Richmond City Council – Items of Interest

NOTE:  At the May 12th special meeting of the Council, they reviewed options to reduce expenditures.  No decisions were made. 

MAY 19, 2020 – RICHMOND CITY COUNCIL

CLOSED SESSION:

CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6):

Agency Representatives: Jack Hughes

Employee organizations:

1.     SEIU Local 1021 Full Time Unit

2.     SEIU Local 1021 Part Time Unit

3.     IFPTE Local 21 Mid-Level Management Unit

4.     IFPTE Local 21 Executive Management Unit

5.     Richmond Police Officers Association RPOA

6.     Richmond Police Management Association RPMA

7.     IAFF Local 188

8.     Richmond Fire Management Association RFMA

 

B.  ROLL CALL: Councilmember Willis attended 15 mins after Council started; all present

C. STATEMENT OF CONFLICT OF INTEREST: None

D. AGENDA REVIEW: Items removed for discussion at end of agenda:

By Public:

·         H-3 Street Sweeping

·         H-8 Extending ERN on Winehaven Legacy LLC to May 31, 2020

·         H15 Amending position of Police Records and Property Manager

·         H-16 Police Records and Property Manager wages, etc

By Councilmember Martinez:

·         H-7 HRP Campus Bay / Zeneca project community agreement

·         H-14 New staff position Deputy Building Official wages, salaries, compensation

·         H-17 New position Industrial Building Inspector, wages, etc.

E. REPORT FROM CITY MANAGER – Report from Supervisor Gioia

·         Reopen County in “safe way”

·         Retail open curbside

·         Hilltop Marriott and SureStay housing homeless

·         County contemplating purchase of hotel to house homeless in future

·         Wear masks when out and in stores

·         Advocating for more federal funding

·         COVID19 Testing available, don’t need to have symptoms, call for an appointment: 1-844-421-0804

H.  CITY COUNCIL CONSENT CALENDAR

H-2.     ADOPT a resolution approving a contract for Veolia Water to manage (on behalf of the City) a subcontract with WR Forde and Associates in an amount not to exceed $294,026 [Project cost of $232,790, plus 10.0% mark-up of $23,279, plus 15% contingency of $34,919, plus $3,142 for 9% mark-up on change orders)]; and APPROPRIATE the budget in the amount of $294,130 – Public Works Department (Yader Bermudez 774-6300).

H-9. APPROVE an agreement with WR Forde Associates to repair water pipeline leaks at the Point Potrero Marine Terminal for a total value of $155,000 – Port Department (Jim Matzorkis 215-4600).

APPROVED.  Vote: Myrick motion/Martinez second – unanimously approved.

The following items were removed from Consent Calendar to be heard at the end of the meeting.  The meeting was adjourned prior to getting to these items.  These as well as H-3, 14, 15, 16, 17 will be deferred to the next City Council Meeting.

H-7  APPROVE: (1) the Project Services Fund Agreement with HRP Campus Bay Property, LLC (“HRP”) to provide a mechanism for HRP to provide the funding necessary for the City to negotiate a community benefits agreement, development agreement and any other documents and agreements (the “Definitive Agreements”) related to the development and entitlement of a mixed-use development on approximately 65 acres of the Richmond Bay Zeneca/former Stauffer Chemical site (the “Mixed-Use Development”); and (2) AUTHORIZE the city manager and city attorney, as the case may be, to enter into contracts and legal services agreements for the negotiation and development of the Definitive Agreements and for all necessary discretionary land use approvals and entitlements and related environmental review for the Mixed-Use Development – City Manager’s Office/Community Development Department (Shasa Curl/Lina Velasco 620-6512).

H-8  CONFIRM and RATIFY the City Council’s prior extensions of the City’s Exclusive Right to Negotiate Agreement (ERN) with Winehaven Legacy, LLC on February 4, 2020 extending the ERN to May 31, 2020 and on April 21, 2020 extending ERN to September 30, 2020 – City Manager’s Office/City Attorney’s Office (Laura Snideman 620-6512/Rachel Sommovilla/Carlos Privat 620-6509).

