Agenda — Richmond City Council, April 15, 2025 (part 3 of 6)

April 15, 2025

Economic Development

DATE: April 15, 2025
TO: Mayor Martinez and Members of the City Council
FROM:

Nannette Beacham, Economic Development Director
Craig Murray, Development Project Manager II

Subject:

District Office Lease Agreement with U.S. Congress
Member John Garamendi’s Office
FINANCIAL IMPACT: Per the lease terms, the United States House of Representatives will pay the City $13,689 per year, for a total of $27,378 for the two-year term of the lease.
(01917090-362801)

PREVIOUS COUNCIL
ACTION:

December 6, 2022

STATEMENT OF THE
ISSUE:

Congressman John Garamendi requested that the City of
Richmond consider leasing approximately 845 square
feet of one office, four cubicles, and a conference room at 440 Civic Center Plaza as his Congressional District Office. City staff is requesting approval of a standard United States House of Representative’s District Office lease agreement for this purpose .

RECOMMENDED ACTION:

APPROVE a lease with United States House of
Representatives to allow Congressman John Garamendi
to utilize approximately 845 square feet of office space, four cubicles, and a conference room on the second floor of 440 Civic Center Plaza as his Congressional District Office, at a rate of $1,140.75 per month ($13,689 per
year), for a two-year term from January 3, 2025, through January 2, 2027 – Economic Development (Craig Murray
AGENDA
REPORT
370

Page 2 of 2 ends

April 15, 2025
510-307-8188). This item was continued from the
March 25, 2025, meeting.

DISCUSSION:

On December 6, 2022, City Council approved a two-year lease with U.S. Congressman John Garamendi for office space within the 440 Civic Center Plaza building and in space previously occupied by Congressman DeSaulnier (Attachment 1).

Congressman Garamendi has again requested the opportunity to lease approximately 845 square feet of the same office space (Attachment 2). This space serves as an excellent, central location from which to connect with the Richmond community and serves the West County area. The Congressman’s staff would utilize space on the second floor of 440 Civic Center Plaza, adjacent to the reception area. The space includes one office space, four cubicles, conversion of one of the conference rooms for office space, and shared use of conference and break rooms.

Under the lease, the Congressman would pay rent of $1,140.75 per month ($1.35 per square foot) for a total of $13,689 annually. The term would be consistent with the two- year Congressional term of office. The base rent was originally calculated by staff researching similar office space rates in the City of Richmond on the commercial real estate marketplace website Loopnet. At the time of an updated lease, available rental locations were not comparable of quality and lease rates. City staff determined that the previous rental rate of $1.35 per square foot remains fair market value and supports this base rent rate.

DOCUMENTS ATTACHED:

Attachment 1 – Original Lease between the City of Richmond and United States House of Representatives
Attachment 2 –PROPOSED Lease between the City of Richmond and United States House of Representatives

371
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 372
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 373
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 374
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 1/6/2023
DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 375
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 376
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 377
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 378
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 379
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 380
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 Thomas K. Butt
MayoryMayor
1/10/2023
381
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DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 383
DocuSign Envelope ID: AD1EC917-295A-469E-80B6-1D54BF436869 DocuSign Envelope ID: 88D98B48-895E-40FF-9E51-AEC0596A53F2 384
385
386
V.S. Jfouse of �presentatives
Washington, D.C. 20515
District Office Lease Amendment
(Page 2 of 2 - 119th Congress)
IN WITNESS WHEREOF, the paities have duly executed this District Office Lease Amendment as of the first date written below by the Lessor or the Lessee.

City of Richmond
Print Name of Lessor/Landlord
By:

Lessor Signature
Name: Eduardo Martinez
Title: Mayor
Date
John Garamendi
Date
This District Office Lease Amendment must be accompanied with an executed District Office Lease Attachment.
'
387
388
389
390
391
392
393
394
395
April 15, 2025

Finance Department

DATE: April 15, 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 January 2025
FINANCIAL IMPACT: None.

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 January 2025.

RECOMMENDED ACTION:

RECEIVE the City’s Investment and Cash Balance
Report, Monthly Overtime Reports, and Documentary
Transfer Tax Report for the month of January 2025 –
Finance Department (Andrea Miller 510-620-6740).

AGENDA
REPORT
396
April 15, 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 53 646 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 536 01 and permitted according to the City of Richmond’s Investment Policy updated December 3, 2024.

This investment report reflects the additional rest rictions 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.

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 M arket 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.

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 397
April 15, 2025
maintains a Section 115 C ombination 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 January 2025 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 February 2025, the City received the documentary transfer tax data report from the County which identified that the tax revenue for January 2025 would total $ 273,946 (Attachment 4).

DOCUMENTS ATTACHED:

Attachment 1 – Investment and Cash Balance Report for January 2025 Attachment 2 – Overtime Report for January 2025
Attachment 3 – Overtime Public Safety Report for January 2025 Attachment 4 – Documentary Transfer Tax Report for January 2025 398
399
400
401
402
403
404
405
406
407
408
Overtime Report for January 2025 (Attachment 2)
PERIOD 7, JANUARY 2024
58% Threshold

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
GENERAL FUND (summary)
400031 OVERTIME/General 1,903,320 51,851 1,955,171 1,273,790 681,381 65% 400032 OVERTIME/Sworn 11,190,934 - 11,190,934 6,766,965 4,423,969 60% TOTAL GENERAL FUND 13,094,254 51,851 13,146,105 8,040,755 5,105,350 61% Overtime By Department

CITY CLERK
Administration 25,000 - 25,000 12,701 12,299 51%

CITY ATTORNEY -
Administration - - - 80 (80) 100%

COMMUNITY DEVELOPMENT
General Plan Code Enforcement - 20,000 20,000 3,345 16,655 17%

FINANCE
Payroll 30,000 - 30,000 10,295 19,705 34% Accounts Payable - - - 317 (317) 100% Revenue Collection 5,000 - 5,000 515 4,485 10% TOTAL FINANCE 35,000 - 35,000 11,128 23,872 32%

HUMAN RESOURCES
Administration - - - 269 (269) 100% POLICE
Administration 490,227 - 490,227 345,345 144,882 70% CAD Dispatch System 751,511 - 751,511 612,830 138,681 82% RM System 4,000 - 4,000 3,195 805 80% Parking Enforcement 4,000 - 4,000 6,907 (2,907) 173% Sworn Administration 6,708,965 - 6,708,965 3,984,188 2,724,777 59% TOTAL POLICE 7,958,703 - 7,958,703 4,952,465 3,006,238 62%

Page 1 of 4409 ends

Overtime Report for January 2025 (Attachment 2)
58% Threshold

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 2,754,977 1,697,895 62% Sworn Prevention 29,097 - 29,097 27,800 1,297 96% TOTAL FIRE 4,483,969 - 4,483,969 2,784,788 1,699,181 62%

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

PUBLIC WORKS & ENGINEERING SVCS
Stationary Engineers 12,000 - 12,000 7,072 4,928 59% Building Services 5,000 - 5,000 5,515 (515) 110% Utility Sections 132,000 (4,000) 128,000 48,168 79,832 38% Electric 25,000 - 25,000 19,637 5,363 79% Parks & Landscape Admin 200,000 - 200,000 84,302 115,698 42% 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 30,163 26,284 53% Traffic Signs & Lines 4,885 14,000 18,885 13,721 5,164 73% Equipment Services 20,000 - 20,000 8,434 11,566 42% Abatement Services 50,000 - 50,000 27,603 22,397 55% TOTAL PUBLIC WORKS 527,432 (4,000) 523,432 244,675 278,757 47%

LIBRARY
Library Administration 7,000 18,000 25,000 11,845 13,155 47%

COMMUNITY SERVICES
Recreation Services/Cities of Service - 343 343 343 - 100% Recreation Administration 400 356 756 756 - 100% Booker T Center 100 - 100 107 (7) 107% 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%

Page 2 of 4410 ends

Overtime Report for January 2025 (Attachment 2)
58% Threshold

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
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 2,007 60% Convention Center 1,500 5,512 7,012 6,002 1,010 86% Plunge 3,500 - 3,500 1,351 2,149 39% TOTAL COMMUNITY SERVICES 16,150 7,851 24,001 17,394 6,607 72%

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 51,851 13,146,105 8,040,755 5,105,350 61%

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 7,947 17,353 31% 1018 RENT PROGRAM 2,500 - 2,500 2,038 462 82% 1050 CR-PLANNING & BUILDING 9,500 - 9,500 2,102 7,398 22% 1050 CR-PLANNING & BUILDING 15,000 - 15,000 4,692 10,308 31% 1055 ENCROACHMENT SVCS 25,000 - 25,000 27,773 (2,773) 111% 1303 KIDS FIRST INITIATIVE - - - 1,285 (1,285) 100% 4001 PORT OF RICHMOND - 100 100 100 - 100% 4003 WASTEWATER ADMINISTRATION - 25,000 25,000 11,782 13,218 47%

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Overtime Report for January 2025 (Attachment 2)
58% Threshold

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
4003 WASTEWATER PRE-TREATMENT 7,500 40,000 47,500 28,548 18,952 60% 4006 STORMWATER - 5,100 5,100 3,172 1,928 62% -
4405 RHA-NYSTROM VILLAGE 11,000 - 11,000 6,453 4,547 59% TOTAL NON-GENERAL FUNDS 115,800 70,200 186,000 96,972 89,029 52%

Page 4 of 4412 ends

Overtime Public Safety Report for January 2025 (Attachment 6) 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 6,708,965 560,788 543,814 584,028 590,943 580,286 631,961 492,367 3,984,188 59.4% 2,724,777 569,169.70 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 4,481,969 367,801 375,737 425,984 419,101 468,811 358,764 366,579 2,782,777 62.1% 1,699,192 397,539.59 FY2024-25 TOTAL 11,190,934 11,190,934 928,589 919,552 1,010,013 1,010,045 1,049,096 990,725 858,946 - - - - - 6,766,965 60.5% 4,423,969 563,913.75

BUDGET ACTUALS TOTAL

Page 1 of 1 ends

413
Documentary Transfer Tax
The City of Richmond receives Documentary Transfer Tax from the County for the sale of properties in Richmond. As one of the most volatile revenue stream s for the City, the amounts received can vary month- to-month from 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. M easure H increased the real estate transfer tax from 0.7 percent to 1.25 percent 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 payment 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 January 2025

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414
County of Contra Costa
555 Escobar Street * Martinez, CA 94553
Recorder (925) 335-7900 * Fax (925) 335-7926
Report Date & Time
02/06/2025 16:23
Action City Split
$4,270.00
$6,902.00
$3,605.00
$959.00
$5,180.00
$3,143.00
$5,075.00
$18,125.00
$3,640.00
$2,450.00
$6,195.00
$5,705.00
$2,975.00
$5,425.00
$2,982.00
$4,340.00
$1,225.00
$5,348.00
$4,900.00
$3,570.00
$5,061.00
$4,900.00
$12,750.00
$4,123.00
$1,925.00
$2,800.00
$4,123.00
$5,250.00
$3,255.00
$4,480.00
$3,605.00
$4,060.00
$5,215.00
$4,585.00
$2,170.00
$5,530.00
$5,166.00
$6,328.00
$3,500.00
$4,725.00
$2,870.00
$2,800.00
$2,800.00
Document No. Recording Date/Time Transaction Date/Time
2025-0000173 01/02/2025 11:08 01/02/2025 11:08:00
For Richmond
Transfer Tax Monthly Detail by City
2025-0000187 01/02/2025 11:23 01/02/2025 11:23:00
2025-0000237 01/02/2025 12:32 01/02/2025 12:32:00
2025-0000342 01/02/2025 14:49 01/02/2025 14:49:00
2025-0001035 01/03/2025 11:33 01/03/2025 11:33:00
2025-0001160 01/03/2025 11:48 01/03/2025 11:48:00
2025-0001202 01/03/2025 12:28 01/03/2025 12:28:00
2025-0001488 01/06/2025 09:47 01/06/2025 09:47:00
2025-0001549 01/06/2025 11:24 01/06/2025 11:24:00
2025-0001611 01/06/2025 12:36 01/06/2025 12:36:00
2025-0001655 01/06/2025 14:10 01/06/2025 14:10:00
2025-0001813 01/07/2025 08:22 01/07/2025 08:22:00
2025-0002057 01/07/2025 12:47 01/07/2025 12:47:00
2025-0002390 01/08/2025 11:48 01/08/2025 11:48:00
2025-0002431 01/08/2025 13:35 01/08/2025 13:35:00
2025-0002646 01/09/2025 09:05 01/09/2025 09:05:00
2025-0002729 01/09/2025 11:40 01/09/2025 11:40:00
2025-0003069 01/10/2025 09:16 01/10/2025 09:16:00
2025-0003299 01/10/2025 12:21 01/10/2025 12:21:00
2025-0003323 01/10/2025 13:28 01/10/2025 13:28:00
2025-0003395 01/10/2025 15:49 01/10/2025 15:49:00
2025-0003512 01/13/2025 09:37 01/13/2025 09:37:00
2025-0003646 01/13/2025 12:34 01/13/2025 12:34:00
2025-0003821 01/14/2025 08:49 01/14/2025 08:49:00
2025-0003982 01/14/2025 11:01 01/14/2025 11:01:00
2025-0003995 01/14/2025 11:16 01/14/2025 11:16:00
2025-0004020 01/14/2025 11:50 01/14/2025 11:50:00
2025-0004034 01/14/2025 12:10 01/14/2025 12:10:00
2025-0004270 01/15/2025 08:51 01/15/2025 08:51:00
2025-0004507 01/15/2025 12:20 01/15/2025 12:20:00
2025-0004575 01/15/2025 13:26 01/15/2025 13:26:00
2025-0004594 01/15/2025 13:38 01/15/2025 13:38:00
2025-0004676 01/15/2025 15:56 01/15/2025 15:56:00
2025-0004826 01/16/2025 10:26 01/16/2025 10:26:00
2025-0005357 01/17/2025 12:57 01/17/2025 12:57:51
2025-0005739 01/21/2025 10:36 01/21/2025 10:36:00
2025-0005783 01/21/2025 11:27 01/21/2025 11:27:00
2025-0005816 01/21/2025 12:29 01/21/2025 12:29:00
2025-0005901 01/21/2025 14:06 01/21/2025 14:06:00
2025-0006362 01/22/2025 12:41 01/22/2025 12:41:00
2025-0006453 01/22/2025 15:24 01/22/2025 15:24:00
2025-0006480 01/23/2025 08:12 01/23/2025 08:12:00
2025-0006512 01/23/2025 08:55 01/23/2025 08:55:00
KRISTIN B. CONNELLY, CLERK-RECORDER
City: Rm Richmond
For Month: January 2025
Attachment 4 - Documentary Transfer Tax for January 2025

Page 2 of 3 ends

415
Action City SplitDocument No. Recording Date/Time Transaction Date/Time $3,220.00
$4,200.00
$5,915.00
$3,402.00
$4,025.00
$4,655.00
$3,885.00
$13,200.00
$6,559.00
$3,500.00
$5,880.00
$12,850.00
$4,620.00
$273,946.00
Total $ of Cap docs 224,400.00$ $273,946.00
Total Count of Cap docs 38 56
2025-0007453 01/24/2025 12:56 01/24/2025 12:56:00
2025-0006790 01/23/2025 13:45 01/23/2025 13:45:52
Count:
2025-0009641 01/31/2025 14:53 01/31/2025 14:53:00
Total For Richmond
Total:
2025-0008566 01/29/2025 10:15 01/29/2025 10:15:00
2025-0009112 01/30/2025 12:58 01/30/2025 12:58:00
2025-0009241 01/31/2025 07:46 01/31/2025 07:46:00
2025-0007968 01/28/2025 07:41 01/28/2025 07:41:00
2025-0008269 01/28/2025 14:40 01/28/2025 14:40:00
2025-0007532 01/24/2025 14:44 01/24/2025 14:44:00
2025-0007771 01/27/2025 11:01 01/27/2025 11:01:00
2025-0007925 01/27/2025 14:19 01/27/2025 14:19:00
2025-0007040 01/23/2025 15:31 01/23/2025 15:31:00
2025-0007339 01/24/2025 10:52 01/24/2025 10:52:00
Attachment 4 - Documentary Transfer Tax for January 2025

Page 3 of 3 ends

416
April 15, 2025

Finance Department

DATE: April 15, 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 February 2025
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 February 2025.

