Richmond City Council
June 4, 2024

PLEASE NOTE: HYBRID MEETING FORMAT

AGENDA(s):

- REGULAR MEETING OF THE RICHMOND CITY COUNCIL

Tuesday, June 4, 2024, 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, Councilmember District 5
Claudia Jimenez, Vice Mayor, District 6
NOTICE: MASKS ARE STRONGLY ENCOURAGED!!

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Link to City Council Agendas/Packets
http://www.ci.richmond.ca.us/4157/City-ofRichmond-Council-Meetings

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HOW TO WATCH THE MEETING FROM HOME:

KCRT – Comcast Channel 28 or AT&T Uverse Channel 991.

Livestream online at http://www.ci.richmond.ca.us/3178/KCRT-Live2.

HOW TO SUBMIT PUBLIC COMMENTS:

In Person: Anyone who desires to address the City Council on items appearing on the agenda, including Open Forum, must complete and file a pink speaker’s card with the City Clerk prior to the City Council’s consideration of the item. Once the City Clerk has announced the item, no person shall be permitted to speak on the item other than those persons who have submitted their names to the City Clerk. Each speaker will be allowed up to TWO (2) MINUTES to address the City Council on NON-PUBLIC HEARING items listed on the agenda. Speakers are allowed up to THREE (3) minutes on PUBLIC HEARING items.

Via Zoom: Anyone who desires to address the City Council on items appearing on the agenda, including Open Forum, must raise their hand once public comment is open. The public speakers attending in person will be called first, followed by Zoom participants. Only those public speakers that have their hand raised once the speakers are called will be recognized.

Open Session and City Council: Please click the link below to join the webinar:
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International numbers available: https://zoom.us/u/aehrwCgISx

To comment by video conference: click on the Participants button at the bottom of your screen and select the “Raise Your Hand” button to request to speak when Public Comment is being asked for. When called upon, press the unmute button. After the allotted time, you will then be re-muted. **

To comment by phone: you will be prompted to “Raise Your Hand” by pressing “*9” to request to speak when Public Comment is asked for. When called upon, you will be asked to unmuted by pressing *6. After the allotted time, you will then be re-muted. Instructions of how to raise your hand by phone are available at:
https://support.zoom.us/hc/en-us/articles/201362663 -Joining-a-meeting-by-phone. **

**The mayor will announce the agenda item number and open public comment when appropriate.

6-4-24 cc mtg.
2 Via mail: received by 1:00 p.m. the day of the meeting, sent to 450 Civic Center Plaza, 3rd Floor, Office of the Clerk, Richmond, CA 94804.

Via eComments: eComments are available once an agenda is published. Locate the meeting in "upcoming meetings" and click the comment bubble icon. Click on the item you wish to comment on. eComments can be submitted when the agenda is published and until the conclusion of public comments for the agenda item. Email your comment to [email protected] should you have difficulty submitting an eComment during a meeting.

Via email: to [email protected] by 1:00 p.m. the day of the meeting.

Emails MUST contain in the subject line 1) public comments – Open Session prior to Closed Session; 2) public comments – Open Forum; or 3) public comments agenda item #__ [include the agenda item number].

Properly labeled public comments will be considered a public record, put into the official meeting record, available after the meeting as supplemental materials, and will be posted as an attachment to the meeting minutes when the minutes are posted: http://www.ci.richmond.ca.us/Archive.aspx?AMID=31

The City cannot guarantee that its network and/or the site will be uninterrupted. To ensure that the City Council receives your comments, you are strongly encouraged to submit your comments in writing in advance of the meeting.

Procedures for Removing Items from the Consent Calendar: Members of the public who request to remove an item from the consent calendar must first discuss the item with a staff member by phone or a back-and- forth email discussion, and state the name of the staff member when requesting removal of the item from the consent calendar (by 2 p.m. the day of the meeting).

Any member of the City Council who would like to remove an item from the consent calendar must notify the appropriate staff person and the City Clerk’s Office prior to the meeting. Although members of the City Council are encouraged to ask questions and share concerns with staff ahead of the meeting, they are not required to do so.

The Clerk’s Office must be informed of any requests to remove items from the Consent Calendar. Items removed from the Consent Calendar shall be placed at the end of the agenda for consideration.

CONDUCT AT MEETINGS: Richmond City Council meetings are limited public forums during which the City strives to provide an open, safe atmosphere and promote robust public debate. Members of the public, however, must comply with state law, as well as the City’s laws and procedures and may not actually disrupt the orderly conduct of these meetings. The public, for example, may not shout or use amplifying devices, must submit comment cards and speak during their allotted time, may not create a physical disturbance, may not speak on matters unrelated to issues within the jurisdiction of the City Council or the agenda item at hand, and may not cause immediate threats to public safety.

Click here for City Harassment Policy

Accessibility for Individuals with Disabilities: Upon request, the City will provide for written agenda materials in appropriate alternative formats, or disability-related modification or accommodation, including auxiliary 6-4-24 cc mtg.
3 aids or services and sign language interpreters, to enable individuals with disabilities to participate in and provide comments at/related to public meetings. Please submit a request, including your name, phone number and/or email address, and a description of the modification, accommodation, auxiliary aid, service or alternative format requested at least two days before the meeting. Requests should be emailed to [email protected] or submitted by phone at 510-620-6513, ext. 9, or 510-620-6509.

Requests made by mail to City Clerk’s Office, City Council meeting, 450 Civic Center Plaza, Richmond, CA 94804 must be received at least two days before the meeting. Requests will be granted whenever possible and resolved in favor of accessibility.

Unless otherwise noted in an agenda description, all actions taken by the Council include a determination that CEQA does not apply (i.e., the action is not a project and therefore exempt from CEQA).

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
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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
•
Hanlees Hilltop Buick et al. v. City of Richmond•
C.2 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.3 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
D. PUBLIC COMMENT BEFORE CLOSED SESSION (limited to items on the Closed Session agenda only)
E. ADJOURN TO CLOSED SESSION
________________________________________________________ 6-4-24 cc mtg.
5 F. REGULAR MEETING OF THE RICHMOND CITY COUNCIL
6:30 p.m.

G. PLEDGE OF ALLEGIANCE
H. ROLL CALL
I. STATEMENT OF CONFLICT OF INTEREST
J. AGENDA REVIEW
K. REPORT FROM THE CITY ATTORNEY OF FINAL DECISIONS MADE DURING

CLOSED SESSION
L. REPORT FROM THE CITY MANAGER (public comment allowed under Open Forum) L.1 NEW EMPLOYEE REPORT - 1st Tuesday
M. 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)
N. 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)
O. 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.)
O.1 City Clerk's Office
O.1.a Resolution calling and giving notice of municipal election on November 5, 2024
11 ADOPT a resolution: (1) Calling and Giving Notice of the holding of a Municipal Election to be held on Tuesday, November 5, 2024, for the election of certain officers as required by the provisions of the Charter of the City of Richmond; (2) Requesting the Board of Supervisors of Contra Costa County to consolidate the Municipal Election with the Statewide General Election; and (3) Adopting regulations for candidates pertaining to the candidates’ statements submitted to the voters, cost of the candidates’ statements and other fees, word limit for candidates’ statements; and actions to be taken for a tie vote – City Clerk’s Office (Pamela Christian 510-620-6513).
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6 O.2 City Council
O.2.a Observe National Gun Violence Awareness Day and Request for Funding Allocation
17 PROCLAMATION observing National Gun Violence Awareness Day; and DIRECT staff to APPROPRIATE a $5,000 budget from the general fund to be used in support of activities including but not limited to a community vigil, educational outreach, and a public gathering to foster community solidarity against gun violence – Councilmember Bana (510-672-3490) and Mayor Eduardo Martinez (510-620-6503).

O.3 Economic Development
O.3.a Collection of Assessments for Downtown Richmond Property and Business Improvement District (DRPBID)
21 ADOPT a resolution allowing the City of Richmond to levy the property tax rolls of property owners subject to assessment under the Downtown Richmond Property and Business Improvement District (DRPBID) on the annual 2024-2025 property tax rolls – Economic Development Department (Lizeht Zepeda 510-620-6653/Antonio Banuelos 510-620-6741/Kyle Lam 510-620-6802/Nannette Beacham 510-620-1306).

O.4 Finance Department
O.4.a Update Guiding Fiscal Policy and Purchasing Policy 91 REVIEW and ADOPT updates to the Guiding Fiscal Policy and Purchasing Policy – Finance Department (Shasa Curl/ Nickie Mastay 510-620-6609/ Andrea Miller 510-620-6790/ Mubeen Qader 510-412- 2077/ Antonio Banuelos 510-620-6741).

O.4.b Master Fee Schedule Update 136
ADOPT an ordinance (second reading) adjusting the dollar amount for proposed Developer Impact Fees using the two-and four-year phase in approach and other new user fees for services – Finance Department (Andrea Miller/Mubeen Qader/Antonio Banuelos 510- 620-6741).

O.4.c State Audit Supplemental Update 318
RECEIVE a report regarding the City’s Corrective Action Plan update to State Audit No. 2021-806 – City Manager’s Office/Finance Department (Andrea Miller 510-620-6790/Mubeen Qader 510-412- 2077)
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7 O.5 Human Resources
O.5.a Amend the Salary Schedule 449
ADOPT a resolution amending the salary schedule to add the senior permit technician classification, and to retitle and amend the salary for plan check engineer – Human Resources Department (Sharrone Taylor/Nickie Mastay 510-620-6602).

O.6 Library and Community Services
O.6.a Accept and Appropriate Pacific Library Partnership Grant for Link+ 454 ADOPT a resolution to ACCEPT and APPOPRIATE into the Fiscal Year 2023-2024 Library budget a Pacific Library Partnership grant for Link+ in the amount of $8,130 – Community Services Department (LaShonda White 510-620-6828/Kate Eppler 510-620-5452).

O.6.b ARPA-Funded Opportunities for Soccer Fields and Other Improvements at Shields Reid Park, Martin Luther King, Jr. Park, and Wendell Park.
460
RECEIVE an update related to soccer field and park improvements; APPROVE the recommended park design concepts at Shields Reid Park, Martin Luther King, Jr. Park, and Wendell Park, including the installation of artificial turf at Shields Reid Park; and AUTHORIZE the Director of Public Works to award the park project bid and execute the contract with the lowest responsive/responsible bidder for the stated park projects provided that the award is within the Council- approved budget – City Manager’s Office/Community Services Department/Public Works Department (Shasa Curl 510-620- 6512/LaShonda White 510-620-6828/Daniel Chavarria 510-620- 5478).

O.7 Police Department
O.7.a Air Purifying Respirators for Richmond Police Department Special Weapons and Tactics Team Members
488
APPROVE the purchase of air purifying respirators from LC Action Police Supply for an amount not to exceed $38,338.31 – Police Department (Chief Bisa French 510-621-1802).

O.8 Public Works
O.8.a Abatement Report from the Public Works Director 495 RECEIVE a written abatement report from the public works director - Public Works Department (Daniel Chavarria 510-620-5478). 6-4-24 cc mtg.
8 O.8.b Contract with Delta Grinding, Inc. for As-Needed Pavement Grinding and Sweeping Services
515
APPROVE a contract with Delta Grinding, Inc. in the amount of $1,500,000 for as-needed grinder and sweeper services, for a three- year period beginning July 1, 2024, and ending June 30, 2027, with two additional one-year options to extend for an amount of $500,000 per extension year – Public Works Department (Daniel Chavarria 510-620-5478/Rob Chelemedos 510-231-3007).

O.8.c Contract Amendment No. 1 with Verizon Connect NWF, Inc. 594 APPROVE a first contract amendment to the standard contract with Verizon Connect NWF, Inc., extending the term to June 30, 2026, and increasing the payment limit by $120,000, for an aggregate amount not to exceed $270,000 – Public Works Department (Daniel Chavarria 510-620-5478/Dee Karnes 510-231-3044).

P. BUDGET SESSION
P.1 Approval of Engineer’s Report and Intent to Levy Assessments for Hilltop Landscape Maintenance District Fiscal Year 2024-2025
634
DISCUSS and ADOPT a resolution approving the Engineer’s Report for Fiscal Year 2024-2025 for the Hilltop Landscape Maintenance District; DECLARE the City Council’s intention to levy and collect annual assessments; and SET a public hearing about the proposed increased assessment for June 25, 2024, at 6:30 PM in the City Council Chambers at 440 Civic Center Plaza in the City of Richmond – Public Works Department (Daniel Chavarria 510-620-5478/ Robert Armijo 510-620-5477).

P.2 Approval of Engineer’s Report and Intent to Levy Assessments for Marina Bay Landscaping and Lighting Maintenance District (LLMD) for Fiscal Year 2024- 2025
706
DISCUSS and ADOPT a resolution approving the Engineer's Report for Fiscal Year 2024-2025 for the Marina Bay Landscaping and Lighting Maintenance District (LLMD); DECLARE the City Council’s intention to levy and collect annual assessments; and SET a public hearing about the proposed increased assessments for June 25, 2024, at 6:30 PM in City Council Chambers at 440 Civic Center Plaza in the City of Richmond – Public Works Department (Daniel Chavarria 510-620-5478/ Robert Armijo 510-620-5477).

P.3 Review and Direction on Budget Checklist and changes to Proposed Budget 800 REVIEW the budget checklist for the Fiscal Year 2024-25 Proposed Operating Budget and Fiscal Year 2024-29 Five-Year Capital Improvement Plan; and PROVIDE DIRECTION to staff prior to final budget adoption – City Manager’s Office/Finance Department (Nickie Mastay 510-620-6609/Andrea Miller 510- 620-6790/Mubeen Qader 510-412-2077).
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9 Q. NEW BUSINESS
Q.1 Final Written Report of the Raftelis Workforce Analysis and PowerPoint Presentation
1114
RECEIVE the final written report from Raftelis Financial Consultants regarding their workforce analysis – City Manager’s Office/Human Resources Department (Nickie Mastay/Sharrone Taylor 510-620-6602). This item was continued from the May 28, 2024, meeting.

Q.2 Traffic Calming Division within the Department of Public Works 1236 RECEIVE a presentation outlining the proposal to create a Traffic Calming Division within the Department of Public Works to address street, pedestrian, and bicycle safety concerns in the City; and DIRECT the allocation of funds to hire 2 Full-Time Equivalents (FTEs) in the Department of Public Works to manage the street calming, complete streets in an integrated and environmentally sustainable manner – Vice Mayor Claudia Jimenez (510-620- 6565), Councilmembers Gayle McLaughlin (510-620-6636) and Doria Robinson (510-620-6568).

R. ADJOURNMENT
________________________
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10

June 4, 2024
DocID #20593v1

City Clerk's Office

DATE: June 4, 2024
TO: Mayor Martinez and Members of the City Council
FROM:

Pamela Christian, City Clerk

Subject:

Resolution calling and giving notice of municipal election on November 5, 2024
FINANCIAL IMPACT: As of February 20, 2023, the total number of registered voters in the City of Richmond is 58,319. For the
November 8, 2022, municipal election, the cost estimate to conduct the Council component of the November
election is between $2.50 - $3.00 per registered voter.

Accordingly, the estimated cost to hold the Council
election is $185,000. There is also the possibility of one or more municipal initiatives being placed on the ballot for the November election. The major cost driver for
initiatives is the number of pages to be printed in the Sample Ballot Booklet. It is estimated that a measure
with 10 pages would cost between $8,000 – $10,000.

The City Clerk’s Office budget (account string 01141013 – 400294) was increased to cover the cost of the
election.

PREVIOUS COUNCIL
ACTION:

Previous even years

STATEMENT OF THE
ISSUE:

The full four-year terms for three councilmembers will
expire on January 7, 2025. Pursuant to Section 3 of
Article III of the City Charter, an election must be held on the first Tuesday in November of each even-numbered
year to fill the expired seats.

AGENDA
REPORT
11

June 4, 2024
DocID #20593v1
RECOMMENDED ACTION:

ADOPT a resolution: (1) Calling and Giving Notice of the holding of a Municipal Election to be held on Tuesday,
November 5, 2024, for the election of certain officers as required by the provisions of the Charter of the City of Richmond; (2) Requesting the Board of Supervisors of
Contra Costa County to consolidate the Municipal
Election with the Statewide General Election; and (3)
Adopting regulations for candidates pertaining to the
candidates’ statements submitted to the voters, cost of the candidates’ statements and other fees, word limit for candidates’ statements; and actions to be taken for a tie vote – City Clerk’s Office (Pamela Christian 510-620-
6513).

DISCUSSION:

The full four-year terms for three councilmembers will expire on January 7, 2025.

Pursuant to Section 3 of Article III of the City Charter, an election must be held on the first Tuesday in November of each even-numbered year to fill the expired seats.

A resolution to call and hold the November election must be filed with the County Elections Department no later than July 3, 2024.

DOCUMENTS ATTACHED:

Attachment 1 – Resolution
12

Reso. No. XX-24

RESOLUTION NO. XX-24

RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND,

CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A MUNICIPAL ELECTION TO BE HELD ON TUESDAY , NOVEMBER 5, 2024, FOR

THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISION S OF THE CHARTER OF SAID CITY; REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF CONTRA COSTA TO CONSOLIDATE THE

MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON NOVEMBER 5, 20 24, AND A DOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES ’ STATEMENTS SUBMITTED TO THE VOTERS, COSTS OF CANDIDATES ’ STATEMENTS AND OTHER FEES, WORD LIMIT FOR CANDIDATE S’

STATEMENTS, AND ACTION TO BE TAKEN IN CASE OF A TIE VOTE

WHEREAS, the Council of the City of Richmond California, has ordered as follows:

1. Pursuant to the requirements of the Charter of the City of Richmond, there is called and ordered to be held in the City of Richmond, California, on Tuesday, November 5, 2024, a Municipal Election for the purpose of electing three members of the City Council for District 1, District 5, and District 6, the full term of four years.

2. That the polls for the election shall be open at 7:00 a.m. of the day of the election and shall remain open continuously from that time until 8:00 p.m. of the same day when the polls shall be closed.

3. That the notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to sign and publish said Notice of Election, in time, form, and manner as required by law in the EAST BAY TIMES, a newspaper of general circulation circulated within the City of Richmond, in accordance with the provisions of Sections 12101 of the Elections Code of the State of California.

4. The City Council directs the City Clerk to file a certified copy of this Resolution with the Registrar of Voters; and,

WHEREAS, it is desirable that the Municipal Election be consolidated with the Statewide General Election and other elections which may be held in whole or in part of the territory of the City, as provided in Section 10400 of the Elections Code of the State of California and that within the City, the precincts, polling places, and election officers be the same.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Richmond does resolve, declare, determine and order as follows:

1. Pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Contra Costa is hereby requested to consent and agree to the consolidation of a Municipal Election with the Statewide General Election and other elections held whole or in part of the territory of the City on Tuesday, November 5, 2024, for the purpose of electing three Members of the City Council for the full term of four years.

2. That the County Election Department is authorized to canvass the returns of the Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

3. That the City of Richmond recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

4. That the City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the County Election Department of the County of Contra Costa.
13

Reso. No. XX-24

5. That the boundaries of the City of Richmond have not changed since the November 2022 General Municipal Election.

IT IS FURTHER RESOLVED AND ORDERED THAT, pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at the November 5, 2024, Municipal Election may prepare a candidate’s statement on an appropriate form provided by the City Clerk. The statement may include the name, age, and occupation of the candidate and a brief description of no more than 250 words of the candidate’s education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the Office of the City Clerk at the time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period. Additionally, the following terms and conditions shall apply:

1. FILING PERIOD: The filing period for all candidates for elective office to the City Council will open Monday, July 15, 2024, at 8:30 a.m. and close on Friday, August 9, 2024, at 5:00 p.m. If an incumbent of District 1, District 5, or District 6 does not file his or her nomination papers to run within their current district by 5:00 p.m. on Friday, August 9, 2024, the nomination period for the district will extend to Wednesday, August 14, 2024, 5:00 p.m., for non-incumbents only.

2. PAYMENT OF FILING FEES: Each candidate shall submit the following:

Candidates for City Council shall pay at the time he or she files nomination papers a fee in the amount of $336.60, which is equal to two percent (2%) of the annual Councilmember’s salary as required in Section 2 of Article V of the Charter of the City of Richmond.

Candidates for City Council shall pay at the time he or she files nomination papers an additional fee of: District (1) - $297; District (5) - $367; and District (6) - $351.

Said fee includes printing, handling, translating, and mailing of the optional candidate’s statement

3. Any candidate who is financially unable to pay the filing fee may submit a petition containing signatures of registered voters in lieu of the filing fee. The City Clerk shall furnish an in-lieu petition for securing signatures to any indigent candidate upon request; provided that such candidate completes an affidavit, supplied by the City Clerk, certifying under penalty of perjury that he or she is financially unable to pay the filing fee. The substitution of signatures for filing fees shall be subject to the following provisions:

(1) The in-lieu petition shall contain four signatures
of registered voters for each dollar of filing fee
(a total of 1,344 valid signatures required).

(2) Registered voters signing an in-lieu petition must live in the district of the candidate running for office and must be eligible to vote for the candidate.

(3) A registered voter may sign both a candidate’s
nomination papers and his/her in-lieu petition, but
the signature appearing on the candidate’s
in-lieu petition shall not count toward the number
of signatures required to be submitted on the
nomination papers.

(4) In-lieu petitions shall be filed with the City Clerk 15 days (July 25, 2024) prior to the original close of the nomination period. After the signatures on an in-lieu
petition have been verified, the City Clerk shall immediately notify the candidate of any deficiency. The
candidate may submit a supplemental petition
14

Reso. No. XX-24

with the necessary number of valid signatures
at any time prior to the close of the nomination
period.

(5) A candidate may submit a greater number of
signatures to allow for subsequent losses due
to invalidity of some signatures, but the validity
of a greater number of signatures than that
required by subsection 1, above, shall not be
determined.

IT IS FURTHER RESOLVED AND ORDERED THAT, if two or more candidates in a district receive an equal and the highest number of votes, the City Clerk shall summon the candidates receiving the tie vote to appear before her, at the time designated by the City Clerk, in the Council Chamber. The City Clerk shall place the name of each candidate in a sealed unmarked envelope and the tie vote shall be broken by lot.

IT IS FURTHER RESOLVED AND ORDERED THAT the City Clerk shall certify to the passage and adoption of this resolution and enter it into the original resolutions.

IT IS FURTHER RESOLVED AND ORDERED THAT the City Clerk shall provide each candidate a copy of this resolution at the time nominating petitions are issued.

************************
15

Reso. No. XX-24

BY ORDER OF THE CITY COUNCIL OF THE CITY OF RICHMOND

I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held XXXXX XX, 2024, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:

Mayor

Approved as to form:

City Attorney

State of California }
County of Contra Costa : ss.

City of Richmond }

I certify that the foregoing is a true copy of Resolution No. XX-24, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on XXXX XX, 2024.

Pamela Christian, Clerk of the City of Richmond

16

June 4, 2024

City Council

DATE: June 4, 2024
TO: Members of the City Council
FROM:

Council Member Soheila Bana and Mayor Eduardo
Martinez
Subject:

Observe National Gun Violence Awareness Day and
Request for Funding Allocation
FINANCIAL IMPACT: $5,000 and staff time to coordinate event efforts. This will be funded from General Fund account string 01917090-
400322.

PREVIOUS COUNCIL
ACTION:

No previous action on this issue.

STATEMENT OF THE
ISSUE:

To observe National Gun Violence Awareness Day on
the first Friday in June, to honor and remember all victims of gun violence in efforts to reduce gun violence.

RECOMMENDED ACTION:

PROCLAMATION observing National Gun Violence
Awareness Day; and DIRECT staff to APPROPRIATE a
$5,000 budget from the general fund to be used in
support of activities including but not limited to a
community vigil, educational outreach, and a public
gathering to foster community solidarity against gun
violence – Councilmember Bana (510-672-3490) and
Mayor Eduardo Martinez (510-620-6503).