I.  BUDGET SESSION

I.1 REVIEW, COMMENT and PROVIDE DIRECTION to staff regarding the status report of the Fiscal Year 2020-21 Annual Operating Budget, and on the progress to date and proposed next steps for revenue enhancement and cost-recovery measures – City Manager’s Office (Shasa Curl/LaShonda White 620-6512).

Following review and discussion, staff to present update at 05/26 Special Meeting to include 5 year budget forecast..

Presentation:

·         Revenue- 80% from tax revenue, 20% from fees, fines $166Mil

·         Expenses- 73% salaries, benefits, 18% nondiscretionary, 9% other (support programs) $193M

·         $27Mil Deficit

·         Staff presented matrix of expense reductions and revenue increases.  Not all would result in impacting the FY20-21

·         Given “balancing strategies” the minimum amount that could be saved would be $23.3Mil which will not meet deficit

·         Mayor Butt and Vice Mayor Bates expressed frustration that Staff was given direction in December to address the deficit and the matrix presented was to get further direction from Council.

·         To increase revenues, three ballot measures were proposed.

·         The business license tax recommendation was to change from # employees t gross receipts and they would need to poll Richmond voters.

·         One item was a proposal from Lift Up Richmond to charge a temporary vacancy fee, hiring freeze, insurance reserve review, look at COLA, don’t replace vehicles. The Mayor asked for information on this organization, evidently hired as consultant by City.

·         Vice Mayor Bates recommended to look at decreased workhours, cutback in recreation/pool hours/days.

Revenue matrix attached to email.

J.  PUBLIC HEARINGS

J-2  HOLD the public hearing continued from April 21, 2020 and hear comments regarding the proposed wastewater rate increase; and INTRODUCE an ordinance (first reading) setting wastewater user rates for fiscal years 2020-21 through 2024-25. There are two options to be considered: Option A with recommended annual rate increases 7.0% for each of these five fiscal years, or option B with annual rate increases of 5%, 6%, 7%, 7% and 7% for fiscal years 2020-21 through 2024-25 respectively – Public Works Department (Yader Bermudez 774-6300/Mary Phelps 621-1269).

Presentation:

·         Cannot fund through the general fund based on enterprise fund constitution. 

·         93% revenue comes from business and residents.

·         Future projects to cost $50+M.  

·         If don’t pass rate increase, will have a deficit in 2023. If take no action, increase will be forced on city as well as attorney fees.

·         In final stages of security $50Mil low interest loan from state to rehab treatment plant

Vice Mayor Bates made a motion to accept Option A but there were no seconds.

VOTE: Option B – Myick motion/ Choi second – Passes unanimously 

K.  RESOLUTIONS

K-1 ADOPT a resolution amending Resolution 41-20 (ratifying the Director of Emergency Services’ Second Supplemental Order) by amending that Order to extend the grace period to pay back rent for residential and commercial tenants financially impacted by COVID-19 – City Council Office (Councilmembers Jael Myrick 620-6636 and Melvin Willis 412-2050).

Presentation: would allow 1 year to pay back rent

Discussion:

·         Vice Mayor Bates and Councilmember Johnson expressed concerns about property owner’s responsibility to pay their mortgages if not receiving rent

·         Councilmember Willis – urgency from public and other cities adopted similar ordinances

·         Councilmember Johnson – stated he was a renter but had problem with putting liability on one side

Vote:  Myrick motion / Willis second with friendly amendment from Willis to have staff research Fannie May and Freddie Mac procedures on forgiveness and grace period and to publish this for public information.  PASSES with Bate and Butt voting no, Johnson abstaining

/Adjourn 12:00am

FYI – if you would like to make a copy of the revenue and expense strategies on the city website go to:

For Revenue Enhancement and Cost Recovery Measures:
For  Potential Budget Balancing Strategies: