CALIFORNIA STATE AUDITOR
Report 2021-806 \ November 2022
LOCAL HIGH RISK
applicable under the city's policy and should present a proposal to the city council to apply those funds to the tmst fund.
The City's FY2021-22 OPEB Policy requires a transfer of 50 percent of the operating surplus and one-time revenues into the OPEB tmst ("trust") after meeting the minimum required General Fund reserve level. In the past, the City did not meet G) the minimum reserve policy targets, hence no additional contribution other than the Actuarially Dete1mined Contributions (ADC) were made into the tmst. The City is estimating to contribute $6.1 million at the end ofFY21-22 into the trust. It is also important to note that the City's OPEB Unfunded Actuarial Liability has been decreasing and the funded status has improved in recent years. The Actuarial repo1t as of June 30, 2022, represents a decrease of $19.3 million in unfunded liability from the prior year.
6. To mitigate the costs of increasing salaries, the city should perfo1m a workforce analysis by June 2024. Based on the results of the analysis, the city council should consider eliminating vacant positions that it deems no longer necessary. Additionally, the city should assess its need for each vacant position before it seeks to fill the positions and eliminate any positions that it does not need.
The City has recently completed a Classification and Compensation Study and in the process, several classifications have become obsolete and are proposed to be eliminated. The City staff will continue to conduct vacancy analysis and consider eliminating vacant positions, wherever possible, to achieve fiscal sustainability while maintaining service levels to the commmtlty. Currently, the City is taking a measured approach in filling the vacant positions.
7. To ensure compliance with federal requirements, Richmond should dedicate the resources necessary to provide records needed for an independent auditor to complete all outstanding single audits of the housing authority within the next fiscal year. To comply with existing legal obligations, Richmond should make available sufficient resources to enable the Housing authority to resolve all past due requirements of the recovery agreement and to meet the remaining deadlines in a timely manner by January 2024.
The City has a long history of supporting programs to assist in developing affordable housing, including providing support to the Richmond Housing Authority (RHA) to help address its outstanding obligations. Unlike former times, RHA has an Executive Director, Senior Development Project Manager, Senior Prope1ty Manager, Building Maintenance Supervisor, Administrative Aide, Senior Resident Housing Manager, and Resident Housing Manager positions.
Additionally, the City supp01ts RHA through a Senior Accountant and Accountant I housed in the City's Finance Department. The Finance Department and the City also support RHA through all forms of administrative support such as, financial management, Information Technology, Human Resources, and the City Manager's Office.
8. To define Richmond's responsibility related to the housing authority, Richmond should inimediately enter into a written agreement with the housing authority defining each 1043
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CALIFORNIA STATE AUDITOR
November 2022 I Report 2021-806
LOCAL HIGH RISK
October 21, 2022
Page4
entity's financial responsibilities and draft plans to resolve past tax liabilities and prevent unnecessary new liabilities.
The City staff is in the process of creating an agreement defining financial and tax responsibilities between the two entities, the City of Riclm1ond and the Richmond Housing Authority. The City Council provides policy direction to balance the needs of all the entities which rely upon its resources.
9. To ensure that Richmond is receiving the best value when entering into contracts, city staff should immediately begin documenting that they are following the contracting requirements in the city's municipal code and contracting policies for all contracts.
The City staff is analyzing and updating current procedures based upon best practices and will follow the contracting requirements in Richmond's Municipal Code and contracting policies.
10. To reduce potential errors and omissions by city staff members when contracting for goods and services, by Januaiy 2023 Richmond should require its finance department to create a comprehensive checklist of required documentation for contract files that other departments must follow when conducting procurements .
The City staff has commensed compilation of a comprehensive checklist that will be utilized in reviewing and approving all contracts to ensure that proper procurement procedures and adherance to all applicable City policies ai·e followed.
11. To ensure that city fees appropriately cover the cost of providing services, by June 2023, Richmond should determine a cost-effective frequency for updating its fee schedule to reflect all allowable costs, including adjusting fees for inflation as appropriate. Richmond should then revise its municipal code as necessary.
The City staff will update the Richmond Municipal Code to indicate that the Master Fee Schedule should be updated annually and as-needed (rather than quarterly), at least by the Employment Cost Index (ECI). A comprehensive fee study shall be done every three to five years.
Again, we appreciate the efforts you have taken to assist in improving the City's financial operations. The City staff are moving expeditiously to address your recommendations and we expect you will find continuing progress in the future. cc: Mayor Butt and Members of the Richmond City Council David J. Aleshire, City Attorney (Paiiner, Aleshire & Wynder, LLP ) Nickie Mastay, Deputy City Manager
Delmy Cuellar, Director of Finance
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CALIFORNIA STATE AUDITOR
Report 2021-806 J November 2022
LOCAL HIGH RISK
Comment
CALIFORNIA STATE AUDITOR'S COMMENT ON THE RESPONSE FROM
THE CITY OF RICHMOND
To provide clarity and perspective, we are commenting on Richmond's response to the audit. The number below corresponds to the number we have placed in the margin of Richmond's response.
The city's assertion that, in the past, it .did not meet minimum reserve policy targets does not align with its financial reports and policies. Richmond's fiscal year 2020-21 reserve policy identified several types of funds that the city considered part of its reserve. Based on this policy, the city exceeded its fiscal year 2020-21 reserve target and may have been able to contribute up to $6.5 million to its OPEB trust fund. However, as we indicate on page 19,-city staff did not conduct a thorough analysis of whether-under its then existing policy these funds should have been placed in its OPEB trust fund and thus the city may have missed an opportunity to shore up this area of financial risk.
