December 3, 2024
Richmond Housing Authority
Economic Development
DATE: December 3, 2024
TO: Chair Martinez and Members of the Richmond Housing
Authority Board of Commissioners
FROM:
Nannette Beacham, Director of Economic Development
Antoinette Terrell, RHA Executive Director
Gabino Arredondo, Project Manager
Subject:
Nystrom Village Request for Qualifications (RFQ)
Presentations, Potential Selection and Exclusive Rights to Negotiate Agreement (ERNA)
FINANCIAL IMPACT: RHA proposes to enter into a ground lease for the development of the land with a limited partnership and
provide a loan of available ARPA funding for
predevelopment costs as determined appropriate.
Disposition of the Phase 1 site will transition the property from HUD public housing to private ownership and
operation. Completion of the 100 replacement PHA units
and relocation of remaining PHA tenants on the site will reduce RHA operating costs. RHA will receive a share of residual receipts/surplus cash flow from the Phase 1
development as payment on the ARPA loan and/or
ground lease. Future disposition of the remaining blocks will reduce RHA land holding costs and provide the
potential for residual receipts ground lease payments
and/or land sales revenues.
PREVIOUS COUNCIL
ACTION:
June 20, 2023
AGENDA
REPORT
181
December 3, 2024
STATEMENT OF THE
ISSUE:
RHA began a new procurement process to identify an
affordable housing development partner to reposition and redevelop the Nystrom Village public housing project site.
Past attempts to redevelop Nystrom Village have failed, however with the recent positive track record of RHA
finding partners for the Hacienda and Nevin Plaza sites, RHA released an RFQ and received multiple qualified
proposals. The RHA Board of Commissioners is
requesting presentations from the top two ranked
proposals and has the option of selecting a preferred
developer to begin ERNA negotiations.
RECOMMENDED ACTION:
RECEIVE a presentation from the top two respondents
for the redevelopment of Nystrom Village Request for
Qualifications (RFQ); PROVIDE DIRECTION to staff,
which may include the identification of a preferred
developer; and if a preferred developer is identified, and ADOPT a resolution authorizing the Executive Director of the Richmond Housing Authority (RHA) to negotiate and
execute an Exclusive Right to Negotiate Agreement
(ERNA) with the selected affordable housing developer
with a term not to exceed ninety (90) days with an option for one mutually approved extension of not more than
thirty days – Richmond Housing Authority (Antoinette
Terrell 510-620-6784/Nannette Beacham 621-1306).
DISCUSSION:
The Richmond Housing Authority (RHA) began a new procurement process to identify an affordable housing development partner to reposition and redevelop the Nystrom Village public housing project site. Past attempts to redevelop Nystrom Village have failed, however with the recent positive track record of RHA finding partners for the Hacienda and Nevin Plaza sites the RHA released an RFQ and received multiple qualified proposals. The RHA Board of Commissioners is requesting presentations from the top two proposals and has the option of selecting a preferred developer to begin ERNA negotiations.
Nystrom Village Property
The site is a four-block housing development situated between Florida and Virgina Ave (North to South) and South 13 St. and South 16 St. (East to West) in Richmond, CA 94804. The four-block area encompasses 9 acres and currently houses 51 wood frame duplexes built in 1941. The site has a mix of one hundred (100) 0-, 1- and 2-bedroom units.
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December 3, 2024
RFQ for the Redevelopment of Nystrom Village
On May 15, 2024, RHA released an RFQ for the Redevelopment of Nystrom Village.
The RHA was seeking one or more qualified affordable housing developers or development teams to partner on the redevelopment of Nystrom Village.
Phase 1 (anticipated to be developed on one block, as identified in the aerial photo below) must include at least 100 multifamily rental units to replace the existing public housing units. Pursuant to US Department of Housing and Urban Development (HUD) regulations, these 100 units will be restricted for occupancy at affordable rents by households whose income does not exceed 80% of the area median income.
The Phase 1 development team will work with RHA to convert Nystrom Village into a local Project Based Vouchers (PBV) contract using the HUD Section 18 Disposition process. The team will also leverage Low-Income Housing Tax Credit (LIHTC) and other state and local development subsidies to develop Phase 1.
It is anticipated that a second Block (Phase 2) will be developed as multifamily rental housing that may include a mix of income and affordability levels, potentially including market-rate units, while the last two blocks (Phase 3 and 4) will be developed as for- sale ownership housing, with at least 25% of the units affordable to households with incomes not greater than 120% Area Median Income (AMI), depending on market 183
December 3, 2024
conditions and available subsidized financing opportunities. Development teams will also have to incorporate the renovation and repurpose of approximately 3 to 5 duplexes due to the site's historical significance to the World War II Homefront History of Richmond.
Developers or development teams were able to propose developing one or more blocks. The blocks designated for multifamily rental development will be ground leased to the respective developer entities; the blocks designated for ownership housing will be sold to the developer. Preference will be given to developers proposing to develop Phase 1 responsibly and expediently with affordable housing development experience, and developers proposing to develop both rental housing phases and who can complete the renovation and repurposing of the 3 to 5 required historical units.
Development Goals:
1. Replace the 100 Public Housing Units in Phase 1
2. Increase the number of housing units on the site
3. Preserve the long-term affordability of Nystrom Village
4. Ensure current residents can return
5. Ensure long-term financial viability
6. Reposition RHA’s role in the development
Proposals
Ninety-three (93) prospective bidders downloaded the opportunity, and 3 responsive proposals were submitted at the deadline. The RHA received three proposals from qualified developers: Eden Housing, Inc. and Community Housing Development Corporation; Gorman & Company and Novin Development; and National Community Renaissance. Proposals were scored by three City Staff Members and two Nystrom United Revitalization Effort (NURVE) Community members according to the point system established in the RFQ pg. 25. Below are the scores of the reviewers.
Reviewers 1 2 3 4 5 Total Score Average Score
Eden/CHDC 90 93 96 92 83 454 90.8 1
Gorman/Novin 83 88 86 80 89 426 85.2 2
National Community Ren. 82 92 63 88 79 404 80.8 3
Presentations
The Board of Commissioners has requested, at this point, to have presentations from the two top respondents based on the scoring of the review committee to inform the decision process to select a preferred candidate to begin negotiations. The Eden Housing, Inc. & Community Housing Development Corporation and Gorman & Company & Novin Development teams were notified that they will have an opportunity to present a 10-to-15-minute presentation on their Nystrom Proposals. The RHA Board 184
December 3, 2024
of Commissioners may select a preferred developer or continue to seek additional information and return to decide at a future meeting.
Summary of Key Points
Eden/CHDC Gorman/Novin
Experience Eden started in 1968 (55 yrs),
163 Properties owned or
managed, 12,600 homes (units).
CHDC (33 yrs)
Gorman 40-year experience,
13,000 units, 168 projects
Richmond
Properties
Eden - Miraflores Senior
Apartments. CHDC - Legacy
Court, Hacienda Heights, Barett
Terrace
Phase 1 110 homes (Units) The two-
building development is
organized with podium parking, 3
to 4-story
Block A: 109 Unit 100%
Affordable Replacement
Housing Units (30%-60% AMI)
Relocation
Phase 1
Occupy as many homes as
possible prior to applying to HUD
for RAD conversion; Relocate the
least amount of households by
vacating Block D as the primary
project site.
Temporarily relocating Block A
residents to other
accommodations to allow
redevelopment of the Phase 1
replacement units. Upon
completion of construction, all
residents will be offered an
opportunity to move into the
newly completed 109-unit PHA
replacement housing
development
Additional
Phases
Eden and CHDC propose having
the Right of First Refusal (and/or
First Option as applicable) for
each phase of development.
Block B: 106 Unit 100% Large
Family Affordable Housing
(30%-80% AMI); Block C: 146
Unit 100% Senior / Workforce
Affordable Housing (30% -
80% AMI) Block D: 42 For-
Sale Market Rate Townhomes
DOCUMENTS ATTACHED:
Attachment 1 - Resolution
Attachment 2 - RFQ Nystrom Village
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Reso. No. ____
RESOLUTION NO. ____
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING
AUTHORITY OF THE CITY OF RICHMOND, CALIFORNIA, DESIGNATING [insert name] AS THE PREFERRED DEVELOPMENT TEAM FOR THE
REDEVELOPMENT AND OPERATION OF NYSTROM VILLAGE, AND
AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AN
EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT WITH A TERM NOT TO EXCEED NINETY (90) DAYS, WITH AN OPTION FOR ONE MUTUALLY APPROVED EXTENSION OF NOT MORE THAN THIRTY (30) DAYS
WHEREAS, Richmond Housing Authority (RHA) owns and manages the Nystrom Village development which consists of 100 units of rental public housing located on the nine- acre, four-block area bounded by Florida and Virginia Avenues and South 13th and South 16th Streets; and
WHEREAS, RHA entered into a Public Housing Authority Recovery and Sustainability (PHARS) agreement with the U.S. Department of Housing and Urban Development (HUD) that addresses, among other things, the repositioning and redevelopment of Nystrom Village; and
WHEREAS, RHA remains obligated and committed to performing all HUD-required functions, and providing quality service to local program participants; and
WHEREAS, on December 4, 2018, the RHA Board of Commissioners directed staff to move forward with repositioning RHA' s public housing developments and other real estate holdings; and
WHEREAS, the 2019 PHARS Agreement and Action Plan with HUD (Tasks 4.1 - 4.4 ), requires the repositioning of Nystrom Village as an implementing action to reposition the RHA Public Housing portfolio; and
WHEREAS, on May 15, 2024, RHA issued a Request for Qualifications for the redevelopment and operation of Nystrom Village; and
WHEREAS, on August 21, 2024, RHA received proposals from three (3) qualified development teams; and
WHEREAS, an interdepartmental review panel composed of staff members and two community residents convened to review and evaluate the proposals; and
WHEREAS, on December 2, 2024, the RHA Board of Commissioners heard presentations from the two top development teams, designated [insert name] as the preferred development team, and authorized the RHA executive director to negotiate an Exclusive Right to Negotiate Agreement (ERNA); and
WHEREAS, entering into an ERNA facilitates the repositioning of Nystrom Village by making clear the terms for the redevelopment of the property.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY OF RICHMOND, COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, [insert name] is hereby selected as the preferred development team, and the executive director of the RHA is hereby authorized to negotiate and execute an ERNA for the redevelopment and operation of Nystrom Village with [insert name] .
BE IT FURTHER RESOLVED that the Executive Director is hereby authorized to negotiate and execute the ERNA, negotiate documents pertaining to the redevelopment of the property, including a lease disposition and development agreement, a ground lease, a loan agreement, and related documents, and take all actions necessary to implement this resolution.
186
Reso. No. ____
*****************
The foregoing resolution was passed and adopted by the Commissioners of the Housing Authority of the City of Richmond at a special meeting thereof held on December 3, 2024, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Chairperson
[SEAL]
Attest:
Secretary
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 at a Special Housing Authority Meeting held on December 3, 2024.
____________________________________
CLERK OF THE HOUSING AUTHORITY
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RICHMOND HOUSING AUTHORITY (RHA)
REQUEST FOR QUALIFICATIONS (RFQ)
REDEVELOPMENT OF NYSTROM VILLAGE
Date Issued: Wednesday, May 15, 2024
Pre-Proposal Hybrid Meeting (Zoom)
Date: Monday, June 17, 2024, 11:00 AM
https://ci-richmond-ca-us.zoom.us/j/93006379516?pwd=SzZqckhvMm1Za0Z4a1d1NzVxRDR1dz09 Passcode: 283411
Deadline for Questions: Monday, July 10, 2024, 3:00 PM
Date Due: Wednesday, August 7, 2024, 3:00 PM
Download and Submit Proposals to: City of Richmond BidsOnline system, Vendor Registration/Bid Opportunities
https://vendors.planetbids.com/portal/14590/portal-home
Project Website:
https://www.ci.richmond.ca.us/4650/Nystrom-Village
RHA Contact for all communications:
Gabino Arredondo, [email protected], (510) 620-6606
&
Economic Development Department, City of Richmond Contact:
Nannette Beacham, [email protected], (510) 621-1306
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Table of Contents
1. EXECUTIVE SUMMARY -------------------------------------------------------------- 3
2. ABOUT RICHMOND HOUSING AUTHORITY ------------------------------------ 7
3. SITE AND PARCEL SUMMARY ---------------------------------------------------- 10
4. NYSTROM VILLAGE MASTER PLAN & Y-PLAN EXHIBIT ---------------------- 11
5. DEVELOPMENT GOALS ------------------------------------------------------------ 13
6. ROLES AND RESPONSIBILITIES -------------------------------------------------- 14
7. SUBMISSION REQUIREMENTS --------------------------------------------------- 16
8. SELECTION PROCESS -------------------------------------------------------------- 22
9. THE CITY NON-LIABILITY & RELATED MATTERS ------------------------------ 25
10. PROPOSAL SUBMISSION PROCESS ------------------------------------------- 26
11. APPENDIX --------------------------------------------------------------------------- 27
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1. EXECUTIVE SUMMARY
OPPORTUNITY
The Richmond Housing Authority (RHA) is seeking one or more qualified affordable housing developers or development teams to partner on the redevelopment of Nystrom Village.
Phase 1 (anticipated to be developed on Block B, as identified in the aerial photo below) must include at least 100 multifamily rental units to replace the existing public housing units. Pursuant to US Department of Housing and Urban Development (HUD) regulations, these 100 units will be restricted for occupancy at affordable rents by households whose income does not exceed 80% of the area median income.
The Phase 1 development team will work with RHA to convert Nystrom Village to a local Project Based Vouchers (PBV) contract using the HUD Section 18 Disposition process. The team will also leverage Low-Income Housing Tax Credit (LIHTC) and other state and local development subsidies to develop Phase 1.
It is anticipated that Block A (Phase 2) will be developed as multifamily rental housing that may include a mix of income and affordability levels, potentially including market-rate units, while Blocks C and D (Phase 3 and 4) will be developed as for-sale ownership housing, with at least 25% of the units affordable to households with incomes not greater than 120% Area Median Income (AMI). Development teams will also have to incorporate the renovation and repurposing of approximately 3 to 5 duplexes due to the site's historical significance to the World War II Homefront History of Richmond.
Developers or development teams may propose to develop one or more blocks. The blocks designated for multifamily rental development will be ground leased to the respective developer entities; the blocks designated for ownership housing will be sold to the developer. Preference will be given to developers proposing to develop Phase 1 in a responsible and expedient manner with affordable housing development experience, and developers proposing to develop both rental housing phases (Blocks A and B) and who can complete the renovation and repurposing of the 3 to 5 required historical units.
Richmond has a great deal of exciting developments that will continue its historic role as a social, cultural, and civic destination. The preservation and increase of affordable housing on this site is critical to RHA’s mission and City of Richmond City Council Goals and Priorities. The ideal redevelopment will incorporate thoughtful design, replace the existing public housing affordable housing stock, serve a broad spectrum of low-income to high- income individuals, and maximize the number of units that can best serve the community and remain consistent with the neighborhood’s vision.
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PROPERTY
The site is a four-block housing development situated between Florida and Virgina Ave (North to South) and South 13 St. and South 16 St. (East to West) in Richmond, CA 94804.
The four-block area encompasses 9 acres and currently houses 51 wood frame duplexes built in 1941. The site has a mix of one hundred (100) 0-, 1- and 2-bedroom units.
The site is pedestrian friendly with multiple nearby amenities. Walkscore.com lists the site as “Very Walkable”, with a Walk Score of 83, and a “Good Transit” rating, being within 1 mile of the Richmond Multi- Modal Transit Station with access to Bay Area Rapid Transit (BART), Amtrak, and AC Transit and 1.5 miles from the Richmond Ferry Terminal.
DEVELOPMENT GOALS
RHA has established six primary development goals for Nystrom Village:
1. Replace the 100 Public Housing Units in Phase 1
2. Increase the number of housing units on the site
3. Preserve the long-term affordability of Nystrom Village
4. Ensure current residents can return
5. Ensure long-term financial viability
6. Reposition RHA’s role in the development
PHASING AND RHA/CITY SUPPORT
Phase 1 of the Nystrom Village Redevelopment must include 100 multifamily rental units affordable to households whose income does not exceed 80% of area median income. All 191
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eligible current residents of the site will have the right to move into the newly constructed units when the first phase is completed. Approximately 65 households currently reside on the site, and it is anticipated that approximately 65 project-based vouchers will be available for the first phase.
It is anticipated that the households currently residing on Block B will be relocated to other portions of the site during construction of Phase 1. Relocation costs will be included as a development cost; however, RHA does not have funding to assist with relocation.
With the exception of 3 to 5 existing historic structures that will be required to be rehabilitated for use as community services, rental offices, manager’s unit, community centers, museum or similar uses, all existing structures on the site will be demolished. It is anticipated that demolition on Blocks A, C and D will occur after completion of the Phase 1 development and all remaining Nystrom residents are relocated to the new Phase 1 units.
Demolition costs will be included as a development cost, although RHA may have limited funding available to assist with demolition.
The phasing and timing of development on the remaining three blocks will depend on completion of the Phase 1 redevelopment, market conditions and the availability of leveraged financing. At this time, no project-based vouchers are available beyond Phase 1.
RHA and the City of Richmond have begun, and the environmental review required under CEQA and NEPA for the entire Nystrom site. RHA has hired a consultant to lead the process and all deliverables will be made available for use by the selected development team(s).
In addition, up to approximately $1.7 million in American Rescue Plan Act (ARPA) funds may be made available as a loan to finance Phase 1 predevelopment costs.
DEVELOPMENT TEAMS
Developers may propose to develop one or more of the four blocks at Nystrom Village.
Preference will be given to developers or development teams that propose to develop both the Phase 1 PHA replacement units and the Block B mixed income rental housing and who will complete the renovation and repurposing of the historic structures, For Phase 1 development on Block B, qualified development teams must have substantial affordable housing development and repositioning experience and must include a developer/operator and property manager (in-house or contract) as well as an experienced urban architect.
For both rental housing blocks, threshold requirements include maximum California Tax Credit Allocation Committee (CTCAC) general partner and property manager experience with points for 9% tax credits.
Development teams for owner housing on Blocks C and D must have substantial ownership housing development experience, including experience with affordable 192
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homeownership.
The developer(s) selected through this RFQ (individually, Developer) may enter an Exclusive Right to Negotiate (ERN) with RHA. The ERN will generally define roles, responsibilities, contingencies, and commitments of the Developer and RHA. Upon successful negotiation, RHA and the Developer may enter into a Disposition and Development Agreement (DDA), or other agreement outlining in detail the terms and conditions of the redevelopment of one or more blocks of the Property.
PRE-PROPOSAL MEETING
A pre-proposal meeting over Zoom will be held Monday, June 17, 2024, 11:00 AM https://ci-richmond-ca-us.zoom.us/j/93006379516?pwd=SzZqckhvMm1Za0Z4a1d1NzVxRDR1dz09 Passcode: 283411
Or join by phone:
US: +1 669 444 9171 or +1 669 900 6833 or +1 253 205 0468 or +1 253 215 8782, Webinar ID: 930 0637 9516, Passcode: 283411
Those interested in submitting a proposal in response to the RFQ should, at a minimum, address the Submittal Requirements outlined in Section 7 of this RFQ. Responses will need to be uploaded in the City of Richmond BidsOnline system.
SUBMISSION DEADLINE
Tuesday, August 7, 2024, at 3:00 PM (PDT), proposal materials uploaded to the City of Richmond, BidsOnline system.
QUESTIONS
Questions regarding this RFQ must be submitted through the City of Richmond BidsOnline system by Monday, July 10, 2024, 3:00 PM. Answers to questions will also be posted to the BidsOnline system and all registered developments teams who have selected the Nystrom Village as a bid opportunity will be notified.
It is the proposer’s responsibility to periodically check the Richmond BidsOnline website to view answers to questions received. If RHA finds it necessary to issue an addendum, prospective applicants will receive e-mail notification of the addendum.
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2. ABOUT RICHMOND HOUSING AUTHORITY
DESCRIPTION
The Richmond Housing Authority (RHA) is a public entity chartered by the City of Richmond in 1941 to provide decent, safe, and sanitary housing for low-income individuals and families. Today, RHA’s portfolio includes owning and managing 100 units of public housing at Nystrom Village and associates with 683 affordable housing units with RHA entities/partnerships for a total inventory of 783 units of affordable housing. The operating budget for the agency in fiscal year 2023-2024 is $5.5 million and the agency has 5 budgeted full-time employees. The RHA Board of Commissioners is comprised of the City Council of the City of Richmond with two seats for resident commissioners.
ASSET REPOSITIONING GOALS
RHA has established five primary development goals for Nystrom Village:
1. Convert Nystrom Village to a local PBV contract (Phase 1) using the Section 18 Disposition process.
2. Identify one or more development partners to assist with the redevelopment and operations of a repositioned Nystrom Village
3. Leverage Low-Income Housing Tax Credit (LIHTC) and other state or local development subsidies to address capital needs.
4. RHA will ground lease the rental housing sites to the development limited partnership. Sites for ownership housing will be sold to the develop(s). Except for the ARPA funds references above, the City and RHA will provide no additional gap funding for the project.
5. Preserve and rehabilitate 3-5 existing buildings.
GUIDING PRINCIPALS
To guide the repositioning of RHA assets, four principles were developed. Each addresses issues at the core of a successful repositioning of a public housing authority portfolio.
1. Continue to provide housing for extremely low to very low-income households and families - RHA provides housing for extremely low-income people. Elderly and disabled and school-age children are the two largest demographic categories in RHA housing. RHA provides a critical housing resource to these populations.
2. Improve the physical condition and financial performance of the project - The current physical condition and financial performance of the RHA portfolio are a threat to its ongoing existence. Buildings need to be recapitalized and operations shifted off of the public housing platform in order to preserve these assets.
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3. Leverage skills and capacity of development partners - RHA has a track record of working with development partners to deliver quality affordable housing. RHA should continue this pattern and work with existing affordable housing developers and operators who have internal capacity and who have values that are aligned with RHA. The general partner and property manager for new rental housing must score maximum general partner experience points from the California Tax Credit Housing Allocation Committee (CTCHAC). This is a threshold requirement.
4. Ensure accountability for residents and the public - Repositioning the RHA portfolio should be done without decreasing access to affordable housing for extremely low- income families. Decisions should be clear and transparent. The City / RHA should maintain rights and authority over the repositioned assets to ensure ongoing public benefit.
TRACK RECORD – RHA & City of Richmond
RHA’s and City of Richmond repositioning activities have produced many accomplishments for RHA and the City’s residents. Recent accomplishments include the Hacienda Heights and Nevin Plaza Projects:
Hacienda Heights – 525 Marina Way, Richmond CA 94801
In May 2021, the RHA entered into a 99-year ground lease with Richmond Hacienda LP, a limited partnership controlled by Mercy Housing (the “Partnership”) to redevelop the 150-unit Hacienda property, which had been sitting vacant for several years. In connection with the ground lease, the Housing Authority sold the existing improvements to the Partnership and took back a note which is payable from residual cash flow of the project. The ground lease and related documents obligated the Partnership to rehabilitate the improvements and operate the project as an affordable senior housing development with 148 restricted affordable units and 2 manager’s units. The project is assisted with project-based vouchers provided by the Housing Authority of the County of Contra Costa (HACCC) and a residual receipts CDBG loan provided by the County.
Permanent financing sources also include tax-exempt bonds, 4% Low Income Housing Tax Credit equity, funds from the State Department of Housing and Community Development (HCD) Multifamily Housing Program, and $7 million in grant financing.
Rehabilitation of the improvements was completed in the Fall of 2023, and the project is now fully occupied.
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Nevin Plaza (Phase I) 2400 Nevin Ave, Richmond CA, 94804 In March 2023, the RHA entered into a 99-year ground lease with Nevin Plaza I, LP, a limited partnership controlled by EAH Inc. (the “Partnership”). In connection with the ground lease, the Housing Authority sold the existing improvements to the Partnership and took back a note payable from residual cash flow of the project. The ground lease and related documents obligate the Partnership to rehabilitate the improvements and operate the project as an affordable senior housing development with 140 restricted affordable units and 2 manager’s units. Previous residents, including non-senior disabled households, will be able to return to the building when rehabilitation is complete. The project is assisted with project-based vouchers provided by HACCC and a $3.5 million residual receipts loan provided by the City of Richmond funded with $1.75 million in ARPA funds and $1.75 million in City Affordable Housing Impact Fee funds. Additional permanent financing sources include a $401,000 CDBG loan provided by the County, tax-exempt bonds and 4% Low Income Housing Tax Credit equity. Rehabilitation of the improvements is underway with completion projected for early 2025.
The RHA is currently in negotiations with EAH Housing regarding the proposed ground lease of land adjacent to the Nevin Plaza I site (Phase II) for development of approximately 70 affordable senior apartments and a parking garage that will also serve residents of Nevin Plaza Phase I.
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3. SITE AND PARCEL SUMMARY
PROPERTY DESCRIPTION
ADDRESS
Nystrom Village, 222 Marina Way, Richmond, CA 94801
Florida and Virgina Ave (North to South) and South 13 St. and South 16 St. (East to West) (APNs: 544-111-001, 544-112-001, 544-113-001, and 544-132-001)
SITE SIZE
392,475 SF or 9 acres
ZONING
RM-1 Medium Density Multi-Family Residential.
This district is intended for single and multi-family housing types such as one to three-story garden apartments, historic bungalows and cottages on small lots, townhouses, and stacked flats. A maximum density of 26 dwelling units per acre is permitted, and minimum density of 10 dwelling units per acre is required. In addition to residential uses, this district allows for a limited number of public and semi-public uses such as day care centers, public safety facilities, and residential care facilities that are appropriate in a medium density multi-family residential environment. Neighborhood mixed-use development is allowed at neighborhood nodes identified by the Planning Commission. Small lot single unit and bungalow court development is allowed in the RM-1 District where it would be compatible with the surrounding neighborhood.
GENERAL PLAN
Medium-Density Mixed Use (Residential Emphasis)
Includes mixed-use development with commercial uses encouraged at street-level along corridors. However, residential-only development is allowed and may include condominiums, townhouses, or apartments. Commercial-only development is not allowed.
RM1
RL2
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Projects with commercial components must also include a residential component. New development is required to have a pedestrian-oriented building design with minimal setbacks and parking located to the sides or rear of buildings.
