's overall financial condition and capitalization.
The City should have, with its advisors and legal counsel, structured swap transactions with terms and provisions that will help mitigate such risks to the extent practicable and cost -effective. The City shall have a plan for the on-going monitoring and risk management of swap transactions.
A. Counterparty Risk The failure of the counterparty to make required payments or otherwise
comply with the terms of the swap agreement. If the swap is terminated prior to its scheduled final cash flow date and the City's swap position has increased in value, the City will be owed a termination amount and therefore will have credit exposure to its counterparty for collection of any such amount.
1. Assessment The City will monitor counterparty exposure levels, ratings thresholds, and collateralization requirements.
B. Termination Risk The risk that an interest rate swap agreement must be terminated prior to its stated final cash flow date, and that the City cannot obtain a replacement transaction with substantially similar term, including because of deterioration of the City's own credit. In such a circumstance, the City could owe, or be owed, a termination payment.
1. Assessment The City will compute, at least annually, the termination exposure for all existing at market value and under an expected worse-case scenario. A contingency plan will be annually updated specifying how to finance a termination payment and/or replace the hedge.
C. Collateral Posting Risk The risk that the City will be required to secure its payment obligations under the swap. Posted collateral would not be available for the City's expenditure or reserve balance needs, potentially adversely impacting credit ratings and overall liquidity and budgetary efforts.
1. Assessment The City will review, on a case-by-case basis, the possible risk associated with posting collateral, taking into consideration any earnings potential on posted collateral.
D. Basis Risk The risk of a mismatch between actual variable rate debt service and variable rate indices used to determine swap payments.
1. Assessment On an annual basis the City will review historical trading differentials between the variable rate bonds and the indices.
E. Tax Risk The risk created by potential tax events that could affect sufficiency of swap payments.
1. Assessment The City will review all tax events in proposed swap agreements and evaluate the impact of potential changes in tax law on LIBOR indexed swaps.
F. Rollover Risk The risk of a mismatch of the maturity of the swap and the maturity of the underlying bonds.
1. Assessment The City will determine, in accordance with its Debt Policy, the capacity to issue variable rate bonds that may be outstanding after the maturity of a fixed rate swap.
G. Liquidity Risk In connection with a swap strategy which includes issuance of floating rate bonds that, absent the swap strategy would have been issued as fixed rate bonds, the risk that the City cannot secure a cost-effective renewal of a letter or line of credit or suffers a failed auction or
remarketing with respect to the floating- rate bonds.
1. Assessment The City will evaluate the expected availability of liquidity support for hedged (swapped) and non-swapped variable rate debt.
H. Credit Risk The risk of an event occurring that modifies the credit quality or credit rating of the issuer of its counterparty.
1. Assessment The City will monitor the ratings of counterparties, insurers, and guarantors.
VI. Counterparty Credit Exposure
The City will manage its counterparty credit exposure (i.e., amounts which would become due to the City if the swaps with a particular counterparty were to terminate early pursuant to a default or other similar event) through diversification and active trade management. In order to manage the City's exposure, the City shall annually calculate and review the current market evaluation of all outstanding swaps, subtotaled by counterparty and by security and source of payment (as applicable). In addition, for each counterparty, the City will review the then current long-term credit ratings and the ratings outlook, including the date of the last rating update. The calculation of termination exposure per counterparty will be on a net basis by taking into consideration multiple transactions, some of which may offset the overall exposure to the City.
In addition, the City shall annually estimate the interest rate volatility risk ("Volatility Exposure") of the City's swap portfolio. The purpose of the Volatility Exposure is to measure what impact a significant change in interest rates would have on the City's swap portfolio. Volatility Exposure will be calculated assuming (i) an upward shift of 150 basis points in the yield curve and (ii) a downward shift of 150 basis points in the yield curve. The assumed shift will be reviewed periodically to ensure that they remain appropriate.
Example of Counterparty Credit Exposure Information (Illustration Purposes Only)
Counterparty
S&P (Date)
Moody's (Date)
Outlook
Market Value of
Transactions
Volatility Exposures
Market Value
Provider A
A+ (1/1/04)
A2 (1/1/05)
Stable
Negative
$3 million
VolExpup $4 million
VolExpDown -$1
million
A. Exposure Review of Existing Swaps While collateralization reduces credit risk, collateralization introduces other risks, principally legal and operational. In order to manage these other risks, the City shall limit the amount of exposure to any one counterparty, regardless of the counterparty credit ratings and threshold levels. Credit exposure may be reduced, for example, through a swap termination, in whole or in part, or a restructuring of the swap to an on-market rate with a smaller notional amount accompanied by a cash payment to the City, which could then be used to redeem underlying debt obligations. These counterparty credit risk guidelines will not mandate or otherwise force automatic termination by the City or the counterparty. The City may not enter into what is considered a “different” or “new” swap agreement on current debt, yet it can renegotiate the terms of the current swap agreements.
VII. Ongoing Risk Management and Reporting Requirements
A. Active Management The City will seek to maximize the benefits and minimize the risks it carries by actively managing its interest rate swap program. This will entail monitoring the adequacy of posted collateral, compliance with accounting requirements, and periodic monitoring of market conditions for emergent opportunities and risks. Active management may require modifications of existing positions including, for example:
• Early Termination;
• Shortening or lengthening the term;
• Sale or purchase of options;
• Basis conversion
B. On-going Reporting A report providing the status of all interest rate swap agreements entered into by the City will be prepared no less frequently than annually and shall include the following:
• A description of all outstanding interest rate swap agreements, including project and bonds series, type of swap, rates paid and received by the City, total notional amount, average life of each swap agreement, and remaining term of each swap agreement. • Highlights of all material changes to swap agreements or new swap agreements entered into by the City since the immediately preceding report.
• Market value of each of the City's interest rate swap agreements. • The credit rating of each swap counterparty and credit enhancer insuring swap payments, if any.
• Listing of any credit enhancement, liquidity facility or reserves and accounting of all costs and expenses associated with the credit enhancement, liquidity facility or reserves. • The market value for each transaction and the aggregate for each counterparty.
Reso No.____
RESOLUTION NO. _____
RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA,
ADOPTING THE GRANT MANAGEMENT POLICY
WHEREAS, the City of Richmond has determined that an appropriate grant management is a policy decision; and
WHEREAS, the Government Finance Offi cers As sociation recommends government organizations develop a formal grants policy; and
WHEREAS, The Grant Management Policy outlines guidelines for grant application, execution and closeout; and
WHEREAS, the adoption of the Grant Management Policy is consistent with “best practices” and the City Council’s fiduciary oversight of fiscal policies.
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby adopts the Grant Management Policy for the City of Richmond that is attached hereto as Exhibit A.
Reso No.____
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 on September 20, 2022, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
____________________________________
CLERK OF THE CITY OF
RICHMOND
(SEAL)
Approved:
_________________________________
Mayor
Approved as to Form:
_________________________________
City Attorney
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No._____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on ____________.
Grant Management Policy of the City of Richmond
1 Grant Management Policy of the City of Richmond
Established by the Finance Department
Fiscal Year 2022-23
1. Overview
The City of Richmond continues its practice of taking advantage of granting opportunities to support operations, programs, and capital improvement projects. Major sources of grant awards are federal, state, local agencies, and private organizations. A grant’s scope is determined by the policy goals of the grantor, and the grantee is obligated to provide deliverables based on the terms and conditions of the grant . Grants differ based on the funding source , scope of work , requirements, and timelines . This policy provides a general guidance to managing grants which may not be pertinent to manage all grants awarded to the City.
2. Goal
The purpose of th e Grants Management Policy is to develop, implement , and maintain meaningful grant oversight and coordination for the City Council thereby increasing grant-related revenue, limiting the City Council’s exposure to grant-related legal liability, and improving the efficiency and impact of programs and services funded through grants.
3. Pre-Application Evaluation
City staff will continuously identify grants in all functional areas in general but specifically i n funding capital projects. C ity staff must review grant requirements to validate the feasibility of under taking the responsibility of grant del iverables and the alignment of the scope with the City’s and the community’s mission before applying , accepting, and committing to any grant opportunity.
a. Short Term Revenues vs. Long Term Costs
Special attention must be paid to evaluate if a grant opportunity is viable to the City and that one time or short-term grant revenues are not adding to the fiscal burden of unprecedented permanent or long-term expenditures. For example, a grant funded project may require the City to hire additional staff, in this situat ion it is necessary to review the grant to assure that the City is clear about the requirement of additional staff, temporary or permanent. If permanent staff is required, the long-term labor cost must be evaluat ed and analyzed before applying for the grant. The viability consideration is not limited to l abor cost; it must be evaluated for all types of costs such as ongoing operations and maintenance.
Grant Management Policy of the City of Richmond
2 b. Required Resources
A grant opportunity must be evaluated based on required resources versus available resources in the City before moving forward with the application process. This applies to resources such as: staff support, local funding match, or in-kind match. i. If a funding match is required by a grantor, the funding source must be approved by the City Manager in writing before submitting the grant application.
c. Indirect Costs
During the grant application process the City staff shall include the cost of administering the grant program when possible and wherever it is allowable by the grantor in the grant terms and conditions. For example, s ome grantors may have a fixed percentage for indirect costs that can be reimbursed.
d. Cost Benefits Analysis
The overall cost benefit analysis is required to confirm that the grant is in alignment with the City’s general mission and strategic goals and is in the best interest of the residents of the City.
e. Public Private Partnership
In a situation where the City is working in partnership with a nother organization (local or public) the solicitation process must be transparent. City Council approval is required prior to submitting the grant application. If the pre-approval step is missed in such partnership, there must be an explanation provid ed to the City Council upon the grant acceptance (see section 4.b.).
4. Grant Cycle
a. Grant Application
Department staff is required to follow the grantors’ determined application processes. Department staff seeking and administering the grant are responsible for compiling the grant application , and the Finance department shall provide certain information that is required to be submitted with the proposal. i) If a local funding match is required for a grant, refer to the section 3.b. of this document.
ii) The Finance department must be notified upon submission of a grant application within ten (10) business days.
b. Grant Award
Grant award is the notification that is provided to the applicant upon the acceptance of the grant application. The notification mus t be in writing and/or it can also be in a grant agreement format.
Grant Management Policy of the City of Richmond
3 c. Council Approval
Each grant must be formally accepted by the City C ouncil before moving to the execution phase. Department staff are responsible for preparing the City Council agenda item . The r ecommended action must include the words “accept and appropriate” in the agenda report to ensure budget appropriation for execution.