RECOMMENDED ACTION:

RECEIVE the City’s Investment and Cash Balance
Report, Monthly Overtime Reports, and Documentary
Transfer Tax Report for the month of February 2025 –
Finance Department (Andrea Miller 510-620-6740).

AGENDA
REPORT
417
April 15, 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 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 on 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 April 2025.

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.

418
April 15, 2025
The City is allowed to pre-fund the City’s future 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 February 2025 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 March 2025, the City received the documentary transfer tax data report from the County which identified that the tax revenue for February 2025 would total $412,343 (Attachment 4).

DOCUMENTS ATTACHED:

Attachment 1 – Investment and Cash Balance Report for February 2025 Attachment 2 – Overtime Report for February 2025
Attachment 3 – Overtime Public Safety Report for February 2025 Attachment 4 – Documentary Transfer Tax Report for February 2025 419
420
421
422
423
424
425
426
427
428
429
Overtime Report for February 2025 (Attachment 2)
PERIOD 8, FEBRUARY 2025
67% Threshold

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
GENERAL FUND (summary)
400031 OVERTIME/General 1,903,320 51,851 1,955,171 1,415,906 539,265 72% 400032 OVERTIME/Sworn 11,190,934 - 11,190,934 7,778,492 3,412,442 70% TOTAL GENERAL FUND 13,094,254 51,851 13,146,105 9,194,398 3,951,707 70% Overtime By Department

CITY CLERK
Administration 25,000 - 25,000 14,786 10,214 59%

CITY ATTORNEY -
Administration - - - 80 (80) 100%

COMMUNITY DEVELOPMENT
General Plan Code Enforcement - 20,000 20,000 3,345 16,655 17%

FINANCE
Payroll 30,000 - 30,000 11,539 18,461 38% Accounts Payable - - - 500 (500) 100% Revenue Collection 5,000 - 5,000 3,297 1,703 66% TOTAL FINANCE 35,000 - 35,000 15,336 19,664 44%

HUMAN RESOURCES
Administration - - - 398 (398) 100% POLICE
Administration 490,227 - 490,227 385,337 104,890 79% CAD Dispatch System 751,511 - 751,511 688,092 63,419 92% RM System 4,000 - 4,000 4,466 (466) 112% Parking Enforcement 4,000 - 4,000 8,210 (4,210) 205% Sworn Administration 6,708,965 - 6,708,965 4,646,387 2,062,578 69% TOTAL POLICE 7,958,703 - 7,958,703 5,732,493 2,226,210 72%

Page 1 of 4430 ends

Overtime Report for February 2025 (Attachment 2)
67% Threshold

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
FIRE
Administration 2,000 - 2,000 2,010 (10) 101% Suppression - - - 360 (360) 100% Sworn Suppression 4,452,872 - 4,452,872 3,107,100 1,345,772 70% Sworn Prevention 29,097 - 29,097 22,737 6,360 78% Prevention - - - 682 (682) 100% Sworn Prv-Chvrn Insp - - - 876 (876) 100% Sworn Training - - - 1,393 (1,393) 100% TOTAL FIRE 4,483,969 - 4,483,969 3,135,158 1,348,811 70%

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

PUBLIC WORKS & ENGINEERING SVCS
Stationary Engineers 12,000 - 12,000 7,932 4,068 66% Building Services 5,000 - 5,000 5,909 (909) 118% Utility Sections 132,000 (4,000) 128,000 52,510 75,490 41% Electric 25,000 - 25,000 21,706 3,294 87% Parks & Landscape Admin 200,000 - 200,000 87,533 112,467 44% Streets Administration 36,000 (34,000) 2,000 - 2,000 0% Street Sweeping 1,100 5,000 6,100 436 5,664 7% Pavement Maintenance 41,447 15,000 56,447 31,145 25,302 55% Traffic Signs & Lines 4,885 14,000 18,885 14,274 4,611 76% Equipment Services 20,000 - 20,000 8,434 11,566 42% Abatement Services 50,000 - 50,000 28,934 21,066 58% TOTAL PUBLIC WORKS 527,432 (4,000) 523,432 258,813 264,619 49%

LIBRARY
Library Administration 7,000 18,000 25,000 12,470 12,530 50%

Page 2 of 4431 ends

Overtime Report for February 2025 (Attachment 2)
67% Threshold

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
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 2,007 60% Convention Center 1,500 5,512 7,012 8,061 (1,049) 115% Plunge 3,500 - 3,500 1,351 2,149 39% TOTAL COMMUNITY SERVICES 16,150 7,851 24,001 19,453 4,549 81%

NON-GENERAL FUND
Overtime By Fund
1012 HILLTOP LANDSCAPE MAINT DIST 20,000 - 20,000 1,424 18,576 7% 1015 MARINA BAY LNDSCP & LIGHT DIST 25,300 - 25,300 8,132 17,168 32% 1018 RENT PROGRAM 2,500 - 2,500 2,038 462 82% 1050 CR-PLANNING & BUILDING 9,500 - 9,500 2,102 7,398 22% 1050 CR-PLANNING & BUILDING 15,000 - 15,000 5,541 9,459 37% 1055 ENCROACHMENT SVCS 25,000 - 25,000 30,269 (5,269) 121% 1303 KIDS FIRST INITIATIVE - - - 1,285 (1,285) 100% 4001 PORT OF RICHMOND - 100 100 100 - 100% 4003 WASTEWATER ADMINISTRATION - 25,000 25,000 14,068 10,932 56%

Page 3 of 4432 ends

Overtime Report for February 2025 (Attachment 2)
67% Threshold

ORIGINAL

BUDGET TRANSFERS REVISED
BUDGET
YTD

EXPENDED

AVAILABLE

BUDGET PCT
4003 WASTEWATER PRE-TREATMENT 7,500 40,000 47,500 34,176 13,324 72% 4006 STORMWATER - 5,100 5,100 3,797 1,303 74% 4405 RHA-NYSTROM VILLAGE 11,000 - 11,000 7,093 3,907 64% TOTAL NON-GENERAL FUNDS 115,800 70,200 186,000 110,025 75,975 59%

Page 4 of 4433 ends

Overtime Public Safety Report for February 2025 (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 6,708,965 560,788 543,814 584,028 590,943 580,286 631,961 492,367 662,199 4,646,387 69.3% 2,062,578 580,798.36 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 4,481,969 367,801 375,737 425,984 419,101 462,309 358,764 366,579 355,830 3,132,106 69.9% 1,349,863 391,513.20 FY2024-25 TOTAL 11,190,934 11,190,934 928,589 919,552 1,010,013 1,010,045 1,042,595 990,725 858,946 1,018,029 - - - - 7,778,493 69.5% 3,412,441 972,311.56

BUDGET ACTUALS TOTAL

Page 1 of 1 ends

434
Documentary Transfer Tax
The City of Richmond receives Documentary Transfer Tax from the County for the sale of properties in Richmond. As one of the most volatile revenue stream s for the City, the amounts received can vary month- to-month from 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.

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

Attachment 4 - Documentary Transfer Tax for February 2025

Page 1 of 3 ends

435
Action City Split
$3,080.00
$3,780.00
$5,159.00
$18,750.00
$4,900.00
$5,166.00
$3,675.00
$3,948.00
$2,205.00
$3,374.00
$6,650.00
$20,312.50
$6,160.00
$105.00
$56.00
$4,725.00
$350.00
$16,675.00
$3,675.00
$6,440.00
$5,600.00
$3,675.00
$4,025.00
$12,562.50
$3,990.00
$6,090.00
$4,900.00
$4,270.00
$2,933.00
$4,984.00
$5,600.00
$16,475.00
$17,512.50
$3,850.00
$6,874.00
$5,635.00
$13,450.00
$3,220.00
$2,625.00
$3,066.00
$4,956.00
$4,487.00
$5,775.00
$12,500.00
$5,845.00
$4,025.00
$2,968.00
$6,797.00
$12,500.00
Document No. Recording Date/Time Transaction Date/Time
2025-0009953 02/03/2025 11:12 02/03/2025 11:12:00
KRISTIN B. CONNELLY, CLERK-RECORDER
County of Contra Costa
555 Escobar Street * Martinez, CA 94553
Recorder (925) 335-7900 * Fax (925) 335-7926
Report Date & Time
03/07/2025 12:42
Transfer Tax Monthly Detail: RICHMOND
For Month: February 2025
2025-0010021 02/03/2025 12:25 02/03/2025 12:25:00
2025-0010100 02/03/2025 14:45 02/03/2025 14:45:00
2025-0010571 02/04/2025 11:53 02/04/2025 11:53:00
2025-0010596 02/04/2025 12:19 02/04/2025 12:19:00
2025-0010699 02/04/2025 14:05 02/04/2025 14:05:00
2025-0010756 02/04/2025 15:23 02/04/2025 15:23:00
2025-0010761 02/04/2025 15:29 02/04/2025 15:29:00
2025-0011080 02/05/2025 10:47 02/05/2025 10:47:00
2025-0011160 02/05/2025 12:30 02/05/2025 12:30:00
2025-0011399 02/06/2025 10:04 02/06/2025 10:04:00
2025-0011463 02/06/2025 11:10 02/06/2025 11:10:00
2025-0011615 02/06/2025 13:25 02/06/2025 13:25:00
2025-0011649 02/06/2025 15:14 02/06/2025 15:14:00
2025-0011650 02/06/2025 15:14 02/06/2025 15:14:00
2025-0011652 02/06/2025 15:14 02/06/2025 15:14:00
2025-0011713 02/07/2025 08:51 02/07/2025 08:51:00
2025-0011905 02/07/2025 12:43 02/07/2025 12:43:00
2025-0012030 02/07/2025 14:39 02/07/2025 14:39:00
2025-0012153 02/10/2025 08:16 02/10/2025 08:16:00
2025-0012626 02/11/2025 08:19 02/11/2025 08:19:00
2025-0012735 02/11/2025 09:37 02/11/2025 09:37:00
2025-0012739 02/11/2025 09:45 02/11/2025 09:45:00
2025-0012791 02/11/2025 10:13 02/11/2025 10:13:00
2025-0013282 02/12/2025 10:11 02/12/2025 10:11:00
2025-0013761 02/13/2025 10:28 02/13/2025 10:28:00
2025-0013963 02/13/2025 15:30 02/13/2025 15:30:00
2025-0014162 02/14/2025 11:26 02/14/2025 11:26:00
2025-0014174 02/14/2025 11:36 02/14/2025 11:36:00
2025-0014188 02/14/2025 11:46 02/14/2025 11:46:00
2025-0014295 02/14/2025 13:24 02/14/2025 13:24:00
2025-0014422 02/18/2025 07:58 02/18/2025 07:58:00
2025-0014428 02/18/2025 08:02 02/18/2025 08:02:00
2025-0014699 02/18/2025 10:40 02/18/2025 10:40:00
2025-0014710 02/18/2025 11:09 02/18/2025 11:09:00
2025-0014813 02/18/2025 12:38 02/18/2025 12:38:00
2025-0014827 02/18/2025 12:45 02/18/2025 12:45:00
2025-0014883 02/18/2025 14:39 02/18/2025 14:39:00
2025-0015331 02/19/2025 14:30 02/19/2025 14:30:00
2025-0015738 02/20/2025 11:06 02/20/2025 11:06:00
2025-0016045 02/21/2025 08:24 02/21/2025 08:24:00
2025-0016068 02/21/2025 08:58 02/21/2025 08:58:00
2025-0016541 02/24/2025 09:56 02/24/2025 09:56:00
2025-0016649 02/24/2025 11:16 02/24/2025 11:16:00
2025-0016661 02/24/2025 11:22 02/24/2025 11:22:45
2025-0016722 02/24/2025 13:00 02/24/2025 13:00:00
2025-0017031 02/25/2025 09:13 02/25/2025 09:13:00
2025-0017103 02/25/2025 10:22 02/25/2025 10:22:00
2025-0017133 02/25/2025 11:20 02/25/2025 11:20:00
Attachment 4 - Documentary Transfer Tax for February 2025

Page 2 of 3 ends

436
Action City SplitDocument No. Recording Date/Time Transaction Date/Time $13,575.00
$5,600.00
$3,500.00
$4,830.00
$15,500.00
$3,360.00
$3,990.00
$3,220.00
$5,495.00
$5,635.00
$1,820.00
$4,340.00
$4,550.00
$5,320.00
$3,045.00
$5,250.00
$12,937.50
$412,343.00
Total $ of Cap Docs $412,343.00
Total Count of Cap Docs 66
2025-0017423 02/25/2025 15:14 02/25/2025 15:14:00
2025-0017770 02/26/2025 11:47 02/26/2025 11:47:00
2025-0018002 02/26/2025 15:13 02/26/2025 15:13:00
2025-0018162 02/27/2025 11:20 02/27/2025 11:20:00
2025-0018282 02/27/2025 13:35 02/27/2025 13:35:00
2025-0018291 02/27/2025 13:41 02/27/2025 13:41:00
2025-0018299 02/27/2025 13:46 02/27/2025 13:46:00
2025-0018377 02/27/2025 14:26 02/27/2025 14:26:00
2025-0018466 02/27/2025 16:30 02/27/2025 16:30:00
2025-0018685 02/28/2025 10:34 02/28/2025 10:34:00
2025-0018958 02/28/2025 13:22 02/28/2025 13:22:00
2025-0018998 02/28/2025 13:57 02/28/2025 13:57:00
2025-0019006 02/28/2025 14:08 02/28/2025 14:08:00
2025-0019045 02/28/2025 14:52 02/28/2025 14:52:00
2025-0019070 02/28/2025 15:21 02/28/2025 15:21:00
Total:

Count:
$373,416.00
50 2025-0019117 02/28/2025 16:14 02/28/2025 16:14:00
2025-0019131 02/28/2025 16:28 02/28/2025 16:28:00
Total For Richmond
Attachment 4 - Documentary Transfer Tax for February 2025

Page 3 of 3 ends

437

Page 1 of 4 ends

April 15, 2025

Finance Department

DATE: April 15, 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:

Investment Policy Update
FINANCIAL IMPACT: There is no fiscal impact to receive this update

PREVIOUS COUNCIL
ACTION:

April 30, 2024
December 3, 2024

STATEMENT OF THE
ISSUE:

On December 3, 2024, City Council adopted a revised
Investment Policy and provided direction to staff with and requested an update. This agenda item is to provide
status update on the City Council direction and ADOPT a revised Investment Policy incorporating feedback from
California Municipal Treasurer’s Association (CMTA)
provided feedback.

RECOMMENDED ACTION:

RECEIVE update on Investment Policy follow up action
items and ADOPT Revised Investment Policy
incorporating California Municipal Treasurer’s
Association CMTA edits – Finance Department (Andrea
Miller 510-620-6740/Mubeen Qader 510-412-2077/Jerry
Gurule 510-620-6591).