AGENDA
REPORT
17

June 4, 2024
DISCUSSION:

National Gun Violence Awareness Day is observed annually across the United States on the first Friday of June to honor and remember all victims of gun violence and to declare that we as a country must do more to reduce gun violence.

The day was inspired by the life of Hadiya Pendleton, a 15-year-old high school student from Chicago, who was tragically shot and killed just one week after performing at President Obama's second inaugural parade in 2013, leading her friends to wear orange in her honor, as orange is the color that hunters wear in the woods to protect themselves and others.

An 18-year-old graduating senior from Kennedy High School is the latest victim of gun violence who tragically lost their life in the month of May 2024. It’s important for the City of Richmond to recognize the significance of this day as it promotes community safety and awareness to yield actions to reduce gun violence. It also fosters the necessary dialogue between the Office of Neighborhood Safety, the Richmond Police Department and the families and community members who have been impacted gun violence.

The local chapter of Moms Demand Action have expressed strong support for the city's participation in National Gun Violence Awareness Day.

Requests:

 Appropriate a budget of $5,000 from the general fund for expenditures in connection with the observance of National Gun Violence Awareness Day on the first Friday of June this year.

 The allocated funds will be used to support activities including but not limited to a community vigil, educational outreach, and a public gathering to foster community solidarity against gun violence.

 This event will be organized in collaboration with the Office of Neighborhood Safety, the Richmond Police Department, the 23rd Street Merchants Association, and the local chapter of Moms Demand Action to ensure a comprehensive and unified approach.

DOCUMENTS ATTACHED:

Attachment 1 – Proclamation

18 WHEREAS, every day, 120 Americans are killed by gun violence and more than 200 are shot and wounded, with an average of nearly 18,000-gun related homicides every year; and

WHEREAS, Americans are 26 times more likely to die by gun homicide than people in other high-income countries; and

WHEREAS, in California has 20,984 gun deaths every year, with a rate of 9 deaths per 100,000 people, a crisis that costs the state 20 billion each year, of which 12.62 is paid by taxpayers. California has the 44th highest rate of gun deaths in the US; and

WHEREAS, gun homicides and assaults are concentrated in cities, with more than half of all firearm related gun deaths in the nation occurring in 127 cities; and

WHEREAS, cities across the nation, including in Richmond, are working to end the senseless violence with evidence-based solutions; and

WHEREAS, protecting public safety in the communities they serve is mayors’ highest responsibility; and

WHEREAS, support for the Second Amendment rights of law-abiding citizens goes hand- in-hand with keeping guns away from people with dangerous histories; and

WHEREAS, mayors and law enforcement officers —in partnership with local violence intervention activists and resources —know their communities best, are the most familiar with local criminal activity and how to address it, and are best positioned to understand how to keep their citizens safe; and

WHEREAS, gun violence prevention is more important than ever as we see an increase in firearm homicides, and nonfatal shootings across the country, increased calls to domestic violence hotlines, and an increase in city gun violence; and

WHEREAS, in January 2013, Hadiya Pendleton was tragically shot and killed at age 15; and on June 7, 2024 to recognize the 27th birthday of Hadiya Pendleton (born: June 2, 1997), people across the United States will recognize National Gun Violence Awareness Day and wear orange in tribute to -
(1) Hadiya Pendleton and other victims of gun violence; and (2) the loved ones of those victims; and

WHEREAS,
Proclamation Recognizing Declaring The First Friday in June to be National Gun Violence Awareness Day in
The City of Richmond, California

19 WHEREAS, the idea was inspired by a group of Hadiya’s friends, who asked their classmates to commemorate her life by wearing orange; they chose this color because hunters wear orange to announce themselves to other hunters when out in the woods, and orange is a color that symbolizes the value of human life; and

WHEREAS, anyone can join this campaign by pledging to wear orange on June 7th, the first Friday in June in 2024, to help raise awareness about gun violence; and

WHEREAS, by wearing orange for the first weekend of June. Americans will raise awareness about gun violence and honor the lives of gun violence victims and survivors; and

WHEREAS, we renew our commitment to reduce gun violence and pledge to do all we can to keep firearms out of the hands of people who should not have access to them, and encourage responsible gun ownership to help keep our families and communities safe.

NOW, THEREFORE BE IT RESOLVED, that I, Mayor Eduardo Martinez, and the Richmond City Council do hereby declare the first weekend Friday in June of 2024, to recognize National Gun Violence Awareness Day. I encourage all citizens to support their local communities’ efforts to prevent the tragic effects of gun violence and to honor and value human lives.

___________________________ ______________________________ Mayor Eduardo Martinez Council Member Soheila Bana City of Richmond City of Richmond June 4, 2024 District 4

20

June 4, 2024

Economic Development

DATE: June 4, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Nannette Beacham, Director of Economic Development Lizeht Zepeda, Senior Business Assistance Officer
Kyle Lam, Management Analyst
Antonio Banuelos, Accounting Manager
Subject: Collection of Assessments for Downtown Richmond Property and Business Improvement District (DRPBID)
FINANCIAL IMPACT: The City’s annual contribution to the DRPBID, for services provided to City parcels will be $39,308 and is included in the proposed FY 2024-25 General Fund Non-
Departmental Budget (01917090-400391). Additionally,
the City charges one percent (1%) for the processing of these levies, which will equal $2,812.28.

PREVIOUS COUNCIL
ACTION:

July 19, 2022

STATEMENT OF THE
ISSUE:

Staff is requesting that the City Council adopt a resolution that allows the City to collect annual property
assessments from property owners subject to
assessment under the Downtown Richmond Property
and Business Improvement District (DRPBID) for fiscal
year 2024-2025. These assessments will be collected as
a levy on the property tax rolls.

AGENDA
REPORT
21

June 4, 2024
RECOMMENDED ACTION:

ADOPT a resolution allowing the City of Richmond to
levy the property tax rolls of property owners subject to assessment under the Downtown Richmond Property
and Business Improvement District (DRPBID) on the
annual 2024-2025 property tax rolls – Economic
Development Department (Lizeht Zepeda 510-620-
6653/Antonio Banuelos 510-620-6741/Kyle Lam 510-
620-6802/Nannette Beacham 510-620-1306).

DISCUSSION:

The Richmond Main Street Initiative, Inc. serves as the administrator of the Downtown Richmond Property and Business Improvement District (DRPBID), overseeing property owners within it to provide enhanced services and safeguard new physical improvements in Downtown. The DRPBID offers supplementary cleaning, maintenance, security, marketing, promotions, and business attraction services throughout Downtown Richmond.

The Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq. authorizes cities and counties to renew property and business improvement districts upon petition by a weighted majority of property owners within the proposed district and affirmative ballot. The DRPBID, established in 2013, was renewed with the adoption of a Management District Plan until the end of 2029 by City Council on July 19, 2022.

The DRPBID is governed in accordance with a written Management District Plan, pursuant to Streets and Highways Code section 36622. The Plan sets guidelines for the district, including the assessment rate, service plan, collection provisions, and governance. The Plan has been certified by a registered professional engineer, and the original is on file with the City Clerk.

Property owners are assessed based on benefits received, with the assessment formula using gross lot square footage. Commercial parcel owners' current assessment is $0.15 per parcel square foot annually, while non-profit housing agency parcel owners pay $0.08, remaining unchanged for fiscal year 2024-2025.

Under “The Right to Vote on Taxes Act” (also known as Proposition 218), all public agencies are required to pay the same assessments for a public property that applies to a private property unless they can demonstrate by clear and convincing evidence that the public property does not receive a benefit. The Management District Plan provides that the City and other public entities should pay their “fair share” of all assessments.

Furthermore, there are currently open invoices for the fiscal year 2023-2024 amounting to $41,215.00, which will also be levied and collected through the 2024-2025 Contra Costa County property tax bills.

22

June 4, 2024
DOCUMENTS ATTACHED:

Attachment 1 – Resolution to Levy Taxes DRPBID
Attachment 2 – Management District Plan
Attachment 3 – 2024-2025 DRPBID Proposed Tax Levy
Attachment 4 – City of Richmond and Redevelopment Agency Assessed Properties Attachment 5 – DRPBID & Richmond Main Street Annual Stakeholder Meeting Presentation

23 Reso. No. _____

RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND,

CALIFORNIA, ALLOWING THE CITY OF RICHMOND FINANCE

DEPARTMENT TO LEVY THE PROPERTY TAX ROLLS OF BUSINESSES

SUBJECT TO ASSESSMENT UNDER THE DOWNTOWN RICHMOND

PROPERTY AND BUSINESS IMPROVEMENT DISTRICT (DRPBID) ON THE ANNUAL 2024-2025 COUNTY OF CONTRA COSTA PROPERTY TAX ROLLS

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

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

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

WHEREAS, on July 19, 2022, the City Council adopted resolution No. 108-22 renewing the DRPBID, approving the assessment formula and levying the assessment; and

WHEREAS, DRPBID is governed in accordance with a written Management District Plan (the “Plan”), pursuant to Streets and Highways Code section 36622; and

WHEREAS, the Plan has been certified by a registered professional engineer and the original is on file with the City Clerk; and

WHEREAS, the City of Richmond has coordinated the collection of the annual assessment through an Interagency Agreement with the County of Contra Costa and forwards the funds to Richmond Main Street Initiative, Inc. serving as the administrator of the DRPBID; and

WHEREAS, the initial assessment is $0.15 per parcel square foot per year for commercial parcels; and

WHEREAS, the initial assessment to parcels owned and utilized by non-profit housing agencies was $0.08 per parcel square foot per year; and

WHEREAS, assessment rates are subject to an increase of no more than three percent per year; and

WHEREAS, the Richmond Main Street & DRPBID Board notified the City on April 4, 2024, of a determination for no increase in the amount of the annual assessment beginning in 2022-2023; and

WHEREAS, the assessment to the commercial parcel owner will remain $0.15 per parcel square foot and $0.08 for non-profit housing agency parcel owners; and

WHEREAS, there are still outstanding invoices from the fiscal year 2023-2024 amounting to $41,215.00; and

WHEREAS, the City charges one percent (1%) for the collecting and processing of these levies and the processing fee amount collected will total $2,812.28; and

WHEREAS, the City’s annual contribution to the DRPBID, for services provided to City parcels, will be $39,308.00.
24 Reso. No. _____

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Richmond hereby authorizes the City of Richmond Finance Department to levy the property tax rolls of businesses in the amount of annual assessments recommended by the Richmond Main Street & DRPBID Board, subject to assessment under the DRPBID on the annual 2024-2025 County of Contra Costa property tax rolls.

BE IT FURTHER RESOLVED that the City Council of the City of Richmond hereby authorizes the City of Richmond Finance Department to levy the amounts listed on the attached Exhibit A for the properties specified therein.

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

***THE CLERK’S OFFICE WILL COMPLETE THE INFORMATION BELOW****

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

AYES: AYES:

NOES:

ABSTENTIONS:

ABSENT:

CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:

Mayor

Approved as to form:

City Attorney

State of California }
County of Contra Costa : ss.

City of Richmond }

I certify that the foregoing is a true copy of Resolution No. _____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on Mmmm dd, yyyy.

_______________________________________
Pamela Christian, Clerk of the City of Richmond

25 DRPBID Management District Plan
April 5, 2022
i

2023-2030
April 5, 2022
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

DOWNTOWN RICHMOND PROPERTY AND BUSINESS

IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN AND
ENGINEER’S REPORT

26 DRPBID Management District Plan
April 5, 2022
ii
Contents
I. Overview .................................................................................................................................................... 1 II. Background ............................................................................................................................................... 3 III. Accomplishments .................................................................................................................................... 4 IV. Boundaries ................................................................................................................................................. 5 V. Service Plan & Budget ............................................................................................................................. 6 A. Establishment 6
B. Improvements, Maintenance and Activities 6
C. Annual Assessment Budget 7
D. Service Budget 8
E. Annual Maximum Assessment Budget 8

VI. Assessment Rate ..................................................................................................................................... 10 A. Assessment Formula 10
B. Changes in Zoning, Ownership, Building Square Footage, or Parcel Size 10 C. Assessment Notice 10
D. Time and Manner for Collecting Assessments 10

VII. Governance ............................................................................................................................................. 11 A. Owners’ Association 11
B. Brown Act & Public Records Act Compliance 11
C. Annual Report 11

VIII. Engineer’s Report .................................................................................................................................. 12

Appendix 1 – Maximum Annual Assessment Rates ........................................................................................... 26 Appendix 2 – PBID law ........................................................................................................................................... 27 Appendix 3 – Map ..................................................................................................................................................... 39 Appendix 4 – Parcel Assessment Calculations .................................................................................................... 40 Appendix 5 – Total Estimated Maximum Cost Of Improvements, Maintenance, And Activities ... Error! Bookmark not defined.

Prepared by Civitas
www.civitasadvisors.com
(800)999-7781
27 DRPBID Management District Plan
April 5, 2022

I. OVERVIEW

Developed by a growing coalition of property owners, Downtown Richmond Property and Business Improvement District (DRPBID) is a benefit assessment district whose purpose is to provide improvements, maintenance and activities that constitute and convey a special benefit to assessed parcels.

As required by state law, property owners have created this Management District Plan (Plan) to renew the DRPBID. This approach has been used successfully in other cities throughout the country to provide special benefits to property owners, namely increased sales, attraction of new tenants, increa sed occupancies, and specifically increased property values. As required by state law, property owners have created this Management District Plan (Plan) to renew the DRPBID.

Location: The DRPBID generally includes parcels along portions of Macdonald Avenue from 6th Street (in the west) to the BART tracks (in the east); portions of 8th Street and Harbour Way from Barrett Avenue (in the north) to Bissell Avenue (in the south); portions of Marina Way from Nevin Avenue (in the north) to Bissell Avenue (in the south); and portions of 16th Street from Macdonald Avenue (in the north) to Bissell Avenue (in the south), as shown on the map in Section IV.

Purpose: The purpose of the DRPBID is to provide improvements, maintenance, and activities, which constitute and convey a special benefit to assessed parcels. The DRPBID will provide Maintenance, Safety and Nuisance Abatement; Marketing, Promotions and Business Development; Capital Improvements; and related administration directly and only to assessed parcels within its boundaries.

Budget: The DRPBID annual assessment budget for the initial year of its seven (7) year operation is anticipated to be $239,990.60. The annual budget may be subject to an increase in assessment rates of no more than three percent (3%) per year. The assessment funds shall be supplemented by non-assessment funds (such as grants and event income), so that the total budget for the initial year is estimated at $255,098.26.

Cost: The assessment rate (cost to the parcel owner) is based on parcel square footage. The initial annual rate to each parcel is shown in the table below. Over the seven (7) year term of the DRPBID, the assessment rate may be subject to annual increases that shall not exceed three percent (3%) per year. Increases shall be determined by the Owners’ Association Board of Directors and may vary each year.

Parcel type Assessment rate (per square foot)
Commercial $0.15
Non-profit Housing $0.08

Renewal: DRPBID renewal requires submittal of petitions from property owners representing more than fifty percent (50%) of the total assessment. The “Right to Vote on Taxes Act” (also known as Proposition 218) requires a ballot vote in which more than fifty percent (50%) of the ballots received, weighted by assessment, be in support of the DRPBID.

28 DRPBID Management District Plan
April 5, 2022

Duration: The renewed DRPBID will have a seven (7) year life beginning January 1, 2023 to December 31, 2029. After the seven (7) year term, the DRPBID may be renewed again for up to ten (10) years if property owners support continuing the programs.

Management: Richmond Main Street Initiative (RMSI) shall continue to serve as the Owners’ Association to provide improvements, maintenance, and activities for the DRPBID. The City of Richmond will enter into a contract with RMSI regarding the provision of improvements and services for the DRPBID. RMSI must provide an annual report on improvements, maintenance, and activities and expenditures to the City, which is also available to property owners.

29 DRPBID Management District Plan
April 5, 2022

II. BACKGROUND

The International Downtown Associat ion estimates that more than 1,5 00 Property and Business Improvement Districts (PBIDs) currently operate throughout the United States and Canada. PBIDs are a time-tested tool for property owners who wish to come together and obtain collective services which benefit their properties.

PBIDs provide supplemental services in addition to those provided by local government. They may also finance physical and capital improvements. These improvements and activities are concentrated within a distinct geographic area and are funded by a special parcel assessment. Services and improvements are only provided to those who pay the assessment.

Although funds are collected by the local government, they are then directed to a private nonprofit. The nonprofit implements services and provides day-to-day oversight. The nonprofit is managed by a Board of Directors representing those who pay the assessment, to help ensure the services meet the needs of property owners and are responsive to changing conditions within the PBID.

PBIDs all over the globe have been proven to work by providing services that improve the overall viability of commercial districts, resulting in higher property values, lease rates, occupancy rates, and sales volumes.

The DRPBID will be renewed pursuant to a state law that took effect in January of 1995. The “Property and Business Improvement District Law of 1994,” which was signed into law by Governor Pete Wilson, ushered in a new ge neration of Property and Business Improvement Districts in California. Key provisions of the law include:

Ø Allows a wide variety of services which are tailored to meet specific needs of assessed properties in each individual PBID;
Ø Requires property owner input and support throughout the renewal process; Ø Requires written support on both a petition and ballot from property owners paying 50% of proposed assessments;
Ø Allows for a designated, private nonprofit corporation to manage funds and implement programs, with oversight from property owners and the City of Richmond (City); Ø Requires limits for assessment rates to ensure that they do not exceed the amount owners are willing to pay; and
Ø Requires the PBID be renewed after a certain time period, making it accountable to property owners.

The “Property and Business Improvement Business District Law of 1994” is provided in Appendix 2 of this document.

30 DRPBID Management District Plan
April 5, 2022

III. ACCOMPLISHMENTS

From 2017 to 2020, RMSI accomplished significant efforts within the DRPBID, helping to establish long-term sustainability. Accomplishments are as follows:

• Assisted Safety 1st in managing community liaisons:
o 10,694 hospitality and maintenance service hours
o 1,554 bags of trash and debris removed
o 181 cases of graffiti abatement
o 84 visitor and homeless “touches”;
• Served as a leading partner in the design and unveiling of the Downtown Richmond Business Hub resulting in 3 new businesses.
• Provided 518 hours of business assistance:
o 19 workshops, total attendance 226;
• Initiated and maintained a comprehensive “Community Resource Directory” providing access to current pandemic-related health orders, safety guidelines, employer obligations, and relief programs;
• Instituted a new E-commerce program in partnership with Square and Renaissance Entrepreneurship Center resulting in:
o 115 hours of one -on-one technical assistance including advising on business licensing, permitting, COVID-19 relief
o Letters of recommendation and business equipment to 92 current and prospective businesses;
• Unveiled the “Heart of Richmond” series, a robust multi-media digital storytelling and social media advertising campaign:
o Showcased 12 diverse business owners, resulting in two businesses being featured in the July 2020 cover story of East Bay Express; • Partnered with Travis Credit Union to launch “Protecting Lives & Livelihoods” campaign in response to the COVID-19 pandemic featuring 4 Downtown vendors and benefitting 17 local businesses:
o 140 Masks distributed,
o 55 Face shields distributed,
o 130 Hand Sanitizers;
• Provided COVID-19 Response, Meal Giveaway Program:
o Contributed 1876 hours of volunteer services and 82,500 meals to Richmond residents;
• Hired 2 Richmond residents as Census 2020 phone bankers to encourage households to complete the census survey and ensure a complete count of our historically undercounted neighborhoods; and
• Promoted and prominently featured 20 Downtown businesses in our Shop Local Safely for Small Business Saturday.

31 DRPBID Management District Plan
April 5, 2022

IV. BOUNDARIES

The DRPBID generally includes parcels along portions of Macdonald Avenue from 6th Street (in the west) to the BART tracks (in the east); portions of 8th Street and Harbour Way from Barrett Avenue (in the north) to Bissell Avenue (in the south); portions of Marina Way from Nevin Avenue (in the north) to Bissell Avenue (in the south); and portions of 16th Street from Macdonald Avenue (in the north) to Bissell Avenue (in the south).

The DRPBID includes approximately 81 parcels with 34 parcel owners. The DRPB ID boundary is illustrated by the map below. This plan, including a copy of this map is on file with the Richmond City Clerk. A larger map is available on request by calling (916)437-4300 or (800)999-7781.

32 DRPBID Management District Plan
April 5, 2022

V. SERVICE PLAN & BUDGET

A. Establishment
Property and business owners in Downtown Richmond have been concerned about the need for coordinated supplemental services in the area for several years. City services and efforts in the area have been welcomed, but limited resources have not allowed for a more comprehensive approach to managing the commercial area.

A service plan to provide special benefits to assessed properties was developed using several methods. A service plan to provide special benefits to assessed properties was developed using several methods. A series of property owner meetings and an analysis of current property conditions were conducted. The primary needs identified were: Maintenance, Safety and Nuisance Abatement; Marketing, Promotions and Business Development; and Capital Improvements. To meet those needs, the DRPBID shall provide related improvements, maintenance and activities to assessed parcels within its boundaries.

B. Improvements, Maintenance and Activities
The DRPBID will provide supplemental improvements, maintenance and activities that are above and beyond those provided by the City and other government agencies. None of the services to be provided by the DRPBID are provided by the City or other government agencies. The improvements and activities will be provided directly and only to assessed parcels; they will not be provided to parcels that are not assessed. Each and every service is unique to the DRPBID, thus the benefits provided are particular and distinct to each assessed parcel.

1. Maintenance, Safety, and Nuisance Abatement
The maintenance program will make Downtown Richmond cleaner, more accessible, and more attractive to potential tenants and customers. Maintenance services may include litter and graffiti removal, sidewalk pressure washing, weed abatement, median maintenance, and communicating code violations by absentee property owners to the City. Safety services will focus on making Downtown Richmond a safer place to do business. Safety services may include security patrols, coordination with the police department and private security agencies operating within the DRPBID, space management improvements to encourage safety on assessed parcels, and dissemination of safety information to property owners and tenants. Nuisance abatement services will be deployed throughout the DRPBID to increase the usability of assessed parcels and address issues that discourage property owners, tenants, and customers from visiting assessed parcels within the DRPBID. Nuisance abatement services may include: an ambassador to provide additional services to mitigate the negative impacts of homeless individuals on assessed properties; establishment and maintenance of a radio network to ensure quick response times to incidents; working with property owners and local agencies to address blighted areas; and enhanced lighting and linkages to decrease that likelihood of nuisance activities from occurring.

2. Marketing, Promotions, and Business Development
The DRPBID will have a unified marketing and promotions program that will collaborate with DRPBID businesses to market and promote the DRPBID to the public as a single destination with a rich collection of attractions, businesses, events and services. The marketing and promotions program may include the use of pole banners, wayfinding signage, visitor guides, press releases, e-newsletters, e-calendars, a DRPBID website, marketing research, special events, 33 DRPBID Management District Plan
April 5, 2022

and other similar projects to increase visitation and commerce on assessed parcels. Business development programs will seek to attract and retain tenants for the assessed parcels. The business development program may include retail and business recruitment activities to encourage businesses to locate on assessed pa rcels; market research and maintenance of a business databases; advocacy for business -friendly policies on behalf of assessed parcels; providing staff who will serve as a liaison between property owners, brokers, tenants, businesses, and government agencies to facilitate growth and retail development on assessed parcels; and creating an active evening and weekend environment to increase commerce on assessed parcels.

3. Capital Improvements
The capital improvements program will use a multi-faceted approach to planning, design and management of public spaces in the DRPBID. DRPBID funds will be leveraged to create a unique sense of place. Capital improvements may include wayfinding signage/banners, seasonal banners and lighting, trash receptacles, and other public space improvements.

4. Administration
The administration portion of the budget will be utilized for administrative costs associated with providing the services. Those costs may include rent, telephone charges, legal fees, accounting fees, postage, administrative staff, insurance, and other general office expenses.

5. Contingency/Reserve
The budget includes a contingency line item to account for unanticipated program costs and uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of RMSI. Reserve funds may be used for program costs in any proportion deemed appropriate by RMSI. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of money from the reserve fund shall be set by RMSI.

6. Collection Fees
The budget includes a collection fees line item to account for City and County administrative fees for levying, collecting, forwarding the assessment to the Owners’ Association and accounting.

C. Annual Assessment Budget
A projected seven (7) year budget for the DRPBID is provided below. The overall assessment budget shall remain consistent with this Plan. In the event of a legal challenge, assessment funds may be used to defend the DRPBID. The annual assessment budget is based on the following assumptions and guidelines:

1. The cost of providing improvements, maintenance and activities may vary depending upon the market cost for those improvements , maintenance and activities. Expenditures may require adjustment up or down to continue the intended level o f improvements, maintenance and activities. RSMI and their board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. Any change will be approved by the RSMI and submitted with the Annual Report.

2. Funds not spent in any given year may be rolled over to the next year. 34 DRPBID Management District Plan
April 5, 2022

3. The assessment rate may be subject to annual increases that will not exceed three percent per year. Increases shall be determined by RMSI and will vary each year.

4. Each budget category includes all costs related to providing that improvements, maintenance and activities. For example, the maintenance budget includes the cost of staff time dedicated to overseeing and implementing the maintenance program. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The staffing levels necessary to provide the services below shall be determined by RMSI on an as-needed basis.

D. Service Budget
The total improvement, maintenance and activity budget for 2022 that is funded by property assessments is $239,990.60. In addition to the assessment revenue, the programs will be supplemented by non - assessment funds. The total of non-assessment and assessment funds, and the determination of special and general benefits, are included in the Engineer’s Report. Following is a table of the estimated total assessment budget allocations for each category for the initial year of operations.

E. Annual Maximum Assessment Budget
The budget below assumes the maximum annual increase of three percent (3%) is enacted and that there are no changes to the categorical budget allocations.

Year Maintenance,
Safety and
Nuisance
Abatement
Marketing,
Promotions and
Business
Development
Administration Contingency/
Reserve
Capital
Improvements
Collection
Fees
Total
2023 $119,995.30 $64,797.46 $35,998.59 $11,999.53 $4,799.81 $2,399.91 $239,990.60 2024 $123,595.16 $66,741.39 $37,078.55 $12,359.52 $4,943.81 $2,471.90 $247,190.32 2025 $127,303.01 $68,743.63 $38,190.90 $12,730.30 $5,092.12 $2,546.06 $254,606.03 2026 $131,122.10 $70,805.94 $39,336.63 $13,112.21 $5,244.88 $2,622.44 $262,244.21 Maintenance, Safety,
and Nuisance
Abatement,
$119,995.30 , 50%
Marketing,
Promotions, and
Business
Development,
$64,797.46 , 27%
Administration,
$35,998.59 , 15%
Contingency / Reserve,
$11,999.53 , 5%
Capital Improvements,
$4,799.81 , 2%
Collection Fees,
$2,399.91 , 1%
Annual Assessment Budget- $239,990.60
35 DRPBID Management District Plan
April 5, 2022

2027 $135,055.77 $72,930.11 $40,516.73 $13,505.58 $5,402.23 $2,701.12 $270,111.53 2028 $139,107.44 $75,118.02 $41,732.23 $13,910.74 $5,564.30 $2,782.15 $278,214.88 2029 $143,280.66 $77,371.56 $42,984.20 $14,328.07 $5,731.23 $2,865.61 $286,561.33 Total $919,459.45 $496,508.10 $275,837.83 $91,945.94 $36,778.38 $18,389.19 $1,838,918.90

36 DRPBID Management District Plan
April 5, 2022

VI. ASSESSMENT RATE

A. Assessment Formula
Individual assessed parcels shall be assessed an assessment rate according to each assessed parcel’s proportionate special benefit derived from the services provided to each assessed parcel, as shown in the table below.

Parcel type Assessment rate (per square foot)
Commercial $0.15
Non-profit Housing $0.08

B. Changes in Zoning, Ownership, Building Square Footage, or Parcel Size If the zoning, ownership, building square footage, or size of a parcel within the DRPBID boundary changes during the term of the DRPBID the assessment amount may be modified according to the assessment methodology detailed in this Plan that is applicable to the parcel. These changes may be a result of land adjustments (including but not limited to lot splits, consolidations, right away setbacks, etc.), new construction, new ownership, or changes in zoning.

C. Assessment Notice
During the hearing process, an Assessment Ballot will be sent to owners of each parcel in the DRPBID.

The Assessment Ballot provides an estimated assessment. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage or type differ from those used to calculate the amount shown on the notice, which can be found in Appendix 4.

D. Time and Manner for Collecting Assessments
As provided by State Law, the DRPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Contra Costa. Alternatively, the DRPBID assessment may be collected by the City of Richmond if needed. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Contra Costa and City of Richmond shall distribute funds collected to RMSI. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the DRPBID assessments.

E. Bonds
Bonds shall not be issued.

37 DRPBID Management District Plan
April 5, 2022

VII. GOVERNANCE

A. Owners’ Association
The DRPBID shall continue to be governed by Richmond Main Street Initiative (RMSI), with oversight from the Richmond City Council. RMSI shall serve as the Owners’ Association described in Streets and Highways Code §36651. The Board of Directors of RMSI and its staff are charged with the day-to-day operations of the DRPBID.

A majority of the Board of Directors of RMSI must be parcel owners paying the assessment. In addition, the Board of Directors must represent a variety of interests within the DRPBID and respond to the needs of all properties within the DRPBID.

The Board of Directors shall act in the best interests of all the properties within the DRPIBD. The City Council or Board of Directors reserves the right to amend or modify the composition of the Board by a separate resolution without amending this Management District Plan.

B. Brown Act & Public Records Act Compliance
An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M.

Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association must act as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of RMSI Board of Directors and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
RMSI shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 2). The annual report is a prospective report for the upcoming year and must include:

1. Any proposed changes in the boundaries of the DRPBID or in any benefit zones or classification of property within the district;

2. The improvements, maintenance, and activities to be provided for that fiscal year;

3. The estimated cost of providing the improvements, maintenance, and activities to be provided for that fiscal year;

4. The method and basis of levying the assessment in sufficient detail to allow each real property owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year;

5. The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and

6. The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this Plan.

38 DRPBID Management District Plan
April 5, 2022

VIII. ENGINEER’S REPORT

The DRPBID’s parcel assessments will be imposed in accordance with the provisions of Article XIII D of the California Constitution. Article XIII D provides that “only special benefits are assessable,”1 and requires the City to “separate the general benefits from the special benefits conferred on a parcel.”2 Special benefits are a “particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public-at-large.”3 Conversely, a general benefit is “conferred on real property located in the district or to the public-at-large.”4 Assessment law also mandates that “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”5
The Engineer determined the total cost of the improvements and activities, quantified the general benefit accruing to the public-at-large and non-assessed parcels adjacent to and within the DRPBID, and separated that amount from the special benefit accruing to the assessed parcels. Then, the Engineer determined the proportional special benefit derived by each parcel and allocated the special benefit value of the improvements and activities accordingly. The Engineer’s determinations and detailed calculations are summarized in this report.

A. Separation of General and Special Benefits
Each of the improvements and activities, and the associated costs and assessments within the DRPBID, were reviewed, identified, and allocated based on special and general benefits pursuant to Article XIII D of the California Constitution. The assessment has been apportioned based on the proportional special benefits conferred to the assessed parcels located within the DRPBID boundaries as determined below.

1. General Benefits
Unlike special benefits, which are conferred directly and only upon assessed parcels, a general benefit is conferred on the general public or non-assessed parcels. Existing City and other public services, which are provided to every person and parcel, everywhere within the City, are an example of a general benefit. Although the DRPBID’s boundaries have been narrowly drawn, programs have been carefully designed to provide special benefits, and activities and improvements will only be provided directly to assessed parcels, it is acknowledged that there will be general benefits as a result of the DRPBID’s activities and improvements.

The California Constitution mandates that “only special benefits are assessable, and an agency shall separate the general benefits from the special benefits.”6 “Generally, this separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.”7 The first step that must be undertaken to separate general and special benefits provided by the DRPBID’s activities and improvements is to identify and quantify the general

1 Cal. Const., art. XIII D, §4(a)
2 Cal. Const., art. XIII D, §4(a)
3 Id, §2(i)
4 Cal Const., art XIII D §2(i)
5 Cal. Const., art. XIII D, §4(a)
6 Cal. Const., art XIII D §4(a)
7 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal.App.4th 416 39 DRPBID Management District Plan
April 5, 2022

benefits. There are two bodies who can receive general benefits: the public- at-large within the DRPBID, and non-assessed parcels within and surrounding the DRPBID. a. General Benefit to the Public-at-Large
Although the activities and improvements are narrowly designed and carefully implemented to specially benefit the assessed parcels, and only provided directly to assessed parcels, they will generate a general benefit to the public-at-large within the DRPBID. State law indicates that “Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.”8 However, “the mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.”9 Further, “the value of any incidental or collateral effects that arise from the improvements, maintenance or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.”10 Thus, although there may be some incidental benefit to persons engaged in business on the assessed parcels, that incidental benefit is not considered general benefit because it is inherently produced by activities and improvements that provide spec ial benefits to the assessed parcels. There is, however, a general benefit to persons not engaged in business on the assessed parcels.

Intercept surveys conducted in similar districts have found that approximately 97.3% of pedestrian traffic within PBID boundaries is engaged in business on assessed parcels, while the remaining approximately

2.7% is simply passing through and not engaging in business on the assessed parcels 11. The 2.7% of traffic passing through does not have any connection to the asses sed parcels, and therefore does not represent a special benefit to the assessed parcels. The 2.7% will, however, receive a derivative and indirect general benefit as a result of the activities and improvements being provided in the DRPBID.

Therefore, it is estimated that 2.7% of the benefit created by the DRPBID’s services is general benefit provided to the public-at-large. To ensure that the assessment dollars do not fund general benefits to the public-at-large, that portion of the cost of activities and improvements will be paid for with funds not obtained through assessments. Using the 2.7% figure, based on the initial year activity and improvement budget, the value of this general benefit to the public-at-large is $6887.66 ($255,098.26*0.027). b. General Benefit to Non-Assessed Parcels
Although they are only provided directly to the assessed parcels, the DRPBID’s activities and improvements may also confer general benefits upon non-assessed parcels within and surrounding the DRPBID. One study examining property values in PBID areas found “no evidence of spill-over impacts (either good or bad) on commercial properties located just outside the BID’s boundaries;” 12 however, the California Court of Appeals has stated that “services specifically intended for assessed parcels concomitantly confer collateral general benefits to surrounding properties.”13 It is reasonable

8 Streets and Highways Code section 36601(h)(2)
9 Ibid
10 Streets and Highways Code Section 36622(k)(2)
11 Surveys conducted in: North Park, San Diego (January 2015); Mack Road, Sacramento (July 2014); and Sunrise MarketPlace, Citrus Heights (December 2013)
12 Furman Center for Real Estate & Urban Policy; The Impact of Business Improvement Districts on Property Values: Evidence from New York City (2007) p. 4
13 Beutz v. Riverside (2010) 184 Cal.App.4th 1516
40 DRPBID Management District Plan
April 5, 2022

to conclude that activities and improvements within the DRPBID will have an incidental impact on non-assessed parcels surrounding or within the DRPBID boundaries. Although the legislature has indicated that “the value of any incidental or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit,” 14 the California Court of Appeals has noted that “the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement…or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement.” 15 Those derivative and indirect impacts are considered general benefits and will be quantified and separated.

In this Engineer’s opinion, because activities and improvements are provided only within the DRPBID and on its perimeter, parcels separated from the DRPBID by either at least one intervening parcel or an impassable physical barrier such as a wall, freeway, or ditch will not receive spill over benefits.

Parcels separated from the DRPBID will not benefit because they are physically removed from the actual location of activities and improvements provided, and do not face serviced parcels. Therefore, this analysis considers non-assessed parcels within the DRPBID’s boundaries and surrounding parcels that are immediately adjacent to and accessible from the DRPBID’s boundaries.

The total DRPBID activity and improvement budget for the first year is $255,098.26. After reducing the activity and improvement budget by the general benefit to the public- at-large ($6,887.66), the remaining benefit to parcels is $248,210.60 . This benefit has been distributed to both assessed and non-assessed parcels using the following methodology. The general benefit to the public-at-large has been proportionally allocated to the DRPBID’s activity and improvement categories as shown in the following table.

Category Benefit to Parcels Benefit to
Public-at-Large Total
Maintenance, Safety, and
Nuisance Abatement $124,408.17 $3,452.23 $127,860.40
Marketing, Promotions and
Business Development $66,701.87 $1,850.93 $68,552.80
Capital Improvements $4,976.32 $138.09 $5,114.41
Administration,
Contingency/Reserve, &
Collection Fees
$52,124.24 $1446.41 $53,570.65
Total $248,210.60 $6887.66 $255,098.26

To determine the general benefit to parcels, the Engineer assigned each parcel group a benefit factor, determined the appropriate parcel characteristic to use in the calculation, multiplied the benefit factor by the benefit characteristic to determine the benefit units attributable to each parcel group, and

14 Streets and Highways Code section 36622(k)(2)
15 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077 41 DRPBID Management District Plan
April 5, 2022

apportioned the remaining service cost (service cost minus general benefit to the public) in accordance with the benefit units derived by each parcel group.

i. Benefit Factors
All parcels within and adjacent to the DRPBID have been assigned a benefit factor to mathematically represent the proportional special and general benefit and quantify the value of each. The determination of benefit factors for each type of activity and improvement follows.

Improvements
The improvements to be provided by the DRPBID provide two types of special benefits:
• Improvement – The primary special benefit provided by the DRPBID’s improvements is the improvements themselves, which are available to tenants and customers of assessed parcels. • Proximity – The DRPBID’s improvements also provide the special benefit of being in proximity to a parcel that is benefitting from an improvement, as parcels will enjoy the spillover benefits of neighboring parcels utilizing the improvements.

The majority of the benefit is the improvements themselves; proximity is a lesser benefit. It is this Engineer’s estimation that eighty-five percent (85%) of the special benefit from the DRPBID’s improvements is the improvement, while the proximity special benefit accounts for fifteen percent (15%) of the special benefit. Assessed parcels will receive both benefits; non-assessed parcels within and adjacent to the DRPBID will not be directly improved, and therefore only receive the general benefit of proximity.

Tangible Activities
The tangible activities (those that are physically provided via a person or people working throughout the district) to be provided by the DRPBID generate three types of special benefits:
• Service – The primary special benefit provided by the DRPBID’s physical activities is the actual service. That is, the actual cleanliness and safety created by security and maintenance clean and safe personnel.
• Presence – The DRPBID’s physical activities also provide the special benefit of an individual’s presence on the assessed parcel as the activities are provided, which can have a deterrent effect and creates a positive impression that the area is well-maintained and safe. The “Disneyland effect” is the benefit the parcels receive from the observation that parcels are being maintained. There are studies which link the perception of cleanliness to a perception of increased security.
• Proximity – The DRPBID’s physical activities also provide the special benefit of being in proximity to a cleaner, safer parcel. Neighboring parcels enjoy the spillover benefits of being adjacent to increased safety and cleanliness.

The majority of the benefit received by the parcels is the results of the DRPBID’s services; onsite presence and proximity are lesser benefits. It is this Engineer’s estimation that seventy-five percent (75%) of the special benefit from the DRPBID’s physical activities is the service, while the presence and proximity benefits each account for twelve and one-half percent (12.5% presence, 12.5% proximity) of the special benefit. Assessed parcels will receive all three benefits; non-assessed parcels 42 DRPBID Management District Plan
April 5, 2022

within and adjacent to the DRPBID will not be directly serviced and therefore only receive the general benefit of proximity.

Intangible Activities
Some of the DRPBID’s activities, such as marketing, are distinct in that they are not provided to a targeted area within the DRPBID, rather they are provided via internet, radio, and other forms of media and targeted at an audience outside the DRPBID in an effort to bring the audience into the DRPBID. These activities provide two types of special benefits:

Direct Exposure – The primary special benefit provided by the DRPBID’s intangible activities is exposure. The intangible activities increase awareness of the DRPBID as a commercial and business destination and lead to increased patronage.

Incidental Exposure – The DRPBID’s intangible activities will also have a secondary special benefit of incidental exposure, such as word- of-mouth exposure, that results from the direct exposure and increases awareness of the DRPBID as a commercial and business destination.

The majority of the benefit from these activities is the direct exposure; the incidental exposure is a lesser benefit. It is this Engineer’s estimation that ninety percent (90%) of the special benefit from the intangible activities is direct exposure, while ten percent (10%) is incidental exposure. Assessed parcels will receive both as special benefits; non-assessed parcels within and adjacent to the DRPBID will not be directly marketed and therefore only receive the general benefit of incidental exposure.

Factors Determined
Based on the foregoing analysis, all assessed parcels within the DRPBID specially benefit from the DRPBID’s activities and improvements, and have been assigned a benefit factor of 1.0. Parcels that are not assessed have been assigned benefit factors based on the portion of the benefit they will receive, as described above. The non-assessed parcels will benefit from fifteen percent (15%) of the improvements, twelve and one-half percent (12.5%) of the tangible activities, and ten percent (10%) of the intangible activities; therefore they have been assigned benefit factors of 0.15, 0.125, and 0.10 respectively.
ii. Non-Assessed Benefit Characteristics
There are two types of parcels that are not assessed; those within the DRPBID and those immediately adjacent to and accessible from the DRPBID. Because they generally benefit in a differing manner, distinct parcel characteristics are used to quantify the general benefit to each type. • Inside – Non-assessed parcels inside of the DRPBID are surrounded by parcels that are assessed and receiving the full special benefits; they will, therefore, receive the general benefit of proximity. These parcels are impacted on more than one side by the DRPBID’s activities and improvements and activities and improvements are provided all around them. Because these parcels are surrounded by specially benefitted parcels, it is appropriate that parcel square footage be used to measure the general benefit they receive. • Adjacent – Adjacent parcels are those that are immediately adjacent to or directly across the street from specially benefitted parcels, and accessible from specially benefitted parcels. These parcels generally benefit differently than those inside the DRPBID, because these parcels are adjacent to, rather than surrounded by, specially benefitted parcels. Square footage is not an appropriate measure of benefit to these parcels. Because the parcels are not surrounded by serviced parcels, a long, shallow parcel with the same square footage as a deep, narrow parcel 43 DRPBID Management District Plan
April 5, 2022

will receive a different level of general benefit. Likewise, two parcels with the same depth but a different width adjacent to serviced parcels will benefit differently. To account for this difference, it is appropriate that parcel linear frontage be used to measure the general benefit the adjacent parcels receive. The linear footage is the length of parcels fronting public streets.

The amount listed for “assessed linear feet” is the value for all assessed parcels within the DRPBID and the amount listed for “non-assessed linear feet” is the value for all non-assessed parcels adjacent to the district boundary.

iii. Calculations
To quantify and separate the general benefit to non-assessed parcels, the following calculations were undertaken for each budget category.

1. The total service budget for each category was determined and the amount of general benefit to the public-at-large was subtracted from the category budget.

2. The benefit factor applicable to each activity or improvement was multiplied by the parcel square footage or linear frontage of assessed and non-assessed parcels, to determine the number of benefit units received by each parcel group.

3. The benefit units for all parcel groups were summed, and the percentage of benefit units attributable to each parcel group was calculated.

4. The total remaining activity and improvement budget, less the amount already determined to be general benefit to the public- at-large, was allocated to general and special benefit categories for each parcel group using the calculated benefit percent and applicable benefit characteristic methodology.

5. The special and general benefit resulting from the administration and contingency / reserve portions of the budget were determined based on the proportional allocation of benefits derived from activities and improvements.

Maintenance, Safety and Nuisance Abatement
The maintenance, safety, and nuisance abatement budget, minus the amount of general benefit to the public-at-large, is $124,408.17. The calculations below determine the amount of general benefit to non-assessed parcels within the DRPBID.

Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Assessed 1,721,854.00 1.000 1,721,854.00 99.387% $124,408.17 $123,645.35 Non-Assessed 84,983.00 0.125 110,622.88 0.613% $124,408.17 $762.82

The maintenance, safety, and nuisance abatement budget, minus the amount of general benefit to the public and non-assessed parcels within the DRPBID, is $123,645.35. The calculations below determine the amount of general benefit to parcels adjacent to the DRPBID.

Parcel Type
Linear
Frontage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Inside 22,881.00 1.000 22,881.00 97.048% $123,645.35 $119,995.30 Adjacent 5,568.00 0.125 696.00 2.952% $123,645.35 $3,650.05 44 DRPBID Management District Plan
April 5, 2022

Therefore, the allocation of the maintenance, safety, and nuisance abatement budget is as follows:

General Benefit – Public At Large $3,452.23
General Benefit – Inside Parcels $762.82
General Benefit – Adjacent Parcels $3,650.05
Special Benefit $119,995.30
Total $127,860.40

Marketing, Promotions and Business Development
The marketing, promotions, and business development budget, minus the amount of general benefit to the public-at-large, is $66,701.87. The calculations below determine the amount of general benefit to non-assessed parcels within the DRPBID.

Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Assessed 1,721,854.00 1.000 1,721,854.00 99.509% $66,701.87 $66,374.28 Non-Assessed 84,983.00 0.100 8,498.30 0.491% $66,701.87 $327.59

The marketing, promotions, and business development budget, minus the amount of general benefit to the public and non-assessed parcels within the DRPBID, is $66,374.28. The calculations below determine the amount of general benefit to parcels adjacent to the DRPBID.

Parcel Type
Linear
Frontage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Inside 22,881.00 1.000 22,881.00 97.624% $66,374.28 $64,797.46 Adjacent 5,568.00 0.100 556.80 2.376% $66,374.28 $1,576.82

Therefore, the allocation of the marketing, promotions, and business development budget is as follows:

General Benefit – Public At Large $1,850.93
General Benefit – Inside Parcels $327.59
General Benefit – Adjacent Parcels $1,576.82
Special Benefit $64,797.46
Total $68,522.80

Capital Improvements
45 DRPBID Management District Plan
April 5, 2022

The capital improvements budget, minus the amount of general benefit to the public- at-large, is $4,976.32. The calculations below determine the amount of general benefit to non-assessed parcels within the DRPBID.

Parcel Type
Square
Footage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Assessed 1,721,854.00 1.000 1,721,854.00 99.387% $4,976.32 $4,945.81 Non-Assessed 84,983.00 0.125 10,622.88 0.613% $4,976.32 $30.51

The capital improvements budget, minus the amount of general benefit to the public and non-assessed parcels within the DRPBID, is $4,945.81. The calculations below determine the amount of general benefit to parcels adjacent to the DRPBID.

Parcel Type
Linear
Frontage
Benefit
Factor Benefit Units
Benefit
Percent
Remaining
Budget
Inside 22,881.00 1.000 22,881.00 97.048% $4,945.81 $4,799.81 Adjacent 5,568.00 0.125 696.00 2.952% $4,945.81 $146.00

Therefore, the allocation of the capital improvements budget is as follows:

General Benefit – Public At Large $138.09
General Benefit – Inside Parcels $30.51
General Benefit – Adjacent Parcels $146.00
Special Benefit $4,799.81
Total $5,114.41

Administration, Contingency/Reserve, and Collection Fee The administration, contingency/reserve and collection fee budget line items relate to the activities and improvements provided. These costs have been allocated proportionally based on the special and general benefit provided by each category.

Special Benefit
to Parcels
General Benefit
to Parcels
Maintenance, Safety, and Nuisance
Abatement $119,995.30 $4,412.87
Marketing, Promotions and Business
Development $64,797.46 $1,904.41
Capital Improvements $4,799.81 $176.51
Activity Totals $189,592.57 $6,493.79
Percent 96.688% 3.312%
Administration,
Contingency/Reserve, & Collection Fee $50,398.03 $1,726.21 46 DRPBID Management District Plan
April 5, 2022

Total Parcel Benefits $239,990.60 $8,220.00

iv. Total Benefits
Based on the foregoing calculations, the total benefits to assessed parcels, non-assessed parcels, and the general public are:

Special
Benefit to
Parcels
General Benefit
to Parcels
General
Benefit to
Public Total
Maintenance, Safety, and Nuisance
Abatement $119,995.30
$4,412.87 $3,452.23 $127,860.40
Marketing, Promotions and Business
Development $64,797.46
$1,904.41 $1,850.93 $68,552.80
Capital Improvements $4,799.81 $176.51 $138.09 $5,114.41 Administration, Contingency/Reserve, &
Collection Fees $50,398.03
$1,726.21 $1,446.41 $53,570.65
Total $239,990.60 $8,220.00 $6,887.66 255,098.26
c. Non-Assessment Funding
The programs funded by the DRPBID receive additional non-assessment funding in the form of grants, corporate sponsorships, event income, and other miscellaneous funds. These funding sources are anticipated to equal or exceed the amount of general benefit conferred annually by the DRPBID’s activities and improvements, $15,107.66. These non-assessment funds will be used to pay for the general benefit provided by the DRPBID’s activities and improvements, ensuring that parcel assessments will only be used to provide special benefits and “any additional costs of providing general benefits [are] not included in the amounts assessed.”16

2. Special Benefit
The activities and improvements to be provided by the DRPBID constitute and convey special benefits directly to the assessed parcels. Assessment law requires that “the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided.”17 Further, “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” 18 Special benefit “includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed.”19 To determine the total special benefit value to be conveyed to the assessed parcels, we deduct the general benefit value ($15,107.66) from the total value of the activities and improvements ($255,098.26). The remaining $ is considered the special benefit to assessed parcels (the “Total Assessment”). The Total Assessment represents the total value of the special benefit to be provided

16 Streets and Highways Code section 36632(a)
17 Cal. Const., art XIII D §4(a)
18 Ibid
19 Streets and Highways Code section 36615.5
47 DRPBID Management District Plan
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by the activities and improvements. The Total Assessment has been proportionally divided among the assessed parcels so that no assessment exceeds the reasonable cost of the proportional special benefit conferred on a parcel. The assessment rate has been designed to ensure that “properties that receive the same proportionate special benefit pay the same assessment.”20

Service Provided
Total Benefit
Value
General Benefit
Value to Public
Benefit Value to
Parcels (Special
& General)
Special Benefit
to Assessed
Parcels
Maintenance, Safety, and
Nuisance Abatement
$127,860.40 $3,452.23 $124,408.17 $119,995.30
Marketing, Promotions and
Business Development
$68,552.80 $1,850.93 $68,552.80 $64,797.46
Capital Improvements $5,114.41 $138.09 $5,114,41 $4,799.81 Administration $38,264.74 $1,033.15 $37,231.59 $35,998.59 Contingency/Reserve $12,754.92 $344.38 $12,410.54 $11,999.53 Collection Fees $2,550.99 $68.88 $2,482.11 $2,399.91
TOTAL $255,098.26 $6,887.66 $248,210.60 $239,990.60

B. Assessment Methodology

1. Base Formula
Each parcel will be assessed based on proportional special benefits received. The variables used for the annual assessment formula are parcel type and parcel square footage. These variables are appropriate measures of the proportional special benefit because the need for services, level of services, and quantity of services are all relative to these variables; thus the special benefit provided to each parcel by the services can be proportionally measured using these variables.

Determination of Assessment Rates
“Because not all parcels in the district are identical in size…some will receive more special benefit than others.” 21 Each of the variables used relates directly to the service level and special benefit provided to each parcel. Parcel square footage is the size of the parcel, measured in square feet. Size is an appropriate measure of proportional special benefit because it relates directly to the quantity of services provided to the parcel, the highest and best use of a parcel, and reflects the long -term value implications of the DRPBID. The larger a parcel, the more services and benefit the parcel will receive.

Because not all parcels in the DRPBID are identical in use, some will receive more special benefit than others. For example, a commercial parcel will benefit to a lesser degree than a retail trade use parcel, because it will not enjoy the benefits of increased commerce resulting from the services. Further detail on the benefit to each parcel type is in the following pages. To determine the assessment rates, the assessed parcels were classified by the estimated benefit each type of parcel receives, the estimated special benefit value of the activities and improvements provided to each type was determined based

20 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057
21 Dahms v. Downtown Pomona (2009) 174 Cal.App.4th 708
48 DRPBID Management District Plan
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on approximate cost of service provision, and an assessment rate that is proportional to the estimated proportional benefit received by each parcel type was determined.

To determine the assessment rates, the estimated special benefit value for each parcel type was divided by the total assessable parcel square footage as shown in the tables below.

Parcel Type
Parcel types were categorized based on their typical amount of foot and vehicle traffic on the various parcels. Retail trade use parcels will receive the highest level of services because their owners aim to benefit from increased customers or increased use by visitors and receive the highest volume of foot and vehicle traffic. However, parcels with low traffic, such as private tax-exempt parcels, will receive a lower level of services, because their owners primarily aim to benefit from increased cleanliness and security and receive the lowest level of foot and vehicle traffic. The approximate cost of special benefit services by parcel type was determined. Then, the special benefit cost of services by type was divided by the frontage and square footage of those parcels to determine the assessment rates.

Parcel Size
The DRPBID’s services will benefit each assessed parcel as a whole. The service budget which, in this Engineer’s estimation, represents special benefits to the parcels, has been allocated based on parcel size and parcel frontage.

Parcel Type
Initial Parcel
Size Budget
Parcel Square
Footage
Initial Parcel
Assessment
Rate
($/sqft/yr)
Commercial 219,090.60 ÷ 1460604 = 0.15
Non-Profit Housing 20,900.00 ÷ 261250 = 0.08

Summary of Assessment Rates
Therefore, for the initial year, the maximum annual assessment rates to parcels are as shown below and in Appendix 1. Maximum annual assessment rates may be subject to an increase of no more than three percent (3%) per year as shown in Appendix 1. Pursuant to Streets and Highways Code §36622(f) bonds shall not be issued.

If you would like more information about parcel assessments, please call Civitas at (916)437- 4300 or (800)999-7781.

Parcel type Assessment rate (per square foot)
Commercial $0.15
Non-Profit Housing $0.08

Sample assessment calculations are shown in Appendix 4. 49 DRPBID Management District Plan
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Parcel Categorization
Assessment categories for each parcel were determined based on the parcel’s land use code as shown in the Assessor’s Records and supplemented by other available information. In general, the assessment category for each parcel reflects the use of the parce l as described by its land use code. Parcels with multiple uses, such as strip malls with retail storefronts and commercial use buildings on the same parcel, are assessed at the rate applicable to the use that occupies the largest portion of the building square footage. In cases where the land use code and actual use differ, the actual use prevails for classification purposes.

1. Commercial
Commercial parcels will receive and benefit from all DRPBID services, which are aimed to attract and increase customers and visitors to assessed parcels. These parcels have a commercial component because their owners aim to benefit from tenant rents, increased customers, or increased use by visitors. The primary purpose of the DRPBID is to provide property owner services which generate special benefits to parcels with commercial uses.

2. Non-Profit Housing
Parcels owned and operated by non-profit housing agencies will receive and benefit from a portion of the DRPBID’s services. They will not, however, receive the same degree of special benefit that is received by commercial parcels as they are not used for commercial purposes. These parcels will receive and benefit from a portion of the DRPBID’s cleaning and maintenance programs. They will not receive nor benefit from marketing, promotions and business attraction services. Due to their lower pedestrian traffic and non-commercial nature, these parcels have a lower need for services; therefore, they will receive services less frequently and less intensively that commercial parcels. Thus, non-profit housing parcels will be assessed at a rate commensurate with the degree of special benefit.

3. Government-Owned Parcels
The California Constitution, in Article XIII D, provides that “parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” No public agency owning parcels in the district has made such a demonstration. Government-owned parcels within the DRPBID will receive special benefit from the full range of DRPBID services and will therefore be assessed at the full commercial rate, commensurate with the degree of special benefit. There are thirty-one (31) City of Richmond parcels and one (1) County of Contra Costa parcel.

4. Exempted parcels/Non-Assessed
There are sixty-eight (68) parcels within the DRPBID that will not be assessed. These parcels will not specially benefit from or directly receive the DRPBID’s activities and improvements. These parcels are accounted for in the analysis of general benefit provided to non-assessed parcels within the DRPBID.

These parcels have the following use:
• Residential Parcels: The state legislature has determined that “properties zoned exclusively for residential use…are conclusively presumed not to benefit from the improvements and services 50 DRPBID Management District Plan
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funded through these assessments, and shall not be subject to any assessment.”22 The activities and improvements to be provided are designed to specially benefit commercial and parking parcels via increased commerce, occupancy, and lease rates. None of these benefits apply to residential parcels, which will not be serviced or benefit from the DRPBID’s activities. Residential parcels are those parcels with four family units or less, residential common areas, residential vacant lots, residential planned unit development, and residential condominiums. There are sixty- eight (68) residential parcels within the DRPBID that will not be assessed.

5. Changes in Data
Every effort has been made to ensure each parcel included in the DRPBID is clearly identified and that all parcels included in the DRPBID are consistent in the boundary map and the assessment calculation table. However, errors in data can and may arise or data may change after formation of the DRPBID.

Inconsistencies may include updated parcel sizes or parcel splits. If inconsistencies arise, the order of precedence shall be: 1) the assessment calculation table and 2) the boundary map.

If the parcel size or type of a parcel changes during the term of the DRPBID, the assessment calculation may be modified accordingly.

Categorization Appeals
The category determined for each parcel is shown in Appendix 4. The use for each parcel is established at formation and may be updated upon each renewal. If a parcel owner believes their parcel has been mis-classified or has changed, they may appeal in writing to the City of Richmond for re-consideration.

Appeals must be received by the City no later than June 1 of each year. Appeals must include the parcel number, current classification, requested classification, and the evidence upon which the appeal is based (for instance if a parcel is occupied by a retail store, but classified as commercial, a current photo of the retail store showing the building number). Appeals will not provide retroactive reductions.

Appeals should be made to:

Thomas Omolo
Richmond City Manager’s Office, Economic Development
[email protected]
(510) 620-5560
A. Assessment Notice
During the hearing process, an Assessment Ballot will be sent to owners of each parcel in the DRPBID.

The Assessment Ballot provides an estimated assessment for each parcel. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage, linear front footage, or type differ from those used to calculate the amount shown on the notice, which can be found in Appendix

4. B. Time and Manner for Collecting Assessments
As provided by State Law, the DRPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Contra Costa. Alternatively, the DRPBID assessment may be collected by the City of Richmond if needed. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Contra Costa and City of Richmond shall distribute

22 Streets and Highways Code § 36632(c)
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funds collected to RMSI. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the DRPBID assessments.

C. Bonds
Bonds will not be issued to finance services as a part of this DRPBID.

D. Engineer’s Certification
I hereby certify, to the best of my knowledge and experience, that each of the identified assessed parcels located within the Downtown Richmond Property and Business Improvement District will receive a special benefit over and above the general benefits conferred and that the amount of the assessment is no greater than the proportional special benefits conferred on each parcel, as described in this Engineer’s Report.

Review of this Downtown Richmond Property and Business Improvement District Management District Plan and preparation of the Engineer’s Report was completed by:

__________________________
Ross Peabody
State of California

April 6, 2022
Date

This Engineer’s Report is intended to be distributed as part of the Management District Plan in its entirety, including the Assessment Calculation Table (Appendix 3) and the Boundary Map. Reproduction and distribution of only Section VII of this Management District Plan violates the intent of this stamp and signature.

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APPENDIX 1 – MAXIMUM ANNUAL ASSESSMENT RATES

Year Commercial Non-Profit Housing
2023/24 $0.150000 $0.080000
2024/25 $0.154500 $0.082400
2025/26 $0.159135 $0.084872
2026/27 $0.163909 $0.087418
2027/28 $0.168826 $0.090041
2028/29 $0.173891 $0.092742
2029/30 $0.179108 $0.095524

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APPENDIX 2 – PBID LAW

*** THIS DOCUMENT IS CURRENT THROUGH THE 2020 SUPPLEMENT *** (ALL 2019 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994

CHAPTER 1. General Provisions

ARTICLE 1. Declarations

36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”

36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular l ocal benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important t ools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
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(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.

36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.

36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions

36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 55 DRPBID Management District Plan
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36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.

36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions.

36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.

36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.

36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.

36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.

36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622.

36612. “Owners’ association”
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“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding th is section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard , discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”

“Property” means real property situated within a district.

36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.

36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property.

36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment.

36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this p art requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.

36615.5. “Special benefit”

“Special benefit” means, for purposes of a property- based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.

36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law

36617. Alternate method of financing certain improvements and activities; Effect on other provisions

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This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment

36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter.

36620.5. Requirement of consent of city council

A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 pe rcent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to wheth er bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.

36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner 58 DRPBID Management District Plan
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to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the dist rict, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the b oundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years sha ll satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this a mount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property- based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improve ments, maintenance, or activities of a property -based district and that 59 DRPBID Management District Plan
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benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council.

36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hear ing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion o f the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.

36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, 60 DRPBID Management District Plan
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businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be pr ovided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses withi n the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property -based district, that property within the district will receive a special benefit.
(8) In a property -based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.

36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be prov ided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.

36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.

36629. Provisions and procedures applicable to benefit zones and business categories

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All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.

36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments

36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.

36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

62 DRPBID Management District Plan
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(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing

36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance

36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of 63 DRPBID Management District Plan
April 5, 2022

levying the assessments, and any change s in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.

36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, b ut is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal

36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues deriv ed from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment

36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
64 DRPBID Management District Plan
April 5, 2022

(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized represen tatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

65 DRPBID Management District Plan
April 5, 2022

APPENDIX 3 – MAP

66 DRPBID Management District Plan
April 5, 2022

APPENDIX 4 – PARCEL ASSESSMENT CALCULATIONS

MAP KEY APN TYPE LOT SIZE ASSESSMENT
1 538111001 COM 223,462 $33,519.30
2 538131016 COM 81,598 $12,239.70
3 538132005 COM 6,124 $918.60
4 538132006 COM 2,710 $406.50
5 538132009 COM 2,710 $406.50
6 538132010 COM 2,710 $406.50
7 538132011 COM 2,710 $406.50
8 538132013 COM 46,950 $7,042.50
9 538132014 COM 5,420 $813.00
10 538142016 COM 76,702 $11,505.30
11 538250001 COM 5,625 $843.75
12 538250002 COM 2,812 $421.80
13 538250003 COM 8,437 $1,265.55
14 538250004 COM 2,812 $421.80
15 538250014 COM 16,875 $2,531.25
16 538260001 COM 5,625 $843.75
17 538260002 COM 2,817 $422.55
18 538260003 COM 3,187 $478.05
19 538260004 COM 2,437 $365.55
20 538260007 COM 32,390 $4,858.50
21 538260009 COM 9,135 $1,370.25
22 538260013 COM 52,110 $7,816.50
23 538440001 NPH 254,650 $20,372.00
24 538440002 COM 21,450 $3,217.50
25 540071011 COM 2,710 $406.50
26 540071016 COM 5,213 $781.95
27 540071017 COM 10,840 $1,626.00
28 540071018 COM 5,395 $809.25
29 540072018 COM 62,428 $9,364.20
30 540081001 COM 5,375 $806.25
31 540081002 COM 5,375 $806.25
32 540081003 COM 4,031 $604.65
33 540081004 COM 4,031 $604.65
34 540081005 COM 5,375 $806.25
35 540081020 COM 21,758 $3,263.70
36 540081021 COM 6,795 $1,019.25
67 DRPBID Management District Plan
April 5, 2022

37 540081024 COM 5,906 $885.90
38 540081025 COM 2,531 $379.65
39 540081026 COM 15,849 $2,377.35
40 540082030 COM 1,152 $172.80
41 540082032 COM 5,940 $891.00
42 540082033 COM 62,525 $9,378.75
43 540091008 COM 4,300 $645.00
44 540091010 COM 14,063 $2,109.45
45 540091011 COM 5,420 $813.00
46 540091012 COM 2,710 $406.50
47 540091013 COM 5,420 $813.00
48 540091014 COM 2,700 $405.00
49 540091015 COM 2,710 $406.50
50 540091016 COM 5,400 $810.00
51 540091017 COM 11,250 $1,687.50
52 540091018 COM 2,812 $421.80
53 540091019 COM 18,755 $2,813.25
54 540092016 COM 36,087 $5,413.05
55 540092017 COM 29,774 $4,466.10
56 540092018 COM 6,701 $1,005.15
57 540140001 COM 3,750 $562.50
58 540140002 COM 7,500 $1,125.00
59 540140003 COM 5,625 $843.75
60 540140004 COM 2,812 $421.80
61 540140005 COM 5,625 $843.75
62 540140020 RES 5,650 $0.00
63 540140021 RES 3,390 $0.00
64 540140022 RES 5,040 $0.00
65 540140023 RES 2,825 $0.00
66 540140024 RES 2,812 $0.00
67 540140025 COM 5,625 $843.75
68 540140026 COM 2,812 $421.80
69 540140027 COM 2,812 $421.80
70 540140028 COM 2,817 $422.55
71 540150001 COM 5,625 $843.75
72 540150002 COM 5,625 $843.75
73 540150006 COM 5,625 $843.75
74 540150008 COM 8,437 $1,265.55
75 540150026 COM 2,812 $421.80
68 DRPBID Management District Plan
April 5, 2022

76 540150029 COM 11,249 $1,687.35
77 540420003 NPH* 8,250 $775.50
78 540420004 COM 8,437 $1,265.55
79 540420005 COM 5,625 $843.75
80 540460008 COM 3,354 $503.10
81 540460048 COM 241,279 $36,191.85
82 540460049 COM 25,091 $3,763.65
83 540480024 RES 1,278 $0.00
84 540480025 RES 1,100 $0.00
85 540480026 RES 1,100 $0.00
86 540480027 RES 1,100 $0.00
87 540480028 RES 1,100 $0.00
88 540480029 RES 1,498 $0.00
89 540480030 RES 1,278 $0.00
90 540480031 RES 1,100 $0.00
91 540480032 RES 1,100 $0.00
92 540480033 RES 1,416 $0.00
93 540480056 RES 1,063 $0.00
94 540480057 RES 964 $0.00
95 540480058 RES 964 $0.00
96 540480059 RES 964 $0.00
97 540480060 RES 964 $0.00
98 540480061 RES 964 $0.00
99 540480062 RES 964 $0.00
100 540480063 RES 964 $0.00
101 540480064 RES 964 $0.00
102 540480065 RES 1,173 $0.00
103 540480066 RES 1,040 $0.00
104 540480067 RES 855 $0.00
105 540480068 RES 855 $0.00
106 540480069 RES 855 $0.00
107 540480070 RES 855 $0.00
108 540480071 RES 855 $0.00
109 540480072 RES 855 $0.00
110 540480073 RES 855 $0.00
111 540480074 RES 855 $0.00
112 540480075 RES 855 $0.00
113 540480076 RES 855 $0.00
114 540480077 RES 847 $0.00
69 DRPBID Management District Plan
April 5, 2022

115 540480083 RES 849 $0.00
116 540480084 RES 859 $0.00
117 540480085 RES 859 $0.00
118 540480086 RES 859 $0.00
119 540480087 RES 859 $0.00
120 540480088 RES 859 $0.00
121 540480089 RES 859 $0.00
122 540480090 RES 859 $0.00
123 540480091 RES 859 $0.00
124 540480092 RES 1,045 $0.00
125 540480093 RES 900 $0.00
126 540480094 RES 900 $0.00
127 540480095 RES 900 $0.00
128 540480096 RES 900 $0.00
129 540480097 RES 900 $0.00
130 540480098 RES 900 $0.00
131 540480099 RES 900 $0.00
132 540480100 RES 900 $0.00
133 540480101 RES 900 $0.00
134 540480102 RES 900 $0.00
135 540480124 RES 1,191 $0.00
136 540480125 RES 1,027 $0.00
137 540480126 RES 1,027 $0.00
138 540480127 RES 1,027 $0.00
139 540480128 RES 1,027 $0.00
140 540480129 RES 1,027 $0.00
141 540480130 RES 1,027 $0.00
142 540480131 RES 1,027 $0.00
143 540480132 RES 1,191 $0.00
144 540480133 COM 3,310 $496.50
145 540480134 COM 3,310 $496.50
146 540480135 COM 1,655 $248.25
147 540480138 RES 4,603 $0.00
148 540480144 RES 871 $0.00
149 540062012 COM 90,003 $13,500.45
COM: Commercial
NPH: Non-Profit Housing
RES: Residential (Not Assessed)
* Mixed Used Parcel

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April 5, 2022

APPENDIX 5 – TOTAL ESTIMATED MAXIMUM COST OF

IMPROVEMENTS, MAINTENANCE, AND ACTIVITIES

The estimated maximum cost of the line items below was developed based on the estimated costs of providing services in the proposed DRPBID. The costs below are estimated; the actual line item costs will f luctuate. The table below shows expenditures from assessment and non -assessed funds.

Assessment funds are governed by Section VI. The total maximum budget may exceed the maximum listed in this table if parcel ownership changes results in parcels being assessed at a higher rate due to a higher estimated benefit.

