Agenda — Richmond City Council, May 16, 2023 (part 1 of 11)

PLEASE NOTE: HYBRID MEETING FORMAT

SPECIAL MEETING OF THE RICHMOND CITY COUNCIL

SPECIAL RICHMOND HOUSING AUTHORITY

REGULAR MEETING OF THE RICHMOND CITY COUNCIL

Tuesday, May 16, 2023, 4:30 p.m.

Community Services Building
440 Civic Center Plaza
Richmond, CA 94804
Members:

Eduardo Martinez, Mayor at Large
Melvin Willis, Councilmember District 1
Cesar Zepeda, Councilmember District 2
Doria Robinson, Councilmember District 3
Soheila Bana, Councilmember District 4
Gayle McLaughlin, Vice Mayor, District 5
Claudia Jimenez, Councilmember District 6
Jaycine Scott, Housing Authority Tenant Commissioner
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Accessibility for Individuals with Disabilities: Upon request, the City will provide for written agenda materials 3 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.

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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
4 A. OPEN SESSION TO HEAR PUBLIC COMMENT BEFORE CLOSED SESSION 4:30 p.m.

B. ROLL CALL
C. CLOSED SESSION
.

C.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (paragraph (1) of Subdivision [d] of Government Code Section 54956.9) • Winehaven v. City of Richmond
Guidiville Rancheria of California, et al. v. United States of America, et al.
•
North Coast Rivers Alliance et al./Point Molate Alliance et al. v. City of Richmond
•
C.2 CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6)
• Agency Representatives: Sharrone Taylor and Jack Hughes Employee organizations:

1. SEIU Local 1021 Full Time Unit and Part Time Unit

2. IFPTE Local 21 Mid-Level Management Unit and Executive Management Units

3. Richmond Police Officers Association RPOA

4. Richmond Police Management Association RPMA

5. IAFF Local 188

6. Richmond Fire Management Association RFMA
C.3 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to paragraph (2) or (3) of Subdivision (d) [as applicable] of Government Code Section 54956.9) • One case
C.4 CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8)
Property: Terminal One
Agency negotiators: Lina Velasco and Dave Aleshire
Negotiating parties: Terminal One Development LLC
Under negotiation: Price and terms of payment
•
D. PUBLIC COMMENT BEFORE CLOSED SESSION (limited to items on the Closed Session agenda only)
E. ADJOURN TO CLOSED SESSION
________________________________________________________ 5 F. SPECIAL MEETING OF THE RICHMOND CITY COUNCIL
5:30 p.m.

G. PLEDGE OF ALLEGIANCE
H. ROLL CALL
I. STATEMENT OF CONFLICT OF INTEREST
J. AGENDA REVIEW
K. Agenda Development for City Council Goals and Objectives DISCUSS and PROVIDE DIRECTION regarding the agenda to develop City Council Goals and Objectives - City Manager's Office (Shasa Curl 510-620-6512) L. ADJOURNMENT
_______________________________________________________ 6 M. SPECIAL MEETING OF THE RICHMOND HOUSING AUTHORITY
6:25 p.m.

N. ROLL CALL
O. STATEMENT OF CONFLICT OF INTEREST
P. REPORT FROM THE EXECUTIVE DIRECTOR
Q. AGENDA REVIEW
R. HOUSING AUTHORITY CONSENT CALENDAR
R.1 Contract Amendment with Pacific Site Management for Landscaping Services 14 ADOPT a resolution approving a contract amendment with Pacific Site Management for landscaping services at Richmond Housing Authority (RHA) properties, extending the term of the Agreement to June 30, 2025, and increasing the compensation in an amount not to exceed $117,900, for a total contract compensation amount not to exceed $342,900 - Richmond Housing Authority (Gabino Arredondo 510-620-6606).

R.2 First Amendment to the Emergency Contract with Legacy for Boiler Pump Replacement
56 ADOPT a resolution authorizing a First Amendment to the Emergency Contract with Legacy Mechanical and Energy Services for $30,825 plus a revised 10 percent contingency of $3,083, for a total contract amendment amount not to exceed $33,908, to complete the replacement of the two heat pumps at Nevin Plaza, and authorize the payment of City permit fees in the revised amount of $3,200, for a total project cost amount not to exceed $55,698 - Richmond Housing Authority (Gabino Arredondo 510-620-6606).

S. ADJOURNMENT
_______________________________________________________ 7 T. REGULAR MEETING OF THE RICHMOND CITY COUNCIL
6:30 p.m.

U. ROLL CALL
V. STATEMENT OF CONFLICT OF INTEREST
W. AGENDA REVIEW
X. REPORT FROM THE CITY ATTORNEY OF FINAL DECISIONS MADE DURING

CLOSED SESSION
Y. REPORT FROM THE CITY MANAGER (public comment allowed under Open Forum) Z. REPORTS OF OFFICERS: REFERRALS TO STAFF, AND GENERAL REPORTS (INCLUDING AB 1234 REPORTS)(limited to two minutes per Councilmember) (public comments allowed under Open Forum)
AA. REPORT FROM THE REIMAGINING TASK FORCE - 3rd Tuesday (public comment allowed under Open Forum)
AB. OPEN FORUM FOR PUBLIC COMMENT
(public comment on items that remain on the Consent Calendar or items not on the agenda - limited to 2 minutes unless otherwise specified - Back and forth dialogue with the Council is prohibited)
AC. CITY COUNCIL CONSENT CALENDAR
(All items placed under the Consent Calendar are considered to be routine and noncontroversial. These items will be enacted upon together with a motion and second, without discussion, of any member of the City Council, and each item shall be deemed to have received the action recommended.)
AC.1 City Council
AC.1.a Support for SB567 (Durazo) Homelessness Prevention Act 108 ADOPT a resolution in support of Senate Bill 567 (Durazo) Homelessness Prevention Act - Councilmember Melvin Willis (510- 412-2050). This item was continued from the May 2, 2023, meeting.

AC.1.b Recognize the 35th Anniversary of the Marinda Family Daycare 129 PROCLAMATION recognizing Ms. Marinda Elaine Keith for
providing 35 years of daycare services to Richmond residents and for creating a familial environment in which children thrive academically, socially, and emotionally - Mayor Eduardo Martinez (510-620-6503) and Vice Mayor Gayle McLaughlin (510-620-6636). 8 AC.2 City Manager's Office
AC.2.a Amending Ordinances related to Pacific Gas and Electric (PG&E) 133 ADOPT an ordinance (second reading) amending Ordinance 1579 which granted a franchise for the transmission and distribution of electricity within the City to PG&E to revise the franchise fee and add a franchise fee surcharge and ADOPT an ordinance (second reading) amending Ordinance 1580 which granted a franchise for the transmission and distribution of gas within the City to PG&E to add a franchise fee surcharge - City Manager’s Office/City Attorney’s Office (Shasa Curl 510-620-6512/Samantha Carr 510- 620-5407/Dave Aleshire 510-620-6509).

AC.3 Community Development
AC.3.a Contract with Nichols Consulting Engineers, CHTD (NCE) for on-call Professional Environmental Consulting Services Including CEQA and NEPA.
197
APPROVE a contract with Nichols Consulting Engineers, CHTD (NCE) for as needed professional environmental consulting services related to California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) compliance, for an amount not to exceed $984,296.48, for a term beginning July 1, 2022, through June 30, 2024 – Community Development Department (Lina
Velasco 510-620-6841/Hector Rojas 510-620-1220).

AC.3.b Contract Amendment No. 1 with David Paul Rosen and Associates 232 APPROVE amendment No. 1 to the contract with David Paul Rosen & Associates to increase the contract limit by $150,000, for a total contract amount not to exceed $200,000, to continue to support the City in financial and economic analyses related to real property negotiations and project evaluation, with a term extending through October 31, 2024 – Community Development Department (Lina Velasco/Jesus M. Morales 510-620-6706).

AC.4 Economic Development
AC.4.a Point San Pablo Harbor Lease Amendment 320
APPROVE a Lease Amendment with Point San Pablo Harbor, Inc., a California Corporation, to lease a portion of Terminal 4 through May 31, 2024, with five additional one-year extension options to potentially extend the lease through May 31, 2029 – Economic Development Department (Lizeht Zepeda 510-620-6653/Nannette Beacham 510-621-1306).
9 AC.5 Finance Department
AC.5.a Revision to Richmond Municipal Code Chapter 13.45 to Update Procedures Regarding Adoption of City of Richmond Fees
358
ADOPT an ordinance (second reading) amending Chapter 13.45 [Tax, Fee, and Charge Adjustments] of the Richmond Municipal Code to change the frequency of the fee updates from quarterly to yearly – Finance Department (Nickie Mastay/Mubeen Qader/Antonio Banuelos 510-620-6741).

AC.5.b Contract with David Wellhouse & Associates to Prepare and File Claims for State Mandated Cost Reimbursement
413
APPROVE a contract with David Wellhouse & Associates in an amount not to exceed $30,000, to prepare and file claims for State Mandated Cost Reimbursement, with a term beginning July 1, 2023, and ending June 30, 2026, with a $20,000 two-year option to renew – Finance Department (Nickie Mastay/Mubeen Qader 510-412- 2077/Antonio Banuelos 510-620-6741).

AC.6 Human Resources
AC.6.a Resolution Amending Staffing (Position Control) 464 ADOPT a resolution amending staffing (position control) to correct job titles, add a grant-funded position, and reallocate an existing position; and APPROPRIATE the associated wages, salaries, and benefits as required – Human Resources Department (Nickie Mastay/Sharrone Taylor 510-620-6602).

AC.7 Library and Community Services
AC.7.a $500,000 grant from the United States Environmental Protection Agency for RichmondBUILD
470
ADOPT a resolution to ACCEPT and APPROPRIATE $500,000 in federal funds awarded to Employment & Training from the Environmental Protection Agency to provide opportunities for unemployed Richmond residents through certification classes at RichmondBUILD – Community Services Department (Tamara
Walker 510-307-8006/Fred Lucero 510-621-1562).

AC.7.b Contract with the Youth Finance Institute of America to Provide Workforce Training and Work Experience Opportunities
480
APPROVE a contract with the Youth Finance Institute of America to provide workforce training and employment services to youth funded under the California for All Youth grant, for a total amount not to exceed $53,353, and a term from May 17, 2023, through September 1, 2024 – Community Services Department (LaShonda White 510- 620-6828/Tamara Walker 510-307-8006).
10 AC.8 Mayor's Office
AC.8.a Improvements to Residential Rental Inspection Program 539 DIRECT the City Attorney’s Office to work with the Community Development Department and community stakeholders to update the Residential Rental Dwelling Unit Inspection and Maintenance Ordinance, including developing a Tenant Habitability Plan and overall improvements to the Residential Rental Inspection Program - Mayor Eduardo Martinez (510-620-6502) and Councilmember Doria Robinson (510-620- 6568).

AC.9 Police Department
AC.9.a First Contract Amendment with Data Ticket, Inc. 575 APPROVE a First Amendment to the Agreement with Data Ticket, Inc. to expand the scope of services to include on-line payment, permitting, and collection services for the City’s False Alarm Reduction and Enforcement Program, and to increase the payment limit by $30,000, to include a contingency of $2,100, for a total payment limit not to exceed $60,000, with a term of January 1, 2023, to December 31, 2026 – Police Department (Chief Bisa French 510-621-1802).

AC.10 Public Works
AC.10.a Adopt a resolution Authorizing the City to execute the Stipulated Order with the Water Board and to pay a $69,000 Mandatory Minimum Penalty
642
ADOPT a resolution authorizing the City to execute the Stipulated Order between the Water Board and the City on behalf of West County Agency, and to allocate funds in the Fiscal Year 2022-23 budget in the amount of $69,000 to pay the Mandatory Minimum Penalties – Public Works Department (Daniel Chavarria/Mary Phelps 510-621-1269).

AD. BUDGET SESSION
AD.1 State Audit Corrective Action Plan, Pension Funding Policies 678 RECEIVE a presentation regarding pension (CalPERS) funding policies per the California State Auditor’s 2021-806-Audit Corrective Action Plan – Finance Department (Nickie Mastay 510-620-6609/ Mubeen Qadar 510-412-2077). 11 AD.2 Fiscal Year 2022-2023 Quarter 3 Budget Report and American Rescue Plan Act (ARPA) Update
681
RECEIVE the Fiscal Year 2022-23 Quarter 3 budget report for the period of July 1, 2022, through March 31, 2023; ADOPT a resolution to APPROPRIATE $15 million for the Main Library Upgrade project via a transfer in from the General Fund to the Capital Fund; RECEIVE a report regarding the City’s American Rescue Plan Act (ARPA) budget, Community Needs Assessment and Strategic Investment Plan; and APPROPRIATE $1 million in ARPA funds to complete the 13th Complete Street project – Finance Department (Shasa Curl/LaShonda White 510-620-6828/Nickie Mastay 510-620-6609/Mubeen Qader 510-412-2077).

AE. PUBLIC HEARINGS
AE.1 Raven Bioenergy Project Appeal Consideration 841
HOLD a public hearing on an appeal filed objecting to the Planning Commission’s conditional approval to adopt a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) and approval of a Conditional Use Permit and Design Review (PLN21-282) to construct and operate a bioenergy facility that converts food and green waste into transportation-grade hydrogen for various renewable energy products; and EITHER: (a.) Adopt the Resolution in Attachment 1, denying the appeal and approving the Raven project with changes to conditions of approval as represented in Exhibit C of the Resolution, (b.) Refer the matter back to the Planning Commission to consider the significant new evidence presented after its decision, identifying the evidence used as a basis for this decision, or (c.) Grant the appeal, deny the project, and direct staff to return with a resolution containing written findings consistent with this motion for final approval by the City Council - Community Development Department (Lina Velasco 510-620- 6841).

AE.2 Approval of New Fees for a Revised Master Fee Schedule 1687 INTRODUCE an ordinance (first reading) establishing certain fees for the proposed Master Fee Schedule - Finance Department (Mubeen Qader/Antonio Banuelos 510-620- 6741).

AF. NEW BUSINESS
AF.1 Contract with the Richmond Police Activities League to Provide Workforce Training and Work Experience Opportunities
1797
APPROVE a contract with the Richmond Police Activities League (RPAL) to provide workforce training and employment services to 20 youth, for a term commencing April 5, 2023, and ending March 31, 2024, for a total amount not to exceed $73,700 funded by the California for All Youth grant – Community Services Department/Employment and Training (Tamara Walker 510-307- 8006).This item was continued from the April 4, 2023, April 18, 2023, and May 2, 2023, meetings.
12 AF.2 Purchase of Four Police Motorcycles 1858
APPROVE the purchase of four 2023 BMW R 1250 RT motorcycles from Long Beach BMW, in an aggregate amount not to exceed $160,000, including a contingency of $10,158.44 – Public Works Department (Daniel Chavarria 510- 620-5478/Dee Karnes 510-231-3044). This item was continued from the April 18, 2023, and May 2, 2023, meetings.

AF.3 Purchase of One Crosswind Street Sweeper 1872
APPROVE the purchase of a new Elgin Crosswind 1 Regenerative Air Street Sweeper from Owen Equipment in an amount not to exceed $430,000, including a contingency of $38,708.32 – Public Works Department (Daniel Chavarria 510-620-5478/Dee Karnes 510-231-3044).This item was continued from the April 18, 2023, and May 2, 2023, meetings.

AF.4 Contract with Raftelis to Provide a Workforce Analysis 1912 APPROVE a contract with Raftelis Financial Consultants, Inc. to provide a workforce analysis, in alignment with a state audit recommendation, in an amount not to exceed $200,000, with a term beginning June 1, 2023, and ending March 31, 2024; and APPROPRIATE the necessary funding – Human Resources Department (Nickie Mastay 510-620-6609/Sharrone Taylor 510- 620-6803).This item was continued from the May 2, 2023, meeting.

AF.5 Contract With Wiss, Janney, Elstner Associates, Inc. 2083 APPROVE a sole-source contract with Wiss, Janney, Elstner Associates, Inc. (WJE), in an amount not to exceed $247,000 (approximately $180,000 for Pt.

Molate and the remaining $67,000 for the Cafeteria building), for a term beginning May 24, 2023, through June 30, 2024, to provide architectural and structural consulting services for evaluation and stabilization of certain buildings that are part of the Winehaven and Shipyard No. 3 Historic Districts – Public Works Department (Dave Aleshire 510-620-6509/Daniel Chavarria 510-620- 5478/Lina Velasco 510-620-6841).

AF.6 Appointment of a Retired Annuitant to Perform Critically Needed Special Project Work in the Finance Department
2187
APPROVE the appointment of Delmy Cuellar as extra help/special project retired annuitant for a limited term, special project role not to exceed one year; and ADOPT the resolution approving the 180-day wait period exception – Human Resources Department (Nickie Mastay/Sharrone Taylor 510-620-6602).

AG. ADJOURNMENT
________________________
13

Page 1 of 2 ends

May 16, 2023
Richmond Housing Authority (RHA)
Economic Development
DATE: May 16, 2023
TO: Chair Martinez and Members of the Richmond Housing
Authority Board of Commissioners
FROM: Nannette Beacham, Director of Economic Development Gabino Arredondo, RHA Interim Executive Director
Subject: Contract Amendment with Pacific Site Management for Landscaping Services
FINANCIAL IMPACT: Funding is pursuant to the U.S. Housing and Urban Development annual allocation of Operating Subsidy and
Rent from Public Housing residents ($11,100 FY 2022-23
44545191-400537; $62,400 FY 2023-24 444545191-
400537 & 44141191-400537; $44,400 FY 2024-25,
44545191-400537).

PREVIOUS COUNCIL
ACTION:

May 21, 2019

STATEMENT OF THE
ISSUE:

RHA properties require landscaping maintenance
services. RHA is requesting approval of a contract
amendment with Pacific Site Management for continued
services associated with grounds maintenance at RHA
properties.

RECOMMENDED ACTION: ADOPT a resolution approving a contract amendment with Pacific Site Management for landscaping services at Richmond Housing Authority (RHA) properties, extending
the term of the Agreement to June 30, 2025, and
increasing the compensation in an amount not to exceed
$117,900, for a total contract compensation amount not
to exceed $342,900 - Richmond Housing Authority
(Gabino Arredondo 510-620-6606).

AGENDA
REPORT
14

Page 2 of 2 ends

May 16, 2023
DISCUSSION:

The Richmond Housing Authority (RHA) is responsible to ensure that all public housing properties are properly maintained including landscaping. In the past, RHA would receive many complaints from residents and community members living adjacent to the RHA properties due to the lack of landscaping maintenance. When Hacienda was completed, RHA received the parcel back that Mercy used for staging and storage. RHA will need to maintain the empty lot.

Pacific Site Management, after a competitive Request for Proposals (RFP) procurement process, was chosen from five responsive proposals on May 21, 2019. Pacific Site Management services continue to be satisfactory.

RHA is seeking approval of a third contract amendment with Pacific Site Management to continue providing landscaping services at Richmond Housing Authority properties.

The proposed third amendment would extend the term of the Agreement to June 30, 2025, and increase the compensation by an amount not to exceed $117,900. Total contract compensation would be in an amount not to exceed $342,900. Pacific Site Management will no longer provide landscaping services at Nevin Plaza due to the transfer of ownership.

DOCUMENTS ATTACHED:

Attachment 1 - Resolution
Attachment 2 - Contract Amendment #3
Attachment 3 - Contract Amendment #2 to Original
15 RESOLUTION NO. ______

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING

AUTHORITY OF THE CITY OF RICHMOND AUTHORIZING A THIRD

CONTRACT AMENDMENT WITH PACIFIC SITE MANAGEMENT FOR

LANDSCAPING SERVICES TO INCREASE THE COMPENSATION IN THE AMOUNT OF $117,900, FOR A TOTAL NOT TO EXCEED CONTRACT
COMPENSATION IN THE AMOUNT OF $342,900 AND ENDING ON JUNE 30, 2025 ___________________________________________________________________________ WHEREAS, the Richmond Housing Authority (RHA) entered into a Public Housing Authority Recovery and Sustainability (PHARS) agreement with the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, RHA remains obligated and committed to performing all HUD required functions, and providing quality service to local program participants; and WHEREAS, RHA is in need of landscaping services; and
WHEREAS, on May 21, 2019, Pacific Sites Management was selected to be highly qualified based on the Request for Proposals (RFP) selection criteria, and fully capable of undertaking the scope as outlined in the RFP with a fee proposal in line with industry standards; and
WHEREAS, Pacific Site Management has provided satisfactory services to the RHA.

