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CAPITAL IMPROVEMENT PROGRAM
WHAT IS A CAPITAL PROJECT?
A capital project is a project that helps maintain, improve, or adds to the City’s infrastructure. Typically, a project is considered a capital project if it results in an acquisition of a new asset or new construction, improvements, expansion, renovation, rehabilitation, repairs, or replacement of an existing City facility and other infrastructure assets. It usually requires a large investment of City funds and staff resources from project conception to project closeout. A capital project is expected to result in a long- term useful life and long-term benefit to the City and its residents. A completion of a capital project usually impacts the operating budget by either increasing or decreasing it depending on the type of project.
WHAT IS A CAPITAL IMPROVEMENT PROGRAM AND CAPITAL BUDGET? In conjunction with the biennial budget process, the City of Berkeley prepares a CIP that identifies anticipated project expenditures over a five-year timeframe. The Capital Improvement Program represents the spending plan for infrastructure improvements and other specific large-scale recurring purchases. The goal of the CIP is to create a roadmap of the projected infrastructure improvement needs of the City of Berkeley to assist in the planning and budgeting process.
The first year of the CIP is known as the Capital Budget. It is intended to closely reflect that year’s projected appropriation for capital projects and is usually adopted in conjunction with the City’s annual operating budget. It is important to point out that the FY 23 Capital Budget does not include capital project budget which has previously been encumbered and unspent from the previous fiscal year.
Projects and funding sources identified in subsequent years are not formally approved until the budget for those years is legally adopted. Beyond the first year, the CIP serves as a planning and budgetary management tool and are subject to annual re-evaluation to reflect community needs and Council priorities, as well as funding opportunities and challenges.
A CIP is necessary as the City has an extensive portfolio of capital assets and infrastructure. Below is a partial list of the City’s capital inventory:
• 95 public buildings of various ages,
• Approximately 215 centerline miles of improved streets, • Over 300 miles of concrete sidewalk,
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TOTAL # of Five-Year Proposed Projects = 115
FY 2023 = $103,623,521
FY 2024 = $81,686,024
FY 2025 = $66,625,396
FY 2026 = $55,335,413
FY 2027 = $52,188,288
Proposed Five-Year CIP Total = $359,458,643
• A storm drain system that consists of approximately 78 miles of underground pipes, maintenance holes, catch basins, and cross-drains (corner inlets and outlets),
• A sewer system consisting of 255 miles of public sanitary sewer mains and 130 miles of public sewer laterals,
• 52.5 miles of bicycle infrastructure
• 250 park acres,
• 11.5 miles of medians,
• 175 acres of land in the Waterfront,
• Three resident camps outside of the City,
• A fleet of 730 vehicles and pieces of large equipment, and • 42 different facilities served by the City’s information technology systems.
Maintaining these assets is a costly and time-consuming enterprise that requires significant resources and constant attention. Additionally, Berkeley is an aging city and thus, its infrastructure faces challenges that other younger cities do not.
FUNDING SOURCES
The City's ability to fund its CIP is limited by the total available resources that are competing with other community priorities. However, years of limited funding and deferred maintenance have resulted in aging City infrastructure that desperately needs repair and improvement.
CIP funding resources include the General Fund (this includes the CIP Fund), a number of special revenue funds and enterprise funds, as well as grants and loans. The City uses outside funding sources to the greatest extent possible. This CIP section of the budget book endeavors to identify all known CIP projects, categorizing these projects as
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Baseline (annual, recurring program), One-time (special allocations, grants, loans), and Unfunded or Requesting Funding (funding source has yet to be identified).
Funding sources include:
• General Fund, CIP Fund;
• Special Revenue Funds such as Measure B and Measure BB Sales Tax, Vehicle Registration Fee, State Transportation Tax Fund (Gas Tax), Measure F, Parks Tax, Playground Camp, Streetlight Assessment, UC Settlement; • Measure T1 Infrastructure GO Bond;
• Enterprise Funds such as Zero Waste, Marina, Sanitary Sewer, Clean Storm Water;
• Internal Service Funds such as Equipment Replacement Fund; and • Federal, State, and Local funds and grants.
The following provides a brief description of some of the above-named funds:
• General Fund: In FY 23, a baseline transfer in the amount of $4,950,905 from the General Fund to the Capital Improvement Fund is proposed. The total General Fund resources (this includes the CIP Fund) proposed for FY 23 is $26,470,623 and includes the annual baseline allocations plus one-time funding requests that do not have other funding sources.
• Measure T1: Measure T1
28 was approved by Berkeley voters in November 2016.
It consists of General Obligation Bonds not -to-exceed $100 million, for use to repair, renovate, replace, or reconstruct the City’s aging infrastructure and facilities, including sidewalks, storm drains, parks, streets senior and recreation centers and other important City facilities and buildings. Council approved 45 projects to be completed in Phase 1. The majority of these projects are now complete. On December 15, 2020, Council approved more than 30 additional projects to be completed in Phase 2, between 2021 and 2026. It is anticipated that the full $100 million of Measure T1 funds will be expended by 2026.
• Measure F: Measure F was approved by Berkeley voters in November 2014. It benefits
the Parks, Recreation & Waterfront Department in terms of additional annual funding for major maintenance and capital expenses for parks facilities.
Measure F funds will provide the majority of funding for major renovations and upgrades to the Rose Garden Trellis.
• Measure BB: Measure BB was approved by Alameda County voters in November 2014. It implements a 30-year Transportation Expenditure Plan by renewing the 0.5 percent transportation sales tax approved in 2000 and increasing the tax by 0.5 percent. Measure BB benefits the City’s streets and roads, as well as pedestrian and bicycle infrastructure. This one percent sales
28 https://berkeleyca.gov/your-government/our-work/ballot-measures/measure-t1 .
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tax is managed by the Alameda County Transportation Commission and Berkeley will receive over $3 million a year in additional funding, as well as capital funding for the Gilman interchange project.
The Capital Improvement Fund is a funding source created to pay for some of the City’s capital projects.
Fiscal Policy Pertaining to the CIP Fund
In FY 2013, during budget development discussions of the challenges ahead in FY 2014 and FY 2015 and beyond,
several fiscal policies were identified to work towards resolving some of the City’s long-term problems. The following policy is targeted to help fund the City’s capital improvement needs:
Transfer Tax in excess of $10.5 million dollars will be treated as one-time revenue, available for one-time expenditures. We will first consider use of these funds for the City’s capital improvement needs (fund 610).
In the FY 18 and FY 19 Biennial Budget, the threshold amount was increased and is still the current amount today.
On May 27, 201729, Council adopted the proposed reset of the Property Transfer Tax baseline from 10.5 million to $12.5 million beginning FY2018. While this will reduce the amount available for new infrastructure needs, the additional $2.0 million contribution to the City’s General Fund operating base line is need to balance the $5 million shortfall in FY2018 and $5.3 million shortfall in FY2019.
Funding Sources for the CIP Fund
The primary source of funding is an annual transfer from the General Fund to the CIP Fund. For the last 10 years or so, the annual allocation has hovered between $5.4M to $4.9M (with the exception in FY 21) without any increases to account for CPI increases and other inflationary factors. The secondary source of funding is the excess property transfer tax over $12.5M; however, currently, this is not a guaranteed source of funding.
Other miscellaneous sources of funding are from interest income, mitigation fees, and other department specific revenue.
Annual CIP Fund Baseline Allocation to CIP programs
Facilities $900,000
Parks $400,000
29 FY 18 & FY 19 Biennial Budget Adoption:
https://www.cityofberkeley.info/Clerk/City_Council/2017/06_June/City_Council__06-27-2017_- _Regular_Meeting_Agenda.aspx (Item 47)
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Sidewalk $635,000
Streets $1,925,000
Transportation $170,000
*The annual allocations have not kept up with increases in cost. They have not effectively changed for at least 10 years.
Personnel Funding
The CIP fund is charged some personnel cost. HHCS, Planning, and Public Works have FTEs budgeted in the CIP fund baseline. Public Works offsets most of this cost by charging to specific projects during the fiscal year and the CIP fund realizes some salary savings.
Another Factor to consider in relation to funding capital projects, include:
• General Obligation Bond Capacity: Based on the existing bond authorizations, outstanding balances and projected tax revenues, the City is likely to have the ability to generate new bond proceeds in excess of the outstanding $200 million over the next 30 years. Finance is developing scenarios for bond debt programs that would keep the taxes paid by property owner’s level over a course of time.
This could mean that as old debt is retired, new debt could be issued for new projects. Staff will develop and complete a timeline for the debt issuance for the two outstanding measures.
UNFUNDED CITYWIDE CAPITAL INFRASTRUCTURE NEEDS
The City has a number of major infrastructure project needs that are not addressed in the capital plan. Included in the Projections of Future Liabilities report 30 that went to
Council on March 16, 2021, is a summary of the City’s capital assets and infrastructure needs including an overview of the City’s long-term expenditure obligations.
The City’s
infrastructure requires investments of capital in order to maintain them in a good working condition and replace or rehabilitate assets at the end of their useful lives.
Without sufficient and timely capital investments, the assets will deteriorate, costing the City of Berkeley substantially more in maintenance costs, and infrastructure will ultimately fail. The unfortunate outcome of this is a requirement of a much larger capital investment. Adequate amount of funding is needed to provide proper annual maintenance as this keeps assets in good working condition and typically prolongs their useful lives. Adequate funding is also necessary for when assets reach the end of their useful lives to pay for total repair or replacement in a timely manner. Due to limited
30 Projections of Future Liabilities:
https://www.cityofberkeley.info/Clerk/City_Council/2021/03_Mar/Documents/2021-03- 16_WS_Item_02a_Unfunded_Liability_Obligations_pdf.aspx
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available funding and competing priorities, the City has had to defer several capital improvement projects. For each year that a capital project is deferred, the project cost increases due to inflation (compounded each year the project is delayed), construction demands and construction bid results, the cost increases year over year due to scope changes as the longer the project is delayed, the more issues arise, unpredictable trends in the industry, and other unknown factors (economic, public health, and others).
Despite support from a variety of City funds, City facilities and infrastructure needs continue to exceed available funds. The City’s unfunded capital needs have increased over the years and is anticipated to reach a five-year total of around $1.65 billion from FY 23 to FY 2027.
PROJECT CATEGORIES
The proposed CIP plan presents the City’s blueprint for funding critical capital projects based on resource availability and Council’s capital investment priorities. Elements of CIP project costs are grouped into broad program categories:
• City Facilities,
• Equipment & Fleet,
• Information Technology,
• Parks, Marina & Waterfront,
• Sanitary Sewers,
• Storm Drains,
• Sidewalks,
• Streets,
• Transportation, and
• Other Infrastructure.
The resources that the City will commit to its priority capital projects are identified within these program categories. While the budget adopts appropriated funds for capital projects in FY 23, there are still some unknowns (i.e. status of the economy and pending State and Federal funding for approved projects) that exist. Furthermore, funding for the remaining years of the five-year plan are subject to the availability of resources.
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APPENDIX 1 – PERFORMANCE MEASURES DETAIL
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PERFORMANCE MEASURES
This section provides detailed data and contextual information on many of the City’s performance measures. Over time, staff continue to review and improve not only performance, but how it’s measured. Staff may come to better understand the data or find more efficient ways to analyze or collect data. When staff discover an error due to outlying data, it brings the remaining data into better clarity, which in turn exposes new outliers. Sometimes outliers are just that, anomalous data points, but other times they expose errors in the way the data is calculated or filtered.
In some cases, staff may identify different things to track that better answer “how well are we doing?” and “is anyone better off?”
The data is organized by Strategic Plan Goal, as shown in the table below. Please note, abbreviations are used for each Strategic Plan Goal. Additionally, throughout this section, Calendar Year (CY) denotes January through December and Fiscal Year (FY) denotes July through June. In sections where the impact of COVID-19 is discussed, this is denoted by
STRATEGIC PLAN
GOAL
ABBREVIATION PERFORMANCE MEASURES
Create affordable
housing and
housing support
services for our
most vulnerable
community
members
AFFORDABLE
HOUSING
• Percentage of STAIR0F
1 clients exiting
to permanent housing
• Shelter uptake rate1F
2 Be a global leader
in addressing
climate change,
advancing
environmental
justice, and
protecting the
environment
ENVIRONMENT • Climate Action Plan
progress/decreasing community
greenhouse gas (GHG) emissions
• Average days to abate illegal
dumping on private property
• Percent of commute trips by solo
occupant vehicle
1 STAIR (stability, navigation, and respite) is Berkeley’s Housing Navigation center. 2 For contextual reasons, this measure is shown in the following pages under the goal “Resilient” alongside the other measures relating to the work of the Homeless Response Team (HRT).
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STRATEGIC PLAN
GOAL
ABBREVIATION PERFORMANCE MEASURES
• Percentage of waste diverted from
landfill
Champion and
demonstrate social
and racial equity
EQUITY • Number of meals provided (Aging
Services)
• Access to technology (Library)
• Number of registered users as
percentage of Berkeley residents
(Library)
• Average days to close a complaint;
number of complaints (Equal
Employment Opportunity [EEO])
• Citywide workforce demographics
compared to community
• Police Department demographics
compared to community
• Use of (police) force in comparison
to calls for service and to arrests
• Complaints (relating to police) in
comparison to call for service
Provide an efficient
and financially-
healthy City
government
FISCAL HEALTH • Achieving a balanced budget
• Number of budget adjustments made
• Number of contracts reviewed for
budget
• Receiving a Government Finance
Officers’ Association (GFOA) award
• Reporting on unfunded liabilities
• Meeting target contributions for
General Fund reserves and Section
115 trust
• Number and dollar amount of
purchase orders; percent returned as
noncompliant; percent requiring
review
• Dollar amount of cash and
investments; rate of return; meeting
safety, liquidity, and reasonable
return requirements
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STRATEGIC PLAN
GOAL
ABBREVIATION PERFORMANCE MEASURES
• Meeting statutory publication date for
Annual Financial Report; receiving
no audit findings
Provide state-of-the-
art, well-maintained
infrastructure,
amenities, and
facilities
INFRASTRUCTURE • Pavement condition index (i.e.,
roads/streets)
Foster a dynamic,
sustainable, and
locally-based
economy
LOCAL ECONOMY • Number and dollar amount of
payments processed; percent
noncompliant or requiring additional
review
• Number of arts and culture grant
applications received; count of arts
and culture grants awarded; total
dollar amount distributed
• Number of active Revolving Loan
Fund (RLF) loans; number of private
sector jobs saved with RLF loans;
number of jobs created
• Amount of American Rescue Plan
Act (ARPA) funds disbursed to arts
and culture organizations, visitor and
tourism sector, and small business
support
Create a resilient,
safe, connected,
and prepared City
RESILIENT • Count of volunteers; volunteer hours
(Animal Services)
• Foster rate (Animal Services)
• Number of spays/neuters performed;
number of vaccinations administered
(Animal Services)
• Average tonnage/pounds of debris
removed (Homeless Response
Team [HRT])
• Average number of storage notices
and violation notices provided/month
(HRT)
• Average number of encampment
closures performed/month (HRT)
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STRATEGIC PLAN
GOAL
ABBREVIATION PERFORMANCE MEASURES
• Average and median call response
time (Fire and Emergency Services)
• Percentage of scheduled fire
prevention inspections completed
• Fire fuel debris removed (Parks,
Recreation and Waterfront)
• Three-year average of
fatalities/severe injuries on City
streets
• Deaths and accidents relating to
vehicles or bicycles
Be a customer-
focused
organization that
provides excellent,
timely, easily-
accessible service
and information to
the community
SERVICE • Number of records indexed online;
number of City Council and Policy
Committee meetings administered;
number of legislative items collated
and tracked; number of disclosures
processed
• Average days per animal shelter
stay; percentage of animals adopted;
percentage of animals going to
nonprofit rescues; percentage of
animals returned to owners (Animal
Services)
• Low euthanasia rate (Animal
Services)
• Non-sterilization surgeries provided
(Animal Services)
• Number of community contacts; time
spent during community meetings
(Parks, Recreation and Waterfront)
• Average days to resolve a case;
case completion rate; total cases;
completed cases (Neighborhood
Services – Code Enforcement Unit)
• Number of information and
assistance sessions provided (Aging
Services)
• Percent reduction days spent in
psychiatric hospital among clients in
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STRATEGIC PLAN
GOAL
ABBREVIATION PERFORMANCE MEASURES
Full Service Partnership program
(Mental Health Division)
• Number of vector service requests
and complaints received
• Percent of COVID-19 cases and
contacts with outreach initiated (e.g.,
for case investigation and contact
tracing)
• Number of items circulated; amount
of information services provided,
number provided and amount of
participation in cultural and
educational programs (Library)
• Customer satisfaction (Permit
Service Center)
• Time from land use permit
application completion to staff
approval
• Average building permit plan check
review time
• Number of (police) commendations,
annually; commonly occurring
words/themes in commendations
• First call resolution and
abandonment rate (311, IT Help
Desk)
Attract and retain a
talented and diverse
City government
workforce
WORKFORCE • Time to hire (from requisition
approval to hired status)
• Employee training attendance;
number of trainings available;
number of requests for tuition
reimbursement
• Number of appointments; number of
grievances (Labor Relations
Coordinating Committee [LRCC])
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3 STAIR (stability, navigation, and respite) is Berkeley’s Housing Navigation center.
Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
Percent of
STAIR2F
3 clients that
exit to
permanent
housing
It was challenging to support clients to obtain and
maintain benefits during the pandemic, as services
for benefits claims, applications, and appeals were
delayed. Most benefit offices became operational
via phone, requiring clients to verify their identity
via mail before receiving services i.e. (adjustment
in payment, request and appeal for supplemental
security income [SSi] and health insurance, proof
of identification needed to reinstate payment or
coverage). Benefits services have since
increased, but had a direct impact on housing
placements. The pandemic decreased landlord
participation and inhibited Bay Area Community
Services (BACS) from expanding its landlord
pool. Due to safety precautions, there was a
significant decrease in affordable “shared” housing
options being offered by landlords. The program
saw an increase in self-exits attributed to shelter in
place, site quarantines, and newly implemented
safety policy and procedure regulations.
BACS has grown its Housing
Coordination and Employment
Services Team that provides
greater resources to identify
affordable housing for all
resident income levels and IPS
services including a wide range
of bridge support including
career and job placement,
connections to legal advocacy
for benefits, fix income work
programs, school/work
programs and more. In order to
house the growing number of
residents who have fixed
income, BACS continues to
extend its landlord platform to
offer a variety shared housing
options at affordable price point
to its participants.
Factors Restricting Performance Improvement
AFFORDABLE HOUSING
0%
20%
40%
60%
80%
100%
FY2019 FY2020 FY2021
Percentage of STAIR Clients
that Exit to Permanent Housing
• Program is unique because it combines
outreach component and rapid rehousing to
help people that are living on the streets
and in encampments get housed quickly.
• Richer constellation of services are
available than typically found in other
shelters.
• Housing placements are limited by the supply of affordable housing and income of participants served.
Factors Contributing to Current Performance
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ENVIRONMENT
Climate Action Plan
Total community greenhouse gas (GHG) emissions in 2019 decreased 26% from the 2000 baseline and decreased 4% from 2018.
Learn about Berkeley’s progress toward achieving its Climate Action Plan (https://berkeleyca.gov/your-government/our-work/adopted-plans/berkeley-climate-action-plan) goals. View the latest Berkeley Climate Action Plan 2022 Update presentation (https://berkeleyca.gov/sites/default/files/2022-
05/February%208%202022%20CAP%20Workshop_Slides_final_0.pdf) and accompanying staff report (https://berkeleyca.gov/sites/default/files/2022-04/2022-02- 08%20Item%2017%20Greenhouse%20Gas%20Emissions%20Inventory.pdf)
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ENVIRONMENT
Factors Contributing to Current Performance
• The Public Works Clean City program staff work seven days a week to keep Berkeley clean.
They are very responsive and often resolve most illegal dumping issues the same day reported.
Factors Restricting Performance Improvement
0 1
2 3
4 5
CY 2017 CY 2020 CY 2021
Average Days to Abate
Illegal Dumping on Public Property
Days Average
2482
3138
3706
0 1000
2000
3000
4000
CY 2017 CY 2020 CY 2021
Number of Cases for
Illegal Dumping on Public Property
Cases Linear (Cases)
• There has been a 72% increase in the number of requests for service over the last 6 years.
Cases for repeat (third call within a year) illegal dumping locations remain open longer to ensure they are processed with Code Enforcement. Staff vacancies within the Clean City program have impacted response time.
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ENVIRONMENT
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
• The existing long-term partnerships with Community Reuse and Recycling companies continue to improve the volume of waste diverted from the landfill. • The Public Works Department Zero Waste Division expanded collection service to 400+ commercial accounts previously serviced by non-exclusive haulers. Commercial refuse, recycling, and organic volumes increased when Zero Waste began servicing these 440 commercial accounts. The overall increase from CY 2019 to CY 2020 is the result of a change in CalRecycle’s reporting methodology.
• The City opted in to a phased Alameda County Mandatory Recycling/Composting Ordinance in 2012 and 2014 with associated outreach/education campaigns. This likely increased recycle/compost participation through 2015. The City has limited staff available to conduct continued outreach and education to Berkeley residents and businesses. Currently, residents divert 65% of their waste into their curbside recycle and compost bins. Businesses and large multifamily properties recycle/compost only 35% of their waste. • In November 2021, the City opted in to the StopWaste.org ordinance for compliance with CA's SB1383 - Organic Reduction.
• In 2017, the closure of Pacific Steel Castings eliminated 12,000+ of recyclable slag.* This material had previously been included as “diversion” in the City’s diversion rate. • In future years, StopWaste will replace this metric with disposal pounds per person per day. • Current Transfer Station Facility is not designed or built to expand reuse and recycling services to commercial or residential customers. The proposed alternative is to replace all facilities at 2nd St.
The Solid Waste & Recycling Transfer Station Replacement Project Feasibility Study was completed in November 2019. The Council approved plans to proceed with the CEQA process for the Study’s two proposed Transfer Station Replacement concepts which are currently scheduled to be completed by December 2023. The final engineering of plans and specifications would be awarded and construction projected in CY 2025-26. *Slag is a by-product of steel making and is produced during the separation of the molten steel from impurities in steel-making furnaces.
60%
65%
70%
75%
80%
CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020
Percentage of Waste Diverted from Landfill
Waste diverted
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Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
Waste
diverted
from
landfill
The Zero Waste Division
continues to support source
reduction and reduced recycling
and composting through existing
and the implementation of new
programs, including a recent
carpet recycling program and
expanded mattress recycling
options. However, the City faces
many of the same challenges as
the rest of the State, as outlined
in California's 2019 State of
Disposal and Recycling. Due to
the plateau in diversion rates and
the increase of landfill tonnage
countywide, Alameda County
StopWaste is considering
changing from diversion rate
goals to reducing volumes of
waste landfilled.
To meet state legislation SB 1383 requirements,
Council approved an ordinance opting in to
Alameda County’s Organics Reduction and
Recycling Ordinance (ORRO) in November 2021.
Staff is currently working to implement the
programmatic regulations of SB 1383 and ORRO
that are effective beginning 2022 through 2024.
ENVIRONMENT
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Factors Contributing to Current Performance
Factors Restricting Performance Improvement
• With the City's off-street bike path network nearly complete, the recent addition of protected on- street bikeways and low-stress biking facilities has increased the comfort for people to bike instead of driving. Also, recent safety improvements at many crossings of major and collector streets have made walking and biking easier as a way of taking trips or connecting to transit services. The increased availability of shared mobility options, including short-term rentals through bicycle sharing and car sharing services, has improved the viability of not owning a car for many people.
• Changes in transit service sometimes reduce coverage of areas, particularly in the hills, making it harder for people to choose transit instead of driving.
The data predates the COVID-19 pandemic and resultant increase in work from home. However, this has also led to an avoidance of mass transit and shift to driving alone for more of the remaining commute trips. This phenomenon was observed in 2021 when freeway peak period volumes returned to near pre-pandemic levels even as most office employees were still working either entirely or mostly from home.
0%
10%
20%
30%
40%
50%
CY 2010 CY 2015 CY 2019
Percent of Commute Trips
by Solo Occupant Vehicle
ENVIRONMENT
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EQUITY
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
FY2018 FY2019 FY2020 FY2021
Meals Provided by Aging Services FY2018-2021
Congregate meals Meals on Wheels
Dramatic increase in Meals on Wheels numbers are due to greater number of older adults sheltering in place due to pandemic.
Due to home quarantine recommendations that occurred during the first part of FY21, seniors had more limited food access options. Congregate meal delivery to seniors shifted to a combination home delivery and grab & go model. Aging Services was also able to deliver more meals with assistance of other City staff during first part of FY21. • Provision of meals limited by County funding and Aging Services staffing to pack and deliver meals.
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EQUITY
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
-
50,000
100,000
150,000
200,000
FY 2019 FY 2020
Access to Technology/Internet
Public internet computer uses, total
Wifi Sessions
The Library created and offered loan of wifi
hotspots and laptops. Also, many people were able
to access the Library’s public free wifi from outside
of the closed buildings.
During part of the period measured, library and City
services were temporarily closed. On-site computer
services could not be accessed, except public wifi,
which remained available and is accessed
frequently from outside the facility. Libraries began
to open in May 2021, shortly before the period from
which this data is drawn concluded.
In FY 2021, library buildings were closed, thus limiting access to use of public computers.
89% 104% 116%
-
25,000
50,000
75,000
100,000
125,000
FY 2019 FY 2020 FY 2021
Registered Users
Registered Users
Population of service area
Registered Users as percentage of population
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
The significant increase in registered users
can be attributed to the heightened interest
in electronic materials inspired by the public
health crisis, and potentially changing
demographics.
• The Library launched a temporary eCard
program in response to the pandemic that
made it easier for people to access
electronic and physical materials. This
program was discontinued in December of
2021, but this data represents fiscal year
2021 (from July 2020 through June 2021).
• Demand for electronic materials continues to increase, which also drives interest in new library card registration.
• The extent of awareness of library services plays a role in determining registration rates for new records. If people in the community either do not know or experience barriers in completing the registration process, they will not register for new cards. The Library seeks approaches on an ongoing basis to mitigate both concerns.
• The Library partnered with Berkeley Unified School District (BUSD) to facilitate easier access by students to some kinds of digital materials. This might have inspired interest in new library card registration. In addition, California residents are eligible for Berkeley Public Library cards.
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EQUITY
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
0 10
20 30
40 50
CY 2020 CY 2021
Equal Employment Opportunity (EEO) Complaints
Average days to close complaint Number of complaints
• Increased collaboration between EEO and Employee Relations through implementation of a new HR case management system, easier identifying potentially duplicative matters with overlapping allegations.
• Simplified intake process making it easier to resolve issues early on at the department level, particularly if allegations are not rising to the level necessitating a formal investigation. • Better education of employees and managers/supervisors through EEO Division-led harassment prevention training results in fewer complaints received that are unable to meet jurisdictional threshold.
• Federal and state laws require employers are required to conduct an investigation and make a factual determination whenever they become aware of allegations of misconduct that, if true, would violate rules, expectations, or policies.
• The number of complaints received may be tied to workplace risk factors outside of the EEO Division’s control (e.g. cultural and language differences, power disparities, discourse outside of work, etc.).
• Need to avoid risk of potential chilling effect on complaint process, duty to identify and eliminate obstacles that might inhibit employees from filing discrimination, harassment, or retaliation complaints.