Density: 15 to 50 du/ac
Intensity: Up to 0.5 FAR
Height: Up to 45 feet
FLOOD MAP
Flood Map Area No. 0613C0236G, Area of Minimal Flood Hazard, 0.2% Annual Chance Flood Hazard
TRANSPORTATION SERVICES
AC Transit Bus Line 76, 40, 40X, 681, 668 and 675. Richmond BART Access, Richmond Ferry Service, and Richmond Wellness Trail (including bike lane, and landscape improvements)
4. NYSTROM VILLAGE MASTER PLAN & Y-PLAN EXHIBIT
MASTER PLAN – NYSTROM VILLAGE
The City of Richmond and Opticos Design Inc. worked together to create a Master Plan Exhibit (“Exhibit”) for Nystrom Village (Appendix I). The two teams jointly conducted multiple stakeholders and community meetings to solicit community desires for the site and to receive feedback on the proposed Master Plan. Concurrently, Y-Plan, a University of California at Berkeley partner that implements innovative strategies for empowering youth through education and project civic-based learning, conducted community outreach with Nystrom residents to further understand community desires for the site (Appendix II).
Some Y-Plan recommendations based on community outreach include a desire for additional community space, career center for residents, childcare programs, dedicated youth spaces, and rent to own possibilities.
Feedback from these two outreach processes were incorporated in the creation of the Exhibit. This Exhibit is meant to be an illustration of a financially feasible development that can support over 400 units. The plan included in this RFQ represents a high-density example that is financially feasible and maximizes the unit count for the site. The Exhibit is for example purposes only and does not represent the City of Richmond’s preferred development type.
DESIRED DEVELOPMENT
1. As the highest priority, in Phase 1 replace 100 existing public housing units affordable to households whose income does not exceed 80% of AMI and ensure 198
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that current residents have the first right to return.
2. Increase the number of housing units on site.
3. Mix of unit sizes, rental and owner housing types and household income levels.
4. Concentrate the greatest intensity along Marina Way South.
5. Must retain 3-5 original units in a semi-circle configuration (Historic Preservation).
6. A development that interfaces with surrounding neighborhood.
7. Inclusion of community resources and services such as: daycare center, community clinic, museum space, community spaces, retail, career center and teen/young adult center.
8. Provide usable and diverse common spaces, outdoor areas, gathering spaces and community gardens.
9. Maintain four block section of Richmond Wellness Trail – along Marina Way South.
10. No driveways along West Side of Marina Way South - Due to the City of Richmond’s investment in a cycle track as part of the Richmond Wellness Trail.
Section through blocks B, C, D looking north
Section through block A looking north
Block A Block B Block C Block D Total
Acreage 2.38 Acres 2.38 Acres 2.17 Acres 2.17 Acres 9.1 Acres Number of Dwelling Units 100 Units 109 Units 84 Units 84 Units 403 Units Apartment Units 100 109 98 84 391
Townhouse Units 0 0 12 0 12
Units per acre 42 units/acre 46 units/acre 51 units/acre 39 units/acre
Legend
Building
Footprints
Way South
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Common Open space 38,800 sf 11,250 sf 10,500 sf 16,800 sf 77,350 sf Public Open Space 16,300 sf 11,250 sf 10,500 sf 16,800 sf 54,840 sf Semi-private open space 22,500 sf 0 0 0 22,500 sf
Common open space per
unit
388 sf/unit 103 sf/unit 95 sf/unit 200 sf/unit 192 sf/unit Ground-floor community or
retail space
6,000 sf 2,125 sf 1,950 sf 600 sf 10,625 sf
Off-street Parking Spaces 104 spaces 115 spaces 110 spaces 90 spaces 419 spaces Number of Surface lot
parking spaces
0 40 36 22 98
Number of tuck-under
parking spaces
0 75 74 68 217
Number of structured parking
spaces
104 0 0 0 104
Ration of parking spaces to
dwelling units
1.0 space/nit 1.1 spaces/unit 1.0 space/unit 1.1 spaces/unit 1.0 space/unit
5. DEVELOPMENT GOALS
RHA has established four (4) primary development goals for NYSTROM:
1. ADHERENCE TO DESIRED DEVELOPMENT OUTCOMES
• Increase the number of units and increase unit mix on Nystrom Village site. • Increase access to community resources such as inclusion of community space. daycare center, career center, community clinic, museum, and youth spaces. • Improve communication between developer and residents. • Improve safety and security of residents through careful site planning and use of the latest technology.
2. PRESERVE LONG TERM AFFORDABILITY OF NYSTROM VILLAGE
• Replace the existing 100 public housing units with affordable units for households whose income does not exceed 80% AMI and allow current residents to return to Nystrom Village following redevelopment.
• Secure long-term Section 8 contract for Phase 1 that preserves affordability for extremely low and very low-income households.
Development Cost Factor Total Per Unit
Site Acq uisition $43 $12,590,000 $41,551
A&E 5.0% of hc $4,590,000 $16,000
Other Professional/Consultants 1.00% of hc $920,000 $4,000 Construction Costs $240 per nrsf $72,800,000 $241,000
Contractor Fees / General Requirements 12.5% of hc $9,100,000 $31,000 Parking Costs (Surface) $10,000 per space $3,150,000 $11,000 Escalation 5.0% of hc $3,640,000 $13,000
Hard Cost Contingency 4.0% of hc $3,060,000 $11,000
Construction Management 1.5% of hc $1,380,000 $5,000
City Fees $23,000 per unit $6,970,000 $24,000
Financing Costs $6,170,000 $21,000
Marketing & FF&E $4,000 per unit $1,220,000 $5,000
Insurance & Legal 1.0% of hc $920,000 $4,000
Property Taxes 1.2% of hc $1,060,000 $4,000
Soft Cost Contingency 5.0% of soft $790,000 $3,000
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• Continue to serve extremely low and very low-income households and provide services that assist residents.
3. STABALIZE OPERATIONS AND LONG-TERM FINANCIAL VIABILITY • Obtain Section 18 approval from HUD with a determination of obsolescence and new Tenant Protection Vouchers to be project based. Approximately 65 PBV’s will be incorporated into the project.
• Establish initial deposits and annual deposits to replacement reserve adequate to fund anticipated capital needs for 20 years.
4. REPOSITION RHA’S IN THE DEVELOPMENT
• Select one or more partners with experience in asset repositioning, redevelopment, and operation of affordable rental housing.
• Select one or more partners with experience in the development of owner housing, including affordable ownership housing.
• Select partners compatible with RHA’s mission and values. • Provide financial return to RHA to sufficiently support on-going asset management roles related to financial performance and on-going public benefit. • Maintain ownership of rental housing sites by providing long-term ground leases to the development entity(ies).
• Preserve long-term/permanent affordability of affordable ownership units developed on the site.
6. ROLES AND RESPONSIBILITIES
The following table reflects the primary delineation of roles and responsibilities between RHA and the Partner for the Phase 1 replacement of 100 public housing units. This table is intended to convey RHA’s expectations related to primary project roles. As necessary, details are expected to be negotiated and documented in project agreements. Provide any objection to these broad delineations of roles in your proposal. No additional City or RHA subsidy will be provided for development of the project beyond conveyance of the building, and ground lease of the land. The Developer will be responsible for predevelopment activities including design and securing all necessary financing sources, including vouchers with the support of RHA. RHA will have primary responsibility for SAC and Section 18 application to HUD:
RHA PARTNER
RESIDENT ENGAGEMENT
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Resident Meetings/
Communication
Coordinate with partner. Maintain communication with residents through completion of Phase 1. Support with
logistics, planning and creation of content
for all necessary meetings and notices.
Relocation Coordinate with HUD partner. Responsible
for management and maintenance of
residents and units on Blocks A, C and D
until Phase 1 units are complete, and all
existing units are vacated and demolished.
Prepare an implement a relocation plan that
relocates Block B residents to Blocks A, C
and D during construction and allows them
to return to the new units once complete.
Lease Renewal &
Certification (for
returning tenants)
Coordinate with partner. Responsible for signing new leases with residents needed as a result of Low-Income
Housing Tax Credit (LIHTC) and Section 8
Housing Assistance Payment (HAP)
contract.
HUD
Section 18
Application
As the building owner and public housing
authority, RHA is responsible for submitting
the Section 18 and/or Rental Assistance
Demonstration (RAD) contracts to HUD.
RHA is responsible for all certifications
needed in support of applications.
Assist with submission of Section 18 and/or
RAD application by contracting with any
vendors needed to produce due diligence
items including any study or report needed
to support obsolescence, eCNA tool, and
Environmental Review (NEPA & CEQA).
Section 8 Process Facilitate HAP contract between Contra Costa County Housing Authority and
ownership entity regarding Project-Based
Vouchers for Nystrom Village. Based on
recent occupancy levels at the site, RHA
estimates that approximately 65 project-
based vouchers will be available for Phase 1,
assuming temporary relocation of existing
residents during construction is
accommodated on-site.
On behalf of ownership entity, to enter HAP
contract with Contra Costa County Housing
Authority for Section 8 operating subsidy.
DEVELOPMENT
Design Support design process by providing all
available documents and access to the site
as necessary to support the design process.
Responsible for selection of architectural
and engineering team, and management of
the entire design process. Responsible for
all working capital necessary to fund design
tasks needed to obtain permits and begin
construction.
Demolition Support demolition of units on Block B by
granting access to buildings as needed,
Responsible for selection and management
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allowing for reasonable testing needed in
support of developing demolition and
environmental abatement scope and cost
estimates.
of general contractor performing demolition.
Construction Support communication with residents
during construction.
Responsible for selection and management
of general contractor from pre-construction
through final close-out. Managing
communication with residents during
construction.
Finance Ground lease the land to the development
limited partnership. Provide a loan of
available ARPA funding for predevelopment
costs as determined appropriate.
Responsible for securing capital financing
including: LIHTC allocation and investor, tax
exempt bond allocation, construction and
permanent lender, any state development
subsidy. Responsible for providing all
guarantees necessary to secure financing.
OPERATIONS
Property
Management
Responsible for sharing all available and
relevant information with partner and
support relocation of existing residents into
completed Phase 1 units.
Responsible for all aspects of property
management from lease up through
operations.
Asset Management Responsible for asset management related to RHA’s stake in the project including lessor
of land, seller financing, and public benefits
relating to ongoing affordability.
Responsible for asset management roles
customary for an owner or general partner
including reporting and compliance, annual
audits, annual budget review and
forecasting, capital improvement planning.
Land Lease Lease land to the ownership entity on terms
mutually agreed to by RHA and partner
On behalf of the ownership entity, lease land
from RHA on terms mutually agreed to by
RHA and partner.
OWNERSHIP INTERESTS
RHA retains ownership of parcel and
provides ground lease of site.
Partner owns buildings and improvements.
7. SUBMISSION REQUIREMENTS
COVER LETTER
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contained in the development proposal. specifically, identify which blocks and housing/ownership types the applicant proposes to develop.
TEAM MEMBER EXPERIENCE AND TRACK RECORD
Provide a description of all team members, including the following information as appropriate depending on which blocks, and housing/ownership types the applicant is proposing to develop:
• Demonstrated successful experience on projects similar in scope and type to proposed projects including projects with public/private development relationship and development, financing, construction, and operation of affordable housing.
Development teams for Phase 1 public housing replacement should include an architect and property manager. Demonstrated experience of developer and architect with energy efficiency development.
• For rental housing proposals, evidence that at least one proposed General Partner and the proposed property manager qualify for maximum experience points for 9% Low Income Housing Tax Credits from CTCAC. THIS IS A
THRESHOLD CRITERIA FOR RENTAL HOUSING DEVELOPERS AND PROPERTY MANAGERS.
• Identification of key staff members and project team members. For any development team members not yet identified, please describe your process and timeline for selection.
• Demonstrated financial capacity to complete the project within a reasonable timeframe.
• For each member of the development team (including developer and architect), provide examples of at least three similar projects completed within the past five years. Include the following information for each project: name, address, number of units, total project cost, type of financing, description of relocation requirements and name of development partner(s), if applicable. For the developer, identify any cost or time overruns in the completion of any projects and explain the reason.
REFERENCES
For at least three similar projects (preferably with voucher and housing authority partners for developers proposing to construct and operate Phase 1 public housing replacement units), provide the following references for each development entity:
1. Public Agency
2. Lender
3. Tax credit investor (for partners proposing to develop rental housing)
For the rental property manager, provide the last three consecutive years audited financial statements for three comparable properties and a public agency contact for each project. 204
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HISTORIC PRESERVATION
Nystrom Village’s association with the WWII federal housing program undertaken in Richmond, its importance as a very early example of public housing in Richmond, and its historic integrity makes Nystrom Village eligible for the California and National Registers as a historic district. The Office of Historic Preservation Department of Parks and Recreation concurred that Nystrom Village is eligible for listing in the National Register of Historic Places under Criterion A. As such, any development at the site will need to retain at least 3- 5 of the original duplexes in their current configuration to confer with this historic designation. Preference will be given to, proposals that include the renovation and repurposing of these historic units.
ENERGY EFFICIENCY PLAN
Describe your experience in and plan for incorporating the highest energy (and water) efficiency standards feasible and your proposed sources of funds, which may include but are not limited to California Energy Commission rebates, investment tax credits, and PG&E rebates, among others.
Additionally, there is a preference for all newly constructed buildings to be all-electric and include solar panels for all new non-residential and high-rise residential buildings.
Residential buildings may include non-electric cooking appliances and fireplaces, and non-residential buildings containing a for-profit restaurant, or an employee kitchen may also apply for an exception to install gas- fueled cooking appliances.
RESIDENT ENGAGEMENT & RELOCATION
Developers, describe your approach to resident engagement and communication. Please break this response into the following phases: pre-construction (including relocation), resident re-leasing, construction period, lease-up, post construction / warranty, and operations. For each phase discuss primary objectives and tactics for engaging with residents. Also discuss your general approach to balancing the needs of residents with a cost-effective approach to construction and achieving the desired rehabilitation scope.
Describe your staff pattern for resident engagement, communication tools and techniques used with residents and internal to the team, and the interface between the general contractor and resident engagement and relocation team.
MARKETING PLAN
Describe your marketing plan including compliance with fair housing laws and, for Phase 1 205
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developers, priorities for existing Nystrom Village residents.
RESIDENT SERVICES
For proposed rental housing, describe in detail your resident services plan. Include the types of services to be provided on site and by whom. To the extent partnerships will be used in the delivery of services, please provide information about the proposed service provider.
OWNERSHIP STRUCTURE
Describe and provide a graphic reflecting the proposed ownership structure including all partners or affiliated entities for each block/phase proposed.
PROPOSED FINANCING PLAN
Describe the proposed financing approach for each block and/or housing/ownership type the developer/development team is proposing to develop. Describe each developer entity’s role in each phase or block, including identifying the entity that will provide financial guarantees to lenders and investors.
For rental housing development, describe proposed federal, State, and private leveraged financing sources and anticipated competitiveness of the proposed development for each source. Describe target income levels consistent with proposed leveraged financing sources. Discuss any innovative financing approaches the developer proposes to use.
For owner housing development, describe the target income levels and price range for proposed market-rate and affordable units. Describe potential federal, State and/or private financing sources for affordable units, and how the developer expects to provide at least 25% affordable units at prices affordable to households at 120% of area median income and either 10% of units at moderate income (120% AMI) or 7% of units at low income (80% AMI), using Health and Safety Code standards (Inclusionary Requirement).
Describe the structure that will be used to ensure long-term affordability, such as a Community Land Trust or resale restrictions. Discuss any innovative financing approaches the developer proposes to use.
FINANCIAL CAPACITY
Provide three financial references with whom the lead development firm has recently obtained acquisition and/or construction financing. Provide the following information for each reference: institution, contact name and title, e-mail address, phone number, and address.
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Provide the three most recent audited financial statements and current unaudited financials for each proposed General Partner or Principal. Identify the entity(ies) that will provide financial guarantees to lenders and investors. Unaudited financial statements will be accepted for ownership housing developers without audited statements.
For rental housing developers, provide initial letters of willingness from LIHTC tax credit equity investors to invest in the project and stating their willingness to accept the candidate’s tax credit recapture, net worth, and operating deficit guarantees for any proposed tax credit rental development.
BUSINESS OFFER: PHASE 1 PUBLIC HOUSING REPLACEMENT
For developers proposing to develop the Phase 1 public housing replacement units, include a proposed business offer including the following information:
1. Proposed distribution of cash flow following payment of the first mortgage debt service. RHA expects a minimum of 50% of residual receipts, as allowed by proposed funding sources.
2. Proposed maximum net cash developer fee.
3. General partner asset management fee.
4. Proposed role and terms for RHA in exercising the Right of First Refusal and/or Option relating to the exit of the investor limited partner.
CERTIFICATIONS
Signed certifications from the Developer(s)’ authorized signatory(is) stipulating (see Appendix III):
1. A statement that the candidate is eligible for management general partner experience points, and the proposed property manager is eligible for maximum property manager experience points, under current TCAC Regulations.
2. A statement regarding prior bankruptcy, all outstanding judgments, pending or final, and ongoing or threatened lawsuits against the candidate, individual or any related entity.
3. A statement assuring the availability of all principal staff named in the application, including the name of the Project Manager(s) for the candidate.
4. A statement that the candidate is willing and able to provide all required financial guarantees and net worth obligations of lenders, the limited partner investor, and the RHA.
5. A statement that the candidate is prepared to abide by all applicable City policies with respect to the zoning code, design guidelines, and City objectives for local contracting.
6. Non-collusion affidavit stating no financial contributions to City officials, elected or otherwise, in last five years.
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SCHEDULE OF PERFORMANCE
For developers proposing to develop the Phase 1 public housing replacement units, provide preliminary schedules for predevelopment, entitlement, schematic design, design development, financing, and construction. Assume that entitlements are completed approximately January 2025.
Describe proposed development schedule for other blocks/phases proposed by Developer.
LOCAL BUSINESS, LOCAL RESIDENT HIRE & PUBLIC ART REQUIREMENTS To the extent permitted by law, the project will be subject to the Richmond Municipal Code (RMC) including, but not limited to, local business and hiring requirements, including the City’s Business Opportunity Ordinance (RMC Chapter 2.50), the City’s Local Employment Program Ordinance (RMC Chapter 2.56), and the City’s Living Wage Ordinance (RMC Chapter 2.60). The selected developer will also be required to execute a First Source Agreement for hiring residents in accordance with the Local Employment Program Ordinance.
The project shall meet the requirements of Richmond Municipal Code (RMC) One Percent for Public Art on Private Projects Program (RMC Chapter 12.62) by either including on-site publicly accessible art valued at one percent of the Building Development Cost or pay an in-lieu contribution of one percent of the Building Development Cost to the City’s Public Art Project account.
REFERENCES
Provide at least two references for all parties involved.
RFQ SCHEDULE
Task Date
RFQ Issued Wednesday, May 15, 2024
Pre-proposal Meeting Monday, June 17 2024
RFP Due Wednesday, August 7 2024
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8. SELECTION PROCESS
1. SELECTION OF DEVELOPERS
The Staff Review Committee, comprised of RHA, City staff, and advisors will carefully review all responses submitted for completeness and compliance with the requirements contained in the RFP and ranking of qualified applicants against the selected scoring criteria.
Following staff review, the Staff Review Committee will evaluate proposals and may request additional information from development teams.
Staff may elect to conduct interviews with the top-ranked teams.
Upon completion of the review process, the Staff Review Committee may make recommendations to the Executive Director.
The RHA Board of Commissioners will be asked to authorize the selection of one or more preferred developer partners and to instruct RHA staff to award one or more Exclusive Right to Negotiate (ERN) agreements. The term of the ERN will be 90 days with two extensions for a total of 180 days.
Completeness of Application
Applicants must submit all required elements. All certifications must be signed by an authorized individual of each development partner submitting. Failure to submit any of the required information is grounds for rejection of any RFP response. RHA reserves the right to reject incomplete applications.
2. TERM SHEET
RHA and the selected firm(s) will negotiate terms and conditions of the development transaction in the form of a Term Sheet. These terms shall include such business points as performance milestones, financial obligations, schedules, ground lease and purchase terms, limits on developer and property manager compensation, including developer fee, asset management fee, property management fee and residual receipts definition and sharing with RHA. At this stage of the process, the developer for the Phase 1 public housing redevelopment will be expected to prepare a detailed pro forma financing plan including but not limited to projected income and operating expenses, construction and permanent sources and uses, tax credit and subsidy calculations, and projected cash flow.
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3. DISPOSTION AND DEVELOPMENT AGREEMENT
Once the Term Sheet is approved by the RHA Board of Commissioners, the developer and RHA staff will negotiate one or more Disposition and Development Agreements (DDAs) containing all terms and conditions of the land lease (or sale, for owner housing blocks) and development of the site. The DDA is subject to approval of the RHA board and the RHA board reserves the right to reject the recommended DDA.
4. SELECTION CRITERIA
DEVELOPER EXPERIENCE
a. Extent of experience developing comparable projects. b. Success of comparable projects concerning:
a. Economic success - including maintenance of good physical condition of properties and positive cash flow
b. Overall architectural and landscape design, including energy and water efficiency
c. Marketing and lease-up or sale of residential units
d. Incentives and/or support to commercial tenants (please provide examples of specific tenants)
c. Timeliness of previous performance.
d. Experience with joint public/private real estate ventures and/or comparable large commercial/residential projects.
ARCHITECT EXPERIENCE
a. Extent of experience with market-rate and affordable housing projects. b. Overall quality of architectural and landscape design.
PROPERTY MANAGEMENT EXPERIENCE
a. Quality of ongoing property management, positive cash flow and satisfaction of local agencies and residents.
PROJECT CONCEPT AND FINANCING APPROACH
a. The overall quality and innovation of the proposed project, including green building materials, and energy-efficient and renewable energy measures, methods, and operations.
b. Incorporation of specific design parameters specified in the Richmond Livable Corridors Form-Based Code (see also the Architectural Standards and Sustainability Guidelines).
c. Incorporation of quality design elements and materials throughout the project to 210
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ensure the proposed development maximizes the livability of the site and caters to a walkable neighborhood in close proximity to community amenities. d. The extent to which the proposal presents an innovative and realistic project concept, based on the following parameters:
a. Ability to respond to unique development opportunities and constraints. b. Demonstrated understanding of current market and financial conditions, including availability, timing, and competitiveness of proposed leveraged financing sources.
FINANCIAL CAPACITY OF LEAD DEVELOPER
a. Adequate level of existing assets, income, and net worth. b. Ability to raise equity/debt funds.
c. Strong relationship with lenders and investors or demonstrated ability to internally finance the project.
d. For rental developers, ability to provide a track record of providing high quality operation and maintenance, including positive cash flow, properly funded replacement and operating reserves, good physical condition, and quality of resident services.
FINANCIAL TERMS PROPOSED (PHASE 1 PROPOSALS)
a. Sharing of residual receipts with RHA.
b. Maximum developer fee.
c. Schedule of development.
d. Overall value and community benefits of proposed project. 211
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9. THE CITY NON-LIABILITY & RELATED MATTERS
1. NO REPRESENTATION OR WARRANTIES
All facts and opinions stated herein including, but not limited to, statistical data, economic data, and projections are based on available information and no representations or warranties are made with respect to their accuracy or completeness.
2. RICHMOND HOUSING AUTHORITY TO REJECT ANY AND ALL PROPOSALS This RFQ and the selection process shall in no way be deemed to create a binding contract, agreement, or offer of any kind between RHA and any developer. If RHA selects a developer pursuant to this RFQ, any legal rights and obligations between the successful team, if any, and RHA will come into existence only when the DDA is fully executed by the parties, and the legal rights and obligations of each party shall at that time be only those rights and obligations which are set forth in the DDA and any other documents specifically referred to in that agreement and executed by the parties.
Scoring Points
Management Capacity: Evidence of ability to perform the work – principals, staff, experience, technical and professional competence. 15 Prior Performance: quality of work, cost control, compliance with performance schedules.
15 Experience: experience in developing land, affordable housing, and mixed- income housing units that utilized innovative and creative approach 15 Proposed Development Plan and Schedule: including schedule for completion of Phase 1 and subsequent phases, as applicable.
Additional Points for the incorporation of historical preservation
15 5
Proposed Community and Resident Engagement Plan: consistency with desired development goals
10 Financial Capacity: Firm’s documented ability to obtain financial commitments from state and local agencies, private investors, and banks.
A proven track record of a creative and viable financial plan that does not rely on RHA funding.
15 Business Offer: Proposed share of residual receipts, purchase price, ground lease payments and other terms.
10 Total 100
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Each developer submitting qualifications in response to this RFQ agrees that the preparation of all materials for submittal to RHA and all presentations are at the developer’s sole cost and expense, and RHA shall not, under any circumstances, be responsible for any costs or expenses incurred by any candidate developer. In addition, each developer agrees that all documentation and materials submitted with a proposal shall remain the property of RHA. Subject to California law and City ordinances relating to access to public records, RHA may be required to publicly disclose all submitted information and materials to third parties requesting such information.
RHA reserves the right to accept or reject any or all developer proposals, to alter the selection process in any way, to postpone the selection process for its own convenience at any time, to waive any defects in any proposal, to cancel this RFP, to issue a new RFP at any time, or to hire any developer they deem appropriate in their sole and absolute discretion within or outside an RFP evaluation process.
3. A REAL ESTATE COMMISSION OR FINDER FEE WILL NOT BE PAID ON THIS
TRANSACTION
4. EXCEPT FOR THE ARPA FUNDS NOTED IN THIS RFQ, CITY FUNDS ARE NOT
AVAILABLE FOR THIS PROJECT AND CITY FEES WILL NOT BE WAIVED
10. PROPOSAL SUBMISSION PROCESS
To participate in the RFQ process, developers must submit a proposal by Wednesday, August 7, 2024, 3:00 PM. The proposal shall be limited to 50 pages (8.5 inches x 11 inches), inclusive of attachments, graphics, forms, pictures, photographs, etc. The required font size is 12 points, with minimum left and right margins of one inch, and top and bottom margins of 0.7 inches.
Please submit proposal through the BidsOnline System portal. Do not include audited and unaudited financial statements for the developer candidates and projects in this package.