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 Executive Director is authorized to execute a third contract amendment with Pacific Site Management for landscaping services to increase the contract compensation by $117,900 for a total contract compensation amount not to exceed $342,900
BE IT FURTHER RESOLVED that the Executive Director is hereby authorized to take all actions necessary to implement this resolution.
*****************
16 I certify that the foregoing resolution was passed and adopted by the Richmond Housing Authority Board of Commissioners held on May 2, 2023, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:
______________________________
Chairperson
ATTEST:
_________________________
Secretary
Approved as to Form:
______________________________________
DAVID J. ALESHIRE

CITY ATTORNEY

CITY OF RICHMOND
17 RICHMOND HOUSING AUTHORITY

CONTRACT AMENDMENT
The parties to this Contract Amendment do mutually agree and promise as follows:

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

Contractor Name: Pacific Site Management
Street Address: 13265 Bill Francis Drive
City, State, Zip Code: Auburn, CA 95603
Contact Person: Dan McElvain/Emily Youngblom
Telephone: (916) 258-7157 Email:[email protected]
Business License No: 4005-1915 / Expiration Date: 12/31/2023 A California [X] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:]
[ ] other [specify:]

2. Purpose. This Contract Amendment is being entered into to amend the Contract between Authority and Contractor which was approved by the Board of Commissioners of the Housing Authority of the City of Richmond or executed by the Authority’s Executive Director on June 4, 2019. Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

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

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

Department: Richmond Housing Authority Project Manager: Gabino Arredondo Project Manager E-mail: [email protected] Project Manager Phone No. (510) 621-1300 P.R. Contract/P.O. No. 12073/22001628
Description of Services: Landscape Maintenance Services for RHA properties Amendment No. 3 modifies the:

X Term and Payment Limit  Payment Limit  Term  Service Plan 18 Contract Amendment between the Housing
Authority of the City of Richmond and
Pacific Site Management
Amendment No. 3 Contract No. 4707
c:\Authority contract amendment form\EJ (6/17/2015)

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

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

THE HOUSING AUTHORITY FOR THE

CITY OF RICHMOND, CALIFORNIA
By ______________________________
Title: ____________________________
List of Attachments:

1. Amendment Provisions
CONTRACTOR:
______________________________
(*The Corporation Chairperson of the Board, President or Vice-President should sign on the line below.)
By____________________________
Title:________________________
(*The Corporation Chief Financial Officer, Secretary or Assistant Secretary should sign on the line below.)
By:___________________________
Title:________________________
(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a
corporation or nonprofit organization, this
Contract (1) should be signed by the
Chairperson of the Board, President or
Vice-President and the Chief Financial
Officer, Secretary or Assistant Secretary; (2)
should have both signatures conform to
designated representative groups pursuant
to Corporations Code Section 313; and (3)
should be accompanied by completed
notary acknowledgment forms)
(Complete the notary acknowledgments
attached hereto)
19 Contract Amendment between the Housing
Authority of the City of Richmond and
Pacific Site Management
Amendment No. 3 Contract No. 4707
c:\Authority contract amendment form\EJ (6/17/2015)

AMENDMENT PROVISIONS (TERM AND PAYMENT LIMIT)

2. Paragraph 3 (Payment Limit) of the Original Contract is hereby amended to increase the payment limit by$ 117,900. Paragraph 3 of the Original Contract is amended to read as follows:

3. Payment Limit. Authority’s total payments to Contractor under this Contract shall not exceed $ 342,900."
The Authority shall not pay for services that exceed the Contract Payment Limit without the prior written approval of the Authority’s Executive Director if the total Contract amount does not exceed $10,000 or without the prior approval of the Board of Commissioners if the total Contract amount is over $10,000.

20 DocuSign Envelope ID: 71C8F859-5D6D-47E3-AFDB-6F903A3CD7D7 21 DocuSign Envelope ID: 71C8F859-5D6D-47E3-AFDB-6F903A3CD7D7 Executive Director
5/13/2022
22 DocuSign Envelope ID: 71C8F859-5D6D-47E3-AFDB-6F903A3CD7D7 23 RICHMOND HOUSING AUTHORITY

CONTRACT AMENDMENT
The parties to this Contract Amendment do mutually agree and promise as follows:

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

Contractor Name: Pacific Site Management
Street Address: 13265 Bill Francis Drive
City, State, Zip Code: Auburn, CA 95603
Contact Person: Dan McElvain/Emily Youngblom
Telephone: (916) 258-7157 Email: [email protected] Business License No: 4005-1915 / Expiration Date: 8/10/2020 A California [ X ] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:]
[ ] other [specify:]

2. Purpose. This Contract Amendment is being entered into to amend the Contract between Authority and Contractor which was approved by the Board of Commissioners of the Housing Authority of the City of Richmond or executed by the Authority’s Executive Director on May 7, 2019. Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

Department: Richmond Housing Authority Project Manager: Nannette J. Beacham Project Manager E-mail: [email protected] Project Manager Phone No. (510) 621-1300 P.R. Contract/P.O. No. 12073/22001628
Description of Services: Landscape maintenance services for the properties owned & operated by RHA Amendment No. modifies the:

X Term and Payment Limit  Payment Limit  Term  Service Plan 24 25
Contract Amendment between the Housing Authority of
the City of Richmond and
Pacific Site Management
Amendment No. 1 Contract No. 4707
c:\Authority contract amendment form\EJ (6/17/2015)

AMENDMENT PROVISIONS (TERM AND PAYMENT LIMIT)

2. Paragraph 3 (Payment Limit) of the Original Contract is hereby amended to increase the payment limit by$150,000. Paragraph 3 of the Original Contract is amended to read as follows:

3. Payment Limit. Authority’s total payments to Contractor under this Contract shall not exceed $ 225,000."
The Authority shall not pay for services that exceed the Contract Payment Limit without the prior written approval of the Authority’s Executive Director if the total Contract amount does not exceed $10,000 or without the prior approval of the Board of Commissioners if the total Contract amount is over $10,000.

26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55

Page 1 of 3 ends

May 16, 2023
Richmond Housing Authority
Economic Development
DATE: May 16, 2023
TO: Chair Martinez and Members of the Richmond Housing
Authority Board of Commissioners
FROM: Nannette Beacham, Economic Development Director
Gabino Arredondo, RHA Interim Executive Director
Subject: First Amendment to the Emergency Contract with Legacy for Boiler Pump Replacement
FINANCIAL IMPACT: Funding for this improvement contract amendment will be derived from the U.S. Housing and Urban Development
(HUD) annual allocation of Capital Fund, $37,108
(Legacy quote $30,825; 10 percent Contingency $3,083;
City Permits Fees $3,200) (42141191-400701).

PREVIOUS COUNCIL
ACTION:

March 28, 2023

STATEMENT OF THE
ISSUE:

This emergency procurement was initiated after attempts to repair the two heat pumps at Nevin Plaza failed.

Immediate replacement is required to address heating
differentials in the complex.

RECOMMENDED ACTION: ADOPT a resolution authorizing a First Amendment to the Emergency Contract with Legacy Mechanical and
Energy Services for $30,825 plus a revised 10 percent
contingency of $3,083, for a total contract amendment
amount not to exceed $33,908, to complete the
replacement of the two heat pumps at Nevin Plaza, and
authorize the payment of City permit fees in the revised amount of $3,200, for a total project cost amount not to exceed $55,698 - Richmond Housing Authority (Gabino
Arredondo 510-620-6606).

AGENDA
REPORT
56

Page 2 of 3 ends

May 16, 2023
DISCUSSION:

On December 16, 2022, RHA received inquiries from Nevin Plaza residents regarding low levels of heat in some units. RHA called the Heating, Ventilation, and Air Conditioning (HVAC) vendor to assess and conduct boiler repairs. After an inspection, it was determined that the cause of the uneven heat distribution derived from malfunctioning heat pumps.

Impacted residents were provided space heaters by RHA maintenance staff while efforts to address the heating issues continued. Ultimately, it was determined that several components of the system needed to be repaired to bring the system back online. After consulting with various suppliers, it was determined that restoration of normal heat service could take many weeks due to supply chain issues in the acquisition of parts, including shipping challenges arising from holiday demands and inclement weather conditions. RHA, however, did receive notice that one part would be delivered by December 25, 2022.

When the part arrived on Christmas day, City Public Works staff mobilized and with the newly arrived component, were able to repair one of the pumps. This did not completely resolve the heating issues. The heat pumps were turned on; however, heat distribution was still not evenly distributed throughout the building.

Further, diagnostics revealed that additional repairs were needed to address a leak in the second heat pump. Efforts continued to acquire the necessary parts, but the vendor continued to experience challenges in securing them. Due to the delays, RHA sought additional analysis from other vendors. Following site visits from the additional vendors, it was concluded that continued maintenance and repair of aging pumps was not recommended. Instead, the malfunctioning heat pumps should be replaced.

First Amendment to the Emergency Contract with Legacy Mechanical On March 28, 2023, the RHA Board approved the original emergency contract with Legacy Mechanical and Energy Services to replace the two heat pumps at Nevin Plaza.

However, during the replacement process, the vendor attempted to replace the boiler pumps and found that the valves will not seat, preventing them from replacing the boiler pumps as contracted. The proposed contract amendment includes an additional scope to replace the isolation valves for the inlet of the boiler pumps and the triple duty valves that have failed. Legacy Mechanical proposes turning the boiler and pumps off to freeze the lines and replace the valves before continuing with the replacement of the pumps.

The exposed boiler piping will then be reinsulated.

Legacy has provided a quote in the amount of $30,825 for the additional scope of work for the contract amendment including labor, parts, and freight. City staff is also requesting authority for a 10 percent contingency in the amount of $3,083 to account for potential extra repair costs, as well as authority in the amount of $3,200 for City permit fees resulting in a total contract amendment cost of $37,108. The total project cost will 57

Page 3 of 3 ends

May 16, 2023
not exceed $55,698. Funding for this improvement will be derived from HUD's annual allocation of Capital Fund.

DOCUMENTS ATTACHED:

Attachment 1 - Resolution
Attachment 2 - Contract Amendment 1
Attachment 3 - Contract
58 Reso. No. ____

Page 1 of 2 ends

RESOLUTION NO. ____

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING

AUTHORITY OF THE CITY OF RICHMOND, CALIFORNIA, AUTHORIZING A

FIRST AMENDMENT TO THE EMERGENCY CONTRACT WITH LEGACY

MECHANICAL AND ENERGY SERVICES TO COMPLETE REPLACEMENT OF TWO HEAT PUMPS AT NEVIN PLAZA IN AN AMOUNT NOT TO EXCEED $30,825 PLUS A REVISED 10 % CONTINGENCY OF $3,083 FOR A TOTAL CONTRACT AMENDMENT AMOUNT NOT TO EXCEED & $33,908 AND AUTHORIZE THE PAYMENT OF AN ADDITIONAL $3,200 FOR CITY PERMIT FEES FOR A TOTAL PROJECT COST AMOUNT OF $55,698
WHEREAS, Richmond Housing Authority (RHA) owns and manages 244 units of rental housing in the City of Richmond; and
WHEREAS, on October 22, 2019, the RHA entered into a Public Housing Authority Recovery and Sustainability (PHARS) agreement with the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, RHA remains obligated and committed to performing all HUD required functions, and providing quality services to local program participants; and WHEREAS, Nevin Plaza primarily serves senior citizen and disabled residents; and WHEREAS, on December 16, 2023, RHA began receiving resident inquiries regarding low levels of heat in some units; and
WHEREAS, the source of the heat differentials arose from failing components in the two heat pumps which service the facility; and
WHEREAS, despite efforts to repair the two units, the heat differentials were not resolved, and a full replacement was recommended; and
WHEREAS, RHA maintenance staff currently does not have the expertise to conduct the emergency boiler repair work needed; and
WHEREAS, in accordance with the emergency procurement process outlined in RMC

2.52.334, RHA reached out to three multiple vendors; and WHEREAS, three vendors responded, and Legacy Mechanical and Energy Services was selected due to their expertise and pricing; and
WHEREAS, on March 28, 2023, the RHA Board of commissioners approved the original emergency contract; and
WHEREAS, the selected vendor attempted to replace the boiler pumps and found that the valves will not seat, preventing them from replacing the boiler pumps as contracted; and WHEREAS, a contract amendment is needed to complete the project which proposes to replace the isolation valves for the inlet of the boiler pumps and the triple duty valves that have failed.

NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF RICHMOND THAT the Executive Director is authorized to enter into a Contract Amendment with Legacy Mechanical and Energy Services in an amount not to exceed for $30,825 plus a 10 % contingency of $3,083 for a total contract amount not to exceed $33,908 to replace the two heat pumps at Nevin Plaza and pay the City permit fees revised amount of $3,200 for a total project cost amount of $55,698.

BE IT FURTHER RESOLVED that the Executive Director is hereby authorized to perform all actions necessary to implement this resolution. 59 Reso. No. ____

Page 2 of 2 ends

*****************
The foregoing resolution was passed and adopted by the Commissioners of the Housing Authority of the City of Richmond at meeting thereof held on May 16, 2023, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

Chairperson

[SEAL]
Attest:

Secretary
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 at a Housing Authority Meeting held on May 16, 2023. ____________________________________

CLERK OF THE HOUSING AUTHORITY
60 RICHMOND HOUSING AUTHORITY

CONTRACT AMENDMENT
The parties to this Contract Amendment do mutually agree and promise as follows:

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

Contractor Name: Legacy Mechanical & Energy Services, Inc.

Street Address: 3130 Crow Canyon Place Suite 410
City, State, Zip Code: San Ramon CA 94593
Contact Person: Chad Lear
Telephone: 925-580-8757 Email: [email protected] Business License No: 40046828 / Expiration Date: 12/31/2023 A California [ ] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:] sole proprietor
[ X ] other [specify:]

2. Purpose. This Contract Amendment is being entered into to amend the Contract between Authority and Contractor which was approved by the Board of Commissioners of the Housing Authority of the City of Richmond or executed by the Authority’s Executive Director on March 12, 2023. Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

Department: Richmond Housing Authority Project Manager: Gabino Arredondo Project Manager E-mail: [email protected] Project Manager Phone No. 620-6606 P.R. Contract/P.O. No.

Description of Services : Boiler Pump Replacement -
Amendment No. modifies the:
 Term and Payment Limit X Payment Limit  Term X Service Plan 61 Contract Amendment between the Housing Authority of the City of Richmond and
Legacy Mechanical & Energy Services, Inc.

Amendment No. 1 Contract No. 6450
c:\Authority contract amendment form\EJ (6/17/2015)

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

THE HOUSING AUTHORITY FOR THE

CITY OF RICHMOND, CALIFORNIA
By ______________________________
Title: ____________________________
List of Attachments:

1. Amendment Provisions
CONTRACTOR:
______________________________
(*The Corporation Chairperson of the Board, President or Vice-President should sign on the line below.)
By____________________________
Title:________________________
(*The Corporation Chief Financial Officer, Secretary or Assistant Secretary should sign on the line below.)
By:___________________________
Title:________________________
(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a
corporation or nonprofit organization, this
Contract (1) should be signed by the
Chairperson of the Board, President or
Vice-President and the Chief Financial
Officer, Secretary or Assistant Secretary; (2)
should have both signatures conform to
designated representative groups pursuant
to Corporations Code Section 313; and (3)
should be accompanied by completed
notary acknowledgment forms)
(Complete the notary acknowledgments
attached hereto)
62 Contract Amendment between the Housing
Authority of the City of Richmond and
Legacy Mechanical & Energy Services, Inc.

Amendment No. 1 Contract No. 6450
c:\Authority contract amendment form\EJ (6/17/2015)

AMENDMENT PROVISIONS (PAYMENT LIMIT)

1. Paragraph 3 (Payment Limit) of the Original Contract is hereby amended to increase the payment limit by$ 33,908 . Paragraph 3 of the Original Contract is amended to read as follows:

3. Payment Limit. Authority’s total payments to Contractor under this Contract shall not exceed $ 52,498 ."
The Authority shall not pay for services that exceed the Contract Payment Limit without the prior written approval of the Authority’s Executive Director if the total Contract amount does not exceed $10,000 or without the prior approval of the Board of Commissioners if the total Contract amount is over $10,000.

63 Contract Amendment between the Housing
Authority of the City of Richmond and
Legacy Mechanical & Energy Services, Inc.

Amendment No. 1 Contract No. 6450
c:\Authority contract amendment form\EJ (6/17/2015)

AMENDMENT PROVISIONS (SERVICE PLAN)
(CONTRACTOR’S OBLIGATION’S)
The Service Plan (Exhibit A) of the Original Contract is hereby amended to include the following task and/or services:
• Lock out/ tag out of pumps and boiler.
• Freeze inlet and out lines to replace valves.
• Replace inlet gate valves. Replace triple duty valves. Modify piping to accommodate new triple duty valves.
• Continue with pumps replacements.
• Insulate inlet and outlet piping from valves to 90 horizontal piping. 64 April 7, 2023
Gabino Arrendondo
City of Richmond
Richmond, CA 94801
RE: 2400 NEVIN ISOLATION VALVES REPLACEMENT
Dear Gabino,
The following proposal is for replacing the isolation valves for the inlet of the boiler pumps and the triple duty valves that have failed. We tried to replace the boiler pumps and found that the valves will not seat, preventing us from replacing the boiler pumps at 2400 Nevin Avenue as contracted. Legacy Mechanical proposes turning the boiler and pumps off to freeze the lines and replace the valves. We can then continue with replacing the pumps. The exposed boiler piping will then be reinsulated.

Work to include:
• Lock out/ tag out of pumps and boiler.
• Freeze inlet and out lines to replace valves.
• Replace inlet gate valves. Replace triple duty valves. Modify piping to accommodate new triple duty valves.
• Continue with pumps replacements.
• Insulate inlet and outlet piping from valves to 90 horizontal piping.

Work excluded:
• Permits and fees.
• Overtime
• Additional repairs not listed.

Legacy Mechanical & Energy Services offers this work for a cost to you of -----------------------$30,825.00.

Labor 30 hrs. @ 200.00hr-----------$6,000.00
Parts, freight, subcontractors------$24,825.00
Total------------------------------------$30,825.00
Note: Building heating will be off while repairs are being made. Allow 7 business days from acceptance of proposal for work to commence. Parts are scares as of now with limited stock and delays due to parts shortage may occur. Modification of parts may occur to accomplish task.

Additional charges may be billed due to changes needed to accomplish repairs.

Legacy Mechanical & Energy Services, Inc.
3130 Crow Canyon Place Suite 410
San Ramon, CA 94583
California License # 808022
Phone: 925-820- 6938
Fax: 925-820- 6258
Cell: 925-580-8757
65 This proposal includes all labor, materials, and taxes to complete this work. All work is to be performed during our normal business hours. Legacy Mechanical & Energy Services standard warranty of one year on materials and ninety days on labor applies.

We look forward to making these important improvements. If you would like Legacy Mechanical & Energy Services to proceed with these repairs as indicated above, please sign this proposal and fax it back to me at (925)820-6258.

If you have any questions regarding this proposal, you can contact me at (925)820-6938. I am also available on my cell phone at (925)580-8757.

Sincerely,
Chad Lear
Regional Supervisor
Legacy Mechanical & Energy Service
Accepted by Title
Amount PO# Date
66 67
68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 85
86 87
88 89
90 91
92 93
94 95
96 97
98 99
100
101
102
103
104
105
106
107

Page 1 of 3 ends

May 2, 2023
City Council
DATE: May 2, 2023
TO: Mayor Martinez and Members of the City Council
FROM: Councilmember Willis
Subject: Support for SB567 (Durazo) Homelessness Prevention Act
FINANCIAL IMPACT: There is no financial impact to supporting the resolution.

PREVIOUS COUNCIL
ACTION:

The City Council has adopted resolutions and ordinances to protect Richmond residents from unlawful evictions.

Ordinance 15-22 N.S. (December 20, 2022)
Ordinance 02-21 N.S. (March 23, 2021)

STATEMENT OF THE
ISSUE:

SB567 would amend the Tenant Protection Act of 2019
to remove eviction loopholes and lower rent caps.

RECOMMENDED ACTION: ADOPT a resolution in support of Senate Bill 567 (Durazo) Homelessness Prevention Act - Councilmember
Melvin Willis (510-412-2050).

DISCUSSION:

The prolonged affordable housing crisis in Contra Costa County disproportionately impacts low income and working class households, senior citizens, people of color, AGENDA
REPORT
108

Page 2 of 3 ends

May 2, 2023
immigrants, and people with disabilities, and thereby increases homelessness, crime and harms neighborhood stability and cohesion.

Between 2017 and 2022, homelessness increased 30% across California, faster than anywhere in the U.S. In Richmond, the homeless encampments became visibly larger and increased in number.

SB 567 will enhance existing state law to better protect low-income California renters from unjust evictions and unreasonable rent increases. The Homelessness Prevention Act is an effort to address the state’s rising homelessness crisis.

The City Council has adopted policies to strengthen tenant protection in Richmond.

Urgency Ordinance 02-21 N.S. (March 23, 2021), enacted 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 60 days thereafter. The City Council also adopted Ordinance 15-22 N.S. (December 20, 2022) to amend the Fair Rent, Just Cause for Eviction and Homeowner Protection Ordinance to limit rent increases for regulated units to 3% or 60% of the Consumer Price Index, whichever is less. (MEASURE P).

According to the U.S. Census Bureau, 2020 American Community Survey, 17.5% of families in Richmond have an annual income between $50,000 and $74,999 and 10.7% have an annual income between $35,000 and $49,999. Without the adoption of the Urgency Ordinance, an overwhelming number of Richmond residents would have been evicted during the pandemic.

The Census further states, during the 5-year period, 28% of Richmond renters held rents between $1,000 to $1,499 and 25.3% of Richmond renters had rents between $1,500 to $1,999.

The Richmond Rent Program serves and supports tenants by promoting healthy housing, and affordability for Richmond tenants through the regulating of those Landlord/Tenant matters that reasonably relate to rents and evictions, yet more protection is needed.

Low-income renter households across the state are paying more than half of their income on housing costs. Undoubtedly, this can cause housing anxiety which can lead to negative health and wellbeing outcomes. Tenants should be protected against the fear of an arbitrary eviction.

Without sufficient and long-term eviction protections, many tenants who receive eviction notices move out before an action is filed in court even without adequate replacement housing, rather than face future legal eviction that could impact their ability to find new housing.
109

Page 3 of 3 ends

May 2, 2023
Existing state legal protections in the Tenant Protection Act of 2019 have been insufficiently protective of tenants. Due to exemptions, some tenants are not covered by existing state tenant protections. Other tenants are covered but left vulnerable to “nofault evictions” or rent increases that outpace inflation under the law. Residents have been unfairly evicted so that landlords can take advantage of the current local housing shortage and raise rents. Tenants are provided little information regarding their rights in the case of eviction and how to get help if they believe their rights have been violated.

The “removal from the rental market” and “substantial remodel” loopholes in the Tenant Protection Act of 2019 puts tenants at higher risks of eviction.

California residents; specifically, Richmond residents, and the City of Richmond support the amendment of the Tenant Protection Act of 2019 to remove eviction loopholes and lower rent caps. It is recommended that the Richmond City Council endorse Senate Bill 567 and direct staff to send a letter of support to Congressman Garamendi and Governor Gavin Newsom to express the city’s strong support to enact the bill into law.