Some grants may require City Council authorization before a grant application is submitted and, in that case, recommended action may include the language about the acceptance and appropriation of funds upon grant award.
d. Grant Set-Up
Department staff is responsible for submitting grant documents to the F inance department within ten (10) business days to be set up in the City’s financial system, which may require creating special account strings to fully track the related activity. Required documents are:
i. Grant Award Letter/Agreement
ii. Approved Council Minutes, and/or Resolutions
iii. Completed Grant Information Form (see attached form) iv. Appropriate Grant Funds
e. Grant Execution
It is the Department staff’s responsibility to deliver agreed upon deliver ables, generate status reports, exercise careful examination of the costs being incurred, and file fo r reimbursements from grantor in a timely fashion. The Finance department assists as needed in terms of setting up account strings, budgets, and preparing monthly reports et c. Department staff shall maintain a comprehensive project file for the record and send all documents to [email protected] for record keeping in the financial system.
f. Reimbursements/Reporting
Department staff shall submit reimbursements and other per iodic reports in a timely manner depending upon the grantor specified timeline. The m ajority of grants are on a reimbursement basis. Therefore, the City covers the expenditures from the cash reserve before the grant funds are reimbursed , which limits the City’s ability to fund other operations and city services. It is crucial that the reimbursement requests are submitted to the grantor in a timely manner to alleviate undue burden from the City’s cash reserves. Department s taff shall forward all the filed reimbursement requests to [email protected] at the time of submission to the grantor.
Grant Management Policy of the City of Richmond
4 g. Close-Out
Department staff are responsible for following the specified close out procedure provided by the grantor. Grant funded project files and records are required to be maintained for five years or the retention limit the grantor has provided which may exceed five years. Final close out reports shall be sent to the Finance department within ten (10) business days.
5. Record Keeping
Department staff must maintain all documents (purchasing, bidding, and communications with the grantor) even after the grant completion. Department staff shall also forward all documents to the F inance department ([email protected]) for saving and retention in the financial system (currently Project Master in Tyler MUNIS) to ensure city-wide availability as needed. This is primarily for audit purposes.
6. Audits
Appropriate audit facilitator is determined depending on the nature of the audit including the Annual Single Audit. The Finance department facilitates all financial audits and may reach out to Department staff for assistance if warranted.
7. Roles and Responsibilities
a. City Council
i. Provides policy guidance to City staff to seek grants in certain categories and authorizes staff to apply for grants, and upon grant award, accepts and appropriates funds.
b. City Manager’s Office
i. Executes grant agreements and directs/assigns staff to seek an d execute grants.
c. Finance Department
i. Provides guidance to Department staff about tracking costs appropriately. ii. Sets up account strings in the financial system.
iii. Assists in day-to-day financial operations.
iv. Generates periodic reports stating sources and uses of the grant funds. v. Maintains project master in the financial system.
vi. Maintains the City’s general information regarding tax ID and tax-exempt status letter.
vii. Maintains the C ity’s accounts wi th federal grant portal s such as www.grant.gov, www.sam.gov, etc.
Grant Management Policy of the City of Richmond
5 viii. Maintains the City’s CAGE code and Unique Identifier Number, formerly known as DUNS number.
ix. Generates Schedule of Expenditures of Federal Awards (SEFA) annually after fiscal close.
x. Facilitates financial audits.
xi. Provides training on grants management and financial systems to improve the grants program.
d. Department Staff
i. Applies for the grant.
ii. Takes awarded grant to the City Council for approval (C ouncil action must read “Accept and appropriate funds…”).
iii. Prepares budget amendments based on the City Council approval. iv. Executes the grant.
v. Delivers the grant deliverables under the terms and conditions. vi. Monitors costs and makes sure the costs are allowable and within the grant award.
vii. Communicates and reports to the granto r/s regarding status, periodic, and close out reports, and any other communication regarding modifications to the scope or changes in timeline.
viii. Follows the procurement and other C ity policies in the process of issuing contracts.
ix. Maintains complete project file during and after beyond project completion.
x. Assists finance/audit coordinator as needed during audit/s.
Grant Management Policy of the City of Richmond
6
REQUEST FOR LEGAL OPINION
Print Document - Add Attachments – Deliver to City Attorney’s Office Date:
Department: Initiated by: Phone:
Subject:
Resolution: Ordinance: Contract: RFP/Q: Opinion: Review:
Please indicate the nature of your request and the purpose of the contract or document to be reviewed:
(Items must have completed the review process BEFOREplacement on the Agenda) Deadline for opinion? Meeting Agenda (choose one): City Agency Authority Date:
List Attachments:
RESPONSE BY CITY ATTORNEY’S OFFICE
APPROVED SUBJECT TO CHANGES SHOWN REPLY ATTACHED OTHER 1st Review Date: 2 nd Review Date:
3rd Review Date:
APPROVED AS TO FORM Attorney’s Signature: Date:
rev. 3-07
James Atencio byCS
September 20, 2022
Human Resources
DATE: September 20, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Sharrone Taylor, Interim Director of Human Resources
Subject:
Resolution Granting the City Manager Authority to Amend the City’s Position Control List to Add Deputy Director of Public Works – City Engineer.
FINANCIAL IMPACT: Given the number of vacancies, at this time, there is no net fiscal impact for amending position control to provide the option of reallocating the Deputy Director of Public Works - Operations and Maintenance as Deputy Director
of Public Works - City Engineer. Compensation for
subsequent fiscal years will be budgeted as needed.
PREVIOUS COUNCIL
ACTION:
March 22, 2022 – 21/22 Mid-Year Budget Adoption
June 5, 2022- 22/23 Budget Adoption
STATEMENT OF THE
ISSUE:
City Council's approval is required to amend the City’s authorized staffing (i.e., position control list) to reallocate positions, and appropriate funds for wages, salaries, and associated compensation.
RECOMMENDED ACTION:
ADOPT a resolution granting the city manager
permission to amend the current position control list to reallocate the Deputy Director of Public Works -
Operations and Maintenance as Deputy Director of
Public Works - City Engineer – City Manager’s
Office/Human Resources Department (Shasa
Curl/Sharrone Taylor 510-620-6602).
AGENDA
REPORT
September 20, 2022
DISCUSSION:
The City’s infrastructure is aging, and the built environment is in dire need of attention.
To address these critical issues, the city manager is requesting City Council’s permission to reallocate the current Deputy Director of Public Works – Operations and Maintenance position as a Deputy Director of Public Works – City Engineer position as deemed appropriate to fulfill the City’s needs.
In the City Manager’s analysis, an additional engineer can best address the structural and infrastructure issues that are prevalent throughout the city. An experienced engineer, through their knowledge and expertise, can identify the problems and effectively remedy situations quickly based on their technical training. In addition, the Deputy Director of Public Works – City Engineer role can also oversee operations and maintenance and dispatch City staff to address these issues efficiently to meet the needs of the Richmond community.
FISCAL IMPACT:
Given the number of vacancies, at this time, there is no net fiscal impact for amending position control to provide the option of reallocating the Deputy Director of Public Works - Operations and Maintenance as Deputy Director of Public Works - City Engineer.
Compensation for subsequent fiscal years will be budgeted as needed.
SUMMARY:
To summarize, the resolution will grant the city manager authorization and flexibility to consider amending the City’s position control list, effective September 20, 2022, as follows:
Reallocation
Current New
Deputy Director of Public Works –
Operations and Maintenance
Deputy Director of Public Works – City
Engineer
RECOMMENDATION:
City staff recommends that City Council adopt a resolution granting the City Manager permission to amend the City’s staffing (i.e., position control) list and reallocate Deputy Director of Public Works – Operations and Maintenance as Deputy Director of Public Works – City Engineer, if the City Manager deems it appropriate to fulfill the City’s needs.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution amending Position Control
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 of the service to 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 September 13, 2022, the City’s position control is hereby revised as follows:
Deleted Classification Added Classification
Deputy Director of Public Works –
Operations and Maintenance
Deputy Director of Public Works –
City Engineer
-----------
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
September 20, 2022
Library and Community Services
DATE: September 20, 2022
TO: Mayor Butt and Members of the City Council
FROM:
LaShonda White, Interim Library and Community
Services Director
Ranjana Maharaj, Deputy Director for Community
Services-Recreation
Jene Levine-Snipes, Development Project Manager
Stephanie Ny, Associate Administrative Analyst
Subject:
Contract with Rebuilding Together East Bay-North for
Resilience Hubs
FINANCIAL IMPACT: There will be no impact to the General Fund for this contract. The cost of this contract will be funded using grant funds awarded for the power hubs project by PG&E
(Account String 10651051-400201-25G10)
PREVIOUS COUNCIL
ACTION:
April 5, 2022
STATEMENT OF THE
ISSUE:
On April 5, 2022, City Council adopted a resolution to
accept and appropriate grant funds in the amount of
$100,000 from PG&E to create power hubs at Nevin and
Shields-Reid Community Centers.
RECOMMENDED ACTION:
APPROVE a sole-source contract with Rebuilding
Together East Bay-North, in an amount not to exceed
$90,000, to procure and mobilize equipment for the
power hubs project, with a term from October 1, 2022,
through June 30, 2023 – Library and Community
Services Department (LaShonda White/Stephanie Ny
510-620-6563)
AGENDA
REPORT
September 20, 2022
DISCUSSION:
The City of Richmond Community Services Department was awarded the Pacific Gas and Electric (PG&E) Resilience Hubs grant award in the amount of $100,000 from PG&E to create power hubs at Nevin and Shields-Reid Community Centers. With the Resilience Hubs grant, backup energy supplies will be created to allow the facilities to function as resilience hubs (power hubs) in times of climate-related disasters.
The project will also support the PG&E Better Together Resilient Communities grant that was awarded to the City on November 30, 2021. With the Better Together Resilient Communities grant, shade and cooling structures with misting nozzles will be created.
The Resilience Hubs grant will be used to create storage for the structures and power stations.
The power hubs project is the result of a collaboration in grant application submittal with the City and Rebuilding Together East Bay-North (RTEBN), a local non-profit. Based on their integral role in the grant award, City staff has provided a sole source justification.
Through this contract, RTEBN will provide the following services:
Procurement
Mobilization
Electrification
Security
It is anticipated that the project will be completed by June 30, 2023.