Year Maintenance,
Safety and
Nuisance
Abatement
Marketing,
Promotions
and Business
Development
Capital
Improvements
Administration Contingency
/Reserve
Collection
Fees
Total
2023 $127,860.40 $68,552.80 $5,114.41 $38,264.74 $12,754.92 $2,550.99 $255,098.26 2024 $131,696.21 $70,609.38 $5,267.84 $39,412.68 $13,137.57 $2,627.52 $262,751.21 2025 $135,647.10 $72,727.67 $5,425.88 $40,595.06 $13,531.69 $2,706.35 $270,633.74 2026 $139,716.51 $74,909.50 $5,588.65 $41,812.91 $13,937.65 $2,787.54 $278,752.76 2027 $143,908.01 $77,156.78 $5,756.31 $43,067.30 $14,355.77 $2,871.16 $287,115.34 2028 $148,225.25 $79,471.48 $5,929.00 $44,359.32 $14,786.45 $2,957.30 $295,728.80 2029 $152,672.00 $81,855.63 $6,106.87 $45,690.10 $15,230.04 $3,046.02 $304,600.66 Total $979,725.48 $525,283.24 $39,188.97 $293,202.12 $97,734.09 $19,546.86 $1,954,680.77

71 MAP KEY APN-9 Owner TYPE COEF LOT SIZE 23-24 Open
Invoices
24-25

ASSESSMENT
24-25

ASSESSMENT
ROUDED
TOTAL DUE City Owned
1 538111001 KAISER FOUNDATION HOSPITALS COM 1 223,462 $33,519.30 $33,519.00 $33,519.00 2 538131016 KAISER FOUNDATION HOSPITALS COM 1 81,598 $12,239.70 $12,240.00 $12,240.00 7 538132011 WHITE CLARENCE & ANNIE M COM 1 2,710 $406.50 $407.00 $407.00 8 538132013 KAISER FOUNDATION HOSPITALS COM 1 46,950 $7,042.50 $7,043.00 $7,043.00 10 538142016 KAISER FOUNDATION HOSPITALS COM 1 76,702 $11,505.30 $11,505.00 $11,505.00 13 538250003 TRINITY COMMECIAL GROUP LLC COM 1 8,437 $1,265.55 $1,266.00 $1,266.00 15 538250014 PENTECOSTAL CHURCH OF GOD I M COM 1 16,875 $2,531.00 $2,531.25 $2,531.00 $5,062.00 16 538260001 TUN WIN S COM 1 5,625 $844.00 $843.75 $844.00 $1,688.00 17 538260002 GANDER THOMAS M TRE COM 1 2,817 $423.00 $422.55 $423.00 $846.00 18 538260003 1017 LLC COM 1 3,187 $478.05 $478.00 $478.00 19 538260004 1017 LLC COM 1 2,437 $365.55 $366.00 $366.00 20 538260007 MEGA INVESTMENT CO LLC COM 1 32,390 $4,859.00 $4,858.50 $4,859.00 $9,718.00 22 538260013 CATHOLIC CHARITIES/DIOCESE OAK COM 1 52,110 $7,816.50 $7,817.00 $7,817.00 23 538440001 BARRETT TERRACE HOUSING LP NPH 1 254,650 $20,372.00 $20,372.00 $20,372.00 $40,744.00 29 540072018 SAN FRANCISCO BART DISTRICT COM 1 62,428 $9,364.20 $9,364.00 $9,364.00 42 540082033 CONTRA COSTA COUNTY COM 1 62,525 $9,378.75 $9,379.00 $9,379.00 43 540091008 NASSER ABDO ALI & RAJA K TRE COM 1 4,300 $645.00 $645.00 $645.00 45 540091011 EAST BAY CTR PERFORMING ARTS COM 1 5,420 $813.00 $813.00 $813.00 $1,626.00 46 540091012 BAY AREA LEGAL AID COM 1 2,710 $406.50 $407.00 $407.00 47 540091013 1017 LLC COM 1 5,420 $813.00 $813.00 $813.00 48 540091014 TCG MACDONALD GROUP 1015 LLC COM 1 2,700 $405.00 $405.00 $405.00 49 540091015 TCG MACDONALD GROUP 1009 LLC COM 1 2,710 $406.50 $407.00 $407.00 50 540091016 EPM PROPERTIES LLC COM 1 5,400 $810.00 $810.00 $810.00 $1,620.00 51 540091017 TRUSSELL DAVID D & EVONNE Y COM 1 11,250 $1,688.00 $1,687.50 $1,688.00 $3,376.00 52 540091018 LIBERAL CATHOLIC CHURCH OF SF COM 1 2,812 $422.00 $421.80 $422.00 $844.00 53 540091019 NASSER ABDO ALI & RAJA K TRE COM 1 18,755 $2,813.25 $2,813.00 $2,813.00 57 540140001 VIERRA CHRISSIE LAI LING LOUIE COM 1 3,750 $562.50 $563.00 $563.00 58 540140002 HERNANDEZ ROSEMARIE COM 1 7,500 $1,125.00 $1,125.00 $1,125.00 59 540140003 SUNG LUCIEN K & DENISE W COM 1 5,625 $843.75 $844.00 $844.00 60 540140004 SUNG LUCIEN K & DENISE W COM 1 2,812 $422.00 $421.80 $422.00 $844.00 61 540140005 PATTERSON CHARLES A COM 1 5,625 $844.00 $843.75 $844.00 $1,688.00 67 540140025 CAMPOS ELISEO & DALILA COM 1 5,625 $844.00 $843.75 $844.00 $1,688.00 68 540140026 KULALY SAYED DAUD & PRISA COM 1 2,812 $422.00 $421.80 $422.00 $844.00 69 540140027 LIU JIANG TRE COM 1 2,812 $422.00 $421.80 $422.00 $844.00 70 540140028 CABRAL JORGE L & MARIA G COM 1 2,817 $422.55 $423.00 $423.00 71 540150001 PATTERSON CHARLES II COM 1 5,625 $844.00 $843.75 $844.00 $1,688.00 72 540150002 PATTERSON CHARLES II COM 1 5,625 $844.00 $843.75 $844.00 $1,688.00 74 540150008 AGUILAS CENTRO FAM CRISTIANO COM 1 8,437 $1,265.55 $1,266.00 $1,266.00 75 540150026 PATTERSON CHARLES II COM 1 2,812 $422.00 $421.80 $422.00 $844.00 76 540150029 BAYAT SHAYAN TRE COM 1 11,249 $1,687.35 $1,687.00 $1,687.00 77 540420003 CARQUINEZ ASSOCIATES LP NPH* 1.18 8,250 $776.00 $775.50 $776.00 $1,552.00 78 540420004 CARQUINEZ ASSOCIATES LP COM 1 8,437 $1,266.00 $1,265.55 $1,266.00 $2,532.00 79 540420005 CARQUINEZ ASSOCIATES LP COM 1 5,625 $844.00 $843.75 $844.00 $1,688.00 80 540460008 RICHMOND HOUSING ASSOCIATES LP COM 1 3,354 $503.00 $503.10 $503.00 $1,006.00 81 540460048 RICHMOND CITY CENTER LP COM 1 241,279 $36,191.85 $36,192.00 $36,192.00 82 540460049 GRANT ENTERPRISES LLC COM 1 25,091 $3,763.65 $3,764.00 $3,764.00 144 540480133 NASSER ABDO & RAJA COM 1 3,310 $496.50 $497.00 $497.00 145 540480134 NASSER ABDO & RAJA COM 1 3,310 $496.50 $497.00 $497.00 146 540480135 NASSER ABDO & RAJA COM 1 1,655 $248.25 $248.00 $248.00 149 540062012 SAN FRANCISCO BART DISTRICT COM 1 90,003 $13,500.45 $13,500.00 $13,500.00 $41,215.00 $200,685.50 $200,695.00 $241,910.00
2024-2025 DPRPID Proposed Tax Levy - Parcels to be levied 72 MAP KEY APN-9 Owner 23-24 Open
Invoices
24-25

ASSESSMENT
24-25

ASSESSMENT
ROUDED
TOTAL DUE City Owned
3 538132005 RICHMOND CITY OF $918.60 $919.00 $919.00 City Owned 4 538132006 RICHMOND CITY OF $406.50 $407.00 $407.00 City Owned 5 538132009 RICHMOND CITY OF $406.50 $407.00 $407.00 City Owned 6 538132010 RICHMOND CITY OF $406.50 $407.00 $407.00 City Owned 9 538132014 RICHMOND CITY OF $813.00 $813.00 $813.00 City Owned 11 538250001 RICHMOND CITY OF $843.75 $844.00 $844.00 City Owned 12 538250002 RICHMOND CITY OF $421.80 $422.00 $422.00 City Owned 14 538250004 RICHMOND CITY OF $421.80 $422.00 $422.00 City Owned 21 538260009 RICHMOND CITY OF $1,370.25 $1,370.00 $1,370.00 City Owned 24 538440002 RICHMOND CITY OF $3,217.50 $3,218.00 $3,218.00 City Owned 25 540071011 RICHMOND CITY OF $406.50 $407.00 $407.00 City Owned 26 540071016 RICHMOND CITY OF $781.95 $782.00 $782.00 City Owned 27 540071017 RICHMOND CITY OF $1,626.00 $1,626.00 $1,626.00 City Owned 28 540071018 RICHMOND CITY OF $809.25 $809.00 $809.00 City Owned 30 540081001 SUCCESSOR AGENCY $806.25 $806.00 $806.00 City Owned 31 540081002 SUCCESSOR AGENCY $806.25 $806.00 $806.00 City Owned 32 540081003 SUCCESSOR AGENCY $604.65 $605.00 $605.00 City Owned 33 540081004 SUCCESSOR AGENCY $604.65 $605.00 $605.00 City Owned 34 540081005 SUCCESSOR AGENCY $806.25 $806.00 $806.00 City Owned 35 540081020 SUCCESSOR AGENCY $3,263.70 $3,264.00 $3,264.00 City Owned 36 540081021 SUCCESSOR AGENCY $1,019.25 $1,019.00 $1,019.00 City Owned 37 540081024 SUCCESSOR AGENCY $885.90 $886.00 $886.00 City Owned 38 540081025 RICHMOND CITY OF $379.65 $380.00 $380.00 City Owned 39 540081026 SUCCESSOR AGENCY $2,377.35 $2,377.00 $2,377.00 City Owned 40 540082030 RICHMOND REDEVELOPMENT AGENCY $172.80 $173.00 $173.00 City Owned 41 540082032 RICHMOND REDEVELOPMENT AGENCY $891.00 $891.00 $891.00 City Owned 44 540091010 RICHMOND REDEVELOPMENT AGENCY $2,109.45 $2,109.00 $2,109.00 City Owned 54 540092016 RICHMOND CITY OF $5,413.05 $5,413.00 $5,413.00 City Owned 55 540092017 RICHMOND CITY OF $4,466.10 $4,466.00 $4,466.00 City Owned 56 540092018 RICHMOND CITY OF $1,005.15 $1,005.00 $1,005.00 City Owned 73 540150006 RICHMOND CITY OF $843.75 $844.00 $844.00 City Owned $0.00 $39,305.10 $39,308.00 $39,308.00
2024-2025 DPRPID Proposed Tax Levy - City of Richmond and Redevelopment Agency Assessed Properties 73 Richmond Main Street Initiative
2023 Highlights
Richmond Main Street Initiative
Spirit & Soul 2024
74 2023
A Year of Resilience, Renewal, and Remarkable Moments
75 Our Main Street Approach
Equitable Access
Resource hub for local businesses and residents
Clean & Safe
Neighborhood Ambassador Program, Community Green Space Upgrades Promotions & Marketing
Spirit & Soul Festival 2023, Downtown Holidays, Business Highlights Economic Vitality
Workshops, Training, Business Prospects
Community
Board of Directors, Committees, Community Partnerships
76 Arts, Culture, Education & Community
77 Clean & Safe
Community Green Space Garden
We're delighted to update you on the remarkable strides achieved through the generous support of the Clean CA Grant. Thanks to this funding, the Richmond Main Street Initiative (RMSI) and the Reentry Success Center (RSC) have initiated an inspiring transformation of our community green spaces.

By strategically enhancing our garden area, we've not only elevated the beauty of our surroundings but also set the stage for the implementation of the Rubicon Landscaping Program. This multifaceted initiative not only enhances aesthetic appeal but also promotes environmental sustainability and strengthens community bonds.

These endeavors signify significant progress in our ongoing commitment to cultivating a greener, more dynamic Richmond.

CFO
Vinny Viewer
Sales Director
Wendy WriterPhoto by:The Reentry Success Center
78 Clean & Safe
Neighborhood Ambassadors
Our Neighborhood Ambassadors play a pivotal role in our efforts, particularly in maintenance and safety initiatives. Their dedication and vigilance are instrumental in ensuring our community remains vibrant, welcoming, and secure. We deeply appreciate their invaluable contributions to the well-being of our neighborhood.

CFO
Vinny Viewer
Sales Director
Wendy WriterPhoto by:The Reentry Success Center
79 Economic Vitality
Richmond Main Street closed the year out with a strategic partnership alongside Square Headquarters in Oakland, Tidal, and CashApp. This collaboration represents a significant milestone in our commitment to empowering small businesses and fostering inclusivity.

From left to right: Ali Nasser, Abdo Alomari and
Marty Nasser. Photo by: Joe L. Fisher
80 Economic Vitality Supporting Small Businesses & Entrepreneurs ¡Éxito Empresarial! Our groundbreaking all-Spanish Small Business Mixer, in collaboration with CoBiz, Oakland
Latino Chamber, California Hispanic SBDC, and Contra
Costa Hispanic Chamber of Commerce, showcased
invaluable resources and prizes.

From networking opportunities to expert insights, we
empowered entrepreneurs en español, fostering growth
and success. Viva el comercio!
This inclusive event drew attendees not only from Contra Costa County but also from surrounding areas like
Oakland, Pittsburg and as far as Solano County, uniting diverse communities in the pursuit of business excellence.

Photo by: Richmond Main Street
81 Spotlight: Heart of Richmond
After a hiatus due to COVID, the much-awaited
Taste of Richmond returned with a bang! Thanks to
the collaborative efforts of Richmond Economic
Development and Richmond Main Street, our city
celebrated community, culture, and cuisine like
never before.

With overwhelming attendance and an outpouring
of love, it's clear: Richmond's spirit is as vibrant as ever! Here's to many more delicious memories
ahead.

Taste of Richmond Returns
Photo by: Empower Souls Studios
Save the Date: July 13, 2024
82 Community
Coalitions & Working Groups
California Main Street Alliance
City of Richmond Economic Development Commission
Healthy Richmond Economic Justice Action Team
Iron Triangle Neighborhood Council
Bay Ferry Project 2050
Richmond Transit Center
Partnerships
City of Richmond Chevron
ProLogis FHL Bank of San Francisco
CoBiz Richmond NIAD
Renaissance Center RCF

AMTRAK BART
AC Transit Kaiser
Council of Industries Bashworthy Events
Mechanics Bank Bay Area Girls Inc.

CORE Kiwanis
CFO
Vinny Viewer
Sales Director
Wendy Writer
Photo by: Richmond Main Street
83 Community
Richmond Main Street Volunteers ROCK!
An integral part of our success stems not only from our valuable partnerships but also from the invaluable
contributions of our dedicated volunteers. Together, we are able to achieve remarkable feats and make a lasting impact in our community. Thank you to all our volunteers for your unwavering support and commitment to our shared mission.

CFO
Vinny Viewer
Sales Director
Wendy Writer
Shots from Richmond/R.D. Lopez
Photo by: Empower Souls Studios
84 Promotions & Marketing
Leveraging our Platform to Support Local
Businesses
Empowering Local Businesses: Harnessing our platform's
capabilities, we've crafted a Google Maps guide to the
downtown corridor, simplifying access for the public to support local enterprises. This innovative tool serves as a beacon for community members, encouraging patronage
of nearby businesses and fostering economic growth
within our vibrant downtown area.

Featured Marty’s Grill
Photo by: MalcMedia
85 Promotions & Marketing
Unlocking Success: Mastering Marketing for Small
Businesses
Thanks to grant funding, we provided impactful branding and marketing workshops tailored to empower BIPOC and
minority-owned small businesses and entrepreneurs.

These sessions equipped participants with essential skills to leverage their brands effectively, fostering growth and sustainability within historically underrepresented
communities
Photo by: MalcMedia
86 Spotlight: Heart of RichmondSpirit & Soul made a triumphant return, igniting the community with a vibrant array of new features and
activities. From a thrilling kids' chess tournament to an inspiring art contest and the lively beats of Banda and Samba Funk, the event drew people of all ages, races, and backgrounds from across the Bay Area.

Fostering cultural exchange and celebration, Spirit & Soul proudly supported local food vendors and artisan vendors, enriching our community economically and culturally.

The festivities were heightened by the commemoration of Richmond Sol's 20th anniversary, a testament to two
decades of community resilience and empowerment.

Save the Date: October 12, 2024
2023 Spirit & Soul Festival
Photo by: Empower Souls Studios
87 Promotions & Marketing
Santa Sparked Smiles in Downtown Richmond
Amidst the holiday spirit, we united in fellowship and
community, welcoming Santa to Downtown. Through
collaboration with House of Loving Hands, FoodsCo,
and CoBiz, we spread joy by providing warm meals, fruit baskets, and toys to local families, creating cherished memories and moments of generosity.

Shots from Richmond/R.D. LopezPhoto by: Empower Souls Studios 88 We Take Pride in Every Detail
89 Thank you!
www.RichmondMainStreet.org
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Andrea Portillo-Knowles [email protected] Mickalea Manuel [email protected]
90

June 4, 2024

Finance Department

DATE: June 4, 2024
TO: Mayor Martinez and Members of the City Council
FROM:

Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager – Internal Services
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Subject:

Update Guiding Fiscal Policy and Purchasing Policy
FINANCIAL IMPACT: Adoption of updates to the Guiding Fiscal Policy and Purchasing Policy will not have a financial impact.

PREVIOUS COUNCIL
ACTION:

July 1, 2020
March 2, 2021
April 20, 2021

STATEMENT OF THE
ISSUE:

City Staff is requesting that the City Council review and adopt the updates to the Guiding Fiscal Policy and
Purchasing Policy. On April 20, 2021, the City Council approved the Guiding Fiscal Policies. Updates to the
Guiding Fiscal Policy are reflected in Section E,
Documentary Transfer Tax. The Purchasing Policy
(Administrative Manual, Policy Number: AP 522) was
revised on July 1, 2020. The Update to the Purchasing
Policy reflects the requirement for start and end dates for all contracts, adding terms for multi-year contracts, and to reflect procurement code Section 2.52.370.

AGENDA
REPORT
91

June 4, 2024
RECOMMENDED ACTION:

REVIEW and ADOPT updates to the Guiding Fiscal
Policy and Purchasing Policy – Finance Department
(Shasa Curl/ Nickie Mastay 510-620-6609/ Andrea Miller
510-620-6790/ Mubeen Qader 510-412-2077/ Antonio
Banuelos 510-620-6741).

DISCUSSION:

On April 20, 2021, the City Council approved the Guiding Fiscal Policies. The update to the Guiding Fiscal Policy is reflected in Section E, Documentary Transfer Tax. This section currently states:

The City will establish a baseline estimate of what portion of the Documentary Transfer Tax is considered recurring by calculating the mean monthly amount collected since the increase to the rate was approved by voters in 2018. The average amount of tax collected from this source will be recalculated in June and January every year to incorporate new data and the new average will be adopted as the baseline amount budgeted each year. Any excess tax collected through this source-amounts collected above the baseline-may be considered non-recurring revenue in that year and the City Council will prioritize how these funds are spent. The Council will prioritize and consider using recurring revenue to address recurring expenditures before non-recurring revenue sources are used to fund recurring expenditures.

Any amount collected since 2018 that is over $10,000,000 will skew the mean/average calculation upward, resulting in an overstatement of the baseline amount budgeted each year. To remedy this, Staff is proposing the following update to the Guiding Fiscal Policy, Section E:

The City will establish a baseline estimate of what portion of the Documentary Transfer Tax is considered recurring by calculating the mean monthly amount collected since the increase to the rate was approved by voters in 2018 excluding any transaction with a valuation over $10,000,000. The average amount of tax collected from this source will be recalculated in April June and January every of each year to incorporate new data and the new average will be adopted as the baseline amount budgeted for the new fiscal each year. This amount will be recalculated in January and adjustments will be included with the midyear budget update to City Council. Any excess tax collected through this source-amounts collected above the baseline-may be considered non- recurring revenue in that year and the City Council will prioritize how these funds are spent. The Council should will prioritize and consider using recurring revenue to address recurring expenditures. BeforeNon-recurring revenue sources should not be areused to fund recurring expenditures.

92

June 4, 2024
Additional edits were made in the following sections:
 II. A. C. D.
 III. F.
 IV. B. C.
 V. C.
 VI. B.
 IX. A. 3.

The Purchasing Policy (Administrative Manual, Policy Number: AP 522) was revised on July 1, 2020. The Update to the Purchasing Policy reflects the requirement for start and end dates for all contracts, adding term for multi-year contracts, and to reflect procurement code Section 2.52.370

DOCUMENTS ATTACHED:

Attachment 1 – Guiding Fiscal Policy
Attachment 2 – Purchasing Policy (Administrative Manual, Policy Number: AP522) 93 POLICY: Guiding Fiscal Policy
ESTABLISHED: April 20, 2021

RESOLUTION NO.: None
94 Updated: June 4, 2024 1 Attachment 1 - Guiding Fiscal Policies.docx I. Guiding Budgeting Policy
A. Budget development by the City Manager will be guided by a long -term financial plan developed in consultation with City Council, the Mayor and other key stakeholders and adopted by City Council.

B. If a department is projected to overspend by 1 percent of th eir total annual budget based on year-to-date performance as of the quarterly report, then the City should take corrective action to balance the budget.

C. The City will, to the extent possible, avoid using non -recurring revenues to fund ongoing programs or services. Non -recurring revenues are the portion of the government’s revenues that are not predictable to any degree and cannot be reasonably expected to continue year to year. Non-recurring revenue can also include settlements that are one-time payment.

D. Recurring revenues are the portion of the government’s revenues that can reasonably be expected to continue year to year, with some degree of predictability. Some revenue sources may have both non-recurring and recurring components. The goal of the City will be to provide transparency as to what portion of the revenue stream is reasonably expected to be collected each year.

E. The City will establish a baseline estimate of what portion of the Documentary Transfer Tax is considered recurring by calculating the mean monthly amount collected since the increase to the rate was approved by voters in 2018 excluding any transaction with a valuation over $10,000,000 . The average amount of tax collected from this source will be recalculated in April June and January every of each year to incorporate new data and the new average will be adopted as the baseline amount budgeted for the new fiscal each year. This amount will be recalculated in January and adjustments will be included with the midyear budget update to City Council. Any excess tax collected through this source -amounts collected above the baseline -may be considered non - recurring revenue in that year and the City Council will prioritize how these funds are spent. The Council should will prioritize and consi der using recurring revenue to address recurring expenditures. BeforeNon-recurring revenue sources should not be areused to fund recurring expenditures.

F. Capital asset acquisitions will not be treated as recurring expenditures.

G. If the City anticipates a Ge neral Fund deficit, new unrestricted funds must be considered first to support ongoing programs and close the deficit before funding new ones.

H. The use of unencumbered prior -year balances in all funds as well as other non - recurring revenues shall be scrutin ized and carefully limited to be used primarily for non-recurring expenditures. Non-recurring expenditures are defined as those that have a clearly recognized termination date connected to the completion of the identified purpose of the expenditure, even if the expenditure crosses multiple fiscal years.

I. The City Council must approve any changes to position control irrespective of the impact to the City’s operating budget.
95 Updated: June 4, 2024 2 Attachment 1 - Guiding Fiscal Policies.docx II. Special Revenue Funds and Enterprise Funds
A. Special revenue fund administrators must regularly evaluate and manage the balances within the fund to ensure that they are spent timely to achieve the fund’s intent.

B. Each enterprise fund shall reflect the true cost of operation, including direct and indirect costs of services provided by the General Fund.

C. Enterprise funds are a subset of special funds that should derive most of their revenues from charges, user fees and interest. Functions that are funded using enterprise funds should strive to be 100 percent self -supporting through annual reviews of their fee structures, charges for services, and other operating revenues and expenditures.

D. It shall be the goal of all special revenue and enterprise funds to fully reimburse the General Fund for all direct expenditures and related costs provided to support their programs. Related cost reimbursements shall be calculated using the most current Cost Allocation Plan rate, unless otherwise restricted by an ordinance or policy that has been approved by the City Council. In the ev ent that a special fund does not fully reimburse the General Fund, any remaining subsidy shall be reported annually through the budget process.

III. Reserve Policies
A. The City’s goal shall be to achieve 15 percent of its operating General Fund expenditures as a minimum reserve policy. The City must balance the need for adequate reserves with its responsibility to provide services to the residents of Richmond. In years when the City forecasts that total General Fund revenues will be less than the current year’s re venues, or anytime significant service reductions, such as layoffs or furloughs, are contemplated due to adverse financial conditions, use of the General Fund reserve must be considered to maintain existing services. Use of General Fund reserves must be au thorized by City Council resolution explaining the need for use.

B. Prior-year funds and surpluses will revert to their original funding sources with the exception of cost-recovery funds that will be permitted to maintain a reserve balance of 10 percent of t he actual expenditures from the previous fiscal year. Those funds reverting to the General Fund will be allocated to the unassigned fund balance.

C. In fiscal years where it becomes necessary for the City to use monies in the Reserve Fund such that the Reser ve Fund balance drops below the fifteen percent level, the City will initiate action in the subsequent year to replenish the Reserve Fund to the level of fifteen percent of General Fund expenditures. If use of Reserve Fund monies is less than one percent of General Fund receipts, the City shall attempt to replenish the fifteen percent balance in the subsequent fiscal year. If use of Reserve Fund monies is more than one percent of General Fund revenue, the City shall attempt to replenish the fifteen percent balance by one percent per year over a period of years as necessary to restore the Reserve Fund balance to the level of fifteen percent of General Fund expenditures.
96 Updated: June 4, 2024 3 Attachment 1 - Guiding Fiscal Policies.docx D. Risk Management Internal Service Fund reserves should be maintained at a level that adequately cover the City’s self -insurance indemnity risk exposure to City property, liability, health benefits and workers compensation obligations.

E. Reserve policies for equipment replacement internal service funds (e.g., Police CAD, Police RMS and Equipment R eplacement) will be incorporate into the annual budget based on projected remaining useful lives of underlying assets (based on years and usage) and, to the extent that such funds include operating costs, will also include a goal to achieve a planned opera ting reserve of not less than 10 percent of operating and maintenance costs. The goal of achieving a 10 percent reserve, however, will not supersede the budgetary needs of providing city services and workforce needs.

F. Enterprise Special fund administrators for the Port, Marina and KCRT enterprise funds are encouraged to establish a reserve policy for their funds where permitted and appropriate. These policies should set a target minimum reserve level that accounts for the unique characteristics and risks to the fund. The policies should also establish the appropriate uses of the reserves and set a timeframe both for meeting reserve targets if they have not yet been achieved and for replenishing reserves should they fall below the target minimum level.

IV. Encumbrances
A. Once funds have been encumbered, they cannot be expended for anything other than what was authorized under the original encumbering authority, which could include a purchase order, contract, authority for expenditure, or travel authority. This policy does not prohibit the use of change order capacity which would allow purchase orders to be amended as long as the purpose of the encumbrance has not changed from what was originally authorized. City departments may disencumber and re -encumber funds within the same fiscal year.

B. City departments may not increase a prior -year encumbrance, but they may disencumber one. Notwithstanding this Policy, prior -year encumbrances for capital projects may be increased if there is more money left on the contract. Only t he City Council may reprogram prior-year disencumbered funds. At the end of a fiscal year, all unencumbered funds will revert to their respective fund balance originating funding source or, if the originating source is the General fund, to the unassigned fund balance.

C. If funds are not disencumbered, they will continue to be regarded as obligated balances, thereby reducing the available unobligated account balances. Consequently, the timely disencumbrance of funds is necessary to reflect an accurate and up dated status on the availability of funds. As a rule, any encumbered funds that remain unspent for a period longer than one at the end of the fiscal year shall be unencumbered reverted. An exception to this policy applies to encumbrances for commodities procurements, which include supplies or equipment. These encumbered funds shall unencumbered and revert to fund balance if they remain unspent for a period longer than three years.

The City Manager is authorized to implement this Policy and to ensure fun ds are disencumbered at the appropriate time.
97 Updated: June 4, 2024 4 Attachment 1 - Guiding Fiscal Policies.docx

98 Updated: June 4, 2024 5 Attachment 1 - Guiding Fiscal Policies.docx V. Fund Balances/Accounting
A. The General Fund is the only fund in the City permitted to have a positive unassigned fund balance. Fund balances in any other fund outside of the General Fund should be earmarked monies either as restricted, committed, or assigned based upon the authority under which such categorizations have been given by Government Accounting Standards Board (GASB).

B. New and expanded unrestricted revenue sources should be first applied to support existing obligations prior to funding new programs.

C. Unrestricted General F und revenue streams shall not be designated as restricted or special revenue funds. This in no way precludes the City from making appropriations from unrestricted revenues to achieve specific policy goals either as part of the budget process or during the fiscal year.

D. Other than in the General Fund, unspent General Fund monies that were assigned to a specific purpose that are no longer applicable should not be reported as assigned fund balance, but rather, should be included in the unassigned fund balance of the General Fund by reporting those amounts as due to the General Fund. Fund balances will include amounts designated as “due to the General Fund” and “due from the General Fund” in budget reports accounting for the flow of funds.

VI. Fiscal Sustainability Planning
A. Service level or work force reductions based solely on anticipated or current budget deficits cannot be adopted by City Council until all other sources of funds including reserves and other fund balances have been considered to cover budget gaps.

B. Multi-year General Fund operating cost projections, which forecast revenues and expenditures, shall be prepared and updated each year, or as necessary, to identify and evaluate the financial condition of the City over a four -year period, at a minimum.

This forecast shall be reported to the City Council as part of the annual budget development process. Projections shall be developed using available data, historical trends, and an evaluation of anticipated future impacts to revenues and expenditures.

Departments shall prepare a forecast for each major special fund and special fund facing structural imbalance that they administer and present it with their annual budget request.

C. When initiating multi-year projects or adding new items to the budget with future-year expenditure requirements, the City shall consider its ability to continue to pay these future year expenses.

D. The City will pursue federal, state, and private grants but will carefully analyze the need for, and availability of, required financia l support of these programs beyond grant funding. City Council will determine whether grant funding supplants or augments current funding for programs. Any such financial support must be reported at the time that the City considers accepting the grant. Financial support includes, but is not limited to, an obligation for a current or ongoing City match and a need to maintain a service level following the termination of the grant.
99 Updated: June 4, 2024 6 Attachment 1 - Guiding Fiscal Policies.docx E. The City will continuously seek new revenues and pursue a diverse revenue base in order to limit the impact to the City from short -term fluctuations in any one revenue source. The City must consider taxes that are not regressive.

VII. Debt Management
A. Short-term debt in the form of Tax and Revenue Anticipation Notes will be considered as a viable option to support ongoing operations.

B. Long-term debt will not be used to support ongoing operations.

C. Capital leases may be used as a mid-term borrowing arrangement for fleet, equipment, and technology uses to the extent that the imputed interes t rate in any such capital lease is competitive with existing long -term borrowing rates, considers potential maintenance cost savings for assets under the capital lease, and that such costs are incorporated into the long-range financial forecast.

D. Long-term borrowing (three years or more) for capital facilities will be considered as an appropriate method of financial facilities that benefit more than one generation of users and to the extent that existing reserves or other one-time resources are not available.

E. The City will no longer be permitted to use interest rate swaps when issuing debt.

F. The City’s finance department present value analysis must identify the economic effect of any proposed refunding and shall periodically evaluate potential savings to the City from financing outstanding debt (Refundings). Savings will be analyzed on a present value basis with the goal of achieving a Present Value Savings of three percent of the refunded par amount for any one refunding transaction. The Finance Director may recommend a refunding that has economic benefit, but does not meet the Present Value Savings Goal of three percent; however, the Director must present to the Mayor and City Council the reasons for advocating for the refunding explaining the benefits and the costs.

G. The use of variable interest rate debt instruments should be analyzed as part of a strategy that benefits from the out-performance of the variable rate market to fixed rate debt, and to determine the appropriate level of risk exposure for the City to accept.

VIII. Private Developments
Private development of residential, commercial and/or industrial properties shall pay all contractual obligations for capital or other improvements that are necessary to serve the development and should not be subsidized by public funds except in cases where there is a direct financial benefit to the City that is at least fiscally proportional to the subsidy being offered to the developer. Should a development not move forward, in addition to any other contractual require ments owed to the City, the developer must reimburse the City for the amount of the subsidy provided to the developer.
100

Updated: June 4, 2024 7 Attachment 1 - Guiding Fiscal Policies.docx IX. Capital and Technology Projects
A. Objectives and Project Prioritization

1. A minimum five-year capital improvement plan will be developed as part of the budget process to identify capital projects based on a system of prioritization and considering funding resources that are available.

2. City Council will determine how capital projects are prioritized.

3. The City shall identify projects for funding on an annual basis through a systematic systemic and transparent process that is consistent with the City’s annual budget development process and that reflects the prioritization criteria detailed in Project Prioritization Criteria as detailed in number 4.

4. Project Prioritization Criteria – projects should meet one of the standards under each subheading and the criteria apply not only to projects in the 5-year capital plan, but also for projects applied for through the grant process. a) Resilience and Sustainability
(1) Project improves the health of the community and natural environment through sustainable designs with improved water resources and regional air quality and reduced greenhouse gas emission that contributes to climate change, open space and land for preservation, habitat protection and biological diversity, and enhanced urban runoff management.
(2) Project facilitates multiple transportation options (including walkability, bicycles, and public transportation) and reduces the need for auto-dependency
(3) Project promotes infill development, where appropriate. (4) Project incorporates design that meets or exceeds recognized Federal and State standards in the field of energy efficiency, such as State of California Title 24 Energy Efficiency Standards, or LEED building standards.
(5) Project results in greener neighborhoods and reduces or avoids the potential public exposure to pollutants, contamination and other hazards to public health and environment.
b) Impact to City Operations, Asset Condition, Annual Recurring Costs and Asset Longevity
(1) Project is necessary to meet the basic level of service needs. (2) Project avoids potential infrastructure failure.
(3) Project minimizes maintenance needs by improving
infrastructure and/or reducing future costs.
(4) Project delay would create significant future costs, or negative community impacts.
c) Equitable Community Investment and Economic Sustainability 101

Updated: June 4, 2024 8 Attachment 1 - Guiding Fiscal Policies.docx (1) Project contributes toward economic development and revitalization efforts.
(2) Project will benefit underserved communities including those with low - income households, low community engagement, limited or no access to the internet, and low mobility or access to transportation systems.
(3) Project benefits communities that have the highest population served per acre.
d) Project Readiness
(1) Project is ready to enter the phase corresponding to the funding requested (e.g., a design -build project with a completed environmental document will rank higher than a design -build project without a complete environmental document).
(2) Project shall be ranked based upon the delivery method.

Projects that can be delivered most expeditiously shall be preferred.
e) Funding Availability
(1) Projects that have higher leveraging of City funds against external funds (grant funds or cost sharing from outside entities) will receive greater priority.
(2) Project rank is increased based on assessment of the amount of funding needed to complete the current project phase and the entire project.
f) Multiple Category Benefit and Bundling Opportunities 1) Project reduces construction costs and community disruption by potentially bundling with adjacent projects.
2) Project provides for partnering or bundling opportunities with other local, state, or federal agencies (e.g., leverages shared resources).
3) Completion of the project sooner may provide significant financial benefits.
102

Updated: June 4, 2024 9 Attachment 1 - Guiding Fiscal Policies.docx

5. Cost Estimates
a) Cost estimating is an iterative process that should be done at significant milestones during the development of capital and technology improvement projects. Cost estimating should develop a greater degree of detail and accuracy at each milestone and provide a major budgetary control mechanism on every project.
b) For purposes of initial scoping, preliminary cost estimates may be based on industry standards or existing practices.
c) Once a project has been funded, cost estimates should be prepared after each applicable phase, such as space planning, preliminary design, conceptual design, final design (just prior to bid initiation), and on change orders during construction or implementation. d) Cost estimates should be as complete as possible based on the information available at milestones and should address such areas as CEQA or NEPA compliance, land acquisition, grant funding requirements, design, construction, furn iture, fixtures and equipment, software and hardware, contingency funding, costs associated with staffing, maintenance and other additional incremental costs that may be incurred once the project is complete.

6. Funding Requirements
a) Total requested funding s hould identify the total amount needed to complete the project, potential sources of funding including any applicable restrictions, options for phased implementation, and a timeline with milestones and the corresponding funding needed to accomplish each milestone.
b) The funding requirement should include the estimated amount needed to fund ongoing maintenance, programming, and operating needs of the project.

103
AP 522 – Pg 1
City of Richmond

ADMINISTRATIVE MANUAL

SUBJECT: Purchasing Policy

SECTION: Finance Department POLICY NUMBER: AP 522

INITIAL DATE PREPARED: October 25, 2011 LAST DATE REVISED: Juneuly 1, 20240

Section I

GENERAL

PURPOSE

To establish the manner by which all City procurement is to be conducted as well as to ensure City compliance with applicable laws relating to the expenditure of public funds.

POLICY

When authorized to procure material or service, all City employees shall follow this policy t o correctly and ethically process a procurement need and ensure the efficient use of public funds. All City rules, regulations, laws, resolutions and the City Purchasing Ordinance are incorporated herein by reference see the following chapters of the Municipal Code and the procurement standards in 2 CFR 200.317:

Chapter 2.52 – Contracting and Purchasing Procedures
Chapter 2.50 – Richmond Business Opportunity Ordinance
Chapter 2.56 – Local Employment Program
Chapter 2.60 - Living Wage Ordinance
Chapter 2.65 – Ban the Box Ordinance
Chapter 2.28 – Nondiscrimination Clauses
Sanctuary City Ordinance 12-18 N.S

OVERVIEW

The City’s Purchasing Ordinance and Procurement Policy are in place as your guideline to ensure materials and services are purchased in a legal and cost-effective manner. Keep in mind that services generally have some risk associated with them and typically require insurance documentation and a City Contract Agreement.

Most services will require a standard City agreement which can be found o n the City’s Intranet. Each agreement must be approved as to form by the City Attorney’s Office.

The purchasing functions are decentralized, with each Department/Division responsible for compliance with City policies and procedures. Purchasing responsibility and authority shall be delegated to the lowest possible level consistent with good business practice and sound financial management policy to the extent practical.

The following apply to all purchases made by the City of Richmond:

1. No purchase will be approved or undertaken unless an appropriation has been established, through either the adopted annual budget or City Council approval of additional appropriations. It is the responsibility of the Department/Division to maintain budget control of their individual budgets. Ultimate responsibility for the individual budget rests with the Department Director.

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2. Certain purchases are unique in nature and do not lend themselves to the process of competitive bidding. Therefore, these items are excluded from the competitive bidding and purchase order requirements. These items include, but are not limited to, County Services, debt service payments, and ongoing expenses for utilities or services (such as telephones, electricity, etc.)

3. No City employee shall have a direct or indirect financial interest in any contract or purchase of goods o r services entered into by the City, or shall derive any personal benefit from the City’s purchase of goods or services.

4. No City employee shall use the City’s purchasing procedures to obtain property for personal use, by misrepresenting to vendors for the purpose of obtaining price discounts for personal purchases.

5. No City employee shall draft or cause to be drafted any specifications for bids in such a way as to intentionally limit the bidding directly or indirectly to any one bidder.

SOLICITATION THRESHOLDS

The dollar limits for purchases are established by ordinance or resolution. Purchases shall not be split to avoid the required procedures or certain dollar limits. In summary, requisitioners are responsible to obtain quotes/bids as indicated below:

 Less than $3,000 – Solicit One Written Quote
 Between $3,000 - $5,000 – Solicit Two Written Quotes
 Between $5,000 - $50,000 – Solicit Three Written Quotes  Over $50,000 – Formal Sealed Bids/Proposals are Required

Formal procedures are used when the value of the purchas e/service is estimated to be greater than $50,000 or greaterannually. Informal procedures are used when the estimated value of the p urchase/service is less t han $50,000 annually.

Formal purchases may be solicited by either an Invitation For Bid (IFB), a Request For Proposals (RFP), or by a Request For Qualifications (RFQ).

Informal purchases may be solicited by either a Request For Quote or a Request for P roposal (RFP).

ISSUING THE QUOTE/BID/RFP/RFQ: Since all solicitations over $3,000 require competitive quotes, the issuing department shall should submit the solicitation to the Purchasing Division to post to the City’s BidsOnline System. The City utilizes this online registration and bidding system to notify businesses of various bid opportunities, news, and updates. The electronic bidding system provides an easy and accessible way to bid documents. Registered companies will receive customized emails n otifying them of specific bids and they will have the ability to search for bids, and download documents.This will ensure maximum exposure and competition. Also submit to Purchasing a list of potential firms to receive notice of the solicitation.

Exceptions: The informal/formal bid process may be bypassed in the following three instances:

1. In emergency situations to preserve life, health or property, the appropriate Department Head may dispense with obtaining quotes/bids/proposals to obtain materials/serv ices necessary in dealing with the emergency. The Emergency Justification Form must be approved by the Finance Director and City Manager prior to any purchase. If the purchase exceeds $10,000, immediately following the emergency, the appropriate Department Head shall prepare an agenda report to Council explaining the emergency and the items purchased. Emergency procurements should be made only to preserve life, health or property.

 Upon a natural disaster
 To correct or forestall a shutdown
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 To maintain essential public services
 Other unforeseeable events
 NOT because of poor planning

2. When one known supplier is available, the Department Head may complete the Sole Source Form. A sole source is the only possible source, not a preferred source. The Sole Source Form must be approved by the Finance Director. If the purchase is under $10,000 the City Manager must also approve the Sole Source. If the purchase exceeds $10,000, an agenda report for Council approval requesting an exception from the solicitation process and requesting awarding the purchase to the “Sole Source vendor” must be prepared.

3. When there exists other governmental contracts that are competitively bid (such as State Cont racts, DGS, WSCA, Sourcewell, OMNIA Partners, NJPA, Sourcewell etc.) that the City is eligible to use.

PROCUREMENT/PAYMENT METHODS

Purchase Order: The Finance Department has designated the purchase order as the primary and preferable procurement and payment method.

The Purchase Order (PO) is the main source of encumbering and procuring services and materials. The PO is used to communicate to a vendor the City’s terms and conditions, authorizes an encumbrance of City funds and is a contractual agreement to order goods and services. The PO is used to process payment and track expenditures in the City’s Financial System (MUNIS).

Important to our procurement process is the system of encumbrance accounting, which helps departments and Finance control department spending by knowing what amounts have been committed prior to the actual invoicing and payment of services. When a department makes a verbal commitment with a vendor and does not issue a purchase requisition and a purchase order is not created, it circumvents the entire budgetary control process. Verbal commitments with a vendor and the absence of a purchase order is not an acceptable practice.

Obtaining a purchase order from the Purchasing Division is the main method of encumbering City funds.

Accounts Payable will pay approved vendor invoices with an appropriate and valid purchase order number issued from the Purchasing Division. Invoices without an authorized purchase order may be returned to the vendor unpaid.

Credit/Procurement Card (CAL -Card): The CAL-Card is used as a purchase and payment method used to procure budgeted low value goods , typically up to $ 3,000. It may be used for higher value purchases on an approved basis. Cardholder and cardholder’s approving official are responsible for proper use of the CAL-Card program. See the CAL-Card Handbook, posted on the City’s intranet, for policies and procedures.

Direct Pay (Green Stamp): Green stamps are used as a limited payment method typically used for utilities, trust accounts , and one -time payments . Direct pay is not to be used for payment of service s or routine/re - occurring payment of goods. The use of a direct pay must be approved by the Finance Director or his/her designee and shall be limited to the following areas:

1. Utility payments, i.e. electricity, gas, water, sewer, etc.

2. Trust Accounts

3. One time vendors – The one-time vendor should be used for any vendor that will be utilized one time during a calendar year with an aggregate payment of less than $600.00 per calendar year. A vendor number will need to be created for payment. The issuing Department/Division will need to obtain a completed IRS form W-9 from the vendor.

4. Legitimate “emergency” needs, must have the Finance Director’s approval.

Electronic Funds Transfer (EFT): EFT is used as a limited payment method for transactions with large dol lar amounts which are time sensitive. Types of payments which are routinely processed by means of a n EFT are debt service payments, the purchase of securities , and medical benefits etc. 106

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Section II

GENERAL SUPPLIES, MATERIALS AND EQUIPMENT

PURPOSE

Provide guidelines for the purchase of general supplies, materials and equipment. Supplies, materials and equipment shall consist of any and all articles or things which shall be furnished to or used by any department.

In instances where goods and services are purchased together from one vendor, this section shall only apply if the predominant portion of the purchase is goods. (For example, a purchase of equipment for $2,000 with a $300 installation fee would be covered under this section of the policy. A repair of equipment with $2,000 in labor and $300 in parts would be covered under Section III General Trade Services).

INFORMAL/UNSEALED QUOTES < $50,000.00

Material/supply purchases exceeding $10,000 must be awarded by the City Council.

Informal bidding should be used to assure the most competitive price is received for an item, while avoiding the additional time and expense involved in formal bidding.

The Department/Division should make every reasonable attempt to obtain at least three quotes for all purchases between $5,000-$50,000. However, it is understood that at times it is neither practical nor cost effective to continue soliciting quotes until three quotes are received. In the event that three viable quotes are not received, the division shall document what steps were taken to obtain quotes, any vendors contacted that declined to bid, and, if applicable, why it is not practical to receive three quotes.

Documentation: Quotes received must be documented to the satisfaction of the Finance Dep artment. Ideally, documentation should include the name of the company bidding, the person giving the quote, items being quoted, the date and time of the contact, the amount quoted and any other relevant information.

Evaluating Quotes: The Department/Division shall evaluate the informal quotes received and determine the lowest most responsible quote. When evaluating quotes, please verify that like items are being evaluated (apples to apples). The City reserves the right to accept the quote which is in the best interest of the City.

Purchase Order: A purchase requisition detailing the vendor name, address, item(s) being purchased, total price including tax and shipping, and budget account to be charged shall be prepared in the MUNIS Financial System. A copy of the quotes/quote summary shall be attached to the purchase requisition. The Purchasing Division will review/approve the purchase requisition and convert the requisition to a Purchase Order.

FORMAL/SEALED BIDS > $50,000.00

Material/supply purchases exceeding $10,000 must be awarded by the City Council.

Formal bidding should be used to assure all possible vendors are given the opportunity to bid on major City purchases, thereby assuring the City that it has received the most competitive price . The formal process generally takes more time and expense than informal bidding.

The initiating Department/Division shall be responsible for completion of the formal bid process.

Bid Package: The initiating department shall prepare a bid form including detailed specifications for the item to be purchased. The following format is suggested for competitive bids.

1. Submission of Bids – Include date, time, location and bid number. Include a detailed list of the information the bid or proposal should contain. The public notice shall state the method of 107

AP 522 – Pg 5
submission, either paper bids to the City Clerk’s office or electronic bids through the City’s electronic bidding system.

2. Questions – List the name, address, and telephone number of the person to be contac ted concerning questions about the project.

3. Background – Provide as much background as necessary to give the bidder an understanding of the environment in which the job will be performed and to which the job relates.

4. Scope of work – Describe in detail the requirements for the job and detail specifications.

5. Desired project schedule – be as specific as possible.

6. Minimum and desirable qualifications – Be as specific as possible.

7. Performance Bond – Whether a performance bond is required and if so, the amount an d form of bidders security.

Notice inviting Bids: The initiating department shall also prepare a notice inviting bids that includes the following:

1. A general description of the item to be purchased.

2. A statement indicating where bid package, specifications and bonding requirements can be obtained.

3. A statement specifying the time place for the opening of the bid.

Bid Opening:

1. Sealed paper bids shall be submitted to the City Clerk’s office or electronically through the City’s electronic bidding system.

2. Paper bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the Invitation to Bid.

3. Electronic bid submission will remain unopened until the closing date and time. Said submission shall not be viewed by the public or City staff until the closing date and time.

4. Any bid received after the time specified in the notice shall be rejected.

5. When bidder’s security is required, it will be announced in the public notice inviting bids. The amount shall be determined at the time of preparation of the bid. It shall be in the form of cash, certified or cashier’s check, certificate of deposit in City of Richmond’s name, or bid bond made payable to the City of Richmond. When a bidder’s security is required, a bid shal l not be considered unless one of the aforementioned forms of security accompanies the bid.

Rejection of Bids: The City reserves the right to reject any and all bids, to accept or reject any one or more items of a bid, or to waive any irregularities or informalities in the bids or the bidding process if to do so is deemed to best serve the interest of the City.

Determining Lowest Responsible Bidder: Award to bid shall be to the lowest responsive and responsible bidder. The City reserves the right to accept that bid which is in the best interest of the City. When selecting the recommended bidder the Department/Division Head will take into consideration:

1. Price

2. Ability, capacity, and skill, warrantee

3. Ability to meet time requirements

4. Character, integrity, and reputation

5. Previous vendor experience

6. Financial resources available for contract performance

7. Ability to provide future maintenance and service, if necessary

Awarding the Bid: Once the bids have been evaluated, the Department Head/Division Head s hall prepare an agenda report to Council recommending the most responsive and responsible bidder. The Council shall then award the bid in a public meeting.

All contracts exceeding $10,000 must be awarded by the City Council. Otherwise:

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 Such purchases are void and not considered an obligation of the City.  Invoices may be returned to the contractor/service provider unpaid.  The person ordering the unauthorized purchase may be held personally liable for the costs of the contract.

Purchase Order: A purchase requisition detailing the vendor name, address, item being purchased, total price including tax and shipping, and budget account to be charged shall be prepared in the MUNIS Financial System.

A copy of the bid/bid summary shall be attached to the purchase requisition. The Purchasing Division will review/approve the purchase requisition and convert the requisition to a Purchase Order.

Change Orders for Product: The Purchasing Division is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

Change Orders for Services: The City Manager is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to t he City Council for approval.

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Section III

GENERAL TRADE SERVICES

PURPOSE

Provide guidelines for the purchase of trade contractual services. Trade services shall mean the repair, rental or maintenance of equipment, machinery and other City-owned or operated property. Included within this term are services necessary for the routine operation, repair or maintenance of existing buildings or improvements. The term does not include services rendered by professionals and other services which are unique in nature and not subject to competition.

In instances where goods and trade services are purchased together from one contractor/service provider, this section shall only apply if the predominant portion of the purchase is services. (For exampl e, a repair of equipment with $2,000 in labor and $300 in parts would be covered under this section of the policy . A purchase of equipment for $2,000 with a $300 installation fee would be covered under Section II- General Supplies, Materials and Equipment).

INFORMAL/UNSEALED QUOTES < $50,000.00

Trade services exceeding $10,000 must be awarded by the City Council.

Informal bidding should be used to assure the most competitive price is received for an item, while avoiding the additional time and expense involved in formal bidding.

The Department/Division shall strive to, whenever possible, solicit at leas t three quotes in writing. It is important that the specifications are accurate and comprehensive.

Documentation: Quotes received must be documented to the satisfaction of the Finance Department. Ideally, documentation should include the name of the company bidding, the person giving the quote, services being purchased, the date and time of the contact, the amount quoted and any other relevant information.

Evaluating Quote: The Department/ Division shall evaluate the informal quotes received and determine the lowest most responsible quote. The City reserves the right to accept that quote which is in the best interest of the City.

When selecting the recommended bidder the Department / Division Head will take into consideration:

 Price
 Ability, capacity, and skill.
 Ability to meet time requirements.
 Character, integrity, and reputation.
 Previous contractor/service provider experience.
 Financial resources available for contract performance.  Ability to provide future maintenance and service, if necessary.

Contract and Purchase Order:

1. A contract shall be prepared detailing the consultant’s name, service being purchased, total price of the service being purchased.

2. There shall be clearly identifiable starting and completion date of the contract. The consultant shall sign three original copies.

Formatted: Indent: Left: 0.5", No bullets or numbering Formatted: List Paragraph, No bullets or numbering
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1.3. Unless otherwise provided by law, a contract for supplies or services may be entered for a range of one (1) to three (3) years, with up to two (2) additional one (1) year extensions at the mutual option of the parties.

2.4. The issuing Department/Division will obtain a completed IRS form W -9 from the consultant.

3.5. Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.

4.6. If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website www.ci.richmond.ca.us/businesslicense if you want more information.

5.7. The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, business license, and evidence of the competitive solicitation, Council minutes and legal opinion shall be attached in the contract module.

6.8. A purchase requisition shall be prepared in the MUNIS Financial System.

7.9. The City Clerk, City Attorney, and Mayor/City Manager shall sign the three original copies of the contract.

8.10. One original copy of the executed contract shall be returned to the contractor/service provider , the issuing Department shall keep the second copy and the third copy shall remain in the City Clerk’s Office.

Renewals: Contracts for ongoing services may include annual renewal provisions for up to three additional years. However, all contracts that exceed $10,000 in overall contract amount must be approved by the City Council. Cost increases related to such renewals shall not exceed the Consumer Price Index (CPI) adjustments unless approved in advance by the Finance Director.

Change Orders for Product: The Purchasing Division is authorized to issue change orders for chan ges or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

Change Orders for Services: The City Manager is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

FORMAL/SEALED BIDS/PROPOSALS > $50,000.00

Trade services contracts exceeding $10,000.00 must be awarded by the City Council.

Formal bidding should shall be used to assure all possible contractor/service providers are given the opportunity to bid on major City contracts, thereby assuring the City that it has received the most competitive price. The formal process generally takes more time and expense than informal bidding.

The initiating Department/Division shall be responsible for completion of the formal bid process. However, the process shall be coordinated with the City Clerk’s Office and the Purchasing Division.

Formal Sealed bids must be publicly opened in the City Clerk’s Office or electronically via the City’s E- Procurement System.

Bid Package: The initiating department shall prepare a bid package including detail specifications for the services to be purchased. The following format is suggested for competitive bids/proposals:

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1. Submission of bids (or proposals) – Include date, time, and location. Include a detail list of the information the bid or proposal should contain. State the method of submission, either paper bids to the City Clerk’s Office or electronic bids through the City’s electronic bidding system. Formal sealed proposals are not required to have a public bid opening.

2. Questions – List the name, address, and telephone number of the person to be contacted concerning questions about the project.

3. Background – Provide as much background as necessary to give the bidder an understanding of the environment in which the job will be performed and to which the job relates.

4. Scope of work – Describes in detail the requirement for the job and detail specification

5. Desired project schedule – Be as specific as possible.

6. Minimum and desirable qualifications – Be as specific as possible

7. Performance Bond – Whether a performance bond is required and if so, the amount and form of bidders security.

8. Sample Contract – A sample of the contract that is expected to be used should be included in the bid package.

Notice Inviting Bids: The initiating department shall also prepare a notice inviting bids that includes the following:

1. A general description of the services to be purchased

2. A statement indicating where bid forms, specifications and bonding requirements can be obtained.

3. A statement specifying the time and place for the opening of the bids.

Bid Opening:

1. Sealed paper bids shall be submitted to the City Clerk’s office or electronically throu gh the City’s electronic bidding system.

2. Paper bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the Invitation to Bid.

3. Electronic bid submission will remain unopened until the closing date and t ime. Said submission shall not be viewed by the public or City staff until the closing date and time.

4. Any bid received after the time specified in the notice shall be rejected.

5. When bidder’s security is required, it will be announced in the public notice inviting bids. The amount shall be determined at the time of preparation of the bid. It shall be in the form of cash, certified or cashier’s check, certificate of deposit in City of Richmond’s name, or bid bond made payable to the City of Richmond. When a bidder’s security is required, a bid shall not be considered unless one of the aforementioned forms of security accompanies the bid.

Rejection of Bids/Proposals: The City reserves the right to reject any and all bids, to accept or reject any one item of a bid, or to waive any irregularities or informalities in the bids or the bidding process if to do so is deemed to best serve the interest of the City.

Determining Lowest Responsive and Responsible Bidder: Award of bid shall be to the lowest responsive and responsible bidder. The City reserves the right to accept that bid which is in the best interest of the City.

When selecting the recommended bidder the City staff will take into consideration:

1. Price

2. Ability, capacity, and skill.

3. Ability to meet time requirements.

4. Character, integrity, and reputation.

5. Previous contractor/service provider experience.

6. Financial resources available for contract performance.

7. Ability to provide future maintenance and service, if necessary.

On-Call (Ongoing) Professional Services

1. In some instances it is in the best interest of the City to have on-call contracts with multiple consultants for the same or very similar services. (I.e. services that can be defined as to scope of 112

AP 522 – Pg 10
work but not as to require events such as soils testing, contract building inspection services, architectural services, etc.) These services would best be handled by establishing an eligibility list and by entering into annual on-call processional service contracts.

2. The process for selecting firms for annual ongoing professional service contracts shall be generally the same as for other professional services contracts. However, multiple firms may be awarded an on-call contract based on the RFP/RFQ process and may be placed on the eligibility li st. Additional firms/individuals may also be awarded contracts and placed on the eligibility list at a later date, using the RFP/RFQ process without impacting contracts currently in place.

2. 3. As events occur and need arises, work may be assigned to the cons ultants on the eligibility list.

The Department Head shall solicit proposals from the consultants on the eligibility list or shall make a reasonable attempt to rotate work between consultants subject to availability and special needs.

Contract and Purchase Order:

1. A contract shall be prepared detailing the consultant’s name, service being purchased, total price of the service being purchased.

2. There shall be clearly identifiable starting and completion date of the contract.

3. Unless otherwise provided by law, a contract for supplies or services may be entered for a range of one (1) to three (3) years, with up to two (2) additional one (1) year extensions at the mutual option of the parties.

4. The issuing Department/Division will obtain a completed IRS form W-9 from the consultant.

5. Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.

6. If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website www.ci.richmond.ca.us/businesslicense if you want more information.

7. The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, business license, and evidence of the competitive solicitation, Council minutes and legal opinion shall be attached in the contract module.

8. A purchase requisition shall be prepared in the MUNIS Financial System.

9. The City Clerk, City Attorney, and Mayor/City Manager shall sign the contract.

10. One original copy of the executed contract shall be returned to the contractor/service provider.

1. A contract shall be prepared detailing the consultant’s name, service being purchased, and total price of the service being purchased. The consultant shall sign three original copies.

2. The issuing Department/Division will obtain a completed IRS form W -9 from the consultant.

3. Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.

4. If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website www.ci.richmond.ca.us/businesslicense if you want more information.

Formatted: Numbered + Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Tab after: 0.75" + Indent at: 0.75"
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5. The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, evidence of the competitive solicitation, minutes and legal opinion shall be attached in the contract module.

6. A purchase requisition shall be prepared in the MUNIS Financial System.

7. The City Clerk, City Attorney, and Mayor/City Manager shall sign the three original copies of the contract.

8. One original copy of the executed contract shall be returned to the contractor/service provider, the issuing Department shall keep the second copy and the third copy shall remain in the City Clerk’s Office.

Renewals: Contracts for ongoing services may include annual renewal provisions for up to three years.

However, all contracts that exceed $10,000 in overall contract amount must be approved by the City Council.

Cost increases related to such renewals shall not exceed the Consumer Price Index (CPI) adjustments unless approved in advance by the Finance Director.

Change Orders for Product: The Purchasing Division is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

Change Orders for Services: The City Manager is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

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Section IV

PROFESSIONAL SERVICES

PURPOSE

Provide guidelines for the purchase of professional services. Professional services are those activities performed by a consultant or firm who possesses a high degree or expertise in a particular profession. This would generally include (but not be limited to) architectural, landscape architectural, engineering, environmental, land surveying, construction project management, accounting/auditing, financial, legal, and other administrative services.

INFORMAL REQUEST FOR PROPOSAL OR REQUEST FOR QUALIFICATIONS < $50,000.00

Professional service contracts exceeding $10,000 must be awarded by the City Council.

An informal Request for Proposal (RFP) or a Request for Qualifications (RFQ) process shall be used for any solicitation under $50,000. These professional service agreements shall have sufficient documentation of background analysis to support the contract. Informal solicit ations should be used to assure quality services are received for a reasonable price.

The Department/Division shall strive, whenever possible, to solicit at least three qualifications/proposals in writing. It is important that the specifications are accurate and comprehensive.

Informal Request for Proposal or Request for Qualifications:

Documentation – Informal quotations must be documented to the satisfaction of the Finance Department.

Documents should include:

1. The name of the company

2. The person giving the quote

3. The date and time the quotes were received

4. Understanding of the required scope of services.

5. Specialized experience of the firm and its personnel relative to the required services.

6. References who can be contacted to verify past record of performance, i.e., completion of quality product, in a timely manner, and within budget constraints.

7. The capacity of the firm to perform the subject project within a required timeframe.

8. Estimated price

Evaluating Informal RFP/RFQ: The Department/Division Head or designee(s) shall select the consultant which, in their evaluation process, is the most qualified to perform the work. The evaluation and selection process shall be based upon the following considerations:

1. General quality and responsiveness to the request, including but not limited to:
 Responsiveness to the terms, conditions, and items of performance;  Grasp of the problem, work to be performed, and approach to be used

2. Organization and personnel making the proposal;
 Evidence of good organizational management practices.  Qualification of the personnel.
 Specialized experience of the firm and its personnel relative to the required services.  References who can be contacted to verify past record of performance (i.e., completion of a quality product in a timely manner and within budget constraints).  Previous consultant experience
 The final condition of the firm
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 Capacity of the firm to perform the subject project within a required timeframe

3. If appropriate, the price, in any of the following formats, may be considered.  Total price and price breakdown
 Price range
 Cost schedule

Negotiation: The Department Head or designee(s) shall discuss with the highest ranked firm(s) the requirements of the project, the scope of services needed to meet the requirements, a nd negotiate a reasonable fee/contract for the established work assignment.

Contract and Purchase Order:

1. A contract shall be prepared detailing the consultant’s name, service being purchased, total price of the service being purchased.

2. There shall be clearly identifiable starting and completion date of the contract.

3. Unless otherwise provided by law, a contract for supplies or services may be entered for a range of one (1) to three (3) years, with up to two (2) additional one (1) year extensions at the mutual option of the parties.

4. The issuing Department/Division will obtain a completed IRS form W -9 from the consultant.

5. Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.

6. If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website www.ci.richmond.ca.us/businesslicense if you want more information.

7. The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, business license, and evidence of the competitive solicita tion, Council minutes and legal opinion shall be attached in the contract module.

8. A purchase requisition shall be prepared in the MUNIS Financial System.

9. The City Clerk, City Attorney, and Mayor/City Manager shall sign the contract.

10. One original copy of the executed contract shall be returned to the contractor/service provider.

1. A contract shall be prepared detailing the consultant’s name, service being purchased, and total price of the service being purchased. The consultant shall sign three original copies.

2. The issuing Department/Division will obtain a completed IRS form W -9 from the consultant.

3. Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.

4. If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website www.ci.richmond.ca.us/businesslicense if you want more information.

5. The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, evidence of the competitive solicitation, minutes and legal opinion shall be attached in the contract module.

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7. The City Clerk, City Attorney, and Mayor/City Manager shall sign the three original copies of the contract.

8. One original copy of the executed contract shall be returned to the contractor/service provider, the issuing Department shall keep the second copy and the third copy shall remain in the City Clerk’s Office.

Renewals: Contracts for ongoing services may include annual renewal provisions for up to three additional years. However, all contracts that exceed $10,000 in overall contract amount must be approved by the City Council. Cost increases related to such renewals shall not exceed the Consumer Price Index (CPI) adjustments unless approved in advance by the Finance Director.

Change Orders for Product: The Purchasing Division is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

Change Orders for Services: The City Manager is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

FORMAL REQUEST FOR PROPOSAL OR REQUEST FOR QUALIFICATIONS > $50,000.00

Professional service contracts exceeding $10,000 must be awarded by the City Council.

A Formal sealed Request for Proposal (RFP) or a Request for Qualifications (RFQ) process shall be used, for any solicitation exceeding $50,000, thereby assuring the City that it has engaged the most qualified consultant available for the engagement. The formal solicitation process generally takes more time and expense than informal solicitations of qualifications.

The Formal Request for Proposal or Request for Qualifications shall include:

Developing the RFP or RFQ: Because RFP’s and RFQ’s ask for a subjective product, they should contain the greatest detail possible, and may include the following:

1. A precise description of the problem or objective

2. The services to be performed

3. The product to be provided

4. The anticipated time schedule for:
 Submittal of RFP/RFQ (date and time)
 Any pre-proposal conference (date, time and location)  Review and evaluation of the proposals
 Award of the contract
 Commencement of the work on the project
 Completion date

5. Evaluation factors and the relative importance of each

6. Expectations or limitations on the part of the City
 The format, form and quantity of any expected reports  The extent/nature of assistance/cooperation available from the City

7. Expected content of the RFP/RFQ, including:
 The overall description of techniques to be used
 Listing of similar services provided to other clients  Listing of available references to contact
 Description and qualifications of assigned lead and supporting personnel  Time and staff expected to be expended
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 Facilities and equipment to be used
 Portion of contract to be performed by sub-contractors  Subcontractors / Sub consultants qualifications
 Cost, in summary and total, and desired method of payment. The RFP/RFQ for services may, but is not required to; state the amount budgeted for the service.

8. Contractual requirements including, but not limited to:
 Prohibition against assignment
 Indemnification
 Insurance requirements
 Warranties
 Compliance with federal, state and City laws, rules and regulations  Compliance with any grant related regulations
 Sample contract

Issuing the RFP/RFQ

1. To ensure maximum exposure and competition, the issuing department shall submit the RFP/RFQ documents to the Purchasing Division to post to the City’s BidsOnline System. Also submit to Purchasing a list of potential firms to receive the RFP/RFQ.

2. A reasonable length of time between solicitations and closing dates must be allowed to provide potential respondents time for preparation in accordance with the complexity, the size of the project, and the scope of the advertising.

3. City staff may conduct conferences to explain the requirements of the project. A sufficient amount of time should be allowed after the RFP/RFQ has been issued to allow potential respondents to become familiar with the project. Any clarification or changes required to the RFP/RFQ, as a result of the conference, shall be added as a written amendment. A summary of the conference shall be provided to all prospective respondents receiving the request.

4. Amendments should be used to make any changes in quantities descriptions, schedules, or to correct defects or ambiguities in the original RFP/RFQ. Amendments are provided to ensure that all potential respondents are furnished with the same information with which to prepare proposals. Amendments to the RFP/RFQ shall be identified as such and shall require acknowledgment as such by firms receiving the RFP/RFQ within a reasonable time period before the closing date. If the time and date established for the receipt of proposals does not allow sufficient time for consideration and changes, the time and date will be modified by amendment.

Proposal Opening:

1. Proposal shall be submitted electronically through the BidsOnline System, to the issuing Department or to the City Clerk’s office and shall be clearly identified with the Proposal number on the envelope.

2. Any proposal received after the time specified in the RFP/RFQ shall be returned unopened.

3. Respondents may modify or withdraw their proposals prior to the established closing date and time, without penalty. However, any modifications submitted after the established closing date and time will not be accepted. Such modifications will be returned to the respondent, uno pened.

4. Proposals and modifications shall be shown only to the evaluation committee personnel, the City Clerk or his/her designee, the Department Head and the Finance Department until a recommendation is made to Council or all proposals have been rejected.

Rejection of Proposals: The City reserves the right to reject any and all proposals, to accept or reject any one or more items of a proposal, or to waive any irregularities or informalities in the proposal or the RFP/RFQ process if to do so is deemed to best serve the interests of the City.

Evaluation Factors and Method:

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1. Because unique services are requested, cost is not considered the primary selection criteria.

 General quality and responsiveness of the proposal, including but not limited to:
o Responsiveness to the terms, conditions, and items of performance; o Completeness and thoroughness of the proposal;
o Grasp of the problem, work to be performed, and approach to be used.  Organization and personnel making the proposal:
o Evidence of good organizational and management practices. o Qualification of the personnel.
o Specialized experience of the firm and its personnel relative to the required services.
o References who can be contacted to verify past record of performance, i.e., completion of a quality product, in a timely manner, and within budget constraints. o The financial condition of the firm.
o Capacity of the firm to perform the subject project within a required time frame  If appropriate, the price, in any of the following formats, may be considered. o Total price and price breakdown.
o Price range.
o Cost schedule.

2. A Selection Committee shall be formed to evaluate the submitted data and determine the consultants that should receive further consideration. The Committee shall be appointed b y the issuing department and may consist of more than one department. For example one or more people from the issuing department, one person from Finance, one person from the City Attorney’s office, an expert in the field or one or more employees from another department.

3. The Selection Committee may choose to interview all of the responding consultants, only the top few ranking consultants or to not perform interviews.

4. After the interviews (if applicable), the Selection Committee shall rank the consultants based on their proposals, interviews, and references.

4. On-Call (Ongoing) Professional Services

1. In some instances it is in the best interest of the City to have on-call contracts with multiple consultants for the same or very similar services (i.e. services that can be defined as to scope of work but not as to required events such as soils testing, contract building inspection services, architectural services, etc.) These services would best be handled by establishing an eligibility list and by entering into annual on-call processional service contracts.

2. The process for selecting firms for annual ongoing professional service contracts shall be generally the same as for other professional services contracts. However, multiple firms may be awarded an on-call contract based on the RFP/RFQ process and may be placed on the eligibility list. Additional firms/individuals may also be awarded contracts and placed on the eligibility list at a later date, using the RFP/RFQ process without impacting contracts currently in place.

3. As events occur and need arises, work may be assigned to the consultants on the eligibility list.

The Department Head shall make a reasonable attempt to rotate work between consultants subject to availability and special needs or by soliciting proposals from the consultants on the eligibility list.

Negotiation: The Department Head or designee(s) shall discuss with the highest ranked firm(s) the requirements of the project, the scope of services needed to meet the requirements, and negotiate a reasonable fee/contract for the established work assignment.

Awarding the Contract:

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The Department Head/Division Head shall prepare an agenda report to City Council recommending the most responsive consultant. The Council shall then award the contract in a public meeting. All contracts exceeding $10,000 must be awarded by the City Council. Otherwise:

1. Such purchases are void and not considered an obligation of the City.

2. Invoices may be returned to the contractor/service provider unpaid.

3. The person ordering the unauthorized purchase may be held personally liable for the costs of the contract.

Contract and Purchase Order:

1. A contract shall be prepared detailing the consultant’s name, service being purchased, total price of the service being purchased.

2. There shall be clearly identifiable starting and completion date of the contract.

3. Unless otherwise provided by law, a contract for supplies or services may be entered for a range of one (1) to three (3) years, with up to two (2) additional one (1) year extensions at the m utual option of the parties.

4. The issuing Department/Division will obtain a completed IRS form W -9 from the consultant.

5. Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.

6. If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website www.ci.richmond.ca.us/businesslicense if you want more information.

7. The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, business license, and evidence of the competitive solicitati on, Council minutes and legal opinion shall be attached in the contract module.

8. A purchase requisition shall be prepared in the MUNIS Financial System.

9. The City Clerk, City Attorney, and Mayor/City Manager shall sign the contract.

10. One original copy of the executed contract shall be returned to the contractor/service provider.

1. A contract shall be prepared detailing the consultant’s name, service being purchased, and total price of the service being purchased. The consultant shall sign three original c opies.

2. The issuing Department/Division will obtain a completed IRS form W -9 from the consultant.

3. Proof of insurance in accordance with the contract shall be obtained.

4. If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website www.ci.richmond.ca.us/businesslicense if you want more information.

5. The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, evidence of the competitive solicitation, minutes and legal opinion shall be attached in the contract module.

6. A purchase requisition shall be prepared in the MUNIS Financial System.

7. The City Clerk, City Attorney, and Mayor/City Manager shall sign the three original copies of the contract.

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8. One original copy of the executed contract shall be returned to the contractor/service provider, the issuing Department shall keep the second copy and the third copy shall remain in the City Clerk’s Office.

Renewals: Contracts for ongoing services may include annual renewal provisions for up to three additional years. However, all contracts that exceed $10,000 in overall contract amount must be approved by the City Council. Cost increases related to such renewals shall not exceed the Consumer Price Index (CPI) adjustments unless approved in advance by the Finance Director.

Change Orders for Product: The Purchasing Division is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

Change Orders for Services: The City Manager is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price. Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval.

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Section V
Procurement During a Proclaimed Emergency or Disaster

PURPOSE

This Policy modifies the City’s normal pu rchasing practices (pursuant to Municipal Code -Chapter 2.52 – Contracting and Purchasing Procedures) to assure that, in both emergency and exigent circumstances caused by a proclaimed disaster or emergency, the City is able to acquire the goods and services required to address an immediate threat to life safety, public health, or to eliminate or reduce an immediate threat of significant damage to improved public and private property through cost -effective measures while still maintaining an effective purcha sing process and complying with applicable local and state purchasing laws. Where the City is included in a major disaster or emergency declared by the President of the United States, this Policy also assures that City procurements comply with Federal regu lations appli cable to FEMA disaster grant reimbursement as defined in Title 2 of the Code o f Federal Regulations, Part 200 (2CFR Part 200).

Notwithstanding the terms of this policy, nothing contained herein shall conflict with Federal procurement regulations as currently defined in 2 CFR Part 200.

DEFINITIONS

“Proclaimed Emergency or Disaster” exists if

1. The Governor has declared a state of emergency for an area which includes the geographic ter ritory of the City; or

2. The City Manager, Police Chief, or Public Works Director of the City has declared an emergency in the City;
“Exigent Circumstances” are situations in which

1. A disaster or emergency has been proclaimed, and

2. The public need for goods and services required to address immediate th reats to life safety, pub lic health, or to eliminate or reduce an immediate threat of significant damage to improved public and private property through cost-effective measures will not permit competitive solicitation. “Purchase(s)” as defined in this po licy means the purchase(s), rental(s) or lease(s) of goods or services related to a Proclaimed Emergency or Disaster.
“Simplified Acquisition Threshold” means the dollar amount below which a non -Federal entity may purchase property or services using small purchase methods, as set forth in Title 2 of the Code of Fed eral Regulations, Part 200, as it may be amended from time to time. Simplified Acquisition Procedures are described in Federal Acquisition Regulations (FAR) Part 13.