845
Performance Measures Appendix
A-15
EQUITY
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
78%
204%
85%
47% 41% 42%
78% 84%75%
203%
85%
43% 33% 46%
121%
85%
Whites Black or
African
American
Hispanic or
Latino
Asian American
Indian or
Alaska
Native
Native
Hawaiian
or Other
Pacific
Islander
Two or
More Races
Minorities
Work Force Parity Comparison
City of Berkeley 2020 & 2021
vs.
2020 US Census, Alameda County
City of Berkeley 2020 City of Berkeley 2021 Alameda County 2020 US Census Based on 2020 US Census for Alameda, CA, U.S. Census Bureau QuickFacts: Alameda County, California • Citywide commitment to advancing strategic plan goal of attracting and retaining a talented and diverse City government workforce.
• The racial/ethnic composition of the City and surrounding labor market is very diverse and has high levels of educational attainment.
• Transparency and accountability, workforce demographic trends are monitored by the EEO Division and Personnel Board and published online for the public, prospective job applicants, hiring managers, and City Departments.
• Department level commitment to cultivate and promote a highly qualified and diverse pool of internal job candidates when vacancies open.
• The civil service or merit system by design limits the ability to promote and hire government employees only to their ability to perform a job without consideration of a protected class status. • Historical trends resulting in overrepresentation or underrepresentation in certain jobs or fields of work based on race, ethnicity, and/or gender stalling full integration of certain groups across occupations.
• Proposition 209 amended state constitution to prohibit governmental institutions from considering race, sex, or ethnicity, specifically in the area of public employment.
846
Performance Measures Appendix
A-16
EQUITY
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
171.4%
30.6%
122.1% 135.5%
47.5%
170.4%
31.6%
122.5% 128.2%
48.0%
Male Female White Black Hispanic
Police Department Demographics
Compared to Community
Police Department CY2020 Police Department CY2022 Community Based on 2020 US Census for Alameda, CA, U.S. Census Bureau QuickFacts: Alameda County, California • Streamlined hiring/background practices allowed the Department to hire the best candidates. • Police departments overall are predominately made up of men and it is challenging to find women candidates interested in the profession.
• A reduction in the Department’s authorized staffing numbers have affected hiring. • The law enforcement profession has seen a significant decrease in applications. • Other City staff saw a reduction in staff which had a direct impact on the Department’s ability to hire.
847
Performance Measures Appendix
A-17
EQUITY
The Berkeley Police Department proudly accomplishes its work with minimal reliance on force through approaches such as de-escalation, awareness of mental health issues, and a culture valuing the dignity and sanctity of human life.
Recently, the Department adopted a higher bar for how it defines and records use of force. The older policy focused on more significant uses of forces involving complaint of pain, injury, or the use of a weapon. The new policy more accurately captures lower levels of force more frequently relied on when officers need to use force—such as grabs, control holds, and the use of leverage or body weight with no injury or complaint of pain. In a given incident, more than one technique may be used to bring a resistant individual into custody, and more than one officer may use force during the incident. As an example, if two officers grab a suspect that is pulling away from them, that would be counted as two uses of force.
75,781 76,347 77,693 69,915 76,176
60,799
45,473
78 78 98 31 90 62 50
CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 Uses of Force in Comparison to
Calls for Service
Calls for Service Total Uses of Force, All Types
OLD REPORTING STANDARDS
2,905 3,264 3,503
2,533 2,878
2,247
1,373
78 78 98 31 90 62 50
-
1,000
2,000
3,000
CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 Uses of Force in Comparison to
Arrests
Arrests Total Uses of Force, All Types
848
Performance Measures Appendix
A-18
EQUITY
NEW REPORTING STANDARDS
Level 1, 66.10%
Level 2, 27.66%
Level 3, 6.16% Level 4, 0.08%
Policy 300 Use of Force Data - 2021
The levels range from 1, the lowest reporting
level associated with momentary discomfort
to 4, the highest level which is associated
with deadly force. Learn more on page 13 of
the Use of Force Policy at
https://berkeleyca.gov/sites/default/files/2022
-05/Use_of_Force.pdf
342 Total Use of Force Incidents
1,186 Total Applications of Force
6% resulted in no injury or complaint of pain
66% Level 1; 94% Level 1 or Level 2
Booking, 3.51% Bike Stop, 0.29%
Assisting Jail Staff, 2.63%
Warrant Arrest, 3.51%
Traffic Stop, 2.92%
Search Warrant, 2.92%
Ped Stop, 1.17%
On-View, 4.68%
NULL, 0.29%
Investigative Stop,
9.65%
Call for Service,
68.42%
Reason for Officer Presence
66% Level 1 Use of Force
68% in response to Community
Call for Service (CFS)
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
• Higher levels of training especially in the areas of de-escalation have a positive impact. • Having a variety of available tools and less than lethal options results in safer outcomes for all involved.
• Officers are required to resolve situations and do not have control over a subject’s actions. Police often do not have a choice about when they will be required to use force. If a subject requires police contact and the subject initiates a violent encounter, police may be required to use force to resolve the situation or effect an arrest.
• Lack of some additional less than lethal tools may limit the types of available responses.
849
Performance Measures Appendix
A-19
EQUITY
NEW REPORTING STANDARDS
200
142
140
102
57 54
5 11
31 5
6 14
10 3
3 89
29 11
19 11
18 47
32 4
27 21
8 7
3 2
2 2
3 5
18 12
6 10
3 10
2 2
9 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 Effect an Arrest
Resisting Arrest
5150 Detention
Combative
Fleeing
Assault on Citizen
Reported as Armed
Clearing a Structure
Resisting Jail Transfer
Perceived as Armed
Brandishing a Weapon
Assault on Officer
Clearing a Vehicle
Block Search
Resisting DNA Buccal Swab
Forced DUI Blood Draw
Clearing Outdoor Area
NULL
Reason Force Was Used
Level 1 Level 2 Level 3 Level 4
66% Use of Force Level 1
68% in response to Community Call for Service
29% Use of Force occurred to affect an arrest
850
Performance Measures Appendix
A-20
EQUITY
74,703 75,767 75,781 76,347 77,693
69,915
76,176
58,095 60,393 61
55 60
41 28 25
15 24 23
-
10 20
30 40
50 60
70 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 Complaints in Comparison to Calls for Service
Calls for Service Complaints
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
• The Berkeley Police Department (BPD) considers meaningful and regular community engagement a vehicle to enhancing community trust. Engagement occurs daily, around the clock as officers interact with the citizens we serve. It also occurs through more organized events, ranging from far reaching public events to focused smaller group interactions. Thought and effort is given to reach many groups within the community including and especially those most in need of services or least familiar with the BPD.
• People who are unhappy with the interaction they had with BPD can file a complaint with BPD’s Internal Affairs. These complaints are recognized as a reflection of the way individuals feel about their interaction or the service they received.
• Perception of “police” and “policing” is strongly influenced by media and culture. While any negative perceptions can be mitigated by good interactions, they are difficult to eradicate. • An individualized complaint may be tied to factors beyond the Police Department’s control or be a result of a very particular situation or set of facts, and thus may not directly connect to the experiences or level of trust of the greater community.
851
Performance Measures Appendix
A-21
FY 14-15 FY 16-17 FY 18-19 FY 20-21 FY 22
Balanced Budget
Received GFOA Award
Issued Unfunded Liabilities Report n/a*
FISCAL HEALTH
Budget Activities Overview
*The unfunded liabilities report is issued every two years.
Factors Contributing to Current Performance
• Balanced Budget: Working with City departments, Budget and Finance Policy Committee, and Council to prepare a biennial budget where expenditures are equal to or less than anticipated revenues in all funds.
• GFOA Award: Having adequate time and staffing to produce the budget document that encompasses the various rigorous GFOA requirements needed to receive the GFOA Distinguished Budget Presentation Award.
• Unfunded Liability Report: This
report is only prepared on a biennial basis.
• Budget Adjustments: Adequate staffing,
system training/understanding citywide fiscal staff and time allotted to ensure budget adjustments are performed correctly and within appropriate spending authority.
• Contract and Report Review: Adequate staffing and time allotted to ensure that no adverse financial impacts would result from, and that sufficient funding is identified, in relation to any agenda report proposal and contract.
Factors Restricting Performance Improvement
• For GFOA Award: Shortened timelines/staff availability due to competing priorities and staff vacancies l
ed to not applying for the Awards Program.
673
1,364 1,113
0 500
1000
1500
FY 2019 FY 2020 FY 2021
Budget Adjustments
726 reports and 549 contracts reviewed for fiscal impact and consistency.
852
Performance Measures Appendix
A-22
FISCAL HEALTH
0%
20%
40%
60%
80%
100%
Reserve as
Percentage of
Revenues
FY 22
Health of General Fund Reserves
Actual
2020 Target
2027 Target
The majority of performance measures in
this report are things the organization itself
directly impacts and for which staff can
answer “how much did we do, how well did
we do it, is anyone better off”. On this
page are some fiscal measures that staff
does not have a direct impact on, but are
equally important and provide context.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
FY 19 FY 20 FY 21
Section 115 Trust Contributions
Target
Actual
Factors Contributing to Current Performance
The ongoing COVID-19 pandemic impacts on the economy and the City’s revenues, as well as the additional services and funding needs triggered by the City’s response to COVID-19, have drawn down on the General Fund and included use of reserves. The City was able to refinance some of its debt and the savings from that refinancing were used as the original seed money for the Section 115 Trust.
The City found an innovative way to contribute to this Trust. The City Manager approved the pre- funding of the City’s Unfunded Liability piece of its premium. Prefunding allows the City to make a rate of return on the investment and then adds the savings to the Trust.
Factors Restricting Performance Improvement
The nature of the pandemic is ongoing and will require significant resources even during recovery. This limits the amount of available excess equity, inhibiting the City’s ability to fully contribute to these items.
Although the City has found innovative ways to cont ribute to its Section 115 Trust, it is still falling short of its targeted contribution level. The Section 115 will be a valuable resource in aiding the City to effectively maintain operations and services while confronting soaring pension costs.
853
Performance Measures Appendix
A-23
FY 2020 FY2021
Total cash and investments $596,640,057 $660,517,110
Rate of return, pooled 1.87% 0.97%
Rate of return, trust 3.17% 4.23%
Meeting safety, liquidity, & reasonable return requirements FY 2020 FY 2021
Meet statutory publication date for Annual Comprehensive Financial Report Receive no audit findings
FISCAL HEALTH
City Portfolio Overview
Factors Contributing to Current Performance
• These include macro-economic activity, interest rates, inflationary pressures and investment confidence.
Factors Restricting Performance Improvement
• Cash and investments are subject to City Council restrictions and statutory limitations.
Financial Reporting
Factors Contributing to Current Performance
• For financial reporting (i.e., audits, annual comprehensive financial report) the implementation of a new financial system contribute to current performance.
Factors Restricting Performance Improvement
• The lack of adequate resources can restrict performance improvement.
854
Performance Measures Appendix
A-24
FY 2020 FY 2021
Noncompliant, returned 10% 4%
Partially compliant, require review 20% 0%
Total purchase orders, count 4,968 4,129
Total purchase orders, amount $206,961,915 $155,828,129
FISCAL HEALTH
Purchasing Overview
Factors Contributing to Current Performance
• The city implemented a new financial system in 2018 which streamlined procure-to-pay processes. The system provides purchasing staff with visibility of required documentation, and the ability to reject and return non-compliant requisitions, and to communicate efficiently with the departments submitting requisitions.
• Reporting capabilities in the new system are enhanced compared to the old system, and provide for easy access to the count, amount, and status of requisitions, purchase orders, and contracts. • Staff provided internal training on requisitioning procedures.
Factors Restricting Performance Improvement
• There are certain requisitions that require special handling. • Staff turnover in requisitioning departments can affect performance improvement. For example, newer staff may not have experience or training on requisitions. The Finance Department’s General Services Division provides training but it may lag behind the initial onboarding of new staff.
855
Performance Measures Appendix
A-25
Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
PCI The Paving Condition Index
(PCI) is utilized throughout the
nation to indicate the condition of
the pavement of the streets. The
current city-wide average
Pavement Condition Index (PCI)
is 56, ranging from 52.8 to 61.9
across council districts. The
average PCI is down from 58 in
2019.
Improving the City’s streets and roads continue to
be a severely underfunded need. Public Works is
investing $26.3 million in repaving funds, including
$6.75 million in Measure T1 funds over the next
two years. However, the lack of resources
available to the Paving Program is resulting in a
continual decline in the condition of the City’s
streets.
As part of the FY 2023-2024 budget process, the
Public Works Department is asking that City
Council secure an additional $8 million per year
just to maintain our street conditions and prevent
further decline from their “at risk” state. Also, in
June 2022, the Public Works Department will
present Council information on options to bring
forward an infrastructure-focused revenue
measure on the November ballot.
INFRASTRUCTURE
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
59 57
56 56
54 55
56 57
58 59
60 CY 2010 CY 2015 CY 2020 CY 2021
Pavement Condition Index (PCI)
• Between FY 20-21, Public Works paved
18.6 miles. Public Works was able to
increase the amount of annual paving due
to funding from Measure T1 and leveraging
existing funding by cost sharing with East
Bay Municipal Utilities District (EBMUD)
and Pacific Gas & Electric (PG&E) to pave
segments of Ellsworth, Stuart, Blake,
Parker, and Mathews.
• Improving the Pavement Condition Index requires significant additional funding as identified in the recent Auditor's Report entitled Rocky Road: Berkeley Streets at Risk and Significantly Underfunded. Deferred maintenance continues to impact the current condition and increase the costs of future repairs.
856
Performance Measures Appendix
A-26
FY 2020 FY 2021
Noncompliant/requiring additional review 20% 5%
Total payments, count 91,428 87,626
Total payments, amount $407,577,485 $513,637,408
LOCAL ECONOMY
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
Payment Requests
• The City implemented a new financial system in 2018 which streamlined procure-to-pay processes. The system provides accounts payable staff with visibility of required documentation, and the ability to reject and return non-compliant payment requests, and to communicate efficiently with the departments submitting payment requests. • Reporting capabilities in the new system are enhanced compared to the old system, and provide for easy access to the count, amount, and status of payment requests. • There are certain payment requests that require special handling. • Staff turnover in requesting departments can affect performance improvement.
857
Performance Measures Appendix
A-27
LOCAL ECONOMY
$-
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
-
20 40
60 80
100
120
FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22***
Arts and Culture Grants
Grant Applications Received Count of Grants Awarded
Count of Grants Awarded Via ARPA** Total Dollar Amount Distributed (all grants) **City Council approved funds for Berkeley Arts Relief Grants with equity-centered criteria aligned with American Rescue Plan Act (ARPA) guidelines.
***With the exception of Berkeley Arts Relief Grants (ARPA funded), the arts and culture grants cycle has moved to a two-year cadence, the next application window will open in the fall of 2022.
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
• Professionalized grant review program with transparent scoring, professional grant review panelists, and a streamlined application program.
• The program is moving towards a two-year grant cycle, which will allow applicants to plan budgets and design programs with more longevity and efficiency.
COVID-19’s impact on the arts and cultural sector will mean that demand will likely far outstrip supply of grant monies.
• Limitations of the current contracting and invoicing/payment systems can make processing grant payments cumbersome to staff, and not as timely to recipients.
858
Performance Measures Appendix
A-28
0 20
40 60
80 100
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21
Revolving Loan Fund and Jobs
Private sector jobs saved Jobs created
LOCAL ECONOMY
0 2
4 6
8 10
12 FY
15 FY
16 FY
17 FY
18 FY
19 FY
20 FY
21 Active Loans
Revolving Loan Fund Active Loans
Resiliency Loan Program Active Loans
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
FY
15 FY
16 FY
17 FY
18 FY
19 FY
20 FY
21 Total Dollars Loaned
Total Resiliency Loan Program dollars loaned
Total Revolving Loan Fund dollars loaned
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
• Changes to the Revolving Loan Fund (RLF)
Administrative plan allowed for larger loans to
be offered, with corresponding impact to jobs
retained and created.
• Active marketing of RLF loans and a
professionalized underwriting system have
increased program efficiencies.
• Transitioning to an online application intake
process has made the program more attractive
to many potential Berkeley RLF program
applicants.
COVID-19’s impact on the small business
sector will mean that demand for financial
support will likely far outstrip supply of loan
monies. However, staff has been able to use
leverage other funding from the Coronavirus
Aid, Relief, and Economic Security (CARES)
Act to establish a second loan fund (Resiliency
Loan Program [RLP]) and provide additional
technical assistance to RLP program
participants.
• Limitations of the current contracting, loan
servicing and payment systems, can make
processing loan payments cumbersome to
staff, and loan disbursement not as timely to
recipients.
859
Performance Measures Appendix
A-29
Pandemic Recovery Funds
City Council awarded American Rescue Act (ARPA) Funds on June 30, 2021. Office of Economic Development disbursed $500,000 to Visit Berkeley (Conventions and Visitors Bureau) to support the visitor and tourism sector. Office of Economic Development developed the grant program Berkeley Arts Relief Grants with equity-centered criteria, aligned with American Rescue Act guidelines. The effort involved creating an application, guidelines, working with the Civic Arts Commission, reviewing and scoring 75+ applications. 74 grant awards ranging from $3,000 to $33,000 with an average grant size of $20,734 per organization were disbursed in February of 2022.
With CARES Act funds, established an additional loan fund (the RLP), to provide direct assistance to Berkeley’s businesses. This program was supported with additional ARPA funds dedicated to offering technical assistance to program participants to keep them thriving in Berkeley.
LOCAL ECONOMY
$2,000,000
$500,000
$170,000
American Rescue Plan Act (ARPA) Funds
Arts & Culture Organizations Visitor and Tourism Sector Small Business Support
860
Performance Measures Appendix
A-30
Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
Volunteer
hours
The Animal Shelter was
closed to volunteers for
the first six months of
2021 due to COVID.
The Animal Shelter is now open and accessible to
volunteers.
RESILIENT
Factors Restricting Performance Improvement
• Berkeley Animal Care Services (BACS) has
made vaccines available to public animals
that were brought in for sterilization, and
made sterilization available to publicly
owned animals. This has contributed to the
increased vaccine and spay/neuter
performance.
• BACS offers a robust volunteer program that
allows volunteers maximum access to the
shelter.
Reduced volunteer access to shelter due to COVID shelter-in-place eliminated volunteer opportunities and thus reduced hours.
• Fostering is practical for a limited and predictable number of people, which tends to keep these numbers relatively stable.
Factors Contributing to Current Performance
20,020
9,780
-
5,000
10,000
15,000
20,000
25,000
CY 2020 CY 2021
Volunteer hours
0% 10% 20% 30%
CY 2020
CY 2021
Foster rate
-
500
1,000
1,500
2,000
2,500
Vaccinations Spays/neuters
performed
Vaccinations and Spays/Neuters
CY 2020 CY 2021
Animal Care Services
229 volunteers
in 2021
861
Performance Measures Appendix
A-31
RESILIENT
Homeless Response Team
Shelter uptake rate………………………………………………………………....39%
Average tonnage/pounds of debris removed……………...27,453 pounds/month Average storage notices provided………………………………...6 notices/month Average number of violation notices provided…………….…......9 notices/month Average number of encampment enclosures performed……...3 closures/month Factors Restricting Performance Improvement
• The Council's creation of the Homeless Response Team with a FY 2022 budget allocation has enabled the creation of an inter-departmental team with staffing and equipment available on a regular/predictable schedule, which has accelerated the pace of the work. • The creation in CY 2021 of the Horizon Transitional Village Program shelter (50 beds) and the Safe Parking And Respite Kickstart (SPARK) program (40 RV parking spaces) has enabled staff to bring people out of encampments and into safer places, which has allowed us to close 10 encampments and significantly reduce the footprint of RVs parked throughout the City.
COVID has limited the number of available shelter beds, as some beds needed to be taken offline to allow for CDC physical distancing compliance. Spaces at SPARK and Horizon are now nearly full. Most of Berkeley's shelter beds are in congregate settings, and COVID has also affected the willingness of some unsheltered people to use congregate shelter.
Federal case law prevents encampments from being closed unless everyone in the encampment is given a shelter offer. Because of the limited number of beds available due to COVID, there are very few shelter vacancies in the system at any given time, which limits performance. • Regular data collection for storage notices and violation notices began in November, so these figures provide an incomplete picture of the work. Staff anticipates more robust data in CY 2022.
Factors Contributing to Current Performance
862
Performance Measures Appendix
A-32
RESILIENT
0:04:02
0:04:11
0:04:19
0:04:28
0:04:36
0:04:45
0:04:54
0:05:02
0:05:11
0:05:20
CY2015 CY2016 CY2017 CY2018 CY2019 CY2020 CY2021
Minutes
Call Response Time
Average Median
Note: Response time is the time interval from the first unit assigned to the first unit arrived.
Note:The chart reflects a possible underreported response time. The department is currently undergoing an in-depth Standard of Coverage analysis and reassessing criteria for response time.
Factors Restricting Performance Improvement
• Although the chart shows a slight improvement from Calendar Year (CY) 2020 to 2021, it possibly reflects an underreported response time due to data discrepancies. • The Fire Department with the assistance of an outside contractor, Citygate Associates, LLC, is currently undergoing an in-depth Standards of Coverage (SOC) analysis of its response time to understand best practice, how it performs against that best practice and the contributing factors to any deficits. The SOC analysis will provide a more detailed analysis of data and uncover more concrete causal factors to help drive specific actions with the ultimate goal to help reduce emergency response time to the community.
• Inadequate staffing.
• Multiple response time metrics and standards lead to inconsistent performance expectations. • The need to develop best practices, supported by consistent data, to identify a baseline response time.
• The lack of modern fire/emergency medical service dispatching software.
Factors Contributing to Current Performance
863
Performance Measures Appendix
A-33
RESILIENT
92%
57% 95%
0 1000
2000
3000
4000
5000
6000
7000
2018-19 2019-2020 2020-2021
Inspection Cycle
Fire Prevention Inspections
Number of scheduled inspections completed
Total number of scheduled inspections
Note: The inspection year typically runs from
August through June. In 2020-2021, only State-
mandated inspections were completed.
Factors Restricting Performance Improvement
In CY 2020 and 2021, the COVID-19
pandemic led to the suspension of the
program; thereby reducing inspections. The
program suspension extended through the
beginning of CY
2022, reducing the available
inspection window from approximately nine
months to five months. The outcome was a
backlog in inspections.
• In CY 2021, ongoing staffing challenges
within both the Operations and Fire
Prevention Divisions allowed for only certain
state-mandated annual ‘maintenance’ fire
inspections to be performed. These
inspections were typically high-risk
occupancies with greater probability of life
safety hazards or vulnerable occupant
populations such as educational, institutional
or high-rise facilities.
• Staffing challenges are the primary cause for restricting or impeding performance improvement.
Berkeley is comprised of varied occupancies and properties, and most require inspections. Multiple residential occupancies of 3 or more units, commercial properties, homes in the hazardous fire areas, vacant lots, lots under construction and parking lots are subject to annual fire inspections. Adequate staffing consisting of Operations or Fire Prevention Division staff (or a combination of resources), who have access to efficient inspection software via mobile devices is the best way to meet the inspection goals of the Department. In response to the demands for annual inspections, the Department is in the process of hiring additional staff. • Once additional staffing is secured and trained and efficient inspection hardware and software adjuncts can be assessed, it will be possible to assess the level of agreement between the inspection mandates imposed at local and State levels and the inspection staffing level currently proposed. Ultimately, if the resources available to perform inspections cannot be made to match the mandated workload, it may be necessary to reevaluate the inspection workload that is within local control and modify the scope and/or frequency of locally mandated inspections. • Properties with difficult access, changes in property ownership or contact addresses being inconsistently updated from County and City records, and inconsistent communication with property owners make follow up on inspections difficult to ensure correction of violations. • Fire Suppression companies are necessary to complete the majority of inspections throughout the City. Demands on their time (emergency calls for service, training, etc.) are ongoing factors that impede 100% completion of scheduled inspection.
Factors Contributing to Current Performance
864
Performance Measures Appendix
A-34
RESILIENT
Factors Restricting Performance Improvement
• Continued annual allocations are needed to mitigate fire risk to remove hazardous trees and ladder fuels (i.e., brush/vegetation), which require annual maintenance and clearing.
Factors Contributing to Current Performance
• Fire fuel budget allocations from the General Fund over the last 4 years have enabled Parks staff to remove fire fuel (hazardous trees and vegetation) and reduce fire risk in the hills in parks, pathways and near private property.
0.00 50.00
100.00
150.00
200.00
250.00
300.00
350.00
FY 2019 FY 2020 FY 2021
T ons
Fire Fuel Debris Removed
865
Performance Measures Appendix
A-35
There has been an ongoing effort to improve traffic
safety, which led to the March 2020 adoption of the
Vision Zero Implementation Plan to eliminate severe
injury and fatal traffic crashes by 2028. The annual
Traffic Calming program was temporarily replaced
with the Healthy Streets program in 2020 as a
response to the COVID-19 pandemic. Healthy
Streets employed barricades and signage to regulate
motor traffic on some of the existing Berkeley Bicycle
Boulevards in order to provide streets with very low
motor traffic volumes so that people could walk, bike,
and travel outdoors while having the street space
needed for physical distancing.
Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
Three-year
average of
fatalities and
severe
injuries on
City streets
The three-year average
of fatalities and severe
injuries on the City's
streets has continued to
rise.
The implementation of the 2020 Vision Zero Action Plan
will continue to move forward through the initiation of Vision Zero Coordinating Committee meetings,
completion of Vision Zero design guidance for "quick-
build" projects to increase timeliness of delivery of traffic safety projects, the development of a Vision Zero public communications campaign, and increased rapidity of
crash data analysis. In addition, the delivery of Vision Zero capital projects will continue throughout the City, with projects currently in the design phase together
valued at well over $10 million.
RESILIENT
0 20
40 60
CY 2015 CY 2019 CY 2020
Three Year Average of Fatalities
and Severe Injuries on City Streets
3-year average fatalities
3-year average severe injuries
Factors Restricting Performance Improvement
The Vision Zero Action Plan was adopted one week before the start of the COVID-19 Shelter in Place public health order, and as a result many of the proposed action items that required public meetings, committee formation, and collaboration had to be put on hold. The pandemic also caused motor traffic volumes to decrease dramatically in 2020. This significant reduction in traffic congestion resulted in greater and more frequent motor vehicle driver speeding*. Concurrently, there was a decrease in pedestrian an
d bicyclist activity on major streets, as many people shifted to working from home and receiving home deliveries of groceries and retail goods. This may have resulted in increased risk for people who were still walking and biking on these streets due to the relative lack of visibility in smaller numbers.
*https://www.nhtsa.gov/sites/nhtsa.gov/files/2021-10/Traffic-Safety-During-COVID-19_Jan- June2021-102621-v3-tag.pdf
Factors Contributing to Current Performance
866
Performance Measures Appendix
A-36
Since shelter in place restrictions have mostly lifted, travel has increased on roadways. Shelter in place (SIP) orders meant drivers weren’t driving as frequently leading to less proficiency. Also, DMV postponed driver license renewals and tests throughout the SIP.
Post COVID driving behavior has led to drivers taking more risks behind the wheel.
Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
Deaths and
Accidents
Relating to
Bicycles or
Vehicles
With increased travel
after a year or more of
less time on the roads
(e.g., with shelter in
place), drivers and
bicyclists may have
lowered proficiency.
Also, many have
observed an increase in
risky driving behaviors.
The Berkeley Police Department is addressing these
safety issues with a multi-pronged approach:
• researching programs utilizing grant funding to
support enforcement, policies, and practices that
promote safe bicycling;
• applying for the Age Well, Drive Smart grant to
provide an education program to help seniors tune up
their driving skills, refresh their knowledge of the rules of the road, and discuss normal, age-related physical
changes and how they affect driving ability; and
• using grant funding to support enforcement of unsafe
driving behaviors and develop educational
campaigns.
RESILIENT
Factors Restricting Performance Improvement
COVID related absences, injuries and staffing shortages have reduced the number of available personnel to conduct traffic enforcement and community awareness operations. • Decreased visibility on the roadways has emboldened dangerous driving behavior.
Factors Contributing to Current Performance
0 1 0 1 0 0
2 3 4 4
2 8
0 5
10 CY16 CY17 CY18 CY19 CY20 CY21
Deaths Relating to Bicycles or
Vehicles
Bicycles Vehicles
146 155 148 109 67 97
545 581 584 521
316
625
0 200
400
600
800
CY16 CY17 CY18 CY19 CY20 CY21
Accidents Relating to Bicycles
or Vehicles
Bicycles Vehicles
867
Performance Measures Appendix
A-37
• Use of Electronic Document Management System (OnBase) for records repository to enhance access to records.
• Staffing levels are adequate to meet the level of service required. • Expansion of digital records program is dependent on staffing, funding, and technology capacity. • Funding for the Paperless Contracts Project in FY 2023-2024 will be essential to increasing efficiencies and allowing staff to meet baseline responsibilities. • Implementation of an electronic records management policy and certification of a Trusted Environment to store electronic records would improve efficiency and recordkeeping throughout the City, but have implementation costs and staffing needs required. • The current process of compiling communications from the public is primarily a manual process that is time intensive, however, this process accommodates all types of communications, including handwritten and hard copy communications.
CY 2020 CY 2021
City Council Legislative items 962 966
Contracts 497 496
Resolutions 441 194
Minutes 195 154
City Council Communications Packets 145 154
Ordinances 65 47
Contract extension letters 47 103
Certificates of liability insurance 4 7
Acceptance of work orders 2 14
Election results 1 0
Voter information pamphlet 1 0
Records indexed to the public portal, total 2,360 2,570 City Council Communications received by City Clerk 4,685 4,086
SERVICE
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
Records and Communications
868
Performance Measures Appendix
A-38
• Use of Zoom videoconference platform has allowed the City's legislative process to continue and provided for public engagement in meetings during the pandemic. • The City Clerk Department has also supported the Independent Redistricting Commission since the start of 2021. This additional responsibility has resulted in only meeting baseline tasks and not engaging in improvements or special projects.
4 Facilities, Infrastructure, Transportation, Environment, and Sustainability (FITES) CY 2020 CY 2021
City Council 81 84
Agenda and Rules 25 27
Budget and Finance 19 23
FITES3F
4 11 12
Health, Life Enrichment, Equity, and Community 10 3
Public Safety 7 6
Land Use, Housing, and Economic Development 6 15
Independent Redistricting Commission - 24
City Council and Policy Committee meetings administered, total 159 170
SERVICE
Meetings
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
869
Performance Measures Appendix
A-39
• The high quality and capacity of the staff managing the legislative bodies is a key factor in administering the high volume of items.
• The OnBase Agenda Manager software is essential to tracking, reviewing, and publishing the items for the legislative body agenda packets.
• A significant number of new items and revisions submitted late in the process require an inordinate amount of time to process as compared to complete items submitted in accordance with established deadlines.
• Multiple Supplementals and items that are repeatedly carried over from meeting to meeting are more time-consuming to process and result in a complex legislative record that can be difficult for the public to review and understand.
• The City Clerk Department has also supported the Independent Redistricting Commission since the start of 2021. This additional responsibility has resulted in only meeting baseline tasks and not engaging in improvements or special projects.
0 100
200
300
400
500
600
700
800
900
City Council items Policy Committee items Independent Redistricting Commission
Legislative Items
Collated and Tracked
CY 2020 CY 2021
SERVICE
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
870
Performance Measures Appendix
A-40
0 200
400
600
800
1000
1200
1400
Campaign Finance Filings Lobbyist Disclosures Form 700 Statement of Economic Interests filings
Disclosures
CY 2020 CY2021
• The NetFile online filing system assists both filers and staff with the submission, processing, and public availability of the disclosure documents.
• The implementation of online Form 700 filing for city commissioners has reduced vehicle trips to the Civic Center, reduced late filings, reduced the amount of hard copy notices mailed from the City Clerk, improved accuracy of filed statements, and reduced terminations from commissions for non-filing.
• New programs in this area (Lobbyist, Public Financing) have hindered staff's ability to deliver the level of service and assistance to filers that was previously available. • New amendments to the Berkeley Election Reform Act have expanded the Public Financing Program for City Candidates. This will likely result in increased turnaround time for payments of
matching funds.
• The complexity of the Lobbyist Ordinance and the high registration fee ($500) has caused some difficulty in staff's administration of the ordinance as well as compliance difficulties for filers.
SERVICE
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
871
Performance Measures Appendix
A-41
• Berkeley Animal Care Services (BACS) has highly successful adoption and rescue rates. This can be attributed to a number of factors, including an excellent working relationship with nonprofit rescue organizations, accessible hours of operation to the public (limited during COVID-19), and excellent customer service.
• Some animals are too sick injured or aggressive to place. • Limited veterinary staffing has constrained the City’s ability to perform surgeries and other procedures.
SERVICE
Animal Care Services
Average days per shelter stay………………………………………………....8 days Percentage of animals adopted………..................................................……...22% Percentage of animals going to nonprofit rescues…………......................…...35% Percentage of animals returned to owners......................................................34%
6% 6%
0%
5%
10%
15%
CY 2020 CY 2021
Low Euthanasia Rate
Low euthanasia rate
National standard
58 59
60 61
62 63
64 Non-Sterilization Surgeries
CY 2020 CY 2021
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
872
Performance Measures Appendix
A-42
• Hosting community meetings on Zoom likely increased participation in public meetings. In the recent Measure T1 Phase 2 community process, and the Vision 2050 community outreach, staff were able to attend more neighborhood group meetings to take feedback and share progress and updates. Additionally, advertising, use of in-house graphic design, and publicizing meetings and events helped increase community contacts. • Pandemic restrictions have limited staff’s ability to hold in‐person meetings and special events.
However, as the health restrictions are lifted, staff anticipate a return to pre-COVID levels of events and in-person programs.
SERVICE
0 20
40 60
80 100
120
FY 2019 FY 2020
Number of Community
Contacts
Commission & Sub-Committee meetings
Community meetings/pop-ups
Communications
0 50
100
150
200
FY 2019 FY 2020
Hours
Time Spent During Community
Meetings
Commission & Sub-committee meetings
Community meetings/pop-ups
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
Parks, Recreation and Waterfront Community Contacts
873
Performance Measures Appendix
A-43
• The safe return to the office (from shelter in place) has positively impacted performance, as staff has more opportunity to be in the field and address cases. • Acquiring two Unit vehicles to replace one has allowed for simultan eous inspections that may occur on the same workday.
• Lack of software tools to research contact information for non-responsive property owners • Only way to collect fines from issued administrative citations is to place a lien on the property.
This is cumbersome and is typically reserved for extreme/high-value balances. Hiring a third- party collection agency (commonly done in other jurisdictions) would fairly collect for all values of outstanding balances. Note: current outstanding balances for unpaid fines is at $620,700. • Current case management is cumbersome. A new, dedicated software system would help to automate the process of documentation, noticing, and reporting. • Insufficient staffing relative to the workload, as identified in the City Auditor's 2018 report.
Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
Average
days to
resolve
case
CEU responds to complaints as they are received,
and has no control over the complexity of cases that
are received. Highly complex cases may come in at
any time. These cases can take months or even
years to resolve, the unpredictable receipt of even a
few such cases may cause the metric to fluctuate
considerably from year to year.
CEU will begin tracking additional
data to determine not just the
time from case creation to
completion but also from creation
to acquisition by an enforcement
officer—a better method for
measuring responsiveness.
SERVICE
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
18.07 16.82
53 0%
20%
40%
60%
80%
100%
0 20
40 60
CY 2019 CY 2020 CY 2021
Neighborhood Services Code Enforcement Unit (CEU)
Average Days to Resolve & Case Completion Rate
Average days to resolve case Case completion rate
In CY 2021:
303 total cases
238 completed cases
874
Performance Measures Appendix
A-44
Increase in Information & Assistance sessions due to pandemic-related demand. Since senior centers were closed for most of FY21, Aging Services staff pivoted to provide assistance to seniors and connection to resources virtually. Staff also proactively conducted wellness calls and provided information to seniors during those calls.
Due to the shelter-in-place order, face-to-face information and assistance sessions are not being conducted, but are being provided virtually by phone.
SERVICE
-
1,000
2,000
3,000
4,000
5,000
6,000
FY2018 FY2019 FY2020 FY2021
Information and Assistance Sessions Provided by
Aging Services Division
Number of sessions
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
875
Performance Measures Appendix
A-45
• The Full Service Partnership (FSP) program utilizes the Assertive Community Treatment model, an evidence-based practice, which has been shown to support the population it serves. • The FSP program provides the vast majority of services in the field, allowing for engagement of clients who previously have been unengaged.
• The FSP program utilizes motivational interviewing and harm reduction strategies, allowing the team to support clients who have not done well with mental health care in the past. • The FSP program quickly responds to crisis events, finding solutions to issues that led to hospitalization in the past.
• There are sometimes shortages in sub-acute treatment placements, reducing the ability to avoid hospitalization.
• There are not enough housing options available, leading to increased stress on clients.
SERVICE
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
83% 89% 86%
78%
0%
20%
40%
60%
80%
100%
FY 17 FY 18 FY 19 FY 20
Reduction of Days Spent in Psychiatric Hospital Among
Clients in Full Service Partnership Program
% reduction in days spent in psychiatric hospital
876
Performance Measures Appendix
A-46
• The Environmental Health Division (EHD) staff address community complaints regarding vectors such as rats, bedbugs, and yellow jackets effectively reducing overall vector calls to EHD.
Many communities are experiencing increasing vector calls due to pandemic-related changes in consumption and live/work patterns.
• Reduced staffing among field staff and support staff in EHD caused some community vector calls to be transferred to the county in FY 2020.
• The Alameda County Agriculture Department restricted the use of a common pesticide used to control the yellow jacket population which impacted the ability to respond to community complaints. The hold was lifted in FY 2020.
SERVICE
539
436
310
366
0 100
200
300
400
500
600
FY 18 FY 19 FY 20 FY 21
Vector Service Requests Received by Environmental Health Vector Program
Calls Received
Factors Contributing to Current Performance
Factors Restricting Performance Improvement
877
Performance Measures Appendix
A-47
SERVICE
98% 92% 99%100% 98% 92%97% 99% 93%99% 96%
75%
0%
20%
40%
60%
80%
100%
October November December
COVID Cases and Contacts
with Outreach Initiated
Cases CY 20 Cases CY 21 Contacts CY 20 Contacts CY 21
Note: For data purposes, the months are calculated from the 25th of the preceding month through the 24th of the month. For example, October is September 25 through October 24.
Factors Contributing to Current Performance
The City of Berkeley worked to maintain staffing of case investigators and contact tracers (CICT) due to the reduction of the redirected staff from California Department of Public Health (CDPH) and continued increase of cases. We have been able to hire additional staff but have not filled all vacancies and continue our partnership with UC Berkeley.
The City of Berkeley provides support, to CICT staff at UC Berkeley and CDPH to ensure effective contact tracing and case investigation.
Bilingual and bi-cultural CICT staff members were recruited and hired to serve all members of the Berkeley community.
Factors Restricting Performance Improvement
Cases do not always provide correct contact information or are unwilling to provide any contact information of those they have come in contact with making it difficult to initiate outreach.
In December, the City of Berkeley began experiencing a tremendous surge of cases on top of an already high baseline of cases due to a holiday surge and the steep rise in cases due to the Omicron variant. This required shifting in outreach of cases to target high risk populations and settings while providing some outreach to all cases and contacts. This approach has reduced the amount of cases and contacts where outreach was initiated.
Over the holidays, cases and contacts were less responsive to CICT staff outreach, also impacting ability and effectiveness of staff outreach.
878
Performance Measures Appendix
A-48
SERVICE
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
FY 2019 FY 2020 FY 2021
Circulation of Books and Electronic Materials
Electronic items circulated Physical items circulated
Factors Contributing to Current Performance
During part of the period measured, Outdoor Pickup service was the primary way that people checked out Library materials. Electronic materials circulation continued. Because people were not entering Library buildings, there was a decrease in circulation overall due to the fact that people were only checking out materials on hold versus browsing. • Demand for electronic materials continues to increase, mirroring a national trend. This demand was heightened during the closure as some additional users opted for electronic books.
Factors Restricting Performance Improvement
Libraries are now open to the public, but during the period from which this data was collected, they were not. For this reason, a lower percentage of materials was circulated. The numbers will adjust to standard levels when browsing and other aspects of access are once again available.
879
Performance Measures Appendix
A-49
SERVICE
0%
20%
40%
60%
80%
100%
Visited website first Felt adequately prepared
(from website visit)
Received courteous
service
Permit Service Center
Customer Satisfaction
2019 2021
Factors Contributing to Current Performance
• The 2021 Survey received more responses than the 2019 edition, largely from efforts to make sure all clients were aware of the survey.
• Staff believe this cross-section of respondents is more representative than in 2019, including more building professionals who comprise the majority of Permit Service Center clients.
This survey captured clients who experienced all of the new remote submittal services Planning introduced to remain fully open during the pandemic.
Factors Restricting Performance Improvement
• While remote applications are fully available to building permit clients, that is not yet true for Land Use permit clients, both of whom were surveyed.
• Evidence suggests that building professionals view Berkeley services positively in comparison to services in other jurisdictions. However, this warrants more direct questions in future surveys.
• Zoning and Building are regulatory functions, which inherently means that customers will sometimes be told they are not allowed to pursue the project they envisioned. There will always be a portion of negative responses which reflect Zoning and Building performing their proper functions.
880
Performance Measures Appendix
A-50
SERVICE
2.88 2.97 2.14 2.34 1.871.89 1.89 1.92 1.69 2.001.45 1.55 1.91 1.61 1.55 0 2
4 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021
Months
Time from Application Completion
to Staff Approval
Complex Administrative Use Permits (AUPs)
Medium Complexity AUPs
Simple AUPs
33% 37%
54% 57% 63%62%
36%
57% 59% 50%
66%
82%
63% 66% 67%
0%
100%
CY 2017 CY 2018 CY 2019 CY 2020 CY 2021
Percent Application Completion to Staff Approval
in Under Two Months
Complex Administrative Use Permits (AUPs)
Medium Complexity AUPs
Simple AUPs
Factors Contributing to Current Performance
• New Accessory Dwelling Unit (ADU) regulations and guidelines allow more types of projects without discretionary review.
• There are improved application forms and how-to guides for common development project types. • There were revisions to the Zoning Ordinance, including amendments to streamline processes for small businesses.
Factors Restricting Performance Improvement
• Review and approval of digital permitting documents by staff through remote access exclusively can be cumbersome and subject to technical limitations. • There has been a surge in accessory dwelling unit (ADU) and other home improvement/expansion applications.
• Multiple and ongoing revisions to ADU ordinance have confused some clients as they prepare submittals.
• Substantial staff turnover has challenged the Land Use Division at all levels, as new planners are hired and trained and others take on new roles.
881
Performance Measures Appendix
A-51
SERVICE
20 21
22 23
24 25
26 CY 2018 CY 2019 CY 2020 CY 2021
Days
Average City Plan Check Review Time
Factors Contributing to Current Performance
• Increased efficiency through improved electronic plan check tools and hardware; Plan Check meets due dates over 90% of time.
• Elimination of previous plan check queue backlog has improved employee morale and reduced inquiries regarding plan check status.
• Establishment of Plan Check performance dashboard and daily plan check queue review to identify and correct processing issues.
• Better education of applicants through how-to guides and submittal checklists result in higher quality submittals which require fewer plan check corrections Factors Restricting Performance Improvement
• Metric has limited utility for public, as it aggregates all project types from bathroom remodels to 16-story hotels.
• Metric has limited utility for staff, as different types of reviews are not segregated by reviewing agency.
• Large parts of the time a client experiences—preparation before initial submittal, and the speed and completeness of responses to City comments—are not within City control and thus are not reflected in data.
882
Performance Measures Appendix
A-52
SERVICE
Factors Contributing to Current Performance
• The Berkeley Police Department (BPD) prides itself on the service provided to the community through law enforcement activities as well as routine community interaction and engagement.
Officers are occasionally stopped on the street and thanked for their service, or receive positive feedback at the end of a call for service. Sometimes the level of service or engagement efforts of the officers prompt people to independently contact BPD to share their praise. These commendations are shared with the Police Accountability Board and within the Department where they become part of the involved officer’s personnel file. • The Berkeley Police Department now provides information to community members on how they can provide a commendation or file a complaint about the service they received from BPD. This was a new practice that began in 2021. This may have contributed to an increase in commendations.
Factors Restricting Performance Improvement
• While commendations often speak directly to high levels of trust and happiness with police service, it is challenging to use the number of commendations to speak to overall levels of community trust and satisfaction.
• Many positive interactions and good performances may not be recognized by a member of the public taking the time to write about the experience.
75 82 86
111
137
0 20
40 60
80 100
120
140
CY 17 CY 18 CY 19 CY 20 CY 21
Commendations
883
Performance Measures Appendix
A-53
SERVICE
Factors Contributing to Current Performance
Phone abandon rates have increased during COVID due to reduced staffing in the office.
Incoming calls average 1,500 calls a week. The other methods for contacting 311 for services are processed by staff working at home. The Community contacts using Web, email or voicemail have increased by 29% and majority of requests are responded to on the same day.
Factors Restricting Performance Improvement
During COVID19 - 311 has implemented rotating schedules. Staff working in the office receive approximately 1500 calls a week with a staff of 5 resulting in an increased abandon rate. Staff working at home, are managing side work office duties. (311 On-line Service Center Service requests, Customer Service email, 311 voice mail, SeeClickFix mobile cases and responding to Direct Line answering service calls for service). If team members are out of the office, 311 is unable to maintain same day responses.
• Due to recent changes in technology infrastructure, pandemic response priorities and an 18% vacancy rate for IT classifications, the IT Department is working to improve performance and add the capability to provide more accurate performance measurements. IT anticipates resolving these issues in FY 2023.
0%
20%
40%
60%
80%
100%
FY 19 FY 20 FY 21
First Call Resolution
311 Help Desk
79,577 incoming calls to 311 in FY
0%
5%
10%
15%
20%
25%
FY18 FY19 FY20 FY21
Abandonment Rate
311 Help Desk
Note: In FY21, due to a midyear phone system upgrade, only have partial data for Help Desk.
884
Performance Measures Appendix
A-54
Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
Time to
hire
Operating with reduced staff due to
employee turnover and competing
priorities such as memorandum of
understanding (MOU) negotiations,
the time to hire did not decrease as
targeted.
By employing a variety of strategies and
technologies, staff was able to limit the overall
impacts, even successfully (during certain
months) succeeding in meeting time-to-hire
targets. Moving forward, the Department is
addressing the turnover rate and identifying
additional strategies and helpful technologies to
continue to improve time-to-hire.
WORKFORCE
Factors Contributing to Current Performance
• The Examinations Division operated with reduced staff due to employee turnover, but incorporated strategies and operational changes that involved using recruitment software and web conferencing platforms to improve hiring functions such as automated screening, on line interviewing, web-based exams, and notification functions.
Factors Restricting Performance Improvement
Despite a Citywide COVID-19-related hiring freeze for positions not critical for continuity of essential functions, Examinations received a higher than anticipated number of hiring freeze exceptions from Departments. There are elements of hiring outside the control of the Human Resources Department that may result in delays such as requisition approval, candidate selection, Live Scan, pre-employment medical screening, and offer acceptance. 0 100
200
300
400
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Time to Hire
CY 2020 Days from Requisition Approval to Hired Status
CY 2021 Days from Requisition Approval to Hired Status
Average
231 hires, CY 2021
885
Performance Measures Appendix
A-55
WORKFORCE
Factors Contributing to Current Performance
EEO Trainings: Due to COVID-19 shelter-in-place and remote work the use of web conferencing for training to timely comply with SB 1343 which requires in-person Harassment Prevention training for all employees.
Citywide Trainings: The City is anchored by 3 core values; One City Team, Continuous Learning and Customer Service. Trainings are coordinated in alignment with these values. In 2020, in response to the COVID-19 crisis, a suite of uniquely designed trainings were calibrated to meet city need.
• Requests for Tuition Reimbursement: The City has three Tuition Reimbursement programs.
Local 1 was added in FY 2022. The SEIU Tuition Reimbursement program is limited to certain staff classifications only. The Standard Citywide Tuition Reimbursement program is open to all City staff.
Factors Restricting Performance Improvement
EEO Trainings: Competing interests and workload demands impacted participants’ ability to complete mandatory harassment training. Some of these demands included the impact of the pandemic and the greater use of telework.
Citywide Trainings: Workforce location, scheduling, and technology challenges have traditionally constrained capacity and equitable consumption of Citywide training. Plans are in place to build structures to increase access for all valuable city staff. Some demands included the impact of the epidemic and the greater use of telework.
Request for Tuition Reimbursement: Because of limited utility, applications for this program have historically been low, as staff are compelled to utilize an “in person” modality (not reflective of current conditions) and classes are limited to specific and delineated subjects only. All tuition reimbursement applications in 2021 have been lower than expected due to the impact of COVID.
94 84
10 10
0 50
100
CY 20 CY 21
Citywide Trainings Available
Number of Citywide trainings
Number of EEO-facilitated harassment trainings
8 4
0510
CY 20 CY 21
Requests for Tuition Reimbursement
567 599
783
1,360
559 677
-
250
500
750
1,000
1,250
1,500
CY 19 CY 20 CY 21
Employee Attendance
Citywide trainings
EEO-facilitated harassment trainings
886
Performance Measures Appendix
A-56
Addressing Measures Not Meeting Target
Measure Outcome and Analysis Next Steps
Reduction
in LRCC
Grievances
The five open grievances are analogous incorrect
pay issues from one bargaining unit.
This issue is being resolved
going forward.
WORKFORCE
Factors Contributing to Current Performance
The reduced number of appointments is on target. The reduction is due to the impact of the pandemic shifting focus at the department level to emergency operations from performance management.
Factors Restricting Performance Improvement
• The reasons supervisors/managers schedule appointments are outside the control of the Employee Relations division. Supervisor/managers may schedule multiple appointments related to the same or similar personnel matters, and may need to schedule more than one appointment on the same matter in order to receive advice to ensure due process. • The reasons why grievances are filed are often outside the control of the Employee relations division. Employee Relations may not be notified of a grievance until later in the grievance handling process. Additionally, organizational priorities shifted to customer focused emergency operations and early detection of MOU compliance.
244 211 161
0 50
100
150
200
250
300
350
CY 19 CY 20 CY 21
Labor Relations Coordinating Committee (LRCC) Appointments Appointments (for counseling, advice)
5 8
3 3
0 5
10 CY 20 CY 21
LRCC Grievances
Grievances opened Grievances closed
45 161
44 161
0 50
100
150
200
CY 20 CY 21
LRCC Cases
Cases opened Cases closed
887
385
APPENDIX 2 – FUNDING REQUESTS
888
FY 23 24 Proposed Budget Enhancements to Baseline Budget Funding Requests by Tier
Requestor Budget
Referral
Expenditure Type/Description Requesting
Amount
FY 23
Request
FY 24
Request
FY 23
Proposed
Funding
FY 24
Proposed
Funding
Reason for Request Proposed
Funding
Tier
Tier 1
City Manager's Office Reimagining Project Lead-Assist. to City Manager
628,930 314,465 314,465 314,465 314,465 Oversee implementation/ Project Based NTE 3 yrs 1 City Manager's Office Diversity Equity and Inclusion (DEI) Officer 628,930 314,465 314,465 314,465 314,465 Creation of DEI Unit Citywide 1 City Manager's Office Administrative Assistant 330,148 165,074 165,074 165,074 165,074 DEI Unit Support 1 Police 8 Public Safety Dispatcher II 2,764,864 1,382,432 1,382,432 1,382,432 1,382,432 Address overtime and support expanding dispatch responsibilities 1 Police 1 Public Safety Dispatch Supervisor 375,972 187,986 187,986 187,986 187,986 Ensure adequate supervisory positions for expanding dispatch 1 Police 10 Community Service Officers 2,803,500 1,401,750 1,401,750 841,050 841,050 Additional capabilities to address public safety goals with appropriate response level, increase capacity for community engagement. Propose funding for 6 additional positions for a limited 3 year term 1 Police 1 Community Service Officer Supervisor 314,168 157,084 157,084 157,084 157,084 Ensure required supervision for CSO positions. Limited 3 year term 1 Public Works Associate Planner (Vision Zero) 347,812 173,906 173,906 173,906 173,906 Reimagining Public Safety: Assoc. Planner position in Transportation in support of Vision Zero safety projects.
Limited 3 year term
1 City Manager's Office x Grant Assistance 200,000 100,000 100,000 100,000 100,000 Grant writer for Reimagining Public Safety and other programs. Project Based NTE 3 years 1 Police Staffing Assessment 70,000 70,000 - 70,000 - Staffing assessment to meet public safety expectations and employee health and wellness 1 Police Additional Training Funding 200,000 100,000 100,000 100,000 100,000 Ongoing training in support of Fair and Impartial Policing concepts, officer safety, professional development 1 Police Additional Wellness Funding 100,000 50,000 50,000 50,000 50,000 To support Critical Incident Stress Contract, Peer Support Team, and emerging wellness needs 1 Police Dispatch Center Analysis 200,000 200,000 200,000 - Analyze the current dispatch center including recommendations for a prioritized emergency fire & medical dispatch system
1 Public Works BerkDOT Development 300,000 300,000 300,000 - BerkDOT implementation, including funding research in support of new "white paper" and potential state legislation 1 Mayor Arreguín, Councilmembers
Harrison, Bartlett, Hahn
x Expand Downtown Streets Teams 100,000 50,000 50,000 50,000 50,000 Expand Team as placement for low-level violations (e.g., vehicular camping/parking and sidewalk ordinance infractions). Recommend Measure P funds
1 Mayor Arreguín, Councilmembers
Harrison, Bartlett, Hahn
x Language Equity 15,000 15,000 15,000 Publish Victim Resources in Plain Language and Multiple Languages 1 Mayor Arreguín,Councilmembers
Harrison, Bartlett, Hahn. Budget
referral Councilmember Harrison
x Behavioral Health, Crisis Response, and
Crisis-related Services Needs and Capacity
Assessments
100,000 100,000 100,000 - Conduct a service needs assessment based on 911 and non-911 calls for service, dispatch, and response and capacity assessment of crisis response and crisis-related services. Possible use of Measure P. 1 Mayor Arreguín,Councilmembers
Harrison, Bartlett, Hahn. Budget
referral Councilmember Harrison
x Youth Peers Mental Health Response 700,000 350,000 350,000 350,000 350,000 Funds a HHCS coordinator position to deliver mental health wellness support and services to the Cityrun Berkeley High School Mental Health Center
1 Subtotal Tier 1 Funding 10,179,324 5,432,162 4,747,162 4,871,462 4,186,462 Tier 2
Police 5 Parking Enforcement Officers 1,283,950 641,975 641,975 Address parking/traffic matters that do not necessitating a sworn response. Expanded Preferential Parking Program 2 Police 1 Parking Enforcement Supervisor 300,700 150,350 150,350 Required supervision for added Parking Enforcement Officers 2 Public Works Transportation fines/ fees analysis 150,000 150,000 - Review Berkeley Municipal Code for proposed changes to increase equity and racial justice in the City’s existing transportation fines and fees
2 Mayor Arreguín, Councilmembers
Harrison, Bartlett, Hahn
x Hearing Officer-Alternatives to
Sanctions/Fines
300,000 150,000 150,000 Expand existing hearing officer to provide alternative referrals to community service and social services for parking and other infractions
2 Mayor Arreguín, Councilmembers
Harrison, Bartlett, Hahn
x Department of Community Safety 250,000 250,000 - Support an organizational design process to create an umbrella agency or Department of Community Safety 2 Mayor Arreguín, Councilmembers
Harrison, Bartlett, Hahn
x Violence Prevention and Youth Services 420,000 210,000 210,000 Opportunities for community reinvestment per Council’s omnibus proposal. Possible use of Measure P. 2 Mayor Arreguín, Councilmembers
Harrison, Bartlett, Hahn
x Respite from Gender Violence 500,000 500,000 - Provide services and housing leads for victims of Gender Violence. Possible use of Measure P 2 Subtotal Tier 2 Funding 3,204,650 2,052,325 1,152,325 - - 13,383,974 7,484,487 5,899,487 4,871,462 4,186,462 Reimaging Public Safety
Subtotal Reimagining Public Safety
Funding Requests Appendix
A‐1
889
FY 23 24 Proposed Budget Enhancements to Baseline Budget Funding Requests by Tier
Requestor Budget
Referral
Expenditure Type/Description Requesting
Amount
FY 23
Request
FY 24
Request
FY 23
Proposed
Funding
FY 24
Proposed
Funding
Reason for Request Proposed
Funding
Tier
Staffing Augmentation
Tier 1
City Attorney Deputy City Attorney II/III 600,000 300,000 300,000 300,000 300,000 Additional support with Risk Management and Litigation portfolio. 1 City Attorney Assistant to the City Attorney 500,000 250,000 250,000 250,000 250,000 Additional support (New Classification- estimated cost) 1 City Auditor Accounting Office Specialist III MC 72,536 36,268 36,268 - - Increase position from 0.50 FTE to 0.75 FTE due to workload. Included in baseline budget. 1 City Auditor Accounting Office Specialist III MC 40,000 20,000 20,000 - - Overtime in Payroll Audit for ESS and Executime implementation and Payroll Audit. Included in baseline budget. 1 City Auditor Overtime 10,000 5,000 5,000 - - Overtime in Payroll Audit for staff to help with personnel action audits Included in baseline budget. 1 City Auditor Auditor II 370,394 185,197 185,197 - - 2 year temporary position to work on ERMA implementation. Included in baseline budget. 1 City Manager's Office Communications Specialist 208,776 - 208,776 - 208,776 FY23 covered by state COVID-19 grant (HHCS) 1 City Manager's Office Administrative Assistant 330,148 165,074 165,074 165,074 165,074 Continuation of position. Funding ends 6/30 1 Finance Revenue Development Specialist I 100,000 50,000 50,000 50,000 50,000 Convert 2 Field Rep positions to RDS I for operational enhancement 1 Finance Accounting Office Specialist Supervisor 344,340 172,170 172,170 172,170 172,170 Enhance business license processing 1 Finance Accounting Office Specialist II 493,900 246,950 246,950 246,950 246,950 Enhance business license processing 1 Fire Accounting Office Specialist III 288,068 144,034 144,034 144,034 144,034 To assist with payroll processing 1 Health, Housing & Community Services Community Development Project Coordinator
368,996 184,498 184,498 184,498 184,498 Support BART sites housing development/Project based NTE 3 yrs 1 HHCS Community Services Specialist II 414,877 207,439 207,439 - - Manage encampment grant, Project RoomKey/Project based NTE 3 yrs. Included in Measure P baseline budget 1 Office of Director of Police
Accountability (ODPA)
Associate Management Analyst 383,512 191,756 191,756 191,756 191,756 Meet work demands of department 1
Planning 25% Principal Planner – Projects 120,702 60,351 60,351 60,351 60,351 Support Commission, Design Review Committee,CEQA review, interdepartmental coordination on City initiatives 1 Planning 75% Associate Planner -- (75% GF) 277,266 138,633 138,633 138,633 138,633 Long Range & Policy work-- including General Plan Update: Safety Element, Land Use Element, & Env. Justice Element
1 Planning AOS Supervisor 152,290 76,145 76,145 76,145 76,145 Allows Planning Manager more time for planning policy and development; oversee the daily duties of the administrative support team.
1 Police 2 Assistant Management Analysts 661,188 330,594 330,594 330,594 330,594 To address City Auditor report, workload, increased transparency. 1 Police 4 School Crossing Guards 154,312 77,156 77,156 77,156 77,156 Previously approved by City Council for FY22 (AAO#1 adustment 12/21). On-going funding to support 4 part-time School Crossing Guards as developed with Public Works and Community Support for student safety. 1 Parks, Recreation & Waterfront Assistant Recreation Coordinator 60,110 30,055 30,055 30,055 30,055 To cover 25% of a new Assistant Rec Coord for special fee classes; the remaining 75% FTE is funded by vacancy and existing baseline budget.
1 Public Works x Transportation: Mobility Coordinator 380,000 190,000 190,000 190,000 190,000 Implement 2030 Electric Mobility Roadmap. Council referral 3/20/21. Energy Commission referral 4/26/22 1 Public Works x Streets & Utilities: Community Services
Specialist I
166,608 83,304 83,304 83,304 83,304 To support public engagement and volunteer efforts with Public Works Projects and Services. Cost share (General Fund @50%) with other funds
1 Councilmember Taplin x Ceasefire Program Staffing 2,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Implementation of Ceasefire program 1 Subtotal Tier 1 Funding 8,498,023 4,144,624 4,353,400 3,690,720 3,899,496 Tier 2
City Manager's Office Communications Specialist 417,552 208,776 208,776 Backup PIO coverage for emergencies 2 City Manager's Office Code Enforcement Officer I 312,200 156,100 156,100 Reduce response time to complaints 2 Office of Economic Development Sr Economic Development Project Coordinator
549,328 274,664 274,664 Work on special projects and Council identified priorities 2 ODPA Police Accountability Investigator 385,360 192,680 192,680 Meet work demands of department 2 Parks, Recreation & Waterfront CIP staffing: 40% Associate Civil Engineer 169,308 84,654 84,654 To offset existing staff costs to implement CIP funded projects 2 Parks, Recreation & Waterfront CIP staffing: 60% Associate Civil Engineer 288,493 144,247 144,247 To offset staff costs to implement proposed CIP Waterfront projects 2 Public Works Engineering: AOSIII 26,778 13,389 13,389 Support Real Property, lease tracking and agreements, payment collection 2 Public Works Transportation: OSII - Parking Citation
Review
220,000 110,000 110,000 Support citation review program, address backlog 2 Public Works CIP Manager 150,686 75,343 75,343 Coordinate CIP efforts for Transportation/Engineering. Contingent on passage of revenue measure. 2 Councilmember Harrison x Community Development Project
Coordinator
209,726 104,863 104,863 To assist HHCS with Workforce Standards and Enforcement 2 Councilmember Taplin x West Berkeley Park Ambassadors 600,000 300,000 300,000 Funding for Park Ambassadors:2-3 part time positions for one year at San Pablo Park, Strawberry Creek Park and Aquatic Park seven days a week
2 3,329,431 1,664,716 1,664,716 - - Subtotal Tier 2 Funding Funding Requests Appendix
A‐2
890
FY 23 24 Proposed Budget Enhancements to Baseline Budget Funding Requests by Tier
Requestor Budget
Referral
Expenditure Type/Description Requesting
Amount
FY 23
Request
FY 24
Request
FY 23
Proposed
Funding
FY 24
Proposed
Funding
Reason for Request Proposed
Funding
Tier
Tier 3
Planning 50% GIS Specialist 147,087 73,544 73,544 Assistant Planner/Geographic Information Systems Analyst. 2 year term 3 Public Works Applications Programmer Analyst I 52,078 26,039 26,039 Streets & Utilities: Implement NexGen and Assetworks 3 Public Works Transportation Manager 278,392 139,196 139,196 Restoring Transportation Division Manager classification after Reclass of previous Transportation Manager to Deputy Director
3 Councilmember Droste, Parks and
Waterfront & Public Works
Commission
x Adopt-A-Spot Program 1,000,000 500,000 500,000 Volunteer coordinator & entry level position coordinator- Recommend partial funding for 1 position in Tier 1 3 Councilmembers Bartlett, Robinson,
Harrison, and Taplin x Guidelines/Procedures for Council Staffing Expenditures
2,453,240 1,226,620 1,226,620 Review guidleines for Council office staffing levels 3 3,930,797 1,965,399 1,965,399 - - 15,758,252 7,774,738 7,983,514 3,690,720 3,899,496 Non-Personnel Operating Budget
Tier 1
City Attorney Implementaion of Case Management
Software
55,340 55,340 - 55,340 - Modernize office and create efficiencies 1 City Attorney Annual Maintenance of Software 26,600 - 26,600 - 26,600 Modernize office and create efficiencies 1 City Attorney Office Upgrades 50,000 50,000 - 50,000 - Modernize office 1 Councilmembers Droste, Mayor
Arreguín, Coucilmembers Wengraf
and Harrison
x
Charter Officer Performance Review 120,000 60,000 60,000 60,000 60,000 Consultant to faciliate annual performance evaluation of Attorney City Attorney Training and professional development 79,600 39,800 39,800 39,800 39,800 Professional development and training 1 City Manager's Office Training and professional development 160,000 80,000 80,000 80,000 80,000 Professional development and training 1 Finance Training and professional development 100,000 50,000 50,000 50,000 50,000 Professional development and training 1 City Manager's Office Onnline dog licensing sfotware 14,000 14,000 14,000 - Continues funding for this Strategic Plan priority activity 1 City Manager's Office Meeting Space Configuration 180,000 180,000 - 180,000 - Furniture for outdoor meetings and A/V equipment for hybrid meetings 1 Office of Economic Development Pacific Steel Redevelopment Assistance 150,000 150,000 - 150,000 - Technical Assistance/Impact Analysis - catalytic development site 1 Planning Pacific Steel CEQA Rezoning Efforts 100,000 100,000 - 100,000 - Rezoning analysis and CEQA work related to properties in and around corner of Eastshore Hwy and Gilman Street (RVV #1)
1 Office of Economic Development #DiscoveredinBerkeley Campaign 50,000 50,000 - 25,000 - Extend continued support for Berkeley’s businesses post pandemic 1 Fire Paramedic Tax Fund Short Fall 2,614,331 2,614,331 2,614,331 - To address FY 22 deficit resuting from COVID-19 related overtime. Fund will operate in a deficit unlesss General Fund support, reduction in services, or increased revenue. May be elible for federal FEMA reimbursement. 2 Human Resources Citywide Safety Programs 50,000 25,000 25,000 25,000 25,000 Departmental safety programs, protocols, and procedures 1 Human Resources Revision of Personnel Rules 40,000 20,000 20,000 20,000 20,000 Update rules to comply w/ current operations and applicable laws 1 Information Technology Move to 1947 770,000 770,000 - - Facilitate increased office space for IT. Recommend funding through IT Cost Allocation and built into future rates.
1 Office of Director of Police Accountability Professional Services - Policies 100,000 50,000 50,000 50,000 50,000 Outside assistance for policy review and development 1 Office of Director of Police Accountability Professional Services - Strategic Plan 50,000 50,000 - 50,000 - Consultant to lead strategic planning process 1 Office of Director of Police Accountability Charter Officer Performance Review 120,000 60,000 60,000 60,000 60,000 Consultant to conduct annual performance evaluation of Director 1 Planning San Pablo Specific Plan Area/ San Pablo
Avenue Specific Plan
150,000 150,000 - 150,000 - Speific plan, zoning, General Plan amendments and CEQA document for the San Pablo Avenue Area. Offsetting grant.
1 Planning Ashby & North Berkeley BART Stations Area
Planning (/BART Stations Area Plan)
300,000 300,000 - 300,000 - Implementation of Transit-Oriented Development at the Ashby and North Berkeley BART Station areas 1 Councilmembers Robinson,
Harrison Droste and Mayor Arreguín
Downtown Berkeley BART Station
Modernization Design
250,000 250,000 - 250,000 Funding for preliminary design engineering work for the Downtown Berkeley BART Station Modernization project 1 Planning, Councilmember Droste x Land Use Safety & Environmental Justice Update
300,000 300,000 - 300,000 - Element updates required to meet State regulations; in addition, Env. Justice Element is required to be adopted by close of 2024, per SB1000.
1 Planning Objective Development Standards / ZORP
Phase II Revisions
350,000 350,000 - 350,000 - Objective Standards to streamline/standardize development review and refinements to zoning code 1 Planning Economic Feasibility Analysis 150,000 150,000 - 150,000 - Consultant services for economic analysis of Southside zoning, Affordable Housing mitigation fee, local density bonus, in lieu fee
1 Planning Municipal Building Energy Policy 30,000 30,000 - 30,000 - Develop options for an updated Municipal Building Energy/Green Building Policy. Offsetting grant. 1 Parks, Recreation & Waterfront DEI and scholarships at resident camps 150,720 75,360 75,360 75,360 75,360 New DEI programs and scholarships as approved by Council on 1/18/2022. $10k estimated to come from donations. 1 Subtotal Tier 3 Funding
Sub-Total Personnel Requests
Funding Requests Appendix
A‐3
891
FY 23 24 Proposed Budget Enhancements to Baseline Budget Funding Requests by Tier
Requestor Budget
Referral
Expenditure Type/Description Requesting
Amount
FY 23
Request
FY 24
Request
FY 23
Proposed
Funding
FY 24
Proposed
Funding
Reason for Request Proposed
Funding
Tier
Parks, Recreation & Waterfront Minor maintenance 250,000 250,000 100,000 100,000 Camps, pools and expenditures in parks and the Waterfront. 1 Public Works Engineering: Deep Class Engineer Study 25,000 25,000 25,000 HR study on evaluation/promotion system for engineering positions 1 Planning Transportation Impact Fee Analysis 100,000 100,000 - 100,000 - Transportation Impact Fee analysis 2 Councilmembers Hahn, Bartlett, and
Harrison
x Grant writing services 300,000 300,000 - - - Recommended funding of $100k each year in Tier 1 Reimagining Councilmember Wengraf, Mayor
Arreguín, and Councilmember Hahn
x Annual Holocaust Remembrance Day 12,000 6,000 6,000 6,000 6,000 Funds the Holocaust Remembrance Day Program 1 Councilmember Taplin, Mayor
Arreguín, Councilmembers Harrison
and Hahn
x Developing Social Housing in the City 300,000 300,000 - 300,000 - Review and develop social housing policy. Possible use of Measure P 1 Mayor Arreguín, Councilmembers
Hahn, Harrison, and Bartlett
x Continuing Anti-Displacement Programs 1,800,000 900,000 900,000 - - Funding included within baseline budget using Measue U1 1 Mayor Arreguín x Small Business Rental and Legal Support 1,000,000 1,000,000 - 1,000,000 - ARPA funds to launch a needs-based grant program for Berkeley-based small businesses (under 50 employees) to provide supplemental assistance to cover outstanding commercial rent debt and fund legal assistance 1 Mayor Arreguín, Councilmember
Hahn
x Supply Bank School Supply Distribution 60,000 30,000 30,000 30,000 30,000 Supply Bank to provide essential school supplies to Berkeley families 1 Mayor Arreguín, Councilmembers
Hahn, Harrison, and Bartlett
x Housing Retention Fund 1,000,000 1,000,000 - 1,000,000 - ARPA funds to the Eviction Defense Center to supplement the Housing Retention Program, including COVID-19 emergency grants
1 Councilmembers Kesarwani and
Bartlett
x Capacity Building for Merchant Associations
in the Gilman and Lorin Districts
20,000 20,000 - 20,000 - To provide one-time capacity building totaling $20,000 ($10,000 each) for the Gilman and Lorin District merchant associations to support economic development in their respective commercial areas 1 Councilmembers Hahn, Wengraf,
and Harrison
x Solano Stroll 20,000 20,000 - 20,000 Solano Avenue Stroll to support the September 2024 Stroll event 1 Councilmembers Kesarwani and
Taplin
x Expand Scope of the Downtown Streets to
Gilman District
100,000 50,000 50,000
50,000 50,000 Expand the scope of services for the Downtown Streets Team to address the need for enhanced services around commercial and industrial areas in the Gilman District twice weekly 1 Councilmembers Harrison, Mayor
Arreguín, Bartlett, and Wengraf
x Establishing City Process for Siting and
Developing Public Electric Vehicle DC Fast
Charging Hubs
1,200,000 600,000 600,000 600,000 600,000 Fund Berkeley's annual maximum Service Fee of $100,000/year per fast-charging hub for three hubs. 1 12,697,591 10,604,831 2,092,760 8,459,831 1,292,760 Tier 2
Public Works Updating Engineering Standard
Specifications
100,000 100,000 - $100k add'l split across other funds to update specifications 2 Councilmember Harrison x Fund Mayoral Budgetary Analyses 200,000 100,000 100,000 Certified public accountant to provide supplemental budgetary assistance 2 Civic Arts Commission x Festival Grants Budget Allocation 83,370 41,685 41,685 - - To increase allocation to $200,000 annually 2 Councilmember Taplin x West Berkeley Transportation Plan 300,000 300,000 - - - Consultant to conduct a study and draft a comprehensive plan for transportation in West Berkeley through 205 02 Councilmembers Bartlett, Hahn,
Taplin, and Mayor Arreguín
x Local Reparations Plan 350,000 350,000 - - Consultant to facilitate community process to design and implement a local reparations plan 2 Subtotal-Tier 2 Funding 1,033,370 891,685 141,685 - - Tier 3
City Manager's Office Web producers to help transition launch 70,000 70,000 - - - Website launch assistance/website contingency 3 Planning Equitable Engagement for Climate Action 20,000 20,000 - - Facility rental, food, and facilitation services for Climate Action events 3 Planning Racial Equity in Planning services and
staffing
75,000 75,000 - - - Workplan for services centered on racial equity; recruit/retain diverse staff 3 Landmarks Preservation Commission x City-wide Historic Context Statement 275,000 275,000 - - - Berkeley’s first City-wide Historic Context Statement. 3 Subtotal-Tier 3 Funding 440,000 440,000 - - - 14,170,961 11,936,516 2,234,445 8,459,831 1,292,760 Subtotal-Tier 1 Funding
Sub-Total Operating Requests
Funding Requests Appendix
A‐4
892
FY 23 24 Proposed Budget Enhancements to Baseline Budget Funding Requests by Tier
Requestor Budget
Referral
Expenditure Type/Description Requesting
Amount
FY 23
Request
FY 24
Request
FY 23
Proposed
Funding
FY 24
Proposed
Funding
Reason for Request Proposed
Funding
Tier
Capital
Tier 1
City Clerk Paperless Contracts Workflow System 400,000 400,000 - 400,000 - Automate/streamline contract process; increase sustainability. Cost revised based on IT estimate. 1 City's Manager's Office EBCE Solar+Storage at Fire Stations 100,000 100,000 100,000 Electrify and storage at Live Oak & Fire station #3. Sites selected based on minimal cost to roof and electrical panel.
Citywide facility total estimated cost of $1.2M
1 Finance Property Tax Assessment System
Replacement
450,000 450,000 - 450,000 Replacing aging 30 year-old system; approved for FY2022, but deferred. Cost revised based on IT estimate. 1 Finance Business License Tax System Replacement 500,000 500,000 500,000 Difficult to Maintain; Improve business license processing. Cost may be higher based on IT estimate. 1 Police Jail Control Panel Replacement 500,000 500,000 500,000 Fire & Life Safety Concern – control panel exceeded its useful life and due to obsolescence, repair parts are difficult to locate. To be funded using FY 22 Excess Property Transfer Tax. 1 Parks, Recreation & Waterfront Waterfront Pilings (docks, office and restrooms)
1,500,000 1,500,000 850,000 650,000 Design completed. Funding to augment T1 and Marina Fund to complete timber piling replacements. 1 Parks, Recreation & Waterfront CIP Baseline Contribution 4,500,000 2,250,000 2,250,000 1,500,000 2,000,000 Currently at $400,000. With inflation, annual cost of $2.247M Public Works Traffic Calming Program 100,000 50,000 50,000 - 70,000 Increase funding for residents/Council requests and referrals for traffic calming devices. Recommend funding for specific budget referrals as well.
1 Public Works Telegraph/Channing Garage Elevator
Repairs
3,600,000 3,600,000 - 3,600,000 - Public safety issue to replace elevator 1 Councilmembers Robinson and
Hahn
Telegraph-Channing Garage Elevator
Repairs
3,600,000 3,600,000 - - Funding recommended per item above Public Works ADA Transition Plan Update Implementation 2,000,000 1,000,000 1,000,000 250,000 500,000 Annual amount for implementation of ADA projects 1 Public Works Facility Maintenance 2,000,000 1,000,000 1,000,000 250,000 500,000 Deferred maintenance. CIP Fund contribution flat since 2009 (ongoing) 1 Public Works Street Paving additional CIP Fund 16,000,000 8,000,000 8,000,000 5,000,000 9,100,000 Paving Maintenance Investment - needed to maintain PCI (ongoing) 1 Councilmembers Kesarwani, Taplin,
and Wengraf, and Droste
Street Maintenance Funding 18,000,000 9,000,000 9,000,000 - - See recommended funding above 1 Councilmember Harrison Street, Sidewalk, Micromobility and Transit Infrastructure
16,000,000 8,000,000 8,000,000 - - See recommended funding above 1 Councilmember Taplin x Reckless Driving and Sideshow Deterrence Improvements
-
Refer to the FY2023 budget process the funding of sideshow deterrence infrastructure, traffic circles or botts' dots; $50K per traffic circle and costs related to Bott's dot materials 1 Councilmembers Kesarwani, Taplin,
Wengraf, and Droste
x South Sailing Basin Dredging 350,000 350,000 - 350,000 - South Sailing Basin Dredging planning & evaluation. 1 Councilmembers Kesarwani, Taplin,
Robinson, and Wengraf
x Implement State Law AB 43 for Reduced
Speed Limits on High-Injury Commercial
Corridors
50,000 50,000 - 50,000 - Funding for new speed limit signage. 1 Councilmembers Hahn, Wengraf,
and Robinson
x Hopkins Corridor Bike, Pedestrian, and
Placemaking Improvements
300,000 150,000 150,000 150,000 150,000 Funding for bike, pedestrian, and streetscape improvements to be implemented in coordination with protected bike lanes, pedestrian safety features, and re-paving of the Hopkins Corridor 1 Councilmembers Hahn, Mayor
Arreguín, Taplin, and Harrison
x Accessibility Renovations-Luna Dance
Institute
150,000 150,000 - 150,000 - Renovation of 931 Ashby Avenue for a fully accessible, permanent dance education center for children, families, artists, teachers and the public
1 Councilmembers Bartlett and Mayor
Arreguín
x Convert 62nd St. between King St, and
Adeline St. into a cul de sac/ marked bicycle
lane
300,000 300,000 - 300,000 Convert 62nd St. between King St. & Adeline St. into a cul de sac. Marked bicycle lane connecting Adeline St. to the bicycle boulevard on King St.
1 Councilmembers Harrison and
Bartlett
x Dwight Way Traffic Calming 50,000 50,000 - 50,000 - Traffic calming intersection improvements on Dwight Way between Grant Street and California Street 1 Councilmembers Bartlett x Semi-diverter traffic bollards at the intersection of Newbury Street and Ashby
Avenue
50,000 50,000 - 50,000 - Funding to install semi-diverter traffic bollards at the east corner of the intersection at Newbury Street and Ashby Avenue
1 32,900,000 20,450,000 12,450,000 14,050,000 13,420,000 Subtotal-Tier 1 Funding Funding Requests Appendix
A‐5
893
FY 23 24 Proposed Budget Enhancements to Baseline Budget Funding Requests by Tier
Requestor Budget
Referral
Expenditure Type/Description Requesting
Amount
FY 23
Request
FY 24
Request
FY 23
Proposed
Funding
FY 24
Proposed
Funding
Reason for Request Proposed
Funding
Tier
Tier 2
Parks, Recreation & Waterfront J&K Parking Lot 1,150,000 1,150,000 - To complete J&K parking lot, which needs full reconstruction. Will support revenue generation for berthers, charters and restaurants
2 Public Works Fire Truck Lease Payment 1,300,000 1,300,000 - FY 21 deferral of payment Equipment Replacement Fund for fire truck 2 Public Works CIP Project Management & Planning
Software
200,000 200,000 - - One time funding, 5 Year cost of $1.2M; cost share PW/PRW/T1 or bond 2 Public Works Parking Meters Replacement 7,000,000 3,000,000 4,000,000 - - Replacement of outdated meters, assist in generating new revenue 2 Public Works Equipment Replacement Funding 4,000,000 2,000,000 2,000,000 - - $18M needed to fund at appropriate level. Ongoing request for 10 years 2 Public Works EV Charging Stations @ Corp Yard 1,000,000 1,000,000 - - - Corp Yard Site (pending EBCE managed regional project). Alternative is $125,000/yr to EBCE 2 Councilmembers Taplin, Harrison,
and Wengraf
x Municipal Electric Vehicle Charging
Infrastructure
1,150,000 1,150,000 - - - Fnding of electric charging infrastructure for the City's fleet of electric vehicles. An estimated $1,150,000 for the implementation of electric charging infrastructure at the Corporation Yard and other City properties. 2 Councilmembers Taplin, Droste,
and Wengraf
x Automated license plate readers (ALPR) - - ALPRs- amount to be determined based on number of vehicles 2 Councilmember Taplin x Pedestrian Crossing Improvements at Ashby and Acton
100,000 100,000 - - - Rectangular Rapid Flashing Beacons at Ashby Avenue and Acton Street; an estimated $50,000 and an estimated $50,000 for 10 years of maintenance
2 Councilmember Taplin x Russell Street Improvements 360,000 360,000 - - - Bicycle and pedestrian improvements along Russell Street 2 Councilmember Harrison x Transportation Network Company User Tax to Support Priority Mobility Infrastructure,
1,800,000 1,800,000 - - - Transportation Network Company User Tax General Fund revenue for the construction and maintenance of Tier 1 protected bicycle lanes and crossings, Priority pedestrian street crossings and quick-build public transit projects under the Street Repair Program.
