May 27, 2025
Finance Department
DATE: May 27, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Andrea Miller, Director of Finance
Subject:
Cooperative Cost Pool Agreement with Richmond Rent
Board
FINANCIAL IMPACT: The financial impact of the annual cost pool charges that are credited to the Rent Program totals approximately
$2,284,310.
PREVIOUS COUNCIL
ACTION:
November 8, 2016
STATEMENT OF THE
ISSUE:
Cooperative Cost Pool Agreement between the City of
Richmond Rent Board and the City of Richmond.
RECOMMENDED ACTION:
APPROVE a Cooperative Cost Pool Agreement between
the Richmond Rent Board and the City of Richmond -
City Manager’s Office (Shasa Curl 510-620-6512/Andrea
Miller 510-620-6790).
DISCUSSION:
Richmond residents passed Measure L on November 8, 2016, establishing the Richmond Fair Rent, Just Cause for Eviction and Homeowner Protection Ordinance (the “Rent Ordinance”), and creating the Rent Board to administer the Rent Ordinance.
The Richmond Rent Board and the City of Richmond entered into a Reimbursement Agreement on December 20, 2017, to reimburse the City for services provided by the AGENDA
REPORT
May 27, 2025
City and funds advanced to the Rent Board to carry out its powers, duties and functions set forth in Measure L.
The City imposes "cost pool charges" to cover overhead costs associated with infrastructure, administration, and risk support for all departments. The City aims to recover expenses related to supporting the Rent Board in the same manner as other departments.
It is the Board’s position that these charges hinder collaboration with the City, unfairly impact special revenue funds, and place an additional burden on landlords.
To address this issue, the Board’s Executive Director and City Manager held meetings to discuss solutions, including the Board administering various City ordinances in exchange for a waiver of cost pool charges. Following these discussions, an agreement was reached to resolve the dispute over Rent Board cost pool charges.
Key terms of the Agreement include:
1. The Rent Board will administer the City’s Relocation Ordinance, Tenant Buyout Ordinance, Real Estate Disclosure Ordinance, parts of the Richmond Rental Inspection Program Ordinance and, if adopted by the Council, a Rent Board specific Lien Ordinance. City staff sought to have the Rent Board administer the City’s Fair Chance Ordinance, Anti-Harassment Ordinance and Smoking Ordinance. However, the Rent Board contends that those ordinances fall outside the Rent Board’s regulatory scope and therefore did not agree to administer those ordinances.
2. The Board will provide the City an annual report on the status of rental housing that is covered by the Rent Ordinance.
3. The City will credit any prior, unpaid cost pool charges levied against the Board.
4. The City will assist the Board in preparing and placing liens on properties that are delinquent in payment of fees, with the Board receiving 90 percent of the amount collected and the City receiving 10 percent.
5. The term of the agreement will be three years, with a mutual option to extend an additional two years.
May 27, 2025
The Rent Program’s cost pool charges total $2,284,310 from FY 2016-17 through FY 2024-25. After crediting $729,117 for FY 2023-24 and FY 2024-25 ($438,726 and $290,391, respectively), a balance of $1,555,194 remains. 2017
2018 2019 2020 2021 2022 2023 2024 2025
Grand
Total
Worker Comp-Prof 6,383
35,757
83,158
72,898
89,432 56,804
87,686
124,050
81,614 637,783
COST POOL/(ISF)-
General Liability 43,631
26,138 55,701 75,144 69,513 79,937 83,934 217,744 99,980 751,722 COST
POOL/(CAP)-
Admin Charges
31,810
51,454
51,454
51,454
51,454
52,481
52,481
52,481
52,481
447,550
COST
POOL/(IND)Civic
Center Allocation
30,179
52,275
52,420
47,026
50,289
50,286
48,217
60,248
56,315
447,255
Grand Total
112,003
165,624
242,733
246,522
260,688
239,508
272,318
454,523
56,315
2,284,310
DOCUMENTS ATTACHED:
Attachment 1 – Cooperative Cost Pool Agreement
Attachment 2 – Reimbursement Agreement - December 20, 2017