Richmond City Council
June 24, 2024

June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works/City Engineer
Jeffrey Barich, PE, Senior Civil Engineer
Mary Phelps, Water Resource Division Manager
Subject: Grit and Aeration Project, Issuance of a Task
Authorization for Additional Unforeseen Work
FINANCIAL IMPACT: The proposed increase in the budgeted amount for the Grit and Aeration Basin project located at the Richmond Wastewater Treatment Plant, $4,875,580, will be funded
from the $50,000,000 State revolving fund loan received from the California Water Quality Control Board and
Wastewater Fund (40322931-400708-01X10). There will
be no impact on the General Fund.

PREVIOUS COUNCIL
ACTION:

Resolution 29-21 - 03/16/2021
Resolution 28-21 - 03/16/2021
Resolution 88-22 - 06/21/2022

STATEMENT OF THE
ISSUE:

Staff is recommending City Council approval of a task
authorization for additional unforeseen work for the Grit and Aeration Basin project located at the Richmond
Wastewater Treatment Plant. This project is being
managed by Veolia, with the construction subcontract
awarded to Shimmick Construction Company, Inc., a
contractor from Oakland and the engineering during
construction subcontract awarded to Carollo Engineers, a consultant from Walnut Creek.

AGENDA
REPORT
1027

June 18, 2024
RECOMMENDED ACTION: ADOPT a resolution approving a task authorization for additional unforeseen work for the Grit and Aeration
Basin project located at the Richmond Wastewater
Treatment Plant in the amount of $4,875,580, for a new
total amount not to exceed $50,482,068, for the period
expiration of December 31, 2024 – Public Works
Department (Daniel Chavarria 510-620-5478/Jeffrey
Barich 510-412-2009).

DISCUSSION:

The City of Richmond and Veolia Water (Veolia) have implemented the High Priority Critical Improvements Projects at the City's Wastewater Treatment Plant (WWTP), which Veolia manages and operates. The projects aim to replace aging and unreliable infrastructure, improve treatment operating efficiency, comply with future discharge regulations, and improve the functionality of the existing WWTP. The improvements were identified through previous planning efforts, including the 2010 WWTP Master Plan and the 2016 WWTP Facility Plan.

To date the following resolutions have been adopted by City Council:
 Resolution 29-21 to accept the State Water Resources Control Board’s State Revolving Fund (SRF) Loan in the amount of $50,000,000 (Attachment 2)  Resolution 28-21 to appropriate the amount of $42,106,480, including a contingency in the amount of $2,760,943 for the replacement of the Grit and Aeration Basin (Attachment 3)
 Resolution 88-22 to issue Contract amendment #1 with Veolia in the amount of $3,500,000, for a total amount contract amount not to exceed $45,606,488 (Attachment 4)
Twenty (20) Contract Change Orders have been approved by the City for $11,692,800, which have depleted the original contract contingency allocation and associated amendments (Attachment 5). Some of the more costly change orders are since there were many unknowns at the plant due to missing plans and the age of the plant. Other changes were suggested engineering changes that would improve operations and treatment of the wastewater at the treatment plant. To date, a total of $45,606,488 has been paid for the construction portion of this project.

Most change orders allow for a nine (9) percent mark-up for Veolia per the “Agreement”.

However, two (2) of the change orders (#10 and #19) allowed Veolia to earn the full

16.5 percent markup as they were design changes and not part of the original scope.

Since the project is near completion, these should be the last contract change orders and the final task authorization required. The project will be paid from the $50,000,000 State Revolving Fund (SRF) loan received from the State Water Quality Control Board and from the Wastewater Fund.
1028

June 18, 2024
The Water Resource Recovery Division of the Public Works Department will continue managing the project task authorizations issued to Veolia. Veolia will continue managing the subcontracts with Shimmick Construction Company, Inc.

City staff is requesting that the City Council adopt the resolution authorizing the issuance of a task authorization in the amount of $4,875,580 for Veolia via its subcontractor, Shimmick, to continue the work on the Grit and Aeration Project at the Wastewater Treatment Plant. The total project cost shall not exceed $50,482,068 for the construction of the Grit and Aeration project
DOCUMENTS ATTACHED:

Attachment 1 – Resolution
Attachment 2 – Resolution 29-21
Attachment 3 – Resolution 28-21
Attachment 4 – Resolution 88-22
Attachment 5 – Detailed List of Change Orders
1029
Reso. No.

RESOLUTION NO.

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

AUTHORIZE THE ISSUANCE OF A TASK AUTHORIZATION FOR THE GRIT

AND AERATION BASIN (WWTP CRITICAL IMPROVEMENTS) PROJECT LOCATED AT

THE WASTEWATER TREATMENT PLANT LOCATED IN RICHMOND, CALIFORNIA IN THE AMOUNT OF $4,875,580 FOR AN AMOUNT NOT TO EXCEED $50,482,068 WHEREAS, the City of Richmond and Veolia Water (Veolia) have implemented the High Priority Critical Improvements Projects at the City's Wastewater Treatment Plant (WWTP), which is managed and operated by Veolia; and
WHEREAS, the purpose of the projects are to replace aging and unreliable infrastructure, improve treatment operating efficiency, comply with future discharge regulations, and improve the functionality of the existing WWTP; and WHEREAS, the improvements were identified through previous planning efforts, including the 2010 WWTP Master Plan and the 2016 WWTP Facility Plan; and WHEREAS, the Grit and Aeration Basin (WWTP Critical Improvements) Project will improve the efficiency of the WWTP; and
WHEREAS, this will allow the City to remain in compliance with its National Pollutant Discharge Elimination System Permit (NPDES); and
WHEREAS, on February 16, 2021, City Council approved Resolution # 28-21 to appropriate the amount of $42,106,48, including a contingency in the amount of $2,760,943 for the replacement of the Grit and Aeration Basin; and
WHEREAS, on June 21, 2022, City Council approved Resolution 88-22 allowing the Water Resource Recovery Division of the Public Works Department to appropriate an additional $3,500,000 (including contingency) from the State Water Resources Control Board State Revolving Loan Fund for an amount not to exceed $45,606,488 for Fiscal Year 2021-22 budget the Grit and Aeration Basin (WWTP Critical Improvements) Project.

WHEREAS, twenty (20) Contract Change Orders have been approved by the City in the amount of $11,136,523, which has almost depleted the original contingency allocation; and WHEREAS, the total project scope will need to be increased to cover the additional change orders for a total amount of $50,482,068; and
WHEREAS, the Water Resource Recovery Division of the Public Works Department will continue managing the project Task Authorization to Veolia and Veolia Water West Operating Services, Inc. will continue managing the subcontracts with Shimmick Construction Company, Inc.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richmond, as follows:

Section 1. The foregoing recitals are true and correct, and this City Council hereby so finds and determines:

Section 2. The Water Resource Recovery Division of the Public Works Department shall authorize a Task Authorization to appropriate an additional $4,875,580 from the State Water Resources Control Board State Revolving Loan Fund for an amount not to exceed $50,482,068 for Fiscal Year 2023-24 budget the Grit and Aeration Basin (WWTP Critical Improvements) Project.

Section 3. The Contract and all Amendments shall be managed by Veolia Water and a subcontract issued to Shimmick Construction Company, Inc. for the construction of the Grit and Aeration (WWTP Critical Improvements) Project.

Section 4. The total cost of the Grit and Aeration (WWTP Critical Improvements) Project for construction shall not exceed $50,482,068 without City Council approval. 1030
Reso. No.

Section 5. This resolution shall take effect immediately upon its passage. ******************
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held on June 18, 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. , finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on June 18, 2024.

Pamela Christian, Clerk of the City of Richmond
1031
Reso. No.

CLERK’S CERTIFICATE
I, Pamela Christian, City Clerk of the City of Richmond, do hereby certify as follows:

The foregoing resolution is a full, true, and correct copy of Resolution No. duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on the 4
th
day of June 2024, of which meeting all of the members
of said City Council had due notice and at which a majority thereof were present; and that at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

An agenda of said meeting was posted before said meeting at City Hall, 450 Civic Center Plaza in the City of Richmond, California, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

Such agenda was further posted, and such meeting was conducted in accordance with and pursuant to Executive Order N-29-20, signed by the Governor of the State of California on March 17, 2020, and Executive Order N-35-20, signed by the Governor of the State of California on March 21, 2020.

I have carefully compared the foregoing with the original on file and of record in my office, and the foregoing is a full, true, and correct copy of the original resolution adopted at said meeting.

Said resolution has not been amended, modified, or rescinded since the date of its adoption and the same is now in full force and effect.

Dated: , 2024.

City Clerk of the
City of Richmond
[SEAL]
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WWTP GRIT & AERATION CRITICAL IMPROVEMENTS PROJECT
ORIGINAL CONTRACT PRICE $ 33,773,000
Original Engineer's Estimate for Construction - $ 38,800,000

CHANGE ORDER
NUMBER DESCRIPTION AMOUNT Veolia Mark-up
Change Order 1 Bid Alternative. Return of Activated Sludge (RAS) piping modifications. $ 304,617 $ 27,416 Change Order 2 Bid Allowance A: Primary sedimentation basin column repair. $ 8,511 $ 766 Change Order 3
Force account work. Changed conditions (i.e., biofilter utility conflicts, Solids Handling Building sludge line backfeeding, Dissolved Air Flotation Thickener (DAFT) #1, PCB contaminated concrete disposal, etc.)
$ 161,535 $ 14,538
Change Order 4 Design change: Build concrete wall in place of the removed slide gate in aeration basin (AB) 4A. $ 65,803 $ 5,922
Change Order 5
Design changes: Material costs only (for lead time) for three design clarifications DC 001, 002 and 005 regarding slide gates, blanking plates, duct banks, Blower Building electrical room modifications, etc.
$ 755,385 $ 67,985
Change Order 6 Design changes: Follow up to CO 5 - Contractor labor, equipment and subcontractor costs related to design clarifications DC 001, 002 and 005. $ 942,770 $ 84,849 Change Order 7
Force account work: Changed conditions (i.e., Electrical panel and diesel tank vent relocation, wet weather fiber optic conflict, primary sedimentation basin lights, 3W bypass for demo in the aeration basins, electrical investigation for DC005, 54" 3W investigation, etc. ).
$ 49,049 $ 4,414
Change Order 8 Force account work and design omission (i.e., aeration basin handrail salvage, pipe chase 4 demolition, lime treatment of native soils, new wall for slide gate, etc.) $ 232,804 $ 20,952 Change Order 9 Design changes: DC004 (blower building louver modifications) credit, LED luminaire changes, DC008 (3W extension in aeration basin 4) $ 5,313 $ 478 Change Order 10 Concrete repairs in basins 3 and 4. (Bid item 9 quantity overruns based on unit bid pricing.) (Note this includes 16.% mark-up) $ 143,407 $ 23,662
Change Order 11
Design changes: DC002.1 (aeration basin channel walls), DC009 (new flowmeter at Pista Grit) , RFIs 123 and 264 (new wall for slide gate and concrete slab repairs in basins 3 and 4).
$ 314,710 $ 28,324
Change Order 12
Design changes: DC006 (scum pump station structural and mechanical modifications) and DC007 (RAS piping modifications, including fabrication and installation of moment resisting frames to reinforce the structural soundness of the channel). $ 684,724 $ 61,625
Change Order 13 Concrete testing, BAAQMD authority to construct (ATC) permit renewal, misc. technical services. [Note: this change order is between Veolia and the City] $ 49,186 $ 4,427 Change Order 14
Design change: DC010 (air piping modifications at the aeration basins, including upsizing control valves, isolation valves and associated piping resulting in better dissolved oxygen control and subsequent energy savings).
$ 514,664 $ 46,320
Change Order 15
Force account work. Changed conditions (i.e., reclean basins after flood events, electrical vault repairs, yard piping additional demolition, scum box relocation, 3W extension and valves, etc.)
$ 252,746 $ 22,747
Change Order 16 Design changes: Explosion proof motor in submersible pumps in the Pista Grit, rotating weir spare parts, new biofilter fan, Pista Grit slide gate modifications, grit loading area changes. $ 398,827 $ 35,894 Change Order 17
Force account work. Changed conditions (i.e., additional duct bank demo, lighting power reroute, pipe chase 3 demo and backfill, turning Basin 4 into an operational aeration basin, temporary bypass for mixed liquor channel work, etc. )
$ 306,543 $ 27,589
Change Order 18
Design changes: 3W modifications in the aeration basins, new 6" drain from Influent Pump Station (IPS) to fine screens, added tread plates and support beams, changes to the AC unit ductwork, etc.
$ 426,921 $ 38,423
Change Order 19
Design changes: safety handrails need to be furnished and installed around the upgraded aeration basisn; also concrete repairs to the basins were more extensive than originally anticipated, the extents of needed repairs was estimated at the beginning of the project.(Note - this includes 16.5% mark-up as not part of orignal scope) $ 1,413,813 $ 233,279
Change Order 20
Design changes and force account work: resolving a utility line conflict; additional concrete repairs to the aeration basins; finish paving at the site; compensable contract time extension; any additional punch-list items to finish the project. $ 3,588,862 $ 322,998
$ 10,620,191 $ 1,072,609
$ 11,692,800

TOTAL APPROVED CHANGE ORDERS
TOTAL APPROVED CHANGE ORDERS including Veolia's mark-up 1043

June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, Director of Public Works
Tawfic Halaby, Deputy Director of Public Works
Dee Karnes, Fleet Maintenance Superintendent
Subject: Purchase of a Vehicle Alignment Machine
FINANCIAL IMPACT: The proposed expenditure of $80,000 is available in the 2023-2024 Fleet Maintenance Capital Improvement
Projects budget (50336031-400538-03D04).

PREVIOUS COUNCIL
ACTION:

None

STATEMENT OF THE
ISSUE:

The Fleet Maintenance Division is requesting City
Council approval to purchase a vehicle alignment
machine.

RECOMMENDED ACTION: APPROVE the purchase of a wheel alignment machine from Mohawk Lifts, LLC, in an amount not to exceed
$80,000 – Public Works Department (Daniel Chavarria
510-620-5478/Dee Karnes 510-231-3044).

AGENDA
REPORT
1044

June 18, 2024
DISCUSSION:

The Public Works Fleet Maintenance Division needs a wheel alignment machine to perform alignments in-house. City staff currently delivers and retrieves vehicles for alignments to local vendors that can take up to a day to complete. Having this machine in the mechanic shop will improve turn-around times for scheduled vehicle maintenance appointments and wheel replacements. This machine will accommodate a majority of the vehicles in the City’s fleet.

There are no manufacturers of wheel alignment machines in the City of Richmond.

This purchase is in compliance with the City of Richmond Municipal Code Section

2.52.320 Piggyback procurement which allows for a “piggyback” purchase using another agency’s purchase contract if it is in the best interest of the City of Richmond.

Based on Department of General Services contract no. 7-23-99-48-01 pricing, Fleet Maintenance staff recommends that the alignment machine be purchased from Mohawk Lifts, LLC, for an amount not to exceed $80,000 (Attachment 1). The Finance Department has approved a piggyback justification for the proposed purchase (Attachment 2).

DOCUMENTS ATTACHED:

Attachment 1 – Quote
Attachment 2 – Approved Piggyback Justification
1045
Vendor: MOHAWK LIFTS LLC
PO Box 110, Amsterdam, NY 12010
[email protected]
Karly 800-833-2006 x7777
5/10/2024
PART # QTY LIST PRICE

CONTRACT
PRICE
TOTAL
RX14KLPS 1 $ 56,208.84 $ 43,938.52 $ 43,938.52
WA674 1 $ 21,458.91 $ 16,774.46 $ 16,774.46
HE421ML 1 $ 19,372.96 $ 15,143.87 $ 15,143.87
Discount 1 $ - $ - $ (2,964.00)
mohawklifts.com/w9 Subtotal $ 72,892.85
Sales Tax (if applicable) $ 7,107.05
NOTES:

TOTAL $ 79,999.90
$0.00 V8.23
6 13 St Richmond, CA 94801
City of Richmond
Good Through:

Aligner with New premium compact cabinet and 27" Wide Screen LCD Display.

Click here for Mohawk Lifts LLC Form W9:
up to 90 Business Days ARO
HE421ML Sensors-Manual lift provides full range of travel for additional lift height or to work with vehicle on the floor. Includes 4 Cameras, Three Dimensional Targets, QuickGrip Wheel Adaptors, turnplate bridges.

DESCRIPTION
Extended length Scissor Lift, surface mount, FIA (Standard wireless connectivity), PowerSlide, 14,000lb capacity, 195" 2WA WB, (2) 9,000lb Swing Jacks, PowerSlide turnplates.

Add'l Marketing & Promotional Discount
This quotation is subject to the terms and conditions noted on the following page Lead Time:
510-231-3035
[email protected]
May 30, 2024
Eric Betances Richmond.HE421ML.050924-1
California_NASPO State Contract #
7-23-99-48-01
Valid: 07/11/2023 - 03/31/2028
Payment Terms:

FOB Destination, Prepaid
Net 45
For purchase of Hunter equipment using:

QUOTE NUMBER
Freight Terms:

All quoted equipment has been Competitively Bid and Competitively Awarded on California_NASPO State Contract # 7-23-99-48-01, and is Guaranteed Best government pricing. Freight, Installation, Training & Training Certificates Included @ No Charge.

CUSTOMER QUOTE DATE
ATTACHMENT 1
1046
1) This order is subject to the standard terms and conditions of the above named contract and the corresponding master agreement, which are hereby incorporated by reference and accessible at www.govlifts.com. 2) The quoted prices have been competitively bid and awarded and are guaranteed to be the lowest government prices. 3) Electrical and compressed air connections to equipment are not included on this quotation. Any required concrete or electrical work is to be supplied by an outside contractor or the buyer and is not included in this quote. 4) All software pre-installed on, or subsequently released by Hunter for, Hunter equipment is licensed pursuant to the Hunter Engineering Company End User License Agreement ("EULA") accompanying such software. By placing an order for, purchasing, or using Hunter equipment, you acknowledge and agree to be legally bound by the EULA, which is hereby incorporated by reference. 5) Each party will agree to defend, hold harmless, and indemnify the other from any cost, loss, or damages of any type, including attorney fees, to the extent that they arise from the breach of the Agreement and/or willful misconduct or negligence. 6) The buyer is responsible for inspecting all products at the time of delivery and before signing the delivery receipt, freight bill, or bill of lading. Should the buyer determine at the time of delivery that any items are damaged or missing the buyer must note the item, discrepancy, or condition on the delivery receipt, freight bill, or bill of lading. Mohawk is not responsible for missing or damaged products when the buyer has signed the delivery receipt, freight bill, or bill of lading in good condition. 7) A fork truck must be supplied at the offload site to unload the equipment from the freight carriers and, if applicable, for installation. 8) Price does not include sales tax (unless applicable), duties, brokerage, or any other fees. 9) Any and all permits, licenses, fees, etc. are the buyers responsibility 0 V8.23
Name:

Address:

Contact:

Phone:

Email:

Delivery Hours/Instructions:

Email:

DUNS: 117797939 / CAGE CODE: 8VDK6 / UEI: F9QME4G11RT5 / FEIN: 85-3221959 / SMALL BUSINESS SAM REGISTERED To place your order using this quotation, please fill in the following required information:

Phone:

TERMS AND CONDITIONS
Richmond.HE421ML.050924-1
[email protected]

BILLING INFORMATION SHIPPING INFORMATION
Remit orders to:

Acknowledged and Accepted by:

Email

MOHAWK LIFTS LLC
PO Box 110, Amsterdam, NY 12010
Authorized Buyers Signature
Date
Phone
Title
Name:

Address:

Contact:

Authorized Buyers Name (PRINT)
Same as
Billing
City of Richmond 6 13th Street Richmond, California 94801 Dee Karnes 510-314-4633 [email protected] Eric Betances 510-231-3035 [email protected] Monday-Friday, 7:00 AM to 3:00 PM Equipment Services Superintendent 510-314-4633 Dee Karnes 05/14/2024 [email protected] City of Richmond 6 13th Street Richmond, California 94801 1047
ATTACHMENT 2
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June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, Director of Public Works
Tawfic Halaby, Deputy Director of Public Works
Dee Karnes, Fleet Maintenance Superintendent
Subject: Sole-Source Contract with Bosco Oil dba Valley Oil for Bulk Fuel Delivery
FINANCIAL IMPACT: The proposed expenditure of $500,000 will be available in the 2024-2025 Fleet Maintenance operating budget –
01235031-400365

PREVIOUS COUNCIL
ACTION:

May 26, 2020

STATEMENT OF THE
ISSUE:

The Fleet Maintenance Division is requesting City
Council approval of a Sole Source Contract with Bosco
Oil dba Valley Oil.

RECOMMENDED ACTION: APPROVE a six-month sole-source contract with Bosco Oil dba Valley Oil, beginning on July 1, 2024, and ending on December 31, 2024, in an amount not to exceed
$500,000 – Public Works Department (Daniel Chavarria
510-620-5478/Dee Karnes 510-231-3044).

AGENDA
REPORT
1080

June 18, 2024
DISCUSSION:

On May 26, 2020, City Council approved a Standard Contract with Bosco Oil dba Valley Oil for bulk fuel delivery for a two-year term plus two (2) one-year extension options. A successful competitive bidding process could not be completed by June 30, 2024.

Valley Oil continues to be responsive and agreeable to emergency requests with prompt service. A new Request for Bids will be posted in the first quarter of the 2024-2025 fiscal year to conduct the competitive bid process to comply with the City Richmond’s Municipal Code five-year contract term limit.

In the interest of avoiding an interruption of service to City of Richmond operations, including the Fire and Police Departments, City staff recommends a six-month sole source contract for bulk fuel delivery with Bosco Oil dba Valley Oil Company, with a term beginning on July 1, 2024 and ending on December 31, 2024. The Finance Department has approved a sole source justification form.

DOCUMENTS ATTACHED:

Attachment 1 – Contract
1081
ATTACHMENT 1
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June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, Director of Public Works
Tawfic Halaby, Deputy Director of Public Works
Dee Karnes, Fleet Maintenance Superintendent
Subject: Purchase of Thermoplastic Equipment
FINANCIAL IMPACT: Funding for the proposed expenditure is available in the Public Works Streets Division 2023-2024 budget
(10234431-400705-01A05)

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

The Fleet Maintenance Division is requesting City
Council approval to purchase trailer-mounted
thermoplastic equipment for the Streets Division.

RECOMMENDED ACTION: APPROVE the purchase of trailer-mounted thermoplastic equipment from Dispensing Technologies
Corporation, in an amount not to exceed $124,000 –
Public Works Department (Daniel Chavarria 510-620-
5478/Dee Karnes 510-231-3044).

AGENDA
REPORT
1108

June 18, 2024
DISCUSSION:

The Streets Division must buy trailer-mounted thermoplastic equipment to improve the work completed by the Signs & Lines staff members. This new equipment will allow Public Works staff to use dual paint colors simultaneously and complete work faster.

Currently, there isn’t a manufacturer of thermoplastic equipment within the City of Richmond.

This purchase complies with the City of Richmond Municipal Code Section 2.52.320, Piggyback procurement, which allows for a “piggyback” purchase using another agency’s purchase contract if it is in the best interest of the City of Richmond.

Based on pricing as reflected in the City of San Jose’s Purchase Order 82915, it is in the City of Richmond's best interest to purchase thermoplastic equipment from Dispensing Technologies Corporation for an amount not to exceed $124,000. The Finance Department approved a piggyback justification form.

DOCUMENTS ATTACHED:

Attachment 1 – Quote 14654
Attachment 2 – Approved Piggyback Justification
1109
Quote
Date
5/13/2024
Quote #
14654
Name / Address

CITY OF RICHMOND

FRED CORTEZ
#6 -13TH STREET
RICHMOND, CA 94801
USA
Ship To

CITY OF RICHMOND PUBLIC WORKS DEPT

FERNANDO CASTRO
#6 -13TH STREET
RICHMOND, CA 94801
USA
Dispensing Technology Corporation
390 Lombard Street
Oxnard, CA 93030
P.O. No. Terms
Net 30
Due Date
11/15/2023
Rep
BWH
Account #
C00626
FOB
Signature
_____________________________________
Phone # 805-388-5575
Fax # 805-388-5560
[email protected]
Total
Subtotal
Sales Tax (9.75%)
All Prices Are Subject To Change Without Notice
OXNARD
Item Description Qty U/M Cost Total
010-019903 THERMOPLASTIC TRAILER, W/ DUAL 1500LB
10,000/14,000LB GVWR, LOADING SAFETY
RAILS, TWO 100LB LPG TANKS, 10LB FIRE

EXTINGUISHER AND HYDRAULIC LIFT GATE
W/ 2-5/16 BALL OR PINTLE HITCH PROPANE
FIRED
1 ea 93,500.00 93,500.00T
SPECIAL up charge for pressure comp pump 1,300.00 1,300.00T SPECIAL trailer under carriage coating up charge 1,600.00 1,600.00T SPECIAL up charge for flush mounted D rings 200.00 200.00T SPECIAL up charge for wire marking, DOW 1890, heat shield for wires, fuse block for screw type terminals,
3,000.00 3,000.00T
SPECIAL up charge for torrsion bar mounted axles 0.00 0.00T SPECIAL up charge for EZ lube wheel bearings w/ zerk
fittings
SPECIAL single orifice burners for melters 0.00 0.00T
SPECIAL up charge for solar battery charger w/ overcharge protection
500.00 500.00T
MANUF-LABOR MANUFACTURING LABOR 320 ea 40.00 12,800.00T $123,907.75
$112,900.00
$11,007.75
ATTACHMENT 1
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June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, Director of Public Works
Tawfic Halaby, Deputy Director of Public Works
Carl Capistrano, Facilities Maintenance Superintendent
Subject: Contract with Pablo Restorations Roofing and Waterproof FINANCIAL IMPACT: Funding will come from the Facilities Maintenance budget (01232331-400524).

PREVIOUS COUNCIL
ACTION:

N/A

STATEMENT OF THE
ISSUE:

City staff hired a contractor to perform waterproofing and roof repairs at Fire Station 63.

RECOMMENDED ACTION: APPROVE a contract with Pablo Restorations Roofing and Waterproof to waterproof and perform spot repairs
on the roof of Fire Station 63, in an amount not to exceed $73,385.70, from May 22, 2024, to June 30, 2026 –
Public Works Department (Daniel Chavarria 510-620-
5478/Carl Capistrano 510-620-6896).

DISCUSSION:

Fire Station 63 experienced water intrusion from the roof, which caused damage to acoustic ceiling tiles. Previously, when the Richmond Fire Department notified Public Works of specific instances of water intrusion, staff performed spot repairs at various roof locations; however, the spot repairs only worked at specific locations temporarily AGENDA
REPORT
1150

June 18, 2024
and did not solve the longer-term issue of water intrusion. During winter 2023-24, roof leaks continued to be a problem, indicating a more comprehensive approach to reducing water intrusion, as acoustic ceiling tiles were impacted. Resident fire personnel were impacted by the leaks on March 1, 2024, on an emergency basis, Public Works staff requested bids from three known contractors – Pablo Restoration Roofing and Waterproof, State Roofing System, and Best Roof Construction Co. – for repairs and waterproofing of the roof at Fire Station 63. During the mid-year budget adjustment process, Public Works staff also requested additional funding from the City Council to address leaky roofs at various city facilities, including Fire Station 63.

In response to the request for bids, the City received the following bids:
 Best Roofing & Construction (San Francisco) $91,000.00  Pablo Restoration Roofing and Waterproof (Richmond) $65,373.00  State Roofing Systems, Inc. (San Leandro) Disqualified $44,398.00 State Roofing Systems, Inc.'s bid did not meet the requirements of the bid, and it was disqualified.

City staff reviewed the remaining two bids and determined that Pablo Restoration Roofing and Waterproof (“Contractor”), a local Richmond Business Enterprise, provided the lowest responsive and responsible bid for waterproofing and repair of the roof at Fire Station 63. City staff asked Pablo Restoration to commence waterproofing activities based on the $65,373 bid and later identified an additional $8,012.70 in work that needed to be performed as part of the waterproofing job, for a total contract amount of $73,385.70.

City staff is requesting approval of a contract with Pablo Restoration Roofing and Waterproof for $73,385.70 for this work, including additional work the City identified after the Contractor commenced waterproofing activities. The work has been completed.

Attachment 1 includes the proposed contract. Since this work was performed on an emergency basis, the emergency justification form is included in Attachment 2. The Pablo Restoration bid is included in Attachment 3.

