Agenda — Richmond City Council, February 18, 2025 (part 1 of 3)

PLEASE NOTE: HYBRID MEETING FORMAT

- REGULAR MEETING OF THE RICHMOND CITY COUNCIL

Tuesday, February 18, 2025, 4:30 p.m.

Community Services Building
440 Civic Center Plaza
Richmond, CA 94804
Members:

Eduardo Martinez, Mayor at Large
Jamelia Brown, Councilmember District 1
Cesar Zepeda, Vice Mayor, District 2
Doria Robinson, Councilmember District 3
Soheila Bana, Councilmember District 4
Sue Wilson, Councilmember District 5
Claudia Jimenez, Councilmember District 6

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

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

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

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

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

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

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

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

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

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

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

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

Click here for City Harassment Policy

Accessibility for Individuals with Disabilities: Upon request, the City will provide for written agenda materials in appropriate alternative formats, or disability-related modification or accommodation, including auxiliary 2-18-25 CC Mtg.
3 aids or services and sign language interpreters, to enable individuals with disabilities to participate in and provide comments at/related to public meetings. Please submit a request, including your name, phone number and/or email address, and a description of the modification, accommodation, auxiliary aid, service or alternative format requested at least two days before the meeting. Requests should be emailed to [email protected] or submitted by phone at 510-620-6513, ext. 9, or 510-620-6509.

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

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

Disclaimer: The City Clerk's Office translates agendas to enhance public access. Translated agendas are provided as a courtesy and do not constitute legal notice of the meeting or items to be discussed. In case of discrepancy, the English agenda will prevail.

Pages
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4 A. OPEN SESSION TO HEAR PUBLIC COMMENT BEFORE CLOSED SESSION 4:30 p.m.

B. ROLL CALL
C. CLOSED SESSION
C.1 PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957)
Title: City Clerk•
Title: City Attorney•
C.2 CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6)
Agency Representatives: Sharrone Taylor, Jack Hughes, Lisa Charbonneau
•
Employee organizations:

SEIU Local 1021 Full Time Unit and Part Time Unit1.

IFPTE Local 21 Mid-Level Management Unit and Executive
Management Units

2. Richmond Police Officers Association RPOA3.

Richmond Police Management Association RPMA4.

IAFF Local 1885.

Richmond Fire Management Association RFMA6.

C.3 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (paragraph (1) of Subdivision [d] of Government Code Section 54956.9) City of Richmond v. Riggers Loft Wine Company•
C.4 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to paragraph (2) or (3) of Subdivision (d) [as applicable] of Government Code Section 54956.9) One Case•
D. PUBLIC COMMENT BEFORE CLOSED SESSION (limited to items on the Closed Session agenda only)
E. ADJOURN TO CLOSED SESSION
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5 F. REGULAR MEETING OF THE RICHMOND CITY COUNCIL
6:30 p.m.

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

CLOSED SESSION
L. REPORT FROM THE CITY MANAGER (public comment allowed under Open Forum) M. OPEN FORUM FOR PUBLIC COMMENT
(public comment on items that remain on the Consent Calendar or items not on the agenda - limited to 2 minutes unless otherwise specified - Back and forth dialogue with the Council is prohibited)
N. CITY COUNCIL CONSENT CALENDAR
(All items placed under the Consent Calendar are considered to be routine and noncontroversial. These items will be enacted upon together with a motion and second, without discussion, of any member of the City Council, and each item shall be deemed to have received the action recommended.)
N.1 City Clerk's Office
N.1.a Meeting Minutes 8
APPROVE the minutes of the January 7, 2025, and February 4, 2025, regular City Council meetings and the January 14, 2025, Swearing-In Ceremony - City Clerk's Office (Pamela Christian 510- 620-6513).

N.2 Finance Department
N.2.a Budget Book Compilation and Publishing Services 26 APPROVE a contract with Govdollars Consulting in an amount not to exceed $66,000, over a three-year term from February 1, 2025, through January 31, 2028, with two one-year extension options for $16,000, annually to provide budget book compilation services – Finance Department (Andrea Miller 510-620-6790/ Mubeen Qader 510-412-2077/Jerry Gurule 510-620-6591).

N.2.b Investment and Cash Balance Report, Monthly Overtime Reports, and Documentary Transfer Tax Report for the Month of December 2024
166
RECEIVE the City’s Investment and Cash Balance Report, Monthly Overtime Reports, and Documentary Transfer Tax Report for the month of December 2024 – Finance Department (Andrea Miller 510- 620-6740).
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6 N.3 Human Resources
N.3.a Receive the 2024 Annual Report of the Personnel Board 184 RECEIVE the 2024 Annual Report of the Personnel Board to adhere to the requirement that the annual report is transmitted to the City Council on an annual basis - Human Resources Department (Nickie Mastay/Sharrone Taylor 510-620-6602).

O. BUDGET SESSION
O.1 Guiding Fiscal Policy Update 194
REVIEW and ADOPT updates to the Guiding Fiscal Policy – Finance Department (Shasa Curl/Nickie Mastay 510-620-6609/ Andrea Miller 510-620- 6790/ Mubeen Qader 510-412-2077).

O.2 Financial Policies and Administrative Policy Manual Update 206 ADOPT a resolution approving the updates to the Finance Policies and Administrative Policy Manual and adopting the Unclaimed Funds Policy - Finance Department (Andrea Miller 510-620-6790/Mubeen Qader 510-412- 2077/Jerry Gurule 510-620-6591).

P. PUBLIC HEARINGS
P.1 Keller Beach Sanitary Sewer Moratorium- Adoption of Urgency Ordinance 475 ADOPT an urgency ordinance, pursuant to Government Code Section 65858, establishing a temporary moratorium (45 days) on the issuance of building permits requiring a new sewer connection to the Keller Beach Sanitary Sewer (KBSS) and declaring the urgency thereof pursuant to Government Code Section 65858. The ordinance is not a project under the California Environmental Quality Act (CEQA), as it maintains the existing physical environment and prevents changes in the environment, thereby having no potential for direct or reasonably foreseeable indirect physical change (CEQA Guidelines Section 15378(a)). It is also exempt under Guidelines Sections 15060(c)(2), as the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment, and Section 15061(b)(3), as there is no possibility that adoption of this ordinance will have a significant effect on the environment because it maintains the existing condition of the environment - Public Works Department (Daniel Chavarria 510-620-5478/Robert Armijo 510- 620-5477).

Q. REPORTS OF OFFICERS: REFERRALS TO STAFF, AND GENERAL REPORTS (INCLUDING AB 1234 REPORTS)(limited to two minutes per Councilmember)(public comments allowed under Open Forum)
R. ADJOURNMENT
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RICHMOND, CALIFORNIA,

January 7, 2025, 4:30 p.m.

Community Services Building
440 Civic Center Plaza
Richmond, CA 94804

_____________________________________________________________________

A. OPEN SESSION TO HEAR PUBLIC COMMENT BEFORE CLOSED SESSION Mayor Eduardo Martinez called the meeting to order at 4:30 p.m.

B. ROLL CALL

Present: Councilmembers Soheila Bana, Doria Robinson, Cesar Zepeda, Vice Mayor Claudia Jimenez, and Mayor Eduardo Martinez. Absent: Councilmember Gayle McLaughlin arrived after the roll was called. Councilmember Melvin Willis arrived after adjourning to Closed Session.

C. CLOSED SESSION
C.1 LIABILITY CLAIMS (Government Code Section 54956.9)
• Claimant: Terminal One Development, LLC.

C.2 PUBLIC EMPLOYEE PERFORMANCE EV ALUATION (Government Code Section 54957)
• Title: City Attorney
C.3 CONFERENCE WITH LABOR NEGOTIATORS (Government Code
Section 54957.6)
• Agency Representatives: Sharrone Taylor, Jack Hughes, Lisa Charbonneau Employee organizations:

1. SEIU Local 1021 Full Time Unit and Part Time Unit

2. IFPTE Local 21 Mid-Level Management Unit and Executive Management Units

3. Richmond Police Officers Association RPOA

4. Richmond Police Management Association RPMA

5. IAFF Local 188

6. Richmond Fire Management Association RFMA
D. PUBLIC COMMENT BEFORE CLOSED SESSION (limited to items on the Closed Session agenda only)
Cordell Hindler spoke in favor of a positive evaluation for City Attorney Dave Aleshire.

E. ADJOURN TO CLOSED SESSION
The meeting adjourned at 4:33 p.m. Closed Session adjourned at 6:37 p.m.

F. REGULAR MEETING OF THE RICHMOND CITY COUNCIL
Mayor Eduardo Martinez called the meeting to order at 6:42 p.m.

G. PLEDGE OF ALLEGIANCE
Mayor Eduardo Martinez led the Pledge of Allegiance to the Flag. 8 cc07Jan2025 – ud/prc

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H. ROLL CALL

Present: Councilmembers Soheila Bana, Gayle McLaughlin, Doria Robinson, Melvin Willis Cesar Zepeda, Vice Mayor Claudia Jimenez, and Mayor Eduardo Martinez.

Absent: None.

I. STATEMENT OF CONFLICT OF INTEREST
None.

J. AGENDA REVIEW
Item N.3.a - Resolution urging the Federal Government to support the immediate recognition of the Confederated Villages of Lisjan Nation, Muwekma Tribe and Ohlone Tribe's Federal status was continued to a future City Council meeting.

Item N.7.a Introduce an ordinance amending the monthly salary for the Mayor and introduce an ordinance amending the monthly salary for City Councilmembers; N.8.a - Resolution for on-demand photography services from a pool of certified vendors; and Item N.9.a - AB 481 " Military Equipment Uses" Annual Report were removed from the consent calendar for discussion.

A correction was made to Item N.10.a - Resolution to award a contract to Forster & Kroeger Landscape Maintenance, Inc. for vegetation management services at Point Molate that the beginning date on attachment 3 of the draft contract should be January 1, 2025.

Item O.1 - Equitable allocation of funding and mailing services for all neighborhoods; Item O.2 - Street calming measures; and Item O.3 - Sanctuary City compliance exception for software applications by LexisNexis were withdrawn from the agenda.

K. REPORT FROM THE CITY ATTORNEY OF FINAL DECISIONS MADE

DURING CLOSED SESSION
C.1 LIABILITY CLAIMS (Government Code Section 54956.9)  Claimant: Terminal One Development, LLC.

Item was discussed. No reportable action was taken.

C.2 PUBLIC EMPLOYEE PERFORMANCE EV ALUATION (Government Code Section 54957)
 Title: City Attorney
Item was not discussed.

C.3 CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6)
 Agency Representatives: Sharrone Taylor, Jack Hughes, Lisa Charbonneau Employee organizations:

1. SEIU Local 1021 Full Time Unit and Part Time Unit

2. IFPTE Local 21 Mid-Level Management Unit and Executive Management Units

3. Richmond Police Officers Association RPOA

4. Richmond Police Management Association RPMA

5. IAFF Local 188

6. Richmond Fire Management Association RFMA
Item was discussed. No reportable action was taken.

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L. REPORT FROM THE CITY MANAGER (public comment allowed under Open Forum)
City Manager Shasa Curl presented the report.

Link to view report: City Manager's Report
L.1 NEW EMPLOYEE REPORT - 1st Tuesday
Human Resources Director Sharrone Taylor gave the report.

Link to report: December 2024 Employee Report
M. OPEN FORUM FOR PUBLIC COMMENT
(public comment on items that remain on the Consent Calendar or items not on the agenda - limited to 2 minutes unless otherwise specified - Back and forth dialogue with the Council is prohibited)
Cordell Hindler encouraged the council to reinstate the standing committees.

Don Gosney gave comments regarding the limited time allowed for public speakers at city council meetings.

Michelle Hayes and Gayle McLaughlin thanked Kimberlyn Carson-Thrower for her assistance with the Commission on Aging.

Rene Gutierrez Garcia, Sally Hindman, Deanne Pearn, O'Neill Fernandez, Dana Carl, Dennis Perez spoke in support of the establishment of Tiny Villages in Richmond and thanked the city council for its support.

Mark Wassberg gave comments regarding sanctuary cities.

David Sharples thanked staff and the city council for passing the updated rental inspection ordinance.

Patricia Perez gave comments regarding her grandson Pedie Perez.

Richie Cook thanked the city for its decorum and public service.

Item N.3.a - Resolution urging the Federal Government to support the immediate recognition of the Confederated Villages of Lisjan Nation, Muwekma Tribe and Ohlone Tribe's Federal status; Item N.7.a Introduce an ordinance amending the monthly salary for the Mayor and introduce an ordinance amending the monthly salary for City Councilmembers; N.8.a - Resolution for on-demand photography services from a pool of certified vendors; and Item N.9.a - AB 481 " Military Equipment Uses" Annual Report.

Motion by Councilmember Gayle McLaughlin
Seconded by Councilmember Melvin Willis

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Ayes (7): Councilmember Soheila Bana, Councilmember Gayle McLaughlin, Councilmember Doria Robinson, Councilmember Melvin Willis, Councilmember Cesar Zepeda, Vice Mayor Claudia Jimenez, and Mayor Eduardo Martinez Passed

N.1 City Attorney's Office
N.1.a Ordinance Creating New Business Activity Classification, “Class Q – Automobile Dealerships” and the Corresponding Rates
ADOPT an ordinance (second 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).

Adopted Ordinance No. 01-25 N.S.

N.2 City Clerk's Office
N.2.a Meeting Minutes
APPROVE the minutes of the November 19, November 26, and December 3, 2024, regular City Council meetings - City Clerk's Office (Pamela Christian 510-620-6513).

N.3 City Council
N.3.a Resolution Urging the Federal Government to Support the Immediate Recognition of the Confederated Villages of Lisjan Nation, Muwekma Tribe and Ohlone Tribe’s Federal Status
ADOPT a resolution urging the U.S. Congress, the White House, the Department of the Interior and the Bureau of Indian Affairs to acknowledge and federally recognize all of the Chochenyo speaking tribes of the East Bay, including the Muwekma, the Confederated Villages of Lisjan Nation and the Ohlone Tribe of the San Francisco Bay Area – Councilmember Gayle McLaughlin (510-620-6636), Councilmember Doria Robinson (510-620-6568), and Vice Mayor Claudia Jimenez (510- 620-6565).

Item was withdrawn and continued to a future city council meeting.

N.3.b City contribution to Hope Solutions to provide supportive services for the Richmond Tiny Village Farm and Garden project.

DIRECT City staff to work with Contra Costa Interfaith Transitional Housing, Inc. (dba Hope Solutions) to prepare a contract and any other necessary agreements to provide supportive services for the Richmond Tiny House Village Farm and Garden project at 175 23rd Street for calendar year 2025 and bring these documents to the City Council for final approval by February 18, 2025 – Councilmember Gayle McLaughlin (510-620-6636), Vice Mayor Claudia Jimenez (510-620-6565), and Councilmember Doria Robinson (510-620-6568).This item was continued from the November 26, 2024, meeting.

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N.4 Community Development
N.4.a Residential Rental Inspection Program Ordinance Amendments ADOPT an ordinance (second reading) amending Richmond Municipal Code Chapter 6.40 Residential Rental Dwelling Unit Inspection and Maintenance to eliminate the self-certification process, expand units covered, including certain affordable housing units, and add other amendments to enhance the program – Community Development Department (Lina Velasco 510-620-6841/George Kabaivanov 510-620- 6649).

Adopted Ordinance 02-25 N.S.

N.5 Economic Development
N.5.a Contract with Renaissance Entrepreneurship Center to Administer the Small Business Building Beautification Pilot Program.

APPROVE a contract with Renaissance Entrepreneurship Center for small business assistance in an amount not to exceed $340,000, with a term beginning on January 7, 2025, and ending on December 31, 2026 – Economic Development Department (Nannette Beacham 510-621- 1306/Lizeht Zepeda 510-620-6653/Kyle Lam 510-620-6802).

N.5.b Contract with Empower Soul Studios for Events and Marketing Services for Buy Local Campaign
APPROVE a contract with Empower Soul Studios for event and marketing consultant services for the Buy Local Campaign in an amount not to exceed $156,000, for the term January 7, 2025, through December 31, 2026 – Economic Development Department (Nannette Beacham 510- 621-1306/Lizeht Zepeda 510-620-6653/Kyle Lam 510-620-6802).

N.5.c Contract with Bludot Technologies, Inc. for Buy Local Software Platform APPROVE a contract with Bludot Technologies, Inc. for a Buy Local software platform, in an amount not to exceed $200,000, for the term January 7, 2025, through December 31, 2026 – Economic Development Department (Nannette Beacham 510-621-1306/Lizeht Zepeda 510-620- 6653/Kyle Lam 510-620-6802).

N.5.d Public Health Institute CivicSpark AmeriCorps Program Contract APPROVE a sole-source contract with Public Health Institute for one full- time CivicSpark AmeriCorps fellow for a total contract amount not to exceed $36,000, with a term ending on December 31, 2025 – Economic Development Department (Samantha Carr 510-620-5407/ Nannette Beacham 510-620-1306).

N.6 Finance Department
N.6.a Approval of Write-Off of Uncollectible Accounts Receivables ADOPT a resolution authorizing the write-off of delinquent and/or uncollectible accounts receivable in the amount of $376,246.42 – Finance Department (Andrea Miller 510-620-6790/Mubeen Qader 510-412- 2077/Antonio Banuelos 510-620-6741).

Adopted Resolution No. 1-25.
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N.7 Human Resources
N.7.a Introduce an Ordinance Amending the Monthly Salary for the Mayor and Introduce an Ordinance Amending the Monthly Salary for City Councilmembers
INTRODUCE an ordinance (first reading) amending the monthly salary for City Council members; and INTRODUCE an ordinance (first reading) amending the monthly salary for the Mayor – Human Resources (Sharrone Taylor 510-620-6803)/City Attorney's Office (Shannon Moore 510-620- 6505).

Deputy City Manager Nickie Mastay gave an overview.

Elsa Stevens, Don Gosney, Debbie Bayer, and Terri Hinte gave comments.

Discussion ensued.

The ordinances were introduced.

A motion was made to introduce an ordinance amending the monthly salary for City Council members.

Motion by Councilmember McLaughlin
Seconded by Councilmember Willis
Ayes (7): Councilmember Soheila Bana, Councilmember Gayle McLaughlin, Councilmember Doria Robinson, Councilmember Melvin Willis, Councilmember Cesar Zepeda, Vice Mayor Claudia Jimenez, and Mayor Eduardo Martinez.

No (0)
A motion was made to introduce an ordinance amending the monthly salary for the Mayor.

Motion by Councilmember Gayle McLaughlin
Seconded by Councilmember Melvin Willis
Ayes (6): Councilmember Soheila Bana, Councilmember Gayle McLaughlin, Councilmember Doria Robinson, Councilmember Melvin Willis, Councilmember Cesar Zepeda, and Vice Mayor Claudia Jimenez Abstentions (1): Mayor Eduardo Martinez
Passed

N.8 Information Technology
N.8.a Resolution for On-Demand Photography Services from a pool of certified vendors
ADOPT a resolution authorizing the Department of Information Technology to use standing orders/outline agreements for on demand photographers from two pre-approved vendors in an amount not to exceed $50,000 per year per vendor for Fiscal Year 2024-2025 with review and approval from City Attorney’s Office – Information Technology Department (Sue Hartman 510-620-6874).

Deputy City Manager Nickie Mastay gave an overview.
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Don Gosney gave comments.

Discussion ensued.

Adopted Resolution No. 2-25.

Motion by Councilmember Melvin Willis
Seconded by Councilmember Gayle McLaughlin
Ayes (7): Councilmember Soheila Bana, Councilmember Gayle McLaughlin, Councilmember Doria Robinson, Councilmember Melvin Willis, Councilmember Cesar Zepeda, Vice Mayor Claudia Jimenez, and Mayor Eduardo Martinez
Passed

N.9 Police Department
N.9.a AB 481 “Military Equipment Use” Annual Report
ADOPT a resolution accepting the 2023 annual military equipment report, determining that the military equipment in 2023 complied with Richmond Police Department Policy 707 and determining that policy 707 will be accepted with recommended amendments; and RECEIVE staff recommendations for additional resources - Police Department (Bisa French 510-621-1802). This item was continued from the December 17, 2024, meeting.

Police Chief Bisa French, Assistant Police Chief Tim Simmons, and Captain John Lopez, gave an overview.

Mark Wassberg, Jamin Pursell, Andrew Melendez, Rosie Rendon, Dennis Perez, Davjanee Tillis, John Lindsay-Poland, Debbie Bayer, and Autum Adeyan gave comments.

Discussion ensued.

A motion made by Councilmember Zepeda, seconded by Councilmember Bana to approve the item.

A substitute motion by Councilmember McLaughlin, seconded by Vice Mayor Jimenez to adopt the resolution accepting the 2023 annual military equipment report and when the 2024 report comes back to Council it should include a process for tracking and reporting both the displaying and deployment of military equipment in 2025.

Councilmember Robinson offered a friendly amendment to focus first on deployment of military equipment only.

Following discussion, Councilmember Robinson, rescinded her friendly amendment offer and the substitute motion was approved.

Adopted Resolution No. 3-25.

Motion by Councilmember Gayle McLaughlin
Seconded by Vice Mayor Claudia Jimenez
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Ayes (5): Councilmember Soheila Bana, Councilmember Gayle McLaughlin, Councilmember Melvin Willis, Vice Mayor Claudia Jimenez, and Mayor Eduardo Martinez

Abstentions (2): Councilmember Doria Robinson, and Councilmember Cesar Zepeda
Passed

N.10 Public Works
N.10.a Resolution to Award a Contract to Forster & Kroeger Landscape Maintenance, Inc. for Vegetation Management Services at Point Molate ADOPT a resolution to award a three-year contract with Forster & Kroeger Landscape Maintenance, Inc. beginning on January 1, 2025, and ending on December 31, 2027, in an amount not to exceed $360,000, with two optional one-year extensions for a total amount of $240,000 for both extension years – Public Works Department (Wade Finlinson 510-621- 1301/Tawfic Halaby 510-620-5482/Daniel Chavarria 510-620-5478).

The beginning date of the draft contract was corrected to January 1, 2025.

Adopted Resolution No. 4-25.

O. NEW BUSINESS
O.1 Equitable Allocation of Funding and Mailing Services for All Neighborhoods DIRECT staff to develop a framework for a program that allocates funding and city-supported mailing services to all neighborhoods, regardless of whether they have a recognized Neighborhood Council, Homeowners Association, or neither, to support community-building activities and neighborhood improvements – Councilmember Soheila Bana (510-620- 6473). This item was continued from the November 26, 2024, meeting.

Item was withdrawn from the agenda.

O.2 Street Calming Measures
DIRECT staff to immediately evaluate traffic calming measures throughout the City, including along Canal Boulevard, to slow traffic down, and place mitigation measures in at least six locations City-wide to prevent drivers of vehicles from performing “donuts” at these intersections, no later than the end of January 2025 - Councilmember Cesar Zepeda (510-620-6593). This item was continued from the November 26, 2024, meeting.

Item was withdrawn from the agenda.

O.3 Sanctuary City Compliance Exception for software applications by LexisNexis
APPROVE a request for LexisNexis to waive the requirement to sign and comply with the Sanctuary City Compliance form, in order for LexisNexis to provide software application services to Richmond Police Department staff – Police Department (Chief Bisa French 510-621-1802). This item was continued from the December 17, 2024, meeting.

Item was withdrawn from the agenda.
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O.4 Temporary Moratorium on Parklets in the City of Richmond DIRECT the City Attorney’s Office to draft a temporary moratorium on parklets and amendments no later than October 2025 to Richmond Municipal Code section 14.46.090 to address: 1) inconsistencies or lack of clarity in the building permit versus easement process, 2) issues with the citing of parklets (both number in and area and permitted locations), 3) the length of time parklets are allowed considering the cost of constructing a parklet, 4) the impact parklets may have both positively on the economy due to encouraging a pedestrian and active transportation culture that tends to patronize small businesses, and negatively due to further limiting availability of parking spaces, and 5) improve clarity on non- exclusive use by any one or more businesses or their patrons - Councilmember Doria Robinson (510-620-6568) and Councilmember Cesar Zepeda (510-620- 6593).

Councilmembers Robinson and Zepeda gave an overview.

Cordell Hindler gave comments.

Discussion ensued.

Following discussion, a motion was made to approve the item.

Motion by Councilmember Doria Robinson
Seconded by Councilmember Cesar Zepeda
Ayes (7): Councilmember Soheila Bana, Councilmember Gayle McLaughlin, Councilmember Doria Robinson, Councilmember Melvin Willis, Councilmember Cesar Zepeda, Vice Mayor Claudia Jimenez, and Mayor Eduardo Martinez Passed

P. REPORTS OF OFFICERS: REFERRALS TO STAFF, AND GENERAL REPORTS (INCLUDING AB 1234 REPORTS)(limited to two minutes per
Councilmember)(public comments allowed under Open Forum) Councilmember Zepeda thanked everyone that organized the Snow Day at Nicholl Park.

Councilmember McLaughlin announced the following: it was her last day at an official city council meeting; encouraged people to continue to go to the Marina Bay Farmer's Market; she would continue to work on the Neighborhood Scale Electrification project and was seeking funding and grants; and would also work on the sea level rise plan and solutions for the unhoused.

Q. ADJOURNMENT
There being no further business, the meeting adjourned at 10:21 p.m., to meet again on January 14, 2025, at 5:00 p.m.

Clerk of the City of Richmond Mayor

16 RICHMOND, CALIFORNIA,

January 14, 2025, 5:00 p.m.

Community Services Building
440 Civic Center Plaza
Richmond, CA 94804

City of Richmond Swearing-In Ceremony

A. Welcome and Introduction

Mayor Eduardo Martinez welcomed everyone to the Swearing-In Ceremony.

B. Roll Call

Present: Councilmembers Soheila Bana, Gayle McLaughlin, Doria Robinson, Cesar Zepeda, Melvin Willis, Vice Mayor Claudia Jimenez, and Mayor Eduardo Martinez.

Absent: None.

C. Invocation
Pastor Eric Morris, Pilgrim Rest Baptist Church gave the invocation.

D. Best Wishes to Departing Councilmembers
Mayor Martinez and Councilmembers Bana, Robinson, Zepeda, and Vice Mayor Jimenez gave comments.

E. Acknowledgment of Service Awards/Proclamations to leaving Councilmembers

Mayor Martinez presented the service awards and proclamations. Harpreet Sandhu, representing the Office of John Garamendi and Contra Costa County Supervisor John Gioia also presented proclamations.

F. Comments

Councilmembers McLaughlin and Willis gave comments.

17 G. Public Comment

Cordell Hindler, Kay Wallace, Juan Reardon, Elsa Stevns, Ryan Lau, Amy Ishi, Brown, Maya Vaughn, Francisco Ortiz, John Gioia, Guadalupe Enalla, and Tarnell Abbot.

H. Administration of Oath of Office and Presentation of Certificates of Election

City Clerk Pamela Christian administered the oath of office and presented Certificates of election to newly and re-elected Councilmembers Jamelia Brown, Sue Wilson, and Claudia Jimenez.

I. Comments and Expressions of Appreciation

Newly and re-elected Councilmembers Jamelia Brown, Sue Wilson, and Claudia Jimenez gave comments.

J. Roll Call

Present: Councilmembers Soheila Bana, Jamelia Brown, Claudia Jimenez, Doria Robinson, Sue Wilson, Cesar Zepeda, and Mayor Eduardo Martinez. Absent: None.

K. Welcome to Newly and Re-elected Councilmembers

Mayor Eduardo Martinez, Councilmembers Soheila Bana, Doria Robinson, and Cesar Zepeda gave comments.

L. Closing Remarks and Adjournment

Mayor Eduardo Martinez gave closing remarks. The swearing-in ceremony adjourned at 7:23 p.m. A reception followed in the Richmond Memorial Auditorium.

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RICHMOND, CALIFORNIA, February 4, 2025

Community Services Building
440 Civic Center Plaza
Richmond, CA 94804

_____________________________________________________________________

A. OPEN SESSION TO HEAR PUBLIC COMMENT BEFORE CLOSED SESSION The Richmond City Council Evening Open Session was called to order at 4:30 p.m. by Mayor Eduardo Martinez.

B. ROLL CALL

Present: Councilmembers Soheila Bana, Jamelia Brown, Claudia Jimenez, Sue Wilson, and Mayor Eduardo Martinez. Absent: Councilmember Doria Robinson was absent from the entire meeting. Vice Mayor Cesar Zepeda arrived after the roll was called.

C. CLOSED SESSION
C.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (paragraph (1) of Subdivision [d] of Government Code Section 54956.9)  Guillermo Gomez v. John Temple, et al.

C.2 PUBLIC EMPLOYEE PERFORMANCE EV ALUATION (Government Code Section 54957)
 Title: City Attorney
C.3 LIABILITY CLAIMS (Government Code Section 54956.9)
 Claimant: Terminal One Development, LLC.

C.4 CONFERENCE WITH LABOR NEGOTIATORS (Government Code
Section 54957.6)
 Agency Representatives: Sharrone Taylor, Jack Hughes, Lisa Charbonneau
Employee organizations:

1. SEIU Local 1021 Full Time Unit and Part Time Unit

2. IFPTE Local 21 Mid-Level Management Unit and Executive Management Units

3. Richmond Police Officers Association RPOA

4. Richmond Police Management Association RPMA

5. IAFF Local 188

6. Richmond Fire Management Association RFMA
D. PUBLIC COMMENT BEFORE CLOSED SESSION (limited to items on the Closed Session agenda only)
Cordell Hindler gave comments in person.

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E. ADJOURN TO CLOSED SESSION
The Open Session adjourned to Closed Session at 4:32 p.m. Closed Session adjourned at 6:27 p.m.

F. REGULAR MEETING OF THE RICHMOND CITY COUNCIL
The Regular Meeting of the Richmond City Council was called to order at 6:31 p.m. by Mayor Eduardo Martinez.

G. PLEDGE OF ALLEGIANCE
Mayor Martinez led the Pledge of Allegiance to the Flag.

H. ROLL CALL

Present: Councilmembers Soheila Bana, Jamelia Brown, Claudia Jimenez, Sue Wilson, Vice Mayor Cesar Zepeda, and Mayor Eduardo Martinez. Absent: Councilmember Doria Robinson was absent from the entire meeting.

I. STATEMENT OF CONFLICT OF INTEREST
None.

J. AGENDA REVIEW
Item N.4.b (Comparative Analysis of Drone Shows to Traditional Fireworks as an Alternative to the Third of July Celebration) was removed from the Consent Calendar for discussion.

K. REPORT FROM THE CITY ATTORNEY OF FINAL DECISIONS MADE

DURING CLOSED SESSION
C.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (paragraph (1) of Subdivision [d] of Government Code Section 54956.9) • Guillermo Gomez v. John Temple, et al.

Direction given for settlement negotiations.

C.2 PUBLIC EMPLOYEE PERFORMANCE EV ALUATION (Government Code Section 54957)
• Title: City Attorney
Not Discussed.

C.3 LIABILITY CLAIMS (Government Code Section 54956.9) • Claimant: Terminal One Development, LLC.

Council approved entering into a tolling agreement.

C.4 CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6)
• Agency Representatives: Sharrone Taylor, Jack Hughes, Lisa Charbonneau Employee organizations:

1. SEIU Local 1021 Full Time Unit and Part Time Unit

2. IFPTE Local 21 Mid-Level Management Unit and Executive Management Units

3. Richmond Police Officers Association RPOA

4. Richmond Police Management Association RPMA
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5. IAFF Local 188

6. Richmond Fire Management Association RFMA
Discussed. No reportable action taken.

L. REPORT FROM THE CITY MANAGER (public comment allowed under Open Forum)
City Manager Shasa Curl provided a report. Fire Chief Aaron Osorio provided an update on weather conditions and recent incidents. Link to view report: City Manager's Report L.1 NEW EMPLOYEE REPORT - 1st Tuesday
Human Resources Director Sharrone Taylor provided a New Employee Report.

Link to view report: New Employee Report
M. OPEN FORUM FOR PUBLIC COMMENT
(public comment on items that remain on the Consent Calendar or items not on the agenda - limited to 2 minutes unless otherwise specified - Back and forth dialogue with the Council is prohibited)
The following individuals gave comments in person:

Cordell Hindler suggested that the City collaborate with the West Contra Costa Unified School District and UC Berkeley. Mr. Hindler also suggested that the City reinstate standing committees.

Mark Wassberg gave comments regarding recent boycotts and immigration.

Jamin Pursell gave comments regarding immigration and expressed appreciation for the City's support of all its residents. Mr. Pursell expressed appreciation for the new employee report and suggested a report on the number of staff leaving be brought forth as well.

The following individuals gave comments via teleconference:

Susan Glendening gave comments regarding the Keller Beach Sanitary Sewer System and Ordinance No. 02-23 N.S.

Jessi Taran gave comments regarding the new presidential administration's policies and expressed concern for vulnerable populations.

N. CITY COUNCIL CONSENT CALENDAR
(All items placed under the Consent Calendar are considered to be routine and noncontroversial. These items will be enacted upon together with a motion and second, without discussion, of any member of the City Council, and each item shall be deemed to have received the action recommended.)
Motion by Councilmember Jamelia Brown
Seconded by Vice Mayor Cesar Zepeda
To approve all items on the consent calendar excluding Item N.4.b (Comparative Analysis of Drone Shows to Traditional Fireworks as an Alternative to the Third of July Celebration).

Ayes (6): Councilmembers Soheila Bana, Jamelia Brown, Claudia Jimenez, Sue Wilson, Vice Mayor Cesar Zepeda, and Mayor Eduardo Martinez.

Absent (1): Councilmember Doria Robinson
Passed

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N.1 City Manager's Office
N.1.a Contract with Submittable Grants Client Relations Management System APPROVE a three-year contract with Submittable Holdings, Inc. for $210,395 with two one-year extension options for $49,500, annually to provide a grant client relations management services software to the Richmond Department of Children and Youth, Community Services Department, and Economic Development Arts and Culture Division, with an initial expiration date of June 30, 2028 – City Manager’s Office (Patrick Seals 510-307-8016).

N.2 Finance Department
N.2.a Contract with Matrix Consulting Group to develop a Cost Allocation Plan.

APPROVE a contract in the amount of $32,500 with Matrix Consulting Group to develop a Cost Allocation Plan to direct staff from the Finance Department and Richmond Housing Authority to prepare the Indirect Cost Allocation Plan that adheres to Title 2, Code of Federal Regulations, Part 200, for a term beginning February 1, 2025, through February 1, 2028, with an option to extend two additional years – Finance Department (Mubeen Qader 510-412-2077/Rita Martinez 510-621-1546).

N.3 Information Technology
N.3.a Consolidate First American Services to one Contract APPROVE a three-year contract with First American, with two, one-year extensions, for a total potential contract term of five years, to provide parcel, mortgage, and deed data, and access to datatree.com and support services. The total contract amount shall not exceed $96,000 over the three-year term with the two, one-year extensions. APPROPRIATE $19,200 in general funds annually for each of the five years – Information Technology Department (Sue Hartman 510-620-6874/Sandi Wong 510- 620-6745).

N.4 Library and Community Services
N.4.a Contract Amendment No. 1 with New York Wired For Education Metrix Learning Management System
APPROVE a first amendment with New York Wired For Education to increase the contract amount by $17,000, for a total not to exceed contract amount of $25,500, and extend the term through January 29, 2027, for online job training and career pathways – Community Services Department (Tamara Walker 510-307-8006/LaShonda White 510-620- 6828).

N.4.b Comparative Analysis of Drone Shows to Traditional Fireworks as an Alternative to the Third of July Celebration
RECEIVE a report regarding the use alternate technology, including drone lighting technology for the annual Third of July celebrations, and ACCEPT City staff recommendation to continue with the traditional display of the fireworks show for the Third of July celebrations – Community Services Department (LaShonda White/Ranjana
Maharaj/Kymberlyn Carson-Thrower 510-620-6789).

Deputy City Manager LaShonda White introduced the item. Ms. White, Community Services Deputy Director Ranjana Maharaj, and Recreation 22 cc04Feb2025 – jc

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Supervisor Kymberlyn Carson-Thrower presented a PowerPoint. Link to view presentation: Comparative Analysis - Drone Shows/Traditional Fireworks
Julie Freestone gave comments via teleconference. Discussion ensued.

Motion by Councilmember Sue Wilson
Seconded by Councilmember Claudia Jimenez
To accept the report and City staff recommendation to continue with the traditional display of the fireworks show for the Third of July celebrations.

Ayes (5): Councilmembers Jamelia Brown, Claudia Jimenez, Sue Wilson, Vice Mayor Cesar Zepeda, and Mayor Eduardo Martinez.

Abstentions (1): Councilmember Soheila Bana
Absent (1): Councilmember Doria Robinson
Passed

N.5 Mayor's Office
N.5.a Appointment of Lashara LaShawn Monique Johnson to the Community Crisis Response Program Advisory Board
APPOINT Lashara LaShawn Monique Johnson to the Community Crisis Response Program Advisory Board, with a term ending December 31, 2025 – Mayor’s Office (Mayor Eduardo Martinez 510-620-6503).

N.5.b 2025 Appointments to Committees and Liaison Positions APPROVE appointments for the Mayor and Councilmembers to Regional Committees, Ad-Hoc Committees and Liaison Positions for the year of 2025 - Mayor’s Office (Mayor Eduardo Martinez 510-620-6503).

N.6 Public Works
N.6.a Resolution to Appropriate $150,000 to the Emergency Operations – Winterstorm/Landslides Project
ADOPT a resolution appropriating $150,000 from the fund balance in the Emergency Operation and Disaster Recovery Fund to the Emergency Operations – Winterstorm/Landslides Project to cover future emergency operations aimed at mitigating and addressing disaster risks and property damage from any potential winter storm event – Public Works Department (Ana Crespin 510-307-8095/Daniel Chavarria 510-620-5478).

Adopted Resolution No. 11-25
N.6.b Resolution to Approve a Contract with Owen Equipment Sales for the Outstanding Balance and Service Charges
ADOPT a resolution approving a new contract with Owen Equipment Sales for the outstanding balance and service charges from the purchase of the two Vactor Trucks, and the outstanding invoices and service charges for the Street Sweeper Lease, in an amount not to exceed $114,711.78 - Public Works Department (Mary Phelps 510-621-1269/Daniel Chavarria 510-620-5478).

Adopted Resolution No. 12-25
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N.6.c Resolution to accept the construction of the Santa Rita Stabilization Project as complete and authorize Notice of Completion for the project.

ADOPT a resolution to accept the construction of the Santa Rita Stabilization Project as complete and AUTHORIZE the issuance of the Notice of Completion for the Project and the release of bonds and retention payment – Public Works Department (Mike Owyang 510-621- 1363/Robert Armijo 510-620-5477/Daniel Chavarria 510-620-5478).

Adopted Resolution No. 13-25
N.6.d Union Pacific Railroad (UPRR) Preliminary Engineering Agreement for the Transformative Climate Communities (TCC) - Richmond Wellness Trail Phase 2 Project.