In addition to the proposal submitted to BidsOnline System, please upload the following items to this private NELB Consultants Dropbox (RHA Financial Consultant):
The three most recent audited financial statements and current unaudited financials for each proposed General Partner or Principal. Unaudited financial statements will be accepted for ownership housing developers without audited statements
Dropbox Full Address:
https://www.dropbox.com/scl/fo/u7479xkfkrir0izo8v2by/h?rlkey=3gtr7yvehhqd0nsgc0yg1qt82&dl=0 213
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The proposal and any required certifications shall be signed by an individual or individuals authorized to execute legal documents on behalf of the proposer. Proposer is responsible for submitting its entire proposal package with all required submittal documents and any modifications or revisions, so as to reach the RHA as designated in the RFQ by the time specified below. Any proposal, modification, or revision received by the City of Richmond BidOnline system after the exact time specified below may be rejected for review. The proposal must be received no later than 3:00 PM (PDT) on August 7, 2024:
City of Richmond BidOnline system Website:
https://vendors.planetbids.com/portal/14590/portal-home
11. APPENDIX
SUPPORTING DOCUMENTS
• APPENDIX I - NYSTROM VILLAGE MASTER PLAN
• APPENDIX II - Y-PLAN NYSTROM VILLAGE POLICY BRIEF
• APPENDIX III - CERTIFICATIONS
• APPENDIX IV - RECEIT ADDENDUM
• APPENDIX V - DISCLOSURE OF LOBBYING ACTIVITIES
• APPENDIX VI - PROFILE OF FIRM FORM
• APPENDIX VII - CERTIFICATION REGARDING DEBARMENT AND SUSPENSION • APPENDIX VIII - HUD FORM 5369-B
• APPENDIX IX - HUD FORM 5369-C
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December 17, 2024
SUCCESSOR AGENCY TO THE
RICHMOND COMMUNITY
REDEVELOPMENT AGENCY
Community Development
DATE: December 17, 2024
TO: Chairperson Martinez and Members of the Successor
Agency Board
FROM: Shasa Curl, Executive Director
Lina Velasco, Director of Community Development
Rita Martinez, Finance Manager II
Subject: Approval of the Recognized Obligation Payment
Schedule (ROPS 25-26) and the Administrative Budget
for the period July 1, 2025 through June 30, 2026
FINANCIAL IMPACT: Adoption of the Recognized Obligation Payment Schedule including the administrative budget is
necessary for the Successor Agency to expend former
Richmond Community Redevelopment Agency funds on
certain financial obligations of the Agency. Residual tax revenues not obligated on ROPS 25-26 are distributed to local taxing entities. ROPS for the period July 1, 2025 through June 30, 2026 totals $21,062,974
(Redevelopment Property Tax Trust Fund (RPTTF) totals
$10,764,456 and restricted reserves are $10,298,519).
PREVIOUS COUNCIL
ACTION:
n/a
STATEMENT OF THE
ISSUE:
The Successor Agency to the Richmond Community
Redevelopment Agency (Agency) is required to approve
a Recognized Obligation Payment Schedule (“ROPS”)
and an administrative budget annually pursuant to
California Health and Safety Code sections 34177(O) and 34171(A),(B), and 34177(J), respectively.
AGENDA
REPORT
215
December 17, 2024
RECOMMENDED ACTION:
ADOPT a Resolution approving the Recognized
Obligation Payment Schedule (ROPS 25-26) and the
Administrative Budget for the of period July 1, 2025,
through June 30, 2026 – Community Development
Department (Lina Velasco 510-620-6706).
DISCUSSION:
Background
ABx1 26 (“Dissolution Act”) suspended all new redevelopment activities and incurrence of indebtedness by terminating virtually all otherwise legal functions of redevelopment agencies and mandating a liquidation of any assets for the benefit of local taxing agencies. Some debts are allowed to be repaid, but any such remittances are to be managed by a successor agency that functions primarily as a debt repayment administrator. The successor agency cannot initiate any new redevelopment projects or programs. The activities of the successor agency are overseen by a countywide oversight board, comprised primarily of representatives of other taxing agencies throughout the county, until such time as the remaining debts of the former redevelopment agency are paid off, all former agency assets are liquidated, and all property taxes redirected to local taxing agencies.
Under the Dissolution Act, the portion of property tax revenues collected in the Redevelopment Agency (“RDA”) Project Areas, which were considered Tax Increment prior to RDA dissolution, are now called Redevelopment Property Tax and are deposited by the County Auditor-Controller into the Redevelopment Property Tax Trust Fund (“RPTTF”). The County Auditor-Controller distributes the funds in the RPTTF with the following priority:
1. County Auditor-Controller’s administrative costs;
2. Pass-through payments to the taxing entities affected by the Redevelopment Plan for the Project Area, calculated the same as prior to RDA dissolution;
3. Distribution to the Successor Agency to retire the former RDA’s obligations; and
4. Distribution of residual funds to taxing entities.
A budget trailer bill drafted by the State Department of Finance (“DOF”) purportedly to “clean up” certain conflicting and confusing provisions of ABx1 26 was signed by Governor Jerry Brown on June 27, 2012. This bill, AB 1484, made several substantive changes to ABx1 26 including a provision that successor agencies that do not submit an approved Recognized Obligation Payment Schedule (“ROPS”) by the statutory deadlines will be assessed a $10,000 per day penalty for lateness.
On September 22, 2015, Governor Jerry Brown signed SB 107, which made several significant changes to the redevelopment dissolution process, including modification of the ROPS submittal cycle from six month to 12-month intervals. 216
December 17, 2024
Under Health and Safety Code section 34177(o), a ROPS must be prepared and submitted on February 1st of every year and list all of the “enforceable obligations” of the former agency. The ROPS is subject to approval by the Countywide Oversight Board and DOF before the County Auditor-Controller disburses funding for payments on the approved ROPS. “Enforceable obligations” include: bond payments; loans legally required to be repaid pursuant to a payment schedule with mandatory repayment terms; payments required by the federal government; preexisting obligations to the state or obligations imposed by state law; judgments, settlements or binding arbitration decisions that bind the agency; legally binding and enforceable agreements or contracts; and contracts or agreements necessary for the continued administration or operation of the successor agency, including agreements to purchase or rent office space, equipment and supplies.
After submittal, DOF has until April 15th to review the ROPS and approve or disapprove of any items. The Successor Agency can request additional review by DOF and an opportunity to meet and confer on disputed items. The Successor Agency must make a request within five business days of receiving a DOF determination. DOF is required to notify the Successor Agency and County Auditor-Controller of its final determination of the approved payments at least 15 days prior to the first distribution date of RPTTF for the ROPS, which is June 1st. RPTTF is distributed twice annually, on June 1st and January 2nd of each year. The annual ROPS can be amended once per year as long as the amendment is received by DOF before October 1st of the applicable fiscal year.
Summary
Recognized Obligation Payment Schedule (ROPS 25-26)
ROPS 25-26 is Exhibit A to the attached Successor Agency resolution. It includes: 1) a summary of the funding request; 2) an itemized listing of obligations (“ROPS Detail”); and 3) a report of cash balances. This ROPS covers payments due during the period of July 1, 2025 through June 30, 2026.
The following is a summary of ROPS 25-26 Obligations submitted for approval. RPTTF total $10,764,456 and restricted reserves are $10,298,519.
217
December 17, 2024
Successor Agency Administrative Budget July 1, 2025 through June 30, 2026 Pursuant to Health and Safety Code sections 34171(a), (b), and 34177(j), the Successor Agency must prepare a budget for administrative expenses each fiscal year (“Administrative Budget”). In accordance with the Dissolution Act, the Successor Agency’s RPTTF administrative cost allowance cap is the greater of 3% of the prior year RPTTF distribution or $250,000 annually. For the period July 1, 2025 through June 30, 2026, the RPTTF administrative cost allowance cap is $304,760.
Upon the Successor Agency Board’s approval, staff will submit ROPS 25-26 and the Administrative Budget to the Oversight Board for their consideration and approval. Upon receiving the Oversight Board’s approval, staff will submit ROPS 25-26 to the County Auditor-Controller, the State Controller, and the DOF. The approved ROPS 25-26 is required to be submitted to DOF by February 1, 2025 to avoid daily penalties.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Exhibit A to Resolution (ROPS 25-26)
Attachment 3 – Exhibit B to Resolution (Administrative Budget)
218
1 RESOLUTION NO. ___
A RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO
THE RICHMOND COMMUNITY REDEVELOPMENT AGENCY
APPROVING AND ADOPTING A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE AND ADMINISTRATIVE BUDGET FOR THE
PERIOD JULY 1, 2025 THROUGH JUNE 30, 2026 (ROPS 25-26), PURSUANT TO HEALTH AND SAFETY CODE SECTIONS 34177 AND
34171.
WHEREAS, pursuant to Health and Safety Code Section 34173, the City of Richmond created the Successor Agency to the Richmond Community Redevelopment Agency (“Successor Agency”) by Resolution No. 4-12 on January 24, 2012; and
WHEREAS, Health and Safety Code Section 34177(o) requires the Successor Agency to prepare a draft recognized obligation payment schedule (“ROPS”), before each annual fiscal period, forward looking to the next twelve months; and
WHEREAS, Health and Safety Code Section 34177(l)(2)(b) requires the Successor Agency to submit the ROPS to the Successor Agency’s Oversight Board for its approval, and upon such approval, the Successor Agency is required to submit a copy of the approved ROPS (“Approved ROPS”) to the Contra Costa County Auditor-Controller, the California State Controller, and the State of California Department of Finance, and post the Approved ROPS on the Successor Agency’s website; and
WHEREAS, Health and Safety Code Sections 34171(a), (b) and 34177 (j) require the Successor Agency to prepare and submit a separate Administrative Budget covering the same period as each ROPS to the Successor Agency’s Oversight Board for its approval; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred; and
WHEREAS, by the Agenda Report accompanying this Resolution, the Successor Agency has been provided with additional information upon which the findings and actions set forth in this Resolution are based.
NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE RICHMOND
COMMUNITY REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
Section 2. CEQA Compliance. The approval of the ROPS through this Resolution does not commit the Successor Agency to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act.
219
2 Section 3. Approval of Initial Draft of the ROPS. The Successor Agency hereby approves and adopts the ROPS for the period July 1, 2025 through June 30, 2026 (ROPS 25-26), in substantially the form attached to this Resolution as Exhibit A, as required by Health and Safety Code Section 34177.
Section 4. Approval of Administrative Budget. The Successor Agency hereby approves and adopts the Administrative Budget for the period July 1, 2025 through June 30, 2026 in substantially the form attached to this Resolution as Exhibit B, as required by Health and Safety Code Sections 34171(a), (b), and 34177(j).
Section 5. Transmittal of Initial Draft of the ROPS and Administrative Budget. The City Manager or his designee is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding the ROPS, including submitting the ROPS to the Successor Agency’s Countywide Oversight Board for approval, and submission of the Approved ROPS to the Contra Costa County Auditor-Controller, the California State Controller, and the State of California Department of Finance, and posting the Approved ROPS on the Successor Agency’s website.
Section 6. Effectiveness. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Successor Agency to the Richmond Community Redevelopment Agency, on December 17, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Chair
ATTEST:
Successor Agency Clerk
APPROVED AS TO FORM:
Successor Agency Attorney
220
EXHIBIT A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
[Attached behind this page]
221
EXHIBIT B
ADMINISTRATIVE BUDGET
[Attached behind this page]
222
2526 ROPS Staff Report
Funding Summary
ROPS Obligation Summary
Paid from
Paid from Reserves and
Tax Revenues Other Sources Total
Debt Service 8,272,696$ 7,110,444 $ 15,383,139 $
Capital Projects 2,187,000 3,188,075 5,375,075 Administration 304,760 - 304,760 10,764,456$ 10,298,519 $ 21,062,974 $
Exhibit A
Recognized Obligation Payment Schedule
223
Recognized Obligation Payment Schedule (ROPS 25-26) - Summary Filed for the July 1, 2025 through June 30, 2026 Period Successor Agency: Richmond
County: Contra Costa
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
25-26A Total
(July -
December)
25-26B Total
(January -
June)
ROPS 25-26
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 8,647,058 $ 1,651,461 $ 10,298,519 B Bond Proceeds - - -
C Reserve Balance 7,033,116 47,328 7,080,444
D Other Funds 1,613,942 1,604,133 3,218,075
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 4,634,544 $ 6,129,912 $ 10,764,456 F RPTTF 4,329,784 6,129,912 10,459,696
G Administrative RPTTF 304,760 - 304,760
H Current Period Enforceable Obligations (A+E) $ 13,281,602 $ 7,781,373 $ 21,062,975 Certification of Oversight Board Chairman:
Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
224
Richmond
Recognized Obligation Payment Schedule (ROPS 25-26) - ROPS Detail July 1, 2025 through June 30, 2026
A B C D E F G H I J K L M N O P Q R S T U V W
Item
#
Project
Name
Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
25-26 Total
ROPS 25-26A (Jul - Dec)
25-26A
Total
ROPS 25-26B (Jan - Jun)
25-26B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
$41,554,075 $21,062,975 $- $7,033,116 $1,613,942 $4,329,784 $304,760 $13,281,602 $- $47,328 $1,604,133 $6,129,912 $- $7,781,373 4 2003B Tax
Allocation
Revenue
Bond
Bonds Issued
On or Before
12/31/10
08/01/
2003
09/01/2025 Union Bank Fund capital
improvement
projects
Merged
Project
Area
1,133,708 N $1,133,708 - 1,133,708 - - - $1,133,708 - - - - - $- 5 2004A Tax
Allocation
Revenue
Bond (2/3)
Bonds Issued
On or Before
12/31/10
10/01/
2004
09/01/2026 Union Bank Fund capital
improvement
projects
Merged
Project
Area
3,277,568 N $3,277,568 - 608,256 - - - $608,256 - - - 2,669,312 - $2,669,312 6 Section 108
Loan
Bonds Issued
On or Before
12/31/10
11/22/
2004
08/01/2025 HUD Finance costs
related to the
Ford
Assembly
Building
Project
Merged
Project
Area
220,698 N $220,698 - - - 220,698 - $220,698 - - - - - $- 11 2004A Tax
Allocation
Revenue
Bond (1/3
Housing)
Bonds Issued
On or Before
12/31/10
10/01/
2004
09/01/2026 Union Bank Fund low/
moderate
income
housing
projects
Merged
Project
Area
1,638,784 N $1,638,784 - 304,128 - 1,287,328 - $1,591,456 - 47,328 - - - $47,328 13 Section 108
Loan
(Housing)
Third-Party
Loans
07/25/
2005
08/01/2025 HUD Finance costs
related to the
North
Richmond
Iron Triangle
Project
Merged
Project
Area
349,758 N $349,758 - - - 349,758 - $349,758 - - - - - $- 14 2007B Tax
Allocation
Capital
Appreciation
Bond
(Housing)
Bonds Issued
On or Before
12/31/10
07/01/
2007
09/01/2036 Union Bank Finance low
and moderate
income
housing
activities
Merged
Project
Area
11,060,000 N $2,515,000 - 1,230,000 - 1,285,000 - $2,515,000 - - - - - $- 16 Employee
Costs
Project
Management
Costs
07/01/
2024
06/30/2025 Employees of
Agency
Project
Managers
Merged
Project
Area
- N $- - - - - - $- - - - - - $-
56 Metrowalk
Phase II
(Housing)
OPA/DDA/
Construction
04/11/
2002
06/30/2027 Various Developer
agreement
Merged
Project
Area
5,000,000 N $2,187,000 - - - 1,187,000 - $1,187,000 - - - 1,000,000 - $1,000,000 62 Miraflores
Project -
Remediation
Remediation 01/15/
2011
06/30/2025 NV5/PES
Environmental
Remediation
Costs
Merged
Project
Area
115,000 N $115,000 - - 57,500 - - $57,500 - - 57,500 - - $57,500 66 Miraflores
Project -
Remediation
Remediation 06/01/
2011
06/30/2025 Department of
Toxic
Substance
Control
Remediation
Costs, Soil
Vapor
Sampling
Merged
Project
Area
71,633 N $71,633 - - 40,000 - - $40,000 - - 31,633 - - $31,633 225
A B C D E F G H I J K L M N O P Q R S T U V W
Item
#
Project
Name
Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
25-26 Total
ROPS 25-26A (Jul - Dec)
25-26A
Total
ROPS 25-26B (Jan - Jun)
25-26B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
68 Miraflores
Project
(Housing)
Improvement/
Infrastructure
10/18/
2010
06/30/2025 Various 80 units Sr
Housing, 190
units market
rate housing,
historical
resources
preservation
Merged
Project
Area
3,000,000 N $3,000,000 - - 1,500,000 - - $1,500,000 - - 1,500,000 - - $1,500,000 113 Terminal
One Project
- Litigation
Settlement
Litigation 09/28/
2005
06/30/2026 Various Remediation
costs funded
by litigation
settlement
payments
Merged
Project
Area
1,442 N $1,442 - - 1,442 - - $1,442 - - - - - $-
115 Admin
allowance
Admin Costs 07/01/
2024
06/30/2026 Various Administrative
costs
Merged
Project
Area
304,760 N $304,760 - - - - 304,760 $304,760 - - - - - $- 121 2014 A
Refunding
Bonds - Tax
Exempt
Refunding
Bonds Issued
After 6/27/12
04/11/
2014
09/01/2025 Trustee Refinance
outstanding
bonds
Merged
Project
Area
1,351,124 N $1,351,124 - 1,351,124 - - - $1,351,124 - - - - - $- 125 Bond
Trustee/
Disclosure/
Other Fees
Bonds Issued
On or Before
12/31/10
07/01/
2022
09/01/2035 Trustee Bond Trustee/
Disclosure/
Other Fees
30,000 N $30,000 - - 15,000 - - $15,000 - - 15,000 - - $15,000 129 2021A
Refunding
Bond
Refunding
Bonds Issued
After 6/27/12
02/01/
2021
09/01/2035 Trustee Refund
2004B and
2010A bonds
13,999,600 N $4,866,500 - 2,405,900 - - - $2,405,900 - - - 2,460,600 - $2,460,600 226
Richmond
Recognized Obligation Payment Schedule (ROPS 25-26) - Report of Cash Balances July 1, 2022 through June 30, 2023
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.
A B C D E F G H
ROPS 22-23 Cash Balances
(07/01/22 - 06/30/23)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.
Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/22)
RPTTF amount should exclude "A" period distribution
amount.
5,547,028 7,634,907 7,770,600 2,558,733
2 Revenue/Income (Actual 06/30/23)
RPTTF amount should tie to the ROPS 22-23 total
distribution from the County Auditor-Controller
21,763 8,968,690 729,416 8,340,223
3 Expenditures for ROPS 22-23 Enforceable Obligations
(Actual 06/30/23)
1,438,761 7,547,738 433,542 8,556,327
4 Retention of Available Cash Balance (Actual 06/30/23) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
1,980,614 435,600
5 ROPS 22-23 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 22-23 PPA
form submitted to the CAC
No entry required 367,495
6 Ending Actual Available Cash Balance (06/30/23)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$4,130,030 $- $9,055,859 $6,085,860 $1,539,534
227
Richmond
Recognized Obligation Payment Schedule (ROPS 25-26) - Notes July 1, 2025 through June 30, 2026
Item # Notes/Comments
4 5
6 11
13 14
16 56
62 66
68 113
115
121
125
129
228
ADMINISTRATIVE BUDGET
Fiscal Year 2025-2026
Revenue Summary
RPTTF Administrative Allowance $ 304,760 $ 304,760
Expenditure Summary
Salary and Benefits $ 170,033
Professional and Administrative Expenses $ 105,727 Other Operating Expenses $ 14,000 City Cost Allocation Plan $ 15,000 $ 304,760
Exhibit B
Administrative Budget
SUCCESSOR AGENCY TO THE RICHMOND COMMUNITY
REDEVELOPMENT AGENCY
229
December 17, 2024
City Attorney's Office
Finance Department
DATE: December 17, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Dave Aleshire, City Attorney
Andrea Miller, Finance Director
Antonio Banuelos, Revenue Manager
Subject:
Ordinance Creating New Business Activity Classification, “Class Q – Automobile Dealerships” and the
Corresponding Rates
FINANCIAL IMPACT: The financial impact of creating this new classification and rate structure will result in a decrease of approximately $500,000 in Business Tax Revenue in the General Fund.
No adjustment is proposed to the FY2024 -2025 Business
Tax Budget, as staff believes the decrease in this
particular class will be made up in tax revenue collected from businesses in other classes.
PREVIOUS COUNCIL
ACTION:
July 2, 2024
STATEMENT OF THE
ISSUE:
The proposed Ordinance will create a new Business
Activity, Class Q – Automobile dealerships and the
corresponding rates.
RECOMMENDED ACTION:
INTRODUCE an ordinance (first reading) amending
Chapter 7.04.103 of the Richmond Municipal Code by
creating a new Business Activity Classification, Class Q – Automobile Dealerships, and the corresponding rates –
City Attorney’s Office (Dave Aleshire 510-620-
5454/Andrea Miller 510-620-6790).
AGENDA
REPORT
230
December 17, 2024
DISCUSSION:
City Council placed Measure U on the November 3, 2020 ballot and was approved by the voters. Measure U changed the business tax calculation methodology to be based on gross receipts, replacing the prior methodology, which was based on a business's number of employees.
In June 2022, a group of Hilltop auto dealers submitted a letter to the City contending the Measure U business license tax, as applied to automobile dealerships, was discriminatory. In October 2022, the Hilltop auto dealers group filed a complaint against the City, challenging the constitutionality of Measure U.
On July 2, 2024, to resolve the action and avoid the time and expense of additional litigation, the City Council approved a settlement agreement (“Settlement Agreement”) with the Hilltop auto dealers and authorized staff to proceed with an ordinance amending Measure U to create a separate class for automobile dealerships. See Attachment 1.
Prior to this proposed action, Measure U (Richmond Municipal Code 7.04) contained sixteen (16) Business Activity Classifications but did not include Auto Dealerships as a separate business activity classification class. City staff is requesting to amend the Measure U ordinance to comply with the terms of the Settlement Agreement by adding, Class Q - Automobile Dealerships in section
7.04.130 of the Richmond Municipal Code as follows:
7.04.130 Business Activity Classifications Class
Class Industry
A Retail Sales
B Grocers
C Automobile Sales, Manufacturing
D Recreation and Entertainment
E Hotel/Motel
F Construction contractor
G Business and personal services
H Professional/semi-professional service
I Administrative headquarters (payroll based, not gross receipts) J Miscellaneous
K Residential and Commercial Rentals
L Cannabis
M Firearms Ammunition
N Taxi and limousine service
O Transportation, trucking
P Wholesale
231
December 17, 2024
Q Automobile Dealerships
Additionally, in accordance with the Settlement Agreement the ordinance amendment will provide for this new class to be assigned a new business tax rate as follows:
7.04.205 Tax Rates for Class A through Class J, Class P, and Class Q — Progressive Rates
(k) Class Q. Business engaged in Class Q business activities shall pay a business tax as follows:
If annual gross is: Then the business tax is:
Not over $1,000,000 $1.00 per $1,000 of annual gross
receipts
Over $1,000,000 but not over
$2,500,000
$1,000, plus $1.30 per $1,000 of annual
gross receipts over $1,000,000
Over $2,500,000 but not over
$25,000,000
$2,950, plus $1.60 per $1,000 of annual
gross receipts over $2,500,000
Over $25,000,000 but not over
$50,000,000
$38,950, plus $1.90 per $1,000 of
annual gross receipts over $25,000,000
Over $50,000,000 $86,450, plus $2.20 per $1,000 of
annual gross receipts over $50,000,000
While any amendment to Measure U that would increase the rate of taxation is subject to approval by a vote of the voters, the City Council has the authority to adopt modifications that decrease the rate of taxation, which applies to the proposed amendment.
It is important to note that in the Settlement Agreement, the City agreed that if it fails to enact the new Class Q business license tax, then for each payment of Measure U tax by any of the Hilltop Auto Dealers that were part of the Settlement Agreement, the City will refund the amount paid in excess of what would have been due under the new Class Q business license tax rates set forth above.
City staff will start mailing the 2025 Business Tax Renewal notices during the first week of January 2025.
DOCUMENTS ATTACHED:
Attachment 1 – Settlement Agreement
Attachment 2 – Redline Ordinance
Attachment 3 – Final Ordinance
232
01337.0039/982293.7
SETTLEMENT AGREEMENT
This Settlement Agreement ( “Agreement”) shall be deemed effective as of July 2, 2024 (“Effective Date ”), by and between DKD OF HILLTOP, INC., a California corporation, dba HANLEES HILLTOP BUICK GMC; HANLEES HILLTOP, INC., a California corporation, dba HANLEES HILLTOP TOYOTA; LEEHAN, INC., a California corporation, dba HANLEES HILLTOP NISSAN; HANLEES SEVEN, INC., a California c orporation, dba HANLEES HILLTOP HYUNDAI (collectively, “Hanlees Plaintiffs”); MICHAEL C. STEAD INC., a California corporation, dba HILLTOP FORD/KIA; MICHAEL STEAD ’S AUTO DEPOT INC., a California corporation, dba HILLTOP CHRYSLER JEEP DODGE (collectively, “Stead Plaintiffs”) (all collectively, “Plaintiffs”), and the CITY OF RICHMOND , a charter city of the State of California (“City”). Plaintiffs and City may be referred to herein individually as a “Party” or collectively as the “Parties.” There are no other parties to this Agreement.
RECITALS
A. Plaintiffs operate a total of six automobile dealerships at the Hilltop auto mall in Richmond, California.
B. On August 5, 2020, the Richmond City Council held a special meeting and adopted Resolution N o. 90 -20 to place a gross receipts business license tax before City voters in the November 3, 2020 general election, known as “Measure U.” Measure U proposed to repeal and replace Chapter 7.04 of the Richmond Municipal Code to implement a gross receipts or revenue- based tax on businesses operating within the City.
C. Measure U differentiated businesses into different classes for the purpose of establishing gross receipts and other tax rates on each business class. Plaintiffs’ dealerships were classified as “Automobile Sales, Manufacturing” under “Class C.” D. Voters approved Measure U at the City’s general election on November 3, 2020.
E. In June 2022, Plaintiffs acting through their legal counsel submitted a letter to the City Manager contending that Measure U bu siness license tax, as applied to automobile dealerships, was oppressive, burdensome, confiscatory , and discriminatory, in violation of the Fourteenth Amendment (Equal Protection), Fifth Amendment (Takings) and Commerce Clause of the United States Constitution.
F. On October 11, 2022, Plaintiffs filed a complaint (the “Complaint”) against the City in Superior Court of Contra Costa County, California (Case No. C22-02188) challenging the constitutionality of Measure U. The allegations and claims set forth in the Complaint are referred to in this Agreement as the “Action.”
G. City contested these claims arguing that the tax measure was within the broad police power of California municipalities, and taxation authority.
H. Between September 2023 and June 2024, the Parties engaged in ongoing settlement negotiations with the goal of resolving the Action.
Docusign Envelope ID: F3C96F7B-2048-4C1F-845D-69196E1D6EAF 233
01337.0039/982293.7
I. To avoid the time and expense of further litigation, the Parties now seek to fully and finally resolve Plaintiffs’ Action against the City, through subsequent actions by the Richmond City Council to modify Measure U as it pertains to Plaintiffs, as set forth herein.
NOW THEREFORE, in consideration of the mutual covenants, releases, and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to resolve the Action as follows:
AGREEMENT
1. Adoption of Class Q Business License Tax Rate . Prior to April 1, 2025, or the date that Plaintiffs’ Measure U business license taxes for 2024 become payable in 2025, whichever is earlier, the Richmond City Council shall enact an ordinance deleting “Automobile Sales” from Measure U, Class C (Richmond Municipal Code sections 7.04.130), establishing a new Class Q or other such new business license tax class, and adopting a new gross receipts tax rate to be imposed on Automobile Sales, as defined in Chapter 7.04, as follows:
7.04.XXX - Class Q — Automobile Dealerships.
Persons engaged in class Q business activities shall pay a business tax as follows:
If annual gross receipts are: Then the business tax is:
Not over $1,000,000.00 $1.00 per $1,000.00 of annual gross receipts Over $1,000,000.00 but not over
$2,500,000.00
$1,000.00 plus $1.30 per $1,000.00 of annual
gross receipts over $1,000,000.00
Over $2,500,000.00 but not over
$25,000,000.00
$2,950.00, plus $1.60 per $1,000.00 of annual
gross receipts over $2,500,000.00
Over $25,000,000.00 but not over
$50,000,000.00
$38,950.00, plus $1.90 per $1,000.00 of
annual gross receipts over $25,000,000.00
Over $50,000,000.00 $86,450.00, plus $2.20 per $1,000.00 of annual gross receipts over $50,000,000.00
2. Reconciling Prior Tax Years . City acknowledges that since the enactment of Measure U, Plaintiffs, under protest, have timely paid all taxes due to the City under Measure U except as noted in Subsection D below . The City agrees that each of the Plaintiffs shall receive credit against Measure U taxes for gross receipts generated in 2024, 2025, and, 2026 , which tax shall become due in 2025, 2026, and 2027, as follows:
A. The amount of each Plaintiff’s reimbursement credit shall be calculated by taking the total positive difference between the amount of Measure U business tax each Plaintiff dealership paid under protest in 2023 based upon gross receipts generated in 2022, and subtracting the amount of tax that would have been due in 2023 based upon gross receipts generated in 2022 if the Class Q tax rates had been in effect at the time (the “Total Reimbursement Credit ”). For example, if a Plaintiff paid $ 200,000 pursuant to Measure U – Class C in 2023, but the amount that would have been due 2023 for that Plaintiff under Measure U – Class Q would have been $170,000, then the amount of the Total Reimbursement Credit would be $30,000.
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B. The Total Reimbursement Credit shall be divided by 3 to arrive at the “Annual Reimbursement Credit.”
C. For Measure U taxes based upon gross receipts generated in 2024, 2025, and, 2026 to become due in 2025, 2026, and 2027, each Plaintiff shall be entitled to calculate and to deduct its Annual Reimbursement Credit from the amount due to be paid to the City, and City shall accept such reduced amount as payment in full of such Plaintiff’s Measure U tax for that year. Thus, for Plaintiffs’ business tax payments to become due on April 1, 2025, 2026, and 2027, the amount due shall be reduced by the amount of each Plaintiff’s Annual Reimbursement Credit.
D. Notwithstanding the formula expressed above, certain of the Plaintiffs did not timely pay their Measure U tax in 2024 for 2023 and are subject to a penalty under Measure U for late payment of approximately $50,000 (the “Penalty Amount”). That penalty shall be collected against those Plaintiffs by reducing the Annual Reimbursement Credit by the Penalty Amount amortized over the three years the Annual Reimbursement Credit is applicable.
3. Payments in Lieu of Class Q Business License Tax Rate. If for any reason or no reason at all , the City fails to enact the new Class Q business license tax set forth in Section 1 above, then for each payment of Measure U tax by any Plaintiff , the City agrees to refund within 30 days the amount by which the amount paid exceeds the amount that would have been due under the Measure U – Class Q business license tax rates set forth in Section 1 above if the Class Q business license tax rates set forth in Section 1 had been adopted and were in effect for such tax year.
4. Dismissal of Action . Subject to Section 5, below, w ithin thirty (30) days after Plaintiffs receive a certified copy of the City ordinance implementing the revisions to Chapter 7.04 of the Richmond Municipal Code as set forth in Section 1 above, Plaintiffs shall file with the Court a Request for Dismissal of the entire Complaint with prejudice, with each Party to bear their own attorneys’ fees and costs.
5. Enforceability and Continuing Jurisdiction. The Parties to this Agreement agree that, pursuant to California Code of Civil Procedure section 664.6, the Superior Court of the State of California for the County of Contra Costa shall retain continuing and exclusive jurisdiction of the Complaint and any and all subsequent actions arising out of or related to the interpretation or enforcement of this Agreement . Accordingly, within ten (10) days after Plaintiffs receive a certified copy of the City Ordinance implementing revisions to Chapter 7.04 of the Richmond Municipal Code as set forth in Section 1 above, Plaintiffs shall prepare and circulate for the Parties and their respective counsel’s signatures, a Stipulation and [proposed] Order for the court to retain jurisdiction pursuant to Code of Civil Procedure section 664.6, and Plaintiffs shall not file the Request for Dismissal set forth in Section 4 above until the court acts up on such Stipulation and [proposed] Order or thirty (30) days have passed since lodging of same, whichever is last to occur.
Failure of the court to retain jurisdiction shall not affect the validity of this Agreement or enforceability of its other provisions. The Parties agree that this Agreement is binding, enforceable, admissible, and subject to disclosure in order to enforce this Agreement.
6. Plaintiffs’ Releases of Claims . Except for the obligations set forth in this Agreement and any claims relating to a breach of any obligation of City under this Agreement, Docusign Envelope ID: F3C96F7B-2048-4C1F-845D-69196E1D6EAF 235
Plaintiffs, on behalf of themselves and each of their respective officers, directors, shareholders, employees, representatives, partners, joint venturers, agents, attorneys, insurers, assigns, predecessors and successors-in-interest, and anyone acting on their behalf (collectively, the “Plaintiff Parties”) shall and do hereby release, abandon, and waive any and all claims, causes or action, damages, debts, demands, dues, rights of action, suits, sums of money, variances, or obligations of any kind or nature whatsoever, whether or not now known, matured or unmatured, liquidated or unliquidated, absolute or contingent, suspected or unsuspected, that they may have, hold, or own, or might have had, held, or owned against the City and the City’s respective officials, agents, attorneys, employees, insurers, officers, representatives, and successors (collectively, the “City Parties”), up to and including the date this Agreement is executed that arise out of or relate to the Action.
7. City’s Release of Claims. Except for the obligations set forth in this Agreement and any claims relating to a breach of any obligation of Plaintiffs under this Agreement, the City Parties shall and do hereby release, abandon, and waive any and all claims, causes of action, damages, debts, demands, dues, rights of action, suits, sums of money, variances, or obligations of any kind or nature whatsoever, whether or not now known, matured or unmatured, liquidated or unliquidated, absolute or contingent, suspected or unsuspected, that they may have, hold, or own, or might have had, held, or owned against the Plaintiff Parties, up to and including the date this Agreement is executed that arise out of or relate to the Action.
8. Waiver of Section 1542. By initialing below, to the fullest extent permitted by law the Plaintiff Parties and the City Parties (collectively, the “Releasing Parties”), with respect to the releases set forth in Sections 6 and 7 of this Agreement, waive any rights or benefits available to them under California Civil Code section 1542, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE
AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THEDEBTOR OR RELEASED PARTY. n
...... ......... A* rV-AryjTntX
Hanlees Plaintiffs Stead Plaintiffs City
In connection with such waiver and relinquishment, the Releasing Parties hereby acknowledge that they are aware that they or their attorneys may discover claims or facts in addition to or different from those which they now know or believe to exist with respect to the subject matter of this Agreement or otherwise, but that it is each of the Releasing Parties’ intention hereby to settle and to release, fully, finally and forever, all of the claims known or unknown, suspected or unsuspected, which they now have or may have against each other that arise out of or relate to the allegations set forth in the Action. In furtherance of such intention, the releases, given by the Releasing Parties shall be and remain in effect notwithstanding the discovery or existence of any such additional different claims or facts.
39561.221117691.1
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Plaintiffs, on behalf of themselves and each of their respective officers, directors, shareholders, empkyees, representatives, partners, joint venturers, agents, attorneys, insurers, assigns, predecessors and successors-in-interest, and anyone acting on their behalf (collectively, the “Plair
action
tiff Parties”) shall and do hereby release, abandon, and waive any and all claims, causes of , damages, debts, demands, dues, rights of action, suits, sums of money, variances, or obligations; of any kind or nature whatsoever, whether or not now known, matured or unmatured, liquid ited or unliquidated, absolute or contingent, suspected or unsuspected, that they may have, hold, or own, or might have had, held, or owned against the City and the City’s respective officials, agents
“City
to the
, attorneys, employees, insurers, officers, representatives, and successors (collectively, the Parties”), up to and including the date this Agreement is executed that arise out of or relate Action.
7. j City’s Release of Claims. Except for the obligations set forth in this Agreement and at y claims relating to a breach of any obligation of Plaintiffs under this Agreement, the City Parties, shall and do hereby release, abandon, and waive any and all claims, causes of action, damages, debts, demands, dues, rights of action, suits, .sums of money, variances, or obligations of any kind or nature whatsoever, whether or not now known, matured or unmatured, liquidated or uni -quidated, absolute or contingent, suspected or unsuspected, that they may have, hold, or own, qr might have had, held, or owned against the Plaintiff Parties, up to and including the date this Agreement is executed that arise out of or relate to the Action.
8. ; Waiver of Section 1542. By initialing below, to the fullest extent permitted by te Plaintiff Parties and the City Parties (collectively, the “Releasing Parties”), with respect law, th to the releases set forth in Sections 6 and 7 of this Agreement, waive any rights or benefits available to them under California Civil Code section 1542, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES
: NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
; FAVOR AT THE TIME OF EXECUTING THE RELEASE
AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR SED PARTY.
Hanlees Plaintiffs Stead ntiffs City
lection with such waiver and relinquishnjent, the Releasing Parties hereby acknowledge
i ?y are aware that they or their attorneys/may discover claims or facts in addition to or :pt from those which they now know or believe to exist with respect to the subject matter of jeement or otherwise, but that it is each of the Releasing Parties’ intention hereby to settle release, fully, finally and forever, all of the claims known or unknown, suspected or In con
that th
differe
this Aj
and to
unsuspected, which they now have or may have against each other that arise out of or relate to the allegations ht forth in the Action. In furtherance of such intention, the releases given by the Releasing Parties shall be and remain in effect notwithstanding the discovery of existence of any such additional different claims or facts.
39561.221117691.1
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01337.0039/982293.7
9. Negotiated Settlement. The discussions that produced this Agreement have been conducted with the express understanding between the Parties that they are privileged under California Evidence Code Section 1152, and that such discussions occurred without prejudice to the position of either Party and may not be used in any manner in any proceeding or otherwise, except as may be necessary to enfor ce or interpret this Agreement , or as otherwise required by law.
10. Attorneys’ Fees and Costs. Each Party is to bear its own attorneys’ fees and costs incurred with respect to the Complaint, the Action, and events leading up to and following the Complaint, including the preparation and execution of this Agreement; provided, however, that in the event of any legal action to enforce this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including reasonable attorneys’ fees.
11. Voluntary Agreement; Advice of Legal Counsel. The Parties acknowledge that they enter into this Agreement of their own free will; that they have been supplied with and have had had an opportunity to review this Agreement thoroughly with counsel or a repre sentative of their own choosing. The Parties further warrant that they fully understand the effect of this Agreement, approve and accept the terms and provisions of this Agreement, agree to be bound hereby, and each signs this Agreement of their own free will.
12. Authority to Execute. The undersigned each represent and warrant that they have the right, power, legal capacity, and authority to execute this Agreement on behalf of the Party they represent. Each Party represents and warrants to the other Part y that the individual signing this Agreement has full authority to execute this Agreement on its behalf, that such individual is acting with the scope of such authority, and that this Agreement is binding upon such Party. Each Party also represents and warr ants that no further approval or consent of any person or entity is necessary for them to enter into and to perform its obligations contained in this Agreement.
13. Successors and Assigns . This Agreement is binding upon and will inure to the benefit of any successors and assigns of the Parties.
14. No Third Party Beneficiaries . This Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns.
15. Construction. This Agreement and its reduction to final written form is the result of good faith negotiations between the Parties through their respective counsel, and any statute or rule of construction that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.
16. Modification. This Agreement may not be modified, altered, amended, or otherwise changed in any respect except by a writing executed and signed by all Parties to this Agreement.
17. Governing Law. This Agreement shall be governed by, construed and interpreted in accordance with the laws of the State of California without regard to its principles of conflicts of laws.
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01337.0039/982293.7
18. Counterparts. This Agreement may be executed in counterparts or by e-mailed signatures, each of which shall be deemed an original, and all counterparts together constitute one and the same instrument.
19. No Admission of Liability. The Parties each understand and agree that the execution of this Agreement does not constitute any admission or concession of liability by any of the Parties on account of any matter related to the subject of this Agreement, liability for which is expressly denied by each of Parties.
20. Parties Bound and Benefited . This Agreement shall be binding upon and inure to the benefit of Plaintiffs, Defendants, and each of their present and former agents, employees, representatives, partners, heirs, beneficiaries, advisors, trustees, co -trustees, attorneys, insurers, shareholders, officers, directors, corporate parents, subsidiaries, affiliates, assigns, and predecessors and successors-in-interest, and anyone acting on their behalf.
21. Cooperation. The Parties shall reasonably cooperate with one another to achieve the objectives and purposes in connection with this Agreement. In so doing, the Parties shall each refrain from doing anything that would render its performance under this Agreement impossible and each must do everything that this Agreement contemplates that the Party shall do to accomplish the objectives and purposes of this Agreement. In all situations arising out of this Agreement, the Parties must each attempt to avoid and minimize the damage s resulting from the conduct of the other and must take all reasonably necessary measures to achieve the provisions of this Agreement.
22. Headings. The section headings appearing in this Agreement are inserted only as a matter of convenience and in no way al ter, modify, or limit the scope of any portion of this Agreement.
23. Integration. This Agreement contains the entire agreement among the Parties with respect to the matters referred to herein and supersedes all prior agreements (written or oral), drafts, negotiations and communications with respect to those matters.
[Signatures on following pages]
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01337.0039/982293.7
IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first written above.
DEFENDANT:
CITY OF RICHMOND, a charter city of the
State of California
Eduardo Martinez, Mayor
ATTEST:
Pamela Christian, City Clerk
Approved as to Form:
David J. Aleshire, City Attorney
Docusign Envelope ID: F3C96F7B-2048-4C1F-845D-69196E1D6EAF 240
PLAINTIFFS: DKD OF HILLTOP, INC., a California
corporation, dba HANLEES HILLTOP BUICK
GMC
HANLEES HILLTOP, INC., a California
corporation, dba HANLEES HILLTOP TOYOTA
LEEHAN. INC., a California corporation, dba
HANLEES HILLTOP NISSAN
HANLEES SEVEN, INC., a California
corporation, dba HANLEES HILL I OP
HYUNDAI
MICHAEL C. STEAD INC., a California
corporation, dba HILLTOP FORD/K1A
MICHAEL STEAD’S AUTO DEPOT INC., a
California corporation, dba HILLTOP
CHRYSLER JEEP DODGE
39561.2 21117691.1
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PLAINTIFFS: DKD OF HILLTOP, INC., a California
corporation, dba .HANLEES HILLTOP BUICK
GMC
HAN LEES HILLTOP, INC., a California
corporation, dba HANLEES HILLTOP TOYOTA
LEEHAN, INC., a California corporation, dba
HANLEES HILLTOP NISSAN
HANLEES SEVEN, INC., a California
corporation, dba HANLEES HILLTOP
HYUNDAI
MICHAEL C. STEAD INC., a California
corporatipaT^aHlLUTOP FORD/KIA
Attorney for Plaintiffs
39561.2 21117691.1
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ORDINANCE NO. N.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RICHMOND AMENDING CHAPTER 7.04 TO THE CITY OF RICHMOND MUNICIPAL CODE ENTITLED “BUSINESS LICENSES”
The City Council of the City of Richmond do ordain as follows:
SECTION 1. Section 7.04.130 of the City of Richmond Municipal Code is hereby amended to read as follows:
7.04.130 Business Activity Classifications Class
Class Industry
A Retail Sales
B Grocers
C Automobile Sales, Manufacturing
D Recreation and Entertainment
E Hotel/Motel
F Construction contractor
G Business and personal services
H Professional/semi-professional service
I Administrative headquarters (payroll
based, not gross receipts)
J Miscellaneous
K Residential and Commercial Rentals
L Cannabis
M Firearms Ammunition
N Taxi and limousine service
O Transportation, trucking
P Wholesale
Q Automobile Dealers
SECTION 2. Section 7.04.205 of the City of Richmond Municipal Code is hereby amended to read as follows:
243
7.04.205 Tax Rates for Class A through Class J, Class P, and Class Q — Progressive Rates
K. (k) Class Q. PersonsBusiness engaged in Class Q business activities shall pay a as follows:
If annual gross receipts are is: Then the business tax is:
Not over $1,000,000 $1.00 per $1,000 of annual gross
receipts
Over $1,000,000 but not over
$2,500,000
$1,000, plus $1.30 per $1,000 of annual
gross receipts over $1,000,000
Over $2,500,000 but not over
$25,000,000
$2,950, plus $1.60 per $1,000 of annual
gross receipts over $2,500,000
Over $25,000,000 but not over
$50,000,000
$38,950, plus $1.90 per $1,000 of
annual gross receipts over $25,000,000
Over $50,000,000 $86,450, plus $2.20 per $1,000 of
annual gross receipts over $50,000,000
SECTION 3. If any section, subsection, paragraph, sentence, clause, or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid, the remaining portions of this Ordinance shall remain in full force and effect. The City Council hereby declares that it would have passed each section, subsection, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, paragraph, sentence, clause or phrase.
SECTION 4.
This Ordinance becomes effective thirty (30) days after its final passage and adoption.
*****************************
(This section to be completed by Clerk’s Office)
First introduced at a regular meeting of the City Council of the City of Richmond held on _____________ and finally passed and adopted at a regular meeting held on ___________ by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
________________________________________
244
Clerk of the City of Richmond
(SEAL)
Approved:
_______________________________
Mayor
Approved as to form:
____________________________
City Attorney
245
ORDINANCE NO. N.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RICHMOND AMENDING CHAPTER 7.04 TO THE CITY OF RICHMOND MUNICIPAL CODE ENTITLED “BUSINESS LICENSES”
The City Council of the City of Richmond do ordain as follows:
SECTION 1. Section 7.04.130 of the City of Richmond Municipal Code is hereby amended to read as follows:
7.04.130 Business Activity Classifications Class
Class Industry
A Retail Sales
B Grocers
C Manufacturing
D Recreation and Entertainment
E Hotel/Motel
F Construction contractor
G Business and personal services
H Professional/semi-professional service
I Administrative headquarters (payroll
based, not gross receipts)
J Miscellaneous
K Residential and Commercial Rentals
L Cannabis
M Firearms Ammunition
N Taxi and limousine service
O Transportation, trucking
P Wholesale
Q Automobile Dealers
SECTION 2. Section 7.04.205 of the City of Richmond Municipal Code is hereby amended to read as follows:
246
7.04.205 Tax Rates for Class A through Class J, Class P, and Class Q — Progressive Rates
K. Class Q. Persons engaged in Class Q business activities shall pay a business tax as follows:
If annual gross receipts are: Then the business tax is:
Not over $1,000,000 $1.00 per $1,000 of annual gross
receipts
Over $1,000,000 but not over
$2,500,000
$1,000, plus $1.30 per $1,000 of annual
gross receipts over $1,000,000
Over $2,500,000 but not over
$25,000,000
$2,950, plus $1.60 per $1,000 of annual
gross receipts over $2,500,000
Over $25,000,000 but not over
$50,000,000
$38,950, plus $1.90 per $1,000 of
annual gross receipts over $25,000,000
Over $50,000,000 $86,450, plus $2.20 per $1,000 of
annual gross receipts over $50,000,000
SECTION 3. If any section, subsection, paragraph, sentence, clause, or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid, the remaining portions of this Ordinance shall remain in full force and effect. The City Council hereby declares that it would have passed each section, subsection, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, paragraph, sentence, clause or phrase.
SECTION 4.
This Ordinance becomes effective thirty (30) days after its final passage and adoption.
*****************************
(This section to be completed by Clerk’s Office)
First introduced at a regular meeting of the City Council of the City of Richmond held on _____________ and finally passed and adopted at a regular meeting held on ___________ by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
________________________________________
247
Clerk of the City of Richmond
(SEAL)
Approved:
_______________________________
Mayor
Approved as to form:
____________________________
City Attorney
248
December 17, 2024
City Attorney's Office
DATE: December 17, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Shannon Moore, Chief Assistant City Attorney
Subject:
First Amendments to the Legal Services Agreements with
Nevers, Palazzo, Packard, Wildermuth & Wynner, P.C.,
and Bertrand, Fox, Elliot, Osman, & Wenzel for
Winehaven
FINANCIAL IMPACT: These agreements are funded from the City Attorney’s Office budget in account string 01151014-400206. They
were originally to be funded from the $1.6 million annual LSA with Alshire & Wynder for City Attorney services.
However, the $1.6 million appropriation was exceeded in FY 2022-23. As such, a second item is on the agenda
this evening, W.1.d, to add additional funding to the
Alshire & Wynder LSA contract. These actions will also
impact mid-year budget adjustments for FY 2024-2025.
PREVIOUS COUNCIL
ACTION:
October 17, 2023
February 6, 2024
STATEMENT OF THE
ISSUE:
To continue receiving appropriate representation
defending the City in Winehaven Legacy LLC v. City of
Richmond and other related matters, the City Attorney
requires approval of first amendments to the legal
services agreements with Nevers, Palazzo, Packard,
Wildermuth & Wynner, PC, and Bertrand, Fox, Elliot,
Osman, and Wenzel.
AGENDA
REPORT
249
December 17, 2024
RECOMMENDED ACTION: APPROVE first amendments to the legal services agreements with: 1) Nevers, Palazzo, Packard,
Wildermuth & Wynner, PC, to add $200,000 for an
amount not to exceed $375,000 with term ending June
30, 2025; and 2) Bertrand, Fox, Elliot, Osman, & Wenzel to add $200,000 for an amount not to exceed $300,000
with term ending June 30, 2026 and APPROPRIATE
$400,000 from the General Fund to cover these fees –
City Attorney’s Office (Shannon Moore 510-620-6505).
DISCUSSION:
Nevers, Palazzo, Packard, Wildermuth & Wynner, P.C. (Nevers Palazzo) currently provides co-defense counsel services defending the City in the ongoing matter of Winehaven Legacy LLC v. City of Richmond (Winehaven Legacy), as well as other matters, filed by attorney Daniel Butt. D. Dennis La was a partner with Aleshire & Wynder (A&W) and the lead attorney defending the City in Winehaven Legacy but lateralled to Nevers Palazzo. Mr. La’s expertise and vast knowledge of the subject matter is necessary to continue to represent the City in the Winehaven Legacy matter and related matters. Rates for Nevers Palazzo are as follows:
Partner - $350 per hour
Associate - $285 per hour
Bertrand, Fox, Elliot, Osman & Wenzel (Bertrand Fox) currently provides co-defense counsel services defending the City in the Winehaven Legacy matter, as well as other related matters. John Salcedo was an associate with A&W and an attorney defending the City in the Winehaven Legacy matter but lateralled to Bertrand Fox. Mr. Salcedo’s expertise and knowledge of the subject Winehaven Legacy matter is necessary to continue to represent the City. The rate for Mr. Salcedo is $285 per hour.
The City Attorney’s Office requests approval of the first amendment to the legal services agreement with Nevers, Palazzo, Packard, Wildermuth & Wynner, PC, increasing the compensation limit by $200,000 for an amount not to exceed $375,000 and term ending June 30, 2025, and a first amendment with Bertrand, Fox, Elliot, Osman & Wenzel by increasing the compensation limit by $200,000 for an amount not to exceed $300,000 with term ending June 30, 2026. The City Attorney’s Office is also asking for a $400,000 budget appropriation and amendment to cover these additional legal fees.
DOCUMENTS ATTACHED:
Attachment 1 – Amendment 1 to legal services agreement with Nevers, Palazzo, Packard, Wildermuth & Wynner, PC (proposed)
Attachment 2 – Original Nevers, Palazzo, Packard, Wildermuth & Wynner, PC LSA 250
December 17, 2024
Attachment 3 – Amendment 1 to legal services agreement with Bertrand Fox Elliot Osman & Wenzel (proposed)
Attachment 4 – Original Bertrand Fox Elliot Osman & Wenzel LSA 251
First Amendment to NPPWW Agreement for Legal Services
DocID #27919v1
A-1
FIRST AMENDMENT TO AGREEMENT FOR LEGAL SERVICES
BETWEEN
THE CITY OF RICHMOND
AND
NEVERS, PALAZZO, PACKARD,
WILDERMUTH & WYNNER, PC
This First Amendment to the Agreement for Legal Services between the City of Richmond (“City”) and NEVERS, PALAZZO, PACKAR D, WILDERMUTH & WYNNER, PC (“Special Counsel ”) (the " First Amendment") is entered into as of NOVEMBER 19TH, 2024, by and between the City and Special Counsel with reference to the following facts:
RECITALS
WHEREAS, the City and Special Counsel entered into that certain Legal Services Agreement (“Original Agreement”) for representation of the City and City-related entities on October 1ST, 2023 for an amount not to exceed One Hundred Seventy Five Thousand Dollars ($175,000) with term ending June 30, 2025; and
WHEREAS, the City now desires for Special Counsel to continue its representation of the City and increase the compensation; and
WHEREAS, the City now desires for Special Counsel to continue its representation of the City and to increase the c ompensation limit by TWO HUNDRED THOUSAND Dollars ($200,000); and
WHEREAS, the City and Special Counsel desire to amend the Original Agreement pursuant to this First Amendment.
NOW, THEREFORE, in consideration of the recitals hereof, and other mutual covenants and promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and Special Counsel agree as follows:
1. Amendment. Exhibit A of the Original Agreement, “Scope of Work and Sch edule of Fees & Charges,” is hereby amended to read as shown in Attachment 1 to this First Amendment.
2. Effect of First Amendment. Except as provided in this First Amendment, all other terms of the Original Agreement shall remain in full force and effect , and this First Amendment increases the compensation limit by TWO HUNDRED THOUSAND Dollars ($200,000).
252
First Amendment to NPPWW Agreement for Legal Services
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3. Counterparts. This First Amendment may be executed in counterparts each of which shall be an original and all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the City and Special Counsel have caused this First Amendment to be effective as of the last date written above.