DOCUMENTS ATTACHED:

Attachment 1 – Draft Resolution
Attachment 2 – Richmond City Facts Sheet
Attachment 3 – SB 567 (Durazo) Homelessness Prevention Act Attachment 4 – SB 567 (Durazo) Key Statistics
110
Reso. No. XX-23

Page 1 of 3 ends

RESOLUTION NO. XX

A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, IN SUPPORT OF CALIFORNIA STATE SENATE BILL 567, WHICH WOULD AMEND THE TENANT PROTECTION ACT OF 2019 TO REMOVE EVICTION LOOPHOLES AND LOWER

RENT CAPS
WHEREAS, the prolonged affordable housing crisis in Contra Costa County disproportionately impacts low income and working class households, senior citizens, people of color, immigrants, and people with disabilities, and thereby increases homelessness, crime and harms neighborhood stability and cohesion; and
WHEREAS, the 2020 U.S. Census reports that Richmond residential tenants make up 47% of the city’s occupied housing units; and
WHEREAS, in California, 79% of extremely low-income renter households are paying more than half of their income on housing costs compared to 6% of moderate-income renter households; and WHEREAS, residential tenants suffer great and serious hardship when forced to move from their homes due to rent increases; and
WHEREAS, housing anxiety can lead to negative health outcomes, tenants should be protected against the fear of an arbitrary eviction; and
WHEREAS, common sense protections against unfair evictions are needed to protect long-time and low income residents from evictions that are filed for the sole purpose of circumventing rent caps to obtain unearned high rents; and
WHEREAS, given the increased housing cost burden and poverty faced by many Richmond residents, excessive rent increases threaten the public health, safety, and welfare of Richmond residents, including seniors, people with disabilities, those on fixed incomes, those with very low, and moderate income levels, and those with other special needs, to the extent that such persons may be forced to choose between paying rent and providing food, clothing, and medical care for themselves and their families; and WHEREAS, the Richmond City Council has adopted policy to protect tenants from extreme rent increases; and
WHEREAS, the Richmond City Council adopted Urgency Ordinance 02-21 N.S. 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 60 days thereafter; and WHEREAS, according to the U.S. Census Bureau, 2020 American Community Survey, 17.5% of families in Richmond have an annual income between $50,000 and $74,999 and 10.7% have an annual income between $35,000 and $49.999; and without the adoption of the Urgency Ordinance, an overwhelming number of Richmond residents would have been evicted during the pandemic; and WHEREAS, the Richmond Rent Program promotes, healthy housing, and affordability for Richmond tenants through the regulating of those Landlord/Tenant matters that reasonably relate to rents and evictions, yet more protection is needed; and
WHEREAS, according to the U.S. Census Bureau, 2020 American Community Survey, during the 5-year period, 28% of Richmond renters held rents between 1,000 to $1,499 and 25.3% of Richmond renters had rents between $1,500 to 1,999; and,
WHEREAS, without sufficient and long-term eviction protections, many tenants who receive eviction notices move out before an action is filed in court even without adequate replacement housing, rather than face future legal eviction that could impact their ability to find new housing; and WHEREAS, existing state legal protections in the Tenant Protection Act of 2019 have been insufficiently protective of tenants. Due to exemptions, some tenants are not covered by existing state tenant protections. Other tenants are covered but left vulnerable to “no-fault evictions” or rent increases that outpace inflation under the law. Residents have been unfairly evicted so that landlords can take advantage of the current local housing shortage and raise rents. Tenants are provided little information regarding their rights in the case of eviction and how to get help if they believe their rights have been violated; and 111
Reso. No. XX-23

Page 2 of 3 ends

WHEREAS, the “removal from the rental market” loophole in the Tenant Protection Act of 2019 allows a landlord to evict a long-term tenant in order to “remove” the unit from the rental market but contains no safeguards to prevent the landlord from returning the unit to the rental market at a higher price once the tenant is displaced; and
WHEREAS, the “substantial remodel” loophole in the Tenant Protection Act of 2019 allows a landlord to remodel a building for the purpose of permanently evicting all tenants from a building to raise the rents, a process known as “renoviction”; and
WHEREAS, in light of the numerous concerns noted herein, including, but not limited to, the current and immediate threat to the health, safety, and welfare of California residents; specifically, Richmond residents, and the City of Richmond support the amendment of the Tenant Protection Act of 2019 to remove eviction loopholes and lower rent caps; and
WHEREAS, according to recent research conducted by the Chan Zuckerberg Initiative’s Public Opinion and Survey Science research team, 83 percent of California voters support rent control.

NOW, THEREFORE BE IT RESOLVED, that the Richmond City Council hereby endorses Senate Bill 567 and directs staff to send a letter of support to Congressman Garamendi and Governor Gavin Newsom to express the city’s strong support of enacting the bill into law. **********************
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held Insert Date, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

PAMELA CHRISTIAN

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. XX, finally passed and adopted by the Council of the City of Richmond at a regular meeting held on INSERT DATE ADOPTED. 112
Reso. No. XX-23

Page 3 of 3 ends

Pamela Christian, Clerk of the City of Richmond
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Last updated: April 22, 2023
Nb v
Homelessness Prevention Act
SB 567 (Durazo)
Summary
SB 567 will enhance existing state law to better
protect low-income California renters from
unjust evictions and unreasonable rent
increases. This is an effort to address the state’s
rising homelessness crisis.

Background
The rising homelessness crisis has become one
of the most urgent and dire issues in California.

It is present in virtually every community, as
the number of people becoming homeless,
deaths of peoples living in the streets; and
encampments are growing.
1 According to the
US Department of Housing and Urban
Development, California’s unhoused population
has risen by 31% since 2010, which includes a
57% increase in people becoming unsheltered
and living in the streets.
2 In a most recent count
of the state’s unhoused, there are more than
170,000 unsheltered Californians, accounting
for half of the U.S. unsheltered population.
3 This does not include families living in
substandard motel rooms or sleeping on floors
and couches.

Government responses have primarily focused
on rehousing people, yet this has not led to a
decrease in homelessness numbers due to the
influx of newly homeless. While these efforts

1 https://www.theguardian.com/usnews/2022/mar/22/california-homelessness-crisisunhoused-and-unequal 2 Ibid.
3 https://www.ppic.org/blog/homeless-populations-arerising-aroundare needed, they should be complemented by efforts to prevent people from becoming
homeless. While existing law provides for basic
protections from rent-gouging and unjust
evictions, loopholes in the law allow too many
tenants to remain unprotected from eviction.

Problem
There are too many California tenants that
remain at risk of eviction and rents are
increasing beyond what most Californians can
afford. In 2020, the U.S. Government
Accountability Office found a $100 median rent
increase led to a 9% increase in homelessness.

Further, loopholes in existing law have led to
widespread abuses that leave people
vulnerable to displacement or eviction, even
when tenants are in compliance with the terms
of their lease. These evictions and rent hikes
are directly contributing to homelessness. As
inflation soars and both state and local eviction
protections enacted during the pandemic come
to an end, gaps in standing tenant protections
are impacting more renters facing significant
rent increases and “no-fault” evictions.

Solution
SB 567 provides greater housing stability of
Californian’s and reduces the number of people
on the brink of homelessness by:
california/?utm_source=rss&utm_medium=rss&utm_ca
mpaign=homeless-populations-are-rising-aroundcalifornia?utm_source=ppic&utm_medium=email&utm_ campaign=blog_subscriber
119
Last updated: April 22, 2023
 Closing loopholes that allow for
rampant abuse of the no-fault just
causes for eviction.
 Limiting allowable rent increases to a
more reasonable cap.
 Providing mechanisms for accountability
and enforcement.

Sponsors
Alliance of Californians for Community
Empowerment (ACCE)
California Rural Legal Assistance Foundation
Leadership Counsel for Justice and
Accountability
PICO California
Public Advocates
Western Center on Law and Poverty
Support
AAPIs for Civic Empowerment Education Fund
Abriendo Puertas/Opening Doors
ACLU California Action
AHRI for Justice
Alameda County Democratic Party
Alliance San Diego
American Federation of State, County, and
Municipal Employees (AFSCME), AFL-CIO
Bend the Arc Jewish Action
Berkeley Tenants Union
Black Women for Wellness Action Project
CA Calls
CADEM Renters Council
California Alliance for Retired Americans
California Catholic Conference
California Central Valley Journey for Justice
California Chapter
California Community Living Network
California Democratic Renters Council
California Environmental Justice Alliance
California Environmental Voters
California Healthy Nail Salon Collaborative
California Labor Federation
California Nurses Association/National Nurses
United (CNA)
California Pan-Ethnic Health Network
California School Employees Association
California State Council (SEIU)
Canal Alliance
Catholic Charities of Stockton- Environmental
Justice Program
Causa Justa :: Just Cause
CEJA
Center for Community Action and
Environmental Justice (CCAEJ)
Center on Race, Poverty, & the Environment
Central Coast Alliance United for A Sustainable
Economy (CAUSE)
Centro Legal de la Raza
ChangeLab Solutions
CHIRLA
Chispa
City of Santa Monica
City of West Hollywood
CLUE: Clergy & Laity United for Economic
Justice
Coalition for Humane Immigrant Rights
Communities for a New California
Communities for a New California Action Fund
Community Coalition
Community Coalition
Community Health Councils
Community Legal Services in East Palo Alto
Comunidades Aliadas Tomando Accion
Consumer Attorneys of California
COPE/New Life Christian Church of Fontana
Council of Community Housing Organizations
Courage California
Culver City Democratic Club
Disability Rights California
Disability Rights Education and Defense Fund
Dolores Huerta Foundation
East Bay Alliance for a Sustainable Economy
East Bay Housing Organizations
End Poverty in California (EPIC)
Equal Rights Advocates
Esperanza Community Housing Corporation
Eviction Defense Network
Evolve California
120
Last updated: April 22, 2023
Faith in Action Bay Area
Faith in Action East Bay
Faith in the Valley
Fannie Lou Hamer Institute
Filipino Advocates for Justice
Fresno Barrios Unidos
Fresno Homeless Union
Fresno Tenants Union
Friends Committee on Legislation of California
Golden State Opportunity
Greater Napa Valley Fair Housing Center
Greenfield Walking Group
Ground game LA
Healing & Justice Center
Healing and Justice Center
Housing and Economic Rights Advocates
Housing California
Housing is a Human Right Orange County
Housing Now!
Housing Rights Center
Housing Rights Committee of San Francisco
Housing Rights Initiative
Human Impact Partners
Inland Congregations United for Change (ICUC)
Inner City Law Center
InnerCity Struggle
John Burton Advocates for Youth
Justice in Aging Justice Program
Latino Health Access
Law Foundation of Silicon Valley
Legal Aid of Sonoma County
Long Beach Residents Empowered, LiBRE
Mental Health Advocacy Services
MHAction
Mi Familia Vota
Monterey County Renters United
Muslim Public Affairs Council
National Alliance to End Homelessness
National Association of Social Workers -
California Chapter
National Housing Law Project
Navigation Structures
Oakland Rising
Oakland Tenants Union
OC Action
OCCCO
OCCORD
Orange County Asian and Pacific Islander
Community Alliance (OCAPICA)
Orange County Environmental Justice (OCEJ)
Orange County Equality Coalition
Orange County Mobile Home Residents
Coalition
Orange County Voter Information Project
Parable of the Sower Intentional Community
Cooperative
Pasadena Tenants Union
People Acting in Community Together
People's Budget Orange County
Peoples Collective for Environmental Justice
PolicyLink
Pomona Economic Opportunity Center
Pomona United for Stable Housing PUSH
Power California Action
PowerCA Action
Prevention Health Advocates
Public Counsel
Public Health Justice Collective
Public Law Center (PLC)
Regional Asthma Management and Prevention
Resilience OC
Sacramento Act
Sacramento Tenants Union
San Diego Organizing Project
San Diego Tenants United
San Francisco Anti-Displacement Coalition
San Francisco Muslim Community Center
San Francisco Rising
San Gabriel Valley Tenants Alliance
SEIU California
Service Employees International Union
Smart Justice CA
Sonoma Valley Housing Group
St. Luke's/ San Lucas Episcopal Church, Long
Beach
Strategic Actions for a Just Economy
Starting Over, Inc.

State Building and Construction Trades Council
121
Last updated: April 22, 2023
of California
Strategic Concepts in Organizing and Policy
Education (SCOPE)
TechEquity Collaborative
The Children’s Partnership
The Greenlining Institute
The Sacramento Environmental Justice
Coalition
True North
UC Student Association
United Way of Greater Los Angeles
Urban Habitat
Viet Rainbow of Orange County
Vision y Compromiso
Voices for Progress
We Are Not Invisible
Working Partnerships USA
Contact
[email protected]
(916)651-4026
122

SENATOR MARIA ELENA DURAZO
SB 567 KEY STATISTICS AND STORIES
 A $100 increase in rent prices has contributed to a 9% increase in homelessness (Source: U.S. GAO (Government Accountability Office Report)
 A full-time worker would have to earn $39.01/hr in order to afford a 2- bedroom rental home at Fair Market Rent
 Renters need to earn 2.9 times the state minimum wage to afford average asking rent in California, which increased by 4%.  Median rent in California has increased 38% since 2000 while median renter household income has only increased by 7% (adjusted for inflation).
 The Terner Center found that when AB 1482 was passed in 2018- 2019 rent appreciated at a rate of 3-4%, in 2021-2022 rents have appreciated about 16%-11%.
 Between 2017 and 2022 alone, homelessness increased 30% across the state, faster than anywhere in the U.S.
 79% of extremely low-income (ELI) renter households are paying more than half of their income on housing costs compared to 6% of moderate-income renter households. This includes many of the States low-wage workers - Essential Workers!
 According to updated data released today by the California Department of Education, there are about 5.9 million students enrolled in public schools this school year, close to 40,000 fewer students than last year or a .7% drop. But the number of students experiencing homelessness increased by 9%, about 16,000, to a total of approximately 187,000 kids.
123
Court of Public Opinion
o Source: CZI Polling
 According to a Fall 2022 poll, Californians are ready for bold and meaningful action!

 Source: NLIHC Out of Reach 2022 Report
 Number of renters: 17 million
 Number of renter households = 5,861,796
 Number of renter households earning below 30% AMI = 1,308,774  Percent of renter households earning below 30% AMI = 22%  Number of renter households earning below 50% AMI = 2,144,679  Percent of renter households earning below 50% AMI = 37% 124

SOME POWERFUL CENTRAL VALLEY STATISTICS-
 CalMatters released a report in July 2021 with findings that the Central Valley had been hit the hardest with evictions and lockouts throughout the pandemic.
 “On average, about 6 of every 10,000 households were locked out.  The eviction rates jumped to 14 for every 10,000 households in Kern County, 11 in Kings County, 12 in Merced County and 18 in Stanislaus County.” This number doubles when you consider those who self-evicted or those that were evicted outside the normal process. Much of this is due to the lack of protections from AB 1482.  LA Times report in March 2021 - Over the last four years, no large U.S. city has seen greater increases in rent than Fresno.  Since 2017, average rent for homes in Fresno is up nearly 39% to $1,289 a month
 That includes a 12% increase during the pandemic
125

TENANT STORIES
 Teresa Reyes (Bakersfield)
o Asked her landlord to fix a lightbulb January 2023 a couple days after she got a notice of rent increase from $700-$750.

The landlord got upset and told her to learn to speak english in this country, a couple of days later he handed them a 60 day notice of termination of lease. They had to leave due to him remodeling the home, the deadline expired and now they face an eviction. She has looked for an attorney and for her rights endlessly since January, no one has been able to help her. Her court hearing is April 19th, 2023.
o “I could not sleep before my mediation. I did not sleep for two days. I’m paying my rent and even though I can pay rent, I can't believe I am going through this. Just because the landlord says he doesn't want me here. What am I going to do with my
children?”
o “I have seeked help, no one cares and they just give me negative answers. I don’t want to keep his home, I just want time to find somewhere new to rent. I have applied to
apartments, no one has called me back. I can’t sleep, I have tooth pain that I can’t tend to. I have children..”
 Anita Mendoza, San Pablo, Contra Costa
o "I’ve worked hard my whole life as a caretaker for elderly and disabled people in this community, and I have lived in my home for over 30 years, raising my children here. A few years ago a new owner purchased our building. Within months we started receiving eviction notices for substantial renovation trying to kick us out, only giving us the option to return to our property if the rent was raised 200% - far beyond the 10% rent cap the state allows. I was terrified. I knew that if I were evicted or my rent raised that much I would become homeless. I never
thought that at this stage in life that I would be looking at the possibility of living in a tent.
o [Fortunately, after organizing with my neighbors we were able to stop the eviction and instead only get a 10% rent increase, but if my rent continues to go up by 10% every year, in no time 126
will that force me out of my home. My story is proof that rent hikes and evictions do cause homelessness. Had my landlord’s plan initially gone through, or if my rent continues to increase by 10% every year, I will not likely have a roof over my head."]  Teresa Flores (Las Camelias)
o Apartment has flooded every time it rained, the landlord refused to fix it. There was mold, wet and dirty carpets, broken appliances. Chronic migraines caused her to lose work time and catching COVID caused her to miss work and her rent payment. She was handed a UD, no notice between christmas and new years. She seeked help and no one helped, she went through mediation alone with no attorney. The court mediator told her to just accept whatever the landlord’s attorney said to avoid going to a hearing, she would lose everything with a judge. She accepted a repayment plan, sheriff lockout on May 29th and no eviction going on her record for 7 years. She lost her home.
 Iraides Gonzalez, El Cajon, San Diego Area
o "Blackstone has increased my rent by almost 10% - from one day to the other my rent went up by $200. I have been living in this apartment for 4 years now, and another 6 in another unit in this building. 3 years ago, after a $100 dollar rent increase I needed to sublease a room to a stranger. Now I'm subleasing 2 rooms out of the 3 bedroom apartment in order to make rent.

Me and my 3 kids sleep in the same room now. Even with
splitting the rent, I can barely afford it."
 Gladys Valcazar, Imperial Beach, San Diego Area
o "My rent went up by $181 this past month, I live at Grove Condos Apartments in Imperial Beach and my building was purchased by Blackstone. I have been living here for 4 years now and in the last two years that Blackstone purchased my apartment, my rent has already gone up twice. I am a single working mother with 1 son. I cannot afford this. I only have enough money for 6 months of rent and I don't know what I am going to do after."
127
 LaKeisha Burks, Sacramento
o “I've lived in my apartment for 20 years and I just received a 10% rent increase and a $100 increase on my utilities. I think what they are doing should be illegal, all I want to do is pay my rent but with this new rent increase I will have to choose between staying in my apartment or buying food because I only make $1000 a month and $908 will go towards rent.”
 Kimberly Sow, Sacramento
o “My mom just passed away when I was hit with a 12% rent increase - they just fixed it to 10%, but I had to immediately go back to work after my mom’s funeral with no time off to grieve because as a single mom I can’t afford to pay this new rent, food and utilities on the income I have.”
 Vanessa Hernandez, Pittsburg
o "My landlord was trying to evict me for substantial rehabilitation and claiming I could return to the unit under a new lease with the rent increased by $300 - far more than 10%. We were able to stop the eviction, but now our rent has gone up by 10%. I have 2 small children. I have no other place to go and my family will be homeless if these rent increases continue to go through." 128

Page 1 of 3 ends

May 16, 2023
City Council
DATE: May 16, 2023
TO: Members of the City Council
FROM: Mayor Martinez and Vice Mayor McLaughlin
Subject: Recognize the 35th Anniversary of the Marinda Family Daycare
FINANCIAL IMPACT: There is no financial impact related to this item

PREVIOUS COUNCIL
ACTION:

N/A

STATEMENT OF THE
ISSUE:

Marinda’s Family Daycare 35th Anniversary Reunion
Celebration will be honoring Marinda Elaine Keith for her service to our community.

RECOMMENDED ACTION: PROCLAMATION recognizing Ms. Marinda Elaine Keith for providing 35 years of daycare services to Richmond
residents and for creating a familial environment in which children thrive academically, socially, and emotionally - Mayor Eduardo Martinez (510-620-6502) and Vice Mayor
Gayle McLaughlin (510-620-6636).

DISCUSSION:

Ms. Marinda Elaine Keith is being recognized for her service to the Richmond community on May 20, 2023. Marinda’s Family Daycare is located on Campbell Street AGENDA
REPORT
129

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May 16, 2023
in Richmond, California. Marinda’s Family Daycare has been an integral business in the early development of 400 children and families in our community for 35 years.

Ms. Marinda prepares all of her children for school. Ms. Marinda started off teaching her kids with “Hooked on Phonics” in the 1990s, and now she has developed her own curriculum that she teaches her children. At 3-5 years of age, the children are doing work at a 1st grade level. Whether the child is attending public school or private school, every child who has spent their formative years at Marinda’s Family Daycare is advanced and well-prepared for elementary school.

Ms. Marinda provides care for school-age children by giving them a hot meal immediately after school, dropping them off and picking them up, and meeting with teachers to make sure they are on the right track. Ms. Marinda provides a studious environment for her children to complete assignments, and supplies fun activities such as board games, arcade games, and basketball when they are finished.

Throughout the COVID Pandemic, Marinda’s Family Daycare remained open to provide care for the children of essential workers. Ms. Marinda successfully navigated 7 separate virtual school classrooms, class work, over twenty separate teachers, class schedules, and assignments. She was determined that no child fell behind, and none of her elementary and junior high school students fell behind.

Ms. Marinda is a firm believer that we can do all things through Christ who strengthens us. With that scripture on her heart, she encourages the school-age children to give their best in all things - at all times. She instills in them that all things are possible. At Marinda’s daycare the school-age children are encouraged to talk about what colleges and universities they plan to attend, what careers they want to have, and the work it takes to accomplish their goals.

Every person who walks into Marinda’s Family Daycare is family; Ms. Marinda prays with and encourages families during hard times, celebrates their triumphs, lends a helping hand, and reminds parents and family members that her doors are always open.

Ms. Marinda has family fun days where all the children, parents, and families come together and visit local theme parks. Every holiday, the children make special art and craft keepsakes for their parents. Marinda and the children deliver holiday baskets to seniors living in the neighborhood. Marinda also hosts holiday parties for the children, parents, and extended families.