DISCUSSION:

At the special City Council meeting on April 30, 2024, City Council directed City staff to review and modify the City of Richmond’s Investment Policy to add additional restrictions eliminating the investment of City funds in industries that facilitate violence, war, oppression, and apartheid. City staff has been directed to present Investment Policy modifications and recommendations for socially responsible investments to City Council for consideration.

AGENDA
REPORT
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After extensive research, City staff developed four new restrictions to address the City Council’s concerns around socially responsible investments while complying with the text included in AB 2844:

4. The City will not invest in companies that develop and manufacture 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 manufacture commodities involved in border and mass surveillance industries.

7. The City will not invest in companies involved in mass incarceration and detention industries, nor those companies that use prison labor to manufacture products.

After the City Council adopted the revised Investment Policy in December 2024, the Director of Finance sent letters to the California State Treasurers’ Office Local Agency Investment Funds (LAIF), Mechanics Bank and CalTRUST requesting to incorporate the City’s revised Investment Policy while managing the City of Richmond portfolio (See Attachments 1,2, and 3).

The following are the summary responses and complete responses are attached to the agenda item:

Response from CalTRUST (Attachment 5)
“Since CalTRUST is not actively managing individual investments for the City, we are unable to certify compliance with your City’s specific investment policy; we can only certify compliance with the CalTRUST Investment Policy, which is in compliance with California Government Code. Since we are pooled investment funds, we are unable to place additional screens or restrictions on our investment funds for individual shareholders.”

Response from LAIF
“Thank you for your email. Currently the PMIA does not hold any of the names listed on your policy (Attachment 4). But, we are not prohibited from doing so, and could, depending on their credit and availability in the market, purchase commercial paper issued by any name on the PMIA list of approved investments: https://www.treasurer.ca.gov/pmia-laif/investments/cp.pdf”

Response from Mechanics Bank (Attachment 6)
“Please accept this letter as confirmation that Mechanics Bank will comply with the City’s updated investment policy restrictions dated December 2024. The accounts we have on file for the City are consider collateralized bank deposit accounts. We do not invest the City’s funds, only back the deposits with collateral per the public contract code.”

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April 15, 2025
Portfolio Composition December 2024
As of the December 2024 Investment Report, presented to the City Council on February 18, 2025, the City has total Pooled Cash balance of $334 million, out of the total, there is $16 million in the General Checking account and the remaining $318 million in the investment accounts as following:

Figure 1: City of Richmond Investment Composition as of December 2024

Investment Policy Certification Program
After the City Council adopted the revised Investment Policy in December 2024, the City staff submitted the Policy to the California Municipal Treasurer’s Association for Certification. The policy certification program is developed by the California Municipal Treasurers Association (CMTA) with support from the California Debt and Investment Advisory Commission (CDIAC).

The CMTA Investment Policy Certification Program provides professional guidance and assistance in developing and/or improving investment policies that meet industry best practices for California’s public sector agencies and districts.

The benefits of having your Investment Policy Certified by the California Municipal Treasurers Association are:
 Trust, confidence and verification to your Governing Body that your policy has been reviewed and certified by a professional organization within California  Your policy has been reviewed by fellow CMTA members, many of which have earned the Certified California Municipal Treasurers (CCMT) designation.  To show transparency of your Governing Body to the public  To demonstrate that due diligence was performed on your Investment Policy  California Government Code sections are included (cited) in policy  Assist to satisfy auditors when reviewing your Investment Policy  Eighteen areas of Investment Policies are addressed: Scope, Prudence, Objective, Delegation of Authority, Ethics and Conflicts of Interest, Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Review of Investment Portfolio, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Diversification, Maximum Maturities, Internal Controls, Performance Standards, Reporting, Investment Policy Adoption and Glossary.

The policy is reviewed by three CMTA members to determine if the Agency/District’s policy has met investment policy standards and criteria set forth by CMTA and has a passing score of 85/100. The policies scoring less than 85 receive the three evaluations 440

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April 15, 2025
with feedback and have the opportunity to re-submit their policy within 90 days for no additional fee.

The City of Richmond received the results of the investment policy submission on February 19, 2025, with a score of 80 out of 100 (Attachment 7). CMTA provided grading rubrics along with suggestions and examples to strengthen the current policy.

The City of Richmond has 90 days (until May 19) to re-submit the policy at no charge.

City staff have incorporated the suggestions into the investment policy provided by CMTA for City Council Approval prior to resubmitting for certification (Attachment 8 and 9).

NEXT STEPS:

City staff will continue to explore options to refine the investment strategy based on the revised Investment Policy and should there be any significant changes around investments City Council will be provided with an update.

DOCUMENTS ATTACHED:

Attachment 1: Director of Finance’s Letter to LAIF
Attachment 2: Director of Finance’s Letter to CalTRUST
Attachment 3: Director of Finance's Letter to Mechanics Bank Attachment 4: State of California Pooled money Investment Account Approved Commercial Paper
Attachment 5: Response Letter from CalTRUST
Attachment 6: Response Letter from Mechanics Bank
Attachment 7: CMTA Investment Policy Certification – Scores and Feedback Attachment 8: Investment Policy
Attachment 9: Investment Policy Resolution
Attachment 10: Presentation
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CITY OF RICHMOND

INVESTMENT POLICY
UPDATED DECEMBER 2024

I. 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.

II. 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.

III. 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:

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 443

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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.

IV. 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.

V. 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 exercise 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 Section 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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VI. 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.

3. 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.

4. 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 ab ility to make impartial 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.

VII. 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).

VIII. 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

i. United States Treasury Notes, B onds, 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
ii. Treasury notes or bonds of the State of California; and iii. Bonds, Notes, Warrants or other evidence of indebtedness of Any local agency within California with a minimum rating 445

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threshold of an “A”.

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 Uni ted 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 t o be resold back to the seller 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 short - term investm ents varying from one day to two 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 o f 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.

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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%. C alTRUST is governed by a Board of Trustees made up of experienced local agency treasurers and investment officers.

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 category 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 provided 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 companies 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:

• The money market shall have attained the highest ranking, or the highest letter 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.

• Retain an investment advisor registered with the Securities and Exchange Commission (SEC) with not less than five (5) years' experience investing in securities and obligations.

• 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.

• The purchase price of the share of beneficial interest shall not include any commission that these companies charge.
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• 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:

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%

IX. 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.
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X. Investment Pools

Government sponsored investment pools (Pools) are permitted under California Government Code Section 53601 et seq. and an excellent short -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.

State of California's Local Agency Investment Fund (LAIF) is an example of a Pool. The City may inv est 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.

XI. 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 ind ependent 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.

XII. 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 basi c 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.

XIII. Diversification and Risk Tolerance

The City of Richmond recognizes diversification is an investment strategy that will mitigate 449

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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 total capital position of the overall portfolio. The Treasurer shall periodically establish guidelines and strategies to control risks of default, market price changes, and illiquidity.

XIV. Internal Control

The Treasurer or designee shall maintain a system of internal 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.

All financial institutions and broker/d ealers 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 questionn aire, 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.

XV. Performance Standards

A. 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.

B. The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on a market benchmark Index of similar securities, as determined by the Director of Finance.

XVI. 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.

XVII. Interest Earnings

All moneys earned and collected from investments authorized in this policy shall be 450

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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, should 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.

XVIII. Restrictions

1. The City will not invest any funds in inverse floaters, 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 incarceration 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 d ivest from such investments with the cost of divestment being borne by the contracting institution.

9. In accordance with Resolution 38-13 effective May 7, 2013, the City declared 451

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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 Pension 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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GLOSSARY

Agencies: Federal agency securities and/or Government-sponsored enterprises.

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 CDs are typically negotiable.

Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

Collateralization of Deposits: Process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing the repayment of deposit funds.

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.

Data Broker: Means either 1) the collection of information, including personal information about consumers, from a wide variety of sources for th e purpose of reselling such information 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 securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. 453

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Diversification: Investment contained within the portfolio will be diversified by security type, institution and maturity.

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 le nd 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): FNMA, 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 mortgage 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, containing 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.

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 asso ciations, and other institutions. The security holder is protected by full faith and credit of the U.S. Government. Ginnie 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 454

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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.

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 (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

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 sub mit 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.

Public Bank: A corporation, organized as either a nonprofit mutual benefit corporation or a nonprofit public benefit corporation for the purpose of engaging in the commercial banking business or industrial banking business, that is wholly owned by a local agency, as specified, local agencies, or a joint powers authority.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This interest may be amortized yield to maturity on a bond or the current income return.

Repurchase Agreements: An agreement of one party (for example, a financial institution) to sell securities to a second party (such as a local agency) and simultaneous agreement by the first party to repurchase the securities at a specified price from the second party on demand or at a specified date.

Sanctuary City: A municipal jurisdiction that limits its cooperation with the national 455

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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.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities & Exchange Commission: 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.

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 rule 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 e asily 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 immigrat ion 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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CITY OF RICHMOND

INVESTMENT POLICY
UPDATED DECEMBER 2024

I. Mission Statement

II. Scope

The investment policy for the Police and Fire Pension Fund and the General Pension Fund are contained in the City Charter.

III. Objectives

The primary objectives of the investment activities, in priority order shall be:

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a variety of securities offering independent returns and financial institutions.

V. Prudence

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VI. Ethics and Conflict of Interest

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.

VII. Authorized Broker/Dealers

VIII. Authorized Investments and Maximum Maturities

1. Government Bonds and Notes- Maximum of 100% invested no longer than 5 years

Page | 4
threshold of an “A”.

In order to anticipate market changes and provide a level o f security for all funds, the required collateralization level is 102% of the market value of principal and accrued interest.

464

Page | 5

• Retain an investment advisor registered with the Securities and Exchange Commission (SEC) with not less than five (5) years' experience investing in securities and obligations.

• 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.

• The purchase price of the share of beneficial interest shall not include any commission that these companies charge.
465

Page | 6

• Purchases shall not exceed 20 percent of the City's idle funds

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:

IX. Reporting and Review of the Investment Portfolio

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.
466

Page | 7

X. Investment Pools

XI. Collateralization

XII. Safekeeping and Custody

XIII. Diversification and Risk Tolerance

The City of Richmond recognizes diversification is an investment strategy that will mitigate 467

XIV. Internal Control

XV. Performance Standards

XVI. 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.

XVII. Interest Earnings

All moneys earned and collected from investments authorized in this policy shall be 468

XVIII. Restrictions

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 incarceration 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

9. In accordance with Resolution 38-13 effective May 7, 2013, the City declared 469

470

Page | 11

GLOSSARY

Agencies: Federal agency securities and/or Government-sponsored enterprises.

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.

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 CDs are typically negotiable.

Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

Collateralization of Deposits: Process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing the repayment of deposit funds.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

Page | 12

Diversification: Investment contained within the portfolio will be diversified by security type, institution and maturity.

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.

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 472

Page | 13
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.

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 (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

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.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This interest may be amortized yield to maturity on a bond or the current income return.

Sanctuary City: A municipal jurisdiction that limits its cooperation with the national 473

Page | 14
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.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities & Exchange Commission: 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.

474
475
476
477
478

Page | 1

CITY OF RICHMOND

INVESTMENT POLICY
UPDATED DECEMBER 2024

I. Mission Statement

II. Scope

The investment policy for the Police and Fire Pension Fund and the General Pension Fund are contained in the City Charter.

III. Objectives

The primary objectives of the investment activities, in priority order shall be:

Page | 2
a variety of securities offering independent returns and financial institutions.

V. Prudence

480

Page | 3

VI. Ethics and Conflict of Interest

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.

VII. Authorized Broker/Dealers

VIII. Authorized Investments and Maximum Maturities

1. Government Bonds and Notes- Maximum of 100% invested no longer than 5 years

Page | 4
threshold of an “A”.

In order to anticipate market changes and provide a level o f security for all funds, the required collateralization level is 102% of the market value of principal and accrued interest.

482

Page | 5

• Retain an investment advisor registered with the Securities and Exchange Commission (SEC) with not less than five (5) years' experience investing in securities and obligations.

• 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.

• The purchase price of the share of beneficial interest shall not include any commission that these companies charge.
483

Page | 6

• Purchases shall not exceed 20 percent of the City's idle funds

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:

IX. Reporting and Review of the Investment Portfolio

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.
484

Page | 7

X. Investment Pools

XI. Collateralization

XII. Safekeeping and Custody

XIII. Diversification and Risk Tolerance

The City of Richmond recognizes diversification is an investment strategy that will mitigate 485

XIV. Internal Control

XV. Performance Standards

XVI. 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.

XVII. Interest Earnings

All moneys earned and collected from investments authorized in this policy shall be 486

XVIII. Restrictions

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 incarceration 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

9. In accordance with Resolution 38-13 effective May 7, 2013, the City declared 487

488

Page | 11

GLOSSARY

Agencies: Federal agency securities and/or Government-sponsored enterprises.

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.

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 CDs are typically negotiable.

Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

Collateralization of Deposits: Process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing the repayment of deposit funds.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

Page | 12

Diversification: Investment contained within the portfolio will be diversified by security type, institution and maturity.

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.

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 490

Page | 13
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.

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 (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

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.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This interest may be amortized yield to maturity on a bond or the current income return.

Sanctuary City: A municipal jurisdiction that limits its cooperation with the national 491

Page | 14
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.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities & Exchange Commission: 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.

492
493
494
495
3M Company International Business Machines Corporation
Abbott Laboratories J.P. Morgan Securities, LLC
Alphabet Inc. John Deere Capital Corporation
Amazon.com Inc. Johnson & Johnson
American Honda Finance Corporation Jupiter Securitization Company LLC Apple Inc. Liberty Street Funding, LLC
Atlantic Asset Securitization LLC McDonald's Corporation Bank of Nova Scotia Merck & Co., Inc.

Baxter International Inc. MetLife Short Term Funding LLC BNP Paribas Microsoft Corporation
BofA Securities Inc. Mizuho Bank, Ltd.

Bristol-Myers Squibb Co. MUFG Bank, Ltd
CAFCO, LLC Natixis
Cambell's Company (The) New York Life Short Term Funding LLC Canadian Imperial Holdings Inc. Old Line Funding LLC
Caterpillar Financial Services Corporation Pacific Life Short Term Funding LLC Chariot Funding LLC PepsiCo, Inc.

Citigroup Global Markets Inc. Pfizer, Inc.

Coca-Cola Company (The) Procter & Gamble Co. (The)
Cooperatieve Rabobank U.A. Royal Bank of Canada
CRC Funding, LLC Sheffield Receivables Company LLC
Credit Agricole, Corporate & Investment Bank Societe Generale Fairway Finance Company, LLC Sumitomo Mitsui Trust Banking, Limited General Electric Company Thunder Bay Funding LLC
General Mills, Inc. Toyota Motor Credit Corporation
Gotham Funding Corporation U.S. Bank N.A.

GTA Funding LLC United Parcel Service, Inc.

Home Depot Incorporated (The) UnitedHealth Group Inc.

Honeywell International, Inc. Versailles Commercial Paper LLC ING (US) Funding LLC Walmart Inc.