DOCUMENTS ATTACHED:

Attachment 1 – Proposed Contract
Attachment 2 – Emergency Justification
Attachment 3 – Pablo Restoration Bid
1151

CITY OF RICHMOND

STANDARD CONTRACT
Department: Project Manager:

Project Manager E-mail: Project Manager Phone No:

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

Description of Services:

The parties to this STANDARD CONTRACT do mutually agree and promise as follows:

1. Parties. The parties to this Contract are the City of Richmond (herein referred to as the “City”) and the following named Contractor:

Company Name:

Street Address:

City, State, Zip Code:

Contact Person:

Telephone: Email:

Business License No: / Expiration Date:

A California [ ] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:] ,
[ ] other [specify:]

2. Term. The effective date of this Contract is and it
terminates unless terminated as provided herein.

3. Payment Limit. City’s total payments to Contractor under this Contract shall not exceed $ . City shall not pay for services that exceed
the Contract Payment Limit unless a contract amendment has been approved by the City Council or City Manager.

4. Contractor’s Obligations. Contractor shall provide those services and carry out that work described in the Service Plan (Exhibit A) which is attached hereto and is incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.

5. City's Obligations. City shall make to the Contractor those payments described in the Payment Provisions (Exhibit B) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
1152

6. Authorized Representatives and Notices. This Contract is subject to the Authorized Representatives and Notices Provisions (Exhibit C) which are attached hereto and are incorporated herein by reference.

7. General Conditions. This Contract is subject to the General Conditions (Exhibit D) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.

8. Special Conditions. This Contract is subject to the Special Conditions (Exhibit E) (if any) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein. (Note:
other than Public Works contracts, the City will agree to Special Conditions only in unusual circumstances.)

9. Insurance Provisions. This Contract is subject to the Insurance Provisions (Exhibit F) which are attached hereto and are incorporated herein by reference.

10. Signatures. These signatures attest the parties' Contract hereto:

CITY OF RICHMOND CONTRACTOR:
a municipal corporation

By:
(* The Corporation Chairperson of the Board,
President or Vice President should sign below)

Title: By:

I hereby certify that this Contract Title:
has been approved by City Council.

Date Signed:

By:

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

By:

By: Title:

City Attorney
Date Signed:

(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a corporation
or nonprofit organization, this Contract (1) must
be signed by (a) the Chairperson of the Board,
President or Vice-President and (b) the
Secretary any Assistant Secretary, the Chief
Financial Officer or any Assistant Treasurer.

LIST OF ATTACHMENTS:

Service Plan Exhibit A
Payment Provisions Exhibit B
Authorized Representatives and Notices Exhibit C
General Conditions Exhibit D
Special Conditions Exhibit E
Insurance Provisions Exhibit F
Standard Contract/EJ/TE 9-26-07
1153
For the Contract between the City of
Richmond and

EXHIBIT A

SERVICE PLAN
Contractor shall, to the satisfaction of the , perform the following services and be compensated as outlined below:
1154

ESTIMATE
Services qty unit price amount
Remove all tile on fire department and install back on place 1.0 $64,573.00 $64,573.00 This agreement stipulates that Pablo restorations roofing will perform reroofing on address mentioned above with manager consent. Remove 36sq concrete clay tile roof on fire station and Remove 6sq flat roof, remove flashing metal, vents and tear off torch roof. Remove underlayment and bats 1 by 2, clean debris and dump garbage. Inspect all plywood and nail correctly. If we find rotten wood, only we cover 6 sheets plywood.

Install 36sq high temperature, self-adhesive tile underlayment and a second layer synthetic special for tile so there are no more leaks. Install metal edge, install 1 by 2 bat to hold the tile. Install new vent metal and Install tile back on place on all roof, there is broken tile and some pieces that we need to cut and put on place we would install new ones matching existing ones (if the same ones are not available any more for order, we would get use ones that are matching existing so there is no difference.). Install same ridge back on place with concrete to match existing. Install underlayment dens deck prime, secure with screws and plates. Install clap metal edge special for TPO and install 6sq Peel stick single ply TPO color of your choice.

Install drain, vents, pipe boots special for TPO. Install termination bar on all angle secure with screws and Install TPO membrane on wall and curb. Install counter flashing on stucco, secure with fasteners and seal on top with special sealer.

We have workmanship warranty for 5 years. Material for flat roof warranty 45 years NOTE: We look for the best affordable price for you. It’s required to get a permit if we do the process there would be a fee of $800 or you guys can do the process and get permit. Extra JOB BY HOUR $100 Tear off, Dump, Material Cost, Installation, Taxes and Insurance Included. 10% Deposit 50% upon Commence of work Balance due upon completion. Plywood installation 1.0 $0.00 $0.00 Tear off old plywood and install new plywood the cost 1 square 100 feet cover is $650 City Permit 1.0 $800.00 $800.00
Pablo Restorations Roofing And Waterproof
city Of Richmond
city Of Richmond
5201 Valley View Road
El Sobrante, CA 94803
(510) 620-6896
[email protected]

CONTACT US
2124 Hellings Ave
Richmond, CA 94801
(510) 866-9288
[email protected]
ESTIMATE #290
ESTIMATE DATE Mar 6, 2024
TOTAL $65,373.00
Pablo Restorations Roofing And
Waterproof 1052524
http://www.pabloroofingca.com 1 of 2 1155
Our company standards 1.0 $0.00 $0.00
We are confident on our job quality and warranty our costumer's satisfaction. We use the best materials to fulfill owners' necessities and our crew knows that work at the best of their capacity express our company standards and provides a better experience for our customers.

If you decide to accept the quote please select approve so we can schedule your project. The amount show is the total for the project but if you decide to pay with credit card or visa we would add a 4% fee to the total amount.

Services subtotal: $65,373.00
Subtotal $65,373.00
Total $65,373.00
Pablo Restorations Roofing And
Waterproof 1052524
http://www.pabloroofingca.com 2 of 2 1156

INVOICE
Services qty unit price amount
Revice cost estimate for extra job 1.0 $8,012.70 $8,012.70 Our crew would perform extra job with manager consent remove 220ft metal through wall then install new metal secure with screws and nails and seal on top with caulking. We also include 3 base vent flashing this includes tear off, material and labor
Pablo Restorations Roofing And Waterproof
city Of Richmond
city Of Richmond
5201 Valley View Road
El Sobrante, CA 94803
(510) 620-6896
[email protected]

CONTACT US
2124 Hellings Ave
Richmond, CA 94801
(510) 866-9288
[email protected]

INVOICE

INVOICE DATE
DUE
#247
May 17, 2024
Upon receipt
AMOUNT DUE $8,012.70
Total $8,012.70
Pablo Restorations Roofing And
Waterproof 1052524
http://www.pabloroofingca.com 1 of 1
Carl Capistrano 5-20-24
1157
For the Contract between the City of
Richmond and

EXHIBIT B

PAYMENT PROVISIONS
{PLEASE NOTE THAT THE CITY OF RICHMOND SHALL NOT PAY FOR SERVICES

THAT EXCEED THE CONTRACT PAYMENT LIMIT UNLESS A CONTRACT

AMENDMENT HAS BEEN APPROVED BY THE CITY COUNCIL OR THE CITY MANAGER}

1. Provided Contractor is not in default under this Contract, Contractor shall be compensated as provided below.

2. Any and all payments made pursuant to this Contract shall be subject to the Contract Payment Limit. The Payment Limit includes expenses (phones, photo copying, meals and travel etc). Invoices, shall be adequately detailed, based on accurate records, and be in a form reasonably satisfactory to the City. Contractor may be required to provide back-up material upon request.

3. Contractor shall submit timely invoices to the following address:

Attention: City of Richmond, Finance Department - Accounts Payable Project Manager: Department:

PO Box 4046
Richmond, CA 94804-0046

4. All invoices that are submitted by Contractor shall be subject to the approval of the City’s Project Manager, before payments shall be authorized.

5. The City will pay invoice(s) within 45 days after completion of services to the City’s satisfaction. The City shall not pay late fees or interest.

6. A Richmond business license shall be obtained before any payment under this Contract shall be authorized and the business license must be kept current during the term of this Contract for payments to continue to be authorized.

7. All insurance coverage required by this Contract shall be provided by the Contractor before this Contract shall be executed by the City. The insurance coverage must be kept current during the term of this Contract for payments to continue to be authorized. 1158
For the Contract between the City of
Richmond and

EXHIBIT C

AUTHORIZED REPRESENTATIVES AND NOTICES

1. Notices. All notices, demands, statements, or communications provided for by this Contract shall be in writing and may be delivered by deposit in the United States mail, postage prepaid. Notices to the City shall be addressed to the Department Head and (as delineated below in section 1.1) to the project manager responsible for the administration of or the supervision of the scope of work under this Contract. Notices to the Contractor shall be addressed to the party designated by Contractor (as delineated below in section 1.2). Notice shall be deemed delivered (a) upon personal delivery; (b) as of the fifth business day after mailing by United States certified mail, postage prepaid, addressed to the proper party; or (c) as of 12:00 p.m. on the second business day immediately after the day it is deposited with and accepted by Federal Express, or a similar overnight courier service, addressed to the proper party and marked for next business day morning delivery. For the purposes of this Contract, a "business day" means any day Monday through Friday that is not a holiday recognized by the federal government or the State of California.

1. 1 CITY hereby designates as its Authorized Representative the Project Manager whose name and address are as follows:

City of Richmond
Richmond, CA 94804-0046

1. 2 CONTRACTOR hereby designates as its Authorized Representative the Project Manager whose name and address are as follows:

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General Conditions/EJ/TE 01-19-11 1 of 13

EXHIBIT D

GENERAL CONDITIONS

1. Independent Contractor. Contractor acknowledges, represents and warrants that Contractor is not a regular or temporary employee, joint venturer or partner of the City, but rather an independent Contractor. This Contract shall not be construed to create an agency, servant, employee, partnership, or joint venture relationship. As an independent Contractor, Contractor shall have no authority to bind City to any obligation or to act as City's agent except as expressly provided herein. Due to the independent Contractor relationship created by this Contract, City shall not withhold state or federal income taxes, the reporting of which shall be Contractor's sole responsibility.

2. Brokers. Contractor acknowledges, represents and warrants that Contractor has not hired, retained or agreed to pay any entity or person any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this Contract.

3. City Property. The rights to applicable plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials prepared for or obtained pursuant to this Contract, which, upon request, are to be delivered to City within a reasonable time, shall be deemed assigned to City. If applicable, Contractor shall prepare check prints upon request. Notwithstanding the foregoing, Contractor shall not be obligated to provide to City proprietary software or data which Contractor has developed or had developed for Contractor's own use; provided, however, that Contractor shall, pursuant to Section 15 below, indemnify, defend and hold harmless City from and against any discovery or Public Records Act request seeking the disclosure of such proprietary software or data.

4. Patents, Trademarks, Copyrights and Rights in Data. Contractor shall not publish or transfer any materials, discoveries, developments, concepts, designs, ideas, know how, improvements, inventions and/or original works of authorship resulting from activities supported by this Contract without the express prior written consent of the City Manager. If anything resulting from activities supported by this Contract is patentable, trademarkable, copyrightable or otherwise legally protectable, City reserves the exclusive right to seek such intellectual property rights. Notwithstanding the foregoing, Contractor may, after receiving City's prior written consent, seek patent, trademark, copyright or other intellectual property rights on anything resulting from activities supported by this Contract. However, City reserves, and Contractor irrevocably grants, a nonexclusive, fully paid-up, royalty-free, assumable, perpetual, worldwide license, with the right to transfer, sublicense, practice and exploit said license and the right to make, have made, copy, modify, make derivative works of, use, sell, 1160
General Conditions/EJ/TE 01-19-11 2 of 13
import, and otherwise distribute under all applicable intellectual properties without restriction of any kind said license.

Contractor further agrees to assist City, at City's expense, in every proper way to secure the City’s rights in any patents, trademarks, copyrights or other intellectual property rights relating thereto, including the disclosure to City of all pertinent information and data with respect thereto. Contractor shall also assist City in the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which City shall deem necessary in order to apply for, obtain, maintain and transfer such rights, or if not transferable, to waive such rights. Contractor shall further assist City in the execution of all applications, specifications, oaths, assignments, recordations and all other instruments which City shall deem necessary in order to assign and convey to City, and any assigns and nominees the sole and exclusive right, title and interest in and to any patents, trademarks, copyrights or other intellectual property rights relating thereto. Contractor further agrees that its obligation to execute or cause to be executed, when it is in Contractor's power to do so, any such instruments or papers shall continue during and at all times after the end of Contractor's services and until the expiration of the last such intellectual property right. Contractor hereby irrevocably designates and appoints City, and its duly authorized officers, agents and servants, as its agent and attorney-in-fact, to act for and in its behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters of patents, copyright and other registrations. This power of attorney is coupled with an interest and shall not be affected by Contractor's subsequent incapacity.

5. Inspection. Contractor's performance, place of business and records pertaining to this Contract are subject to monitoring, inspection, review and audit by authorized representatives of the CITY, the State of California, and the United States Government.

If the project or services set forth in Exhibit A shall be performed on City or other public property, City shall have the right to inspect such work without notice. If such project or services shall not be performed on City or other public property, City shall have the right to inspect such work upon reasonable notice.

6. Services. The project or services set forth in Exhibit A shall be performed to the full satisfaction and approval of City. In the event that the project or services set forth in Exhibit A are also itemized by price, City, in its sole discretion, may, upon notice to Contractor, delete certain items or services set forth in Exhibit A, in which case there shall be a corresponding reduction in the amount of compensation paid to Contractor. 1161
General Conditions/EJ/TE 01-19-11 3 of 13
Contractor shall, at its own cost and expense, furnish all facilities and equipment necessary for Contractor to complete the project or perform the services required herein, unless otherwise provided in Exhibit A.

7. Records. Contractor shall keep and make available for inspection and copying by authorized representatives of the City, the State of California, and the United States Government, the Contractor's regular business records and such additional records pertaining to this Contract as may be required by the City.

Contractor shall retain all documents pertaining to this Contract for a period of five (5) years after this Contract's termination (or for any further period that is required by law) and until all Federal or State audits are complete and exceptions resolved for this contract's funding period. Upon request, CONTRACTOR shall make these records available to authorized representatives of the CITY, the State of California, and the United States Government.

Contractor shall keep full and detailed accounts, maintain records, and exercise such controls as may be necessary for proper financial management under this Contract. The Contractor’s accounting and control systems shall be satisfactory to City. Contractor's accounting systems shall conform to generally accepted accounting principles and all records shall provide a breakdown of total costs charged under this Contract, including properly executed payrolls, time records, utility bills, invoices and vouchers. The City shall be afforded prompt access to Contractor's records, books, and Contractor shall preserve such project records for a period of at least five (5 years after the termination of this Contract , or for such longer period as may be required by law.

Contractor shall permit City and its authorized representatives and accountants to inspect, examine and copy Contractor's books, records, accounts, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to the project or services set forth in Exhibit A, and any and all data relevant to this Contract at any reasonable time for the purpose of auditing and verifying statements, invoices, or bills submitted by Contractor pursuant to this Contract and shall provide such assistance as may be reasonably required in the course of such inspection. Contractor shall also allow City access to the record keeping and accounting personnel of Contractor.

City further reserves the right to examine and re-examine said books, records, accounts, and data during the five (5 year period following the termination of this Contract; and Contractor shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, and data in any manner whatever for five (5 years after the termination of this Contract. 1162
General Conditions/EJ/TE 01-19-11 4 of 13
Pursuant to California Government Code § 10527, the parties to this Contract shall be subject to the examination and audit of representatives of the Auditor General of the State of California for a period of three (3) years after final payment under this Contract. The examination and audit shall be confined to those matters connected with the performance of this Contract including, but not limited to, the cost of administering this Contract.

8. Changes and Extra Work. All changes and/or extra work under this Contract shall be performed and paid for in accordance with the following:

Only the City Council or the City Manager may authorize extra and/or changed work. Contractor expressly recognizes that other City personnel are without authorization to either order extra and/or changed work or waive contract requirements. Failure of Contractor to secure the authorization for such extra and/or changed work shall constitute a waiver of any and all right to adjustment in contract price due to such unauthorized work and Contractor thereafter shall be entitled to no compensation whatsoever for performance of such extra and/or changed work.

If Contractor is of the opinion that any work which Contractor has been directed to perform is beyond the scope of this Contract and constitutes extra work, Contractor shall promptly notify City of the fact. The City shall make a determination as to whether or not such work is, in fact, beyond the scope of this Contract and constitutes extra work. In the event that City determines that such work does constitute extra work, City shall provide extra compensation to Contractor on a fair and equitable basis. A change order or Contract Amendment providing for such compensation for extra work shall be negotiated between City and Contractor and executed by Contractor and the appropriate City official.

In the event City determines that such work does not constitute extra work, Contractor shall not be paid extra compensation above that provided herein and if such determination is made by City staff, said determination may be appealed to the City Council; provided, however, a written appeal must be submitted to the City Manager within five (5) days after the staff's determination is sent to Contractor. Said written appeal shall include a description of each and every ground upon which Contractor challenges the staff's determination.

9. Additional Assistance. If this Contract requires Contractor to prepare plans and specifications, Contractor shall provide assistance as necessary to resolve any questions regarding such plans and specifications that may arise during the period of advertising for bids, and Contractor shall issue 1163
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any necessary addenda to the plans and specifications as requested. In the event Contractor is of the opinion that City's requests for addenda and assistance is outside the scope of normal services, the parties shall proceed in accordance with the changes and extra work provisions of Section 8 of these General Conditions.

10. Professional Ability. Contractor acknowledges, represents and warrants that Contractor and its employees are skilled and able to competently provide the services hereunder, and possess all professional licenses, certifications, and approvals necessary to engage in their occupations.

City has relied upon the professional ability and training of Contractor as a material inducement to enter into this Contract. Contractor shall perform in accordance with generally accepted professional practices and standards of Contractor's profession. In the event that City, in its sole discretion, desires the removal of any person employed or retained by Contractor to perform services hereunder, such person shall be removed immediately upon receiving notice from City.

11. Business License. Contractor shall obtain a Richmond Business License before performing any services required under this Contract. The failure to so obtain such license shall be a material breach of this Contract and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual or extraordinary circumstances without necessitating any modification of this Contract to reflect such waiver.

12. Termination Without Default. Notwithstanding any provision herein to the contrary, City may, in its sole and absolute discretion and without cause, terminate this Contract at any time prior to completion by Contractor of the project or services hereunder, immediately upon written notice to Contractor. Contractor may terminate this Contract at any time in its sole and absolute discretion and without cause upon 30 days' written notice to City. In the event of termination by either party, Contractor shall be compensated for: (1) all authorized work satisfactorily performed prior to the effective date of termination; (2) necessary materials or services of others ordered by Contractor for this Contract, prior to receipt of notice of termination, irrespective of whether such materials or services of others have actually been delivered, provided that Contractor is not able to cancel such orders. Compensation for Contractor in such event shall be determined by City in accordance with the percentage of the project or services completed by Contractor; and all of Contractor's finished or unfinished work product through the time of the City's last payment shall be transferred and assigned to City. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.
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13. Termination in the Event of Default. Should Contractor fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Contract, City may immediately terminate this Contract by giving written notice of such termination, stating the reasons for such termination. Contractor shall be compensated as provided in Section 12 of these General Conditions; provided, however, there shall be deducted from such amount the amount of damage, including attorney's fees, expert witness fees and costs, if any, sustained by City by virtue of Contractor's breach of this Contract. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.

14. Conflict of Interest. Contractor acknowledges, represents and warrants that Contractor shall avoid all conflicts of interest (as defined under any federal, state or local statute, rule or regulation, or at common law) with respect to this Contract. Contractor further acknowledges, represents and warrants that no City official or employee has any economic interest, as defined in Title 2, California Code of Regulations §§ 18703.1 through 18703.5, with Contractor that would invalidate this Contract. Contractor acknowledges that in the event that Contractor shall be found by any judicial or administrative body to have any conflict of interest (as defined above) with respect to this Contract, all consideration received under this Contract shall be forfeited and returned to City forthwith. This provision shall survive the termination of this Contract for one (1) year.

15. Indemnification.
(a) If this Contract is a contract for design professional services subject to California Civil Code Section 2782.8(a) and Contractor is a design professional, as defined in California Civil Code Section 2782.8(b)(2), Contractor shall hold harmless, defend and indemnify the City, its officers, agents, employees, and volunteers from and against any and all claims, damages, losses, and expenses including attorneys’ fees arising out of, or pertaining to, or relating to the negligence, recklessness, or willful misconduct of the Contractor, except where caused by the active negligence, sole negligence, or willful misconduct of the City. To the fullest extent permitted by law, Contractor shall immediately defend and indemnify the City and its officers, agents, employees, and volunteers from and against any and all liabilities, regardless of nature or type, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, or its employees, agents, or subcontractors.

Liabilities subject to the duties to defend and indemnify include, without limitation, any and all claims, losses, damages, penalties, fines, and judgments; associated investigation and administrative expenses; defense costs, including but not limited to reasonable attorneys’ fees; court costs; and costs of alternative dispute resolution. Contractor’s obligation to 1165
General Conditions/EJ/TE 01-19-11 7 of 13
indemnify applies unless it is finally adjudicated that the liability was caused by the sole active negligence or sole willful misconduct of an indemnified party.
(b) If this Contract is not a contract for design professional services subject to California Civil Code Section 2782.8(a) or Contractor is not a design professional as defined in California Civil Code Section 2782.8(b)(2), Contractor shall indemnify, defend, and hold harmless the City, its officers, agents, employees and volunteers from any and all claims, suits, or actions of every name, kind and description, brought forth on account of injuries to or death of any person or damage to property arising from or connected with the willful misconduct, negligent acts, errors or omissions, ultra-hazardous activities, activities giving rise to strict liability, or defects in design by Contractor or any person directly or indirectly employed by, or acting as, the agent for Contractor in the performance of this Contract, including the concurrent or successive passive negligence of the City, its officers, agents, employees or volunteers.
(c) It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Contractor shall be obligated to defend, in all legal, equitable, administrative, or special proceedings, with counsel approved by the City, the City and its officers, agents, employees, and volunteers, immediately upon tender to Contractor of the claim in any form or at any stage of an action or proceeding, whether or not liability is established. An allegation or determination that persons other than Contractor are responsible for the claim does not relieve Contractor from its separate and distinct obligation to defend under this Section 15. The obligation to defend extends through final judgment, including exhaustion of any appeals. The defense obligation includes an obligation to provide independent counsel if Contractor asserts that liability is caused in whole, or in part, by the negligence or willful misconduct of an indemnified party. (d) The review, acceptance or approval of the Contractor’s work or work product by any indemnified party shall not affect, relieve or reduce the Contractor’s indemnification or defense obligations. This Section 15 survives completion of the services or the termination of this Contract.

The provisions of this Section 15 are not limited by, and do not affect, the provisions of this Contract relating to insurance.
(e) Acceptance of insurance certificates and endorsements required under this Contract does not relieve Contractor from liability under this Section

15. This Section 15 shall apply whether or not such insurance policies are determined to be applicable to any such damages or claims for damages.

16. Safety. Contractor acknowledges that the City is committed to the highest standards of workplace safety. Contractor shall perform all work hereunder in full compliance with applicable local, state and federal safety requirements including but not limited to Occupational Safety and Health Administration requirements, and shall assume sole and complete 1166
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responsibility for the safety of Contractor's employees and any subContractor's employees. If a death, serious personal injury or substantial property damage occurs in connection with the performance of this Contract, Contractor shall immediately notify the City by telephone.

17. Insurance. Insurance requirements are set forth in Exhibit F to this Contract. Contractor shall abide by the insurance requirements set forth in said Exhibit F.

18. Non-Liability of Officials and Employees of the City. No official or employee of the City shall be personally liable for any default or liability under this Contract.

19. Compliance with Laws. Contractor shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, with respect to this Contract, including without limitation environmental laws, employment discrimination laws and prevailing wage laws. Compliance under this provision includes compliance with all provisions of the Richmond Municipal Code ("Municipal Code"), including Chapters 2.50, 2.52, 2.56, and 2.60, if applicable.

Contractor acknowledges that under § 2.60.070 of the Municipal Code ("Living Wage Ordinance"), Contractor shall promptly provide to City documents and information verifying its compliance with the Living Wage Ordinance. Also as prescribed in § 2.60.070, Contractor shall notify each of its affected employees with regards to the wages that are required to be paid pursuant to the Living Wage Ordinance.

Contractor shall comply with § 2.28.030 of the Municipal Code, obligating every Contractor or subcontractor under a contract or subcontract with the City for public work or for goods or for services to refrain from discriminatory employment or subcontracting practices on the basis of race, color, sex, sexual orientation, religious creed, national origin or ancestry of any employee, any applicant for employment or any potential subcontractor.

Contractor acknowledges that the City’s Drug Free Workplace Policy, Violence in the Workplace Policy and the Policy Against Workplace Harassment, are available on the City’s website at
http://www.ci.richmond.ca.us/workplacepolicies . Contractor agrees to abide by the terms and conditions of said policies.

20. Limitations upon Subcontracting and Assignment. This Contract binds the heirs, successors, assigns and representatives of Contractor. The Contractor shall not enter into subcontracts for any work contemplated 1167
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under this Contract and shall not assign this Contract, nor any portion hereof or monies due or to become due, without the prior written consent of the City Council or its designee.

Contractor acknowledges that the services which Contractor shall provide under this Contract are unique, personal services which, except as otherwise provided herein, Contractor shall not assign or sublet to any other party without the prior written approval of City, which approval may be withheld in City's sole and absolute discretion. In the event that City, in writing, approves any assignment or subletting of this Contract or the retention of subcontractors by Contractor, Contractor shall provide to City upon request copies of each and every subcontract contract prior to the execution thereof by Contractor and subcontractor. Any assignment by Contractor of any or all of its rights under this Contract without first obtaining City's prior written consent shall be a default under this Contract.

The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor (if applicable), or of the interest of any general partner or joint venturer or syndicate member if Contractor is a partnership or joint-venture or syndicate, which shall result in a change of control of Contractor, shall be deemed an assignment. For this purpose, control shall mean fifty percent or more of the voting power or twenty-five percent or more of the assets of the corporation, partnership or joint-venture.

21. Integration. This Contract constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes any previous oral or written agreement; provided, however, that correspondence or documents exchanged between Contractor and City may be used to assist in the interpretation of the Exhibits to this Contract.

22. Modifications and Amendments. This Contract may be modified or amended only by a change order or Contract Amendment executed by both parties and approved as to form by the City Attorney.

23. Conflicting Provisions. In the event of a conflict between these General Conditions and those of any Exhibit or attachment hereto, these General Conditions shall prevail; provided, however, that any Special Conditions as set forth in Exhibit E shall prevail over these General Conditions. In the event of a conflict between the terms and conditions of any two or more Exhibits or attachments hereto, those prepared by City shall prevail over those prepared by the Contractor, and the terms and conditions preferred by the City shall prevail over those preferred by the Contractor.

24. Non-exclusivity. Notwithstanding any provision herein to the contrary, the services provided by Contractor hereunder shall be non-exclusive, and 1168
General Conditions/EJ/TE 01-19-11 10 of 13
City reserves the right to employ other Contractors in connection with the project.

25. Exhibits. All Exhibits hereto are made a part hereof and incorporated herein by reference; provided, however, that any language in Exhibit A which does not pertain to the project description, proposal, scope of services, or method of compensation (as applicable) , or any corresponding responsibilities of City, shall be deemed extraneous to, and not a part of, this Contract.

26. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligations hereunder to the extent that the performance of such an obligation is prevented or delayed by reason of acts of God, strikes, boycotts, lock-outs, inability to procure materials not related to the price thereof, failure of power, restrictive governmental laws and regulations enacted after the date of this Contract, riots, civil unrest, acts of terrorism, insurrection, war, declaration of a state or national emergency or other reasons of a like nature not within the reasonable control of such party.

27. Time of the Essence. Time is of the essence of this Contract. Contractor and City agree that any time period set forth in Exhibit A represents their best estimates with respect to completion dates and both Contractor and City acknowledge that departures from the schedule may occur.

Therefore, both Contractor and City will use reasonable efforts to notify one another of changes to the schedule. Contractor shall not be responsible for performance delays caused by others, or delays beyond Contractor's control, and such delays shall extend the times for performance of Contractor's work.

28. Confidentiality. Contractor agrees to comply with, and to require its employees, agents and partners to comply with, all applicable State or Federal statutes or regulations respecting confidentially, including but not limited to, the identity of persons served under this Contract, their records, or services provided them, and assures that:

All applications and records concerning any individual made or kept by Contractor or any public officer or agency in connection with the administration of or relating to services provided under this Contract will be confidential, and will not be open to examination for any purposes not directly connected with the administration of such service.

No person will publish or disclose or permit or cause to be published or disclosed, any list of persons receiving services, except as may be required in the administration of such service.
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General Conditions/EJ/TE 01-19-11 11 of 13

29. Third Parties. Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Contract shall not be considered "third parties."

30. Governing Law. This Contract shall be construed in accordance with the law of the State of California without regard to principles of conflicts of law.