2 Councilmember Taplin x West Berkeley Residential Preferential Parking Program
2,092,018 1,046,009 1,046,009 - - Staffing (6 Officers and 1 Supervisor;) 6 new parking enforcement vehicles with automated license plate recognition systems and signage installation
2 20,152,018 13,106,009 7,046,009 - - Tier 3
Parks, Recreation & Waterfront Bike Park on University Ave. 600,000 600,000 - Install a bike park adjacent to University Ave at the Waterfront; establishes the City's only bike park and creates a destination to attract more people to the Waterfront. $100,000 currently available for design; conceptual process finished by FY22. Request for design development and construction. 3 Councilmembers Robinson and
Harrison
x Purchase of Electric Bicycles for City Use 25,000 25,000 - - - Funding to purchase electric bicycles, electric cargo bicycles, safety, storage, or security equipment for use by employees on City business
3 Subotal Tier 3 625,000 625,000 - - - 53,677,018 34,181,009 19,496,009 14,050,000 13,420,000 Total Requests 96,990,205 61,376,750 35,613,455 31,072,013 22,798,718 Tier 1 Total Proposed Funding 31,072,013 22,798,718 Subtotal Capital Requests
Subtotal-Tier 2 Funding
Funding Requests Appendix
A‐6
894
Attachment 2
AGENCY NAME
LEAD
DEPT
FY 2023
ALLOCATION
FY 2023
ADVANCE
Alameda County Homeless Action Center HHCS 197,759 49,440 Alameda County Network of Mental Health Clients HHCS 117,737 29,434 Bananas HHCS 388,637 97,159 Bay Area Community Land Trust HHCS 205,200 51,300 Bay Area Community Resources HHCS 94,964 23,741 Bay Area Community Services HHCS 6,486,667 1,621,667 Bay Area Hispano Institute for Advancement HHCS 103,590 25,898 Bay Area Outreach and Recreation Program HHCS 43,592 10,898 Berkeley Community Gardening Collaborative HHCS 11,895 2,974 Berkeley Community Media IT 230,710 57,678 Berkeley Convention & Visitors Bureau OED 416,667 104,167 Berkeley Food & Housing Project HHCS 618,950 154,738 Berkeley Free Clinic HHCS 15,858 3,965 Berkeley High School Bridge Program HHCS 79,000 19,750 Berkeley Place HHCS 17,183 4,296 Berkeley Project PRW 32,000 8,000 Berkeley Youth Alternatives HHCS 60,000 15,000 Biotech Partners HHCS 91,750 22,938 Bonita House HHCS 39,804 9,951 Bread Project HHCS 57,850 14,463 Building Opportunities for Self Sufficiency HHCS 1,428,560 357,140 Center for Independent Living HHCS 159,660 39,915 Dorothy Day HHCS 1,976,501 494,125 Downtown Berkeley Association HHCS 40,000 10,000 Downtown Streets Team PW 225,000 56,250 East Bay Community Law Center HHCS 308,644 77,161 Easy Does It HHCS 1,569,911 392,478 Eden Council for Hope and Opportunity HHCS 35,000 8,750 Ephesians Children's Center HHCS 85,347 21,337 Eviction Defense Center HHCS 250,000 62,500 Family Violence Law Center HHCS 61,842 15,461 Habitat for Humanity East Bay/Silicon Valley HHCS 250,000 62,500 Healthy Black Families, Inc. HHCS 87,616 21,904 Inter-City Services HHCS 101,351 25,338 J-Sei HHCS 9,110 2,278 Larkin Street HHCS 407,643 101,910.75 Lifelong Medical Care HHCS 1,093,010 273,253 McGee Avenue Baptist Church HHCS 17,844 4,461 Multicultural Institute HHCS 101,739 25,435 Options Recovery Services HHCS 50,000 n/a Nia House Learning Center HHCS 39,999 10,000 Pacific Center for Human Growth HHCS 23,245 5,811 Rebuilding Together HHCS 122,850 30,713
RISE Program HHCS 216,039 54,010 Rising Sun HHCS 67,828 16,957 SEEDS Community Resolution Center HHCS 22,553 5,638 Stiles Hall HHCS 90,000 22,500 The Suitcase Clinic HHCS 9,828 2,457 Through the Looking Glass HHCS 52,206 13,052 Toolworks Inc. Supportive Housing HHCS 47,665 11,916 UC Berkeley HHCS 130,000 32,500 Village of Love HHCS 250,000 62,500 Women's Daytime Drop-In Center HHCS 267,071 66,768
895
Attachment 2
AGENCY NAME
LEAD
DEPT
FY 2023
ALLOCATION
FY 2023
ADVANCE
YMCA of the East Bay HHCS 90,875 22,719 Youth Spirit Artworks HHCS 78,000 19,500 18,998,750 4,737,188
HHCS = Health, Housing & Community Services
IT = Information Technology
OED = Office of Economic Development
PRW = Parks Recreation & Waterfront
896
Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://www.CityofBerkeley.info/Manager
ACTION CALENDAR
June 28, 2022
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Sharon Friedrichsen, Budget Manager
Subject: FY 2023 Annual Appropriations Ordinance
RECOMMENDATION
Adopt first reading of an Ordinance adopting the FY 2023 Annual Appropriations Ordinance (AAO) in the amount of $737,068,276 (gross appropriations) and $620,623,866 (net appropriations).
FISCAL IMPACTS OF RECOMMENDATION
The FY 2023 Annual Appropriations Ordinance authorizes gross appropriations of $737,068,276 and net appropriations of $620,623,866. The General Fund totals $291,550,278 and the balance of $445,517,998 represents the other non-discretionary funds.
BACKGROUND
The City Charter states that at the time of budget adoption that the Council passes an annual appropriations ordinance, which shall be based upon the budget submitted by the City Manager and as amended by the City Council. The AAO establishes the expenditure limits by fund for FY 2023. Exhibit A provides a Fund-by-Fund summary of these limits for FY 2023.
The FY 2023 Annual Appropriations Ordinance is a Strategic Plan Priority, advancing our goal to provide an efficient and financially-healthy City government.
ENVIRONMENTAL SUSTAINABILITY
There are no identifiable environmental effects or opportunities associated with the act of adopting the budget/appropriations ordinance/amendments. Actions included in the budget will be developed and implemented in a manner that is consistent with the City’s environmental sustainability goals and requirements.
RATIONALE FOR RECOMMENDATION
The recommendation allows the City to set the adopted funding limits for FY 2023.
CONTACT PERSON
Sharon Friedrichsen, Budget Manager, City Manager’s Office, 981-7000
897
Amendment: FY 2023 Annual Appropriations Ordinance CONSENT CALENDAR June 28, 2022
Rama Murty, Senior Management Analyst, City Manager’s Office, 981-7000 Attachments:
1: Ordinance
Exhibit A: FY 2023 Annual Appropriation Ordinance Summary of Appropriations by Fund
898
ORDINANCE NO. #,###-N.S.
ADOPTING THE ANNUAL APPROPRIATIONS ORDINANCE BASED ON THE ADOPTED BUDGET FOR FISCAL YEAR 2023 AS PROPOSED BY THE CITY
MANAGER AND PASSED BY THE CITY COUNCIL
BE IT ORDAINED by the Council of the City of Berkeley as follows:
Section 1. That the Annual Appropriations Ordinance based on the budget for FY 2022 submitted by the City Manager and passed by the City Council be adopted as follows and as summarized in Exhibit A:
A. General Fund (Funds 001-099) 291,550,278
B. Special Funds (Funds 100-199) 118,264,934
C. Grant Funds (Funds 300-399) 52,928,326
D. Capital Projects Funds (Funds 500-550) 52,786,999
E. Debt Service Fund (Funds 551-599) 9,804,404
F. Enterprise Funds (Funds 600-669) 149,639,118
G. Internal Service Funds (Funds 146, 670-699) 48,405,008 H. Successor Agency (Funds 760-769) 57,120
I. Agency Funds (Funds 771-799) 7,198,897
J. Other Funds (Funds 800-899) 6,433,192
K. Total
Total General Fund 291,550,278
Add: Total Other Than General Fund 445,517,998
Gross Revenue Appropriated 737,068,276
Less: Dual Appropriations -67,321,315
Less: Revolving/Internal Service Funds -49,123,095
Net Revenue Appropriated 620,623,866
Section 2. The City Manager is hereby permitted, without further authority from the City Council, to make the following transfers by giving written notice to the Director of Finance:
a. From the General Fund to the General Fund – Stability Reserve Fund; Catastrophic Reserve Fund; PERS Savings Fund; Health State Aid Realignment; Fair Election Fund; Capital Improvement Fund; Phone System Replacement;
899
Equipment Replacement Fund; Public Liability Fund; Catastrophic Loss Fund; IT Cost Allocation Fund: Police Employee Retiree Health Assistance Plan; Safety Members Pension Fund; and Sick Leave Entitlement Fund.
b. To the General Fund from the General Fund – Stability Reserves Fund; Catastrophic Reserves Fund; Community Development Block Grant Fund; Street Lighting Assessment District Fund; Zero Waste Fund; Marina Operations and Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Parking Meter Fund; Unified Program (CUPA); and Health State Aid Realignment Fund.
c. To the First Source Fund from the Parks Tax Fund; Capital Improvement Fund; and the Marina Fund.
d. From Measure FF – Public Safety Fund to Paramedic Tax Fund e. From the American Rescue Plan Fund to the General Fund; Marina Fund; Off- Street Parking Fund; and Parking Meter Fund.
f. From Capital Improvement Fund to PERS Savings Fund; Berkeley Repertory Theater Fund; and 2010 COP (Animal Shelter) Fund.
g. To the Public Art Fund from the Parks Tax Fund; Capital Improvement Fund; and the Marina Fund.
h. To CFD#1 District Fire Protection Bond (Measure Q) from Special Tax Bonds CFD#1 ML-ROOS.
i. To Private Sewer Lateral Fund from Sanitary Sewer Operation Fund. j. To Catastrophic Loss Fund from Permit Service Center Fund. k. To Catastrophic Loss Fund from Unified Program (CUPA) Fund. l. To the Building Purchases and Management Fund from General Fund; Health (General) Fund; Rental Housing Safety Program Fund; Measure B Local Streets & Road Fund; Employee Training Fund; Zero Waste Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Building Maintenance Fund; Central Services Fund; and Health State Aide Realignment Trust Fund.
m. To Equipment Replacement Fund from General Fund; Mental Health Services Act Fund; Health (Short/Doyle) Fund; Vector Control Fund; Paramedic Tax Fund; Playground Camp Fund; State Transportation Tax Fund; Rental Housing Safety Program Fund; Parks Tax Fund; Street Light Assessment District Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation
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Fund; Clean Storm Water Fund; Permit Service Center Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Central Services Fund.
n. To the Equipment Maintenance Fund from General Fund; Health (General) Fund; Mental Health Services Act Fund; Health (Short/Doyle) Fund; Vector Control Fund; Paramedic Tax Fund; Library - Discretionary Fund; Playground Camp Fund; State Transportation Tax Fund; Rental Housing Safety Program Fund; Rent Stabilization Board Fund; Parks Ta Fund; Street Light Assessment District Fund; FEMA Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Central Services Fund.
o. To the Building Maintenance Fund from the General Fund; Health (General) Fund; Health (Short/Doyle) Fund; Measure B Local Street & Road Fund; Parks Tax Fund; Street Light Assessment District Fund; Zero Waste Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Off Street Parking Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Mental Health State Aid Realignment Fund.
p. To the Central Services Fund from the General Fund; First Source Fund; Health (Short/Doyle) Fund; Library-Discretionary Fund; Playground Camp Fund; Rent Stabilization Board Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation; Building Purchases & Management Fund; Building Maintenance Fund; Central Services Fund; and Mental Health State Aid Realignment Fund.
q. To Information Technology Cost Allocation Plan Fund from General Fund; Target Case Management/Linkages Fund; Health (Short/Doyle); Library Fund; Playground Camp Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Rent Stabilization Board Fund; Parks Tax Fund; Street Light Assessment District Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Equipment Maintenance Fund; Building Maintenance Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; and Mental Health State Aid Realignment Fund.
r. To the Workers' Compensation Self-Insurance Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax
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Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority; and Bio-Terrorism Grant Fund.
s. To the Sick Leave and Vacation Leave Accrual Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina
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Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority; and Bio-Terrorism Grant Fund.
t. To the Payroll Deduction Trust Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority; and Bio-Terrorism Grant Fund.
Section 3. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of Council Chambers, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.
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Attachment for Annual Appropriations Ordinance - Fiscal Year 2023
REVOLVING FUNDS/INTERNAL SERVICE FUNDS
Appropriations are identified with revolving and internal service funds. Such funds derive revenue by virtue of payment from other fund sources as benefits are received by such funds, and the total is reflected in the "Less Revolving Funds and Internal Service Funds" in item I. The funds are:
Revolving/Internal Service Funds
Employee Training Fund 834,947
Equipment Replacement Fund 6,676,989
Equipment Maintenance Fund 9,573,258
Building Maintenance Fund 4,798,308
Central Services Fund 391,386
Workers' Compensation Fund 6,440,039
Public Liability Fund 3,797,298
16,610,868
Subtotal Revolving/Internal Service Funds 49,123,095$
Information Technology Fund
DUAL APPROPRIATIONS - WORKING BUDGET
Dual appropriations are identified with revenues generated by one fund and transferred to another fund. Both funds are credited with the applicable revenue, and the total is reflected in the "Less Dual Appropriations" in item I. The dual appropriations are:
Transfers to the General Fund
Indirect Cost Reimbursement
CDBG Fund 176,194
Street Light Assessment District Fund 155,738
Zero Waste Fund 2,774,222
Marina Enterprise Fund 434,028
Sanitary Sewer Fund 1,319,702
Clean Storm Water Fund 265,658
Permit Service Center Fund 2,014,434
Unified Program (CUPA) Fund 90,415
Subtotal Transfers to General Fund: 7,230,391$
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Transfer to Safety Members Pension Fund from General Fund 551,804 5,120,350
Transfer to Stability Reserve Fund from General Fund 1,375,000 Transfer to Catastrophic Reserve Fund from General Fund 1,125,000 Transfer to PERS Savings Fund from General Fund 2,000,000 Transfer to Health State Aid Realignment from General Fund 1,953,018 Transfer to Fair Election Fund from General Fund 505,002 Transfer to Capital Improvement Fund (CIP) from General Fund 22,982,650 449,408
Transfer to Equipment Replacement Fund from General Fund 1,081,699 Transfer to Public Liability Fund from General Fund 3,895,888 Transfer to Catastrophic Loss Fund from General Fund 3,048,587 Transfer to IT Cost Allocation Fund from General Fund 145,640 400,136
Transfer to Sick Leave Entitlement Fund from General Fund 201,501 Transfer to General Fund from Health State Aid Realignment Fund 2,643,280 757,925
1,150,000
Transfer to Off-Street Parking Fund from American Rescue Plan Fund 200,000 2,700,000
Transfer from CIP Fund to PERS Savings Fund 151,632
499,802
Transfer from CIP Fund to 2010 COP (Animal Shelter) Fund 402,613 90,501
50,555
5,082
Transfer to General Fund from Parking Meter Fund 1,742,288 2,048,940
Transfer to First Source Fund from Parks Tax Fund 14,093 Transfer to First Source Fund from Capital Improvement Fund 26,943 Transfer to First Source Fund from Marina Fund 1,875
Transfer to Public Art Fund from Parks Tax Fund 21,140
Transfer to Public Art Fund from Capital Improvement Fund 40,414 Transfer to Public Art Fund from Marina Fund 2,813
Subtotal Transfers to Other Funds: 57,385,579
Sub-Total Dual Appropriations 64,615,970$
Grand Total Dual Appropriations 113,739,065$
Transfer to Phone System Replacement - VOIP from General Fund Transfer to Police Employee Retiree Health Assistance Plan from General Fund Transfer from Special Tax Bonds CFD#1 ML-ROOS to CFD#1 District Fire Protect Bond (Measure Q)
Transfer to Catastrophic Loss Fund from Permit Service Center Fund Transfer to Catastrophic Loss Fund from Unified Program (CUPA) Fund Transfer to Private Sewer Lateral Fund from Sewer Fund
Transfer to Berkeley Repertory Theater Debt Service Fund from CIP Fund Transfer to Measure U1 Fund from General Fund
Transfer to Marina Fund from American Rescue Plan Fund
Transfer to Parking Meter Fund from American Rescue Plan Fund Transfer to Paramedic Tax Fund from Measure FF - Public Safety Fund
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EXHIBIT A
ERMA
Fund # Fund
FY 2023
Adopted
11 General Fund Discretionary 284,765,736
16 Measure U1 - Housing 6,784,542
101 Library - Tax 24,433,766
103 Library - Grants 66,330
104 Library - Friends & Gift 150,000
105 Library - Foundation 200,000
106 Asset Forefeiture 201,000
107 Special Tax Measure E 1,590,735
108 First Source Fund 48,500
110 Sec 108 Loan Gty Asst. 587,612
111 Fund Raising Activities 55,115
113 Gilman Sports Field 280,063
115 Animal Shelter 52,480
116 Paramedic Tax 5,218,195
119 Domestic Violence Prev - Vit Stat 26,102
120 Affordable Housing Mitigation 2,805,896
121 Affordable Child Care 13,275
122 Inclusionary Housing Program 587,147
123 Condo Conversion 121,339
125 Playground Camp 3,596,951
126 State-Prop 172 Pub.Safety 434,773
127 State Transportation Tax 6,562,677
128 CDBG 4,882,923
129 Rental Housing Safety Program 1,902,671
130 Measure B - Local St & Road 769,249
131 Measure B - Bike and Pedestrian 129,471
132 Measure B - Paratransit 36,797
133 Measure F Alameda County VRF St & Rd 1,353,067
134 Measure BB - Local St & Road 12,737,784
135 Meaure BB - Bike & Pedestrian 758,193
136 Measure BB - Paratransit 934,031
138 Parks Tax 15,966,197
140 Measure GG - Fire Prep Tax 5,276,233
142 Streetlight Assesment District 3,312,730
143 Berkeley Bus Ec Dev 156,387
146 Employee Training 834,947
147 UC Settlement 4,433,664
148 Private Percent - Art Fund 116,860
149 Private Party Sidewalks 100,000
150 Public Art Fund 104,775
152 Vital & Health Statistics Trust Fund 74,903
156 Hlth State Aid Realign Trust 3,961,045
157 Tobacco Cont.Trust 379,256
158 Mental Health State Aid Realign 4,061,702
SUMMARY OF APPROPRIATIONS BY FUND
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EXHIBIT A
ERMA
Fund # Fund
FY 2023
Adopted
SUMMARY OF APPROPRIATIONS BY FUND
159 Citizens Option Public Safety Trust 262,093
161 Alameda Cty Abandoned Vehicle Abatement 133,993
164 Measure FF 8,160,000
165 Fair Elections 510,868
302 Operating Grants - State 64,437
305 Capital Grants - Federal 1,364,500
306 Capital Grants - State 8,723,370
307 Capital Grants - Local 837,000
309 OTS DUI Enforcement Education Prg. 137,060
310 HUD/Home 806,549
311 ESGP 271,587
312 Health (General) 3,370,574
313 Target Case Management Linkages 936,341
314 Alameda County Tay Tip 35,812
315 Mental Health Service Act 12,441,437
316 Health (Short/Doyle) 5,080,644
317 EPSDT Expansion Proposal 500,241
318 Alcoholic Bev Ctr OTS/UC 55,639
319 Youth Lunch 68,451
320 Sr. Nutrition Title III 119,884
321 CFP Title X 39,527
324 BUSD Grant 392,232
325 Vector Control 276,025
326 Alameda County Grants 788,215
327 Senior Supportive Social Services 83,453
328 Family Care Support Program 86,662
329 CA Integrated Waste Management 5,244
331 Housing Mitigation 1,126,763
333 CALHOME 363,100
334 Community Action 293,817
336 One-Time Grant: No Cap Exp 5,132,743
338 Bay Area Air Quality Management 117,000
339 MTC 393,029
340 FEMA 954,621
341 Alameda Cty Waste Mgt. 285,000
343 State Dept Conserv/Recylg 28,000
344 CALTRANS Grant 131,908
347 Shelter+Care HUD 6,348,109
348 Shelter+Care County 886,153
349 JAG Grant 55,650
350 Bioterrorism Grant 327,550
354 ARPA - Local Fiscal Recovery Fund 4,137,493
501 Capital Improvement Fund 20,574,474
502 Phone System Replacement 449,408
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EXHIBIT A
ERMA
Fund # Fund
FY 2023
Adopted
SUMMARY OF APPROPRIATIONS BY FUND
503 FUND$ Replacement 3,221,742
504 PEG-Public, Education & Government 100,000
511 Measure T1 - Infra & Facil. 17,858,315
512 Measure O 6,445,567
552 09 Measure FF Debt Service 1,343,638
553 2015 GORBS 2,051,966
554 2012 Lease Revenue Bonds BJPFA 502,238
555 2015 GORBS - 2002 G.O. Refunding Bonds 379,561
556 2015 GORBS (2007, Series A) 142,865
557 2015 GORBS (2008 Measure I) 481,286
558 2010 COP (Animal Shelter) 406,991
559 Measure M GO Street & Water Imps 740,738
560 Infrastucture & Facilities Measure T1 1,731,181
561 Measure O - Housing Bonds 2,023,940
601 Zero Waste 56,177,214
608 Marina Operation 8,204,057
611 Sewer 35,226,528
612 Private Sewer Lateral FD 172,628
616 Clean Storm Water 6,123,690
621 Permit Service Center 21,676,546
622 Unified Program (CUPA) 877,919
627 Off Street Parking 6,790,627
631 Parking Meter 10,557,178
636 Building Purchases and Management 3,832,731
671 Equipment Replacement 6,676,989
672 Equipment Maintenance 9,573,258
673 Building Maintenance Fund 4,798,308
674 Central Services 391,386
676 Workers Compensation 6,440,039
678 Public Liability 3,797,298
680 Information Technology 16,610,868
762 Successor Agency - Savo DSF 57,120
776 Thousand Oaks Underground 98,448
777 Measure H - School Tax 500,000
778 Measure Q - CFD#1 Dis. Fire Protect Bond 1,362,705
779 Spl Tax Bds. CFD#1 ML-ROOS 2,824,802
781 Berkeley Tourism BID 181,125
782 Elmwood Business Improvement District 30,000
783 Solano Ave BID 25,000
784 Telegraph Avenue Bus. Imp. District 583,315
785 North Shattuck BID 210,363
786 Downtown Berkeley Prop & Improv. District 1,383,139 801 Rent Board 6,433,192
GROSS EXPENDITURE: 737,068,276
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EXHIBIT A
ERMA
Fund # Fund
FY 2023
Adopted
SUMMARY OF APPROPRIATIONS BY FUND
Dual Appropriations (67,321,315)
Revolving & Internal Service Funds (49,123,095)
NET EXPENDITURE: 620,623,866
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909
910
Department of Finance
ACTION CALENDAR
June 28, 2022
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Henry Oyekanmi, Director, Finance Department Subject: Borrowing of Funds and the Sale and Issuance of FY 2022-23 Tax and Revenue Anticipation Notes
RECOMMENDATION
Adopt a Resolution approving the borrowing of $28,000,000 and the sale and issuance of Fiscal Year 2022-23 Tax and Revenue Anticipation Notes.
FISCAL IMPACTS OF RECOMMENDATION
Each year, the City (as do many local agencies) issues Tax and Revenue Anticipation Notes (“Notes”) to help with its working capital needs during the first six months of the fiscal year. The reason for this issuance is that the City does not receive property tax revenues until December, thereby creating a negative cash flow in the General Fund. This annual issuance also enables the General Fund to recoup some of the interest earnings lost in advancing money to grant funds pending grant reimbursements, since the interest rate earned on any note proceeds invested will exceed the cost of borrowing.
The City’s General Fund cash flow has become more volatile due to (1) The City now receives property tax in December and April; and (2) also receives the payment of Vehicle In Lieu fees in December and May with the property taxes, instead of monthly.
The money will be deposited in the General Fund and used by the City for any purpose for which it is authorized to expend General Fund monies. The interest earned on these monies will be allocated to the General Fund. The repayment of principal and interest on the Notes are to be made from General Fund taxes and other revenues.
CURRENT SITUATION AND ITS EFFECTS
The General Fund advances grant funds in the amounts needed to pay for their expenditures, until these funds receive reimbursement from the granting agencies. During the first six months of the fiscal year until property tax receipts are received, General Fund operating expenditures exceed revenues. Under the interpretation of Sections 53850- 53858 of the California Government Code and federal tax law by the City’s Bond Counsel,
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Borrowing of Funds and the Sale and Issuance of ACTION CALENDAR FY 2022-23 Tax and Revenue Anticipation Notes June 28, 2022 Jones Hall, the City may borrow an amount not to exceed the maximum anticipated cash flow deficit plus five percent of working capital reserve if all the note proceeds, including investment earnings, are deemed spent within 6 months of the date of the issue of the Notes. This method of financing involves the sale of the Notes and is a traditional means used by local governments to ensure a consistent cash flow during the fiscal year. This year the City will borrow Note funds of $28,000,000 to help with working capital needs in the first six months of the fiscal year and, when expenditures exceed incoming revenues.
In the last six months of the fiscal year, the Notes will be repaid from General Fund taxes and other revenues, mainly property taxes and business license taxes.
For Fiscal Year 2022-23, the City will require a Note sale of an amount not to exceed twenty-eight million dollars ($28,000,000). The interest rate on the Notes will depend on competitive rates at the time of the sale.
DISCLOSURE
The attached Preliminary Official Statement has been reviewed and approved for transmittal to the City Council by the City’s financing team. The distribution of the Preliminary Official Statement by the City is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require the Preliminary Official Statement to include all facts that would be material to an investor in the Notes. Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell the Notes. If the City Council concludes that the Preliminary Official Statement includes all facts that would be material to an investor in the Notes, it must adopt a resolution that authorizes staff to execute a certificate to the effect that the Preliminary Official Statement has been “deemed final.” The Securities and Exchange Commission (the “SEC”), the agency with regulatory authority over the City’s compliance with the federal securities laws, has issued guidance as to the duties of the City Council with respect to its approval of the Preliminary Official Statement. In its “Report of Investigation in the Matter of County of Orange, California as it Relates to the Conduct of the Members of the Board of Supervisors” (Release No. 36761 / January 24, 1996) (the “Release”), the SEC indicated that, if a member of the City Council has knowledge of any facts or circumstances that an investor would want to know about prior to investing in the Notes, whether relating to their repayment, tax-exempt status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such facts are adequately disclosed in the Preliminary Official Statement. In the Release, the SEC indicated that the steps that a member of the City Council could take include becoming familiar with the Preliminary Official Statement and questioning staff and consultants about the disclosure of such facts.
The information about the sources of payment for the Notes, including the City’s financial and operating data, is set forth in the sections of the Preliminary Official Statement entitled
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Borrowing of Funds and the Sale and Issuance of ACTION CALENDAR FY 2022-23 Tax and Revenue Anticipation Notes June 28, 2022 “SECURITY FOR AND SOURCES OF PAYMENT FOR THE NOTES” and “APPENDIX A - CERTAIN INFORMATION CONCERNING THE CITY OF BERKELEY.” The information about the tax-exempt status of the Notes is set forth in the section of the Preliminary Official Statement entitled “TAX MATTERS.”
RATIONALE FOR RECOMMENDATION
The General Fund advances grant funds the amounts needed to pay for their expenditures, until these funds receive reimbursement from the granting agencies. During the first six months of the fiscal year, General Fund operating expenditures exceed revenues. As a result, the General Fund’s working capital is depleted during this period, and borrowing these funds will alleviate that situation.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental effects or opportunities associated with the subject of this report.
CONTACT PERSON
Henry Oyekanmi, Director of Finance, Finance Department, 981-7326 Attachments:
1. Resolution
2. Draft Form of Official Notice of Sale
3. Form of Bond Counsel Opinion
4. Form of the Preliminary Official Statement
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1 *** PLEASE DO NOT PLACE THIS ITEM ON THE CONSENT CALENDAR PURSUANT TO GOVERNMENT CODE SECTION 53635.7***
RESOLUTION NO. _________-N.S.
APPROVING THE BORROWING OF FUNDS FOR FISCAL YEAR 2022-23 AND THE ISSUANCE AND SALE OF 2022-23 TAX AND REVENUE ANTICIPATION NOTES WHEREAS, pursuant to Article 7.6 (commencing with section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code (the “Law”), this City Council (the “Council”) has found and determined that moneys are needed for the requirements of the City, a municipal corporation and charter city duly organized and existing under the laws of the State of California, to satisfy obligations payable from the General Fund of the City (the “General Fund”), and that it is necessary that said sum be borrowed for such purpose at this time by the issuance of temporary notes therefor in anticipation of the receipt of taxes, income, revenue, cash receipts and other moneys to be received by the City for the General Fund during or allocable to the fiscal year of the City beginning July 1, 2022 and ending June 30, 2023 (“Fiscal Year 2022-23”); and
NOW THEREFORE, BE IT RESOLVED that the Council of the City of Berkeley approves the following:
Section 1. Limitation on Maximum Amount. The principal amount of notes issued pursuant hereto, when added to the interest payable thereon, shall not exceed eighty-five percent (85%) of the estimated amount of the uncollected taxes, income, revenue, cash receipts and other moneys of the City for the General Fund attributable to Fiscal Year 2022-23, and available for the payment of said notes and the interest thereon (as hereinafter provided).
Section 2. Authorization and Terms of Notes. Solely for the purpose of anticipating taxes, income, revenue, cash receipts and other moneys to be received by the City for the General Fund during or allocable to Fiscal Year 2022-23, and not pursuant to any common plan of financing, the City hereby determines to and shall borrow the principal amount of not-to- exceed Twenty-Eight Million Dollars ($28,000,000) by the issuance of temporary notes under the Law, designated “City of Berkeley, California 2022-23 Tax and Revenue Anticipation Notes” (the “Notes”). The Notes shall be dated the date of initial delivery, shall mature (without option of prior redemption) no later than thirteen months after their date of issuance, and shall bear interest, payable at maturity and computed on a 30-day month/360-day year basis, at a rate not in excess of five percent (5%) per annum. Both the principal of and interest on the Notes shall be payable in lawful money of the United States of America, as described below.
Section 3. Form of Notes; Book Entry Only System. The Notes shall be issued in fully registered form, without coupons, and shall be substantially in the form and substance set forth in Exhibit A attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words and figures. The Notes shall be numbered from 1 consecutively upward in order of issuance, shall be in the denomination of $5,000 each or any integral multiple thereof.
“CUSIP” identification numbers shall be imprinted on the Notes, but such numbers shall not constitute a part of the contract evidenced by the Notes and any error or omission with
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2 respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the Notes. In addition, failure on the part of the City to use such CUSIP numbers in any notice to the registered owners of the Notes shall not constitute an event of default or any violation of the City’s contract with such owners and shall not impair the effectiveness of any such notice.
Except as provided below, the owner of all of the Notes shall be The Depository Trust Company, New York, New York (“DTC”), and the Notes shall be registered in the name of Cede & Co., as nominee for DTC. The Notes shall be initially executed and delivered in the form of a single fully registered Note in the full aggregate principal amount of the Notes. The City may treat DTC (or its nominee) as the sole and exclusive owner of the Notes registered in its name for all purposes of this Resolution, and the City shall not be affected by any notice to the contrary. The City shall not have any responsibility or obligation to any participant of DTC (a “Participant”), any person claiming a beneficial ownership interest in the Notes under or through DTC or a Participant (a “Beneficial Owner”), or any other person not shown on the register of the City as being an owner, with respect to the accuracy of any records maintained by DTC or any Participant or the payment by DTC or any Participant by DTC or any Participant of any amount in respect of the principal or interest with respect to the Notes. The City shall pay all principal and interest with respect to the Notes only to DTC or its nominee, and all such payments shall be valid and effective to fully satisfy and discharge the City’s obligations with respect to the principal and interest with respect to the Notes to the extent of the sum or sums so paid. Except under the conditions noted below, no person other than DTC shall receive a Note. Upon delivery by DTC to the City of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the term “Cede & Co.” in this Resolution shall refer to such new nominee of DTC.
If the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Notes and delivers a written certificate to DTC to that effect, DTC shall notify the Participants of the availability through DTC of Notes. In such event, the City shall issue, transfer and exchange Notes as requested by DTC and any other owners in appropriate amounts. DTC may determine to discontinue providing its services with respect to the Notes at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. Under such circumstances (if there is no successor securities depository), the City shall be obligated to deliver Notes to the Beneficial Owners as described in this Resolution. Whenever DTC requests the City to do so, the City will cooperate with DTC in taking appropriate action after reasonable notice to (a) make available one or more separate Notes evidencing the Notes to any DTC Participant having Notes credited to its DTC account or (b) arrange for another securities depository to maintain custody of Certificates evidencing the Notes.
Notwithstanding any other provision of this Resolution to the contrary, so long as any Note is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal and interest with respect to such Note and all notices with respect to such Note shall be made and given, respectively, to DTC as provided as in the representation letter delivered on the date of issuance of the Notes.
Section 4. Use of Proceeds. The proceeds of the sale of the Notes shall be deposited in a segregated account in the General Fund and used and expended by the City for any purpose for which it is authorized to expend funds from the General Fund.
Section 5. Security. The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which
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3 are received by the City for the General Fund for Fiscal Year 2022-23. As security for the payment of the principal of and interest on the Notes the City hereby pledges the first “unrestricted moneys” (as hereinafter defined) to be received by the City as follows: (a) an amount equal to fifty percent (50%) of the principal amount of the Notes in the month of January, 2023; (b) an amount equal to fifty percent (50%) of the principal amount of the Notes in the month of May, 2023; and (c) an amount sufficient to pay interest as due on the Notes at their maturity, in the month of June, 2023 (such pledged amounts being hereinafter called the “Pledged Revenues”). The principal of the Notes and the interest thereon shall constitute a first lien and charge thereon and shall be payable from the Pledged Revenues. To the extent not so paid from the Pledged Revenues, the Notes shall be paid from any other moneys of the City lawfully available therefor. In the event that there are insufficient “unrestricted moneys” received by the City to permit the deposit into the Special Account (as hereinafter defined) of the full amount of the Pledged Revenues to be deposited in any month by the last business day of such month, then the amount of any deficiency shall be satisfied and made up from any other moneys of the City lawfully available for the repayment of the Notes and interest thereon. The term “unrestricted moneys” shall mean taxes, income, revenue, cash receipts, and other moneys received by the City for the General Fund for Fiscal Year 2022-23 and which are generally available for the payment of current expenses and other obligations of the City.
Section 6. Special Account. There is hereby created, within the General Fund, a special account to be designated the “2022-23 Tax and Revenue Anticipation Note Special Account” (the “Special Account”) and applied as directed in this Resolution. Any money placed in the Special Account shall be for the benefit of the owners of the Notes and, until the Notes and all interest thereon are paid or until provision has been made for the payment of the Notes at maturity with interest to maturity, the moneys in the Special Account shall be applied solely for the purposes for which the Special Account is created.
During the months of January, May, and June, 2023, the City shall deposit all Pledged Revenues in the Special Account. On the maturity date of the Notes, the City shall transfer to DTC the moneys in the Special Account necessary to pay the principal of and interest on the Notes at maturity and to the extent said moneys are insufficient therefor an amount of moneys from the General Fund which will enable payment of the full principal of and interest on the Notes at maturity. DTC will thereupon make payments of principal of and interest on the Notes to the DTC Participants who will thereupon make payments to the Beneficial Owners of the Notes. Any moneys remaining in the Special Account after the Notes and the interest thereon have been paid, or provision for such payment has been made, shall be transferred to the General Fund.
Section 7. Deposit and Investment of Special Account. All moneys held by the City in the Special Account, if not invested, shall be held in time or demand deposits as public funds and shall be secured at all times by bonds or other obligations which are authorized by law as security for public deposits, of a market value at least equal to the amount required by law.
Moneys in the Special Account shall, to the greatest extent possible, be invested by the City directly, or through an investment agreement, in investments as permitted by the laws of the State of California as now in effect and as hereafter amended, and the proceeds of any such investments shall be deposited in the Special Account.
Section 8. Execution of Notes. The Mayor of the City, the City Manager, or the Director of Finance (each an “Authorized Officer”) is hereby authorized to execute the Notes by manual or facsimile signature, and the City Clerk of the City is hereby authorized to countersign the
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4 same by manual or facsimile signature (although at least one of such signatures shall be manual) and to affix the seal of the City thereto by facsimile impression thereof, and said officers are hereby authorized to cause the blank spaces thereof to be filled in as may be appropriate.
Section 9. Transfer of Notes. Any Note may, in accordance with its terms, but only if the City determines to no longer maintain the book entry only status of the Notes, DTC determines to discontinue providing such services and no successor securities depository is named or DTC requests the City to deliver Note certificates to particular DTC Participants, be transferred, upon the books required to be kept pursuant to the provisions of Section 11 hereof, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Note for cancellation at the office of the City Clerk, accompanied by delivery of a written instrument of transfer in a form approved by the City, duly executed.
Whenever any Note or Notes shall be surrendered for transfer, the City shall execute and the Paying Agent shall authenticate and deliver a new Note or Notes, for like aggregate principal amount.
Section 10. Exchange of Notes. Any Note may, in accordance with its terms, but only if the City determines to no longer maintain the book entry only status of the Notes, DTC determines to discontinue providing such services and no successor securities depository is named or DTC requests the City to deliver Note certificates to particular DTC Participants, be exchanged at the office of the City Clerk for a like aggregate principal amount of Notes of authorized denominations and of the same maturity.
Section 11. Note Register. The City shall keep or cause to be kept sufficient books for the registration and transfer of the Notes if the book entry only system is no longer in effect and, in such case, the City Clerk shall register or transfer or cause to be registered or transferred, on said books, Notes as herein before provided. While the book entry only system is in effect, such books need not be kept as the Notes will be represented by one Note registered in the name of Cede & Co., as nominee for DTC.
Section 12. Temporary Notes. The Notes may be initially issued in temporary form exchangeable for definitive Notes when ready for delivery. The temporary Notes may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the City, and may contain such reference to any of the provisions of this Resolution as may be appropriate. Every temporary Note shall be executed by the City upon the same conditions and in substantially the same manner as the definitive Notes. If the City issues temporary Notes it will execute and furnish definitive Notes without delay, and thereupon the temporary Notes may be surrendered, for cancellation, in exchange therefor at the office of the City Clerk and the City Clerk shall deliver in exchange for such temporary Notes an equal aggregate principal amount of definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall be entitled to the same benefits pursuant to this Resolution as definitive Notes executed and delivered hereunder.
Section 13. Notes Mutilated, Lost, Destroyed or Stolen. If any Note shall become mutilated the City, at the expense of the owner of said Note, shall execute and deliver a new Note of like maturity and principal amount in exchange and substitution for the Note so mutilated, but only upon surrender to the City Clerk of the Note so mutilated. Every mutilated Note so surrendered to the City Clerk shall be canceled and delivered to, or upon the order of, the City. If any Note shall be lost, destroyed or stolen, evidence of such loss, destruction or theft
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5 may be submitted to the City and, if such evidence be satisfactory to the City and indemnity satisfactory to it shall be given, the City, at the expense of the owner, shall execute and deliver a new Note of like maturity and principal amount in lieu of and in substitution for the Note so lost, destroyed or stolen. The City may require payment of a sum not exceeding the actual cost of preparing each new Note issued under this Section 13 and of the expenses which may be incurred by the City in the premises. Any Note issued under the provisions of this Section 13 in lieu of any Note alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the City whether or not the Note so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Resolution with all other Notes issued pursuant to this Resolution.
Section 14. Covenants and Warranties. It is hereby covenanted and warranted by the City that all representations and recitals contained in this Resolution are true and correct, and that the City and its appropriate officials have duly taken all proceedings necessary to be taken by them, and will take any additional proceedings necessary to be taken by them, for the prompt collection and enforcement of the taxes, income, revenue, cash receipts and other moneys pledged hereunder in accordance with law and for carrying out the provisions of this Resolution.
Section 15. Tax Covenants.
(a) No Arbitrage. The City shall not take, nor permit nor suffer to be taken any action with respect to the proceeds of the Notes which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Notes (the “Closing Date”) would have caused the Notes to be “arbitrage bonds” within the meaning of section 148 of the Internal Revenue Code of 1986 (the “Code”).
(b) Rebate Requirement. The City shall take any and all actions necessary to assure compliance with section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government. (c) Private Activity Note Limitation. The City shall assure that proceeds of the Notes are not so used as to cause the Notes to satisfy the private business tests of section 141(b) of the Code.
(d) Private Loan Financing Limitation . The City shall assure that proceeds of the Notes are not so used as to cause the Notes to satisfy the private loan financing test of section 141(c) of the Code.
(e) Federal Guarantee Prohibition. The City shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause any of the Notes to be “federally guaranteed” within the meaning of section 149(b) of the Code. (f) Maintenance of Tax-Exemption. The City shall take all actions necessary to assure the exclusion of interest on the Notes from the gross income of the owners of the Notes to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the Closing Date.
Section 16. Official Statement. The City Council hereby approves the Official Statement describing the Notes, in substantially the form on file with the City Clerk, together with any
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6 changes therein or additions thereto deemed advisable by an Authorized Officer. The City Council authorizes and directs an Authorized Officer on behalf of the City to deem “final” pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the “Rule”) the Official Statement prior to its distribution. The execution of the Official Statement, which shall include such changes and additions thereto deemed advisable by an Authorized Officer and such information permitted to be excluded from the Official Statement pursuant to the Rule, shall be conclusive evidence of the approval of the Official Statement by the City.
An Authorized Officer is authorized and directed to execute the Official Statement and a statement that the facts contained in the Official Statement, and any supplement or amendment thereto (which shall be deemed an original part thereof for the purpose of such statement) were, at the time of sale of the Notes, true and correct in all material respects and that the Official Statement did not, on the date of sale of the Notes, and does not, as of the date of delivery of the Notes, contain any untrue statement of a material fact with respect to the City or omit to state material facts with respect to the City required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. An Authorized Officer shall take such further actions prior to the signing of the Official Statement as are deemed necessary or appropriate to verify the accuracy thereof. The Official Statement is approved for distribution in the offering and sale of the Notes.
Section 17. Sale of Notes. An underwriter (the “Underwriter”) to be designated by an Authorized Officer will purchase the Notes. An Authorized Officer is hereby authorized to designate the Underwriter, in consultation with the City’s municipal advisor, NHA Advisors, LLC (the “Municipal Advisor”) in one of the following ways:
(a) Limited Negotiated. An Authorized Officer may direct the Municipal Advisor to contact a limited number of Underwriters and negotiate the sale of the Notes. An Authorized Officer is hereby authorized to cause Jones Hall, A Professional Law Corporation, as bond counsel to the City (“Bond Counsel”), to prepare and to execute and deliver a Note Purchase Agreement in connection with a negotiated sale of the notes in such form (including designation of the Underwriter) as an Authorized Officer shall approve, such approval to be conclusively evidenced by his or her execution and delivery thereof.
(b) Public Sale. An Authorized Officer, in consultation with the Municipal Advisor, may determine to sell the Notes by competitive bid and award the sale of the Notes as set forth in an Official Notice of Sale (the “Official Notice of Sale”), the form of which is attached to this Resolution and is hereby approved, and which Bond Counsel is hereby authorized to finalize, consistent with this Resolution. If an Authorized Officer determines to proceed with a competitive bid, (a) Bond Counsel is hereby directed to arrange for the publication of a notice of intention of the sale of the Notes in accordance with Section 53692 of the Government Code and (b) an Authorized Officer is hereby directed to execute the Official Notice of Sale; to open the bids at the time and place specified in the Official Notice of Sale; to receive and record the receipt of all bids made pursuant to the Official Notice of Sale; to cause said bids to be examined for compliance with the Official Notice of Sale; to cause computations to be made as to which bidder has bid the lowest true interest cost, as provided in the Official Notice of Sale; to announce the bidder of the lowest true interest cost; and to award the sale to said bidder.
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7 An Authorized Officer is further authorized to determine the maximum principal amount of the Notes and the maximum interest rate on the Notes not to exceed the maximum principal amount and interest rate set forth in Section 2.
Section 18. Engagement of Professional Services. The City hereby approves the engagement of Jones Hall, A Professional Law Corporation as Bond Counsel and Disclosure Counsel and NHA Advisors, LLC as Municipal Advisor to the City in connection with the issuance and sale of the Notes. The City Attorney is authorized to execute a legal services agreement with Jones Hall, with Jones Hall’s compensation to be contingent upon issuance of the Notes, and Jones Hall’s compensation is not set by law but is negotiable.
Section 19. Preparation of Notes; Official Action. Jones Hall, A Professional Law Corporation, as bond counsel, is directed to cause suitable Notes to be prepared showing on their face that the same bear interest at the rate specified in the offer submitted by the successful bidder or bidders, and to cause the blank spaces therein to be filled in to comply with the provisions of this Resolution, and to procure their execution by the proper officers, and to cause the Notes to be delivered when so executed to DTC on behalf of the successful bidder or bidders therefor upon the receipt of the purchase price by the City Treasurer in accordance with such successful bid or bids.
An Authorized Officer is further authorized and directed to make, execute and deliver such certificates, agreements and other closing documents as are necessary to consummate the transactions contemplated by this Resolution.
Section 20. Effective Date. This Resolution shall take effect upon its adoption.
The foregoing Resolution was adopted by the Berkeley City Council on June 28, 2022 by the following vote:
Ayes:
Noes:
Absent:
Jesse Arreguin, Mayor
Attest:
City Clerk
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EXHIBIT A
FORM OF NOTE
No. 1 *****$_______****
CITY OF BERKELEY, CALIFORNIA
2022-23 TAX AND REVENUE ANTICIPATION NOTE
INTEREST RATE: MATURITY DATE: ISSUE DATE: CUSIP:
% ______, 2023 ______, 2022
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: ****_________________ DOLLARS****
The CITY OF BERKELEY, a municipal corporation, duly organized and existing under and by virtue of the Constitution and laws of the State of California (the “City”), for value received hereby promises to pay to the Registered Owner stated above, or registered assigns (the “Owner”), on the Maturity Date stated above, the Principal Sum stated above, in lawful money of the United States of America, and to pay interest thereon in like lawful money at the rate per annum stated above, payable on the Maturity Date stated above, calculated on the basis of 360-day year composed of twelve 30-day months. Both the principal of and interest on this Note shall be payable at maturity to the Owner.
It is hereby certified, recited and declared that this Note is one of an authorized issue of Notes in the aggregate principal amount of _________ Dollars ($___________), all of like tenor, issued pursuant to the provisions of Resolution No. ________ of the City Council of the City duly passed and adopted on June 28, 2022 (the “Resolution”), and pursuant to Article 7.6 (commencing with section 53850) of Chapter 4, Part 1, Division 2, Title 5, of the California Government Code, and that all things, conditions and acts required to exist, happen and be performed precedent to and in the issuance of the Notes exist, have happened and have been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the City, does not exceed any limit prescribed by the Constitution or statutes of the State of California.
The principal amount of the Notes, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received by the City for the General Fund of the City for Fiscal Year 2022-23. As security for the payment of the principal of and interest on the Notes the City has pledged the first “unrestricted moneys” (as hereinafter defined) to be received by the City as follows: (a) an amount equal to fifty percent (50%) of the principal amount of the Notes in the month of January, 2023; (b) an amount equal to fifty percent (50%) of the principal amount of the Notes in the month of May, 2023; and (c) an
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amount sufficient to pay interest as due on the Notes at their maturity, in the month of June, 2023 (such pledged amounts being hereinafter called the “Pledged Revenues”). The principal of the Notes and the interest thereon shall constitute a first lien and charge thereon and shall be payable from the Pledged Revenues. To the extent not so paid from the Pledged Revenues, the Notes shall be paid from any other moneys of the City lawfully available therefor. In the event that there are insufficient “unrestricted moneys” received by the City to permit the deposit into the Special Account (as hereinafter defined) of the full amount of the Pledged Revenues to be deposited in any month by the last business day of such month, then the amount of any deficiency shall be satisfied and made up from any other moneys of the City lawfully available for the repayment of the Notes and interest thereon. The term “unrestricted moneys” shall mean taxes, income, revenue, cash receipts, and other moneys received by the City for the General Fund of the City for Fiscal Year 2022-23 and which are generally available for the payment of current expenses and other obligations of the City.
The Notes are issuable as fully registered Notes, without coupons, in denominations of $5,000 and any integral multiple thereof. Subject to the limitations and conditions as provided in the Resolution, Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations and of the same maturity.
The Notes are not subject to redemption prior to maturity.
This Note is transferable by the Owner hereof, but only under the circumstances, in the manner and subject to the limitations provided in the Resolution. Upon registration of such transfer a new Note or Notes, of authorized denomination or denominations, for the same aggregate principal amount and of the same maturity will be issued to the transferee in exchange herefor.
The City may treat the Owner hereof as the absolute owner hereof for all purposes, and the City shall not be affected by any notice to the contrary.
Unless this Note is presented by an authorized representative of The Depository Trust Company to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.
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IN WITNESS WHEREOF, the City of Berkeley has caused this Note to be executed by the City Manager and countersigned by the City Clerk of the City, all as of the Issue Date stated above.
CITY OF BERKELEY
By
City Manager
Countersigned:
By
City Clerk
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* Preliminary, subject to change
OFFICIAL NOTICE OF SALE
2022-23 TAX AND REVENUE ANTICIPATION NOTES
$_________*
City of Berkeley
(Alameda County, California)
NOTICE IS HEREBY GIVEN that electronic bid proposals (see "TERMS OF SALE --- Electronic Bids" below) for the purchase of the captioned notes (the “Notes”) will be received by the City Berkeley, California (the "City"), through BiDCOMPTM/Parity® (“Parity”) on:
TUESDAY, JULY 12, 2022
between 8:00 a.m. and 8:30 a.m. California Time.
Further information may be obtained from the municipal advisor to the City, NHA Advisors, 4040 Civic Center Drive, Suite 200, San Rafael, California 94903, Attn: Rob Schmidt, telephone:
(415) 785-2025 ext. 2006, email: [email protected].
POSTPONEMENT: The City reserves the right to postpone or change the time or sale date upon notice delivered via Bloomberg News Service or Thomson Municipal Market Monitor (www.tm3.com).
ISSUE AND DENOMINATION; BOOK ENTRY ONLY SYSTEM; CUSIP NUMBER: The Notes consist of fully registered notes, without coupons. The Notes will be issued in minimum denominations of $5,000. The Notes will be issued in a book entry only system with no physical distribution of the Notes made to the public. The Depository Trust Company, New York, New York (“DTC”), will act as depository for the Notes, which will be immobilized in its custody. The Notes will be registered in the name of Cede & Co., as nominee for DTC, on behalf of the participants in the DTC system and the subsequent beneficial owners of the Notes. Pursuant to MSRB Rule G-34, the City’s Municipal Advisor will apply for CUSIP number assignment prior to the award of the issue, but the cost shall be payable by the underwriter.
DATE AND MATURITY: The Notes will be dated the date of delivery (expected to be July 26, 2022), and will mature on July 25, 2023 (the “Maturity Date”).
INTEREST RATE: The maximum interest rate bid for the Notes may not exceed five percent (5%) per annum, payable upon maturity of the Notes. Bidders must specify the rate of interest which the Notes shall bear, provided that: (i) bids must be for all Notes; and (ii) the Notes shall bear interest from its date to its stated maturity at the interest rate specified in the bid.
REDEMPTION: The Notes are not subject to call and redemption prior to maturity.
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2 PAYMENT: Both principal of and interest on the Notes will be payable on the Maturity Date, in lawful money of the United States of America, to DTC which will immediately credit the account of the successful bidder or bidders as participants in the DTC system.
PURPOSE OF ISSUE: The Notes are to be issued by the City and are authorized pursuant to the provisions of Article 7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code and the provisions of resolutions of the City for any purpose for which the City is authorized to expend moneys.
SECURITY: The Notes are an obligation of the City and are secured by a pledge of and first lien and charge against the first “unrestricted moneys,” as hereinafter defined, to be received by the City, (a) in an amount equal to 50% of the principal amount of the Notes to be received by the City in January 2023, (b) in an amount equal to 50% of the principal amount of the Notes to be received by the City in May 2023, and (c) in an amount equal to all interest due on the Notes at maturity to be received by the City in June 2023. The term “unrestricted moneys” mean taxes, income, revenue and other moneys intended as receipts for the general fund of the City and which are generally available for the payment of current expenses and other obligations of the City.
Said pledged moneys shall be deposited by the City in a special fund established, created and maintained by the City. Moneys shall be withdrawn from said fund for the sole purpose of paying the principal of and the interest on the Notes at their maturity.
By statute, the Notes are declared to be general obligations of the City, and to the extent not paid from said pledged moneys shall be paid, with the interest thereon, from any other moneys of the City lawfully available therefor. Under provisions of the California Constitution, the City is generally prohibited from incurring any indebtedness or liability exceeding in any year the income and revenue provided for such year, without the assent of two-thirds of its qualified electors voting at an election called for such purpose.
RATING: S&P Global Ratings, a business unit of Standard & Poor’s Financial Services LLC, has given the Notes a rating of “_____”.
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3 TERMS OF SALE
BEST BID: Bids must be for all of the Notes. The Notes will be awarded on the basis of the lowest net interest cost including premium offered in the proposals. No bid for less than par will be entertained. In the event two or more bids setting forth identical interest rates and premium per dollar principal amount, if any, and aggregating a principal amount in excess of the principal amount of unawarded Notes are received, the City’s Finance Director, pursuant to delegation by the Council, reserves the right to exercise his discretion and judgment in making the award and may award the Notes on a pro rata basis in such denominations as he shall determine.
ELECTRONIC BIDS: Solely as an accommodation to bidders, the City will accept bids in electronic form solely from Ipreo, a KKR portfolio company, through its BiDCOMP Competitive Bid Calculation System and Parity Electronic Bid Submission System (“Ipreo”). For information about Ipreo, bidders may contact Ipreo at 395 Hudson Street, New York, New York 10014, telephone (212) 849-5023. If any provision of this Notice of Sale conflicts with information provided by Ipreo, this Notice of Sale shall control. Each bidder submitting an electronic bid understands and agrees by doing so that it is solely responsible for all arrangements with Ipreo, that the City does not encourage the use of Ipreo, and that Ipreo is not acting as an agent of the City. Instructions for submitting electronic bids must be obtained from Ipreo, and the City does not assume any responsibility for ensuring or verifying bidder compliance with Ipreo procedures.
Ipreo has advised the City that bidders must subscribe to Ipreo if such bidders intend to use Ipreo to submit bids. The City shall be entitled to assume that any bid received via Ipreo has been made by a duly authorized agent of the bidder.
Neither the City, the Municipal Advisor nor Bond Counsel has any responsibility for proper functioning of the Ipreo system, for any error contained in any bid submitted electronically, or for failure of any bid to be transmitted, received or opened at the official time for receipt of bids. The official time for receipt of bids will be determined by the City at the place of bid opening, and the City will not be required to accept the time kept by Parity as the official time. The City assumes no responsibility for informing any bidder prior to the deadline for receiving bids that its bid is incomplete, or not received.
PROMPT AWARD: The City Representative, pursuant to delegation by the City, will take action awarding the sale of the Notes or reject all bids not later than forty-eight (48) hours after the expiration of time herein prescribed for the receipt of bids and until such expiration of time all bids received shall be irrevocable. Unless such time of award is waived by the successful bidder, the award may be made after the expiration of the specified time if the bidder shall not have given to the City representative notice in writing of the withdrawal of such proposal. Notice of the award will be given promptly to the successful bidder.
ESTABLISHMENT OF ISSUE PRICE: (a) The winning bidder shall assist the City in establishing the issue price of the Notes and shall execute and deliver to the City at closing an “issue price” or similar certificate setting forth the reasonably expected initial offering price to the public of the Notes, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit 1, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Bond Counsel. All actions to be taken by the City under this Notice of Sale to establish the issue price of the Notes may be taken on behalf of the City by the City’s municipal advisor identified herein and any notice or report to be provided to the City may be provided to the City’s municipal advisor.
(b) The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining “competitive sale” for purposes of establishing the issue price of the Notes) will apply to the initial sale of the Notes (the “competitive sale requirements”) because:
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4 (1) the City shall disseminate this Notice of Sale to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (2) all bidders shall have an equal opportunity to bid; (3) the City may receive bids from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and
(4) the City anticipates awarding the sale of the Notes to the bidder who submits a firm offer to purchase the Notes at the highest price (or lowest interest cost), as set forth in this Notice of Sale.
Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Notes, as specified in the bid. By submitting a bid for the Notes, each bidder certifies that it has an established industry reputation for underwriting new issuances of municipal bonds . The City will not accept bids from firms without an established industry reputation for underwriting new issuances of municipal bonds. (c) In the event the City receives less than three bids that conform to the parameters contained herein such that the competitive sale requirements are not satisfied, the City intends to treat the initial offering price of the Notes set forth in the bid submitted by the winning bidder (the “initial offering price”) as the issue price of the Notes (the "hold-the-offering-price rule").
Consequently, each bidder should assume for purposes of making its bid that the City will treat the initial offering price of the Notes as of the date that the Notes are awarded by the City to the successful bidder ("sale date") as the issue price of the Notes. The City will advise the winning bidder within one hour of receipt of bids if the hold-the-offering-price rule will apply. In the event that the competitive sale requirements are not satisfied and issue price is established pursuant to the hold-the-offering-price rule, the issue price certificate shall be modified as necessary in the reasonable judgment of Bond Counsel and the City.
(d) By submitting a bid, the successful bidder shall, on behalf of the underwriters participating in the purchase of the Notes, (i) confirm that the underwriters have offered or will offer the Notes to the public on or before the sale date at the initial offering price set forth in the bid submitted by the winning bidder, and (ii) agree that the underwriters will neither offer nor sell the Notes to any person at a price that is higher than the initial offering price for the Notes during the period starting on the sale date and ending on the earlier of the following:
(1) the close of the fifth business day after the sale date; or (2) the date on which the underwriters have sold at least 10% of the Notes to the public at a price that is no higher than the initial offering price for the Notes.
The winning bidder shall promptly advise the City when the underwriters have sold 10% of the Notes to the public at a price that is no higher than the initial offering price if that occurs prior to the close of the fifth (5th) business day after the sale date. (e) The City acknowledges that, in making the representation set forth above, the successful bidder will rely on (i) the agreement of each underwriter to comply with the hold-the- offering-price rule, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Notes to the public, the agreement of each dealer who is a member of the selling group to comply with the hold-the-offering-price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter is a party to a retail distribution agreement that was
927
5 employed in connection with the initial sale of the Notes to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the hold-the-offering-price rule, as set forth in the retail distribution agreement and the related pricing wires. The City further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the hold-the-offering-price rule and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a retail distribution agreement to comply with its corresponding agreement regarding the hold-the-offering-price rule as applicable to the Notes. (f) By submitting a bid, each bidder confirms that:
(1) any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the bidder is a party) relating to the sale of the Notes to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as applicable, to
(A) report the prices at which it sells to the public the Notes until it is notified by the successful bidder that either the 10% test has been satisfied as to the Notes or all Notes have been sold to the public and (B) comply with the hold-the-offering-price rule, if and for so long as directed by the successful bidder and in the related pricing wires, and (2) any agreement among underwriters relating to the sale of the Notes to the public, together with the related pricing wires, contains or will contain language obligating each underwriter that is a party to a retail distribution agreement to be employed in connection with the initial sale of the Notes to the public to require each broker-dealer that is a party to such retail distribution agreement to
(A) report the prices at which it sells to the public the unsold Notes allotted to it until it is notified by the successful bidder or such underwriter that either the 10% test has been satisfied as to the Notes or all the Notes have been sold to the public and
(B) comply with the hold-the-offering-price rule, if and for so long as directed by the successful bidder or such underwriter and as set forth in the related pricing wires.
Sales of any Notes to any person that is a related party to an underwriter shall not constitute sales to the public for purposes of this Official Notice of Sale. (g) For purposes of this Official Notice of Sale:
(1) "public" means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an underwriter or a related party,
(2) "underwriter" means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Notes to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Notes to the public (including a member of a selling
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6 group or a party to a retail distribution agreement participating in the initial sale of the Notes to the public),
(3) a purchaser of any of the Notes is a "related party" to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and In addition, the City reserves the right to cancel the public sale of the Notes if the City receives fewer than three bids that conform to the parameters contained herein such that the competitive sale requirements are not satisfied.
NO GOOD FAITH DEPOSIT: The City is not requiring the successful bidder to submit a good faith deposit.
DELIVERY AND PAYMENT: It is estimated that the delivery of the Notes will be made to DTC for the account of the successful bidders on or about July 26, 2022. Payment of the purchase price must be made in funds immediately available to the City by wire transfer or other means acceptable to the City.
RIGHT OF REJECTION: The City reserves the right, in its sole discretion, to reject any and all bids for the Notes and to waive any irregularity or informality in any bid.
CHANGE IN TAX EXEMPT STATUS: At any time before the Notes are tendered for delivery, any successful bidder may disaffirm and withdraw its proposal if the interest received by private holders from notes of the same type and character shall be declared to be taxable income under present federal income tax laws, either by ruling of the Internal Revenue Service or by a decision of any federal court, or shall be declared taxable or be required to be taken into account in computing any federal income taxes by the terms of any federal income tax law enacted subsequent to the date of this notice.
CONTINUING DISCLOSURE: In order to assist bidders in complying with S.E.C. Rule 15c2-12(b)(5), the City will undertake, pursuant to separate Continuing Disclosure Certificates, to provide notices of the occurrence of certain events, if material. A description of these undertakings is set forth in the preliminary official statement relating to the Notes (the “POS”) and will also be set forth in a final official statement relating to the Notes (the “OS”).
ACKNOWLEDGMENT OF NO FIDUCIARY DUTY: At closing, the City will execute a certificate to the effect that it acknowledges and agrees that (i) the purchase and sale of the Notes by the winning bidder (the “Purchaser”) is an arm’s-length commercial transaction between the City and the Purchaser, (ii) in connection with such transaction, the Purchaser is acting solely as a principal and not as an advisor, (including, without limitation, a Municipal Advisor (as such term is defined in Section 975(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act)), agent or a fiduciary of the City, (iii) the Purchaser has not assumed (individually or collectively) a fiduciary responsibility in favor of the City with respect to the offering of the Notes or the process leading thereto (whether or not the Purchaser, or any affiliate of an Purchaser, has advised or is currently advising the City on other matters) or any other obligation to the City except the obligation to purchase the Notes, (iv) the Purchaser has financial and other interests that differ
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7 from those of the City and (v) the City has consulted with its own legal and municipal advisors to the extent it deemed appropriate in connection with the offering of the Notes.
CLOSING PAPERS; LEGAL OPINION: Each proposal will be conditioned upon the City furnishing to each successful bidder, without charge, concurrently with payment for and delivery of the Notes, the following closing papers, each dated the date of such delivery:
(a) The opinion of Bond Counsel, approving the validity of the Notes and stating that, subject to certain qualifications, under existing law, the interest on the Notes is excluded from gross income for federal income tax purposes, such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, although for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings, and is exempt from State of California personal income taxes, a copy of which opinion (certified by the official in whose office the original is filed) will be delivered with the Notes without cost to the purchaser.
(b) A certificate of the Finance Director or other appropriate official of the City that on the basis of the facts, estimates and circumstances in existence on the date of issue, it is not expected that the proceeds of the Notes will be used in a manner that would cause the Notes to be “arbitrage bonds” within the meaning of the Code;
(c) A certificate on behalf of the City that there is no litigation threatened or pending affecting the validity of the Notes;
(d) A certificate of the Finance Director or other appropriate official of the City, acting on behalf of the City solely in his or her official and not in his or her personal capacity, that at the time of the sale of the Notes and at all times subsequent thereto up to and including the time of the delivery of the Notes to the initial purchasers thereof, the OS did not, and does not, contain any untrue statement of a material fact or omit to state a material fact necessary which would make the statements misleading in the light of the circumstances under which they were made; (e) The signature certificate of the officials of the City, showing that they have signed the Notes and impressed the seal of the City thereon, and that they were respectively duly authorized to execute the same; and
(f) The receipt of the City showing that the purchase price of the Notes has been received.
OFFICIAL STATEMENT: The City has approved a preliminary Official Statement relating to the Notes. Copies of such preliminary Official Statement will be distributed to any bidder, upon request, prior to the sale in a form “deemed final” by the City for purposes of Rule 15c2-12 under the Securities Exchange Act of 1934 (the “Rule”). Within seven business days from the sale date, the City will deliver to the purchaser copies of the final Official Statement, executed by an authorized representative of the City and dated the date of delivery thereof to the purchaser, in sufficient number to allow the purchaser to comply with paragraph (b)(4) of the Rule and to satisfy the Municipal Securities Rulemaking Board (the “MSRB”) Rule G-32 or any other applicable rules adopted by the MSRB, which shall include information permitted to be omitted by paragraph (b)(1) of the Rule and such other amendments or supplements as shall have been approved by the City (the “Final Official Statement”). The purchaser agrees that it will not confirm the sale of any Notes unless the confirmation of sale is accompanied or preceded by the delivery of a copy of the Final Official Statement. The City will furnish to the successful bidder, at no charge, an electronic copy of the Official Statement for use in connection with any resale of the Notes, and up to 20 printed copies upon request.
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8 A letter of Jones Hall, A Professional Law Corporation, San Francisco, California, as disclosure counsel, will be addressed to the City and to the successful bidder, stating that, without passing upon or assuming any responsibility for the accuracy, completeness of fairness of the statements contained in the final Official Statement and making no representations that they have independently verified the accuracy, completeness or fairness of an such statements, based upon the information made available to them in the course of their participation in the preparation of the final Official Statement, nothing has come to such counsel’s attention which would lead them to believe that the final Official Statement, including the cover page and all appendices thereto (but excluding therefrom financial statements and statistical data, and information regarding The Depository Trust Company, and its book entry system, as to which no opinion need be expressed) contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading
GIVEN pursuant to a resolution of the City adopted June 28, 2022.
Dated: June 29, 2021
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* Preliminary, subject to change
EXHIBIT 1
Issue Price Certificate
$__________________
CITY OF BERKELEY
2022-23 TAX AND REVENUE ANTICIPATION NOTES
The undersigned, on behalf of [NAME OF UNDERWRITER] (“Underwriter”), hereby certifies as set forth below with respect to the sale of the above-captioned obligations (the “Notes”).
1. Reasonably Expected Initial Offering Price.
(a) As of the Sale Date, the reasonably expected initial offering prices of the Notes to the Public by Underwriter are the prices listed in Schedule A (the “Expected Offering Prices”). The Expected Offering Prices are the prices for the Notes used by the Underwriter in formulating its bid to purchase the Notes. Attached as Schedule B is a true and correct copy of the bid provided by Underwriter to purchase the Notes.
(b) Underwriter was not given the opportunity to review other bids prior to submitting its bid.
(c) The bid submitted by Underwriter constituted a firm offer to purchase the Notes.
2. Defined Terms.
(a) Issuer means the City of Berkeley.
(a) Reserved.
(b) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (c) Sale Date means the first day on which there is a binding contract in writing for the sale of the Notes. The Sale Date of the Notes is July 12, 2022. (d) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Notes to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Notes to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Notes to the Public).
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1 The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Underwriter’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Certificate of Arbitrage and with respect to compliance with the federal income tax rules affecting the Notes, and by Jones Hall, A Professional Law Corporation in connection with rendering its opinion that the interest on the Notes is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Notes. [UNDERWRITER]
By:____________________________________
Name:_________________________________
Dated: [ISSUE DATE]
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2 SCHEDULE A
EXPECTED OFFERING PRICES
Maturity Date Principal Interest Reoffering
(September 1) Amount Rate Price *
$ % %
* Stated as a percentage of par.
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3 SCHEDULE B
COPY OF UNDERWRITER’S BID
(attached)
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[LETTERHEAD OF JONES HALL, APLC]
____, 2022
City Council
City of Berkeley
2180 Milvia Street
Berkeley, California 94704
OPINION: $______ City of Berkeley, California
2022-23 Tax and Revenue Anticipation Notes
Members of the City Council:
We have acted as bond counsel to the City of Berkeley, California (the “City”) in connection with the issuance by the City, of the tax and revenue anticipation notes captioned above, dated the date hereof (the “Notes”). In such capacity, we have examined such law and such certified proceedings, certifications and other documents as we deem necessary to render this opinion.
The Notes are issued pursuant to Article 7.6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5 of the California Government Code (the “Act”), and a resolution (the “Resolution”) of the City Council of the City, adopted on ___, 2022.
Regarding questions of fact material to our opinion, we have relied upon certified proceedings and other certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation. Regarding certain questions of law material to our opinion, we have assumed the correctness of certain legal conclusions contained in the written opinions of the general counsel to the City, and others, without undertaking to verify the same by independent investigation
Based on the foregoing, we are of the opinion that, under existing law:
1. The City is a duly created and validly existing municipal corporation and charter city with the power to adopt the Resolution, perform the agreements on its part contained therein and issue the Notes.
2. The Resolution constitutes a valid and binding obligation of the City, enforceable against the City.
3. Pursuant to the Act, the Resolution creates a first lien on funds pledged by the Resolution for the security of the Notes.
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City of Berkeley
____, 2022
4. The Notes have been duly authorized and executed by the City and are valid and binding general obligations of the City.
5. The interest on the Notes is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax.
The opinions set forth in the preceding sentence are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Notes in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The City has made certain representations and covenants in order to comply with each such requirement. Inaccuracy of those representations, or failure to comply with certain of those covenants, may cause the inclusion of such interest in gross income for federal income tax purposes, which may be retroactive to the date of issuance of the Notes.
6. The interest on the Notes is exempt from personal income taxation imposed by the State of California.
We express no opinion regarding any other tax consequences arising with respect to the ownership, sale or disposition of, or the amount, accrual or receipt of interest on, the Notes.
The rights of the owners of the Notes and the enforceability of the Notes are limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally, and by equitable principles, whether considered at law or in equity.
This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. Moreover, our opinions are not a guarantee of a particular result, and are not binding on the Internal Revenue Service or the courts; rather, our opinions represent our legal judgment based upon our review of existing law that we deem relevant to such opinions and in reliance upon the representations, covenants and opinions referenced above. Our engagement with respect to this matter has terminated as of the date hereof.
Respectfully submitted,
A Professional Law Corporation
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PRELIMINARY OFFICIAL STATEMENT DATED _______, 2022
NEW ISSUE BOOK-ENTRY ONLY RATING
S&P: “____”
See “RATING.”
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to certain qualifications described in this Official Statement, under existing law, interest on the Notes is excluded from gross income for federal income tax purposes, and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. In the further opinion of Bond Counsel, interest on the Notes is exempt from California personal income taxes . See “TAX MATTERS.”
$28,000,000*
CITY OF BERKELEY
2022-23 TAX AND REVENUE ANTICIPATION NOTES
Dated: Date of Delivery Due: ______, 2023
The tax and revenue anticipation notes captioned above (the “Notes”) will be issued in denominations of $5,000 or any integral multiple thereof. Principal and interest on the Notes will be payable upon maturity. The Notes are to be delivered as fully registered Notes, without coupons and, when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), New York, New York (as described in APPENDIX E – BOOK-ENTRY ONLY SYSTEM).
DTC will act as securities depository of the Notes. Purchases will be made in book-entry form only, in the principal amount of $5,000 or any integral multiple thereof. The Notes are not subject to redemption prior to maturity.
The Notes are by statute general obligations of the City of Berkeley, California (the “City”), payable solely from taxes, income, revenues, cash receipts and other moneys that are received by the City for its General Fund for fiscal year 2022-23 and that are generally available for the payment of current expenses and other obligations of the City (the “ Unrestricted Moneys”). The Notes are secured by a pledge of Unrestricted Moneys to be received by the City in (a) an amount equal to fifty percent (50%) of the principal amount of the Notes in the month of January, 2023; (b) an amount equal to fifty percent (50%) of the principal amount of the Notes in the month of May, 2023; and (c) an amount sufficient to pay interest as due on the Notes at their maturity, in the month of June, 2023 (such pledged amounts being hereinafter called the “Pledged Revenues”). The Pledged Revenues will be deposited into, and held by the City in, a special fund designated “City of Berkeley, California, 2022-23 Tax and Revenue Anticipation Notes Special Account,” as established in the City’s Resolution adopted on June 28, 2022.
Principal of and interest on the Notes are payable in lawful moneys of the United States of America upon maturity, and interest on the Notes will be computed on the basis of a 360-day year comprised of twelve 30-day months and accrues from the date of delivery.
The Notes are legal investments for commercial banks in California and are eligible to secure deposits of public moneys in California.
THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.
The following firm, serving as municipal advisor to the City, has structured this issue.
MATURITY SCHEDULE
Interest Rate Reoffering Yield CUSIP†
The Notes are offered when, as and if issued and received by the Underwriter, subject to the approval of legality by Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel. Certain legal matters will be passed upon for the City by Jones Hall, A Professional Law Corporation, as Disclosure Counsel, and by the City Attorney. It is anticipated that the Notes, in definitive form, will be available for delivery through DTC in New York, New York on or about _______, 2022.
Dated ________, 2022
* Preliminary; subject to change.
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no cir cumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such o ffer solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction .
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GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Notes other than those contained in this Official Statement and, if given or made, such information or representation must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell nor the solicitation of an offer to buy, nor shall there be any sale of the Notes by any person to make such offer, solicitation or sale.
This Official Statement is not to be construed as a contract with the purchasers of the Notes. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of facts.
The information set forth in this Official Statement has been obtained from sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the Underwriter. The information and expressions of opinion stated in this Official Statement are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the information or opinions set forth herein or in the affairs of the City since the date hereof. This Official Statement is submitted in connection with the sale of the Notes referred to herein and may not be reproduced or used, in whole or in part, for any purpose, unless authorized in writing by the City.
The Notes have not been registered under the Securities Act of 1933 , as amended (the “ Securities Act”), in reliance upon an exemption contained in such Act. The Notes have not been registered under the securities laws of any state.
IN CONNECTION WI TH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT
TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE NOTES AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE
NOTES TO CERTAIN DEALERS AND BANKS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICE
STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICE MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.
Certain statements included or incorporated by reference in this Official Statement constitute “forward -looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget” or other similar words.
The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.
THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND
OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS
DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD -LOOKING STATEMENTS. THE CITY
DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THOSE FORWARD -LOOKING
STATEMENTS IF OR WHEN ITS EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH STATEMENTS ARE BASED OCCUR.
Although the City maintains an internet website for various purposes, none of the information on that website is incorporated by reference in this Official Statement or is intended to assist investors in making any investment decision or to provide any continuing information with respect to the Notes or any other bonds or obligations of the City.
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CITY OF BERKELEY, CALIFORNIA
ELECTED OFFICIALS
Jesse Arreguín, Mayor
Rashi Kesarwani, Councilmember District 1
Terry Taplin, Councilmember District 2
Ben Bartlett, Councilmember District 3
Kate Harrison, Councilmember District 4
Sophie Hahn, Councilmember District 5
Susan Wengraf, Councilmember District 6
Rigel Robinson, Councilmember District 7
Lori Droste, Councilmember District 8
CITY OFFICIALS
Dee Williams-Ridley
City Manager
Henry Oyekanmi
Director of Finance
LaTanya Bellow
Deputy City Manager
Paul Buddenhagen
Deputy City Manager
Farimah Brown
City Attorney
Jenny Wong
City Auditor
PROFESSIONAL SERVICES
Municipal Advisor
NHA Advisors, LLC
San Rafael, California
Bond Counsel and Disclosure Counsel
Jones Hall, A Professional Law Corporation
San Francisco, California
940
i
TABLE OF CONTENTS
INTRODUCTORY STATEMENT ......................................................................................................... 1 THE NOTES ........................................................................................................................................ 1 Description of the Notes ................................................................................................................ 1 Purpose of Issue ............................................................................................................................ 2 Book-Entry Only System ................................................................................................................ 2 SECURITY FOR AND SOURCES OF PAYMENT OF THE NOTES ................................................... 2 Security for the Notes .................................................................................................................... 2 Available Sources of Repayment ................................................................................................... 3 Monthly Cash Flows ...................................................................................................................... 4 CITY INVESTMENT POLICY AND PORTFOLIO ................................................................................ 7 SPECIAL RISK FACTORS .................................................................................................................. 8 Bankruptcy Considerations ............................................................................................................ 8 Limitations on Remedies ............................................................................................................... 9 COVID-19 Pandemic ..................................................................................................................... 9 Climate Change ........................................................................................................................... 10 Cybersecurity ............................................................................................................................... 11
CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY
REVENUES AND APPROPRIATIONS .............................................................................................. 12 Limitations on Revenues ............................................................................................................. 12 Expenditures and Appropriations ................................................................................................. 14 Future Initiatives .......................................................................................................................... 14 LEGAL OPINION ............................................................................................................................... 15 TAX MATTERS .................................................................................................................................. 15 CONTINUING DISCLOSURE ............................................................................................................ 17 ABSENCE OF MATERIAL LITIGATION ............................................................................................ 17 UNDERWRITING ............................................................................................................................... 18 MUNICIPAL ADVISOR ...................................................................................................................... 18 RATING ............................................................................................................................................. 18 ADDITIONAL INFORMATION ........................................................................................................... 19
APPENDIX A – CERTAIN INFORMATION CONCERNING THE CITY OF BERKELEY APPENDIX B – THE CITY’S ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021
APPENDIX C – FORM OF BOND COUNSEL OPINION
APPENDIX D – FORM OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX E – BOOK-ENTRY ONLY SYSTEM
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__________________________________
OFFICIAL STATEMENT
__________________________________
$28,000,000*
CITY OF BERKELEY
2022-23 TAX AND REVENUE ANTICIPATION NOTES
INTRODUCTORY STATEMENT
This Official Statement, which includes the cover page, the appendices hereto and this introductory statement, is provided to furnish information in connection with the sale by the City of Berkeley, California (the “ City”), of its 2022- 23 Tax and Revenue Anticipation Notes (the “Notes”).
The Notes are issued in full conformity with the Constitution and laws of the State of California (the “State”), including Article 7.6, Chapter 4, Part 1, Division 2, Title 5 (commencing with Section 53850 of the Governme nt Code of the State), (the “Law ”) and under the Law are general obligations of the City payable solely from those taxes, income, revenues, cash receipts and other moneys that are received by the City for the General Fund for fiscal year 2022-23 and that are generally available for the payment of current expenses and other obligations of the City (the “Unrestricted Moneys”). The Notes are authorized by a resolution adopted by the City Council on June 28, 2022 (the “Resolution”). The City may, under the Law, issue the Notes only if the principal of and interest on the Notes will not exceed 85% of the estimated amount of the uncollected Unrestricted Moneys that will be available for the payment of said No tes. Proceeds from the sale of the Notes will be deposited into a segregated account in the General Fund and used and expended by the City for any purpose for which it is authorized to expend funds from the General Fund.
THE NOTES
Description of the Notes
The Notes will be issued in the principal amount and at the interest rate shown on the cover page of this Official Statement. Principal of and interest on the Notes are payable in lawful moneys of the United States of America upon maturity, and interest on the Notes will be computed on the basis of a 360-day year comprised of twelve 30-day months and accrues from the date of delivery.
The Notes will be dated the date of delivery and will mature on ______, 2023. The Notes are to be delivered as fully registered Notes, without coupons, and, when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“ DTC”), New York, New York. DTC will act as securities depository of the Notes. Purchases will be made in book-entry form only, in the principal amount of $5,000 or any integral multiple thereof.
* Preliminary; subject to change.
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2 Purpose of Issue
Proceeds of the Notes will provide moneys to meet the City’s General Fund cash flow requirements during the 2022-23 fiscal year commencing July 1, 2022, and ending June 30, 2023, including current expenses, capital expenditures, and the discharge of other obligations or indebtedness.
Book-Entry Only System
DTC will act as securities depository for the Notes. The Notes will be issued as fully - registered certificates registered in the name of Cede & Co. (DTC’s partnership nominee). One fully-registered certificate will be issued for each maturity of the Notes, each in the aggregate principal amount of such maturity, and will be deposited with DTC. See “APPENDIX E – BOOK- ENTRY ONLY SYSTEM.”
So long as the Notes are regist ered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal and interest with respect to the Notes will be made to DTC as provided as in the representation letter delivered on the date of issuance of the notes. The City cannot and does not give any assurances that DTC, participants in DTC’s book-entry only system (“DTC Participants”) or others will distribute payments of principal, interest or premium, if any, with respect to the Notes paid to DTC or its nominee as the regi stered owner, or will distribute any prepayment notices or other notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. The City is not responsible or liable for the failure of DTC or any DTC Participant to make any payment or give any notice to a Beneficial Owner with respect to the Notes or an error or delay relating thereto.
SECURITY FOR AND SOURCES OF PAYMENT OF THE NOTES
Security for the Notes
The principal amount of the Notes, together with the interest thereon, is payable from Unrestricted Moneys, being the first taxes, income, revenue, cash receip ts, and other moneys that are received by the City for the General Fund for fiscal year 2022-23 and which are generally available for the payment of current expenses and other obligations of the City. Estimated Unrestricted Moneys exceed estimated payment requirements by more than eight to one. See “THE NOTES – Available Sources of Payment.”
As security for the repayment of principal of and interest on the Notes, the City has pledged to deposit into a special fund designated as the “2022- 23 Tax and Revenue Anticipation Note Special Account” (the “Special Account”) the first Unrestricted Moneys to be received by the City as follows: (a) an amount equal to fifty percent (50%) of the principal amount of the Notes in the month of January, 2023; (b) an amount equal to fifty percent (50%) of the principal amount of the Notes in the month of May, 2023; and (c) an amount sufficient to pay interest as due on the Notes at their maturity, in the month of June, 2023 (such pledged amounts, the “Pledged Revenues”).