Intel Corporation Walt Disney Company (The)
The information contained in this document is not a recommendation to outside investors. STO Investment staff perform additional due diligence on each investment decision. The list does not reflect the actual Pooled Money Investment Account (PMIA) portfolio holdings. To view detailed information pertaining to the PMIA portfolio and other investment reports, please refer to http://www.treasurer.ca.gov/pmia-laif/pmia.asp

STATE OF CALIFORNIA

POOLED MONEY INVESTMENT ACCOUNT

APPROVED COMMERCIAL PAPER
January 31, 2025
496

February 14, 2025

Andrea Miller
Director of Finance/City Treasurer
City of Richmond
450 Civic Center Plaza
Richmond, CA 94804
Via email: [email protected]

Subject: RE: Revised City of Richmond Investment Policy

Dear Andrea,

Thank you for being a long-time CalTRUST shareholder. As you are aware, City of Richmond has been a shareholder with CalTRUST since 2006. In response to your letter dated February 6, 2025, it is important to clarify that CalTRUST does not actively manage the City’s assets as a separately managed account. As a joint powers authority, CalTRUST is a local government itself. The CalTRUST funds are local government investment pool funds, a structure similar to that of a money market fund, that are available for California public agencies to utilize as one tool in their investment strategy. Since CalTRUST is not actively managing individual investments for the City, we are unable to certify compliance with your City’s speciﬁc investment policy; we can only certify compliance with the CalTRUST Investment Policy, which is in compliance with California Government Code. Since we are pooled investment funds, we are unable to place additional screens or restrictions on our investment funds for individual shareholders.

The CalTRUST holdings are always available and updated daily in your online shareholder portal so you are able to review the current holdings at any time. While we are unable to place additional restrictions on CalTRUST, it would be unusual for CalTRUST to hold the investments that Richmond has chosen to restrict as they do not o[er value in the liquidity space. Additionally, the credit on several of your speciﬁcally restricted investments would likely fail to qualify for consideration per our credit parameters. By its nature, the CalTRUST Liquidity Fund invests primarily in banks so that fund could be an option that would likely be compliant with your restrictions, but again, we are unable to o[er a guarantee beyond the parameters of the CalTRUST Investment Policy. It is also worth noting that as a local government investment fund, when you invest in CalTRUST your exposure is to the CalTRUST funds and not directly to the underlying securities.

I would be more than happy to facilitate a conversation with our asset management team at State Street Global Advisors for further discussion and clarity for you on how CalTRUST invests its assets.

Please do not hesitate to reach out for further clariﬁcation or discussion.

Kindest Regards,

Laura Labanieh
Chief Executive O[icer
(916) 745-6701
[email protected]
497

February 10, 2025

Andrea Miller
City of Richmond
450 Civic Center Plaza
Richmond, CA 94804

RE: Investment Policy Restrictions

Please accept this letter as conﬁrmation that Mechanics Bank will comply with the City’s updated investment policy restrictions dated December 2024.

• The City will not invest in companies that develop and manufacturer commodities that facilitate violence, war, oppression, and apartheid.
• The City will not invest in companies that develop and manufacture arms and weapons. • The City will not invest in companies that develop, and manufacturer commodities involved in border and mass surveillance industries.
• The City will not invest in companies involved in mass incarceration and detention industries, nor those companies that use prison labor to manufacture products.

The accounts we have on file for the City are consider collateralized bank deposit accounts. We do not invest the City’s funds, only back the deposits with collateral per the public contract code.

Let me know if you have any additional questions. Thank you.

Sincerely,

Apryl DeMarco
Director of Government Banking, SVP
925-256-3036

498
SECTION MAX POINTS SCORE 1 SCORE 2 SCORE 3 AVERAGE
1 SCOPE 5 5 5 5 5.00
2 PRUDENCE 5 4 2 4 3.33
3 OBJECTIVE 5 4 4 5 4.33
4 DELEGATION OF AUTHORITY 5 5 5 5 5.00
5 ETHICS AND CONFLICT OF INTEREST 5 3 5 5 4.33
6 AUTHORIZED DEALERS & INSTITUTIONS 5 4 3 3 3.33
7 AUTHORIZED & SUITABLE INVESTMENTS 10 8 7 7 7.33
8 REVIEW OF INVESTMENT PORTFOLIO 5 3 1 3 2.33
9 INVESTMENT POOLS/MUTUAL FUNDS 5 3 2 3 2.67
10 COLLATERALIZATION 5 5 5 4 4.67
11 SAFEKEEPING AND CUSTODY 5 5 5 5 5.00
12 DIVERSIFICATION 5 5 3 5 4.33
13 MAXIMUM MATURITIES 5 3 4 4 3.67
14 INTERNAL CONTROLS 5 4 3 3 3.33
15 PERFORMING STANDARDS 5 4 3 5 4.00
16 REPORTING 10 7 7 9 7.67
17 INVESTMENT POLICY ADOPTION 5 5 5 5 5.00
18 GLOSSARY 5 5 5 4 4.67
82 74 84
TOTAL AVERAGE SCORE (OUT OF 100) CERTIFIED

80.00 NO
CMTA Investment Policy Scorecard Summary

NAME OF ENTITY

REVIEW DATE
City of Richmond
2/19/25
Attachment 7 CMTA Investment Policy Certification - Scores and Feedback 1 499

SECTION MAX POINTS SCORE COMMENTS
1 SCOPE 5 5
2 PRUDENCE
5 4
Section should reflect one
term - policy refers to
prudent investor vs prudent
person. Is there a
difference?
3 OBJECTIVE
5 4
Section refers to investing
idle funds - is that defined?
Without clarity, their could
be scrutiny as to City's
intent
4 DELEGATION OF AUTHORITY 5 5
5 ETHICS AND CONFLICT OF INTEREST
5 3
Section refers to 1, 3 and 4 -
where is #2? Trying to
understand the relevance of
the second point.
6 AUTHORIZED DEALERS & INSTITUTIONS
5 4
There is no reference to
annual review of the
fnancial condition. Also, it
may be helpful to
understand what is the
evaluation criteria to
determine. The language
reflected in internal controls
may be more appropriate
here.
7 AUTHORIZED & SUITABLE INVESTMENTS
10 8
Reference to idle funds can
lead to misinterpretations.

No reference to Master
repurchase agreement
being signed by bank or
dealer
8 REVIEW OF INVESTMENT PORTFOLIO
5 3
There is no reference to
how to handle investment
that may fall below grade
listed in authorized
investment. It is preferable
to have a separate section
that highlights the key
individual's role.

CMTA Investment Policy Scorecard
City of Richmond
Margaret Moggia
2/6/2025

NAME OF ENTITY

EVALUATOR

EVALUATION DATE
Attachment 7 CMTA Investment Policy Certification - Scores and Feedback 2 500
9 INVESTMENT POOLS/MUTUAL FUNDS
5 3
Requirement should state a
thorough investigation of
the pool/fund is required
prior to investing, and on a
continual basis.
10 COLLATERALIZATION 5 5
11 SAFEKEEPING AND CUSTODY 5 5
12 DIVERSIFICATION 5 5
13 MAXIMUM MATURITIES
5 3
Requirement focuses on
the overall maturity duration
should not exceed 5 years,
match cash flow and that
forward settlements should
not exceed 45 days.

Reference at the list of
authorized investment.
14 INTERNAL CONTROLS
5 4
Language re financial
institutions and broker
dealers and bi-annual
review should be included
as part of authorized
dealers section
15 PERFORMING STANDARDS 5 4 Consider stating benchmark
16 REPORTING
10 7
May be helpful to share
government code section.

With the reporting, the
monthly reporting should
reference the transactions.
17 INVESTMENT POLICY ADOPTION 5 5
18 GLOSSARY 5 5
TOTAL SCORE (OUT OF 100) CERTIFIED
82 NO
Additional Comments:

Attachment 7 CMTA Investment Policy Certification - Scores and Feedback 3 501

SECTION MAX POINTS SCORE COMMENTS
1 SCOPE 5 5
2 PRUDENCE
5 4
Suggest eliminating the use
of "prudent Person" and
use "prudent Investor"
3 OBJECTIVE 5 5
4 DELEGATION OF AUTHORITY 5 5
5 ETHICS AND CONFLICT OF INTEREST 5 5
6 AUTHORIZED DEALERS & INSTITUTIONS
5 3
Suggest adding
"institutions" and moving
the 2nd and 3rd paragraphs
of section XIV under this
section.
7 AUTHORIZED & SUITABLE INVESTMENTS
10 7
Suggest adding language
within the Repurchase
Agreements section to
require having a signed
Master Repurchase
Agreement with the bank or
dealer. Also, suggest
changing last sentence
under Medium Term Notes
to "Purchase may not
exceed 30% of portfolio",
8 REVIEW OF INVESTMENT PORTFOLIO
5 3
Suggest adding language
stating securities must be in
compliance with section XIII
at time of purchase, as well
as requiring portfolio be
reviewed monthly for
compliance with Policy. If
portfolio is found to be non-
compliant, a report to City
Council detailing the issue
and recommendation to
bring portfolio back into
compliance with Policy
should be made.
9 INVESTMENT POOLS/MUTUAL FUNDS
5 3
Suggest adding specifics as
to the investigation of the
Investment Pool (see
CMTA's sample investment
policy).

CMTA Investment Policy Scorecard
City of Richmond
Mary-Ann Davidson
1/30/2025

NAME OF ENTITY

EVALUATOR

EVALUATION DATE
Attachment 7 CMTA Investment Policy Certification - Scores and Feedback 4 502
10 COLLATERALIZATION
5 4
Suggest adding language to
require collateralization of
102% of principal and
interest for repurchase
agreements.
11 SAFEKEEPING AND CUSTODY 5 5
12 DIVERSIFICATION 5 5
13 MAXIMUM MATURITIES
5 4
Although stated in section
VIII of your Policy, I suggest
adding a new section to
emphasize the maximum
maturiy of 5 years (from
time of purchase) and
include language to match
investment maturies to
cash flow requirements.
14 INTERNAL CONTROLS
5 3
Suggest moving 2nd and
3rd paragraphs to section
VII and expanding language
to include an independent
review by an external
auditor".
15 PERFORMING STANDARDS 5 5
16 REPORTING
10 9
Suggest adding language
requiring monthly report to
include a listing of that
month's transactions
(buys/sells).
17 INVESTMENT POLICY ADOPTION 5 5
18 GLOSSARY
5 4
Suggest removing certain
words and /or phrases
within the glossary not
utilized in the Policy (Bid,
Annual Comprehensive
Financial Report, Federal
Reserve System,
Secondary market and
Offer).

TOTAL SCORE (OUT OF 100) CERTIFIED
84 NO
Additional Comments:

Making the suggested changes will improve your Investment Policy and help to receive the CMTA Investment Policy Certification.

Attachment 7 CMTA Investment Policy Certification - Scores and Feedback 5 503

SECTION MAX POINTS SCORE COMMENTS
1 SCOPE 5 5
2 PRUDENCE
5 2
states both prudent person
and prudent investor
standards; should hold to
prudent investor
3 OBJECTIVE
5 4
suggest removing
statement "The City will
invest up to 100% of all idle
funds." Could open up for
criticism if the city does not
invest up to 100%
4 DELEGATION OF AUTHORITY 5 5
5 ETHICS AND CONFLICT OF INTEREST 5 5
6 AUTHORIZED DEALERS & INSTITUTIONS
5 3
expand to includeother
institutions in addition to
broker dealers; suggest
adding more than just credit
worthiness. While a key
consideration there is more
in the standard due
diligence process.
7 AUTHORIZED & SUITABLE INVESTMENTS
10 7
clarify "at the time of
purchase as of settlement
date (per code); in the GSE
section, is it the intention of
the City to exclude the GSE
names not listed?; in MTN
secion, the reference to
30% of invested idle funds
may be confusing, code
allows for 30% of the
portfolio at time of
purchase; add language to
limit exposure to a single
counterparty, 10% (code
max) or less, often see no
more than 5% and often 3%
per single issuer.
8 REVIEW OF INVESTMENT PORTFOLIO
5 1
create a separate section
for review of the portoflio
with specifics related to
responsibilities and
frequency
CMTA Investment Policy Scorecard
City of Richmond
Susan Munson
1/30/2025

NAME OF ENTITY

EVALUATOR

EVALUATION DATE
Attachment 7 CMTA Investment Policy Certification - Scores and Feedback 6 504
9 INVESTMENT POOLS/MUTUAL FUNDS
5 2
suggest added language on
how the due diligence is
completed, as outlined in
the sample investment
policy
10 COLLATERALIZATION 5 5
11 SAFEKEEPING AND CUSTODY 5 5 good to emphasize DVP
only
12 DIVERSIFICATION
5 3
add specifics, see
comments related to issuer
concentration in the
investment section
13 MAXIMUM MATURITIES
5 4
does address in the
investment section, update
to clarify based on
settlement date (to align
with code)
14 INTERNAL CONTROLS
5 3
Add specifics outlining
responsibilities of all
parties; move the
paragraph related to
financial and broker dealers
to section VII
15 PERFORMING STANDARDS
5 3
is it the City's intention to
manage the portfolio on a
total rate of return? If the
portfolio is not managed on
a total rate of return it is
best practice to use other
indicators as performance
benchmarks.
16 REPORTING
10 7
Only the monthly
transaction reports are
required. The code allows
for the City to report the
required elements for
quarterly reports more
frequently but checking to
make sure going beyond
what is requred by code
mandatory
17 INVESTMENT POLICY ADOPTION 5 5
18 GLOSSARY 5 5
TOTAL SCORE (OUT OF 100) CERTIFIED
74 NO
Additional Comments:

Attachment 7 CMTA Investment Policy Certification - Scores and Feedback 7 505
Page | 1
POLICY: Investment Policy
ESTABLISHED: October 17, 2023
RESOLUTION NO.: 15-25; DATE: February 18, 2025

I. Investment Policy

A. Mission Statement

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 d ebt. To the extent not inconsistent with such bond documents, bond or note proceeds and in acc ordance 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.

506
Page | 2
The primary objectives of the investment activities, in priority order shall be:

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, throughout budgetary and economic cycles . 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 exercise 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 Section 53600.3 of the California Government Code,. in that all investments placed shall be made 507
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with a degree of judgment and care., The prudent investor standard states, “[w]hen 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.”

Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price change s, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

F. Ethics and Conflict of Interest
All participants in the investment process shall act as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation . Thus, employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program , or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose to the City Clerk’s Office any material interests in financial institutions with which they conduct business, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio.

Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City. All investment personnel shall comply with the reporting requirements of the Political Reform Act, including the annual filing of their Statement of Economic Interest.

G. Authorized Financial Institutions, Depositories and Broker/Dealers The Director of Finance will obtain financial information from qualified institutions to determine if the institution markets in securities appropriate to the City’s needs, can assign qualified sales representatives, and can provide written agreement to abide by the conditions set forth in the City’s Investment Policy.

The City may engage the services of inve stment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved broker/dealers. The list of approved firms maintained by the investment 508
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advisor shall be provided to the City on an annual bas is or upon request. The investment advisor will certify that they have read and are willing to comply with the City’s investment policy.

If an external investment advisor is not used in the process of recommending a particular transaction in the City’s po rtfolio, any authorized broker/dealer from whom a competitive bid is obtained for the transaction will meet the following criteria and provide the required information to the Director of Finance: proof of Financial Industry Regulatory Authority (FINRA) certification, proof of state registration, audited financial statements, a completed broker/dealer questionnaire, and certification of having read the City’s investment policy. Each firm will be evaluated and selected based on firm and staff qualifications, trading product capacity, research capabilities, compliance and due diligence, presentation, and credit worthiness.

In accordance with Government Code Section 53601.5, institutions eligible to transact investment business with the City include:
• Institutions licensed by the state as a broker-dealer. • Institutions that are members of a federally regulated securities exchange. • Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers.
• Nationally or state-chartered banks.
• The Federal Reserve Bank.
• Direct issuers of securities eligible for purchase.

The Director of Finance will maintain a list of broker/dealers authorized to provide investment services. These may include "primary" dealers or "regional" dealers that qualify under Securities and Exchange Commission Rule 15c3-1 (uniform net capital rule). An eligible designation does not guarantee that the City will do business with the firm or institution.

