RICHMOND CITY COUNCIL
Tuesday, May 26, 2020
Link to City Council Agendas/Packets http://sireweb.ci.richmond.ca.us/sirepub/meet.aspx Register to receive notification of new agendas, etc. |
CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6): |
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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 |
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8): |
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Property: Port of Richmond (Terminal 3) Agency negotiators: Jim Matzorkis Negotiating party: Richmond Terminal 3 Partners (Bobby Winston, Orton Development and Tom Lockard) Under negotiations: Price and terms of payment |
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Property: Port of Richmond (Terminal 4) Agency negotiators: Jim Matzorkis Negotiating party: Nematode Holdings, LLC/dba Bay Crossings (Bobby Winston-Owner) Under negotiations: Price and terms of payment |
A. Roll Call: all councilmembers present
B. Statement of Conflict of Interest: none
C. Agenda Review:
· Councilmember Martinez removed G-6 contract with Mark43/Police Department
· Individual removed G-8 amendment to Measures E and K
· Individual removed G-9 draft ordinance to repeal Richmond Fair Rent, etc.
· The items would be heard at the end of the City Council meeting
· Item I-8 POGO Park presentation and I-9Census 2020 were moved to be heard after the Consent Calendar.
D. City Attorney Report: none
E. City Manager report:
· Want to extend City’s rent moratorium to match what the County is doing, extend to July 15th
F. Open Forum: 14 speakers, most focused on rent issues
G. Consent Calendar: Johnson motion/ Willis second- Passes unanimously with G6,8, 9 to be heard at the end of this Council meeting.
H. BUDGET SESSION
H-1. |
The financial impact of implementing staff recommended budget balancing strategies is an estimated cost savings of $15 million in the General Fund. This will reduce the current deficit of $27 million to $12 million. Strategy – General Operating Items Estimated Cost Savings 1 Credit card processing fees $90,000 2 Eliminate festivals $51,000 3 Discontinue Fire consulting contract $100,000 4 Eliminate 1% across-the-board cost of living adjustments $1,300,000 5 Reduce Police vacancies $2,107,479 6 Institute hiring freeze for some positions $1,046,732 7 Reduce department operating budgets $1,427,952 8 Reduce pool cars $20,000 9 Eliminate matching funds for campaigns $100,000 10 Fund community programs with ECIA funding $325,000 11 Reduce recreation programs $991,278 12 Reduce insurance reserves to 70% confidence level $3,029,873 13 Reduce equipment/vehicle replacement $1,295,000 14 Fund information technology replacement with a capital lease $3,300,000 TOTAL ESTIMATED COST SAVINGS $15,184,314
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VOTE: Myrick motion/Johnson second: PASSES with Abstain- Willis (concern with elimination of Rent Board and felt that elimination of positions that have been kept open could have gone deeper with elimination); Abstain – Martinez (wants libraries kept open); rest Ayes.
PRESENTATION:
· Russ Branson was consultant hired by City to review tFY19-20 and FY20-21 budgets
· $29.5Million deficit.
· Revenue decreased $12.5Mil, increased costs $16.9Mil
· Key issues due to COVID sales tax down, hotel tax (TOT) down 25% compared to last year, cash reserves are down. Pressures include increased pension costs, unfunded deferred maintenance, Chevron UUT decrease, increase cost of Kids First, labor costs and other funding issues
· Reserves – available cash about $15Mil; 87% from General Fund taxes, 5% transfers in, sales tax and hotel taxes big hit of 25% loss FY20-21, potential decrease in property taxes in 2022
· Expenses- 74% cost of personnel (salaries, PERS)
· Pension PERS increased $14.2Mil/year, by FY25-26 about $54Mil – this is without hiring and without COLA
· Kids First FY21 no funding for this FY22 1% discretionary revenues to 3% inj FY24 resulting in $4.1Mil additional cost to city budget
· Refinery Taxes loss $3Mil FY21, $4M FY26, FY26 $0
· Unfunded needs – facilities $10M/yr for next 5yrs, streets $100Mil deferred maintenance, OPEB (health care liability) $150Mil unfunded, deferred maintenance needs have not been funded in recent budgets
· Successor Agency balloon payment to state $9.9Mil (previously the Redevelopment Agency)
· Labor wage increases limited to 1% COLA for RPOA, Local 188, RPMA in FY19, a second 1% slated June 20th, 2020; cost $533,000 in FY20, same in FY21
· Need to take bold action to survive next 2 years and work toward sustainable structurally balanced budget
· Belinda Brown – want to minimize staff reductions
· STAFF RECOMMENDATION: Beginning deficit of $7Mil, with staff recommendations, reduce debt to $3.1Mil, with revenues reduces debt down to $2Mil FY19-20, FY20-21 $14Mil deficit with proposals; No more rent board (may have to amend Ordinance); no matching campaign funds.
· Staff review of the expenses/revenue recommendations can be found as follows:
–Budget Balancing Strategies:
–Agenda Report:
I. |
COUNCIL AS A WHOLE |
I-1. |
VOTE: Myrick motion/ Johnson second: PASSES with Martinez voting No (don’t understand why we’re doing this), Willis voting No; rest Ayes
· Carlos Privat, City Attorney – this provides confirmation and ratification of extensions to ERN already approved in Closed Session. CEQA process is separate and ongoing.
· Gayle McLaughlin (previous councilmember, mayor and running in 2020) called in and does not want the City to move forward as there are major financial concerns, safety and health issues, wants a financial analysis to be done and full public participation.
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I-2. |
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VOTE: |
Myrick motion/ Johnson second: PASSES with Martinez abstaining, Willis voting No (concerns with environmental, safety and health), rest Ayes. · Shasa Curl – this is a project services agreement; developer will deposit $300k with the City to pay for outside contract services; doesn’t no impact the General Fund; the Community Benefits Agreement includes first source hiring, community resource stabilization agreement with applicable unions · Attorney- the list of amenities in the CBA was negotiated between Shasa and Shopoff in 2019 wherein the council approved the resolution in line with the recommendation made to DTSC regarding remediation levels · Gayle McLaughlin called in stating site is highly toxic, community wants it cleaned up, irresponsible to move forward with no in-person participation process. THE FOLLOWING WILL BE CONTINUED TO NEXT COUNCIL MEETING: CITY COUNCIL CONSENT CALENDAR |
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G-8. |
At the June 5, 2018, election, Richmond voters passed Measures E and K, known as the Richmond Kids First Initiative, on June 5, 2018. Congruently, these measures require a portion of General Fund revenue be set aside to fund youth programs and services. These measures also established the creation of the Department of Children and Youth and the development of the Richmond Fund for Children and Youth. There is no financial impact related to this item at this time other than staff time; however, if the measure passes, it could prevent $10 million in cuts to programs unrelated to the Kids First Initiative just in the next four years. |
G-9. |
With the State of California now in the rent control and just cause policy realm, Richmond having its own ordinance and regulatory apparatus is largely redundant. There is an opportunity for Richmond to transition out of the regulatory component of affordable housing policy and concentrate on actually providing more affordable housing and monetary assistance for people needing affordable housing.
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12:45pm ADJOURN