This Contract is made in Contra Costa County, California, and any action relating to this Contract shall be instituted and prosecuted in the courts of Contra Costa County, California.

31. Nonrenewal. Contractor understands and agrees that there is no representation, implication, or understanding that the services provided by Contractor under this Contract will be purchased or renewed by the City under a new contract following expiration or termination of this Contract, and waives all rights or claims to notice or hearing respecting any failure by City to continue the purchase of all or any failure to continue purchase of all or any such services from Contractor.

32. Claims. Any claim by Contractor against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City shall be waived if not made within six months after accrual of the cause of action.

33. Interpretation. This Contract shall be interpreted as if drafted by both parties.

34. Warranty. In the event that any product shall be provided to the City as part of this Contract, Contractor warrants as follows: Contractor possesses good title to the product and the right to transfer the product to City; the product shall be delivered to the City free from any security interest or other lien; the product meets any specifications contained herein; the product shall be free from material defects in materials and workmanship under normal use for a period of one (1) year from the date of delivery; and the product shall be fit for its intended purpose(s). Notwithstanding the foregoing, consumable and maintenance items (such as light bulbs and batteries) shall be warranted for a period of one hundred and eighty (180) days from the date of delivery. All repairs during the warranty period shall be promptly performed by Contractor, at Contractor's expense, including shipping.

35. Severability. In the event that any of the provisions or portions or applications thereof of this Contract are held to be unenforceable or invalid by any court of competent jurisdiction, City and Contractor shall negotiate an equitable adjustment in the provisions of the Contract with a view 1170
General Conditions/EJ/TE 01-19-11 12 of 13
toward effecting the purpose of this Contract, and the validity and enforceability of the remaining provisions or portions or applications thereof, shall not be affected thereby.

36. Authority. City warrants and represents that the signatory hereto (the Mayor of the City of Richmond or the City Manager) is duly authorized to enter into and execute this Contract on behalf of City. The party signing on behalf of Contractor warrants and represents that he or she is duly authorized to enter into and execute this Contract on behalf of Contractor, and shall be personally liable to City if he or she is not duly authorized to enter into and execute this Contract on behalf of Contractor.

37. Waiver. The waiver by City of any breach of any term or provision of this Contract shall not be construed as a waiver of any subsequent breach.

Inspections or approvals, or statements by any officer, agent or employee of the City relating to the Contractor’s performance, or payments therefore, or any combination of these acts, shall not relieve the Contractor’s obligation to fulfill this Contract as prescribed; nor shall the City be thereby stopped from bringing any action for damages or enforcement arising from any failure to comply with any of the terms and conditions of this Contract.

38. Possessory Interest. If this Contract results in the Contractor having possession of, claim to or right to the possession of land or improvements, but does not vest ownership of the land or improvements in the same person, or if this Contract results in the placement of taxable improvements on tax exempt land (Revenue and Taxation Code 107), such interest or improvements may represent a possessory interest subject to property tax, and Contractor may be subject to the payment of property taxes levied on such interest.

39. Performance and Final Acceptance.

Contractor represents that it is experienced, qualified, registered, licensed, equipped, organized and financed to perform the services under this Contract.

Contractor shall perform the services under this Contract with that degree of skill and judgment normally exercised by professional firms performing services of a similar nature in the State of California, and shall be responsible for the professional quality, technical accuracy and coordination of the services it performs under this Contract. In addition to the other rights and remedies which City may have, Contractor shall, at its own expense, correct any services which fail to meet the above standard. 1171
General Conditions/EJ/TE 01-19-11 13 of 13
City shall provide Contractor an opportunity to cure errors and omission which may be disclosed during the review of submittals, with no increase in the authorized Contract Payment Limit. Should Contractor fail to make necessary corrections in a timely manner, such corrections shall be made by the City and the cost thereof shall be charged to Contractor.

If warranted, City shall determine, and Contractor may request such determination, that Contractor has satisfactorily completed performance of this Contract. Upon such determination, City shall issue to Contractor a written Notice of Final Acceptance, after which Contractor shall not incur further costs under this Contract. Contractor shall respond to such Notice of Final Acceptance by executing and submitting to City a Release and Certificate of Final Payment.

40. Survival. The rights and obligations of the parties which by their nature survive termination or completion of the services covered by this Contract shall remain in full force and effect after termination or completion. 1172
For the Contract between the City of
Richmond and

EXHIBIT E

SPECIAL CONDITIONS
The General Conditions are hereby amended to include the following modifications and/or provisions (if applicable):
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CITY OF RICHMOND
Sanctuary City Compliance Statement
The undersigned, an authorized agent of (hereafter
"Contractor"), has had an opportunity to review the requirements of City of Richmond Ordinance 12-18 (hereafter "Sanctuary City Contracting Ordinance" or “SCCO”). Contractor understands and agrees that the City may choose with whom it will maintain business relations and may refrain from contracting with any person or entity that provides Data Broker or Extreme Vetting services to the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security (“ICE”). Contractor understands the meaning of the following terms used in the SCCO:
a. "Data Broker” means either of the following:
i. The collection of information, including personal information about consumers, from a wide variety of sources for the purposes of reselling such information to their customers, which include both private-sector business and government agencies; ii. The aggregation of data that was collected for another purpose from that for which it is ultimately used.
b. “Extreme Vetting” means data mining, threat modeling, predictive risk analysis, or other similar services."
Contractor understands that it is not eligible to receive or retain a City contract if at the time the Contract is executed, or at any time during the term of the Contract, it provides Data Broker or Extreme Vetting services to ICE.

Contractor further understands and agrees that Contractor's failure to comply with the SCCO shall constitute a material default of the Contract and the City Manager may terminate the Contract and bar Contractor from bidding on future contracts with the City for five (5) years from the effective date of the contract termination.

By executing this Statement, Contractor certifies that it complies with the requirements of the SCCO and that if at any time during the term of the Contract it ceases to comply, Contractor will promptly notify the City Manager in writing. Any person or entity who knowingly or willingly supplies false information in violation of the SCCO shall be guilty of a misdemeanor and subject to a $1,000 fine.

Based on the foregoing, the undersigned declares under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed this day of , 20 , at , California.

Printed Name: Title:

Signed: Date:

Business Entity:

Vendor SCCO Compliance Statement (Augt2020)
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For the Contract between the City of
Richmond and

EXHIBIT F

INSURANCE PROVISIONS
During the entire term of this Contract and any extension or modification thereof, the CONTRACTOR shall keep in effect insurance policies meeting the insurance requirements specified in the insurance provisions which are attached hereto and incorporated herein by this reference.
1175
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:

Consultants and Contractors
Type 1 – Page 1 of 4
Revised: September 2011
In all instances where a CONTRACTOR or its representatives will be conducting business and/or providing services, the City requires the following MINIMUM insurance requirements and limits.

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

CONTRACTOR agrees that in the event of loss due to any of the perils for which it has agreed to provide Commercial General Liability insurance, CONTRACTOR shall look solely to its insurance for recovery. CONTRACTOR hereby grants to CITY, on behalf of any insurer providing Commercial General Liability insurance to either CONTRACTOR or CITY with respect to the services of CONSULTANT herein, a waiver of any right to subrogation which any such insurer of said CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance.

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

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

Minimum coverage is detailed below. The policy limits of coverage shall be made available to the full limits of the policy.

The minimum limits stated herein shall not serve to reduce the policy limits of coverage of CONTRACTOR.

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

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

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

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

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

5. Original and Separate Waiver of Subrogation for Workers’ Compensation and Builder’s Risk/ Course of Construction Insurance.

6. Builder’s Risk/Course of Construction insurance covering all risks of loss less policy exclusions when the City of Richmond has a financial interest in the property. – (Only required for Construction Contracts involving property)

7. Contractor’s Pollution Liability (if applicable for Construction Contractors) Required Coverage Minimum Limits
Workers’ Compensation and
Employers’ Liability
Statutory limits as required by the State of California including $1 million Employers’ Liability per accident, per employee for bodily injury or disease.

If CONTRACTOR is self-insured, provide a certificate of Permission to SelfInsure, signed by the California Department of Industrial Relations and SelfInsurance. If contractor is a sole proprietor (has no employees) than contractor must sign “Contractor Release of Liability” found at:
http://www.ci.richmond.ca.us/index.aspx?nid=61.
1176
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:

Consultants and Contractors
Type 1 – Page 2 of 4
Revised: September 2011

PROJECT COST REQUIRED LIMIT
$0 - $5 million $2 million p/o
$5 million - $10 million $5 million p/o
Over $10 million $10 million p/o
Fireworks $5 million p/o
General Liability
(primary and excess limits
combined)

Includes coverage for bodily injury, personal injury, property damage and products and completed operations. The policy shall not exclude coverage for XCU perils (explosion, collapse, or damage to underground property).

If the policy includes a general aggregate, either the general aggregate shall apply separately to this project, service or location or the minimum required aggregate limit shall be twice the per occurrence limit ($4 million aggregate limit).

Policy shall be endorsed to name the City of Richmond as an additional insured per the conditions detailed below.

Automobile Liability $1,000,000 per occurrence for bodily injury and property damage.

Builders’ Risk/Course of
Construction – Covers property
under construction, repair or
renovation as well as equipment
and materials to be installed.
(Only required for Construction
Projects involving property and
equipment installation.)
Coverage shall include all risks of direct physical loss, excluding earthquake, for an amount equal to the full completed value of the covered structure or replacement value of alterations or additions, including soft costs and business interruption.

If the project does not involve new or major reconstruction, an Installation Floater may be acceptable. For such projects, a property installation floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken or destroyed during the performance of the Work, including during transit, installation and testing at the City of Richmond’s site.

The City of Richmond shall be named as loss payee as its interest may appear. The insurer shall waive all rights of subrogation against City.

Contractor’s Pollution Liability (if
applicable)
Protects against:
unexpected/unintended release of
pollution resulting from contractors
covered operations such as:

HVAC, paving, carpentry, pipeline
& tank installation, drillers,
remediation contractors,
maintenance, mechanical,
demolition, excavation, grading,
street/road construction,
residential & commercial builders.

Same limits as General Liability.

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

Additional Insured Endorsement Applicable to General Liability Coverage.

The City of Richmond, its officers, officials, employees, agents and volunteers are to be named as additional insureds for all liability arising out of the operations by or on behalf of the named insured, including but not limited to bodily injury, deaths and property damage or destruction arising in any respect directly or indirectly in the performance of this contract.

ISO form CG 20 10 (11/85) or its equivalent is required. The endorsement must not exclude products and completed operations coverage. If it does, then CG 20 37 (10/01) is also required. 1177
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:

Consultants and Contractors
Type 1 – Page 3 of 4
Revised: September 2011
Additional Insured Endorsement
(continued)
SAMPLE Endorsements can be found at
http://www.ci.richmond.ca.us/index.aspx?nid=61
Primary and Noncontributory The contractor’s insurance coverage must be primary coverage as it pertains to the City, its officers, officials, employees, agents and volunteers. Any insurance or self insurance maintained by the City is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance.

Waiver of Subrogation
Endorsement Form
Contractor’s insurer will provide a Waiver of Subrogation in favor of the City for Workers Compensation and Builder’s Risk/ Course of Construction coverage during the life of this contract.

SAMPLE Endorsements can be found at
http://www.ci.richmond.ca.us/index.aspx?nid=61
Deductibles and Self-Insured
Retentions
Any deductible or self-insured retention must be declared to and approved by the City. At the option of the City either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City or the CONTRACTOR shall procure a financial guarantee in an amount equal to the deductible or self-insured retention guaranteeing payment of losses and related investigations, claims administration and defense expenses.

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

Loss Payable Endorsement (only
required when Builder’s Risk
and/or Course of Construction
Insurance is required.)
Applicable to Builder’s Risk/Course of Construction naming the City of Richmond as Loss Payee.

SURETY BONDS
(If a Public Works/Engineering
Project)
The Contractor shall provide:

1. A Bid bond

2. A Performance Bond

3. A Payment Bond
Umbrella/Excess Liability Policies
If an Umbrella or Excess Liability Policy is used to meet the liability limits, coverage shall be as broad as specified for underlying coverages and cover those insured in the underlying policies.

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

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

CONTRACTOR agrees to defend and indemnify the City of Richmond for any damage resulting to it from failure of either CONTRACTOR or any subcontractor to take out or maintain the required insurance policies. The fact that insurance is obtained by CONTRACTOR, and/or CONTRACTOR’s subcontractors, will not be deemed to release or diminish the liability of CONTRACTOR, including, without limitation, liability under the indemnity provisions of this contract. Damages recoverable by CITY from CONTRACTOR or any third party will not be limited by the amount of the required insurance coverage.
1178
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:

Consultants and Contractors
Type 1 – Page 4 of 4
Revised: September 2011
Verification of Coverage
All original certificates and endorsements shall be received and approved by the City before work may begin. The City of Richmond reserves the right to require complete, certified copies of all required insurance policies including endorsements affecting the coverage at any time.

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

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

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

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

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

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

Consistent with Public Policy
The insuring provisions, insofar as they may be judged to be against public policy shall be void and unenforceable only to the minimum extent necessary so that the remaining terms and provisions herein may be consistent with public policy and thus enforceable.
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INVOICE
Services qty unit price amount
Remove all tile on fire department and install back on place 1.0 $64,573.00 $64,573.00 This agreement stipulates that Pablo restorations roofing will perform reroofing on address mentioned above with manager consent. Remove 36sq concrete clay tile roof on fire station and Remove 6sq flat roof, remove flashing metal, vents and tear off torch roof. Remove underlayment and bats 1 by 2, clean debris and dump garbage. Inspect all plywood and nail correctly. If we find rotten wood, only we cover 6 sheets plywood. Install 36sq high temperature, self-adhesive tile underlayment and a second layer synthetic special for tile so there are no more leaks. Install metal edge, install 1 by 2 bat to hold the tile. Install new vent metal and Install tile back on place on all roof, there is broken tile and some pieces that we need to cut and put on place we would install new ones matching existing ones (if the same ones are not available any more for order, we would get use ones that are matching existing so there is no difference.). Install same ridge back on place with concrete to match existing. Install underlayment dens deck prime, secure with screws and plates. Install clap metal edge special for TPO and install 6sq Peel stick single ply TPO color of your choice. Install drain, vents, pipe boots special for TPO. Install termination bar on all angle secure with screws and Install TPO membrane on wall and curb. Install counter flashing on stucco, secure with fasteners and seal on top with special sealer.

We have workmanship warranty for 5 years. Material for flat roof warranty 45 years NOTE: We look for the best affordable price for you. It’s required to get a permit if we do the process there would be a fee of $800 or you guys can do the process and get permit. Extra JOB BY HOUR $100 Tear off, Dump, Material Cost, Installation, Taxes and Insurance Included. 10% Deposit 50% upon Commence of work Balance due upon completion.

Plywood installation 1.0 $0.00 $0.00
Tear off old plywood and install new plywood the cost 1 square 100 feet cover is $650 City Permit 1.0 $800.00 $800.00
Our company standards 1.0 $0.00 $0.00
Pablo Restorations Roofing And Waterproof
city Of Richmond
city Of Richmond
5201 Valley View Road
El Sobrante, CA 94803
(510) 620-6896
[email protected]

CONTACT US
2124 Hellings Ave
Richmond, CA 94801
(510) 866-9288
[email protected]

INVOICE

INVOICE DATE
DUE
#243
Apr 09, 2024
Upon receipt
AMOUNT DUE $65,373.00
Pablo Restorations Roofing And
Waterproof 1052524
http://www.pabloroofingca.com 1 of 2 1203
We are confident on our job quality and warranty our costumer's satisfaction. We use the best materials to fulfill owners' necessities and our crew knows that work at the best of their capacity express our company standards and provides a better experience for our customers.

If you decide to accept the quote please select approve so we can schedule your project. The amount show is the total for the project but if you decide to pay with credit card or visa we would add a 4% fee to the total amount.

Total $65,373.00
Pablo Restorations Roofing And
Waterproof 1052524
http://www.pabloroofingca.com 2 of 2 1204

INVOICE
Services qty unit price amount
Revice cost estimate for extra job 1.0 $8,012.70 $8,012.70 Our crew would perform extra job with manager consent remove 220ft metal through wall then install new metal secure with screws and nails and seal on top with caulking. We also include 3 base vent flashing this includes tear off, material and labor
Pablo Restorations Roofing And Waterproof
city Of Richmond
city Of Richmond
5201 Valley View Road
El Sobrante, CA 94803
(510) 620-6896
[email protected]

CONTACT US
2124 Hellings Ave
Richmond, CA 94801
(510) 866-9288
[email protected]

INVOICE

INVOICE DATE
DUE
#247
May 17, 2024
Upon receipt
AMOUNT DUE $8,012.70
Total $8,012.70
Pablo Restorations Roofing And
Waterproof 1052524
http://www.pabloroofingca.com 1 of 1
Carl Capistrano 5-20-24
1205

June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, Director of Public Works
Tawfic Halaby, Deputy Director of Public Works –
Operations & Maintenance
Subject: List of Projects for Fiscal Year 2024-25 Road Maintenance and Rehabilitation Account Funding Under Senate Bill 1
FINANCIAL IMPACT: The City is eligible to receive a projected $2,996,001 in new gas tax revenues for street roadway maintenance.

Senate Bill 1 (SB 1) Road Maintenance and
Rehabilitation Account monies are deposited into SB 1
Fund 1019

PREVIOUS COUNCIL
ACTION:

N/A

STATEMENT OF THE
ISSUE:

The City must submit a list of projects to the California Transportation Commission in order to receive Fiscal
Year 2024-25 Road Maintenance and Rehabilitation
Account funding under Senate Bill 1
RECOMMENDED ACTION: ADOPT a resolution approving the project list for Senate Bill 1 Road Maintenance and Rehabilitation Account
funding for Fiscal Year 2024-25 – Public Works
Department (Daniel Chavarria 510-620-5478/Tawfic
Halaby 510-620-5482).

AGENDA
REPORT
1206

June 18, 2024
DISCUSSION:

In April 2017, the Governor signed Senate Bill (SB) 1 which is known as the Road Repair and Accountability Act of 2017. To address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road systems, SB 1 increases per gallon fuel excise taxes, increases diesel fuel sales taxes and vehicle registration fees, and provides for inflationary adjustments to tax rates in future years.

Beginning November 1, 2017, the State Controller began depositing various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.

SB 1 emphasizes the importance of accountability and transparency in the delivery of California’s transportation programs. Therefore, in order to be eligible for RMRA funding, statute requires cities and counties to provide basic annual RMRA project reporting to the California Transportation Commission (CTC).

To remain eligible for RMRA funding, the City is required to submit a list of City Council approved proposed projects to CTC. The project list includes priority projects in Richmond that are eligible for SB 1 RMRA funds. The anticipated funding will be used to supplement existing funding sources on these projects and will enable the City to complete these priority projects, including design, construction, and construction management, and may also enable the City to leverage additional grant funds.

The City utilized the StreetSaver® Pavement Management System to prioritize a list of preventive maintenance streets. The following projects will be submitted to the state of California, to remain eligible for the current fiscal year allocation of SB 1 funding:

Project Title: 13th Street Complete Streets Project
Project Location: 13th Street from Esmond Avenue to Costa Avenue Project Description: The project will improve lighting, reduce traffic speeds, improve sidewalk accessibility and curb ramps, install safe pedestrian crossings, plant shade trees, install bicycle facilities, improve planting strips and bus stops, and rehabilitate pavement.

Project Title: 2024 Pavement Preventive Maintenance Project Project Location: See Attachment 1
Project Description: The project will include crack sealing and slurry sealing, installation of pavement markings, traffic striping, pavement markers and curb painting.

Slurry sealing is a cost-effective preventive maintenance treatment for streets in good condition that will keep them in good condition for several more years and delay further roadway deterioration that is more costly to rehabilitate. The slurry seal preventive 1207

June 18, 2024
maintenance treatment is anticipated to have a useful life of 5-7 years. The design is under way and construction is anticipated to occur during Fall 2024.

DOCUMENTS ATTACHED:

Attachment 1 – FY2024-25 SB 1 Resolution and Project List (Attachment A) 1208
Reso. No.

RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, APPROVING THE APPROPRIATION OF $2,966,001 FROM THE 2024- 25 SENATE BILL 1 FUND BALANCE TO THE 2024-25 PAVING PROGRAM WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April, 2017, in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $2,966,001 in RMRA funding in Fiscal Year 2024-25 from SB 1; and
WHEREAS, this is the eighth year in with the City is receiving SB 1 funding and the SB 1 funding will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City used the StreetSaver® Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets and bridges and add active transportation infrastructure throughout the City both now and in the future; and
WHEREAS, the StreetSaver® Pavement Management System, and the 2021 California Statewide Local Streets and Roads Needs Assessment, found that the City’s streets and roads are in fair condition, and this revenue will help maintain our streets and roads in fair condition with the long-term goal of improving the condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and green infrastructure, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of Richmond, State of California, as follows:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2024-25 Road Maintenance and Rehabilitation Account revenues:

Project Title: 13th Street Complete Streets Project
Project Description: The project will improve lighting, reduce traffic speeds, improve sidewalk accessibility and curb ramps, install safe pedestrian crossings, plant shade trees, install bicycle facilities, improve planting strips and bus stops, and rehabilitate pavement.

Project Location: 13th Street from Esmond Avenue to Costa Avenue 1209
Reso. No.

Estimated Project Start Schedule: Construction anticipated to begin February, 2025.

Estimated Project Useful Life: 20 years
Project Title: 2024 Pavement Preventive Maintenance Project Project Description: The project will include crack sealing and slurry sealing, installation of pavement markings, traffic striping, pavement markers and curb painting, of streets in good condition to ensure they remain in good condition for an additional 5-7 years.

Project Location: Various Locations throughout the City, listed in Attachment A Estimated Project Start Schedule: Construction anticipated to begin September, 2024.

Estimated Project Useful Life: 5-7 years
**************************
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held on June 18, 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. , finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on June 18, 2024.

Pamela Christian, Clerk of the City of Richmond
1210

ATTACHMENT A

CITY OF RICHMOND

PUBLIC WORKS DEPARTMENT
FY 2024-25 RMRA LOCAL STREETS AND ROADS FUNDING

PROPOSED PREVENTIVE MAINTENANCE PROJECT LIST OF STREETS

STREET NAME BEGIN LOCATION END LOCATION
USEFUL
LIFE
11TH STREET N/O ROOSEVELT S/O PENNSYLVANIA 5-7 YRS
11TH STREET N/O PENNSYLVANIA END 5-7 YRS
12TH STREET N/O BARRETT S/O ROOSEVELT 5-7 YRS
12TH STREET N/O ROOSEVELT S/O PENNSYLVANIA 5-7 YRS
13TH STREET N/O BARRETT END 5-7 YRS
16TH STREET ROOSEVELT S/O PENNSYLVANIA 5-7 YRS
16TH STREET N/O PORTOLA ROOSEVELT 5-7 YRS
1ST STREET END S/O MACDONALD 5-7 YRS
26TH STREET N/O LINCOLN S/O MARICOPA 5-7 YRS
26TH STREET N/O BARRETT S/O ROOSEVELT 5-7 YRS
27TH STREET N/O ROOSEVELT S/O GRANT 5-7 YRS
30TH STREET N/O BARRETT S/O ROOSEVELT 5-7 YRS
32ND STREET N/O ROOSEVELT S/O CLINTON 5-7 YRS
32ND STREET N/O GARVIN S/O MCBRYDE 5-7 YRS
32ND STREET 100' N/O RHEEM TULARE 5-7 YRS
34TH STREET N/O MCBRYDE 100' N/O HUMPHREY 5-7 YRS
34TH STREET 100' N/O HUMPHREY 122' N/O RHEEM 5-7 YRS
36TH STREET N/O ROOSEVELT S/O CERRITO 5-7 YRS
37TH STREET CLINTON CERRITO 5-7 YRS
44TH STREET S/O WILSON END 5-7 YRS
5TH STREET RIPLEY ELGIN 5-7 YRS
5TH STREET ELGIN PENNSYLVANIA 5-7 YRS
5TH STREET PENNSYLVANIA LUCAS 5-7 YRS
6TH STREET RIPLEY PENNSYLVANIA 5-7 YRS
8TH STREET N/O LINCOLN S/O TRIANGLE (CIRCLE) 5-7 YRS
B STREET N/O W NEVIN S/O W BARRETT 5-7 YRS
BAYWOOD DRIVE TRAILSIDE DR CANYON OAKS RD 5-7 YRS
BONDS 29TH 30TH 5-7 YRS
BONITA ROAD MONTE CRESTA END 5-7 YRS
BRISTOL COURT CANTERBURY END 5-7 YRS
CAMPBELL GATELY CREELY 5-7 YRS
CANYON CREEK DRIVE TRAILSIDE DR END 5-7 YRS
CANYON OAKS DRIVE BAYWOOD DR END 5-7 YRS
CAPITOL HILL BARTH END 5-7 YRS
CARL AVE MONTEREY ST CARLSON BLVD 5-7 YRS
CHANSLOR AVENUE 1ST STREET 4TH STREET 5-7 YRS
CHAVEZ STREET SO 29TH SO 30TH 5-7 YRS
CIVIC CENTER PLAZA N/O MACDONALD S/O NEVIN 5-7 YRS
CLARENCE STREET GRANDVIEW WESTERN DR 5-7 YRS
CLINTON AVENUE E/O 36TH STREET W/O 37TH STREET 5-7 YRS
COACH COURT COACH END 5-7 YRS
COLEMAN CIRCLE ROCKROSE WAY (S) ROCKROSE WAY (N) 5-7 YRS COLLINS COURT E/O COLLINS END 5-7 YRS
COLLINS ST W BISSEL W CHANSLOR AVE 5-7 YRS
COLUMBIA AVENUE SAN LUIS CARLSON 5-7 YRS
COLUSA AVENUE KINGS PLACE SAN JOAQUIN 5-7 YRS
CREELY AVENUE CYPRESS CAMPBELL 5-7 YRS
CREELY AVENUE CAMPBELL S/O 55TH STREET 5-7 YRS
CUTTING FRONTAGE ROAD SO 41ST STREET SO 45TH STREET 5-7 YRS DEER PARK DRIVE ROCK ROSE WAY SELMI GROVE 5-7 YRS
DEER RUN CASTRO RANCH RD END 5-7 YRS
DESERET DRIVE SANTA RITA FRAN 5-7 YRS
E RICHMOND AVENUE WINE E/O END 5-7 YRS
E RICHMOND AVENUE E/O GARRARD E/O WINE 5-7 YRS
ELM AVENUE 7TH STREET 8TH STREET 5-7 YRS
1211 page 1 of 3

ATTACHMENT A

CITY OF RICHMOND

PUBLIC WORKS DEPARTMENT
FY 2024-25 RMRA LOCAL STREETS AND ROADS FUNDING

PROPOSED PREVENTIVE MAINTENANCE PROJECT LIST OF STREETS

STREET NAME BEGIN LOCATION END LOCATION
USEFUL
LIFE
EUCLID AVE GROVE ST 29TH ST 5-7 YRS
FALCON COURT ROCK ROSE WAY END 5-7 YRS
FALLON AVENUE CAMPBELL W END 5-7 YRS
FALLON AVENUE CAMPBELL E END 5-7 YRS
FIELD STONE DRIVE ROCK ROSEWAY (N) ROCK ROSE WAY (S) 5-7 YRS FLEMMING AVE ELLS CAMPBELL 5-7 YRS
FLEMMING AVE CAMPBELL E END 5-7 YRS
FLEMMING AVE ELLS W END 5-7 YRS
FLORIDA AVENUE HARBOUR WAY SO 11TH STREET 5-7 YRS
FLORIDA AVENUE SO 11TH STREET SO 13TH STREET 5-7 YRS
FOLLETT STREET N/O CHANSLOR S/O BISSELL 5-7 YRS
GARVIN AVENUE W/O LASSEN W/O HUMBOLDT 5-7 YRS
GATELY ELLS 55TH 5-7 YRS
GOLD COURT FRAN END 5-7 YRS
GOLDEN GATE AVE MONO CLARENCE 5-7 YRS
GRANDVIEW COURT N END S END 5-7 YRS
GREENRIDGE DRIVE CANYON END 5-7 YRS
GROVE STREET N/O CHANSLOR S/O BISSELL 5-7 YRS
HALL AVENUE MARINA WAY END 5-7 YRS
HIGHGATE HILL VIEW END 5-7 YRS
HOFFMAN BOULEVARD W/O SO 29TH W/O SO 34TH 5-7 YRS
HOMESTEAD CIRCLE HIGHGATE DRIVE (W HIGHGATE DRIVE (E) 5-7 YRS HOWARD AVENUE E/O 29TH STREET N/O MORAN 5-7 YRS
HOWARD AVENUE 29TH END 5-7 YRS
JEFFERSON AVENUE SO 56TH STREET CITY LIMITS 5-7 YRS
KERN STREET CLINTON MCBRYDE 5-7 YRS
LONEOAK DRIVE ROCK ROSE WAY SELMI GROVE 5-7 YRS
MAPLE AVENUE 7TH STREET 8TH STREET 5-7 YRS
MARINE OCEAN TEWKSBURY 5-7 YRS
MARY LANE QUAIL HILL END 5-7 YRS
MEADOW VIEW DRIVE PARK RIDGE DRIVE (S) PARK RIDGE DRIVE (N) 5-7 YRS MEADOW WEST COURT MEADOW VIEW DRIVE END 5-7 YRS
MESA WY N/O CLINTON (W) N/O CLINTON 5-7 YRS
MIRANTE COURT SANTA RITA END 5-7 YRS
MONARCH COURT ROCK ROSE WAY END 5-7 YRS
MONARCH WAY ROCK ROSE WAY ATLAS ROAD 5-7 YRS
MONO STREET GOLDEN GATE AVENUE W RICHMOND 5-7 YRS
MONTEREY STREET BURLINGAME N END 5-7 YRS
MORNINGSIDE DRIVE FULL MOON END 5-7 YRS
MULBERRY COURT MEADOW VIEW DRIVE END 5-7 YRS
MULBERRY PLACE MEADOW VIEW DRIVE END 5-7 YRS
NUNN STREET E/O SO 50TH N/O SO 52ND 5-7 YRS
OAKMONT DRIVE MEADOW VIEW DRIVE ATLAS ROAD 5-7 YRS
OCEAN AVENUE MARINE END 5-7 YRS
OCEAN AVENUE MARINE WESTERN 5-7 YRS
PARKRIDGE DRIVE WOODGLEN DRIVE ROCK ROSE WAY 5-7 YRS
PHILLIPS COURT MOYERS END 5-7 YRS
PLAZA CIRCLE S/O SO 50TH E/O PLAZA CIRCLE 5-7 YRS
PLAZA WAY 49TH SO 50TH 5-7 YRS
PRIMROSE CIRCLE WILDFLOWER WAY (E) WILDFLOWER WAY (W) 5-7 YRS QUAIL HILL HILL CREST END 5-7 YRS
REGENTS COURT ROCK ROSE WAY END 5-7 YRS
RIDGEVIEW DRIVE BAYWOOD DR END 5-7 YRS
RIDGEWOOD WAY MORNING SUN END 5-7 YRS
ROOSEVELT AVENUE E/O HARBOUR DR E END 5-7 YRS
1212 page 2 of 3

ATTACHMENT A

CITY OF RICHMOND

PUBLIC WORKS DEPARTMENT
FY 2024-25 RMRA LOCAL STREETS AND ROADS FUNDING

PROPOSED PREVENTIVE MAINTENANCE PROJECT LIST OF STREETS

STREET NAME BEGIN LOCATION END LOCATION
USEFUL
LIFE
SELMI GROVE ROCK ROSE WAY (N) ROCK ROSE WAY (S) 5-7 YRS SHASTA STREET CARLSON TEHAMA 5-7 YRS
SHELDON DRIVE NELSON (S) UTAH 5-7 YRS
SIERRA AVENUE MCLAUGHLIN VENTURA 5-7 YRS
SKY PARK PLACE PARK RIDGE DRIVE END 5-7 YRS
SO 12TH STREET VIRGINIA MAINE 5-7 YRS
SO 12TH STREET N/O FLORIDA MAINE 5-7 YRS
SO 13TH STREET 175' N/O VIRGINIA FLORIDA 5-7 YRS
SO 19TH STREET VIRGINIA N/O FLORIDA 5-7 YRS
SO 20TH STREET CUTTING VIRGINIA 5-7 YRS
SO 26TH STREET CUTTING MAINE 5-7 YRS
SO 28TH STREET CUTTING MAINE 5-7 YRS
SO 29TH STREET HOFFMAN BONDS 5-7 YRS
SO 30TH STREET 450' SO OF CUTTING HOFFMAN 5-7 YRS
SO 31ST STREET N/O HOFFMAN S/O ERLANDSON 5-7 YRS
SO 31ST STREET S/O ERLANDSON CUTTING 5-7 YRS
SO 32ND STREET HOFFMAN ERLANDSON 5-7 YRS
SO 33RD STREET HOFFMAN JULIGA WOODS 5-7 YRS
SO 34TH STREET HOFFMAN JULIGA WOODS 5-7 YRS
SO 42ND STREET WALL OHIO 5-7 YRS
SO 44TH STREET WALL N END 5-7 YRS
SO 50TH STREET PLAZA NUNN 5-7 YRS
SONOMA STREET ESMOND 400' S/O ESMOND 5-7 YRS
SONOMA STREET 400' S/O ESMOND SOLANO 5-7 YRS
SUNLEAF RIDGEWOOD WY GROVEVIEW DR 5-7 YRS
SUNNY GLEN COURT MEADOW VIEW DRIVE END 5-7 YRS
SURREY LANE CONESTOGA END 5-7 YRS
SYLVIA COURT SANTA RITA END 5-7 YRS
TANGLEWOOD DRIVE PARK RIDGE DRIVE € PARK RIDGE DRIVE (W) 5-7 YRS TRAILSIDE DR SAN PABLO END 5-7 YRS
TREESIDE WAY GROVE VIEW SUNLEAF 5-7 YRS
TRIANGLE CIRCLE N/O 8TH N/O LINCOLN 5-7 YRS
VENTURA STREET CLINTON END 5-7 YRS
VIRGINIA AVENUE SO 19TH STREET SO 20TH STREET 5-7 YRS
VIRGINIA AVENUE 12TH MARINA 5-7 YRS
VIRGINIA AVENUE SO 20TH STREET SO 22ND STREET 5-7 YRS
VIRGINIA AVENUE SO 22ND STREET SO 23RD STREET 5-7 YRS
VIRGINIA AVENUE SO 23RD STREET SO 27TH STREET 5-7 YRS
VIRGINIA AVENUE SO 27TH STREET W/O 28TH STREET 5-7 YRS
W CHANSLOR CT W CHANSLOR AVE END 5-7 YRS
WAGONWHEEL WAY BUCKBOARD (W) BUCKBOARD (E) 5-7 YRS
WILD FLOWER WAY ATLAS ROAD END 5-7 YRS
WILSON AVENUE N/O ROOSEVELT 43RD STREET 5-7 YRS
WILSON AVENUE N/O 43RD STREET S/O CLINTON 5-7 YRS
WILSON AVENUE N/O CLINTON S/O GARVIN 5-7 YRS
WOOD GLEN DRIVE PARK RIDGE DRIVE (E) PARK RIDGE DRIVE (W) 5-7 YRS WOOD LAND PLACE PARK RIDGE DRIVE END 5-7 YRS
WOOD PLACE PENNSYLVANIA AVE END 5-7 YRS
1213 page 3 of 3

June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Lina Velasco, Director of Community Development
Daniel Chavarria, Director of Public Works
Tawfic Halaby, Deputy Director of Public Works
Greg Hardesty, Superintendent of Parks and
Landscaping
Subject: Groundwork Richmond Contract Amendment to Support Urban Forestry
FINANCIAL IMPACT: The contract is funded through the Environmental and Community Investment Agreement (ECIA) entered into
between Chevron and the City of Richmond. The ECIA
allocated $2 million for urban forestry as part of the
investments in community-based greenhouse gas
reduction programs (11733631-400201-2A1GA).

PREVIOUS COUNCIL
ACTION:

July 20, 2021

STATEMENT OF THE
ISSUE:

Since 2021, the City has been contracting with
Groundwork Richmond to administer its urban forestry
program, including tree plantings and early tree care.

This work was recently expanded with a Transformative
Climate Communities (TCC) implementation grant;
therefore, City staff is requesting approval of a contract amendment No. 1 to align the scope and budget with the
workplan and scope of the TCC grant related to urban
forestry.

AGENDA
REPORT
1214

June 18, 2024
RECOMMENDED ACTION: APPROVE a contract amendment No. 1 with Groundwork Richmond to increase the contract amount
by $686,889, for a total not to exceed amount of
$1,031,889, for a term beginning July 1, 2024, through
June 30, 2026, to continue administering the City’s urban forestry program to be funded by the Environmental and
Community Investment Agreement urban forestry funds –
Community Development Department/Public Works
Department (Lina Velasco 510-621-1231/Daniel
Chavarria 510-620-5478).

DISCUSSION:

In July 2021, the City Council approved a 3-year contract with a 1-year option with Groundwork Richmond to administer its urban forestry program utilizing the resources from the greenhouse gas (GHG) reduction section of the Environmental and Community Investment Agreement (ECIA). As part of that work, the Parks Maintenance Division established a Tree Coordination Committee (Committee) comprised of City of Richmond staff and local nonprofits invested in greening Richmond. The City of Richmond’s Parks Maintenance Division and several nonprofit organizations have partnered over the past several years in applying for and receiving funding to help build Richmond’s urban forest. In 2021, the Committee recommended strengthening the city-wide tree initiative by using funds from the ECIA and other resources and creating an Urban Forest Project Administrator position. This work was recently expanded with a Transformative Climate Communities (TCC) implementation grant; therefore, Groundwork Richmond was determined best suited to function in that capacity. Per the TCC grant, the City agreed to leverage ECIA funds to enhance urban forestry-related work.

To-date, Groundwork Richmond has applied for and received grant awards of $1.5 million dollars through the California Natural Resources Agency, CalFire, and mostly recently as a co-applicant in the City’s TCC grant to plant more than 500 trees in the TCC project area over 5 years. More information regarding TCC can be located on the City’s website at https://www.ci.richmond.ca.us/4609/TCC-Richmond-Rising.

With more than 12 years of collaboration, Groundwork Richmond, Parks Maintenance staff, and other nonprofit partners have ensured sound arboriculture practices are followed, operating under the guidance of City personnel. The collaboration will facilitate the expanded capacity of Parks Maintenance staff and establish a well-staffed urban forestry division. Furthermore, Groundwork Richmond will continue to coordinate and administer the overall program, working with the City to ensure that the tree planting program is consistent with City requirements and is documented within the tree inventory and tracking of greenhouse gas reduction data. Additionally, Groundwork Richmond will be responsible for administrative details, including reporting to funders, monitoring, collecting, and reporting data of all partners to appropriate sources, and 1215

June 18, 2024
continuing to work with partners to develop additional resources for building Richmond’s urban forest.

To move forward with the project, staff recommends that the City Council approve the amendment to the $686,889 contract to function as the Urban Forestry Project Administrator responsible for project management of the Tree Coordination Committee and duties outlined in the attached contract.

DOCUMENTS ATTACHED:

Attachment 1 – Amendment to the Contract
Attachment 2 – Original Contract
1216

CITY OF RICHMOND

CONTRACT AMENDMENT
Department: Project Manager:

Project Manager E-mail: Project Manager Phone No:

P.R. No: Vendor No: Contract No32:

Description of Services:

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

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

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

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

Company Name:

Street Address:

City, State, Zip Code:

Contact Person:

Telephone: Email:

Business License No: / Expiration Date:

A California [ ] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:]
[ ] other [specify:]

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

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

Consultant shall coordinate training, community outreach, project management, tree planting and maintenance for the tree planting program.
1217
Contract Amendment/EJ/TE 09-26-07

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

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

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

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

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

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

By _______________________
City Clerk
Approved as to form:

By_______________________
City Attorney
List of Attachments:

1. Amendment Provisions

2. Updated Insurance Certificates
CONTRACTOR:
______________________________
(*The Corporation Chairperson of the Board, President or Vice-President should sign on the line below.)
By____________________________
Title:________________________
(*The Corporation Chief Financial Officer, Secretary or Assistant Secretary should sign on the line below.)
By:___________________________
Title:________________________
(NOTE: Pursuant to California Corporations
Code Section 313, if Contractor is a
corporation or nonprofit organization, this
Contract (1) should be signed by the
Chairperson of the Board, President or
Vice-President and the Chief Financial
Officer, Secretary or Assistant Secretary; (2)
should have both signatures conform to
designated representative groups pursuant
to Corporations Code Section 313.
1218
Contract Amendment between the City of Richmond and
Amendment No. Contract No.32

AMENDMENT PROVISIONS (TERM, PAYMENT LIMIT AND SERVICE PLAN)

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

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

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

Contract Amendment/EJ/TE 9-26-07
1219
Groundwork Richmond
Scope of Work
Urban Forestry

1. Scope of Work
Groundwork Richmond’s Urban Forestry program has partnered with the City of Richmond for the past twelve years and to date has planted more than 3500 trees in Richmond’s disadvantaged neighborhoods.

For the period July 1, 2024 through June 30, 2026, Groundwork Richmond proposes to provide the following deliverables:
- Outreach to identified neighborhoods including the Iron Triangle, Coronado and Santa Fe neighborhoods.
- Groundwork will continue to work on the Adopt-a-Tree program recruiting willing neighbors to plant trees in front of their houses and maintain them. - Groundwork staff will attend neighborhood council meetings to discuss the benefits of trees, the impact of climate change and to recruit volunteers to help plant trees at community events such as MLK Day of Service and Arbor Day. - Plant 500 trees – over a two year period
- Groundwork will partner with COR’s Parks and Landscaping Department to identify viable planting spots, parks and medians in the targeted neighborhoods. - Groundwork will source trees from current vendors identifying the most appropriate species for the selected areas.
- Planting will occur on an on-going basis averaging 20 trees planted per week and 20-30 on selected community days.
- Tree inventory
- Groundwork currently maintains the city’s tree inventory database and will inventory newly planted trees on a weekly basis.
- On an annual basis, Groundwork will compile a report documenting the total # of greenhouse gasses that are sequestered and submit that to the city for its Transparent link on the city’s website.
- Workforce and Green Team opportunities
- Groundwork Richmond’s programs (1) Workforce Development ages 18-25 and (2) Green Team ages 13-17, select participants from identified neighborhoods that we serve.

The goal is to create a career path and opportunities for these individuals in green collar jobs, higher education and/or various trades. Through Groundwork programs they are paid to participate in our urban forestry programs.
- Ongoing tree maintenance
Groundwork Richmond’s Urban Forestry crew will maintain all trees through establishment period (three years) and has a developed watering route and maintenance schedule which is monitored by the Urban Forestry Supervisor.

2. Timeline
Task/Activities Month
Years (July 1, 2024 – June 30, 2026)
Attachment - Exhibit A
1220
Staff recruitment, hiring and onboarding July-August 2024 Orientation to staff and workforce September 2024
Civic Engagement
- Participation in local councils and
committees
- Outreach, Adopt-a-Tree
September-December 2024
Prepare for Arbor Day, Arbor Day event w City
- Help plan Richmond’s annual Arbor Day
event, and help supervise/train volunteers on
the day of the event
Plant 500 Trees – in designated neighborhoods
- Adopt a tree program (canvassing), site
assessments, work with city staff identifying
new sites.
- Maintain trees through establishment period
September 2024 -January 2025
Service Days - MLK and Earth Day
- Additional community planting dates
January-April 2025
- Continued sourcing for trees, partnering with
City of Richmond’s Parks to select viable
planting spots
January-December 2025
Civic Engagement
- Participation in local councils and
committees
July 2025-June 2026
Plan Arbor Day
- Work with City and UFAC to identify
location
- Prep for Arbor Day
- Planting 20-30 trees
August -October 2026
1221
ECIA Draft budget 2024-2027
Wages
Urban Forestry Administrator 71,906.00
Youth Program Manager 51,187.00
Urban Forestry Supervisor 59,718.00
Work Leader 60,937.00
tree crew (x3) 243,750.00
Benefits
Urban Forestry Administrator 18,179.00
Youth Program Manager 10,968.00
Urban Forestry Supervisor 12,706.00
Work Leader 10,038.00
tree crew (x3) 29,000.00
subtotal wages and benefits 568,389.00
Misc
Supplies (trees, stakes, ties) 35,000.00
Equipment (vehicle rentals) 30,000.00
Consultants, contractor, trainer 53,500.00
subtotal miscellaneous 118,500.00
Total 686,889.00
1222
Contract Amendment between the City of Richmond and
Amendment No. Contract No.32

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

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan
The second Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan
The third Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the
following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan
The fourth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan
The fifth Contract Amendment was approved by City Council of the City of Richmond or executed by the City Manager on for one or more of the
following provisions (check those that apply):

Increased contract payment limit by $ ________________for a payment limit not to exceed $ _________________________.

Term Amendment (insert new termination date):________________________

Service Plan
1223
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:

Consultants and Contractors
Type 1 – Page 1 of 4
Revised: September 2011
In all instances where a CONTRACTOR or its representatives will be conducting business and/or providing services, the City requires the following MINIMUM insurance requirements and limits.

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

CONTRACTOR agrees that in the event of loss due to any of the perils for which it has agreed to provide Commercial General Liability insurance, CONTRACTOR shall look solely to its insurance for recovery. CONTRACTOR hereby grants to CITY, on behalf of any insurer providing Commercial General Liability insurance to either CONTRACTOR or CITY with respect to the services of CONSULTANT herein, a waiver of any right to subrogation which any such insurer of said CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance.

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

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

Minimum coverage is detailed below. The policy limits of coverage shall be made available to the full limits of the policy.

The minimum limits stated herein shall not serve to reduce the policy limits of coverage of CONTRACTOR.

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

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

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

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

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

5. Original and Separate Waiver of Subrogation for Workers’ Compensation and Builder’s Risk/ Course of Construction Insurance.

6. Builder’s Risk/Course of Construction insurance covering all risks of loss less policy exclusions when the City of Richmond has a financial interest in the property. – (Only required for Construction Contracts involving property)

7. Contractor’s Pollution Liability (if applicable for Construction Contractors) Required Coverage Minimum Limits
Workers’ Compensation and
Employers’ Liability
Statutory limits as required by the State of California including $1 million Employers’ Liability per accident, per employee for bodily injury or disease.

If CONTRACTOR is self-insured, provide a certificate of Permission to SelfInsure, signed by the California Department of Industrial Relations and SelfInsurance. If contractor is a sole proprietor (has no employees) than contractor must sign “Contractor Release of Liability” found at:
http://www.ci.richmond.ca.us/index.aspx?nid=61.
1224
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:

Consultants and Contractors
Type 1 – Page 2 of 4
Revised: September 2011

PROJECT COST REQUIRED LIMIT
$0 - $5 million $2 million p/o
$5 million - $10 million $5 million p/o
Over $10 million $10 million p/o
Fireworks $5 million p/o
General Liability
(primary and excess limits
combined)

Includes coverage for bodily injury, personal injury, property damage and products and completed operations. The policy shall not exclude coverage for XCU perils (explosion, collapse, or damage to underground property).

If the policy includes a general aggregate, either the general aggregate shall apply separately to this project, service or location or the minimum required aggregate limit shall be twice the per occurrence limit ($4 million aggregate limit).

Policy shall be endorsed to name the City of Richmond as an additional insured per the conditions detailed below.

Automobile Liability $1,000,000 per occurrence for bodily injury and property damage.

Builders’ Risk/Course of
Construction – Covers property
under construction, repair or
renovation as well as equipment
and materials to be installed.
(Only required for Construction
Projects involving property and
equipment installation.)
Coverage shall include all risks of direct physical loss, excluding earthquake, for an amount equal to the full completed value of the covered structure or replacement value of alterations or additions, including soft costs and business interruption.

If the project does not involve new or major reconstruction, an Installation Floater may be acceptable. For such projects, a property installation floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken or destroyed during the performance of the Work, including during transit, installation and testing at the City of Richmond’s site.

The City of Richmond shall be named as loss payee as its interest may appear. The insurer shall waive all rights of subrogation against City.

Contractor’s Pollution Liability (if
applicable)
Protects against:
unexpected/unintended release of
pollution resulting from contractors
covered operations such as:

HVAC, paving, carpentry, pipeline
& tank installation, drillers,
remediation contractors,
maintenance, mechanical,
demolition, excavation, grading,
street/road construction,
residential & commercial builders.

Same limits as General Liability.

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

Additional Insured Endorsement Applicable to General Liability Coverage.

The City of Richmond, its officers, officials, employees, agents and volunteers are to be named as additional insureds for all liability arising out of the operations by or on behalf of the named insured, including but not limited to bodily injury, deaths and property damage or destruction arising in any respect directly or indirectly in the performance of this contract.

ISO form CG 20 10 (11/85) or its equivalent is required. The endorsement must not exclude products and completed operations coverage. If it does, then CG 20 37 (10/01) is also required. 1225
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:

Consultants and Contractors
Type 1 – Page 3 of 4
Revised: September 2011
Additional Insured Endorsement
(continued)
SAMPLE Endorsements can be found at
http://www.ci.richmond.ca.us/index.aspx?nid=61
Primary and Noncontributory The contractor’s insurance coverage must be primary coverage as it pertains to the City, its officers, officials, employees, agents and volunteers. Any insurance or self insurance maintained by the City is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance.

Waiver of Subrogation
Endorsement Form
Contractor’s insurer will provide a Waiver of Subrogation in favor of the City for Workers Compensation and Builder’s Risk/ Course of Construction coverage during the life of this contract.

SAMPLE Endorsements can be found at
http://www.ci.richmond.ca.us/index.aspx?nid=61
Deductibles and Self-Insured
Retentions
Any deductible or self-insured retention must be declared to and approved by the City. At the option of the City either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City or the CONTRACTOR shall procure a financial guarantee in an amount equal to the deductible or self-insured retention guaranteeing payment of losses and related investigations, claims administration and defense expenses.

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

Loss Payable Endorsement (only
required when Builder’s Risk
and/or Course of Construction
Insurance is required.)
Applicable to Builder’s Risk/Course of Construction naming the City of Richmond as Loss Payee.

SURETY BONDS
(If a Public Works/Engineering
Project)
The Contractor shall provide:

1. A Bid bond

2. A Performance Bond

3. A Payment Bond
Umbrella/Excess Liability Policies
If an Umbrella or Excess Liability Policy is used to meet the liability limits, coverage shall be as broad as specified for underlying coverages and cover those insured in the underlying policies.

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

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

CONTRACTOR agrees to defend and indemnify the City of Richmond for any damage resulting to it from failure of either CONTRACTOR or any subcontractor to take out or maintain the required insurance policies. The fact that insurance is obtained by CONTRACTOR, and/or CONTRACTOR’s subcontractors, will not be deemed to release or diminish the liability of CONTRACTOR, including, without limitation, liability under the indemnity provisions of this contract. Damages recoverable by CITY from CONTRACTOR or any third party will not be limited by the amount of the required insurance coverage.
1226
___ Exhibit F
___ Section 8
City of Richmond - Insurance Requirements – Type 1:

Consultants and Contractors
Type 1 – Page 4 of 4
Revised: September 2011
Verification of Coverage
All original certificates and endorsements shall be received and approved by the City before work may begin. The City of Richmond reserves the right to require complete, certified copies of all required insurance policies including endorsements affecting the coverage at any time.

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

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

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

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

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

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

Consistent with Public Policy
The insuring provisions, insofar as they may be judged to be against public policy shall be void and unenforceable only to the minimum extent necessary so that the remaining terms and provisions herein may be consistent with public policy and thus enforceable.
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1257

June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works / City Engineer
Subject: Approval to Award Richmond Art and Lighting Project Bids and Authorize Change Orders During Council
RecessApproval to Award Richmond Art and Lighting
Project Bids and Authorize Change Orders During the City Council Recess
FINANCIAL IMPACT: The Richmond Art and Lighting Project will cost $3.3 million for FY 2024-2025, funded by the Clean California funds (15436431-400708-23031), funded by Clean
California funds (15436431-400708-23031), is estimated
to cost $3.3 million for FY 2024-2025.

PREVIOUS COUNCIL
ACTION:

Not applicable

STATEMENT OF THE
ISSUE:

The City Council's recess from July 3, 2024, to
September 10, 2024, necessitates authorizing the City
Manager to award bids and the Director of Public Works
to approve change orders for the Richmond Art and
Lighting Project. This authorization is critical to meet grant deadlines, maintain project schedules, and avoid
potential funding losses.

AGENDA
REPORT
1258

June 18, 2024
RECOMMENDED ACTION: APPROVE a resolution granting the City Manager or designee the authority to accept bids for the Richmond
Art and Lighting Project, up to the budgeted amount of
$3.3 million and authorizing the Director of Public Works to approve change orders up to 10% of the construction
costs, provided these change orders remain within the
overall project budget – Public Works (Daniel Chavarria 510-620-5478 / Robert Armijo 510-620-5477)
DISCUSSION:

The City Council will be in recess from July 3, 2024, to September 10, 2024. During this period, it is crucial to proceed with the bid and award process for the Richmond Art and Lighting Project proceeding with the bid and award process for the Richmond Art and Lighting Project is crucial to meet grant funding deadlines and adhere to the approved project schedule.

The Richmond Art and Lighting Project aims to enhance local street undercrossingsArts and Lighting Project aims to enhance local street safety, under crossings, and one overcrossing in the City of Richmond by installing pedestrian-scale lighting and artwork.

The project focuses on the Macdonald Avenue, Barrett Avenue, and San Pablo Avenue undercrossingsunder crossings on Interstate 80, as well as and the Harbor Way overcrossing on Route 580. These locations currently suffer from inadequate lighting, which affects pedestrian safety and experience. By adding pedestrian-scale lighting and vibrant artwork, the project seeks to transform these spaces, making them safer and more welcoming for the community.

The addition of lighting will brighten the pedestrian experience, while the artwork will enliven the space, adding color and reducing graffiti by providing less blank canvas for taggers. This project is funded through the Clean California funds and must be completed by December 31, 2024.

Delaying the bid and award process for the Richmond Art and Lighting Project could result in missed grant deadlines, scheduling disruptions, and potential loss of fundingfunding loss. Given the project's significance to the community and the tight timeline, it is essential to move forward with the contracting process during the City Council recessmoving forward with the contracting process during the City Council recess is essential.
1259

June 18, 2024
City staff requests City Council approval of a resolution to authorize the City Manager or designee to award the bid and execute the contract with the lowest responsive and responsible bidder for the Richmond Art and Lighting Project, up to the budgeted amount of $3.3 million. Additionally, City staff requests that the Director of Public Works be authorized to approve change orders up to 10 percent of the construction costs, provided that such change orders fit within the project budget. This authorization will ensure that the project progresses as scheduled and meets all necessary deadlines, maintaining the project's funding and delivery schedule.

DOCUMENTS ATTACHED:

Attachment 1 – Resolution
1260
Reso. No. XX-24

RESOLUTION NO. XX-24

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

AUTHORIZING THE CITY MANAGER OR DESIGNEE TO AWARD BIDS AND

EXECUTE CONTRACTS, AND THE DIRECTOR OF PUBLIC WORKS TO APPROVE

CHANGE ORDERS FOR THE RICHMOND ART AND LIGHTING PROJECT WHEREAS, the City Council will be in recess from July 3, 2024, to September 10, 2024; and
WHEREAS, the Department of Public Works has identified the Richmond Art and Lighting Project as a critical project that needs to proceed to bid and award during the City Council recess to meet grant funding deadlines and project delivery schedules; and WHEREAS, the Richmond Art and Lighting Project involves installing pedestrian-scale lighting and artwork to enhance local street undercrossings at Macdonald Avenue, Barrett Avenue, and San Pablo Avenue along Interstate 80, and the Harbor Way overcrossing on Route 580, thereby improving safety and the pedestrian experience; and WHEREAS, all Capital Improvement Program projects will comply with the requirements set for by the California Environmental Quality Act (CEQA) or the National Environment Policy Act (NEPA), if appropriate; and
WHEREAS, delaying the bid and award process for this project could result in missed deadlines, schedule disruptions, and potential loss of grant funding; and WHEREAS, it is necessary to authorize the City Manager to award bids and execute contracts for this project to ensure timely progression and adherence to the approved budget and schedules; and
WHEREAS, it is also necessary to authorize the Director of Public Works to approve change orders up to 10% of the construction costs, provided these change orders remain within the overall project budget;
WHEREAS, the project is funded by the Clean California funds, with the total budgeted amount of $3.3 million for Fiscal Year 2024-2025; and
WHEREAS, the account strings for these projects have been identified and allocated in the Fiscal Year 2024-2025 budget.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Richmond hereby authorizes the City Manager or designee to award bids and execute contracts with the lowest responsive and responsible bidder for the Richmond Art and Lighting Project, up to the budgeted amount of $3.3 million.

BE IT FURTHER RESOLVED that the Director of Public Works is authorized to approve change orders up to 10% of the construction costs, provided that such change orders fit within the project budget.

BE IT FURTHER RESOLVED that staff shall ensure that the awarded bids are within the Council-approved budget for Fiscal Year 2024-2025.
**********************
1261
Reso. No. XX-24

I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held June 18, 2024, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:

Mayor
Approved as to form:

City Attorney
1262

June 18, 2024
City Attorney's Office
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Dave Aleshire, City Attorney
Subject: Consideration of an Oil Refining Business License Tax Ballot Measure for November 5, 2024, Election
FINANCIAL IMPACT: The cost of placing the proposed measure on the ballot is determined by the number of pages to be printed in the
sample ballot booklet. The cost might range from$4,000
to $10,000.

PREVIOUS COUNCIL
ACTION:

May 7, 2024 (Item P.1.)
April 16, 2024 (Item V.4.d)
May 21, 2024 (Item Q.1.)

STATEMENT OF THE
ISSUE:

To improve the quality of life for Richmond residents, the City is seeking new sources of tax revenue. Oil refining has negative impacts on the City, including
environmental hazards, public health harms, and
stressing emergency services. This is a proposal to
generate new tax revenue to improve the City’s financial position. In raising new revenue, the City could raise new tax revenue from the oil industry, justified by its negative impacts on the City.

RECOMMENDED ACTION: ADOPT a resolution submitting the Proposed Oil Refining Business License Tax Ballot Measure to the voters at the November 5, 2024, election and AUTHORIZE the City
Attorney’s Office and staff to finalize any necessary
documents relating to the ballot measure – City
Attorney’s Office (Dave Aleshire 510-620-
6509).

AGENDA
REPORT
1263

June 18, 2024
DISCUSSION:

At its May 21, 2024, meeting, the Richmond City Council received a presentation from Communities for Better Environment (“CBE”) Action and Asian Pacific Environmental Network (“APEN”) Action regarding a potential tax on oil refining in the City (See Attachment 1). At that meeting, Council directed staff and the City Attorney’s office to discuss the potential tax with CBE Action and APEN Action and, further, to draft the necessary documents so that City Council may consider submitting such a tax to the voters for their consideration at the November 5, 2024, general municipal election. The City Attorney has prepared the necessary documents in coordination with CBE and APEN per the May 21, 2024, direction from City Council.

Public Impacts Associated with the Refining Industry
As outlined in the May 21, 2024, staff report and as presented by CBE, there are ongoing negative externalities associated with proximity to a large, pollutive industrial facility. As further described in the attached presentation, the City and its residents face negative public impacts from oil refining, including public health and environmental impacts, and additional stresses on emergency services. With respect to public health, particulate matter from the refinery alone is linked to 5 to 11 premature deaths in Richmond each year. The federal Environmental Protection Agency (EPA) estimates that the health impacts of oil refining in Contra Costa County range from $70 million to $140 million annually. Oil spills and other toxic releases underscore the environmental risks and impacts. Incidents like the 2012 explosion demonstrate that refinery emergencies are Richmond emergencies.

These burdens are each a justification for the City to impose tax liability proportional to the many impacts that oil refining has on our community. These costs are also illustrative, non-binding examples of what the City could allocate, on an annual basis at Council discretion, future revenue towards. Other examples include growing the City’s tax base through economic development activities or increasing financial reserves to support public sector employment and general City services in the case of future economic shifts.

Measure T
In 2008, the City’s voters approved Measure T, which established a business license tax in which manufacturing businesses would pay the greater of (1) what was paid by other general businesses or (2) a flat fee of 0.250 percent of the value of raw materials used in the manufacturing process. A party was able to successfully challenge Measure T; however, the City and that party entered into a settlement agreement that ended the litigation. This settlement agreement required the party to make a settlement payment. It further limited the party’s maximum tax payment owed by the party pursuant to Chapter 1264

June 18, 2024

13.52 (the City’s utility users’ tax) of the Richmond Municipal Code and limited the party’s business license tax obligation such that it is calculated at $234.10 plus $46.80 per employee for the first 25 employees and $40.10 for every employee thereafter. The settlement agreement further stated that any tax imposed upon the party before July 1, 2025, would result in that tax amount credited against both the settlement payment and the taxes paid by that party pursuant to the settlement agreement.

Measure U
The City’s voters adopted Measure U in 2020 and modified the City’s business license tax such that it modified the existing tax such that the tax rate is 0.06 percent to 5.00 percent of the gross receipts, depending on the business type. The Richmond Refining Business License Tax would be separate from and additive to Measure U; thus, in the future, both the Richmond Refining Business License Tax and Measure U would apply to businesses engaged in oil refining in the City. City staff understand from CBE and APEN that this approach reflects a common reality in local revenue generation, where pollutive and extractive industries face higher tax burdens given their significant negative public impacts, as is the case for the oil refining sector, as detailed in the prior and attached presentations.

Tax Proposal
The ordinance if adopted by the voters, implements a business license tax upon oil refining in the City (See Attachment 3). The rate of the proposed tax is $1.00 per barrel of feedstock refined within the City. The proposed tax is submitted as a general tax, which means that the revenues can be spent on any valid municipal purpose. It would also be operative on July 1, 2025, and would be in addition to any other taxes owed under the Richmond Municipal Code. In terms of the proposed tax’s validity, CBE and APENs’ attorneys have provided their legal analysis on the validity of the tax (See Attachment 4). If approved, it is estimated that the tax will collect approximately $60 million to $90 million per year.

Resolutions and Procedures
If Council desires to submit this proposed business license tax as a general tax to the voters at the November 5, 2024, general municipal elections, then it must adopt the resolution by a two thirds (2/3) vote (i.e., 5 out of 7 council members must approve the resolution) (See Attachment 2). The resolution further contains the “ballot question.” The ballot question must be fair and impartial, provide the rate, type, and duration of the tax, and be limited to 75 words. The resolution also provides for direct and rebuttal arguments and directs the drafting of an impartial analysis by the City Attorney.

Passage of the tax will require the approval by a majority of the voters.

DOCUMENTS ATTACHED:
1265

June 18, 2024
Attachment 1 — CBE Action and APEN Action Presentation for June 18, 2024 Attachment 2 — Resolution Submitting Measure
Attachment 3 — Proposed Tax Ordinance
Attachment 4 — CBE Action and APEN Action Analysis of Proposed Tax 1266
Proposal:

The Richmond Refining
Business License Tax Act
June 18, 2024
Kerry Guerin, she/her
Attorney, Communities for a Better Environment (CBE) Action o.b.o. CBE Action and Asian Pacific Environmental Network (APEN) Action [email protected] 1267
2 Agenda

1. Recap from May 21

2. Proposal: The Richmond Refining
Business License Tax

3. Section-by-Section Explanation

4. Additional Ordinance Details
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Recap: A Need for New Revenue
3 The 2022 State Auditor’s Report details the need for the City to balance its budget, which may be done by raising revenue. (Link)
The April 16, 2024 Port audit presentation describes fiscal needs to support the Port’s viability, mindful of legalities of directing funds from the City to the Port. (Link)
The May 7, 2024 draft FY 2024-25 Annual Operating Budget suggests a $34 million gap between budget requests and
available revenue. Five-year forecasts in the same document predict that it will be impossible to balance the budget without new revenue. (Link) 1269
Recap: Opportunities in the Richmond Refining
Business License Tax
4 With new revenue, the City could address a range of general government issues through the annual budgeting process. In general, the City could shore up its fiscal position.

The City could save reserves for future economic disturbances to maintain future public sector employment.

The City could seed new industries to reduce economic and tax base reliance on any one industry, reflective of Blue/Green New Deal proposals. (Link)
The City could use the new revenue to mitigate the negative impacts of refining – e.g., environmental impacts, public health impacts, and emergency services impacts from oil refining. 1270
Recap: Negative Public Refining Impacts –
Environmental
5 In 2023, the refinery produced an average of 25,000 pounds of hazardous waste each day. (Link)
In 2021, the refinery released 37,722 pounds of toxic
chemicals into surface waters. (Link) The February 2021 oil spill into the Bay underscores additional risks. (Link) Oil spills and permitted releases of pollution impact wildlife, and communities that depend on our local ecosystem. (Link)
Groundwater may also get polluted as contaminants seep into aquifers; sea level rise may push toxic groundwater upwards, and these toxic substances can seep into basements, a broken sewage line, or be vaporized and breathed in.
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Recap: Negative Public Refining Impacts –
Public Health
6 The refinery is the City’s single largest source of particulate matter emissions (PM2.5). (Link) BAAQMD data connects the refinery’s PM2.5 emissions with 5.1 to 11.6 premature deaths in Richmond each year. (Link) Other PM 2.5 effects include infant mortality, cancer, and traumatic mental health effects. (Link)
Richmond’s asthma rate is at the statewide 90th percentile. (Link) Fence-line neighborhoods near the refinery are in the 97th to 99th percentile for asthma, meaning that their asthma rate is higher than 97 to 99% of other California residents. (Link) The healthcare impacts associated with oil refining in Contra Costa County are estimated to be between $70 million and $140 million each year, according to federal EPA figures. ( 1272 Link) Recap: Negative Public Refining Impacts –
Emergencies
7 Refinery emergencies are Richmond emergencies.

The 2012 explosion injured 6 employees and sent 15,000
Richmond residents to hospitals seeking medical treatment. (Link)
The November 2023 flaring incident logged more than 100 air quality complaints to the Air District. (Link)
These incidents, and future ones like it, strain public resources, including the Fire Department, but also increase stress on other public systems, including with increased vehicle traffic on roads.
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Additional Negative Public Refining Impacts
8 Odor and noise issues from the refinery, including the Long Wharf, impact City residents. (Link)
Property values are depressed by the presence of an oil refinery, which, in turn, reduces City property tax revenue. (Link) The oil industry’s business model leaves workers vulnerable to the whims and volatility of the industry. Whether as a result of business decisions, like the Martinez Marathon Refinery (link), or accidents, like the Philadelphia PES Refinery (link), refinery workers cannot depend on the industry to protect their livelihoods.

The local oil refinery has acknowledged that “no provisions are made for exit or cleanup costs that may be required” if or when local refining activity ends one day, leaving the City at risk to shoulder those burdens in the future. (Link) 1274
Recap: Negative Public Refining Impacts
9 All these impacts are tied to to refinery operations.

The more crude oil that is refined, the more pollution that is emitted – the more the environment and public health are harmed, with costs born by the City. The more refining that occurs, the higher the risk that refining-related emergencies are to occur, with costs again born by the City.

The City may impose taxes proportional to these impacts. 1275
Recap: General Tax vs. Special Tax
10 Under Article XIII C of the California Constitution, local governments can generate new revenue in the form of general taxes or special taxes.

They differ in how they are used:

General taxes go to the General Fund.

Special taxes may be restricted for special uses.

And they differ in how they are established. Both must be approved by the electorate (whether referred by the Council, or by signature petitions), at different thresholds:

General taxes are a 50% threshold, special taxes are
2/3. 1276
Proposal: The Richmond Refining Business
License Tax
11 To fund general City services, such as clean air and water treatment, roads, parks, fire and emergency response, toxic land cleanup, and improving community health and youth services, and for general government use, shall the measure establishing a business license tax on the privilege of conducting oil refining in the City of Richmond at the rate of $1.00 per barrel of feedstock refined in the City of Richmond, providing approximately $60 million to $90 million annually for 50 years, be adopted?
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Proposal: The Richmond Business License
Refining Tax
12 To fund general City services,
such as clean air and water treatment, roads, parks, fire and emergency response, toxic land cleanup, and improving community health and youth services, and for general government use, shall the measure establishing a business license tax on the privilege of conducting oil refining in the City of Richmond
at the rate of $1.00 per barrel of feedstock refined in the City of Richmond, providing approximately $60 million to $90 million annually
for 50 years,
be adopted? 1278
To fund general City services…
13 The Richmond Refining Business License Tax is a general tax.

Cities may raise tax revenue through general taxes or special taxes. Special taxes may have restrictions on how their revenue is used; general taxes must direct their revenue to the General Fund.

Thus, the Richmond Refining Business License Tax would
direct all of its revenue to the General Fund.

The City Council would allocate and spend revenue raised, therefore, as it allocates and spends the General Fund now, including in accordance with any rules and restrictions the City has for the General Fund.
1279
…such as clean air and water treatment, roads, parks, fire and emergency response, toxic land cleanup, and improving community health and youth services, and for general government use… 14 The Richmond Refining Business License Tax, as a general tax, will direct its revenue to the General Fund.

General tax ballot measures are allowed, however, to give nonbinding examples of what the City could spend revenue on. This helps educate voters about what “general government use” is.

The listed examples are not binding; the City is not required to allocate any new revenue towards these examples of general city services.
1280
…shall the measure establishing a business
license tax on the privilege of conducting oil
refining in the City of Richmond…
15 The Richmond Refining Business License Tax is an excise tax – on the privilege of conducting oil refining – not a use tax, a sales tax, an inventory tax, or an ad valorem tax.

The County’s marijuana tax, the City and County’s hazardous waste facility taxes and Measure U are examples of excise taxes.

The Richmond Refining Business License Tax is paid by oil refiners, not consumers.

A barrel of oil costs between $70 and $100; a one dollar increase on refining costs per barrel is a modest, reasonable tax. 1281
Measure T (2008)
Measure T was also a tax on activities at oil refineries, approved by a majority of Richmond voters in 2008. Measure T was challenged in court, and the tax was struck down in 2009, for two reasons:

1. Measure T lacked an apportionment mechanism; and

2. Measure T was a tandem tax, where the basis for liability would be determined by assessing whether basis #1 (value of materials used in manufacturing in Richmond) or basis #2 (employee headcount) would generate more revenue.

The Richmond Refining Business License Tax has an apportionment mechanism, and is not a tandem tax.
1282
Measure U (2020)
Measure U was approved by Richmond voters in 2020, which changed how business taxes in Richmond are imposed. Now, under Measure U, businesses must pay a tax on their gross receipts.

The Richmond Refining Business License Tax would be additive to and separate from Measure U.

Caselaw clearly permits multiple excise taxes to apply to the same taxpayer.

Furthermore, the Richmond Refining Business License Tax is justified by the unique impacts that the oil refining industry has on the City and residents.
1283
…at the rate of $1.00 per barrel of feedstock refined in the City of Richmond, providing approximately $60
million to $90 million annually….
18 Tax liability is based on feedstock volume, not feedstock value.

Over the last seven years, the refinery has processed
approximately 60 million to 90 million barrels of feedstock per year. Thus, the Richmond Refining Business License Tax
could generate $60 million to $90 million annually.

In the future, any refinery in the City would report its feedstock volume on a quarterly basis, with record inspection available to the City, and pay the tax quarterly.

The City Tax Collector would reduce the tax liability in accordance with constitutional apportionment requirements, per guidelines their office will develop. 1284
…for 50 years…
19 The Richmond Refining Business License Tax would
automatically expire in 50 years.

As voter approval is needed for its establishment, the voters of Richmond may also undo or modify the tax through a separate, future ballot measure. The City Council may also modify certain provisions in the future, as described in the ordinance.

That future ballot measure could be Council-referred, as this one, or sent to the ballot by signature gathering for a petition. 1285
…be adopted?
20 May 21, 2024: Presentation at Council
Direction given to City Attorney to bring
this item back to Council
June 18, 2024: Council could vote to place this on the ballot November 5, 2024: Election Day
Note: As a general tax, there is a 50%+1 voter threshold for passage.

July 1, 2025: Tax liability begins
July 1, 2075: Tax automatically expires
1286
Ordinance
21 In addition to the ballot measure language for the ballot itself, the attached ordinance details more implementation measures, including definitions, late penalties, collection schedules, and inclusion of an apportionment mechanism.

That ordinance’s effectuation would be contingent on voter approval of the ballot measure, and the ordinance would be known as The Richmond Refining Business License Tax
Act, adding Chapter 13.58 to the Richmond Municipal Code. 1287
Ordinance – “Refining”
22 Refining is defined as making products through processing, redistillation, cracking, reforming or other processes.

There is an example list of products, or outputs, including:
aviation fuel, lubricants, feedstock, plastics, asphalt, biofuels, “or other similar products.”
The tax would not apply to mere storage on-site – refining actually has to occur for the tax to apply.
1288
Ordinance – “Feedstock”
23 Recall that the basis for tax liability is the volume of feedstock refined.
"Feedstock" is what goes into the refinery for processing.

Feedstock is defined in the tax to include fossil fuel feedstock or biofuels feedstock.

It’s possible the present oil refinery converts to a biorefinery one day. Biorefineries pose similar negative health,
environmental and emergency impacts as fossil fuel refineries, and their own odor impacts, as local examples underscore. 1289
Ordinance – Delinquency Penalties and Interest
24 Payments are due the day after the quarter in which tax liability exists (e.g., payment for January 1 through March 31 is due on April 1). Payment is delinquent if not paid on or before the end of the month in which payment is due (e.g., April 30).

A delinquency penalty of 10% applies if not paid before becoming delinquent. An additional 15% penalty applies if unpaid for 90 days past original delinquency date.

Interest (simple) will accrue at the rate of 1% each month, or fraction thereof, from the date of delinquency to the date of payment.
1290
Ordinance – Records
25 The City may issue administrative subpoenas to compel an oil refiner to produce copies of records, or allow for their inspection, that establish the refined feedstock volume and tax liability for the period in question.

The City may enter a nondisclosure agreement to protect any confidential taxpayer information.

To inform the public, there will be an annual report that: (1) attests to the inspection of relevant records; (2) states the total annual revenue of the tax; and (3) affirms how the funds are allocated. Noncompliance with this section shall not affect taxpayer liability. 1291
Proposal: The Richmond Refining Business
License Tax
To fund general City services,
such as clean air and water treatment, roads, parks, fire and emergency response, toxic land cleanup, and improving community health and youth services, and for general government use,
shall the measure establishing a business license tax on the privilege of conducting oil refining in the City of Richmond
at the rate of $1.00 per barrel of feedstock refined in the City of Richmond, providing approximately $60 million to $90 million annually for 50 years,
be adopted?
1292
Reso. No. __-24

RESOLUTION NO. __-24

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND,

CALIFORNIA, SUBMITTING TO THE VOTERS A MEASURE TO IMPOSE A

BUSINESS LICENSE TAX ON THE PRIVILEGE OF CONDUCTING THE BUSINESS

OF OIL REFINING IN THE CITY OF RICHMOND
WHEREAS, the City Council (the “Council”) of the City of Richmond (the “City”), within the County of Contra Costa, California (the “County”), desires to place a ballot measure before the voters at the November 5, 2024, to raise revenue for municipal purposes to imposed a business license tax on the privilege of conducting oil refining in the City at a tax rate of One Dollar ($1.00) per barrel of feedstock refined in the City; and WHEREAS, the City of Richmond (“City”) is authorized by law to establish business license taxes, as an excise tax, upon businesses within the City for the privilege of doing business in the City pursuant to its authority as a charter city, including, but not limited, to Section 7 of Article II of the City Charter; Cal. Const. art XI, Section 5; and Government Code Section 37101 and Business & Professions Code Section 16000 et seq. (to the extent applicable); and WHEREAS, In 2008, the City’s voters approved Measure T, which established a business license tax wherein manufacturing businesses would pay the greater of (1) what was paid by other general businesses or (2) a flat fee of 0.250% of the value of raw materials used in the manufacturing process (“Measure T”); and
WHEREAS, a party initiated litigation against City regarding Measure T after voter approval and the City and the party ultimately entered into a settlement agreement to resolve the litigation wherein the party agreed to make certain settlement payments and, further, limited the maximum tax payment owed by the party pursuant to Chapter 13.52 of the Richmond Municipal Code (the City’s utility users’ tax) and limited the party’s business license tax obligation under Chapter 7.04 of Richmond’s Municipal Code such that it is calculated at $234.10 plus $46.80 per employee for the first 25 employees and $40.10 for every employee thereafter (“Measure T Settlement”); and
WHEREAS, after June 30, 2025, certain restrictions in the Measure T Settlement will no longer be imposed upon the City, including, but not limited to, the requirement that any new or increased tax imposed upon the aforementioned party before July 1, 2025, would result in that tax amount credited against both the settlement payment and the taxes paid by that same party pursuant to the Measure T Settlement;
WHEREAS, in 2020, the City’s voters adopted Measure U, which modified the City’s business license tax such that the existing business license tax rate is 0.06% to 5.00% of the gross receipts, depending on the business type;
WHEREAS, the City continues to be burdened by impacts from the oil refining industry’s activities within the City, which include, but are not limited to the following:

A. In 2023, it is estimated that an average of 25,000 pounds of hazardous waste was produced each day by the oil refining industry within the City.

B. In 2022, it is estimated that 59,921 pounds of toxic chemicals were released into the surface waters of the San Francisco Bay and San Pablo Bay by the local refinery, impacting local wildlife and communities that closely interact with those waters including fishers. The refinery’s toxic releases increased significantly from the previous year in 2021, when it is estimated that 37,722 pounds of toxic chemicals were released into the surface waters of surrounding bays.

C. Odor complaints in Point Richmond from operations at the Long Wharf, as well as other noise and odor issues in neighborhoods near the refinery, impact the quality of life of City residents.
1293
Reso. No. __-24

D. It is estimated that particulate matter from the refinery alone is linked to approximately 5 to 11 premature deaths in the City each year. Other health impacts from particulate matter, and from other contaminants such as NOx and SOx, include increased risks of infant mortality, cancer risk, and traumatic mental health effects.

E. The City’s asthma rate is at the statewide 90th percentile and the City’s neighborhoods near the refinery, such as the Iron Triangle and Atchison Village, are in the 97th to 99th percentile for asthma.

F. The preceding and other refining-related health impacts affect Richmond residents and their opportunities in life, including their income and, in turn, the economic position of the City itself.

G. In 2012, an explosion at an oil refinery injured six employees and sent 15,000 City residents to hospitals seeking medical treatment. A diesel spill in 2021 underscored more risks inherent in oil refining. Further, in 2023, a flaring incident logged more than 100 air quality complaints to the Bay Area Air Quality Management District. These kinds of incidents require the City’s Fire Department to provide emergency response and City-sponsored alert systems such as Nixle to notify residents. These incidents, including ongoing flaring, which has increased since the local refinery completed its modernization project in 2018, also take a toll on the well-being of residents; at schools near the fence line, students know to run inside from the play yard when they see the refinery start flaring.

H. Property values in the City are suppressed by the proximity of Richmond homes and businesses to an oil refinery, impacting residents directly and the City’s property tax base.

I. The oil refining sector is volatile, and the City is vulnerable to those changes, and could one day be saddled with a toxic site with no one to pay for remediation.

Refinery closures can be announced overnight as a matter of the course of business, such as the Martinez Marathon refinery’s prior fate, before its course reversal and biofuel conversion, or the Philadelphia PES refinery’s sudden shuttering following an on-site explosion. In the latter case, the company declared bankruptcy, leaving behind a site (half the size of the Richmond refinery) that could take more than a decade to remediate at a price of more than a billion dollars according to experts. Meanwhile, the owner and operator of the refinery in Richmond described its lack of closure and cleanup planning for refineries in its 2023 annual report, writing “no provisions are made for exit or cleanup costs that may be required when such assets reach the end of their useful lives unless a decision to sell or otherwise decommission the facility has been made, as the indeterminate settlement dates for the asset retirements prevent estimation of the fair value of the asset retirement obligation.”
J. A conversion of the local refinery from one that refines crude petroleum to one that refines alternative feedstocks or biofuels feedstocks still poses many of the same risks to the same degree, as recent local biofuel conversion projects and subsequent flaring, fires, chemical releases, and air pollution comparable to crude petroleum refining at the Rodeo Phillips 66 and the Martinez Marathon refineries demonstrate.

WHEREAS, the ordinance, attached hereto in Exhibit A, proposes a business license tax, which is an excise tax, upon the business of conducting oil refining in the City at the rate of $1.00 per barrel of feedstock refined in the City and is, therefore, measured by the volume of refining rather than another measurement that may be interpreted as any tax other than an excise tax, including but not limited to, a property tax, sales tax, or use tax, or other excise tax on the sale or consumption or use of feedstock or refined products; and WHEREAS, the ordinance explicitly excludes the application of the business license tax so to apply an undue burden upon interstate commerce or violate the constitutions of the United States and its territories, and the State of California; and 1294
Reso. No. __-24

WHEREAS, in order for the ordinance to become effective, it must be approved by the electorate; and
WHEREAS, on June 4, 2024, the Council adopted Resolution No. 47-24, calling for a general municipal election on November 5, 2024 (“Election”); and WHEREAS, the City Council desires to submit the ordinance to the qualified electors of the City at that Election.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Richmond, as follows:

Section 1. The foregoing recitals are true and correct, and this Council so find and determines.

Section 2. A general municipal election has been called for the City to be held on Tuesday, November 5, 2024. The City Council hereby submits the following measure to the voters at the Election:
“To fund general City services, such as clean air and water treatment, roads, parks, fire and emergency response, toxic land cleanup, and improving community health and youth services, and for general government use, shall the measure establishing a business license tax on the privilege of conducting oil refining in the City of Richmond at the rate of $1.00 per barrel of feedstock refined in the City of Richmond, providing approximately $60 million to $90 million annually for 50 years, be adopted?”
Section 3. The ordinance to be approved by the voters is set forth in Exhibit A. The City Council hereby approves submission of the ordinance to the voters of the City at the November 5, 2024, election. The ordinance specifies that the business license tax, which is an excise tax, rate shall be of One Dollar ($1.00) per barrel of feedstock refined in the City of Richmond, as defined therein. The City Clerk is authorized to modify this resolution and/or the ordinance, as provided in Exhibit A, for the purposes of complying with applicable law. In order for this ordinance establishing a tax to become effective, it must be approved by a majority of the City’s voters voting on November 5, 2024.

Section 4. The City Clerk of the City of Richmond is hereby ordered and directed to cause said proposed measure to be printed and to mail a copy of said measure to all registered voters in the City of Richmond with sample ballots in substantially the form set forth in Exhibit A, attached hereto.

Section 5. The City Clerk of the City of Richmond is hereby authorized to sign a Notice of Election and Measure To Be Voted On in a form substantially similar to that attached hereto as Exhibit B. The Clerk of the City is hereby authorized and directed to publish said Notice of Election and Measure To Be Voted On at least one time not later than a week before the election in the EAST BAY TIMES, a newspaper of general circulation circulated within the City of Richmond, in accordance with the provisions of Section 12111 of the Elections Code of the State of California.

Section 6. The Clerk of the City is hereby authorized and directed to cause to be delivered, no later than August 9, 2024 (which date is not fewer than 88 days prior to the date set for the Election) one copy of this Resolution to the Registrar of Voters of the County.

Section 7. The City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk within thirty (30) days of the adoption of this resolution.

Section 8. The Finance Director of the City is hereby authorized and directed to prepare and file with the Registrar of Voters (through the City Clerk) an impartial analysis of the measure contained in Section 2 hereof covering its financial impact upon the City government in 1295
Reso. No. __-24

accordance with Section 2.16.070 of the Municipal Code of the City, within the time established by the Registrar of Voters.

Section 9. Pursuant to Section 9282 of the Elections Code of the State of California, the legislative body of the City of Richmond, or any member or members of the legislative body authorized by the body, or any individual voter who is eligible to vote on the measure or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by the printed name(s) and signature(s) of person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, for or against the City measure. Such arguments shall be due on the date fixed by the City Clerk.

Section 10. This tax is a general tax requiring the approval of a majority of qualified electors casting votes. The Council has complete discretion to expend the tax proceeds for any lawful purpose of the City of Richmond.

Section 11. Pursuant to California Elections Code section 9285, subdivision (b), the City Council hereby adopts the provisions of California Elections Code section 9285, subdivision (a), relating to rebuttal arguments for the measure identified in section 2 above only for the November 5, 2025, election and thereafter this section 11 shall expire.

Section 12. This resolution shall take effect immediately upon its adoption. ***********************
1296
Reso. No. __-24

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 June 18, 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. __-24, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on June 18, 2024.

Pamela Christian, Clerk of the City of Richmond
1297

EXHIBIT A

FULL TEXT OF ORDINANCE
1298

EXHIBIT B
Notice of Election and Measure To Be Voted On

CITY OF RICHMOND

NOTICE OF GENERAL MUNICIPAL ELECTION

AND MEASURE TO BE VOTED ON
NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of Richmond on Tuesday, November 5, 2024, at which there will be submitted to the voters the following measure:

Said Election has been consolidated with the Statewide General Election to be held in the City of Richmond on November 5, 2024. The election precincts within the City of Richmond for said Election shall be the regular election precincts established for said Statewide General Election, and the polling places and officers of election within the City of Richmond for said Election shall be the same as those selected and designated or to be selected and designated for said Statewide General Election.

NOTICE IS FURTHER GIVEN pursuant to Article 4, Section 9282 of the Elections Code of the State of California, the legislative body of the City of Richmond, or any member or members of the legislative body authorized by the body, or any individual voter who is eligible to vote on the measure or bona fide association of citizens, or any combination of voters and associations, may file a written argument, not to exceed 300 words in length, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, for or against the City measures.