ADOPT a resolution authorizing the Public Works Director and the City Engineer to execute a Union Pacific Railroad (UPRR) Preliminary Engineer Agreement for the Transformative Climate Communities (TCC) – Richmond Wellness Trail Phase 2 Project – Public Works Department (Robert Armijo 510-620-5477/Wendy Wellbrock 510-307-8108).

Adopted Resolution No. 14-25
O. BUDGET SESSION
O.1 Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024
RECEIVE a report on the City’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year ended June 30, 2024 – Finance Department (Andrea Miller/Mubeen Qader/Jerry Chak 510-620-6740).

Director of Finance Andrea Miller introduced the item. Engagement Partner Ahmed Badawi of Badawi & Associates presented a PowerPoint. Link to view presentation: Annual Comprehensive Financial Report
Discussion ensued. Cordell Hindler gave comments in person. Jessi Taran gave comments via teleconference.

P. REPORTS OF OFFICERS: REFERRALS TO STAFF, AND GENERAL REPORTS (INCLUDING AB 1234 REPORTS)(limited to two minutes per
Councilmember)(public comments allowed under Open Forum) Councilmember Jimenez thanked staff, Rising Juntos, and councilmembers that worked on Boorman Park.

Councilmember Brown reported attendance to a League of California Cities Conference in Garden Grove, California. Councilmember Brown reported taking a stand with the immigrant community on February 3, 2025.

Vice Mayor Zepeda reported attendance to the following: Meals for the Unhoused event, Guardians of Justice event, Lunar New Year Lunch, and an immigration march protest on 23rd Street. Vice Mayor Zepeda announced the following upcoming events: Richmond Neighborhood Coordinating Council's Black History Celebration on February 10, 2025, and the Richmond Library's Black History Program on February 13, 2025.

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Q. ADJOURNMENT
There being no further business, the meeting adjourned at 8:38 p.m. in honor of Carson Bruno and Clarissa Bruno to meet again on February 18, 2025, at 6:30 p.m.

Clerk of the City of Richmond Mayor

Page 1 of 3 ends

February 18, 2025

Finance Department

DATE: February 18, 2025
TO: Mayor Martinez and Members of the City Council
FROM:

Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager

Subject:

Budget Book Compilation and Publishing Services
FINANCIAL IMPACT: Fiscal Year 2024-25 cost of $34,000 is in the Finance Department’s approved budget (Account string –
01173415-400201).

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

The City of Richmond’s budget book publishing contract
with ClearGov, Inc. expired on October 30, 2024. The
City’s budget book is considered a policy document and
is prepared under the Government Finance Officers
Association (GFOA) guidelines. The City selected
Govdollars Consulting through the competitive bidding
process.

RECOMMENDED ACTION: APPROVE a contract with Govdollars Consulting in an amount not to exceed $66,000, over a three-year term
from February 1, 2025, through January 31, 2028, with
two one-year extension options for $16,000, annually to provide budget book compilation services – Finance
Department (Andrea Miller 510-620-6790/ Mubeen Qader
510-412-2077/Jerry Gurule 510-620-6591).

AGENDA
REPORT
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February 18, 2025
DISCUSSION:

The City adopts an annual operating budget and five-year Capital Improvement Plan annually by June 30 and publishes the respective books following adoption in compliance with the Government Finance Officers Association (GFOA) guidelines.

The previous contract with ClearGov, Inc. that supported the budget but compilation and publishing expired on October 30, 2024.

City staff issued a formal request for proposals in October 1, 2024, for the budget book compiling and publishing services (Attachment 1). A total of 586 vendors were notified of the proposal, 22 vendors download the proposal, and subsequently the following seven (7) proposals were submitted on October 29, 2024 (Attachment 2):

 ClearGov, Incorporated (ClearGov)
 Contenda, Incorporated (Contenda)
 Govdollars Consulting (Govdollars)
 IGM Technology Corporation (IGM)
 Lance, Soll & Lunghard, LLP (LSL)
 Euna Solutions (EUNA)
 TruGov Consulting (TruGov)

City staff also received demonstrations on the proposed solutions, five (5) vendors provided demonstrations on their proposals however, two vendors, Contenda, Incorporated and TruGov Consulting withdrew their proposals before the demonstrations. The criteria used to evaluate the proposals included:

 The Proposal/Methodology and Approach to Work - 20%
 Experience/Past Performance/References - 40%
 Proposer Qualifications - 20%
 Cost Proposal - 20%
Table 1: Rating Matrix

ClearGov Contenda Govdollars IGM LSL Euna TruGov
The Proposal/Methodology and
Approach to Work – 20 pts 73 0 91 73 78 68 0
Experience/Past
Performance/References – 40 pts 167 0 175 151 162 155 0 Proposer Qualifications – 20 81 0 88 81 81 76 0
Cost Proposal – 20 95 0 95 72 32 59 0
Total 416 0 449 377 353 358 0

Based on the provided features and the pricing, Govdollars Consulting was selected as the best value for the budget book creation process. Consequently, City staff is seeking Council approval to enter a contract with Govdollars in an amount not to exceed $66,000, over a three-year term from February 1, 2025, through January 31, 27

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February 18, 2025
2028, with two one-year extension options for $16,000, annually to provide budget book compilation services (Attachment 3).

DOCUMENTS ATTACHED:

Attachment 1 – Request for Proposals
Attachment 2 – BidSummary Report
Attachment 3 – Govdollars Consulting Standard Contract
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Request for Proposals

Automated Budget Book Publishing Solution

Release Date: 10/01/2024

Deadline for Submittal
10/22/2024

City of Richmond
Finance Department

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INTRODUCTION

The City of Richmond is seeking proposals from qualified firms to provide a solution to automate annual operating budget and Capital Improvement Budget book publishing.

This request for proposal (RFP) describes the project, the required scope of services, the consultant selection process, and the minimum information that must be included in the proposal. The anticipated term of this contract will be for a period of three (3) years and an option to renew for two years by means of a mutual agreement of both parties.

SCOPE OF SERVICES
The City of Richmond is looking to implement a digital solution to automate Annual Operating Budget and Five-Year Capital Improvement Plan (CIP) book publishing.

The responsibilities of the consultant shall provide a solution and training on a software that fully automates the budget and CIP book publishing with 100 percent accuracy and efficiency using budget data from Tyler Technologies MUNIS ERP. The City’s current budget book includes narratives, data tables and charts as well as program and organizational charts. The City is looking into automating the budget book publishing function with full accuracy and consistency in an efficient manner to publish a modern operating and CIP budget books on the web and on paper.

PROPOSAL FORMAT GUIDELINES

The following proposal sections are to be included in the Vendor’s response:

A. Background and Project Summary Section
The Background and Project Summary Section should describe your understanding of the City, the work to be done, and the objectives to be accomplished. Refer to description of services for this RFP.

B. Methodology Section
Provide a detailed description of the approach and methodology to be used to accomplish the Scope of Services of this RFP.

C. Qualifications
The information requested in this section should describe the qualifications of the firm, key staff and sub‐contractors performing projects within the past five years that are similar in size and scope to demonstrate competence to perform these services. Information shall include:
1) Names of key staff that participated on named projects and their specific responsibilities with respect to this scope of service.

2) A summary of your firm’s demonstrated capability, including length of time that your firm has provided the services being requested in this Request for Proposal.

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3) Provide at least three (3) references that received similar services from your firm. The City of Richmond reserves the right to contact any of the organizations or individuals listed. Information provided shall include:

a) Client Name and contact info
• Telephone & e-mail address
• Address
b) Description of services provided including contract amount c) Project start and end dates

D. Cost Information

Provide the total costs to complete all tasks identified in the scope of services.

Proposers will be paid at the same rates set forth in their cost proposal unless further negotiated in writing and agreed to by the City of Richmond.

PROCESS FOR SUBMITTING PROPOSALS

Questions Concerning Request for Proposals

All questions must be submitted via the electronic BidsOnline system on the Q&A tab by 5:00pm PST, on October 11, 2024. If the City finds it necessary to issue an addendum, prospective Offerors will receive e-mail notification of addendum.

Otherwise, answers to questions received will be provided on the Q&A tab and notification will be sent by October 15, 2024 It is the proposer’s responsibility to periodically check the BidsOnline website www.ci.richmond.ca.us/bids for any possible Addenda to the RFP that may have been posted.

Any party submitting a proposal shall not contact or lobby any City Council member, City official, employee (except those specified for contact) or agent regarding the RFP.

Any party attempting to influence or circumvent the RFP, bid submittal, and review process may have their proposal rejected for violating this provision of the RFP.

Interested parties may download copies of the above mentioned proposal by visiting the City's web site, www.ci.richmond.ca.us/bids. To download RFP, new vendors will be required to register. Once the vendor downloads any documents relative to a solicitation, that vendor's name will appear on the Prospective Bidders list for that project and will receive any addenda or notifications relating to the RFP.

Submission of Proposals

The proposal and any required certifications shall be signed by an individual or individuals authorized to execute legal documents on behalf of the proposer.

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Electronic Proposals shall be submitted via the City’s secure online bidding system. All required sections of the proposal must be submitted via the website. Contractor is solely responsible for “on time” submission of their electronic proposal. The Bid Management System will not accept late proposals and no exceptions shall be made. Contractors will receive an e-bid confirmation number with a time stamp from the Bid Management System indicating that their bid was submitted successfully. The City will only receive those proposals that were transmitted successfully.

The proposal must be received no later than 5:00 p.m., on October 22, 2024.

The City of Richmond reserves the right to waive inconsequential irregularities.

GENERAL GUIDELINES

This RFP does not commit the City of Richmond to award a contract, to defray any costs incurred in the preparation of a proposal pursuant to this RFP, or to procure or contract for work. The City of Richmond may reject a proposal without providing the reason(s) underlying the declination. A failure to award a contract to the proposer with the lowest cost proposal shall not constitute a valid cause of action against the City of Richmond. The City may investigate the qualifications of any respondent under consideration, require confirmation of information furnished by the respondent, and require additional evidence or qualifications to perform the Services described in this RFP.

The City reserves the right to:

1. Reject any or all proposals.

2. Issue subsequent Requests for Proposal.

3. Postpone opening for its own convenience.

4. Remedy technical errors in the Request for Proposal process.

5. Negotiate with any, all, or none of the Respondents.

6. Solicit best and final offers from all or some of the Respondents.

7. Select one or more Respondents.

8. Accept other than the lowest proposed fees.

9. Waive informalities and irregularities in proposals.

Insurance Requirements

The City of Richmond requires consultants doing business with it to obtain insurance, as shown in RFP (Attachment A). The required insurance certificates must comply with all requirements of the standards as shown and must be provided prior to the commencement of any work on the Project.

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Business Licenses

The successful Contractor and all subcontractors used in the work will be required to hold or to obtain a City of Richmond business license for which the fee will not be waived.

Compliance with City Ordinances

The contractor and all subcontractors shall comply with the City of Richmond Nondiscrimination Clauses in City Contracts Ordinance ( Richmond Municipal Code
(RMC) Chapter 2.28), Business Opportunity Ordinance (RMC Chapter 2.50), Local Employment Program Ordinance (RMC Chapter 2.56), Living Wage Ordinance (RMC Chapter 2.60) and Ordinance Banning the Requirement to Provide Information of Prior Criminal Convictions on all Employment Applications (“Ban the Box”) (RMC Chapter

2.65), which are incorporated into the Contract Documents by this reference.

Sanctuary City Contracting Ordinance (SCCO)

The Richmond Sanctuary City Contracting Ordinance No. 12-18 (Attachment D) prohibits the City from granting and or retaining contracts with any person or entity that provides Data Broker or Extreme Vetting services to the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security (“ICE”).

Proposers must submit the attached Sanctuary City Compliance Statement with their Proposal. (Attachment C)

Limited Liability Company Disclosure Statement (LLCS)

Resolution No. 86-21 (Attachment E), approved by City Council on July 6, 2021, requires disclosure of the identities of beneficial & responsible owners of Limited Liability Corporations (LLC). Proposers must submit the attached Disclosure Statement of Limited Liability Companies Form with their Proposal (Attachment F).

PROPOSAL EVALUATION AND SELECTION PROCESS

The criteria upon which the evaluation of the proposals will be based include, but are not limited to, the following:

The Proposal/Methodology and Approach to Work – 20%

The proposer’s responsiveness to the RFP including completeness and thoroughness of proposal; all required information must be provided in the format specified. This category will also evaluate:

• A bility to provide services as outlined in the RFP.
• Approach and proposed methodology to project scope
• Demonstrated knowledge of the work required
33

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• Explanation of the Project or services required
• Innovative approaches and internal measures for timely completion of Project

Experience/Past Performance/References – 40%
Consideration will be given based upon the firm’s experience, years in business, past and current client references; technical expertise and professional competence in areas directly related to this RFP; number of years of experience in performing similar work.

Proposer Qualifications – 20%
This category will evaluate the respondent’s ability to take upon itself the responsibilities set forth in the Scope of Services and produce the required outcome in a timely manner.

Consideration will be given for the overall quality of the proposal, including a demonstrated understanding of the purpose, scope and objective of the services to be performed. It is the intention of the City of Richmond to award a contract to the Respondent who furnishes satisfactory evidence that the Respondent has the requisite experience and ability to enable the Respondent to execute the work successfully and properly, and to complete services in a timely manner. To determine the degree of responsibility to be credited to the Respondent, the City of Richmond will weigh the evidence that the Respondent has performed satisfactorily other contracts of like nature, magnitude and comparable difficulty and comparable rates of progress.

Cost Proposal – 20%

Award - When the Review Panel has completed its work, City staff will then recommend a consultant to the City Manager and City Council for approval. The services provided by the successful bidder shall be governed by a Standard Services Agreement (Attachment B).

Attachments

A. Insurance Requirements
B. Standard Contract
C. Sanctuary City Compliance Statement
D. Sanctuary City Contracting Ordinance No. 12-18
E. Limited Liability Corporation (LLC) Resolution No. 86-21 F. Limited Liability Corporation Form

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CITY OF RICHMOND

STANDARD CONTRACT
Department: City Project Manager:

City Project Manager E-mail: City Project Manager Phone No:

Vendor No: Contract No:

Description of Services:

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

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

Contractor Name:

Street Address:

City, State, Zip Code:

Contact Person:

Telephone: Email:

Business License No:
☐ A California corporation, ☐ limited liability corporation ☐ general partnership, ☐ limited partnership, ☐ individual, ☐ non-profit corporation, ☐ individual dba as [specify:] ____________________ ☐ other [specify:] _______________________________

2. Term. The effective date of this Contract is _______________________ and terminates _________________ unless terminated earlier as set forth herein.

3. Payment Limit. City’s total payments to Contractor under this Contract shall not exceed $______________ (“Contract Payment Limit”) unless a Contract Amendment has been approved by the City Council or City Manager. If this amount includes a contingency, Contractor acknowledges that any use of such contingency shall be for work beyond the original scope of services and requires prior written authorization by the City. If noted below, Compensation for work done under this Contract, shall not exceed as follows:

FY _________ total compensation shall not exceed $_________________ FY _________ total compensation shall not exceed $_________________ FY _________ total compensation shall not exceed $_________________

4. Contractor’s Obligations. Contractor agrees to perform all work at its own cost and expense, to furnish all labor, tools, equipment, materials, except as otherwise specified, in accordance with the Service Plan set forth in Exhibit A, attached hereto and incorporated herein.

5. City Obligations. City shall make payments to the Contractor in accordance with the Payment Provisions set forth in Exhibit B, attached hereto and incorporated herein.

Finance
Jerry Gurule
[email protected]
(510) 620-6591
16883
Provide digital automated budget book publishing solution.

Govdollars Consulting LLC
: 5409 Huntingwood Drive
Raleigh, NC 27606
Leah Patrick
(919) 607-7877
[email protected]
February 1, 2025
January 31, 2028
66,000.00
2025
34,000.00
2026
16,000.00
2027
16,000.00
114

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

7. General Conditions. This Contract is subject to the General Conditions (Exhibit D), which are attached hereto and incorporated herein.

8. Special Conditions. This Contract is subject to the Special Conditions (Exhibit E) (if any), which are attached hereto and incorporated herein.

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

10. Sanctuary City Compliance Statement. This Contract is subject to the Sanctuary City Compliance Statement (Exhibit G), which is attached hereto and incorporated herein.

11. Signatures. These signatures attest the parties' agreement hereto:

CITY OF RICHMOND,
a municipal corporation [BUSINESS NAME]
(* The Corporation Chairperson of the Board, President, or Vice President should sign below)

By: _________________________ By: ___________________________ Title: ________________________ Title: __________________________ Date Signed: _________________ Date Signed: ___________________

I hereby certify that this Contract (* The Corporation Chief Financial Officer or Assistant has been approved by City Council Treasurer, or Secretary or Assistant Secretary should or the City Manager. sign below)

By: _________________________ By: ___________________________ City Clerk Title: __________________________
Date Signed: ____________________
Approved as to form:
(NOTE: Pursuant to California Corporations Code Section By: _________________________ 313, if Contractor is a corporation or nonprofit organization, City Attorney this Contract (1) must be signed by (a) the Chairperson of the Board, President, or Vice-President and (b) the
Chief Financial Officer or Assistant Treasurer, or
Secretary or Assistant Secretary)

LIST OF ATTACHMENTS:

Service Plan Exhibit A
Payment Provisions Exhibit B
Authorized Representatives and Notices Exhibit C
General Conditions Exhibit D
Special Conditions Exhibit E
Insurance Provisions Exhibit F
Sanctuary City Compliance Statement Exhibit G

Govdollars Consulting LLC
115
Contract No: ________ For the Contract between the City of Richmond and
_____________________________

EXHIBIT A

SERVICE PLAN

Contractor shall, to the satisfaction of the Project Manager ( set forth in Exhibit B) , perform the following services and be compensated as outlined below [or attach service plan if necessary]:

Govdollars Consulting LLC
Please see attached proposal.
116

MUNICIPALITY PROJECT REFERENCE NUMBER
CITY OF RICHMOND, CA AUTOMATED BUDGET BOOK 2024-024RICHCA12

PUBLISHING SOLUTION

GOVDOLLARS CONSULTING

PROPOSAL

FOR SERVICES
(919) 607-7877
[email protected]
www.govdollars.com
117

OVERVIEW
GovDollars Consulting is pleased to submit this
proposal to support the City of Richmond’s goal to
improve the efficiency of your budgeting processes and
automate the publishing of the annual operating
budget and Capital Improvement Budget book.

I
n this proposal, we lay out the solutions and ongoing
services and support that we would provide to the City
of Richmond to implement our cloud-based Lomali
Budget Book solution.

All your budgeting needs found seamlessly in one place. 118
03 04

BACKGROUND AND PROJECT SUMMARY
Pages 1-3

COST INFORMATION

Page 24 ends

METHODOLOGY
Pages 4-16

QUALIFICATIONS
Pages 17-23
01 02
06 TABLE OF CONTENTS
119

BACKGROUND AND PROJECT SUMMARY
Project Overview & Solution Alignment
As we understand this project, the City of Richmond is seeking to implement a cloud-based SaaS solution that automates and streamlines the preparation and publishing process for its annual operating budget book and Capital Improvement Plan (CIP) book.

The goal is to simplify the production of these documents while ensuring that all budget data—whether in narratives, data tables, or charts—remains accurate and consistent throughout.

A
dditionally, the City of Richmond requires the chosen system to seamlessly integrate with its existing ERP system, Tyler Technologies MUNIS, to facilitate smooth data transfers and updates. Another key priority is the ability to publish a clean, modern version of the budget book that meets the city's standards for professionalism and accessibility, with options to produce both web-based and PDF formats.

The Lomali Budget Book aligns perfectly with these objectives. It offers an intuitive platform that automates the assembly of budget documents, reduces manual data entry errors, and ensures consistency across all sections. Its integration capabilities enable easy connection with MUNIS, streamlining data synchronization.

Furthermore, Lomali provides versatile publishing tools, allowing users to create polished, user-friendly digital and print-ready budget books that can be accessed and shared effortlessly.

Our Mission
At GovDollars Consulting, our mission is to help local government finance professionals spend more time on what’s most important. We firmly believe that cloud-based software solutions and expert consulting services can revolutionize your work, making it not only easier but also remarkably efficient.

Leah R. Patrick
President & Head of Product
GovDollars Consulting
Budget Book
v
1 120

BACKGROUND AND PROJECT SUMMARY
We pride ourselves on our meticulous attention to detail and user experience in our products. Our objective is to streamline the budgeting process for municipalities, eliminating the need for multiple software platforms such as Microsoft Word, Excel, Access Database, and PowerPoint. The Lomali Budget Book is carefully configured to fulfill all your financial publishing requirements.

The GovDollars Difference
What sets us apart is our unique blend of expertise in both the local government and software development realms. Our team is comprised of individuals who have served in large municipal budget and finance departments and finance institutions. We understand firsthand the challenges you face, and our goal is to ensure your experience is far superior to what we encountered.

We're dedicated to helping budget and finance departments reclaim their time for critical tasks like financial and management analysis, policy development, and strategic planning, rather than grappling with cumbersome processes and outdated software. By offering premier software products and expert advice from years of experience in the field, we can guide you through every step of the publication process, so you can rest assured your process will run much smoother.

A Partnership of Value
Our customer service capabilities and offerings are exceptional in the industry. While larger companies often provide municipalities with generic, out-of-the-box solutions that do not fully meet your needs, or highly configurable products that demand significant time and effort from your staff, we take a different approach at GovDollars Consulting.

W
e offer a balanced solution designed to minimize the burden on your team while delivering highly customized software. Our smaller size allows us to be agile and flexible, working closely with the City of Richmond’s Finance Department to meet all your requirements. This enables us to create a software solution meticulously tailored to your unique budget book publishing needs, meeting both your current chart of account structure and branding requirements.

Customized features are an integral part of our software’s implementation phase. In the past, we have added client-requested features such as a page PDF generation tool, a Tablet viewing mode, a table sorting feature, an automatic blank page insertion at t he
end of sections, and many more.
2 121

BACKGROUND AND PROJECT SUMMARY
Excellent Customer Service and Support
Our cost proposal is simple, and includes an unlimited number of licenses, support, training for current staff and materials to use as training refreshers, and other implementation and configuration needs.

T
he ongoing support is robust. It includes unlimited support tickets, a budget season elevated support window, emergency phone support, prioritized feature and enhancement requests, and no-cost upgrades scheduled at your convenience.

What’s more, our product won’t require any extra work from your IT department. Unlike other solutions that require municipalities to allocate additional resources for upgrades, maintenance, infrastructure, and software patches, our dedicated team handles everything for you. We provide 24/7 availability for these services and maintain a 99.9% uptime, with daily client data backups as a standard feature.

Information in this Proposal
In addition to the information discussed above, we have included the following requested information in this proposal:

A. Methodology (Tab 2): Within this section we include the assumptions and methodology we use to provide the requested services. A comprehensive explanation of the features, functionalities, and capabilities of the Lomali Budge t
Bo
ok that directly addresses the City’s content development and publishing needs.

We include an outline of GovDollars Consulting’s implementation approach and a detailed description of the tasks, activities, and deliverables that will be included in the configuration, testing, training, and other vital implementation steps. Also p
rovided is a detailed description of our maintenance and support program, all of which are included in the ongoing cost of the software. Finally, we include information on our company’s clients and our company’s focus since its inception.

B. Qualifications (Tab 3): Identification of the staffing resources behind the design, implementation, and maintenance of the Lomali Budget Suite, including software engineering and project management staff.

C. Cost Information (Tab 4): A detailed cost proposal for the ongoing and one-time costs of the software for an assumed five-year contract period. The actual length o
f the contract is negotiable.
3 122

Lomali Budget Book is a premier Cloud-Based SaaS product designed to provide a comprehensive financial management solution that meets the highest standards in budget preparation, financial reporting, and transparency. The product addresses the specific requirements for budget book and CIP documentation and preparation and can also be used for other financial publications such as the ACFR, quarterly and monthly reporting, and revenue manuals. The product also streamlines the publication process by minimizing the need for using multiple platforms (Word, Excel, Access database, PowerPoint, etc.). The following is information on the system’s primary features that will be of particular benefit for the City of Richmond’s publication needs.

METHODOLOGY

PRIMARY SYSTEM FEATURES
––

Displays as an easy-to-u se rich text editor with an intuitive interface The Lomali Budget Book features an easy-to-use, intuitive Microsoft Word-like text editor allowing the pages of the budget book to easily be created, edited, and viewed by end-users. This text editor allows users to enter and edit text directly within the system and replaces the need for Microsoft Word in the budget publication process. Page numbering, page breaks, page orientation, spacing, margins, image insertion, creation of tables, shapes, headers, footers, etc. are all available within this text editor. Customized branding needs (such as fonts, colors, logos, and styles) can be added as needed.

Exhibit A: Text Editor Tool
4123

METHODOLOGY

PRIMARY SYSTEM FEATURES

A llows users to create templates for the document or suggest pre- made templates Templating is a key feature within the Lomali Budget Book. This feature allows system administrators to create and define key pages that repeat certain elements and reuse these pages repeatedly. For example, a template can be created for a department page that includes a standard header, footer, logo, mission statement, budget highlights, and budget tables.

Exhibit B: Templating Feature
o
This template can then be used over again when a new department page is created to ensure the standard elements of the page are included. Additionally, elements within the template can be locked, ensuring that department users editing the pages cannot adjust the uniform elements, such as headers, sub headers, logo placement, etc. These standard templates are created during the implementation phase of the project and can be updated as necessary to adjust for updated branding requirements.

A bility to import, configure, and update financial data in the budget book The software will seamlessly pull in balances from the most recently completed fiscal year, along with data from the current fiscal year in progress. It also integrates the current year’s operating budget to facilitate accurate financial reporting and budget forecasts. Data uploads are configured specifically for the City of Richmond’s unique chart of account structure during the implementation phase and can be updated throughout the contract period as needed. 5 124

METHODOLOGY

PRIMARY SYSTEM FEATURES

A bility to create tables, charts and graphs that update when data updates Dynamic charts, graphs, and tables can all be created directly within the Lomali Budget Book application. These dynamic charts, graphs, and tables display data based upon the user’s chosen filter and grouping and will update automatically when new data is uploaded into the system or when the data changes in the data source (i.e. the ERP system or budget system). This not only allows for accurate tables and graphs, but also ensures that reports are accurate and up to date.

Exhibit C: Dynamic Tables Tool
Exhibit D: Dynamic Charts & Graphs Tool
Customization options such as what data and calculations are displayed in the tables (ex: percent change year-over-year) are configured during the implementation phase. Additionally, GovDollars Consulting staff will customize default tables to match the branding requirements of the City of Richmond. This includes all color, font, and spacing requirements. Charts and graphs can similarly default to specific fonts and colors as prescribed by the City of Richmond, making adding these charts and graphs easy to create and uniform throughout the entire document. 6 125

METHODOLOGY

PRIMARY SYSTEM FEATURES

Ability to restrict access to pages or parts of pages based on role/security Our system supports granular entitlement or access control at both the user level, and at a group, or role-based, level. Some entitlements come standard, but we can also configure specific entitlements based on the City of Richmond’s requirements as part of the implementation process.

In general, access to pages is restricted based on the users assigned to that page. Parts of pages can be restricted using the structured template feature, which allows for certain elements, like headers, sub headers, logos, and other standard branding to be locked.

Ability to import and incorporate other PDF documents throughout Outside PDFs, such as the strategic plan can be imported within the application and added to previously created sections for the budget book or CIP. This allows for page numbering of outside PDFs to sync with the document automatically when the final PDF is generated in the application. These documents will also be incorporated into the Table of Contents automatically as a part of this syncing process.

Exports the final document into an easily printable PDF document The compiled information produced within the Lomali Budget Book application can be exported into an easily printable PDF document using the PDF generation tool. The final PDF will automatically generate a Table of Contents with hyperlinked page numbers for sections and pages. The PDF can then be printed or posted to the City’s website. This PDF can be adjusted to meet ADA publishing standards, with our staff providing ongoing guidance and support to ensure compliance.

Import and/or create images, organizational charts, and other graphics Outside images and organization charts can be easily imported into the Lomali Budget Book application and included directly within the Microsoft Word-like text editor. Standard images formats, such as .jpg, .png, and .gif are supported. Basic graphics can be created directly within the platform or imported as an image.
7 126

METHODOLOGY

PRIMARY SYSTEM FEATURES

Develops a web-f riendly version of the document
An interactive web version of the published financial documents is included with the subscription of the Lomali Budget Book product. The website can exist on its own or be integrated into the City of Richmond’s larger website. GovDollars Consulting staff will work with the City of Richmond’s staff to design and implement the website according to the City’s needs. Click the following link (https://garner.lomali.io/cloud-book/) for an example of a website version of the FY2025 Adopted Book for a client.

Track changes and commenting features
The text editor also features a track change and commenting section with date/time stamps for reference. This allows users to collaborate amongst each other and to make edits that require approval or rejection to move forward, thereby eliminating the need for separate email communications and multiple versions of documents during the publication process. Auto generation of emails notifying users of comments or changes to documents can also be set up within the system if desired.

Exhibit E: Track Changes and Commenting Feature
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METHODOLOGY

PRIMARY SYSTEM FEATURES
Has workflow capabilities between different levels of users The Lomali Budget Book offers workflow capabilities between different levels of users within operating departments, the Finance Department, and the Manager’s Office. Unique workflow levels or elements for the City of Richmond will be added to the standard workflow during the implementation phase. Users are assigned certain roles within the workflow. These users can be modified per page for review, editing, and approval purposes. Additionally, users outside the Finance Department will only have access to the pages they are assigned a role, ensuring that edits and additions to pages are controlled.

Exhibit F: Page Settings & User Access
Moreover, a Manager’s Dashboard feature allows the Finance Department to review progress status and stages of each page. This feature allows the team to regularly review the progress of the publication and manage where needed. The Manager’s Dashboard will be configured during the implementation phase based on the individual users’ needs and roles.

Exhibit G: Manager’s Dashboard
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METHODOLOGY
Key Components
• Training.
• System Documentation and Manuals.
• System Integrations.
• Unlimited support tickets.
• General customer support provided.
• Emergency phone support.

Training
At GovDollars Consulting, we provide robust end-user training on the Lomali Budget Book product. Our approach is to provide training to all end-users upfront after implementation and annually as a refresher for current staff and as an orientation for new staff. We provide training separately for the City’s Finance Department staff to ensure that all system administrators are setup appropriately and staff are aware of the content and limitations for different user roles. End-user trainings will take place in-person and online, depending on schedules and preference.

System Documentation and Manuals
Training materials and user guides are included as part of the initial training and ongoing operational support for the Lomali Budget Book product. These materials are in the form of step-by-step text-based guides and videos and can be referenced at any point directly within the system itself. All costs associated with these materials and the access to them are included within the ongoing subscription cost for the system.

New features and customizations added to the system for the City of Richmond’s unique business needs will also be added to these training materials. We consistently update these materials to ensure they showcase the latest features, and all users are aware of the system’s capabilities.

ONGOING SUPPORT SERVICES
v
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System Integrations
System integration work (from ERP systems and other financial/budget systems) is available and included in the initial implementation phase for the Lomali Budget Book product. If special file formats, extra pre-processing, or scheduled batch integration (integration with other software systems) is desired, we provide complimentary ETL (Extract, Transform, & Load) consultation of up to 50 hours to customize for your system. This includes prior year data that the City of Richmond would like to display in tables, charts, and graphs within the published financial documents.

U
nlimited Support Tickets
The Lomali Budget Book team believes the path to providing our clients the best product and value includes an open line of communication. Rather than provide various tiers of support that limit that line of communication, we offer a single tier with unlimited requests. No matter how small the problem, we want to hear about it so we can continue making our platform the best for your budget needs. What’s more, we guarantee a next business day (or sooner) response time to all support tickets.

General Customer Support
Our customer support experts are available 8am-5pm EST to provide ongoing support needs during the contract period. Much of the needs the City of Richmond may come across can be addressed remotely and online via the submission of support tickets. Our customer support is included within the quoted cost of our product and is available at any point of the fiscal year.

Emergency Phone Support
Phone support is provided on an emergency basis. Emergency contacts and phone numbers will be provided to key City of Richmond personnel with the expectation that they be used for emergency events that require immediate response. Some examples of emergencies include: the system becoming completely unavailable and system errors that are blocking a budget deadline during the Budget Season Elevated Support Window.

ONGOING SUPPORT SERVICES

METHODOLOGY
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Budget Season Elevated Support Window
We recognize that budget season is a hectic time for the City of Richmond. To keep services as readily available as possible, we take special care to prioritize requests and avoid any unnecessary software installs or upgrades during your established budget season window. Unless specifically requested, any upgrades will be postponed until the end of the budget season window.

Prioritized Feature & Enhancement Requests
Within the platform itself, we provide the City an opportunity to submit new feature and enhancement requests. Features requested by the City will receive prioritized treatment. We are constantly seeking feedback about system enhancements and look at any relationship with a client as a partnership opportunity to improve the budget process and the profession.

Upgrades Included
As a cloud SaaS (Software as a Service) product, we work to continuously enhance the products to better fit our customers’ needs. We release multiple new features throughout the year. As a subscriber to our product, City of Richmond will receive upgrades at no cost as they become available. Further, any upgrades and product enhancements will be communicated as they are being developed and implemented. Upgrades will be scheduled with City of Richmond before installation and will honor the Budget Season Elevated Support Window, unless specifically requested during the window.

MAINTENANCE + TRUST & CONTROLS

METHODOLOGY
Key Components
• Budget Season Elevated Support Window.
• Prioritized feature and enhancement requests.
• No-cost upgrades scheduled at customer’s convenience. • No maintenance for your IT department.
• 24/7 availability (excluding necessary maintenance performed after 6pm EST).
• Industry Standard Disaster Recovery with Daily Backups. • Internal controls & processes designed for future ISO- 27001/SOC/FedRAMP certification.
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Maintenance Free
We take care of all the software maintenance: infrastructure, software patches, etc. so you can focus on maintaining your budget, and not your budget software.

Uptime, Disaster Recovery
Our support team targets a 99.9% uptime, which means 24/7 availability for users of the Lomali Budget Book product. Our team also follows cloud industry best practices for disaster recovery and software patching. Client data is backed up daily as a minimum.

Maintenance Window
Most maintenance is performed without disruption to users. However, from time-to-time certain types of maintenance or upgrades may require us to take the platform offline temporarily. To minimize user disruption, maintenance and upgrades will be performed after 6pm EST. During the Budget Season Elevated Support Window, only absolutely necessary maintenance activities will be performed.

T
rust & Security
Security and availability of our software is paramount to helping customers fulfill their budget requirements. To ensure our system’s integrity, we have designed our internal controls and processes in line with those defined by ISO-27001, SOC, and FedRAMP standards. Note: To keep costs low for our customers, we currently are not certified on these standards, but have the foundation in place to pursue certification as required.

MAINTENANCE + TRUST & CONTROLS

METHODOLOGY

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Our phased implementation approach for the Lomali Budget Book involves a discovery phase, implementation and integration activities, live end-user training, and ongoing maintenance and customer support. Below is GovDollars Consulting’s implementation approach for the Lomali Budget Book along with the expected steps and activities within each phase. The timeline for each of these phases is provided in the next portion of this section.

Step 2: Implementation & Configuration
We will work one-on-one with your finance staff to ensure setup of the City of Richmond’s chart of account string format, provide any other customized configuration needs identified in Step 1, identify users and administrators of the system, and validate various features with system administrators.

Step 1: Identification of Current Business Processes
During the first implementation step of the Lomali Budget Book product, we will work one-on-one with the City’s Finance Department to identify and review current financial processes as well as the current financial publications. This information will allow us to adjust the Lomali Budget Book software where appropriate to match current City practices. We will also discuss templating, branding requirements, workflow roles, and other customization needs. A meeting with City IT staff may also be necessary to discuss technical configurations such as SSO (Single Sign-On) and setup for ETL (Extract, Transform, Load) work (i.e. system integrations).

Step 3: Data Integration
As a part of the implementation phase, chart of account data (operating and capital) and personnel data will be uploaded as a .csv file to then be manipulated and altered within the Lomali Budget Book product. Any programming that needs to occur for the data upload to be recognized in the Lomali Budget Book will be completed by GovDollars Consulting staff. If special file formats, extra pre-processing, or scheduled batch integration (integration with other software systems) is desired, we will provide comp
limentary ETL (Extract, Transform, & Load) consultation of up to 50 hours to customize for your system.

SOFTWARE DELIVERY MILESTONES & SCHEDULE

METHODOLOGY
1 2
3 14
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Step 5: Training for Product Users
Next, we will train users on the Lomali Budget Book product. This training will take place in-person and online, depending on schedules and preference. Training materials, in both video and text-based formats, will also be provided as a reference for current users and for future users of the software. This will include any necessary adjustments to the software that were identified during Step 1.

An annual training refresher course will also be provided by GovDollars Consulting staff at the beginning of each budget planning cycle during the contract period.

Step 6: Maintenance and Customer Support
Ongoing maintenance and customer support for the Lomali Budget Book product will be provided to the City of Richmond throughout the duration of the contract. As errors or problems occur, end-users can use our application’s ticketing system to report and track these issues. During this time, there will also be new features developed and added to the software. We will provide additional training on all new features. More information on this step is provided in the Ongoing Support Services subsection.

Step 4: Testing
Testing of the data integration and any additional configuration needs, as well as adjustments to the software made due to unique City of Richmond’s business processes will occur prior to training and the system going live to all users. The City’s system administrators will be involved during this step to ensure data is integrated correctly. City finance staff may also be asked to test that financial and personnel data is showing correctly in dynamic tables, charts, and graphs. Feedback and error resolution will occur during this step, as well as any needed modifications to training materials.

METHODOLOGY

SOFTWARE DELIVERY MILESTONES & SCHEDULE

4 5
6 15
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METHODOLOGY
Below are the general timeframes for milestones provided given an assumed five-year contract period. The first-year implementation steps will take approximately twelve weeks, with an additional two weeks scheduled for training. We can and will adjust this timeline depending on when a contract between the City of Richmond and GovDollars Consulting begins.

Much of the work discussed in this schedule will be completed during normal business hours. This is particularly true for any work involving City of Richmond staff. GovDollars Consulting staff will work after hours and on weekends as needed. Throughout the duration of the implementation and training phases, GovDollars Consulting staff will be working both onsite at the City of Richmond’s offices and remotely, depending on need and schedules. Once the products are implemented, most maintenance and customer support will be provided remotely.

SOFTWARE DELIVERY MILESTONES & SCHEDULE

Milestones Start Date Duration End Date
Step 1: Identification of Current
Business Processes
December 1, 2024 ~30 days December 30, 2024
Step 2: Implementation &
Configuration
January 1, 2025 ~30 days January 30, 2025
Step 3: Data
Conversion/Integration
January 1, 2025 ~30 days January 30, 2025
Step 4: Testing February 1, 2025 ~15 days February 15, 2025 Step 5: Training for Product
Users
February 15, 2025 ~15 days February 28, 2025
Step 6: Maintenance and
Customer Support
February 2025 Ongoing Contract End
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Our Experience and Expertise
Founded in 2022, GovDollars Consulting is a dynamic software company that is dedicated to developing cutting-edge software solutions tailored to the unique needs of municipal budget, finance, and management departments. Our flagship product, the Lomali Bud
get Book, represents a year of meticulous development,
with our team working diligently to create a robust and user- friendly platform.