An annual review of the financial condition and registrations of brokers/dealers on the City’s approved list 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.

H. Authorized Investments and Maximum Maturities

To the extent possible, the City will attempt to match its investments with 509
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anticipated cash flow requirements. The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment either specifically or as a part of an investment program it has approved no less than three months prior to the investment or is otherwise stated in this policy. Forward settlement on new issues may not exceed 45 days from time of investment.

The City’s investments are governed by Government Code Sections 53600, et seq.

Within the investments permitted by the Government Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Gove rnment Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section apply at the time the security is purchased.

An appropriate risk level determined by the Government Code must be maintained by primarily purchasing securities that are of high quality, liquid, and marketable.

The portfolio must be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

1. Government Bonds and Notes - Maximum of 100% invested no longer than 5 years. Purchases may not exceed 5% in any single issuer.

a) United States Treasury Notes, B onds, 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”.

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 510
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not exceed 180 days maturity or 40% of the City’s investment portfolio as provided by Government Code Section 53601(f)g . Purchases may not exceed 5% in any single issuer.

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 seller 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 short - term investments varying from one day to two 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. Collateralized 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%. LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments.

CalTRUST’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in CalTRUST itself from 511
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the City’s list of allowable investments.

10. Commercial Paper of "prime quality" of the highest ranking or of the highest letter and numerical rating as provided 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. Mutual Funds and Money Market Mutual Funds are eligible for investment if the companies 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:

 The money market shall have attained the highest ranking, or the highest letter 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.

 Retain an investment advisor registered with the Securities and Exchange Commission (SEC) with not less than five
(5) years' experience investing in securities and
obligations.

 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.

 The purchase price of the share of beneficial interest shall not include any commission that these companies charge.

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 Purchases in one mutual fund shall not exceed 10 percent of the total portfolio.

 Purchases shall not exceed 20 percent of the total portfolio.

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:

I. Reporting
A monthly transaction report will be submitted by the Treasurer to the City Council in accordance with Government Code Section 53607. A monthly Investment Report will be submitted with the monthly transaction report. 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
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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. Review of the Investment Portfolio
The securities held by the City must be in compliance with Section H - Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section H - Authorized and Suitable Investments subsequent to the date of purchase, The Director of Finance must periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council. A report to City Council detailing the issue and recommendations to bring the portfolio back into compliance should be made.

K. Investment Pools
Government sponsored investment pools (Pools) are permitted under California Government Code Section 53601 et seq. and an excellent short -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 th e investment pool is being managed in a manner consistent with the objectives of the Policy.

Best efforts will be made to acquire the following information:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations and how it is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool/fund?

7. A fee schedule, and when and how is it assessed.
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8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
L. Collateralization
Collateral for Certificates of Deposit (CD) and Negotiated Certificates of Deposit (NCD) must comply with Government Code 53601, 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. The collateral level for Repurchase (and reverse repurchase) Agreements is 102% for reverse repurchase agreements of principal and accrued interest.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. 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.

M. Safekeeping and Custody
Securities purchased from brok er/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 ensu re that money is always safe and available when needed. All trades executed by a dealer will settle deliver y vs. payment (DVP) through the City's safekeeping agent. Securities held in custody for the City shall be independently audited on an annual basis t o verify investment holdings.

N. Diversification and Risk Tolerance
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
• The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio. • No more than 5% of the total port folio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy. • The City may elect to sell a security before its maturity and record a capital gain or loss in order to manage the quality, liqu idity or yield of the portfolio in response to market conditions or City’s risk preferences.
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• If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the fol lowing steps will be taken:
• Any actions taken related to the downgrade by the investment adviser will be communicated to the Treasury Committee in a timely manner. • If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council by the Treasurer.

Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer -term portfolios have the potential to achi eve higher returns. On the other hand, longer - term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns before maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
• The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy. • The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

O. Internal Control
The Treasurer or designee shall maintain a system of internal 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 change s in financial markets. Accordingly, the Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures.

P. Performance Standards

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The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account thw City’s risk constraints, the cash flow characteristics of the portfolio , and state and local laws, ordinances or resolutions that restrict investments.

The Director of Finance must monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the mon thly investment report. The Director of Finance shall select an appropriate, readily available index to use as a market benchmark.

Q. 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.

R. 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 bal ance 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, should 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.

S. Restrictions

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.
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6. The City will not invest in companies that develop and manufacture commodities involved in border and mass surveillance industries.

7. The City will not invest in companies invol ved in mass incarceration 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 Ju ly 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 divestment 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 Pension funds to divest from publicly-traded Fossil Fuel Companies.

GLOSSARY

Agencies: Federal agency securities and/or Government-sponsored enterprises.

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.

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. 518
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Large-denomination CDs are typically negotiable.

Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

Collateralization of Deposits: Process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing the repayment of deposit funds.

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 information 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.

Diversification: Investment contained within the portfolio will be diversified by security type, institution and maturity.

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): FNMA, li ke 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 mortgage 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 519
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receive timely payment of principal and interest.

Fossil Fuel: A fuel formed by natural processes, such as anaerobic decomposition of buried dead or ganisms, containing 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.

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 and credit of the U.S. Government. Ginnie 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.

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 (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

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 position s 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.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This interest may be amortized yield 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.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities & Exchange Commission: 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.

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 rule 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. Liqui d 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 cro ss-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 curren t market 521
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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

REVISING THE CITY OF RICHMOND'S FINANCIAL POLICIES BY ADOPTING

UPDATES TO THE INVESTMENT POLICY

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 Municipal Treasurers Association (the "CMTA") Certification Program; and

WHEREAS, a written investment policy is reviewed by the City's governing body annually and may be certified by the CMTA as often as needed according to relevance of importance; and

WHEREAS, the Investment Policy Certification Program (the "Program') of the CMTA was developed in 2012; and

WHEREAS, the Program was instituted in an effort to assist state and local governments interested in drafting or improving upon an existing investment policy; and

WHEREAS, the CMTA Certification Committee is comprised of fellow CMTA members, many of whom have earned the Certified California Municipal Treasurers (CCMT) designation and who volunteer to serve as reviewers; and

WHEREAS, for the policy to receive certification, it must be approved by all reviewers in all areas spelled out in the CMTA Certification Program; and

WHEREAS, the CMTA Certification Program investment policy includes language and rationales for those 19 sections that the Association deems as critical elements; and

WHEREAS, those critical elements are:

1. Policy

2. Scope

3. Prudence

4. Objective

5. Delegation of Authority

6. Ethics and Conflicts of interest

7. Authorized Financial Dealers and Institutions

8. Authorized and Suitable Investments

9. Review of Investment Portfolio

10. Investment Pools/Mutual Funds

11. Collateralization

12. Safekeeping and Custody

13. Diversification

14. Maximum Maturities

15. Internal Controls

16. Performance Standards

17. Reporting
523

Reso No.____

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18. Investment Policy Adoption

19. Glossary; and

WHEREAS, prior to December 03, 2024, the investment policy had not been certified by CMTA; and

WHEREAS, the investment policy was submitted to CMTA in December 2024 for certification consideration; CMTA provided constructive feedback to expand the policy; and

WHEREAS, the Finance Department made revisions to strengthen the investment policy based on the CMTA feedback and are resubmitting the policy for certification.

NOW, THEREFORE , BE IT RESOLVED, that the City Council of the City of Richmond, California, hereby amends the City's existing investment policy to adhere to the CMTA "Certification Program" Investment Policy guidelines which will be reviewed by the City Council annually and may be certified by CMTA as often as needed according to relevance of importance.

BE IT FURTHER RESOLVED, that this certification will serve to assure the City Council and the public that the City of Richmond is abiding by professional standards established to ensure prudent management of public funds.

BE IT FURTHER RESOLVED, that a copy of the new City of Richmond Investment Policy is attached hereto as Exhibit A.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 524

Reso No.____

Page 3 of 3 ends

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

AYES:

NOES:

ABSTENTIONS:

ABSENT:

CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:

Mayor
Approved as to form:

City Attorney
State of California }
County of Contra Costa : ss.

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

525
City of Richmond
Investment Policy
Update
526
Overview
• Introduction
• Implementation of Revised Investment Policy
• New Investment Restriction
• Summary of Responses from Investment Pools/Banks
• Investment Portfolio Composition
• December 2024 Investment Report
• Investment Composition Figure
• Investment Policy Certification Program
• Submission to CMTA
• Benefits of Certification
• Certification Results and Next Steps
• Recommended Action
• Next Steps
• Attachments
527
Introduction
• At the special City Council meeting on April 30, 2024, City Council directed City staff to review and modify the City of Richmond’s Investment Policy to add additional restrictions eliminating the investment of City funds in industries that facilitate violence, war, oppression, and apartheid. City staff has been directed to present Investment Policy modifications and recommendations for socially responsible investments to City Council for consideration.
• After research City staff developed four new restrictions to address the City Council’s concerns around socially responsible investments while complying with the text included in AB 2844:
528
New Investment Restrictions
• Restrictions on Investments
• No investment in companies facilitating violence, war, oppression, and apartheid • No investment in companies developing and manufacturing arms and weapons • No investment in companies involved in border and mass surveillance industries • No investment in companies involved in mass incarceration and detention industries • No investment in companies using prison labor to manufacture products 529
Actions Taken by City Staff
• Director of Finance sent letters to relevant financial institutions:
• CalTRUST
• Local Agency Investment Funds (LAIF)
• Mechanics Bank
• Revised Investment Policy submitted to California Municipal Treasurers Association for professional guidance and certification 530
Summary of
Responses from
Investment
Pools/Banks
• CalTRUST Response
• Unable to certify compliance with City's specific investment policy
• Can only certify compliance with CalTRUST Investment Policy • Pooled investment funds cannot place additional screens or restrictions
• LAIF Response
• PMIA does not currently hold any names listed on City's policy • Not prohibited from purchasing commercial paper issued by names on PMIA list
• Mechanics Bank Response
• Will comply with City's updated investment policy restrictions • Accounts are collateralized bank deposit accounts
• Do not invest City's funds, only back deposits with collateral 531
December
2024
Investment
Report
Total Pooled Cash
Balance
$334 million as of
December 2024
General Checking
Account
$16 million
Investment Accounts $318 million
532
Revised Investment Policy Submission to CMTA
• Adoption of Revised Investment Policy
• City Council adopted the revised policy in December 2024 • Submitted to California Municipal Treasurers Association (CMTA) for certification • CMTA Investment Policy Certification Program
• Developed with support from California Debt and Investment Advisory Commission (CDIAC)
• Provides professional guidance and assistance
• Aims to meet industry best practices for public sector agencies and districts in California
533
Benefits of Certification
• Trust, confidence and verification to your Governing Body that your policy has been reviewed and certified by a professional organization within California
• Your policy has been reviewed by fellow CMTA members, many of which have earned the Certified California Municipal Treasurers (CCMT) designation.
• To show transparency of your Governing Body to the public • To demonstrate that due diligence was performed on your Investment Policy • California Government Code sections are included (cited) in policy • Assist to satisfy auditors when reviewing your Investment Policy • Eighteen areas of Investment Policies are addressed: Scope, Prudence, Objective, Delegation of Authority, Ethics and Conflicts of Interest, Authorized Financial Dealers and Institutions, Authorized and Suitable Investments, Review of Investment Portfolio, Investment Pools/Mutual Funds, Collateralization, Safekeeping and Custody, Diversification, Maximum Maturities, Internal Controls, Performance Standards, Reporting, Investment Policy Adoption and Glossary
534
Certification Results
and Next Steps
The City of Richmond received the results of the investment policy submission on February 19, 2025, with a score of 80 out of 100. CMTA provided grading rubrics along with suggestions and examples to strengthen the current policy. The City of Richmond has 90 days (until May 19th) to re-submit the policy at no charge. Staff have incorporated the suggestions into the investment policy provided by CMTA for Council Approval prior to resubmitting for certification. 535
Recommended
Action

RECEIVE update on Investment Policy follow up action items and ADOPT Revised Investment Policy incorporating CMTA edits. – Finance Department (Andrea Miller 510-620-6740).
536
Next Steps
• Continued Exploration of Options
• Staff will refine the investment strategy
• Based on the revised Investment Policy
• Updates to City Council
• Significant changes around investments will be reported • City Council will be provided with updates
537
Thank you!
Questions?
538

Page 1 of 2 ends

April 15, 2025

Fire Department

DATE: April 15, 2025
TO: Mayor Martinez and Members of the City Council
FROM:

Aaron Osorio, Fire Chief
Rico Rincon, Deputy Fire Chief
Victor Bontempo, Battalion Chief/EMS Director

Subject:

Interagency Agreement with Contra Costa County Health
Services for Emergency Medical Services Program
FINANCIAL IMPACT: The funding consists of an allocation not to exceed $229,462 for Fiscal Year 2024-25 (Account Strings 1077- 107062022).

PREVIOUS COUNCIL
ACTION:

October 18, 2022

STATEMENT OF THE
ISSUE:

The Fire Department receives funding through a tax
measure (Measure H) passed in 1988 from the Contra
Costa County Health Services Division in support of the Fire Department’s Emergency Medical Services (EMS)
program. City staff are requesting approval of the
interagency agreement to continue receiving this funding for the current fiscal year.

RECOMMENDED ACTION:

ADOPT a resolution to ACCEPT and APPROPRIATE a
total of $229,462 in Measure H funding from the Contra
Costa County Health Services Division; and APPROVE
an interagency agreement for the period of July 1, 2024, through June 30, 2025 – Fire Department (Chief Aaron
Osorio 510-307-8021/Deputy Chief Rico Rincon 510-307-
8041/Battalion Chief Victor Bontempo 510-620-6893).

DISCUSSION:

AGENDA
REPORT
539

Page 2 of 2 ends

April 15, 2025

In 1988, Contra Costa County voters passed Measure H, which provided enhancements to the Contra Costa County Emergency Medical Services System. These funds are provided annually to fire agencies throughout the County to be used solely for emergency medical training/education, emergency and rescue equipment, and medical supplies.

Funding distributions were based on a “per engine” formula for many years. However, beginning in 2009, fire station closures began to prevent the full distribution of funds.

This created an unintended budget shortfall for impacted fire agencies. On May 14, 2013, a population-based allocation formula was adopted in an effort to support preserving fire first medical response to mitigate the reductions to fire agency funding.

The proposed interagency agreement would provide the City with Measure H funding of up to $229,462 for Fiscal Year 2024-25 (Attachment 1).

City staff recommends that the City Council (1) adopt the resolution to accept and appropriate funding from Contra Costa County Health Services toward the Fire Department’s Emergency Medical Services program, and (2) approve an interagency agreement for the period of July 1, 2024, through June 30, 2025 (Attachment 2).

DOCUMENTS ATTACHED:

Attachment 1 – Contra Costa County Interagency Agreement #23-551-5 Attachment 2 – Resolution
540
Form A-4 (Page 1 of 1)
Contra Costa County INTERAGENCY AGREEMENT Number 23-551-5 Standard Form A-4 (Agency Provides Services) Fund/Org # 7406 Revised 2022 Account # As Coded
Other #

1. Contract Identification .

Department: Health Services — Emergency Medical Services Subject: Interagency Agreement between Contra Costa County and Agency named below for prehospital emergency medical first responder services

2. Parties. The County of Contra Costa, California (County), for its Department named above, and the following named Agency mutually agree and promise as follows:

Agency: CITY OF RICHMOND FOR ITS FIRE DEPARTMENT (“FIRE DEPARTMENT” OR “AGENCY”)
Capacity: A Municipal Government
Address: 440 Civic Center Plaza, 2
nd
Floor, Richmond, California 94804

3. Term. The effective date of this Agreement is July 1, 2024 , and it terminates on June 30, 2025 unless sooner terminated as provided herein.