DOCUMENTS ATTACHED:
Attachment 1 – Rebuilding Together East Bay-North Contract Attachment 2 – Sole Source Justification
CITY OF RICHMOND
STANDARD CONTRACT
Department: Project Manager:
Project Manager E-mail:
Project Manager Phone No:
PR No: Vendor No: P.O./Contract No:
Description of Services:
The parties to this STANDARD CONTRACT do mutually agree and promise as follows:
1. Parties.
The parties to this Contract are the City of Richmond (herein referred to as the “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. Term.
The effective date of this Contract is and it terminates unless terminated as provided herein.
3. Payment Limit.
City’s total payments to Contractor under this Contract shall not exceed $ . City shall not pay for services that exceed the Contract Payment Limit unless a contract amendment has been approved by the City Council or City Manager.
4. Contractor’s Obligations.
Contractor shall provide those services and carry out
that work described in the Service Plan (Exhibit A) which is attached hereto and is incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
5. City's Obligations.
City shall make to the Contractor those payments described in the Payment Provisions (Exhibit B) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
6. Authorized Representatives and Notices. This Contract is subject to the Authorized Representatives and Notices Provisions (Exhibit C) which are attached hereto and are incorporated herein by reference.
7. General Conditions.
This Contract is subject to the General Conditions
(Exhibit D) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
8. Special Conditions
. This Contract is subject to the Special Conditions (Exhibit E) (if any) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein. (Note:
other than Public Works contracts, the City will agree to Special Conditions only in unusual circumstances.)
9. Insurance Provisions.
This Contract is subject to the Insurance Provisions
(Exhibit F) which are attached hereto and are incorporated herein by reference.
10. Signatures. These signatures attest the parties' Contract hereto:
CITY OF RICHMOND CONTRACTOR:
a municipal corporation
By:
(* The Corporation Chairperson of the Board,
President or Vice President should sign below)
Title: By:
I hereby certify that this Contract Title:
has been approved by City Council.
Date Signed:
B y :
City Clerk
(* The Corporation Chief Financial Officer,
Secretary or Assistant Secretary should sign below)
Approved as to form:
B y :
B y : T i t l e :
City Attorney
Date Signed:
(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a corporation
or nonprofit organization, this Contract (1) must
be signed by (a) the Chairperson of the Board,
President or Vice-President and
(b) the
Secretary any Assistant Secretary, the Chief
Financial Officer or any Assistant Treasurer.
LIST OF ATTACHMENTS:
Service Plan Exhibit A
Payment Provisions Exhibit B
Authorized Representatives and Notices Exhibit C
General Conditions Exhibit D
Special Conditions Exhibit E
Insurance Provisions Exhibit F
Standard Contract/EJ/TE 9-26-07
For the Contract between the City of
Richmond and
EXHIBIT A
SERVICE PLAN
Contractor shall, to the satisfaction of the , perform the following services and be compensated as outlined below:
Exhibit A - Service Plan
Exhibit A - Service Plan
Scope of Services
● Procure, mobilize, and secure two (2) shipping containers to be located at Shields-Reid Park and Nevin Park to store emergency cooling center equipment and mobile solar power station equipment.
○ Shipping container placement to be approved by City of Richmond. ● Build in solar power into two (2) shipping containers, providing microgrid charging and storage.
● Procure four (4) mobile solar power stations.
○ Power stations will be equipped with solar panels enough power to run a full-size fridge for up to four days, power medical devices, power tools, lights, and more. ○ Power stations will be able to power a wide range of devices with different port options including fast-charging 60W USB-C Power Delivery, USB-A ports, regulated 12V, and 120V AC ports.
○ Power stations will have the flexibility to be charged in two different ways: in the wall charge or solar panel charge.
● Procure at least eighteen (18) power amps and eighteen (18) industrial power strips/cords, and additional power accessories (USB and lightning cables, power ports, etc.)
● Tag City of Richmond Community Services Department Facebook and Instagram handles (@richmondcsd) on any Facebook or Instagram content created related to the contract.
● Recognize City of Richmond Community Services Department and the PG&E Resilience Hubs Grant in all content related to the contract.
● Meet with City of Richmond staff on a monthly basis for the duration of the contract. ● Provide reports as requested by City of Richmond for grant reporting purposes. ● Prepare and submit quarterly invoices to City of Richmond in provided format. ○ Invoices are due 1 month after end of quarter.
Expenditures
PERSONNEL $9,000.00
Executive Director $2,200.00
Operations Director $3,500.00
Volunteer Coordinator $3,300.00
SUPPLIES AND EQUIPMENT $81,000.00
Mobile Solar Power Stations (4) $40,000.00
Shipping Containers (2) and Mobilization $10,000.00
Exhibit A - Service Plan
Electrification/Security, Including Power Amps, Industrial Power Strips/Cords, and Additional Power Accessories (USB and Lightning Cables, Power Ports, etc.)
$31,000.00
TOTAL: $90,000.00
Timeline
● October 1, 2022: Research on supplies and equipment completed. ● November 1, 2022 - June 30, 2023: Procurement and mobilization in coordination with the City of Richmond.
For the Contract between the City of
Richmond and
EXHIBIT B
PAYMENT PROVISIONS
{PLEASE NOTE THAT THE CITY OF RICHMOND SHALL NOT PAY FOR SERVICES
THAT EXCEED THE CONTRACT PA YMENT LIMIT UNLESS A CONTRACT
AMENDMENT HAS BEEN APPROVED BY THE CITY COUNCIL OR THE CITY MANAGER}
1. Provided Contractor is not in default under this Contract, Contractor shall be compensated as provided below.
2. Any and all payments made pursuant to this Contract shall be subject to the Contract Payment Limit. The Payment Limit includes expenses (phones, photo copying, meals and travel etc). Invoices, shall be adequately detailed, based on accurate records, and be in a form reasonably satisfactory to the City. Contractor may be required to provide back-up material upon request.
3. Contractor shall submit timely invoices to the following address:
Attention: City of Richmond, Finance Department - Accounts Payable Project Manager: Department:
PO Box 4046
Richmond, CA 94804-0046
4. All invoices that are submitted by Contra ctor shall be subject to the approval of the City’s Project Manager, before payments shall be authorized.
5. The City will pay invoice(s) within 45 days a fter completion of services to the City’s satisfaction. The City shall not pay late fees or interest.
6. A Richmond business license shall be obtained before any payment under this Contract shall be authorized and the business license must be kept current during the term of this Contract for payments to continue to be authorized.
7. All insurance coverage required by this Contract shall be provided by the Contractor before this Contract shall be executed by the City. The insurance coverage must be kept current during the term of this Contract for payments to continue to be authorized.
For the Contract between the City of
Richmond and
EXHIBIT C
AUTHORIZED REPRESENTATIVES AND NOTICES
1. Notices
. All notices, demands, statements, or communications provided for by this Contract shall be in writing and may be delivered by deposit in the United States mail, postage prepaid. Notices to the City shall be addressed to the Department Head and (as delineated below in section 1.1) to the project manager responsible for the administration of or the supervision of the scope of work under this Contract. Notices to the Contractor shall be addressed to the party designated by Contractor (as delineated below in section 1.2). Notice shall be deemed delivered (a) upon personal delivery; (b) as of the fifth business day after mailing by United States certified mail, postage prepaid, addressed to the proper party; or (c) as of 12:00 p.m. on the second business day immediately after the day it is deposited with and accepted by Federal Express, or a similar overnight courier service, addressed to the proper party and marked for next business day morning delivery. For the purposes of this Contract, a "business day" means any day Monday through Friday that is not a holiday recognized by the federal government or the State of California.
1. 1 CITY hereby designates as its Authorized Representative the Project Manager whose name and address are as follows:
City of Richmond
Richmond, CA 94804-0046
1. 2 CONTRACTOR hereby designates as its Authorized Representative the Project Manager whose name and address are as follows:
General Conditions/EJ/TE 01-19-11 1 of 13
EXHIBIT D
GENERAL CONDITIONS
1. Independent Contractor . Contractor acknowledges, represents and warrants that Contractor is not a regular or temporary employee, joint venturer or partner of the City, but rather an independent Contractor. This Contract shall not be construed to create an agency, servant, employee, partnership, or joint venture relationship. As an independent Contractor, Contractor shall have no authority to bind City to any obligation or to act as City's agent except as expressly provided herein. Due to the independent Contractor relationship created by this Contract, City shall not withhold state or federal income taxes, the reporting of which shall be Contractor's sole responsibility.
2. Brokers . Contractor acknowledges, represents and warrants that Contractor has not hired, retained or agreed to pay any entity or person any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this Contract.
3. City Property . The rights to applicable plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials prepared for or obtained pursuant to this Contract, which, upon request, are to be delivered to City within a reasonable time, shall be deemed assigned to City. If applicable, Contractor shall prepare check prints upon request. Notwithstanding the foregoing, Contractor shall not be obligated to provide to City proprietary software or data which Contractor has developed or had developed for Contractor's own use; provided, however, that Contractor shall, pursuant to Section 15 below, indemnify, defend and hold harmless City from and against any discovery or Public Records Act request seeking the disclosure of such proprietary software or data.
4. Patents, Trademarks, Copyrights and Rights in Data
. Contractor shall not
publish or transfer any materials, discoveries, developments, concepts, designs, ideas, know how, improvements, inventions and/or original works of authorship resulting from activities supported by this Contract without the express prior written consent of the City Manager. If anything resulting from activities supported by this Contract is patentable, trademarkable, copyrightable or otherwise legally protectable, City reserves the exclusive right to seek such intellectual property rights. Notwithstanding the foregoing, Contractor may, after receiving City's prior written consent, seek patent, trademark, copyright or other intellectual property rights on anything resulting from activities supported by this Contract. However, City reserves, and Contractor irrevocably grants, a nonexclusive, fully paid-up, royalty-free, assumable, perpetual, worldwide license, with the right to transfer, sublicense, practice and exploit said license and the right to make, have made, copy, modify, make derivative works of, use, sell,
General Conditions/EJ/TE 01-19-11 2 of 13
import, and otherwise distribute under all applicable intellectual properties without restriction of any kind said license.
