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11 members in west Berkeley and the Berkeley waterfront. This could increase the City’s exposure to tsunami inundation and to flooding of critical infrastr ucture in these areas, which includes sanitary sewers, state highways, and railroad lines. Increased temperatures, when coupled with prolonged drought events, can increase the intensity of wildfires that may occur, and pose significant health and safety risks for vulnerable communities. Shorter, more intense wet seasons could make flooding more frequent, and may increase the landslide risk in the Berkeley hills.
California may experience greater water and food insecurity, and drought may become a more persistent issue as the effects of climate change deepen.
Cybersecurity
The City and its departments face multiple cyber threats including, but not limited to, hacking, viruses, malware and other attacks on computers and other sensi tive digital networks and systems. There have been, however, only limited cyber-attacks on the computer systems of the City. No assurances can be given that the security and operational control measures of the City will be successful in guarding against an y and each cyber threat and attack . The results of any attack on the computer and information technology systems could have a material adverse impact on the operations of the City and damage the digital networks and systems. The resulting costs and/or impacts on operations and General Fund revenues could be material.
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12 CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY REVENUES
AND APPROPRIATIONS
Limitations on Revenues
Article XIIIA of the California Constitution . Article XIIIA of the State Constitution, adopted and known as Proposition 13, was approved by the voters in June 1978. Section 1(a) of Article XIIIA limits the maximum ad valorem tax on real property to one percent of “full cash value,” and provides that such tax shall be collected by the counties and apportioned according to State law. Section 1(b) of Article XIIIA provides that the one -percent limitation does not apply to ad valorem taxes levied to pay interest and redemption charges on (i) indebtedness approved by the voters prior to July 1, 1978, or (ii) bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two- thirds of the votes cast on the proposition, or (iii) bonded indebtedness incurred by a school district or community college district for the construction, reconstruction, rehabilitation or replacement of school facilities or the acquisition or lease of real property for school facilities, approved by 55% of the voters of the district, but only if certain accountability measures are included in the proposition. The tax for payment of the City’s general obligation bonds falls within the exception for bonds approved by a two-thirds vote.
Section 2 of Article XIIIA defines “full cash value” to mean the county assessor’s valuation of real property as shown on the fiscal year 1975-76 tax bill, or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred. The full cash value may be adjusted annually to reflect inflation at a rate not to exceed two percent per year, or to reflect a reduction in the consumer price index or comparable data for the area under taxing jurisdiction or may be reduced in the event of declining property value caused by substantial damage, destruction or other factors. Legislation enacted by the State Legislature to implement Article XIIIA provides that, notwithstanding any other law, local agencies may not levy any ad valorem property tax except the 1% base tax levied by each County and taxes to pay debt service on indebtedness approved by the voters as described above.
Since its adoption, Arti cle XIIIA has been amended a number of times. These amendments have created a number of exceptions to the requirement that property be reassessed when purchased, newly constructed or a change in ownership has occurred. These exceptions include certain transfers of real property between family members, certain purchases of replacement dwellings for persons over age 55 and by property owners whose original property has been destroyed in a declared disaster, and certain improvements to accommodate disabled persons and for seismic upgrades to property. These amendments have resulted in marginal reductions in the property tax revenues of the City.
Both the California State Supreme Court and the United States Supreme Court have upheld the validity of Article XIIIA.
Article XIIIC and Article XIIID of the California Constitution . On November 5, 1996, the voters of the State approved Proposition 218, known as the “Right to Vote on Taxes Act.” Proposition 218 adds Articles XIIIC and XIIID to the California Constitution and contains a number of interrelated provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges.
On November 2, 2010, California voters approved Proposition 26, entitled the “Supermajority Vote to Pass New Taxes and Fees Act.” Section 1 of Proposition 26 declares that
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13 Proposition 26 is intended to limit the ability of the State Legislature and local government to circumvent existing restrictions on increasing taxes by defining the n ew or expanded taxes as “fees.” Proposition 26 amended Articles XIIIA and XIIIC of the State Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose higher taxes (as defined in Proposition 26) without a two-thirds vote of the Legislature. The amendments to Article XIIIC define “taxes” that are subject to voter approval as “any levy, charge, or exaction of any kind imposed by a local government,” with certain exceptions.
Taxes. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City (“ general taxes”) require a majority vote; taxes for specific purposes (“ special taxes”), even if deposited in the City’s General F und, require a two- thirds vote. The voter approval requirements of Proposition 218 reduce the flexibility of the City to raise revenues for the General Fund, and no assurance can be given that the City will be able to impose, extend or increase such taxes in the future to meet increased expenditure needs.
Property-Related Fees, Charges and Assessments . Article XIIID also adds several provisions making it generally more difficult for local agencies to levy and maintain property- related fees, charges, and assessments for municipal services and programs. These provisions include, among other things, (i) a prohibition against assessments which exceed the reasonable cost of the proportional special benefit conferred on a parcel, (ii) a requirement that assessments must confer a “special benefit,” as defined in Article XIIID, over and above any general benefits conferred, (iii) a majority protest procedure for assessments which involves the mailing of notice and a ballot to the record owner of each affected parce l, a public hearing and the tabulation of ballots weighted according to the proportional financial obligation of the affected party, and (iv) a prohibition against fees and charges which are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.
Reduction or Repeal of Taxes, Fees and Charges . Article XIIIC also removes limitations on the initiative power in matters of reducing or repealing local taxes, assessments, fees or charges. No assurance can be given that the voters of the City will not, in the future, approve an initiative or initiatives which reduce or repeal local taxes, assessments, fees or charges currently comprising a substantial part of the City’s General Fund. If such repeal or reduction occurs, the City’s ability to pay debt service on the Notes could be adversely affected.
Burden of Proof. Article XIIIC provides that local government “bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are a llocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.” Similarly, Article XIIID provides that in “any legal action contesting the validity of a fee or charge, the burden shall be on the agency to demonstrate compliance” with Article XIIID.
Impact on City’s General Fund. The approval requirements of Articles XIIIC and XIIID reduce the flexibility of the City to raise revenues for the General Fund, and no assurance can be given that the City will be able to impose, extend or increase the taxes, fees, charges or taxes in the future that the City may need to meet increased expenditure needs.
The City does not believe that any material source of General Fund revenue is subject to challenge under Articles XIIIC or XIIID.
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14 Judicial Interpretation. The interpretation and application of Articles XIIIC and XIIID will ultimately be determined by the courts with respect to a number of the matters discussed below, and it is not possible at this time to predict with certainty the outcome of such determination.
Expenditures and Appropriations
Article XIIIB of the California Constitution. In addition to the limits Article XIIIA imposes on property taxes that may be collected by local governments, certain other revenues of the State and local governments are subject to an annual “appropriations limit” or “Gann Limit” imposed by Article XIIIB of the State Constitution, which effectively limits the amount of such revenues that government entities are permitted to spend. Article XIIIB, approved by the voters in June 1979, was modified substantially by Proposition 111 in 1990. The appropriations limit of each government entity applies to “proceeds of taxes,” which consist of tax revenues, state subventions and certain other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such proceeds exceed “the cost reasonably borne by such entity in providing the regulation, product or service.” “Proceeds of taxes” exclude tax refund s and some benefit payments such as unemployment insurance. No limit is imposed on the appropriation of funds which are not “proceeds of taxes,” such as reasonable user charges or fees, and certain other non-tax funds.
Article XIIIB also does not limit a ppropriation of local revenues to pay debt service on bonds existing or authorized by January 1, 1979, or subsequently authorized by the voters, appropriations required to comply with mandates of courts or the federal government, appropriations for qualified capital outlay projects, and appropriation by the State of revenues derived from any increase in gasoline taxes and motor vehicle weight fees above January 1, 1990, levels. The appropriations limit may also be exceeded in cases of emergency; however, th e appropriations limit for the three years following such emergency appropriation must be reduced to the extent by which it was exceeded, unless the emergency arises from civil disturbance or natural disaster declared by the Governor, and the expenditure i s approved by two-thirds of the legislative body of the local government.
The State and each local government entity have their own appropriations limit. Each year, the limit is adjusted to allow for changes, if any, in the cost of living, the population of the jurisdiction, and any transfer to or from another government entity of financial responsibility for providing services. Each school district is required to establish an appropriations limit each year.
In the event that a school district’s revenues exceed its spending limit, the district may increase its appropriations limit to equal its spending by taking appropriations limit from the State.