NOTICE IS FURTHER GIVEN that, based upon the time reasonably necessary to prepare and print the arguments and sample ballots for the election, the City Clerk has fixed Wednesday, August 21, 2024, during normal office hours, 8:30 a.m. to 5:00 p.m., as the date after which no arguments for or against the City measure may be submitted to the Clerk for printing and distribution to the voters as provided in Article 4. Arguments shall be submitted to the City Clerk, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument, at the Richmond City Hall, 450 Civic Center Plaza, Suite 300, Richmond, California. No more than five signatures may appear on the argument.

NOTICE IS FURTHER GIVEN that the City Council of the City of Richmond has determined that rebuttal arguments, not to exceed 250 words in length, as submitted by the authors of the opposing direct arguments, may be filed with the City Clerk by Monday, August 26, 2024, during normal office hours, 8:30 a.m. to 5:00 p.m., accompanied by the printed name(s) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers. No more than five signatures may appear on the rebuttal.

NOTICE IS FURTHER GIVEN that any ordinance, impartial analysis, or direct argument filed under the authority of the Elections Code will be available for public examination in the City Clerk’s office from Tuesday, August 27, 2024, to Thursday, September 5, 2024. Any rebuttal argument filed under the authority of the Elections Code will be available for public examination in the City Clerk’s Office from Tuesday, August 27, 2024, to Thursday, September 5, 2024.

The polls will be open on Election Day between the hours of 7:00 a.m. and 8:00 p.m.

Pamela Christian
Clerk of the City of Richmond
City Elections Official
NOTA:
1299
Si desea obtener información en Español de este aviso legal, puede llamar a la Oficina de la Secretaria Municipal, (510) 620-6513.

Dated: Publish:
1300
1 ORDINANCE NO. ______

AN ORDINANCE OF THE PEOPLE OF THE CITY OF RICHMOND ESTABLISHING A

BUSINESS LICENSE TAX UPON OIL REFINING IN THE CITY OF RICHMOND BY ADDING A NEW CHAPTER 13.58 TO ARTICLE 13 OF THE RICHMOND MUNICIPAL CODE
WHEREAS, the City of Richmond (“City”) is authorized by law to establish business license taxes, as an excise tax, upon businesses within the City for the privilege of doing business in the City pursuant to its authority as a charter city, including, but not limited, to Section 7 of Article II of the City Charter; Cal. Const. art XI, Section 5; and Government Code Section 37101 and Business & Professions Code Section 16000 et seq. (to the extent applicable); WHEREAS, in 2008, the City’s voters approved Measure T, which established a business license tax wherein manufacturing businesses would pay the greater of (1) what was paid by other general businesses or (2) a flat fee of 0.250% of the value of raw materials used in the manufacturing process (“Measure T”); and
WHEREAS, a party initiated litigation against City regarding Measure T after voter approval and the City and the party ultimately entered into a settlement agreement to resolve the litigation wherein the party agreed to make certain settlement payments and, further, limited the maximum tax payment owed by the party pursuant to Chapter 13.52 of the Richmond Municipal Code (the City’s utility users ’tax) and limited the party’s business license tax obligation under Chapter 7.04 of Richmond’s Municipal Code such that it is calculated at $234.10 plus $46.80 per employee for the first 25 employees and $40.10 for every employee thereafter (“Measure T Settlement”); and WHEREAS, after June 30, 2025, certain restrictions in the Measure T Settlement will no longer be imposed upon the City, including, but not limited to, the requirement that any new or increased tax imposed upon the aforementioned party before July 1, 2025, would result in that tax amount credited against both the settlement payment and the taxes paid by that same party pursuant to the Measure T Settlement; and
WHEREAS, in 2020, the City’s voters adopted Measure U, which modified the City’s business license tax such that the existing business license tax rate is 0.06% to 5.00% of the gross receipts, depending on the business type;
WHEREAS, the City continues to be burdened by impacts from the oil refining industry’s activities within the City, which include, but are not limited to the following:

A. In 2023, it is estimated that an average of 25,000 pounds of hazardous waste was produced each day by the oil refining industry within the City.

B. In 2022, it is estimated that 59,921 pounds of toxic chemicals were released into the surface waters of the San Francisco Bay and San Pablo Bay by the local refinery, impacting local wildlife and communities that closely interact with those waters including fishers. The refinery’s toxic releases increased significantly from the previous year in 2021, when it is estimated that 37,722 pounds of toxic chemicals 1301
2 were released into the surface waters of surrounding bays.

C. Odor complaints in Point Richmond from operations at the Long Wharf, as well as other noise and odor issues in neighborhoods near the refinery, impact the quality of life of City residents.

D. It is estimated that particulate matter from the refinery alone is linked to approximately 5 to 11 premature deaths in the City each year. Other health impacts from particulate matter, and from other contaminants such as NOx and SOx, include increased risks of infant mortality, cancer risk, and traumatic mental health effects.

E. The City’s asthma rate is at the statewide 90th percentile and the City’s neighborhoods near the refinery, such as the Iron Triangle and Atchison Village, are in the 97th to 99th percentile for asthma.

F. The preceding and other refining-related health impacts affect Richmond residents and their opportunities in life, including their income and, in turn, the economic position of the City itself.

G. In 2012, an explosion at an oil refinery injured six employees and sent 15,000 City residents to hospitals seeking medical treatment. A diesel spill in 2021 underscored more risks inherent in oil refining. Further, in 2023, a flaring incident logged more than 100 air quality complaints to the Bay Area Air Quality Management District.

These kinds of incidents require the City’s Fire Department to provide emergency response and City-sponsored alert systems such as Nixle to notify residents. These incidents, including ongoing flaring, which has increased since the local refinery completed its modernization project in 2018, also take a toll on the well-being of residents; at schools near the fence line, students know to run inside from the play yard when they see the refinery start flaring.

H. Property values in the City are suppressed by the proximity of Richmond homes and businesses to an oil refinery, impacting residents directly and the City’s property tax base.

I. The oil refining sector is volatile, and the City is vulnerable to those changes, and could one day be saddled with a toxic site with no one to pay for remediation.

Refinery closures can be announced overnight as a matter of the course of business, such as the Martinez Marathon refinery’s prior fate, before its course reversal and biofuel conversion, or the Philadelphia PES refinery’s sudden shuttering following an on-site explosion. In the latter case, the company declared bankruptcy, leaving behind a site (half the size of the Richmond refinery) that could take more than a decade to remediate at a price of more than a billion dollars according to experts.

Meanwhile, the owner and operator of the refinery in Richmond described its lack of closure and cleanup planning for refineries in its 2023 annual report, writing “no provisions are made for exit or cleanup costs that may be required when such assets reach the end of their useful lives unless a decision to sell or otherwise 1302
3 decommission the facility has been made, as the indeterminate settlement dates for the asset retirements prevent estimation of the fair value of the asset retirement obligation.”
J. A conversion of the local refinery from one that refines crude petroleum to one that refines alternative feedstocks or biofuels feedstocks still poses many of the same risks to the same degree, as recent local biofuel conversion projects and subsequent flaring, fires, chemical releases, and air pollution comparable to crude petroleum refining at the Rodeo Phillips 66 and the Martinez Marathon refineries demonstrate.

WHEREAS, therefore, the purpose of this Ordinance is to establish a business license tax, as an excise tax, upon the refining of oil in the City’s jurisdiction that shall be in addition to any other taxes that are imposed by the City, to the extent applicable.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF RICHMOND HEREBY ORDAIN AS FOLLOWS:

1. New Chapter 13.58. Chapter 13.58 is hereby added to Article 13 of the Richmond Municipal Code as follows:

13.58.010 Title
This Chapter shall be known as the “Richmond Refining Business License Tax Act.”

13.58.020 Purpose
This Chapter is enacted to establish a business license tax to raise revenue for municipal purposes and is not intended for the purpose of regulation. The taxes payable hereunder are general taxes within the meaning of Article XIIIC of the California Constitution.

13.58.030 Definitions
In this Chapter, the singular number includes the plural and the plural the singular, and the masculine gender includes the other genders. The word “shall” is mandatory, “may” is permissive.
(a) “Barrel of feedstock” shall mean 42 US gallons volumetrically, irrespective of any other industry standards related to different barrel sizes for nonpetroleum-based products. (b) “Conducting oil refining” shall mean the subjecting of feedstock to the refining process.
(c) “Engage in the business” shall mean to commence, operate, manage or carry on a business and to exercise corporate or franchise powers, whether done as an owner or by means of one (1) or more officers, agents, managers, employees, 1303
4 servants or otherwise, within the City, whether or not the business is operated from a fixed location and whether or not such location is within the City (d) “Feedstock” shall mean the material subjected to refining, and inclusive of:
(i) Petroleum;
(ii) Petroleum products that are pre-treated or partially refined offsite and brought onsite for the purpose of onsite refining; (iii) Other feedstocks that supply the refining process as its base material, inclusive of biofuels feedstocks or renewable feedstocks, including but not limited to oil derived from plants, cooking oil, and tallows and animal fat-based oils.

Materials that are not actually subjected to the refining process shall be excluded from this definition and shall not be the basis of any tax liability. (e) “Operate” or “operating” shall mean activities involved in the day to day functions of the business conducted for the purpose of generating profits. (f) “Person” shall mean as any domestic and foreign corporations, associations, syndicates, joint stock companies, firms, partnerships of every kind, trusts, societies, and individuals.
(g) “Petroleum” shall mean the common definition of petroleum, inclusive of crude oil.
(h) “Petroleum products” shall mean materials derived from petroleum.

For the purposes of this Chapter, petroleum products are any product derived from hydrocarbons, including, but not limited to, liquid petroleum gas (LPG), natural gas, gasoline, gas oil, jet fuel, diesel fuel, heavy fuels, lubricants, asphalt, bulk tar, petroleum coke, residuum, paraffins, naphtha, sulfur and petrochemicals, among others.
(i) “Refine,” “refining” and “oil refining” shall mean the process of producing gasoline, gasoline blending stocks, naphtha, distillate fuel oil including but not limited to diesels, kerosene, aviation fuel, lubricants (including but not limited to lube oil), asphalt, petrochemical feedstock, residual fuel oils, solvents, plastics, asphalt (including but not limited to bitumen), biofuels (including but not limited to ethanol, biodiesel, biogas, biomethane, or sustainable aviation fuel), or other similar products through the processing of crude oil, crude petroleum or alternative feedstocks (including but not limited to oil derived from plants, cooking oil, or tallows and other animal fat-based oils), redistillation of unfinished petroleum derivatives or unfinished biofuel derivatives, cracking, reforming, or other processes.
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5 (j) “Tax” shall mean the tax imposed by this Chapter. (k) “Tax certificate” shall mean the certificate issued pursuant to Section 13.58.060 to the taxpayer evidencing that the taxpayer has complied with the requirements of this Chapter, including, but not limited to, payment of all taxes, interest, and penalties owed by the taxpayer pursuant to this Chapter. (l) “Tax Collector” shall mean the director of finance of the City or his designee.
(m) “Taxpayer” shall mean any person required to pay the tax imposed by this Chapter.

13.58.040 Tax Certificate Required
It shall be unlawful for any person to engage in the business of conducting oil refining in the City of Richmond without first obtaining a tax certificate and paying the tax pursuant to and required by this Chapter.

13.58.050 Oil Refining Tax
In addition to any other taxes imposed by the City, every person engaged in the business of conducting oil refining in the City of Richmond shall pay a business license tax at the rate of $1.00 per barrel of feedstock that is refined in the City of Richmond, provided that this tax is not a tax on the sale or use of gasoline or other fuels for propelling motor vehicles or upon the storage of gasoline or other fuels for use by the business doing the storage to fuel motor vehicles operated or for the benefit of that business.

13.58.060 Issuance of Tax Certificate
(a) A person subject to the tax imposed by this Chapter shall submit a tax return each calendar quarter for a tax certificate on a form provided by the Tax Collector. The tax return shall include sufficient information, including, but not limited to, information on the amount of barrels of feedstock refined in the City of Richmond, to allow computation of the tax due, as well as any other information deemed necessary by the Tax Collector for the administration of this Chapter and calculation of the tax owed. The tax return shall also be accompanied by payment of all taxes, interest, and penalties due under this Chapter. (b) Tax returns shall be signed under penalty of perjury by one authorized to bind the taxpayer.
(c) Upon confirmation that the tax return evidences compliance with this Chapter (including, but not limited to, the payment of any tax, interest, and penalty owed pursuant to this Chapter), the Tax Collector shall issue the taxpayer a tax certificate evidencing that compliance.
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6 13.58.070 Administration; Gann Limit Override
(a) The Tax Collector shall be responsible for issuing tax certificates pursuant to this Chapter and otherwise for its administration and enforcement. The people of the City of Richmond intend this Chapter to be enforced consistently with the Municipal Code and any rule or regulation promulgated under the Municipal Code except as expressly provided to the contrary in this Chapter or a regulation adopted pursuant to this Chapter.
(b) Pursuant to California Constitution, Article XIII B, the appropriation limit for the City is increased to the maximum extent over the maximum period of time allowed under law to allow the City to spend the revenues generated by the taxes and fee imposed by this Chapter to fund City services and for other lawful purposes of the City.

13.58.080 Tax Certificate Expiration; Renewal
Tax certificates shall expire at the end of each calendar quarter.

13.58.090 Calculation of Initial Business License Tax
A taxpayer paying an initial business license tax under this Chapter shall report on the tax return required by Section 13.58.060 the amount of barrels of feedstock refined in the City of Richmond in the calendar quarter immediately prior to the date of the tax return to allow calculation of the tax imposed by this Chapter. For the purposes of clarification, this tax shall not be imposed upon any refining occurring prior to July 1, 2025.

13.58.100 Calculation of Renewal Business License Tax
Upon expiration of a tax certificate issued under this Chapter, the taxpayer shall report on the tax return required by Section 13.58.060 the amount of barrels of feedstock refined in the City of Richmond during the previous calendar quarter to allow calculation of the tax imposed by this Chapter.

13.58.110 Tax Certificate Not Transferable – Duties upon Transfer of Business (a) No tax certificate issued under this Chapter may be transferred to any other person.
(b) Whenever any person required to pay a tax pursuant to this Chapter shall quit business or dispose of a business required to pay taxes under this Chapter, any tax payable under this Chapter shall be immediately due and payable. (c) Whenever any person required to pay a tax pursuant to this Chapter transfers a business required to pay taxes under this Chapter to another person, the transferor and transferee of such business shall be jointly and severally liable for any tax, interest and penalties due from that business under this Chapter. No tax 1306
7 certificate may issue to the transferee until such tax, interest and penalties are paid. (d) Successor and Assignee Responsibility.

1. If any person, while liable for any amount under this Chapter, sells, assigns or otherwise transfers half (1/2) or more of a business subject to the tax imposed by this Chapter, whether voluntarily or involuntarily, the person’s successor, assignee or other transferee, or other person or entity obtaining ownership or control of the business (“transferee”) shall pay that amount when due. A transferee shall notify the Tax Collector of a transfer thirty (30) days before the transfer date; or if the agreement to sell, transfer, or otherwise dispose of the business is made less than thirty (30) days before the date of transfer, on the first business day after the transfer.

2. A transferee shall be deemed to have satisfied an unpaid liability if the transferee complies with the requirements of California Revenue and Taxation Code Section 7283.5 and this section by withholding from the purchase price, for the benefit of the City, an amount sufficient to cover the liability, or by otherwise paying the liability and obtaining from the Tax Collector a “tax clearance certificate” showing that all outstanding liability has been paid through the date of transfer.

3. Within ninety (90) days of receiving a written request from a transferee, the Tax Collector may issue a “tax clearance certificate” stating either the amount due as to the business under this Chapter, or stating that there is no liability due for the business through a stated date. The Tax Collector may also request records from the transferor to audit the amount due under this Chapter. The Tax Collector shall issue a tax clearance certificate within thirty (30) days of completing the audit, stating any amount owed, unless the Tax Collector determines the records provided for audit are insufficient to determine whether taxes, fees, penalties and/or interest are due and in what amounts. If so, the Tax Collector may rely on available information to estimate any amount due and shall issue a tax clearance certificate stating that amount

13.58.120 Due dates; delinquency, interest and penalties for fraud and negligence
(a) Payment Deadline. The tax imposed under this Chapter is due and payable according to the following schedule:

1. For refining conducted from January 1 to March 31 of that same year, the tax payment shall be due on April 1 and shall become delinquent on April 30 of that same year.

2. For refining conducted from April 1 to June 30 of that same year, the tax payment shall be due on July 1 and shall become delinquent 1307
8 on July 31 of that same year.

3. For refining conducted from July 1 to September 30 of that same year, the tax payment shall be due on October 1 and shall become delinquent on October 31 of that same year.

4. For refining conducted from October 1 to December 31 of that same year, the tax payment shall be due on January 1 of the next year and shall become delinquent on January 31 of the next year. (b) Should the due date occur on a weekend or legal holiday, the return may be postmarked on the first regular working day following a Saturday/Sunday or legal holiday.
(c) Every new business subject to this Chapter shall file a tax return and pay any tax due prior to the first day of operation (to the extent any tax is owed), and the tax shall become delinquent ninety (90) days thereafter and the penalties of Sections 13.58.120(d) and 13.58.120(e) shall then attach, to the extent applicable. (d) In the event that the tax is not paid prior to becoming delinquent, a delinquency penalty of ten percent (10%) of the amount of tax due shall accrue. In the event a portion of the tax is unpaid prior to becoming delinquent, the penalty shall only accrue as to the portion remaining unpaid. An additional penalty of fifteen percent (15%) shall accrue if the tax remains unpaid on the 90th day following the date of the original delinquency. Interest (simple) shall accrue at the rate of one percent (1%) each month, or fraction thereof, on the amount of tax from the date the tax becomes delinquent to the date of payment or date of lien. Interest and penalty accrued shall become part of the tax.
(e) The Tax Collector shall have the power to impose additional penalties upon persons required to remit taxes pursuant to the provisions of this Chapter for fraud and negligence in reporting or remitting the tax owed at the rate of fifteen percent (15%) of the difference between the tax amount as computed by the taxpayer and the tax amount as recomputed by the Tax Collector. (f) The City Council may modify the percentages provided in Sections

13.58.120(d) and 13.58.120(e) by resolution.

13.58.130 Constitutional apportionment
(a) The tax provided for by this Chapter shall not be so applied so as to occasion an undue burden upon interstate commerce or be violative of the constitutions of the United States and/or the State of California. (b) When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the tax imposed by this Chapter cannot be enforced without there being an apportionment according to the amount of business done in the City of Richmond, or in the State of California, as the case may be, 1308
9 rules and regulations for apportionment of the tax shall be established as follows:
(1) The City Council from time to time may adopt by resolution general guidelines for apportionment.
(2) The Tax Collector, with the approval of the City Attorney, may make such rules and regulations for the apportionment of the tax as are necessary and desirable to overcome the constitutional objections and which are consistent with any general apportionment guidelines adopted by resolution of the City Council.
(c) Notice of any rule or regulation adopted pursuant to thissection shall be given pursuant to Section 13.58.150(c) and such rules and regulations shall be effective as provided in Section 13.58.150(c).

13.58.140 Records
(a) It shall be the duty of every person required to remit to the City any tax imposed by this Chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he may have been liable for the remittance to the Tax Collector, which records the Tax Collector shall have the right to inspect at a reasonable time for the purpose of conducting an audit pursuant to Section 13.58.170 or verifying a refund claim pursuant to Section 13.58.160.
(b) The City may issue an administrative subpoena to compel a person to deliver, to the Tax Collector, copies of all records deemed necessary by the Tax Collector, to establish compliance with this Chapter, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the person in the usual and ordinary course of business.

As an alternative to delivering the subpoenaed records to the Tax Collector on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the City on or before the due date, provided that such person shall reimburse the City for all reasonable travel expenses incurred by the City to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those persons designated by the City to conduct the inspection.
(c) The Tax Collector is authorized, but is not required, to execute a nondisclosure agreement, subject to the City Attorney’s approval as to form, to protect the confidentiality of taxpayer information pursuant to state or federal law including but not limited to California Civil Code section 3426 et seq. (d) If any person subject to recordkeeping under this Section unreasonably denies the Tax Collector access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, then the Tax Collector may impose a penalty of $500 on such person for each day following: (i) the initial date that the person refuses to provide such access; or, (ii) 1309
10 the due date for production of records as set forth in the administrative subpoena.

This penalty shall be in addition to any other penalty imposed under this Chapter.

13.58.150 Rules and regulations for enforcement
(a) The Tax Collector is authorized to make such rules and regulations as may be necessary to aid or assist in enforcement of the provisions of this Chapter. (b) The Tax Collector shall have the power and duty, and is directed, to enforce each and all of the provisions of this Chapter. (c) The Tax Collector shall give notice of such rules and regulations in the manner by publishing such rules and regulations once in a newspaper of general circulation within the City. If there is no newspaper of general circulation within the City, then the Tax Collector may instead post such rules and regulations in the same locations as where the agendas are posted for regular meeting agendas of the City Council. Such rules and regulations shall be effective 10 days after such posting or publication.

13.58.160 Refunds
No tax, penalty or interest shall be refunded unless it is determined by the Tax Collector that it has been paid in error, computed incorrectly, overpaid, or collected illegally. No refund shall be made unless a request is received in writing by the Tax Collector within one (1) year of the payment of the tax, interest, or penalty to be refunded as provided in this section. Such request shall include any information or documentation required by the Tax Collector.

13.58.170 Audits and Adjustments
(a) Upon request of the Tax Collector, any person engaged in a business subject to this tax shall provide the necessary records to substantiate the tax paid or due for such business. If, upon audit of such records, the Tax Collector determines the tax imposed by this Chapter has not been paid in full, the Tax Collector shall notify the taxpayer of the balance due, including any accrued penalties and interest.

Such amount shall be paid within thirty (30) days after notice is issued by the Tax Collector.
(b) If an audit reveals an underpayment of two (2) percent or greater, the taxpayer shall reimburse the City for the full reasonable costs incurred by the City in conducting the audit and enforcing this Chapter, including all legal fees and payment for necessary consultants to conduct the audit. (c) If an audit reveals an overpayment, the Tax Collector shall notify the taxpayer of the amount overpaid. Unless the taxpayer in writing requests a refund of the overpayment within thirty (30) days after notice is issued by the Tax Collector, the overpayment shall be applied as a credit against the next tax due. 1310
11 (d) If an audit reveals an underpayment of $100.00 or less, the Tax Collector shall take no action to collect the underpayment. The Tax Collector may adjust this figure for inflation on January 1st of each year using the consumer price index for all urban consumers for the San Francisco Area that is promulgated by the U.S. Bureau of Labor Statistics. In the event that such consumer price index is no longer being calculated by the U.S. Bureau of Labor Statistics, then the Tax Collector may utilize any appropriate successor consumer price index. (e) Rather than request information and conduct an audit, the Tax Collector may request that a taxpayer file a corrected tax return. If such a tax return is filed and the Tax Collector is satisfied with its accuracy, the existence of any underpayment or overpayment under this Chapter shall be determined with reference to that corrected tax return. If a taxpayer fails to file a corrected tax return or if the Tax Collector is not satisfied with a corrected tax return, the Tax Collector may conduct an audit under this section.

13.58.180 Appeals
(a) Initiation – Contents of Notice of Appeal. Any person may appeal any decision of the Tax Collector made under this Chapter within fifteen (15) days of the decision. The City Council delegates its authority to conduct the hearing on such appeals to an independent hearing officer. The compensation of the independent hearing office shall not depend on any particular outcome of the appeal. The independent hearing officer shall have full authority and duty to preside over the hearing on the matter appealed in the manner set forth herein and as required by law. Any such appeal shall be made by filing it with the City Clerk and any such appeal shall be in writing and shall include all of the following:

1. The name and address of appellant.

2. The matter being appealed.

3. A statement of the grounds of appeal.

4. If the appeal relates to the taxes due, then such appeal shall include all of the following:
(i) Payment of any tax due under this Chapter and
whether such payment is done under protest.
(ii) Whether the whole tax is claimed to be void, or, if only a part, what part.

5. Any other information required by Section 1.10.010.
(b) Notice of Deficiency. If the City Clerk finds a notice of appeal to be deficient, the City Clerk shall deliver or mail or cause to be mailed to the appellant by certified mail addressed to the appellant at the address of the appellant shown 1311
12 on the notice of appeal a notice of deficiency specifying the particulars in which the notice of appeal is deficient. If such deficiency is corrected by the appellant within seven (7) days after mailing of a notice of deficiency by filing with the City Clerk a sufficient amendment to the notice of appeal, the notice of appeal shall be deemed to be withdrawn.
(c) Appeal Hearing and Hearing Officer’s Decision.

1. The appeal hearing will be held by the independent hearing officer within sixty (60) days after the timely filing of an appeal pursuant to this section, unless the 60 day time limit is waived by the appellant, or unless the independent hearing officer continues the appeal hearing date for good cause and upon written notification to the appellant. Notice of the appeal hearing shall be provided to the appellant at least 10 days before the date of the appeal hearing, unless waived by the appellant.

2. The independent hearing officer shall review the facts of the matter, written documents submitted for review (including, but not limited to, the appeal filed with the City Clerk), testimony, argument and evidence submitted in writing or orally, and the basis for the Tax Collector’s decision; and determine whether and to what extent to grant or deny the appeal. Such determination by the independent hearing officer shall be done in writing.

3. The independent hearing officer’s decision shall be final as to the City, but subject to judicial review pursuant to Code of Civil Procedure Section 1094.5.
(d) Notice of Decision. The independent hearing officer shall cause notice of his or her decision to be given to the appellant. Such notice shall be given in the manner required by this section for a notice of deficiency. Any amount found to be due shall be immediately due and payable upon the service of notice.

13.58.190 Exhaustion of Administrative Remedies
Prior to seeking judicial relief on any matter under this Chapter, a taxpayer must fully exhaust all administrative remedies provided under this Chapter, including, but not limited to, the requirements of Section 13.58.160 and Section 13.58.180.

Further any litigation filed by such taxpayer shall be limited to the subject matter of the appeal filed pursuant to Section 13.58.180.

13.58.200 Refining Tax an excise tax
The payment of any amount under this Chapter measured by volume is not a tax on such property, but is an excise tax on the privilege of engaging in the business of conducting oil refining in the City measured by the amount of refining undertaken by volume. Further, the tax imposed by this Chapter is akin to (but not duplicative of) a tax upon the privilege of conducting business within the City of Richmond. It is not a sales tax or a use tax, or other excise tax on the sale, consumption or use of 1312
13 feedstock or refined products.

13.58.210 Notice
Any notice to a taxpayer under this Chapter shall be sufficient if deposited with postage prepaid in the United States mail and addressed to the address provided on the taxpayer’s most recent tax return unless a change of address notice has been received, in which case notice is sufficient if mailed to the most recent address of which the Tax Collector has been informed.

13.58.220 Violations
It is a violation of this Chapter, punishable as a misdemeanor, to knowingly or intentionally misrepresent to any officer or employee of the City any material fact, relative to any tax imposed under the provisions of this Chapter. Notwithstanding the foregoing, any provision of this Chapter may be enforced by any action at law or equity or by any other remedy authorized by this Code.

13.58.230 Suit for recovery of unpaid sums; tax owed a debt to the City Any tax, fee, penalty, or interest imposed pursuant to this Chapter shall be deemed a debt to the City and any person who engages in the business of conducting oil refining within the City without payment of the tax provided in this Chapter shall be liable in an action by and in the name of the City in any court of competent jurisdiction for recovery of any such sum.

13.58.240 Remedies Cumulative
The conviction and punishment of any person for failure to comply with this Chapter shall not relieve such person from paying any tax, fee, penalty, or interest due and unpaid at the time of such conviction, nor shall payment prevent prosecution of a violation of this Chapter. All remedies shall be cumulative, and the use of one (1) or more remedies by the City to enforce this Chapter shall not bar the use of any other remedy.

13.58.250 Annual Audit; Deposit in City’s General Fund
The proceeds resulting from the tax established by this Chapter shall be deposited into the City’s General Fund and become subject to the same independent annual audit requirements as other General Fund revenues. In addition, the City shall cause an independent auditor to complete an audit report regarding the collection of this tax and the expenditure of the revenues collected, provided that such report may be combined with the City’s independent annual audit requirements as described above. Such report shall be due on the same date as the City’s independent annual audit of the City’s General Fund and shall inform the public as follows: (i) attest to the inspection of records that establish compliance with this Chapter by the Tax Collector; (ii) state the total revenue generated by this Chapter during the period covered by the audit report; and (iii) affirm where the tax revenue generated under 1313
14 this Chapter is allocated, and if the Tax Collector cannot trace the funds beyond their allocation to the General Fund, a description of that fact by the Tax Collector shall suffice. In complying with this section, the Tax Collector shall not divulge any confidential business information. Noncompliance with this section by the City shall in no way affect the validity, applicability, or enforceability of this Chapter to any person liable for tax payment under this Chapter; noncompliance with this section shall not affect a person’s liability or payment schedule under this Chapter.

