July 11, 2023
City Council
DATE: July 11, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Vice Mayor McLaughlin
Subject:
Authorize Vice Mayor McLaughlin to cast a vote for the
Public Bank East Bay (PBEB) CEO to be paid for by the
Friends of PBEB
FINANCIAL IMPACT: N/A
PREVIOUS COUNCIL
ACTION:
On April 5, 2022, the City Council approved Resolution
48-22. On April 19, 2022, former Mayor Butt, with the
concurrence of the City Council, appointed
Councilmember McLaughlin to serve as Richmond’s
initial representative for the PBEB. On February 21,
2023, the City Council approved Resolution 21-23.
STATEMENT OF THE
ISSUE:
The Friends of the Public Bank East Bay has raised
money to hire a part-time CEO for an initial period of 1 to 3 years. As Richmond’s representative to the public
bank, Vice Mayor McLaughlin is seeking authorization
from the City Council to move forward with casting a vote for this CEO position, alongside the votes of other Public Bank East Bay Board Candidates, including City
representatives from Berkeley and Oakland.
RECOMMENDED ACTION: AUTHORIZE Vice Mayor McLaughlin to cast a vote as part of the Public Bank East Bay Board Candidates on
the selection of a CEO to help further guide the Public Bank East Bay through the business plan and charter
application process; The position will initially be as a part- time contracted position for 1-3 years paid for the Friends of the Public Bank East Bay. Vice Mayor McLaughlin
(510-620-6636)
AGENDA
REPORT
July 11, 2023
DISCUSSION:
On April 5, 2022, the City Council received a presentation from the Friends of the East Bay Public Bank and adopted Resolution 48-22 that approved the Public Bank East Bay (PBEB) Viability Study and approved Richmond as a founding member of PBEB. On April 19, 2022, former Mayor Butt appointed, with the concurrence of the Council, Councilmember McLaughlin as Richmond’s representative to the Public Bank.
More recently on Feb. 21, 2023, the City Council received an updated presentation from the Friends of Public Bank East Bay and adopted Resolution 21-23 authorizing the City Manager and City Attorney (or their designees) to work through next steps along the pathway to forming the Public Bank East Bay with the Cities of Berkeley and Oakland.
Since then, plans have been moving forward. Gary Findley (the experienced banking attorney hired by the Friends of PBEB who has written business plans for hundreds of California community banks) has been working on the initial draft of the business plan, which soon will be brought to the three cities’ Agency Working Group for review.
We have also been reaching out to build relationships with local financial institutions such as CDFIs (Community Development Financial Institutions), Community Banks, Credit Unions and other community-oriented financial institutions, since a part of the PBEB’s mission is to partner with these local institutions to leverage money for projects in our communities.
Finally, we are proud to announce that Friends of PBEB is now in a position to hire a founding Chief Executive Officer to further guide the Public Bank East Bay through the business plan and charter application process. Review the background on this position and the job qualifications. Given the initial startup role for the CEO during the regulatory approval phase, the position is expected to be a part-time (20 to 30 hours per week) contractor position for 1 to 3 years. With that structure, we anticipate a monthly retainer of $14,000 to $16,000. The founding CEO will transition into the full-time CEO role once the Public Bank East Bay has received the required regulatory approval and capitalization by the founding agencies. Our recruiting partner, Marcum Nonprofit & Social Sector, was hired several months ago and their search has yielded many excellent candidates.
The selected CEO will initially be hired and paid for by the Friends of the Public Bank East Bay and is expected to have a significant presence in the East Bay region. Once the Public Bank East Bay has been established, employment will shift to that entity.
Currently, the Search Committee of the Friends of the Public Bank East Bay and the Public Bank East Bay Board Candidates have narrowed down the list of applicants to a short list of highly qualified candidates for the position of CEO.
July 11, 2023
The next step is for a vote of the entire PBEB Board Candidates and Friends of the PBEB board to finalize the hiring of the CEO from that short list.
The recommended action for this item is to: AUTHORIZE Vice Mayor McLaughlin to cast a vote as part of the Public Bank East Bay Board Candidates on the selection of a CEO to help further guide the Public Bank East Bay through the business plan and charter application process. This position will initially be as a part-time contracted position for 1-3 years paid for the Friends of the Public Bank East Bay.
DOCUMENTS ATTACHED:
Attachment 1 – Job Announcement