CITY OF RICHMOND NEVERS, PALAZZO, PACKARD,
WILDERMUTH & WYNNER, PC
________________________ By __________________________ Mayor
Title _________________________
Attest:
By: _____________________
City Clerk
Approved as to form:
By: _____________________
City Attorney
253
First Amendment to NPPWW Agreement for Legal Services
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Attachment 1
SCOPE OF WORK AND SCHEDULE OF FEES & CHARGES
Scope of work:
Special Counsel shall associate as co-defense counsel with Aleshire & Wydner, LLP firm to defend the City on the lawsuit captioned Winehaven Legacy LLC v. City of Richmond, et al., and other related matters.
Special Counsel’s point(s) of contact in the City of Richmond City Attorney’s office is/are:
Shannon L. Moore, Chief Assistant City Attorney
Schedule of Fees & Charges:
Hourly Rates
PARTNER(S) $350/hour
ASSOCIATE(S) $285/hour
COMPENSATION
Only those costs and expenses set forth in Section III of Exhibit "B", entitled "Reimbursements" shall be paid to Special Counsel.
Total compensation for legal services and reimbursements shall be charged in accordance with Exhibits "A" and "B" and shall not exceed the sum of THREE HUNDRED SEVENTY FIVE THOUSAND DOLLARS ($375,000.00) for attorneys’ fees and reimbursements.
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First Amendment to BFEOW Agreement for Legal Services
A-1
FIRST AMENDMENT TO AGREEMENT FOR LEGAL SERVICES
BETWEEN
THE CITY OF RICHMOND
AND
BERTRAND FOX ELLIOT OSMAN & WENZEL
This First Amendment to the Agreement for Legal Services between the City of Richmond (“City”) and BERTRAND FOX ELLIOT OSMAN & WENZEL (“Special Counsel”) (the " First Amendment") is entered into as of NOVEMBER 19th, 2024, by and between the City and Special Counsel with reference to the following facts:
RECITALS
WHEREAS, the City and Special Counsel entered into that certain Legal Services Agreement (“Original Agreement”) for representation of the City and City-related entities on February 6, 2024 for an amount not to exceed One Hundred Thousand Dollars ($100,000) with term ending June 30, 2026; and
WHEREAS, the City now desires fo r Special Counsel to continue its representation of the City and increase the compensation; and
WHEREAS, the City now desires for Special Counsel to continue its representation of the City and to increase the compensation limit by TWO HUNDRED THOUSAND Dollars ($200,000); and
WHEREAS, the City and Special Counsel desire to amend the Original Agreement pursuant to this First Amendment.
NOW, THEREFORE, in consideration of the recitals hereof, and other mutual covenants and promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and Special Counsel agree as follows:
1. Amendment. Exhibit A of the Original Agreement, “Scope of Work and Schedule of Fees & Charges,” is hereby amended to read as shown in Attachment 1 to this First Amendment.
2. Effect of First Amendment. Except as provided in this First Amendment, all other terms of the Original Agreement shall remain in full force and effect , and this First Amendment increases the compe nsation limit by TWO HUNDRED THOUSAND Dollars ($200,000).
3. Counterparts. This First Amendment may be executed in counterparts each of which shall be an original and all of which shall constitute one and the same instrument. 277
First Amendment to BFEOW Agreement for Legal Services
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IN WITNESS WHEREOF , the City an d Special Counsel have caused this First Amendment to be effective as of the last date written above.
CITY OF RICHMOND BERTRAND FOX ELLIOT OSMAN &
WENZEL
________________________ By __________________________ Mayor
Title _________________________
Attest:
By: _____________________
City Clerk
Approved as to form:
By: _____________________
City Attorney
278
First Amendment to BFEOW Agreement for Legal Services
A-3
Attachment 1
SCOPE OF WORK AND SCHEDULE OF FEES & CHARGES
Scope of work:
Special Counsel shall associate as co-defense counsel with Aleshire & Wydner, LLP firm to defend the City on the lawsuit captioned Winehaven Legacy LLC v. City of Richmond, et al., and other related matters.
Special Counsel’s point(s) of contact in the City of Richmond City Attorney’s office is/are:
Shannon L. Moore, Chief Assistant City Attorney
Schedule of Fees & Charges:
Hourly Rates
JOHN SALCEDO—ASSOCIATE $285/HOUR
COMPENSATION
Only those costs and expenses set forth in Section III of Exhibit "B", entitled "Reimbursements" shall be paid to Special Counsel.
Total compensation for legal services and reimbursements shall be charged in accordance with Exhibits "A" and "B" and shall not exceed the sum of THREE HUNDRED THOUSAND DOLLARS ($300,000) for attorneys’ fees and reimbursements.
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December 17, 2024
DocID #27122v1
City Attorney's Office
DATE: December 17, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Shannon Moore, Chief Assistant City Attorney
Andrea Miller, Finance Director
Mubeen Quader, Deputy Director of Finance
Subject: Appropriation of funds and first amendment to Legal Services Agreement for City Attorney with Aleshire &
Wynder, LLP
FINANCIAL IMPACT: The legal services agreement with Aleshire & Wynder, LLP costs approximately $400,000 per quarter, for a total annual contract amount of $1,600,000, and is funded
from account string 01151014-400206. The Aleshire &
Wynder annual contract is to pay for legal services from Nevers, Palazzo, Packard, Wildermuth & Wynner
(attorney Dennis La, contract not to exceed $375,000)
and Fox, Bertrand, Elliot, Osman & Wenzel (attorney
John Salcedo, contract not to exceed $300,000) –
agenda item W.1.b. Since the City has appropriated and is paying for these legal services under separate
contracts, the Aleshire & Wynder total annual contract for FY 2024-2025 will be $925,000. Funds amounting to
$154,626.48 for Aleshire & Wynder were inadvertently
paid from the FY 2023-2024 budget and should have
been paid from the FY 2022-2023 budget bringing the
appropriation for the Aleshire & Wynder contract to
$1,079,626.48 for Fiscal Year (FY) 2024-2025.
PREVIOUS COUNCIL
ACTION:
July 19, 2022
AGENDA
REPORT
303
December 17, 2024
DocID #27122v1
STATEMENT OF THE
ISSUE:
Due to an administrative error, the City Attorney
Department’s FY2023-2024 budget was used to pay
legal invoices for Aleshire & Wynder for City Attorney
services from the City Attorney Department’s FY 2022-
2023 budget. The City Attorney’s Office requests
approval of an appropriation from the General Fund in
the amount of $154,626.48 and approval of a First
Amendment to the legal services agreement with
Aleshire & Wynder, LLP, in the amount of $154,626.48 to cover the shortfall.
RECOMMENDED ACTION: APPROPRIATE $154,626.48 from the General Fund to the City Attorney Department’s Fiscal Year 24-25 budget and APPROVE a first amendment to the legal services
agreement with Aleshire & Wynder, LLP, to increase the
compensation by $154,626.48, for an amount not to
exceed $1,079,626.48, for City Attorney services - City Attorney’s Office (Shannon Moore 510-620-6509/Andrea
Miller 510-620-6790).
DISCUSSION:
Aleshire & Wynder, LLP (A&W), and its partner, David J. Aleshire, currently provide City Attorney services for the City of Richmond. David Aleshire was appointed interim City Attorney on December 21, 2021, and appointed as the permanent City Attorney by City Council on July 19, 2022.
Due to an administrative error, funds from the City Attorney Department’s Fiscal Year (FY) 2023-2024 budget were used to pay invoices for services rendered in FY 2022- 2023. The legal services agreement with Aleshire & Wynder, LLP costs approximately $400,000 per quarter, for a total annual contract amount of $1,600,000. For FY 2022- 2023, Aleshire & Wynder exceeded the $1.6 million contract amount and funds from the City Attorney Department’s FY 2023-2024 budget were used to pay the amount that the firm exceeded in FY 2022-2023. The additional funds were not budgeted in the FY 202 4-2025 budget and a budget appropriation of $154,626.48 from the General Fund is requested . The chart below shows the yearly balances and estimated invoices of $154,626.48.
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December 17, 2024
DocID #27122v1
P aid Y
S um of A mountColumn L abels A nnual
Row L abels 2022 2023 2024 Grand T otal Contract B alance 22200879 487,950.25 487,950.25 487,950.25 - 23200444 4,817.50 1,410,046.36 1,414,863.86 1,600,000.00 185,136.14 24200404 442,881.55 1,326,149.97 1,769,031.52 1,600,000.00 (169,031.52) 25200333 541.00 541.00 (541.00) Grand T otal 492,767.75 1,852,927.91 1,326,690.97 3,672,386.63 3,687,950.25 15,563.62 E stimated invoices for F Y 23/24 154,626.48
T otal amount above the contract (139,062.86)
Two Aleshire & Wynder attorneys are legal counsel for Point Molate and other City litigation. The two attorneys are Dennis La and John Salcedo. Dennis La is now employed with the law firm Nevers, Palazzo, Packard, Wildermuth & Wynner and John Salcedo is now employed with Bertrand, Fox, Elliot, Osman & Wenzel. The City has a contract with Nevers, Palazzo, Packard, Wildermuth & Wynner in an amou nt not to exceed $375,000 and a contract with Bertrand, Fox, Elliot, Osman & Wenzel in an amount not to exceed $300,000. Please see agenda item W .1.b. Dave Aleshire has decided to fund their services from the Aleshire & Wynder contract with the City.
Therefore, the Aleshire & Wynder contract amount is to fund these legal services resulting in an annual contract of $925,000 ($1,600,000 - $375,000- $300,000 = $925,000). Adding the $154,626.48 to the $975,000 will result in an annual contract for Aleshire & Wynder for FY 2024-2025 of 1,079,626.48.
DOCUMENTS ATTACHED:
Attachment 1 – Amendment 1 (proposed)
Attachment 2 – Original Legal Services Agreement with Aleshire & Wynder, LLP
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First Amendment to Aleshire & Wynder LSA for City Attorney Services DocID #27116v1
A-1
FIRST AMENDMENT TO AGREEMENT FOR CITY ATTORNEY SERVICES
BETWEEN THE CITY OF RICHMOND
AND
ALESHIRE & WYNDER, LLP
This First Amendment to the Agreement for City Attorney Services between the City of Richmond (“City”) and David J. Aleshire , Partner at the law firm ALESHIRE & WYNDER, LLP (“Special Counsel”) (the "First Amendment") is entered into as of December 17, 2024, by and between the City and Special Counsel with reference to the following facts:
RECITALS
WHEREAS, the City and Special Counsel entered into that certain Legal Services Agreement (“Original Agreement”) for City Attorney services on July 19, 2022, for an amount of $400,000 per quarter, not to exceed $1,600,000 annually; and
WHEREAS, Dennis La and John Salcedo were Aleshire & Wynder attorneys and were legal counsel for Point Molate and other City litigation and Dennis La is now employed with the law firm Nevers, Palazzo, Packard, Wildermuth & Wynner and John Salcedo is now employed with Bertrand, Fox, Elliot, Osman & Wenzel; and
WHEREAS, the City has entered into a contract with Nevers, Palazzo, Packard, Wildermuth & Wynner in an amount not to exceed $375,000 and a contract with Bertrand, Fox, Elliot, Osman & Wenzel in an amount not to exceed $300,000; and
WHEREAS, these attorneys have extensive experience and knowledge regarding City litigation, Dave Aleshire has decided to fund their services; and
WHEREAS, the Aleshire & Wynder contract is to pay for these legal services resulting in Fiscal Year (FY) 2024-2025 annual contract of $925,000 ($1,600,000 - $375,000- $300,000 = $925,000); and
WHEREAS, the City now desires for Special Counsel to continue its representation of the City and increase the compensation by $ 154,626.48 to cover a shortfall caused by administrative error wherein the FY 2023-2024 budget was used to pay for FY 2022- 2023 invoices due to Special Counsel going over budget; and
WHEREAS, the City and Special Counsel desire to further amend the Original Agreement pursuant to this First Amendment.
NOW, THEREFORE, in consideration of the recitals hereof, and other mutual covenants and promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and Special Counsel agree as follows:
1. Effect of First Amendment. Except as provided in this First Amendment, all other terms of the Original Agreement shall remain in full force and effect, and this First Amendment is to:
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Increase the compensation by $154,626.48 to cover a shortfall caused by administrative error wherein the FY2023-2024 budget was used to pay for FY2022-2023 invoices due to Special Counsel going over the $1.6 million annual contract limit.
Reflect the Aleshire & Wynder annual contract for FY2024-2025 (July 1, 2024 – June 30, 2025) of $925,000 ($1,600,000 - $375,000 - $300,000 = $925,000).
Since the Aleshire & Wynder annual contract is to pay for legal services from Nevers, Palazzo, Packard, Wildermuth & Wynner (attorney Dennis La, contract not to exceed $375,000) and Fox, Bertrand, Elliot, Osman & Wenzel (attorney John Salcedo, contract not to exceed $300,000).
Result in a total annual contract for Aleshire & Wynder for FY2024-2025 (July 1, 2024 – June 30, 2025) in an amount not to exceed $1,079,626.48 ($925,000 + $154,626.48 = $1,079,626.48).
2. Counterparts. This First Amendment may be executed in counterparts each of which shall be an original and all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF , the City and Special Counsel have caused this First Amendment to be effective as of the last date written above.
CITY OF RICHMOND ALESHIRE & WYNDER, LLP
________________________ By __________________________ Mayor
Title _________________________
Attest:
By: _____________________
City Clerk
Approved as to form:
By: _____________________
City Attorney
332
December 17, 2024
DocID #32223v1
City Clerk's Office
DATE: December 17, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Pamela Christian, City Clerk
Subject:
Canvass of Returns, November 5, 2024, General
Election
FINANCIAL IMPACT: None
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
The City Council must adopt a resolution confirming and accepting the final results of the votes cast in the
November 5, 2024, General Municipal Election. This
resolution must be adopted before the newly elected
Mayor and Councilmembers are sworn in on January 14,
2025.
RECOMMENDED ACTION:
ADOPT a resolution Declaring the Canvass of Returns
and Results of the General Municipal Election held on
November 5, 2024 – City Clerk’s Office (Pamela
Christian 510-620-6513).
BACKGROUND
On June 4, 2024, the City of Richmond adopted Resolution No. 47-24 calling and giving notice of the holding of a municipal election to be held on Tuesday, November 5, 2024 for the election of certain officers as required by the provisions of the Charter of Richmond, requesting the Board of Supervisors of the County of Contra Costa to consolidate the municipal election with the statewide general election to be held on November 5, 2024, and adopting regulations for candidates for elective office AGENDA
REPORT
333
December 17, 2024
DocID #32223v1
pertaining to candidates’ statements submitted to the voters, costs of candidates’ statements and other fees, word limit for candidates’ statements, and action to be taken in case of a tie vote (Attachment 3) .
Pursuant to the provisions of the Elections Code, the Contra Costa County Elections Department canvassed the returns of the votes cast in the City of Richmond at the General Election held on November 5, 2024, for candidates for Districts 1, 5, and 6, and two ballot measures (J – Election Reform Act and L - Instant Runoff Election) submitted to the electorate.
On December 3, 2024, County Clerk Kristin Connelly certified the results of the election (Attachment 2). The City Council must now adopt a resolution confirming and accepting the final results of the votes cast in the November 5, 2024, General Municipal Election, before the newly elected and/or reelected councilmembers are sworn in on January 14, 2025 (Attachment 1).
DOCUMENTS ATTACHED:
Attachment 1 - Resolution Certifying the Canvass of the November 5, 2024, General Election
Attachment 2 - Certification of County Clerk as to the results of the Canvass of the City of Richmond - November 5, 2024, General Election
Attachment 3 – Resolution No. 47-24 – Calling for the November 5, 202 4, General Election
334
Reso. No.
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA, DECLARING THE CANVASS OF RETURNS AND RESULT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 5, 2024, TO ELECT MUNICIPAL OFFICERS FOR DISTRICTS 1, 5, AND 6, AND MEASURES
J (RICHMOND ELECTION REFORM ACT) AND L (INSTANT RUNOFF
VOTING)
WHEREAS, the General Municipal election for the City of Richmond was duly called and legally held on Tuesday, the 5th day of November 2024, as provided by law, to elect municipal officers; and
WHEREAS, the qualified electors, including absent voters, cast ballots at said election for the following proposed competing Measures:
MEASURE J
“Shall the Charter of the City of Richmond be amended to reform the election process in the City of Richmond to improve accountability, governance, and strengthen representation by adding a nonpartisan primary municipal election to the City’s election process?”
MEASURE L
“Shall the City of Richmond Charter be amended to authorize use of instant runoff voting, also known as ranked choice voting, to allow Richmond voters to rank Mayor and City Council election candidates in order of preference on their ballots, intended for implementation for the November 2026 election, and upon adoption of an implementing ordinance by the Richmond City Council?”
WHEREAS, said General Municipal Election was held on Tuesday, November 5, 2024, in accordance with law and the Charter of said City and with Chapter 2.16 of the Municipal Code of the City of Richmond, and the votes thereat received and canvassed, and the returns thereof ascertained, determined, and declared in all respects as required by law.
NOW THEREFORE BE IT RESOLVED by the Council of the City of Richmond, as follows:
1. That the statement of the County Clerk of the County of Contra Costa of the votes casts, set forth in Exhibit “A” attached hereto and by this reference made a part hereof, is hereby approved and adopted and is hereby entered on the Minutes of this Council as a statement of the result of said election.
2. That the total number of votes given to the three positions of Councilmember was as follows:
COUNCILMEMBER – DISTRICT 1 (Four Year Term)
JAMELIA BROWN 1,852 – 49.48%
MELVIN LEE WILSON JR 1,495 – 39.94%
MARK WASSBERG 396 – 10.58%
COUNCILMEMBER – DISTRICT 5 (Four Year Term)
SUE WILSON 4,079 – 56.47%
AHMAD ANDERSON 3,144 – 43.53%
335
Reso. No.
COUNCILMEMBER – DISTRICT 6 (Four Year Term)
CLAUDIA JIMENEZ 4,232 – 61.40%
SHAWN DUNNING 2,661 – 38.60%
3. That at said General Municipal Election the following named persons received the largest number of votes for the office of Councilmember within their district and were, therefore, duly elected to the office for which they were a candidate, and each having received the largest number of votes cast for any person for such office is hereby declared to be duly and regularly elected to such office for the term commencing January 14, 2025, and the City Clerk is hereby directed to issue a Certificate of Election to each of said persons, certifying their election to the office appearing after their name, and to administer to each of said persons the oath of office prescribed by the Constitution and laws of the State of California and the Charter of said City, to wit:
Jamelia Brown Councilmember – District 1 (four-year term) Sue Wilson Councilmember – District 5 (four-year term) Claudia Jimenez Councilmember – District 5 (four-year term)
6. That at said General Municipal Election Measures J and L were competing measures and the measure with the majority votes shall pass, and the other measure shall be void in its entirety.
7. That at said General Municipal Election Measure J received a majority of the votes cast supporting said measure and was, duly approved, to wit:
Measure J – Richmond
Election Reform Act
“Shall the Charter of the City of
Richmond be amended to reform the
election process in the City of
Richmond to improve accountability,
governance, and strengthen
representation by adding a nonpartisan
primary municipal election to the
City’s election process?”
Total Yes
(20,645) – 58.12%
Total No
(14,879) – 41.88%
Measure L – Instant Run-Off
Voting
“Shall the City of Richmond Charter
be amended to authorize use of instant
runoff voting, also known as ranked
choice voting, to allow Richmond
voters to rank Mayor and City Council
election candidates in order of
preference on their ballots, intended
for implementation for the November
2026 election, and upon adoption of an
implementing ordinance by the
Richmond City Council?”
Total Yes
(19,284) – 54.39%
Total No
(16,168) – 45.61%
336
Reso. No.
I certify that the foregoing resolution was adopted by the Council of the City of Richmond at a regular meeting held on December 17, 2024, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
______________________________
Clerk of the City of Richmond
Approved:
Mayor
Approved as to form:
City Attorney
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341
342
343
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December 17, 2024
City Clerk's Office
DATE: December 17, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Pamela Christian, City Clerk
Subject:
Amendments and Updates to the Boards and
Commissions Handbook
FINANCIAL IMPACT: There is no financial impact with this item
PREVIOUS COUNCIL
ACTION:
3/1/2022
STATEMENT OF THE
ISSUE:
The Boards and Commissions Handbook requires
Council final approval of the proposed updates
RECOMMENDED ACTION:
APPROVE amendments to the Boards and Commissions
Handbook to address members reapplying to the same
board, commission, or committee after a waiting period
and the process for members to obtain a Gmail account
for City of Richmond business only – City Clerk’s Office (Pamela Christian 510-620-6513).
DISCUSSION:
On April 27, 2021, the City Council adopted Resolution No. 45-21 to formally approve its Boards, Commissions and Committees Handbook with the understanding that the handbook's contents would be subject to change when necessary. The handbook was revised on March 1, 2023, to clarify the process when a conflict arises between any provision in the Boards, Commission and Committees Handbook and a board, AGENDA
REPORT
345
December 17, 2024
commission, and committee adopted ordinance, the provision in the perspective ordinance prevails and overrules any other provision.
The City of Richmond Charter, Municipal Code, and Boards, Commissions and Committees Handbook is silent on the issue of reapplying to the same board, commission, or committee after a waiting period. The handbook is also silent regarding city-issued email accounts. The below suggested procedure changes are necessary for clarification.
Suggested changes in red
MEMBERSHIP – starts on page 11
Member Privacy
The City Clerk’s Office does not release the personal contact information of board, commission or committee members without their consent. Requestors will be directed to the staff liaison to verify consent with the member.
Application, Appointments, and Reappointments, and Waiting Period to reapply to the same Richmond board, commission, or committee (Page 11) All residents interested in serving on a City of Richmond board, commission, or committee must complete and submit the appropriate application form (Appendix H) to the city clerk.
Employees cannot serve on any city board, commission, or committee. Recommendations for appointment are made by the mayor and approved by the City Council, with the exception of the Richmond Fund for Children and Youth Oversight Board, appointed by the mayor and City Council.
Any person who has served on a board, commission or committee for a period of less than one full calendar year may be appointed to the same body for a full term.
Reappointment is not automatic; therefore, board members, commissioners, and committee members are required to submit a new application to the city clerk prior to each term expiration date (Appendix B), to be considered for reappointment. Members with expired terms may continue to serve until a replacement appointment has been approved (Appendix C, Resolution 24-14).
A termed-out board, commissioner, or committee member is eligible to reapply for appointment to the same board, commission, or committee after a two-year absence from the board, commission, or committee. If appointed, the terms and maximum consecutive term limits restart.
Use of City Business Cards, Logo, and Insignia, and City Issued Email (Page 13) Board, commission, and committee members may request city business cards, at their own expense, to be used only for official City of Richmond business or promoting the city. The City Clerk’s Office is not responsible for ordering business cards; this is the responsibility of 346
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the staff liaison to order business cards from the city’s approved printing vendor. The City Attorney’s Office advises against individual board members, commissioners, and committee members privately printing their own business cards using the city logo or insignia.
A board, commission, or committee member may request a Gmail account for use while serving a term on a City of Richmond board, commission, or committee. The assigned Gmail account should only be used for City of Richmond official business. Please request a Gmail account through your staff liaison. The staff liaison will contact the appropriate department to begin the process. Please be advised that Gmail accounts may be linked to a member at their respective board, commission, or committee website.
DOCUMENTS ATTACHED:
Attachment 1 – Boards, Commission and Committee Handbook – red lined Attachment 2 – Boards, Commission and Committee Handbook – clean version
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City of Richmond
Boards, Commissions and
Committees Handbook
April 27, 2021
(City Council Resolution No. 45-21)
THE CONTENTS OF THIS HANDBOOK ARE SUBJECT TO CHANGE
Revised 3-1-22
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MESSAGE FROM THE CITY CLERK:
Congratulations on your recent appointment to a City of Richmond board, commission or committee!
This handbook has been prepared to help orient you concerning the functions and duties of the board, commission or committee to which you have been appointed. The handbook is designed to contribute to your general knowledge and understanding of public affairs and to aid in identifying the scope and parameters of your role and responsibilities.
Members of boards, commissions or committees provide a positive service that is invaluable to the continued progress of our city. They may advise the City Council on a wide variety of issues by making recommendations on important policy matters. The detailed studies and considered advice of boards, commissions or committees are often catalysts for innovative programs and improved services.
Serving on a board, commission or committee can be a rewarding experience for community service-minded residents. It is an excellent way to participate in the functioning of local government and to make a personal contribution to the improvement of our community. If we are to have, “Government of the people, by the people, for the people", we must have the continued participation of the many dedicated board, commission and committee members. Making local government effective and responsive is everybody's responsibility.
We hope that you will enjoy your tenure as a vital part of the City’s team and sincerely thank you for your willingness to devote your time and energy to serve your community.