4. Payment Limit . County’s total payments to Agency under this Agreement shall not exceed $ 229,462.

5. County’s Obligations . County shall pay Agency for its provision of the services as set forth in the Payment Provisions incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.

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

7. General and Special Conditions. This Agreement is subject to the General Conditions and Special Conditions (if any) attached hereto, which are incorporated herein by reference.

8. Project. This Agreement implements in whole or in part the following described Project, the application and approval documents of which are incorporated herein by reference: Not Applicable

9. Legal Authority . This Agreement is entered into under and subject to the following legal authorities:

Health and Safety Code Sections 1797 et seq., California Government Code §§ 26227 and 31000.

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

COUNTY OF CONTRA COSTA, CALIFORNIA

BOARD OF SUPERVISORS
By
Chairman/Designee
ATTEST: Clerk of the Board of Supervisors
By XXXXXXXXXXXXXXXXXXXXXXXXXXX
Deputy
AGENCY
By
(Signature of authorized Agency Representative)

(Print name and title A)
By
(Signature of authorized Agency Representative)

(Print name and title B)

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 541
Form L-2 (Page 1 of 1)
Contra Costa County ACKNOWLEDGMENTS/APPROVALS Number 23-551-5 Standard Form L-2 (Purchase of Services – Long Form)
Revised 2014.2

ACKNOWLEDGMENT

STATE OF CALIFORNIA )
)

COUNTY OF CONTRA COSTA )
On ____________________(Date), before me, _______________________________(Name and Title of the Officer), personally
appeared______________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/a re subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS MY HAND AND OFFICIAL SEAL
______________________________________
Signature of Notary Public

Place Seal Above
ACKNOWLEDGMENT (by Corporation, Partnership, or Individual) (Civil Code §1189)

APPROVALS

RECOMMENDED BY DEPARTMENT FORM APPROVED COUNTY COUNSEL
County Counsel approval not required
By: By: per September 12, 2006 Board Order
Designee Deputy County Counsel

APPROVED: COUNTY ADMINISTRATOR
By:

Designee
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 542
Contra Costa County PAYMENT PROVISIONS
Standard Form P-1 (Fee Basis Contracts – Long Form)
Revised 2022 Number 23-551-5
Initials:___________ _____________
Agency County Dept.

Form P-1 (Page 1 of 1)

1. Payment Amounts. Subject to the Payment Limit of this Contract and subject to the following Payment Provisions, County will pay Contractor the following fee as full compensation for all services, work, expenses or costs provided or incurred by Contractor:
[ ] a. $ monthly,
[ ] b. $ per unit, as defined in the Service Plan,
[ ] c. $ after completion of all obligations and conditions herein, or [X] d. County will pay Contactor in an amount not to exceed $229,462 under this Contract; and In addition, the Fire Department shall allow the EMS Agency to deduct from its Measure H annual distributions any costs associated with the EMS agency acquisition or contracting for equipment, services or technology that directly benefits Fire Department. Any deductions performed will have written approvals from the EMS Agency Director and Department Fire Chief.

2. Payment Demands. Contractor shall submit written demands for payment on County Demand F orm D-15 in the manner and form prescribed by County. Contractor shall submit said demands for payment no later than 30 days from the end of the month in which the contract services upon which such demand is based were actually rendered. Upon approval of payment demands by the head of the County Department for which this Contract is made, or his designee, County will make payments as specified in Paragraph 1 (Payment Amounts) above.

3. Penalty for Late Submission. If County is unable to obtain reimbursement from the State of California as a result of Contractor’s failure to submit to County a timely demand for payment as specified in Paragraph 2 (Payment Demands) above, County shall not pay Contractor for such services to the extent County’s recovery of funding is prejudiced by the delay even though such services were fully provided. 4.

4. Right to Withhold. County has the right to withhold payment to Contractor wh en, in the opinion of County expressed in writing to Contractor, (a) Contractor’s performance, in whole or in part, either has not been carried out or is insufficiently documented, (b) Contractor has neglected, failed or refused to furnish information or to cooperate with any inspection, review or audit of its program, work or records, or (c) Contractor has failed to sufficiently itemize or document its demand(s) for payment.

5. Audit Exceptions. Contractor agrees to accept responsibility for receiving, replying to, and/or complying with any audit exceptions by appropriate county, state or fed eral audit agencies resulting from its performance of this Contract. Within 30 days of demand, Contractor shall pay County the full amount of County’s obligation, if any, to the state and/or federal government resulting from any audit exceptions, to the extent such are attributable to Contractor’s failure to perform properly any of its obligations under this Contract.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 543
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 1 of 9)
I. SERVICE ACTIVITIES.

A. Scope of Service . Fire Department shall provide prehospital emergency medical first responder services, within Fire Department’s primary service area , until patient care is assumed by County’s emergency ambulance contractor or by the County’s Emergency Medical Services Agency (“CCCEMSA”) designated ambulance receiving facility personnel, or until the patient has refused medical care or ambulance transp ortation. Such services shall be provided in accordance with requirements of Health and Safety Code Section 1797 et seq., and all relevant regulations promulgated thereunder (The “Act”), the County’s Emergency Medical Service and Ambulance Ordinance Code, and CCCEMSA’s medical treatment protocols and policies, which are incorporated herein by reference, and in accordance with any amendments or revisions thereof. In performing services hereunder, Fire Department shall work cooperatively with the CCCEMSA. The words and phrases used in this Contract shall have the same meaning as defined in the Act, unless otherwise specified.

B. Basic Services for Advanced Life Support (ALS) Departments. Fire Department shall perform the following services to the complete satisfaction of the County and CCCEMSA:

1. Fire Department shall provide paramedic (ALS) prehospital emergency medical first responder services 24 hours per day, 7 days per week.
a. In the event Fire Department increases its service level from Basic Life Support (BLS) to ALS, or decreases Department service level from ALS to BLS, this contract shall govern until such time as the Fire Department and CCCEMSA enter into a new contract or mutually agree to amend this contract for the provision of the new service level provided by Fire Department.

2. Fire Department shall assure that all personnel are oriented to CCCEMSA policies, medical treatment guidelines; Multi-casualty Incident Plan; medical radio communications (ambulances, base hospitals, County); medical equipment utilization and maintenance; and Paramedic and EMT local and statewide scope of practice.

3. Fire Department shall submit training curriculum to CCCEMSA for approval within 1 month of executed contract and provide approved training to prepare non-paramedic responders to assist a first responder paramedic in providing patient care.
a. The training must be provided prior to non-paramedic responder personnel assignment to responding apparatus.
b. In the event training curriculum is updated by Fire Department, updated curriculum must be submitted to CCCEMSA within 1 month of change.

4. Fire Department agrees that the performance of services under this Contract shall conform to high professional standards and shall comply with all CCCEMSA policies, medical treatment guidelines, and state and federal laws and regulations applicable to prehospital Emergency Medical Services (EMS) responders.

5. Fire Department shall designate one staff person with overall responsibility for EMS program coordination. Fire Department shall notify CCCEMSA in writing within 10 days of a change in the designation of the staff person.

C. Basic Services for Basic Life Support (BLS) Departments. Fire Department shall perform the following services to the complete satisfaction of the County and CCCEMSA:

1. Fire Department shall provide EMT (BLS) prehospital emergency medical first responder services Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 544
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 2 of 9)
24 hours per day, 7 days per week.

2. Fire Department shall assure that all personnel are oriented to CCCEMSA policies, medical treatment guidelines; Multi -casualty Incident Plan; medical radio communications (ambulances, base hospitals, County); medical equipment utilization and maintenance; and Paramedic and EMT local and statewide scope of practice.

3. Fire Department shall submit training curriculum to CCCEMSA for approval within 1 month of executed contract and provide approved training to prepare non -paramedic responders to assist a first responder paramedic in providing patient care.
a. The training must be provided prior to non -paramedic responder personnel assignment to responding apparatus.
b. In the event training curriculum is updated by Fire Department, updated curriculum must be submitted to CCCEMSA within 1 month of change.

II. PERFORMANCE STANDARDS.

A. Response Time Performance Standards . Fire Department’s governing body shall establish EMS response time standards within one year of executed contract and those standards shall be submitted to CCCEMS within one month of adoption by Fire Department’s governing body. Fire Department’s response times on requests for emergency medical services originating from within Fire Department’s primary service area shall be reported to CCCEMS according to Paragraph III, below (“Reporting Requirements”) and by the following performance standards.

1. Basic Life Support (BLS) First Response. Fire Department shall assure that a fire response vehicle equipped as required by Paragraphs II.C and II.L, (each, “First Responder Unit”) responds to every call for service as indicated by CCCEMS response policy.

2. Advanced Life Support (ALS) First Response . Fire Department shall assure that a fire response vehicle equipped as required by Paragraphs II.C and II.L, (each, “First Responder Unit”) responds to every call for service as indicated by CCCEMS response policy.

B. EMS Response Data Collection and Monitoring . Fire Department shall document and maintain data on all EMS responses.

1. Documentation of Response Data. For each medical emergency response, Fire Department shall document and report the following:
a. EMS incident number (if available);
b. Fire Department’s incident number;
c. Time call received;
Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 545
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 3 of 9)
d. Location of call (address, city and map coordinates); e. Nature of call (EMD code/determinant);
f. Time of initial dispatch;
g. Time and unit # of first fire unit on scene;
h. Service level of first fire unit on scene (ALS Paramedic or BLS EMT-I); and i. Time ambulance provider notified IF ambulance provider is dispatched by a different communications center than Fire Department.

C. Staffing Standards and Personnel Preparation for ALS Departments.

1. Advanced Life Support First Responder Units. Fire Department shall staff each First Responder Unit with a minimum of one (1) CCCEMSA accredited paramedic.

2. Credentials. Fire Department shall assure that personnel normally assigned to respond to emergency medical requests must be EMT currently certified in California, or paramedics currently licensed in California and accredited in Contra Costa County. This requirement shall not apply to volunteer or paid on-call staff, however, all volunteer or paid on-call staff shall have first responder training to include first aid, CPR, and first responder defibrillation.

3. Required Advanced Cardiac Life Support Training . Fire Department’s paramedic personnel assigned to provide paramedic service under this Contract must be currently certified in Advanced Cardiac Life Support (ACLS) according to American Heart Association standards . or have successfully completed similar training as approved by the CCCEMSA Medical Director.

4. Required Trauma Training . Fire Department’s paramedic personnel assigned to provide paramedic service under this Agreement must have successfully completed a Basic Trauma Life Support (BTLS) course approved by the American College of Emergency Physicians, or a Prehospital Trauma Life Support (PHTLS) course approved by the American College of Surgeons.

5. Required Pediatrics Training . Fire Department’s paramedic personnel assigned to provide paramedic service under this Agreement must be currently certified in one of the following:

Pediatric Educa tion for Prehospital Professionals (PEPP) or Pediatric Advanced Life Support (PALS).

D. Staffing Standards and Personnel Preparation for BLS Departments

1. BLS First Responder Units . Fire Department shall staff each First Responder Unit with staff possessing a valid California EMT certification.

2. Credentials. Department shall assure that prehospital personnel assigned to respond to requests for emergency medical services must, at a minimum, hold a valid and unrestricted California EMT certificate and have attended an CCCEMA system orientation . This requirement shall not apply to volunteer or paid on-call staff.

E. Provisional Assignment. Fire Department shall provide a (“provisional assignment”) program within Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 546
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 4 of 9)
1 month of executed Contract to be approved by CCCEMSA for first responder paramedics with less than two years full-time experience as a paramedic.

F. Medical Control. Fire Department acknowledges and agrees to the following:

1. CCCEMSA Medical Director shall have overall responsibility for medical control of Fire Department;

2. Medical control is exercised prospectively through policies, medical treatment guidelines , and training established and/or approved by the CCCEMSA Medical Director;

3. The Base Hospital designated by CCCEMSA provides on-line medical direction and consultation on medical and patient related issues;

4 Retrospective medical control includes monitoring, quality improvement, incident review, and disciplinary processes conducted by the Fire Department, base hospital, CCCEMSA, and the State EMS Authority in accordance with applicable CCCEMSA policy (found at https://cchealth.org/ems/policies-tg.php) , and state laws and regulations;

5. Fire Department’s EMT and paramedic personnel shall comply with all requirements as established by the State of California and with all applicable provisions of CCCEMSA policy and medical treatment guidelines; and

6. The CCCEMSA Medical Director has the sole and exclusive authority to approve training, training curriculum, and the methods of training, or to modify the training requirements established by CCCEMSA policy and medical treatment guidelines.

G. EMS System Training.

1. Fire Department’s training on the “Contra Costa County Multi-Casualty Incident Plan ” shall be conducted during training academies and shall be provided to all prehospital personnel semi- annually. The annual and semi-annual training shall include, at a minimum, the following:
a. Basic orientation to the Multi-Casualty Incident (MCI) Plan, notifi cation levels, communications, roles and responsibilities and patient triage and distribution; b. Initiating an MCI with communications center and CCCEMSA early in the response and according to county MCI Plan;
c. Participation in interagency functional or field exercises; and d. Fire Department will collaborate with the CCCEMSA to continuously evaluate and improve Multi-Casualty Incident Plan training and performance;

2. Fire Department will submit an annual report on training of personnel including:
a. Number and percentage of personnel trained on MCI plan.

H. Quality Improvement Program.

1. Fire Department shall maintain a comprehensive continuous Quality Improvement (QI) Program which has been designed to interface with CCCEMSA’s countywide QI program, and which has Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 547
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 5 of 9)
been approved by the CCCEMSA Medical Director. Any amendments to Fire Department’s QI program are subject to approval by CCCEMSA Medical Director.

2. Fire Department shall provide a physician, or a Registered Nurse or EMT-P experienced in prehospital, quality improvement to implement and oversee this ongoing QI program. This individual shall be responsible for the prehospital quality improvement program for all emergency medical services provided pursuant to the Agreement.

3. Fire Department’s QI program shall establish an organized, coordinated, multidisciplinary approach to the assessment of prehospital emergency medical response and patient care.

4. Fire Department shall regularly participate in CCCEMSA system related QI meetings, activities and QI project teams.

5. Personnel participating in the oversight of Fire Department’s prehospital quality improvement program shall complete an Institute of Healthcare Improvement (IHI) Certificate for Patient Safety, Quality and Leadership or equivalent as approved by CCCEMSA within the first 12 months of hire by the Fire Department, or within six months of being designated as the person responsible for overseeing the QI program or QI activities.

6. Fire Department shall review their prehospital performance indicators from their QI plan quarterly.

Fire Department shall develop and provide training, at least annually, to its personnel based on its quarterly evaluations.

7. Fire Department shall have a program to evaluate patient satisfaction as part of their quality program.

I. Assaultive Behavior Management Training . Annually, Fire Department shall provide all first responder personnel with the training, knowledge, and skills to effectively manage patients with psychiatric, drug/alcohol, excited delirium, and other behavioral or stress related problems as well as management of violent or poten tially violent patients . Fire Department shall provide its training curriculum together with a report with the names, certification numbers and date each of its personnel were trained.

J. Infection Control. Fire Department shall develop and strictly enforce policies for infection control and contaminated materials disposal to decrease the chance of communicable disease exposure in accordance with existing Federal and State laws and regulations. Fire Department shall designate an infection control officer and provide notification to CCCEMSA of said designation. The infection control officer shall successfully complete an infection control officer course that meets the requirements of “National Fire Protection Association 1581” or as may be required by law.

K. Joint Training. When requested by CCCEMSA, Fire Department will participate in joint training activities with Contra Costa County ambulance service providers, hospital personnel, and dispatch centers.

L. General Equipment. Each Fire Department apparatus shall carry all emergency supplies and equipment appropriate for the level of service provided (ALS or BLS) as identified in CCCEMSA “Master Equipment Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 548
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 6 of 9)
List” posted on the CCCEMSA website. Fire Department shall ensure that all new and upgrades to existing technology is interoperative between other first responder agencies, ambulance providers, hospitals and CCCEMSA.

M. Equipment Replacement and Exchange. Fire Department is responsible for maintaining a system for the replacement of expendable equipment and supplies.

N. Safely Surrender Baby Program.

1. Fire Department agrees to be designated as a “safe surrender site” as defined by Health and Safety Code section 1255.7(a)(1)(A). If Fire Department is not already designated as a “safe surrender site” Fire Department will undertake necessary action to become a “safe surrender site,” within 90 days of the effective date of this Contract.

2. Fire Department personnel will be trained in the requirements of California’s safely surrendered baby program as set forth in Health and Safety Code section 1255.7, et seq.

3. Fire Stations designated as Safe Surrender Sites will have appropriate signage and will have at all times at least two (2) of the following: coded confidential ankle bracelet and medical questionnaire.

O. Communications Equipment and Dispatch.

1. Fire Department shall equip each First Responder Unit with emergency portable radios on EBRCS (East Bay Regional Communication System), programmed with fleet mapping identified for use in the EMS System and a cellular telephone for prehospital to base hospital communications.

2. Fire Department’s dispatch will utilize the medical priority dispatch system for all calls requesting emergency medical services.

3. Fire Department will assure that its designated dispatch assigns response level based on MPDS (medical priority dispatch system) determinant and corresponding response modality pursuant to CCCEMSA policy.

P. Cooperation With Evolving EMS System . Fire Department agrees to participate and assist in the development of EMS system improvements, which includes but is not limited to equipment upgrades, and to bear the costs of such changes subject to a mutually agreed upon implementation schedule.

Q. Observation by EMS Agency Staff. A CCCEMSA representative may, at any time coordinate with department (Fire Chief or EMS Division), to directly observe Fire Department’s equipment stock and EMS related operations or inspect Fire Department apparatus for required EMS equipment.

R. Records And Reporting Requirements. Fire Department shall comply with the following record keeping and reporting requirements and shall provide reports to CCCEMSA , as established i n Paragraph III (“Reporting Requirements”) , all records, information and reports requested by CCCEMSA to evaluate the emergency medical services provided by Fire Department under this Contract, including, but not limited to, the following:

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 549
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 7 of 9)

1. Out of Service Reporting. For each First Responder Unit, Fire Department shall report to Contract Manager on a monthly basis the number of occurrences in which a First Responder Unit was out of service for any periods of time exceeding six consecutive hours or was not staffed to provide the department’s provider level of emergency services (EMT or paramedic).

2. Patient Care Data Collection and Reporting.
a. Fire Department shall assure that all department prehospital personnel receive orientation and training on the department’s designated electronic health care record software program. Training shall include information on documentation quality and current state and federal patient privacy laws and health care provider responsibilities b. Fire Department shall assure that all of its prehospital personnel provide appropriate patient care documentation for every patient contact.
c. Fire Department shall ensure that a CCCEMSA approved Electronic Healthcare Record (EHR), is accurately completed by the EMT or paramedic who has primary responsibility for patient care.
1) Fire Department shall transmit completed EHR to the EHR server in accordance with CCCEMSA policy.
2) Fire Department shall generate monthly EHR compliance reports to CCCEMSA. d. Fire Department shall provide a copy of any EHR to CCCEMSA promptly upon request. e. Fire Department shall provide CCCEMSA reliable access to its EHR platform.

CCCEMSA shall have access to all EHRs within 24 hours of patient contact. f. Fire Department shall provide CCCEMSA with patient care data for all patient responses in a computer readable format that is suitable for statistical analysis. 1) Patient care data collected and provided shall be consistent with the comprehensive data file at CCCEMSA. Such data shall include number of patients treated on scene, number of patients transported, and number of patients who refused transport. 2) Patient care data collected and available shall comply with the National EMS Information System ( NEMSIS) specifications and the comprehensive data specifications approved by the CCCEMSA.

3. Response Time Statistical Data and Reporting. Within 20 working days following the last day of each month, Fire Department shall provide CCCEMSA with first responder response time in a single, computer readable format suitable for statistical analysis. Records shall include the elements identified in Sections II.B.1 above.
a. This reporting requirement may be satisfied by a FirstWatch connection or to a n CCCEMSA approved data depository. Records shall include the elements identified in Sections (II.B.1) in this Contract.

4. Personnel. Fire Department shall:
a. Provide an initial roster of currently credentialed paramedic and EMT personnel to CCCEMSA within 1 month of executed contract.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 550
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 8 of 9)
b. Notify CCCEMSA in writing within three (3) days when any prehospital personnel are no longer employed by Fire Department, or when any prehospital providers ’ required credentials have lapsed.
c. Maintain on file at all times, copies of current and valid credentials , certifications, or licenses for all emergency medical personnel performing services under this Contract. d. Fire Department shall notify CCCEMSA in writing within three (3) days of any actual or alleged violation of Health and Safety Code section 1798.200(a)(1) through (a)(13) by any prehospital personnel.

5. Other Reports. Fire Department shall provide such other reports and records as may be reasonably required by CCCEMSA.

S. County Obligations. In consideration of Fire Department providing the services and meeting its commitments as described in this Contract, County shall pay Fire Department the amounts specified in Paragraph 1.d. of the Payment Provisions of this Contract.

III. REPORTING REQUIREMENTS.

Contract
Section

Report Frequency of
Report
I.B.3/I.C.3 ALS/BLS submit training curriculum for non-paramedic First Responders
(One Time)
within 1 month
of executed
contract
II.A Submit department’s EMS response time standards.
***Absence of department standard d oes not negate R.3
reporting
(One Time)
within one year
of executed
contract
II.B.1 EMS Response Data As requested
R.3 Response Time Data (First Responder response time data) Monthly II.E

ALS ONLY
Provisional Assignment (One Time)
within 1 month
of contract
G.2

Number and Percentage of Employees Trained on MCI Plan
and EMS Annual Update
Annually
I Assaultive Behavior Training (names, certification numbers, and dates First Responder’s were trained)
Annually
R.1 In-Service Report (number of occurrences in which a First Responder Unit was not in service for more than six
consecutive hours)
Monthly
Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 551
Contra Costa County SERVICE PLAN
Standard Form L-3
Revised 2008 Number 23-551-5
Initials:__________ ____________
Contractor County Dept.

L-3 (Page 9 of 9)
R.1

Out of Service Report AND/OR number of occurrences in
which an ALS First Responder Unit was not staffed with a paramedic
Monthly
R.2.c Patient Care Data Collection (compliance report for EHR) Monthly R.4.a Provide an initial roster of currently credentialed paramedic and EMT personnel
Within 1 month
of executed
contract
R.4.b/d Notify CCCEMSA of separation of employment or Section 1798.200 violation
Within 3 days
of separation
OR actual or
alleged violation
R.6 Other Reports as Required As requested

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 552
Contra Costa County SPECIAL CONDITIONS
Standard Form L-4
Revised 2014 Number 23-551-5
Initials:___________ _____________
Contractor County Dept.

L-4 (Page 1 of 2)

1. Retention of Records . Paragraph 3. (Records), Subparagraph a. (Retention of Records) of the General Conditions is hereby deleted in its entirety and replaced with the following:

“a. Retention of Records . Fire Department shall retain all documents pert aining to this Contract for five (5) years from the end of the fiscal year following the date of service; for any further period that is required by law; and until all Federal/State audits are complete and exceptions resolved for this contract’s funding period. Upon request, and except as otherwise restricted by law, Fire Department shall make these records available to authorized representatives of the County, the State of California, and the United States Government.”

2. Termination. Paragraph 5. (Termination and Cancellation), Subparagraph a. (Written Notice) of the General Conditions is hereby deleted in its entirety.

3. Indemnification. Paragraph 18. (Indemnification) is hereby deleted and replaced in its entirety by the following paragraph:

“18. Indemnification.
a. Fire Department shall defend, save harmless and indemnify the County and its officers, agents and employees for the Fire Department’s share of all liabilities and claims for damages for death, sickness or injury to persons or property, including without limitation, all consequential damages, from any cause whatsoever arising from or connected with the operations or the services of Fire Department hereunder, resulting from the conduct, negligent or otherwise, of Fire Department, its agents or employees.

b. The County shall defend, save harmless and indemnify Fire Department and its officers, agents and employees for the County’s share of all liabilities and claims for damages for death, sickness or injury to persons or property, including without limitation, all consequential damages, from any cause whatsoever arising from or connected with the operations or the services of the County, resulting from the conduct, negligent or otherwise, of the County or its employees.”

4. Insurance. Paragraph 19. (Insurance) of the General Conditions is hereby deleted and replaced in its entirety by the following paragraph:

“19. Insurance. During the entire term of this Contract and any extension or modification thereof, Fire Department shall keep in e ffect insurance policies meeting the following insurance requirements unless otherwise expressed in these Conditions:

a. Liability Insurance . Fire Department shall provide incidental medical malpractice insurance and comprehensive liability insurance, in cluding coverage for owned and non - owned vehicles, each with a minimum combined single limit coverage of $1,000,000 for all damages, including consequential damages, due to bodily injury, sickness or disease, or death to any person or damage to or destruct ion of property, including the loss of use thereof, arising from each act, omission, or occurrence. Such insurance shall be endorsed to include the County of Contra Costa and their respective officers and employees as Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 553
Contra Costa County SPECIAL CONDITIONS
Standard Form L-4
Revised 2014 Number 23-551-5
Initials:___________ _____________
Contractor County Dept.

L-4 (Page 2 of 2)
additional named insured as to all ser vices performed by Fire Department under this agreement.

b. Workers’ Compensation. Fire Department shall provide workers’ compensation insurance coverage for its employees.

c. Certificate of Insurance. Fire Department shall provide the County with a ce rtificate(s) of insurance evidencing liability, incidental medical malpractice and workers’ compensation insurance as required herein no later than the effective date of this Contract. If Fire Department should renew the insurance policy(ies) or acquire ei ther a new insurance policy(ies) or amend the coverage afforded through an endorsement to the policy(ies) at any time during the term of this Contract, then Fire Department shall provide (a) current certificate(s) of insurance.

d. Additional Insurance Pro visions. The insurance policies provided by the Fire Department shall include a provision for thirty (30) days written notice to County before cancellation or material change of the above specified coverage. Said policies shall constitute primary insurance as to the County, the State and Federal Governments, and their officers, agents, and employees, so that other insurance policies held by them or their self -insurance program(s) shall not be required to contribute to any loss covered under the Fire Department’s insurance policy or policies.”

5. All occurrences of the term “Contractor” in th e General Conditions shall be replaced by the term “Fire Department”.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 554
Contra Costa County GENERAL CONDITIONS
Standard Form L-5 (Purchase of Services - Long Form)
Revised 2016

Contractor County Dept.

Form L-5 (Page 1 of 7)

1. Compliance with Law. Contractor is subject to and must comply with all applicable federal, state, and local laws and regulations with respect to its performance under this Contract, including but not limited to, licensing, employment, and purchasing practices; and wages, hours, and conditions of employment, including nondiscrimination.

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

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

a. Retention of Records. Contractor must retain all documents pertaining to this Contract for five years from the date of submission of Contractor's final payment demand or final Cost Report; for any further period that is required by law; and until all federal/state audits are complete and exceptions resolved for this Contract's funding period. Upon request, Contractor must make these records available to authorized representatives of the County, the State of California, and the United States Government.

b. Access to Books and Records of Contractor, Subcontractor . Pursuant to Section 1861(v)(1) of the Social Security Act, and any regula tions promulgated thereunder, Contractor must, upon written request and until the expiration of five years after the furnishing of services pursuant to this Contract, make available to the County, the Secretary of Healt h and Human Services, or the Comptroller General, or any of their duly authorized representatives, this Contract and books, documents, and records of Contractor necessary to certify the nature and extent of all costs and charges hereunder.

Further, if Contractor carries out any of the duties of this Contract through a subcontract with a value or cost of $10,000 or more over a twelve-month period, such subcontract must contain a clause to the effect that upon written request and until the expiration of five years after the furnishing of services pursuant to such subcontract, the subcontractor must make available to the County, the Secretary, the Comptroller General, or any of their duly authorized representatives, the subcontract and books, documents, and re cords of the subcontractor necessary to verify the nature and extent of all costs and charges thereunder.

This provision is in addition to any and all other terms regarding the maintenance or retention of records under this Contract and is binding on the heirs, successors, assigns and representatives of Contractor.

4. Reporting Requirements. Pursuant to Government Code Section 7550, Contractor must include in all documents and written reports completed and submitted to County in accordance with this Contrac t, a separate section listing the numbers and dollar amounts of all contracts and subcontracts relating to the preparation of each such document or written report. This section applies only if the Payment Limit of this Contract exceeds $5,000.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 555
Contra Costa County GENERAL CONDITIONS
Standard Form L-5 (Purchase of Services - Long Form)
Revised 2016

Contractor County Dept.

Form L-5 (Page 2 of 7)

5. Termination and Cancellation.

a. Written Notice. This Contract may be terminated by either party, in its sole discretion, upon thirty- day advance written notice thereof to the other, and may be cancelled immediately by written mutual consent.

b. Failure to Perform. County, upon written notice to Contractor, may immediately terminate this Contract should Contractor fail to perform properly any of its obligations hereunder. In the event of such termination, County may proceed with the work in any reasonable manner it chooses. The cost to County of completing Contractor's performance will be deducted from any sum due Contractor under this Contract, without prejudice to County's rights to recover damages.

c. Cessation of Funding. Notwithstanding any contrary language in Paragraphs 5 and 11, in the event that federal, state, or other non-County funding for this Contract ceases, this Contract is terminated without notice.

6. Entire Agreement. This Contract contains all the terms and conditions agreed upon by the parties. Except as expressly provided herein, no other understanding, oral or otherwise, regarding the subject matter of this Contract will be deemed to exist or to bind any of the parties hereto.

7. Further Specifications for Operating Procedures. Detailed specifications of operating procedures and budgets required by this Contract, including but not limited to, monitoring, evaluating, auditing, billing, or regulatory changes, may be clarified in a written letter signed by Contractor and the department head, or designee, of the county department on whose behalf this Contract is made. No written clarification prepared pursuant to this Section will operate as an amendment to, or be considered to be a part of, this Contract.

8. Modifications and Amendments.

a. General Amendments. In the event that the total Payment Limit of this Contract is less than $200,000 and this Contract was executed by the County’s Purchasing Agent, this Contract may be modified or amended by a written document executed by Contractor and th e County’s Purchasing Agent or the Contra Costa County Board of Supervisors, subject to any required state or federal approval. In the event that the total Payment Limit of this Contract exceeds $200,000 or this Contract was initially approved by the Board of Supervisors, this Contract may be modified or amended only by a written document executed by Contractor and the Contra Costa County Board of Supervisors or, after Board approval, by its designee, subject to any required state or federal approval.

b. Minor Amendments. The Payment Provisions and the Service Plan may be amended by a written administrative amendment executed by Contractor and the County Administrator (or designee), subject to any required state or federal approval, provided that such administrative amendment may not increase the Payment Limit of this Contract or reduce the services Contractor is obligated to provide pursuant to this Contract.

9. Disputes. Disagreements between County and Contractor concerning the meaning, requirements, or performance of this Contract shall be subject to final written determination by the head of the county department for which this Contract is made, or his designee, or i n accordance with the applicable procedures (if any) required by the state or federal government.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 556
Contra Costa County GENERAL CONDITIONS
Standard Form L-5 (Purchase of Services - Long Form)
Revised 2016

Contractor County Dept.

Form L-5 (Page 3 of 7)

10. Choice of Law and Personal Jurisdiction.

a. This Contract is made in Contra Costa County and is governed by, and must be construed in accordance with, the laws of the State of California.

b. Any action relating to this Contract must be instituted and prosecuted in the courts of Contra Costa County, State of California.

11. Conformance with Federal and State Regulations and Laws . Should federal or state regulations or laws touching upon the subject of this Contract be adopted or revised during the term hereof, this Contract will be deemed amended to assure conformance with such federal or state requirements.

12. No Waiver by County. Subject to Paragraph 9. (Disput es) of these General Conditions, inspections or approvals, or statements by any officer, agent or employee of County indicating Contractor's performance or any part thereof complies with the requirements of this Contract, or acceptance of the whole or any part of said performance, or payments therefor, or any combination of these acts, do not relieve Contractor's obligation to fulfill this Contract as prescribed; nor is the County thereby prevented from bringing any action for damages or enforcement arisi ng from any failure to comply with any of the terms and conditions of this Contract.

13. Subcontract and Assignment. This Contract binds the heirs, successors, assigns and representatives of Contractor.

Prior written consent of the County Administrator or h is designee, subject to any required state or federal approval, is required before the Contractor may enter into subcontracts for any work contemplated under this Contract, or before the Contractor may assign this Contract or monies due or to become due, by operation of law or otherwise.

14. Independent Contractor Status. The parties intend that Contractor, in performing the services specified herein, is acting as an independent contractor and that Contractor will control the work and the manner in which it is performed.

This Contract is not to be construed to create the relationship between the parties , or between County and any Contractor employee, of agent, servant, employee, partnership, joint venture, or association. Neither Contractor, nor any of its employees, is a County employee. This Contract does not give Contractor, or any of its employees, any right to participate in any pension plan, workers’ compensation plan, insurance, bonus, or similar benefits County provides to its employees. In the event that County exercises its right to terminate this Contract, Contractor expressly agrees that it will have no recourse or right of appeal under any rules, regulations, ordinances, or laws applicable to employees.

15. Conflicts of Interest. Contractor covena nts that it presently has no interest and that it will not acquire any interest, direct or indirect, that represents a financial conflict of interest under state law or that would otherwise conflict in any manner or degree with the performance of its services hereunder. Contractor further covenants that in the performance of this Contract, no person having any such interests will be employed by Contractor. If requested to do so by County, Contractor will complete a “Statement of Economic Interest” form an d file it with County and will require any other person doing work under this Contract to complete a “Statement of Economic Interest” form and file it with County.

Contractor covenants that Contractor, its employees and officials, are not now employed by County and have not been so employed by County within twelve months immediately preceding this Contract; or, if so employed, did not then and do not now occupy a position that would create a conflict of interest under Government Code section 1090. In Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 557
Contra Costa County GENERAL CONDITIONS
Standard Form L-5 (Purchase of Services - Long Form)
Revised 2016

Contractor County Dept.

Form L-5 (Page 4 of 7)
addition to any indemnity provided by Contractor in this Contract, Contractor will indemnify, defend, and hold the County harmless from any and all claims, investigations, liabilities, or damages resulting from or related to any and all alleged conflicts of interest. Contractor warrants that it has not provided, attempted to provide, or offered to provide any money, gift, gratuity, thing of value, or compensation of any kind to obtain this Contract.

16. Confidentiality. To the extent allowed under the California Public Records Act, Contractor agrees to comply and to require its officers, partners, associates, agents and employees to comply with all applicable state or federal statutes or regulations respecting confidentiality, including but not limited to, the identity of persons served under this Contract, their records, or services provided them, and assures that no person will publish or disclose or permit or cause to be published or disclosed, any list of persons rece iving services, except as may be required in the administration of such service. Contractor agrees to inform all employees, agents and partners of the above provisions, and that any person knowingly and intentionally disclosing such information other than as authorized by law may be guilty of a misdemeanor.

17. Nondiscriminatory Services. Contractor agrees that all goods and services under this Contract will be available to all qualified persons regardless of age, gender, race, religion, color, national origin, ethnic background, disability, or sexual orientation, and that none will be used, in whole or in part, for religious worship.

18. Indemnification. Contractor will defend, indemnify, save, and hold harmless County and its officers and employees from any a nd all claims, demands, losses, costs, expenses, and liabilities for any damages, fines, sickness, death, or injury to person(s) or property, including any and all administrative fines, penalties or costs imposed as a result of an administrative or quasi-judicial proceeding, arising directly or indirectly from or connected with the services provided hereunder that are caused, or claimed or alleged to be caused, in whole or in part, by the negligence or willful misconduct of Contractor, its officers, employees, agents, contractors, subcontractors, or any persons under its direction or control.

If requested by County, Contractor will defend any such suits at its sole cost and expense. If County elects to provide its own defense, Contractor will reimburse County for any expenditures, including reasonable attorney’s fees and costs.

Contractor’s obligations under this section exist regardless of concurrent negligence or willful misconduct on the part of the County or any other person; provided, however, that Contractor is not required to indemnify County for the proportion of liability a court determines is attributable to the sole negligence or willful misconduct of the County, its officers and employees. This provision will survive the expiration or termination of this Contract.

19. Insurance. During the entire term of this Contract and any extension or modification thereof, Contractor shall keep in effect insurance policies meeting the following insurance requirements unless otherwise expressed in the Special Conditions:

a. Commercial General Liability Insurance. For all contracts where the total payment limit of the contract is $500,000 or less, Contractor will provide commercial general liability insurance, including coverage for business losses and for owned a nd non-owned automobiles, with a minimum combined single limit coverage of $500,000 for all damages, including consequential damages, due to bodily injury, sickness or disease, or death to any person or damage to or destruction of property, including the l oss of use thereof, arising from each occurrence. Such insurance must be endorsed to include County and its officers and employees as additional insureds as to all services performed by Contractor under this Contract. Said policies must constitute primar y insurance as to County, the state and federal governments, and their officers, agents, and employees, so that other insurance policies held by Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 558
Contra Costa County GENERAL CONDITIONS
Standard Form L-5 (Purchase of Services - Long Form)
Revised 2016

Contractor County Dept.

Form L-5 (Page 5 of 7)
them or their self -insurance program(s) will not be required to contribute to any loss covered under Contractor ’s insurance policy or policies. Contractor must provide County with a copy of the endorsement making the County an additional insured on all commercial general liability policies as required herein no later than the effective date of this Contract. For all contracts where the total payment limit is greater than $500,000, the aforementioned insurance coverage to be provided by Contractor must have a minimum combined single limit coverage of $1,000,000.

b. Workers' Compensation. Contractor must provide workers' compensation insurance coverage for its employees.

c. Certificate of Insurance. The Contractor must provide County with (a) certificate(s) of insurance evidencing liability and worker's compensation insurance as required herein no later than the effective date of this Contract. If Contractor should renew the insurance policy(ies) or acquire either a new insurance policy(ies) or amend the coverage afforded through an endorsement to the policy at any time during the term of this Contract, then Contractor must provide (a) current certificate(s) of insurance.

d. Additional Insurance Provisions. No later than five days after Contractor’s receipt of: (i) a notice of cancellation, a notice of an intention to cancel, or a notice of a lapse in any of Contractor’s insurance coverage required by this Contract; or (ii) a notice of a material change to Contractor’s insurance coverage required by this Contract, Contractor will provide Department a copy of such notice of cancellation, notice of intention to cancel, notice of lapse of coverage, or notice of material change. Contractor’s failure to provide Department the notice as required by the preceding sentence is a default under this Contract

20. Notices. All notices provided for by this Contract must be in writing and may be delivered by deposit in the United States mail, postage prepaid. Notices to County must be addressed to the head of the county department for which this Contract is made. Notices to Contractor must be addressed to the Contractor's address designated herein. The effective date of notice is the date of deposit in the mails or of othe r delivery, except that the effective date of notice to County is the date of receipt by the head of the county department for which this Contract is made.

21. Primacy of General Conditions. In the event of a conflict between the General Conditions and the Special Conditions, the General Conditions govern unless the Special Conditions or Service Plan expressly provide otherwise.

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

23. Possessory Interest. If this Contract results in Contractor having possession of, claim or right to the possession of land or improvements, but does not vest ownership of the land or improvements in the same person, or if this Contract results in the placement of taxable improvements on tax exempt land (Revenue & Taxation Code Section 107), such interest or improvements may represent a possessory interest subject to property tax, and Contractor may be subject to the payment of property taxes levied on such interest. Contractor agrees that this provision complies with the notice requirements of Revenue & Taxation Code Section 107.6, and waives all rights to further notice or to damages under that or any comparable statute.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 559
Contra Costa County GENERAL CONDITIONS
Standard Form L-5 (Purchase of Services - Long Form)
Revised 2016

Contractor County Dept.

Form L-5 (Page 6 of 7)

24. No Third-Party Beneficiaries. Nothing in this Contract may be construed to create, and the parties do not intend to create, any rights in third parties.

25. Copyrights, Rights in Data , and Works Made for Hire . Contractor will not publish or transfer any materials produced or resulting from activities supported by this Contract without the express written consent of the County Administrator. All reports, original drawings, graphics, plans, studies and other data and documents, in whatever form or for mat, assembled or prepared by Contactor or Contractor’s subcontractors, consultants, and other agents in connection with this Contract are “works made for hire” (as defined in the Copyright Act, 17 U.S.C. Section 101 et seq., as amended) for County, and Contractor unconditionally and irrevocably transfers and assigns to Agency all right, title, and interest, including all copyrights and other intellectual property rights, in or to the works made for hire. Unless required by law, Contractor shall not publish, transfer, discuss, or disclose any of the above-described works made for hire or any information gathered, discovered, or generated in any way through this Agreement, without County’s prior express written consent. If any of the works made for hire is subject to copyright protection, County reserves the right to copyright such works and Contractor agrees not to copyright such works. If any works made for hire are copyrighted, County reserves a royalty-free, irrevocable license to reproduce, publish, and use the works made for hire, in whole or in part, without restriction or limitation, and to authorize others to do so.

26. Endorsements. In its capacity as a contractor with Contra Costa County, Contractor will not publicly endorse or oppose the use of any particular brand name or commercial product without the prior written approval of the Board of Supervisors. In its County-contractor capacity, Contractor will not publicly attribute qualities or lack of qualities to a particular brand name or commercial product in the absence of a well -established and widely accepted scientific basis for such claims or without the prior written approval of the Board of Supervisors. In its County- contractor capacity, Contractor will not participate or appear in any commercially produced advertisements designed to promote a particular brand name or commercial product, even if Contractor is not publicly endorsing a product, as long as the Contractor's presence in the advertisement can reasonably be interpreted as an endorsement of the product by or on behalf of Contra Costa County. Notwithstanding the foregoing, Contractor may express its views on products to other contractors, the Board of Supervisors, County officers, or others who may be authorized by the Board of Supervi sors or by law to receive such views.

27. Required Audit.

a. If Contractor expends $750,000 or more in federal grant funds in any fiscal year from any source, Contractor must provide to County, at Contractor's expense, an audit conforming to the requirements set forth in the most current version of Code of Federal Regulations, Title 2, Part 200, Subpart F.

b. If Contractor expends less than $750,000 in federal grant funds in any fiscal year from any source, but the grant imposes specific audit requirements, Contractor must provide County with an audit conforming t o those requirements.

c. If Contractor expends less than $750,000 in federal grant funds in any fiscal year from any source, Contractor is exempt from federal audit requirements for that year except as required by Code of Federal Regulations, Title 2, Part 200, Subpart F. Contractor shall make its records available for, and an audit may be required by, appropriate officials of the federal awarding agency, the General Accounting Office , the pass-through entity and/or the County.

If an audit is required, Contractor must provide County with the audit.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 560
Contra Costa County GENERAL CONDITIONS
Standard Form L-5 (Purchase of Services - Long Form)
Revised 2016

Contractor County Dept.

Form L-5 (Page 7 of 7)

d. With respect to the audits specified in sections (a), (b) and (c) above, Contractor is solely responsible for arranging for the conduct of the audit, and for its cost. County may withhold the estimated cost of the audit or 10 percent of the contract amount, whichever is greater, or the final payment, from Contractor until County receives the audit from Contractor.

28. Authorization. Contractor, or the representative(s) signing this Contract on behalf of Contractor, represents and warrants that it has full power and authority to enter into this Contract and to perform the obligations set forth herein.

29. No Implied Waiver. The waiver by County of any breach of any term or provision of this Contract will not be deemed to be a waiver of such term or provision or of any subsequent breach of the same or any other term or provision contained herein.

Docusign Envelope ID: 37DC0BF9-C697-46EA-966B-C874753BE6FC 561
RESOLUTION NO. ________

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

AUTHORIZING THE ACCEPTANCE OF FUNDS FROM CONTRA COSTA
COUNTY HEALTH SERVICES IN SUPPORT OF THE FIRE DEPARTMENT’S PRE- HOSPITAL EMERGENCY MEDICAL SERVICES PROGRAM.

WHEREAS, Contra Costa County Health Services Emergency Medical Services Division appropriated monies through Measure H pursuant to Agreement #23-551-5 with the City of Richmond Fire Department to support first responder Emergency Medical Services (EMS) through training, certifications, and the purchase of medical equipment and supplies; and
WHEREAS, the Contra Costa County Health Services Emergency Medical Services Division will allocate funding to the City of Richmond Fire Department from July 1, 2024 through June 30, 2025, in an amount not to exceed $229,462, based on the provisions outlined in Interagency Agreement #23-551-5; and

WHEREAS, the City of Richmond Fire Department shall be awarded an amount not to exceed $229,462 for projected services and expenditures over the term of the contract, commencing July 1, 2024 and running through June 30, 2025; and

WHEREAS, the City of Richmond Fire Department, with written approvals from the EMS Agency Director and Department Fire Chief, shall allow the Contra Costa County Health Services Emergency Medical Services Division to deduct from the annual distributions any costs associated with the EMS agency acquisition or contracting for equipment, services, or technology that directly benefits the Fire Department; and

WHEREAS, the City of Richmond desires to accept both the funds allocated by the Contra Costa County Health Services Emergency Medical Services Division in the amount of $229,462 and Agreement #23-551-5 in its entirety.

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

1. The City of Richmond shall accept the allocation of $229,462 from the Contra Costa County Health Services Emergency Medical Services Division.

2. The funds which the City will receive are hereby appropriate d towards program expenditures, under Fund 1007, Org 10706022 and Object Codes to be determined.

3. The City Manager, or their designee, shall establish a Budget Supplemental Fund revenue account under Fund 1007, Org 10706022, Object 310051 for the deposit of the funds, which have been allocated to the City of Richmond.

4. The Finance Director of the City of Richmond shall submit the necessary reports and summaries which are required by State law.

562
*****************************
(This section to be completed by Clerk’s Office)

I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a _________ meeting held on _____________ by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

________________________________________
Clerk of the City of Richmond

(SEAL)

Approved:

_______________________________
Mayor

Approved as to form:

____________________________
City Attorney

563

Page 1 of 2 ends

Richmond City CouncilApril 15, 2025

Richmond City Council
April 15, 2025