The Notes are equally and ratably secured by the City's pledge of the Pledged Revenues.
The principal of the Notes and the interest thereon shall constitute a first lien and charge against and shall be paid from the first moneys received by the City from such Pledged Revenues, and to the extent not so paid shall be paid from any other moneys of the City lawfully available
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3 therefor. In the event there are insufficient Unrestricted Moneys received by the City to permit the deposits into the Special Account of the full amount of the Pledged Revenues to be deposited in the applicable month, by the last business day of such month, then the amount of such deficiency shall be satisfied and made up from any other moneys of the City lawfully available for the payment of the Notes and the interest thereon.
All Pledged Revenues, as and when received, shall be deposited by the City in to the Special Account, which will be held by the City for the payment of the principal of and interest on the Notes at maturity. Amounts deposited by the City into the Special Account shall be applied solely for the purpose of paying the principal of and interest on the Notes. Such amounts shall be invested by the City in legal investments, as permitted by Section 53601 of the Government Code of the State. See “CITY INVESTMENT POLICY AND PORTFOLIO.”
Available Sources of Repayment
The Notes, in accordance with State law, are general obligations of the City, but are payable only out of Unrestricted Moneys, which include the taxes, income, revenues, cash receipts and other moneys that are received by the City for the General Fund for fiscal year 2022- 23 and that are generally available for payment of current expenses and other obligations of the City. The Constitution of the State substantially limits the City's ability to levy ad valorem taxes.
See “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY REVENUES AND APPROPRIATIONS.” The City may, under existing law, issue the Notes only if the principal of, and interest on, the Notes will not exceed 85% of the estimated uncollected Unrestricted Moneys that will be available for the repayment of the Notes.
The Note coverage ratio is shown in the following table and is the ratio of estimated Unrestricted Moneys to the amount of Unrestricted Moneys needed to pay principal of and interest on the Notes.
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4 The table below gives detail as to the sources of estimated Unrestricted Moneys and the Note Coverage Ratio.
CITY OF BERKELEY
Estimated Unrestricted Moneys
Fiscal Year 2022-23
Source Amount
Available Cash Balance, July 1, 2021 $71,592,194
Taxes (including property tax, sales tax and other taxes) 207,881,207 Other Revenue 71,808,821
Proceeds of the Notes(1)* 28,194,960
Transfers In 9,875,568
TOTAL UNRESTRICTED MONEYS* $389,352,750
ESTIMATED PRINCIPAL PLUS INTEREST NEEDED FOR NOTE REPAYMENT* $28,837,667
NOTE COVERAGE RATIO* 13.5 : 1
* Preliminary; subject to change.
(1) Excluding underwriter’s discount and costs of issuance.
Source: City of Berkeley Finance Department.
Monthly Cash Flows
The City has prepared the accompanying monthly General Fund cash flow statements covering fiscal year 2021-22 and the projected fiscal year 2022-23. The General Fund is used to finance the ordinary operations of the City and is available for any legal authorized purposes.
While expenditures generally occur evenly throughout the fiscal year, cash receipts occur unevenly. As a result, the General Fund cash balance tends to show a deficit during parts of the fiscal year. The projections are based on the City’s budget and current financial condition.
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5 City of Berkeley
Fiscal Year 2021-22 Actual and Projected General Fund Cash Flows (1)(2)
July August September October November December January February March April May June TOTAL Beginning Balance $36,838,797 $26,408,105 $27,067,646 $31,146,094 $29,884,190 $28,435,280 $66,549,638 $49,533,907 $56,480,867 $68,807,680 $107,271,653 $86,776,374 $36,838,797
CASH RECEIPTS
Property Tax $3,294,550 $4,544,763 $12,004,210 $4,257,282 $6,038,056 $40,619,704 $6,888,656 $6,746,772 $13,768,260 $27,647,235 $6,274,698 $5,508,033 $137,592,219 Sales Tax 1,583,233 1,941,290 1,371,856 1,614,476 1,688,682 1,334,076 1,520,357 1,579,447 1,251,729 1,379,597 1,380,847 1,641,624 18,287,215 Other Taxes 2,382,425 2,026,013 2,201,668 2,052,993 2,478,184 9,922,082 4,188,977 7,698,924 7,614,385 19,647,155 1,943,420 1,924,369 64,080,596 License and Permits 132,652 152,900 97,903 81,559 48,324 55,643 45,864 63,695 71,599 109,691 35,036 51,698 946,565 Franchises 10,686 166,396 -- 10,125 162,878 -- -- 161,505 -- 1,049,395 161,505 20,250 1,742,739 Subventions & Grants 54,116 -- 60,418 -- 1,685 1,172 140,772 20,744 255,458 1,050 650 189,290 725,355 Service Fees 436,602 648,085 449,735 602,534 504,841 521,717 511,175 768,713 1,095,113 644,664 181,540 372,832 6,737,551 Fines and Penalties 503,978 402,150 493,662 332,289 381,151 421,833 492,904 432,395 512,188 478,448 434,657 434,657 5,320,312 Rents and Royalties 15,885 30,913 34,705 18,570 17,685 45,009 19,331 25,988 22,323 19,462 1,338 19,728 270,936 Interest Income and CalPERS Discount 435,915 352,348 581,185 279,908 862,830 595,598 531,320 462,837 698,181 260,027 727,632 854,840 6,642,621 Miscellaneous 11,377 174,097 8,391 97,290 22,424 1,100 43,452 44,837 18,510 3,866 325 -- 425,668 Transfers In/Indirect Costs 6,714,709 630,786 604,658 6,783,612 610,694 803,005 6,785,553 598,666 597,006 6,784,044 606,134 1,015,512 32,534,379 CalPERS Prepayments from Other Depts 2,811,166 3,307,254 3,307,254 3,307,254 3,307,254 4,960,882 3,307,254 3,307,254 3,307,254 3,307,254 3,307,254 5,456,970 42,994,308 TRAN Proceeds 45,003,435 -- -- -- -- -- -- -- -- -- -- -- 45,003,435 TOTAL RECEIPTS $63,390,730 $14,376,997 $21,215,645 $19,437,892 $16,124,688 $59,281,820 $24,475,615 $21,911,777 $29,212,007 $61,331,888 $15,055,037 $17,489,802 $363,303,898
CASH DISBURSEMENTS
General Government $3,129,393 $2,576,554 $2,727,518 $2,717,094 $2,322,808 $3,428,330 $2,428,121 $2,581,220 $2,560,210 $2,647,539 $2,309,443 $6,277,125 $35,705,356 Public Safety 7,607,679 9,400,913 9,735,623 9,805,707 9,292,776 13,708,021 9,629,304 9,164,701 10,291,438 10,066,753 9,697,323 16,191,309 124,591,546 Highways and Streets 108,063 255,883 192,190 279,445 233,928 409,111 361,088 304,300 327,261 243,149 311,374 713,195 3,738,987 Health and Human Service 1,059,361 1,475,165 1,284,059 1,810,382 1,084,455 1,368,053 1,457,506 1,257,831 1,974,185 1,415,283 1,107,161 3,733,180 19,026,620 Culture - Recreation 555,049 726,725 731,928 643,844 550,685 679,483 486,969 582,945 652,870 583,316 666,583 2,299,804 9,160,202 Urban Redevelopment/Housing 544,159 690,846 886,532 459,324 550,018 1,017,138 647,235 535,334 1,418,889 686,243 1,967,476 1,602,449 11,005,642 Econ Dev & Assistance 63,609 268,701 373,792 304,065 391,811 463,465 146,149 237,525 234,006 90,207 105,205 1,051,079 3,729,614 Debt Service -- -- -- -- -- (3,774) -- -- -- -- -- -- (3,774) Debt Service: Workers Comp Loan Repayment -- -- -- -- -- -- -- -- -- -- -- -- -- Debt Service: 2016 Parking Revenue Bonds -- -- -- -- -- -- -- -- -- -- -- -- -- Transfers Out/Other 9,351,678 162,752 162,752 3,726,326 162,752 1,736,447 3,726,326 162,752 162,752 3,726,326 162,752 162,752 23,406,361 Transfer Out to Pension Section 115 Trust Fund 2,000,000 -- 369,840 -- -- 369,840 -- -- 369,840 -- -- 369,840 3,479,360 Transfer Out of Excess of Property Transfer Tax -- -- -- -- -- -- -- -- -- -- -- -- -- Transfer Out to Stabilization Reserve Fund 1,375,000 -- -- -- -- 2,261,005 -- -- -- -- -- -- 3,636,005 Transfer Out to Catastrophic Reserve Fund 1,125,000 -- -- -- -- 1,849,913 -- -- -- -- -- -- 2,974,913 Prepayment to CalPERS 42,994,308 -- -- -- -- -- -- -- -- -- -- -- 42,994,308 TRAN Principal Pledge -- -- -- -- -- -- 22,330,000 -- -- -- 22,330,000 -- 44,660,000 TRAN Interest Pledge -- -- -- -- -- -- -- -- -- -- -- 445,359 445,359 Advances from GF/(Repayment to GF) 3,908,124 (1,840,083) 672,963 953,609 2,984,365 (6,119,569) 278,649 138,208 (1,106,256) 3,409,100 (3,107,000) (172,110) -- TOTAL DISBURSEMENTS $73,821,423 $13,717,455 $17,137,197 $20,699,795 $17,573,598 $21,167,462 $41,491,346 $14,964,817 $16,885,194 $22,867,915 $35,550,316 $32,673,982 $328,550,501
Interfund Borrowings -- -- -- -- -- -- -- -- -- -- -- -- --
Net Cash Flow ($10,430,693) $659,541 $4,078,448 ($1,261,904) ($1,448,911) $38,114,359 ($17,015,731) $6,946,960 $12,326,813 $38,463,973 ($20,495,279) ($15,184,180) $34,753,397
Ending Balance $26,408,105 $27,067,646 $31,146,094 $29,884,190 $28,435,280 $66,549,638 $49,533,907 $56,480,867 $68,807,680 $107,271,653 $86,776,374 $71,592,194 $71,592,194
(1) Actual through April 30, 2022.
(2) Cash and investment balances provided in the table above represent the City’s available cash balance (i.e., General Fund cash and investments less the Stabilization and Catastrophic Reserve Fund cash balances and short term liabilities).
Source: City of Berkeley.
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6 City of Berkeley
Fiscal Year 2022-23 Projected General Fund Cash Flows (1) (Including the Notes)
July August September October November December January February March April May June TOTAL Beginning Balance $71,592,194 $14,507,565 $12,899,285 $15,313,684 $8,308,402 $6,281,410 $45,105,665 $30,546,022 $35,989,838 $46,247,449 $78,237,036 $64,217,798 $71,592,194
CASH RECEIPTS
Property Tax $2,974,286 $4,102,966 $10,837,277 $3,843,431 $5,451,095 $36,671,051 $6,219,007 $6,090,917 $12,429,844 $24,959,640 $5,664,733 $4,972,596 $124,216,842 Sales Tax 846,376 1,218,713 1,426,569 1,678,864 1,756,030 1,387,282 1,580,992 1,642,438 1,301,650 1,434,618 2,235,918 2,507,095 19,016,546 Other Taxes 1,603,514 1,843,947 2,221,157 2,071,166 2,500,120 10,009,909 4,226,057 7,767,072 7,681,786 19,821,066 2,160,623 2,741,403 64,647,819 License and Permits 132,652 152,900 97,903 81,559 48,324 55,643 45,864 63,695 71,599 109,691 35,036 51,698 946,565 Franchises 9,893 154,036 -- 9,373 150,779 -- -- 149,508 -- 971,443 149,508 18,745 1,613,283 Subventions & Grants 54,116 -- 60,418 -- 1,685 1,172 140,772 20,744 255,458 1,050 650 189,290 725,355 Service Fees 443,082 657,704 456,410 611,477 512,334 529,460 518,762 780,122 1,111,367 654,232 184,235 378,365 6,837,551 Fines and Penalties 545,981 435,667 534,806 359,983 412,917 456,990 533,985 468,433 554,877 518,324 470,883 470,883 5,763,730 Rents and Royalties 21,748 42,323 47,514 25,424 24,212 61,621 26,466 35,580 30,562 26,645 1,832 27,009 370,936 Interest Income and CalPERS Discount 393,743 318,262 876,920 252,829 779,358 977,929 479,919 418,061 1,007,738 234,872 657,239 1,237,232 7,634,103 Miscellaneous 11,377 174,097 8,391 97,290 22,424 1,100 43,452 44,838 18,510 3,866 325 -- 425,669 Transfers In/Indirect Costs 2,038,200 191,470 183,540 2,059,115 185,372 243,746 2,059,704 181,721 181,217 2,059,246 183,987 308,251 9,875,568 CalPERS Prepayments from Other Depts 2,922,562 3,653,202 3,653,202 3,653,202 3,653,202 5,479,803 3,653,202 3,653,202 3,653,202 3,653,202 3,653,202 6,210,444 47,491,629 TRAN Proceeds 28,194,960 -- -- -- -- -- -- -- -- -- -- -- 28,194,960 TOTAL RECEIPTS $40,192,490 $12,945,286 $20,404,106 $14,743,713 $15,497,852 $55,875,708 $19,528,182 $21,316,330 $28,297,810 $54,447,895 $15,398,172 $19,113,012 $317,760,556
CASH DISBURSEMENTS
General Government $3,344,253 $2,753,457 $2,914,786 $2,903,646 $2,482,289 $3,663,715 $2,594,833 $2,758,444 $2,735,991 $2,829,315 $2,468,006 $6,708,105 $38,156,842 Public Safety 8,102,178 10,011,972 10,368,438 10,443,078 9,896,807 14,599,042 10,255,209 9,760,407 10,960,381 10,721,092 10,327,648 17,243,744 132,689,996 Highways and Streets 111,311 263,575 197,967 287,845 240,960 421,409 371,943 313,447 337,099 250,459 320,734 734,634 3,851,384 Health and Human Service 1,108,907 1,544,157 1,344,113 1,895,052 1,135,174 1,432,036 1,525,672 1,316,659 2,066,515 1,481,474 1,158,942 3,907,777 19,916,479 Culture - Recreation 591,127 773,962 779,504 685,694 586,479 723,649 518,622 620,837 695,307 621,231 709,911 2,449,292 9,755,615 Urban Redevelopment/Housing 596,680 757,524 972,098 503,657 603,104 1,115,309 709,705 587,004 1,555,837 752,478 2,157,372 1,757,114 12,067,882 Econ Dev & Assistance 67,744 286,167 398,088 323,829 417,279 493,590 155,649 252,964 249,216 96,070 112,043 1,119,399 3,972,039 Debt Service: Workers Comp Loan Repayment -- -- -- -- -- -- -- -- -- -- -- -- -- Debt Service: 2016 Parking Revenue Bonds -- -- -- -- -- -- -- -- -- -- -- -- -- Transfers Out/Other 9,331,545 162,752 162,752 3,706,193 162,752 162,752 3,706,193 162,752 162,752 3,706,187 162,752 162,752 21,752,134 Transfer Out to Pension Section 115 Trust Fund 2,000,000 -- 351,961 -- -- 439,951 -- -- 377,101 -- -- 465,091 3,634,103 Transfer Out of Excess of Property Transfer Tax 18,031,745 -- -- -- -- -- -- -- -- -- -- -- 18,031,745 Transfer Out to Stabilization Reserve Fund 1,375,000 -- -- -- -- -- -- -- -- -- -- -- 1,375,000 Transfer Out to Catastrophic Reserve Fund 1,125,000 -- -- -- -- -- -- -- -- -- -- -- 1,125,000 Prepayment to CalPERS 47,491,629 -- -- -- -- -- -- -- -- -- -- -- 47,491,629 TRAN Principal Pledge -- -- -- -- -- -- 14,000,000 -- -- -- 14,000,000 -- 28,000,000 TRAN Interest Pledge -- -- -- -- -- -- -- -- -- -- -- 837,667 837,667 Advances from GF/(Repayment to GF) 4,000,000 (2,000,000) 500,000 1,000,000 2,000,000 (6,000,000) 250,000 100,000 (1,100,000) 2,000,000 (2,000,000) 1,250,000 -- TOTAL DISBURSEMENTS $97,277,119 $14,553,566 $17,989,708 $21,748,994 $17,524,845 $17,051,453 $34,087,825 $15,872,514 $18,040,199 $22,458,307 $29,417,409 $36,635,574 $342,657,514
Interfund Borrowings -- -- -- -- -- -- -- -- -- -- -- -- --
Net Cash Flow ($57,084,629) ($1,608,280) $2,414,399 ($7,005,282) ($2,026,992) $38,824,255 ($14,559,643) $5,443,817 $10,257,610 $31,989,587 ($14,019,238) ($17,522,562) ($24,896,958)
Ending Balance $14,507,565 $12,899,285 $15,313,684 $8,308,402 $6,281,410 $45,105,665 $30,546,022 $35,989,838 $46,247,449 $78,237,036 $64,217,798 $46,695,236 $46,695,236
(1) Cash and investment balances provided in the table above represent the City’s available cash balance (i.e., General Fund cash and investments less the Stabilization and Catastrophic Reserve Fund cash balances and short-term liabilities).
Source: City of Berkeley.
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7 CITY INVESTMENT POLICY AND PORTFOLIO
The authority to invest the City’s funds is derived from a resolution adopted annually by the City Council delegating to the Director of Finance and the Treasurer of the City the authority to invest these funds within the guidelines of Section 53600 et seq. of the Government Code of the State (the “Government Code”). The Government Code also directs the City to present an annual investment policy (the “Investment Policy”) for confirmation to the City Council. The City Council voted to affirm the Investment Policy and designate the investment authority on July 1, 2021. The Investment Policy may be revised by the City Council at any time.
The objectives of the Investment Policy are preservation of capital, liquidity and yield. The Investment Policy addresses the soundness of financial institutions in which the City may deposit funds, types of investment instruments permitted by the City and the Government Code, investment duration and the amount which may be invested in certain instruments. The Investment Policy also reflects and supports the City’s policy positions on important social and environmental issues, as contained in formal City Council actions including the Nuclear -Free Berkeley Act, the Responsible Investment Ordinance, the Oppressive States Contract Resolution and Divestment from Publicly -Traded Fossil Fuel Companies and Gun Manufacturers and Tobacco companies. Summarized below are the permitted investments under the Investment Policy. These policies may further restrict investment options available to the City.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage/Dollar
of Portfolio
Maximum
Investment
in One
Issuer
Bank/Time Deposit Accounts 5 years 100% N/A
Money Market Funds N/A 100 N/A
Repurchase Agreements 1 year 10 N/A
Reverse Repurchase Agreements 7 days 10 N/A
Banker’s Acceptances 7 days 40 30%
U.S. Government Securities
(Treasury bills, Notes and Bonds) 10 years* 100 N/A
U.S. Agency Securities by Agency 10 years* 100 N/A
Negotiable Certificates of Deposit 10 years* 30 $250,000 Local Agency Bonds 5 years* 100 N/A
Commercial Paper 180 days 25 $5M or 2%
Medium Term Notes 10 years
30 years* 30 30%
Source: City of Berkeley
* Maturities over five years, up to 30 years, are authorized for Retiree Medical Plan Trust and debt service reserve funds.
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8 As of March 31, 2022, the City portfolio included $581,584,405 in pooled investments. The average life of the investments was 1,304 days and the weighted yield was 0.969%. The following is the market value of investments held by the City as of March 31, 2022:
Security
Market
Value
% of Total
Portfolio
Certificates of Deposit $511,125 0.09%
Medium Term Notes 116,481,431 20.03
Federal Agency 264,957,050 45.56
Municipal Bonds 5,092,050 0.88
Money Market 135,150,556 23.24
Bank Account 59,391,657 10.21
TOTAL(1): $526,986,435(1) 100.00%
(1) Totals do not sum due to rounding.
Source: City of Berkeley Finance Department.]
SPECIAL RISK FACTORS
The following information should be considered by prospective investors in evaluating the Notes; however, this information does not purport to be an exhaustive listing of the risks and other considerations, which may be relevant to an investment in the Notes.
Bankruptcy Considerations
In 1994, Orange County, California issued its 1994 -1995 Tax and Revenue Anticipation Notes (the “Orange County Notes”) under the same statutory authority as the Notes. On December 6, 1994, Orange County filed a petition in bankruptcy. Subsequently, Orange County declined to set aside the taxes and revenues it had pledged for the repayment of the Orange County Notes and a noteholder brought suit to compel Orange County to do so. A March 8, 1995, ruling of the United States Bankruptcy Court for the Central District of California, held that the lien securing the Orange County Notes did not attach to revenues received by Oran ge County after the filing of its bankruptcy petition on December 6, 1994, and therefore, Orange County was not required to set aside the revenues pledged under the note resolution following the bankruptcy.
The Bankruptcy Court ruled that under the United States Bankruptcy Code (the “Bankruptcy Code”), the lien did not attach to revenues received by Orange County after December 6, 1994 , because the lien was a consensual security interest rather than a statutory lien. In July 1995, the United Stated District Court for the Central District of California reversed the decision of the Bankruptcy Court. Orange County appealed the decision of the District Court to the United States Court of Appeals for the Ninth Circuit. Before the Ninth Circuit rendered a decision , the parties settled their disputes. Accordingly, if the City were to file for bankruptcy, it is not clear whether it would be required to set aside revenues pledged under the Resolution as described above.
In addition, the Pledged Revenues and other mon eys that will be set aside to pay the Notes will be held in the City’s General Fund, and these funds will be invested in the pooled investment fund. Should the City go into bankruptcy, a court might hold that the owners of the Notes do not have a valid lie n on the Pledged Revenues. In that case, unless the owners could “trace” the funds, the owners would merely be unsecured creditors of the City. There can be no assurance that the owners of the Notes could successfully so “trace” the Pledged Revenues.
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9 Limitations on Remedies
The rights of the owners of the Notes are subject to the limitations on legal remedies against cities in the State, including a limitation on enforcement of judgments against funds needed to serve the public welfare and interest. Additionally, enforceability of the rights and remedies of the owners of the Notes and the obligations incurred by the City, may become subject to the following: the Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditor’s rights generally, now or hereafter in effect; equity principles which may limit the specific enforcement under State law of certain remedies; the exercise by the United States of America of the powers delegated to it by the Constitution; and the reasonable and necessary exercise in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or State government, if initiated, could subject the owners of the Notes to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation, or modification of their rights.
COVID-19 Pandemic
General. The spread of the novel strains of coronavirus that causes the disease known as COVID-19 (“COVID-19”) and local, state, and federal actions in response to COVID -19, is having a significant impact on the economy and on the City’s operations and finances. On February 11, 2020, the World Health Organization announced the official name for the outbreak of COVID-19, an upper respiratory tract illness. COVID -19 has since spread across the globe.
The COVID-19 pandemic has had an adverse effect on, among other things, the world economy, global supply chain, international travel, and a number of travel-related industries. The temporary and permanent business closures caused by the COVID-19 pandemic have led to a stark increase in unemployment across the County and the nation. Depending on the length and the breadth of the impacts of the COVID-19 pandemic, the economic costs may be very significant for the City and the region’s economy. On June 8, 2020, the National Bureau of Economic Research announced that the Uni ted States of America (the “ U.S.”) officially entered into a recession in February 2020. In addition, capital markets in the United States and globally have been volatile.
In mid-March 2020, based on guidance and directives from the State and public healt h agencies, all counties in the Bay Area and the City implemented and revised Shelter -in-Place (“Shelter-in-Place”) emergency orders or directives, which directed individuals to stay home, except for limited travel for the conduct of essential services. Most retail establishments (including restaurants, bars and nightclubs, entertainment venues and gyms) were closed in response to the Shelter-in-Place orders or directives. The Governor of the State announced similar Shelter - in-Place emergency orders effective for the entire State, which were lifted in June 2021.
In December 2020, two vaccines were approved for emergency use in the United States and vaccinations began in California. A third vaccine was approved for emergency use in February 2021. In July 2021, as a result of the Delta variant, all Bay Area counties and the City issued recommendations that all persons wear masks in indoor settings, regardless of vaccination status, and the recommendation became mandatory in August 2021. Also in August 20 21, booster shots became available to all Americans. In January 2022, the Omicron variant surged in the State, and began to wane in February 2022 and on February 16, 2022, the State and the City lifted the indoor bask mandate in most public settings for vaccinated people.
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10 Impacts of COVID-19 Emergency Uncertain. The COVID-19 pandemic is still ongoing; however, indications are strong that the pandemic is transitioning to its endemic stage though its dynamic nature leads to uncertainties. There are many variables that will continue to contribute to the economic impact of the COVID-19 pandemic and the recovery, including the length of time social distancing measures are in place, the effectiveness of State and Federal governments’ relief programs and the timing for the containment and treatment of COVID -19. The ultimate impact of COVID-19 on the City’s operations and finances is not fully known, and it may be some time before the full impact of the COVID-19 pandemic is known.
Climate Change
The adoption by the State of the California Global Warming Solutions Act of 2006 (AB 32) and subsequent companion bills demonstrate the commitment by the State to take action and reduce greenhouse gases (“GHG”) to 1990 levels by 2020 and 80% below 1990 levels by 2050.
The State Attorney General’s Office, in accordance with SB 375, now requires that local governments examine local policies and large-scale planning efforts to determine how to reduce greenhouse gas emissions. Additionally, the State adopted Senate Bill No. 32, which established a revised statewide GHG emission reduction target of 40% below 1990 levels by 2030.
The City is vulnerable to the impacts of climate change. The severity of these impacts will depend on the amount of greenhouse gas emissions produced worldwide over the coming decades and the City’s ability to adapt to the changing climate. These impacts will continue to grow in intensity and will disproportionately affect vulnerable communities such as the elderly, children, people with disabilities, and people with low incomes. In order to mitigate climate change locally, the City developed the Berkeley Climate Action Plan (CAP). The CAP sets a target of achieving 80% GHG reductions below 2000 levels by 2050. The City also has goals to achieve net zero carbon emissions by 2050, become a fossil fuel f ree city, and reach 100% renewable electricity citywide by 2035. From 2000 to 2016, the City has reduced its greenhouse gas emissions by 15% despite a population increase of approximately 18% in that same period. The City’s mitigation efforts include developing plans, programs and policies to:
• Reduce energy use in building construction and operation, in transportation by shifting travel to walking, biking, and transit, and by minimizing landfilled waste; • Clean the electricity used in the City and
• Electrify transportation and buildings to signifi cantly reduce natural gas and petroleum use.
It is also critical that the City adapt to current and projected climate change impacts, including sea level rise, drought, severe storms, and extreme heat, in order to protect its community, infrastructure, b uildings, and economy. The City has several plans that address climate adaptation including the Local Hazard Mitigation Plan, the Resilience Strategy, and the Climate Action Plan. The City is also developing a sea level rise plan for the Berkeley Marina and a green infrastructure plan. Some key climate resilience actions that the City is taking include implementing green infrastructure projects and identifying opportunities for clean energy assurance solutions, such as solar plus storage, for buildings. The City also actively participates in regional organizations such as the Bay Area Climate Adaptation Network to develop regional strategies and solutions to adapt to climate change.
Climate change will have new, direct impacts and will also exacerbate exis ting local natural hazards. Rising sea levels have the potential to impact infrastructure and community