I
ndependence is our hallmark, as we operate without reliance on external funding or investment support. Presently, a substantial 80% of our revenue, encompassing anticipated earnings, is dedicated to the future of software development. Our unwavering commitment revolves around crafting the Lomali Budget Suite—a product tailored to municipal requirements—with an eye on prospective expansion into primary and higher education.

T
he meticulous efforts of our dedicated team manifest in the continuous enhancement of our current products, customizing features to precisely align with our clients' unique needs. Seeking to create a symbiotic relationship with our user base, GovDollars Consulting actively invites feedback through formal and informal demos, conferences, and networking opportunities.

A
t present, we do not engage in strategic partnerships, and there are no imminent alterations in our financial landscape, ruling out mergers, acquisitions, takeovers, or divestitures. We have also not had any significant change to leadership since our inception and do not expect any organizational changes in the next year.

QUALIFICATIONS
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Our Experience and Expertise
The Lomali Budget Suite team at GovDollars Consulting comprises a combined 25+ years of delivering financial services software, 10+ years of municipal budget management, and 10+ years of
successful business ownership. Public sector experience includes work in large county and city budget departments as well as large operating departments outside of the central budget function.

Private sector experience includes software development and management in large financial institutions and investment companies.

O
ur team members are highly trained in their fields, and all hold multiple post-secondary degrees. This includes a PhD in Engineering, three post-graduates in business, public
administration, or computer science, and multiple ABET accredited bachelor’s in computer science.

Our advisory team, comprised of budget professionals and systems analysts, consistently provides input on the development of all our budget software products. This professional insight is invaluable, enabling us to tailor our products to meet clients' specific needs and develop with the end-user in mind.

QUALIFICATIONS
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Staffing Resources & Structure
GovDollars Consulting will staff this project with two-full time staff, one of them being the President and Head of Product and the other the Vice President of Engineering and Operations. Two additional software engineers will contribute to the project as needed. These individuals work directly on the Lomali Budget Suite products, providing software development expertise and ongoing maintenance and customer support.

Depending on project needs, we may also engage our diverse pool of contracted professionals that cater to a spectrum of business requirements, including consulting services, marketing initiatives, and legal and financial needs. Together, our team represents a harmonious synergy of skill, dedication, and innovation, propelling GovDollars Consulting into the future of municipal budgeting and planning software.

QUALIFICATIONS

Leah Patrick
President & Head of Product
Darren Doherty
Staff Engineer
Ben Morris
Staff Engineer
Talmage Patrick
Vice President of Engineering and
Operations
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Leah R. Patrick holds a pivotal role as the leader at GovDollars Consulting, where she assumes responsibility for steering the company's strategic vision and operational excellence. In her capacity, Leah manages the intricacies of daily business operations, encompassing marketing, development, customer engagement, and pursuit of new opportunities. She is also the lead product strategist and is intricately involved in designing the Lomali Budget Suite products.

With over a decade of dedicated experience in the public sector, Leah has cultivated her expertise primarily within the domains of local government budgeting and financial management. Her extensive portfolio includes engagements with prominent municipalities, encompassing cities and counties, spanning states of North Carolina and Texas, each with well over $1billion budgets.

Leah holds a Master of Public Administration degree from North Carolina State University and an undergraduate degree in Political Science from Appalachian State University.

During this relationship with the City of Richmond, Leah will be responsible for all project management components to include implementation, training, and ongoing customer services. She will also be the single point of contact on all matters dealing with the project.

Leah R. Patrick
President & Head of
Product
Co-Founder
Meet Our Team
The Lomali Budget Suite team at GovDollars Consulting comprises a combined 25+ years of delivering financial services software, 10+ years of municipal budget management, and 10+ years of successful business ownership.

O
ur team members are highly trained in their fields and most hold multiple post-secondary degrees. This includes a PhD in Engineering, two post- graduates in business, public administration and computer science, and multiple ABET accredited bachelor’s in computer science.

T
he following is a description of our staff and their roles and responsibilities during our relationship with the City of Richmond delivering the Lomali Budget Book product.

QUALIFICATIONS

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QUALIFICATIONS
Talmage Patrick
VP of Engineering &
Operations
Co-founder
Darren Doherty is a ke y contributor and advisor to the development and maintenance of the Lomali Budget Suite. Darren holds a PhD in Engineering and a bachelor’s in information technology, both from the University of Galway. He also holds a postgraduate diploma in management practice from the UCD Smurfit School (sometimes called the “The Harvard of Ireland”).

D
arren has over 14 years of commercial software engineering experience in both backend and frontend system architecture, system design, and software development. His experience ranges from leading the technology strategy for software startups, to leading architectural and development efforts in large
multinationals like Survey Monkey, Fidelity Investments and Miro.

He is proficient in a wide range of technologies, including cloud technologies, IT operations, software architecture, and software technologies such as Java, Angular, TypeScript and Python.

Darren Doherty
Staff Engineer
Talmage Patrick is responsible for the overall technical direction of GovDollars Consulting and oversees day-to-day functions of finance, IT, support, customer success, and compliance. He has been writing software for over 25 years and has over a decade of software delivery experience in the financial services industry.

Talmage has delivered dozens of software projects for brands such as Fidelity, Vanguard, Best Buy, BASF, Peterbilt, Thyssen-Krupp, and more. His experience includes leading software delivery and support efforts on products managing 100s of billions of client dollars. Talmage’s other entrepreneurial pursuits include starting and running a real-estate investment business for the last 10 years.

Talmage holds bachelor’s degrees in computer science and business administration, both from North Carolina State University.

During this relationship with the City of Richmond, Talmage will be the lead software developer responsible for all implementation and configuration needs, to include added features, data integration testing and ongoing support
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QUALIFICATIONS
Ben Morris is a member of the engineering team for the Lomali Budget Suite, with a focus on software development, maintenance, and support.

B
en holds a bachelor’s degree in electrical and computer engineering from Louisiana State University (2002) and a master’s in computer science from North Carolina State University (2024).

He also holds a master’s in teaching from Northwestern State University (2010).

B
en has been teaching math, biology, and engineering at the high school level since 2006. He has experience working with Java, Python, and Ruby as well as AI, Machine Learning, and advanced data structures and algorithms.

Ben Morris
Staff Engineer
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QUALIFICATIONS
Our Journey
Starting in the summer of 2023, our company began marketing the Lomali Budget Book product to municipalities in the southeastern region. We currently have one client and reference from the Town of Garner, who recently went through the implementation milestone and produced their budget book and capital improvement plan using our product. • C
ompany/Government Entity: Town of Garner, NC
• Contact Name/Title: Sara Warren, Budget Director
• Address: 900 7th Avenue, Garner, NC 27529
• Direct Phone Number: (919) 773-4417 (o), (984) 303-7584 (c) • Email Address: [email protected]
• Length of Relationship: 2 years; Software consulting project in 2023 currently using Lomali Budget Book product (2024-2026). • Produced publication: Town of Garner FY2025 Recommended Budget Book; Town of Garner FY2025 Adopted Budget Book
• Produced website: https://garner.lomali.io/cloud-book W
e encourage readers of this proposal to review the produced publication, and website and pay special attention to the tables, charts, graphs, text, and other general publication features. All these elements were created in the Lomali Budget Book product and can be configured to meet the City of Richmond’s publication needs as well as any other regularly published financial document or report. This includes the ACFR, PAFR, monthly reports, and various other reports and presentations to Town Management, Town Council, and the public.
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COST INFORMATION
The following is a breakdown of the ongoing and one-time costs of the Lomali Budget Book software product per fiscal year, given a five-year contract period.

Please note that our cost structure is purposely simple and wholistic. The ongoing costs include customer support services detailed in the Methodology section of this proposal as well as an unlimited amount of user licenses for the City of Richmond to utilize our product. One-time costs in the first fiscal year include implementation, configuration, testing and training for end-users, and any travel required by GovDollars Consulting staff for these activities. ß
z
00 √+
Fiscal Year Product Ongoing Cost One-Time Cost Total Cost FY2025 Budget Book $16,000 $18,000 $34,000
FY2026 Budget Book $16,000 N/A $16,000
FY2027 Budget Book $16,000 N/A $16,000
FY2028 Budget Book $16,000 N/A $16,000
FY2029 Budget Book $16,000 N/A $16,000
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CONCLUSION
We look forward to working with the City of Richmond and supporting all efforts to improve your budget and finance processes and financial publications. We are confident that we can meet the challenges ahead and are ready to partner with you in implementing our Lomali Budget Book product, as discussed in this proposal.

If you have questions on this proposal, or would like us to provide a presentation of our proposal, feel free to contact myself, Leah R. Patrick, at your convenience by email at leah.patrick@ govdollars.com or by phone at (919) 607-7877.

Otherwise, we look forward to next steps in the RFP process.

T
hank you for your consideration,
Leah R. Patrick
P
resident & Head of Product
GovDollars Consulting
ß
z
00 144
(919) 607-7877
[email protected]
www.govdollars.com
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_____________________________

EXHIBIT B

PAYMENT PROVISIONS

1. COMPENSATION TO CONTRACTOR:

a. Provided Contractor is not in default under this Contract, Contractor shall be compensated in the manner set forth herein.

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

c. All City vendors receiving new contracts shall sign up to receive electronic payments through the City’s Automated Clearinghouse (ACH) payments service/provider.

2. SUBMISSION OF INVOICES:

Contractor shall submit timely invoices by email to
[email protected] and/or to the following address:

Attention: City of Richmond Finance/Account Payable
Project Manager: _______________________
P.O. Box 4046
Richmond, CA 94804

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

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

b. All appropriate permits, certificates, and licenses, including a City business license shall be obtained and maintained for the duration of this Contract before any payment is authorized.

4. All insurance coverage required by this Contract shall be provided by the Contractor before this Contract is executed by the City. The insurance coverage required by this Contract shall be maintained by Contractor for the duration of this Contract and must be in place before any payment is authorized.

Jerry Gurule
Jerry Gurule
Govdollars Consulting LLC
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Contract No: ________ For the Contract between the City of Richmond and
_____________________________

EXHIBIT C

AUTHORIZED REPRESENTATIVES AND NOTICES

1. All required written notices shall be delivered: (i) by hand; or (ii) sent by registered, express, or certified mail, with return receipt requested or with delivery confirmation requested from the U.S. postal service; or (iii) sent by overnight or same day courier service at the party’s respective address listed in this Section.

2. Each notice shall be deemed to have been received on the earlier to occur of:
actual delivery or the date on which delivery is refused; or three (3) days after notice is deposited in the U.S. mail or with a courier service in the manner described above (Sundays and City holidays excepted).

3. Either party may, at any time, change its notice address (other than to a post office box address) by giving the other party three (3) days prior written notice of the new address.

4. All notices, demands, requests, or approvals from Contractor to the City shall be addressed to the City at:

City of Richmond
450 Civic Center Plaza
Richmond, CA 94804
Email: ________________________________________________

5. All notices, demands, requests, or approvals from the City to Contractor shall be addressed to Contractor at:

Attn:

Email: ________________________________________________ Jerry Gurule
[email protected]
Govdollars Consulting LLC
Govdollars Consulting LLC
: 5409 Huntingwood Drive
Raleigh, NC 27606
[email protected]
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Contract No: ________ For the Contract between the City of Richmond and
_____________________________

EXHIBIT D

GENERAL CONDITIONS

1. INDEPENDENT PARTIES:

Contractor hereby declares that Contractor is engaged as an independent business and Contractor agrees to perform the services as an independent contractor.

The manner and means of conducting the services and tasks are under the control of Contractor except to the extent they are limited by statute, rule or regulation and the express terms of this Contract. No civil service status or other right of employment will be acquired by virtue of Contractor’s services. None of the benefits provided by the City to its employees, including but not limited to unemployment insurance, workers’ compensation plans, vacation and sick leave, are available from the City to Contractor, its employees or agents. Deductions shall not be made for any state or federal taxes, FICA payments, PERS payments, or other purposes normally associated with an employer-employee relationship from any compensation due to Contractor. Payments of the above items, if required, are the responsibility of Contractor.

2. TIME IS OF THE ESSENCE:

Contractor and the City agree that time is of the essence regarding the performance of this Contract.

3. STANDARD OF CARE:

Contractor agrees to perform all services hereunder in a manner commensurate with the prevailing standards of like professionals or service Contractors, as applicable, in the San Francisco Bay Area and agrees that all services shall be performed by qualified and experienced personnel who are not employed by the City.

4. IMMIGRATION REFORM AND CONTROL ACT (IRCA):

Contractor assumes all responsibility for verifying the identity and employment authorization of all of its employees performing work hereunder, pursuant to all applicable IRCA or other federal, or state rules and regulations. Contractor shall indemnify, defend, and hold the City harmless from and against any loss, damage, liability, costs or expenses arising from any noncompliance of this provision by Contractor.

5. NON-DISCRIMINATION:

Consistent with the City’s policy and state and federal law that harassment and discrimination are unacceptable conduct, Contractor and its employees, contractors, and agents shall not harass or discriminate against any job applicant, City employee, or any other person on the basis of any kind of any statutorily (federal, state or local) protected class, including but not limited to: race, religious creed, color, national origin, ancestry, Govdollars Consulting LLC
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Contract No: ________ For the Contract between the City of Richmond and
_____________________________
disability (both mental and physical) including HIV and AIDS, medical condition (e.g. cancer), genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, pregnancy, political affiliation, military and veteran status or legitimate union activities. Contractor agrees that any violation of this provision shall constitute a material breach of this Contract.

6. CITY PROPERTY:
a. Each and every report, draft, work product, map, record, applicable plans, drawings, calculation, data, specification, video, graphic, or any other material or document produced, prepared or caused to be prepared by Contractor pursuant to or in connection with this Contract shall be the exclusive property of the City.

b. Notwithstanding the foregoing, Contractor shall not be obligated to provide to City proprietary software or data which Contractor has developed or had developed for Contractor's own use; provided, however, that Contractor shall, pursuant to Section 11 below, indemnify, defend and hold the City harmless from and against any discovery or Public Records Act request seeking the disclosure of such proprietary software or data.

c. No report, information or other data given to or prepared or assembled by Contractor pursuant to this Contract shall be made available to any individual or organization by Contractor without prior approval of the City Manager or their designee.

d. Contractor shall, at such time and in such form as City Manager or their designee may require, furnish reports concerning the status of services and tasks required under this Contract.

7. RECORDS:

a. Contractor shall maintain complete and accurate records with respect to the services, tasks, work, documents and data in sufficient detail to permit an evaluation of Contractor’s performance under the Contract, as well as maintain books and records related to sales, costs, expenses, receipts and other such information required by the City that relate to the performance of the services and tasks under this Contract (collectively the “Records”).

b. All Records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Contractor shall provide free access to the Records to the representatives of the City or its designees during regular business hours upon reasonable prior notice. The City has the right to examine and audit the Records, and to make copies or transcripts therefrom as necessary, and to allow inspection of all proceedings and activities related to this Contract. Such Records, together with supporting documents, shall be kept separate from other documents and records and shall be maintained by Contractor for a period of five (5) years after receipt of final payment.

Govdollars Consulting LLC
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_____________________________
c. If supplemental examination or audit of the Records is necessary due to concerns raised by the City’s preliminary examination or audit of records, and the City’s supplemental examination or audit of the records discloses a failure to adhere to appropriate internal financial controls, or other breach of this Contract or failure to act in good faith, then Contractor shall reimburse the City for all reasonable costs and expenses associated with the supplemental examination or audit.

8. PERMITS AND LICENSES:

Contractor, at its sole expense, shall obtain and maintain during the term of this Contract, all appropriate permits, certificates and licenses, including a City business license, required in connection with the performance of the services and tasks hereunder.

The failure to obtain such permits and licenses shall be a material breach of this Contract and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual or extraordinary circumstances without necessitating any modification of this Contract to reflect such waiver.

9. TERMINATION:

a. Termination Without Default. Notwithstanding any provision herein to the contrary, the City may, in its sole and absolute discretion and without cause, terminate this Contract at any time prior to completion by Contractor of the project or services hereunder immediately upon transmission of written notice to Contractor as provided in Exhibit C “Authorized Representatives and Notices”.

b. Termination in the Event of Default. Should Contractor fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Contract, City may immediately terminate this Contract by giving written notice of such termination, stating the reasons for such termination. Contractor shall be compensated as provided in Exhibit B; provided, however, there shall be deducted from such amount the amount of damage, including attorney's fees, expert witness fees and costs, if any, sustained by City by virtue of Contractor's breach of this Contract. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.

10. CONFLICT OF INTEREST:

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

11. HOLD HARMLESS:

a. To the fullest extent permitted by law, Contractor shall indemnify, defend (with counsel acceptable to the City) and hold harmless the City, its City Council, boards, commissions, officials, employees, agents and volunteers (“Indemnitees”) from and against any and all loss, damages, liability, obligations, claims, suits, judgments, costs and expenses whatsoever, including attorney’s fees and costs of litigation (“Claims”), arising from or in any manner connected to Contractor’s performance of its obligations under this Contract or failure to comply with any of its obligations under this Contract or out of the operations conducted by Contractor even if the City is found to have been negligent. If the Claims filed against Indemnitees allege negligence, recklessness or willful misconduct on the part of Contractor, Contractor shall have no right of reimbursement against Indemnitees for the costs of defense even if negligence, recklessness or willful misconduct is not found on the part of Contractor. Contractor shall not have any obligations to indemnify Indemnitees if the loss or damage is found to have resulted solely from the negligence or the willful misconduct of the City. The defense and indemnification obligations of this Contract are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Contract.

b. This indemnification obligation shall survive this Contract and shall not be limited by any term of any insurance policy required under this Contract; provided however, that if this Contract is for design professional services, this indemnity provision is limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the design professional (as defined in California Civil Code section 2782.8).

12. LIMITATIONS UPON SUBCONTRACTING AND ASSIGNMENT:

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

b. Contractor shall not assign, sublease, hypothecate, or transfer this Contract, or any interest therein, directly or indirectly, by operation of law or otherwise, without prior written consent of the City Manager. Contractor shall submit a written request for consent to transfer to the City Manager at least thirty (30) days in advance of the desired transfer.

The City Manager or their designee may consent or reject such request in their sole and absolute discretion. Any attempt to do so without said consent shall be null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. However, claims for Govdollars Consulting LLC
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money against the City under this Contract may be assigned by Contractor to a bank, trust company or other financial institution without prior written consent.

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

d. Only those persons and/or businesses whose names and resumés are attached to this Contract shall be used in the performance of this Contract. However, if after the start of this Contract, Contractor wishes to use sub-contractors, at no additional costs to the City, then Contractor shall submit a written request for consent to add sub- contractors including the names of the sub-contractors and the reasons for the request to the City Manager at least five (5) days in advance. The City Manager may consent or reject such requests in their sole and absolute discretion.

e. Each sub-contractor shall be required to furnish proof of workers’ compensation insurance and shall also be required to carry general, automobile and professional liability insurance (as applicable) in reasonable conformity to the insurance carried by Contractor.

f. In addition, any tasks or services performed by sub-contractors shall be subject to each provision of this Contract. Contractor shall include the following language in their Contract with any sub-contractor: “Sub-Contractors hired by Contractor agree to be bound to Contractor and the City in the same manner and to the same extent as Contractor is bound to the City.”

g. The requirements in this Section 12 shall not apply to persons who are merely providing materials, supplies, data or information that Contractor then analyzes and incorporates into its work product.

13. SAFETY:

a. Contractor acknowledges that the City is committed to the highest standards of workplace safety. Contractor will be solely and completely responsible for conditions of all vehicles owned or operated by Contractor, including the safety of all persons and property during performance of the services and tasks under this Contract.

Contractor shall assume sole and complete responsibility for the safety of Contractor's employees and any of subcontractor's employees This requirement will apply continuously and not be limited to normal working hours. In addition, Contractor will comply with all safety provisions in conformance with U.S. Department of Labor Occupational Safety and Health Act, any equivalent state law, and all other applicable Govdollars Consulting LLC
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federal, state, county and local laws, ordinances, codes, and any regulations that may be detailed in other parts of the Contract. Where any of these are in conflict, the more stringent requirements will be followed. Contractor’s failure to thoroughly familiarize itself with the aforementioned safety provisions will not relieve it from compliance with the obligations and penalties set forth herein.

b. Contractor will immediately notify the City (in no event less than 24 hours) of any incident of death, serious personal injury or substantial property damage that occurs in connection with the performance of this Contract. Contractor will promptly submit to the City a written report of all incidents that occur in connection with this Contract. This report must include the following information: (i) name and address of injured or deceased person(s); (ii) name and address of Contractor’s employee(s) involved in the incident; (iii) name and address of Contractor’s liability insurance carrier; (iv) a detailed description of the incident; and (v) a police report.

c. Contractor acknowledges that the City shall have the right to impose, at the City’s sole discretion, requirements that it deems are necessary to protect the health and safety of the City employees, residents, and visitors. Contractor agrees to comply with all such requirements, including, but not limited to, mandatory vaccinations, the use of personal protective equipment (e.g. masks), physical distancing, and health screenings.

Contractor also agrees to make available to the City, at the City’s request, records to demonstrate Contractor’s compliance with this Section.

14. INSURANCE:

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

15. COMPLIANCE WITH ALL APPLICABLE LAWS:

a. During the term of this Contract, Contractor shall keep fully informed of all existing and future state and federal laws and all municipal ordinances and regulations of the City of Richmond which affect the manner in which the services or tasks are to be performed by Contractor, as well as all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Contractor shall comply with all applicable laws, state and federal and all ordinances, rules and regulations enacted or issued by the City. Compliance under this provision includes compliance with all provisions of the Richmond Municipal Code ("Municipal Code"), including Chapters 2.50,

2.52, 2.56, and 2.60, if applicable.

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

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c. Contractor shall comply with § 2.28.030 of the Municipal Code, obligating every Contractor or sub-Contractor under an agreement or sub-agreement with the City for public works, goods or services to refrain from discriminatory employment or practices on the basis of race, color, sex, sexual orientation, religious creed, national origin or ancestry of any employee, any applicant for employment or any potential sub-contractor.

d. Contractor acknowledges that the City’s Drug Free Workplace Policy, Violence in the Workplace Policy and the Policy Against Workplace Harassment, are available on the City’s website at http://www.ci.richmond.ca.us/workplacepolicies.

Contractor agrees to abide by the terms and conditions of said policies.

16. INTEGRATED CONTRACT:

The Recitals and exhibits are a material part of this Contract and are expressly incorporated herein. This Contract represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions hereof. Any modification of this Contract will be effective only by written execution signed by both the City and Contractor.

17. CONFLICTING PROVISIONS:

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

18. FORCE MAJEURE:

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

19. CONFLICT OF LAW:

This Contract shall be interpreted under, and enforced by the laws of the State of Govdollars Consulting LLC
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California without regard to any choice of law rules which may direct the application of laws of another jurisdiction. The Contract and obligations of the parties are subject to all valid laws, orders, rules, and regulations of the authorities having jurisdiction over this Contract (or the successors of those authorities). Any suits brought pursuant to this Contract shall be filed with the courts of the County of Contra Costa, State of California.

20. CLAIMS:

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

21. INTERPRETATION:

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

22. WARRANTY:

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

23. SEVERABILITY:

In the event that any of the provisions or portions or applications thereof of this Contract are held to be unenforceable or invalid by any court of competent jurisdiction, City and Contractor shall negotiate an equitable adjustment in the provisions of the Contract with a view toward effecting the purpose of this Contract, and the validity and enforceability of the remaining provisions or portions or applications thereof, shall not be affected thereby.

24. AUTHORITY:

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

25. WAIVER:

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

26. COUNTERPARTS:

This Contract may be executed in any number of counterparts (including by fax, PDF, DocuSign, or other electronic means), each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

27. SANCTUARY CITY CONTRACTING ORDINANCE (SCCO):

The Richmond Sanctuary City Contracting Ordinance No. 12-18 prohibits the City from granting and or retaining contracts with any person or entity that provides Data Broker or Extreme Vetting services to the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security (“ICE”). Contractor must submit the Sanctuary City Compliance Statement, attached hereto as Exhibit G.

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EXHIBIT E

SPECIAL CONDITIONS

The General Conditions are hereby amended to include the following modifications and/or provisions (if applicable, otherwise please state “NONE”):

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The Term of this contract may be extended twice, each for no more than twelve (12) month terms, for a total contract term not to exceed five (5) years, by mutual written agreement of the Parties.

Additionally, please reference the attached Addendum to the City of Richmond Contract, provided by vendor GovDollars, LLC.
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Master Terms and Conditions

1. DEFINITIONS.

1.1 “Client Data ” means the information, data, media and content stored in the Lomali Service by Client.

1.2 “Confidential Information” means all confidential or proprietary information disclosed by one Party to the other in connection with this Agreement. Without limiting the generality of the foregoing, Confidential Information shall include: (a) Client Data (as defined herein) and non- public information, documentation, and materials, which may be disclosed or made available from any source or in any form relating to the Client’s financial information, employees, programs, and systems and (b) GDC’s Proprietary Items.

1.3 “Documentation” means GDC’s standard user guides and manuals relating to the Lomali Service, including on-line help, as updated from time to time.

1.4 “Lomali Service” means GDC’s internet-based service that provides various budget -related tools to local governments.

1.5 “Order” means any document or collection of related documents that references this Agreement, that sets forth as applicable the components of the Lomali Service to be provided, as well as associated fees and other agreed terms. An Order may be a separate Order Form describing such terms, or may be all of the ordering documents used by Client in ordering the Lomali Services (e.g. an RFP, GDC’s response to the RFP and a Purchase Order issued by Client.).

1.6 “Proprietary Items ” means, collectively, the Lomali Service and Documentation, the visual expressions, screen formats, report formats and other design features of the Lomali Service, all ideas, methods, algorithms, and concepts used in developing and/or incorporated into the Lomali Service or Documentation, all future modifications, revisions, updates, refinements, improvements and enhancements of the Lomali Service or Documentation as the same may be created or modified from time to time.

1.7 “Subscription Term” means the duration of Client’s right to receive, access, and use the Lomali Service, as set forth on an Order (the “Initial Subscription Term”) and any subsequent Renewal Subscription Terms.

If such duration is not specified on the applicable Order, the Subscription Term shall be three (3) years.

2. SUBSCRIPTION RIGHTS AND OBLIGATIONS

2.1 Lomali Service. During the Subscription Term GDC will provide Client with access to the Lomali Service, in accordance with the Documentation and the applicable Order(s).

2.2 Authorized Access. Unless otherwise specified in the applicable Order, (a) the Lomali Service is purchased for the use of Client and Client’s employees and other service providers provided that ( b) each user shall have his/her own user account, and ( c) each user shall be an employee of Client or a contractor to Client involved in Client’s budget operations.

2.3 Client Responsibilities. Client shall (a) be responsible for connecting to and using the Lomali Service made available to it in accordance with this Agreement, (b) be responsible for all users acts and omissions in connection with their use of the Lomali Service, ( c) be responsible for the accuracy, quality, integrity and legality of Client Data, (d) use commercially reasonable efforts to prevent unauthorized access to or use of the Lomali Service, and notify GDC as promptly as practicable of any such unauthorized access or use, (e) use the Lomali Service only in accordance with this Agreement, the Documentation and applicable laws and regulations, and (f) reasonably cooperate with GDC as necessary for GDC to perform its obligations. Client shall be responsible for, and assumes the risk of, any problems resulting from, the content, accuracy, completeness and consistency of all data, materials and information supplied by Client.

2.4 Restrictions. Client shall not (and shall not permit any authorized user to): (a) make the Lomali Service available to any third party other than authorized users associated with Client, (b) resell, lease, distribute, transfer or otherwise make available the Lomali Service on a time-sharing or service bureau basis to a third party, (c) 158
use the Lomali Service to store or transmit infringing, libelous, or otherwise unlawful or tortious material, or to store or transmit material in violation of third-party privacy rights, (d) use the Lomali Service to store or transmit malicious code, (e) use or access the Lomali Service in any way that threatens the integrity, performance, or availability of the Lomali Service or any data therein, (f) attempt to gain unauthorized access to the Lomali Service, or (g) decompile, disassemble, reverse engineer or otherwise attempt to access or modify the source code to the Lomali Service, in whole or in part. GDC may restrict or prohibit access to Client if GDC reasonably suspects Client is breaching its obligations under this Section.

2.5 Support and Maintenance. During the Subscription Term, GDC shall provide a mechanism for Client to report errors in the Lomali Service to GDC. GDC shall take commercially reasonable efforts to correct all errors reported by Client which have a material impact on Client’s ability to use the Lomali Service, in accordance with the severity of the error. Client acknowledges that not all errors will necessarily be corrected and that, in particular, minor errors, requests for additional features and/or general questions may not be addressed in any specific timeframe (or at all). GDC shall take commercially reasonable efforts to ensure that the Lomali Service is available for Client’s use on a 24x7 basis, provided, however, that GDC shall not be responsible for any downtime or inaccessibility of the Lomali Service outside of its reasonable control. GDC may cause the Lomali Service to be unavailable in order to perform maintenance functions (including, but not limited to, error corrections or adding additional features to the Lomali Service), provided that it shall take reasonable measures to perform such maintenance outside of Client’s normal business hours and, except in emergency situations, shall provide at least five (5) business days’ notice of such maintenance. GDC does not guarantee that look and feel, interface to the Lomali Service or functionality shall remain constant during the Subscription Term.

3. CLIENT DATA

3.1 Data Ownership. All Client Data shall be considered proprietary to Client. GDC will only use Client Data for performing Lomali Services, and as authorized under this Agreement. In the course of providing the Lomali Service, GDC may collect data regarding how Client’s users use the Lomali Service (“Usage Data”) and use such information to improve the Lomali Service, to develop new features of the Lomali Service, and to provide support for the Lomali Service. Usage Data is not Client Data, and Usage Data shall be owned by GDC.

3.2 Data Safeguards. GDC shall maintain reasonable and appropriate data safeguards and procedures designed to prevent the unauthorized use or disclosure of Client Data (“Data Safeguards”). For cloud services, GDC uses industry standard TLS/SSL based encryption technologies intended to ensure the data transmitted cannot be observed by third parties. GDC will periodically maintain archives and back-ups of Client Data.

3.3 End of Subscription Term. Intentionally omitted.

4. PAYMENTS 2

4.1 Fees and Expenses. In consideration for the subscriptions granted to Client and the performance of GDC’s other obligations under this Agreement, Client shall pay to GDC, without offset or deduction, the fees and expenses as determined under the Orders and this Agreement . Unless otherwise provided in an Order, all such fees shall be due and payable within forty-five (45) calendar days after an invoice is issued by GDC.

4.2 Taxes. The fees and other amounts payable by Client to GDC do not include any taxes of any jurisdiction that may be assessed or imposed upon the Lomali Service, Documentation, or otherwise, including sales, use, excise, value added, personal property, export, import and withholding taxes, excluding only taxes based upon GDC’s net income. If the provision of the Lomali Services to Client incurs any such taxes, then Client shall directly pay any such taxes assessed. Client shall promptly reimburse GDC for any taxes payable or collectable by GDC (other than taxes based upon GDC’s net income). In no event shall GDC pay any tax on behalf of Client without first providing thirty (30) days’ written notice to Client of the tax and the amount to be remitted.

4.3 Payment Terms. Fees and expenses shall be invoiced by GDC as set forth in the Order. If not specified in an Order, fees shall be payable in advance upon execution of the Order. All invoices shall be sent to Client's address for invoices as designated by Client or, if not designated, then the address printed on this Agreement.

All dollar amounts referred to in this Agreement are in United States Dollars. "Good Faith Dispute" means a good faith dispute by Client of certain amounts invoiced under this Agreement. A Good Faith Dispute will be deemed to 159
exist only if (a) Client has given written notice of the dispute to GDC after receiving the invoice and (b) the notice explains Client's position in reasonable detail. A Good Faith Dispute will not exist as to an invoice in its entirety merely because certain amounts on the invoice have been disputed.

4.4 Suspension. If Client’s account is more than forty-five (45) days overdue, GDC shall have the right, in addition to its remedies under this Agreement or pursuant to applicable law, to suspend Client’s use of the Lomali Service a until Client has paid the full balance owed, plus any interest due.

5. WARRANTIES AND LIMITATIONS

5.1 Performance Warranties. GDC warrants that the Lomali Service shall perform as described in the then current Documentation in all material respects. GDC’s only obligation under these warranties is to correct any failure to so perform, or if such correction is not possible in a c ommercially reasonable timeframe, refund the fees paid for the specific non-conforming services during the periods of non-conformance (or portion thereof reflecting the diminution in value of such services).

5.2 Exclusion for Unauthorized Actions and Results of Use . GDC shall have no liability under any provision of this Agreement with respect to any performance problem, delay, or other matter to the extent attributable to any unauthorized or improper use or modification of the Lomali Service any unauthorized combination with other services, deliverables, platforms, software, hardware, or technology, or any act or omission by Client, its affiliates, or other authorized users or other representatives or contractors. Client is solely responsible for the results obtained from the use of the Lomali Service and Documentation. This Section shall not apply to the acts or omissions of GDC.

5.3 Disclaimer. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT , THE LOMALI SERVICE AND DOCUMENTATION ARE PROVIDED "AS IS" AND GDC MAKES NO OTHER

REPRESENTATIONS OR WARRANTIES, ORAL OR WRITTEN, EXPRESS OR IMPLIED, ARISING FROM

COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE, OR OTHERWISE, INCLUDING

IMPLIED WARRANTIES OF MERCHANTABILITY , FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON- INTERFERENCE, OR NON-INFRINGEMENT.

5.4 Damage Limitation. Intentionally omitted.

5.5 Other Limitations. The warranties made by GDC in this Agreement, and the obligations of GDC under this Agreement, run only to Client and not to any third party. There are no third -party beneficiaries of this Agreement. The Client and GDC have freely and openly negotiated this Agreement, including the pricing, with the knowledge that the liability is to be limited in accordance with the provisions of this Agreement.

6. Confidentiality

6.1 General Confidentiality Provisions. All Confidential Information of a Party ("Disclosing Party") in the possession of the other (" Receiving Party"), whether or not authorized, shall be held in strict confidence, and the Receiving Party shall take all steps reasonably necessary to preserve the confidentiality of the Confidential Information. Information will not constitute the other Party’s Confidential Information if it (a) is already known by the Receiving Party without obligation of confidentiality; (b) is independently developed by the Receiving Party without access to or use of the Disclosing Party’s Confidential Information; (c) is or becomes a vailable to the public without breach of this Agreement; or (d) is lawfully received from a third party without obligation of confidentiality.

The Receiving Party will not use or disclose any Confidential Information except as expressly authorized by this Agreement and will protect the Disclosing Party’s Confidential Information using the same degree of care that it uses with respect to its own confidential information, but in no event with safeguards less than a reasonable level of care under similar circumstances. The Receiving Party will take prompt and appropriate action to prevent unauthorized use or disclosure of the Disclosing Party’s Confidential Information. Notwithstanding the foregoing, the Receiving Party will not be in violation of this Section 6 with regard to a disclosure that was in response to a valid order or requirement by a court or other governmental body, in response to a public records request, or otherwise required by law, provided that unless prohibited by law the Receiving Party gives the Disclosing Party prior written notice of such disclosure in order to permit the Disclosing Party to seek an appropriate protective order. Information that i s disclosed pursuant to a valid court or governmental order shall not lose its status as Confidential Information. 160

7. OWNERSHIP OF PROPRIETARY ITEMS

7.1 General. All Proprietary Items provided to or accessed by Client under this Agreement are being made available on a strictly confidential and limited use basis in accordance with this Agreement and have great commercial value to GDC. This Agreement is not an agreem ent of sale, and no title, patent, copyright, trademark, trade secret, intellectual property or other ownership rights to any Proprietary Items are transferred to Client under this Agreement. GDC reserves all rights not expressly granted by this Agreement.

7.2 Title and Ownership. All right, title, and interest in and to the Proprietary Items (including all related patent, copyright, trademark, trade secret, intellectual property and other ownership rights) are and will remain the sole and exclusive property of GDC. Any derivative works, modifications, or enhancements relating to the Proprietary Items (whether created alone by either Party or jointly by or on behalf of both Parties or their representatives through Professional Services or otherwise) will be solely and exclusively owned by GDC. Client hereby assigns to GDC any rights, title and interest, including all intellectual property rights in any feedback, suggestions, ideas, derivative works, modifications, enhancements, or improvements related to the Proprietary Items that C lient or any of its authorized users or representatives provide, propose, create, conceive, author or develop relating to this Agreement or their use of the Subscription Service or Lomali Service.

8. TERMINATION

8.1 Either Party may terminate this Agreement or an Order immediately on giving notice in writing to the other Party if the other Party:
(a) commits a material breach (including any non-payment of fees due other than fees subject to a Good Faith Dispute) and, in the case of a material breach capable of being cured, failed to cure that breach within sixty (60) days after the receipt of a request in writing to cure such breach; or (b) files for bankruptcy;
(c) becomes or is declared insolvent, or is the subject of any proceedings related to its liquidation, insolvency or the appointment of a receiver or similar officer for it; (d) makes an assignment for the benefit of all or substantially all of its creditors; or (e) enters into an agreement for the cancellation, extension, or readjustment of substantially all of its obligations; provided, however, if the non- terminating party provides adequate assurances regarding its ability to continue performing the other Party may not terminate.

8.2 GDC may terminate this Agreement or the applicable Order if Client fails to remit payment (other than fees subject to a Good Faith Dispute) and does not cure such payment discrepancy within forty -five (45) days of the provision of notice.

8.3 Client may terminate this Agreement or the applicable Order effective on June 30 th of the Client’s fiscal year if its approved and adopted annual operating budget for the subsequent fiscal year does not appropriate funds which would otherwise be payable under this Agreement or the applicable Order for such subsequent fiscal year. If the Client exercises its right to terminate pursuant to this Section 8.3, then Client shall provide written notice to GDC as soon as practicable after the adoption of such annual budget. This Section 8.3 permits termination notwithstanding (a) any required performance or payment after June 30 th of the then-current year or in future calendar
years, (b) any automatic renewal otherwise applicable to this Agreement or the relevant Order; or (c) any provision in this Agreement or the applicable Order specifying that its term extends for multiple years.

8.4 Upon any termination or expiration of this Agreement, whether under this Section 8 or otherwise, GDC shall perform its data transfer and destruction obligations under Section 4.5 of the Agreement and Client shall: (a) discontinue all access and use of all Proprietary Items and Confidential Information, (b) promptly return to GDC all copies of the Documentation and any other Proprietary Items then in Client's possession or control, and (c) certify in writing that all copies of the GDC Proprietary Information and Confidential Information have been permanently deleted. Client is expressly prohibited from retaining any Confidential Information or Proprietary Items 161
of GDC past the term of this Agreement. Client shall remain liable for all payments due to GDC with respect to the period ending on the date of termination. For any termination other than a termination for cause by Client in accordance with Section 10.1, the balance of all remaining subscription fees relating to the then current Subscription Term will be due and payable. The provisions of Sections 6, 7, and 8 shall survive any termination or expiration of this Agreement.