Proposition 111 requires that each agency’s actual appropriations be tested against its limit every two yea rs. If the aggregate “proceeds of taxes” for the preceding two -year period exceed the aggregate limit, the excess must be returned to the agency’s taxpayers through tax rate or fee reductions over the following two years.
Future Initiatives
Article XIIIA, Article XIIIB, Article XIIIC, Article XIIID and Proposition 111 were each adopted as measures that qualified for the ballot pursuant to California’s initiative process. From time to time other initiative measures could be adopted, further affecting City revenues or the City’s ability to expend revenues. The nature and impact of these measures cannot be predicted by the City.
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15 LEGAL OPINION
The statements of law and legal conclusions set forth in this Official Statement under the heading “TAX MATTERS” have been reviewed by Bond Counsel. Bond Counsel's employment is limited to a review of the legal proceedings required for the authorization of the Notes and to rendering the opinion discusse d below. Such opinion will not consider or extend to any documents, agreements, representations, offering circulars or other material of any kind concerning the Notes not mentioned in this paragraph. Bond Counsel takes no responsibility for the accuracy, completeness or fairness of this Official Statement. Bond Counsel’s compensation is contingent upon the delivery of the Notes. Certain legal matters will be passed upon for the City by the City Attorney.
TAX MATTERS
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the Notes is excluded from gross income for federal income tax purposes a nd such interest is not an item of tax preference for purposes of the federal alternative minimum tax.
The opinions set forth in the preceding paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Tax Code") that must be satisfied subsequent to the issuance of the Notes. The City has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of such interest in gross income for federal income tax purposes to be retroactive to the date of issuance of the Notes.
Tax Treatment of Original Issue Discount and Premium . If the initial offering price to the public at which a Note is sold is less than the amount pay able at maturity thereof, then such difference constitutes "original issue discount" for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public at which a Note is sold is greater than the amount payable at maturity thereof, then such difference constitutes "original issue premium" for purposes of federal income taxes and State of California personal income taxes. De minimis original issue discount and original issue premium are disregarded.
Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Note on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates) . The amount of original issue discount accruing during each period is added to the adjusted basis of such Notes to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Note . The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Notes who purchase the Notes after the initial offering of a substantial amount of such maturity. Owners of such Notes should consult their own tax advisors with respect to the tax consequences of ownership of Notes with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss
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16 on a sale or other disposition, and the treatment of accrued original issue discount on such Notes under federal alternative minimum taxes.
Under the Tax Code, original issue premium is amortized on an annual ba sis over the term of the Note (said term being the shorter of the Note's maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the Note for purposes of determining taxable gain or loss upon disposition . The amount of original issue premium on a Note is amortized each year over the term to maturity of the Note on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates) . Amortized Note premium is not deductible for federal income tax purposes. Owners of premium Notes, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such Notes.
In the further opinion of Bond Counsel, interest on the Notes is exempt from California personal income taxes.
Owners of the Notes should also be aware th at the ownership or disposition of, or the accrual or receipt of interest on, the Notes may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the Notes other than as expressly described above.
A copy of the proposed form of opinion of Bond Counsel is attached hereto as APPENDIX C.
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17 CONTINUING DISCLOSURE
The City has covenanted for the benefit of the holders of the Notes to provide notices of the occurrence of certain enumerated events. The notices of enumerated events will be filed by the City with the Municipal Securities Rulemaking Board. The specific nature of the information to be contained in the notices of enumerated events is summarized under the caption “APPENDIX D – Form of Continuing Disclosure Certificate.” These covenants have been made in order to assist the purchaser of the Notes in complying with Ru le 15c2- 12(b)(5) promulgated under the Securities Exchange Act of 1934, as amended (the “Rule”).
The City and its related governmental entities have previously entered into numerous disclosure undertakings under the Rule in connection with the issuance of long- term obligations See Note 8 of the City’s Annual Comprehensive Financial Report attached to this Official Statement as APPENDIX B.
In the previous five years, the City failed to timely file a material event notice in connection with a rating change for one series of the City’s outstanding bonds. To ensure future compliance with its continuing disclosure undertakings, the City has developed procedures for including all required continuing disclosure information in the supplementary section of its audited financial statements. In addition, the City has engaged NHA Advisors, LLC, to review this information annually to ensure compliance with its continuing disclosure underta kings, including the undertaking to be entered into in connection with the Notes.
ABSENCE OF MATERIAL LITIGATION
No litigation is pending or threatened concerning the validity of the Notes, and a certificate to that effect will be furnished to the underwriter at the time of the original delivery of the Notes.
The City is not aware of any litigation pending or threatened questioning the political existence of the City or contesting the City's ability to receive ad valorem taxes or to collect other Unrestricted Moneys or contesting the City's ability to issue and retire the Notes.
There are a number of lawsuits and cla ims pending against the City. The aggregate amount of the uninsured liabilities of the City, and the timing of any anticipated payments of judgments that may result from suits and claims, will not, in the opinion of the City, materially affect the finances of the City or impair its ability to repay the Notes. A certificate of the City to this effect will be available at the time of original delivery of the Notes.
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18 UNDERWRITING
The Notes were purchased by __________ (the “Underwriter”) at a price of $________ (representing $________ aggregate principal amount of the Notes plus a purchase premium of $_________, less an Underwriter’s discount of $______). The purchase contract for the Notes provides that the Underwriter will purchase all the Notes if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in such purchase contract, the approval of certain legal matters by counsel and certain other conditions.
The Underwriter may offer and sell Notes to certain dealers and others at prices lower than the offering price stated on the cover page hereof. The offering price may be changed from time to time by the Underwriter.
MUNICIPAL ADVISOR
The City has retained NHA Advisors , LLC, San Rafael, California, as municipal advisor (the “Municipal Advisor”) in connection with the preparation of this Official Statement and with respect to the issuance of the Notes. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The Municipal Advisor is a municipal advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities. The Municipal Advisor’s compensation is contingent upon the delivery of the Notes.
RATING
S&P Global Ratings, a business unit of Standard & Poor’s Financial Services LLC , has assigned a rating to the Notes as shown on the cover of this Official Statement. The City supplied certain information to the rating agency to be considered in evaluating the Notes. The rating issued reflects only the views of such rating agency, and any explanation of the significance of such rating should be obtained from the rating agency. There is no assurance that the rating will be retained for any given period of time or that the same will not be revised downward or withdrawn entirely by such rating agency if, in its judgment, circumstances so warrant. Any downward revision or withdrawal of the rating obtained may have an adverse effect on the market price of the Notes.
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19 ADDITIONAL INFORMATION
The purpose of this Official Statement is to supply information to purchasers of the Notes.
Quotations from and summaries and explanations of the Notes and the Resolution and of statutes and documents contained herein do not purport to be complete, and reference is hereby made to the Resolution, statutes and documents for full and complete statements of their provisions.
Additional information can be obtained from the City’s Director of Finance.
This Official Statement speaks only as of its date , and the information presented in this Official Statement is subject to change. Any statements in this Official Statement involving matters of opinion, whether or not expressly stated , are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement among the City and any purchaser or owners of the Notes. This Official Statement and its distribution have been authorized and approved by the City Council of the City.
CITY OF BERKELEY
By:
City Manager
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APPENDIX A
CERTAIN INFORMATION CONCERNING THE CITY OF BERKELEY
Introduction
The City of Berkeley, California (the “City”) is located in Alameda County (the “ County”) on the east side of the San Francisco Bay, approximately 10 miles northeast of San Francisco.
The City encompasses a total area of approximately 19 square miles and had an estimated population of 124,563 as of January 1, 2022, giving it the highest population density of any city in the East Bay. The City is defined to a large degree, both culturally and economically, by the presence of the University of California campus located on the eastern side of the City. The University of California is a major component of the City's economy, employing more than 232,500 full and part-time workers across all University of California campuses statewide.
The City is among the oldest in California. The City was founded in 1864, incorporated as a town in 1878, and incorporated as a city in 1909. The City's first charter was adopted in 1895.
Population
Population figures for the City, County and State for the last five years are shown in the following table.
CITY OF BERKELEY
Population Estimates
As of January 1
Year
City of
Berkeley
County of
Alameda
State of
California
2018 121,763 1,651,760 39,519,535
2019 122,297 1,659,608 39,605,361
2020 122,364 1,663,114 39,648,938
2021 121,269 1,662,370 39,303,157
2022 124,563 1,651,979 39,185,605
Source: State Department of Finance estimates (as of January 1).
