July 28, 2026
Community Development
DATE: July 28, 2026
TO: Mayor Martinez and Members of the City Council
FROM: Lina Velasco, Director of Community Development
George Kabaivanov, Building Official
Subject:
Contract with Ground Works Consulting to Analyze the
Residential Rental Inspection Program
FINANCIAL IMPACT: The proposed not-to-exceed $202,000 expenditure is included within the approved Fiscal Year 2026–2027
Community Development – Building Division budget
(Account String: 15063519-400201).
PREVIOUS COUNCIL
ACTION:
August 2, 2005
January 20, 2015
January 7, 2025
STATEMENT OF THE
ISSUE:
The City has used contractors to administer and perform inspections for the Residential Rental Inspection Program since its establishment in 2005. Following adoption of
Ordinance No. 02-25 N.S., City staff were directed to
evaluate the requirements and feasibility of bringing the program in-house. The Building Division is requesting
approval of a contract with Ground Works Consulting, in an amount not to exceed $202,000, through December
31, 2027, to complete the analysis and inform future City Council direction.
RECOMMENDED ACTION:
APPROVE a contract with Ground Works Consulting to
conduct a program analysis of the Richmond Residential
Rental Inspection Program (RRIP) and develop a
transition plan to bring the administration and inspection services in-house and evaluate feasibility, for a total contract amount of $202,000, for a term ending
December 31, 2027 - Community Development
AGENDA
REPORT
July 28, 2026
Department (Lina Velasco/George Kabaivanov 510-620-
5519)
DISCUSSION:
The Richmond Residential Rental Inspection Program (RRIP) was established in 2005 to safeguard and preserve the City’s rental housing stock by ensuring units meet minimum health, safety, and habitability standards. The program operates under the California Health and Safety Code and Chapter 6.40 of the Richmond Municipal Code and encompasses both periodic and complaint-based inspections of rental housing properties citywide.
Approximately half of the City’s 113,409 residents rent their homes compared to 34 percent in Contra Costa County. This translates to over 29,000 renter-occupied housing units, most of which were built prior to the turn of the century. As of 2025, the program requires that nearly all rental units be inspected at least once every three years.
Since its inception, the City’s RRIP has been administered by third-party contractors to perform inspections and manage all administrative functions, including registration, scheduling, recordkeeping, and billing. On January 7, 2025, the City Council adopted Ordinance No. 02-25 N.S., directing City staff to evaluate and assess the feasibility of bringing the program in-house, such that all inspections are conducted by City employees rather than third-party contractors.
Specifically, RMC Section 6.40.050(a) specifies the following:
“After the effective date of this ordinance and before a second inspection cycle has been completed, the City shall have evaluated, assessed feasibility, and determined all requirements and procedures necessary to bring this residential rental inspection program in-house such that all inspections are conducted by City employees rather than third-party contractors. At this time, the City shall use the information gathered from the evaluation period and begin implementing the residential rental inspection program in-house, which may include a phase- out period where a portion of the inspections are still conducted by third-party contractors. Once the residential rental inspection program is conducted exclusively by City employees, this ordinance shall be amended accordingly.” Following a competitive bidding process, the Building Division is recommending Ground Works Consulting to assist the staff in preparing these required analyses.
Consultant Selection Process
On March 20, 2026, the Building Division issued a request for Proposals (RFP) soliciting Consultant Services to assist with Transition Planning for the City’s Residential Rental
July 28, 2026
Inspection Program. The RFP was posted through the City’s BidsOnline System and 1,007 firms were notified. Of those firms notified, 29 downloaded the RFP, and five (5) firms submitted proposals (Attachment 1).
Each proposal was evaluated by a panel comprising representatives from the Building Division, Housing Division, Rent Program, Human Resources, and Movement Legal.
Proposals were scored on relevant experience and qualifications, methodology and approach, cost effectiveness, references and past performance, and overall completeness. The three highest-ranked firms advanced to an interview round, after which the panel recommended Ground Works Consulting (Attachment 2).
Proposed Scope of Services
The project schedule, as proposed by Ground Works Consulting, consists of four phases over a 12-month timeframe:
Phase 1: Evaluate the existing RRIP structure, workload, and performance of contracted services; identify compliance gaps; and assess how the program intersects with the City's Building and Code Enforcement Division activities.
Phase 2: Determine staffing levels required to administer the program in-house, including a Classification and Compensation study (to be performed by the City’s Human Resources Department using on-call consultants) to develop updated job descriptions and salary ranges; analyze technology, equipment, and administrative system needs; and develop multiple fee structure options to achieve full cost recovery.
Phase 3: Draft a phased transition plan, potential schedule, develop standard operating procedures for program functions, and design a customer service workflow with emphasis on accessibility and multilingual services.
Phase 4: Develop a program budget covering transition and ongoing operational costs, and present findings and recommendations to City staff, City Management, and City Council for direction.
The report to be prepared by the consultant will be presented to the City Council for further direction.
CONCLUSION:
City staff recommend that the City Council approve a contract with Ground Works Consulting, in an amount not to exceed $202,000 through December 31, 2027, to analyze the Richmond Residential Rental Inspection Program and develop a transition plan for bringing program administration and inspection services in-house (Attachment 3). Approval of the contract will allow the City to satisfy the evaluation and feasibility requirements of Richmond Municipal Code Section 6.40.050(a) and provide the City
July 28, 2026
Council with the information needed to determine whether and how to transition the program from a contractor-administered model to one operated by City staff.
SYNERGISTIC POLICIES:
The proposed contract supports the implementation of City Council Strategic Goal 1.3.b, which was to adopt the amendments to Richmond Municipal Code Chapter 6.40 to expand the number of units inspected and create opportunities for decarbonization of rental units.
DOCUMENTS ATTACHED:
Attachment 1 – BidsOnline Report
Attachment 2 – Rating Matrix
Attachment 3 – Contract