Attachment 1 - Corrective Action Plan
Recommendation
Number Description Responsible for
Implementation
Time
Frame Corrective Action Plan May 2023 Update June 2023 Supplemental Update November 2023 Update May 2024 Update June 2024 Supplemental Upd ate November 2024 Update 1 To help ensure that Richmond maintains appropriate reserves for times of fiscal uncertainty, city staff should, by June 2023, review Richmond's reserve policy to determine whether a higher reserve target is appropriate. As part of the review, staff should consider all the factors the Government Finance Officers' Association (GFOA) recommends for setting a reserve target. Once that review is complete, city staff should present proposals to the city council for modifying the city's policy.
City Manager Office
&
Finance
6/30/2023
Schedule City Council review/consideration of updated General Fund reserve policy in March 2023 for implementation in the Fisacl Year (FY) 2023-2024 Budget, for adoption by June 2023.
Staff presented GFOA best practices to
the City Council on May 2, 2023, with the
first draft budget for FY23-24
Staff presented GFOA best practices to
the City Council on May 2, 2023, with the
first draft budget for FY23-24. Based on
the GFOA best practices, on June 27,
2023, the City Council adopted a revised
Cash Reserve Policy (see Attached,
Cash Reserve Policy)
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update. Annual financial policy review
and update provided to City Council in
May 2024.
Completed per June 2023 Supplemental
Update. Annual financial policy review and
update provided to City Council in May 2024.
Completed per June 2023 Supplemental
Update.
2 To decrease the risk that Richmond will deplete its reserves, city staff should, by June 2023, present to the city council a list of proposed budget actions that would help ensure balanced budgets and eliminate projected deficits.
City Manager Office
&
Finance
6/30/2023
Present contingent, long-term budget balancing options with the FY 2023-2024 proposed budget, by June 2023.
Staff presented a balanced first draft of
the FY23-24 budget on May 2, 2023, to
adopt a balanced budget by June 30,
2023
The City Council adopted a balanced
budget for Fiscal Year 2023-2024 on
June 20, 2023 (see Attached Fiscal Year
2023-2024 Budget Staff Report)
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update. Proposed FY2024-25 budget
projections provided to City Council in
May 2024.
Completed per June 2023 Supplemental
Update. Proposed FY2024-25 budget
projections provided to City Council in May
2024.
Completed per June 2023 Supplemental
Update. City Council adopted FY2024-25
budget on June 24, 2024.
3 Richmond should include multiple scenarios in its financial projections, including scenarios with potential additional risks, such as economic downturns or recessions, and how the city would continue to fund its operations under those circumstances.
City Manager Office
&
Finance
On Going
Present expanded 5-year financial projection with the FY 2023-2024 Proposed Budget, by June 2023.
Staff will present a draft five-year
forecast (with scenarios) to the City
Council in June 2023, for review and
discussion.
The City staff presented a multiple
scenarios forecast to the City Council on
June 6, 2023. (see Attached staff report
that the City Council received the Five
Year Forecast)
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update. Proposed FY2024-25 budget
projections provided to City Council in
May 2024.
Completed per June 2023 Supplemental
Update. Proposed FY2024-25 budget
projections provided to City Council in May
2024.
Completed per June 2023 and June 2024
Supplemental Updates.
4 To ensure that Richmond is able to fund its retirement-related costs, city staff should, by June 2023, propose to the city council a specific policy regarding funding of its pension trust fund for this purpose. Staff should report to the city council on estimated long-term savings from increasing its direct payments to Cal PERS compared to investing the same amounts in its pension trust fund. Staff members should use this information to inform their recommendations related to funding targets for the pension trust fund and should consider recommending that the council increase the city's payments directly to CalPERS.
City Manager Office
&
Finance
6/30/2023
Schedule City Council review/consideration of updated Pension funding policy in March 2023 for implementation in the FY 2023-2024 Budget, for adoption by June 2023.
The City has contracted with GovInvest
to keep an on-going monitoring of the
retirement related costs and impact of
funding initiatives. First presentation to
the City Council is expected on May 16,
2023
GovInvest presented a Pension Funding
PowerPoint presentation at the May 16,
2023, City Council meeting and NHA
Advisors presented a PowerPoint
presentation on CalPERS Unfunded
Accrued Liability Cost Management
Strategies at the June 6, 2023, City
Council meeting. Based on these
presentations the City Council adopted a
new Pension Funding Policy (see
Attached Pension Funding Policy)
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update. Annual financial policy review
and update provided to City Council in
May 2024.
Completed per June 2023 Supplemental
Update. Annual financial policy review and
update provided to City Council in May 2024.
Completed per June 2023 Supplemental
Update.
5 To improve the city's ability to pay other post-employment benefits, Richmond should, by June 2023 and annually thereafter, implement a policy identifying funds, such as surpluses or one-time revenues that should be contributed to the OPEB trust fund. Staff should conduct an annual analysis to determine whether any funds available to the city are applicable under the city's policy and should present a proposal to the city council to apply those funds to the trust fund.
City Manager Office
&
Finance
6/30/2023
Schedule City Council review/consideration of updated OPEB funding policy in March 2023 for implementation in the FY 2023-2024 Budget, for adoption by June 2023.
City staff will be presenting options to the
City Council regarding OPEB-Prefunding
on June 2023.
On June 27, 2023, City Council adopted
a revised OPEB Funding policy (see
Attached OPEB funding Policy)
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update. Annual financial policy review
and update provided to City Council in
May 2024.
Completed per June 2023 Supplemental
Update. Annual financial policy review and
update provided to City Council in May 2024.
Completed per June 2023 Supplemental
Update.
6 To mitigate the costs of increasing salaries, the city should perform a workforce analysis by June 2024. Based on the results of the analysis, the city council should consider eliminating vacant positions that it deems no longer necessary. Additionally, the city should assess its need for each vacant position before it seeks to fill the positions and eliminate any positions that it does not need.
City Manager Office
&
Human Resources
6/30/2024
The City is issuing a Request for Proposal for a professional firm to conduct a formal workforce analysis. While the City evaluates the professional firms that replied to the Request for Proposal, the City will do an annual analysis of funded positions proposed by departments during the annual budget process, starting with the FY 2023-24 budget, by June 2023.
Due to time constraints of City Council
meeting on May 2, 2023, the results of
the workforce analysis RFP is tentatively
scheduled to go to the City Council on
May 16, 2023.
Staff originally brought the results of the
RFP to perform a workforce analysis to
the City Council on May 2, 2023. Due to
the large volume of agenda items, the
RFP was awarded to Raftelis to perform
the Workforce Analysis and the contract
was approved by the City Council on May
23, 2023.
Raftelis has started the workforce
analysis, in the first phase of the
analysis, several department and division
heads were interviewed to assess the
current state of workload and staffing
levels. The study will be concluded
before June 30, 2024.
Raftalis provided an update which was
provided to Council on consent on
February 20, 2024 (see attached staff
reort and Powerpoint).
Raftelis completed the Workforce Analysis.
An initial update was provided to City Council
on February 20, 2024, the final report was
presented to City Council on June 25, 2024,
(see Attachment 2, June 25, 2024 agenda
item R.1)
Completed per June 2024 update.
7 To ensure compliance with federal requirements, Richmond should dedicate the resources necessary to provide records needed for an independent auditor to complete all outstanding single audits of the housing authority within the next fiscal year. To comply with existing legal obligations, Richmond should make available sufficient resources to enable the Housing authority to resolve all past due requirements of the recovery agreement and to meet the remaining deadlines in a timely manner by January 2024.
City Manager Office
&
Richmond Housing
Authority
1/1/2024
Identify and assign resources to complete Housing Authority Single Audit backlog by June 30, 2023. Identify and assign resources to complete Housing Authority Recovery Agreement actions by January 2024.
The City has made the following
resources available to RHA: Senior
Accountant, Outside Consultant,
Accountant I, Interim Director Housing
Authority.