DELEGATIONS OF PURCHASING AU THORITY IN EXIGENT CIRCUMSTANCES

If the City Manager or his/her designee determines that goods and services must be procured before the Elected governing board is able to assemble and approve purchases, the City Manager has authority, subject to the limitations set forth in sub-paragraphs (a) and (b), to approve the immediate rental or purchase of any equipment, supplies, services or other items necessary to respond to an immediate threat to life safety, public health, or to eliminate/reduce an immediate t hreat of significant dam age to improved public and private property through cost-effective measures.

(a) Limits of Single Purchase Authority.
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The City Manager, shall have the authority to make individual purchases up to a maximum of $150,000 without prior City Council approval.
(b) Limits of Aggregate Purchase Authority.

The City Manager shall have the authority to make aggregate purchases up to a maximum of $1,000,000 without prior City Council approval.

All procurements that exceed the City Council’s approval threshold of $10,000 shall be presented to City Council for ratification as soon as possible.

Delegation for purchasing authority to EOC Director or the Finance Director The EOC Director, or the Finance Director , shall be designees of the City Manager at any time that the City Manager is not available to approve purchases as allowed in this sec tion.

Sub-delegation of Purchasin g Authority to Department Heads If neither the City Manager nor the EOC Director or Finance Director is available, the police depa rtment watch commander, duty fire battalion chief, and/or duty public works department director have authority to rent or purchase from the nearest available source any equipment, supplies, services, or other items necessary for his or her department to r espond to an immediate threat to life, public health, or safety, or to eliminate/reduce an immediate threat of significant damage to improved public and private property through cost - effective measures, up to a maximum of $150,000.

Administrative Procedur es/Reporting Requirements
 As soon as possible after purchases are made under this section, the City Manager, EOC Director, Finance Director or department head shall submit to the Purchasing Division a requisition and a nota tion that the commodity has been ordered on an emergency basis from the vendor designated.  If the City Manager/EOC Director/Finance Director is unavailable, and the delay in getting his/her signature would imperil life safety, public health or improved property, the police department wat ch commander, duty fire battalion chief, and/or duty public works department director or his/her designee may approve the emergency purchase of $150,000 or more.  The Purchasing Division shall have the authority to approve all disaster related purchases un der $150,000.
 The Purchasing Division will expedite the verification of funds available and complete the preparation of the purchase order.

PROCUREMENT PROCEDURES IN EXIGENT CIRCUMSTANCES

Upon receipt of requisitions under Section V, the Purchasing Division shall prepare purchase orders for the emergency equipment, supplies, services or other items in accordance with the requirements of this section.

Exempt Purchases
Purchases up to $150,000 shall not be required to be formally bid. Purchases greater th an $150,000 may be made following the procedures specified in this section. The signature(s) of the City Manager, Purchasing Division and/or Department Head are still required as provided in Section V.

Justification of Sole Source or No-bid Contracts
Where exigent circumstances require immediate procurement from the nearest available source, (a) the Procurement Officer shall use the "Justification Form For Emergency or Sole Source or No-Bid Purchase."
(b) Procurement should be limited to that portion of the work that must be performed immediately, allowing subsequent procurement by competitive proposals of the remainder of the work.
(c) Emergency Sole Source or No Bid acquisitions shall be necessary for one of the following reasons:
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(i) Placement of emergency protective measures
(ii) Procurement of scarce commodities, goods, or services (iii) Acquisition or rental of emergency equipment
(iv) Emergency consulting services
(v) Emergency road clearance
(vi) Other emergency requirements.

Provision for Altern ate Bid Solicitation Procedures
The City's normal requirements for sealed bids shall not apply to acquisitions under Section V . Howev er, the Procurement Officer shall conduct telephonic or other electronic bid solicitation from potential vendors or suppliers, in a n effort to obtain multiple competitive proposals when and if time allows in light of the exigent circumstances; however, all quotations must be fully documented as to the details of the purchase and contain a scope of work if at all possible and a not-to-exceed contract limit.

Locations of Postings for Requests for Proposals or Solicit ation of Bids The Procurement Officer may modify normal requirements for public posting of requests for proposals or solicitation of bids. Notices soliciting bids or requests for proposals shall be posted at the Emergency Operations Center or Alternate Emergency Operations Center, if the Primary Emergency Operations Center is not being used.

Length of Time for Posting Requests for Pr oposals or Solicitation of Bids The Procurement Officer may shorten the normal bid period from 14 days to 24 hours as needed to deal with the emergency circumstances and to expedite the award of contracts for emergency equipment, goods, or services. The Procurement Officer should seek to assure that the shortened bid period allows multiple suppliers to submit bids.

Number of Bids Required
Solicited bids that are non-responsive do not count towards the minimum number of bids required when there is a declared emergency or disaster in the Jurisdiction. All such no-bids must be documented as to time, date and person or company contacted, with a reason for the no-bid, if possible.

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Section VI
Purchases with Federal Grant Funds

The following section is being added to the Purchasing Policy to establish standards for the procurement of supplies, equipment, real property and other services as required by 2 CFR 200.317 through 200.326 to comply with the Uniform Administrative Requirements, Cost Principles, and Audit R equirements for Federal Awards commonly called “Uniform Guidance”.

o When using federal grant funds, follow applicable state statutes and rules and local policies only to the extent that those statutes, rules, and policies do not conflict with the Uniform Administrative Requirements (UAR) outlined below. 2 CFR 200.318(a)

o Contract performance and payments must be monitored during the course of the contract. 2 CFR 200.318(b).

o Written standards of conduct and Conflict of Interest:
 No employee, officer, or agent must particip ate in the selection, award, or administration of a contract supported by a federal award if he or she [the employee, officer, or agent], any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ
 the employee, officer, or agent;
 an immediate family member of the employee, officer, or agent; or  the partner of the employee, officer, or agent
has a financial or other interest in or will receive a tangible personal benefit from a firm considered for the contract. Officers, employees, and agents must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. 2 CFR 200.318(c)(1)
o Before starting a procurement process:
 Review all proposed procurements to avoid unnecessary/duplicative purchases of equipment, supplies, and services. Consider whether it will it save money/time to consolidate procurements; if so, consolidate. If relevant, consider whether a lease or a purchase is the most economical approach (and document how you came to your decision). 2 CFR 200.318(d).
 Look for state or local intergovernmental agreements (such as competitive bidding group purchasing programs, state term contracts, GSA contracts, or formal intergovernmental agreem ents—but get awarding agency approval before using one of those agreements.
2 CFR 200.318(e).

Purchasing Guidelines

o Documentation
 Keep records showing:
 Basis for vendor selection
 Documentation of lack of competition when competitive bids or offers are not obtained  Why you chose a specific procurement method;
 The basis for your award (why did you select the contractor or vendor you selected? Why did you reject the others?);
 The basis for the contract price; and
 Any other significant decisions that were a part of the procurement process.

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o Award only to “responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement.” In determining which contractors are responsible, you must consider “matte rs such as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.” 2 CFR 200.318(h). (Note: This means that your solicitation documents must ask for information that will allow you to assess whether a contractor is “responsible.”)

o Keep records to detail the history of each procurement. These records must include, at least, records showing your rationale for (1) the method of procurement, (2) the selection of contract type, (3) contractor selection or rejection, and (4) the basis for the contract price. 2 CFR 200.318(i)

o Prohibit awarding time and materials type contracts unless (1) you have determined that no other contract is suitable and (2) the contract includes a ceiling price that the contractor exceeds at its own risk. The UAR defines a time and materials type contract as “a contract whose cost to a non‐Federal entity is the sum of: (1) the actual cost of materials; and (2) direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.” 2 CFR 200.318(j). For the purposes of this policy, the term “non-Federal Entity” means the City of Richmond and/or the Housing Authority for the City of Richmond.

o Restricting competition. The following actions on procurements funded with federal grants are prohibited:
 Allowing contractors that develop or draft specifications, requirements, statements of work, invitations for bids, or requests for proposals to compete for such procurements;  Placing unreasonable requirements on firms for them to qualify to do business (if you’re not sure if a requirement is unreasonable, ask the Federal awarding agency);  Requiring unnecessary experience or excessive bonding;  Permitting noncompetitive pricing practice s between companies;  Awarding contracts to consultants on “retainer” contracts;  Permitting organizational conflicts of interest
 Specifying a brand name product without permitting an equal product to be offered, and without describing the performance requirements that must be met for a product to qualify as an equal;
 Acting arbitrarily in awarding contracts. 2 CFR 200.319(a).

o Prohibit awards based on local geographic preferences, except where applicable Federal statutes expressly mandate or encourage geographic preference. However, geographic location may be a selection criteria when awarding contracts for architectural or engineering services, provided that using such criteria “leaves an appropriate number of qualified firms” to compete for the work, “given the nature and size of the project.” 2 CFR 200.319(b).

o All solicitations must identify (1) all requirements which the offerors must fulfill and (2) all other factors to be used in evaluating bids or proposals. 2 CFR 200.319(c)

o If you use prequalified lists of entities or products when procuring goods or services, make sure those lists are “current and include enough qualified sources to ensure maximum open and free competition,” and do not preclude other potential entities or products from participating in the solicitation. 2 CFR 200.319(d).

Methods of procurement to be followed

o Procurement by sealed bids require formal advertising. Bids are publicly solicited (Post to the BidsOnline System) and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction.
 In order for sealed bidding to be feasible, the following conditions should be present:
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 A complete, adequate, and realistic specification or purchase description is available;  Two or more responsible bidders are willing and able to compete effectively for the business; and
 The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.  If sealed bids are used, the following requirements apply:
 The invitation for bids must be publicly advertised, providing suppliers s ufficient response time prior to the date set for opening the bids;
 The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;  The bids must be opened publicly at the time and place prescribed in the invitation for bids;  A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and  Any or all bids may be rejected if there is a sound documented reason. 2 CFR 200.320(c)  Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost - reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:
 Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;
 Proposals must be solicited from an adequate number of qualified sources;  The non-Federal entity must have a written method for conducting technical evaluations of the proposals received and for selecting recipients;
 Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and  The non-Federal entity may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort. 2 CFR 200.320(d)
 Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:
 The item is available only from a single source;
 The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
 The Federal awarding agency expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or
 After solicitation of a number of sources, competition is determined inadequate. 2 CFR 200.320(f)

o Take certain steps to assure that minority firms and women’s business enterprises are used when possible. These steps are:
 Place qualified small and minority businesses and women’s business enterprises on solicitation lists;
 Assure that small and minority businesses and women’s business enterprises are solicited whenever they are potential sources;
 Divide total requirements into smaller tasks or quantities to permit maximum participation by small and minority businesses and women’s business enterprises;  Establish delivery schedules which encourage participation by small and minority businesses and women’s business enterprises;
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 Use the services and assistance of the Small Business Administration (http://www.sba.gov) and the Minority Business Development Agency of the Department of Commerce (http://www.mbda.gov); and
 Require prime contra ctors to take the same steps listed above. 2 CFR 200.321

Contract cost and price
o Perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold ($150,000), including contract modifications. Make the Independent Cost Estimates (ICE) before receiving bids or proposals. 2 CFR 200.323(a)

o Negotiate profit as a separate element of the price (1) for each contract in which there is no price competition and (2) in all cases where cost analysis is performed. 2 CFR 200.323(b)

o A prohibition on using “cost plus a percentage of cost” or “percentage of construction cost” methods of contracting. 2 CFR 200.323(d)

Federal Awarding Agency Review

o The non-Federal entity must make available, upon request of the Federal awarding agency or pass- through entity, technical specifications on proposed procurements where the Federal awarding agency believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the non-Federal entity desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase . 2 CFR 200.324(a)

o The non-Federal entity must make available upon request, for the Federal awarding agency pre- procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:
 The non-Federal entity's procurement procedures or operation fails to comply with the procurement standards in this part;
 The procurement is expected to exceed the Simplified Acquisition Threshold ($150,000) and is to be awarded without competition or only one bid or offer is received in response to a solicitation;  The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a “brand name” product;
 The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or  A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold. 2 CFR 200.324(b)

o The non-Federal entity is exempt from the pre-procurement review in the above paragraph if the Federal awarding agency determines that its procurement systems comply with the standards of this part.  The non-Federal entity may request that its procurement system be reviewed by the Federal awarding agency to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high -dollar funding, and third party contracts are awarded on a regular basis;
 The non-Federal entity may self-certify its procurement system. Such self-certification must not limit the Federal awarding agency's right to survey the system. Under a self-certification procedure, the Federal awarding agency may rely on written assurances from the non-Federal entity that it is complying with these standards. The non-Federal entity must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review. 2 CFR 200.324(c)

Bonding requirements
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o For construction or facility improvement contracts or sub contracts exceeding the Simplified Acquisition Threshold, the Federal awarding agency may accept the bonding policy and requirements of the local agency provided that the Federal awarding agency has made a determination that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:
 A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid guara ntee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. 2 CFR 200.325(a)
 A performance bond on the part of the contractor for 100 percent of the contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. 2 CFR 200.325(b)  A payment bond on the part of the contractor for 100 percent of the contract price. A “payment bond” is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract. 2 CFR 200.325(c)

Contracting Provisions

Appendix II to Part 200 - Contract Provisions for Non-Federal Entity Contracts Under Federal Awards In addition to other provisions required by the Federal agency or non -Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisi ons covering the following, as applicable. (A) Remedies: Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violat e or breach contract terms, and provide for such sanctions and penalties as appropriate. (B) Termination: All contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement.
(C) Equal Employment Opportunity: Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” ( 30 FR 12319, 12935, 3 CFR Part, 1964- 1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” (D) Davis-Bacon Act, as amended: ( 40 U.S.C. 3141- 3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non -Federal entities must include a provision for compliance with the Davis-Bacon Act ( 40 U.S.C. 3141- 3144) as supplemented by Department of Labor regulations ( 29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non -Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act: ( 40 U.S.C. 3145), as supplemented by Department of Labor regulations ( 29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work 129

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Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of t he compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
(E) Contract Work Hours and Safety Standards Act: ( 40 U.S.C. 3701- 3708). Where applicable, all contracts awarded by the non-Federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations ( 29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. (F) Rights to Inventions Made Under a Contract or Agreement: If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.
(G) Clean Air Act: ( 42 U.S.C. 7401- 7671q.) and the Federal Water Pollution Control Act ( 33 U.S.C. 1251- 1387), as amended - Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act ( 42 U.S.C. 7401- 7671q) and the Federal Water Pollution Control Act as amended ( 33 U.S.C. 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). (H) Debarment and Suspension: (Executive Orders 12549 and 12689) – Verify that a vendor is not debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Confirm and document that vendors are not on the federal government’s Excluded Party list found at www.sam.gov.
(I) Byrd Anti-Lobbying Amendment: ( 31 U.S.C. 1352) - Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not use, and has not used, Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award.

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ATTACHMENT A

City of Richmond
RFP/RFQ Evaluation Committee Guidelines
(Sample Documents)

The Evaluation Committee (EC) has the authority to review and evaluate proposals received by the City in response to a specific Req uest for Proposals (RFP) or Request for Qualifications (RFQ) for the purpose of identifying the most competitive or best qualified proposal(s) from responsive and responsible offerors.

Proposed General guidelines:

1. Identifying Evaluation Committee Member s. The members of the EC should be identified prior to the solicitation issuance. Members of the EC should have professional interest and expertise to evaluate proposals and make recommendations that could lead to the selection of one or more offeror(s) who will provide products/services to the City in an acceptable manner pursuant to the RFP /RFQ.

2. EC Member Participation Form. The Project Manager ( PM) will send an Evaluation Committee Member Participation Form to the individual EC members and each membe r shall return an executed copy to the PM.

3. Preparing the Evaluation Rating Matrix (Attachment C) . The EC will identify mandator y, non -mandatory requirements, in addition to establishing evaluation criteria and assigned weight. The evaluation criteria an d assigned weight shall be consistent with the criteria defined in the RFP/RFQ.

4. Initial Review of Proposals. The PM will review received Proposals for compliance with the submittal criteria and content requirements. The EC will review Proposals that are deemed “responsive and responsible”. A responsive RFP /RFQ is one that meets all the terms, conditions and specification of the RFP /RFQ. A responsible RFP /RFQ is one where the proposer has the overall capability to satisfactorily perform the contract. “No n-Responsible” Proposals will not be evaluated and shall be rejected from any further consideration by the City.

5. Submitting Proposals to the EC. The EC members who have executed the Evaluation Committee Member Participation Form will be provided with all “responsive and responsible” Proposals and evaluation forms.

6. Independent and Individual Review. The EC shall review the received Proposals and in dependently score each Proposal. Scores shall be in accordance with the Evaluation Rating Matrix and shall represent each evaluator’s best objective judgment.

7. Convening EC Committee Meetings. The EC meeting(s) shall be convened by the PM on the date and time designated. Each member will bring his/her completed technical evaluation form. The EC members w ill discuss the individual scores and, as a result of the discussion, each member may adjust the member’s individual scoring up or down as appropriate. The PM shall average the individual scores to determine the Offeror’s score for that particular question/requirement.

8. Analyzing Cost Proposals. When applicable, the City may utilize lowest cost, lowest total cost, Total Cost of Ownership (TCO) or greatest savings to determine best offeror; provided, however, the City must abide by any statements within the RFP regarding cost evaluation.

9. Overall Scores Preceding Negotiations. The EC will identify which offeror(s) submitted the best ranked, responsive and responsible proposal(s) according to the evaluation and scoring by the EC. The Cost and Evaluation Rating Matrix summary or such other appropriate document should be used to determine the award recommendation and the offeror(s) that will participate in negotiations, if applicable.

10. Convening a Negotiation Team. If the EC elects to initiate negotiations, as approved by the PM, in order to ensure that the City is receiving the best value and/or the most cost -efficient goods and/or services, then a Negotiation Team (NT) will convene. The NT may include any or all members of the EC or other individuals 131

AP 522 – Pg 29
as appropriate; provided, however, only the EC may rescore proposal revisions following negotiations. The NT will develop the Negotiation Plan and Negotiation Script.

11. Capturing Negotiation Results & Award Recommendation. If the City elects to negotiate with identified offerors, the offerors will each be asked to submit a Proposal Revision following each round of negotiations, which Proposal Revision will then augment the original RFP submission. Each Proposal Revision will be evaluated and re-scored by the EC utilizing the same evaluation criteria. Upon completion of negotiations, the PM will prepare the Evaluation and Selection Report and obtain EC’s signatures approving the award recommendation.

12. Final Contract Award. Based on the recommendations contained in the Evaluation and Selection Report, the PM will prepare an Agenda Report to present to Council. Upon Council approval, the PM will process the contract to be executed by the offeror and the City.

13. Maintaining Agency Records. All evaluation/negotiation documents/forms completed by each evaluator and by the EC and NT will be collected by the PM and become part of the official records and su bject to the Public Records Act and Record Retention Policy. The retention period for these documents is Audit plus four years.
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ATTACHMENT B

EVALUATION COMMITTEE MEMBERS PARTICIPATION FORM

(Solicitation Title)

REQUEST FOR PROPOSAL
(Sample Documents)

You have been asked to participate in the evaluation of offers that have been received as the result of the competitive solicitation referenced above.

It is essential that the integrity of the evaluation process is maintained to ensure that each bidder or offeror is given fair and equal consideration. Your knowledge of and/or past or current association wi th particular firms and/or individuals must not influence your evaluation. The written responses to the solicitation and any subsequent respective clarifications and/or negotiations must stand alone, and you are required to be particularly objective and guard against any tendency to favor a particular firm or individual.

You are required to report to the Project Manager any actual or potential conflict of interest.

An additional consideration is the need to maintain confidentiality during the evaluation r egarding the contents of the offerors’ or bidders’ responses, as well as the proceedings of the evaluation committee. Any inquiries regarding the evaluation of this particular solicitation must be directed to the Project Manager.

You are asked to read and sign the following statement:

I have read, understand, and agree to the above, and I will adhere to the policies presented. I do not know of any conflict of interest on my part, nor have I accepted any gratuities or favors from potential offerors or bidders, which would compromise my objectivity. I shall keep all evaluation proceedings in strict confidence prior to contract award. I will do my best to base my recommendation for contract award solely upon the evaluation criteria in the solicitation and eac h offeror’s or bidder’s response.

Committee Member Signature Date

Print Name and Title of Committee Member Date

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ATTACHMENT C
CCiittyy ooff RRiicchhmmoonndd RRFFPP SSCCOORREE SSHHEEEETT –– Solicitation Title (Sample Documents – Evaluation Criteria and assigned weight shall be consistent with the criteria defined in the RFP/RFQ)
Vendor Evaluator Name

Evaluation Criteria
Maxim
um
Points
Assigned
Score

Comments

1. Qualifications of Firm

1.1 Technical experience in performing work of a
closely similar nature

1.2 Experience working with public agencies

1.3 Strength and stability of the firm

1.4 Strength, stability, experience and technical
competence of subcontractors

1.5 Assessment by client references

1.6 Knowledge of applicable laws and regulations.

%

2. Staffing and Project Organization

2.1 Qualifications of project staff

2.1.1 Key personnel

2.1.2 Project Manager

2.2 Key personnel’s level of involvement in
performing related work cited in “Qualifications of
the Firm” section

2.3 Logic of project organization

2.4 Adequacy of labor commitment;

2.5 Concurrence in the restrictions on changes in
key personnel

2.6 Ability to deal with City staff

%

3. Work Plan/Methodology and Approach to Work

3.1 Depth of Offeror’s understand ing of City’s
requirements and overall quality of work plan

3.2 Logic, clarity and specificity of work plan

3.3 Appropriateness of labor distribution among
the tasks

3.4 Ability to meet the project deadline

3.5 Reasonableness of proposed schedule;

3.6 Utility of suggested tec hnical or procedural
innovations.

3.7 Approach and proposed methodology to
project scope

3.8 Innovative approaches ad internal measures
for timely completion of project

%

4. Cost and Price

ASSIGN POINTS FOR COST

%

TOTAL WEIGHT MUST EQUAL: 100

5. Interviews/Presentation – (Optional)

5.1 Quality and clarity of presentation

5.2 Ability of presenter to answer questions

5.3 Demonstrations (if required)

5.4 Demonstrated understanding of the project

%

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Scoring Mechanisms (SAMPLE)

For the evaluation criteria, the following scoring mechanism will be used. The points awarded for each criterion are determined by multiplying the weight by the assigned score.

Exceptional (Assigned Scores - 22 to 25) –

 The approach will yield a result that exceeds the Objectives qualitatively.  The proposal offers an approach or features with little or no risk.  The response covers areas not originally addressed within the RFP category and includes additional information and recommendations that would prove both valuable and beneficial to the City of Richmond.
 This response is considered an excellent approach demonstrating the Supplier’s authoritative knowledge and understanding of the project.

Exceeds Objectives (Assigned Scores - 19 to 21) –

 A very good response that shows experience and knowledge within the category. The Supplier provides insight into their expertise, knowledge and understanding of the subject matter.  The collective approach yields a qualitative benefit to the project that is beyond the minimum objectives.
 The approach being proposed or the majority of the features are acceptable or above the objectives set out in the RFP.
 The Supplier can easily implement additional features or options. A minimal number of resources will be required from the City of Richmond.

Meets Objectives (Assigned Scores - 14 to 18) –

 The approach or the majority of the features proposed meet the objectives.  No apparent deficiencies noted. Some items could be improved upon but are still considered acceptable. To enhance them may require rework and resources from the Supplier and/or the City.
 The ranking should reflect some qualitative achievement(s) such as acceptable delivery timeframe, end-user training program, etc.

Fails to Meet Objectives (Assigned Scores - below 14)-

 The proposed approach or a majority of the features for the item are deficient. The approach taken is undesirable and correction would require a major and material change in the proposal.  The correction of any deficiencies either collectively or individually, poses a serious problem in correction or has a "domino" effect on the other design features.

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