Contractor further agrees to assist City, at City's expense, in every proper way to secure the City’s rights in any patents, trademarks, copyrights or other intellectual property rights relating thereto, including the disclosure to City of all pertinent information and data with respect thereto. Contractor shall also assist City in the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which City shall deem necessary in order to apply for, obtain, maintain and transfer such rights, or if not transferable, to waive such rights. Contractor shall further assist City in the execution of all applications, specifications, oaths, assignments, recordations and all other instruments which City shall deem necessary in order to assign and convey to City, and any assigns and nominees the sole and exclusive right, title and interest in and to any patents, trademarks, copyrights or other intellectual property rights relating thereto. Contractor further agrees that its obligation to execute or cause to be executed, when it is in Contractor's power to do so, any such instruments or papers shall continue during and at all times after the end of Contractor's services and until the expiration of the last such intellectual property right. Contractor hereby irrevocably designates and appoints City, and its duly authorized officers, agents and servants, as its agent and attorney-in-fact, to act for and in its behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters of patents, copyright and other registrations. This power of attorney is coupled with an interest and shall not be affected by Contractor's subsequent incapacity.
5. Inspection
. Contractor's performance, place of business and records pertaining to this Contract are subject to monitoring, inspection, review and audit by authorized representatives of the CITY, the State of California, and the United States Government.
If the project or services set forth in Exhibit A shall be performed on City or other public property, City shall have the right to inspect such work without notice. If such project or services shall not be performed on City or other public property, City shall have the right to inspect such work upon reasonable notice.
6. Services
. The project or services set forth in Exhibit A shall be performed to the full satisfaction and approval of City. In the event that the project or services set forth in Exhibit A are also itemized by price, City, in its sole discretion, may, upon notice to Contractor, delete certain items or services set forth in Exhibit A, in which case there shall be a corresponding reduction in the amount of compensation paid to Contractor.
General Conditions/EJ/TE 01-19-11 3 of 13
Contractor shall, at its own cost and expense, furnish all facilities and equipment necessary for Contractor to complete the project or perform the services required herein, unless otherwise provided in Exhibit A.
7. Records . Contractor shall keep and make available for inspection and copying by authorized representatives of the City, the State of California, and the United States Government, the Contractor's regular business records and such additional records pertaining to this Contract as may be required by the City.
Contractor shall retain all documents pertaining to this Contract for a period of five (5) years after this C ontract's termination (or for any further period that is required by law) and until all Fede ral or State audits are complete and exceptions resolved for this contract's funding period. Upon request, CONTRACTOR shall make these records available to authorized representatives of the CITY, the State of California, and the United States Government.
Contractor shall keep full and detailed accounts, maintain records, and exercise such controls as may be necessary for proper financial management under this Contract. The Contractor’s accounting and control systems shall be satisfactory to City. Contractor's accounting systems shall conform to generally accepted accounting principles and all records shall provide a breakdown of total costs charged under this Contract, including properly executed payrolls, time records, utility bills, invoices and vouchers. The City shall be afforded prompt access to Contractor's records, books, and Contractor shall preserve such project records for a period of at least five (5 years after the termination of this Contract , or for such longer period as may be required by law.
Contractor shall permit City and its authorized representatives and accountants to inspect, examine and copy Contractor's books, records, accounts, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to the project or services set forth in Exhibit A, and any and all data relevant to this Contract at any reasonable time for the purpose of auditing and verifying statements, invoices, or bills submitted by Contractor pursuant to this Contract and shall provide such assistance as may be reasonably required in the course of such inspection. Contractor shall also allow City access to the record keeping and accounting personnel of Contractor.
City further reserves the right to examine and re-examine said books, records, accounts, and data during the five (5 year period following the termination of this Contract; and Contractor shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, and data in any manner whatever for five (5 years after the termination of this Contract.
General Conditions/EJ/TE 01-19-11 4 of 13
Pursuant to California Government Code § 10527, the parties to this Contract shall be subject to the examination and audit of representatives of the Auditor General of the State of California for a period of three (3) years after final payment under this Contract. The examination and audit shall be confined to those matters connected with the performance of this Contract including, but not limited to, the cost of administering this Contract.
8. Changes and Extra Work . All changes and/or extra work under this Contract shall be performed and paid for in accordance with the following:
Only the City Council or the City Manager may authorize extra and/or changed work. Contractor expressly recognizes that other City personnel are without authorization to either order extra and/or changed work or waive contract requirements. Failure of Contractor to secure the authorization for such extra and/or changed work shall constitute a waiver of any and all right to adjustment in contract price due to such unauthorized work and Contractor thereafter shall be entitled to no compensation whatsoever for performance of such extra and/or changed work.
If Contractor is of the opinion that any work which Contractor has been directed to perform is beyond the scope of this Contract and constitutes extra work, Contractor shall promptly notify City of the fact. The City shall make a determination as to whether or not such work is, in fact, beyond the scope of this Contract and constitutes extra work. In the event that City determines that such work does constitute extra work, City shall provide extra compensation to Contractor on a fair and equitable basis. A change order or Contract Amendment providing for such compensation for extra work shall be negotiated between City and Contractor and executed by Contractor and the appropriate City official.
In the event City determines that such work does not constitute extra work, Contractor shall not be paid extra compensation above that provided herein and if such determination is made by City staff, said determination may be appealed to the City Council; provided, however, a written appeal must be submitted to the City Manager within five (5) days after the staff's determination is sent to Contractor. Said written appeal shall include a description of each and every ground upon which Contractor challenges the staff's determination.
9. Additional Assistance
. If this Contract requires Contractor to prepare
plans and specifications, Contractor shall provide assistance as necessary to resolve any questions regarding such plans and specifications that may arise during the period of advertising for bids, and Contractor shall issue
General Conditions/EJ/TE 01-19-11 5 of 13
any necessary addenda to the plans and specifications as requested. In the event Contractor is of the opinion that City's requests for addenda and assistance is outside the scope of normal services, the parties shall proceed in accordance with the changes and extra work provisions of Section 8 of these General Conditions.
10. Professional Ability. Contractor acknowledges, represents and warrants that Contractor and its employees are skilled and able to competently provide the services hereunder, and possess all professional licenses, certifications, and approvals necessary to engage in their occupations.
City has relied upon the professional ability and training of Contractor as a material inducement to enter into this Contract. Contractor shall perform in accordance with generally accepted professional practices and standards of Contractor's profession. In the event that City, in its sole discretion, desires the removal of any person employed or retained by Contractor to perform services hereunder, such person shall be removed immediately upon receiving notice from City.
11. Business License
. Contractor shall obtain a Richmond Business License
before performing any services required under this Contract. The failure to so obtain such license shall be a material breach of this Contract and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual or extraordinary circumstances without necessitating any modification of this Contract to reflect such waiver.
12. Termination Without Default
. Notwithstanding any provision herein to the
contrary, City may, in its sole and absolute discretion and without cause, terminate this Contract at any time prior to completion by Contractor of the project or services hereunder, immediately upon written notice to Contractor. Contractor may terminate this Contract at any time in its sole and absolute discretion and without cause upon 30 days' written notice to City. In the event of termination by either party, Contractor shall be compensated for: (1) all authorized work satisfactorily performed prior to the effective date of termination; (2) necessary materials or services of others ordered by Contractor for this Contract, prior to receipt of notice of termination, irrespective of whether such materials or services of others have actually been delivered, provided that Contractor is not able to cancel such orders. Compensation for Contractor in such event shall be determined by City in accordance with the percentage of the project or services completed by Contractor; and all of Contractor's finished or unfinished work product through the time of the City's last payment shall be transferred and assigned to City. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.
General Conditions/EJ/TE 01-19-11 6 of 13
13. Termination in the Event of Default. Should Contractor fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Contract, City may immediately terminate this Contract by giving written notice of such termination, stating the reasons for such termination. Contractor shall be compensated as provided in Section 12 of these General Conditions; provided, however, there shall be deducted from such amount the amount of damage, including attorney's fees, expert witness fees and costs, if any, sustained by City by virtue of Contractor's breach of this Contract. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.
14. Conflict of Interest. Contractor acknowledges, represents and warrants that Contractor shall avoid all conflicts of interest (as defined under any federal, state or local statute, rule or regulation, or at common law) with respect to this Contract. Contractor further acknowledges, represents and warrants that no City official or employee has any economic interest, as defined in Title 2, California Code of Regulations §§ 18703.1 through 18703.5, with Contractor that would invalidate this Contract. Contractor acknowledges that in the event that Contractor shall be found by any judicial or administrative body to have any conflict of interest (as defined above) with respect to this Contract, all consideration received under this Contract shall be forfeited and returned to City forthwith. This provision shall survive the termination of this Contract for one (1) year.
15. Indemnification
.
(a) If this Contract is a contract for design professional services subject to California Civil Code Section 2782.8(a) and Contractor is a design professional, as defined in California Civil Code Section 2782.8(b)(2), Contractor shall hold harmless, defend and indemnify the City, its officers, agents, employees, and volunteers from and against any and all claims, damages, losses, and expenses including attorneys’ fees arising out of, or pertaining to, or relating to the negligence, recklessness, or willful misconduct of the Contractor, except where caused by the active negligence, sole negligence, or willful misconduct of the City. To the fullest extent permitted by law, Contractor shall immediately defend and indemnify the City and its officers, agents, employees, and volunteers from and against any and all liabilities, regardless of nature or type, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, or its employees, agents, or subcontractors.
Liabilities subject to the duties to defend and indemnify include, without limitation, any and all claims, losses, damages, penalties, fines, and judgments; associated investigation and administrative expenses; defense costs, including but not limited to reasonable attorneys’ fees; court costs; and costs of alternative dispute resolution. Contractor’s obligation to
General Conditions/EJ/TE 01-19-11 7 of 13
indemnify applies unless it is finally adjudicated that the liability was caused by the sole active negligence or sole willful misconduct of an indemnified party.
(b) If this Contract is not a contract for design professional services subject to California Civil Code Section 2782.8(a) or Contractor is not a design professional as defined in California Civil Code Section 2782.8(b)(2), Contractor shall indemnify, defend, and hold harmless the City, its officers, agents, employees and volunteers from any and all claims, suits, or actions of every name, kind and description, brought forth on account of injuries to or death of any person or damage to property arising from or connected with the willful misconduct, negligent acts, errors or omissions, ultra-hazardous activities, activities giving rise to strict liability, or defects in design by Contractor or any person directly or indirectly employed by, or acting as, the agent for Contractor in the performance of this Contract, including the concurrent or successive passive negligence of the City, its officers, agents, employees or volunteers.
(c) It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Contractor shall be obligated to defend, in all legal, equitable, administrative, or special proceedings, with counsel approved by the City, the City and its officers, agents, employees, and volunteers, immediately upon tender to Contractor of the claim in any form or at any stage of an action or proceeding, whether or not liability is established. An allegation or determination that persons other than Contractor are responsible for the claim does not relieve Contractor from its separate and distinct obligation to defend under this Section 15. The obligation to defend extends through final judgment, including exhaustion of any appeals. The defense obligation includes an obligation to provide independent counsel if Contractor asserts that liability is caused in whole, or in part, by the negligence or willful misconduct of an indemnified party. (d) The review, acceptance or approval of the Contractor’s work or work product by any indemnified party shall not affect, relieve or reduce the Contractor’s indemnification or defense obligations. This Section 15 survives completion of the services or the termination of this Contract.
The provisions of this Section 15 are not limited by, and do not affect, the provisions of this Contract relating to insurance.
(e) Acceptance of insurance certificates and endorsements required under this Contract does not relieve Contractor from liability under this Section
15. This Section 15 shall apply whether or not such insurance policies are determined to be applicable to any such damages or claims for damages.
16. Safety
. Contractor acknowledges that the City is committed to the highest standards of workplace safety. Contractor shall perform all work hereunder in full compliance with applicable local, state and federal safety requirements including but not limited to Occupational Safety and Health Administration requirements, and shall assume sole and complete
General Conditions/EJ/TE 01-19-11 8 of 13
responsibility for the safety of Contractor's employees and any subContractor's employees. If a death, serious personal injury or substantial property damage occurs in connection with the performance of this Contract, Contractor shall immediately notify the City by telephone.
17. Insurance. Insurance requirements are set forth in Exhibit F to this Contract. Contractor shall abide by the insurance requirements set forth in said Exhibit F.
18. Non-Liability of Officials and Employees of the City. No official or employee of the City shall be personally liable for any default or liability under this Contract.
19. Compliance with Laws
. Contractor shall comply with all federal, state and
local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, with respect to this Contract, including without limitation environmental laws, employment discrimination laws and prevailing wage laws. Compliance under this provision includes compliance with all provisions of the Richmond Municipal Code ("Municipal Code"), including Chapters 2.50, 2.52, 2.56, and 2.60, if applicable.
Contractor acknowledges that under § 2.60.070 of the Municipal Code ("Living Wage Ordinance"), Contractor shall promptly provide to City documents and information verifying its compliance with the Living Wage Ordinance. Also as prescribed in § 2.60.070, Contractor shall notify each of its affected employees with regards to the wages that are required to be paid pursuant to the Living Wage Ordinance.
Contractor shall comply with § 2.28.030 of the Municipal Code, obligating every Contractor or subcontractor under a contract or subcontract with the City for public work or for goods or for services to refrain from discriminatory employment or subcontracting practices on the basis of race, color, sex, sexual orientation, religious creed, national origin or ancestry of any employee, any applicant for employment or any potential subcontractor.
Contractor acknowledges that the City’s Drug Free Workplace Policy, Violence in the Workplace Policy and the Policy Against Workplace Harassment, are available on the City’s website at
http://www.ci.richmond.ca.us/workplacepolicies
. Contractor agrees to
abide by the terms and conditions of said policies.
20. Limitations upon Subcontracting and Assignment. This Contract binds the heirs, successors, assigns and representatives of Contractor. The Contractor shall not enter into subcontracts for any work contemplated
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under this Contract and shall not assign this Contract, nor any portion hereof or monies due or to become due, without the prior written consent of the City Council or its designee.
Contractor acknowledges that the services which Contractor shall provide under this Contract are unique, personal services which, except as otherwise provided herein, Contractor shall not assign or sublet to any other party without the prior written approval of City, which approval may be withheld in City's sole and absolute discretion. In the event that City, in writing, approves any assignment or subletting of this Contract or the retention of subcontractors by Contractor, Contractor shall provide to City upon request copies of each and every subcontract contract prior to the execution thereof by Contractor and subcontractor. Any assignment by Contractor of any or all of its rights under this Contract without first obtaining City's prior written consent shall be a default under this Contract.
The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor (if applicable), or of the interest of any general partner or joint venturer or syndicate member if Contractor is a partnership or joint-venture or syndicate, which shall result in a change of control of Contractor, shall be deemed an assignment. For this purpose, control shall mean fifty percent or more of the voting power or twenty-five percent or more of the assets of the corporation, partnership or joint-venture.
21. Integration
. This Contract constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes any previous oral or written agreement; provided, however, that correspondence or documents exchanged between Contractor and City may be used to assist in the interpretation of the Exhibits to this Contract.
22. Modifications and Amendments. This Contract may be modified or amended only by a change order or Contract Amendment executed by both parties and approved as to form by the City Attorney.
23. Conflicting Provisions. In the event of a conflict between these General Conditions and those of any Exhibit or attachment hereto, these General Conditions shall prevail; provided, however, that any Special Conditions as set forth in Exhibit E shall prevail over these General Conditions. In the event of a conflict between the terms and conditions of any two or more Exhibits or attachments hereto, those prepared by City shall prevail over those prepared by the Contractor, and the terms and conditions preferred by the City shall prevail over those preferred by the Contractor.
24. Non-exclusivity. Notwithstanding any provision herein to the contrary, the services provided by Contractor hereunder shall be non-exclusive, and
General Conditions/EJ/TE 01-19-11 10 of 13
City reserves the right to employ other Contractors in connection with the project.
25. Exhibits. All Exhibits hereto are made a part hereof and incorporated herein by reference; provided, however, that any language in Exhibit A which does not pertain to the project description, proposal, scope of services, or method of compensation (as applicable) , or any corresponding responsibilities of City, shall be deemed extraneous to, and not a part of, this Contract.
26. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligations hereunder to the extent that the performance of such an obligation is prevented or delayed by reason of acts of God, strikes, boycotts, lock-outs, inability to procure materials not related to the price thereof, failure of power, restrictive governmental laws and regulations enacted after the date of this Contract, riots, civil unrest, acts of terrorism, insurrection, war, declaration of a state or national emergency or other reasons of a like nature not within the reasonable control of such party.
27. Time of the Essence
. Time is of the essence of this Contract. Contractor and City agree that any time period set forth in Exhibit A represents their best estimates with respect to completion dates and both Contractor and City acknowledge that departures from the schedule may occur.
Therefore, both Contractor and City will use reasonable efforts to notify one another of changes to the schedule. Contractor shall not be responsible for performance delays caused by others, or delays beyond Contractor's control, and such delays shall extend the times for performance of Contractor's work.
28. Confidentiality
. Contractor agrees to comply with, and to require its employees, agents and partners to comply with, all applicable State or Federal statutes or regulations respecting confidentially, including but not limited to, the identity of persons served under this Contract, their records, or services provided them, and assures that:
All applications and records concerning any individual made or kept by Contractor or any public officer or agency in connection with the administration of or relating to services provided under this Contract will be confidential, and will not be open to examination for any purposes not directly connected with the administration of such service.
No person will publish or disclose or permit or cause to be published or disclosed, any list of persons receiving services, except as may be required in the administration of such service.
General Conditions/EJ/TE 01-19-11 11 of 13
29. Third Parties. Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Contract shall not be considered "third parties."
30. Governing Law. This Contract shall be construed in accordance with the law of the State of California without regard to principles of conflicts of law.
This Contract is made in Contra Costa County, California, and any action relating to this Contract shall be instituted and prosecuted in the courts of Contra Costa County, California.
31. Nonrenewal
. Contractor understands and agrees that there is no
representation, implication, or understanding that the services provided by Contractor under this Contract will be purchased or renewed by the City under a new contract following expiration or termination of this Contract, and waives all rights or claims to notice or hearing respecting any failure by City to continue the purchase of all or any failure to continue purchase of all or any such services from Contractor.
32. Claims. Any claim by Contractor against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City shall be waived if not made within six months after accrual of the cause of action.
33. Interpretation. This Contract shall be interpreted as if drafted by both parties.
34. Warranty. In the event that any product shall be provided to the City as part of this Contract, Contractor warrants as follows: Contractor possesses good title to the product and the right to transfer the product to City; the product shall be delivered to the City free from any security interest or other lien; the product meets any specifications contained herein; the product shall be free from material defects in materials and workmanship under normal use for a period of one (1) year from the date of delivery; and the product shall be fit for its intended purpose(s). Notwithstanding the foregoing, consumable and maintenance items (such as light bulbs and batteries) shall be warranted for a period of one hundred and eighty (180) days from the date of delivery. All repairs during the warranty period shall be promptly performed by Contractor, at Contractor's expense, including shipping.
35. Severability
. In the event that any of the provisions or portions or applications thereof of this Contract are held to be unenforceable or invalid by any court of competent jurisdiction, City and Contractor shall negotiate an equitable adjustment in the provisions of the Contract with a view
General Conditions/EJ/TE 01-19-11 12 of 13
toward effecting the purpose of this Contract, and the validity and enforceability of the remaining provisions or portions or applications thereof, shall not be affected thereby.
36. Authority. City warrants and represents that the signatory hereto (the Mayor of the City of Richmond or the City Manager) is duly authorized to enter into and execute this Contract on behalf of City. The party signing on behalf of Contractor warrants and represents that he or she is duly authorized to enter into and execute this Contract on behalf of Contractor, and shall be personally liable to City if he or she is not duly authorized to enter into and execute this Contract on behalf of Contractor.
37. Waiver. The waiver by City of any breach of any term or provision of this Contract shall not be construed as a waiver of any subsequent breach.
Inspections or approvals, or statements by any officer, agent or employee of the City relating to the Contractor’s performance, or payments therefore, or any combination of these acts, shall not relieve the Contractor’s obligation to fulfill this Contract as prescribed; nor shall the City be thereby stopped from bringing any action for damages or enforcement arising from any failure to comply with any of the terms and conditions of this Contract.
38. Possessory Interest. If this Contract results in the Contractor having possession of, claim to or right to the possession of land or improvements, but does not vest ownership of the land or improvements in the same person, or if this Contract results in the placement of taxable improvements on tax exempt land (Revenue and Taxation Code 107), such interest or improvements may represent a possessory interest subject to property tax, and Contractor may be subject to the payment of property taxes levied on such interest.
39. Performance and Final Acceptance
.
Contractor represents that it is experienced, qualified, registered, licensed, equipped, organized and financed to perform the services under this Contract.
Contractor shall perform the services under this Contract with that degree of skill and judgment normally exercised by professional firms performing services of a similar nature in the State of California, and shall be responsible for the professional quality, technical accuracy and coordination of the services it performs under this Contract. In addition to the other rights and remedies which City may have, Contractor shall, at its own expense, correct any services which fail to meet the above standard.
General Conditions/EJ/TE 01-19-11 13 of 13
City shall provide Contractor an opportunity to cure errors and omission which may be disclosed during the review of submittals, with no increase in the authorized Contract Payment Limit. Should Contractor fail to make necessary corrections in a timely manner, such corrections shall be made by the City and the cost thereof shall be charged to Contractor.
If warranted, City shall determine, and Contractor may request such determination, that Contractor has satisfactorily completed performance of this Contract. Upon such determination, City shall issue to Contractor a written Notice of Final Acceptance, after which Contractor shall not incur further costs under this Contract. Contractor shall respond to such Notice of Final Acceptance by executing and submitting to City a Release and Certificate of Final Payment.
40. Survival
. The rights and obligations of the parties which by their nature survive termination or completion of the services covered by this Contract shall remain in full force and effect after termination or completion.
For the Contract between the City of
Richmond and
EXHIBIT E
SPECIAL CONDITIONS
The General Conditions are hereby amended to include the following modifications and/or provisions (if applicable):
For the Contract between the City of
Richmond and
EXHIBIT F
INSURANCE PROVISIONS
During the entire term of this Contract and any extension or modification thereof, the CONTRACTOR shall keep in effect insurance policies meeting the insurance requirements specified in the insurance provisions which are attached hereto and incorporated herein by this reference.
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:
Consultants and Contractors
Type 1 – Page 1 of 4
Revised: September 2011
In all instances where a CONTRACTOR or its representatives will be conducting business and/or providing services, 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, 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) including coverage for bodily and personal injury, property damage, and products and completed operations.
2. Insurance Services Office Automobile Liability coverage (ISO Form CA 0001, Code 1, Any Auto)
3. Original and Separate Additional Insured Endorsements 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 and Builder’s Risk/ Course of Construction Insurance.
6. Builder’s Risk/Course of Construction insurance covering all risks of loss less policy exclusions when the City of Richmond has a financial interest in the property. – (Only required for Construction Contracts involving property)
7. Contractor’s Pollution Liability (if applicable for Construction Contractors)
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.
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:
Consultants and Contractors
Type 1 – Page 2 of 4
Revised: September 2011
PROJECT COST R EQUIRED LIMIT
$0 - $5 million $2 million p/o
$5 million - $10 million $5 million p/o
Over $10 million $10 million p/o
Fireworks $5 million p/o
General Liability
(primary and excess limits
combined)
Includes coverage for bodily injury, personal injury, property damage and products and completed operations. The policy shall not exclude coverage for XCU perils (explosion, collapse, or damage to underground property).
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.
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage.
Builders’ Risk/Course of
Construction – Covers property
under construction, repair or
renovation as well as equipment
and materials to be installed.
(Only required for Construction
Projects involving property and
equipment installation.)
Coverage shall include all risks of direct physical loss, excluding earthquake, for an amount equal to the full completed value of the covered structure or replacement value of alterations or additions, including soft costs and business interruption.
If the project does not involve new or major reconstruction, an Installation Floater may be acceptable. For such projects, a property installation floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken or destroyed during the performance of the Work, including during transit, installation and testing at the City of Richmond’s site.
The City of Richmond shall be named as loss payee as its interest may appear. The insurer shall waive all rights of subrogation against City.
Contractor’s Pollution Liability (if
applicable)
Protects against:
unexpected/unintended release of
pollution resulting from contractors
covered operations such as:
HVAC, paving, carpentry, pipeline
& tank installation, drillers,
remediation contractors,
maintenance, mechanical,
demolition, excavation, grading,
street/road construction,
residential & commercial builders.
Same limits as General Liability.
Required Policy Conditions
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.
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 but not limited to 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. The endorsement must not
exclude products and completed operations
coverage. If it does, then CG 20 37 (10/01) is also required.
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:
Consultants and Contractors
Type 1 – Page 3 of 4
Revised: September 2011
Additional Insured Endorsement
(continued)
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 and Builder’s Risk/ Course of Construction coverage 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.
Loss Payable Endorsement (only
required when Builder’s Risk
and/or Course of Construction
Insurance is required.)
Applicable to Builder’s Risk/Course of Construction naming the City of Richmond as Loss Payee.
SURETY BONDS
(If a Public Works/Engineering
Project)
The Contractor shall provide:
1. A Bid bond
2. A Performance Bond
3. A Payment Bond
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 coverages and cover those insured in the underlying policies.
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.
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:
Consultants and Contractors
Type 1 – Page 4 of 4
Revised: September 2011
Verification of Coverage
All original certificates and endorsements shall be received and approved by the City before work may begin . The City
of Richmond reserves the right to require complete, certified copies of all required insurance policies including endorsements affecting the coverage at any time.
Original insurance certificates and required policy endorsements shall be mailed, or delivered to the Designated Project Manager for the City of Richmond.
Insurance certificates and endorsements may be faxed to the Designated Project Manager. However, Contractor must mail the original certificates and endorsements to Designated Project Manager once faxed.
Continuous Coverage
CONTRACTOR shall maintain the required insurance for the life of the contract. Should the CONTRACTOR cease to have insurance as required during this time, all work by the CONTRACTOR pursuant to this agreement shall cease until insurance acceptable to the City is provided. In the event that CONTRACTOR fails to comply with the City’s insurance requirements, the City may take such action as it deems necessary to protect the City’s interests. Such action may include but is not limited to termination of the contract, withholding of payments, or other actions as the City deems appropriate.
If services or the scope of work extend beyond the expiration dates of the required insurance policies initially approved by the City, CONTRACTOR must provide updated certificates and endorsements indicating that the required coverage, terms and conditions are still in place. Renewal certificates and updated endorsements shall be mailed to the Designated Project Manager.
Cancellation
CONTRACTOR shall ensure that coverage shall not be cancelled, reduced or otherwise materially changed except after thirty (30) days’ prior written notice has been given to the City.
Reporting Requirements
Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers.
Consistent with Public Policy
The insuring provisions, insofar as they may be judged to be against public policy shall be void and unenforceable only to the minimum extent necessary so that the remaining terms and provisions herein may be consistent with public policy and thus enforceable.
September 20, 2022
Mayor's Office
DATE: September 20, 2022
TO: Members of the City Council
FROM: Tom Butt, Mayor
Subject: Drive Electric Week – September 23 – October 2, 2022 FINANCIAL IMPACT: N/A
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
In 2011, Plug In America, the Electric Auto Association, and the Sierra Club recognized National Plug In Day to
raise awareness of the many benefits of all-electric and plug-in hybrid cars, trucks, motorcycles, and more. In
2014, the celebration was expanded to National Drive
Electric Week, in which attendance more than doubled
that of 2013 with over 90,000 people participating in 152 events in 150 cities in 39 U.S. states, Italy, Canada, and The Netherlands.
RECOMMENDED ACTION: PROCLAMATION declaring September 23 – October 2, 2022, as Drive Electric Week in the City of Richmond –
Mayor’s Office (Mayor Tom Butt 510-620-6503).
DISCUSSION:
Petroleum-fueled vehicles are responsible for 30 percent of U.S. greenhouse gas emissions and are a contributing factor to air pollution and climate change, threatening the health of our community members and the sustainability of our planet. The transportation sector needs support to move toward adoption of clean energy AGENDA
REPORT
September 20, 2022
technology, including plug-in electric vehicles, that reduces our dependence on foreign fuels and supports a healthy environment and economy.
The City of Richmond is dedicated to being a leader in the use of clean energy, establishing policies and programs that conserve energy and promote sustainability. the City of Richmond and the East Bay Electric Vehicle Association will be hosting a Drive Electric Event and EV Carshare Launch on Wednesday, September 28 from 11:30 am to 1:00 pm at the Richmond Civic Center, located at 450 Civic Center Plaza, offering opportunities to see new EV models, learn more about the benefits of EV ownership from vehicle owners, gain access to EV charging equipment, and sign up for financing options, rebates, and related services from community benefit organizations (www.tinyurl.com/RichCADEW2022).
DOCUMENTS ATTACHED:
Attachment 1 – Proclamation
CITY OF RICHMOND, CALIFORNIA
P R O C L A M A T I O N
Declaring September 23 – October 2, 2022 as Drive Electric Week
WHEREAS, in 2011, Plug In America, the Electric Auto Association, and the Sierra Club recognized National Plug In Day to raise awareness of the many benefits of all-electric and plug- in hybrid cars, trucks, motorcycles, and more; and
WHEREAS, in 2014, the celebration was expanded to National Drive Electric Week, in which attendance more than doubled that of 2013 with over 90,000 people participating in 152 events in 150 cities in 39 U.S. states, Italy, Canada, and The Netherlands; and
WHEREAS, petroleum-fueled vehicles are responsible for 30% of U.S. greenhouse gas emissions and are a contributing factor to air pollution and climate change, threatening the health of our community members and the sustainability of our planet; and
WHEREAS, the transportation sector needs support to move toward adoption of clean energy technology, including plug -in electric vehicles, that reduces our dependence on foreign fuels and supports a healthy environment and economy; and
WHEREAS, the City of Richmond is de dicated to being a leader in the use of clean energy, establishing policies and programs that conserve energy and promote sustainability; and
WHEREAS, the City of Richmond and the East Bay Electric Vehicle Association will be hosting a Drive Electric Even t and EV Carshare Launch on Wednesday, September 28 from 11:30 am to 1:00 pm at the Richmond Civic Center, located at 450 Civic Center Plaza, offering opportunities to see new EV models, learn more about the benefits of EV ownership from vehicle owners, gain access to EV charging equipment, and sign up for financing options, rebates, and related services from community benefit organizations (www.tinyurl.com/RichCADEW2022).
NOW, THEREFORE BE IT RESOLVED, that the Richmond City Council do es hereby declare September 23 – October 2, 2022 as Drive Electric Week in the City of Richmond and urges residents to support the aims and goals of this worthwhile effort.