Ms. Marinda has always believed in working with parents’ work schedules. If the parent has to go to work early or get off late; Marinda is accommodating and flexible. At 65- years-old, Marinda has spent 35 years working 11-hour days caring for children and their families. And as she says, “I am in no way tired.” Marinda’s Family Daycare 35th Anniversary Reunion will be a celebration in honor of Marinda’s love, education, and care to countless children, parents, and extended family members.
130

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May 16, 2023
Vice Mayor McLaughlin requested that the City Council adopt a proclamation that recognizes Ms. Marinda Elaine Keith for her 35 years of service to the Richmond community.

DOCUMENTS ATTACHED:

Attachment – Proclamation
131

Proclamation Recognizing Marinda’s Family Daycare
35th Anniversary Celebration
May 20, 2023
WHEREAS, Marinda’s Family Daycare has been an integral business in the early development of 400 children and families in our community for 35 years; and WHEREAS, Marinda’s Family Daycare is located at 1053 Campbell Street in Richmond, California; and WHEREAS, Marinda Elaine Keith has educated every child who has attended her day care with “Hooked on Phonics” in the 1990s, and has since then developed her own curriculum, so that her children are advanced and well prepared for elementary school; and WHEREAS, Marinda provides care for school age children by dropping them off and picking them up, meeting with teachers to make sure they are on the right track, providing a studious environment for her children to complete assignments, and fun activities such as board games, arcade games, and basketball; and
WHEREAS, Marinda is a firm believer that we can do all things through Christ who strengthen us; she instills in her children that all things are possible and encourages them to talk about what colleges they want to attend, what careers they want to have, and the work it takes to accomplish their goals; and
WHEREAS, Marinda’s Family Daycare provided care for the children of essential workers throughout the Covid Pandemic, and worked with teachers to ensure that none of her elementary and junior high students fell behind; and
WHEREAS, in 35 years of daycare, Marinda has never missed a day to serve a hot delicious meal to her children; and
WHEREAS, every person who walks into Marinda’s Family Daycare is family; Marinda prays with and encourages families during hard times, celebrates their triumphs, lends a helping hand, and reminds parents and family members that her doors are always open.

NOW, THEREFORE, BE IT RESOLVED, that the Richmond City Council on May 16, 2023, does hereby recognize Ms. Marinda Elaine Keith for her 35 years of service to Richmond residents and congratulates the Marinda Family Daycare.

Eduardo Martinez Gayle McLaughlin
Eduardo Martinez, Mayor Gayle McLaughlin, Vice Mayor
132

Page 1 of 7 ends

May 2, 2023
City Manager's Office
DATE: May 2, 2023
TO: Mayor Martinez and Members of the City Council
FROM: Shasa Curl, City Manager
Dave Aleshire, City Attorney
Samantha Carr, Environmental Manager
Subject: Settlement Agreement with Pacific Gas and Electric (PG&E) and Amending Ordinances
FINANCIAL IMPACT: This action will increase the City’s revenue by $800,000 disbursed over four years ($200,000 per year) starting
Fiscal Year (FY) 2022-23, approximately $500,000 in FY
2023-24, and approximately $3.3 million in FY 2024-25.

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

In 1958, the City entered into franchise agreements
(Franchise Agreements) with PG&E for electricity and
natural gas which permits a review of franchise terms
every 20-years. In compliance with the Agreements’
terms, the City submitted a formal request to PG&E to
adjust the franchise fee. The parties could not come to an agreement and subsequently entered into arbitration in
an attempt to settle the matter. Arbitration was split into two phases and the arbitrator ruled in the City’s favor in the first phase. Subsequent negotiations were conducted and have resulted in a settlement agreement to settle
outside of arbitration making changes to the Franchise
Agreements.

AGENDA
REPORT
133

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May 2, 2023
RECOMMENDED ACTION: ADOPT an ordinance (second reading) amending Ordinance 1579 which granted a franchise for the
transmission and distribution of electricity within the City to PG&E to revise the franchise fee and add a franchise fee surcharge and ADOPT an ordinance (second
reading) amending Ordinance 1580 which granted a
franchise for the transmission and distribution of gas
within the City to PG&E to add a franchise fee surcharge - City Manager’s Office/City Attorney’s Office (Shasa Curl 510-620-6512/Samantha Carr 510-620-5407/Dave
Aleshire 510-620-6509).”
DISCUSSION:

Background
In 1958, the City entered into franchise agreements (Franchise Agreements) with Pacific Gas & Electric (PG&E) for electricity and natural gas which permits a review of franchise terms every 20-years (Attachment 1). Currently PG&E pays the City franchise fees of 0.5 percent of its electric revenues and 1 percent of its gas revenues from City customers. While 1 percent is a fairly common franchise fee for general law and charter cities in California, some charter cities, including within PG&E territory, receive franchise fees at a range of up to 2 percent or higher, including the Charter City of San Jose.

The City’s 1958 Franchise Agreements allows the City to request higher franchise fees during the 20-year review period if it satisfies one or more of the three “reopener conditions”:

1. “A substantial change in economic conditions affecting franchise payments hereunder.”

2. “A method of distribution of electricity/gas other than that used at the time of the grant of this franchise, which changed method of distribution substantially increases or decreases the burden on the streets of City or substantially increases or decreases costs and expenses to City.”

3. "A revised method of franchise payment in a substantial number of other cities served by grantee.”
In an ongoing process since 2018, the City requested that the parties reopen fee discussions as to both the electric and gas franchises, claiming all three conditions existed. PG&E refused the City’s request, arguing that none of the three conditions existed as to either franchise. The parties agreed to arbitrate the dispute, as the franchises require, and entered into arbitration. The City contracted with Colantuono, Highsmith, & Whatley, PC (“Colantuono”) to provide specialized legal services and to 134

Page 3 of 7 ends

May 2, 2023
represent the City in pre- and post-arbitration related to the PG&E electricity and natural gas utility Franchise Agreements and related franchise fees.

The parties agreed to split the arbitration into two phases:
 Phase 1) whether one or more of the reopener conditions is satisfied and  Phase 2) if so, the “measure or amount and timing of implementation” of new franchise fees
The City argued that all three conditions were met and in particular, impacts to human health and local infrastructure caused by climate change and sea level rise leading to a substantial change in economic conditions. These financial impacts are also caused in part by the sale and transmission of electric and gas services provided under the Franchise Agreements.

The Judge arbitrating the case issued their Phase 1 decision in favor of the City noting:
 The reopener conditions should be read broadly because the franchises are “indeterminate” and have no expiration date, because the City may reopen compensation discussions only once every 20 years, and because the conditions were intended to apply perpetually, are stated in general terms, and lack specifics.
 The City showed a substantial change in economic conditions affecting both electric and gas franchise payments and thus satisfied the first reopener condition for both franchises. The Judge cited the effects of the pandemic, the City’s falling tax revenues, and the growing impacts and costs of climate change as evidence for this conclusion. The Judge also mentioned the City’s unreimbursed costs associated with PG&E’s undergrounding work to support this conclusion.

After the passage of some time with the parties contemplating the Phase 2 process, PG&E requested to meet with the City in an attempt to settle the franchise compensation terms before the Phase 2 commenced. The City Attorney elected to undertake a direct discussion without the City’s outside legal counsel.

Data Analysis
PG&E provided estimated data to the City on the 2021 customer make-up in Richmond.

A majority of Richmond electric and gas customer accounts are commercial and industrial (Chart B). Of residential customers, approximately 40 percent are enrolled in PG&E’s CARE program and less than .1 percent of businesses are enrolled.

The PG&E CARE program, also known as the California Alternate Rates for Energy Program, provides a monthly discount of 20 percent or more on gas and electricity to eligible customers. Participants qualify based on household income OR if one person in the household is enrolled in certain public assistance programs such as CalFresh/Snap, WIC, SSI, Medi-Cal for Families, etc. The program household income limits are based 135

Page 4 of 7 ends

May 2, 2023
on the total gross household income (Chart A). For example, a home with four people could qualify if the total gross household income is $55,500 or less.

Chart A - PG&E CARE program
Proposed Settlement Agreement
City of Richmond and PG&E staff members have been working diligently to settle the matter outside of arbitration. City staff are seeking the City Council’s approval of the settlement agreement outlined below in Chart C and provided as Attachment 2. This settlement agreement would require the update and amendment to Ordinance 1579 (Attachment 3) and Ordinance 1580 (Attachment 4).

The increased revenue received would cover costs to address impacts to human health and local infrastructure caused by climate change and sea level rise as well as road impacts from encroachment on City right-of-way PG&E service vehicles.

The City did not get everything it was seeking in the negotiation; for example, the City sought to make the franchise review periods more frequent than 20 years, but PG&E would not agree and stated that some of the things the City sought were not a part of the arbitration process. However, it is unlikely that the City could have received a better result in the arbitration as there are not a substantial number of cities with more favorable arrangements.
20%
8%
72%
Chart B: Richmond
Customer Percentages
2021 (estimates)
Residential
Commercial &
Small Industrial
Industrial
136

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May 2, 2023
Chart C: Settlement Implementation
Settlement Task Phase 1: Settlement
Agreement Approval and
Ordinance Amendment
Phase 2: CPUC Approval
1 Electric Franchise
Agreement Update
.05% to 2.3%
Increase Electrical
Franchise Fee by .5% to a
new total of 1%
Increase Electrical Franchise Fee
by 1.3% to a new total of 2.3%
Customers to receive 1.3%
surcharge equivalent to
approximately $7.33 ($0.61 per
month)*
CARE customers are exempt
2 Gas Franchise
Agreement Update

1.0% to 2.3%
No change Increase Electrical Franchise Fee
by 1.3% to a new total of 2.3%
Customers to receive 1.3%
surcharge equivalent to
approximately $10.14 per year
($0.85 per month)*
CARE customers are exempt
3 PG&E cover their
labor costs to
update system and
take to CPUC for
approval
PG&E cover their labor
costs to update system and
take surcharge request to
CPUC for approval
PG&E cover their labor costs to
update system to implement
CPUC direction
4 One-Time Payment
of $800,000 for
Community
Benefits over four
years
Execute Settlement
Agreement for City to
receive first payment of
$200,000
Remaining 3 payments will
be distributed to the City
April 2024, 2025, and 2026
N/A
*Estimates provided by PG&E staff based on 2021 data
137
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6 of 7
May 2, 2023
138

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May 2, 2023
NEXT STEPS:

If the settlement agreement and ordinance amendments are approved by the City Council, PG&E has agreed to file an Advice Letter with the California Public Utilities Commission (CPUC) seeking approval of the new 2.3 percent rate. Any rate above 1 percent is required to be approved by the CPUC. This approval process takes about 1-3 months, and the City will send a letter in support of the change. PG&E expressed high confidence that CPUC would approve the project. Additionally, the City and PG&E will work collaboratively to send the City the first $200,000 one-time payment.

The franchise amendments are ordinances and are being noticed for adoption.

DOCUMENTS ATTACHED:

Attachment 1 – Ordinance 1579 and Ordinance 1580
Attachment 2 – Proposed Amended Ordinance 1579 (revisions only) Attachment 3 – Proposed Amended Ordinance 1580 (revisions only) 139
l B&FORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF

CALIFORNIA
2 3
4 5
6 7
8 9
In the matter of the application of
PACIFIC GAS AND ELECTRIC COMPANY for
an order issuing a certificate of
public convenience and necessity to
exerc.ise the right, privilege and
franchise granted to appl.icant by
Ordinance No. 1579 of the Council of
the CitY,.·.,of RICHMOND, County of Contra
Costa, State of California.
(Electric)
10 !. .!: .!: !! .!. Q. ! ! .!. Q .!'!
FILE b
FEB 1 G 19-so . ''

APPLICATION
NO. 4 1 9 4 8 ~
11 TO THE HONORABLE, THE PUBLIC UTILITIES COMMISSION
12 OF THE STATE OF CALIFORNIA:
13 PACIFIC GAS AND ELECTRIC COMPANY, a California
14 corporation {herein sometimes called applicant) seeks an 15 order of the Comm.ission under Section 1002 of the Public 16 Utilities Code of the State of California (California 1? Statutes 1951, Ch. 764) issuing to applicant a certificate 18 declaring that public conven.ience and necessity require the 19 exercise by applicant of the r.ight, priv ile~e and franchise 20 granted to it by Ordinance No. 1579 of the Council of 21 the City of Richmond, County of Contra Costa, State of 22 California.
23 In support of its within petition, applicant
24 avers as follows:
25 I
26 APPLICANT
27 Applicant now is, and ever since the lOth day of
28 October 1905 has been, an operating public utility corpora29 t .ion, duly organized and existing under and by virtue of the 30 laws of the State of Cal.ifornia, engaged principally in the 1 140
/ ,/
:.•
----''----'--- ~-- ·····--·- ·---
l
2 3
4 5
6 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF

CALIFORNIA
7 8
9 In the matter of the appl.ication of
PACIFIC GAS AND ELECTRIC COMPANY for
an order issu.ing a certificate of
public convenience and necess.i ty to exercise the right, privilege and franchise granted to applicant by
Ordinanqe No. 1579 of the Council of
the City' pf RICHMOND, County of Contra
Costa, St~te of California.
(Electric)
10 ! .!: .!: .!! .! .£ A .!. .! Q .!!
FILED
FEB 1 G 1960

APPLICATION
NO. 4 1 9 4 8 ~
11 TO THE HONORABLE, THE PUBLIC UTILITIES COMMISSION
12 OF THE STATE OF CALIFORNIA:
13 PACIFIC GAS AND ELECTRIC COMPANY, a California
14 corporation {herein sometimes called appl.icant) seeks an 15 order of the Comm.ission under Section 1002 of the Public 16 Utilities Code of the State of California (Cal.ifornia 17 Statutes 1951, Ch. 764) issuing to applicant a certificate 18 declaring that public convenience and necessity require the 19 exercise by applicant of the right, pr.ivilec;e and franch.ise 20 granted to it by Ordinance No. 1579 of the council of 21 the City of Richmond~ County of Contra Costa, State of 22 California.
23 In support of its within petition, applicant
24 avers as follows:
25 I
26 APPLICANT
27 Applicant now is, and ever since the lOth day of
28 October 1905 has been, an operating publ.ic util.ity corpora29 tion, duly organized and existing under and by virtue of the 30 laws of the State of California, engaged principally in the 1 141
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,.
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------~--- --·-··---·- ------ _____ .._ ----~
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business of furnishing electric and gas service in
California, It also distributes and sells water in a number of cities and towns and certain rural areas, and produces and sells steam heat in certain parts of the cities of
San Francisco and Oakland.

Applicant's principal place of business is in the
City and County of San Francisco, State of California. Its Post Office address is 245 Market Street, San Francisco 6, Californ.ia, and its attorneys in this matter are F. T. Searls, John c. Morrissey and John S. Cooper.

Commun-ications regarding applicant in connection
with this application should be addressed to F. T. Searls, General Attorney of applicant, at the above mentioned address.

A certified copy of applicant's Articles of
Incorporation, as amended to the date of th.is petition, is of record before the Commission .in connection with appl icant• s Application No. 39179 (Exhibit A) filed on June 25, 1957, and said Articles are incorporated herein by
reference.

II
'ORDINANCE NO. 1579
On or about the 21st day of April, 1958,
the Counc.il of the City of Richmond, County of Contra
Costa, State of California, adopted an ordinance des.ignated as Ordinance No. 1579, a true and correct copy whereof is annexed hereto, marked Exhibit A, and made a part hereof.

Ordinance No. 1579 grants to applicant, its
successors and assigns, the franchise (1) to use, for
transmitt.ing and d.istributing electricity suited for
l.ighting but for use by consumers for any and all lawful 2 142
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7 8
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purposes other than lighting, all poles, wires, conduits and appurtenances which are now or may hereafter be lawfully placed and maintained in the streets within the City of Richmond, in its present incorporated form and in any later reorganized . consolidated, enlarged, or reincorporated form, under that certain franchise of grantee acquired pursuant to Section 19 of Article XI of the Constitution of the State of California, as said section existed prior to .its amendment on October 10, 1911, and (2) to construct, maintain and use .in said streets all poles, wires, condu,its and appurtenances whenever and wherever the constitutional franchise of grantee is not now nor shall hereafter be
available therefor, necessary to transmit and distr.ibute electricity suited for, and for use by consumers for, any or all lawful purposes, and ( 3) to util.ize said poles, wires, condu.its and appurtenances in said public streets and places for transmitting electric.ity for use outside the boundaries of said city for any and all lawful purposes.

The franchise is by its terms indeterminate,
that is to say, it will endure .in full force and effect until the same shall, with the consent of the Public
Util.ities Commission of the State of Californ.ia, be
voluntarily surrendered or abandoned 'by grantee, or until the state or some municipal or public corporat.ion thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of
eminent domain, all ·property actually used and useful in the exercise of said franchise and situate in the territorial limits of the state, munic.ipal or public corporation purchasing or condemning such property or until said 3 143
t/ ... - ·• .. ·.· ... :_ ...
----~----- -- --~- "-•··--- -"·" ---- -
1 franchise sha~l be forfeited for noncompliance with its 2 terms by the grantee.
3 Section 4 of Ordinance No. 1579 provides that
4 the grantee of said franchise shall pay to the City of 5 Richmond annually, either two per cent (2%) of the gross 6 ?
8 9
10 ll
12 13
14 15
16 1?
18 19
20 21
22 23
24 25
26 27
28 29
30 annual receipts of the grantee arising from the use, operation or possession of the franchise, or a sum which shall be equivalent to one-half per cent (1/2%) of the
gross annual receipts derived by grantee from the sale of electr.icity within the l.imita of said c.ity, under said franchise and under said constitutional franchise, whichever is greater; provided that the measure or amount of annual payments may be changed at the end of any twenty (20) year per.iod of said franchise as set forth under
Section 5 of the ord.inance.

Section 18 of Ordinance No. 1579 provides that
the franchise shall at all times be held and exercised by grantee subject to the right of the C.ity of Richmond to purchase by voluntary agreement with ~rantee, or by condemnation, so much of the electric properties of grantee located within tne Yimits of the City of Richmond as City may elect.

Ordinance No. 1579 provides that .it shall become
effective thirty days after its final passage, unless suspended by a referendum petit.ion filed as prov.ided by law, and upon written acceptanc·e of the franchise thereunder by the grantee thereof. Ordinance No. 1579 was finally adopted and ordered published at a regular meeting of the Council held on the 21st day of April, 1958. The City Clerk of
the C.ity of Richmond caused the ordinance to be published 4 144
I ' - ,::, ··-::.·,'-;
:t ~-~· ... , -:: ~ .: .. _. _,-.-·. ··.:: .
:-·-: .;: . .-
1 in the manner and within the time specified therein; the 2 ordinance was not suspended by a referendum petition filed 3 as provided by law, or otherwise, or at all; the appl~cant, 4 on or about the 21st day of May, 1958, accepted the fran5 chise granted by said ordinance; and the franchise became 6 effective on the 21st day of May, 1958.
7 The cost to applicant of acquiring the franchise
8 granted by Ordinance No. 1579 was the sum of Nine thousand 9 three hundred fifty-three and 07/100 Dollars ($9,353.07), 10 exclusive of the fee which must be paid to the Public 11 Utilities Commission of the State of California under and 12 pursuant to the provisions of Section 1904 (b) of the 13 Public Utilities Code, namely, Fifty and 00/100 Dollars 14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 ($50.00). This cost comprises:

Payment to the City of Richmond as
consideration for the ~rant of
the franchise .......... . .............. $ 9, 205 . 24 Publication of Notice of Intention to
grant franchise ........ . ............. . 20.21
Publication of Ordinance No. 1579....... __ .;;;.._.;._;,._ 127.62 $ 9, 353.07
Applicant hereby p~ipulates and agrees that it, its
successors or assigns, will never claim before the
Commission or before any court or public body, a value for said franchise in excess of the actual cost thereof.

III

PUBLIC CONVENIENCE AND NECESSITY
The facts showing that public convenience and
necessity require and will require, that applicant exercise the right, privilege and franchise granted to .it by
Ordinance No. 1579 of the Council of the City of Richmond 5 145
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are as follows:

The City of Richmond is located in the County of
Contra Costa, State of California, It was incorporated on August 16, 1905, and, according to the 1959 California
Roster has a population of approximately 99,545. A map of the City of Richmond .is annexed, marked Exhibit B, and made a part hereof.

Applicant now is, and it and its predecessors in
interest for more than 50 years last past have been furnishing and supplying electricity to persons, firms and corporat.ions s.ituate in the City of Richmond for light, heat. power and all other lawful purposes and uses. A statement giving a brief history of this electric service, the source of electric supply, the miles of electric lines in the City of Richmond, the number of customers served, and other
data pertinent to this application, is annexed, marked
Exh.ibi t C, and made a part hereof.

Applicant, upon obtaining a certificate of public
convenience and necessity from the Commission to exercise the right, privilege and franchise granted by Ordinance No. 1579 of the Council of the City of Richmond, will thereafter in the conduct of .its electric business in the City of Richmond, in .its present .incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form, exercise the rights and pr.ivileges under the constitutional franchise and the franchise granted by Ordinance No. 1579.

Applicant believes and therefore alleges that
it will be for ita best interests and the interests of its present and future electric customers in the City of
6 146
II
::
1 i.J. Richmond that in the conduct of its electric business .it 2 exerc.ise the rights and privileges of its perpetual
~~ 3 ::::l··: constitutional franchise and the indeterminate franchise 4 granted by Ordinance No . 1579 for the reason that its 5 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 ~::: :::::.~:. electric franchise rights in said city will thereby be defin.i tely established for as long a time as applicant or its successors or assisns shall furnish electric service .in ..
.. ..
said city; further, applicant, in continuing qualified its outstandinz bonds and effecting qualification of future :: issues of bonds as legal investments for savings banks and !.:. trust funds, will not be under the necessity of apply.ing for or obtaining from the City of Richmond any new or addiH [j t.ional electric franchises or franchise r.ights.