G)
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March 5, 2024
Public Works
DATE: March 5, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, Director of Public Works
Tawfic Halaby, Deputy Director of Public Works for
Operations & Maintenance
Subject:
Richmond Parks Assessment of Soccer Fields
FINANCIAL IMPACT: There is no impact to the General Fund. The recommendation is to utilize $4,200,000 in American
Rescue Plan Act funds to implement soccer field and
other park-related improvements to City parks.
PREVIOUS COUNCIL
ACTION:
At the July 11, 2023 City Council Meeting, staff was
directed to assess which City parks could accommodate
new soccer fields.
At the October 3, 2023 City Council Meeting, the City’s consultant provided a preliminary presentation on
opportunities for soccer fields and other amenities at
various city parks.
At the December 5, 2023 City Council Meeting, City
Council allocated $4 ,200,000 in American Rescue Plan
Act funds for soccer field s, parks, trails, and public restrooms, with fund obligation required by December 31, 2024.
STATEMENT OF THE
ISSUE:
City Council directed staff to conduct a study of existing soccer field needs and existing soccer field amenities, and to develop a plan to upgrade amenities to meet the
current community needs. Consultant CSW|ST2
prepared a draft report for City Council’s review and
feedback.
AGENDA
REPORT
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March 5, 2024
RECOMMENDED ACTION:
RECEIVE a presentation on the draft Soccer Field and
Park Amenities Assessment prepared by CSW|ST2 –
Public Works (Daniel Chavarria/Tawfic Halaby 510-620-
5482).
DISCUSSION:
At the July 11, 2023, City Council Meeting, staff was directed to assess City parks and to accommodate new soccer fields, including recommendations on which parks should receive priority for the installation of soccer fields and other amenities. City staff assigned this task to City’s on-call consultant CSW/Stuber-Stroeh Engineering Group, Inc (CSW|ST2), with Marcia D. Vallier as Senior Project Manager.
At the October 3, 202,3 City Council Meeting, CSW|ST2 provided a preliminary presentation on opportunities for soccer fields and other amenities at various City parks, which included estimated costs. City Council directed staff to prioritize and estimate costs for the development or renovation of those fields and return to City Council with recommendations. The attached report is the culmination of the recommendations to address the City’s soccer field shortage in the short-, mid- and long-term as well as other additional proposed amenities. Recommendations are based on level of service deficits, changing demographics, the 2010 and 2019 Park Reports, input from the soccer community, as well as conversations with staff and the baseball, softball and football clubs and leagues. The recommendations not only focus on soccer, but include upgrades that benefit all field sports, and upgrade courts, play areas, and restrooms.
Recommendations for addressing Richmond’s soccer field deficit prioritize under-served City Council districts where the opportunities are greatest to build on existing funds and design work to improve or create fields for competition and practice play. These are also the districts with the highest dense populations, and where demand for soccer fields is highest. Since Richmond is a highly built-out urban area, with limited space for new facilities, addressing the City’s field deficit will require a two-fold approach by expanding the useability of existing fields and upgrading sites with competition fields as well as adding additional amenities within the City’s parks.
At the December 5, 2023, City Council Meeting, City Council allocated $4,200,000 in American Rescue Plan Act (ARPA) funds for amenities including soccer fields, parks, 1047
March 5, 2024
trails, and public restrooms, with fund obligation by December 31, 2024. ARPA funds must be spent by December 31, 2026.
CSW|ST2 started collecting information and putting together initial designs. The draft Soccer Field and Park Amenities Assessment includes recommendations for additional maintenance funding and equipment. CSW|ST2 will also incorporate new information from recent joint-use conversations among Contra Costa County, West Contra Costa Unified School District, and the City.
Short-term recommendations establish a strategy to take advantage of City Council’s allocation of $4,200,000 in Fiscal Year (FY) 2023/24 American Rescue Plan Act (ARPA) funds in locations where the soccer community already plays – Wendell Park (City Council District 1), Shields-Reid Park (City Council District 2), and Martin Luther King, Jr. Park (City Council District 3). Design will be completed in FY 2023/24 and construction is estimated to completed in early FY 2024/25. Additional work on the short-term parks may be completed if additional funding is available in FY 2024/25.
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JOINT USE AGREEMENTS: The second short-term recommendation is the work with West Contra Costa Unified School District (WCCUSD) on joint use agreements. The soccer community is mobilizing county-wide to obtain joint use of the schools and form partnerships between Contra Costa County, cities in West County and WCCUSD to reduce sports facilities costs and increase access for residents. Supervisor John Gioia and the County Supervisors have allocated funds from the County’s health tax to offset rental costs and increase access to youth sports and funding annually through Measure X to support County unincorporated area parks that might include soccer venues.
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MAINTENANCE: Lastly, another short-term recommendation is to increase the funding for maintenance of the parks. This is a larger discussion, but would help alleviate the lack of fields due to poor condition from overuse or lack of adequate maintenance.
The mid- and long-term goals outlined in the draft Report depend on receiving grant funding or possibly a local or West County bond measure.
All projects will continue to engage community members, park users, sports teams, neighbors, and additional key stakeholders such as neighborhood councils to help shape the future park designs and gain support for the proposed short-, medium-, and long-term recommendations for field development.
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