City Government
The City operates under a Council-Manager form of government. The City is governed by a nine-member City Council, eight of whom are elected by district, plus the Mayor, who is elected on a city-wide basis. The Mayor and the City Council members serve four-year terms. The Council appoints a City Manager who is responsible for daily administration of City affairs and preparation and submission of the annual budget under the direction of the Mayor and the City Council for the Mayor's submission to the City Council. The City Manager appoints a Director of Finance to supervise the City's financial affairs. The Director of Finance also serves as the City's Treasurer.
The City Attorney, City Clerk and Director of Finance are appointed by the City Manager subject to City Council approval. The City Auditor is elected at the same time as the Mayor.
Current members of the City Council are shown below:
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Member District Term Expires
Jesse Arreguín Mayor 11/30/2024
Rashi Kesarwani 1 11/30/2022
Terry Taplin 2 11/30/2024
Ben Bartlett 3 11/30/2024
Kate Harrison 4 11/30/2022
Sophie Hahn 5 11/30/2024
Susan Wengraf 6 11/30/2024
Rigel Robinson 7 11/30/2022
Lori Droste 8 11/30/2022
CITY FINANCIAL INFORMATION
Although the City is including information about the City’s finances in this Appendix A, it is important to understand that the Bonds described in this Official Statement are voter -approved general obligations of the City payable solely from the levy and collection of ad valorem property taxes, unlimited as to rate or amount, and are not payable from the general fund of the City.
Possible Impacts of COVID-19
As described in this Official Statement, while indications are that the COVID-19 pandemic is transitioning to its endemic stage, many variables will continue to contribute to the economic impact of the COVID -19 pandemic and the recovery. 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 . The Bonds described in this Official Statement are not secured by the City’s general fund, but rather are voter-approved general obligations of the City payable solely from the levy and collection of ad valorem property taxes, unlimited as to rate or amount, and are not payable from the general fund of the City. See “SECURITY FOR THE BONDS – COVID-19 Global Pandemic.”
Accounting Policies and Financial Reporting
The accounts of the City are organized on the basis of funds and account groups, to account for different activities. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity , revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which the spending activities are controlled. The City’s general fund and other governmental fund types use the modified accrual basis of accounting. All of the City’s other funds, including proprietary fund types and fiduciary fund types use the accrual basis of accounting. The basis of accounting for all funds is more fully explained in the “Notes to the Financial Statements” contained in APPENDIX B.
The City Council employs, at the beginning of each fiscal year, an independent certified public accountant who, at such time or times as specified by the City Council, at least annually, and at such other times as he or she shall determine, examines the combined financial statements of the City in accordance with generally accepted auditing standards, including such tests of the accounting records and such other auditing procedures as such accountant considers necessary.
As soon as practicable after the end of the fiscal year, a final audit and report is submitted by such
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accountant to the City Council and a copy of the financial statements as of the close of the fiscal year is published.
The City, all its funds and the funds of certain other component entities of the City are audited annually by a certified public accounting firm. The firm of Badawi and Associates, Certified Public Accounts, Oakland, California, is the City’s current auditor (the “ Auditor”). The annual comprehensive financial report of the City for fiscal year 2020 -21 is attached hereto as APPENDIX B. The City’s financial statements are public documents and are included within this Official Statement without the prior approval of the Auditor.
The Governmental Accounting Standards Board (“GASB”) published its Statement No. 34 “Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments” on June 30, 1999. Statement No. 34 provides guidelines to auditors, state and local governments and special purpose governments such as school districts and public utilities, on new requirements for financial reporting for all governmental agencies in the United States.
Generally, the basic financial statements and required supplementary information should include (i) Management’s Discussion and Analysis; (ii) government -wide financial statements prepared using the economic measurement focus and the accrual basis of accounting and fund financial statements prepared using both the current financial resources measurement focus and the modified accrual method of accounting (governmental funds) and funds using the economic measurement focus and the accrual basis of accounting (proprietary funds) and (iii) required supplementary information. The City’s financial statements are prepared in conformance with the requirements of Statement No. 34.
Comparative Financial Statements
The following tables provide a recent history of the City’s Comparative Balance Sheet, and both a recent history of General Fund revenues, expenditures, transfers, and ending fund balances and recently budgeted amounts.
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CITY OF BERKELEY
GENERAL FUND BALANCE SHEET
(Fiscal Year Ending June 30)
(Dollar amounts in thousands)
Actual Actual Actual Actual
2017-18 2018-19 2019-20 2020-21
ASSETS:
Cash and investments in treasury* $108,058 $107,360 $100,577 $146,849 Receivables (net of allowance as applicable):
Accounts 6,951 4,980 3,131 4,782
Interest 763 778 398 834
Taxes 8,623 9,953 6,502 13,092
Subventions/grants 180 450 1,582 1
Due from other funds 6,659 6,973 7,533 12,814
Notes receivable 3,755 3,697 4,820 6,197
Other 5 320 5 5
Prepaid Items 142 -- -- --
Total assets 135,136 134,512 160,020 184,574
LIABILITIES:
Accounts payable 3,610 6,736 8,755 10,444
Accrued salaries and wages 5,473 5,989 7,009 8,081
Accrued interest payable -- -- 694 740
Advances from other funds 6,287 4,059 3,113 1,760
Deposits held 974 781 770 921
Unearned revenue -- -- -- --
Tax and revenue anticipation notes 25,550 14,000 34,780 42,405 Other liabilities 3,755 3,899 3,975 4,955
Total liabilities 45,649 35,463 59,095 69,307
Deferred Inflows of Resources 5,601 5,813 2,856 3,385
FUND BALANCES
Reserved for:
Assigned to 33,373 42,667 44,705 19,577
Nonspendable 143 -- -- --
Restricted and Committed 3,755 3,697 4,820 35,941
Unreserved/Unassigned, report in:
General fund 46,614 46,872 48,544 56,364
Total fund balances 83,885 92,236 98,069 111,882
Total liabilities and fund balances $135,136 $135,512 $160,020 $184,574
* Cash and investments in treasury includes restricted cash and investments.
Source: City of Berkeley, Annual Comprehensive Financial Reports.
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CITY OF BERKELEY
STATEMENT OF GENERAL FUND
REVENUES, EXPENDITURES, TRANSFERS AND BALANCES
(Fiscal Year Ending June 30)
(Dollar amounts in thousands)
Actual
Actual
Actual
Actual
2017-18 2018-19 2019-20 2020-21
REVENUES:
Taxes $161,666 $173,216 $182,470 $187,395
Licenses and Permits 834 1,405 2,099 1,805
Subvention and Grants/Intergovernmental 1,129 1,868 1,771 3,700 Service Fees 9,862 8,433 8,597 6,990
Fines and Forfeitures 6,933 5,443 4,166 3,579
Rents 284 289 203 189
Franchises 1,990 1,800 1,812 1,714
Private contribution -- -- 179 184
Interest 2,416 6,915 9,287 8,110
Other 237 1,722 356 74
TOTAL REVENUES 185,351 201,090 210,941 213,740
EXPENDITURES:
General Government 30,143 27,410 24,693 27,357
Public Safety 95,503 103,084 118,793 120,179
Highways and Streets 1,900 2,904 2,289 3,163
Health and Human Services 9,725 13,319 20,423 19,320 Culture-Recreation 5,476 5,943 7,014 7,362
Community Development 7,153 8,264 9,041 9,258
Economic Development 2,576 2,845 5,879 2,534
Debt Service 252 270 473 139
TOTAL EXPENDITURES 152,728 164,040 188,605 189,313
Excess Revenues Over (Under) Expenditures 32,623 37,050 22,334 24,427
Transfers In(out)/Other (12,396) (27,699) (17,502) (10,614)
Net Change in Fund Balance 20,227 9,351 4,883 13,813
Fund Balance, July 1 63,658 83,885 93,236 98,069
Prior Period Adjustment
Fund Balance, June 30* $83,885 $93,236 $98,069 $111,882
* Totals may not sum due to rounding.
Source: City of Berkeley Annual Comprehensive Financial Reports
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General Fund Budget
Budgetary Process and Administration. The City employs a two-year budget process.
In year one of the biennial budget cycle, the City Council formally adopts authorized appropriations for the first fiscal year and approves “planned” appropriations for the second fiscal year. In year two, the City Counc il considers revisions and formally adopts authorized appropriations for the second fiscal year. Although the budget cycle covers a two-year period, the City Charter requires that the City Council adopt an annual appropriations ordinance for each budget year.