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EXHIBIT F

INSURANCE PROVISIONS
☐ CHECK HERE IF RISK MANAGEMENT HAS APPROVED WAIVING INSURANCE REQUIREMENTS FOR THIS CONTRACT.

1. CERTIFICATES: Before the commencement of the terms of this Contract, and during the entire term of this Contract and any extension or modification thereof, Contractor shall furnish the City’s Risk Manager with certificates showing the type, amount, class of operations covered, effective dates and dates of expiration of insurance coverage in compliance with coverage requirements set forth by the City and incorporated herein.

Such certificates, which do not limit Contractor’s indemnification, shall also contain substantially the following statement:
“Should any of the above insurance covered by this certificate be canceled or coverage reduced before the expiration date thereof, the insurer affording coverage shall provide thirty (30) days’ advance written notice to the City of Richmond.

Attention: Risk Manager.”
Contractor shall maintain in force at all times during the performance of this Contract all appropriate coverage of insurance required by this Contract with an insurance company licensed to offer insurance business in the State of California with a current A.M. Best’s rating of no less than A:VII or Standard & Poor’s Rating (if rated) of at least BBB unless otherwise acceptable to the City. Contractor shall deliver updated insurance certificates to the City at the address set forth in Exhibit C prior to the expiration of the existing insurance certificate for the duration of the term of Contract.

Endorsements naming the City, its City Council, boards, commissions, officials, employees, agents, and volunteers as additional insured shall be submitted with the insurance certificates.

2. COVERAGE REQUIREMENTS: The City’s insurance requirements depend upon the type of service being provided and/or the provider. The City’s insurance requirements will fall into one of the following categories (unless otherwise provided by the City):

Consultants and Contractors – Type 1
Professional Services – Type 2
Environmental Risk/Hazardous Waste Material – Type 3
Lease of City Property – Type 4
Vendors, Suppliers, Small Grant Recipients & Nonprofit Organizations – Type 5 Transportation Providers – Type 6
Professional Services Pyrotechnics – Type 7
Cyber and I.T. Risks – Type 8
Govdollars Consulting LLC
163
Contract No: ________ For the Contract between the City of Richmond and
_____________________________
The insurance requirements classification applicable to this Contract shall be attached to this Exhibit F and made a part hereof.

3. FAILURE TO SECURE: If Contractor at any time during the term hereof should fail to secure or maintain the foregoing insurance, the City shall be permitted to obtain such insurance in Contractor’s name or as an agent of Contractor and shall be compensated by Contractor for the costs of the insurance premiums at the maximum rate permitted by law and computed from the date written notice is received that the premiums have not been paid.

4. SUFFICIENCY OF INSURANCE: The insurance limits required by the City are not represented as being sufficient to protect Contractor. Contractor is advised to consult Contractor’s insurance broker to determine adequate coverage for Contractor. The coverage and limits shall be (1) the minimum coverage and limits specified in this Contract; or (2) the broader coverage and maximum limits of the coverage carried by or available to Contractor; whichever is greater.

INSERT INSURANCE REQUIREMENTS CLASSIFICATION APPLICABLE TO THIS CONTRACT: (IF NECESSARY, CONFIRM WITH RISK MANAGER)
Govdollars Consulting LLC
164
Contract No: ________ For the Contract between the City of Richmond and
_____________________________

EXHIBIT G

SANCTUARY CITY COMPLIANCE STATEMENT

The undersigned, (hereafter "Contractor"), has had an opportunity to review the requirements of City of Richmond Ordinance 12-18 (hereafter "Sanctuary City Contracting Ordinance" or “SCCO”).

Contractor understands and agrees that the City may choose with whom it will maintain business relations and may refrain from contracting with any person or entity that provides Data Broker or Extreme Vetting services to the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security (“ICE”). Contractor understands the meaning of the following terms used in the SCCO:

a. "Data Broker” means either of the following:

i. The collection of information, including personal information about consumers, from a wide variety of sources for the purposes of reselling such information to their customers, which include both private-sector business and government agencies;

ii. The aggregation of data that was collected for another purpose from that for which it is ultimately used.

b. “Extreme Vetting” means data mining, threat modeling, predictive risk analysis, or other similar services."

Contractor understands that it is not eligible to receive or retain a City contract if at the time the Contract is executed, or at any time during the term of the Contract, it provides Data Broker or Extreme Vetting services to ICE.

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

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

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

Printed Name: Title:

Signed: Date:

Business Entity:

Govdollars Consulting LLC
165
February 18, 2025

Finance Department

DATE: February 18, 2025
TO: Mayor Martinez and Members of the City Council
FROM:

Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
Antonio Banuelos, Accounting Manager

Subject:

Investment and Cash Balance Report, Monthly Overtime
Reports, and Documentary Transfer Tax Report for the
Month of December 2024
FINANCIAL IMPACT: There is no fiscal impact due to this agenda item.

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

City staff is requesting that the City Council receive the City’s Investment and Cash Balance Report, Monthly
Overtime Reports, and Documentary Transfer Tax
Report for the month of December 2024.

RECOMMENDED ACTION:

RECEIVE the City’s Investment and Cash Balance
Report, Monthly Overtime Reports, and Documentary
Transfer Tax Report for the month of December 2024 –
Finance Department (Andrea Miller 510-620-6740).

AGENDA
REPORT
166
February 18, 2025
DISCUSSION:

Investment and Cash Balance Report
It is the policy of the City of Richmond (City) to invest public funds in a manner which prioritizes safety and liquidity over yield while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. In accordance with California Government Code Section 53646 and the City’s Investment Policy, the Director of Finance shall report monthly on the City's pooled and Bond funds to the City Manager and City Council and shall report quarterly on other investments.

The Investment and Cash Balance Report is a monthly report of the City’s pooled cash balance which includes General Fund, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal service, Trust & Agency, Redevelopment/Successor Agency, and any other Funds investment activities under the direction of the City (Attachment 1).

The Portfolio Management Report represents the monthly bank balances, along with market balances of permitted investments according to the City’s Investment Policy.

Investment in the Local Agency Investment Fund (LAIF), CalTrust, money market, agency bonds, certificates of deposits, and corporate notes are all allowable by California Government Code Section 53601 and permitted according to the City of Richmond’s Investment Policy updated December 3, 2024.

This investment report reflects the additional restrictions the City Council added to the City of Richmond’s Investment Policy at the April 30, 2024, special meeting. Staff presented Investment Policy modifications and recommendations for socially responsible investments to Council for consideration based on the policy direction to eliminate the investment of City funds in industries that facilitate violence, war, oppression, and apartheid. Recommendations were presented and adopted by the Council on December 3, 2024 (Resolution #145-24) with the request for periodic updates. Staff will provide an update to Council in March 2025.

At the September 2024 Federal Open Market Committee (FOMC) meeting, the Federal Reserve (Fed) lowered interest rates by 50 basis points, easing monetary policy for the first time in four years. This lowers the interest rate target to a range of 4.75 percent – 5 percent on investments. In November 2024, as a follow-up to September’s big half- percentage point reduction, the FOMC lowered its benchmark overnight borrowing rate by a quarter percentage point, or 25 basis points, to a target range of 4.50 percent -

4.75 percent. At the December 2024 Federal Open Market Committee (FOMC) meeting, the Federal Reserve (Fed) lowered interest rates by 25 basis points. This lowers the target interest rate range to 4.25 percent - 4.5 percent and reflects the Fed’s ongoing commitment to achieving its dual goals of maximum employment and price stability. The City has started to see a slight decrease in our rate of return due to these recent rate cuts.

167
February 18, 2025
The City is allowed to pre-fund future Pension and City’s Pension and Other Post- Employment Benefits (OPEB) costs in accordance with the OPEB policies. These funds are invested according to the policies funding objectives and funding guidelines. The City maintains a Section 115 Combination Trust for City-OPEB & Pension administered by Public Agency Retirement Services (PARS) and a California Employers’ Retiree Benefit Trust (CERBT) administered by California Public Employees’ Retirement System (CalPERS) for RPOA-OPEB. Each Trust is comprised of a diversified portfolio of investments consistent with the Trust’s objectives and liquidity requirements.

Overtime Reports

The overtime reports for the month of December 2024 provides a comparative summary of budgeted overtime to actual overtime usage by department for miscellaneous and sworn staff. Year-over-year and month-over-month totals are included for sworn staff (Attachment 2 and 3).

Documentary Transfer Tax

On June 24, 2024, City Council requested monthly updates of the Transfer Tax received by the City of Richmond from Contra Costa County for the sale of properties in Richmond. As this is the most volatile revenue stream for the City, the amounts received month-to-month can vary from as low as $300,000 to upwards of $3 million – a few large sales can widely swing the revenues.

In January 2025, the City received the documentary transfer tax data report from the County which identified that the tax revenue for December 2024 would total $448,976.50 (Attachment 4).

DOCUMENTS ATTACHED:

Attachment 1 – Investment and Cash Balance Report for December 2024 Attachment 2 – Overtime Report for December 2024
Attachment 3 – Overtime Public Safety Report for December 2024 Attachment 4 – Documentary Transfer Tax Report for December 2024

168
169
170
171
172
173
174
175
Period 6 December 2024
50% Threshold
Overtime Report for December 2024 (Attachment 2)

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
GENERAL FUND (summary)
400031 OVERTIME/General 1,903,320 37,851 1,941,171 1,099,823 841,3 48 57% 400032 OVERTIME/Sworn 11,190,934 - 11,190,934 5,906,145 5,284,78 9 53% TOTAL GENERAL FUND 13,094,254 37,851 13,132,105 7,005,968 6,126,138 53% Overtime By Department

CITY CLERK
Administration 25,000 - 25,000 10,182 14 ,818 41%

COMMUNITY DEVELOPMENT
General Plan Code Enforcement - 20,000 20,000 2,945 17,055 15%

FINANCE
Payroll 30,000 - 30,000 6,089 23,911 2 0% Accounts Payable - - - 317 (317) 100% Revenue Collection 5,000 - 5,000 515 4,485 10% TOTAL FINANCE 35,000 - 35,000 6,921 28 ,079 20%

HUMAN RESOURCES
Administration - - - 269 (269) 100% POLICE
Administration 490,227 - 490,227 291,541 198,686 59% CAD Dispatch System 751,511 - 751,511 512,030 23 9,481 68% RM System 4,000 - 4,000 1,960 2 ,040 49% Parking Enforcement 4,000 - 4,000 6,630 (2,630) 166% Sworn Administration 6,708,965 - 6,708,965 3,491,820 3,217,1 45 52% TOTAL POLICE 7,958,703 - 7,958,703 4,303,981 3,654,722 54%

Page 1 of 4176 ends

Period 6 December 2024
50% Threshold
Overtime Report for December 2024 (Attachment 2)

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
FIRE
Administration 2,000 - 2,000 2,010 (10) 101% Sworn Suppression 4,452,872 - 4,452,872 2,392,240 2,060,632 54% Sworn Prevention 29,097 - 29,097 14,586 14,511 50% Prevention - - - 741 (741) 100% Prv-Chvrn Insp - - - 1,133 (1,133) 100% Sworn Prv-Chvrn Insp - - - 7,498 (7,498) 100% TOTAL FIRE 4,483,969 - 4,483,969 2,418,209 2,065,760 54%

OFFICE OF NEIGHBORHOOD SAFETY
Administration 40,000 - 40,000 1,806 38,194 5%

PUBLIC WORKS & ENGINEERING SVCS
Stationary Engineers 12,000 - 12,000 6,875 5,125 57% Building Services 5,000 - 5,000 5,515 (515) 110% Utility Sections 132,000 - 132,000 42,974 89 ,026 33% Electric 25,000 - 25,000 18,367 6,633 73% Parks & Landscape Admin 200,000 - 200,000 82,226 117,774 41% Streets Administration 36,000 (34,000) 2,000 - 2,000 0% Street Sweeping 1,100 5,000 6,100 60 6,040 1% Pavement Maintenance 41,447 15,000 56,447 28,874 27,573 51% Traffic Signs & Lines 4,885 14,000 18,885 13,721 5,164 73% Equipment Services 20,000 - 20,000 7,750 12,250 39% Abatement Services 50,000 - 50,000 27,019 22,981 54% TOTAL PUBLIC WORKS 527,432 - 527,432 233,381 294 ,051 44%

LIBRARY
Library Administration 7,000 - 7,000 11,709 (4,709) 167%

Page 2 of 4177 ends

Period 6 December 2024
50% Threshold
Overtime Report for December 2024 (Attachment 2)

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT

COMMUNITY SERVICES
Recreation Services/Cities of Service - 343 343 343 - 100% Recreation Administration 400 356 756 756 - 100% Booker T Center 100 - 100 92 8 92% Nevin Center 1,800 - 1,800 741 1,059 41% Shields Reid 200 - 200 - 200 0% Recreation Complex 1,000 1,061 2,061 2,061 - 100% Parchester Center 700 219 919 919 - 100% May Valley Center 700 361 1,061 1,061 - 100% Recreation DPRC 750 - 750 823 (73) 110% Senior Center 200 - 200 14 186 7% Senior Center Annex 300 - 300 224 76 75% Aquatics 5,000 - 5,000 2,993 2,0 07 60% Convention Center 1,500 5,512 7,012 4,929 2,084 70% Plunge 3,500 - 3,500 1,351 2,149 39% TOTAL COMMUNITY SERVICES 16,150 7,851 24,001 16,305 7,697 68%

ECONOMIC DEVELOPMENT PROGRAM
Administration 1,000 - 1,000 260 740 26% Public Art - 10,000 10,000 - 10 ,000 0% TOTAL ECONOMIC DEVELOPMENT 1,000 10,000 11,000 260 10,740 2% TOTAL GENERAL FUND 13,094,254 37,851 13,132,105 7,005,968 6,126,138 53%

Page 3 of 4178 ends

Period 6 December 2024
50% Threshold
Overtime Report for December 2024 (Attachment 2)

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT

NON-GENERAL FUND
Overtime By Fund
1012 HILLTOP LANDSCAPE MAINT DIST 20,000 - 20,000 1,080 18,920 5% 1015 MARINA BAY LNDSCP & LIGHT DIST 25,300 - 25,300 7,797 17,503 31% 1018 RENT CONTROL 2,500 - 2,500 1,893 607 76% 1050 CR-PLANNING & BUILDING 9,500 - 9,500 1,979 7,521 21% 1050 CR-PLANNING & BUILDING 15,000 - 15,000 4,692 10,308 31% 1055 ENCROACHMENT SVCS 25,000 - 25,000 26,332 (1,332) 105% 1303 KIDS FIRST INITIATIVE - - - 1 ,285 (1,285) 100% 4001 PORT OF RICHMOND - - - 100 (100) 100% 4003 WASTEWATER ADMINISTRATION - - - 10,795 (10,795) 100% 4003 WASTEWATER PRE-TREATMENT 7,500 - 7,500 23,283 (15,783) 310% 4006 STORMWATER - - - 2,587 (2,587 ) 100% 4405 RHA-NYSTROM VILLAGE 11,000 - 11,000 5,295 5,705 48% TOTAL NON-GENERAL FUNDS 115,800 - 115,800 87,118 28,682 75%

Page 4 of 4179 ends

Overtime Public Safety Report for December 2024 (Attachment 3) City of Richmond
Public Safety Sworn Overtime
Fund: 0001 - General Fund
Period 1 2 3 4 5 6 7 8 9 10 11 12 Average
Month July August September October November December January February March April May June YTD YTD Remaining Monthly Target % 8% 17% 25% 33% 42% 50% 58% 67% 75% 83% 92% 100% Total $ Total % Budget Expense

ORIGINAL
BUDGET

REVISED
BUDGET
FY2017-18 Overtime - Sworn 3,169,000 3,169,000 569,194 440,670 445,282 459,402 452,278 396,762 322,524 497,979 455,202 554,449 509,368 466,567 5,569,677 175.8% (2,400,677) 464,139.77 FY2018-19 Overtime - Sworn 3,433,019 3,433,019 482,143 537,369 655,866 437,794 524,577 430,398 367,322 512,595 422,587 497,767 536,209 505,966 5,910,592 172.2% (2,477,573) 492,549.37 FY2019-20 Overtime - Sworn 5,000,000 4,800,000 473,963 469,392 491,205 509,931 449,751 473,935 390,897 498,501 501,383 479,696 560,031 439,159 5,737,844 119.5% (937,844) 478,153.64 FY2020-21 Overtime - Sworn 2,497,290 3,533,043 275,202 246,822 296,775 382,618 306,787 278,293 205,529 303,631 307,092 357,284 323,537 368,366 3,651,935 103.4% (118,892) 304,327.96 FY2021-22 Overtime - Sworn 5,165,434 5,165,434 379,016 408,253 487,481 423,830 333,006 307,152 255,420 330,788 314,524 336,044 304,989 366,419 4,246,922 82.2% 918,512 353,910.14 POLICEFY2022-23 Overtime - Sworn 5,165,435 4,800,000 373,491 355,649 399,628 355,866 377,889 401,964 396,783 474,403 463,499 416,775 496,542 449,394 4,961,883 103.4% (161,883) 413,490.26 FY2023-24 Overtime - Sworn 4,800,000 6,708,965 487,105 925,716 477,693 462,417 470,347 531,204 424,452 626,680 478,293 593,735 568,535 588,097 6,634,274 98.9% 74,691 552,856.16 FY2024-25 Overtime - Sworn 6,708,965 6,708,965 560,788 543,814 584,028 590,943 580,286 631,961 3,491,820 52.0% 3,217,145 581,970.08 FY2017-18 Overtime - Sworn 2,486,914 2,486,914 268,465 345,174 291,221 359,542 367,182 310,508 336,315 176,449 132,298 196,306 203,912 166,108 3,153,480 126.8% (666,566) 262,789.99 FY2018-19 Overtime - Sworn 2,509,914 2,509,914 257,785 245,946 179,272 171,370 219,937 204,997 261,780 216,596 196,343 310,702 220,368 275,166 2,760,261 110.0% (250,347) 230,021.77 FY2019-20 Overtime - Sworn 4,305,402 2,509,914 295,166 277,886 286,016 300,083 332,654 382,084 347,492 328,467 350,709 302,505 264,571 325,335 3,792,969 151.1% (1,283,055) 316,080.74 FY2020-21 Overtime - Sworn 1,993,165 3,193,165 398,678 380,282 417,982 393,922 267,819 345,928 341,403 305,081 172,961 261,923 263,518 286,039 3,835,537 120.1% (642,372) 319,628.09 FY2021-22 Overtime - Sworn 3,629,097 4,334,499 334,236 434,974 358,578 358,251 352,789 327,832 448,493 410,429 297,215 355,475 725,409 438,807 4,842,489 111.7% (507,990) 403,540.77 FIREFY2022-23 Overtime - Sworn 4,334,499 4,334,499 444,959 444,457 414,638 401,115 402,116 379,882 443,531 475,560 339,814 398,079 369,477 435,057 4,948,685 114.2% (614,186) 412,390.41 FY2023-24 Overtime - Sworn 4,482,969 5,135,869 524,969 473,094 348,296 346,854 363,759 315,266 363,100 382,930 381,442 417,762 431,523 357,820 4,706,814 91.6% 429,055 392,234.47 FY2024-25 Overtime - Sworn 4,481,969 4,481,969 365,927 375,737 425,984 419,101 468,811 358,764 2,414,324 53.9% 2,067,645 402,387.35 FY2024-25 TOTAL 11,190,934 11,190,934 926,715 919,552 1,010,013 1,010,045 1,049,096 990,725 - - - - - - 5,906,145 52.8% 5,284,789 984,357.43

BUDGET ACTUALS TOTAL

Page 1 of 1 ends

180
Documentary Transfer Tax
The City of Richmond receives Documentar y Transfer Tax from the County for the sale of properties in Richmond. As one of the mo st volatile revenue streams for the City, the amounts received can vary month-to-month fr om the low $300 thousand to the highs of $3 million. A few large sales can widely swing the revenues.

In FY2023-24, the City budgeted $13.3 million for the Transfer Tax category and received $8.6 million, equating to a difference of $4.7 million.

For FY2024-25, the City has budgeted $7.4 million. The difference between the budgeted amounts in these two years is that in the current budget, staff did not include property sales of over $10 million. These few and unpredictable transactions skew the monthly sales amounts. Removing these transactions from the calculation yields more predictable and obtainable amounts to be used for budgeting.

As a reminder, Measure H, approved by Richmond voters in November 2018, went into effect at the end of December 2018. Measure H increased t he real estate transfer tax from 0.7 percent to 1.25 perc ent for properties with a sale price of over $1 million but below $3 million, 2.5 percent for properties with a sale price between $3 - $10 million, and

3.0 percent for properties with a sale price over $10 million.

The table below shows each monthly paym ent going back to FY2018-19 and highlights the volatility of this revenue stream. Of note are the very high payments received in certain months which are shown as significant peaks.

Attachment 4 - Documentary Transfer Tax for December 2024 1 181
Action City Split
$17,250.00
$5,075.00
$13,312.50
$4,620.00
$4,900.00
$3,850.00
$2,170.00
$16,625.00
$4,480.00
$2,520.00
$24,375.00
$4,305.00
$2,800.00
$2,240.00
$3,850.00
$4,935.00
$5,740.00
$15,125.00
$3,850.00
$2,450.00
$4,375.00
$36,250.00
$5,215.00
$5,509.00
$4,795.00
$23,687.50
$4,550.00
$13,512.50
$4,095.00
$2,100.00
$5,950.00
$4,900.00
$4,865.00
$6,125.00
$6,300.00
$5,712.00
$13,575.00
$3,185.00
$3,780.00
$4,725.00
$3,605.00
$6,300.00
$4,270.00
$5,075.00
$3,535.00
$26,250.00
$5,915.00
$2,415.00
2024-0137789 12/27/2024 08:05 12/27/2024 08:05:00
2024-0137981 12/27/2024 10:17 12/27/2024 10:17:00
2024-0137557 12/26/2024 11:38 12/26/2024 11:38:00
2024-0137739 12/26/2024 15:37 12/26/2024 15:37:00
2024-0137786 12/27/2024 08:02 12/27/2024 08:02:00
2024-0137083 12/24/2024 08:50 12/24/2024 08:50:00
2024-0137149 12/24/2024 10:14 12/24/2024 10:14:00
2024-0137549 12/26/2024 11:13 12/26/2024 11:13:00
2024-0136835 12/23/2024 13:03 12/23/2024 13:03:00
2024-0136891 12/23/2024 14:24 12/23/2024 14:24:00
2024-0136929 12/23/2024 14:56 12/23/2024 14:56:00
2024-0136563 12/23/2024 09:25 12/23/2024 09:25:00
2024-0136742 12/23/2024 11:40 12/23/2024 11:40:00
2024-0136800 12/23/2024 12:21 12/23/2024 12:21:00
2024-0136185 12/20/2024 10:44 12/20/2024 10:44:00
2024-0136294 12/20/2024 12:30 12/20/2024 12:30:00
2024-0136331 12/20/2024 13:26 12/20/2024 13:26:00
2024-0135360 12/18/2024 14:36 12/18/2024 14:36:00
2024-0135677 12/19/2024 12:30 12/19/2024 12:30:00
2024-0136076 12/20/2024 09:19 12/20/2024 09:19:00
2024-0135047 12/18/2024 09:52 12/18/2024 09:52:00
2024-0135152 12/18/2024 11:23 12/18/2024 11:23:00
2024-0135204 12/18/2024 11:45 12/18/2024 11:45:00
2024-0134825 12/17/2024 13:21 12/17/2024 13:21:00
2024-0134852 12/17/2024 14:07 12/17/2024 14:07:00
2024-0134871 12/17/2024 14:42 12/17/2024 14:42:00
2024-0133863 12/13/2024 14:06 12/13/2024 14:06:00
2024-0133916 12/13/2024 14:31 12/13/2024 14:31:00
2024-0134504 12/17/2024 09:00 12/17/2024 09:00:00
2024-0133711 12/13/2024 11:39 12/13/2024 11:39:00
2024-0133805 12/13/2024 12:59 12/13/2024 12:59:00
2024-0133808 12/13/2024 13:01 12/13/2024 13:01:00
2024-0132831 12/11/2024 13:25 12/11/2024 13:25:00
2024-0133270 12/12/2024 12:53 12/12/2024 12:53:00
2024-0133429 12/13/2024 08:03 12/13/2024 08:03:00
2024-0131541 12/09/2024 10:27 12/09/2024 10:27:00
2024-0131624 12/09/2024 12:08 12/09/2024 12:08:00
2024-0132425 12/10/2024 16:06 12/10/2024 16:06:00
2024-0131033 12/06/2024 09:15 12/06/2024 09:15:00
2024-0131194 12/06/2024 12:02 12/06/2024 12:02:00
2024-0131357 12/06/2024 15:26 12/06/2024 15:26:00
2024-0130579 12/05/2024 10:18 12/05/2024 10:18:00
2024-0130680 12/05/2024 11:19 12/05/2024 11:19:00
2024-0130797 12/05/2024 14:08 12/05/2024 14:08:00
2024-0129494 12/03/2024 10:02 12/03/2024 10:02:00
2024-0130081 12/04/2024 09:37 12/04/2024 09:37:00
2024-0130207 12/04/2024 11:52 12/04/2024 11:52:00
Document No. Recording Date/Time Transaction Date/Time
For Richmond
2024-0129186 12/02/2024 13:02 12/02/2024 13:02:00
KRISTIN B. CONNELLY, CLERK-RECORDER
County of Contra Costa
555 Escobar Street * Martinez, CA 94553
Recorder (925) 335-7900 * Fax (925) 335-7926
Transfer Tax Monthly Detail by City
Report Date & Time
01/08/2025 16:04
City: Rm Richmond
For Month: December 2024
Attachment 4 - Documentary Transfer Tax for December 2024 2 182
$5,530.00
$2,338.00
$3,080.00
$5,460.00
$4,900.00
$5,985.00
$13,312.50
$13,562.50
$5,250.00
$15,625.00
$3,780.00
$5,110.00
$448,976.50
Total $ of Cap docs 420,143.50$ $448,976.50
Total Count of Cap docs 49 60
Total:

Count:
2024-0139108 12/31/2024 09:51 12/31/2024 09:51:00
2024-0139160 12/31/2024 10:52 12/31/2024 10:52:00
Total For Richmond
2024-0138720 12/30/2024 14:33 12/30/2024 14:33:00
2024-0138848 12/31/2024 07:54 12/31/2024 07:54:00
2024-0138850 12/31/2024 07:56 12/31/2024 07:56:00
2024-0138354 12/27/2024 15:32 12/27/2024 15:32:00
2024-0138555 12/30/2024 10:38 12/30/2024 10:38:00
2024-0138701 12/30/2024 14:22 12/30/2024 14:22:00
2024-0138204 12/27/2024 13:46 12/27/2024 13:46:00
2024-0138220 12/27/2024 14:18 12/27/2024 14:18:00
2024-0138294 12/27/2024 14:43 12/27/2024 14:43:00
2024-0137993 12/27/2024 11:09 12/27/2024 11:09:00
Attachment 4 - Documentary Transfer Tax for December 2024 3 183

Page 1 of 2 ends

February 18, 2025

Human Resources

DATE: February 18, 2025
TO: Mayor Martinez and Members of the City Council
FROM:

Nickie Mastay, Deputy City Manager – Internal Services
Sharrone Taylor, Director of Human Resources

Subject:

Receive the 2024 Annual Report of the Personnel Board
FINANCIAL IMPACT: None.

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

City of Richmond Charter Article XIII Personnel
Administration Section.8 directs that the Personnel
Director make annual reports to the Personnel Board for its approval and transmission to the Council. Attached is the 2024 Annual Report as adopted by the Personnel
Board.

RECOMMENDED ACTION:

RECEIVE the 2024 Annual Report of the Personnel
Board to adhere to the requirement that the annual report is transmitted to the City Council on an annual basis - Human Resources Department (Nickie Mastay/Sharrone
Taylor 510-620-6602).

AGENDA
REPORT
184

Page 2 of 2 ends

February 18, 2025
DISCUSSION:

The attached 2024 Annual Report of the Personnel Board denotes the Classified Service activities in the area of classification review, recruitments, employment activity, personnel rules, the formation or modification of collective bargaining units, and Personnel Board appeals.

The Personnel Board is responsible for the adoption and modification of the Personnel Rules, the creation and modification of class specifications, and the hearing of appeals resulting from disciplinary actions or allegations of discrimination. Article XIII Personnel Administration Sec. 8 (k) states:

The Director of Personnel shall make annual reports to the Personnel Board for its approval and transmission to the City Council on the administration and effect of this Article, with such recommendations as he may deem desirable, and to render such special reports as the Personnel Board may request. Such reports shall be public record.

A few key highlights include:
 Human Resources conducted 71 recruitments.
 Human Resources reviewed 6,437 applications.
 The City hired 111 employees and promoted 62 employees.

On January 23, 2025, the Personnel Board received the report from the Human Resources Director.

DOCUMENTS ATTACHED:

Attachment 1 - 2024 Annual Report of the Personnel Board 185
City of Richmond
Personnel Board
2024 ANNUAL REPORT
Personnel Board Members
Chair Larry Wirsig
Vice-Chair Vernetta Buckner
Board Member Phillip Front
Sharrone Taylor
Human Resources Director
Human Resources Department
January 23, 2025
186
Introduction
The Personnel Board is responsible for the adoption and modification of the Personnel Rules, the creation and modification of class specifications, and the hearing of appeals resulting from disciplinary actions or allegations of discrimination.

Article XIII Personnel Administration Sec. 8 (k) states:
• The Director of Personnel shall make annual reports to the Personnel Board for its approval and transmission to the City Council on the administration and effect of this Article, with such recommendations as he may deem desirable, and to render such special reports as the Personnel Board may request. Such reports shall be public record.
187
2024 Human Resources Activity In Review
Human Resources
conducted 71
recruitments.

Human Resources
reviewed 6,437
applications.

The City hired 111
employees and
promoted 62
employees.
188
2024 Human Resources
Highlights and Accomplishments
• Launched a restructured Firefighter
recruitment campaign focused on
attracting diverse applicant pool and City
of Richmond residents.
• Human Resources made great strides in
implementing a robust Employee
Engagement Program which included an
Employee Appreciation Event, Wellness
and Fitness Events, weekly new employee
introductory emails, ROSIE-Gram (peer
appreciation), and an informative and
attractive monthly employee newsletter.
• A Recruitment Hub was created for the
department heads and hiring managers to
streamline the hiring processes and to
provide important information in an
accessible and easy to use format.
189
Employment Activity
• The City hired 111 employees
• The City promoted 62 employees
Additional Human Resources Activity:

Personnel Rules Amendments
• There were zero (0) Personnel
Rules amendments in 2024
Personnel Board Appeal Hearings
• There were zero (0) appeals
request and one (1) hearing in
2024
Formation/Modification of Bargaining
Units
• None
190
A Look Ahead
2025 Highlights
• The City will be engaging in negotiations with
all eight bargaining units to negotiate fair
contracts that will fortify a stable workforce.
• The City will be coordinating a Classification
and Compensation Study to ensure that the
City of Richmond continues to be the employer
of choice by providing competitive wages.
• Employee Training and upskilling will continue
to be a focus. We will be introducing a COR
Academy for the workforce, training curriculum
designed for our Public Works employees, a
robust safety training program, and a
comprehensive DEI&B Training program for all
employees as part of the City’s Race Equity
Initiative.
• A healthy and vibrant workforce is equally
important. The City will continue making
strides in the areas of wellness by ensuring our
employees have access to a responsive
Employee Assistance Program, adequate
mental health support, and city-wide health-
centric initiatives and events.
191
7 Your Human Resources Department has employed several strategies focused on employee recruitment, retention, accountability and we have clear goals to improve employee morale and wellness, promote stability, employee retention, provide training and workforce development, succession planning, and more.

YOUR HUMAN RESOURCES HEROES
We represent over 125 years of City of Richmond Experience! 192
We thank you for taking
your civic duty seriously
and supporting the City in
the hiring of a skilled, and
capable workforce that
will implement the City
Council’s goals and
objectives.
193

Page 1 of 3 ends

February 18, 2025

Finance Department

DATE: February 18, 2025
TO: Mayor Martinez and Members of the City Council
FROM:

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

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

PREVIOUS COUNCIL
ACTION:

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

STATEMENT OF THE
ISSUE:

City Staff is requesting that the City Council review and adopt the updates to the Guiding Fiscal Policy. On April 10, 2021, the City Council approved the Guiding Fiscal
Policy. Updates to the Guiding Fiscal Policy are reflected in Section E, Documentary Transfer Tax.

RECOMMENDED ACTION:

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

AGENDA
REPORT
194

Page 2 of 3 ends

February 18, 2025
DISCUSSION:

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

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

The City Council must adopt budget in June of every year, hence, it is impractical to recalculate documentary transfer tax in June and adopt the budget simultaneously. To remedy this timing issue, City staff is proposing the following update to the Guiding Fiscal Policy, Section E:

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

Additional edits were made in the following sections:
 II. A. C. D.
 III. A. C. F.
 IV. B. C.
 V. C.
195

Page 3 of 3 ends

February 18, 2025
 VI. B.
 IX. A. 3.

SYNERGISTIC POLICIES:

Strategic Goal Area No. 5: Strengthen the City’s Internal Infrastructure and Process Goal No. 5.2 – Improve fiscal responsibility

DOCUMENTS ATTACHED:

Attachment 1 – Guiding Fiscal Policy
196

Updated: February 4, 2025 1 Attachment 1 - Guiding Financial Policy.docx POLICY: Guiding Fiscal Policy
ESTABLISHED: April 20, 2021
RESOLUTION NO.: None

I. Guiding Fiscal Policy
A. Budget development by the City Manager will be guided by a long -term financial plan developed in consultation with City Council, the Mayor and other key stakeholders and adopted by City Council.

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

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

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

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

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

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

197

Updated: February 4, 2025 2 Attachment 1 - Guiding Financial Policy.docx H. The use of unencumbered prior -year balances in all funds as well as other non - recurring revenues shall be scrutinized and carefully limited to be used primarily for non-recurring expenditures. Non-recurring expenditures are defined as those that have a cle arly recognized termination date connected to the completion of the identified purpose of the expenditure, even if the expenditure crosses multiple fiscal years.

I. The City Council must approve any changes to position control irrespective of the impact to the City’s operating budget.

II. Special Revenue Funds and Enterprise Funds
A. Special revenue fund administrators must regularly evaluate and manage the balances within the fund to ensure that they are spent timely to achieve the fund’s intent.

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

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

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

III. Reserve Policies
A. The City’s goal shall be to achieve 15 21 percent of its operating General Fund expenditures as a minimum reserve policy. The City must balance the need for adequate reserves with its responsibility to provide services to the residents of Richmond. In years when the City forecasts that total General Fund revenues will be less than the current year’s revenues, or anytime significant service reductions, such as layoffs or furloughs, are c ontemplated due to adverse financial conditions, use of the General Fund reserve must be considered to maintain existing services. Use of General Fund reserves must be authorized by City Council resolution explaining the need for use.

198

Updated: February 4, 2025 3 Attachment 1 - Guiding Financial Policy.docx B. Prior-year fun ds and surpluses will revert to their original funding sources with the exception of cost-recovery funds that will be permitted to maintain a reserve balance of 10 percent of the actual expenditures from the previous fiscal year. Those funds reverting to the General Fund will be allocated to the unassigned fund balance.

C. In fiscal years where it becomes necessary for the City to use monies in the Reserve Fund such that the Reserve Fund balance drops below the twenty-one percent level, the City will initiate action in the subsequent year to replenish the Reserve Fund to the level of twenty-one percent of General Fund expenditures. If use of Reserve Fund monies is less than one percent of General Fund recei pts, the City shall attempt to replenish the twenty-one percent balance in the subsequent fiscal year. If use of Reserve Fund monies is more than one percent of General Fund revenue, the City shall attempt to replenish the twenty-one percent balance by one percent per year over a period of years as necessary to restore the Reserve Fund balance to the level of twenty-one percent of General Fund expenditures.

D. Risk Management Internal Service Fund reserves should be maintained at a level that adequately cover the City’s self -insurance indemnity risk exposure to City property, liability, health benefits and workers compensation obligations.

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

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

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

199

Updated: February 4, 2025 4 Attachment 1 - Guiding Financial Policy.docx B. City departments may not increase a prior -year encumbrance, but they may disencumber one. Notwithstanding this Policy, prior -year encumbrances for capital projects may be increased if there is more money left on the contract. Only the Ci ty Council may reprogram prior-year disencumbered funds. At the end of a fiscal year, all unencumbered funds will revert to their respective fund balance originating funding source or, if the originating source is the General fund, to the unassigned fund balance.

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

The City Manager is authorized to implement this Policy and to ensure funds are disencumbered at the appropriate time.

V. Fund Balances/Accounting
A. The General Fund is the only fund in the City permitted to have a positive unassigned fund balance. Fund balances in any other fund outside of the General Fund should be earmarked monies either as restricted, committed, or assigned based upon the authority under which such categorizations have been given by Government Accounting Standards Board (GASB).

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

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

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

200

Updated: February 4, 2025 5 Attachment 1 - Guiding Financial Policy.docx VI. Fiscal Sustainability Planning
A. Service level or work force reductions based solely on anticipated or current budget deficits cannot be adopted by City Council until all other sources of funds including reserves and other fund balances have been considered to cover budget gaps.

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

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

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

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

D. The City will pursue federal, state, and private grants but will carefully analyze the need for, and availability of, required financial support of the se programs beyond grant funding. City Council will determine whether grant funding supplants or augments current funding for programs. Any such financial support must be reported at the time that the City considers accepting the grant. Financial support includes, but is not limited to, an obligation for a current or ongoing City match and a need to maintain a service level following the termination of the grant.

E. The City will continuously seek new revenues and pursue a diverse revenue base in order to lim it the impact to the City from short -term fluctuations in any one revenue source. The City must consider taxes that are not regressive.

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

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

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

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

201

Updated: February 4, 2025 6 Attachment 1 - Guiding Financial Policy.docx E. The City will no longer be permitted to use interest rate swaps when issuing debt.

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

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

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

IX. Capital and Technology Projects
A. Objectives and Project Prioritization

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

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

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

4. Project Prioritization Criteria – projects should meet one of the standards under each subheading and the criteria apply not only to projects in the 5-year capital plan, but also for projects applied for through the grant process.