13.58.260 Operative Date; Expiration Date
This Chapter shall be operative on July 1, 2025, such that it shall not be imposed upon any person engaged in the business of conducting oil refining in the City of Richmond prior to July 1, 2025, and no tax shall be due prior to July 1, 2025. This Chapter shall expire 50 years after July 1, 2025.

13.58.270 Construction
It is the intent of the people of the City of Richmond that the tax imposed by this Chapter be limited to the taxing power of the City and not to tax activity outside the tax jurisdiction of the City or to disfavor intercity or interstate commerce. It shall be construed in light of that intent.

13.58.280 City Council Authority to Amend
The City Council has the right and authority to amend this Chapter, to further its purposes and intent (including but not limited to amendment for more efficient administration as determined by the City Council), in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution, pursuant to Section 9217 of the California Elections Code. However, the City Council shall not have the authority to decrease the tax imposed by this Chapter and any such decrease in the tax imposed by this Chapter shall require the approval of a majority of the City’s voters voting on such a measure.

13.58.300 Severability
If any section, subsection, sentence, clause, phrase or portion of this Chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of the Chapter. The people of the City hereby declare that they would have adopted this Chapter and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

2. City Council Authority To Amend. This is a City Council sponsored initiative Ordinance which otherwise would only be subject to amendment by the voters of the City of Richmond. However, pursuant to Section 9217 of the California Elections Code, the City Council expressly reserves the right and authority to amend the Ordinance in any manner 1314
15 that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution. However, the City Council shall not have the authority to decrease the tax imposed by this Chapter and any such decrease in the tax imposed by this Chapter shall require the approval of a majority of the City’s voters voting on such a measure.

3. Appropriations Limit. Pursuant to Article XIIIB of the California Constitution, the appropriations limit for the City of Richmond is increased to the maximum extent over the maximum period of time allowed under the law consistent with the revenues generated by this tax.

4. CEQA. This measure to be submitted to the voters adopts a general tax to fund any lawful purpose of the City. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant impact on the environment. Therefore, under CEQA Guidelines section 15060, review under CEQA is not required.

5. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of this Ordinance. The people of the City hereby declare that they would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

6. Effective Date; Operative Date; Expiration Date. If approved by a majority (50%+1) of the voters of the City of Richmond at the November 5, 2024, General Municipal Election, then this Ordinance shall become a valid and binding ordinance of the City of Richmond, and shall be considered as adopted upon the date that the vote is declared and by the City Council, and this Ordinance shall go into effect ten (10) days after that date, pursuant to Election Code Section 9217, and shall be operative on July 1, 2025. This Ordinance shall expire 50 years after its operative date of July 1, 2025.

7. Execution. The Mayor of the City of Richmond is hereby authorized and ordered to attest to the adoption of the Ordinance by the voters of the City of Richmond by signing where indicated below.
[SIGNATURES ON FOLLOWING PAGE]
1315
16 I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by a majority vote of the People of the City of Richmond, California voting on the 5th day of November, 2024.

Eduardo Martinez, Mayor
ATTEST:

Pamela Christian, City Clerk
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1250 SIXTH STREET, SUITE 205
SANTA MONICA, CA 90401
310-576-1233
Memorandum
To: Richmond City Council Date: May 16, 2024
From: Beverly Grossman Palmer and Julia Michel
Re: City of Richmond Tax on Refined Feedstock

EXECUTIVE SUMMARY
A City of Richmond general tax on the privilege of conducting oil refining within the City of Richmond, based upon the volume of feedstock refined within the City of Richmond, is a legally sound approach to taxation that should withstand legal challenge. This general tax requires a 50 percent + 1 threshold for adoption by the voters, and raises revenue for general governmental use. It is our conclusion, as set forth in detail herein, that the proposed tax addresses the legal issues raised in connection with past efforts to tax refining activity in Richmond, and adopts an excise tax, which is a well-established approach to city taxation in general that puts this tax within the heartland of local tax measures that have been upheld by the courts.

BACKGROUND ON PROPOSED TAX MEASURE
Communities for a Better Environment (“CBE”) and Asian Pacific Environmental Network (“APEN”) have proposed to the City Council that it place before the voters a general tax on the privilege of conducting the business of refining in the City of Richmond. The proposal is to tax input feedstock (meaning material that is brought into a refinery in the City of Richmond and subjected to refining) $1.00 per barrel of feedstock. The proposed ordinance could broadly define refining to capture a wide range of potential refining activities that impact the City of Richmond when conducted within the City. The proposal could also utilize a broad definition for “feedstock” to capture a range of potential inputs to refining processes in the future. Details would be subject to future discussion after Council consideration of the proposal at the May 21, 2024, City Council meeting. 1317
Richmond City Council
May 16, 2024

The proposed tax would be additional to any taxes currently imposed by the City. At present, the Chevron Refinery in Richmond is the only refinery operating within the City borders. It is our understanding that Chevron’s tax liability to the City is established by a settlement agreement that will sunset on June 30, 2025. The proposed tax would therefore go into effect on July 1, 2025, so as to avoid any argument that the proposal is contrary to the 2010 settlement agreement between the City and Chevron. As currently envisioned, the proposed tax would be collected on a quarterly basis.

ANALYSIS
I. Excise Tax on Refining Feedstock
A. General Tax
The proposed tax would be a general tax, as opposed to a special tax. A general tax placed on the ballot by City Council would require support of a simple majority of the vote (50% + 1). As a general tax, all revenue generated by the tax would be directed to the City’s General Fund and spending would remain subject to the Council’s discretion. We conclude that this approach of placing a general tax before the voters avoids legal uncertainty created by the pending statewide ballot measure known as the Taxpayer Protection and Government Accountability Act, which would prohibit use of so-called advisory questions on a ballot in connection with general tax measures. The proposed general tax must be presented consistent with the requirements of the pending statewide measure to ensure that the ordinance would not have to be reapproved in a future election.

B. Proposed Taxation Mechanism and Related Legal Issues As discussed above, the proposed excise tax would impose a $1.00 per barrel tax on each barrel (42 U.S. gallons) of feedstock that is refined at any refinery in Richmond. The tax will be paid by the refiner.

It is not a tax on gasoline or motor vehicle fuel and will not apply to motor vehicle fueling stations.

A. Tax on the Privilege of Conducting Refining Operations in Richmond The proposed tax applies to the privilege of conducting refining operations in the City of Richmond, based upon the refinery “inputs” that are subjected to the refining process in Richmond, as measured by the volume of material refined (as opposed to the value of that material). This approach is 1318
Richmond City Council
May 16, 2024

specifically proposed in consideration of prior legal challenges to taxes on refining in an effort to address the identified flaws and new potential challenges to such measures.

1. Measure T and the Dormant Commerce Clause
A key purpose of our analysis is to evaluate whether the proposed tax would be subject to the same legal challenges as the 2008 Measure T, which also imposed a tax on refining in the City of Richmond. Measure T operated as an amendment to Richmond’s business license tax, imposing a tax on businesses in exchange for the privilege of conducting business in the City. Specifically, Measure T required those engaged in manufacturing (which included “any process of refining or processing hydrocarbons, petroleum or crude oil to produce products for use as fuels, lubricants, solvents, plastics, or other intermediate or final products”) to pay a percent of the value of the raw materials used during the manufacturing process. Measure T was also a “tandem” tax, meaning that it required manufacturers to pay the “greater” of a “head tax” ($234.10 plus $40.10/employee for every employee above 25) or a “raw materials tax” (“one fourth of one percent (.025%) of the value of materials used in the manufacturing process during the calendar year immediately preceding the year in which the fee is paid”).
1 “Tandem” taxes such as Measure T tend to receive greater judicial scrutiny because they inevitably result in higher tax burdens for companies operating among more than one jurisdiction—an outcome that courts have concluded violates the “dormant” Commerce Clause of the U.S.

Constitution. State and local taxes may be challenged as violating the “dormant” Commerce Clause, 1 The specific provision at issue stated:
“Value” means, with respect to materials used in manufacturing, the actual cost or fair market value, whichever is greater, of all the materials used in manufacturing. With respect to any materials used in manufacturing for which there is a published spot price in the financial markets, “value” shall be deemed to be equal to such published spot price for purposes of this chapter unless substantial evidence is presented to the Tax Collector that the actual fair market value of the materials is lower. Notwithstanding the foregoing, for purposes of calculating the license fee for any manufacturing process involving crude oil, the value of such crude oil shall be deemed to be equal to the product of (i) the total amount of crude oil used during the period of calculation for the business license, times (ii) the average daily spot price of New York Mercantile Exchange Inc. Light Sweet Crude Oil (trading symbol CL), or, if such index is no longer published, such other index as is determined to be comparable by the Tax Collector, for such period. 1319
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May 16, 2024

and in reviewing such a challenge, courts will uphold the challenged tax only if it satisfies the fourpronged test set forth in Complete Auto Transit, Inc. v. Brady (1977) 430 U.S. 274: the tax is (i) applied to an activity with a substantial nexus with the taxing jurisdiction, (ii) fairly apportioned, (iii) does not discriminate against interstate commerce, and (iv) is fairly related to the services provided by the local jurisdiction. (Id., at p. 279.)
Chevron challenged Measure T on “dormant” Commerce Clause grounds, focusing on whether that tax was fairly apportioned. When determining whether a tax is “fairly apportioned,” cases instruct courts to look to both the “internal” and “external” consistency of the tax. Internal consistency tests the structure of the tax; it hypothesizes that the challenged taxing regime is replicated in every jurisdiction, and asks whether a company doing business in more than one jurisdiction would be subject to greater tax than a company confining its operations to a single jurisdiction. (Oklahoma Tax Comm’n v. Jefferson Lines, Inc. (1995) 514 US 175, 185.) External consistency looks to “the economic justification for the State’s claim upon the value taxed, to discover whether a State’s tax reaches beyond that portion of value that is fairly attributable to economic activity within the taxing State.” (Northwest Energetic Services, LLC v. California Franchise Tax Bd. (2008) 159 Cal.App.4th 841, 863.)
The superior court in the Measure T case concluded that the tax failed the “internal consistency” test because of the “tandem tax” component. (Order, pp. 12-13.) A slew of other California cases had concluded similar “tandem taxes” were also constitutionally infirm. (General Motors Corp. v. City of Los Angeles (1995) 35 Cal.App.4th 1736; General Motors Corp. v. City & County of San Francisco (1999) 69 Cal.App.4th 448; Union Oil Co. v. City of Los Angeles (2000) 79 Cal.App.4th 383; cf. Macy’s Dept. Stores, Inc. v. City and County of San Francisco (2006) 143 Cal.App.4th 1444, 1451 [“It is only the tandem interaction of the City’s payroll and gross receipts taxes that violates the commerce clause under the internal consistency test. In isolation, each of the taxes is valid.”].)
Importantly, however, the superior court did not conclude that the tax on refinery “inputs” was unconstitutional.2 That is, the difficulties with the “internal consistency” test can be ameliorated by 2 Even Chevron acknowledged that “[t]he issue is not whether the head tax or the value tax, when considered separately, are externally consistent under the Commerce Clause.” (Chevron Supplemental Reply, 9/25/2009, p. 9.)
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not structuring a tax to be a “greater of” two options. The proposal is structured to tax only one thing:
a tax on each barrel of feedstock that is refined in Richmond.

As opposed to internal consistency, the “external consistency” test is concerned with the underlying economic realities of how the tax applies in practice, and the analysis is undertaken on a case-by-case basis to determine whether a tax is fairly apportioned as applied to particular taxpayers.

Typically, such issues are addressed by having tax liabilities “apportioned” based on the business that is done within the municipality. Unfortunately, Measure T did not contain an apportionment provision. What is more, when the City suggested during the litigation that there were options for how tax officials could enact apportionment, the superior court concluded that would be inappropriate because voters were given the impression that the full, unapportioned amount would be raised from Chevron. (Order, p. 14.) The superior court also found the City’s argument to be inconsistent with Elections Code section 9217, which prohibits a city’s legislative body from repealing or amending a voter-adopted municipal ordinance, unless the ordinance authorizes the city to repeal or amend it. (Order, p. 19.) In other words, the problem was that “reading in” an apportionment provision or apportionment guidelines would have effectively amended the text of the ordinance, thereby violating Elections Code section 9217. For this reason, CBE and APEN propose to include express apportionment provisions empowering any necessary apportionment to be performed by the Tax Collector.3 It is not uncommon for measures, including tax measures, to establish and set a policy and delegate authority to another (here, the tax assessor) to “fill up” the details of a scheme. (E.g., Kugler v. Yocum (1968) 69 Cal.2d 371, 376.)
3 Moreover, based upon the proposal to tax refining activity on the basis of the volume of feedstock that is refined in Richmond only, apportionment may be unnecessary. Apportionment issues arise most obviously when the tax is on a company’s entire income or all of its gross receipts. For a company such as Apple, for example, it may be based in California but have income from sales in 50 states. If California taxed 100% of Apple’s income, it would be taxing “more than its fair share”— which is why it is common to see apportionment formulas based on a percent of sales within the taxing state. The proposed tax on refining in Richmond only applies to refinery operations conducted in Richmond, so it only reaches activity taking place within the jurisdiction. Out of an abundance of caution, CBE and APEN proposed that it would still be prudent to include some language providing for apportionment..
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2. Inventory Tax
Chevron had also argued that Measure T was a property tax on “business inventories” precluded by Revenue and Taxation Code (hereinafter “RTC”) sections 2194 and 129. 5 It is our
opinion that the proposed tax on feedstock that is refined in Richmond is an excise tax, not a property tax, and therefore the “business inventory” exemption does not apply.

Prior to 1980, California imposed an “ad valorem” (read: “value” 6) tax upon certain tangible personal property in the possession of businesses on the tax lien dates. Today, the Revenue and Taxation Code (hereinafter “RTC”) exempts business inventories from such property taxes. “Business inventories” include “all tangible personal property, whether raw materials, work in process or finished goods, which will become a part of or are themselves items of personalty held for sale or lease in the ordinary course of business.” (Cal. Code Regs., tit. 18 (hereinafter “Regulation”), § 133.)
Although there are no cases applying the “business inventory” exemption to crude oil or refined petroleum products held out for sale, these items could be considered exempt because crude oil is raw material that “will become a part of” the refined products held out for sale, and the refined products are “themselves items . . . held for sale” in the ordinary course of business. (Regulation, § 133.)
However, the business inventory exemption means that business inventories are exempt from property taxes. Yet the tax being contemplated in Richmond is not a property tax but rather an ordinary excise tax on the privilege of engaging in refining. Ingels v. Riley (1936) 5 Cal.2d 154 is the 4 RTC § 219 provides:

For the 1980-81 fiscal year and fiscal years thereafter, business inventories are exempt from taxation and the assessor shall not assess business inventories.
5 RTC § 129 provides in pertinent part:
‘Business inventories’ shall include goods intended for sale or lease in the ordinary course of business and shall include raw materials and work in process with respect to such goods.
6 Black’s Law Dictionary defines “ad valorem” as “proportional to the value of the thing taxed.” Webster's Dictionary has a similar definition, defining it as “according to value: a term applied to (a) a duty laid upon goods at a certain rate per cent according to their invoiced value, rather than upon the quantity of pieces; (b) an assessment of taxes laid on the value of property.” 1322
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key case defining the difference between an excise tax and a property tax. The case focuses on how a tax on property “does not impose any condition nor does it place any restriction upon the use of the property taxed,” whereas a privilege (read: “excise”) tax “is imposed upon the right to exercise a privilege, and its payment is invariably made a condition precedent to the exercise of the privilege involved.” (Ibid.) Factors that courts have used to identify a property tax include:
• Whether “mere ownership” of the property makes one liable for the tax (Thomas v. City of East Palo Alto (1997) 53 Cal.App.4th 1084, 1086.)
• Whether there is no relationship or proportionality between the volume of business conducted in the City - and thus the demand for municipal services - and the amount of tax imposed (RTC, § 37101(b); City of Oakland v. Digre (1988) 205 Cal.App.3d 99, 108);
• Whether the tax is “generally due and payable annually at a set time” (id., at p. 106).

By contrast, an excise tax is not a property tax when it taxes “the exercise of one of the incidents of property ownership, such as the ability to transfer or devise property, or the ability to use, store or consume” property. (Tesoro Logistic Operations, LLC v. City of Rialto (2019) 40 Cal.App.5th 798, 810–811; Thomas, 53 Cal.App.4th at p. 1088 [a valid excise tax is a tax on “any of the incidents of ownership, such as sale, transfer, rental, special use of certain city services, and so on.”].)
Citing the court of appeal’s analysis of the business inventories exemption and its legislative history in Amdahl Corp. v. County of Santa Clara (2004) 116 Cal.App.4th 604, 623, Chevron argued that the Measure T value tax had many of the attributes of a property tax on business inventories: (1) the tax was based on value (ad valorem); (2) the tax was imposed annually; (3) the tax was due on a set date each year; (4) the tax was based on the value of materials that flowed through the inventory account of a manufacturer-raw materials incorporated into the final manufactured product; and (5) the tax was imposed on raw materials.

The superior court disagreed with Chevron and concluded that “while value is used as a factor in determining the amount of tax, the entire inventory of every manufacturer is not being taxed” and therefore Measure T “is not a tax upon inventory precluded by Revenue & Taxation § 219.” (Order, p. 22.) The key reason was that “the volume times value factor is simply being used as a measure of the amount of business being performed in Richmond by Chevron.” (Ibid.) This reflects the Supreme Court’s statement that an excise tax “does not become a property tax simply because 1323
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it is proportioned in amount to the value of the property used in connection with the privilege which is taxed.” (Ingels, Cal.2d at p. 161.)
Finally, as the superior court in the Measure T litigation noted, the fact that the Measure T tax was based on the value of crude oil that underwent the refining process weighed in favor of concluding that Measure T operated as a property tax. The proposal being considered involves taxing inputs volumetrically, rather than value, adding another argument why the proposal being considered should not be considered a “property” tax under the applicable legal precedent.

3. Use Tax
Based on the Measure T litigation, a challenger might also repeat Chevron’s argument that a tax on raw materials or the refined product constitutes a “use tax” that is preempted by the Bradley-Burns Uniform Sales and Use Law, Revenue and Taxation Code §§ 7200, but it is our conclusion that the proposed tax would withstand such a challenge.

The California Legislature has adopted a statute allowing cities and counties to levy a business license tax, Government Code section 37101. This is a classic type of “excise” tax. (Dondlinger v.

Los Angeles County Regional Park & Open Space Dist. (2019) 31 Cal.App.5th 994, 1002 [“An excise is a ‘tax imposed on the manufacture, sale, or use of goods (such as a cigarette tax), or on an occupation or activity (such as a license tax or an attorney occupation fee)’”], quoting Black’s Law Dictionary.)
California also has a state sales tax. The sales tax is imposed on retailers “[f]or the privilege of selling tangible personal property at retail ... in this state....” (City of South San Francisco v. Board of Equalization (2014) 232 Cal.App.4th 707, 713, quoting RTC, § 6051.) “The retailer is the taxpayer, not the consumer.” (Loeffler v. Target Corp. (2014) 58 Cal.4th 1081, 1104.) The central principle of the sales tax is that retail sellers are subject to a tax on their “gross receipts” derived from retail “sale” of tangible personal property. (City of South San Francisco, 232 Cal.App.4th at p. 713, quoting RTC, § 6051.) The term “sale” means “[a]ny transfer of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration.” (RTC, § 6006, subd. (a).)
California’s state “use” tax complements the sales tax by taxing products bought outside California and used or consumed in California as though these products were purchased inside 1324
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California. (Dondlinger, 31 Cal.App.5th at p. 1002 [“A use tax is a ‘tax imposed on the use of certain goods that are bought outside the taxing authority’s jurisdiction. Use taxes are designed to discourage the purchase of products that are not subject to the sales tax.’”] [quoting Black’s Law Dict.].) In contrast to a sales tax, the use tax falls on the purchaser, although the retailer may collect the tax as an agent. (City of South San Francisco, 232 Cal.App.4th at p. 713.) “California imposes a use tax on tangible personal property that is (1) purchased from a retailer, (2) stored, used, or consumed in this state, and (3) for which no California sales tax was paid at the time of purchase.” (Ibid.; RTC, §§ 6201, 6202, 6401; Regs., § 1620, subd. (b); Searles Valley Minerals Operations, Inc. v. State Bd. of Equalization (2008) 160 Cal.App.4th 514, 520.) The law presumes that tangible personal property brought into California is purchased for storage, use or other consumption here. (City of South San Francisco, 232 Cal.App.4th at p. 713; § 6246.) Before the Bradley-Burns Act, cities and counties passed their own sales and use taxes, which contributed to a lack of uniformity and increased costs of administration. The Bradley-Burns Act was the Legislature’s way of relieving cities from operating sales and use tax collection systems of their own; it allows cities to enact their own sales and use taxes at a rate of 1 percent or less of the gross receipts of the retailer from the sale of tangible personal property sold by that person at retail within the city, and in return, the Board of Equalization administers the taxes. However, the Legislature precluded the Board of Equalization from administering these local sales or use taxes if they are not “identical” to the state sales and use tax law (City of South San Francisco, 232 Cal.App.4th at p. 726) or impose a greater tax than what Bradley-Burns allows. (Cultiva La Salud v. State of California (2023) 89 Cal.App.5th 868, 879–880). In short, in a case where the state sales tax is applicable, the state-administered local sales tax is also applicable; when the state sales tax is inapplicable, the local sales tax is inapplicable. (Ibid.) As explained by the court of appeals in Rivera and the Supreme Court in A.B.C.

Distributing Co. v. City and County of San Francisco (1975) 15 Cal.3d 566, 575, “although the state has preempted the field of sales and use taxation, nothing prevents a municipality from levying a ‘substantially different’ tax otherwise authorized by law.” (See Rev. & Tax Code, § 7203.5 [“Nothing in this section shall be construed as prohibiting the levy or collection by a city, county, redevelopment agency, or city and county of any other substantially different tax authorized by the Constitution of 1325
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California or by statute or by the charter of any chartered city.”].)7 A license tax upon a business measured by gross receipts and utility users charges are examples of “substantially different” taxes. (Rivera, 6 Cal.3d at p. 139.) The proposed tax on the business activity of engaging in refining would be of the same ilk, “substantially different” from a “use tax.” There are few cases discussing this aspect of Bradley-Burns. (See Cultiva La Salud v. State of California (2023) 89 Cal.App.5th 868; A.B.C. Distributing Co., supra; Rivera, supra; Century Plaza Hotel Co. v. City of Los Angeles (1970) 7 Cal.App.3d 616, 625.)
In the Measure T litigation, Chevron argued that Measure T constituted an improper “use” tax because “use” is broadly defined as including “the exercise of any right or power over tangible personal property incident to the ownership of that property, and also includes the possession of, or the exercise of any right or power over, tangible personal property by a lessee under a lease, except that it does not include the sale of that property in the regular course of business.” (RTC, § 6009.) Chevron claimed that Regulation 1525 exempts the “use” from the “use tax” when the tangible personal property is purchased “for the purpose of incorporating it into the manufactured article to be sold, as, for example, any raw material becoming an ingredient or component part of the manufactured article.” In other words, Chevron’s argument is that a tax on raw materials that are “used” during the refining process constitutes a “use” tax within the meaning of the statute, but is made non-taxable by an exemption.

This argument improperly conflates a tax on the “use” of a product (like crude oil in the refining process) with a “use tax” when they are analytically different:

A use tax is a ‘tax imposed on the use of certain goods that are bought outside the taxing authority’s jurisdiction. Use taxes are designed to discourage the purchase of products that are not subject to the sales tax.’ An excise is a ‘tax imposed on the manufacture, sale, or use of goods (such as a cigarette tax), or on an occupation or activity (such as a license tax or an attorney occupation fee).’ 7 RTC section 37101 specifically allows legislative bodies to license “for revenue and regulation, and fix the license tax upon, every kind of lawful business transacted in the city, including shows, exhibitions, and games. It may provide for collection of the license tax by suit or otherwise.” Subdivision (b) makes clear that such taxes, when they are levied “upon a business operating both within and outside the legislative body’s taxing jurisdiction,” must be structured “so that the measure of tax fairly reflects that proportion of the taxed activity actually carried on within the taxing jurisdiction.”
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(Dondlinger, 31 Cal.App.5th at p. 1002, quoting Black’s Law Dictionary.) That is, the proposed tax is not a “use tax” but rather an “excise tax” on the activity of refining within Richmond.

Courts have sustained the imposition of simultaneous ad valorem property taxes and excise taxes, as well as duplicative excise taxes. (See, e.g., City of Berkeley v. Cukierman (1993) 14 Cal.App.4th 1331, 1340–1341 [“The case law holds only that there be no double taxation of property. The mere fact that the state (or local authority) imposes one excise tax upon one activity does not prevent the state or local authority from imposing another excise tax upon the same privilege for the same period.”]; Fox etc. Corp. v. City of Bakersfield (1950) 36 Cal.2d 136; Cukierman, 14 Cal.App.4th at p. 1341 [“To put it another way, the constitutional prohibition against double taxation applies only to ad valorem property taxes, and property tax and excise tax can be imposed simultaneously.”].)
Altogether, placing a tax on the privilege of conducting oil refining in the City of Richmond, while superficially similar to Measure T in some respects, would differ importantly because it excludes any ‘tandem’ measure, and includes proper apportionment protocols. Moreover, as the tax would be based on the volume of feedstock refined in Richmond, will function legally as an excise tax and not a property or use tax.

CONCLUSION
We appreciate the City Council’s careful consideration of CBE and APEN’s proposal to establish a new source of revenue for the City of Richmond by taxing the privilege of conducting refining within City borders. We are happy to provide more detail as to any aspect of this memorandum upon request, including copies of any of the cases, court filings, or statutes cited. 1327

June 18, 2024
City Manager’s Office and
Finance Department
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
LaShonda White, Deputy City Manager, Community
Services
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Jerry Gurule, Accounting Manager
Subject: Fiscal Year (FY) 2024-25 Proposed Operating Budget and FY 2024-25 to 2028-29 Proposed Five-Year Capital
Improvement Plan (CIP) Budget
FINANCIAL IMPACT: There is no financial impact associated with adopting the FY 2024-25 Proposed Operating Budget and FY 2024-29
Proposed Five-Year Capital Improvement Plan Budget.

The General Fund budget is structurally balanced with
revenue and expenditures equal to $248,935,372. FY
2024-25 Total Proposed Non-General Revenue budget is
$254,008,291 and Proposed Expenditure budget is
$332,078,233.

PREVIOUS COUNCIL
ACTION:

May 7, 2024, May 28, 2024, June 4, 2024

STATEMENT OF THE
ISSUE:

City staff is submitting the Fiscal Year (FY) 2024-25
Proposed Operating Budget and the FY 2024-25 to FY
2028-29 Proposed Five-Year Capital Improvement Plan
Budget to City Council for adoption.

AGENDA
REPORT
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June 18, 2024
RECOMMENDED ACTION: ADOPT resolutions approving: (1) Fiscal Year (FY) 2024- 25 Proposed Operating Budget, and (2) FY 2024-25 to
FY 2028-29 Proposed Five-Year Capital Improvement
Plan Budget – City Manager’s Office/Finance Department
(Shasa Curl 510-620-6512/ Nickie Mastay 510-620-6609/
Andrea Miller 510-620-6790/Mubeen Qader 510-412-
2077).

DISCUSSION:

FY 2024-25 PROPOSED BUDGET
On May 7, 2024, per Richmond Municipal Code Section 2.61.010, the City Manager submitted the first draft of the Fiscal Year (FY) 2024-25 Operating budget and the draft FY 2024-25 to FY 2028-29 Five-Year Capital Improvement Plan (CIP) budget. The General Fund operating budget was balanced with the revenues and expenditures at $252,509,054. However, this draft budget did not include all departmental requests.

On May 28, 2024, the City staff provided an FY 2024-25 budget presentation and compiled a budget checklist of questions received from the City Council with proposed modifications to the draft budget before final approval.

On June 4, 2024, City staff responded to the checklist developed based on the City Council feedback from May 28, 2024. The City Council also provided directions to staff on the FY 2024-25 Proposed Budget. This agenda item presents a balanced General Fund budget for FY 2024-25 and requests that the City Council adopt resolutions approving (1) FY 2024-25 Proposed Operating Budget and (2) FY 2024-25 to FY 2028- 29 Proposed Five-Year Capital Improvement Plan Budget.