From January to May of each year, the City Council meets publicly to discuss policies and priorities for the upcoming budget. The City Manager prepares a proposed budget based on input from department heads and presents this to the City Council by the first Monday in May of a budget year or as fixed by the City Council. The City also maintains additional budgetary controls to ensure compliance with the annual appropriated budget. The City Manager is authorized to transfer budgeted amounts within funds as deemed necessary to meet the City’s needs; however, revisions that alter the total budget or move amounts from one fund to another must be approved by the City Council.
Revenues and expenditures relating to the City’s general governmental operations ar e budgeted and accounted for in the City’s general fund, including public safety, highways and streets, health, housing and human services, culture and recreation, community development and economic development. General taxes and fees support most of these activities. The “business” or proprietary activities of the City are accounted for in each of eight enterprise funds, which include those established for Refuse Collection, Marina Operations, Sanitary Sewers, Clean Storm Water, Permit Service Center, Off-Street Parking, Parking Meter, and Building Purchases & Management. These activities are intended to be completely or largely self-supporting through user fees and charges.
The balance of this Appendix is concerned with the operations and performance of the City’s General Fund, unless otherwise noted.
Adopted Biennial Budget. The City generally adopts a biennial budget. For Fiscal Year 2021-22 only, on June 29, 2021, the City adopted a one year budget that authorized expenditures of $234.8 million based on revenues of approximately $236 million, that was later adjusted to authorize expenditures of $259.8 million based on additional revenues received. At the time of this Official Statement, the City expects to end Fiscal Year 2021-22 with a small surplus.
The General Fund comprises less than one-half of the total budget, with the remainder of the budget consisting of various special funds that are restricted in purpose. Fifty-five percent of the City’s General Fund revenue is derived from real and un secured property, sales and soda taxes, and business license taxes.
On April 13, 2022, The City’s Budget and Finance Policy Committee was presented with a report regarding the revenue and expenditure projections and assumptions being used to develop the biennial budget for Fiscal Years 2022 -23 and 2023- 24. For Fiscal Year 2022 -23, baseline revenues are projected to be $232.8million, while baseline expenditures are projected to be $247.7 million, resulting in a deficit of $14.9 million. The City expects local revenues to continue to improve in Fiscal Year 2023 -24, while expenditures are expected to remain fairly constant, resulting in a projected deficit of approximately $18 million in Fiscal Year 2023-24.
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The City is projecting a structural deficit and is in the process of developing solutions on how to close the gap.
Preliminary Five-Year Forecast
Also on April 13, 2022, the Budget and Finance Policy Committee was presented with a preliminary five-year forecast, showing a structural deficit in Fiscal Years 2022 -23 and 2023-24.
If the City’s revenues continue to grow while expenditures stay relatively flat, the City could lessen the likelihood of a deficit by Fiscal Year 2025 -26. The following table shows the projected revenues and expenditures over the next five fiscal years for the City’s General Fund and Special Funds.
CITY OF BERKELEY
Preliminary Five-Year Forecast
Fiscal Year 2023-2026
2021-2022 2022-2023 2023-2024 2024-2025 2025-2026
Beginning Fund Balance $36,838,797 $38,150,513 $23,800,863 $16,127,157 $16,414,380 Total Revenues 236,066,207 232,802,561 242,467,333 252,603,388 263,234,553 Total Expenditures 234,754,491 247,152,211 250,141,039 252,316,165 255,040,928 Annual Surplus/(Shortfall) 1,311,716 (14,349,650) (7,673,706) 287,223 8,193,625 Projected Ending Balance 38,150,513 23,800,863 16,127,157 16,414,380 24,608,005
Source: City of Berkeley Annual Comprehensive Financial Reports
Given the decreasing level of precision to be expected in the later years of a multi -year forecast, the significance of the projections in the out years is not so much in terms of their absolute amounts, but rather in the relative size of the decrease or increase from the prior year.
This information should be used to provide a multi-year perspective to budgetary decision-making, rather than as a precise prediction of what will occur.
General Fund Reserves
Establishment of General Fund Reserve . On December 13, 2016, the City Council adopted a General Fund reserve policy, establishing a General Fund reserve (the “Reserve”), to prepare for the impact of economic cycles and catastrophic events and assure fluctuations in revenue do not impede the City’s ability to meet expenditure obligations. When revenues fail to meet the City’s norm al operating requirements, or the need for disbursements temporarily exceeds receipts, the Reserve, upon a 2/3 vote of the City Council, may be used in accordance with the standards set forth therein.
The Reserve is composed of two elements, a Stability Reserve and a Catastrophic Reserve:
1) A Stability Reserve is maintained to mitigate loss of service delivery and financial risks associated with unexpected revenue shortfalls during a single fiscal year or during a prolonged recessionary period. The purpose of the Stability Reserve is to provide fiscal stability
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in response to unexpected downturns or revenue shortfalls, and not to serve as a funding source for new programs or projects.
2) A Catastrophic Reserve is maintained for the purpose of sustaining General Fund operations in the case of a public emergency, such as a natural disaster or other catastrophic event. The Catastrophic Reserve will be used to respond to extreme, onetime events, such as earthquakes, fires, floods, civil unrest, and terrorist attacks. The Catastrophic Reserve will not be accessed to meet operational shortfalls or to fund new programs or projects.
The Reserve is accounted for in the Unassigned fund balance of the City’s balance sheet.
Target Reserve Levels . 55% of the Reserve is allocated to the Stability Reserve and 45% to the Catastrophic Reserve.
The long-term goal for the Reserve is a minimum of 30% of the adopted General Fund revenues, to be achieved by 2026 -27 (“Long- Term Goal ”). Based on a risk asses sment (according to best practices), to be updated at least every five years, the City Council may consider increasing or lowering the Reserve level.
As of March 31, 2022, the Stability Reserve has $19,235,236, and the Catastrophic Reserve has $14,419,8 28, which total 13.7% of adopted General Fund revenues, significantly below the long-term goal.
Replenishment of the General Fund Reserve . The City Manager will recommend a replenishment schedule for all monies proposed for appropriation from the Reserve. The replenishment schedule will be adopted simultaneous with the appropriation to withdraw Reserve funds or, if infeasible due to emergency circumstances, no more than three months from the date of the withdrawal appropriation. Repayment shall begin no more than five years from the date of withdrawal and be completed within 10 years from the date of withdrawal.
While staff envisions that, in most cases, repayment will start as soon as possible, the repayment guidelines are meant to reflect a commitment t o maintain a sufficient Reserve, while also recognizing that a use of Reserve amounts may occur during an economic downturn, and it may be necessary to postpone repayment while the economy improves. In Fiscal Year 2020-21, the City repaid $1,836,309 to the Stability Reserve, and $3,636,005 was repaid in Fiscal Year 2021-22. In Fiscal Year 2020 -21, the City repaid $1,502,434 to the Catastrophic Reserve and $2,974,913 was repaid in Fiscal Year 2021-22.
Unfunded Liability Obligations and Unfunded Infrastructure Needs
General. On March 16, 2021, the City Manager presented a biennial report of the City’s unfunded liability obligations and unfunded infrastructure needs (the “ Report”). The Report includes, among other things:
1. Employee and retiree benefit costs over a 10-year horizon
2. Costs for current active employees including:
a. total payroll costs for active employees during the current year; b. projected payroll costs for the same number of employees for the next 10 -year period.
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3. A summary of all current City obligations including:
a. general obligation bonds;
b. certificates of participation;
c. loans;
d. all other current long-term obligations.
4. Summary of all capital assets and infrastructure including:
a. Appraisal of Public Buildings valued at $5 million or more b. Condition of Streets and Roads, projecting costs to bring streets and roads condition to an average Pavement Condition Index of 75 within 5 years. c. Sewers: updated asset management plan for public sewers including projected costs for succeeding 5 years and projected revenue from sewer fees for the succeeding 5 years.
Certain provisions of the Report, which is available on the City’s internet website but is not incorporated by reference herein, are described below. The link to the Report on the City’s internet website is the following:
https://www.cityofberkeley.info/uploadedFiles/Clerk/FY%202021%20Unfunded%20Liability%20 Obligations%20and%20Unfunded%20Infrastructure%20Needs%20Report.pdf.
