January 20, 2026
City Council
DATE: January 20, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Councilmember Claudia Jimenez (Sponsor)
Mayor Eduardo Martinez (Co-sponsor)
Councilmember Doria Robinson (Co-sponsor)
Subject:
Consultant Engagement for Community Input on
Polluters Pay Settlement Funds
FINANCIAL IMPACT: Cost of the consultant is estimated to be $150,000 and may not exceed $300,000.The City Council adopted
Resolution No. 105-24 on September 24, 2024, that
expressed City Council’s intention moving forward to
spend the funds received from Chevron in a manner that
does not increase the City’s dependence upon Chevron
tax revenues, but instead facilitates development of a
resilient and just local economy that is independent of the fossil fuel industry.
PREVIOUS COUNCIL
ACTION:
The City Council adopted Resolution No. 105-24 on
September 24, 2024, that expressed City Council’s
intention moving forward to spend the funds received
from Chevron in a manner that does not increase the
City’s dependence upon Chevron tax revenues, but
instead facilitates development of a resilient and just local economy that is independent of the fossil fuel industry.
STATEMENT OF THE
ISSUE:
The City of Richmond will receive approximately $550
million over the next ten years from the Polluters Pay
Settlement, presenting a significant opportunity to
address historic harms and invest in the City’s long-term economic, environmental, and community well-being.
Given the scale and impact of these funds, it is critical to engage the community in shaping how this revenue is
invested.
AGENDA
REPORT
January 20, 2026
In alignment with Resolution No. 105-24, the framework
recommended here includes preliminary investment
categories for Large-Scale Economic Development,
Inclusive Economic Development, Community-Visioned
Projects, Investments in Essential Services and Public
Works, and City Staffing and Consultants, along with a
process for ongoing community governance and
accountability. These categories are intended as a
starting framework to guide community discussion. The
community engagement process would provide input to
the expenditure framework to ensure it reflects the needs and priorities of the residents.
RECOMMENDED ACTION:
DIRECT the city manager to engage a consultant to
collaborate with City staff, City Council, and community stakeholders to conduct community engagement and
gather input on a framework for the expenditure of new
General Fund revenues generated by the Polluters Pay
Settlement, with the consultant reporting back to the City Council by May 26, 2026 - Councilmember Claudia
Jimenez (510-620-6565)/Mayor Eduardo Martinez (510-
620-6503) Councilmember Doria Robinson (510-620-
6568).
DISCUSSION:
In 2024, the City of Richmond successfully concluded negotiations with Chevron resulting in a landmark Polluters Pay Settlement that will provide $550 million in new General Fund revenue to the city over a ten-year period. This settlement represents a once in a generation opportunity to address longstanding community needs, invest in Richmond’s future, and advance environmental, economic, and social equity.
Recognizing the significance of this revenue, on September 24, 2024, the City Council adopted Resolution No. 105-24 (Attachment 2), establishing guiding principles for the stewardship of the Polluters Pay Settlement funds. Central to this intent is advancing a Just Transition away from a fossil fuel–dependent economy toward a healthy, inclusive, and thriving economy for Richmond. The objectives include reducing the City’s dependence on Chevron by generating new tax revenue streams and supporting high- quality union jobs for Richmond residents; repairing harms to residents’ health and neighborhoods caused by Chevron’s operations, particularly in communities historically most impacted; protecting workers—especially those in affected industries and City employees—during an accelerating economic transition; and ensuring transparency and public accountability in how settlement funds are allocated and invested.
In alignment with these goals, City Council members are recommending the development of a preliminary expenditure framework organized around the following investment categories:
January 20, 2026
1.Large-Scale Economic Development: Investment in large-scale projects that would generate tax revenue and have the potential to create high quality union jobs with good benefits while strengthening and diversifying Richmond’s economy.
2. Inclusive Economic Development: Projects that support small to mid-sized businesses and build the skills of Richmond’s local workforce. This includes but is not limited to small business grants and job training.
3.Community Visioned Projects: Projects and programs directly proposed and developed by Richmond residents that provide direct benefits to Richmond residents and support a Just Transition. A community board would be established to develop criteria, solicit and prioritize projects, and ensure accountability and transparency in the execution of projects.
4. Investments in Essential Services & Public Works: Critical Infrastructure projects that demonstrably improve the health and quality of life of Richmond residents, along with emergency and climate resilience. This includes but is not limited to, a ‘Complete Streets' approach to pedestrian safety, bike lanes, and public transportation infrastructure, emergency fire, EMS and disaster response, flood mitigation, improvements to public parks, and make available renewable energy and efficiency upgrades.
5. City Staffing & Consultants: Increase staffing in necessary departments to execute the goals of the fund in order to strengthen, diversify and transition the City economy from fossil fuels and deliver high impact projects that improve residents' lives. As needed, seek the expertise of consultants to offer temporary and specific expertise on economic diversification, workforce development, and climate resilience.
In addition to these investment categories, City Council members emphasize that transparency, public accountability, and community governance are essential elements that must guide the use of Polluters Pay Settlement funds across all categories. This includes public involvement in shaping priorities, allocating funds particularly for community visioned projects and monitoring outcomes to ensure funds are used in alignment with Council intent and community expectations.
While these categories reflect City Council’s initial priorities, the proponents of this item recognize that meaningful community input is essential before adopting a final expenditure framework. Given the scale, duration, and transformative potential of the Polluters Pay Settlement, City Councilmembers propose directing the City Manager to follow the City’s procurement procedures to retain an experienced consultant to work closely with staff, City Council, and community-based organizations, particularly those part of the Make Polluters Pay Campaign to design and implement a robust, inclusive, and culturally competent community engagement process.
The feedback gathered through this process would inform refinement of the expenditure framework, identify specific project ideas within each category if it is possible, and establish ongoing accountability mechanisms prior to Council consideration and adoption. Initiating this process will help build public trust and ensure the Polluters Pay Settlement funds are stewarded in a manner that advances a just, resilient, and inclusive future for the City of Richmond.
January 20, 2026
DOCUMENTS ATTACHED:
Attachment 1 - Request For Proposal (Draft)
Attachment 2 - Resolution No. 105-24