Applicant has issued and outstand.ing in the
ll hands of the public a large amount of First and Refunding ~l Mortgage Bonds, all of which are now qualified as legal ::
g investments for savings banks in a number of the states ::

II of the United States. It is desirable that said bonds, :~together with future issues of applicant's bonds, should ll qualify as legal investments for sav.ings banks and trust ~~ funds in as many -states of the United States as is possible :1 to broaden the market for applicant's bonds and to enable ~ applicant to obtain h.igher prices for its bonds. In other tl words, the matter of the legalization of applicant's bonds !: as savings bank and trust fund investments has a definite ::
jj bearing upon the cost of money to applicant which in turn ::
\1 ul t .imately has an effect upon the rates charged for public !! utility services supplied. The exercise by applicant of !i
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franchises now possessed and exercised by applicant, and those obtained and hereafter to be obtained, is essential to enable applicant to qualify and/or continue so qualified its said bonds.

PUBLIC UTILITY SERVICE
No person, firm or public or private corporation,
other than applicant, is now engaged in the public utility business of furnishin~, distributing or selling electricity for light, heat, power or other lawful purposes in or to the City of Richmond, or to the residents. or inhabitants thereof or business enterprises situate therein and said city and its residents, inhabitants and business enterprises are dependent upon applicant and the properties owned, operated and maintained by it for electric service to meet their respective needs and requirements, present and prospective.

WHEREFORE, PACIFIC GAS AND ELECTRIC COMPANY
prays that the Public Utilities Commission of the State of California dulyc give and make its order and decision granting and issuin6 to applicant a certificate declaring that the present and future public convenience and
necessity require and will require, the exercise by it o.f the right, privilege and franchise granted by said
Ordinance No. 1579 of the Council of the City of Richmond, County of Contra Costa, State of California, all as provided for in Section 1002 of the Publ.ic Utilities Code 8 148
··''·:·
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---~----·--- -----· ..:. ... ~·--- ..
1 of the State of California.
2 Dated at San Franc.isco, Cal.ifornia, this
:3
4 5
6 7
8 9
10 12th day of February, 1960.

PACIFIC GAS AND ELECTRIC COMPANY
L. HAROLD ANDERSON
Vice President and Assistant
Gener.al Manager
11 F. T. SEARLS
12 JOHN C. MORRISSEY
13 14 JOHN S. COOPER
Attorneys tor Pac~fic Gas and
15 Electric Company, 245 Market Street,
·· San Francisco 6, California
16 1?
18 19
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26 27
28 29
30 ::
9 .-._
149
1 2
3 .. :.- -·
I, the undersigned, say:

I am an officer of PACIFIC GAS AND ELECTRIC
4 COMPANY, the applicant herein, and I make this declaration 5 as such on behalf of said applicant. I have read the
6 foregoing application and know its contents. It is true 7 of my own knowledge, except as to those matters which 8 are stated there.in on information and belief and as to 9 those matters I believe .it to be true.
10 I declare under penalty of perjury that the
11 foregoing is true' and correct.
12 Executed at San Francisco, California, on
13 February 12, 1960.
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 L. HAROLD ANDERSON
Vice President and Assistant
General Manager

PACIFIC GAS AND ELECTRIC COMPANY
10 150
. -
::·· .

ORDINANCE NO. 1579

ORDINANCE GRANTING TO PACIFIC GAS AND ELECTRIC COMPANY, ITS SUCCESSORS AND .ASSIGNS, THE FRANCHISE (1) TO USE, FOR TRANSMITTING .AND DISTRIBUTING ELECTRICITY SUITED FOR LIGHTING BUT FOR USE BY CONSUMERS FOR .ANY .AND .ALL LAWFUL PURPOSES OTHER THAN LIGHTING, ALL POLES, WIRES, CONDUITS .AND .APPURTENANCES WHICH .ARE NOW OR M.AY HEREAFTER BE LAWFULLY PLACED .AND MAINTAINED IN THE PUBLIC STREETS .AND PLACES WITHIN THE CITY OF RICHMOND UNDER THAT CERTAIN FRANCHISE OF GRANTEE .ACQUIRED PURSUANT TO SECTION 19 OF .ARTICLE XI OF THE CONSTITUTION OF

THE STATE OF CALIFORNIA, AS SAID SECTION EXIS'I'ED PRIOR TO ITS AMENDMENT ON OCTOBER 10, 19111 AND (2) TO CONSTRUCT, MAINTAIN

AND USE IN SAID PUBLIC STREETS AND PLACES ALL POLES, WIRES, CONDUITS AND APPURTENANCES WHENEVER AND WHEREVER SAID CONSTITUTIONAL FRANCHISE IS NOT NOW NOR SHALL HEREAFTER BE AVAILABLE THEREFOR 1 NECESSARY TO TRANSMIT .AND DISTRIBUTE ELECTRICITY SUITED FOR, AND FOR USE BY CONSUMERS FOR, .ANY OR .ALL LAWFUL PURPOSES, .AND (3) TO UTILIZE S.AID POLES, WIRES, CONDUITS AND APPURTENANCES IN SAID PUBLIC STREETS AND PLACES FOR TRANSMITING ELECTRICITY FOR USE OUTSIDE THE BOUNDARIES OF THE CITY FOR ANY AND .ALL LAWFUL PURPOSES, .AND PROVIDING THE TERMS .AND CONDITIONS OF THE FRANCHISE SO GRANTED.

The City Council of the CITY OF RICHMOND does ordain aa follows:

Section 1. Whenever 1n this ordinance the words or phrases hereinafter in this section defined are used, they shall have the respective meanings assigned to them in the following definitions:
(a) The word 11 grantee 11 shall mean Pacific Gas and Electric Company, its lawful successors or assigns;
(b) The word "city" shall mean the City of Richmond, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form; ·
(c) The word "streets" shall mean the public streets, ways, alleys and places as the same now or may hereafter exist within city, including state highways, now or hereafter established within city, and freeways hereafter established within city;
(d) The phrase "poles, wires, conduits and appurtenances" shall mean poles, towers, supports, wires, conductors, cables, guys, stubs, platforms, crossarms, braces, transformers, insulators, conduits, ducts, vaults, manholes, meters, cut-outs, sw1tch~s, -1- EXI-IIBIT A 151
.. - :-. .... ..::.....:..:.: .... . _
communication circuits, appliances, attachments, appurtenances and, without limitation to the foregoing, any other property located or to be located in, upon, along, across, under or over the streets of city, and used or useful in transmitting and/or distributing electricity.
{e) The phrase "<lonstruct, maintain and use" shall mean to construct erect, install, operate, maintain, use, repair or replace; {f) The phrase "constitutional franchise" shall mean the right acquired through acceptance by grantee or its predecessor in estate of the offer contained in the provisions of Section 19 of Article XI of the Constitution of the State of California, as said section existed prior to its amendment on October 10, 1911.

Section 2. The franchise (1) to use, for transmitting and distributing electricity suited for lighting but for use by consumers for any and all lawful purposes other than lighting, all poles, wires, conduits and appurtenances which are now or may hereafter be lawfully placed and maintained in the streets within city under the constitutional franchise of grantee, and (2) to construct, maintain and use in said streets all poles, wires, conduits and appurtenances whenever and wherever the constitutional franchise of grantee is not now nor shall hereafter be available therefor, necessary to transmit and distribute electricity suited -for, and for use by consumers for, any or all lawful purposes, and (3) to utilize said poles, wires, conduits and appurtenances in said public streets and places for transmitting electricity for use outside the boundaries of the city for any and all lawful purposes, and providing the terms and conditions of the franchise so granted, is hereby granted to Pacific Gas and Electric Company, its successors and assigns. Nothing contained in this franchise sha.ll be deemed or construed as an acknowledgment, acceptance, agreement, or acquiescence by city that Grantee has the claimed constitutional franchise. This franchise is granted subject to the express proviso that although grantee claims said constitutional -2-
152
franchise city does not recognize or accept the validity of said claim.

Section 3. Said franchise shall be indeterminate, that ·is to say, said. franchise shall endure in fullforce and effect until the same shall, with the consent of the Public Utilities Commission of the State of California, be voluntarily surrendered or abandoned by grantee, or until the state or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all property actually used and useful in the exercise of said franchise and situate in the territorial limits of the state, municipal or public corporation purchasing or condemning such property, or until said franchise shall be forfeited for noncompliance with its terms by grantee.

Section 4. Grantee shall pay to City at the time of the grant of this franchise the sum of $9205.24 and shall thereafter pay to city annually, either two per cent (2%) of the gross annual receipts of grantee arising from the use, operation or possession of the franchise granted hereby, or a sum which shall be equivalent to one-half per cent (1/2%) of the gross annual receipts derived by grantee from the sale of electricity within the limits of city under both the franchise granted- hereby and said constitutional franchise, if any, whichever is the greater; provided that the measure o~ amq,~t of annual payments may be changed as provided in Section 5 hereof.

Section 5. The measure or amount of annual payments hereunder may be changed at the end of any twenty (20) year period of this franchise in accordance with the following procedure and subject to the following conditions:

At least one (1) year prior to the end of any twenty (20) year period, one party may give written notice to the other party that it desires to change the measure or amount of annual payments hereunder; such written notice shall specify the proposed new measure or amount of annual payments.
-3- 153
;.

This franchise shall be subject to such change in measure or amount of annual payments only if there has oocurred one or more of the following:
a. A substantial change in economic conditions affecting franchise payments hereunder.
b, A method of distribution of electricity other than that used at the time of the grant of this franchise, which changed method of distribution substantially increases or decreases the burden on the streets of City or substantially increases or decreases costs and expenses to city.
c. A revised method of franchise payment in a substantial number of other cities served by grantee.

If the parties cannot agree as to the proposed change in the measure or amount of annual payments, or ca~~ot agree as to whether or not any of the things set forth in subdivisions a to c, inclusive, have occurred or both, the matter or matters shall be submitted to a board of arbitration for determination thereon. Such determination shall be in writing supported by a detailed written statement of the facts upon which the occurrence of the conditions a, b or c are found to exist. such determination by the board shall be final and conclusive and binding on both parties. Such board of arbitration shall consist of three (3} members; one to be selected by city', one to be selected by grantee, and one to be selected by the two so named by the parties.

Section 6. Grantee shall file with the Clerk of City within four (4} months after the expiration of the first calendar year or fractional part thereof following the effective date hereof, and within four (4) months after the expiration of each and every calendar year thereafter, a duly verified statement showing in detail the total gross receipts of grantee during the preceding calendar year or such fractional calendar year from the sale of electricity within the limits of city. Grantee shall pay to oity within fifteen (15) days after the timefor·f111ng such statement, in lawful money of the -4-
154
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United States, the aforesaid percentage of its gross receipts for such calendar year or such fractional year covered by such statement. The City Manager of city or any person designated by him, at any reasonable time during business hours may make examination at grantee's office or offices of its books and records germane to and for the purpose of verifying the data set forth in said statement. Any neglect, omission or refusal by grantee to file such verified statement or to pay such percentage at the time and in the manner specified shall be grounds for the declaration of a forfeiture of this franchise and of all rights of grantee hereunder.

Section 7. Grantee shall construct, maintain and use all electric facilities in accordance and in conformity with all of the laws, ordinances, rules and regulations heretofore or hereafter adopted by city in the exercise of its police powers, and, as to State Highways, subject to the provisions of general laws relating to the construction, maintenance or use of electric facilities therein. All work undertaken or performed and all electric facilities constructed, maintained or used under this franchise shall be of the standard and performed as required by law, by the lawful order of the Public Utilities Commission, and of any other governmental authority having jurisdiction in the premises.

Section 8. In r·e-spect to any underground district established by city pursuant to its police powers, applicable alike to telephone, telegraph and electric poles or wires within such district, (othe~ than for street illumination, traffic control, overhead trolley wire guys and feeders for actual use of street railways or buses in lawful operation upon the streets, or for any pedestal for the official use of the fire or police department of city for its traffic, alarm, or communication system within such district) owned or operated by any person, firm, or private or public corporation doing business within city, grantee shall at its own expense conform to all lawful requirements for placing grantee's electric facilities underground imposed in the establishment of such underground district and made -5- 155
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in the exercise of the police powers of city.

Section 9. Grantee shall not construct, maintain or use any electric facilities under this franchise at any location until and unless such location shall have been approved therefor by the City Engineer in the reasonable exercise of the police powers of city, and all work performed under this franchise shall be performed with the least possible hindrance to the use of the street for the purpose of travel or other public street purposes. All such work shall be prosecuted in good faith and with due diligence until completed.

Section 10. When any opening or excavation is made, or work done by grantee in, upon. along, across, under or over any street pursuant to this franchise, any portion of said street, or of any public property of city lawfully located therein, affected or damaged thereby shall be restored as promptly as practicable by grantee, without cost to city, to as useful, safe, durable and good condition as existed prior to the making of such opening, or such excavation. or the doing of such work, and the same shall be performed in conformity with-the provisions of all lawful ordinances of city, enacted under the police powers of city in force and effect at the time of the performance thereof, and shall be to the reasonable satisfaction of the City Engineer. By the acceptance of this franchise grantee agrees that after the work of restoring -such portion of said street has been com- _pleted as provided in this paragraph, it will keep such portion of said street so restored in as useful, safe, durable and good condition as existed prior to making ·or such opening or excavation or the doing of such work, ordinary wear, tear and use excepted, as long as the City Engineer shall reasonably determine that such portion of said street is affected or damaged by such opening or excavation made, or such work done in, upon, along, across, under or over said street by grantee.

Section 11. Upon abandonment of any of the electric facilities constructed, maintained or used hereunder, grantee shall notify the City Engineer in writing of such abandonment within not less than -6-
156
twenty {20) days after the date upon which grantee shall have determined that the same is abandoned, and in the event grantee shall thereupon fail to remove such electric facilities at once, and the City Engineer shall determine that said electric facilities, if overhead or on the surface of the street, should be removed, or if underground cables in ducts and conduits should be disconnected or sealed off, grantee shall, within twenty {20) days after receipt of notice from the City Engineer so to do, commence and prosecute with diligence to completion the removal of such overhead or surface electric facilities, or the disconnection of such underground cables and the sealing off of such ducts and conduits, to the reasonable satisfaction of, and within a reasonable time as set by, the City Engineer, all at grantee's own cost and expense; provided that said grantee shall remove at its own cost and expense all abandoned underground electric facilities which by reason of deterioration cause a failure or subsidence of any street.

Section 12. If grantee shall fail, neglect or refuse to perform any of the work required by this franchise; and such failure, neglect or refusal results in a dangerous or defective condition of public property in the opinion of the City Engineer of City, and grantee shall not within twenty-four (24) hours after written or oral demand ~rom city for the ' performance of the work begin such work, or if such failure, neglect or refusal does not result in a dangerous or defective condition oT public property in the opinion of the City Engineer of city, and grantee shall not within thirty {30) days after written demand from city for the performance of the work begin such work, and in either case after such beginning shall not prosecute the same with due diligence to completion, city may perform or cause to have performed such work and the entire cost thereof shall be paid to city by grantee upon demand.

Section 13. In the event during the term of this franchise city shall provide by any lawful ordinance enacted pursuant to its police powers, and applicable alike to all privately owned public -7-
157
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/J.: • • • •
utilities and publicly owned public utilities if lawfully possible, using and occupying the streets of city, that all or any part of the work of restoring the portion o~ any street affected or damaged by any opening or excavation made, or work done by grantee in, upon, along.,. across., under or over said street pursuant to this franchise, shall be done and performed by city., and in the even~ city shall have done .and performed said work pursuant to the provisions of said ordinance, grantee., by the acceptance of this franchise, agrees to pay city the actual cost of said work prescribed in said ordinance. Said charges shall be paid by grantee to city at the time and in the manner provided in said ordinance.

Section 14. By its acceptance of this franchise, grantee agrees that in any proceeding of any character before any court or other public authority no greater value shall be placed upon this franchise than the actual cash paid to city therefor by grantee and the coat of necessary publication in procuring the same.

Section 15. This franchise is granted in lieu of all other franchises now owned by grantee for furnishing the same particular utility and service granted hereby within the limits of city as they now or may here~fter exist., and by its acceptance of this franchise grantee shall be deemed to have waived and abandoned all other such franchises then owned by -grantee for furnishing the particular utility and services within the limits of city as they now or may hereafter exist, provided that this Section shall not apply to any franchise that grantee may have by direct authority of the Constitution of the state of California or of the United States.

Section 16. By ita acceptance o~ this franchise, grantee does hereby covenant and agree to perform and be bound by each and all of the terms and conditions of the Charter of City and the provisions of all applicable ordinances as now in effect or as may hereafter be enacted or amended, insofar as the obligations imposed by such ordinances constitute a reasonable exercise of police powers, -8- 158
provided that thia provision shall not constitute a contractual obligation to comply with any terms of such ordinances in excess of such police powers.

Section 17. Grantee shall indemnify, save and hold harmless, city and all officers and employees thereof ·against and from all damages, judgments, decree·s, costs and expenditures which city or such officer or employee may suffer, or which may be recovered from, or obtained against city or such officer or employee, for or by reason of or growing out of or resulting from the exercising by grantee of any or all rights or privileges granted by this franchise, or by reason of any act or acts of grantee or its servants or agents, in exercising this franchise, or by failure of granuee or its servants or agents to perform the obligations of this franchise; provided, however, that grantee shall, with the consent of the insurance carrier, if any, covering city as to such liability, ·have the right. at its option to defend any suit that may be instituted against city or any officer or employee thereof, by reason of, or growing out of, or resulting from the exercise by grantee of any or all of the rights or privileges granted by this franchise, or by reason or any act or acta of grantee or ita servants or agents in the exercise of this franchise.

Section 18. This- franchise shall at all times be 'held anp exercised by grantee subject to the right of city to purchase by voluntary agreement with grantee or by condemnation, so much of the electric properties of grantee located within the limits of city as city may elect.

Section 19. If grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of this franchise and shall not within ten (10) days after written demand from city tor compliance begin the work of compliance, or after such beginning shall not prosecute the same with due diligence to completion, then city may declare said franchise forfeited and/or may sue grantee for damages for such non-compliance and/or may exercise any other rights -9- 159
or remedies provided by law. In the event of non-compliance by grantee with any of the conditions of this franchise, city may sue in its own name for forfeiture, damages, or other right or remedy pro• vided by law.

Section 20. No transfer, ass~gnment or lease of this franchise shall have any validity unless and until:
(a) Grantee shall have duly executed a good and sufficient ~nstrument making such transfer, assignment or lease, and a duplicate original thereof shall have been filed in the office of the City Clerk of city.
(b) An ordinance of city consenting to such transfer, assignment or lease shall have been duly adopted and become effective. (c) The transferee, assignee, lessee or vendee shall duly execute and file in the office of the City Clerk of city a good and sufficient instrument accepting such transfer, assignment or lease, assuming all the obligations of grantee under this franchise. (d) The transferee, assignae, lessee, or vendee shall duly execute and file in the office of such City Clerk a good and sufficient instrument surrendering to city all franchises, r.ights and privileges, which the transferee, assignee, lessee, or vendee would have been required to surrender under the provisions of this franchise, if such transferee~ assignee, lessee, or vendee had been the original grantee of this franchise.

Provided, however, that the terms of the foregoing clauses (a), (b), (c) and (d) of this section shall not apply to any mortgage or deed of trust made in good faith by grantee, or by any person, firm or corporation under a transfer, assignment or lease made in full accordapce with the provisions of this section; but the terms of said clauses (a), (c) and (d) shall apply and the terms of said clause (b) shall not apply to any buyer at a sale under any mortgage or deed of trust.

Section 21. This franchise is granted pursuant to the
Charter of the City of Richmond and in accordance with the terms of -10- 160
•
the Franchise Act of 1937 as it now exists.

Section 22. This ordinance shall become effective thirty (30) days after its final passage 1 unless suspended by a referendum peti~ion filed as provided by law.

Section 23. Grantee of said franchise shall pay to city a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting thereof; such payment to be made within thirty (30) days after city shall have furnished grantee with a written statement of such expenses.

Section 24. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk.

Section 25. The City Clerk shall cause this ordinance to be published once within fifteen (15) days after its passage in The Independent, a newspaper of general circulation published and circulated in city.

First read at a regular meeting of the City Council of city held on the 14th day of April, 1958, and finally adopted and ordered published at a regular meeting of said Council held on the 21st day of April, 1958 1 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST:

HARLAN J. HEYDON
Councilmen Erickson 1 Miller, Cannon,
Sheridan, Viano and Lyford.

Councilmen Vargas and Kenny.

Councilmen Bradley.

JAMES P. KENNY
Mayor of the city of Richmond
Clerk of the City of Richmond
-11- 161
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EXHIIITB
162
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EXI-I.iBIT B 163

EXHIBIT C

CITY OF RICHMOND

1. History of electric service:
. :·:<. ·'
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Pacific Gas and Electric Company (PG&E) and its predeoaors have supplied· all electric utility service in the territory now comprising the City of Richmond since the inception of service from a small steam-electric plant installed by the Richmond Light and Water Company in late 1901 or early 1902. In November, 1902 the properties of the Richmond Light and Water Company were purchased by the then newly organized Richmond Light and Power Company, which arranged in 1903 for the purchase of hydro-electric power from the Colgate-Oakland transmission line of Bay Counties Power Company. The steam plant was then dismantled.

In 1910 the Western States Gas and Electric Company pur- chased the electric system in Richmond and continued to operate there until 1927, when its properties and business, including those in Richmond, were sold to PG&E.

2. Source of electric supply:

The City of Richmond is served from a 4 kv and 12 kv
d.istribution network which provides the source of supply for Oakland, Berkeley, Richmond and other East Bay cities. This distribution network is energized at a number of substations supplied from PG&E's 60 kv, ·110 kv, 165 kv and 220 kv transmission networks, includ.ing Golden Gate Substation in El Cerrito, where stepdown transformation is supplied from .165 kv and 110 kv to 12 kv. The principal generating sources supply- ing the transmission networks are the hydro-electric plants on the Pit, Yuba, Feather., ·-American, Mokelumne and Stanislaus Rivers, and steam plants at Antioch, Pittsburg, Moss Land.ing, San Francisco and other localities. These transmission networks are. so integrated that power can be delivered in the Richmond system from nearly all of the available power sources.

3. Approximate mileage of electric line installed in the City of Richmond as of March 2, 1959:

Distribution
Transmission
Street L1ghting
Totals
Conductor
Miles
1,268.76

25.70 149.99
1,444.45
1 EXHIBIT C
Line
Miles
275.82

5.73 149.99
431.54
164
l '

4. Electric sales and revenue of customers served in
the City of Richmond:

Sales in kwh- 1959........... ..... 467,833,368
Revenue - 1959 ................ $6,279,737.25
Customers served as of December 1959 23,484

5. Franchise payment under Section 4 of Ordinance No. 1579:

Based on the aforementioned 1959 revenue in the amount
of $6,279,737. 25, it is estimated that future annual franchise payments under Section 4 of Ordinance No. 1579 should exceed $62,797.
2 165
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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF

CALIFORNIA
In the matter of the application of

PACIFIC GAS AND ELECTRIC COMPANY
for an order issuing a cert~ficate of
public convenience and necessity to
exercise the right, privilege and
franchise granted to applicant by Ordinance No. 1580 of the Council of the CITY OF RICHMOND, County of
Contra Costa, State of California.

Gas
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FEB 1 G 1960

APPLICATION
N0.'4 l 9 4 9 ..tf
TO THE HONORABLE, THE PUBLIC UTILITIES .COMMISSION
OF THE STATE OF CALIFORNIA:

PACIFIC GAS AND ELECTRIC COMPANY, a California
corporation (herein sometimes called applicant) seeks an order of the Commission under section 1002 of the Public Utilities Code of the State of California (California
Statutes 1951, Ch. 764) issuing to applicant a certificate declaring that public convenience and necessi~y require the exercise by applicant of the right, privilege and franchise granted to it by Ordinance No. 1580 of the Council of the City of Richmond, County of Contra Costa, State of California.

In support of its within petition, applicant avers
as follows:

APPLICANT
Applicant now is, and ever since the lOth day of
October 1905 has been, an operating public utility corpora- ~ tion, duly organized and ~~~sting under and by virtue of the laws of the State of California, engaged principally in the 1 166
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BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF

CALIFORNIA
In the matter of the application of

PACIFIC GAS AND ELECTRIC COMPANY
for an order issuing a cert~ficate of
public convenience and necessity to
exercise the right, privilege and
franchise granted to applicant b.y __ , Ordinance No. 1580 of the Counc-il of the CITY OF RICHMOND, County of
Contra Costa, State of California.

Gas
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FILED
FEB 1 G 1960

APPLICATION
N0.'41 9 49 .;<t
TO THE HONORABLE, THE PUBLIC UTILITIES .COMMISSION
OF THE STATE OF CALIFORNIA:

PACIFIC GAS AND ELECTRIC COMPANY, a California
corporation (herein sometimes called applicant) seeks an order of the Commission under Section 1002 of the Public Utilities Code of the State of California (California
Statutes 1951, Ch. 764) issuing to applicant a certificate declaring that public convenience and necessi~y require the exercise by applicant of the right, privilege and franchise granted to it by Ordinance No. 1580 of the Council of the City of Richmond, County of Contra Costa, State of California.

In support of its within petition; applicant avers
as follows:

APPLICANT
Applicant now is, and ever since the lOth day of
October 1905 has been, an ,operating public utility corporation, duly organized and e~isting under and by virtue of the laws of the State of California, engaged principally in the 1 167
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business of furnishing electric and gas service in
California. It also distributes and sells water in a number of cities and towns and certain rural areas, and produces and sells steam heat in certain parts or the cities of
San Francisco and Oakland,
Applicant's principa~ place of business is in the
City and County of san Francisco,- St ate of· California. Its Post Office address is 245 Market Street, San Francisco 6, California, and its attorneys in this matter are F.T. Searls, John c. Morrissey and John s. Cooper.

Communications regarding applicant in connection
with this application should be addressed to F. T. Searls, General Attorney of applicant, at the above mentioned address.

A certified copy of applicant's Articles of
I'ncorporation 1 as amended to the date of this petition, is of record before the Commission in connection with applicant's Application No. 39179 (Exhibit A) filed on June 251 1957, and said Articles are incorporated herein by reference. · II
ORDINANCE NO. 1580
On or about the 21st day of April, 19581 the
Council of the City of Richmond, County of Contra Costa, State of California, adopted an ordinance designated as Ordinance No. 1580, a true and correct copy whereof is
annexed hereto, marked Exhibit A1 and made a part hereof.

Ordinance No. ·l58o, by its terms and provisions,
grants to applicant, its successors and assigns, the
franchise (1) to use, for transmitting and distributing gas suited for lighting but for use by consumers for any and all lawful purposes other than lighting, all pipes and
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appurtenances which are now or may hereafter be lawfully placed and maintained in the streets within the City of Richmond, in its present incorporated form and in any later reorganized, consolidated, enlarged, or reincorporated
form, under that certain franchise of grantee acquired
pursuant to Section 19 of Article XI of the Constitution of the State of California, as said section existed prior to its amendment on October 10, 1911, (2) to install, maintain and use in said streets and places all pipes and appurtenances, whenever and wherever said constitutional franchise of grantee is not now nor shall hereafter be available
therefor, necessary to transmit and distribute gas suited for, and for use by consumers for, any or all lawful
purposes, and (3) to utilize said pipes and appurtenances in said public streets and places for transmitting gas for use outside the boundaries of the city for any and all
lawful purposes.

The franchise is by its terms indeterminate, that
is to say, it will endure in full force and effect until the same shall, with the consent of the Public Utilities Qommission of the State of California, be voluntarily
surrendered or abandoned by grantee, or until the state or some municipal or public corporation thereunto duly
authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all property actually used and useful in the exercise of said franchise and situate in the territorial limits of the state, municipal or public corporation purchasing or
condemning such property, or until said franchise shall be forfeited for noncompliance with its terms by the grantee. 3 169
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section 4 of Ordinance No. 1580 provides that the
grantee of said franchise shall pay to the City of Richmond annually, either two per cent (2%) of the gross ~~nual
receipts of the grantee arising from the use, operation or possession of the franchise, or a sum which SP~ll be equivalent to one per cent (1%) of the gross annual receipts derived by grantee from the sale-or- gas within the limits of said city, under said franchise and under said constitutional franchise, whichever is greaterj provided that the measure or amount of annual payments may be changed at the end of any twenty (20) year period of said franchise as set forth under Section 5 of the ordinance,
Section 17 of Ordinance No. 1580 provides that
the franchise shall at all times be held and exercised by grantee subject to the right of the City of Richmond to purchase by voluntary agreement with grantee, or by condemnation, so much of the gas properties of grantee located within the limits of the City of Richmond as said city may elect,
Ordinance No. 1580 provides that it shall become
effective thirty days after its final passage, unless
suspended by a referendum petition filed as provided by law, and upon written acceptance of the franchise theretmderby the grantee thereof. Ordinance No. 1580 was finally adopted and ordered published at a regular meeting of the Council held on the 21st day of April, 1958, The City Clerk of the City of Richmond caused the ordinance to be published in the manner and within the time specified thereinj the ordinance was not suspended by a referendum petition filed as provided by law, or otherwise, or at all; the applicant, on or about 4 170
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the 2lst. day of May, 1958, accepted the franchise granted by said ordinance; and the .franchise became effective on the 21st day of May, 1958.

The cost to applicant of acquiring the franchise
granted by Ordinance No. 1580 was the sum of Nine thousand three hundred fifty-three and 07/100 Dollars ($9,353.07), exclusive of the fee which must e ' paid -to the Public Utilities commission of the State of California under and pursuant to the provisions of Section 1904 (b) of the ~blic Utilities Code, namely, Fifty and 00/100 Dollars ($50.00).

This cost comprises:

Payment to the City of Richmond as
consideration for the grant of the franchise ••••••••••••••••• $ 9,205.24 Publication or Notice of Intention
to grant franchise •••••••••••••••
Publication of Ordinance No. 1580 •••••
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Applicant hereby stipulates and agrees that it, its
successors or assigns, will never claim before the
Commission or before any court or public body, a value
for said franchise in excess of the actual coat thereof.

III

The City of Richmond is located in the County of
Contra Costa, State or California. It was incorporated on 5 171
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August 16, 1905, and, according to the 1959 California Roster has a population of approximately 99,511-5. A map of the City of Richmond is annexed, marked Exhibit B, and made a part hereof.

Applicant now is, ·and it an~ its predecessors in
interest for more than 50 years last past have been,
furnishing and supplying gas to persons, fi~ms and corporations situate in the City of Richmond for light, heat and all other lawful purposes and uses. A statement giving a brief history of this gas service, the source of gas supply, the miles of gas mafn in the City of Richmond, the number of customers served, and other data pertinent to this
application is annexed, marked Exhibit C, and made a part hereof.

Applicant, upon ·obtaining a certificate of public
convenience and necessity from the Commission to exercise the right, privilege and franchise granted by Ordinance No, 1580 of the Council of the City of Richmond, will there·arter in the conduct of its gas business in the City of Richmond, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form, exercise the rights and privileges under the constitutional franchise and the franchise granted by Ordinance No. 1580.

Applicant believes and therefore alleges that it
will be for its best interest and the interest of its present and future gas customers in the City of Richmond that in the conduct of its gas business it exercise the rights and privileges of the perpetual constitutional franchise and the indeterminate franchise granted by said Ordinance No. 1580 for the reason that its gas franchise-rights in said 6 172
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city will thereby be definitely established for as long a time as applicant or its successors or assigns shall furnish gas service in said cityj further, applicant in continuing to qualify its outstanding bonds and effecting qualification of future issues of bonds as legal investments for savings banks and trust funds will not be under the necessity of applying for or obtaining from t oe-City of Richmond any new or additional gas franchises or franchise rights.

Applicant has issued and outstanding in the hands
of the public a large amount of First and Refunding Mortgage Bonds, all of which are now qualified as legal investments for savings banks in a number of the states of the United States. It is desirable that said bonds, together with
future issues of applicant's bonds, should qualify as legal investments for savings banks and trust funds in as many states of the United States as is possible to broaden the market for applicant's bonds and to enable applicant to obtain higher prices for its bonds. In other words, the matter of the legalization of applicant 1 s bonds. as savings bank and trust fund investments has a definite bearing upon the cost of money to applicant which in turn ultimately has an effect upon the rates charged for public utility services supplied. The exercise by applicant of the right, privilege and franchise granted by Ordinance No. 1580, together with other rights, privileges and franchises now possessed and exercised by applicant, and those obtained and hereafter to be obtained, is essential to enable applicant to qualify and/or continue qualification of its said bonds.
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PUBLIC UTILITY SERVICE
No person; firm or public or private corporation,
other than applicanti is now engaged in the public utility business of furnishing, distributing or selling gas for light1 heat, or other lawful purposes in or to the City of Richmond, or to the residents o:r-rnhabitants thereof or business enterprises situate therein, and said city and its residents, inhabitants and business enterprises are dependent upon applicant and the properties owned1 operated and maintained by it for gas service to meet th~ir respective needs and requirements 1 present and prospective.

WHEREFORE, PACIFIC GAS AND ELECTRIC COMPANY prays
that the Public Utilities Commission of the State of California duly give and make its order and decision granting and issuing to applicant a certificate declaring that the present and future public convenience and necessity require and will require 1 the exerc.ise by it of the right 1 privilege and franchise granted by Ordinance No. 158d of the Council of the City of Richmond, County of Contra Costa, State of California 1 all as provided for in Section 1002 of the Public Utilities Code of the State of California.

Dated at San Francisco 1 California, this 12th
day of February1 1960.

PACIFIC GAS AND ELECTRIC COMPANY
By L. HAROLD ANDERSON
Vice President and Assistant
F. T. SEARLS General Manager

JOHN C, MORRISSEY
JOHN s. COOPER
Attorneys for
Pacific Gas and Electric Company 245 Market Street
san Franeisco 6, California
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I, the undersigned, say:
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I am an officer of PACIFIC GAS AND ELECTRIC
COMPANY, the applicant herein, and I make this declaration as such on behalf of said applicant, I have read the
foregoing application and know its contents. It is true of my own knowledge, except as to those matters which are stated therein on information and belief and as to those matters I believe it to be true.

I declare under penalty of perJury that the
foregoing is true and correct.

Executed at San Francisco, California, on
February 12, 1960,
9 L. HAROLD ANDERSON
Vice President and Assistant
General Manager

PACIFIC GAS AND ELECTRIC COMPANY
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OliDINANCE NO. 1580

ORDINANCE GRANTING TO PACIFIC GAS AND ELECTRIC COMPANY, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE {1) TO USE, roR TRANS• MITTING AND DISTRIBUTING GAS SUITED FOl\ LIGHTING BUT FOR USE BY CONSUMERS FOR ANY AND ALL LAWFUL PURPOSES OTHER THAN LIGHTDiG, ALL PIPES AND APPURTENANCES WHICH ARE NOW OR MAY HEREA!i$R

BE LAWFULLY PLACED AND MAINTAINED IN THE PUBLIC STREETS AND

PLACES WITHIN THE CITY OF RICHMOND UNDER THAT CERTAIN FRANCHISE OF GRANTEE ACQUIRED PURSUANT TO SECTION 19 OF ARTICLE XI OF THE

CONSTITUTION OF THE STATE OF CALIFORNIA, AS SAID SECTION EXISTED PRIOR TO ITS AMENDMENT ON OCTOBER 10, 1911, AND (2) TO INSTALL,

MAINTAIN AND USE IN SAID PUBLIC STREETS AND PLACES ALL PI-PES AND APPURTENANCES WHENEVER AND -WHEREVER SAID CONS'nTUTIONAL

FRANCHISE IS NOT NOW NOR SHALL HEREAFTER BE AVAILABIE THEREFOR,

NECESSARY TO TRANSMIT AND DISTRIBUTE GAS SUITED FOR, AND FOR USE BY CONSUMERS FOR, ANY OR ALL LAWFUl. PURPOSES, AND (3) TO

UTILIZE SAID PIPES AND APPURTENANCES IN SAID PUBLIC STREETS AND PLACES FOR TRANSMITTING GAS FOR USE OUTSIDE THE BOUNDARmS

OF THE CITY FOR ANY AND ALL LAWFUL PURPOSES, AND PROVIDING THE TERMS AND CONDITIONS OF THE FRANCHISE SO GRANTED.

The Council of the CITY OF RICHMOND do ordain as follows:

Section 1. Whenever in this ordinance the words or phrases hereinafter in this section defined are used, th~y shall have t~e respective meanings assigned to them in the following definitions:
(a) The word "grantee 11 shall mean Pacific Gas and Electric Company, its lawfUl seccessors or assigns;
(b) The word 11 city" shall mean the City of Richmond, a municipal corp_oration of the State of California, in its present incorpo .. rated form or in any later reorganized, consolidated, enlarged or reincorporated form;
( o) The words "streets" shall mean the public streets, ways, ~:b~eys, and places as the same now or may hereafter extst within city, including state highways, nor or hereafter establi·shed within city, and freeways hereafter established within city;
.(d) The wo:td 11gas" shall mean natural -or artificial gas, or a mixture of natural and artificial gas; (e) The phrase 11pipes and appurtenances 11 shall mean pipes, pipe- -lines, mains, services, traps, vents, vaults, manholes, meters, gauges, regulators, valveG, conduits, appliances, attachments, appurtenances ,and, without limitation to the foregoing, any other property located or to be located in, upon, along, aoross~ under or over the streets of city, and used or ueetul in -1-
EXI-IIBIT A 176
transmitting and/or distributing gas;
(t') The phrase "install, maintain and use" shall mean to lay, construct, erect, install, operate, maintain, use, repair or replace.
(g) The phrase "constitutional franchise" shall mean the right acquired through acceptance by grantee or its predecessor in estate of the offer contained in the provisions of Section 19 of Article XI of the Constitution ~f~be State of California, as said section existed prior to its amendment on Octbber 10, 1911.

Section 2. The franchise (1) to use, for transmitting
and distributing gas suited for lighting but for use by consumers for any and all lawful purposes other than lighting, all pipes and appurtenances which are now or may hereafter be lawfully placed and maintained in the streets within city under the constitutional franchise of grantee, (2) to install, maintain and use in said streets and places all pipes and appurtenances, whenever and wherever the constitutional franchise of grantee is not now nor ,shall hereafter be available therefor, necessary to transmit and distr1~ bute gas suited for, and for use by consumers for, any or all lawful purposes, is hereby ·granted to Pacific Gas and Electric Company, its successors and assigns, and (3) ;to utilize said pipes and appurtenances in said public streets and places for transmitting gas for use outside the boundaries of the city for any and all lawful purposes, and providing the terms and conditions of the franchise so granted. Nothing contained in this franchise shall be deemed or construed as an acknowledgment, acceptance, agreement, or acquies~ cence by City that Grantee has the claimed constutional franchise.

This franchise is granted subject to the express proviso that al- · though Grantee claims said constitutional franchise, City does not · recognize or accep~ the validity of said claim.

Section 3. Said franchise shall be indeterminate, that is to say, said franchise shall endure in full force - and effect· until -2-
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the same shall, with the consent of the Public utilities Commission of the State of Califo~ia, be voluntarily surrendered or abandoned by grantee, or until the state or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary . agreement or shall condemn and take under the power of eminent domain, all property actually used and usefUl in the exercise of said franchise and situate in the territorial limits of the state, municipal or public corporation purchasing or condemning such property, or until said franchise shall be forfeited for noncompliance with its terms by grantee.
section 4. Grantee shall pay to City at the time of the grant of this franchise the sum of $9205.24 and shall thereafter pay to City annually, either two p~r cent (2%) of the gross annual receipts of grantee arising from the us~,operation or possession of the franchise granted hereby, or a sum which shall be equivalent to one per cent (1%) of the gross annual receipts derived by grantee from the sale of gas within the limits of City, under said franchise and under said constitutional franchise, whichever is the greater, provided that the measure or amount of annual payments may be changed as provided in Section 5 hereof.

This franchise shall be subject to such change in measure or amount of annual payments only if there has occured pne or more of the following:
a. A substantial change in economic conditions affecting franchise payments hereunder. -3-
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b. A method of distribution of gas other than that used at the time of the grant of this franchise, which changed method of distribution substantially increases or decreases the burden on the streets of City or substantially increases or decreases the costs and expenses to City.
c. A revised method of franchise payment in a substantial number of other cities served by Grantee.

If the parties cannot agree as to thejproposed change in the measure or amount of annual payments, or cannot agree as to whether or not any of the things set forth in subdivisions a to c, inclusive, have occurred or both, the matter or matters shall be submitted to a board of arbitration for determination thereon. $uch determination shall be in writing supported by a detailed written statement of the facta upon which the occurrence of the conditions a, b, or c are found to exist. Such determination by the boar4 shall be final and conclusive and binding on both parties. Such board of arbitration shall consist of three (3) members, one to be selected by City, one to be selected by Grantee, and one to be selected by the two so named by the parties.

Section 6. Grantee shall file with the Clerk ot City,
within four (4) months after the expiration of the first calendar year, or fractional part thereof, following the effective date hereof, and·within four (4) months after the expiration of each and every calendar year thereafter, a duly verified statement showing in detail the total gross rece.ipta of grantee during the preceding calendar year, or such fractional calendar year, from the sale of gas within the limits of City. Grantee shall pay to City within fifteen (15) days after the time for filing such statement, in lawful money of the United States_, the aforesaid percentage of its gross receipts for such calendar year, or such fractionax·year, covered by such statement. The City Manager of City or any person designated by him, at any reasonable time during business ho~s, may make examination at Grantee's of£1ce or offices of its books and -4-
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records~ germane to and for the purpose of verifying the data set forth in said statement. Any neglect, omission or refusal be grantee to file such verified statement, or to pay said percentage at the time and in the manner specified, shall be grounds for the declaration of a forfeiture of this franchise and of all rights of grantee hereunder.

Section 7. Grantee shall construct~ maintain and use all gas facilities in accordance and in conformity with all of the laws, ordinances, rules and regulations heretofore or hereafter adopted by City in the exercise of its police powers~ and as to state highways, subject to the provisions of general laws relating to the construction, maintenance or use of gas facilities therein. All work undertaken or performed and all gas facilities constructed, maintained or used under this franchise shall be of the standard and performed as required by law, by the lawful order of the Public Utilities Commission, end of any other governmental authority having jurisdiction in the premises.

Section 8. Grantee shall not construct, maintain or use any gas facilities under this franchise at any location until and unless such location shall have been approved therefor by the City Engineer in the reasonable exercise or the police powers of City, and all ~ork performed under this franchise shall be performed with the least possible hindrance to the use of the street for the purpose of travel or other public street purposes. All such work shall be prosecuted in good faith and with due diligence until completed.

Section 9. When any opening or excavation is made, or
work done by grantee in, upon, along, across~ under or over any street pursuant to this franchise, any portion or said street, or . . . .· . . . . . . of any public property of City lawfully iocated therein, affected or damaged thereby shall be restored as promptly as practicable by grantee, without coat to City, to as useful, safe, durable and good condition as existed prior to the making of such opening, or· such excavation, or the doing of such work, and the same shall be performed -5-
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in conformity with the provisions of all lawful ordinances of City, enacted under the police powers of City 1n force and effect at the time of the performance thereof, and shall be to the reasonable satisfaction of the City Engineer. By the acceptance of this franchise grantee agrees that after the work of restoring such portion of said street has been completed as provided in this paragraph, it will keep such portion of said street so restored, in as useful, safe, durable,and good condition as exist~d prior to making of such opening or excavation o~ the doing of such work, ordinary wear, tear and use excepted, as long as the City Engineer shall reasonable determine that such portion of said street is affected or damaged by such opening or excavation made, or such work done in, upon,. along, across, under or over said street by grantee.