Pamela Christian
Clerk of the City of Richmond
450 Civic Center Plaza, Suite 300
Richmond, CA 94804
Phone: (510) 620-6513
Email: [email protected]
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CITY OF RICHMOND
BOARDS, COMMISSIONS AND COMMITTEES HANDBOOK
Contents
MESSAGE FROM THE CITY CLERK: ...................................................................................................................... 2 BOARD, COMMISSION AND COMMITTEE FUNCTIONS...................................................................................... 5 Quasi-Judicial...................................................................................................................................................... 5 Advisory to the City Manager .............................................................................................................................. 5 Advisory to the Council ........................................................................................................................................ 5 Ad Hoc Committees ............................................................................................................................................ 5 Establishing Ad Hoc Committees ............................................................................................................................ 6 ROLES ................................................................................................................................................................... 6 The Advisory Role ............................................................................................................................................... 6 BOARD, COMMISSION, OR COMMITTEE NORMS .............................................................................................. 7 RESPONSIBILITIES OF BOARD, COMMISSION, OR COMMITTEE MEMBERS .................................................. 7 RELATIONSHIPS ................................................................................................................................................... 8 Working Relationships ......................................................................................................................................... 8 Basic Guidelines ................................................................................................................................................. 8 Relationships with Other Board, Commission, or Committee Members ............................................................... 8 Relationships with City Council Members ............................................................................................................ 9 Relationships with Council and Staff Liaisons...................................................................................................... 9 Relationships with the Public ............................................................................................................................... 9 MEMBERSHIP...................................................................................................................................................... 11 Member Privacy ................................................................................................................................................ 11 Application, Appointments, and Reappointments .............................................................................................. 11 Oath of Office .................................................................................................................................................... 11 Fair Political Practice Commission (FPPC) Filing Requirement and Ethics Training .......................................... 11 Attendance ........................................................................................................................................................ 11 Excused Absences ............................................................................................................................................ 12 A
utomatic Resignation ...................................................................................................................................... 12 Resignation Procedure ...................................................................................................................................... 12 Leaving Office Statement (Form 700) ................................................................................................................ 13 Use of City Business Cards, Logo, and Insignia ................................................................................................ 13 CONFLICT OF INTEREST PROHIBITED ............................................................................................................. 13 Influencing the Making of Contracts and Affecting Other Financial Interests ..................................................... 13 Disclosure Statements Required ....................................................................................................................... 13 Incompatible Public Offices ............................................................................................................................... 14 Incompatible Activities for Compensation .......................................................................................................... 14 BOARD, COMMISSION, AND COMMITTEE ORGANIZATION ............................................................................ 14 Officers Election and Term of Office .................................................................................................................. 14 Duties of Officers ............................................................................................................................................... 15 Transfer of Chair ............................................................................................................................................... 15 Vacancies ......................................................................................................................................................... 15 DEVELOPMENT OF A WORK PROGRAM .......................................................................................................... 15 MEETING BASICS ............................................................................................................................................... 15 Requirement to Meet in Public – Ralph M. “Brown Act” ..................................................................................... 15 Public Meetings and Public Hearings Notice Requirements .............................................................................. 17 Public Access Requirement ............................................................................................................................... 17 Communication and Public Participation Requirement ...................................................................................... 17 Types of Meetings ............................................................................................................................................. 17 Public Hearings..................................................................................................................................................... 17 350
Study Sessions and Workshops............................................................................................................................ 17 Preparation for Meetings ................................................................................................................................... 18 Conduct of Hearing ........................................................................................................................................... 18 Action ................................................................................................................................................................... 19 Recordings of Hearings ........................................................................................................................................ 19 Hearing from the Public ........................................................................................................................................ 19 Impartiality and Standards of "Fair Play" ............................................................................................................... 19 No Quorum – Meeting Cancellation ................................................................................................................... 19 MEETING PROCEDURES ................................................................................................................................... 20 Establishment of Meeting Rules ........................................................................................................................ 20 Chairperson .......................................................................................................................................................... 20 Advisory Body Members ....................................................................................................................................... 20 Addressing the Advisory Body from the Floor ....................................................................................................... 20 Order and Decorum in Meetings ....................................................................................................................... 21 Board, Commission, and Committee Conduct ...................................................................................................... 21 Conduct of Public in Attendance ........................................................................................................................... 21 Rules of Debate .................................................................................................................................................... 21 Interruptions .......................................................................................................................................................... 21 Proceedings .......................................................................................................................................................... 22 Managing Difficult Meetings .................................................................................................................................. 23 CONCLUSION ...................................................................................................................................................... 24 APPENDICES ...................................................................................................................................................... 25 APPENDIX A: Purpose and Function of each City of Richmond Board, Commission and Committee .............. 26 APPENDIX B: Boards, Commissions and Committees Contacts, Terms/Term Limits, Expiration Dates, Meeting Dates/Locations ................................................................................................................................................ 27 APPENDIX C: Resolution No. 24-14 Continuation of Board, Commission and Committee Member Terms ...... 28 APPENDIX D: Code of Ethics .......................................................................................................................... 29 APPENDIX E: Oath of Allegiance ..................................................................................................................... 30 APPENDIX F: Rosenberg’s Rules of Order ...................................................................................................... 31 APPENDIX G: Resolution for Amended Conflict of Interest Code ..................................................................... 32 APPENDIX H-1: Board or Commission Application .......................................................................................... 33 APPENDIX H-2: Community Police Review Commission Application ............................................................... 33 APPENDIX H-3: Personnel Board Application .................................................................................................. 33 APPENDIX H-4: Rent Board Application .......................................................................................................... 33 APPENDIX H-5: Youth Council Application ...................................................................................................... 33 APPENDIX H-6: Workforce Development Board Application ............................................................................ 33
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BOARD, COMMISSION AND COMMITTEE FUNCTIONS
The activities of boards, commissions and committees are varied but generally fall into four categories (Appendix A). Any particular board, commission or committee may belong to one or more of the types listed below and all boards, commissions and committees belong to the third type, advisory to the council. If a conflict arises between any provision in the Boards, Commission and Committees Handbook and a board, commission, and committee adopted ordinance, the provision in the perspective ordinance prevails and overrules any other provision.
Quasi-Judicial
Boards, commissions and committees with authority to make binding decisions that require or restrict the action of individuals are deemed quasi-judicial. For example, the Design Review Board functions as the decision-making body for the design of new development projects and most exterior changes to existing buildings. The Design Review Board also acts as an advisory body to the Planning Commission in cases also involving a land use decision. The Planning Commission acts as an advisory body to the City Council on all planning and development policy issues and is charged with the preparation, maintenance, and implementation of the city's General Plan. The Rent Board establishes base rents, makes adjustments to rents and conducts hearings. Actions of the Rent Board are not appealable to the City Council.
However, actions made by the Design Review Board and Planning Commission may be appealed to the City Council, if the appeal is filed with the city clerk within 10 business days of the board, commission, or committee’s action.
Advisory to the City Manager
The Personnel Board conducts hearings on employee grievances for employees in classified service, reviews all proposed changes, additions or eliminations in the personnel rules that may be presented to the City Council, and advises the city manager, on all policies regarding personnel administration.
Similarly, the Community Police Review Commission investigates complaints against police officers and advises the city manager and the chief of police of its findings.
Advisory to the Council
All boards, commissions, and committees advise the City Council concerning policies and programs.
For example, the Commission on Aging advises the City Council on the needs of senior citizens. The Historic Preservation Commission advises or provides recommendations to the City Council on preserving historic sites but also exercises some quasi-judicial powers where historic resources are involved.
Ad Hoc Committees
Ad hoc or "temporary" committees are treated differently under the Brown Act (see the Meeting Basics section for an explanation of the Brown Act). Ad hoc committees are not subject to the notice and posting requirements of the Brown Act so long as the committee:
1. Consists of less than the number of members which would constitute a quorum;
2. Has a defined purpose and a time frame to accomplish that purpose; and
3. Is advisory, i.e., the committee has not been delegated any decision making power and will be 352
returning to the full board with its recommendation. See, Joiner v. City of Sepastopol (1981) 125 Cal App. 3d 799. Ad hoc committee
Ad hoc committees are commonly used in city government. For example, the chair of a city board/ commission or the board/commission as a whole might choose to appoint three or fewer commissioners (depending upon the size and quorum of the board/commission) to evaluate and report on a particular issue or subject relevant to that board/commission. Once that ad hoc committee has completed its work, the ad hoc committee is then disbanded.
Establishing Ad Hoc Committees
Members of ad hoc committees designed to be advisory to the board/commission may be appointed by the chair, on behalf of the entire board/commission or by an action of the entire board/commission, depending upon the rules under which the board/commission operates. Although, as noted above, the ad hoc committee itself is not subject to the Brown Act, but if the board/commission desires to create an ad hoc committee, the action to create the ad hoc committee must be done at a publicly noticed meeting under the Brown Act and the item placed on an agenda for that purpose.
ROLES
The mayor’s role [per City of Richmond Charter, Article III-A, Sec. 2(c)] is as follows:
• The mayor shall have the authority at any regularly scheduled meeting of the City Council to make appointments to or removals from all city boards, commissions, and committees with the concurrence of a least three (3) other members of the Council.
The City Council’s roles are as follows:
• Make policy.
• Direct city manager to carry out policy.
• Solicit input from boards, commissions or committees on issues in its various functional areas unless there are legal or time constraints.
The Boards’, Commissions’, or Committees’ roles are as follows:
• Advise the Council on policies that assist the Council in carrying out its responsibilities. • Provide citizen input by being positive representatives of a board, commission, committee, and the community.
• Committees may differ in their duties and responsibilities. Many are solely and entirely advisory to the elected body.
The City Council Liaison’s role (an appointed councilmember) is as follows:
• Serve as a conduit between the board or commission and the City Council.
The Technical Staff’s role (a department head) is as follows:
• Research and investigate issues, prepare alternatives and recommendations for review by the applicable board, commission, committee, and/or the Council, and implement the Council’s policy decisions.
The Staff Liaison’s roles are as follows:
• Provide administrative support to the boards, commissions or committees under the guidance of the department head (and ultimately, the city manager), including preparing agendas and meeting minutes and ensuring both are posted on the City’s website in a timely manner.
The Advisory Role
Ad hoc committees are formed for a specific purpose and dissolve after completing their mission. 353
However, standing boards, commissions, and committees are an integral part of the governmental structure.
If the organization is to function effectively, there must be clarity, understanding, and acceptance of the roles assigned to the elected body, boards, commissions, committees, and staff. If advisory board members stray from their original charge and get into areas that rightfully belong to the staff or elected officials, confusion, inaction or destructive conflict can result.
BOARD, COMMISSION, OR COMMITTEE NORMS
As with all working teams, there are written and unwritten rules (norms) that boards, commissions or committees follow. These norms have been established over time and have an original basis that continues to be valid for boards, commissions or committees today.
Some examples are as follows:
• Do your homework.
• Explain actions in concise thoughts.
• Compliment colleagues and staff whenever an opportunity arises. • Where applicable, try to involve residents in a solution. • Work for consensus on important issues.
• Always be on time for meetings.
• Be attentive.
• Do not criticize staff or others in public.
• Only speak on issues if we have something to add.
• Our actions, including voting practices, are governed by ethical and moral principles and beliefs.
RESPONSIBILITIES OF BOARD, COMMISSION, OR COMMITTEE MEMBERS While specific duties of each board, commission, or committee member vary widely with the purpose for which they are formed, there are certain responsibilities that are common to all members. The following is a summary of those responsibilities:
1. Understand your role and scope of responsibility and be informed of the objectives, scope of responsibility and operating procedures of your individual board, commission, or committee.
2. If you represent yourself as a member of a board, commission or committee, you should represent the majority views of your individual board, commission, or committee. Individual “opinions” to the public and press, should be identified as such.
3. Members should represent the public interest and not special interest groups.
4. Members are in a unique position of serving as a liaison between the city and its citizens and can help to reconcile contradictory viewpoints and to build a consensus around common goals and objectives. Members serve as a communication link among the community, staff, and City, presenting city programs and recommendations and providing a channel for citizen expression.
5. Do your homework and be thorough in recommendations by reviewing items prior to the meeting to be fully prepared to discuss, evaluate, and act on all matters scheduled for consideration.
Conclusions based on the same facts will strengthen the value of the group’s recommendations.
6. Supportive relationships with the City Council and city staff are essential for successful operation 354
of any board, commission, or committee. The proper channel to contact city personnel on items of consideration is through the designated city staff liaison providing staff support for your group.
7. Establish a good working relationship with fellow members of your board, commission, or committee. Respect individual viewpoints; allow other members time to present their views fully before making comments; be open and honest; welcome new members and strive to minimize political action on issues.
City Council appointments to boards, commissions or committees are made without regard to political party affiliation. Members are not restricted from participating in political activities. However, members may not use or involve their membership on their respective board, commission or committee in the conduct of political activities.
RELATIONSHIPS
Working Relationships
In public statements or interactions, individual board, commission or committee members should present views and recommendations representing the board, commission, or committee as a body -- not personal individual views. Members expressing views not approved by the majority of a board, commission, or committee should clearly express that their opinions reflect their personal perspective as a “private citizen.” Individual opinions must be identified as such. Public statements should not include promises that may be construed to be binding on the board, commission, committee, City Council or staff. When making a public statement, if applicable, members should indicate that board, commission or committee actions are recommendations and that final action will be taken by the City Council. Members may be selected on the basis of representing defined groups; however, each member should represent the overall “public good,” not an exclusive group, or special interest.
Basic Guidelines
Board, commission or committee members should work to establish good relationships with other board, commission or committee members. The success or failure of board, commission, or committee efforts may be dependent upon the degree of cooperation evident among the individual members of the body.
Relationships with Other Board, Commission, or Committee Members The association with other board, commission or committee members is very important. Before talking about relationships, it may be well to point out a few facts about board, commission and committee members. Members come from various backgrounds - education, occupational, religious, social, economic, physical and cultural - and differences do exist. It is important to recognize that the reasons for serving on a board, commission, or committee will vary and perhaps some will have a special interest. Each member will contribute in his/her own way and is an important part of the decision- making process. Do not expect every member to give of his/her time, talent and knowledge to the same extent. Some will give more, and others will give less, but in the end, the community will benefit.
Bearing this in mind, the following may serve as a guideline:
1. Always respect other individuals’ viewpoints even though they may be the opposite of your own.
2. Allow the other individual to articulate his/her own views and then attempt to make an objective evaluation of those views.
3. Evaluation of other members’ viewpoints should be based on what is best for the total community and for all concerned.
4. There will be times when political action among the board, commission, or committee is apparent; 355
strive to minimize whenever possible.
5. Be open and honest at all times.
6. Each member has a responsibility to see that new members are made welcome, become oriented, and receive training.
Relationships with City Council Members
The purpose of boards, commissions or committees is to expand the opportunity for citizen input and participation, study issues, and make recommendations to the City Council. As an advisor to the City Council, members must be continually aware that the decisions formed by the Council, even after receiving and evaluating the recommendations from the various advisory bodies, are not easily made.
The City Council possesses the ultimate political and legal responsibility for the conduct of local government and the overall welfare of the community. It is important to recognize that not all of the recommendations made by the various boards, commissions, and committees will be accepted by the City Council. City Council actions that vary from board, commission and committee recommendations do not imply a lack of confidence or disinterest in the advisory bodies’ decisions. Councilmembers must weigh the advice provided by advisory bodies against a broader scope of considerations as they reach the decisions for which they are responsible.
Although a board, commission, or committee may disagree with the final decision that the City Council makes on an issue, it should not act in any manner contrary to the established policy adopted by the Council.
Members are expected to recognize the following items:
1. The board, commission or committee should assist the City Council in developing public trust in an advisory system; and
2. Be sensitive to City priorities and know when to take a stand.
Relationships with Council and Staff Liaisons
The council liaison (a councilmember) assigned to a board, commission or committee may provide advice, direction, and guidance. The council liaison also facilitates placing board, commission, or committee recommendations on the City Council agenda for council consideration.
The staff liaison handles administrative duties, prepares meeting agendas, and records minutes.
Members may not direct the staff liaison to initiate programs, conduct major studies or establish official policy without the approval of the City Council.
Members should feel free to contact the assigned staff liaisons for inquiries and/or support purposes. It should be understood, however, that members are responsible for all work for its board, commission, or committee. Staff liaisons may provide clerical and administrative support to boards, commissions or committees on an as-needed basis.
Relationships with the Public
Members serve as a liaison between the city and the general public. Thus, each member functions as a communication link between the community and the city, explaining city programs and recommendations, as well as providing a channel for citizen expression.
Board, commission or committee meetings should be conducted in a manner that is conducive to a productive exchange of ideas and perspectives. A non-threatening atmosphere should be prevalent, 356
and steps should be taken to ensure that members of the public are free to express their views without fear of ridicule or belittlement by anyone with an opposing viewpoint.
Members should conduct themselves in a manner that demonstrates fairness and professionalism.
Members should be considerate of all interests and value differences of opinion. Additionally, members should remain open-minded, objective and make no judgment or engage in any partisan position until all of the available evidence pertaining to an issue has been submitted. Common courtesy is expected from city representatives at all levels of the organization.
It is important to recognize that, as a member, your actions and comments are often interpreted to be that of the entire board, commission, committee, the staff, or the city. A member's comments to the press or other public utterances are sometimes misinterpreted even though you state that you are speaking for yourself. They may also be at odds with the board’s, commission’s, or committee’s goals, objectives, or overall policy. It is very important that an individual be clear when stating an opinion.
Members of the public are also expected to conform to an acceptable standard of conduct. Any person who willfully interrupts a public meeting or acts to render the orderly conduct of the meeting infeasible may be barred from the meeting by the Chair. An individual so barred may not return for the remainder of the meeting unless permission is granted by a majority vote of the board, commission, or committee.
The following guidelines are offered:
1. There should be no promises made to the public that are binding on the board, commission, committee, staff, or City Council.
2. Comments to the public and the press must be factual.
3. Members have an obligation to listen to comments or complaints of the public.
City boards, commissions, and committees are not involved in the administration or operation of city departments. The city’s staff reports to the department head, who in turn reports to the city manager. It is, therefore, the responsibility of the department head and/or the city manager to allocate staff time and efforts and direct the priority of work.
The staff liaisons are not considered members of a board, commission or committee and have no power to vote on matters. Because of their support position, staff does not respond to questions from the public at a meeting unless requested to do so by the chairperson.
City staff liaisons serve boards, commissions and committees in an advisory capacity – much the same as the board, commission, or committee serves the Council. Staff liaisons are selected on the basis of their technical and professional abilities and are expected to provide recommendations based on their professional analysis of the situation, regardless of personal opinion or consideration of political consequence. It is not expected that every staff recommendation will be followed; however, because of staff’s technical expertise, full consideration should be given to the staff liaison’s recommendation.
Members should be aware of staff’s responsibility to also provide professional advice to the City Council. In instances where a staff liaison disagrees with a recommendation of the board, commission, or committee he/she serves, he/she is obligated to advise the City Council of his/her recommendation through the city manager or a subsequent staff report. The City Council values both the opinion of the board, commission, or committee as well as staff since staff expresses its opinion from a strictly technical perspective, and boards, commissions, and committees may provide counsel and advice on the issue’s practical application.
All communications from the board, commission, or committee to the public are transmitted through the staff liaison. Similarly, arriving communications are received by the staff liaison and relayed to the 357
board, commission, or committee through the agenda.
MEMBERSHIP
Member Privacy
The City Clerk’s Office does not release the personal contact information of board, commission or committee members without their consent. Requestors will be directed to the staff liaison to verify consent with the member.
Application, Appointments, , and Reappointments, and Waiting Period to reapply to the same Richmond board, commission, or committee
All residents interested in serving on a City of Richmond board, commission, or committee must complete and submit the appropriate application form (Appendix H) to the city clerk. Employees cannot serve on any city board, commission, or committee. Recommendations for appointment are made by the mayor and approved by the City Council, with the exception of the Richmond Fund for Children and Youth Oversight Board, appointed by the mayor and City Council.
Any person who has served on a board, commission or committee for a period of less than one full calendar year may be appointed to the same body for a full term.
Reappointment is not automatic; therefore, board members, commissioners, and committee members are required to submit a new application to the city clerk prior to each term expiration date (Appendix B), to be considered for reappointment. Members with expired terms may continue to serve until a replacement appointment has been approved (Appendix C, Resolution 24-14).
A termed-out board, commissioner, or committee member is eligible to reapply for appointment to the same board, commission, or committee after a two- year absence from the board, commission, or committee. If appointed, the terms and maximum, consecutive term limits restart.
Oath of Office
Before new board members, commissioners, and committee members can participate as voting members of their respective body, they must complete and file an Oath of Allegiance form (Appendix E) with the city clerk. Failure to take the oath of office within 30 days of the date of the appointment letter shall be cause for automatic termination. Staff liaisons must check with the City Clerk’s Office prior to the first meeting of the board, commission, or committee following the appointment to verify that all newly-appointed members have taken the oath.
Fair Political Practice Commission (FPPC) Filing Requirement and Ethics Training Pursuant to the City of Richmond’s Conflict of Interest Code (Appendix G), members of certain boards, commissions, and committees must complete a FPPC, Statement of Economic Interests, Form 700 upon assuming or leaving office and annually during their term. Form 700 filers must also complete mandatory ethics training (AB 1234) every two years. Failure to comply with the FPPC filing and training requirements can result in automatic resignation. The city clerk will notify the specific board members, commissioners, and committee members that are subject to this provision. It is the responsibility of the board member, commissioner, or committee member to notify the City Clerk’s Office immediately upon any changes to their mailing and/or email address.
Attendance
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Board members, commissioners, and committee members should inform the staff liaison in advance if they are unable to attend a meeting. Failure to comply with the following attendance rules can result in automatic resignation:
a. Absence from more than three regular meetings within a twelve-month period shall be deemed an automatic resignation, with the following exception:
The absence of any member from more than eight regularly scheduled meetings of the Design Review Board within any twelve consecutive-month period constitutes an automatic resignation from the Design Review Board.
Within one week of the third absence (eighth absence for Design Review Board members), the board, commission, or committee staff liaison shall remind the board member or commissioner of the absence rule. Upon the fourth absence (ninth absence for Design Review Board members), the staff liaison shall notify the city clerk to issue a notice of automatic resignation and post the vacancy.
b. A member must be present at least one hour, or 50% of the entire meeting, whichever is less, to be counted as present for purposes of attendance.
Excused Absences
Board members, commissioners, and committee members may make a written request to the chair and staff liaison in advance of a meeting to excuse an absence due to scheduling conflicts and religious or cultural holiday. Requests for all other excused absences may be considered on a case-by-case basis by the chair, with consultation from the city clerk (or his/her representative), as necessary.
Automatic Resignation
The following can result in automatic resignation:
a. Failure to comply with the membership requirements outlined in this handbook.
b. Failure to meet any eligibility requirements of the ordinance, resolution or other law establishing the board, commission, or committee or regulating its membership.
Automatic resignation from a board, commission, or committee does not disqualify an individual from subsequently being appointed to the same or any other board, commission or committee. However, if a member is automatically resigned more than two times due to any of the aforementioned reasons or any combination thereof, he/she may not be appointed again to any board, commission, or committee for one year. No board member, commissioner, or committee member shall be appointed to any board, commission, or committee if there are outstanding Conflict of Interest statements or fines; and no board member, commissioner, or committee member shall be appointed to any board, commission, or committee for a period of one year if automatically resigned more than once for failure to file such statements.
Resignation Procedure
A board member, commissioner, or committee member wishing to resign shall submit a letter or e-mail of resignation directly to the city clerk stating his/her effective date of resignation. Once submitted and the Clerk’s Office acknowledges acceptance, a letter of resignation may not be withdrawn. The city clerk shall notify the mayor and staff liaison of such vacancy. 359
Leaving Office Statement (Form 700)
Within 30 days of an automatic or voluntary resignation, a board member, commissioner or committee member serving on a board, commission or committee subject to annual Fair Political Practice Commission, Statement of Economic Interests, Form 700, will be required to submit a Form 700 leaving office statement.
Use of City Business Cards, Logo, and Insignia, and City Issued Email Board, commission, and committee members may request city business cards, at their own expense, to be used only for official City of Richmond business or promoting the city. The City Clerk’s Office is not responsible for ordering business cards; this is the responsibility of the staff liaison to order business cards from the city’s approved printing vendor. The City Attorney’s Office advises against individual board members, commissioners, and committee members privately printing their own business cards using the city logo or insignia.
A board, commission, or committee member may request a Gmail account for use while serving a term on a City of Richmond board, commission, or committee. The assigned Gmail account should only be used for City of Richmond official business. Please request a Gmail account through your staff liaison. The staff liaison will contact the appropriate department to begin the process. Please be advised that Gmail accounts may be linked to a member at their respective board, commission, or committee website.
CONFLICT OF INTEREST PROHIBITED
Board members, commissioners, and committee members provide advice to the City Council, study various projects and, in the case of certain boards, commissions, and committees, function in a quasi- judicial capacity. Precise relationships vary in that certain of these quasi- judicial determinations may be appealed to the City Council; others may not be. All board members, commissioners, and committee members should be aware of the need to avoid any instances of conflict of interest (Appendix G).
Conflict of interest standards are generally applicable to all boards, commissions, and committees.
Additional requirements may be applicable to particular boards, commissions, and committees.
Influencing the Making of Contracts and Affecting Other Financial Interests The State Political Reform Act, Government Code Sections 81000 et. seq., and the Fair Political Practices Commission (FPPC) Regulation 2 California Administration Code Section 18730 prohibit a board member, commissioner, or committee member from making, participating in making, or attempting to influence the making of any city decision if the board member, commissioner, or committee member knows or has reason to know that it is reasonably foreseeable that the decision will have a material financial effect on specified interests of the board member, commissioner, or committee member or a member of their family distinguishable from its effect on the public generally. A board member, commissioner, or committee member may seek the advice of the City Attorney as to whether he/she should recuse themselves. However, only a formal advice letter from the FPPC will insulate you from enforcement actions by the FPPC. Be sure to seek the advice of the City Attorney or FPPC well before you are required to participate in a matter which would create a possible conflict of interest.
In addition to filing required disclosure statements described below, any such conflict of interest should be publicly disclosed and noted in the official record of the board, commission, or committee. In such cases it is not sufficient simply to abstain from voting; the positive act of verbal disclosure is required.
Disclosure Statements Required
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The Government Code of the State of California requires that designated commissions file Fair Political Practices Commission (FPPC), Statements of Economic Interests (Form 700), in which they disclose specified financial interests. The latest City of Richmond Conflict of Interest resolution, located on the City Clerk’s website, specifies each board, commission, or committee which is subject to this requirement and the interests which must be disclosed.
Board members, commissioners, and committee members specified in the current Conflict of Interest resolution must file a Form 700, with the city clerk annually and within thirty days of assuming or leaving office.
If a member has been auto-resigned more than thirty days from a board, commission, or committee for any reason, and the mayor wishes to reappoint that person, the member must first file a "Leaving Office" statement prior to the new appointment. He/she is then required to file another "Assuming Office" statement within thirty days of the new appointment date.
Any board member, commissioner, or committee member who fails to file any required Form 700 within the time specified for such statement will be fined and may be automatically resigned. No board member, commissioner, or committee member shall be appointed to any board, commission, or committee if there is an outstanding Form 700 or fines; and no board member, commissioner, or committee member shall be re-appointed to any board, commission, or committee for one year if auto- resigned for failure to file such disclosure statements.
Incompatible Public Offices
The common law doctrine of incompatible public offices prohibits a public official from occupying two public offices which are incompatible in terms of their duties and/or the likelihood of divided loyalties.
Effective immediately, board members, commissioners, and committee members may no longer be appointed to multiple Richmond boards, commissions or committees. Board members, commissioners, and committee members may apply for appointment to other Richmond boards or commissions in their current position prior to term expiration. However, upon appointment to the new board, commission, or committee, he/she shall immediately submit written notification to the city clerk resigning from their former appointment. Board members, commissioners, and committee members appointed to more than one Richmond board, commission, or committee prior to the date of this handbook, may continue to serve on multiple boards, commissions, and committees to complete each term.
Incompatible Activities for Compensation
Government Code Section 1126 prohibits a public official from engaging in activities for compensation incompatible with their public office. If you are engaged in compensated activities which may be incompatible with your duties as a board member, commissioner, or committee member, please consult the city attorney.