The Report concludes that maintaining a careful balance between cash on hand to fund daily operations and liquidity to cover unfunded liabilities is a key challenge for all governments, and reports that liabilities tied to benefits total $751 million (of which only 63.1% is funded), and the City’s unfunded infrastructure needs total $1.1 billion.
Unfunded Liabilities. Due to projected increases in expenses, primarily pension and medical expenses, the City is projecting a General Fund structural deficit.
The City provides retirement benefits to its employees through three plans in the California Public Employees’ Retirement System (“ CalPERS”). See “- Retirement Programs” below for additional information. The City has a significant pension liability that is anticipated to grow, increasing by more than $40 million over the next ten years, which will put a strain on resources and services.
In addition, the City’s retiree health plans are significantly underfunded, as detailed in the Report.
Unfunded Infrastructure Needs. The City has an extensive portfolio o f capital assets and infrastructure, including 95 buildings, 254 miles of public sanitary mains and 130 miles of sewer laterals, 216 centerline miles (450 lane miles) of public streets, 52 parks, 2 pools, 3 camps and 42 facilities served by the City’s IT systems. In addition, Berkeley is a relatively older city, and faces related challenges with its aging infrastructure. Despite the passage of several local bond measures to support capital facilities, there are significant unfunded needs related to parks, pools, camps, waterfront property, streets, sidewalks, storm drain/watershed, sewer, transportation and buildings/facilities. As needed improvements continue to be deferred, operating and maintenance costs rise and rehabilitation and replacement costs inc rease substantially. The Report details available annual funding and unfunded needs for capital and major maintenance.
As a result of the age of the City’s infrastructure and limited resources allocated to infrastructure, the projected costs of the City’s aging infrastructure needs are anticipated to reach more than $1.1 billion by Fiscal Year 2025-26.
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The Report also highlights that the City is located on the east side of the San Francisco bay, and has waterfront property with docks, pilings, parking lots and streets that have reached the end of their useful life. The City’s mechanism for managing its waterfront revenues and expenditures (the “Marina Fund”) is projected to be insolvent during Fiscal Year 2021-22 due to decreasing revenues and increasing expenditures, a trend that could be aggravated by failure to maintain the marina infrastructure. The City has created the Berkeley Marina Area Specific Plan to address an estimated $113 million in infrastructure repairs but has not identified any specific funding sources.
State Budget and its Impact on the City
Fiscal Year 2022-2023 State Budget. On January 10, 2022, the Governor released the proposed State budget for fiscal year 2022 -23 (the “ Proposed 2022-23 State Budget ”). The Proposed 2022-2023 State Budget is anticipated to represent a $286.4 billion operating budget that is balanced.
Impact of State Budget on City. The City receives a portion of its funding from the State.
The City's projects that approximately [__%] of the City's General Fund revenues will come from State sources.
Voters approved Proposition 1A in November 2004 to amend the State Constitution to place constraints on the State’s ability to divert certain specified revenues from local agencies to the State. Subsequently, in November 2010, voters approved Proposition 22 to amend the State Constitution to further constrain or eliminate the State’s ability to redirect revenues from local agencies. “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY REVENUES AND APPROPRIATIONS – Proposition 1A” and “– Proposition 22.”
Additional Information. Information about the Proposed 2022-23 State Budget and other State budgets is available at www.ebudget.ca.gov. An impartial analysis of the budget is posted by the Legislative Analyst Office at www.lao.ca.gov. In addition, various State official statements, many of which contain a summary of the current and past State budgets, may be found at the website of the State Treasurer, www.treasurer.ca.gov. The information referred to in this paragraph is prepared by the respective State agency maintaining each website and not by the City. The City takes no responsibility for the continued accuracy of the Internet addresses or for the accuracy or timeliness of information posted there, and such information is not incorporated in this Official Statement by these references.
Ad Valorem Property Taxes
Tax Levies and Collections. Property taxes collected by the City increased $11.7 million, or 11.6%, to $112.6 million in fiscal year 2020- 21, up from $100.9 million in fiscal year 2019- 20, primarily as a result of increases in the following revenue sources:
• Real property taxes increased $4.2 million, or 7.1%, to $63.3 million in fiscal year 2020-21, up from $59.1 million in fiscal year 2019 -20. This increase was consistent with the fiscal year 2002-21 increase in assessed valuation of 7.7%.
• Property transfer taxes increased $4.9 million, or 22.8%, to $26.4 million in fiscal year 2020 -21, up from $21.5 million in fiscal year 2019 -20. This
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resulted primarily from a significant increase in the dollar value of property sales during fiscal year 2020-21.
• Property transfer tax-Measure P increased $1.8 million, or 18.2%, to $11.7 million in fiscal year 2020-21, from $9.9 million in fiscal year 2019-20. This increase resulted from a significant increase in the number of pr operties selling for more than $1.5 million in fiscal year 2020-21. • Vehicle in-lieu taxes increased $1.0 million, or 7.7%, in fiscal year 2020-21, to $14.4 million from $13.4 million in fiscal year 2019 -20. This was consistent with the 7.7% increase in fiscal year 2020 -21 assessed values reported by the County.
Taxes are levied for each fiscal year on taxable real and personal property that is situated in the City as of the preceding January 1. A supplemental roll is developed when property changes hands, which produces additional revenue.
A ten percent penalty attaches to any delinquent payment for secured roll taxes. In addition, property on the secured roll with respect to which taxes are delinquent becomes tax - defaulted. Such property may thereafter be redeemed by payment of the delinquent taxes and the delinquency penalty, plus a redemption penalty to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to auction sale by the County Tax Collector.
In the case of unsecured property taxes, a 10% penalty attaches to delinquent taxes on property on the unsecured roll, and an additional penalty of 1.5% per month begins to accrue beginning November 1 of the fiscal year, and a lien is recorded against the assessee. The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the County Clerk specifying certain facts in order to obtain a judgment lien on specific property of the taxpayer; (3) filing a certificate of delinquency for recording in the County Recorder’s office in order to obtain a lien on specified property of the taxpayer; and (4) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee.
The County levies (except for levies to support prior voter -approved indebtedness) and collects all property taxes for property falling within that county’s taxing boundaries.
See Table 1 of the forepart of this Official Statement for a table summarizing the historical and current assessed valuation of the taxable property in the City.
The City does not participate in the Teeter Plan. See Table 4 of the forepart of this Official Statement for a history of secured tax charges and delinquencies within the City during the past 10 years.
Other General Fund Revenues and Transfers
In addition to property taxes, the City has several other major tax and fee revenue sources, as described below. The following table summarizes the City’s actual audited general fund revenues and transfers from fiscal year 2017 -18 through fiscal year 2020- 21 and budgeted general fund revenues and transfers for fiscal year 2021-22.
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CITY OF BERKELEY
GENERAL FUND REVENUES AND TRANSFERS
Actual
Actual
Actual
Actual
Revenue Revenue Revenue Revenue
FY 2018 FY 2019 FY 2020 FY 2021
Real Property $56,038,218 $59,178,773 $63,192,678 $68,166,155 Unsecured Property 2,687,198 2,878,275 3,164,168 3,448,412 Supplemental Taxes 2,237,649 2,174,903 2,334,597 2,249,517 Property Transfer Tax 18,911,368 19,952,981 22,095,507 21,469,955 Property Transfer Tax-Measure P -- 2,932,313 9,512,603 10,919,576 Sales Tax 17,435,591 18,663,550 17,557,539 15,792,305
Soda Tax 1,457,003 1,547,349 1,331,313 953,069
Business License 19,878,912 19,848,804 20,863,685 17,809,332 Business License – Cannabis Recreation -- 1,168,794 1,300,887 1,712,641 Measure U1 4,511,615 4,828,443 5,597,359 4,818,740
Utility Users Tax 14,828,120 13,973,744 13,475,915 13,892,200 Hotel Tax 7,807,273 7,995,188 6,387,495 2,292,480
Vehicle In-Lieu 11,822,917 12,540,784 13,356,044 14,380,453 Parking Fines 6,608,001 6,002,211 3,900,595 3,571,391
Moving Violations 188,443 177,824 200,894 131,756
Interest 3,638,989 4,334,404 6,702,564 5,917,722
Ambulance Fees 4,343,453 4,424,808 4,996,193 3,081,204
Franchise Fees 2,009,931 1,821,316 1,839,102 1,726,470
Other Revenue 18,446,960 18,662,025 20,074,732 18,514,060 Transfers 5,792,575 5,356,132 5,386,188 21,180,762
TOTAL $198,642,216 $208,462,620 $223,364,309 $232,028,200
Source: City of Berkeley Budget Office. Revenues were recorded using the budget basis of accounting (i.e., Cash).
Sales and Use Tax. The sales tax is an excise tax imposed on retailers for the privilege of selling or leasing tangible personal property. The use tax is an excise tax imposed for the storage, use, or other consumption of tangible personal property purchased from any retailer. The total sales tax rate within the City is currently 9.25%. The proceeds of sales and uses taxes imposed within the City are distributed by the State to various agencies, with the City receiving
1.0% of the amount collected.
Collection of the sales and use tax is administered by the California Department of Tax and Fee Administration (the “ CDTFA”). This process was formerly administered by the State Board of Equalization. The Taxpayer Transparency and Fairness Act of 2017, which took effect July 1, 2 017, restructured the State Board of Equalization and separated its functions among three separate entities: the State Board of Equalization, the CDTFA and the Office of Tax Appeals.
The State Board of Equalization will continue to perform the duties assig ned to it by the state Constitution, while all other duties will be transferred to the newly established CDTFA and the Office of Tax Appeals. CDTFA will handle most of the taxes and fees previously collected by the State Board of Equalization, including sales and use tax. According to the CDTFA, it distributes quarterly tax revenues to local jurisdictions (like the City) using the following method:
Using the prior year’s like quarterly tax allocation as a starting point, the CDTFA first eliminates nonr ecurring transactions such as fund transfers, audit payments and refunds, and then adjusts for growth, in order to establish the estimated base amount.
The CDTFA disburses 90% of the base amount to each local jurisdiction in three monthly installments (advances) prior to the final computation of the quarter’s actual receipts. Ten percent is withheld as a reserve against unexpected occurrences that can affect tax
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collections (such as earthquakes, fire or other natural disaster) or distributions of revenue such as unusually large refunds or negative fund transfers. The first and second advances each represent 30% of the 90% distribution, while the third advance represents the remaining 40%. One advance payment is made each month, and the quarterly reconciliation payment (clean-up) is distributed in conjunction with the first advance for the subsequent quarter. Statements showing total collections, administrative costs, prior advances and the current advance are provided with each quarterly clean-up payment.
The CDTFA receives an administrative fee based on the cost of services provided by the Board to the City in administering the City’s sales tax, which is deducted from revenue generated by the sales and use tax before it is distributed to the City.
Sales tax revenues increased $0.7 million or 4.1% to $17.6 million in in fiscal year 2020 - 21 from $16.9 million in fiscal year 2019 -20 and were being significantly impacted by the Governor’s shelter in place orders issued in March 2020, as almost all busine ss-related activity came to a halt. The City currently projects that sales tax revenue will increase by 14.4% and 8.4%, respectively in fiscal years 2021-22 and 2022-23.
CITY OF BERKELEY
TAXABLE TRANSACTIONS
(Figures in Thousands)
2017 2018 2019 2020 2021
Retail and Food Services:
Apparel Stores $52,645 $52,991 $42,772 $20,385 $37,002
Gen. Merchandise Stores 17,178 20,782 21,434 16,902 19,066 Food Stores 150,894 149,662 155,025 169,569 162,717
Eating and Drinking Places 371,299 374,792 391,474 208,146 282,810 Home Furnishings and Appliances 72,358 69,746 66,188 45,479 69,016 Bldg. Materials, Farm Implements 107,333 109,052 101,937 113,116 141,793 Auto Dealers, Auto Supplies 117,513 119,883 119,679 94,927 114,160 Gas/Service Stations 84,041 93,694 94,217 57,950 87,761 Other Retail Stores 243,881 262,209 261,020 188,434 236,204 Total Retail and Food Services 1,217,142 1,252,813 1,263,746 914,910 1,150,530 All Other Outlets 364,736 361,292 372,108 315,081 341,752 TOTAL ALL OUTLETS $1,581,878 1,614,105 $1,635,854 $1,229,990 $1,492,282
Source: State Department of Tax and Fee Administration.
Factors that have historically affected sales tax revenues include the overall economic growth of the Bay Area, competition from neighboring cities, the growth of specific industries within the City, the City’s business attraction and retention efforts, and catalog and Internet sales.
Utility Users Tax. The City imposes a 7.5% tax on users of gas, electricity and telephone, as well as cellular telephone services for billing addresses within the City. The tax is not applicable to State, County, or City age ncies, or to insurance companies and banks. Some of the factors affecting this revenue stream include consumer demand for these utilities, legislative and regulatory action, rate changes, and the evolution of technology. Approximately 62% of the utility users tax revenue is generated from utility usage from gas and electric services and 38% from telecommunications during fiscal year 2019-20. For fiscal year 2020-21, utility users tax revenue totaled $13.8 million, which was $0.3 million or 2.4% more than the $13.5 million received in fiscal year 2019 -20. Utility users tax is projected to level off in fiscal years 2021 -22 and 2022- 23, respectively.
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Business License Tax. The City requires all businesses within the City to be licensed and imposes a business license tax on all business locations and a new license registration fee on applicants for a new license. The annual tax is generally determined based on the type of business and the business’s gross receipts. The tax rate varies between $0.60 per $1,000 gross receipts for grocers, on the low end, and $50.00 per $1,000 gross receipts for adult cannabis sales on the high end. Most types of businesses are required to pay a minimum tax of at least $51 per year. The overall revenue from this tax is dependent on the number of license renewals each year and the growth of businesses and industries within the City and the Bay Area more generally. The City is currently projecting an increase by 5% in fiscal year 2022-23.
Property Transfer Tax. The City’s transfer tax rate is 1.5% for properties with a consideration up to $1.5 million and 2.5% for transferred properties with a consideration over $1.5 million. The $1.5 million threshold will be adjusted annually to capture approximately the top 33% of such transfers based on transfers that occurred in the 12 months preceding September 1 of the preceding year. However, the threshold cannot be reduced below $1.5 million, meaning that the tax on properties transferred for $1.5 million or less would remain at 1.5%, notwit hstanding any adjustment. The tax is due when the transfer is recorded with the County. Title companies collect the tax as part of the sale closing process and remit the funds to the County when sales or transfers are finalized. The County remits the amounts due monthly, and the amounts are credited to the general fund. A buyer of residential housing built before 1989 may voluntarily choose to reserve up to one-third of the transfer tax to perform seismic upgrades. Buyers typically have up to one year to complete the work and file for a rebate. Previously, title companies held the reserved amount in escrow until the work was completed, but since May 2007, the City has held the money in escrow accounts, with the interest going to the City.
Prior to fiscal year 2017-18, it was the City Council’s policy that property transfer tax in excess of $10.5 million was treated as one -time revenue to be transferred to the Capital Improvement Fund for capital infrastructure needs, but that amount was increased to $12.5 million in fiscal year 2017-18.
Parking Fines. The City issues and adjudicates citations and civil penalties for parking violations through its own administrative structure. It has a great degree of control over the administration of parking fines, although issuing agencies within the County try to standardize parking penalties to the extent possible. Revenue from parking fines is affected by the penalties imposed for violations, the number of employees issuing tickets, how many tickets employees are able to issue, and the number of working parking meters, among other factors. Currently, the City must remit an additional $12.50 per citation to the State/County for State and County construction funds, Maddy emergency medical fund, and DNA identification fund.
Vehicle in Lieu Fees. Vehicle license fees (“VLF”) imposed for the operation of vehicles on state highways are collected by the State Department of Motor Vehicles in lieu of personal property taxes on vehicles. In connection with the offset of the VL F, the State Legislature authorized appropriations from the State General Fund to “backfill” the offset so that local governments, which receive all of the vehicle license fee revenues, would not experience any loss of revenues. The legislation that establ ished the VLF offset program also provided that if there were insufficient State General Fund moneys to fully “backfill” the VLF offset, the percentage offset would be reduced proportionately (i.e., the license fee payable by drivers would be increased) to assure that local governments would not be underfunded.
As part of the 2004 Budget Act negotiations, an agreement was made between the State and local government officials under which the VLF rate was permanently reduced from 2% to
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0.65%. In order to protect local governments, the reduction in VLF revenue to cities and counties from this rate change was replaced by an increase in the amount of property tax they receive.
Commencing in fiscal year 2004 -05, local governments began to receive their full share of replacement property taxes, and those replacement property taxes now enjoy constitutional protection against certain transfers by the State because of the approval of Proposition 1A at the November 2004 election.
As a part of its fiscal year 2009 -10 budget, California increased the vehicle license fee from 0.65% to 1.15% for registration fees due on or after the May 19, 2009 special election. This provision expired on July 1, 2011. On July 1, 2011, vehicle license fees returned to 0.65%, and the City is unaware of any current State legislative efforts likely to increase these in fees in the future.
Vehicle in-lieu taxes increased $1.0 million or 7.7% in fiscal year 2020-21 to $14.4 million from $13.4 million in fiscal year 2020 -21. This was consistent with the 7.7% increase in fiscal year 2020-21 assessed values reported by the County.
Other Revenues. The City also collects additional general fund revenues from franchise fees, transient occupancy taxes, ambulance fees, a tax on sugar -sweetened beverages, and other more minor sources. Under the City’s cable and electric and gas franchise fee arrangements, the local cable provider pays an annual franchise fee of 5% of gross revenues, and the electricity and gas providers pay the greater of 2% of gross receipts attributable to miles of line operated or 0.5% of gross receipts. The transient occupancy tax, also known as the hotel tax, is a 12% tax on the room charge for rental of transient lodging, which was significantly reduced due to restrictions on tra vel and events due to COVID -19. The City also has an agreement with the County to be the exclusive provider of all emergency ground ambulance services within the City; the specific ambulance fee depends on the type of service delivered and is billed to clients or their insurance companies. Finally, other more minor revenue sources include payments for moving violations, interest on existing funds, and other service fees.
Retirement Programs
PERS Plan Description . The City contributes to three plans in California Public Employees’ Retirement System (“PERS”). The first plan covers all of the City’s full-time and part- time benefited sworn uniformed fire employees and all chiefs (and is referred to as the Safety Fire Plan in this Official Statement). The second covers all of the City’s full-time and part-time benefited sworn uniformed police employees and all chiefs (and is referred to as the Safety Police Plan in this Official Statement). The third plan covers all remaining eligible City employees (and is referred to as the Miscellaneous Plan in this Official Statement). These plans are agent multiple-employer defined benefit pension plans administered by PERS, which acts as a common investment and administrative agent for participating public employers within the State of California.
PERS Plan Eligibility. For a more detailed discussion of the eligibility requirements for the City’s PERS retirement plans, see Appendix B, Note 12.
PERS Plan Contributions. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the PERS Board of Administration (the “ Board of Administration”). For the measurement period ended June 30, 2021 (the measurement date), the average active employee contribution rate is 8.0% of annual pay for the Miscellaneous Plan and 9.0% of annual pay for the Safety Plan (Fire and Police), and the employer contribution rate
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is 32.500% of annual payroll for the Miscellaneous Plan, 48.200% of annual payroll for the Public Safety Fire Plan, and 66.600% of annual payroll for the Public Safety Police Plan. The contribution requirements of the plan members are established by State statute, and the employer contribution rates are established and may be amended by PERS.
Implementation of GASB Nos. 68. Commencing with fiscal year ended June 30, 2015, the City implemented the provisions of GASB Statement Nos. 68, which require certain new pension disclosures in the notes to its audited financial statements commencing with the audit for fiscal year 2014-15. Statement No. 68 generally requires the City to recognize its proportionate share of the unfunded pension obligation by recognizing a net pension liability measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. As a result of the implementation of GASB Statement Nos. 68, the City reflected a restatement of its beginning net position as of July 1, 2014.
For a more detailed discussion of the eligibility requirements for the City’s retirement plans, see Appendix B, Note 12 for detailed information about the actuarial assumptions underlying the contributions. The City’s fiscal year 2020 -21 contributions to the pension plans and the funded status of the pension plans are set forth below.
Fiscal Year
Ended
Total Pension
Liability
Plan
Fiduciary
Net Position
Net Pension
Liability
Plan
Fiduciary Net
Position as a
Percentage
of the Total
Pension
Liability
Covered
Employee
Payroll
Plan Net
Pension
Liability as a
Percentage
of Covered
Employee
Payroll
Contributions
Employer
PERS – Miscellaneous Plan
6/30/2020 $1,115,293,404 $787,103,725 $328,189,679 70.57% $100,639,199 326.11% $24,065,716
PERS – Public Safety Fire Plan
6/30/2020 $290,583,174 $207,608,776 $82,974,398 71.45% $17,619,953 470.91% $8,703,901
PERS – Public Safety Police Plan
6/30/2020 $444,977,237 $275,649,869 $169,327,368 61.95% $21,101,838 802.43% $10,777,599
Recent Actions by PERS. At its April 17, 2013, meeting, the Board of Administration approved a recommendation to change the PERS amortization and smoothing policies. Prior to this change, PERS employed an amortization and smoothing policy that spread investment returns over a 15 -year period with experience gains and losses paid for over a rolling 30 -year period. After this change, PERS will employ an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period. The new amortization and smoothing policy were used for the first time in the June 30, 2013, actuarial valuations in setting employer contribution rates for fiscal year 2015-16.
On February 18, 2014, the Board of Administration approved new demographic actuarial assumptions based on a 2013 study of recent experience. The largest impact, applying to all benefit groups, is a new 20 -year mortality projection reflecting longer life expectancies and that longevity will continue to increase. Because retirement benefits will be paid out for more years, the cost of those benefits will increase as a result. The Board of Administration also assumed earlier retirements for Police 3%@50, Fire 3%@55, and Miscellaneous 2.7%@55 and 3%@60,
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which will increase costs for those groups. As a result of these changes, rates will increase beginning in fiscal year 2016-17 (based on the June 30, 2014 valuation) with full impact in fi scal year 2020-21.
On November 18, 2015, the Board of Administration adopted a funding risk mitigation policy intended to incrementally lower its discount rate - its assumed rate of investment return - in years of good investment returns, help pay down the pension fund's unfunded liability, and provide greater predictability and less volatility in contribution rates for employers. The policy establishes a mechanism to reduce the discount rate by a minimum of 0.05 percentage points to a maximum of 0.25 percentage points in years when investment returns outperform the existing discount rate, currently 7.5%, by at least four percentage points. PERS staff modeling anticipates the policy will result in a lowering of the discount rate to 6.5% in about 21 years, improve funding levels gradually over time and cut risk in the pension system by lowering the volatility of investment returns. More information about the funding risk mitigation policy can be accessed through PERS’ web site at the following website addres s: https://www.calpers.ca.gov/page/newsroom/calpers - news/2015/adopts-funding-risk-mitigation-policy. The reference to this Internet website is provided for reference and convenience only. The information contained within the website may not be current, has not been reviewed by the City and is not incorporated in this Official Statement by reference.
On December 21, 2016, the Board of Administration voted to lower its discount rate from the current 7.5% to 7.0% over three years according to the following schedule.
Fiscal Year Discount Rate
2018-19 7.375%
2019-20 7.250
2020-21 7.000
For public agencies like the City, the new discount rate would take effect July 1, 2018.
Lowering the discount rate means employers that contract with PERS to administer their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Active members hired after January 1, 2013, under the Public Employees' Pension Reform Act will also see their contribution rates rise. The three -year reduction of the discount rate will result in average employer rate increases of about 1 percent to 3 percent of normal cost as a percent of payroll for most miscellaneous retirement plans, and a 2 percent to 5 percent increase for most safety plans.
Additionally, many PERS employers will see a 30 to 40 percent increase in their current unfunded accrued liability payments. These payments are made to amortize unfunded liabilities over 20 years to bring the pension fund to a fully funded status over the long-term.
On November 15, 2021 the CalPERS Board selected a new asset allocation mix that will guide the fund’s investment portfolio for the next four years, while at the same time retaining the reduction of discount rate from 7.0% to 6.8%. Notable changes for employers include a decrease in median total employer contribution rates, from less than 1% in miscellaneous plans to a decrease of more than 2% in some safety plans. Contribution changes will take effect in fiscal year 2023-24 for public agencies.
Dollar Contribution Based on Projected PERS Rate Increases . The City’s projected annual financial contributions as a result of the PERS rate changes for the next four years are shown in the table below, with dollar amounts shown in millions:
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2019-20 2020-21 2021-2022
Projected
2022-2023
Projected
Miscellaneous(1) $33.67 $36.55 $41.83 $43.30
Police 16.27 17.6 18.58 19.16
Fire 8.78 9.46 9.55 9.90
Total $58.72 $63.61 $69.96 $72.36
(1) Miscellaneous includes the 8% employee share paid by the City on behalf of the employees and negotiated employee contributions to the City’s rate.