Section 10, Upon abandonment of any of the gas facilities constructed, maintained or used hereunder, grantee shall notify the City Engineer in writing of such abandonment within not less than twenty (20) days after the date upon which g~antee shall have determined that the same is abandoned, and in the event grantee shall thereupon fail to remove such gas facilities at once, and the City Engineer shall determine that said gas facilities should be disconnected or sealed off, grantee shall, within twenty (20) days after receipt of notice from the City Engineer so to do, commence and prosecute with diligency to completion the disconnection and the sealing off of such gas facilities to the reasonable satisfaction of, and within a reasonable time as set by, the City Engineer, all at grantee's own cost and expense; provided that said grantee shall remove at its own cost and expense all abandoned gas facilities Whi~ by reason of deterioration cause a failure or subsidence of any street.

Section 11. If grantee shal fail, neglect or refuse to
perform any of the work required. by this franchise, and such failure, .neglect or refusal results in a dangerous or defective condition of public property in the opinion of the City Engineer of City, and -6-
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grantee shall not within twenty-four (24) hours after written or oral demand from City for the performance of the work begin such work, or if such failure, neglect or refusal does not result in a dangerous or defective condition of public property in the opinion of the City Engineer of City, and Grantee shall not within. thirty (30} days after written demand from City for the performance of the work begin such work, and in either case after such beginning shall not prosecute the same with due diligence to completion, Ci~ may perform or cause to have performed such work and the entire cost thereof shall be paid to City by Grantee upon demand.

Section 12. In the event during the term of this franchise City shall provide by any lawful ordinance enacted pursuant to its police powers, and applicable alike to all privately owned public utilities and publicly owned public utilities if lawfully po~sible, using and occupying the streets of City, that all or any part of the work of restoring the portion of any street affected or damaged by any opening or excavation made, or work done by gr.antee in, upon, along, across, under or over said street pursuant to this franchise, shall be done and performed by City, and in the event City shall have done and performed said work pursuant to the provisions of said ordinance, grantee, by the acceptance of this franchise, agrees to pay City the actual cost of said work prescribed in said ordinance.

Said charges shall be paid by Grantee to City at the time and in the manner provided in said ordinance.

Section 13. By its acceptance of ·this franchise, grantee agrees that in any proceeding of any character before any court or other public authority no greater value shall be placed upon this franchise than the actual cash paid to City therefor by Grantee and the cost of·necessary publication in procuring the same.

Section 14. This franchise is granted in lieu of all other franchises now owned by grantee for furnishing the same particular utility and service granted hereby within the limits of City as they now or may hereafter exist, and by its acceptance of this franchise -7-
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Grantee ·shall be deemed to have waived and abandoned all other such franchises then owned by grantee for furnishing the particular utility and services within the limits of City as they now or may hereafter exist, provided, that this section shall not apply to any franchise that grantee may have by direct authority of the Constitution of the State of California or of the United States. As long as the franchise granted hereby shall remain in force and effect all operation of Grantee's gas facilities on- tne public streets of City shall henceforth be subject hereto and shall be performed in accordance with the terms and conditions hereof and of said constitutional franchise, if any, and all payments shall be made as provided herein in respect to all said operations.

Section 15. By its acceptance of this franchise, grantee ~oea hereby co~enant and agree to perform and be bound by each and all of the terms and conditions of the Charter of City and the provisions of all applicable ordinances as now in effect or as may hereafter be enacted or amended insofar as the obligations imposed by such ordinances constitute a reasonable exercise of police powers, provided that this provision shall not constitute a contractual obligation to comply with any terms of such ordinances in excess of such police powers.

Section 16. Grantee shall indemnify, save and hold harmless, City and all officers and Employees thereof against and from all damages, judgments, decrees, costs and expenditures which City or such officer or employee may suffer, or which may be recovered from, or obtained against City or such officer or employee, for or by reason of or growing out of or resulting from the exercising by grantee of any or all rights or privileges granted by this franchise, or by reason of any act or acta of grantee or its servants or agents# in exercising this franchise, or by failure of grantee or its· servants or agents to perform the obligations of this franchise; provided, however, that grantee shall, with the consent of the insurance -8- 183
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carrier, if any, covering City as to such liability, have the right at its option to defend any suit that may be instituted against City or any officer or employee thereof, by reason of, or growing out of, or resulting from the exercise by Grantee or any or all of the rights or privileges granted by this franchise, or by reason of any act or acts of grantee or its servants or agents in the exercise of this franchise.

Section 17. This franchise shall at all times be held and exercised by grantee subject to the right of City to purchase by voluntary agreement with grantee, or by condemnation; so much of the gas properties of grantee located within the limits of City as City may elect.

Section 18. If grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of thi~ franchise and shall not within ten (10) days after written demand from City1br compli• ance begin the work of compliance, or after such beginning shall not prosecute the same with due diligence to completion, then City may declare said franchise forfeited and/or may sue grantee for damages for such non-compliance and/or may exercise any other rights or remedies provided by law. In the event of non-compliance by grantee with any of the conditions of this franchise, City may sue in its own name for forfeiture, damages, or other right or remedy provided by law.

Section 19. No transfer, assignment or lease of this
franchise shall have any validity unless and until:
(a) Grantee shall have duly executed a good and sufficient in-- strument making such transfer, assignment or lease, and a duplicate original thereof shall have been filed in the office of the City Clerk of City.
(b)_ An ordinance of City consenting to such transfer, assign• ment, or lease shall have been duly adopted and become effective. (c) The transferee, assignee, lessee or vendee shall duly execute and file in the office of the City Clerk of City a good and -9-
184
sufficient instrument accepting such transfer, assignment or lease, assuming all the obligations or g~antee under this franchise. (d) The transferee, assignee, lessee, or vendee shall duly execute and file in the office of such City Clerk a good and sufficient instrument surrendering to City all franchises, rights and privileges, which the transferee, assignee, lessee, or vendee would have been required to surrender under the p~ovisions or this franchise, if such transferee, assignee, le'ssee, or vendee had been the original grantee of this franchise.

Provided, however, that the terms of the foregoing clauses (ah (b), (c) and (d) of this Section shall not apply to any mortgage or deed of trust made in good faith by grantee, or by any person, firm or corporation under a transfer, assignment or lease made in full accordance with the provisions of this section; but the terms of said .clause.s (a), (c) and (d) shall apply and the terms of said clause (b) shall not apply to any buyer at a sale under any mortgage or deed of trust.

Section 20. This franchise is granted pursuant to the Charter( of the City of Richmond and in accordance with the ·terms of the . ~ Franchise Act of 1937 as it now exists.

Section 21. This ordinance shall become effective thirty days after its final passage, unless suspended by a referendum petition filed as provided by law.

Section 22. Grantee of said franchise shall pay to City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting thereof; such payment to be made within thirty days after city shall have furnished grantee with a written statement of such expenses.

Section 23. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk.

Section 24. The City Clerk shall cause this ordinance to be -10-
185
. ·: .,, .. :
published once within fifteen (15) days after its passage in The Independent, a newspaper of general· circulation published and circulated in city.

First read at a regul~ meeting· of the City Council of City held on the 14th day of April, 1958, and finally adopted and ordered published at a regular meeting of said Council held on the 21st day of April, 1958, by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST:·
Councilmen Erickson, Miller, Cannon, Sheridan
Viano and Lyford.

Councilmen Vargas and Kenny.

Councilmen Bradley.

JAMES P. KENNY
Mayor of the City of Richmond
HARLAN J • HEYDON
Clerk of th~ City of Richmond -
-11-
186
---·-------~--·---~·· - '-··--:. __ .... _. - - ···

EXHIBIT I
187
··-·· ; . .) ·-··. :;i ~ -· ..... . :~ ·.-.. ·. . :· . _... -

CITY OF RICHMOND

1. History of gas service:

Gas utility service first became available in the City of Richmond in 1906 when the Oakland Gas Light and Heat Company, a predecessor of Pacific Gas and Electr:J..c_._company (PG&E), constructed a gas main extension from University _and San Pablo Av~nues in Berkeley to First Street and MacDonald Avenue in Richmond. The gas supplied was manufactured at the Oakland Gas Plant.

On October 23, 1907, PG&E acquired the gas properties and business in the City or Richmond and since that time has been, and now is, supplying gas service therein.

In February 1930, PG&E introduced natural gas into the
Richmond gas system from a main extending from .Kettleman Hills to the Bay Area.

PG&E and its predecessors in interest engaged in and subsequently conducted the business or furnishing and supplying gas service in the City of Richmond under (a) the grant of power and rights conferred by their charters obtained under the laws of the State of California from time to time in force and effect; (b) the franchise granted by and under the provisions of Section 19 of Article XI of the Constitution of the State of California as said section existed prior· to its amendment on Octobe'r 10, 1911; (c) the franchises granted by the Board of TrUstees and/or Council or the City of Richmond to c. w. Waller under Ordinance No. 56, adopted June 25, 1906, and Pacific Gas an~ Electric Company under Ordinance No. 764, adopted August 17, 1936; and (d) the certificates or public convenienc£ and necessity granted to PG&E by the California Public Utilities Commission in Decision No. 23964, dated August 171 1931 (Application No. 16004 amended and supplemented), and Decision No. 30129, dated September 20, 1937 (Application No. 21051) to exercise the rights and privileges granted by Ordinances No. 56 and No. 764, respectively.

2. Source or gas supply:

The gas distribution syst~ in the City of Richmond is supplied from two sources. Transmission Main 105, which extends from Milpitas control Station to san Pablo Terminal Station near northern Richmond, supplies PG&E's East Bay Distribution system, including the major portion of_ Richmond, with 1100 Btu gas from out-of-state and San Joaquin Valley sources. The northern extremities or Richmond are supplied with 1000 Btu gas at San .Pablo Terminal Station from a connection with the Stanpac Main, which at that point carries gas from out-of-state and San Joaquin Valley sources, supplemented with gas from Rio Vista and other Central and Northern California gas fields. 1 RXI-ilBIT C 188
'•
.. -:-:· ,• .; .!,:•:· .• :·.·:.~: -<: .~~.··.;.. ~ ·-:·: : .. \ • ·· ~· ~ ---~·. ~---~----'--------'-"--~• ,' ·· ~.I ·' :;.~ 'o -'---'----- ' :.J. ·~

3. Approximate mileage of gas main installed in the City of Richmond as or March 2, 1959:

4. 5.

Distribution Main
Transmission Main
Total
Gas sales revenue and number of
Richmond:

Sales in Mer - 1959
Revenue - 1959
CUstomers served as
of December 1959
Franchise payment under Section
216.66 miles

6.13 miles
- 222.79 miles
customers served in
4,125,625.1
$2,539,_127 .44
22,383
the City or
4 of Ordinance No. 1580:

Based on the aforementioned 1959 revenue in the amount· of $2,539,127.44, it is estimated that future annual franchise payments under Section 4 of Ordinance No. 1580 should exceed $25,391. 2 189
1 DRAFT
ORDINANCE NO.

AN ORDINANCE OF THE CITY OF RICHMOND AMENDING ORDINANCE NO. 1579

WHICH GRANTED A FRANCHISE FOR THE TRANSMISSION AND DISTRIBUTION

OF ELECTRICITY WITHIN THE CITY OF RICHMOND TO PACIFIC GAS AND

ELECTRIC COMPANY TO REVISE THE FRANCHISE FEE AND ADD A FRANCHISE

FEE SURCHARGE

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF RICHMOND:

SECTION 1. Ordinance No. 1579, is amended to entirely replace Section 4 and add a new Section 4.1, to be numbered and entitled and to read as follows:

SECTION 4.

Grantee shall pay to City annually, either two per cent (2%) of the gross annual receipts of grantee arising from the use, operation or possession of the franchise granted hereby, or a sum which shall be equivalent to one per cent (1%) of the gross annual receipts derived by grantee from the sale of electricity within the limits of city under both the franchise granted hereby and said constitutional franchise, if any, whichever is the greater; provided that the measure or amount of annual payments may be changed as provided in Section 5 hereof.

SECTION 4.1
(a) This amending Ordinance is granted upon the express condition of, and in exchange for, the commitment by grantee that grantee, as consideration therefore and as compensation for use of the streets of the City, as herein authorized and permitted shall pay to the City during the term (in addition to the franchise fees specified in Section 4) an additional one and three tenths per cent (1.3%) of the gross annual receipts of grantee (the “Franchise Fee Surcharge”) from all electric utility customers served by grantee within the boundaries of the City. The customer collection shall be applied equally to grantee’s electric utility customers based on the consumption or use of electricity, including residential, commercial, industrial, government and wholesale customers, excluding those customers participating in grantee’s California Alternative Rates for Energy (CARE) Program or successor low-income assistance program.
(b) Prior to grantee’s payment to City of the Franchise Fee Surcharge, grantee shall receive approval from the California Public Utilities Commission (“Commission”) to collect the Franchise Fee Surcharge in accordance with Commission Decision 89-05-063, Guidelines for the Equitable Treatment of Revenue Producing Mechanisms Imposed by Local Government Entities on Public Utilities, 32 CPUC2d 60, May 26, 1989.
190
2 (c) The City shall cooperate with grantee in the preparation of any filings, data request responses or other approvals required for review of such approval. (d) If the Franchise Fee Surcharge is approved by the Commission, grantee shall implement customer billings of the Franchise Fee Surcharge as soon as reasonably possible thereafter.
(e) The Franchise Fee Surcharge shall be remitted to the City on an annual basis, on or before the fifteenth (15th) day from and after the time for filing of the duly verified statement showing in detail the gross receipts of grantee during the prior calendar year or fractional calendar year.
(f) In the event that any modification or repeal of the Franchise Fee Surcharge is issued by the CPUC, or in the event that the CPUC issues any order or decision that conflicts with grantee’s collection of the Franchise Fee Surcharge, or in the event that any changes in law or ruling in accordance with law negates the imposition or collection of the Franchise Fee Surcharge, then grantee shall reduce or eliminate collection of the Franchise Fee Surcharge in an amount that corresponds to the change resulting from the CPUC’s orders, actions, decisions, or as a result of any ruling or change in law. Grantee shall make a corresponding reduction in the Franchise Fee Surcharge paid to the City as part of franchise fee due in annual period thereafter.

SECTION 2. This Ordinance amending Ordinance No. 1579 shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk.

SECTION 3. All other terms, conditions, and provisions of Ordinance No. 1579, not amended herein shall remain in full force and effect.
191
3 PASSED FOR PUBLICATION of title this _____ day of ___________, 2023, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

Mayor
ATTEST:

City Clerk
192
4 ACCEPTANCE
AMENDMENT TO ORDINANCE NO. 1579
Pacific Gas and Electric Company hereby accepts and agrees to the Amendment to Ordinance No. 1579, and agrees to abide by and to be bound by all of its terms, conditions and provisions.

Dated: _________________________

PACIFIC GAS AND ELECTRIC

COMPANY
By_______________________________
Name:

Title:

Address:
193
1 DRAFT
ORDINANCE NO.

AN ORDINANCE OF THE CITY OF RICHMOND AMENDING ORDINANCE NO. 1580

WHICH GRANTED A FRANCHISE FOR THE TRANSMISSION AND DISTRIBUTION

OF GAS WITHIN THE CITY OF RICHMOND TO PACIFIC GAS AND ELECTRIC

COMPANY TO ADD A FRANCHISE FEE SURCHARGE

NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF RICHMOND:

SECTION 1. Ordinance No. 1580, is amended to add a new Section 4.1, to be numbered and entitled and to read as follows:

SECTION 4.1
(a) This amending Ordinance is granted upon the express condition of, and in exchange for, the commitment by grantee that grantee, as consideration therefore and as compensation for use of the streets of the City, as herein authorized and permitted shall pay to the City during the term (in addition to the franchise fees specified in Section 4) an additional one and three tenths per cent (1.3%) of the gross annual receipts of grantee (the “Franchise Fee Surcharge”) from all gas utility customers served by grantee within the boundaries of the City. The customer collection shall be applied equally to grantee’s gas utility customers based on the consumption or use of gas, including residential, commercial, industrial, government and wholesale customers, excluding those customers participating in grantee’s California Alternative Rates for Energy (CARE) Program or successor low-income assistance program. (b) Prior to grantee’s payment to City of the Franchise Fee Surcharge, grantee shall receive approval from the California Public Utilities Commission (“Commission”) to collect the Franchise Fee Surcharge in accordance with Commission Decision 89-05- 063, Guidelines for the Equitable Treatment of Revenue Producing Mechanisms Imposed by Local Government Entities on Public Utilities, 32 CPUC2d 60, May 26, 1989.
(c) The City shall cooperate with grantee in the preparation of any filings, data request responses or other approvals required for review of such approval. (d) If the Franchise Fee Surcharge is approved by the Commission, grantee shall implement customer billings of the Franchise Fee Surcharge as soon as reasonably possible thereafter.
(e) The Franchise Fee Surcharge shall be remitted to the City on an annual basis, on or before the fifteenth (15th) day from and after the time for filing of the duly verified statement showing in detail the gross receipts of grantee during the prior calendar year or fractional calendar year.
194
2 (f) In the event that any modification or repeal of the Franchise Fee Surcharge is issued by the CPUC, or in the event that the CPUC issues any order or decision that conflicts with grantee’s collection of the Franchise Fee Surcharge, or in the event that any changes in law or ruling in accordance with law negates the imposition or collection of the Franchise Fee Surcharge, then grantee shall reduce or eliminate collection of the Franchise Fee Surcharge in an amount that corresponds to the change resulting from the CPUC’s orders, actions, decisions, or as a result of any ruling or change in law.

Grantee shall make a corresponding reduction in the Franchise Fee Surcharge paid to the City as part of franchise fee due in annual period thereafter.

SECTION 2. This Ordinance amending Ordinance No. 1580 shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk.

SECTION 3. All other terms, conditions, and provisions of Ordinance No. 1580, not amended herein shall remain in full force and effect.

PASSED FOR PUBLICATION of title this _____ day of ___________, 2023, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

Mayor
ATTEST:

City Clerk
195
3 ACCEPTANCE
AMENDMENT TO ORDINANCE NO. 1580
Pacific Gas and Electric Company hereby accepts and agrees to the Amendment to Ordinance No. 1580, and agrees to abide by and to be bound by all of its terms, conditions and provisions.

Dated: _________________________

PACIFIC GAS AND ELECTRIC

COMPANY
By_______________________________
Name:

Title:

Address:
196

Page 1 of 3 ends

May 16, 2023
Community Development
DATE: May 16, 2023
TO: Mayor Martinez and Members of the City Council
FROM: Lina Velasco, Director of Community Development
Hector Rojas, Planning Manager
Subject: Contract with Nichols Consulting Engineers, CHTD (NCE) for on-call Professional Environmental Consulting Services Including CEQA and NEPA.

FINANCIAL IMPACT: The payment limit for this contract shall not exceed $984,296.48. The on-call services will be funded through applicant fees and/or grants. (15061219-400201)

PREVIOUS COUNCIL
ACTION:

May 21, 2019

STATEMENT OF THE
ISSUE:

The Planning Division established an on-call list for
professional environmental consulting services related to California Environmental Quality Act (CEQA) and the
National Environmental Policy Act (NEPA) evaluations for projects. The on-call list authorizes the City to enter into standing contracts with firms listed, including NCE. City staff executed a contract with NCE; however, it
inadvertently expired; therefore, City staff members are requesting authorization to enter into a new contract that would honor the same maximum budget and term
authorized by the City Council when the on-call list was established.

AGENDA
REPORT
197

Page 2 of 3 ends

May 16, 2023
APPROVE a contract with Nichols Consulting Engineers,
CHTD (NCE) for as needed professional environmental
consulting services related to California Environmental Quality Act (CEQA) and National Environmental Policy
Act (NEPA) compliance, for an amount not to exceed
$984,296.48, for a term beginning July 1, 2022, through June 30, 2024 – Community Development Department
(Lina Velasco 510-620-6841/Hector Rojas 510-620-
1220).

DISCUSSION:

In February 2019, the City issued a Request for Qualifications (RFQ) for as-needed professional California Environmental Quality Act (CEQA) and National Environmental Protection Act (NEPA) services.

The RFQ was posted on the City’s BidsOnline System and 1,049 vendors were notified.

Of the firms notified, 71 firms downloaded the RFQ. There were 17 total respondents to the RFQ. The RFQ responses were reviewed by a panel consisting of City staff from the Planning and Building Services Department, City Manager’s Office, and Successor Agency staff. Proposals were rated on the basis of technical qualifications and experience, qualifications and experience of key personnel and sub-consultants, service approach, project understanding, and fees. NCE was one of the 10 firms recommended for inclusion on the on-call list.

The on-call list approved by City Council via Resolution No. 30-19, adopted on May 21, 2019, authorizes the Planning Division to enter into standing contracts with firms listed, including NCE, for up to $1 million. City staff executed a contract with NCE; however, it inadvertently expired; therefore, City staff is requesting authorization to enter into a new contract that would be back dated to when it expired. The contract term would begin on July 1, 2022 through June 30, 2024. This is necessary since a work authorization was issued for a Public Works grant-funded project prior to the expiration of the contract and invoices need to be paid for that work. The new contract would also honor the same maximum budget and term, including exercising the two-year option, authorized by the City Council when the on-call list was established.

The original contract was for $1 million, and only $15,703.52 was expended; therefore, this new contract amount represents the remaining unused funds. The contract will be for an amount not-to-exceed $984,296.48, for a term ending June 30, 2024, which covers the remaining funds and term authorized for the on-call list. NCE is a Richmondbased firm and City staff desires to continue to work with NCE in completing NEPA and CEQA documents for projects. On-call service contracts will allow the City to provide necessary review and project evaluation services in an efficient and timely manner.

These on-call contracts reduce staff costs and eliminate the three-to-four-month process required to select consultants on a project-by-project basis. 198

Page 3 of 3 ends

May 16, 2023
DOCUMENTS ATTACHED:

Attachment 1 – NCE Contract
Attachment 2 – BidsOnLine Report
Attachment 3 – Rating Matrix
199

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.
200

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:

By:

City Clerk
(* The Corporation Chief Financial Officer,
Secretary or Assistant Secretary should sign below)
Approved as to form:

By:

By: Title:

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
201
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:
202
For the Contract between the City of
Richmond and
Nichols Consulting Engineers, CHTD
(NCE)
________________________________________________________________________________________________________________________________________________________________________________________ CEQA/NEPA Document Preparation
Complete Initial Studies, Negative Declarations, Mitigated Negative Declarations, Draft and Final Environmental Impact Reports and incorporate public comments regarding the potential impacts of projects on the natural and built environments, as required by the California Environmental Quality Act, complete Environmental assessments Environmental Impact Statements, and categorical exclusions pursuant to NEPA.

For each project that has been authorized by the City, the Consultant will provide information and/or attend meeting(s) requested by the Planning Department related to the project. The Consultant will be required to reaffirm that the technical studies provided by each development project applicant are accurate, and must be able to perform modeling such as for air quality, traffic, and greenhouse gas analyses. The Consultant must ensure that the environmental document that is prepared reflects the independent judgment of the City. The Consultant is responsible for printing and distributing the Initial Study, Negative Declaration, Mitigated Negative Declaration, Draft and Final EIR documents to the responsible and trustee agencies, including filing of the Notice of Completion and Notice of Determination with the State Clearinghouse. City will be responsible for filing with the Clerk of Contra Costa County unless otherwise specified in a work authorization.

Hourly Billing Rates
The rates for Nichols Consulting Engineers, CHTD (NCE) for this contract term for OnCall Professional CEQA and NEPA Consulting Services are as stated in “Proposed Fee Schedule” and will continue to be applied for the term of the contract. Subconsultant rates will be provided as part of scope of services, subject to review and approval by City.
203
SCHEDULE OF CHARGES 2023

PROFESSIONAL SERVICES
Principal...................................................................... $310/hour Associate .................................................................... $245/hour Senior II ..................................................................... $215/hour Senior I...................................................................... $205/hour Project II .................................................................... $195/hour Project I ..................................................................... $180/hour Staff II ....................................................................... $170/hour Staff I ........................................................................ $155/hour

TECHNICAL SERVICES
Senior Construction Manager* ........................ $160/($185-PW)/hour Construction Inspector* ................................ $140/($165-PW)/hour Senior Designer ........................................................... $170/hour CADD Designer ............................................................ $150/hour CADD Technician .......................................................... $130/hour Senior Field Scientist .................................................... $135/hour Field Scientist .............................................................. $115/hour Senior Technician* ....................................... $140/($165-PW)/hour Field/Engineering Technician* ......................... $115/($140-PW)hour Project Administrator .................................................... $130/hour Technical Editor ........................................................... $115/hour Clerical ....................................................................... $105/hour

CONTRACT LABOR
From time to time, NCE retains outside professional and technical labor on a temporary basis to meet peak workload demands. Such contract labor will be charged at regular Schedule charges.

LITIGATION SUPPORT
Engineer/Scientist ........................................................ $380/hour Court Appearances & Depositions ................................... $575/hour

EQUIPMENT
Plotter Usage ............................................. (separate fee schedule) Truck ........................................................................... $115/day Automobile ................................... IRS Standard Mileage Rate+15% Falling Weight Deflectometer Testing ............................. $4,000/Day Coring ....................................................................... $5,000/Day Environmental Equipment ............................ (separate fee schedule)

OUTSIDE SERVICES
Rental of equipment not ordinarily furnished by NCE and all other costs such as special printing, photographic work, travel by common carrier, subsistence, subcontractors, etc. ................................... cost + 15%

COMMUNICATION/

REPRODUCTION
In-house costs for postage, printing and copying .. .......................... .......................................................... project labor charges x 5% TERMS
Billings are payable upon presentation and are past due 30 days from invoice date. A finance charge of 1.5% per month, or the maximum amount allowable by law, will be charged on past-due accounts. NCE makes no warranty, either expressed or implied, as to its findings, recommendations, specifications, or professional advice except that they are prepared and issued in accordance with generally accepted professional practice.
*A surcharge of $25/hour applied for technicians and construction inspectors to comply with Prevailing Wage (PW) per requirements of California Department of Industrial Relations. 204
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 PAYMENT 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 Contractor 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 after 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. 205
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:

206
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, 207
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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. 208
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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 Contract's termination (or for any further period that is required by law) and until all Federal 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. 209
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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 210
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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 212
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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 213
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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 214
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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 215
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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.
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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 217
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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. 218
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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. 219
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):
220
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.
221
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services
Type 2 – Page 1 of 3
Revised: September 2011
In all instances where CONTRACTOR or its representatives will provide professional services (architects, engineers, construction management, counselors, medical professionals, hospitals, clinics, attorneys, consultants, accountants, etc.) to the City of Richmond (City), the City requires the following MINIMUM insurance requirements and limits.

CONTRACTOR shall procure and maintain for the duration of the contract, agreement, or other order for work, services or supplies, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the CONTRACTOR, its agents, representatives, employees or subcontractors. Maintenance of proper insurance coverage is a material element of the contract. Failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract.

CONTRACTOR agrees that in the event of loss due to any of the perils for which it has agreed to provide Commercial General Liability insurance, CONTRACTOR shall look solely to its insurance for recovery.

CONTRACTOR hereby grants to CITY, on behalf of any insurer providing Commercial General Liability insurance to either CONTRACTOR or CITY with respect to the services of CONSULTANT herein, a waiver of any right to subrogation which any such insurer of said CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance.

Original, signed certificates and original, separate policy endorsements, naming the City as an additional insured for general liability coverage, as well as a waiver of subrogation for Workers’ Compensation insurance, shall be received and approved by the City before any work may begin. However, failure to do so shall not operate as a waiver of these insurance requirements.

City reserves the right to modify or require additional coverages for specific risk exposures depending on scope of CONTRACTORS work.

Minimum coverage is detailed below. The policy limits of coverage shall be made available to the full limits of the policy. The minimum limits stated herein shall not serve to reduce the policy limits of coverage of CONTRACTOR.

Minimum Scope of Insurance – the following forms shall be provided and coverage shall be at least as broad as the following:

1. Insurance Services Office Commercial General Liability coverage (ISO Occurrence Form CG 0001), and including coverage for bodily and personal injury, property damage, and products and completed operations (if applicable).

2. Insurance Services Office Automobile Liability coverage (ISO Form CA 0001, Code 1, Any Auto).

3. Original and Separate Additional Insured Endorsement for General Liability (ISO Form CG 20 10 11/85 or its equivalent) with primary and non-contributory language.

4. Workers’ Compensation Insurance as required by the State of California including Employer’s Liability coverage.

5. Original and Separate Waiver of Subrogation for Workers’ Compensation insurance.

6. Professional Liability or Errors & Omissions Liability Insurance appropriate to the CONTRACTOR’s profession (if required.)
Required Coverage Minimum Limits
Workers’ Compensation and
Employers’ Liability
Statutory limits as required by the State of California including $1 million Employers’ Liability per accident, per employee for bodily injury or disease.

If CONTRACTOR is self-insured, provide a certificate of Permission to SelfInsure, signed by the California Department of Industrial Relations and SelfInsurance. If contractor is a sole proprietor (has no employees) than contractor must sign “Contractor Release of Liability” found at:
http://www.ci.richmond.ca.us/index.aspx?nid=61.

General Liability
(primary and excess limits
combined)
$2,000,000 per occurrence for bodily injury, personal injury and property damage. If the policy includes a general aggregate, either the general aggregate shall apply separately to this project, service or location or the minimum required aggregate limit shall be twice the per occurrence limit ($4 million aggregate limit).

Policy shall be endorsed to name the City of Richmond as an additional insured per the conditions detailed below.
222
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services
Type 2 – Page 2 of 3
Revised: September 2011
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage.

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

Professional Liability or Errors &
Omissions Liability –
Required for all professionals
including architects, engineers,
consultants, construction
management, counselors, medical
professionals, hospitals, clinics,
attorneys and accountants, & other
consultants as may be required by
the City.

Required Policy Conditions
Additional Insured Endorsement Applicable to General Liability coverage.

The City of Richmond, its officers, officials, employees, agents and volunteers are to be named as additional insureds for all liability arising out of the operations by or on behalf of the named insured including bodily injury, deaths and property damage or destruction arising in any respect directly or indirectly in the performance of this contract.

ISO form CG 20 10 (11/85) or its equivalent is required. If the Contractor is supplying their product or providing a service then the endorsement must not exclude products and completed operations coverage. If it does, then CG 20 37 (10/01) is also required.

SAMPLE Endorsements can be found at
http://www.ci.richmond.ca.us/index.aspx?nid=61.

Primary and Noncontributory The contractor’s insurance coverage must be primary coverage as it pertains to the City, its officers, officials, employees, agents and volunteers. Any insurance or self insurance maintained by the City is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance.

Waiver of Subrogation
Endorsement Form
Contractor’s insurer will provide a Waiver of Subrogation in favor of the City for Workers’ Compensation Insurance during the life of this contract.

SAMPLE Endorsements can be found at
http://www.ci.richmond.ca.us/index.aspx?nid=61.

Deductibles and Self-Insured
Retentions
Any deductible or self-insured retention must be declared to and approved by the City. At the option of the City either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City or the CONTRACTOR shall procure a financial guarantee in an amount equal to the deductible or self-insured retention guaranteeing payment of losses and related investigations, claims administration and defense expenses.

Contractor is responsible for satisfaction of the deductible and/or self-insured retention for each loss.

A. M. Best Rating A:VII or Better. If the A.M. Best Rating falls below the required rating, CONTRACTOR must replace coverage immediately and provide notice to City.

Umbrella/Excess Liability Policies
If an Umbrella or Excess Liability Policy is used to meet the liability limits, coverage shall be as broad as specified for underlying coverage’s and cover those insured in the underlying policies. 223
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements - Type 2:

Professional Services
Type 2 – Page 3 of 3
Revised: September 2011
Claims-Made Policies
If any insurance policy is written on a claims-made form: 1) the retroactive date must be shown, and must be before the date of the contract or the beginning of contract work. 2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective date, the Contractor must purchase an extended period coverage for a minimum of five (5) years after completion of contract work.

Subcontractors
CONTRACTOR shall include all subcontractors as insured under its policies or shall furnish to the City for review and approval, separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein.

CONTRACTOR agrees to defend and indemnify the City of Richmond for any damage resulting to it from failure of either CONTRACTOR or any subcontractor to take out or maintain the required insurance policies. The fact that insurance is obtained by CONTRACTOR, and/or CONTRACTOR’s subcontractors, will not be deemed to release or diminish the liability of CONTRACTOR, including, without limitation, liability under the indemnity provisions of this contract. Damages recoverable by CITY from CONTRACTOR or any third party will not be limited by the amount of the required insurance coverage.

Verification of Coverage
All original certificates and endorsements shall be received and approved by the City before work may begin.

The City of Richmond reserves the right to require complete, certified copies of all required insurance policies including endorsements affecting the coverage at any time.

Original insurance certificates and required policy endorsements shall be mailed or delivered to the Designated Project Manager for the City of Richmond.

Insurance certificates and endorsements may be faxed to the Designated Project Manger. However, CONTRACTOR must mail the original certificates and endorsements to Designated Project Manager once faxed.

Continuous Coverage
CONTRACTOR shall maintain the required insurance for the life of the contract. Should the CONTRACTOR cease to have insurance as required during this time, all work by the CONTRACTOR pursuant to this agreement shall cease until insurance acceptable to the City is provided. In the event that CONTRACTOR fails to comply with the City’s insurance requirements, the City may take such action as it deems necessary to protect the City’s interests. Such action may include but is not limited to termination of the contract, withholding of payments, or other actions as the City deems appropriate.

If services or the scope of work extend beyond the expiration dates of the required insurance policies initially approved by the City, CONTRACTOR must provide updated certificates and endorsements indicating that the required coverage, terms and conditions are still in place. Renewal certificates and updated endorsements shall be mailed to the Designated Project Manager.

Cancellation
CONTRACTOR shall ensure that coverage shall not be cancelled, reduced or otherwise materially changed except after thirty (30) days’ prior written notice has been given to the City.

Reporting Requirements
Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers.

Consistent with Public Policy
The insuring provisions, insofar as they may be judged to be against public policy shall be void and unenforceable only to the minimum extent necessary so that the remaining terms and provisions herein may be consistent with public policy and thus enforceable.
224
ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED?

INSR ADDL SUBR

LTR INSD WVD
PRODUCER CONTACT NAME: PHONE FAX
(A/C, No, Ext): (A/C, No): E-MAIL ADDRESS:

INSURER A :

INSURED INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

POLICY NUMBER POLICY EFF POLICY EXP TYPE OF INSURANCE (MM/DD/YYYY) (MM/DD/YYYY) LIMITS

AUTOMOBILE LIABILITY

UMBRELLA LIAB

EXCESS LIAB WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

AUTHORIZED REPRESENTATIVE
EACH OCCURRENCE $ DAMAGE TO RENTED CLAIMS-MADE OCCUR PREMISES (Ea occurrence) $ MED EXP (Any one person) $
PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ PRO- POLICY JECT LOC PRODUCTS - COMP/OP AGG OTHER: $ COMBINED SINGLE LIMIT
(Ea accident) $ ANY AUTO BODILY INJURY (Per person) $ OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accident) $ HIRED NON-OWNED PROPERTY DAMAGE AUTOS ONLY AUTOS ONLY (Per accident) $
$ OCCUR EACH OCCURRENCE CLAIMS-MADE AGGREGATE $
DED RETENTION $ PER OTH- STATUTE ER
E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $
If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT INSURER(S) AFFORDING COVERAGE NAIC #

COMMERCIAL GENERAL LIABILITY
Y / N
N / A
(Mandatory in NH)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

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

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

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

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

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

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

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

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
$
$
$
$
$
The ACORD name and logo are registered marks of ACORD
5/5/2022
License # 0E67768
(858) 754-0063 50233 (619) 574-6288
13056
Nichols Consulting Engineers, CHTD
1885 S. Arlington Ave., #111
Reno, NV 89509
22829
A 1,000,000
X X PSB0003222 5/17/2022 5/17/2023 1,000,000
Cont Liab/Sev of Int 10,000
1,000,000
2,000,000
2,000,000
Ded 0
A 1,000,000
X X PSA0001184 5/17/2022 5/17/2023
Comp.: $500 Coll.: $500
A 5,000,000
PSE0003030 5/17/2022 5/17/2023 5,000,000
0 A
X PSW0001955 5/17/2022 5/17/2023 1,000,000
1,000,000
1,000,000
B Prof. / Poll. Liab. USF00807822 5/17/2022 Per Claim 5,000,000 B Ded.: $50k Per Claim USF00807822 5/17/2022 5/17/2023 Aggregate 5,000,000 Re: All Operations
The City of Richmond, its officers, officials, employees, agents and volunteers are Additional Insureds with respect to General and Auto Liability per the attached endorsements as required by written contract. Insurance is Primary and Non-Contributory. Waiver of Subrogation applies to General Liability, Auto Liability and Workers' Compensation.
30 Days Notice of Cancellation with 10 Days Notice for Non-Payment of Premium in accordance with the policy provisions.

City of Richmond
450 Civic Center Plaza
Richmond, CA 94804
NICHCON-02 MCCOWANA
IOA Insurance Services
4370 La Jolla Village Drive
Suite 600
San Diego, CA 92122
Erica Wilson
[email protected]
RLI Insurance Company
Interstate Fire & Casualty Company
X
5/17/2023
X
X
X
X
X
X X
X
X
X
225
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Attachment 2
229
230
Developer 1 2 3 4 5 Total Rank
ESA 91 100 94 94 89 468 1
Analytical environmental Services
(AES) 90 100 91 93 90 464 2
Stantec 85 100 94 93 91 463 3
NCE 83 100 90 95 88 456 4
Placeworks 82 97 96 91 90 456 5
LSA 80 100 90 94 90 454 6
FirstCarbon Solutions 86 91 91 90 91 449 7
Urban Planning Parners 82 97 95 91 84 449 8
Leann Taagepera Environmental
Planning
77 97 91 90 91 446 9
Rincon Consultants, Inc. 83 97 93 92 77 442 10
Douglas Herring & Associates 82 92 92 90 84 440 11
De Novo Planning Group 82 94 93 90 80 439 12
Michael Baker International 75 92 84 83 92 426 13
TRC Solutions 74 97 82 81 87 421 14
Horizons Water and Environmen 72 85 85 84 89 415 15
Pacific Legacy 70 85 83 81 75 394 16

DECISION MATRIX
Request for Qualifications ‐ Environmental Consulting Services April 9, 2019
231

Page 1 of 2 ends

May 16, 2023
Community Development
DATE: May 16, 2023
TO: Mayor Martinez and Members of the City Council
FROM: Lina Velasco, Director of Community Development
Jesus M. Morales, Housing Manager
SUBJECT: Contract Amendment No. 1 with David Paul Rosen and Associates
FINANCIAL IMPACT: The proposed contract will not have an impact on the General Fund as the cost associated with preparing
financial and economic analyses related to real property negotiations will be charged to developers to facilitate and fast track applicant proforma review and evaluation.

For City-proposed projects that require proforma review or preparation, Planning professional services funds will be used as budgeted in account string 15061219-
400201.

PREVIOUS COUNCIL
ACTION:

November 1, 2022 – Original On-call contract with DRA
was approved.

STATEMENT OF THE
ISSUE:

City staff is requesting authorization to execute an
amendment no. 1 to the contract with David Paul Rosen
& Associates for an amount not to exceed $150,000 to
continue to support the City in financial and economic
analyses related to real property negotiations.

RECOMMENDED ACTION: APPROVE amendment No. 1 to the contract with David Paul Rosen & Associates to increase the contract limit by $150,000, for a total contract amount not to exceed
$200,000, to continue to support the City in financial and economic analyses related to real property negotiations and project evaluation, with a term extending through
October 31, 2024 – Community Development
Department (Lina Velasco/Jesus M. Morales 510-620-
6706).

AGENDA
REPORT
232

Page 2 of 2 ends

May 16, 2023
DISCUSSION:

On November 1, 2022, the City Council approved an on-call contract with three financial consulting firms, including David Paul Rosen & Associates (DRA). The original contract was $50,000 and additional funds are needed to provide capacity to take on additional projects, and to complete on-going projects. Specifically, DRA is currently working on the review of the proformas for the Metrowalk Phase II project and 12th and Macdonald, and assisting the City in the review of the budget/profroma for a potential partnership grant for a Project Homekey application. Additional funds are needed to complete the evaluation of the above projects. City staff is also requesting additional contract capacity for future projects that may include affordable units and related funding sources.

On September 8, 2022, the Community Development Department solicited a Request for Quotes (RFQ) for On-Call Financial and Economic Analyses Services. The RFQ was sent to three vendors via email as an informal solicitation. The RFQ responses were due on September 16, 2022. There were three respondents to the RFQ: Land Econ Group (LEG), David Paul Rosen & Associates (DRA), and CSG Advisors (CSG).

The City Council approved on-call contracts in an amount not-to-exceed $50,000 over a one-year term, from November 1, 2022 through October 31, 2023, with an option to extend the contracts for one year.

On-call financial services contracts assist the City in completing timely review of complex financial development proformas. In addition, having on-call contracts will save City staff time needed to bid work on a project-by-project basis. This is critical in completing timely real property negotiations. The proposed amendment No. 1 would add an additional $150,000 to the contract, for a total not to exceed amount of $200,000, for a term ending October 31, 2024.

DOCUMENTS ATTACHED:

Attachment 1 – Contract Amendment No. 1
Attachment 2 – Original Contract
233

CITY OF RICHMOND

CONTRACT AMENDMENT
Department: Project Manager:

Project Manager E-mail: Project Manager Phone No:

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

Description of Services:

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

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

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

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

Company Name:

Street Address:

City, State, Zip Code:

Contact Person:

Telephone: Email:

Business License No: / Expiration Date:

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

234
Contract Amendment/EJ/TE 09-26-07

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

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

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

CITY OF RICHMOND, CALIFORNIA
a municipal corporation
By _______________________
Title:

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

By _______________________
City Clerk
Approved as to form:

By_______________________
City Attorney
List of Attachments:

1. Amendment Provisions

2. Updated Insurance Certificates
CONTRACTOR:
______________________________
(*The Corporation Chairperson of the Board, President or Vice-President should sign on the line below.)
By____________________________
Title:________________________
(*The Corporation Chief Financial Officer, Secretary or Assistant Secretary should sign on the line below.)
By:___________________________
Title:________________________
(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a
corporation or nonprofit organization, this
Contract (1) should be signed by the
Chairperson of the Board, President or
Vice-President and the Chief Financial
Officer, Secretary or Assistant Secretary; (2)
should have both signatures conform to
designated representative groups pursuant
to Corporations Code Section 313.
235
Contract Amendment between the City of Richmond and
Amendment No. P.O./Contract No.

AMENDMENT PROVISIONS (TERM, PAYMENT LIMIT AND SERVICE PLAN)

1. Paragraph 2 (Term) of the Original Contract is hereby amended to extend the Contract term. Paragraph 2 of the Original Contract is amended to read as follows:
"2. Term. The effective date of this Contract is
____________________________________________________________ (Insert original contract commencement date)
and it terminates
___________________________________________________.
(Insert new contract termination date)
unless sooner terminated as provided herein."

2. Paragraph 3 (Payment Limit) of the Original Contract is hereby amended to increase the payment limit by $ . Paragraph 3 of the Original Contract is amended to read as follows:
"3. Payment Limit. City's total payments to Contractor under this Contract shall not exceed $ including expenses."
“The City of Richmond shall not pay for services that exceed the Contract Payment Limit without the prior written approval of the City Manager if the total Contract amount does not exceed $10,000 or without the prior approval of the City Council if the total Contract amount is over $10,000.”

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

Contract Amendment/EJ/TE 9-26-07
236
Contract Amendment between the City of Richmond and
Amendment No. P.O./Contract No.

AMENDMENT PROVISIONS (SERVICE PLAN)
(CONTRACTOR’S OBLIGATION’S)
The Service Plan (Exhibit A) of the Original Contract is hereby amended to include the following tasks and/or services:

Contract Amendment/EJ/TE 9-26-07
237
Contract Amendment between the City of Richmond and
Amendment No. P.O./Contract No.

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