BOARD, COMMISSION, AND COMMITTEE ORGANIZATION
Officers Election and Term of Office
The election of board, commission, and committee officers shall occur annually pursuant to the resolution, ordinance, or bylaws that govern each body. The chairperson and vice chairperson are elected by the majority of the board, commission, or committee for a one-year term and hold office until their successors are elected. No board member, commissioner, or committee member shall serve as chairperson for more than two consecutive years. The results of the vote shall be publicly announced and the vote recorded in the minutes.
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Duties of Officers
The chairperson, or in her/his absence, the vice chairperson, performs the following duties:
• Presides at all meetings of the board, commission, or committee and ensures that the work of the board, commission, or committee is accomplished. To this end, the chairperson must exert sufficient control of the meeting and ensure that all viewpoints are heard and are considered in a fair and impartial manner.
• Approves and signs correspondence and reports on behalf of the board, commission, or committee.
• Represents the board, commission, or committee before the City Council with the approval of the board, commission, or committee.
• Performs other duties necessary or customary to the office.
Transfer of Chair
In the absence of the chairperson or his/her inability to act, the vice chairperson presides in place of the chairperson. In the event of the absence or the inability to act of both the chairperson and the vice chairperson, the remaining members elect one of their members to act as temporary chairperson.
Vacancies
Board, commission, and committee vacancies as a result of final term expiration and resignations are publicly announced by the mayor at City Council meetings and posted on the city’s website. On or before December 31st of each year, a Notice of Expiration of Terms and Vacancies is published in a newspaper of general circulation, in compliance with the requirements of the Maddy Act, Government Code Section 54972.
DEVELOPMENT OF A WORK PROGRAM
Many boards, commissions, and committees find it effective to establish an optional yearly work program or goals statement. A work program is a planning document that specifies how and when the objectives (outcomes) which the board, commission, or committee expects to accomplish during the fiscal year will be achieved. Goal statements explain the nature and scope of the work to be performed and the time needed to accomplish the goal. The nature of the duties of specific boards, commissions, and committees may determine which method is most suitable.
Designing yearly work programs or goal statements may be done in conjunction with the development of the relevant departmental work plan so that the department and board, commission, or committee’s work will complement each other throughout the year.
MEETING BASICS
Requirement to Meet in Public – Ralph M. “Brown Act”
The Ralph M. Brown Act, commonly referred to as the “Brown Act,” is codified in the California Government Code beginning at Section 54950. The Brown Act mandates that local government business be conducted at open and public meetings, except in certain limited situations (i.e. closed sessions). The central provision of the Brown Act requires all “meetings” of a “legislative body” to be open and public. The Brown Act broadly defines the term “meeting” to include any congregation of a majority of the members of a particular legislative body at the same time and place to hear, discuss, or deliberate upon any item that is within the subject matter jurisdiction of the legislative body. Richmond boards, commissions, and committees are a “legislative body”. Under the Brown Act, a majority of the 362
members of the legislative body are prohibited from discussing, deliberating about or developing a collective concurrence regarding any item that is within the legislative body’s jurisdiction except as part of a duly noticed public meeting. The purpose of these provisions is to ensure that local governing bodies deliberate in public.
The Brown Act also requires that the public be given notice of the time and place meetings are to be held. As a general rule, a legislative body may not act on or discuss any item that does not appear on the agenda posted for the meeting.
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Public Meetings and Public Hearings Notice Requirements The staff liaison will handle all noticing requirements including posting the agenda at City Hall and on the city’s website. The Brown Act does not apply to ad hoc committees.
• Regular meetings must be posted seventy-two (72) hours prior to the meeting time. • Special meetings must be posted twenty-four (24) hours prior to the meeting time. • Where a public hearing is mandated by law, it may vary and the form and timing of the advance notice is most often specified by the law (i.e., land use public hearings).
Public Access Requirement
All public meetings must be held in a wheelchair accessible location. Disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, may be requested by contacting the City Attorney’s Office Americans with Disabilities Act coordinator at (510) 620-6509 at least three business days before the meeting date.
Communication and Public Participation Requirement
The Brown Act protects the public’s right to attend and participate in meetings and requires that agendas for legislative bodies provide an opportunity for the public to address the body. Consult the city clerk for specific requirements and procedures for establishing public comment procedures and time limits for speakers. Boards, commissions, and committees can also conduct public hearings on specific subjects.
The Brown Act requires that an agenda allow for two types of public comment periods. The first is a general audience comment period (i.e., “Public Forum” or “Open Forum”), where the public can comment on any item of interest that is not on the agenda within the jurisdiction of the legislative body.
The second type of public comment period specifically pertains to items on the agenda.
Types of Meetings
Public Hearings
Public hearings are held when required by law or when the board, commission, or committee determines that such a hearing would be desirable. When a hearing is required by law, the procedure for that hearing may also be specified by that law. Most hearings and board, commission, and committee matters are quasi-legislative; the board, commission, or committee is making policy or programmatic recommendations to the City Council. Some hearings are quasi-judicial, such as hearings or permits before the Planning Commission, or Design Review Board. In such quasi-judicial proceedings, special rules may apply. Refer to the specific law or consult the City Attorney’s Office.
Study Sessions and Workshops
Study Sessions are designed to elicit community input and participation in an informal manner, allowing maximum interaction between citizens and board members, commissioners, or committee members to work on issues in an in-depth manner. Study sessions and workshops do not culminate in action at that meeting. Actions or recommendations should be taken at either the next regular meeting or at another publicly announced date and time. In both cases, the board, commission, or committee, when establishing the time and place for the study session or workshop, should determine the period of time available and establish the portion of time to be devoted to comments or presentations by the public.
Public access and communication access requirements must be met for all public hearings, study sessions, and workshops.
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Preparation for Meetings
• Be prepared. Thoroughly review the agenda packet, including agenda reports, and any other materials before the meeting. The issues that come before advisory bodies are important to the community as a whole and demand your undivided attention. In agreeing to serve on an advisory body, you make a commitment to put in the time required to be fully prepared for each meeting.
• Understand the recommended action you are being asked to take for each agenda item. • If you have questions regarding the agenda or an agenda report, contact your staff liaison before the meeting to clarify questions or request further information. • Know the responsibilities of your advisory body, as well as the limitations of your individual authority. As a member of an advisory body, you will among other things, be asked to provide recommendations to the City Council about specific issues. Keep in mind that your appointment does not empower you to supervise city staff. • Keep an open mind. An objective, balanced, and receptive approach will help you assess the facets of a given issue and evaluate new ideas. When receiving written and oral public testimony it will be necessary to discern between fact and opinion, as well as between those concerns which are relevant and those which are secondary to the issue at hand. Keeping an open mind will make it easier for you to understand all aspects of an issue before you make a judgment or take a position.
• Strive to appreciate differences in approach and point of view. Likewise, take care to articulate your own ideas; remember that your individual voice is a critical part of the whole dialogue.
Again, furthering common goals takes cooperation, flexibility, and a broad-based view of the public interest. If in doubt, return to the foundational documents to guide your understanding of the complexities of an issue.
• If you are unsure about something during the meeting, ask for clarification. On behalf of the public, your understanding of issues is important. Each advisory body has a staff liaison to provide information to assist the members throughout the decision-making process. • E-mail communications can ultimately lead to the exchange of information intended to create collective concurrence among a quorum of advisory body members in violation of the Ralph M.
Brown Act. Therefore, e-mail communications between advisory body members relative to advisory body business should be avoided. While less than a quorum, for example, may appropriately communicate with one another by way of e- mail, the “forwarding” of such an e- mail message on to an additional member could result in a Brown Act violation. • The applicant has the right to an efficient process. Unreasonable delay or lack of action is unacceptable. If necessary, make an alternate or additional recommendation that may help to move the item along.
Conduct of Hearing
The procedure to be followed for a public hearing may vary depending, again, on the subject matter and the time available for the hearing. In the instances where a board, commission, or committee acts in quasi-judicial fashion, certain standards of receiving testimony must be met. These would include, but not necessarily be limited to:
• Announcement or reading of the subject into the record by the secretary. • An overview of the subject and recommendation by the chairperson, board member, commissioner, committee member or staff requesting the public hearing. • Public comment from affected parties or interested citizens and receipt of any pertinent 365
documentation.
The hearing shall be formally declared open by the chairperson prior to public comment and formally closed by the chairperson at the conclusion of public comment. If findings are required as a part of the board, commission, or committee action, such findings should be clearly stated for the record. If a board member, commissioner, or committee member must abstain or recuse oneself from participation due to a potential conflict of interest, or has a disclosure of interest which does not prevent participation, a statement shall be given at the commencement of the hearing.
Action
Any action resulting from the hearing shall be clearly stated in the form of a motion, properly seconded and voted upon. The record should in such cases identify those voting "aye", those voting "no", those abstaining, and those absent.
Action must be by an affirmative vote of at least a quorum of the board, commission, or committee.
Under State law, action is prohibited on any matters which have not been properly noticed.
If no action is to be taken the chairperson should announce this fact, and, if possible, advise the public of the date when action may be expected.
Recordings of Hearings
All hearings should be audio recorded (whenever possible) in addition to the required written set of summary and action minutes that must be provided for every meeting. The minutes once approved by the board, commission, or committee, shall constitute the legal record. Audio recordings of public hearings of quasi-judicial boards, commissions or committees where the minutes have been approved, shall be retained by the staff liaison for at least one year following the decision of the board, commission, or committee or following the final decision of the City Council.
Hearing from the Public
At public meetings, boards, commissions, and committees have the responsibility to hear all viewpoints of the public. In order to ensure all parties are adequately heard, it is necessary to follow the rules of procedures which are often established by the bylaws of the boards, commissions and committees.
These rules most commonly include:
• Limiting the time of speakers.
• Establishing strict rules regarding rebuttal, if it is decided that rebuttal is permitted. • Requesting board, commission, and committee members to hold questions and comments to the end of the public presentation portion of the hearing.
Impartiality and Standards of "Fair Play"
Boards, commissions, and committees shall be aware of the need to maintain basic standards of fair play and impartiality. This awareness must also speak to the need to avoid the appearance of bias. The chairperson has the primary responsibility to ensure that the varying points of view are heard, that the hearing or workshop proceeds in a timely manner, and that the options for future action by the board, commission or committee are clearly stated. Awareness of the varying interests within the Richmond community is essential, and the City Council depends on its boards, commissions, and committees to provide thoughtful advice based on the fullest possible study of the subject and contact with all relevant segments of the community to obtain their input.
No Quorum – Meeting Cancellation
When a quorum cannot be assembled at the time of a meeting, the meeting must be cancelled and 366
those members who are absent will have an absence counted against them. Those members that are present shall wait a maximum time limit of 20 minutes for a quorum prior to cancelling the meeting.
Board members, commissioners, and committee members should inform the staff liaison as far in advance as possible if they are unable to attend a meeting. If it is known in advance that a quorum will not be achieved, the staff liaison should notify all members that the meeting will be cancelled and no absences will be recorded. The staff liaison must also post a meeting cancellation notice for the public at the meeting location.
MEETING PROCEDURES
Establishment of Meeting Rules
Richmond boards, commissions, and committees follow Rosenberg’s Rules of Order for public meeting proceedings (Appendix F). Each board, commission, or committee may establish additional rules and limit debate. It is the responsibility of the chairperson to control public debate so that everyone has an opportunity to speak and to expedite the business at hand.
Rules of Debate
Chairperson
The chair may debate and may make or second motions. The chair is subject to the limitations of debate that are imposed on all members and shall not be deprived of any of the rights and privileges of a member.
Advisory Body Members
Every advisory body member desiring to speak shall address the chair. Upon recognition by the chair, the member shall confine comments to the question under debate, avoiding all undignified language and references to personalities and abiding by the following rules of civil debate. A member, once recognized, shall not be interrupted except according to rules of parliamentary procedure (e.g., for a point of order, parliamentary inquiry, question of privilege, or appeal of the chair’s procedural ruling).
Public meetings will proceed smoothly if all participants keep the following tenets in mind:
(1) We may disagree, but we will be respectful of one another.
(2) All comments will be directed to the issue at hand.
(3) Personal attacks shall be avoided. They are unacceptable and may result in termination from an appointed position.
Addressing the Advisory Body from the Floor
Securing Permission to Speak - Any person desiring to address the advisory body shall first secure permission from the chair. Any advisory body member may also request of the chair that a member of the public be recognized to speak. Remarks should be directed to the matter being considered.
Individuals addressing the advisory body are requested to give their name in an audible tone of voice for the record and fill out a speaker card if provided. They are not, however, required to provide their name or complete a speaker card. Any applicable time limit shall be as stated in the agenda, or as directed by the chair.
All remarks shall be addressed to the advisory body as a whole and not to any individual member or to members of the audience. Without the permission of the chair, only members and the person 367
addressing the advisory body shall be permitted to enter into any discussion. However, while advisory body members may ask speakers questions, they should not debate matters with them. All remarks shall be delivered in a respectful manner.
Addressing the Advisory Body after Motion Made - After a motion is made by the advisory body, no person shall address the advisory body in regard to that topic except upon the request of the chair, or a member of the advisory body through the chair.
Order and Decorum in Meetings
Board, Commission, and Committee Conduct
While the board, commission, or committee is in session, the members sh all not interrupt the proceedings of any other member or any member of the public who has the floor.
Conduct of Public in Attendance
Persons attending the meeting should observe the rules and procedures of the board, commission, or committee and should not disrupt the business at hand. For example, no one should disrupt the meeting by shouting, making disruptive noises, such as “boos” or hissing sounds; creating or participating in a physical disturbance; speaking out of turn or in violation of the meeting's procedures or rules; preventing or attempting to prevent others who have the floor from speaking; preventing others from observing the meeting; entering into or remaining in an area of the meeting room that is not open to the public; or approaching the advisory body without consent. Any message to or contact with any member of the advisory body while it is in session should be through the staff liaison.
All public comments shall be addressed to the advisory body as a whole and not to any specific member. No one other than the advisory body and the person having the floor may enter into any discussion, either directly or through a member of the advisory body, without the permission of the chairperson. No question may be asked of a member of the advisory body except through the chair.
After being recognized for this purpose by the chair, any member of the advisory body may briefly respond to comments made during the public comment period or may pose a question to the person speaking at public comment or during a public hearing but may not discuss the matter.
Interested persons may address the advisory body on any issue concerning city business and items on the agenda during the period assigned to public comment on the agenda. Members of the advisory body may ask questions but should not discuss or act in connection with such citizen comment, if the subject is not on the agenda for action. A member of the advisory body may, however, refer a subject to staff or other resources for factual information or for action, if appropriate. The public may also comment during a public hearing on the subject of the public hearing in accordance with any procedures established by the advisory board for this purpose.
Rules of Debate
Presiding Officer May Debate. The presiding officer may debate from the chair, subject only to such limitations of debate by rules imposed on all members of the advisory board, and should not be deprived of any of the rights and privileges of any other member by reason of his/her acting as the presiding officer.
Getting the Floor. Improper references are to be avoided. Every member desiring to speak should address the chair, and upon recognition by the presiding officer, should confine him/herself to the question under debate.
Interruptions
A member of the advisory board, once recognized, should not be interrupted when speaking unless it is to call him to order, or as herein otherwise provided. If a member, while speaking, is called to order, 368
he/she should cease speaking until the question of order can be determined, and if, in order, he/she should be permitted to proceed.
Proceedings
• Start meetings on time and keep the size of the agenda in mind in order to give each item the appropriate time.
• Announce at the start of a meeting if the order of agenda items is to be rearranged for convenience, for response to those attending only for certain items, or for better pacing of the agenda.
• Let the chair run the meeting.
• Be fair, impartial, and respectful of the public, staff, and each other. • Give your full attention when others speak.
• Learn to trust your own good judgment on decisions.
• Remember that people may be attending a meeting for the first time, and may be unfamiliar with the procedures. In your discussion, either avoid or explain technical terms or verbal acronyms and abbreviations.
• Listen to audience concerns and do not engage in side conversations or otherwise be distracted during public testimony. The opportunity for public testimony is central to the strength of democracy and is therefore encouraged. Active listening, however, does not mean engaging the public in debate. Your response is appropriately saved for after the public testimony is closed.
• Close the public testimony before you begin serious deliberation on an issue. • Sometimes questions can most effectively focus discussion and direct decision- making.
For example,
For staff:
What is the history behind this item?
What are the benefits and drawbacks?
What other alternatives did you consider?
Is it within this advisory body’s scope of responsibility? If not, would it be best referred to another advisory body or staff?
For other advisory body members:
What do you think about this item?
What have you heard from the residents?
What would it take for you to support this?
For the public (at a hearing):
What are your concerns?
How will this proposal affect you?
What specific, constructive, alternatives can you recommend? How does the public comment or question relate to the decision at hand? For yourself:
What are we trying to accomplish?
What are the long-range interests of the community?
What guidance can be found in our foundational documents? • Often you must balance multiple views, neither favoring nor ignoring one individual or 369
group over another. Your obligation is to represent a broad-based view of the community’s long-range interests.
• Remember that your advisory body exists to take actions and/or make recommendations.
It is not simply a discussion group or debating society. • Endeavor to end meetings at a reasonable hour. Extending the meeting beyond an appointed hour may be subjected to a vote when that hour nears.
Managing Difficult Meetings
From time to time, boards, commissions, and committees are faced with conducting highly charged controversial meetings. These meetings may involve one unified group or two or more conflicting groups. The group demeanor may be characterized by aggressiveness and hostility. Such meetings really test the mettle of the advisory body and staff. Consider the following:
Before the Meeting
• Make agendas and back-up reports easily available to participants. • Make sure adequate seating is available. Consider moving to a larger venue if necessary.
• Make sure audio and visual equipment are adequate and operational, if applicable. • Chairperson and staff should engage in contingency planning before the meeting.
During the Meeting
• Establish and announce rules at the beginning of the meeting. • Before public comment, ask the participants to designate one or more spokespersons, if possible. This may help reduce redundancy and make sure that all sides of the issue will be heard.
• Explain the issues, the possible actions, and the procedures that will be followed at the meeting.
• Have speakers address the advisory body and not the audience. Some speakers are very adept at inciting audiences; especially if they are permitted to face the audience. • Stop shouting. Explain the reasons why such actions are disruptive and counterproductive. For instance: the meeting should provide a forum for all points of view and such displays of support or opposition could intimidate those with an opposing point of view from speaking. In addition, such displays delay the discussion. • Do not hesitate to use recesses to help diffuse hostility or aggressiveness. • Strongly consider limiting speakers to a set time such as two to three minutes. If such a procedure is used, make sure it is applied fairly and consistently. • Consider using speaker cards. These can help identify how many people wish to speak and also whether they support or contest an issue. They also are invaluable in recording the names and addresses of speakers. Recognize, however, that if a person does not wish to fill out a card or give their name, they still have the legal right to speak.
• Continue items to a date certain that cannot be decided at the meeting. Items on the agenda that do not get addressed before the meeting adjournment time will automatically be held over to the next regularly scheduled meeting. 370
CONCLUSION
There is no desire on the part of the City Council or city staff to control a board, commission or committee member’s independent thought or judgment. The City Council appoints only those persons who have the knowledge, ability, and interest in the specifi c advisory body’s purposes so that their contributions will be of assistance. All suggestions and ideas are most welcome, whether presented as a citizen, member of an advisory body, or as a majority vote of an advisory body. However, board, commission, and committee membership limits a member’s freedom of advocacy before the City Council or other advisory bodies on those issues that are to be considered by the member’s advisory body so that the member can hear the item with an impartial mind. The recommendation of the board, commis sion, or committee to the City Council should include the position of the body ‘as a whole’ based on the majority vote.
A board, commission, or committee is created as an advisory arm of the City Council as the result of a policy decision. Each has been charged with responsibilities in specified areas. It may be that a member may disagree with an established policy. This is part of the democratic process, as is the expression of that disagreement in a minority vote. In spite of conflicting viewpoints, however, it is the process of addressing the issues that are served by the board, commission, or committee action.
The City of Richmond is proud of its citizen participation and extends a hearty welcome to all board, commission, and committee appointees.
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APPENDICES
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APPENDIX A: Purpose and Function of each City of Richmond Board, Commission and Committee
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APPENDIX B: Boards, Commissions and Committees Contacts, Terms/Term Limits, Expiration Dates, Meeting Dates/Locations
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APPENDIX C: Resolution No. 24-14 Continuation of Board, Commission and Committee Member Terms
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APPENDIX D: Code of Ethics
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APPENDIX E: Oath of Allegiance
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APPENDIX F: Rosenberg’s Rules of Order
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APPENDIX G: Resolution for Amended Conflict of Interest Code
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APPENDIX H-1: Board or Commission Application
APPENDIX H-2: Community Police Review Commission Application APPENDIX H-3: Personnel Board Application
APPENDIX H-4: Rent Board Application
APPENDIX H-5: Youth Council Application
APPENDIX H-6: Workforce Development Board Application
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Boards, Commissions and
Committees Handbook
April 27, 2021
(City Council Resolution No. 45-21)
THE CONTENTS OF THIS HANDBOOK ARE SUBJECT TO CHANGE
Revised 3-1-22
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MESSAGE FROM THE CITY CLERK:
Congratulations on your recent appointment to a City of Richmond board, commission or committee!
This handbook has been prepared to help orient you concerning the functions and duties of the board, commission or committee to which you have been appointed. The handbook is designed to contribute to your general knowledge and understanding of public affairs and to aid in identifying the scope and parameters of your role and responsibilities.
Members of boards, commissions or committees provide a positive service that is invaluable to the continued progress of our city. They may advise the City Council on a wide variety of issues by making recommendations on important policy matters. The detailed studies and considered advice of boards, commissions or committees are often catalysts for innovative programs and improved services.
Serving on a board, commission or committee can be a rewarding experience for community service-minded residents. It is an excellent way to participate in the functioning of local government and to make a personal contribution to the improvement of our community. If we are to have, “Government of the people, by the people, for the people", we must have the continued participation of the many dedicated board, commission and committee members. Making local government effective and responsive is everybody's responsibility.
We hope that you will enjoy your tenure as a vital part of the City’s team and sincerely thank you for your willingness to devote your time and energy to serve your community.
Pamela Christian
Clerk of the City of Richmond
450 Civic Center Plaza, Suite 300
Richmond, CA 94804
Phone: (510) 620-6513
Email: [email protected]
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BOARDS, COMMISSIONS AND COMMITTEES HANDBOOK
Contents
MESSAGE FROM THE CITY CLERK: ...................................................................................................................... 2 BOARD, COMMISSION AND COMMITTEE FUNCTIONS...................................................................................... 5 Quasi-Judicial...................................................................................................................................................... 5 Advisory to the City Manager .............................................................................................................................. 5 Advisory to the Council ........................................................................................................................................ 5 Ad Hoc Committees ............................................................................................................................................ 5 Establishing Ad Hoc Committees ............................................................................................................................ 6 ROLES ................................................................................................................................................................... 6 The Advisory Role ............................................................................................................................................... 6 BOARD, COMMISSION, OR COMMITTEE NORMS .............................................................................................. 7 RESPONSIBILITIES OF BOARD, COMMISSION, OR COMMITTEE MEMBERS .................................................. 7 RELATIONSHIPS ................................................................................................................................................... 8 Working Relationships ......................................................................................................................................... 8 Basic Guidelines ................................................................................................................................................. 8 Relationships with Other Board, Commission, or Committee Members ............................................................... 8 Relationships with City Council Members ............................................................................................................ 9 Relationships with Council and Staff Liaisons...................................................................................................... 9 Relationships with the Public ............................................................................................................................... 9 MEMBERSHIP...................................................................................................................................................... 11 Member Privacy ................................................................................................................................................ 11 Application, Appointments, and Reappointments .............................................................................................. 11 Oath of Office .................................................................................................................................................... 11 Fair Political Practice Commission (FPPC) Filing Requirement and Ethics Training .......................................... 11 Attendance ........................................................................................................................................................ 11 Excused Absences ............................................................................................................................................ 12 A
utomatic Resignation ...................................................................................................................................... 12 Resignation Procedure ...................................................................................................................................... 12 Leaving Office Statement (Form 700) ................................................................................................................ 13 Use of City Business Cards, Logo, and Insignia ................................................................................................ 13 CONFLICT OF INTEREST PROHIBITED ............................................................................................................. 13 Influencing the Making of Contracts and Affecting Other Financial Interests ..................................................... 13 Disclosure Statements Required ....................................................................................................................... 13 Incompatible Public Offices ............................................................................................................................... 14 Incompatible Activities for Compensation .......................................................................................................... 14 BOARD, COMMISSION, AND COMMITTEE ORGANIZATION ............................................................................ 14 Officers Election and Term of Office .................................................................................................................. 14 Duties of Officers ............................................................................................................................................... 15 Transfer of Chair ............................................................................................................................................... 15 Vacancies ......................................................................................................................................................... 15 DEVELOPMENT OF A WORK PROGRAM .......................................................................................................... 15 MEETING BASICS ............................................................................................................................................... 15 Requirement to Meet in Public – Ralph M. “Brown Act” ..................................................................................... 15 Public Meetings and Public Hearings Notice Requirements .............................................................................. 17 Public Access Requirement ............................................................................................................................... 17 Communication and Public Participation Requirement ...................................................................................... 17 Types of Meetings ............................................................................................................................................. 17 Public Hearings..................................................................................................................................................... 17 383
Study Sessions and Workshops............................................................................................................................ 17 Preparation for Meetings ................................................................................................................................... 18 Conduct of Hearing ........................................................................................................................................... 18 Action ................................................................................................................................................................... 19 Recordings of Hearings ........................................................................................................................................ 19 Hearing from the Public ........................................................................................................................................ 19 Impartiality and Standards of "Fair Play" ............................................................................................................... 19 No Quorum – Meeting Cancellation ................................................................................................................... 19 MEETING PROCEDURES ................................................................................................................................... 20 Establishment of Meeting Rules ........................................................................................................................ 20 Chairperson .......................................................................................................................................................... 20 Advisory Body Members ....................................................................................................................................... 20 Addressing the Advisory Body from the Floor ....................................................................................................... 20 Order and Decorum in Meetings ....................................................................................................................... 21 Board, Commission, and Committee Conduct ...................................................................................................... 21 Conduct of Public in Attendance ........................................................................................................................... 21 Rules of Debate .................................................................................................................................................... 21 Interruptions .......................................................................................................................................................... 21 Proceedings .......................................................................................................................................................... 22 Managing Difficult Meetings .................................................................................................................................. 23 CONCLUSION ...................................................................................................................................................... 24 APPENDICES ...................................................................................................................................................... 25 APPENDIX A: Purpose and Function of each City of Richmond Board, Commission and Committee .............. 26 APPENDIX B: Boards, Commissions and Committees Contacts, Terms/Term Limits, Expiration Dates, Meeting Dates/Locations ................................................................................................................................................ 27 APPENDIX C: Resolution No. 24-14 Continuation of Board, Commission and Committee Member Terms ...... 28 APPENDIX D: Code of Ethics .......................................................................................................................... 29 APPENDIX E: Oath of Allegiance ..................................................................................................................... 30 APPENDIX F: Rosenberg’s Rules of Order ...................................................................................................... 31 APPENDIX G: Resolution for Amended Conflict of Interest Code ..................................................................... 32 APPENDIX H-1: Board or Commission Application .......................................................................................... 33 APPENDIX H-2: Community Police Review Commission Application ............................................................... 33 APPENDIX H-3: Personnel Board Application .................................................................................................. 33 APPENDIX H-4: Rent Board Application .......................................................................................................... 33 APPENDIX H-5: Youth Council Application ...................................................................................................... 33 APPENDIX H-6: Workforce Development Board Application ............................................................................ 33
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BOARD, COMMISSION AND COMMITTEE FUNCTIONS
The activities of boards, commissions and committees are varied but generally fall into four categories (Appendix A). Any particular board, commission or committee may belong to one or more of the types listed below and all boards, commissions and committees belong to the third type, advisory to the council. If a conflict arises between any provision in the Boards, Commission and Committees Handbook and a board, commission, and committee adopted ordinance, the provision in the perspective ordinance prevails and overrules any other provision.