Please see recommendation number 8
supplemental update
Completed per June 2023 Supplemental
Update.
Resources have been provided per May
2023 Update. Audit completion is in
progress.
Resources have been provided per May 2023
Update. Audit completion is in progress.
Resources have been provided per May 2023
Update. Audit completion is in progress.
8 To define Richmond's responsibility related to the housing authority, Richmond should immediately enter into a written agreement with the housing authority defining each entity's financial responsibilities and draft plans to resolve past tax liabilities and prevent unnecessary new liabilities.
City Manager Office
&
Richmond Housing
Authority
2/28/2023
Draft and Schedule City Council consideration of Housing Authority Administration Agreement by February 2023.
The City and RHA are in process of
preparing a draft written agreement
regarding tax liabilities and prevention of
unnecessary new liabilities.
On June 27, 2023, City Council approved
a written agreement between the City
and the Richmond Housing Authority
(see Attached, Richmond Housing
Authority & City Administrative Services
Agreement)
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update.
9 To ensure that Richmond is receiving the best value when entering into contracts, city staff should immediately begin documenting that they are following the contracting requirements in the city's municipal code and contracting policies for all contracts. City Manager Office &
Finance
6/30/2023
Draft and implement Contract Compliance Documentation processes by June 2023.
City staff conducted an assessment of
training materials to ensure compliance
with contracting requirements in the
City's Municipal Code and contracting
policies. Staff prepared training
programs to help employees develop the
knowledge and skills to ensure
compliance. [See Attached pdf Contract
Cl i T i i ]
See May 2023 update Completed per May 2023 Update. Completed per May 2023 Update.
Annual Policy review and updates go to
Council May 2024.
Completed per May 2023 Update. Additional
updates to contract checklist have been made
and are attached (see Attachment 3, June 4,
2024 agenda item O.4.c).
Completed per May 2023, and June 2024
updates.
10 To reduce potential errors and omissions by city staff members when contracting for goods and services, by January 2023 Richmond should require its finance department to create a comprehensive checklist of required documentation for contract files that other departments must follow when conducting procurements.
City Manager Office
&
Finance
6/30/2023
Draft and implement Contract Compliance Checklist by June 2023. City staff compiled comprehensive checklists that are being utilized in
reviewing and approving all contracts to
ensure that proper procurement
procedures and adherence to applicable
City policies is being followed. [See
Attached pdf Contract Compliance
See May 2023 update Completed per May 2023 Update. Completed per May 2023 Update.
Additional updates to checklist have
been made and will be included with
annual policy review and updates to
Council May 2024.
Completed per May 2023 Update. Additional
updates to contract checklist have been made
and are attached. (see Attachment 3, June
4, 2024 agenda item O.4.c).
Completed per May 2023 and June 2024
Updates.
11 To ensure that city fees appropriately cover the cost of providing services, by June 2023, Richmond should determine a cost-effective frequency for updating its fee schedule to reflect all allowable costs, including adjusting fees for inflation as appropriate. Richmond should then revise its municipal code as necessary.
City Manager Office
&
Finance
6/30/2023
Review and update the Fee Schedule policy for City Council consideration and update of Municipal Code as needed by June 2023.
On May 2, 2023 the City Council adopted
an ordinance (first reading) to update the
Master Fee Schedule annually (rather
than quarterly).
On June 6, 2023, the City Council
adopted an ordinance revising the
Master Fee Schedule to annually (rather
than quarterly). (see Attached revised
ordinance)
Completed per June 2023 Supplemental
Update.
Completed per June 2023 Supplemental
Update. Public Hearing for Master Fee
Schedule Updates in May 2024.
Completed per June 2023 Supplemental
Update. For FY 2024-25 Master Fee
Schedule the first Public Hearing was held on
May 28, 2024 and the second reading
adopting the ordinance for the Master Fee
Schedule was held on June 4, 2024.
Completed per June 2023 and June 24
Supplemental Updates.
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