202

Updated: February 4, 2025 7 Attachment 1 - Guiding Financial Policy.docx a) Resilience and Sustainability
(1) Project improves the health of the community and natural environment through sustainable designs with improved water resources and regional air quality and reduced greenhouse gas emission that contributes to climate change, open space and land for preservation, habitat protection and biological diversity, and enhanced urban runoff management.
(2) Project facilitates multiple transportation options ( including walkability, bicycles, and public transportation) and reduces the need for auto-dependency
(3) Project promotes infill development, where appropriate. (4) Project incorporates design that meets or exceeds recognized Federal and State standards in the field of energy efficiency, such as State of California Title 24 Energy Efficiency Standards, or LEED building standards.
(5) Project results in greener neighborhoods and reduces or avoids the potential public exposure to pollutants, contamination and other hazards to public health and environment.
b) Impact to City Operations, Asset Condition, Annual Recurring Costs and Asset Longevity
(1) Project is necessary to meet the basic level of service needs. (2) Project avoids potential infrastructure failure.
(3) Project minimizes maintenance needs by improving
infrastructure and/or reducing future costs.
(4) Project delay would create significant future costs, or negative community impacts.
c) Equitable Community Investment and Economic Sustainability (1) Project contributes toward economic development and revitalization efforts.
(2) Project will benefit underserved communities including those with low - income households, low community engagement, limited or no access to the internet, and low mobility or access to transportation systems.
(3) Project benefits communities that have the highest population served per acre.
d) Project Readiness
(1) Project is ready to enter the phase corresponding to the funding requested (e.g., a design -build project with a completed environmental document will rank higher than a design -build project without a complete environmental document).
203

Updated: February 4, 2025 8 Attachment 1 - Guiding Financial Policy.docx (2) Project shall be ranked based upon the delivery method.

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

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

204

Updated: February 4, 2025 9 Attachment 1 - Guiding Financial Policy.docx

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

205

Page 1 of 2 ends

February 18, 2025

Finance Department

DATE: February 18, 2025
TO: Mayor Martinez and Members of the City Council
FROM: Shasa Curl, City Manager
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager

Subject:

Financial Policies and Administrative Policy Manual
Update
FINANCIAL IMPACT: There is no financial impact from receiving this update

PREVIOUS COUNCIL
ACTION:

None.

STATEMENT OF THE
ISSUE:

City staff are providing City Council and the community with updated Financial Policies and Administrative Policy Manual. Government Finance Officers Association
(GFOA) recommended best practices, and standards set
forth by the California Municipal Treasurers Association (CMTA) recommend governments formally adopt
financial policies and review annually as part of the
budget process.

RECOMMENDED ACTION:

ADOPT a resolution approving the updates to the
Finance Policies and Administrative Policy Manual and
adopting the Unclaimed Funds Policy - Finance
Department (Andrea Miller 510-620-6790/Mubeen Qader
510-412-2077/Jerry Gurule 510-620-6591).

AGENDA
REPORT
206

Page 2 of 2 ends

February 18, 2025
DISCUSSION:

The Finance Department has undertaken a comprehensive review of our existing Financial Policies to ensure policies align with the California Government Code, Government Finance Officers Association (GFOA) recommended best practices, and standards set forth by the California Municipal Treasurers Association (CMTA). These policies serve as essential guidelines for City Staff, ensuring adherence to financial standards across all operational facets.

GFOA recommends governments formally adopt financial policies and review annually as part of the budget process. Following our assessment, we have identified five policies that require updates to better reflect current requirements and enhance efficacy and propose a new policy (Attachment 1). The policies are as follows:

1. Other Post Employment Benefits (OPEB) Funding Policy - Update

2. Pension Funding Policy - Update

3. Travel Expense Policy and Procedure - Update

4. Debt Policy - Update

5. Grants Management Policy - Update

6. Unclaimed Funds Policy - New

The new Unclaimed Funds Policy will account for unclaimed funds in a manner which follows Government Code Sections 50050 through 50057. Funds that remain unclaimed for at least three (3) years will become the property of the City of Richmond after the procedures identified within the policy have been followed.

DOCUMENTS ATTACHED:

Attachment 1 – Financial Policies
Attachment 2 – Resolution Adopting Financial Policies

207

City of Richmond
Financial Policies

Updated February 2025
208

Updated: February 4, 2025 1 City of RichmondAttachment 1 - Financial Policies.docx

Table of Contents

GUIDING FISCAL POLICY ....................................................................................................................................... 23 OPEB FUNDING POLICY ......................................................................................................................................... 12 PENSION FUNDING POLICY ................................................................................................................................... 16 CASH RESERVE POLICY ........................................................................................................................................ 18 DEBT POLICY ........................................................................................................................................................... 20 GRANT MANAGEMENT POLICY ............................................................................................................................ 37 INVESTMENT POLICY ......................................................................................................................................... 4443 UNCLAIMED FUNDS POLICY ............................................................................................................................. 5352 PURCHASING POLICY ........................................................................................................................................ 5958 EMPLOYEE MEAL AND FOOD POLICY ......................................................................................................... 105100 TRAVEL EXPENSE POLICY AND PROCEDURE ............................................................................................ 108102 FASTRAK POLICY & PROCEDURES ............................................................................................................. 117111 ACCOUNTS PAYABLE ACH POLICY .............................................................................................................. 120113 GLOSSARY ....................................................................................................................................................... 122115 POLICY: Guiding Fiscal Policy
209

Updated: February 4, 2025 2 City of RichmondAttachment 1 - Financial Policies.docx
ESTABLISHED: April 20, 2021
RESOLUTION NO.: None

II.I. Guiding Fiscal Policy
A. Budget development by the City Manager will be guided by a long -term financial plan developed in consultation with City Council, the Mayor and other key stakeholders and adopted by City Council.

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

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

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

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

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

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

I. The City Council must approve any changes to position control irrespective of the impact to the City’s operating budget.

III.II. Special Revenue Funds and Enterprise Funds
A. Special revenue fund administrators must regularly evaluate and manage the balances within the fund to ensure that they are spent timely to achieve the fund’s intent.

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

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

IV.III. Reserve Policies
A. The City’s goal shall be to achieve 15 21 percent of its operating General Fund expenditures as a minimum reserve policy. The City must balance the need for adequate reserves with its responsibility to provide services to the residents of Richmond. In years when the City forecasts that total General Fund revenues will be less than the current year’s revenues, or anytime significant s ervice reductions, such as layoffs or furloughs, are contemplated due to adverse financial conditions, use of the General Fund reserve must be considered to maintain existing services. Use of General Fund reserves must be authorized by City Council resolut ion explaining the need for use.

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

C. In fiscal years where it becomes necessary for the City to use monies in the Reserve Fund such that the Reserve Fund balance drops below the twenty- onefifteen percent level, the City will initiate action in the subsequent year to replenish the Reserve Fund to the level of fifteentwenty- one percent of General Fund expenditures. If use of Reserve Fund monies is less than one percent of General Fund receipts, the City shall attempt to replenish the fifteentwenty- one percent balance in the subsequent fiscal year. If use of R eserve Fund monies is more than one percent of General Fund revenue, the City shall attempt to replenish the fifteentwenty- one percent balance by one percent per year over a period of years as necessary to restore the Reserve Fund balance to the level of twenty- onefifteen percent of General Fund expenditures.

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

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

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

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

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

The City Manager is authorized to implement this Policy and to ensure funds are disencumbered at the appropriate time.

VI.V. Fund Balances/Accounting
A. The General Fund is the only fund in the City permitted to have a positive unassigned fund balance. Fund balances in any other fund outside of the General Fund should be earmarked monies either as restricted, committed, or assigned based upon the authority under which such categorizations have been given by Government Accounting Standards Board (GASB).

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

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

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

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

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

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

D. The City will pursue federal, state, and private grants but will carefully analyze the need for, and availability of, required financial support of these programs beyond grant funding. City Council will determine whether grant funding supplants or augments current funding for programs. Any such financial support must be reported at the time that the City considers accepting the grant. Financial support includes, but is not limited to, an obligation for a current or ongoing City match and a need to maintain a service level following the termination of the grant.

E. The City will continuously seek new revenues and pursue a diverse revenue base in order to limit the impact to the City from short -term fluctuations in any one revenue source. The City must consider taxes that are not regressive.

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

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

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

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

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

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

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X.IX. Capital and Technology Projects
A. Objectives and Project Prioritization

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

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a) Resilience and Sustainability
(1) Project improves the health of the community and natural environment through sustainable designs with improved water resources and regional air quality and reduced greenhouse gas emission that contributes to climate change, open space and land for preservation, habitat protection and biological diversity, and enhanced urban runoff management.
(2) Project facil itates multiple transportation options (including walkability, bicycles, and public transportation) and reduces the need for auto-dependency
(3) Project promotes infill development, where appropriate. (4) Project incorporates design that meets or exceeds recognize d Federal and State standards in the field of energy efficiency, such as State of California Title 24 Energy Efficiency Standards, or LEED building standards.
(5) Project results in greener neighborhoods and reduces or avoids the potential public exposure to p ollutants, contamination and other hazards to public health and environment.
b) Impact to City Operations, Asset Condition, Annual Recurring Costs and Asset Longevity
(1) Project is necessary to meet the basic level of service needs. (2) Project avoids potential infrastructure failure.
(3) Project minimizes maintenance needs by improving
infrastructure and/or reducing future costs.
(4) Project delay would create significant future costs, or negative community impacts.
c) Equitable Community Investment and Economic Sustainability (1) Project contributes toward economic development and revitalization efforts.
(2) Project will benefit underserved communities including those with low - income households, low community engagement, limited or no access to the internet, and low mobility or acce ss to transportation systems.
(3) Project benefits communities that have the highest population served per acre.
d) Project Readiness
(1) Project is ready to enter the phase corresponding to the funding requested (e.g., a design -build project with a completed environmental document will rank higher than a design -build project without a complete environmental document).
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(2) Project shall be ranked based upon the delivery method.

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

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

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

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POLICY: OPEB Funding Policy
ESTABLISHED: April 20, 2021
RESOLUTION NO.: 65-23; DATE: June 27, 2023

XI.X. OPEB Funding Policy
A. Introduction
The purpose of this Statement of Benefits Plan Funding Policy (“Policy”) is to establish a methodology for funding benefit obligations accruing under the City of Richmond Other Post Employment Benefit Plans (the “Plans”). It is anticipated that current assets plus future assets from employer contributions, employee contributions, and investment earnings should be sufficient to fund the Plans benefits. The Policy is intended to reflect a reasonable, conservative approach with each generation of ratepayers financing, to the greatest extent possible, the cost of retiree healthcare benefits being accrued. This Policy recognizes that there will be investment marketplace volatility and that actual economic and demographic experience will differ from assumed experience. Accordingly, this Policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic, and financially sound manner. Further, it is the intent that this Policy comply with all applicable laws, rules and regulations (collectively “Laws”). In the event that this Policy conflicts with any such Law, the applicable Law shall prevail.

B. General Information
The City of Richmond (the “City”) currently manages two separate trust accounts in regard to Other Post Employment Benefits (“OPEB”). As of January 17, 2017, the Richmond Police Officers Association (“RPOA”) and the Ci ty implemented a new contract to create a separate OPEB trust for RPOA members and future retirees.

The City OPEB plan is administered by Public Agency Retirement Services (PARS) and the RPOA OPEB plan is administered by California Public Employees Retirement System (“CalPERS”).

C. Policy Funding Objectives
The primary funding objectives of this Policy, in order of importance, are to:

1. Provide sufficient assets to permit the payment of all benefits under the Plans.

2. Maintain equity among generations of ratepayers by:
a) Establishing improvement, on a projected basis, in the Plan’s Funded Ratio, as defined in the Glossary, such that it approaches 100% over a given period of time;

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b) Amortizing the Unfunded Actuarial Accrued Liability, as defined in the Glossary, over fixed periods, specified below.

3. Minimize the volatility of the employer’s annual contributions by smoothing investment gains and losses over a period of years. Smoothing investment returns over a period of years recognizes that investment performan ce will fluctuate, and only by coincidence will it exactly equal the assumed rate of return for any given year. It is anticipated that this approach may reduce volatility within the calculation of the Unfunded Actuarial Accrued Liability and the actuarially determined contribution rate.

D. Funding Guidelines
This Policy establishes guidelines for setting the employer contribution rate.

1. Actuarial Valuations
The Plan’s actuary shall conduct an actuarial valuation biennially, based on actual Plans data, to determine funding progress as well as employer contributions for the following two fiscal years.

2. Actuarially Determined Contribution Rate
a) The actuarial valuation report shall include calculation of a recommended Actuarially Determined Contribution (ADC) ra te. The ADC is intended to fund new OPEB liabilities as they are earned each year (the Normal Cost) plus an amortization of the existing Unfunded Actuarial Accrued Liability (UAAL).
b) The UAAL amortization component shall consist of:
(1) The initial UAAL amortized as a level dollar amount over a fixed 20-year period.
(2) Future unexpected changes in plan liabilities or assets at each valuation date shall each be amortized in “layers” as level dollar amounts over separate, fixed 20-year periods.
c) The ADC shall be reduc ed by the expected employee contributions to arrive at a net Actuarially Determined Employer Contribution (ADEC) rate. This target contribution rate may be expressed as a dollar amount or as a percent of payroll.
d) The ADEC shall be further reduced by the am ount of annual retiree benefits payments (Implicit Subsidy and/or Explicit Subsidy payments) which are paid from the City’s general assets but not reimbursed by the OPEB trusts.

3. Funding Policy Contribution Rate
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a) The City shall seek to contribute the Actuarially Determined Contribution rate annually, though it maintains the flexibility to reduce contributions when fiscally necessary.
b) The City shall place 10% of year -end operating surplus (Total Actual Revenues minus Total Actual Expenditures, including Transfers In and Transfers Out) in the General Fund in excess of the City’s Cash Reserve Policy into the Trusts.
c) For the purposes of the ADC calculation, investment return assumptions shall be evaluated by an independent investment advisor on a regular basis (at a minimum of every two years) and should reflect the nature of the investments held in the Plans, and the historical and projected return rates anticipated for the investments.

E. Assumption Guidelines

1. The actuarial assumptions are adopted by the City in an effort to align the funding of the Plans with actual demographic, healthcare and economic experience, thus providing stabil ity to the contribution rate over time. It is expected that actual experience will deviate from the actuarial assumptions and Experience Gains and Losses will occur. These gains (or losses) will reduce (or increase) future contributions.

2. Actuarial Assumptions are generally grouped into two major categories:
a) Demographic assumptions -- which include withdrawal (termination), retirement, disability, and mortality rates, as well as assumptions regarding beneficiaries.
b) Economic assumptions -- which include inflation, healthcare inflation and investment return.

3. As part of the annual OPEB valuation process, the actuary shall also provide advice to the City and recommend non -pension assumptions, such as increases in healthcare costs.

F. Transparency and Reporting
Funding of the City’s OPEB should be transparent to all parties including City employees, retirees, recognized employee organizations, the City Council and Richmond residents. In order to achieve this transparency, the following information shall be available:
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a) Copies of the actuarial valuations for the City’s OPEB plans shall be made available to the City Council.
b) The City’s Annual Comprehensive Financial Report (ACFR) shall be published on its website. This report includes information on the City’s OPEB plans, contributions to the OPEB Trusts, and the funded status of the plans.
c) The City’s annual operating budget shall include appropriations for contributions to the OPEB Trusts and pay-go costs.

G. Review of Funding Policy
Funding OPEB requires a long -term plan. The City shall review this policy annually and make changes as necessary. Annually checking the actuarial valuations to determine if changes to this policy are necessary to ensure adequate resources are being accumulated to fund OPEB.

All aspects o f this Policy and the individual factors in the calculation of the annual employer contribution rate which is the result of the above process are subject to the review and approval of the Board and are subject to change, in whole and in part, if deemed appropriate and in the best interests of the Plan sponsor and participants.

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POLICY: Pension Funding Policy

ESTABLISHED: October 17, 2023
RESOLUTION NO.: 104-23; DATE: October 17, 2023

XII.XI. Pension Funding Policy
A. Introduction
The following policy has been developed in response to significant annua l pension cost increases as a result of current and retired employees living longer, lower than anticipated investment returns by CalPERS over the last several years, reduction in Discount Rate and CalPERS adopted policies that require all cities to paybac k all Unfunded Actuarial Liability (“UAL”) over thirty years for unfunded liability prior to June 30, 2019 valuations and over twenty years for any new unfunded liability. This policy will formalize a funding mechanism to be used at the City’s discretion t o help offset future pension cost increases.

B. General Information
The City of Richmond (the “City”) approved a new contract to create a combo Section 115 Trust account on July 19, 2022, for pension prefunding. The combo Section 115 Trust account is administered by Public Agency Retirement Services (“PARS”) and allows the City to prefund Pension and Other Post-Employment Benefits (“OPEB”). The funds that are contributed to the Trust account can only be used to pay Pension and OPEB; the City can utilize these funds to pay for such costs during fiscal emergencies.

C. Policy Funding Objectives
The primary funding objectives of this Policy are to:

1. Address the increasing annual employer required UAL contributions due to variances in actual experience versus CalPERS actuarial assumptions including investment returns.

2. Prefunding the Trust Fund account can help the City improve its UAL funding ratio faster.

3. Provide budgetary flexibility during challenging budget years or to “smooth” payment spikes that could cause financial stress on the City.

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D. Funding Guidelines
This Policy establishes guidelines for setting the employer contribution to pre -fund rising pension costs.

1. The City shall continue to make annual UAL prepayment to CalPERS in the beginning of each Fiscal Year, resulting in an estimated 3.40 percent discount compared to paying the UAL monthly. The City shall place the prepayment savings into the Trust account.

2. The City shall place 10 percent of each year -end operating surplus (Total Actual Revenues minus Total Actual Expenditures, including Transfers In and Transfers Out) in the General Fund in excess of the City’s Minimum Reserve Policy into the Trust.

E. Review of Funding Policy
Funding Pension requires a long -term plan. The City will review this policy annually and make changes as necessary. Annually checking the CalPER S actuarial valuations to determine if changes to this policy are necessary to ensure adequate resources are being accumulated to fund Pension.

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POLICY: Cash Reserve Policy
ESTABLISHED: June 7, 2023
RESOLUTION NO.: 64-23; DATE: June 27, 2023

XIII.XII. Cash Reserve Policy
A. Overview
Municipal governments provide a wide range of services that have an impact on public safety and quality of life for community members. Prudent use of resources helps determine how effectively these services are provided on an ongoing basis. In addition to managing revenues and expenditures, it is also the municipal finance official’s responsibility to focus on the General Fund balance and maintain cash reserves. In particular, to maintain operations in case of any significant event that could cause disrupti ons in cash flow, such as an economic downturn or natural disaster.

The City of Richmond endeavors to maintain adequate reserves in its General Fund as a matter of fiscal prudence and sound financial management: This policy will guide the City in:
• Planning for contingencies and unexpected events;
• Ensuring cash availability to stabilize cash flow;
• Maintaining creditworthiness;
• Long-range financial planning; and
• Deciding when to use reserves and how to replenish reserves should they fall below the minimum threshold

B. Policy Guidelines
For purposes of this policy document, cash reserves refer to the sum of the Committed, Assigned, and Unassigned portions of the fund balance in the General Fund. The Governmental Accounting Standards Board Statement No. 54 (GASB 54) defines five distinct classifications of fund balances, applicable to governmental funds only, as follows:

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CLASSIFICATION NATURE OF DESIGNATION
Non-Spendable Cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to remain intact
Restricted Restricted either externally imposed or imposed by law through constitutional provisions or enabling legislation Committed Reserved for specific purposes pursuant to constraints imposed by formal action of the City Council
Assigned Reserved by the City Council or City Manager for specific purposes, but neither restricted nor committed
Unassigned Residual balance not classified in any of the above categories and has not been restricted, committed, nor
assigned to specific purposes
The City shall maintain year end contingency reserve balances in the General Fund of a minimum of twenty one percent (21%) of next year’s budgeted General Fund expenditures including transfers out. This is the minimum needed to maintain the City’s creditwo rthiness and to adequately provide for economic and legislative uncertainties, cash flow needs and contingencies. A policy based upon percentage assures that the reserve will remain a prudent cushion as the City’s budgets grow over time.

City Council approval is required before any withdrawals from the reserve fund. The City Council shall have the discretion to use the reserve for one -time emergencies only and not to be used for ongoing expenditures. As the City experiences net revenue gains in future years, the reserve balance must grow back to a minimum of twenty one percent (21%) of total expenditures, in order to allow the City to build up its capacity to handle future short term economic downturns or emergencies with minimal to no impact to City services.

The Director of Finance will review the Cash Reserve Policy annually in connection with the City’s annual budget process to ensure that the City is in compliance with the policy. Additionally, the City Manager will review the policy at regular intervals and will make recommendations for modification as deemed appropriate.

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POLICY: Debt Policy
ESTABLISHED BY: October 17, 2023
RESOLUTION NO.: 103-23; DATE: October 17, 2023

XIV.XIII. Debt Policy
A. Introduction
The City of Richmond (the City), through the Finance D epartment, executes debt instruments, administers debt proceeds, manages ongoing disclosure and debt compliance, and makes debt service payments, while acting with prudence and diligence and attention to prevailing economic conditions. The City believes that debt is an equitable means of financing capital projects and represents an important means of meeting fiscal responsibilities.

The Debt Policy primarily addresses debt instruments/securities issued by the City in public or private bond markets. This is consistent with Government Finance Officers Association (GFOA) guidelines, and rating agency guidelines. The debt policies pertain to debt that is typically incurred when capital is raised in the public or private markets, including borrowings from sophis ticated qualified institutional buyers, to meet the City’s funding needs. Such debt constitutes obligations whereby a third - party has provided funds, which is evidenced by the formal execution of a bond or certificate (or a similar instrument) and is held by the third-party until it is repaid.

The Debt Policy does not cover other obligations such as contracts payable, notes payable, arbitrage liability, or net pension liability, pension unfunded accrued actuarial liability and Other Post -Employment Benefits (OPEB) unfunded accrued actuarial liability. The City’s Annual Comprehensive Financial Report (ACFR) provides a complete list of outstanding long -term obligations. The sections in the ACFR listing the long-term obligations are: Governmental Activi ties Long-Term Debt Obligations; Business Type Activities Long -Term Debt Obligations; Special Assessment Debt without City Commitment; and Conduit Debt. Consistent with Governmental Accounting Standards Board (GASB)standards, the net pension liability and OPEB- related obligations are reflected in the Notes section of the ACFR.

The Debt Policy outlines the City’s procedures and goals for the use of debt to finance City needs. This Debt Policy is enacted in an effort to standardize and plan the issuance and management of debt by the City. While the Debt Policy serves as a guideline for general use, from time to time, however, compelling or extraordinary circumstances may arise that require the City Council, at the recommendation of the Finance Department, to deviate from this policy.

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B. Policy Purpose
The purpose of this Debt Policy is to set forth the principles and objectives that should guide the City’s decisions to issue debt and establishes guidelines for responsibly managing debt. The core objectives of this policy include the following:

1. Establish guidelines for the use of various categories of debt

2. Create procedures and policies that minimize the City’s debt service and issuance costs.

3. Maintain access to cost-effective borrowing.

4. Ensure full and timely repayment of debt.

5. Achieve and maintain the highest practical credit ratings of the various bond and credit types as well as the City’s overall credit rating.

6. Ensure financial controls are in place with respect to proceeds of debt issuances.

7. Ensure compliance with covenants contained in financing documents and compliance with applicable state and federal laws and regulations.

8. Promote the City’s best interests and protect the City’s financial stability when deciding whether to approve debt.

9. Provide full and complete financial disclosure and reporting.

In meeting these objectives, the City also fulfills the requirements of California Government Code Section 8855 with respect to local debt policies.

An annual review of the Debt Policy will be performed and any changes to the policy will be brought forward for City Council consideration and approval. Further, in the event there are any material deviations or exceptions from the Debt Policy when a certain bond issue is structured, those exceptions will be discussed in the staff reports when the bond issue is docketed for City Council’s consideration.

C. California Debt and Investment Advisory Commission (CDIAC) Reporting/Debt Policy Requirements
Effective January 1, 2017, Government Code Section 8855 was amended to require reporting to CDIAC both before and after the issuance of debt by or on behalf of local governments, including the City. Section 8855 also requires local governments to have a debt po licy that includes the following (locations in this policy are identified parenthetically):
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1. The purposes for which the debt proceeds may be used (Section: E)

2. The types of debt that may be issued (Section: E).

3. The relationship of the debt to, and integratio n with, the issuer’s capital improvement program or budget, if applicable (Section: F.2).

4. Policy goals related to the issuer’s planning goals and objectives (Section: F.1)

5. The internal control policies that the issuer has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use (Section: G).

D. Scope of Application
This Debt Policy applies to debt issued by the City of Richmond, the Richmond Housing Authority, the Successor Agency to the Richmond Community Redevelopment Agency, and the Richmond Joint Powers Financing Authority; to debt the City issues on behalf of assessment districts and community facilities districts; and to debt the City issues on behalf of third parties where public benefit can be achieved i.e., conduit financing.

E. Types and Purposes of Debt

1. Long-Term Debt
Long-term debt may be issued only to serve a public purpose and may be used to finan ce the costs of acquiring or improving land, infrastructure, facilities, or equipment if it is appropriate to spread these costs over more than one budget year. Long-term debt may also be used to fund capitalized interest, costs of issuance, required reser ves, and any other financing - related costs that may be legally capitalized. Long -term debt may not be used to fund City operating costs. The final maturity of long-term debt should not exceed 40 years. The following are the types of long-term debt that may be undertaken by the City:
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a) Special-Assessment Bonds. The Improvement Act of 1911 and the Improvement Bond Act of 1915 authorize the City to form assessment districts for imposing special -assessment liens on properties within the districts. Assessments on each property are calculated according to the “special benefit” the property receives from the local public improvements. Local public improvements examples include local streets, street lights, landscaping, sidewalks and sanitary sewers. The assessments are used to secure payment of bonds that amortize the local public improvement costs over a period of years. A majority of the property owners within the district must approve both the formation of the district and the issuance of the bonds. Approval occurs through submission of assessment ballots weighted according to the amount of each property’s proposed assessment.
b) Special-Tax Revenue Bonds. Under the Mello -Roos Community Facilities District Act of 1982, codified at Governmental Code sections 53311 to 53368.3 (the “Mello -Roos Act”), the City may use special -tax bonds to finance the construction or acquisition of various public improvements. The Mello -Roos Act provides an efficient means of financing certain public capital facilities and services and promo tes economic development in areas that lack sufficient infrastructure, such as infill or brownfield areas. Bonds may be issued to fund capital facilities so long as the estimated useful life of the facilities is at least five years.

These bonds must be app roved by at least two -thirds of the qualified electors within the Community Facilities District unless there are fewer than 12 qualified electors, in which case the vote is by the landowners. c) Marks-Roos Bonds. Under the Marks -Roos Local Bond Pooling Act o f 1985, codified at Government Code sections 6500 to 6599.3 (the “Marks-Roos Act”), governmental entities, in consort with or as part of a jointpowers financing authority, may use a “pooled” financing technique for a broad array of public capital improvements.
d) General Obligation Bonds. These bonds may be issued by governmental entities that have the legal authority to levy ad valorem property taxes and other charges at whatever rate and amount is necessary to pay the debt. Under article XVI, section 18 of the California Constitution, these bonds may only be issued for the acquisition or improvement of real property such as libraries, parks and public safety facilities. Twothirds voter approval is required.
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e) Tax-Allocation Bonds. Until January 2012, the City was authorized to issue tax-allocation bonds (“TABs”) that were secured by a pledge of tax-increment revenues from redevelopment project areas. Proceeds from TABs were used to revitalize blighted and economically depressed areas and promote economic growt h. The City is no longer authorized to issue new -money TABs unless the City or its related financing authorities are aware of enforceable obligations that need to be met.

Only refunding TABs are now authorized, and only the Successor Agency to the Richmond Community Redevelopment Agency may issue them.
f) Certificates of Participation and Lease -Revenue Bonds. These debt instruments are secured by a lease-leaseback arrangement between the City and another public entity. The City uses its general operating revenues (which are not expressly pledged) to pay amounts owed under the lease. The payments are in turn used to pay debt service on lease - revenue bonds issued by a joint -powers financing authority or on certificates of participation executed and delivered by a trustee. Under this type of financing, a site, on which a capital project is being built, is leased to a joint -powers financing authority and subsequently the site and the capital project, are leased back to the City. In an alternative arrangement, a dif ferent asset is leased to the joint -powers financing authority and leased back, with the proceeds of the bonds being used for some other capital improvements (this is known as an "asset transfer" financing). Lease payments from the City are subsequently collected by the joint -powers financing authority and used to fund the debt service payments. Internally, costs of particular projects can be allocated to the budgets of one or more departments, but the City's general fund is liable to pay lease payments. Vo ter approval is not required because these debt instruments are not subject to the debt limit in article XVI, section 18 of the California Constitution. g) Revenue Bonds. These bonds are payable from revenue generated by a City enterprise, such as the Port, KCRT Cable Television, and Water Resource Recovery. Because debt service on revenue bonds is paid solely from enterprise revenues and is are not secured by any pledge of tax or general fund revenues, these bonds are not subject to the debt limit in article XVI, section 18 of the California Constitution. Revenue bonds are used for the improvements to the enterprise.
h) Pension Obligation Bonds. Pension Obligation Bonds are issued to finance all or part of the unfunded pension liabilities of a pension plan.

Typically, these bonds are issued at a lower rate of return than was being paid to the Pension System Administrator, and in this way, provide an economic benefit to the City.
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i) State and Federal Loans or Other Similar Debt Instruments. State and federal loan pr oceeds are an important source of funds for capital projects in addition to bond proceeds. State Revolving Funds make low- cost loans available to local agencies to fund certain public infrastructure projects. Through these programs, various state agencies, such as the California State Water Resources Control Board, California Infrastructure and Economic Development Bank, and California Department of Resources Recycling and Recovery, as well as federal agencies such as the Department of Transportation and En vironmental Protection Agency, offer local agencies loans to fund qualifying public infrastructure projects. Often the cost of borrowing through the loan programs is lower than the cost of issuing. Benefiting departments within the City will evaluate such programs in conjunction with the Finance Department on a case-by-case basis. City Council approval is required to apply for such loans.
j) Conduit Debt. The City may agree to provide conduit financing for specific public purposes, such as financings for affordable rental housing and qualified 501c3 organizations. In a conduit financing, the debt is solely repaid with non -City revenues. No City funds will be pledged to the repayment of conduit debt and no appropriation of City funds will be made in the event of a default. All conduit financings must have at least one investment grade rating from a nationally recognized rating agency, or have a private placement investor committed to purchase the bonds.

2. Short-Term Debt
Short-term debt may be issued for any purpose for which long-term debt may be issued, including the payment of capitalized interest and other financing- related costs; it may also be used to address legitimate short-term cashflow requirements during a given fiscal year, so that the City may continue to fund the operating costs of providing necessary public services; and it may be used to bridge the gap in financing before long -term debt is issued to meet the ongoing capital needs of a project or series of projects. The City will not engage in short -term borrowing solely for the purpose of generating investment returns (arbitrage). Short term debt usually may not exceed five years.
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a) Tax and Revenue Anticipation Notes (“TRANs”). These are short -term notes used to cover cash shortfalls resulting from a mis match between the timing of revenues and expenditures. The City may issue TRANs when needed to meet general fund cash -flow needs in a fiscal year.

TRAN proceeds may be used and expended for any purpose, including operating expenses, capital expenditure, re payment of indebtedness and investment and reinvestment. TRAN proceeds may be invested at an unrestricted yield if TRANs are issued in an amount not to exceed the maximum anticipated cumulative cash flow deficit over 13 months, plus the lesser of either (i ) a reasonable working capital reserve or (ii) 5% of the prior fiscal year's expenditures paid out of current revenues.

TRANs are secured by the property taxes and other revenues received later in the fiscal year. Voter approval is not required. b) Line of Credit. This is a contract between the issuer and a bank that provides a source of borrowed monies to the issuer in the event that monies available to pay debt service or to purchase a demand bond are insufficient for that purpose. The City may ent er into agreements with commercial banks or other financial entities for purposes of acquiring a Line of Credit. Voter approval is not required.
c) Lease-Purchase Financings. These financings may be used for the short-term financing of essential equipment or capital assets. The term of a lease purchase agreement is typically less than 10 years but may be as long as 15 years. Under this type of financing, the City and a lessor enter into a master lease agreement for the lease -purchase of equipment or capital assets up to a certain aggregate amount. The City and the lessor then enter into separate “schedules of property” or “lease schedules” for each lease purchase of equipment or capital asset, and the City Council annually budgets and appropriates an amount sufficient to pay rent for the equipment or capital asset under lease during that year; the failure to appropriate will result in termination of the lease - purchase agreement. Voter approval is not required.

3. Refunding Financing
The Finance Department will periodically review outstanding City Debt to identify refunding opportunities and evaluate the costs and benefits of restructuring or retiring outstanding obligations. Refunding will be considered (within federal tax-law constraints) when it will provide a net economic benefit or when it is needed to achieve City objectives relating to changes in covenants, call provisions, operational flexibility, tax status, the issuer, debt - service profile, etc. The City may purchase City Debt in the open market for the purpose of retiring the debt when doing so is cost effective. 234

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a) There are two types of refunding transactions: a current refunding occurs when outstanding bonds are paid off within 90 days after the proceeds of refunding bonds are deposited into an escrow account with the escrow agent (typically the same entity as the trustee); and an advance refunding occurs when outstanding bonds are paid off more than 90 days after proceeds of refunding bonds are deposited into an escrow account with the escrow agent. Federal tax law does not currently permit tax exempt advance refunding.

b) In general, when the City undertakes a current refunding or an advance refunding for net economic benefit, the refunding should produce net present value debt service savings of at least 3%. This 3% threshold is a goal rather than a requirement, as the City may have reason to refund an issue that generates net -presentvalue savings of less than 3% (i.e., the refunding will eliminate unduly restrictive bond covenants or achieve a favorable restructuring of debt).

4. Other Debt
There may be special circumstances when other forms of debt are appropriate; these will be evaluated on a caseby-case basis by the Finance Department. Such other forms may include, but are not l imited to non - enterprise revenue bonds, bond anticipation notes, grant anticipation notes and judgment or settlement obligation bonds

F. Integration with Planning Goals and Objectives

1. Policy Goals Related to Planning Goals and Objectives. The City is committed to long -term capital and financial planning, maintaining appropriate reserve levels and employing prudent practices in governance, management and budget administration. This Debt Policy, in conjunction with the City’s Swap Policy, Reserve Policy, Capita l Improvement Plan, Five -Year Revenue and Expenditure Forecast, Investment Policy and the Cash Reserve Policy, serves as an important tool that supports the use of the City’s resources to meet its financial commitments and to maintain sound financial management practices.

The City intends to issue debt for the public purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s annual operating and capital budgets. This Debt Policy will help ensure that debt is issued and managed in a manner that protects the public interest.

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2. Relationship of Debt to Capital Improvement Plan and Budget. The City’s Capital Improvement Plan sets priorities for projects and funding while the Debt Policy provides policy direction and limitation s for proposed financings undertaken to implement the Capital Improvement Plan. Debt issuances will be integrated with the goals of the capital improvement plan and capital budget by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes, and that the long -term repayment obligation is sustainable from a budgetary perspective. The City will seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital impro vements or equipment from the general fund.

Debt issuances for capital projects will be incorporated into the Capital Improvement Plan at the time the plan is recommended for City Council approval.

The City shall strive to fund the upkeep and maintenance of its infrastructure and facilities, due to normal wear and tear, through the expenditure of available operating revenues. The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear, unless a specific revenue source has been identified for this purpose.

G. Internal Control Policies
When issuing debt, in addition to complying with the terms of this Debt Policy, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.

Without limiting the foregoing, the City will periodically review the requirements of and will remain in compliance with the following:

1. Federal securit ies law, including any continuing disclosure undertakings entered into by the City in accordance with Securities and Exchange Commission Rule 15c2-12;

2. Any federal tax compliance requirements, including, without limitation, arbitrage and rebate compliance; The City’s investment policy as it relates to the use and investment of bond proceeds; and

3. Government Code section 8855(k) and the annual reporting requirements therein. Proceeds of debt will be held either: (a) by a third-party trustee or fiscal agent, which will disburse such proceeds to or upon order of the City with the submission of one or more written requisitions by the Finance Department; or (b) by the City, to be held and accounted for in a separate fund or account.

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for the intended use. Regular budget and schedule progress updates will be required by the Finance Department to track the status of debt-funded projects.

H. Debt Approval Procedures

1. Reviewed by City Council. All proposed long -term financing transactions for capital improvements shall be reviewed by the City Council. For matters related to the City Council approval process, "long -term financing" means financing which constitutes an obligation beyond one fiscal year.

2. Proposed transactions submitted for City Council approval should be reviewed prior to submission by the Finance Director, City Manager and City Attorney.

3. Upon approval b y the Finance Director, City Manager and City Attorney, the proposed transaction shall then be presented to the full City Council.

4. Approval by the City Council. All long-term financing transactions over $10,000 should be agendized as *action* items and shall be approved and adopted by the City Council. The City Council shall comply with all public hearing requirements applicable to the specific type of bond being approved.

I. Debt Limitations
There is no statutory restriction on the amount of Lease Revenue Bo nds or Certifications of Participation that can be outstanding at any given time. However, it is the policy of the City of Richmond that net debt service payments funded from General Fund sources shall be no greater than 10% of current General Fund revenues. Payments on bonds that are tied to a specified revenue stream other than General Fund sources (e.g. revenue bonds, tax allocation bonds and assessment bonds) are not subject to this 10% limit. Each proposed financing will be individually assessed by the Finance Department and subject to the approval policies contained herein.

The City also issues debt funded by revenues of Business-type activities, also known as Enterprise Funds. Any debt secured by revenues of an Enterprise Fund shall maintain a covera ge ratio (defined as the ratio of revenues subject to the bondholders’ pledge over aggregate debt service on bonds secured by the pledged revenues of the Enterprise Fund) that equals or exceeds the minimum coverage required by the rate covenant in the financing documents.

J. Methods of Sale
The Finance Department shall review each transaction on a case -by-case basis to determine the most appropriate method of sale.
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1. Competitive Sale. In a competitive sale, bids for the purchase of the bonds are opened at a specified place and time and are awarded to the underwriter (or syndicate) whose conforming bid represents the lowest true interest cost (TIC) to the City. The City may take bids in person, by facsimile, or by electronic means.
a) Bond sales shall be advertised as broadly as possible, including advertising in an industry newspaper. The financial advisors for each transaction shall undertake to provide information on the bonds to prospective bidders and investors as relevant.
b) Terms of the bonds shall be amendable as late as possible and ideally until at least 1:00 p.m. Pacific Time the day prior to the day bids are to be received.
c) Bond sales shall be cancelable at any time prior to the time bids are to be received.
d) Upon award to the bidder whose conforming bid represents the lowest true interest cost (TIC), the City may restructure the bonds in accordance with the Official Notice of Sale.
(1) The City shall reserve the unfettered right to reject all bids or waive bid irregularities.
(2) The Finance Department shall award an y bonds sold via competitive sale.

2. Negotiated Sale. In a negotiated sale, the City chooses the initial buyer of the bonds in advance of the sale date. The initial buyer is usually an investment banking firm, or a syndicate of investment banking firms interested in reoffering the bonds to investors through an underwriting process. This type of sale allows the City to discuss different financing techniques with the underwriter in advance of the sale date, and is particularly appropriate for complex bond structures, difficult credit situations (such as non -rated assessment or Mello - Roos Bonds, and refundings).

