05/26/20 Richmond City Council Meeting – Items of Interest

/ kent

RICHMOND CITY COUNCIL

Tuesday, May 26, 2020

Link to City Council Agendas/Packets

http://sireweb.ci.richmond.ca.us/sirepub/meet.aspx

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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

CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8):

 

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

 

 

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.

APPROVE staff recommendations on budget balancing strategies, and RECEIVE a presentation on the City’s preliminary five-year budget forecast – City Manager’s Office/Finance Department (Laura Snideman/Belinda Brown 620-6740).

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

 

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:

http://sireweb.ci.richmond.ca.us/sirepub/cache/2/unmcdv0ozxgivpb05uc4kb5q/59067305272020024319576.PDF

–Agenda Report:

http://sireweb.ci.richmond.ca.us/sirepub/cache/2/unmcdv0ozxgivpb05uc4kb5q/59067205272020024624522.PDF

I.

COUNCIL AS A WHOLE

I-1.

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). This item was continued from the May 19, 2020, meeting.

 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.

I-2.

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). This item was continued from the May 19, 2020, meeting.

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

G-8.

AUTHORIZE the city attorney to draft an amendment to Measures E and K, to be placed on the November 2020 ballot, that will cap the maximum general fund allocation for Measures E and K with an amount equal to the net increase in revenue resulting from Measure H for each fiscal year preceding the fiscal year for the budget being adopted and to provide for an emergency waiver of Section 6 of Measure E – Office of the Mayor (Mayor Tom Butt 620-6503).

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.

AUTHORIZE the city attorney to draft an ordinance to be placed on the November 2020 ballot that will repeal the Richmond Fair Rent, Just Cause for Eviction and Homeowner Protection ordinance and replace it with the Richmond Affordable Housing Ordinance – Office of the Mayor (Mayor Tom Butt 620-6503).

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.

12:45pm ADJOURN