___________________________
Mayor Tom Butt
City of Richmond, California
September 20, 2022
Sept. 20, 2022
Police Department
DATE: September 20, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Bisa French, Chief of Police
Subject:
Pre-Employment Background Investigations Companies
for Police Department Applicants
FINANCIAL IMPACT: The proposed expenditure of $60,000 per each of the three (3) contracts (for a total combined amount not to exceed $180,000) is included in the Police Department’s approved budget for Fiscal Year 2022-2023, and will be
budgeted for appropriately in Fiscal Years 2023-2024
and 2024-2025. Account string 01191021-400201.
PREVIOUS COUNCIL
ACTION:
n/a
STATEMENT OF THE
ISSUE:
The Police Department is requesting approval of
separate contracts with three vendors: James Anthony
Carroll Investigations; Moreland Investigations; and T
Jung Investigations, to conduct pre-employment
background investigations for sworn and non-sworn
Police Department applicants over a three-year term.
RECOMMENDED ACTION:
APPROVE contracts with three vendors: James Anthony
Carroll Investigations; Moreland Investigations; and T
Jung Investigations, for the purpose of providing
background investigations for sworn and non-sworn
Police Department applicants, for a total combined
amount of $180,000, not to exceed $60,000 per vendor,
over the entire three-year contract term of October 1,
2022, through September 30, 2025 – Police Department
(Chief Bisa French 510-621-1802).
AGENDA
REPORT
Sept. 20, 2022
DISCUSSION:
Background investigations are required by the State of California Commission on Police Officer Standards and Training (POST) for all sworn police personnel and communications dispatchers, including police cadets, police rangers, records specialists and jailers. Additionally, due to the close working relationship of sworn and non-sworn employees, the City of Richmond requires non-sworn staff applicants to also pass the pre-employment background investigation prior to working at the Police Department.
The background investigation assures compliance with all applicable minimum standards for appointment and screens out applicants who, based on their history or other relevant information, are found unsuitable for the position.
Background checks are among the most important investigations an agency will ever conduct. The way a background investigation is conducted can make the difference between hiring an individual who will truly protect and serve, and someone who may cause harm to society, the agency, or themselves. Backgrounds are also among the most challenging investigations to conduct. They must be comprehensive if they are to lead to informed hiring decisions. Past misconduct and other signs of unsuitability must be uncovered so that dangerous or otherwise unfit candidates are screened out. At the same time, inquiries into past performance must stay within the tight parameters of fair employment practices. The areas investigated, and the evaluation of them, must be treated consistently across all candidates. The inquiries and evaluations in background investigations must be based on candidate behaviors that have a direct relationship to the requirements and demands of the position, and they must do so with consistency and without bias.
In the past, Richmond Police Department has conducted its own background investigations; however, in-house background investigations are not only costly (due to union-required overtime pay), but continuing to do so would also keep the already short- staffed sworn officers in the office instead of on patrol. Therefore, the Richmond Police Department staff put out a Request for Proposals (RFP) in June 2022 to find a worthy vendor. Six bid responses were received, but only three vendors met the RFP’s minimum qualifications. The three qualifying vendors were selected to be used on a priority basis due to the fact that suitable candidates can be offered positions with other departments if Richmond’s background investigation takes too long.
RECOMMENDATION:
Due to the cost, lack of availability of in-house resources, and urgency to hire candidates in reasonable timeframes, the Richmond Police Department staff recommends that City Council approve three-year contracts with each of the three vendors for an amount not to exceed $60,000 per vendor, for a total combined amount of $180,000, over the entire contract term.
Sept. 20, 2022
DOCUMENTS ATTACHED:
Attachment 1 – James Anthony Carroll Investigations Contract Attachment 2 – Moreland Investigations Contract
Attachment 3 – T Jung Investigations Contract
Attachment 4 – RFP
Attachment 5 – RFP Response Grid
Attachment 6 – RFP Rating Matrix
CITY OF RICHMOND
STANDARD CONTRACT
Department: Project Manager:
Project Manager E-mail: Project Manager Phone No:
PR No: Vendor No: P.O./Contract No:
Description of Services:
The parties to this STANDARD CONTRACT do mutually agree and promise as follows:
1. Parties. The parties to this Contract are the City of Richmond (herein referred to as the “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. Term. The effective date of this Contract is and it terminates unless terminated as provided herein.
3. Payment Limit. City’s total payments to Contractor under this Contract shall not exceed $ . City shall not pay for services that exceed the Contract Payment Limit unless a contract amendment has been approved by the City Council or City Manager.
4. Contractor’s Obligations. Contractor shall provide those services and carry out that work described in the Service Plan (Exhibit A) which is attached hereto and is incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
5. City's Obligations. City shall make to the Contractor those payments described in the Payment Provisions (Exhibit B) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
6. Authorized Representatives and Notices. This Contract is subject to the Authorized Representatives and Notices Provisions (Exhibit C) which are attached hereto and are incorporated herein by reference.
7. General Conditions. This Contract is subject to the General Conditions (Exhibit D) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
8. Special Conditions. This Contract is subject to the Special Conditions (Exhibit E) (if any) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein. (Note:
other than Public Works contracts, the City will agree to Special Conditions only in unusual circumstances.)
9. Insurance Provisions. This Contract is subject to the Insurance Provisions (Exhibit F) which are attached hereto and are incorporated herein by reference.
10. Signatures. These signatures attest the parties' Contract hereto:
CITY OF RICHMOND CONTRACTOR:
a municipal corporation
By:
(* The Corporation Chairperson of the Board,
President or Vice President should sign below)
Title: By:
I hereby certify that this Contract Title:
has been approved by City Council.
Date Signed:
B y :
City Clerk
(* The Corporation Chief Financial Officer,
Secretary or Assistant Secretary should sign below)
Approved as to form:
B y :
B y : T i t l e :
City Attorney
Date Signed:
(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a corporation
or nonprofit organization, this Contract (1) must
be signed by (a) the Chairperson of the Board,
President or Vice-President
and (b) the
Secretary any Assistant Secretary, the Chief
Financial Officer or any Assistant Treasurer.
LIST OF ATTACHMENTS:
Service Plan Exhibit A
Payment Provisions Exhibit B
Authorized Representatives and Notices Exhibit C
General Conditions Exhibit D
Special Conditions Exhibit E
Insurance Provisions Exhibit F
Standard Contract/EJ/TE 9-26-07
For the Contract between the City of
Richmond and
EXHIBIT A
SERVICE PLAN
Contractor shall, to the satisfaction of the , perform the following services and be compensated as outlined below:
For the Contract between the City of
Richmond and
EXHIBIT B
PAYMENT PROVISIONS
{PLEASE NOTE THAT THE CITY OF
RICHMOND SHALL NOT PAY FOR SERVICES
THAT EXCEED THE CONTRACT PA YMENT LIMIT UNLESS A CONTRACT
AMENDMENT HAS BEEN APPROVED BY THE CITY COUNCIL OR THE CITY MANAGER}
1. Provided Contractor is not in default under this Contract, Contractor shall be compensated as provided below.
2. Any and all payments made pursuant to this Contract shall be subject to the Contract Payment Limit. The Payment Limit includes expenses (phones, photo copying, meals and travel etc). Invoices, shall be adequately detailed, based on accurate records, and be in a form reasonably satisfactory to the City. Contractor may be required to provide back-up material upon request.
3. Contractor shall submit timely invoices to the following address:
Attention: City of Richmond, Finance Department - Accounts Payable Project Manager: Department:
PO Box 4046
Richmond, CA 94804-0046
4. All invoices that are submitted by Contra ctor shall be subject to the approval of the City’s Project Manager, before payments shall be authorized.
5. The City will pay invoice(s) within 45 days a fter completion of services to the City’s satisfaction. The City shall not pay late fees or interest.
6. A Richmond business license shall be obtained before any payment under this Contract shall be authorized and the business license must be kept current during the term of this Contract for payments to continue to be authorized.
7. All insurance coverage required by this Contract shall be provided by the Contractor before this Contract shall be executed by the City. The insurance coverage must be kept current during the term of this Contract for payments to continue to be authorized.
For the Contract between the City of
Richmond and
EXHIBIT C
AUTHORIZED REPRESENTATIVES AND NOTICES
1. Notices
. All notices, demands, statements, or communications provided for by this Contract shall be in writing and may be delivered by deposit in the United States mail, postage prepaid. Notices to the City shall be addressed to the Department Head and (as delineated below in section 1.1) to the project manager responsible for the administration of or the supervision of the scope of work under this Contract. Notices to the Contractor shall be addressed to the party designated by Contractor (as delineated below in section 1.2). Notice shall be deemed delivered (a) upon personal delivery; (b) as of the fifth business day after mailing by United States certified mail, postage prepaid, addressed to the proper party; or (c) as of 12:00 p.m. on the second business day immediately after the day it is deposited with and accepted by Federal Express, or a similar overnight courier service, addressed to the proper party and marked for next business day morning delivery. For the purposes of this Contract, a "business day" means any day Monday through Friday that is not a holiday recognized by the federal government or the State of California.
1. 1 CITY hereby designates as its Authorized Representative the Project Manager whose name and address are as follows:
City of Richmond
Richmond, CA 94804-0046
1. 2 CONTRACTOR hereby designates as its Authorized Representative the Project Manager whose name and address are as follows:
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EXHIBIT D
GENERAL CONDITIONS
1. Independent Contractor . Contractor acknowledges, represents and warrants that Contractor is not a regular or temporary employee, joint venturer or partner of the City, but rather an independent Contractor. This Contract shall not be construed to create an agency, servant, employee, partnership, or joint venture relationship. As an independent Contractor, Contractor shall have no authority to bind City to any obligation or to act as City's agent except as expressly provided herein. Due to the independent Contractor relationship created by this Contract, City shall not withhold state or federal income taxes, the reporting of which shall be Contractor's sole responsibility.
2. Brokers . Contractor acknowledges, represents and warrants that Contractor has not hired, retained or agreed to pay any entity or person any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this Contract.
3. City Property . The rights to applicable plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials prepared for or obtained pursuant to this Contract, which, upon request, are to be delivered to City within a reasonable time, shall be deemed assigned to City. If applicable, Contractor shall prepare check prints upon request. Notwithstanding the foregoing, Contractor shall not be obligated to provide to City proprietary software or data which Contractor has developed or had developed for Contractor's own use; provided, however, that Contractor shall, pursuant to Section 15 below, indemnify, defend and hold harmless City from and against any discovery or Public Records Act request seeking the disclosure of such proprietary software or data.
4. Patents, Trademarks, C opyrights and Rights in Data
. Contractor shall not
publish or transfer any materials, discoveries, developments, concepts, designs, ideas, know how, improvements, inventions and/or original works of authorship resulting from activities supported by this Contract without the express prior written consent of the City Manager. If anything resulting from activities supported by this Contract is patentable, trademarkable, copyrightable or otherwise legally protectable, City reserves the exclusive right to seek such intellectual property rights. Notwithstanding the foregoing, Contractor may, after receiving City's prior written consent, seek patent, trademark, copyright or other intellectual property rights on anything resulting from activities supported by this Contract. However, City reserves, and Contractor irrevocably grants, a nonexclusive, fully paid-up, royalty-free, assumable, perpetual, worldwide license, with the right to transfer, sublicense, practice and exploit said license and the right to make, have made, copy, modify, make derivative works of, use, sell,
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import, and otherwise distribute under all applicable intellectual properties without restriction of any kind said license.
Contractor further agrees to assist City, at City's expense, in every proper way to secure the City’s rights in any patents, trademarks, copyrights or other intellectual property rights relating thereto, including the disclosure to City of all pertinent information and data with respect thereto. Contractor shall also assist City in the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which City shall deem necessary in order to apply for, obtain, maintain and transfer such rights, or if not transferable, to waive such rights. Contractor shall further assist City in the execution of all applications, specifications, oaths, assignments, recordations and all other instruments which City shall deem necessary in order to assign and convey to City, and any assigns and nominees the sole and exclusive right, title and interest in and to any patents, trademarks, copyrights or other intellectual property rights relating thereto. Contractor further agrees that its obligation to execute or cause to be executed, when it is in Contractor's power to do so, any such instruments or papers shall continue during and at all times after the end of Contractor's services and until the expiration of the last such intellectual property right. Contractor hereby irrevocably designates and appoints City, and its duly authorized officers, agents and servants, as its agent and attorney-in-fact, to act for and in its behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters of patents, copyright and other registrations. This power of attorney is coupled with an interest and shall not be affected by Contractor's subsequent incapacity.
5. Inspection
. Contractor's performance, place of business and records pertaining to this Contract are subject to monitoring, inspection, review and audit by authorized representatives of the CITY, the State of California, and the United States Government.
If the project or services set forth in Exhibit A shall be performed on City or other public property, City shall have the right to inspect such work without notice. If such project or services shall not be performed on City or other public property, City shall have the right to inspect such work upon reasonable notice.
6. Services
. The project or services set forth in Exhibit A shall be performed to the full satisfaction and approval of City. In the event that the project or services set forth in Exhibit A are also itemized by price, City, in its sole discretion, may, upon notice to Contractor, delete certain items or services set forth in Exhibit A, in which case there shall be a corresponding reduction in the amount of compensation paid to Contractor.
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Contractor shall, at its own cost and expense, furnish all facilities and equipment necessary for Contractor to complete the project or perform the services required herein, unless otherwise provided in Exhibit A.
7. Records
. Contractor shall keep and make available for inspection and copying by authorized representatives of the City, the State of California, and the United States Government, the Contractor's regular business records and such additional records pertaining to this Contract as may be required by the City.
Contractor shall retain all documents pertaining to this Contract for a period of five (5) years after this C ontract's termination (or for any further period that is required by law) and until all Fede ral or State audits are complete and exceptions resolved for this contract's funding period. Upon request, CONTRACTOR shall make thes e records available to authorized representatives of the CITY, the State of California, and the United States Government.
Contractor shall keep full and detailed accounts, maintain records, and exercise such controls as may be necessary for proper financial management under this Contract. The Contractor’s accounting and control systems shall be satisfactory to City. Contractor's accounting systems shall conform to generally accepted accounting principles and all records shall provide a breakdown of total costs charged under this Contract, including properly executed payrolls, time records, utility bills, invoices and vouchers. The City shall be afforded prompt access to Contractor's records, books, and Contractor shall preserve such project records for a period of at least five (5 years after the termination of this Contract , or for such longer period as may be required by law.
Contractor shall permit City and its authorized representatives and accountants to inspect, examine and copy Contractor's books, records, accounts, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to the project or services set forth in Exhibit A, and any and all data relevant to this Contract at any reasonable time for the purpose of auditing and verifying statements, invoices, or bills submitted by Contractor pursuant to this Contract and shall provide such assistance as may be reasonably required in the course of such inspection. Contractor shall also allow City access to the record keeping and accounting personnel of Contractor.
City further reserves the right to examine and re-examine said books, records, accounts, and data during the five (5 year period following the termination of this Contract; and Contractor shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, and data in any manner whatever for five (5 years after the termination of this Contract.
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Pursuant to California Government Code § 10527, the parties to this Contract shall be subject to the examination and audit of representatives of the Auditor General of the State of California for a period of three (3) years after final payment under this Contract. The examination and audit shall be confined to those matters connected with the performance of this Contract including, but not limited to, the cost of administering this Contract.
8. Changes and Extra Work . All changes and/or extra work under this Contract shall be performed and paid for in accordance with the following:
Only the City Council or the City Manager may authorize extra and/or changed work. Contractor expressly recognizes that other City personnel are without authorization to either order extra and/or changed work or waive contract requirements. Failure of Contractor to secure the authorization for such extra and/or changed work shall constitute a waiver of any and all right to adjustment in contract price due to such unauthorized work and Contractor thereafter shall be entitled to no compensation whatsoever for performance of such extra and/or changed work.
If Contractor is of the opinion that any work which Contractor has been directed to perform is beyond the scope of this Contract and constitutes extra work, Contractor shall promptly notify City of the fact. The City shall make a determination as to whether or not such work is, in fact, beyond the scope of this Contract and constitutes extra work. In the event that City determines that such work does constitute extra work, City shall provide extra compensation to Contractor on a fair and equitable basis. A change order or Contract Amendment providing for such compensation for extra work shall be negotiated between City and Contractor and executed by Contractor and the appropriate City official.
In the event City determines that such work does not constitute extra work, Contractor shall not be paid extra compensation above that provided herein and if such determination is made by City staff, said determination may be appealed to the City Council; provided, however, a written appeal must be submitted to the City Manager within five (5) days after the staff's determination is sent to Contractor. Said written appeal shall include a description of each and every ground upon which Contractor challenges the staff's determination.
9. Additional Assistance
. If this Contract requires Contractor to prepare
plans and specifications, Contractor shall provide assistance as necessary to resolve any questions regarding such plans and specifications that may arise during the period of advertising for bids, and Contractor shall issue
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any necessary addenda to the plans and specifications as requested. In the event Contractor is of the opinion that City's requests for addenda and assistance is outside the scope of normal services, the parties shall proceed in accordance with the changes and extra work provisions of Section 8 of these General Conditions.
10. Professional Ability. Contractor acknowledges, represents and warrants that Contractor and its employees are skilled and able to competently provide the services hereunder, and possess all professional licenses, certifications, and approvals necessary to engage in their occupations.
City has relied upon the professional ability and training of Contractor as a material inducement to enter into this Contract. Contractor shall perform in accordance with generally accepted professional practices and standards of Contractor's profession. In the event that City, in its sole discretion, desires the removal of any person employed or retained by Contractor to perform services hereunder, such person shall be removed immediately upon receiving notice from City.
11. Business License
. Contractor shall obtain a Richmond Business License
before performing any services required under this Contract. The failure to so obtain such license shall be a material breach of this Contract and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual or extraordinary circumstances without necessitating any modification of this Contract to reflect such waiver.
12. Termination Without Default. Notwithstanding any provision herein to the contrary, City may, in its sole and absolute discretion and without cause, terminate this Contract at any time prior to completion by Contractor of the project or services hereunder, immediately upon written notice to Contractor. Contractor may terminate this Contract at any time in its sole and absolute discretion and without cause upon 30 days' written notice to City. In the event of termination by either party, Contractor shall be compensated for: (1) all authorized work satisfactorily performed prior to the effective date of termination; (2) necessary materials or services of others ordered by Contractor for this Contract, prior to receipt of notice of termination, irrespective of whether such materials or services of others have actually been delivered, provided that Contractor is not able to cancel such orders. Compensation for Contractor in such event shall be determined by City in accordance with the percentage of the project or services completed by Contractor; and all of Contractor's finished or unfinished work product through the time of the City's last payment shall be transferred and assigned to City. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.
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13. Termination in the Event of Default. Should Contractor fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Contract, City may immediately terminate this Contract by giving written notice of such termination, stating the reasons for such termination. Contractor shall be compensated as provided in Section 12 of these General Conditions; provided, however, there shall be deducted from such amount the amount of damage, including attorney's fees, expert witness fees and costs, if any, sustained by City by virtue of Contractor's breach of this Contract. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.
14. Conflict of Interest. Contractor acknowledges, represents and warrants that Contractor shall avoid all conflicts of interest (as defined under any federal, state or local statute, rule or regulation, or at common law) with respect to this Contract. Contractor further acknowledges, represents and warrants that no City official or employee has any economic interest, as defined in Title 2, California Code of Regulations §§ 18703.1 through 18703.5, with Contractor that would invalidate this Contract. Contractor acknowledges that in the event that Contractor shall be found by any judicial or administrative body to have any conflict of interest (as defined above) with respect to this Contract, all consideration received under this Contract shall be forfeited and returned to City forthwith. This provision shall survive the termination of this Contract for one (1) year.
15. Indemnification.
(a) If this Contract is a contract for design professional services subject to California Civil Code Section 2782.8(a) and Contractor is a design professional, as defined in California Civil Code Section 2782.8(b)(2), Contractor shall hold harmless, defend and indemnify the City, its officers, agents, employees, and volunteers from and against any and all claims, damages, losses, and expenses including attorneys’ fees arising out of, or pertaining to, or relating to the negligence, recklessness, or willful misconduct of the Contractor, except where caused by the active negligence, sole negligence, or willful misconduct of the City. To the fullest extent permitted by law, Contractor shall immediately defend and indemnify the City and its officers, agents, employees, and volunteers from and against any and all liabilities, regardless of nature or type, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, or its employees, agents, or subcontractors.
Liabilities subject to the duties to defend and indemnify include, without limitation, any and all claims, losses, damages, penalties, fines, and judgments; associated investigation and administrative expenses; defense costs, including but not limited to reasonable attorneys’ fees; court costs; and costs of alternative dispute resolution. Contractor’s obligation to