Quasi-Judicial
Boards, commissions and committees with authority to make binding decisions that require or restrict the action of individuals are deemed quasi-judicial. For example, the Design Review Board functions as the decision-making body for the design of new development projects and most exterior changes to existing buildings. The Design Review Board also acts as an advisory body to the Planning Commission in cases also involving a land use decision. The Planning Commission acts as an advisory body to the City Council on all planning and development policy issues and is charged with the preparation, maintenance, and implementation of the city's General Plan. The Rent Board establishes base rents, makes adjustments to rents and conducts hearings. Actions of the Rent Board are not appealable to the City Council.
However, actions made by the Design Review Board and Planning Commission may be appealed to the City Council, if the appeal is filed with the city clerk within 10 business days of the board, commission, or committee’s action.
Advisory to the City Manager
The Personnel Board conducts hearings on employee grievances for employees in classified service, reviews all proposed changes, additions or eliminations in the personnel rules that may be presented to the City Council, and advises the city manager, on all policies regarding personnel administration.
Similarly, the Community Police Review Commission investigates complaints against police officers and advises the city manager and the chief of police of its findings.
Advisory to the Council
All boards, commissions, and committees advise the City Council concerning policies and programs.
For example, the Commission on Aging advises the City Council on the needs of senior citizens. The Historic Preservation Commission advises or provides recommendations to the City Council on preserving historic sites but also exercises some quasi-judicial powers where historic resources are involved.
Ad Hoc Committees
Ad hoc or "temporary" committees are treated differently under the Brown Act (see the Meeting Basics section for an explanation of the Brown Act). Ad hoc committees are not subject to the notice and posting requirements of the Brown Act so long as the committee:
1. Consists of less than the number of members which would constitute a quorum;
2. Has a defined purpose and a time frame to accomplish that purpose; and
3. Is advisory, i.e., the committee has not been delegated any decision making power and will be 385
returning to the full board with its recommendation. See, Joiner v. City of Sepastopol (1981) 125 Cal App. 3d 799. Ad hoc committee
Ad hoc committees are commonly used in city government. For example, the chair of a city board/ commission or the board/commission as a whole might choose to appoint three or fewer commissioners (depending upon the size and quorum of the board/commission) to evaluate and report on a particular issue or subject relevant to that board/commission. Once that ad hoc committee has completed its work, the ad hoc committee is then disbanded.
Establishing Ad Hoc Committees
Members of ad hoc committees designed to be advisory to the board/commission may be appointed by the chair, on behalf of the entire board/commission or by an action of the entire board/commission, depending upon the rules under which the board/commission operates. Although, as noted above, the ad hoc committee itself is not subject to the Brown Act, but if the board/commission desires to create an ad hoc committee, the action to create the ad hoc committee must be done at a publicly noticed meeting under the Brown Act and the item placed on an agenda for that purpose.
ROLES
The mayor’s role [per City of Richmond Charter, Article III-A, Sec. 2(c)] is as follows:
• The mayor shall have the authority at any regularly scheduled meeting of the City Council to make appointments to or removals from all city boards, commissions, and committees with the concurrence of a least three (3) other members of the Council.
The City Council’s roles are as follows:
• Make policy.
• Direct city manager to carry out policy.
• Solicit input from boards, commissions or committees on issues in its various functional areas unless there are legal or time constraints.
The Boards’, Commissions’, or Committees’ roles are as follows:
• Advise the Council on policies that assist the Council in carrying out its responsibilities. • Provide citizen input by being positive representatives of a board, commission, committee, and the community.
• Committees may differ in their duties and responsibilities. Many are solely and entirely advisory to the elected body.
The City Council Liaison’s role (an appointed councilmember) is as follows:
• Serve as a conduit between the board or commission and the City Council.
The Technical Staff’s role (a department head) is as follows:
• Research and investigate issues, prepare alternatives and recommendations for review by the applicable board, commission, committee, and/or the Council, and implement the Council’s policy decisions.
The Staff Liaison’s roles are as follows:
• Provide administrative support to the boards, commissions or committees under the guidance of the department head (and ultimately, the city manager), including preparing agendas and meeting minutes and ensuring both are posted on the City’s website in a timely manner.
The Advisory Role
Ad hoc committees are formed for a specific purpose and dissolve after completing their mission. 386
However, standing boards, commissions, and committees are an integral part of the governmental structure.
If the organization is to function effectively, there must be clarity, understanding, and acceptance of the roles assigned to the elected body, boards, commissions, committees, and staff. If advisory board members stray from their original charge and get into areas that rightfully belong to the staff or elected officials, confusion, inaction or destructive conflict can result.
BOARD, COMMISSION, OR COMMITTEE NORMS
As with all working teams, there are written and unwritten rules (norms) that boards, commissions or committees follow. These norms have been established over time and have an original basis that continues to be valid for boards, commissions or committees today.
Some examples are as follows:
• Do your homework.
• Explain actions in concise thoughts.
• Compliment colleagues and staff whenever an opportunity arises. • Where applicable, try to involve residents in a solution. • Work for consensus on important issues.
• Always be on time for meetings.
• Be attentive.
• Do not criticize staff or others in public.
• Only speak on issues if we have something to add.
• Our actions, including voting practices, are governed by ethical and moral principles and beliefs.
RESPONSIBILITIES OF BOARD, COMMISSION, OR COMMITTEE MEMBERS While specific duties of each board, commission, or committee member vary widely with the purpose for which they are formed, there are certain responsibilities that are common to all members. The following is a summary of those responsibilities:
1. Understand your role and scope of responsibility and be informed of the objectives, scope of responsibility and operating procedures of your individual board, commission, or committee.
2. If you represent yourself as a member of a board, commission or committee, you should represent the majority views of your individual board, commission, or committee. Individual “opinions” to the public and press, should be identified as such.
3. Members should represent the public interest and not special interest groups.
4. Members are in a unique position of serving as a liaison between the city and its citizens and can help to reconcile contradictory viewpoints and to build a consensus around common goals and objectives. Members serve as a communication link among the community, staff, and City, presenting city programs and recommendations and providing a channel for citizen expression.
5. Do your homework and be thorough in recommendations by reviewing items prior to the meeting to be fully prepared to discuss, evaluate, and act on all matters scheduled for consideration.
Conclusions based on the same facts will strengthen the value of the group’s recommendations.
6. Supportive relationships with the City Council and city staff are essential for successful operation 387
of any board, commission, or committee. The proper channel to contact city personnel on items of consideration is through the designated city staff liaison providing staff support for your group.
7. Establish a good working relationship with fellow members of your board, commission, or committee. Respect individual viewpoints; allow other members time to present their views fully before making comments; be open and honest; welcome new members and strive to minimize political action on issues.
City Council appointments to boards, commissions or committees are made without regard to political party affiliation. Members are not restricted from participating in political activities. However, members may not use or involve their membership on their respective board, commission or committee in the conduct of political activities.
RELATIONSHIPS
Working Relationships
In public statements or interactions, individual board, commission or committee members should present views and recommendations representing the board, commission, or committee as a body -- not personal individual views. Members expressing views not approved by the majority of a board, commission, or committee should clearly express that their opinions reflect their personal perspective as a “private citizen.” Individual opinions must be identified as such. Public statements should not include promises that may be construed to be binding on the board, commission, committee, City Council or staff. When making a public statement, if applicable, members should indicate that board, commission or committee actions are recommendations and that final action will be taken by the City Council. Members may be selected on the basis of representing defined groups; however, each member should represent the overall “public good,” not an exclusive group, or special interest.
Basic Guidelines
Board, commission or committee members should work to establish good relationships with other board, commission or committee members. The success or failure of board, commission, or committee efforts may be dependent upon the degree of cooperation evident among the individual members of the body.
Relationships with Other Board, Commission, or Committee Members The association with other board, commission or committee members is very important. Before talking about relationships, it may be well to point out a few facts about board, commission and committee members. Members come from various backgrounds - education, occupational, religious, social, economic, physical and cultural - and differences do exist. It is important to recognize that the reasons for serving on a board, commission, or committee will vary and perhaps some will have a special interest. Each member will contribute in his/her own way and is an important part of the decision- making process. Do not expect every member to give of his/her time, talent and knowledge to the same extent. Some will give more, and others will give less, but in the end, the community will benefit.
Bearing this in mind, the following may serve as a guideline:
1. Always respect other individuals’ viewpoints even though they may be the opposite of your own.
2. Allow the other individual to articulate his/her own views and then attempt to make an objective evaluation of those views.
3. Evaluation of other members’ viewpoints should be based on what is best for the total community and for all concerned.
4. There will be times when political action among the board, commission, or committee is apparent; 388
strive to minimize whenever possible.
5. Be open and honest at all times.
6. Each member has a responsibility to see that new members are made welcome, become oriented, and receive training.
Relationships with City Council Members
The purpose of boards, commissions or committees is to expand the opportunity for citizen input and participation, study issues, and make recommendations to the City Council. As an advisor to the City Council, members must be continually aware that the decisions formed by the Council, even after receiving and evaluating the recommendations from the various advisory bodies, are not easily made.
The City Council possesses the ultimate political and legal responsibility for the conduct of local government and the overall welfare of the community. It is important to recognize that not all of the recommendations made by the various boards, commissions, and committees will be accepted by the City Council. City Council actions that vary from board, commission and committee recommendations do not imply a lack of confidence or disinterest in the advisory bodies’ decisions. Councilmembers must weigh the advice provided by advisory bodies against a broader scope of considerations as they reach the decisions for which they are responsible.
Although a board, commission, or committee may disagree with the final decision that the City Council makes on an issue, it should not act in any manner contrary to the established policy adopted by the Council.
Members are expected to recognize the following items:
1. The board, commission or committee should assist the City Council in developing public trust in an advisory system; and
2. Be sensitive to City priorities and know when to take a stand.
Relationships with Council and Staff Liaisons
The council liaison (a councilmember) assigned to a board, commission or committee may provide advice, direction, and guidance. The council liaison also facilitates placing board, commission, or committee recommendations on the City Council agenda for council consideration.
The staff liaison handles administrative duties, prepares meeting agendas, and records minutes.
Members may not direct the staff liaison to initiate programs, conduct major studies or establish official policy without the approval of the City Council.
Members should feel free to contact the assigned staff liaisons for inquiries and/or support purposes. It should be understood, however, that members are responsible for all work for its board, commission, or committee. Staff liaisons may provide clerical and administrative support to boards, commissions or committees on an as-needed basis.
Relationships with the Public
Members serve as a liaison between the city and the general public. Thus, each member functions as a communication link between the community and the city, explaining city programs and recommendations, as well as providing a channel for citizen expression.
Board, commission or committee meetings should be conducted in a manner that is conducive to a productive exchange of ideas and perspectives. A non-threatening atmosphere should be prevalent, 389
and steps should be taken to ensure that members of the public are free to express their views without fear of ridicule or belittlement by anyone with an opposing viewpoint.
Members should conduct themselves in a manner that demonstrates fairness and professionalism.
Members should be considerate of all interests and value differences of opinion. Additionally, members should remain open-minded, objective and make no judgment or engage in any partisan position until all of the available evidence pertaining to an issue has been submitted. Common courtesy is expected from city representatives at all levels of the organization.
It is important to recognize that, as a member, your actions and comments are often interpreted to be that of the entire board, commission, committee, the staff, or the city. A member's comments to the press or other public utterances are sometimes misinterpreted even though you state that you are speaking for yourself. They may also be at odds with the board’s, commission’s, or committee’s goals, objectives, or overall policy. It is very important that an individual be clear when stating an opinion.
Members of the public are also expected to conform to an acceptable standard of conduct. Any person who willfully interrupts a public meeting or acts to render the orderly conduct of the meeting infeasible may be barred from the meeting by the Chair. An individual so barred may not return for the remainder of the meeting unless permission is granted by a majority vote of the board, commission, or committee.
The following guidelines are offered:
1. There should be no promises made to the public that are binding on the board, commission, committee, staff, or City Council.
2. Comments to the public and the press must be factual.
3. Members have an obligation to listen to comments or complaints of the public.
City boards, commissions, and committees are not involved in the administration or operation of city departments. The city’s staff reports to the department head, who in turn reports to the city manager. It is, therefore, the responsibility of the department head and/or the city manager to allocate staff time and efforts and direct the priority of work.
The staff liaisons are not considered members of a board, commission or committee and have no power to vote on matters. Because of their support position, staff does not respond to questions from the public at a meeting unless requested to do so by the chairperson.
City staff liaisons serve boards, commissions and committees in an advisory capacity – much the same as the board, commission, or committee serves the Council. Staff liaisons are selected on the basis of their technical and professional abilities and are expected to provide recommendations based on their professional analysis of the situation, regardless of personal opinion or consideration of political consequence. It is not expected that every staff recommendation will be followed; however, because of staff’s technical expertise, full consideration should be given to the staff liaison’s recommendation.
Members should be aware of staff’s responsibility to also provide professional advice to the City Council. In instances where a staff liaison disagrees with a recommendation of the board, commission, or committee he/she serves, he/she is obligated to advise the City Council of his/her recommendation through the city manager or a subsequent staff report. The City Council values both the opinion of the board, commission, or committee as well as staff since staff expresses its opinion from a strictly technical perspective, and boards, commissions, and committees may provide counsel and advice on the issue’s practical application.
All communications from the board, commission, or committee to the public are transmitted through the staff liaison. Similarly, arriving communications are received by the staff liaison and relayed to the 390
board, commission, or committee through the agenda.
MEMBERSHIP
Member Privacy
The City Clerk’s Office does not release the personal contact information of board, commission or committee members without their consent. Requestors will be directed to the staff liaison to verify consent with the member.
Application, Appointments, Reappointments, and Waiting Period to reapply to the same Richmond board, commission, or committee
All residents interested in serving on a City of Richmond board, commission, or committee must complete and submit the appropriate application form (Appendix H) to the city clerk. Employees cannot serve on any city board, commission, or committee. Recommendations for appointment are made by the mayor and approved by the City Council, with the exception of the Richmond Fund for Children and Youth Oversight Board, appointed by the mayor and City Council.
Any person who has served on a board, commission or committee for a period of less than one full calendar year may be appointed to the same body for a full term.
Reappointment is not automatic; therefore, board members, commissioners, and committee members are required to submit a new application to the city clerk prior to each term expiration date (Appendix B), to be considered for reappointment. Members with expired terms may continue to serve until a replacement appointment has been approved (Appendix C, Resolution 24-14).
A termed-out board, commissioner, or committee member is eligible to reapply for appointment to the same board, commission, or committee after a two- year absence from the board, commission, or committee. If appointed, the terms and maximum, consecutive term limits restart.
Oath of Office
Before new board members, commissioners, and committee members can participate as voting members of their respective body, they must complete and file an Oath of Allegiance form (Appendix E) with the city clerk. Failure to take the oath of office within 30 days of the date of the appointment letter shall be cause for automatic termination. Staff liaisons must check with the City Clerk’s Office prior to the first meeting of the board, commission, or committee following the appointment to verify that all newly-appointed members have taken the oath.
Fair Political Practice Commission (FPPC) Filing Requirement and Ethics Training Pursuant to the City of Richmond’s Conflict of Interest Code (Appendix G), members of certain boards, commissions, and committees must complete a FPPC, Statement of Economic Interests, Form 700 upon assuming or leaving office and annually during their term. Form 700 filers must also complete mandatory ethics training (AB 1234) every two years. Failure to comply with the FPPC filing and training requirements can result in automatic resignation. The city clerk will notify the specific board members, commissioners, and committee members that are subject to this provision. It is the responsibility of the board member, commissioner, or committee member to notify the City Clerk’s Office immediately upon any changes to their mailing and/or email address.
Attendance
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Board members, commissioners, and committee members should inform the staff liaison in advance if they are unable to attend a meeting. Failure to comply with the following attendance rules can result in automatic resignation:
a. Absence from more than three regular meetings within a twelve-month period shall be deemed an automatic resignation, with the following exception:
The absence of any member from more than eight regularly scheduled meetings of the Design Review Board within any twelve consecutive-month period constitutes an automatic resignation from the Design Review Board.
Within one week of the third absence (eighth absence for Design Review Board members), the board, commission, or committee staff liaison shall remind the board member or commissioner of the absence rule. Upon the fourth absence (ninth absence for Design Review Board members), the staff liaison shall notify the city clerk to issue a notice of automatic resignation and post the vacancy.
b. A member must be present at least one hour, or 50% of the entire meeting, whichever is less, to be counted as present for purposes of attendance.
Excused Absences
Board members, commissioners, and committee members may make a written request to the chair and staff liaison in advance of a meeting to excuse an absence due to scheduling conflicts and religious or cultural holiday. Requests for all other excused absences may be considered on a case-by-case basis by the chair, with consultation from the city clerk (or his/her representative), as necessary.
Automatic Resignation
The following can result in automatic resignation:
a. Failure to comply with the membership requirements outlined in this handbook.
b. Failure to meet any eligibility requirements of the ordinance, resolution or other law establishing the board, commission, or committee or regulating its membership.
Automatic resignation from a board, commission, or committee does not disqualify an individual from subsequently being appointed to the same or any other board, commission or committee. However, if a member is automatically resigned more than two times due to any of the aforementioned reasons or any combination thereof, he/she may not be appointed again to any board, commission, or committee for one year. No board member, commissioner, or committee member shall be appointed to any board, commission, or committee if there are outstanding Conflict of Interest statements or fines; and no board member, commissioner, or committee member shall be appointed to any board, commission, or committee for a period of one year if automatically resigned more than once for failure to file such statements.
Resignation Procedure
A board member, commissioner, or committee member wishing to resign shall submit a letter or e-mail of resignation directly to the city clerk stating his/her effective date of resignation. Once submitted and the Clerk’s Office acknowledges acceptance, a letter of resignation may not be withdrawn. The city clerk shall notify the mayor and staff liaison of such vacancy. 392
Leaving Office Statement (Form 700)
Within 30 days of an automatic or voluntary resignation, a board member, commissioner or committee member serving on a board, commission or committee subject to annual Fair Political Practice Commission, Statement of Economic Interests, Form 700, will be required to submit a Form 700 leaving office statement.
Use of City Business Cards, Logo, and Insignia, and City Issued Email Board, commission, and committee members may request city business cards, at their own expense, to be used only for official City of Richmond business or promoting the city. The City Clerk’s Office is not responsible for ordering business cards; this is the responsibility of the staff liaison to order business cards from the city’s approved printing vendor. The City Attorney’s Office advises against individual board members, commissioners, and committee members privately printing their own business cards using the city logo or insignia.
A board, commission, or committee member may request a Gmail account for use while serving a term on a City of Richmond board, commission, or committee. The assigned Gmail account should only be used for City of Richmond official business. Please request a Gmail account through your staff liaison. The staff liaison will contact the appropriate department to begin the process. Please be advised that Gmail accounts may be linked to a member at their respective board, commission, or committee website.
CONFLICT OF INTEREST PROHIBITED
Board members, commissioners, and committee members provide advice to the City Council, study various projects and, in the case of certain boards, commissions, and committees, function in a quasi- judicial capacity. Precise relationships vary in that certain of these quasi- judicial determinations may be appealed to the City Council; others may not be. All board members, commissioners, and committee members should be aware of the need to avoid any instances of conflict of interest (Appendix G).
Conflict of interest standards are generally applicable to all boards, commissions, and committees.
Additional requirements may be applicable to particular boards, commissions, and committees.
Influencing the Making of Contracts and Affecting Other Financial Interests The State Political Reform Act, Government Code Sections 81000 et. seq., and the Fair Political Practices Commission (FPPC) Regulation 2 California Administration Code Section 18730 prohibit a board member, commissioner, or committee member from making, participating in making, or attempting to influence the making of any city decision if the board member, commissioner, or committee member knows or has reason to know that it is reasonably foreseeable that the decision will have a material financial effect on specified interests of the board member, commissioner, or committee member or a member of their family distinguishable from its effect on the public generally. A board member, commissioner, or committee member may seek the advice of the City Attorney as to whether he/she should recuse themselves. However, only a formal advice letter from the FPPC will insulate you from enforcement actions by the FPPC. Be sure to seek the advice of the City Attorney or FPPC well before you are required to participate in a matter which would create a possible conflict of interest.
In addition to filing required disclosure statements described below, any such conflict of interest should be publicly disclosed and noted in the official record of the board, commission, or committee. In such cases it is not sufficient simply to abstain from voting; the positive act of verbal disclosure is required.
Disclosure Statements Required
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The Government Code of the State of California requires that designated commissions file Fair Political Practices Commission (FPPC), Statements of Economic Interests (Form 700), in which they disclose specified financial interests. The latest City of Richmond Conflict of Interest resolution, located on the City Clerk’s website, specifies each board, commission, or committee which is subject to this requirement and the interests which must be disclosed.
Board members, commissioners, and committee members specified in the current Conflict of Interest resolution must file a Form 700, with the city clerk annually and within thirty days of assuming or leaving office.
If a member has been auto-resigned more than thirty days from a board, commission, or committee for any reason, and the mayor wishes to reappoint that person, the member must first file a "Leaving Office" statement prior to the new appointment. He/she is then required to file another "Assuming Office" statement within thirty days of the new appointment date.
Any board member, commissioner, or committee member who fails to file any required Form 700 within the time specified for such statement will be fined and may be automatically resigned. No board member, commissioner, or committee member shall be appointed to any board, commission, or committee if there is an outstanding Form 700 or fines; and no board member, commissioner, or committee member shall be re-appointed to any board, commission, or committee for one year if auto- resigned for failure to file such disclosure statements.
Incompatible Public Offices
The common law doctrine of incompatible public offices prohibits a public official from occupying two public offices which are incompatible in terms of their duties and/or the likelihood of divided loyalties.
Effective immediately, board members, commissioners, and committee members may no longer be appointed to multiple Richmond boards, commissions or committees. Board members, commissioners, and committee members may apply for appointment to other Richmond boards or commissions in their current position prior to term expiration. However, upon appointment to the new board, commission, or committee, he/she shall immediately submit written notification to the city clerk resigning from their former appointment. Board members, commissioners, and committee members appointed to more than one Richmond board, commission, or committee prior to the date of this handbook, may continue to serve on multiple boards, commissions, and committees to complete each term.
Incompatible Activities for Compensation
Government Code Section 1126 prohibits a public official from engaging in activities for compensation incompatible with their public office. If you are engaged in compensated activities which may be incompatible with your duties as a board member, commissioner, or committee member, please consult the city attorney.
BOARD, COMMISSION, AND COMMITTEE ORGANIZATION
Officers Election and Term of Office
The election of board, commission, and committee officers shall occur annually pursuant to the resolution, ordinance, or bylaws that govern each body. The chairperson and vice chairperson are elected by the majority of the board, commission, or committee for a one-year term and hold office until their successors are elected. No board member, commissioner, or committee member shall serve as chairperson for more than two consecutive years. The results of the vote shall be publicly announced and the vote recorded in the minutes.
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Duties of Officers
The chairperson, or in her/his absence, the vice chairperson, performs the following duties:
• Presides at all meetings of the board, commission, or committee and ensures that the work of the board, commission, or committee is accomplished. To this end, the chairperson must exert sufficient control of the meeting and ensure that all viewpoints are heard and are considered in a fair and impartial manner.
• Approves and signs correspondence and reports on behalf of the board, commission, or committee.
• Represents the board, commission, or committee before the City Council with the approval of the board, commission, or committee.
• Performs other duties necessary or customary to the office.
Transfer of Chair
In the absence of the chairperson or his/her inability to act, the vice chairperson presides in place of the chairperson. In the event of the absence or the inability to act of both the chairperson and the vice chairperson, the remaining members elect one of their members to act as temporary chairperson.
Vacancies
Board, commission, and committee vacancies as a result of final term expiration and resignations are publicly announced by the mayor at City Council meetings and posted on the city’s website. On or before December 31st of each year, a Notice of Expiration of Terms and Vacancies is published in a newspaper of general circulation, in compliance with the requirements of the Maddy Act, Government Code Section 54972.
DEVELOPMENT OF A WORK PROGRAM
Many boards, commissions, and committees find it effective to establish an optional yearly work program or goals statement. A work program is a planning document that specifies how and when the objectives (outcomes) which the board, commission, or committee expects to accomplish during the fiscal year will be achieved. Goal statements explain the nature and scope of the work to be performed and the time needed to accomplish the goal. The nature of the duties of specific boards, commissions, and committees may determine which method is most suitable.
Designing yearly work programs or goal statements may be done in conjunction with the development of the relevant departmental work plan so that the department and board, commission, or committee’s work will complement each other throughout the year.
MEETING BASICS
Requirement to Meet in Public – Ralph M. “Brown Act”
The Ralph M. Brown Act, commonly referred to as the “Brown Act,” is codified in the California Government Code beginning at Section 54950. The Brown Act mandates that local government business be conducted at open and public meetings, except in certain limited situations (i.e. closed sessions). The central provision of the Brown Act requires all “meetings” of a “legislative body” to be open and public. The Brown Act broadly defines the term “meeting” to include any congregation of a majority of the members of a particular legislative body at the same time and place to hear, discuss, or deliberate upon any item that is within the subject matter jurisdiction of the legislative body. Richmond boards, commissions, and committees are a “legislative body”. Under the Brown Act, a majority of the 395