3. Private Placement. Also referred to as a direct placement, private placement is a variation of a negotiated sale. Instead of retaining the services of an investment banking firm to underwrite the bonds, the City will sell the bonds directly to a limited number of investors. The City may use a placement agent to assist it in identifying likely investors.

K. Debt Structuring Practices

1. Standard Terms. The following terms shall be applied to the City's transactions as appropriate. Individual terms may change as dictated by the marketplace or the unique qualities of the transaction.

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2. All Bonds
a) Term - 30 years is standard, but up to 35 years may be acceptable, depending on cash flow assumptions, construction timeline and remaining useful life of the asset being financed.
b) Maximum Yield – as set by State law.
c) Maximum Premium - case by case, as recommended by the City's Municipal Advisor.
d) Maximum Discount - case by case, as recommended by the City's Municipal Advisor.
e) Payment Dates - fixed after considering cash flow needs, the Finance Department will determine the occurrence of all new debt service payments.
f) Coupons - fixed rate or variable rate.
g) Call Provisions - shortest possible optional call consistent with optimal pricing.
h) Structure of Debt - prefer level debt service but shall be determined on a case-by-case basis, at the discretion of the Finance Department i) Debt Service Reserve – case by case, as reco mmended by the City’s Municipal Advisor and/or the underwriter.
j) Capitalized Interest – may be sized through substantial completion plus a minimum of six months unless other assets are available to be pledged or otherwise limited under Federal Tax Law. Liq uidated damages of construction contract must include amount of daily debt service. k) Net Funding - the project and capitalized interest funds may be net funded if investments are secured upon issuance of bonds. l) Reimbursement Resolution - must be adopted by the City Council if the project hard costs are advanced by the General Fund prior to the bond sale.
m) Good Faith Deposit - determined on a case -by-case basis by the Finance Department.

3. Variable Rate Bonds - The City may elect to issue any bonds as variable rate bonds, which are broadly defined to mean daily, weekly, monthly, semi-annual or auction rate bonds.
a) Purpose - reduction of net borrowing cost; match of assets and liabilities. b) Maximum Portfolio Allocation - no more than 20% of the City's outstanding debt portfolio shall be in unhedged short -term paper consistent with policies for underlying debt types.
c) Term - consistent with policies for underlying debt types. d) Maximum Yield – as set by State Law.
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e) Monitoring - the Finance Department shall monitor a ll variable rate bonds on a monthly basis and shall determine, from time to time, whether to change modes and/or replace a broker/dealer or remarketing agent.
f) Budgeting Debt Service - the Finance Department will recommend that annual debt service on any variable rate bonds be budgeted at 1.5 times SIFMA Municipal Swap Index (or another relevant index or successor index to SIFMA) as of the last Wednesday in February in the year in which the budget is being prepared. The Finance Department will also include in the budget any ongoing fees associated with floating rate bonds.
g) Liquidity - a liquidity facility shall be obtained, either externally or internally, for all short-term indebtedness containing a put feature. h) Mode - all bonds issued as variable rate bonds shall be issued as "multi- modal" bonds.
i) Good Faith Deposit - determined on a case -by-case basis by the Finance Department.

L. Derivatives (Swap) Policy
Derivative products, or swaps, are financial instruments whose value depends on (is derived from) the value of one or more separate assets or indices of asset values. As used in public finance, derivatives may take the form of interest rate swaps, futures and options contract, options on swaps and other hedging mechanisms such as rate locks. GFOA recommends state and local governments to exercise caution in the use of derivative instruments. The City no longer has swaps in its debt portfolio. To reduce risk exposure associated with swaps, the City adopted a guiding fiscal policy on April 20, 2021, which states that the City will no longer be permitted to use interest rate swaps when issuing debt.

M. Permitted Investments
All investments of bond proceeds shall adhere to the City's Investment Policy, approved annually by the City Council. With the exception of guaranteed investment contracts, investments shall not allow security types or credit standards less than those of the City's Investment Policy.
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1. City of Richmond Investment Policy:

2. Investment Agreements
a) Purpose - a) maximize interest earnings, thereby reducing net borrowing cost, and b) match of assets and liabilities.
b) Counterparty - minimum rating of AA- from S&P or Aa3 from Moody's. c) Mandatory Termination - limited to credit-related events and nonpayment.
d) Cure Provisions - timelines on City's obligations to cure must provide for appropriate legislative action.
e) City's Priority of Payment - termination payments - subordinate to related debt payments.
f) Procurement/Award - award based on best bid as defined in bid f orm after limited negotiation of terms.
g) Term - not in excess of the term of the bonds.

N. Professional Assistance

1. Municipal Advisors. The City shall utilize the services of independent municipal advisor(s) on debt financing when deemed prudent by the Finance Director.

All such municipal advisors should be registered with the Securities and Exchange Commission and hold the Municipal Securities Rulemaking Board Series 50 designation. The City may utilize an R FP-selected pool of such municipal advisors to mitigate time constraints and reduce overhead costs of the City in procuring such services. Services shall be documented by contract and compensation shall be capped.

2. Underwriters. In the case of a competitiv e sale, the City will award the bonds to the underwriting firm whose bid results in the lowest True Interest Cost. In the case of a negotiated sale, the Finance Director will determine the best method of selection, taking into consideration all factors inv olved in each particular sale, and shall recommend the best qualified underwriter to the City Council.

3. Bond Counsel. The Finance Department, in consultation with the City Attorney's Office, shall recommend the bond counsel for each transaction to the City Council.

4. Broker-Dealers and Remarketing Agents. For all variable rate bonds, the Finance Director shall recommend broker -dealers or remarketing agents for each transaction to the City Council. The City shall monitor performance on a monthly basis. The City may replace a remarketing agent or broker-dealer with notice at any time.

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5. Disclosure Counsel. The Finance Department, in consultation with the City Attorney’s Office, shall recommend the disclosure counsel for each transaction to the City Council.

6. Trustees. Selected for each transaction by RFP, unless use of current trustee (particularly for parity obligations) is deemed practical by the Finance Director.

The Trustee (or applicable holding company) shall have a combined capital and surplus of at lea st $500,000,000 and be subject to supervision or examination by federal or state authority.

7. Rebate Consultant. Selected by RFP for all bonds for a set term with 1 -year extensions.

8. Financial Printer. Selected for each issue by RFP .

9. Auction Agents. Selecte d for each relevant issue by RFP issued by the Finance Department or its agent and subject to negotiation of terms.

10. Placement Agents. Selected for each relevant issue by RFP issued by the Finance Department or its agent and subject to negotiation of terms.

11. Liquidity Providers. Selected for each relevant issue by RFP issued by the Finance Department or its agent and subject to negotiation of terms.

12. Investment Agreement Counterparties. Selected by bid in compliance with Federal Tax Law Requirements in accordance with relevant bond documents and the City's Investment Policy.
a) In general, uncollateralized Investment Agreements shall be executed with counterparties rated at least AAA with collateral required upon downgrade below AAA.
b) Repurchase Agreements or Forward Delivery Agreements shall be executed with counterparties rated at least AA (by at least one of the major rating agencies) with downgrade provisions requiring assignment or collateral should the rating fall below A- or A3 by Standard and Poor's or Moody's Investor Services respectively.

O. Ongoing Debt Administration

1. Continuing Disclosure. It is the goal of the Finance Department to be as transparent as possible and comply with its obligations under continuing disclosure undertakings executed by the City in connection with its outstanding bonds.

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2. Annual Report. The City will covenant to provide its annual disclosure report no later than 270 days following the end of the fiscal year. However, the City will use its best efforts to issue the Annual Report as soon as practical following the issuance of the City’s Annual Comprehensive Financial Report (ACFR).

The City shall use its best efforts to issue the Annual Report electronically on the Electronic Municipal Market Access (EMMA) system or any other successor thereto as designated by the United States Securities and Exchange Commission (SEC) or the Municipal Securities Rulemaking Board (MSRB), and to post the Annual Report on its web site. The Annual Report will also be on file with the City Clerk.

3. Material Event. The City will issue a notice of occurrence of a material event (as defined in Appendix C) in accordance with the provisions of SEC Rule 15c2-12. Prior to the issuance of any material event, the Finance Director will consult with the Mayor, City M anager, City Attorney and policymakers or outside professionals as appropriate, to discuss the materiality of any event and the process for accurate, timely and appropriate disclosure to the marketplace.

4. Post-Issuance Compliance on Build America Bonds. Th e City will adhere to the instructions contained in Appendix B regarding required post -issuance activities when Build America Bonds have been issued. Upon recommendation of the Finance Department, the City may retain a firm to assist it in maintaining compliance with all continuing disclosure requirements.

5. Arbitrage Rebate Compliance. The City shall calculate arbitrage annually in each year that the related construction fund (or equivalent) has had an outstanding balance. Thereafter, the City shall calculat e arbitrage on the fifth anniversary of the bond issuance in accordance with IRS recommended practices.

6. Insurance Certifications. The City (through its Risk Manager) shall provide annual insurance certification to the Trustee and Bond Insurer, if require d under the legal documents for each issue.

7. Ratings. The policy of the Finance Department is to secure underlying ratings on all newly issued obligations from at least one national rating agency. a) Citywide Ratings Notification. Any changes in ratings will be promptly noticed to the City Council.
b) Annual Meeting. The Finance Department shall meet with each rating agency that rates City debt issues at least annually unless such meeting is declined by the respective rating agency.
c) Annual Reporting. The Finan ce Department shall ensure prompt delivery to each of the rating agencies of the following public documents:
(1) Annual Comprehensive Financial Reports (ACFR’s)
(2) Adopted budgets
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(3) Other Reporting Certificates of Substantial Completion. On projects financed with long term obligations Certificates of Substantial Completion shall be delivered to the rating agencies and Bond Insurer, as relevant.

8. Voluntary Disclosures. The Finance Direc tor may determine to file voluntary disclosure or information that is not required under any continuing disclosure undertaking. The City shall have no obligation to update any voluntary disclosure or information.

9. Record Retention. At a minimum, the followi ng documentation shall be retained for the term of each issuance of bonds, including any refunding bonds, plus five years, or longer if contemplated by a tax certificate for a specific issuance of bonds.
a) Continuing disclosure undertaking:
b) Annual Reports, including any EMMA transmittal letters and filing receipts;
c) Material Event Notices, including any EMMA transmittal letters and filing receipts;
d) CDIAC transmittal letters and filing receipts, including those related to filing of Annual Debt Transaction Reports (ADTRs), pursuant to Senate Bill 1029 (Chapter 207, Statutes of 2016);
e) Rating Agency reports; and
f) Such other information as the Finance Director determines necessary or useful in accordance with the continuing disclosure undertakings.

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POLICY: Grants Management
ESTABLISHED: September 20, 2022
RESOLUTION NO.: N0. 128-22; DATE: September 20, 2022

XV.XIV. Grant Management Policy
A. Overview
The City of Richmond continues its practice of taking advantage of granting opportunities to support operations, programs, and capital improvement projects.

Major sources of grant awards are federal, state, local agencies, and private organizations. A grant’s scope is determined by the policy goals of the grantor, and the grantee is obligated to provide deliverables based on the terms and conditions of the grant. Grants differ based on the funding source, scope of work, requirements, and timelines. This policy provides a general guidance to managing grants which may not be pertinent to manage all grants awarded to the City.

B. Goal
The purpose of the Grants Management Policy is to develop, implement, and maintain meaningful grant oversight and coordination for the City Council thereby increasing grant-related revenue, limiting the City Council’s exposure to grant-related legal liability, and improving the efficiency and impact of programs and services funded through grants.

C. Pre-Application Evaluation
City staf f will continuously identify grants in all functional areas in general but specifically in funding capital projects. City staff must review grant requirements to validate the feasibility of undertaking the responsibility of grant deliverables and the alignment of the scope with the City’s and the community’s mission before applying, accepting, and committing to any grant opportunity.

1. Short Term Revenues vs. Long Term Costs
Special attention must be paid to evaluate if a grant opportunity is viable to the City and that one time or short-term grant revenues are not adding to the fiscal burden of unprecedented permanent or long -term expenditures. For example, a grant funded project may require the City to hire additional staff, in this situation it is necessary to review the grant to assure that the City is clear about the requirement of additional staff, temporary or permanent. If permanent staff is required, the long-term labor cost must be evaluated and analyzed before applying for the grant. The viability co nsideration is not limited to labor cost; it must be evaluated for all types of costs such as ongoing operations and maintenance.
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2. Required Resources
A grant opportunity must be evaluated based on required resources versus available resources in the City be fore moving forward with the application process. This applies to resources such as: staff support, local funding match, or in-kind match.
a) If a funding match is required by a grantor, the funding source must be approved by the City Manager in writing before submitting the grant application.

3. Indirect Costs
During the grant application process the City staff shall include the cost of administering the grant program when possible and wherever it is allowable by the grantor in the grant terms and conditions. For example, some grantors may have a fixed percentage for indirect costs that can be reimbursed.

4. Cost Benefits Analysis
The overall cost benefit analysis is required to confirm that the grant is in alignment with the City’s general mission and strategic goa ls and is in the best interest of the residents of the City.

5. Public Private Partnership
In a situation where the City is working in partnership with another organization (local or public) the solicitation process must be transparent.

City Council approval is required prior to submitting the grant application. If the pre -approval step is missed in such partnership, there must be an explanation provided to the City Council upon the grant acceptance (see section 4.b.).

D. Grant Cycle

1. Grant Application
Department staff is required to follow the grantors’ determined application processes. Department staff seeking and administering the grant are responsible for compiling the grant application, and the Finance department shall provide certain information that is requ ired to be submitted with the proposal.
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a) If a local funding match is required for a grant, refer to the section 3.b. of this document.
b) The Finance department must be notified upon submission of a grant application within ten (10) business days.

2. Grant Award
Grant award is the notification that is provided to the applicant upon the acceptance of the grant application. The notification must be in writing and/or it can also be in a grant agreement format.

3. Council Approval
Each grant must be formally accepted by the City Council before moving to the execution phase. Department staff are responsible for preparing the City Council agenda item. The recommended action must include the words “accept and appropriate” in the agenda report to ensure budget appropriation for execution. Some grants may require City Council authorization before a grant application is submitted and, in that case, recommended action may include the language about the acceptance and appropriation of funds upon grant award.

4. Grant Set-Up
Department staff is responsible for submitting grant documents to the Finance department within ten (10) business days to be set up in the City’s financial system, which may require creating special account strings to fully track the related activity. Required documents are:
a) Grant Award Letter/Agreement
b) Approved Council Minutes, and/or Resolutions
c) Completed Grant Information Form (see attached form) d) Appropriate Grant Funds

5. Grant Execution
It is the Department staff’s responsibility to deliver agreed upon deliverables, generate status reports, exercise careful examination of the costs being incurred, and file for reimbursements from grantor in a timely fashion. The Finance department assists as needed in terms of setting up account strings, budgets, and preparing monthly reports etc. Department staff shall maintain a comprehensive project file for the record and send all documents to [email protected] for record keeping in the financial system.

6. Grant Compliance
It is the Department staff’s responsibility to meet all grant requirements and take appropriate steps to ensure grant compliance by adhering to all applicable Federal, State, and local regulations. This includes collecting all necessary documentation from the pre -award phase through closeout, ensuring appropriate procurement steps are taken for any subawards, Formatted: Not Highlight
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compliance with sam.gov debarment and suspension checks, and all other award requirements.

6.7. Reimbursements/Reporting
Department staff shall submit reimbursements and other periodic reports in a timely manner depending upon the grantor specified timeline. The majority of grants are on a reimbursement basis. Therefore, the City covers the expenditures from the cash reserve before the grant funds are re imbursed, which limits the City’s ability to fund other operations and city services. It is crucial that the reimbursement requests are submitted to the grantor in a timely manner to alleviate undue burden from the City’s cash reserves.

Department staff sh all forward all the filed reimbursement requests to [email protected] at the time of submission to the grantor.

7.8. Close-Out
Department staff are responsible for following the specified close out procedure provided by the grantor. Grant funded project files and records are required to be maintained for five years or the retention limit the grantor has provided which may exceed five years. Final close out reports shall be sent to the Finance department within ten (10) business days.

E. Record Keeping
Department staff must maintain all documents (purchasing, bidding, and communications with the grantor) even after the grant completion. Department staff shall also forward all documents to the Finance department ([email protected]) for saving and retention in the financial system (currently Project Master in Tyler MUNIS) to ensure city -wide availability as needed. This is primarily for audit purposes.

F. Audits
Appropriate audit facilitator is determined depending on the nature of the audit including the Annual Single Audit. The Finance department facilitates all financial audits and may reach out to Department staff for assistance if warranted.

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G. Roles and Responsibilities

1. City Council
a) Provides policy guidance to City staff to seek grants in certain categories and authorizes staff to apply for grants, and upon grant award, accepts and appropriates funds.

2. City Manager’s Office
a) Executes grant agreements and directs/assigns staff to seek and execute grants.

3. Finance Department
a) Provides guidance to Department sta ff about tracking costs appropriately.
b) Sets up account strings in the financial system.
c) Assists in day-to-day financial operations.

d) Generates periodic reports stating sources and uses of the grant funds. e) Maintains project master in the financial system.
f) Maintains the City’s general information regarding tax ID and tax-exempt status letter.
g) Maintains the City’s accounts with federal grant portals such as www.grant.gov, www.sam.gov, etc.
h) Maintains the City’s CAGE code and Unique Identifier Number, formerly known as DUNS number.
i) Generates Schedule of Expenditures of Federal Awards (SEFA) annually after fiscal close.
j) Facilitates financial audits.
k) Provides training on grants management and financial systems to improve the grants program.

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4. Department Staff
a) Applies for the grant.
b) Takes awarded grant to the City Council for approval (Council action must read “Accept and appropriate funds…”).
c) Prepares budget amendments based on the City Council approval. d) Executes the grant.
e) Delivers the grant deliverables under the terms and conditions. f) Monitors costs and makes sure the costs are allowable and within the grant award.
g) Communicates and reports to the grantor/s regarding status, periodic, and close out reports, and any other c ommunication regarding modifications to the scope or changes in timeline.
h) Follows the procurement and other City policies in the process of issuing contracts. This includes ensuring all contract provisions outlined on pages 24 -25 of City of Richmond’s Pur chasing Policy (AP 522) are followed and passed down as applicable to all subrecipients and contractors. Note that suspension and debarment check is required and the department must “Verify that a vendor is not debarred, suspended or otherwise excluded fro m or ineligible for participation in Federal assistance programs or activities. Confirm and document that vendors are not on the federal government’s Excluded Party list found at www.sam.gov.” This verification must occur prior to the execution of subawards. For more information, please refer to the Finance Department’s Sam.gov Debarment Check Guidelines document. i) Maintains complete project file during and after beyond project completion.
j) Assists finance/audit coordinator as needed during audit/s.

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check
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POLICY: Investment Policy
ESTABLISHED: October 17, 2023
RESOLUTION NO.: 145-24; DATE: December 3, 2024

XVI.XV. Investment Policy
A. Mission Statement
It is the policy of the City of Richmond (City) to invest public funds in a manner which prioritizes safety and liquidity over yield while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds.

B. Scope
This investment policy covers the City's pooled funds which include the General Fund, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal service, Trust & Agency, Redevelopment/Successor Agency and any other Funds investment activities under the direction of the City.

The investment of bond and note proceeds will be in accordance with policy contained in the relevant bond documents approved by the City Council at the time of the issuance of the debt. To the extent not inconsistent with such bond documents, bond or note proceeds and in accordance with Government Code, sections 53601(I) and 5922(d), proceeds may be invested in (i) Guaranteed Investment Contracts or other debt issuance proceeds with an investment provider rated in a category of "A" or better and with downgrade protection or (ii) Investment instruments described herein.

The investment policy for the Police and Fire Pension Fund and the General Pension Fund are contained in the City Charter
C. Objectives
The City's investment activities are designed to accurately monitor and forecast expenditures and revenues to ensure funds are always available when needed. The portfolio will be managed to take advantage of changing economic conditions that can aid in increasing the total return on the City's portfolio . The City will invest up to 100% of all idle funds.

The primary objectives of the investment activities, in priority order shall be:
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1. Safety. Safety of principle is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure preservation of capital in the portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.

2. Liquidity. An adequate percentage of the portfolio will remain sufficiently liquid in short-term securities to enable the City to meet its cash flow requirements.

Since all cost requirements cannot be anticipated, investment in securities with active secondary or resale markets is highly recommended. Emphasis should be on marketable securities with low sensitivity market risks.

3. Yield. The investment portfolio of the City should be designed with the objective of attaining a market rate of return, also known as the yield, on its investments. Yield should be considered only after safety and liquidity objectives have been met and measured against cash flow needs.

D. Delegation of Authority
Management responsibility for the investment program is hereby delegated to the Director of Finance, acting in their capacity as Treasurer, or the Accounting Manager as designee who shall be responsible for all transactions undertaken and shall monitor and review all investments for consistency with this investment policy.

The Director of Finance or their designee shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the Director of Finance.

E. Prudence
The standard of prudence to be used in the management of the City’s investment portfolio shall be the “prudent person” standard. The “prudent person” standard states that, “Investments shall be made with judgment and care under circumstances then prevailing, which persons of prudence, discretion, and intelligence ex ercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” The City holds to the “prudent investor standard” as set forth in Sectio n 53600.3 of the Government Code. in that all investments placed shall be made with a degree of judgment and care, The prudent investor standard states, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
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F. Ethics and Conflict of Interest

1. All participants in the investment process shall act as custodians of public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust.

2. In a diversified portfolio it must be recognized that occasional measured losses are inevitable and must be considered within the context of the overall portfolio investment return provided that adequate diversification has been implemented. Each issuer shall be limited in terms of their percentage of the portfolio, to minimize risk exposure.

3. In accordance with California Government Code Sections 89502 and 89503, officers and employees of the City shall refrain from any activity that could conflict with the proper execution of the investment program or that could impair their ability to make im partial investment decisions. All investment personnel shall comply with the reporting requirements of the Political Reform Act, to include the annual filing of their Statement of Economic Interest.

G. Authorized Broker/Dealers
The Director of Finance will maintain a list of broker/dealers authorized to provide investment services. The broker/dealers will be selected by credit worthiness that is authorized to provide investment services in the State of California. These may include "primary" dealers or "regional" dealers that qualify under Securities and Exchange Commission Rule 15c3-1 (uniform net capital rule).

H. Authorized Investments and Maximum Maturities
With the above objectives and criteria in mind, the City of Richmond may invest in the following instruments with a rating of “A” or higher (when applicable) that have maturities of five (5) years or less at the time of purchase, unless otherwise stated below:

1. Government Bonds and Notes- Maximum of 100% invested no longer than 5 years.
a) United States Treasury Notes, Bonds, Bills, or certificates of indebtedness or those for which the full faith and credit of the United States are pledged for the payment of principal and interest; and b) Treasury notes or bonds of the State of California; and c) Bonds, Notes, Warrants or other evidence of indebtedness of Any local agency within California with a minimum rating threshold of an “A”.

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2. Bonds and Notes of Federally Sponsored Agencies - Maximum of 100% invested no longer than 5 years, such as the Federal Farm Credit Bank, Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, or any other instruments issued by a federal agency, or a United States government sponsored enterprise.

3. Bankers’ Acceptance Bills of exchange or time drafts drawn on and accepted by a commercial bank insured by the FDIC, with a rating category of at least A-1 or the equivalent by a nationally recognized statistical rating organization (NRSRO). Purchases in this category may not exceed 180 days maturity or 40% of the City’s investment portfolio as provided by Government Code Section 53601(f)g.

4. Negotiable Certificates of Deposit issued by a Federal and State chartered bank or a Federal and State Savings and Loan Association or by any state licensed branch of a foreign bank. Purchases are not to exceed 30% of invested idle funds.

5. Repurchase Agreements Repurchase agreements are agreements between the local agency and seller for the local agency to purchase government securities to be resold back to the selle r at a specific date and for a specific amount and are authorized by Government Code Section 53601(j). Although the legal maximum maturity on these investments is 360 days, repurchase agreements are generally shortterm investments varying from one day to t wo weeks. Investments in repurchase agreements must be collateralized, and collateral required for repurchase agreements is limited to Treasury and Agency securities. In order to anticipate market changes and provide a level of security for all funds, the required collateralization level is 102% of the market value of principal and accrued interest.

6. Collateralize Bank Deposits As authorized in Government Code Section 53601(n), notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits.

7. Local Agency Investment Fund (LAIF) - maximum of $75 million The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer for the benefit of local agencies up to the maximum permitted by State law but not to exceed the aggregate limit set by the City of 100%.

8. CalTRUST a Joint Powers Authority created by public agencies to provide a convenient method for public agencies to pool their assets for investment purposes, not to exceed the aggregate limit set by the City of 100%.

CalTRUST is governed by a Board of Trustees made up of experienced local agency treasurers and investment officers.
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9. Medium Term Notes with a maximum of five years maturity issued by corporations organized and operating within the United States. Such securities must be rated in a rating c ategory of "A" or better by a nationally recognized rating service. Purchases may not exceed 30% of invested idle funds in any single institution.

10. Commercial Paper of "prime quality" of the highest ranking or of the highest letter and numerical rating as p rovided by Moody's Investor Service, Inc., or Standard & Poor's Corporation. Eligible paper is further limited to issuing corporations that are organized and operating within the United States and have total assets in excess of five hundred million dollars ($500,000,000) and having an "A" or higher rating for the issuer's debt, other than commercial paper, if any, as provided for by Moody's Investors Service, Inc., or Standard & Poor's. Eligible commercial paper may not exceed 270 days maturity nor represent more than 10 percent of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed 25% of the City’s surplus money that may be invested pursuant to this section

11. Money Market Funds are eligible for investment if the comp anies providing the mutual funds invest only in instruments authorized by Government Code, Sections 53601 and 53630. To be an eligible money market investment under this section:
o The money market shall have attained the highest ranking, or the highest lett er and numerical rating provided by not less than two nationally recognized statistical rating organizations and shall maintain these ratings for the duration of the investment.
o Retain an investment advisor registered with the Securities and Exchange Comm ission (SEC) with not less than five (5) years' experience investing in securities and obligations.
o The fund shall have a minimum of $500 million to total asset size of portfolio at time of investment and should not drop below this threshold.
o The purchase price of the share of beneficial interest shall not include any commission that these companies charge.
o Purchases shall not exceed 20 percent of the City's idle funds.

12. Public Bank Obligations As authorized in Government Code Section 53601(r), 53635(c), and 57603 local agencies may invest in commercial paper, debt securities or other obligations of a public bank. The maximum remaining maturity is limited to five years.

Summary of Maximum Percentage Limitations of Investments, by Investment Type The following summary of maximum percentage limits, by instrument, is established for the City's total pooled fund's portfolio:
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Investment Type: Percentage
U.S. Treasury Bills, Notes, and Bonds 0 to 100%
U.S. Government Agency Obligations 0 to 100%
Bankers’ Acceptance 0 to 40%
Negotiable Certificates of Deposit Local 0 to 30%
Repurchase Agreements 0 to 100%
Local Agency Investment Fund (LAIF) 0 to 100% (Max $75 million) CalTRUST(Joint Powers Authority) 0 to 100%
Medium Term Notes 0 to 30%
Commercial Paper 0 to 25%
Money Market Funds 0 to 20%
Collateralized Bank Deposits 0 to 100%
Public Bank Obligations 0 to 100%

I. Reporting and Review of the Investment Portfolio
The Director of Finance shall report monthly on the City's pooled and Bond funds to the City Manager and City Council and shall report quarterly on other investments, such as pension funds. The following elements will be part of the investment report:

1. Type of investment

2. Institution/Issuer

3. Date of maturity

4. Cost of security (par amount) and dollar amount in all securities

5. Description of the funds, investments and programs managed by contracts

6. Current market value of securities

7. Rate of return

8. Statement of compliance to meet pool expenditure requirements for the next six months

9. If, in any case, pool expenditures are not met, an explanation of why sufficient monies will not be available.

J. Investment Pools
Government sponsored investment pools (Pools) are permitted under California Government Code Section 53601 et seq. and an excellent s hort-term investment option for cash management facilities. These pools can provide safety, liquidity and yield in a single diversified investment. However, thoughtful investigation and due diligence are required both initially at the time of purchase and ongoing analysis to determine that the investment pool is being managed in a manner consistent with the objectives of the Policy.
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State of California's Local Agency Investment Fund (LAIF) is an example of a Pool.

The City may invest in the LAIF established by the State Treasurer for the benefit of local agencies up to the maximum permitted by State law under California Government Code Section 16429.1, Each agency is limited to an investment of $75 million per account currently, but subject to change.

K. Collateralization
Collateral for Certificates of Deposit (CD) and Negotiated Certificates of Deposit (NCD) must comply with Government Code, Chapter 4, Bank Deposit law Section 16500 et seq. and the Savings and Loan and Credit Union Deposit Law Government Code Section 16600 et seq. In addition, if the CD is not FDIC insured or goes over the FDIC $250,000 limit, collateral is required to equal 100 percent of the principal of either U.S. Treasury securities or Federal Agency securities.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted, within the parameters and constraints of the Policy.

L. Safekeeping and Custody
Securities purchased from broker/dealers shall be held in third party safekeeping by the trust department of the City's bank or other designated third party, in the City's name and control. The basic premise underlying the City's investment philosophy is and will continue to be to ensure that money is always safe and available when needed. All trades executed by a dealer will settle delivery vs. payment (DVP) through the City's safekeeping agent. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.

M. Diversification and Risk Tolerance
The City of Richmond recognizes diversification is an investment strategy that will mitigate risk in the investment portfolio. Portfolio diversification is employed as a way to control risk. The City's investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks regarding specific investment types. Within investment types, the City shall also maintain a mix of securities to avoid concentrations with individual financial institutions, geographic areas, industry types and maturities. No individual investment transaction shall be undertaken that jeopardizes the to tal capital position of the overall portfolio. The Treasurer shall periodically establish guidelines and strategies to control risks of default, market price changes, and illiquidity.

N. Internal Control
The Treasurer or designee shall maintain a system of in ternal controls designed to ensure compliance with the Investment Policy and to prevent losses due to fraud, employee error, and misrepresentations by third parties or unanticipated changes in financial markets.
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All financial institutions and broker/dealer s who desire to become qualified bidders for investment transactions must supply the Director of Finance with the following:
audited financial statements, proof of FINRA certification, and proof of state registration, completed broker/dealer questionnaire, and certification of having read the City's investment policy.

A bi-annual review of the financial condition and registrations of qualified bidders will be conducted by the Director of Finance. The bidding process shall be conducted every four years. The current audited financial statement is required to be on file for each financial institution and broker/dealer in which the City invests.

O. Performance Standards

1. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.

2. The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately e qual to the return on a market benchmark Index of similar securities, as determined by the Director of Finance.

P. Investment Policy Adoption
The investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the Council and any modification made thereto must be approved by the City Council.

Q. Interest Earnings
All moneys earned and collected from investments authorized in this policy shall be allocated quarterly to pooled funds based on the daily cash balance in each fund as a percentage of the entire pooled portfolio. Should any fund not have a daily cash balance at the end of a quarter, it will receive none of the moneys earned and collected from the pooled investments. Furthermore, sho uld any fund have a temporary negative daily cash balance at the end of a quarter, the negative amounts will be reallocated to provide earnings to the funds with a positive daily cash balance. 259

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R. Restrictions

1. The City will not invest any funds in inverse floa ters, range notes, or interest only STRIPS (Separate Trading of Registered Interest and Principal of Securities) that are derived from a pool of mortgages.

2. The City will not invest any funds in any security that could result in zero interest accrual if held to maturity. This limitation does not apply to investments in shares of beneficial interest (money market mutual funds) that are authorized elsewhere in the Investment Policy.

3. The City will not invest in companies involved in the manufacturing of tobacco and tobacco -related products such as cigarettes, cigars, pipe tobacco, chewing tobacco, etc.

4. The City will not invest in companies that develop and manufacturer commodities that facilitate violence, war, oppression, and apartheid.

5. The City will not invest in companies that develop and manufacture arms and weapons.

6. The City will not invest in companies that develop and manufacturer commodities involved in border and mass surveillance industries.

7. The City will not invest in companies involved in mass incar ceration and detention industries, nor those companies that use prison labor to manufacture products.

8. In accordance with the Slavery Era Insurance Ordinance 14 -05 N.S. Section

2.29.030 Social Disclosure on Gains from Slavery effective July 1, 2005, the City will not invest any funds in international financial instruments that benefited from slavery. The City Council prohibits, by social investment policy, such investments and reserves the absolute right to divest from such investments with the cost of dives tment being borne by the contracting institution.

9. In accordance with Resolution 38 -13 effective May 7, 2013 the City declared it a policy of the City of Richmond to not invest in Fossil Fuel companies and urges the Board and Management of the City’s Pensi on funds to divest from publicly-traded Fossil Fuel Companies.

10. In accordance with the Sanctuary City Ordinance 12 -18 N.S. Section 4 Prohibition on Investments effective June 5, 2018, the City shall not make any investments in stocks, bonds, securities, or other obligations issued by any provider of Data Broker or Extreme Vetting services to United States Immigration and Customs Enforcement (ICE).

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POLICY: Unclaimed Funds Policy
ESTABLISHED: New
RESOLUTION NO.: Not Applicable; DATE: Not Applicable

XVII.XVI. Unclaimed Funds
The City of Richmond will account for unclaimed funds in a manner which follows Government Code Sections 50050 through 50057. Funds that remain unclaimed for at least three (3) years will become the property of the City of Richmond after the procedures identified herein have been followed.

A. Purpose
The purpose of this policy is to establish guidelines for the proper disposition of and accounting for unclaimed funds. In accordance with the California Government Code Sections 50050 through 50057, money that is not the property of the City of Richmond (City) that remains unclaimed for a period of three years will become the property of the City after certain notice procedures are followed.

B. Definitions and Details

1. Definitions
a) Unclaimed Funds - Consists of funds which are not the property of the City but remain in the City Treasury for three (3) or more years without a claim being filed by the legal owner(s). Unclaimed funds do not include individual items of less than $15.00, any amounts in which the depositor’s name is unknown, or restitution to victims. b) Warrant – Instrument issued to pay for goods and/or services rendered, issue refunds, etc. (i.e. a check).
c) Stale Dated – A check that is older than six (6) months. d) Escheat – refers to state escheat laws that require agencies to transfer unclaimed property or funds to the state after three years and reasonable efforts to locate the property owner.

2. Guidelines
The City of Richmond has established the policy to hold unclaimed Payroll, Accounts Payable, General Liability, and Worker Compensation checks rather than escheating the unclaimed funds to the State of California.

This unclaimed funds policy applies to all outstanding Payroll, Accounts Payable, General Liability, and Workers Compensation checks abandoned three years after the issue date.
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3. Procedures: Items over $15.00
a) Quarterly during the bank reconciliation process, the outstanding warrant register will be reviewed for items six (6) months and older. For warrants six months and older, a letter (Exhibit A) and affidavit of unclaimed monies claim form (Exhibit B) will be mailed to the address on record for the issued warrant , and the warrant will be identified as stale dated..
b) Every June 30th and December 31st, (final evaluation dates) all remaining outstanding warrants will be evaluated. Any warrants issued more than 12 months prior to evaluation date will receive a second letter and affidavit form. If no response is received within 30 days the warrant will be identified as stale dated and unclaimed. Stale datedUnclaimed warrants shall be cancelled and voided in the system. A journal entry shall be prepared to record the total amount of stale dated unclaimed checks in a holding account called “Aged Unclaimed Warrants”. c) A list of stale date warrants containing the warrant number, issue date, amount, and payee shall be maintained by the Finance Department. If a cancelled warrant is presented, or the payee files a claim after cancellation, the warrant shall be reissued by debiting the “Aged Unclaimed Warrants” account, and the original warrant shall be removed from the stale dated list.
d) Also, on June 30th and December 31st, the stale dated list shall be evaluated to determine which w arrants are more than 3 years old from the date of issue. Warrants that are more than 3 years old will be handled as follows:
(1) A notice must be published once a week for two consecutive weeks in a newspaper of general circulation in the City of Richmond stating the payee, the amount, the fund in which the money is held, and that it is proposed that the money will become the property of the City of Richmond on a specific date (not less than 45 nor more than 60 days after the first publication) in accordanc e with Government Code Section 50051. See
Exhibit C for example.
(2) Upon or prior to publication, a party of interest may file a claim (Exhibit B) for the funds with the Finance Director. The claim must contain the claimant’s name, address, amount, tax
identification number, and grounds for claim prior to the date the funds become property of the City of Richmond. The Finance Director can request additional information to help substantiate the claim.

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(3) On the day identified in the public notice, the total dollar amount (on which no claims were filed) becomes the property of the City.

Uncashed checks will be cancelled and notification sent to the City’s bank. A resolution authorizing the transfer of these unclaimed funds from the “Aged Unclaimed Warrants fund” to the general fund will be prepared for approval by the City Council. Thereafter, a journal entry will be prepared to recognize the revenue.
e) At the expiration of the three year period, money representing restitution collected on behalf of victims shall be deposited into a Restitution Fund or used by the City of Richmond for the purpose of victim services in accordance with Government Code Section 50050. The City must document that it has made a reasonable effort to locate and notify the victim to whom the restitution is owed.

4. Procedures: Items under $15.00 or items where the depositor is unknown a) Quarterly during the bank reconciliation process, the outstanding warrant register will be reviewed for items six (6) months and older. For warrants six months and older, a letter (Exhibit A) and affidavit of unclaimed monies claim form (Exhibit B) will be mailed to the address on record for the issued warrant , and the warrant will be identified as stale dated.
b) Every June 30th and December 31st, (final evaluation dat es) all remaining outstanding warrants will be evaluated. Any warrants issued more than 12 months prior to evaluation date will receive a second letter and affidavit form. If no response is received within 30 days the warrant will be identified as stale dated and unclaimed. Stale datedUnclaimed warrants shall be cancelled and voided in the system. A Journal entry shall be prepared to record the total amount of unclaime d checks in a holding account called “Aged Unclaimed Warrants”.
c) Any individual check of le ss than fifteen ($15) dollars, or any amount if the depositor’s name is unknown , which remain unclaimed for a period of one (1) year will become the property of the City. Uncashed checks will be cancelled and notice of the cancellation will be sent to th e City’s bank. The unclaimed funds may be transferred from the funds which money was originally drawn from by the City to the general fund without the necessity of publication of notice in a newspaper in accordance with Government Code Section 50055. A res olution authorizing the transfer of these funds to the general fund will be prepared for approval by the City Council. Thereafter, a journal entry will be used to record the total amount of these warrants as revenue, becoming the property of the City of Richmond.
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d) At the expiration of the three-year period, money representing restitution collected on behalf of victims shall be deposited into a Restitution Fund or used by the City of Richmond for the purpose of victim services in accordance with Government Code Section 50050. The City must document that it has made a reasonable effort to locate and notify the victim to whom the restitution is owed.

Exhibit A
Sample notification letter to be mailed

mm, dd, yyyy

Vendor Name
Address
City, State, Zip Code

Vendor # 1693
Re: Un-cashed check

The City of Richmond issued check #10007826 on 5/31/2001 in the amount of $500.00.

A review of the records indicates that this check is still outstanding and has not been cashed. By completing the attached affidavit of unclaimed monies claim form you are acknowledging that the above mentioned check was not received or was lost and has not been presente d for payment by the payee, therefore requesting a re -issuance. Please return the competed affidavit of unclaimed monies claim form to:

City of Richmond
Finance Department / Accounts Payable
450 Civic Center Plaza
P.O. Box 4046
Richmond CA 94804-0046

If you have this check, please return it for reissuance; do not cash the check, as it will no longer be honored by the City bank.

If you have any questions please feel free to contact Accounts Payable at 510-620-6740 or by email at [email protected]

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Sincerely,
Accounts Payable
Exhibit B
City of Richmond
Affidavit of Unclaimed Monies

I, ____________________________, hereby declare that I am the depositor of the unclaimed money, their heir, beneficiary, or duly appointed representative of check number _________________, issued by the City of Richmond, in the amount of $_________________ _ (“unclaimed monies”), dated _______________________ and the name of the Payee shown is _______________________________________.

Indicate below what happened to the original check– mark on the box and explain.

( ) The above check was not received.
( ) The above check was destroyed by __________________. ( ) The above check was lost by me on _________________. ( ) Other _________________________________________.
( ) The above check is attached. The check was not cashed within six months and has become stale dated.
( ) The above check was not received, deposited, or cashed, however there are no outstanding payments due to me from the City of Richmond.

I have an interest in the unclaimed monies, am entitled to the full amount thereof, request that a replacement check be issued to me, and agree that if the above warrant is received I will promptly return it to the City of Richmond Finance Department.

I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

EXECUTED AT _______________________________________, on DATE ______________________
_______________________________________________ ______________________________ Print Name Daytime Phone Number
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_______________________________________________
Signature
___________________________________________________________________________________ Address City State Zip Code

Exhibit C
Sample Notice to be Published in Local Newspaper

Notice is hereby given that the City of Richmond is holding funds for the below listed individual(s).

If said funds are not claimed by mm, dd, yyyy, these funds will become the property of the City of Richmond in accordance with California Government Code Sections 50050 – 50057. These funds may be released to the depositor, their heir, beneficiary, or duly appointed representative provided a claim form has been completed with the necessary information.

The Affidavit of Unclaimed Money Claim form is available at the City of Richmond, Finance Department, 450 Civic Center Plaza, Richmond, CA 94804, on the City’s website (http://www.cityofrichmond.ca.us), or by calling [Name}, 925 -671-####. Required claim information includes name, address, phone number, tax identification number or social security number, amount of claim, and grounds on which the claim is founded. Once a claim is submitted, the Director of Finance will determine what, if any, additional information is necessary.

Name Transaction Date Dollar Amount
Vendor A
Vendor B
Vendor C

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POLICY: Purchasing Policy
ESTABLISHED: October 25, 2011
RESOLUTION NO.: Not Applicable; DATE: Not Applicable
XVIII.XVII. Purchasing Policy
A. Section I - General

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

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

Chapter 2.52 – Contracting and Purchasing Procedures
Chapter 2.50 – Richmond Business Opportunity Ordinance
Chapter 2.56 – Local Employment Program
Chapter 2.65 – Ban the Box Ordinance
Chapter 2.28 – Nondiscrimination Clauses

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

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

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

The following apply to all purchases made by the City of Richmond:
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a) No purchase will be approved or undertaken unless an appropriation has been established, through either the adopted annual budget or City Council approval of additional appropriations. It is the responsi bility of the Department/Division to maintain budget control of their individual budgets. Ultimate responsibility for the individual budget rests with the Department Director.
b) Certain purchases are unique in nature and do not lend themselves to the process of competitive bidding. Therefore, these items are excluded from the competitive bidding and purchase order requirements. These items include, but are not limited to, County Services, debt service payments, and ongoing expenses for utilities or services ( such as telephones, electricity, etc.)
c) No City employee shall have a direct or indirect financial interest in any contract or purchase of goods or services entered into by the City, or shall derive any personal benefit from the City’s purchase of goods or services.
d) No City employee shall use the City’s purchasing procedures to obtain property for personal use, by misrepresenting to vendors for the purpose of obtaining price discounts for personal purchases.
e) No City employee shall draft or cause to be drafte d any specifications for bids in such a way as to intentionally limit the bidding directly or indirectly to any one bidder.

4. Solicitation Thresholds
The dollar limits for purchases are established by ordinance or resolution.

Purchases shall not be split to avoid the required procedures or certain dollar limits. In summary, requisitioners are responsible to obtain quotes/bids as indicated below:
• Less than $3,000 – Solicit One Written Quote
• Between $3,000 - $5,000 – Solicit Two Written Quotes
• Between $5,000 - $50,000 – Solicit Three Written Quotes • Over $50,000 – Formal Sealed Bids/Proposals are Required

Formal procedures are used when the value of the purchase/service is estimated to be $50,000 or greater. Informal procedures are used when the estimated value of the purchase/service is less than $50,000.

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

Informal purchases may be solicited by either a Req uest For Quote or a Request for Proposal (RFP).

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5. Issuing the Quote/BID/RFP/RFQ
Since all solicitations over $3,000 require competitive quotes, the issuing department shall submit the solicitation to the Purchasing Division to post to the City’s BidsOnlin e System. The City utilizes this online registration and bidding system to notify businesses of various bid opportunities, news, and updates. The electronic bidding system provides an easy and accessible way to bid documents. Registered companies will rece ive customized emails notifying them of specific bids and they will have the ability to search for bids, and download documents. This will ensure maximum exposure and competition. Also submit to Purchasing a list of potential firms to receive notice of the solicitation.
a) Exceptions: The informal/formal bid process may be bypassed in the following three instances:
(1) In emergency situations to preserve life, health or property, the appropriate Department Head may dispense with obtaining quotes/bids/proposals to obtain materials/services necessary in dealing with the emergency. The Emergency Justification Form must be approved by the Finance Director and City Manager prior to any purchase. If the purchase exceeds $10,000, immediately following the emergency, the a ppropriate
Department Head shall prepare an agenda report to Council explaining the emergency and the items purchased. Emergency procurements should be made only to preserve life, health or property.
• Upon a natural disaster
• To correct or forestall a shutdown
• To maintain essential public services
• Other unforeseeable events
• NOT because of poor planning
(2) When one known supplier is available, the Department Head may complete the Sole Source Form. A sole source is the only possible source, not a preferred source. The Sole Source Form must be approved by the Finance Director. If the purchase is under $10,000 the City Manager must also approve the Sole Source. If the purchase exceeds $10,000, an agenda report for Council approval requesting an exceptio n from the solicitation process and requesting awarding the purchase to the “Sole Source vendor” must be prepared.

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

6. Procurement/Payment Methods
a) Purchase Order: The Finance Department has designated the purchase order as the primary and preferable procurement and payment method.

The Purchase Order (PO) is the main source of en cumbering and procuring services and materials. The PO is used to communicate to a vendor the City’s terms and conditions, authorizes an encumbrance of City funds and is a contractual agreement to order goods and services.

The PO is used to process payment and track expenditures in the City’s Financial System (MUNIS).

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

Accounts Payable will pay approved vendor invoices with an appropriate and valid purchase order number issued from the Purchasing Division.

Invoices without an authorized purchase order may be returned to the vendor unpaid.
b) Credit/Procurement Card (CAL -Card): The CAL -Card is used as a purchase and payment method used to pro cure budgeted low value goods, typically up to $3,000. It may be used for higher value purchases on an approved basis. Cardholder and cardholder’s approving official are responsible for proper use of the CAL-Card program. See the CAL- Card Handbook, posted on the City’s intranet, for policies and procedures.
c) Direct Pay (Green Stamp): Green stamps are used as a limited payment method typically used for utilities, trust accounts, and one -time payments. Direct pay is not to be used for payment of services or routine/reoccurring payment of goods. The use of a direct pay must be approved by the Finance Director or his/her designee and shall be limited to the following areas:

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(1) Utility payments, i.e. electricity, gas, water, sewer, etc. 2. (2) Trust Accounts
(3) One time vendors – The one-time vendor should be used for any vendor that will be utilized one time during a calendar year with an aggregate payment of less than $600.00 per calendar year. A vendor number will need to be created for payment. The issuing Department/Division will need to obtain a completed IRS form W-9 from the vendor.
(4) Legitimate “emergency” needs, must have the Finance Director’s approval.
d) Electronic Funds Transfer (EFT): EFT is used as a limited payment method for transactions with large dollar am ounts which are time sensitive. Types of payments which are routinely processed by means of an EFT are debt service payments, the purchase of securities, and medical benefits etc.

B. Section II – General Supplies, Materials, and Equipment

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

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

2. Informal/Unsealed Quotes < $50,000.00
Material/supply purchases exceeding $10,000 must be awarded by the City Council.

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

The Department/Division should make every reasonable attempt to obtain at least three quotes for all pu rchases between $5,000 -$50,000. However, it is understood that at times it is neither practical nor cost effective to continue soliciting quotes until three quotes are received. In the event that three viable quotes are not received, the division shall document what steps were taken to obtain quotes, any vendors contacted that declined to bid, and, if applicable, why it is not practical to receive three quotes.
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a) Documentation: Quotes received must be documented to the satisfaction of the Finance Department. Ideally, documentation should include the name of the company bidding, the person giving the quote, items being quoted, the date and time of the contact, the amount quoted and any other relevant information.
b) Evaluating Quotes: The Department/Division shall evaluate the informal quotes received and determine the lowest most responsible quote.

When evaluating quotes, please verify that like items are being evaluated (apples to apples). The City reserves the right to accept the quote which is in the best interest of the City.
c) Purchase Order: A purchase requisition detailing the vendor name, address, item(s) being purchased, total price including tax and shipping, and budget account to be charged shall be prepared in the MUNIS Financial System. A copy of the quo tes/quote summary shall be attached to the purchase requisition. The Purchasing Division will review/approve the purchase requisition and convert the requisition to a Purchase Order.

3. Formal/Sealed BIDS > $50,000.00
Material/supply purchases exceeding $10,0 00 must be awarded by the City Council.

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

The initiating Department/Division shall be responsible for completion of the formal bid process.
a) Bid Package: The initiating department shall prepare a bid form including detailed specifications for the item to be purchased. The following format is suggested for competitive bids.
(1) Submission of Bids – Include date, time, location and bid number. Include a detailed list of the information the bid or proposal should contain. The public notice shall state the method of submission, either paper bids to the City Clerk’s office or electronic bids through the City’s electronic bidding system. (2) Questions – List the name, address, and telephone number of the person to be contacted concerning questions about t he project.
(3) Background – Provide as much background as necessary to give the bidder an understanding of the environment in which the job will be performed and to which the job relates.

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(4) Scope of work – Describe in detail the requirements for the job and detail specifications.
(5) Desired project schedule – be as specific as possible. (6) Minimum and desirable qualifications – Be as specific as possible.
(7) Performance Bond – Whether a performance bond is required and if so, the amount and form of bidders security.
b) Notice inviting Bids: The initiating department shall also prepare a notice inviting bids that includes the following:
(1) A general description of the item to be purchased.
(2) A statement indicating where bid package, specifications and bonding requirements can be obtained.
(3) A statement specifying the time place for the opening of the bid. c) Bid Opening:
(1) Sealed paper bids shall be submitted to the City Clerk’s office or electronically through the City’s electronic bidding system. (2) Paper bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the Invitation to Bid.
(3) Electronic bid submission will remain unopened until the closing date and time. Said submission shall not be viewed by the public or City staff until the closing date and time.
(4) Any bid received after the time specified in the notice shall be rejected.
(5) When bidder’s security is required, it will be announced in the public notice inviting bids. The amount shall be determined at the time of preparation of the bid. It shall be in the form of cash, certified or cashier’s check, certificate of deposit in City of Richmond’s name, or bid bond made payable to the City of Richmond. When a bidder’s security is required, a bid shall not be considered unless one of the aforementioned forms of security accompanies the bid.
d) Rejection of Bids: The City reserves the right to reject any and all bids, to accept or reject any one or more it ems of a bid, or to waive any irregularities or informalities in the bids or the bidding process if to do so is deemed to best serve the interest of the City.
e) Determining Lowest Responsible Bidder: Award to bid shall be to the lowest responsive and responsible bidder. The City reserves the right to accept that bid which is in the best interest of the City. When selecting the recommended bidder the Department/Division Head will take into consideration:
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(1) Price
(2) Ability, capacity, and skill, warrantee
(3) Ability to meet time requirements
(4) Character, integrity, and reputation
(5) Previous vendor experience
(6) Financial resources available for contract performance (7) Ability to provide future maintenance and service, if necessary f) Awarding the Bid: Once the bids have been evalua ted, the Department Head/Division Head shall prepare an agenda report to Council recommending the most responsive and responsible bidder. The Council shall then award the bid in a public meeting.

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

Otherwise:
• Such purchases are void and not considered an obligation of the City.
• Invoices may be returned to the contractor/service provider unpaid. • The person ordering the unauthorized purchase may be held personally liable for the costs of the contract.
g) Purchase Order : A purchase requisition detailing the vendor name, address, item being purchased, total price including tax and shipping, and budget account to be charged shall be prepared in the MUNIS Financial System. A copy of the bid/b id summary shall be attached to the purchase requisition. The Purchasing Division will review/approve the purchase requisition and convert the requisition to a Purchase Order. h) Change Orders for Product : The Purchasing Division is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price.

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

C. Section III – General Trade Services

1. Purpose
Provide guidelines for the purchase of trade contractual services. Trade services shall mean the repair, rental or maintenance of equipment, machinery and other City -owned or operated property. Included within this term are 274

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services necessary for the routine operation, repair or maintenance of existing buildings or improvements. The term does not include services rendered by professionals and other services which are unique in nature and not subject to competition.

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

2. Informal/Unsealed Quotes < $50,000.00
Trade services exceeding $10,000 must be awarded by the City Council.

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

The Department/Division shall strive to, whenever possible, solicit at least three quotes in writing. It is important that the specifications are accurate and comprehensive.
a) Documentation: Quotes received must be d ocumented to the satisfaction of the Finance Department. Ideally, documentation should include the name of the company bidding, the person giving the quote, services being purchased, the date and time of the contact, the amount quoted and any other relevant information.
b) Evaluating Quote: The Department/ Division shall evaluate the informal quotes received and determine the lowest most responsible quote. The City reserves the right to accept that quote which is in the best interest of the City.

When selectin g the recommended bidder the Department / Division Head will take into consideration:
• Price
• Ability, capacity, and skill.
• Ability to meet time requirements.
• Character, integrity, and reputation.
• Previous contractor/service provider experience.
• Financial resources available for contract performance. • Ability to provide future maintenance and service, if necessary. 275

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c) Contract and Purchase Order:

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(1) A contract shall be prepared detailing the consultant’s name, service being purchased, total price of the service being purchased. The consultant shall sign three original copies. (2) The issuing Department/Division will obtain a completed IRS form W-9 from the consultant.
(3) Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.
(4) If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website
www.ci.richmond.ca.us/businesslicense if you want more
information.
(5) The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, business license, and evidence of the competitive solicitation, minutes and legal opinion shall be attached in the contract module.
(6) A purchase requisition shall be prepared in the MUNIS Financial System.
(7) The City Clerk, City Attorney, and Mayor/City Manager shall sign the three original copies of the contract.
(8) One original copy of the executed contract shall be returned to the contractor/service provider, the issuing Department shall keep the second copy and the third copy shall remain in the City Clerk’s Office.
d) Renewals: Contracts for ongoing services may include annual renewal provisions for up to three additional years. However, all contracts that exceed $10,000 in overall contract amount must be approved by the City Council. Cost increases related to such renewals shall not exceed the Consumer Price Index (CPI) adjustments unless approved in advance by the Finance Director.
e) Change Orders for Product: The Purchasing Division is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price.

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

Change orders in excess of the $10,000 aggregate change in purchase price shall be brought to the City Council for approval. 277

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3. Formal/Sealed BIDS > $50,000.00
Trade services contracts exceeding $10,000.00 must be awarded by the City Council.

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

The initiating Department/Division shall be responsible for completion of the formal bid process. However, the process shall be coordinated with the City Clerk’s Office and the Purchasing Division. Formal Sealed bids must be publicly opened in the City Clerk’s Office.
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a) Bid Package: The initiating department shall prepare a bid package including detail specifications for the services to be purchased. The following format is suggested for competitive bids/proposals:
(1) Submission of bids (or proposals) – Include date, time, and location. Include a detail list of the information the bid or proposal should contain. State the method of submission, either paper bids to the City Clerk’s Office or electronic bids through the City’s electronic bidding system. Formal sealed proposals are not required to have a public bid opening.
(2) Questions – List the name, address, and telephone number of the person to be contacted conce rning questions about the project.
(3) Background – Provide as much background as necessary to give the bidder an understanding of the environment in which the job will be performed and to which the job relates.
(4) Scope of work – Describes in detail the requirem ent for the job and detail specification.
(5) Desired project schedule – Be as specific as possible. (6) Minimum and desirable qualifications – Be as specific as possible.
(7) Performance Bond – Whether a performance bond is required and if so, the amount and form of bidders security.
(8) Sample Contract – A sample of the contract that is expected to be used should be included in the bid package.
b) Notice Inviting Bids: The initiating department shall also prepare a notice inviting bids that includes the following:
(1) A general description of the services to be purchased. (2) A statement indicating where bid forms, specifications and bonding requirements can be obtained.

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(3) A statement specifying the time and place for the opening of the bids.
c) Bid Opening:
(1) Sealed paper bids shall be submitted to the City Clerk’s office or electronically through the City’s electronic bidding system. (2) Paper bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the Invitation to Bid.
(3) Electronic bid submission will remain unopened until the closing date and time. Said submission shall not be viewed by the public or City staff until the closing date and time.
(4) Any bid received after the time specified in the notice shall be rejected.
(5) When bidder’s securi ty is required, it will be announced in the public notice inviting bids. The amount shall be determined at the time of preparation of the bid. It shall be in the form of cash, certified or cashier’s check, certificate of deposit in City of Richmond’s name, or bid bond made payable to the City of Richmond. When a bidder’s security is required, a bid shall not be considered unless one of the aforementioned forms of security accompanies the bid.
d) Rejection of Bids/Proposals: The City reserves the right to reject any and all bids, to accept or reject any one item of a bid, or to waive any irregularities or informalities in the bids or the bidding process if to do so is deemed to best serve the interest of the City.
e) Determining Lowest Responsive and Responsible Bidder : Award of bid shall be to the lowest responsive and responsible bidder. The City reserves the right to accept that bid which is in the best interest of the City. When selecting the recommended bidder the City staff will take into consideration:
(1) Price
(2) Ability, capacity, and skill.
(3) Ability to meet time requirements.
(4) Character, integrity, and reputation.
(5) Previous contractor/service provider experience.
(6) Financial resources available for contract performance. (7) Ability to provide future maintenance and service, if necessary f) On-Call (Ongoing) Professional Services
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(1) In some instances it is in the best interest of the City to have on- call contracts with multiple consultants for the same or very similar services. (I.e. services that can be defined as to scope of work but not as to require events such as soils testing, contract building inspection services, architectural services, etc.) These services would best be handled by establishing an eligibility list and by entering in to annual on -call processional service contracts.
(2) The process for selecting firms for annual ongoing professional service contracts shall be generally the same as for other professional services contracts. However, multiple firms may be awarded an on-call contract based on the RFP/RFQ process and may be placed on the eligibility list. Additional firms/individuals may also be awarded contracts and placed on the eligibility list at a later date, using the RFP/RFQ process without impacting contracts currently in place.
(3) As events occur and need arises, work may be assigned to the consultants on the eligibility list. The Department Head shall solicit proposals from the consultants on the eligibility list or shall make a reasonable attempt to rotate work between consultants subject to availability and special needs.
g) Contract and Purchase Order:
(1) A contract shall be prepared detailing the consultant’s name, service being purchased, and total price of the service being purchased. The consultant shall sign three original copies. (2) The issuing Department/Division will obtain a completed IRS form W-9 from the consultant.
(3) Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.
(4) If the vendor is located in or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit the City’s website
www.ci.richmond.ca.us/businesslicense if you want more
information.
(5) The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, evidence of the competitive solicitation, minutes and legal opinion shall be attached in the contract module.
(6) A purchase requisition shall be prepared in the MUNIS Financial System.
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(7) The City Clerk, City Attorney, and Mayor/City Manager shall sign the three original copies of the contract.
(8) One original copy of the executed contract shall be returned to the contractor/service provider, the issu ing Department shall keep the second copy and the third copy shall remain in the City Clerk’s Office.
h) Renewals: Contracts for ongoing services may include annual renewal provisions for up to three years. However, all contracts that exceed $10,000 in overal l contract amount must be approved by the City Council. Cost increases related to such renewals shall not exceed the Consumer Price Index (CPI) adjustments unless approved in advance by the Finance Director.
i) Change Orders for Product : The Purchasing Divis ion is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price.

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

D. Section IV – Professional Services

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

2. Informal Request for Proposal or Request for Qualifications <$50,000.00 Professional service contracts exceeding $10,000 must be awarded by the City Council.

An informal Request for Proposal (RFP) or a Request for Qualifications (RFQ) process shall be used for any solicitation under $50,000. These professional service agreements shall have sufficient documentation of background analysis to support the contract. Informal soli citations should be used to assure quality services are received for a reasonable price. 282

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

Informal Request for Proposal or Request for Qualifications:
a) Documentation – Informal quotations must be documented to the satisfaction of the Finance Department. Documents should include:
(1) The name of the company
(2) The person giving the quote
(3) The date and time the quotes were received
(4) Understanding of the required scope of services.
(5) Specialized experience of the firm and its personnel relative to the required services.
(6) References who can be contacted to verify past record of performance, i.e., completion of quality product, in a timely manner, and within budget constraints.
(7) The capacity of the firm to perform the subject project within a required timeframe.

(8) Estimated price
b) Evaluating Informal RFP/RFQ : The Department/Division Head or designee(s) shall select the consultant which, in their evaluation process, is the most qualified to perform the work. The evaluation and selection process shall be based upon the following considerations:
(1) General quality and responsiveness to the request, including but not limited to:
• Responsiveness to the terms, conditions, and items of performance;
• Grasp of the problem, work to be performed, and approach to be used
(2) Organization and personnel making the proposal;
• Evidence of good organizational management practices. • Qualification of the personnel.
• Specialized experience of the firm and its personnel relative to the required services.
• References who can be contacted to verify past record of performance (i.e., completion of a quality product in a timely manner and within budget constraints).
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• Previous consultant experience
• The final condition of the firm
• Capacity of the firm to perform the subject project within a required timeframe
(3) If appropriate, the price, in any of the foll owing formats, may be considered.
• Total price and price breakdown
• Price range
• Cost schedule
c) Negotiation: The Department Head or designee(s) shall discuss with the highest ranked firm(s) the requirements of the project, the scope of services needed to meet the requirements, and negotiate a reasonable fee/contract for the established work assignment.
d) Contract and Purchase Order:
(1) A contract shall be prepared detailing the consultant’s name, service being purchased, and total price of the service being purchased. The consultant shall sign three original copies.

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(2) The issuing Department/Division will obtain a completed IRS form W-9 from the consultant.
(3) Proof of insurance in accordance with the contract shall be obtained. This includes an insurance certificate and an additional ensured endorsement.
(4) If the vendor is located in, or perform services within city limits or if vendor delivers products in compa ny owned vehicles, a Business License is required. Visit the City’s website
www.ci.richmond.ca.us/businesslicense if you want more
information.
(5) The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, evidence of the competitive solicitation, minutes and legal opinion shall be attached in the contract module.
(6) A purchase requisition shall be prepared in the MUNIS Financial System.
(7) The City Clerk, City Attorney, and Mayor/City Manager shall sign the three original copies of the contract.
(8) One original copy of the executed contract shall be returned to the contractor/service provider, the issuing Department shall keep the second copy and the third copy shall remain in the City Clerk’s Office.
e) Renewals: Contracts for ongoing services may include annual renewal provisions for up to three additional years. However, all contracts that exceed $10,000 in overall contract amount must be approved by the City Council. Cost increases related to such renew als shall not exceed the Consumer Price Index (CPI) adjustments unless approved in advance by the Finance Director.
f) Change Orders for Product : The Purchasing Division is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchase price.

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

3. Formal Request for Proposal or Request for Qualifications > $50,000.00 Professional service contracts exceeding $10,000 must be awarded by the City Council.
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A Formal sealed Request for Proposal (RFP) or a Request for Qualifications (RFQ) process shall be used, for any solicitation exceeding $50,000, thereby assuring the City that it has engaged the most qualified consultant available for the engagement. The formal solicitation process generally takes more time and expense than informal solicitations of qualifications.

The Formal Request for Proposal or Request for Qualifications shall include:
a) Developing the RFP or RFQ : Because RFP’s and RFQ’s ask for a subjective product, they should contain the greatest detail possible, and may include the following:
(1) A precise description of the problem or objective
(2) The services to be performed
(3) The product to be provided
(4) The anticipated time schedule for:
• Submittal of RFP/RFQ (date and time)
• Any pre-proposal conference (date, time and location) • Review and evaluation of the proposals
• Award of the contract
• Commencement of the work on the project
• Completion date
(5) Evaluation factors and the relative importance of each (6) Expectations or limitations on the part of the City • The format, form and quantity of any expected reports • The extent/nature of assistance/cooperation available from the City
(7) Expected content of the RFP/RFQ, including:
• The overall description of techniques to be used
• Listing of similar services provided to other clients • Listing of available references to contact
• Description and qualifications of assigned lead and
supporting personnel
• Time and staff expected to be expended
• Facilities and equipment to be used
• Portion of contract to be performed by sub-contractors • Subcontractors / Sub consultants qualifications
• Cost, in summary and total, and desired method of
payment. The RFP/RFQ for services may, but is not required to; state the amount budgeted for the service.
(8) Contractual requirements including, but not limited to:
• Prohibition against assignment
• Indemnification
• Insurance requirements
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• Warranties
• Compliance with federal, state and City laws, rules and regulations
• Compliance with any grant related regulations
• Sample contract
b) Issuing the RFP/RFQ
(1) To ensure maximum exposure and competition, the issuing department shall submit the RFP/RFQ documents to the
Purchasing Division to post to the City’s BidsOnline System. Also submit to Purchasing a list of potential firms to r eceive the RFP/RFQ.
(2) A reasonable length of time between solicitations and closing dates must be allowed to provide potential respondents time for preparation in accordance with the complexity, the size of the project, and the scope of the advertising.
(3) City staff may conduct conferences to explain the requirements of the project. A sufficient amount of time should be allowed after the RFP/RFQ has been issued to allow potential respondents to become familiar with the project. Any clarification or changes required to the RFP/RFQ, as a result of the conference, shall be added as a written amendment. A summary of the conference shall be provided to all prospective respondents receiving the request.
(4) Amendments should be used to make any changes in quantities descriptions, schedules, or to correct defects or ambiguities in the original RFP/RFQ. Amendments are provided to ensure that all potential respondents are furnished with the same information with which to prepare proposals. Amendments to the RFP/RFQ shall be identified as such and shall require acknowledgment as such by firms receiving the RFP/RFQ within a reasonable time period before the closing date. If the time and date established for the receipt of proposals does not allow sufficient time for consideration and changes, the time and date will be modified by amendment.

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c) Proposal Opening:
(1) Proposal shall be submitted electronically through the BidsOnline System, to the issuing Department or to the City Clerk’s office and shall be clearly identified with t he Proposal number on the envelope.
(2) Any proposal received after the time specified in the RFP/RFQ shall be returned unopened.

(3) Respondents may modify or withdraw their proposals prior to the established closing date and time, without penalty. However, any modifications submitted after the established closing date and time will not be accepted. Such modifications will be returned to the respondent, unopened.
(4) Proposals and modifications shall be shown only to the evaluation committee personnel, the City Cl erk or his/her designee, the Department Head and the Finance Department until a recommendation is made to Council or all proposals have been rejected.
d) Rejection of Proposals: The City reserves the right to reject any and all proposals, to accept or reject any one or more items of a proposal, or to waive any irregularities or informalities in the proposal or the RFP/RFQ process if to do so is deemed to best serve the interests of the City. e) Evaluation Factors and Method:
(1) Because unique services are requested, cost is not considered the primary selection criteria.
• General quality and responsiveness of the proposal,
including but not limited to:
o Responsiveness to the terms, conditions, and items
of performance;
o Completeness and thoroughness of the proposal;
o Grasp of the problem, work to be performed, and
approach to be used.
• Organization and personnel making the proposal:
o Evidence of good organizational and management
practices.
o Qualification of the personnel.
o Specialized experience of the firm and its pe rsonnel relative to the required services.
o References who can be contacted to verify past
record of performance, i.e., completion of a quality
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product, in a timely manner, and within budget
constraints.
o The financial condition of the firm.
o Capacity of the firm to perform the subject project
within a required time frame

• If appropriate, the price, in any of the following formats, may be considered.
o Total price and price breakdown.
o Price range.
o Cost schedule.
(2) A Selection Committee shall be formed to evaluate the submitted data and determine the consultants that should receive further consideration. The Committee shall be appointed by the issuing department and may consist of more than one department. For example one or more people from the issuing depar tment, one person from Finance, one person from the City Attorney’s office, an expert in the field or one or more employees from another department.
(3) The Selection Committee may choose to interview all of the responding consultants, only the top few ranking consultants or to not perform interviews.
(4) After the interviews (if applicable), the Selection Committee shall rank the consultants based on their proposals, interviews, and references.
f) On-Call (Ongoing) Professional Services
(1) In some instances it is in the best interest of the City to have on- call contracts with multiple consultants for the same or very similar services (i.e. services that can be defined as to scope of work but not as to required events such as soils testing, contract building inspection se rvices, architectural services, etc.) These services would best be handled by establishing an eligibility list and by entering into annual on -call processional service contracts.
(2) The process for selecting firms for annual ongoing professional service cont racts shall be generally the same as for other professional services contracts. However, multiple firms may be awarded an on-call contract based on the RFP/RFQ process and may be placed on the eligibility list. Additional firms/individuals may also be awar ded contracts and placed on the eligibility list at a later date, using the RFP/RFQ process without impacting contracts currently in place.

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(3) As events occur and need arises, work may be assigned to the consultants on the eligibility list. The Department H ead shall make a reasonable attempt to rotate work between consultants subject to availability and special needs or by soliciting proposals from the consultants on the eligibility list.
g) Negotiation: The Department Head or designee(s) shall discuss with the highest ranked firm(s) the requirements of the project, the scope of services needed to meet the requirements, and negotiate a reasonable fee/contract for the established work assignment.

h) Awarding the Contract:

The Department Head/Division Head shall prepare an agenda report to City Council recommending the most responsive consultant. The Council shall then award the contract in a public meeting. All contracts exceeding $10,000 must be awarded by the City Council. Otherwise:
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(1) Such purchases are void and not considered an obligation of the City.
(2) Invoices may be returned to the contractor/service provider unpaid.
(3) The person ordering the unauthorized purchase may be held personally liable for the costs of the contract.
i) Contract and Purchase Order:
(1) A contract shall be prepared detailing the consultant’s name, service being purchased, and total price of the service being purchased. The consultant shall sign three original copies. (2) The issuing Department/Division will obtain a completed IRS form W-9 from the consultant.
(3) Proof of insurance in accordance with the contract shall be obtained.
(4) If the vendor is located in, or perform services within city limits or if vendor delivers products in company owned vehicles, a Business License is required. Visit t he City’s website www.ci.richmond.ca.us/businesslicense if you want more
information.
(5) The contract shall be entered in the MUNIS Financial System. A copy of the contract together with the proof of insurance, evidence of the competitive solicitation, minut es and legal opinion shall be attached in the contract module.
(6) A purchase requisition shall be prepared in the MUNIS Financial System.
(7) The City Clerk, City Attorney, and Mayor/City Manager shall sign the three original copies of the contract.

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

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j) Renewals: Contracts for ongoing services may include annual renewal provisions for up to three additional years. However, all contracts that exceed $10,000 in overall contract amount must be approved by the City Council. Cost increases related to such renewals shall not exceed the Consumer Price Index (CPI) adjust ments unless approved in advance by the Finance Director.
k) Change Orders for Product: The Purchasing Division is authorized to issue change orders for changes or additions to the original purchase that result in less than $10,000 aggregate change in purchas e price.

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

E. Section V – Procurement During a Proclaimed Emergency or Disaster

1. Purpose
This Policy modifies the City’s normal purchasing practices (pursuant to Municipal Code-Chapter 2.52 – Contracting and Purchasing Procedures) to assure that, in both emergency and exigent circumstances caused by a proclaimed disaster or emergency, the City is able to acquire the goods and services required to address an immediate threat to life safety, public health, or to eliminate or reduce an immediate threat of significant damage to improved public and private property through cos t-effective measures while still maintaining an effective purchasing process and complying with applicable local and state purchasing laws. Where the City is included in a major disaster or emergency declared by the President of the United States, this Pol icy also assures that City procurements comply with Federal regulations applicable to FEMA disaster grant reimbursement as defined in Title 2 of the Code of Federal Regulations, Part 200 (2CFR Part 200).

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

2. Definitions
“Proclaimed Emergency or Disaster” exists if

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

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

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

3. Delegations of Purchasing Authority in Exigent Circumstances If the City Manager or his/her designee determines that goods and services must be procured before the Elected governing board is able to assemble and approve purchases, the City Manager has authority, subject to the limitations set forth in sub -paragraphs (a) and (b), to approve the immediate rental or purchase of any equipment, supplies, services or other items necessary to respond to an immediate thr eat to life safety, public health, or to eliminate/reduce an immediate threat of significant damage to improved public and private property through cost-effective measures
(a) Limits of Single Purchase Authority. The City Manager, shall have the authority to m ake individual purchases up to a maximum of $150,000 without prior City Council approval. (b) Limits of Aggregate Purchase Authority. The City
Manager shall have the authority to make aggregate
purchases up to a maximum of $1,000,000 without prior City Council approval.

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

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

Sub-delegation of Purchasing Authority to Department Heads If neither the City Manager nor the EOC Director or Finance Director is available, the police department watch commander, duty fire battalion chief, 293

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and/or duty public works department director have authority to rent or purchase from the nearest available source any equipment, supplies, services, or other items necessary for his or her department to respond to an immediate threat to life, public health, or safety, or to eliminate/reduce an immediate threat of significant damage to improved public and private property through cost- effective measures, up to a maximum of $150,000.

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

4. Procurement Procedures in Exigent Circumstances
Upon receipt of requisitions under Section V, the Purchasing Division shall prepare purchase orders for the emergency equipment, supplies, service s or other items in accordance with the requirements of this section.

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

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

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

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

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

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

F. Section VI – Purchases with Federal Grant Funds
The following section is being added to the Purchasing Policy to establish standards for the procurement of supplies, equipment, real property and other services as req uired by 2 CFR 200.317 through 200.326 to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards commonly called “Uniform Guidance”. 295

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

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

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

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

b) Award only to “responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement.” In determining which contractors are responsible, you must consider “matters such as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.” 2 CFR 200.318(h). (Note: This means that your solicitation documents must ask for information that will allow you to assess whether a contractor is “responsible.”)
c) Keep records to detail the history of each procurement. These records must include, at least, records showing your rationale for (1) the meth od of procurement, (2) the selection of contract type, (3) contractor selection or rejection, and (4) the basis for the contract price. 2 CFR 200.318(i)
d) Prohibit awarding time and materials type contracts unless (1) you have determined that no other contra ct is suitable and (2) the contract includes a ceiling price that the contractor exceeds at its own risk. The UAR defines a time and materials type contract as “a contract whose cost to a non‐Federal entity is the sum of: (1) the actual cost of materials; and (2) direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.” 2 CFR 200.318(j). For the purposes of this policy, the term “non -Federal Entity” means the City of Richmond and/or the Housing Authority for the City of Richmond.
e) Restricting competition . The following actions on procurements funded with federal grants are prohibited:
 Allowing contractors that develop or draft specifications, requirements, statements of work, invitations for bids, o r requests for proposals to compete for such procurements;  Placing unreasonable requirements on firms for them to qualify to do business (if you’re not sure if a requirement is unreasonable, ask the Federal awarding agency);
 Requiring unnecessary experience or excessive bonding;  Permitting noncompetitive pricing practices between
companies;
 Awarding contracts to consultants on “retainer” contracts;  Permitting organizational conflicts of interest
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performance requirements that must be met for a product to qualify as an equal;
 Acting arbitrarily in awarding contracts. 2 CFR 200.319(a) f) Prohibit awards based on local geographic preferences, except where applicable Federal statutes expressly mandate or encourage geographic preference . However, geographic location may be a selection criteria when awarding contracts for architectural or engineering services, provided that using such criteria “leaves an appropriate number of qualified firms” to compete for the work, “given the nature and size of the project.” 2 CFR 200.319(b).
g) All solicitations must identify (1) all requirements which the offerors must fulfill and (2) all other factors to be used in evaluating bids or proposals. 2 CFR 200.319(c)
h) If you use prequalified lists of entities or products when procuring goods or services, make sure those lists are “current and include enough qualified sources to ensure maximum open and free competition,” and do not preclude other potential entities or products from participating in the solicitation. 2 CFR 200.319(d).

2. Methods of Procurement to be followed
a) Procurement by sealed bids require formal advertising. Bids are publicly solicited (Post to the BidsOnline System) and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction.
(1) In order for sealed bidding to be feasible, the following conditions should be present:
• A complete, adequate, and realistic specification or purchase description is available;
• Two or more responsible bidders are w illing and able to compete effectively for the business; and
• The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made
principally on the basis of price.
(2) If sealed bids are used, the following requirements apply:
• The invitation for bids must be publicly advertised, providing suppliers sufficient response time prior to the date set for opening the bids;
• The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;
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• The bids must be opened publicly at the time and place prescribed in the invitation for bids;
• A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where
specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and
• Any or all bids may be rejected if there is a sound
documented reason. 2 CFR 200.320(c)
(3) Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or costreimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids.

If this method is used, the following requirements apply:
• Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any
response to publicized requests for proposals must be
considered to the maximum extent practical;
• Proposals must be solicited from an adequate number of qualified sources;
• The non-Federal entity must have a written method for conducting technical evaluations of the proposals received and for selecting recipients;
• Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and
• The non-Federal entity may use competitive proposal
procedures for qualifications-based procurement of
architectural/engineering (A/E) professional services
whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where
price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be
used to purchase other types of services though A/E firms are a potential source to perform the proposed effort. 2 CFR 200.320(d)
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(4) Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:
• The item is available only from a single source;
• The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; • The Federal awarding agency expressly authorizes
noncompetitive proposals in response to a written request from the non-Federal entity; or
• After solicitation of a number of sources, competition is determined inadequate. 2 CFR 200.320(f)
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b) Take certain steps to assure that minority firms and women’s business enterprises are used when possible. These steps are:
(1) Place qualified small and minority busin esses and women’s business enterprises on solicitation lists;
(2) Assure that small and minority businesses and women’s business enterprises are solicited whenever they are potential sources;
(3) Divide total requirements into smaller tasks or quantities to permit maximum participation by small and minority businesses and women’s business enterprises;
(4) Establish delivery schedules which encourage participation by small and minority businesses and women’s business
enterprises;
(5) Use the services and assistance of the Small Business Administration (http://www.sba.gov) and the Minority Business Development Agency of the Department of Commerce
(http://www.mbda.gov); and
(6) Require prime contractors to take the same steps listed above. 2 CFR 200.321
c) Contract cost and price
(1) Perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold ($150,000), including contract modifications. Make the Independent Cost Estimates (ICE) before receiving bids or proposals. 2 CFR 200.323(a)
(2) Negotiate profit as a separate element of the price (1) for each contract in which there is no price competition and (2) in all cases where cost analysis is performed. 2 CFR 200.323(b)
(3) A prohibition on using “cost plus a percentage of cost” o r “percentage of construction cost” methods of contracting. 2 CFR 200.323(d)

3. Federal Awarding Agency Review
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a) The non-Federal entity must make available, upon request of the Federal awarding agency or passthrough entity, technical specifications on proposed procurements where the Federal awarding agency believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the non-Federal entity desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase. 2 CFR 200.324(a)
b) The non -Federal entity must make available upon request, for the Federal awarding agency preprocurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:
(1) The non-Federal entity's procurement procedures or operation fails to comply with the procurement standards in this part; (2) The procurement is expected to exceed the Simplified Acquisition Threshold ($150,000) and is to be award ed without competition or only one bid or offer is received in response to a solicitation;
(3) The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a “brand name” product; (4) The proposed contract is more than the Simplifi ed Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or
(5) A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold. 2 CFR 200.324(b)
c) The non-Federal entity is exempt from the pre-procurement review in the above paragraph if the Federal awarding agency determines that its procurement systems comply with the standards of this part. (1) The non-Federal entity may request that its procurement system be reviewed by the Federal awarding agency to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high -dollar funding, and third party contracts are awarded on a regular basis;
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(2) The non-Federal entity may self-certify its procurement system.

Such self -certification must not limit the Federal awarding agency's right to survey the system. Under a self -certification procedure, the Federal awarding agency may rely on written assurances from the non-Federal entity that it is complying with these standards. The non -Federal entity must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system
available for review. 2 CFR 200.324(c)

4. Bonding requirements
a) For construction or facility improvement contracts or sub contracts exceeding the Simplified Acquisition Threshold, the Federal awarding agency may accept the bonding policy and requirements of the local agency provided that the Federal awarding agency has made a determination that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:
(1) A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. 2 CFR 200.325(a)
(2) A performance bond on the part of the contractor for 100 percent of the contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. 2 CFR 200.325(b) (3) A payment bond on the part of the contractor for 100 percent of the contract price. A “payment bond” is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract. 2 CFR 200.325(c)

5. Contracting Provisions
Appendix II to Part 200 - Contract Provisions for Non -Federal Enti ty Contracts Under Federal Awards
In addition to other provisions required by the Federal agency or non -Federal entity, all contracts made by the non -Federal entity under the Federal award must contain provisions covering the following, as applicable. 303

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a) Remedies: Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as author ized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. b) Termination: All contracts in excess of $10,000 must address termination for cause and for convenience by the non -Federal entity including the manner by which it will be effected and the basis for settlement.
c) Equal Employment Opportunity: Except as otherwise provided under 41 CFR Part 60, all co ntracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60 -1.3 must include the equal opportunity clause provided under 41 CFR 60 -1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” ( 30 FR 12319, 12935, 3 CFR Part, 1964- 1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.”

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d) Davis-Bacon Act, as amended : ( 40 U.S.C. 3141 - 3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non -Federal entities must includ e a provision for compliance with the Davis -Bacon Act ( 40 U.S.C. 3141 - 3144) as supplemented by Department of Labor regulations ( 29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to p ay wages not less than once a week.

The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation.

The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act: ( 40 U.S.C. 3145) , as supplemented by Department of Labor regulations ( 29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subre cipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non -Federal entity must report all suspected or reported violations to the Federal awarding agency. e) Contract Work Hours and Safety Standards Act: ( 40 U.S.C. 3701 - 3708). Where applicable, all contracts awarded by the non -Federal entity in excess of $100,000 that involve the employment of m echanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations ( 29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week.

The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.
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f) Rights to Inventions Made Under a Contract or Agree ment: If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, as signment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Bus iness Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.
g) Clean Air Act : ( 42 U.S.C. 7401 - 7671q.) and the Federal Water Pollution Control Act ( 33 U.S.C. 1251 - 1387), as amended - Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non -Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act ( 42 U.S.C. 7401- 7671q) and the Federal Water Pollution Control Act as amended ( 33 U.S.C. 1251 - 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
h) Debarment and Suspension : (Executive Orders 12549 and 12689) – Verify that a vendor is not debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Confirm and document that vendors are not on the federal government’s Excluded Party list found at www.sam.gov.
i) Byrd Anti-Lobbying Amendment: ( 31 U.S.C. 1352) - Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not use, and has not use d, Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.

Such disclosures are forwarded from tier to tier up to the non -Federal award.

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

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

Proposed General guidelines:

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

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

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

4. Initial Review of Proposals. The PM will review received Proposals for compliance with the submittal criteria and content requ irements. The EC will review Proposals that are deemed “responsive and responsible”. A responsive RFP/RFQ is one that meets all the terms, conditions and specification of the RFP/RFQ. A responsible RFP/RFQ is one where the proposer has the overall capability to satisfactorily perform the contract. “Non -Responsible” Proposals will not be evaluated and shall be rejected from any further consideration by the City.

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

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

7. Convening EC Committee Meetings. The EC meeting(s) shall be convened by the PM on the date and time designated. Each member will bring his/her compl eted technical evaluation form.

The EC members will discuss the individual scores and, as a result of the discussion, each 307

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member may adjust the member’s individual scoring up or down as appropriate. The PM shall average the individual scores to determine the Offeror’s score for that particular question/requirement.

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

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

10. Convening a Negot iation Team. If the EC elects to initiate negotiations, as approved by the PM, in order to ensure that the City is receiving the best value and/or the most cost-efficient goods and/or services, then a Negotiation Team (NT) will convene. The NT may include any or all members of the EC or other individuals as appropriate; provided, however, only the EC may rescore proposal revisions following negotiations. The NT will develop the Negotiation Plan and Negotiation Script.

11. Capturing Negotiation Results & Award Recommendation. If the City elects to negotiate with identified offerors, the offerors will each be asked to submit a Proposal Revision following each round of negotiations, which Proposal Revision will then augment the original RFP submission.

Each Proposal Revision will be evaluated and re-scored by the EC utilizing the same evaluation criteria. Upon completion of negotiations, the PM will prepare the Evaluation and Selection Report and obtain EC’s signatures approving the award recommendation.

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

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

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Attachment B

EVALUATION COMMITTEE MEMBERS PARTICIPATION FORM

(Solicitation Title)

REQUEST FOR PROPOSAL
(Sample Documents)

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

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

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

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

You are asked to read and sign the following statement:

I have read, understand, and agree to the above, and I will adhere to the policies presented.

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

Committee Member Signature Date
Print Name and Title of Committee Member Date

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Scoring Mechanisms (SAMPLE)

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

Exceptional (Assigned Scores - 22 to 25) –
 The approach will yield a result that exceeds the Objectives qualitatively.  The proposal offers an approach or features with little or no risk.  The response covers areas not originally addressed within the RFP category and includes additional information and recommendations that would prove both valuable and beneficial to the City of Richmond.
 This response is considered an excellent approach demonstrating the Supplier’s authoritative knowledge and understanding of the project.

Exceeds Objectives (Assigned Scores - 19 to 21) –
 A very good response that shows experience and knowledge within the category. The Supplier provides insight into their expertise, knowledge and understanding of the subject matter.
 The collective approach yields a qualitative benefit to the project that i s beyond the minimum objectives.
 The approach being proposed or the majority of the features are acceptable or above the objectives set out in the RFP.
 The Supplier can easily implement additional features or options. A minimal number of resources will be required from the City of Richmond.

Meets Objectives (Assigned Scores - 14 to 18) –
 The approach or the majority of the features proposed meet the objectives.  No apparent deficiencies noted. Some items could be improved upon but are still considered acceptable. To enhance them may require rework and resources from the Supplier and/or the City.
 The ranking should reflect some qualitative achievement(s) such as acceptable delivery timeframe, end-user training program, etc.

Fails to Meet Objectives (Assigned Scores - below 14)-
 The proposed approach or a majority of the features for the item are deficient. The approach taken is undesirable and correction would require a major and material change in the proposal.
 The correction of any deficiencies either collectively or individually, poses a serious problem in correction or has a "domino" effect on the other design features.

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POLICY: Employee Meal and Food Policy
ESTABLISHED: October 25, 2011
RESOLUTION NO.: Not Applicable; DATE: Not Applicable
XIX.XVIII. Employee Meal and Food Policy
A. Purpose
To establish guidelines for the provision of food and refreshments for meetings, seminars and other authorized City of Richmond functions.

B. Policy
It is the policy of the City of Richmond that food and refreshments will not be provided for routine, regularly scheduled departmental meetings. Food includes meals, beverages, snacks, drinking water, etc. Under no circumstances is alcohol an allowable food expense.

City funds are not to be expended on events, milestones, parties or celebrations that are primarily personal in nature, where employees may choose to acknowledge or celebrate with other employees. These types of occasional short department celebrations are permitted, but the use of City funds is not allowed. Examples of these types of events include:
 Birthday celebrations
 Baby showers or new baby congratulations gifts
 Graduation gifts/acknowledgements
 Engagements or wedding showers, gifts or parties
 Holiday parties (Thanksgiving, Christmas, etc) and similar events

The following are allowed exceptions to this policy:
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1. Meals/food purchases necessary for the City’s convenience and provided on City premises where business is normally co nducted. Examples include:

Emergency situations such as natural disasters or significant public safety events, but may also include intra-departmental meetings or training sessions, where the meeting or training session continues during the meal period and the employees are not permitted to leave the premises of the meeting site.

Meals should be provided only to facilitate the effective and efficient operations of the department involved.

2. Off-site business meals for a clear business reason. When submitted f or reimbursement or paid with a CAL-Card, an itemized receipt is required along with documentation showing the business purpose, attendees (must include non-City participants), and location. Restaurant business meals solely between City employees are not reimbursable except when the business meal has been approved by the City Manager (City Manager must sign Food and Meals Expense Documentation Form AP521-1).

3. Refreshments for breaks and off-site lunches for Interview Panel which include external members.

4. Food for City Council Meetings and Advisory Committees.

5. Meetings with the public, including Community/Customer partnerships.

6. Lunches with Councilmembers are limited to Department Directors.

7. Food for City sponsored employee events.

8. Meal allowance for Local 1021 employees under MOU Section D1 and Local 21 employees under MOU Article 8, Section 72.

9. Meals/food during travel – Refer to AP 508 Travel Expense Policy and Procedure.

10. The City will centralize the purchase of coffee and soft drinks in bulk on a quarterly basis for the purpose of serving guests to the City. If the supply is depleted before the end of the quarter because of extensive employee use, then employees will have to supply their own beverages until the start of the new quarter when the supply will be replenished.

Requests for food other than meetings listed above must be approved, in writing, by the City Manager.

C. Required Documentation
Food purchased by the City in conjunction with its official business or for City sponsored events must include an itemized receipt along with documentation 314

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showing the purpose of business being conducted, and a list of attendees and affiliation. Meals shou ld be appropriate and consistent with the maintenance of a reasonable living standard.

Please attach required documentation to Food and Meals Expense Documentation Form (AP 521-1).

D. Authorization
The Department Director shall provide approval for all food purchases for City sponsored functions prior to the cost being incurred.

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POLICY: Travel Expense Policy and Procedure
ESTABLISHED: August 25, 1999
RESOLUTION NO.: Not Applicable; DATE: Not Applicable
XX.XIX. Travel Expense Policy and Procedure
A. Purpose
To ensure that uniform and standard procedures are followed which are consistent, comprehensive and explicit for approving all expenditures and the reimbursements to City employees for travel and business expenses incurred in connection with service performed on behalf of the City of Richmond.

1. Authorization and Approval Levels
Before incurring any expense(s), preapproval is required and mandatory for all City of Richmond employees for the purpose of business travel, training and the travel associated with the training by submitting a completed Request for Travel/Training Form (AP 508-2) with all required approval signatures. An event (i.e., training, workshop, conference, etc.) informational brochure or flyer with detailed information must be attached to the Request for Travel/Training Form (AP 508-2).
a) Employees

Approvals are as follows:
(1) Approval for travel/training in California (including within the local Bay Area) or Nevada is to be given by immediate supervisor and the Department Head.
(2) Approval for travel/training outside of California and Nevada must be approved by the City Manager along with the approvals in (1) above.
(3) Approval for international travel/training must be approved by City Council along with the above approvals in (1) and (2).

These approvals may be delegated to an authorized designee who shall be at the department or division director level or above. The Travel/Training Expense Report Form for Reimbursement (AP 508 -1) and the International Travel/Training Expense Report Form for Reimbursement (AP 508-4), use of determined by ultimate destination of travel, will henceforward be referred to as the Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4).

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b) City Manager, City Attorney and City Clerk
Travel and/or training expenses for the City Manager, City Attorney and City Clerk are subject to the approval by the Mayor. City Council approval is required for international travel.

If an employee incurs a travel expense without prior authorization as set forth in this Travel Expense Policy and Procedure, and later seeks reimbursement for such expense, such expense may not be reimbursed unless employee demonstrates good cause, as determined by required approvers in the Request for Travel/Training Form (AP 508-2).

If an e mployee uses a City of Richmond issued credit card for any travel - related expenses, such expenses shall not be eligible for reimbursement.

2. Compliance Responsibility
All employees who attend trainings and/or travels on behalf of the City of Richmond are res ponsible for understanding and adhering to this policy.

Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508-4) will be periodically reviewed to determine compliance with City policy and procedure. The Accounts Payable Division is resp onsible for processing Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508-4) for payment.

Elected officials and employees required to file Form 700 should note that some expenditure reimbursements may be subject to reporting under t he Political Reform Act and other laws. All documents regarding agency travel expenditures are public records subject to disclosure under the Public Records Act.

3. Policy Change and Disputes
Any dispute regarding interpretation of this policy and procedure, as well as any serious non -compliance with this policy and procedure, is to be referred to the appropriate approval authority as designated in this policy Section I -A Authorization and Approval Levels.

4. Reporting Requirements
All reimbursable expenses incur red for travel must be reported on the Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508- 4) within ten (10) business days upon return from travel. The Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508-4) must have original itemized receipts attached and a copy of the fully executed Request for Travel/Training Form (AP 508-2).

For credit card usage, the original itemized receipts and a copy of the fully executed Request for Travel/Training Form (AP 508-2) must be submitted with the monthly credit card reconciliation along with all other required 317

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documentation as outlined in the City of Richmond credit card policies and procedures. For guidelines on City of Richmond credit card policies and procedures, please se e the Finance Department’s Credit Card manual provided to employees with credit card authorization.

B. Policy
The City of Richmond shall reimburse employees for reasonable and necessary travel expenditures incurred in the course of conducting the business of the City.

When incurring expenses on behalf of the City, employees must recognize that the City is a public institution and that expenses involve the use of public funds. Adequate substantiation of expenditures is required. The nature and amount of expenses incurred may vary according to the objectives of the assignment, circumstances and location. Good judgmen t in the appraisal of the reasonableness of expenses is required by each individual incurring the expenses and the supervisory level approving the Request for Travel/Training Form (AP 508 -2) and the Travel/Training Expense Report Form for Reimbursement (AP 508-1 and AP 508-4).

Non-business (personal) items are not reimbursable. Employees must pay for items separately and obtain an original itemized receipt for only business items expenses for the purpose of reimbursement. Business expenses, to the extent t hey are lavish or extravagant, as determined by the applicable approving authority, are not regarded as reasonable and are not reimbursable. If an employee uses a City of Richmond issued credit card for any travel/training related expenses, such expenses s hall not be eligible for reimbursement. All reimbursable expenses paid with personal funds must be reported on the Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508 -4) as outlined in Section I -D Reporting Requirements of this policy.

C. Travel Expenses
All requests to travel on City business outside the continental United States shall be approved in advance by resolution of the City Council. All requests to travel within the San Francisco Bay Area shall be approved by the appropriate de partment director.

All requests to travel on City business within the State of California, but outside of the San Francisco Bay Area counties of Alameda, Contra Costa, Marin, Napa, Sacramento, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma, shall be approved in writing by the department director for staff within his or her department by submitting a Request for Travel/Training Form (AP 508 -2). All requests to travel outside of the State of California or Nevada but within the continental United States, shall be approved by the City Manager’s signature on the Request for Travel/Training Form (AP 508 -2). The City Manager shall provide a written report to the City Council of all City travel outside of the State of California or Nevada, but within the continental United States upon request.

Travel expenses include air and ground transportation, City automobile usage, personal automobile usage, car rentals for business purposes, meals and tips, lodging, non -meal tips, telephone, fax, parking, tolls and other related expenses. 318

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Original itemized receipts are required for all expenses. For City of Richmond credit card usage during travel/training, original itemized receipts must be attached to a copy of the fully executed Request for Travel/Train ing Form (AP 508 -2) for submission with the monthly reconciliation. Original itemized receipts for reimbursement of personal funds used to pay for expenses during approved travel/training must be submitted with the Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508 -4) within ten (10) business days upon return from travel. See Section I-D Reporting Requirements in this policy.

International expenses must be reported on the International Travel/Training Expense Report Form for Reimburse ment (AP 508 -4) with attachments of original itemized receipts for reimbursements of personal funds, a printout of the currency exchange rate that concurs with the date of the receipt, and a copy of a fully executed Request for Travel/Training Form (AP 508 -2) within ten (10) business days upon return from travel. The currency rate is available at www.fiscal.treasury.gov.

1. Transportation
a) Air Travel
Air travel will be arranged and paid by the employee’s department with the City of Richmond credit card. City-approved air travel shall be routed through the airport that is the most practical.

City departments shall make their own travel reservations in accordance with Section V Travel Advance of this policy. Every effort should be made to travel at the lowest cost. The class of air travel shall be coach only.

The class of ticket is to be utilized as issued. If a lesser cost ticket is substituted for any reason, the cost savings is to be remitted to the City. b) Automobile Travel
With the approval of the department director, employees may drive their own car for their own convenience when a pool car is unavailable.

Reimbursement for mileage driven may not ex ceed the cost of appropriate air fare and related ground transportation. Therefore, the employee should check the cost of air fare versus mileage at the current approved rate before deciding to drive. The current approved rate will be the prevailing IRS mileage allowance rate available at www.irs.gov or by contacting the Finance Department. For purposes of mileage reimbursement, a printout of an internet map from the employee’s City of Richmond assignment site address or home address, whichever is the short est distance, to the designation of the training round trip to determine number of miles must be attached and submitted with the Travel/Training Expense Report Form for Reimbursement Form (AP 508-1 or AP 508-4). If automobile travel is selected for the emp loyee’s convenience, the time beyond normal air travel is not chargeable to the City’s time.
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The City does not provide primary insurance to protect an employee who uses his/her privately -owned vehicle on City business. No employee shall operate his/her pr ivately-owned vehicle on City business without being in compliance with the provisions of the California Vehicle Code (CVC) §16050-16058 and meet the minimum requirements of California Insurance Code §11580. Employees shall have proof of financial responsibility in their possession at all times while operating his/her privately-owned vehicle on City business.

For some designated employees receiving a monthly auto allowance for use of their personal car for City business, reimbursement for mileage will only be made on that portion of the trip outside a 60 mile radius (120 miles total) of the employee’s regular assignment site or home address, whichever is the shortest distance. Therefore, 120 miles should be deducted from the total miles driven per trip when calculating reimbursable mileage. Please refer to Policy Number AP 107 - “Policy on Driving on City Business and Use of City Vehicles.”
c) Car Rental
When traveling, vehicles should be rented with the company offering the best price. Government rates may be available and should be requested when renting a vehicle. Only compact or mid -size vehicles should be rented. The rental of a vehicle should only be for the approved dates indicated on the Request for Travel/Training Form (AP 508-2).

Employees should purchase the Collision Damage Waiver (CDW) if their own personal insurance does not provide coverage. Employees should purchase additional liability, medical payments and uninsured motorist insurance offered by the rental agency. Employees are covered by Workers Compensation when traveling on business.

Original itemized receipts of all rentals of vehicles must be submitted within ten (10) business days upon return from travel and reported on a Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4) along with a copy of a fully executed Request for Travel/Training Report Form (AP 508 -2) when the expense was paid with personal funds. Original itemized receipt for payment with the City of Richmond credit card must be attached to the monthly cred it card statement reconciliation along with a copy of a fully executed Request for Travel/Training Form (AP 508-2).
d) Public Ground Transportation
Taxi, airport limousine, bus, BART or other public transportation expenses incurred for a business -related purpose is reimbursable and must be submitted and reported on the Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4) with original itemized receipts attached. Payments made with the City of Richmond credit card 320

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must abide by reporting requirements outlined in Section I-D Reporting Requirements in this policy. Prudent business judgment should be applied in determining the means of public transportation to be used. e) Parking and Tolls
Parking and tolls incurred for business trips are reimbursable.

2. Meals
Meal costs within the following guidelines, as well as normal gratuities and taxes, are reimbursable when incurred while on City business. Original itemized receipts are required for all meal expenses. If a meal expense is incurred for other persons for a business-related purpose, this should be reported as a business meeting expense as appropriate and the purpose and parties involved should be stated. Reimbursement for alcoholic beverages is prohibited. Request separate original itemized receipts for busin ess items for reimbursement from expenses made for personal items. See the Employee Meal and Food Purchase Policy (AP 521). Separate original itemized receipts should also be requested for expenses paid with personal funds to be reimbursed from expenses paid with City of Richmond credit card.

Travelers are expected to consume any meals provided at the trainings, conference, seminar, etc. and employees will not be reimbursed for meals covered by the registration fee.

City of Richmond credit card usage or reimbursements for meal and incidental expense (M&IE) must not exceed the daily allowance as set forth of $79.00 taken from the U.S. General Services Administration ( www.gsa.gov) for the San Francisco Area (highest rate), and must be reported and submitted on the Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508-4) or with monthly credit card reconciliation.

The meal and incidental expense (M&IE) rate is effective eachfor the fiscal yeacalendar year beginning January 1.r 2023 (www.gsa.gov) The rates are subject to change in accordance to U.S. General Services Administration per diem rates for San Francisco (highest rate) that are set each fiscal year and made availabl e by October 1 of each year.

Reimbursements are at the current fiscal year rate of the occurrence of the expense.

3. Lodging
Actual lodging expense for accommodations (in suitable quality facilities at the lowest price available) incurred for business purpose s is reimbursable.

Employees should inquire about and utilize any available discounts and group rates. The Travel/Training Expense Report Form for Reimbursement (AP 508- 1 or AP 508-4) is required as outlined in Section I -D Reporting Requirements for all lo dging expenses to be reimbursed The amount reported for lodging expenses should not include meals, personal telephone calls, etc., which 321

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should be listed separately in the appropriate sections on the employee’s Travel/Training Expense Report Form for Reimb ursement (AP 508 -1 or AP 508-4).

Lodging should only be arranged by the department when:
• traveling outside of the Bay Area Counties as outlined above in Section III – Travel Expenses.

OR
• commuting to and from said training is unreasonable or a hardship as determined by Department Head.

Lodging must be approved before incurring the expense.

4. Non-meal Tips
Reasonable non-meal tips such as bellhop and shuttle driver are reimbursable and must be reported on the Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4).

5. Telephone/ Fax/WIFI
All business communications such as telephone, fax, and/or WIFI use for work purposes are reimbursable.

6. Miscellaneous Travel Expenses
Expenses that are personal, such as toiletry articles, magazines, etc., are not reimbursable.

7. Business Meals
A business lunch or other meal is reimbursable if the meeting is for an actual business purpose with City tenants or potential tenants, suppliers, or other City business associates. It is the City’s policy not to pay restaurant vendors directly for charges incurred by individual City employees. The City employees are responsible for paying the charges directly to restaurant vendors and to obtain reimbursement through the submission of the Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508 -4) as outlined in this policy (Section I -D Reporting Requirements). Restaurant business meals solely between City employees are not reimbursable. Reimbursement for alcoholic beverages is prohibited. The same guidelines and reporting requirements are applicable when using the City of Richmond credit card for business meals. For more information, see Employee Meal and Food Purchase Policy (AP 521).

D. Employee Training Program
As outlined in the City’s Training Policy (AP 309) and Section I -A Authorization and Approval Levels of this policy, attendance at conventions or seminars at the City’s expense requires the prior approval on a Request for Travel/Training Form (AP 508- 322

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2). Travel expenses relating to employee training must be reasonable, as outlined in Section III Travel Expenses of this policy, including transportation, lodging, and meals not included in trainings, conferences, seminars, etc. The Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508-4) for expenses and detailed explanation of the nature of the expenses are required to be submitted within ten (10) business days upon return from travel.

Payment of convention and seminar registration fee s directly to the event sponsor, should be made in advance utilizing procedures as outlined in the following Section V Travel Advance. Also, whenever possible, discounted advance payments for related lodging should be sought and utilized.

E. Travel Advance
No blanket per diem will be issued.

The City of Richmond will pay in advance for registration, lodging, and/or airfares. All other expenses paid with the employee’s personal funds will be reimbursed after the submittal of a Travel/Training Expense Report Fo rm for Reimbursement (AP 508 -1 or AP 508-4) with the appropriate original itemized receipts and information attached.

F. Reporting and Reimbursement of Travel Expenses
All expenditures covered within this policy must be documented on a Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4), which is attached to this policy, in order to obtain reimbursement. This report is important for the employee’s reimbursement of expenses and to provide adequate documentation of the expenses for City accounting purposes.

A Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4) should be completed and submitted within ten (10) business days after return from any business trip in which expenses were incurred. The Accounts Payable D ivision will normally process reimbursements within fifteen (15) business days of submission, provided that the Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4) is submitted with appropriate documentation and approval. The Trave l/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508 -4) is a fillable form available online. The Travel/Training Expense Report Form for Reimbursement (AP 508 -1 or AP 508 -4) should cover the travel period and not exceed ten (10) days for su bmission upon return from travel. Each page must be hand signed in ink by the employee submitting the report.

Each Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508- 4) must be submitted with required documentation. Amounts charged to the City credit card must be reported with the monthly credit card reconciliation. Original itemized receipts, a paid invoice, or other documentary evidence should disclose the amount, date, place, and nature of the expenditure and be attached to eithe r the Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4) or the monthly credit card reconciliation.
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1. Substantiation
Travel/Training Expense Report Form for Reimbursement (AP 508 -1or AP 508-4) shall provide the funding accounting co de(s) and the following information for the type of expenses incurred:
a) Travel
(1) Date of departure and return.
(2) Actual cost of each separate item to be reimbursed, except that incidental items of a similar nature (taxi, bus and BART fares) may be aggregated on a daily basis.
(3) Cities or other locations visited.
(4) Business purposes or nature of the business benefit expected, or business relationship of individuals visited.
(5) Allocation of transportation and related costs for any portion of the trip that is clearly personal.

b) Requests for Travel/Training
All travel/training must be preapproved before incurring expenses by completing a Request for Travel/Training Form (AP 508 -2), obtaining required approval signatures, and attaching any and all required documents.

A copy of the fully executed Request for Travel/Training Form (AP 508- 2) must accompany the Travel/Training Expense Report Form for Reimbursement (AP 508-1 or AP 508-4) or the City of Richmond monthly credit card statement reconciliation along with all requi red documentation.

2. Failure to Comply with Procedures
Failure to comply with any component of the above policy and procedure may result in disciplinary action.

Under state law, use of public resources or falsifying expense reports is a violation of state law and/or this policy and may result in any or all of the following:
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(1) Loss of reimbursement privileges.
(2) A demand for restitution to the City of Richmond.
(3) Civil penalties of up to $10,000 per day and three times the value of the resources used.
(4) Prosecution for misuse of public resources.

G. Arizona Travel Ban – Resolution No 55-10
The City of Richmond established a policy to prevent City Funded travel to Arizona while on City business until SB 1070 passed into law in Arizona is repealed.

Exceptions to the travel prohibitions may be granted by City Council.

POLICY: FasTrak Policy & Procedures
ESTABLISHED: August 20, 2012
RESOLUTION NO.: Not Applicable; DATE: Not Applicable
XXI.XX. FasTrak Policy & Procedures

A. Purpose
City employees may be required to travel over Bay Area bridges to perform City business or to represent the City of Richmond. Beginning January 1, 2021, all Bay Area toll bridges switched to automatic toll collection. Drivers must have a FasTrak toll tag mounted to the vehicle’s windshield to pay the lowest tolls at Bay Area bridges. Departments that travel over Bay Area bridges and wish to open a FasTrak account are required to obtain Director of Finance approval.

B. Policy
This policy provides direction on the procedure for opening a FasTrak account and obtaining toll tags to pay for tolls at Bay Area bridges. The City is allowing the use of FasTrak toll tags for City business in City Vehicles. Toll tags may not be obtained for non-City owned vehicles.

No City owned vehicle is exempt from toll fees, with the exception of Public Safety vehicles responding to an emergency situation. A personal transponder does not relieve the offending driver of any violations incurred to the City in the event that the FasTrak toll tag does not register 'Valid' when entering the toll area.

The ticketing agency for FasTrak traces offending vehicle ownership through the State vehicle registration system (administered by the Department of Motor Vehicles), and mails a Notice of Violation notification to the registered owner of the evading vehicle. In these cases, the offending driver will be traced through the 325

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City's car pool sign out or assignment sheets. The driver shall be held personally responsible for full payment of the violation.

City vehicles without toll tags will have a picture taken of the license plate and a bill will be forwarded to the City for payment. This is not the preferred method from the City’s perspective since there is a 21 day window to make payments or a late fee will be assessed. This 21 day window includes mailing the bill, forwarding the bill to the appropriate department and paying the bill. In the event that the City receives a fine, it is the department’s responsibility to pay the FasTrak fine within the 21 day window to avoid any additional fines. Setting up an account for use with FasTrak toll tags is the preferred method for crossing Bay Area bridges.

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Process for Setting Up a FasTrak Account – The department must obtain Director of Finance approval to open a FasTrak account. When requesting approval, state:

 Business purpose to obtain the toll tags
 Cal-Card holder whose card will be linked to the FasTrak account and who will monitor the program to ensure that tolls are for a business purpose.  Number of toll tags that will be obtained for the department.

A list of approvals will be maintained by the Purchasing Division in the Finance Department.

Personally Owned Vehicles – Only actual toll charge reimbursement can be requested on an Expense Report. A request for reimbursement may be submitted through a Travel Expense Report as outlined in Policy Number AP508, "Travel and Expense" or in Policy Number AP 510 "Petty Cash". Any late fees, fines, etc. will be the responsibility of the offending individual, not the City.

All departments shall ensure that a FasTrak toll tag is appropriately placed inside the vehicle if an employee is crossing Bay Area bridges for a business purpose.

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POLICY: Accounts Payable ACH Policy
ESTABLISHED: June 12, 2023
RESOLUTION NO.: Not Applicable; DATE: Not Applicable

XXII.XXI. Accounts Payable ACH Policy
A. Purpose
To establish proper ACH procedures to ensure accuracy and safety to avoid fraudulent activity.

B. Policy
The Finance Department, Accounts Payable Division, is responsible for ensuring that ACH account change request, ACH set up request are verified and signed off by Manager/Supervisor before requesting purchasing to make changes.

C. Procedure

1. Accounts Payable
a) Verifying vendor request
(1) Accounts Payable will ensure each request to update vendor information regarding ACH are legitimate by ensuring the email received is from proper vendor email address. This can be obtained by checking to see if the email address matches the email address in Munis or by verifying email address from older invoices for the vendor.
(2) Once the initial review is done, AP will provide vendor with Direct deposit form to change or set up ACH payment method.
(3) Vendor must mail the ACH form to Accounts Payable along with a voided check or voided deposit ticket. If those are not available a letter from their bank on their letterhead, which must include the name on the account, ABA routing number and account number as well as the bank representative contact information and signature.
(4) The final step would be to hand over all the proper backup documents to the Accounting Manager/Supervisor and have them verify the change request. They will conduct a secondary check by calling the vendor with contact information in Munis to verify that the change was requested. After that information is verified by the Manager/Supervisor they will sign off and initial before handing over to Accounts Payable.

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(5) Once forms are received back and signed from
Manager/Supervisor, AP will provide the AC H forms to
purchasing to make the required changes. Purchasing will make sure that all changes are signed off by the Manager/Supervisor before making any changes.

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XXIII.XXII. Glossary

Actuarial Cost Method: The technique used to allocate costs to various time periods.

Actuarial Accrued Liability (AAL): The portion of the Present Value of Projected Benefits that is attributed to past years of service by the Actuarial Funding Method. The AAL serves as a funding target at any given point in time.

Actuarial Value of A ssets: The smoothed value of assets used by the actuary in the actuarial valuation, for the purpose of reducing the impact of market fluctuations on the employer’s contribution rate.

Agencies: Federal agency securities and/or Government-sponsored enterprises.

Annual Comprehensive Financial Report (ACFR) : The official annual report for the government agency. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP . It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

Bankers' Acceptance (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Benchmark: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio's investments.

Bid: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

Broker: A broker brings buyers and sellers together for a commission.

Certificate of deposit (CD): A time deposit with a specific maturity evidenced by a Certificate.

Large-denomination CD's are typically negotiable.

Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Als o refers to securities pledged by a bank to secure deposits of public monies.

Data Broker: Means either 1) the collection of information, including personal information about consumers, from a wide variety of sources for the purpose of reselling such infor mation to their customers, which include both private -sector businesses and government agencies; 2) the aggregation of data that was collected for another purpose from that for which it is ultimately used.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

Delivery versus Payment (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securitie s with an 330

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exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Diversification: Investment contained within the portfolio will be diversified by security type, institution and maturity.

Entry Age Method: An Actuarial Cost (or Funding) Method that determines the plan's Normal Cost as a level percentage of pay over the working lifetimes of plan members.

Experience Gains and Losses : The difference between the experien ce anticipated by the actuarial assumptions and the plan's actual experience during the period between valuations. If actual experience is financially more favorable to the Plan, it is a Gain, (e.g., higher investment return than expected). If actual exper ience is financially less favorable to the Plan, it is a Loss, (e.g., lower investment return than expected).

Extreme Vetting: Data mining, threat modeling, predictive risk analysis, or other similar services.

Federal Deposit Insurance Corporation (FDIC) : A federal agency that insures bank deposits, currently up to $250,000 per deposit.

Federal Home Loan Banks (FHLB) : Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank.

Federal National Mortgage Association (FNMA) : FNM A, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mort gage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

Federal Reserve System : The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.

Fossil Fuel: A fuel formed by natural processes, such as anaerobic decomposition of buried dead organisms, co ntaining organic molecules originating in ancient photosynthesis that release energy in combustion such as: coal, oil, and gas reserves as measured by the gigatons of carbon dioxide that would be emitted if those reserves were extracted and burned.

Funded Ratio: A measure of the ratio of plan assets to the Actuarial Accrued Liability (funding target) of the Plan. Plan assets can be the Market Value of Assets or the Actuarial Value of Assets.

Government National Mortgage Association (GNMA or Ginnie Mae) : Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. The security holder is protected by full faith 331

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and credit of the U.S. Government. Gin nie Mae securities are backed by the FHA, VA or FHA mortgages. The term "pass-through" is often used to describe Ginnie Maes.

Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

Local Government Investment Pool (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

Market Value: The price at which a security is trading and could presumably be purchased or sold.

Market Value of Assets : The total fair value of fund assets as reported in the Plan’s financial statements.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

Money Market : The market in which short -term debt instruments (bil ls, commercial paper, bankers' acceptances, etc.) are issued and traded.

Normal Cost : The portion of the Present Value of Projected Benefits that is attributed to the current year by the Actuarial Funding Method. Also referred to as the Annual Benefit Cost.

Offer: The price asked by a seller of securities. (When you are buying securities , you ask for an offer.) See Bid.

Portfolio: Collection of securities held by an investor.

Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

Prudent Person Rule: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state -the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

Rate of Return : The yield obtainable on a security based on its purchase price or its current market price. This interest may be amortized yi eld to maturity on a bond or the current income return.

Sanctuary City: A municipal jurisdiction that limits its cooperation with the national government's effort to enforce immigration law.

Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. 332

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Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities & Exchange Commiss ion: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

Securities and Exchange Commission (SEC) Rule 15C3-1: See Uniform Net Capital Rule.

Treasury Bills: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

Treasury Notes : Medium -term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

Unfunded Actuarial Accrued Liability (UAAL ): The portion of the Actuarial Accrued Liability not covered by plan assets. It is calculated by subtracting the Actuarial Value of Assets from the Actuarial Accrued Liability.

Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital r ule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

United States Immigration and Customs Enforcement (ICE) : A federal law enforcement agency under the U.S. Department of Homeland Security. ICE's stated mission is to protect America from the cross-border crime and illegal immigration that threaten national security and public safety.

Yield: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
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RESOLUTION NO. ______

A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND,

CALIFORNIA ADOPTING UPDATES TO THE CITY OF RICHMOND'S

FINANCIAL POLICIES AND ADOPTING THE UNCLAIMED FUNDS POLICY

WHEREAS, the City of Richmond (the "City") is a charter city that operates under the Council-Manager form of government for the purposes of providing a full range of municipal services including police and fire protection; construction and maintenance of highways, streets and infrastructure; library services; storm water and municipal sewer systems; a wastewater treatment facility; and the administration of recreational activities and cultural events; and

WHEREAS, the City also operates the Richmond Memorial Convention Center and the Port of Richmond; and

WHEREAS, the City of Richmond (the "City") is required to maintain and periodically update the City's Financial Policies consistent with the standards set forth by the California Government Code, Government Finance Officers Association (the “GFOA”) recommended best practices, and standards set forth by the California Municipal Treasurers Association (the "CMTA") Certification Program; and

WHEREAS, the City has reviewed the City’s Financial Policies as attach ed hereto as Exhibit A, that includes the Guiding Fiscal Policy, OPEB Funding Policy, Pension Funding Policy, Cash Reserve Policy, Debt Policy, Grant Management Policy, Investment Policy, Unclaimed Funds Policy, Purchasing Policy, Employee Meal and Food Po licy, Travel Expense Policy and Procedure, FasTrak Policy and Procedures, and Accounts Payable ACH Policy; and

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Richmond, California, hereby adopts updates to the City's existing OPEB Funding, Pension Funding, Travel Expense Policy and Procedure, Debt Policy, and Grants Management Policy.

BE IT FURTHER RESOLVED that the City Council of the City of Richmond, California, hereby adopts the City’s new Unclaimed Funds policy.

BE IT FURTHER RESOLVED that a copy of the updated and new City of Richmond policies are attached hereto as Exhibit A.

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

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EXHIBIT A
Reso. No. _____

Page 2 of 141 ends

Richmond City CouncilFebruary 18, 2025

Richmond City Council
February 18, 2025