Resolution Determining Necessity and Introduction of an Ordinance Ordering the Submission of a General Obligation Bond Measure for Fire Station Improvements
Official Agenda Text
ADOPT a resolution determining that the public interest and necessity demand the acquisition, construction, and improvement of certain municipal improvement projects and their financing through the issuance of general obligation bonds; and INTRODUCE an ordinance (first reading) ordering the submission of a proposition authorizing the issuance of general obligation bonds to the qualified voters of the City of Richmond at the November 3, 2026, General Municipal Election – Fire Department/Finance Department/City Manager’s Office (Chief Aaron Osorio 510-307-8021/Emily Combs 510-890-5534/Shasa Curl 510-620-6512).
Financial Impact
Adoption of the proposed Resolution Determining Necessity and introduction of the proposed ordinance do not authorize the issuance of debt or result in an immediate fiscal impact. If approved by at least two-thirds of the voters at the November 3, 2026, General Municipal Election, the City would be authorized to issue up to $120 million in general obligation bonds to finance eligible fire station capital improvements. Debt service on the bonds would be repaid from an ad valorem property tax approved by the voters and would not be paid from the City's General Fund.
Previous Council Action
May 27, 2025 January 27, 2026 April 21, 2026 June 16, 2026 June 23, 2026
Statement Of The Issue
The City Council is being asked to adopt a resolution determining that the public interest and necessity demand the acquisition, construction, and improvement of certain municipal improvement projects and to introduce an ordinance ordering the submission of a general obligation bond measure to the qualified voters of the City at the November 3, 2026, General Municipal Election.
Recommended Action
ADOPT a resolution determining that the public interest and necessity demand the acquisition, construction, and improvement of certain municipal improvement projects and their financing through the issuance of general obligation bonds; and INTRODUCE an ordinance (first reading) ordering the submission of a proposition authorizing the issuance of general obligation bonds to the qualified voters of the City of Richmond at the November 3, 2026 General Municipal Election – Fire Department/Finance Department/City Manager’s Office (Chief Aaron Osorio 510-307-8021/Emily Combs 510- 890-5534/Shasa Curl 510-620-6512).
Discussion
The City of Richmond has identified significant capital needs associated with its fire station infrastructure. Several fire stations require substantial rehabilitation, modernization, and seismic improvements to continue supporting reliable emergency response, firefighter safety, and the delivery of emergency medical services. Many of these facilities have exceeded their intended useful life and require significant investment to address deferred maintenance, replace deteriorating building systems, improve operational functionality, and enhance the City's ability to respond to emergencies.
City staff have evaluated potential funding options to address these long-term capital needs. Due to the magnitude of the anticipated improvements and the limited availability of existing funding sources, staff has determined that voter-approved general obligation bonds represent the most cost-effective financing mechanism available to fund these capital investments. General obligation bonds are commonly used by California local agencies to finance long-lived public infrastructure because they typically provide lower borrowing costs than other financing alternatives.
Under California Government Code Sections 43600 et seq. and the California Constitution, the City may issue general obligation bonds only upon approval by at least two-thirds of the voters voting on the proposition. Before a bond measure may be submitted to the voters, the City Council must first determine that the proposed improvements are required by the public interest and necessity and initiate the statutory proceedings necessary to place the measure on the ballot.
The proposed Resolution Determining Necessity makes the findings required under California law that the proposed fire station improvements are necessary to protect the public health, safety, and welfare, that existing funding sources are insufficient to finance the improvements, and that financing through the issuance of general obligation bonds is in the public interest. Adoption of the resolution initiates the statutory proceedings required to submit a general obligation bond measure to the voters.
The proposed Ordinance, introduced for first reading, orders the submission of the bond proposition to the qualified voters of the City at the November 3, 2026, General Municipal Election. The ordinance includes the full text of the proposed ballot measure, including the projects proposed to be financed, the maximum principal amount of bonds to be authorized, and other information required by California law.
Next Steps
If the City Council adopts the Resolution Determining Necessity and introduces the Ordinance, City staff will return to the City Council on July 28, 2026, for second reading and adoption of the ordinance and consideration of a resolution Calling the Election. If approved, the City will submit the required election materials to the Contra Costa County Elections Division in accordance with the statutory election calendar. If the measure is approved by at least two-thirds of the voters at the November 3, 2026, General Municipal Election, the City would be authorized to issue general obligation bonds to finance the approved fire station improvements.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution Determining Necessity Attachment 2 – Ordinance Ordering Submission of a General Obligation Bond Measure Attachment 3 – Tax Rate Statement
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RESOLUTION NO. ___ -26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA, DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY DEMAND THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN MUNICIPAL IMPROVEMENT PROJECTS, AND THEIR FINANCING THROUGH THE ISSUANCE OF GENERAL OBLIGATION BONDS
rapid response to fires, medical emergencies, and other disasters depends on a fire department infrastructure that is safe, reliable, and operational when needed, and much of the City’s fire station infrastructure has aged well beyond its intended useful life and no longer reliably meets that need; and
deferred maintenance and the physical deterioration of the City’s aging fire stations, if left unaddressed, will continue to increase over time, resulting in higher repair costs, greater risk of facility failure, and increased risk to firefighters, paramedics, and the public they serve; and
the City of Richmond, California (the “City”), like many California communities, faces heightened exposure to earthquakes, wildfires, and other natural disasters, and it is essential that public safety infrastructure be capable of remaining operational and supporting emergency response efforts during and after such events; and
modern fire protection and emergency medical services require facilities and working conditions that meet current health, safety, and operational standards, and the City has an ongoing responsibility to maintain its public safety infrastructure accordingly; and
the City is authorized to issue general obligation bonds to finance municipal improvements pursuant to certain provisions of the California Government Code, including Article 1, commencing with Section 43600, of Chapter 4 of Division 4 of Title 4 and/or Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 (collectively, the “Bond Law”); and WHEREAS, under Section 18 of Article XVI and Section 1(b) of Article XIII A of the California Constitution, the City may issue general obligation bonds under and pursuant to the Bond Law, and levy ad valorem taxes to repay them, only with the assent of two-thirds of the voters voting on the proposition; and WHEREAS, the City intends to issue the Bonds under and pursuant to the Bond Law to finance the cost of the acquisition, construction and improvement of certain property to be used for municipal purposes (the “Improvements”), consisting generally of: the repair, reconstruction, and seismic retrofit of aging and seismically unsafe fire stations; the renovation of firefighter living quarters, including abatement and removal of mold and asbestos; the repair and replacement of deteriorating electrical, roofing, and plumbing systems; and other improvements to fire stations and related facilities necessary to support rapid 911 emergency medical and fire response, all as more particularly described in the ballot measure to be submitted to the voters; and WHEREAS, existing funds and funding sources are inadequate to finance the Improvements; and WHEREAS, the issuance of general obligation bonds is the most cost-effective means available to the City to finance the Improvements, as general obligation bonds typically bear lower interest rates than other forms of financing due to the security provided by the City’s ad valorem tax pledge, thereby minimizing the overall cost to taxpayers of funding these necessary public safety improvements; and WHEREAS, it is in the best interest of the City and necessary for the preservation of the public peace, health, and safety to issue general obligation bonds to finance the acquisition, construction, and improvement of fire stations and related facilities, as more particularly described
Reso. No. _____ in the Improvements, in order to protect the public and ensure the continued delivery of essential fire and emergency medical services; and
in order to initiate proceedings under the Bond Law to provide for the issuance of general obligation bonds, the City Council of the City (the “City Council”) must make certain f
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