GENERAL FUND
The proposed FY 2024-25 General Fund budget in this agenda item is balanced with revenue and expenditures equal to $248,935,372. The proposed General Fund budget presented for adoption is lower than the draft General Fund Budget presented on May 7, 2024, and May 28, 2024, by $3,573,682. Table 1 below shows the General Fund revenue and expenditure budget presented at the various City Council meetings. Since the June 4, 2024, City Council meeting, City staff have identified revenue and expenditure adjustments with a net decrease of $3,573,682. This revises the total General Fund revenue and expenditure budget balanced at $248,935,372. 1329

June 18, 2024
Table 1: FY 2024-25 Proposed General Fund Revenue and Expenditure Budget General Fund
FY 2023-24
Revised Budget
(Through March)
FY 2024-25
Proposed Budget
(May 7 & 28,
2024)
FY 2024-25
Proposed
Budget
(June 4, 2024)
Adjust.

FY 2024-25
Proposed
Budget
(June 18, 2024)
TOTAL
REVENUES (234,380,287) (252,509,054) (254,560,261) 5,624,889 (248,935,372) TOTAL
EXPENDITURES 246,295,113 252,509,054 252,509,054 (3,573,682) 248,935,372

NET(-SURPLUS)
+ DEFICIT 11,914,826 - (2,051,207) 2,051,207 -
At the June 4, 2024, City Council meeting, City staff presented a General Fund Revenue increase of $2,051,207. This increase stems primarily from the Successor Agency surplus payment from Contra Costa County (County) being significantly higher than originally budgeted to the updated Sales Tax forecast as provided by Avenu Insights & Analytics, the City’s Sales Tax consultant.

For the adopted budget, there will need to be a decrease in the General Fund Revenue of Documentary Transfer Tax of $5,624,889. This decrease is based on the average monthly amount collected by the County for Documentary Transfer Tax since the passage of Measure H in 2018. It excludes the sale of properties with a sale price of $10 million or above. The City has an average of five sales per year of $10 million or greater over the last five years, ranging from $10 million to nearly $150 million.

However, zero transactions were over $10 million in the first 11 months of FY 2023-24.

There was one sale in June that exceeded the threshold of $10 million. Budget estimates excluding large volatile sales provide a more likely base to budget for Documentary Transfer Tax.

The revenue adjustments mentioned above resulted in a net decrease of $3,573,682 in General Fund revenues (Table 2).

Table 2: Proposed General Fund Revenue Adjustments
Revenue FY 2024-25
Proposed Budget Assumptions
Revenue Budget
(May 28, 2024) (252,509,054)
Increase
(June 4, 2024) (2,051,207) Revised estimates based on additional information, including a major increase in Property Tax/Successor Agency Surplus.

Decrease
(June 18, 2024) 5,624,889 The documentary transfer tax estimate is based on the projected revenue for the current year.

Revenue Budget
(June 18, 2024) (248,935,372)
Net Decrease in
Revenue 3,573,682
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June 18, 2024
Adjustments to the FY 2024-25 General Fund expenditures are currently advised to balance the budget. The adjustments include a decrease of $3,878,682 and an increase of $305,000, resulting in a net decrease of $3,573,682 in expenditures (Table 5).

Budget adjustments are anticipated to be required as Measure U payments are received, and various capital improvement project bids are finalized. Suppose the City Council would prefer other modifications to the budget that lead to a net decrease of $3.6 million. In that case, it is appropriate for the City Council to provide direction to adopt a balanced budget on June 18, 2024. Failure to adopt the budget will lead to further delays with CIP projects and slow down positive movement, given the large volume of work that is required to be completed before the City Council recess. These initial reductions in the budget are not expected to have an impact on current service levels.

General Fund Reductions
Since FY 2020-21, the City Council has provided policy direction that has led to a 22 percent decrease in unhoused Richmond residents and has approved $15,250,000 in Federal, State, and City funds for unhoused residents in Richmond.

The City has expended and encumbered $11,551,946 of these funds as of FY 2023-24.

The City contribution of $4,900,000 is needed to support the proposed acquisition of the Motel 6 for permanent supportive housing and is comprised of the Affordable Housing In-Lieu Fund of $2,419,200, which is anticipated to be spent from years 1 – 5 (FY 2024- 25 through FY 2028-29), and the remaining City contribution is anticipated to be expended in years 5 – 7 (FY 2029-30 and FY 2030-31) (Table 3 and Table 4). The HomeKey grant award announcement is expected in the coming weeks, and City staff are optimistic that Richmond is well positioned. Nonetheless, suppose the funds are not awarded to the City. In that case, staff will return to the City Council with an updated plan for City Council consideration in the fall of 2024 with the aim of continuing to increase services and housing options for unhoused Richmond residents.

Table 3: Support for Unhoused Residents in Richmond
Sources FY 2021-22 FY 2022-23 FY 2023-24
Total
Expenditure/
Encumbered
ARPA
($50,000)(Federal) $0 $50,000 $0 $50,000
ERF Round 1- Grant
($4.8Million)(State) $6,755 $2,547,093 $2,245,669 $4,799,517 Reimagining Public Safety
($1.8Million/Year)(General Fund) $714,390 $732,154 $954,591 $2,401,135 ERF Round 2 Grant
($8.6Million)(State) $0 $0 $4,301,294 $4,301,294
Total $721,145 $3,329,247 $7,501,554 $11,551,946
Grant Requests Pending TOTAL 28,749,406
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June 18, 2024
Homekey Grant
($14Million)(State) 14,512,660
Homekey (City Contribution)
(Affordable Housing In-lieu funds) 4,900,000
ERF Round 3 Grant 9,336,746
Table 4: Support for Unhoused Residents in Richmond (Continued) Sources FY 2024-25 FY 2025-26 FY 2026-27
ARPA
($50,000)(Federal) $0 $0 $0
ERF Round 1- Grant
($4.8Million)(State) $0 $0 $0
Reimagining Public Safety
($1.8Million/Year)(General Fund) $800,000 $1,800,000 $1,800,000 ERF Round 2 Grant
($8.6Million)(State) $4,301,293 $2,150,647 $2,150,646
Total $5,101,293 $3,950,647 $3,950,646
Grant Requests Pending
Homekey Grant
($14Million)(State) $12,500,000 $500,000 $500,000
Homekey (City Contribution)
(Affordable Housing In-lieu funds) $2,343,460
ERF Round 3 Grant
A total reduction of $3,878,682 in the General Fund expenditure budget is provided below and includes the following:

Reimagining Public Safety, Reduction of $1,000,000 - In June 2021, the City Council approved the recommendations of the Reimagining Public Safety Community Task Force, which included an original allocation of $6.38 million for these four (4) interventions: YouthWORKS, Office of Neighborhood Safety, Community Crises Response Program (CCRP), and Unhoused Intervention. The FY 2024-25 proposed program budget as of June 4, 2024, was $8,794,605.

Since the City has secured several federal and state grants to support the services for the unhoused and continues to explore additional funding, the proposed reduction is not expected to significantly reduce Citywide positive momentum, especially since the Community Crisis Response Program is taking shape and beginning to provide direct services to residents that include the unhoused.
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June 18, 2024
Table 5: Reimagining Public Safety Budget
Reimagining Public Safety Intervention FY 2024-25
(June 4, 2024)
FY 2024-25
(June 18, 2024)
Unhoused Intervention 1,800,000 800,000
Community Crises Response 2,905,751 2,905,751
Office of Neighborhood Safety 2,108,854 2,108,854
Youth Works 1,980,000 1,980,000
Total 8,794,605 7,794,605
 Equipment Replacement, Reduction of $1,300,000 – As of June 4, 2024, the FY 2024-25 total proposed budget was $7,185,000 for Equipment Replacement. The budget included a $387,755 carry forward from FY 2023-24 and $6,797,245 proposed for FY 2024-25 to purchase additional replacement equipment. City staff recommends delaying certain purchases to later in FY 2024-25 and/or FY 2025-26 pending additional revenues from Measure U or other sources. The new proposed budget for Equipment Replacement on June 18, 2024, is $5,497,245.

This will also allow Public Works to develop an updated Equipment and Vehicle Replacement Policy that includes electric vehicles.

Table 6:Deferred Equipment List to FY 2025-26
Program Vehicle Quantity Cost
Fire Gladiator Pumper 1 1,300,000
Total 1,300,000
 Paving, Reduction of $650,000 – As of June 4, 2024, the Proposed Budget included an additional General Fund appropriation for $4,732,000, and the Proposed Budget on June 18, 2024, includes a total General Fund allocation of $4,082,000. The total Paving budget for FY 2024-25, including Gas Tax, General Capital, and the General Fund is $7,682,467.
 Outside Counsel Budget Reduction of $928,682—The City has recently filled key attorney positions, and the staff attorneys are expected to handle a significant amount of legal analysis and litigation work, resulting in lower costs for outside counsel.

General Fund Additions
The following additions to the General Fund budget are based on City Council priorities and guidance: a total of $305,000 for additional City Council requests as the City Council deems appropriate.
 Mobile Vendor Program: $100,000
 Council Chamber Art Installations: $5,000
 Sea Level Rise Consultant Costs: $200,000
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June 18, 2024
Table 7: Proposed General Fund Expenditure Adjustments
Reductions Amount
Re-Imagining Public Safety Budget (1,000,000)
Equipment Replacement (1,300,000)
Paving (650,000)
Outside Counsel Budget (928,682)
Total Reductions (3,878,682)
Additions Amount
Mobile Vendor Program 100,000
City Council Chamber Art Installations 5,000
Sea Level Rise Consultant 200,000
Total Additions 305,000
Net Decrease in Expenditures (3,573,682)
General Fund Summary
As a recap, the Tables below reflect proposed FY 2024-25 General Fund Revenue and Expenditures budget with changes from May 28, June 4, and June 18.

Table 8: General Fund Revenue Budget by Character

GENERAL FUND
FY2023-24

REVISED
BUDGET
(March 2024)
FY2024-25

PROPOSED
BUDGET
(May 7 & 28, 2024)
FY2024-25

PROPOSED
BUDGET
(June 4,2024)
FY2024-25

PROPOSED
BUDGET
(June 18,2024)
PROPERTY TAXES (52,181,354) (55,866,944) (57,597,487) (57,597,487) SALES & USE TAX (57,897,341) (61,366,250) (60,456,550) (60,456,550) UTILITY USERS TAX (57,938,011) (62,092,359) (62,092,359) (62,092,359) OTHER TAXES (24,144,377) (27,799,882) (29,030,246) (23,405,397) LICENSES, PERMITS & FEES (15,779,175) (16,252,810) (16,252,810) (16,252,770) FINES & FORFEITURES (151,438) (176,438) (176,438) (176,438) USE OF MONEY & PROPRTY (1,796,421) (1,796,421) (1,796,421) (1,796,421) CHARGES FOR SERVICES (2,536,992) (3,255,703) (3,255,703) (3,255,703) OTHER REVENUE (238,480) (142,830) (142,830) (142,830)
RENTAL INCOME (777,028) (777,478) (777,478) (777,478)
INTERGOV STATE TAXES (125,000) (125,000) (125,000) (125,000) INTERGOV STATE GRANT (183,911) (130,000) (130,000) (130,000) INTERGOV OTHER GRANT (280,000) (250,000) (250,000) (250,000) PROC FR SLE PROP - (15,000) (15,000) (15,000)
LOAN/BOND PROCEEDS (40,400) (40,400) (40,400) (40,400)
OPER XFERS IN (20,310,358) (22,421,539) (22,421,539) (22,421,539) TOTAL GENERAL FUND (234,380,287) (252,509,054) (254,560,261) (248,935,372) 1334

June 18, 2024
Figure 1: General Fund Revenue Proposed Budget FY 2024-25 Table 9: General Fund Expenditures Budget by Character

GENERAL FUND
FY2023-24

REVISED
BUDGET
(March 2024)
FY2024-25

PROPOSED
BUDGET
(May 7 & 28,2024)
FY2024-25

PROPOSED
BUDGET
(June 4,2024)
FY2024-25

PROPOSED
BUDGET
(June 18,2024)
SALARIES AND WAGES 85,847,575 95,236,672 95,236,672 95,236,672 PYRLL/FRINGE BENEFIT 65,538,296 70,666,261 70,666,261 70,666,262 PROF & ADMIN 21,688,714 21,301,798 21,301,798 20,378,340 OTHER OPERATING 8,963,844 8,762,886 8,762,886 8,862,886 UTILITIES 5,690,630 5,594,204 5,594,204 5,594,204
EQPT & CONTRACT SVCS 5,946,835 4,315,665 4,315,665 4,315,665 PROVISN FOR INS LOSS 34,200 35,500 35,500 35,500
COST POOL 21,593,734 24,700,598 24,700,598 23,400,598
ASSET/CAPITAL OUTLAY 2,817,457 2,502,328 2,502,328 2,502,328 DEBT SVC EXPENDITURE 841,353 850,905 850,905 850,905
A87 COST PLAN REIMBS (3,514,373) (3,514,373) (3,514,373) (3,514,373) GRANT EXPENDITURES 98,723 49,013 49,013 49,013
OPER XFERS OUT 30,748,126 22,007,597 22,007,597 20,557,373 TOTAL EXPENDITURES 246,295,113 252,509,054 252,509,054 248,935,372 Figure 2: General Fund Expenditures Proposed Budget FY 2024-25 Position Control Changes
The Proposed FY 2024-25 Operating Budget includes 771 Full-Time Equivalent (FTE) positions, a net of one additional FTE. This represents an increase of 38 FTEs, a 5 percent increase from FY 2022-23, and an increase of 64 FTE, a 9 percent increase from FY 2021-22. The reallocation of existing positions is required to provide additional

PROPERTY TAXES,
57,597,487 , 23%

SALES & USE TAX,
60,456,550 , 24%
UTILITY USERS TAX, 62,092,359 , 25%
OTHER TAXES, 23,405,398 , 9%

LICENSES, PERMITS & FEES,
16,252,770 , 7%
OTHER, 1,657,146 , 1%

USE OF MONEY & PROPRTY,
1,796,421 , 1%
CHARGES FOR SERVICES, 3,255,703 , 1% OPERATING TRANSFERS IN, 22,421,539 , 9%

SALARIES AND WAGES ,
95,236,672 , 38%
BENEFITS, 70,666,262 ,
PROFESSIONAL & ADMIN, 28%
20,378,340 , 8%

OTHER OPERATING ,
8,862,886 , 4%
OTHER, 9,833,242 ,
4%

COST POOL,
23,400,598 , 10%

TRANSFERS OUT,
20,557,373 , 8%
1335

June 18, 2024
resources in the Department of Public Works and to try to provide needed modifications for other departments. The position reallocations will result in a net of four (4) FTE increases for the Public Works Department. The City Manager’s Office, the Police Department, and the Finance department are collectively losing 3 FTEs. The department's totals are reflected in Table 10 below. Table 11 reflects the complete list of reallocations in each department.

Table 10: Position Reallocations by Department
Department -Original FTE Department -After Reallocation FTE CITY MANAGER'S OFFICE 1 COMMUNITY SERVICES - ADMIN 1
COMMUNITY SERVICES - RECREATION 2 COMMUNITY SERVICES - ONS 1 COMMUNITY DEVELOPMENT 1 COMMUNITY DEVELOPMENT 1
FINANCE 3 FINANCE 2
HUMAN RESOURCES 1 HUMAN RESOURCES 1
POLICE 2 POLICE 1
PORT 1 PORT 1
PUBLIC WORKS - PARKS 1 PUBLIC WORKS - PARKS 3
PUBLIC WORKS - ENGINEERING 1 PUBLIC WORKS - ENGINEERING 1 PUBLIC WORKS - TRAFFIC 1 PUBLIC WORKS - TRAFFIC 1
PUBLIC WORKS - TBD 2
TOTAL 14 15
Table 11: Proposed Position Control Reallocations by Department & Union

ORIGINATING

DEPARTMENT

REALLOCATED

POSITION UNION NEW DEPARTMENT NEW POSITION UNION
CITY

MANAGER'S
OFFICE

MANAGEMENT

ANALYST MID MGMT PUBLIC WORKS GROUNDSKEEPER SEIU

PUBLIC WORKS GROUNDSKEEPER SEIU

FINANCE ACCOUNTANT I/II SEIU PUBLIC WORKS MAINTENANCE

LEADWORKER SEIU

COMMUNITY

SERVICES -

RECREATION

ASSOCIATE ADMIN

ANALYST MID MGMT

COMMUNITY

SERVICES -
ADMIN

ASSOCIATE

MANAGEMENT

ANALYST

MID MGMT

FINANCE PROJECT MANAGER EXECUTIVE FINANCE ACCOUNTING/FINANCE

MANAGER MID MGMT

FINANCE BUDGET ANALYST

I/II MID MGMT FINANCE ACCOUNTING/FINANCE MANAGER MID MGMT HUMAN

RESOURCES

HUMAN RESOURCES

MANAGER MID MGMT HUMAN RESOURCES

HUMAN RESOURCES

ANALYST - PRINCIPAL MID MGMT

POLICE COMMUNITY SVCS

OFFICER SEIU PUBLIC WORKS PW TBD TBD

POLICE COMMUNITY SVCS

OFFICER SEIU POLICE ADMINISTRATIVE ASSISTANT SEIU
PORT

PORT MARKETING

AND OPERATIONS

MANAGER

MID MGMT PORT CIP MANAGER MID MGMT

PUBLIC WORKS -
ADMIN

ADMINSTRATIVE

ASSISTANT SEIU PUBLIC WORKS PW TBD TBD

PUBLIC WORKS -

ADMIN OFFICE ASSISTANT SEIU PUBLIC WORKS -ENGINEERING

PERMIT TECHNICIAN

I/II SEIU

COMMUNITY

DEVELOPMENT

PERMIT TECHNICIAN

I/II SEIU COMMUNITY DEVELOPMENT

SENIOR PERMIT

TECHNICIAN SEIU

PUBLIC WORKS -

ENGINEERING

ASSOCIATE CIVIL

ENGINEER MID MGMT PUBLIC WORKS -ENGINEERING

JR/ASSISTANT CIVIL

ENGINEER MID MGMT

COMMUNITY

SERVICES -

RECREATION

ADMINSTRATIVE

ASSISTANT (TEMP) SEIU COMMUNITY SERVICES - ONS

NEIGHBORHOOD

CHANGE AGENT
(TEMP)
SEIU
1336

June 18, 2024

UNION REALLOCATED NEW
LOCAL 21
EXECUTIVE 1 0
LOCAL 21 MIDMANAGEMENT 6 6
SEIU 1021

GENERAL

EMPLOYEES
7 7
UNKNOWN/TBD 0 2
TOTAL 14 15

NON-GENERAL FUNDS
Non-General Fund Revenue and Expenditures
The total proposed revenue budget for the Non-General Fund is $254,008,291, and the proposed expenditure budget is $332,078,233. Attachment 4—Fiscal Year 2024-25 Comprehensive Budget by Fund provides a detailed budget for each fund.

Table 12: Non-General Fund Proposed Revenue Budget FY 2024-25 FY 2023-24

REVISED
BUDGET
(March 2024)
FY 2024-25

PROPOSED
BUGET
(May 28,2024)
FY 2024-25

PROPOSED
BUDGET
(June 4,2024)
FY 2024-25

PROPOSED
BUDGET
(June 18,2024)
TOTAL CAPITAL PROJECT FUNDS (73,958,041) (60,412,237) (64,512,237) (63,990,718) TOTAL DEBT SERVICE FUNDS (19,551,216) (16,161,500) (16,161,500) (16,161,500) TOTAL ENTERPRISE FUNDS (41,493,141) (39,394,502) (39,394,502) (39,394,502) TOTAL HOUSING AUTHORITY FUNDS (5,549,921) (4,676,806) (4,676,806) (4,676,806) TOTAL HOUSING FUNDS (1,911,772) (2,702,120) (2,702,120) (2,702,120) TOTAL INTERNAL SERVICES FUNDS (30,919,340) (38,150,187) (38,150,187) (36,850,188) TOTAL OTHER OPERATING FUNDS (35,280,981) (28,324,024) (28,324,024) (27,524,024) TOTAL SPECIAL REVENUE FUNDS (96,056,935) (62,629,383) (62,708,434) (62,708,434) GRAND TOTAL – NON-GENERAL FUND
REVENUES (304,721,347) (252,450,759) (256,629,810) (254,008,291) Table 13: Non-General Fund Proposed Expenditure Budget FY 2024-25 FY 2023-24

REVISED
BUDGET
(March 2024)
FY 2024-25

PROPOSED
BUGET
(May 28,2024)
FY 2024-25

PROPOSED
BUDGET
(June 4,2024)
FY 2024-25

PROPOSED
BUDGET
(June 18,2024)
TOTAL CAPITAL PROJECT FUNDS 111,302,273 64,404,091 68,504,091 69,582,572 TOTAL DEBT SERVICE FUNDS 19,174,878 16,261,836 16,261,836 16,261,836 TOTAL ENTERPRISE FUNDS 100,777,213 73,915,051 73,915,051 73,915,051 TOTAL HOUSING AUTHORITY FUNDS 5,763,509 4,685,856 4,685,856 4,685,856 TOTAL HOUSING FUNDS 6,249,305 5,821,825 5,821,825 5,821,825 TOTAL INTERNAL SERVICES FUNDS 42,753,440 38,736,426 44,036,426 42,736,426 TOTAL OTHER OPERATING FUNDS 40,221,190 30,827,007 30,827,007 30,507,007 TOTAL SPECIAL REVENUE FUNDS 128,898,804 84,812,620 84,968,418 88,567,660 GRAND TOTAL – NON-GENERAL FUND
EXPENDITURES 455,140,613 319,464,711 329,020,509 332,078,233 Traffic Calming
Based on the City Council's direction, $1,600,000 is provided for the City’s Traffic Calming Program in Measure J funds. FY 2024-25 Proposed Budget totals $3,218,752.

This includes a carryforward amount of $1,618,752 from FY 2023-24. 1337

June 18, 2024
FY 2023-24 Unspent Funds
City staff provides Quarterly Budget Review updates to the City Council, with the last such update provided to the City Council on May 28, 2024, for FY 2023-24 Quarter 3 (Q3). The Q3 Budget Review covered the FY 2023-24 periods from July 1, 2023, through March 31, 2024.

City staff cannot accurately anticipate the estimated unspent funds for FY 2023-24 at this juncture. The fiscal year is open, and many revenue and expenditure transactions are still in progress and not posted to the City’s financial system.

The City is experiencing a significant reduction in Documentary Transfer Tax revenue actuals versus budget for the first 11 months of the year, which will impact potential unspent funds remaining at the end of the fiscal year. In addition, there is a 60-day period after the end of the fiscal year to process invoices for goods received and services provided on or before June 30, 2024 against the FY 2023-24 budget.

City staff will better assess anticipated unspent funds after the close of the fiscal year with the FY 2023-24 Q4 Budget Review in October 2024. Table 14 below lists the line items that the City Council may want to prioritize when the unspent funds estimates are available by the end of this calendar year. Furthermore, as additional grant funding and project bids are received, this list should be updated based on available funds, grants, ARPA, City Council priority, and City Council policy direction.

Table 14: FY 2023-24 Proposed Unspent Funds Expenditures for Council Consideration No. Description Amount
Total Available Unspent Funds (TBD)
1 Required Contribution to Maintain Reserve at 21% $5.7 Million 2 Other Post Employment Benefits – Trust 115 Contribution 10% 3 CalPERS Pension Trust 115 Contribution 10%
4 Booker T. Anderson Community Center Exterior Improvements TBD 5 Main Library Renovation Project Additional Funding $4.1 Million 6 Boorman Park $1.9 Million
7 Fire Apparatus $1.3 Million
8 Facilities Needs Assessment $500 Thousand
9 Point Molate Bay Trail Erosion $3.0 Million
10 Citywide Historic Preservation TBD
11 Dog Park Assessment TBD
12 Mobile Vendor Program $100 Thousand
13 Point Richmond Street Safety Improvements TBD
14 Carlson Ave Traffic Calming TBD
15 Canal Boulevard Gates $65 Thousand

NEXT STEPS
City staff recommends ADOPTING resolutions approving (1) Fiscal Year (FY) 2024-25 Proposed Operating Budget, and (2) FY 2024-25 to FY 2028-29 Proposed Five-Year Capital Improvement Plan Budget.
1338

June 18, 2024
DOCUMENTS ATTACHED:

Attachment 1 – Resolution Adopting the Fiscal Year 2024-25 Operating Budget Attachment 2 – Resolution Approving Capital Improvement Plan for FY 2024-25 to FY 2028-29
Attachment 3 – June 4, 2024, Draft Budget Staff Report
Attachment 4 – Fiscal Year 2024-25 Comprehensive Budget by Fund Attachment 5 – Fiscal Year 2024-25 Proposed Position Listing Attachment 6 – General Fund Revenue and Expenditure Assumptions Attachment 7 – General Fund Revenue and Expenditure Summary Attachment 8 – Capital Improvement Plan FY 2024-25 to FY 2028-29 Attachment 9 – Transfer In-Out Schedule FY 2024-25
1339
RESOLUTION NO. _____

RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, ADOPTING THE FISCAL YEAR 2024-2025 OPERATING BUDGET
WHEREAS, pursuant to Section 1(b) of Article IV of the Richmond City Charter the City Manager is required to prepare an annual budget for the review and approval by the City Council; and
WHEREAS, all appropriations for the prior fiscal years shall lapse at the end of Fiscal Year 2023-2024 and any remaining amounts shall be credited against their respective fund balances except for any encumbered amounts for specific obligations outstanding at the end of said Fiscal Year; and
WHEREAS, all grants received per the grants listing shall be appropriated and spent according to grant guidelines; and
WHEREAS, the City Council has reviewed the proposed budget for Fiscal Year 2024-2025 at public meetings on May 7, May 28, and June 4, 2024; and NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby adopts the 2024-2025 Operating Budget for the following funds:

Fund Budget
General Fund 248,935,372
Capital Project Funds 69,582,572
Debt Service Funds 16,261,836
Enterprise Funds 73,915,051
Housing Authority Funds 4,685,856
Housing Funds 5,821,825
Internal Service Funds 42,736,426
Other Operations Funds 30,507,007
Special Revenue Funds 88,567,660
Total All Funds 581,013,605
BE IT FURTHER RESOLVED, that the budget for the Capital Improvement Funds will be adopted as a separate document.
1340
*****
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond, California, at a regular meeting thereof held June ___, 2024, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

____________________________________

CLERK OF THE CITY OF

RICHMOND
(SEAL)
Approved:
_________________________________
Mayor
Approved as to Form:
_________________________________
City Attorney
1341
RESOLUTION NO. ____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, APPROVING THE FISCAL YEARS 2024-25 THROUGH 2028-29 CAPITAL IMPROVEMENT PLAN AND ADOPTING THE FISCAL YEAR 2024-25 BUDGET FOR

THE CAPITAL IMPROVEMENT FUNDS
___________________________________________
WHEREAS, a balanced budget for the City of Richmond has been prepared for Fiscal Year 2024-25 and presented to the City Council pursuant to Article IV, Section 1 (b) of the Charter of the City of Richmond; and
WHEREAS, a Capital Improvement Plan for Fiscal Years 2024-25 through 2028-29 has been prepared; and
WHEREAS, the budget for the Capital Improvement Funds for the 2024-25 Fiscal Year has been prepared; and
WHEREAS, all appropriations for the prior fiscal year shall lapse at the end of Fiscal Year 2023-24 and any remaining amounts shall be credited against their respective fund balances, except for:
a. Any unexpected but encumbered amounts or specific orders outstanding at the end of the Fiscal Year; and
b. Any appropriations for incomplete capital projects including the Municipal Sewer District at the end of Fiscal Year 2023-24; and
WHEREAS, for these exceptions, such carry-overs may be made without any further City Council action; and
WHEREAS, the City Council needs to approve the following expenditures for the Fiscal Year 2024-25 Capital Improvement budget:
a. Project expenditures in the amount of $123,534,009 for the Fiscal Year FY2024-25 of the Capital Improvement Projects Program.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Richmond hereby (1) approves the Capital Improvement Plan for Fiscal Years 2024-25 through 2028-29; (2) adopts the budget for the Capital Improvement Funds for the 2024-25 Fiscal Year; and (3) authorizes the City Manager to place appropriations and estimated revenues in effect on July 1, 2024 and as shown in the FY2024-25 Capital Improvement Budget.
----------------------------------------------
1342
I hereby certify that the foregoing resolution of the Council of the City of Richmond was duly passed and adopted at the regular meeting thereof held June ____, 2024 by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

_____________________________________
Clerk of the City of Richmond
(SEAL)
Approved:
_______________________________________
Mayor
Approved as to form:
________________________________________
City Attorney
1343