Berkeley Police Retirement Income Benefit Plan. Prior to December 22, 2012, the City maintained the Berkeley Police Retirement Income Benefit Plan (“ BPRIBP”), a single-employer defined benefit income plan, for its police retirees and surviving spouses. Effective September 19, 2012, police retired on or after this date are no longer covered by BPRIBP. The City replaced this plan with the “Retiree Health Premium Assistance Coverage Plan.”
The City’s fiscal year 2020-21 contribution to the BPRIBP and the funded status of the BPRIBP is set forth below.
Fiscal Year
Ended
Total Pension
Liability
Plan Fiduciary
Net Position
Plan Net
Pension
Liability
Plan
Fiduciary Net
Position as a
Percentage
of the Total
Pension
Liability
Covered
Payroll
Plan Net
Pension
Liability as a
Percentage
of Covered
Employee
Payroll
Contributions
Employer
6/30/2021 $81,521,206 $5,623,753 $75,897,453 6.90% $21,718,842 379.40% $2,150,175
For a more detailed discussion of the BPRIBP, see APPENDIX B to this Official Statement.
Peace Officers Research Association of California. Effective December 23, 2012, the City established a new sick leave program called Peace Officers Research Association of California (“PORAC”). If a sworn member of the Berkeley Police department has an accrued sick leave balance on December 23, 2012 that exceeds 200 hours, one half of all those hours in excess of 200 shall be maintained in a separate account. The financial value of those hours shall be converted and deposited into the employee’s PORAC medical trust account over five successive years in equal installments commencing on January 1, 2013. The conversion was at the employee’s rate of pay on December 23, 2012. The City may accelerate the payment of hours to be converted. The remaining fifty percent of the sick leave balance in excess of 200 hours was credited into the employee’s separate “catastrophic/service time” bank no later than February 1, 2013, up to a maximum of 500 hours.
The City’s contribution to PORAC for the calendar year ending December 31, 2021 was $420,828.
Safety Members Pension Fund. In addition, the City maintains the Safety Members Pension Fund (“ SMPF”), a defined benefit plan for fire and police officers who retired prior to March 1973. In March 1973, all active fire and police officers were transferred from SMPF to PERS. The City pays the benefits to SMPF members on a pay-as-you-go basis, primarily through a Funding Agreement, purchased by the Berkeley Civic Improvement Corporation on behalf of the City in 1989. For the fiscal year ended June 30, 2021, the City’s contribution to SMPF was $480,630.
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The funded status of the SMPF as of June 30, 2021, the most recent actuarial date, is set forth below:
Actuarial
Valuation
Date
Plan
Fiduciary Net
Position
Total Pension
Liability
Plan Net
Pension
Liability
Plan
Fiduciary Net
Position as a
Percentage
of the Total
Pension
Liability
Covered
Payroll
Plan Net
Pension
Liability as a
Percentage
of Covered
Employee
Payroll
6/30/2021 -- $1,548,284 $1,548,284 --% N/A N/A
For a more detailed discussion of the SMPF, see APPENDIX B of this Official Statement.
Post-Employment Health Benefits
The City offers certain post-employment health benefits to retirees. There are three plans:
(i) the City of Berkeley Fire Employees Retiree Health Plan (“ FRHF”), (ii) the City of Berkeley Miscellaneous Employees Retiree Health Plan (“ RHPAP”) and (iii) the Police Retiree Premium Assistance Plan (“PRPAP”).
The City has adopted Government Accounting Standards Board Statement 75 which requires governmental agencies to change their accounting for Other Post-Employment Benefits (“OPEB”) from pay-as-you-go to an accrual basis.
See Appendix B, Note 3 for information about the City’s OPEB liabilities.
City of Berkeley Fire Employees Retiree Health Plan. The FRFH is a single-employer defined benefit medical plan. To be eligible for benefits, sworn Fire employees must ret ire from the City on or after July 1, 1997, be vested in a PERS pension, and retire from the City on or after age 50. Benefits commence immediately upon retirement. Benefits are payable for the retiree’s lifetime and continue for his or her covered spouse’s/domestic partner’s lifetime. The amount the City contributes toward the Fire Employees Retiree Health Plan is 4.5% per year regardless of the amount of increase in the underlying premium rate. The establishment and amendments of benefit provisions are negotiated between the employee bargaining units and the City Labor Negotiating Team, and are approved by the City Manager and City Council. As of June 30, 2021, there were 124 active employees, 65 retirees deferred and 30 retirees receiving benefits.
The City’s targeted funding policy is equal to the service cost for active employees plus an amount to amortize unfunded liabilities over 30 years (rolling 30-year amortization) as a level percentage of payroll. The City strives to contribute the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45.
For the FRFH, the City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB asset f or fiscal year 2020 -21 and the four preceding years were as follows:
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Fiscal Year
Ended Annual OPEB Cost
Percentage of
Annual OPEB Cost
Contributed
Net OPEB
Liability
6/30/2017 $1,991,925 43% $17,530,174
6/30/2018 2,163,028 34 17,251,382
6/30/2019 2,326,493 36 19,633,312
6/30/2020 2,104,622 36 21,177,486
6/30/2021 2,575,970 35 23,873,248
The funded status of the FRFH as of June 30, 2021, the date of the most recent actuarial report, is set forth below:
Actuarial
Valuation
Date
Actuarial
Value of
Assets
Actuarial
Accrued
Liability (AAL)-
Unit Credit
Unfunded
Actuarial
Accrued
Liability-
UAAL
Funded
Ratio
Covered
Payroll
UAAL
as
Percentage
of covered
Payroll
7/1/2020 $12,657,941 $36,531,189 $23,873,248 34.6% $15,282,868 156.21%
City of Berkeley Miscellaneous Employees Retiree Health Premium Assistance Plan. The RHPAP is a single -employer defined benefit medical plan. It provides retiree health benefits to eligible retirees and his/her spouse or domestic partner. The establishment and amendments of benefit provisions are negotiated between the employee bargaining units and the City and are approved by the City Council.
Retirees who are at least age 50, with at least 8 years of service with the City at the time of separation from service are eligible to receive retiree health benefits commencing at age 55.
Benefits are payable for the retiree’s lifetime and continue for h is or her covered spouse’s/domestic partner’s lifetime. The City pays the monthly cost of the monthly premiums up to a participant’s applicable percentage of the base dollar amount and subject to annual 4.5% increases regardless of the amount of increase i n the underlying premium rate. As of June 30, 2021, there were 1,086 active employees.
The City’s targeted funding policy is equal to the normal cost for active employees plus an amount to amortize unfunded liabilities over 30 years as a level percentage of payrolls. The City is required to contribute the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. Any changes to the contribution requirements of the plan are negotiated by the bargaining units and City negotiating staff, and approved by the City Council.
For the RHPAP, the City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2020-21 and the four preceding years were as follows:
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Fiscal Year
Ended
Annual
OPEB Cost
Percentage of
Annual OPEB Cost
Contributed
Net OPEB
Obligation
6/30/2017 $4,610,828 72.7% $37,900,578
6/30/2018 4,729,448 42.3 34,215,614
6/30/2019 5,051,655 43.3 37,219,746
6/30/2020 5,534,572 32.7 60,659,492
6/30/2021 4,871,995 42.9 41,895,470
The funded status of the RHPAP as of June 30, 2021, the most recent actuarial report, is set forth below:
Actuarial
Valuation
Date
Actuarial
Accrued
Liability (AAL)
Actuarial
Value of
Assets
Unfunded
Actuarial
Accrued
Liability-
UAAL
Funded
Ratio
Covered
Payroll
UAAL
as
Percentage
of covered
Payroll
7/1/2021 $73,385,473 $31,490,003 $41,895,470 42.9% $99,542,579 42.09%
Police Retiree Premium Assistance Plan. Effective September 19, 2012, the City replaced the “Berkeley Police Retirement Income Benefit Plan” with the “Retiree Health Premium Assistance Coverage Plan” for any police employees hired on or after that date, as well as any current employees who retire on or after such date. Under the newly established retiree health premium assistance plan, benefits will be the paid by the City directly to the provider who is providing retiree health coverage to the retiree or his or her surviving spouse. The maximum amount will be equal in value to the City sponsored health plan.
In order to be eligible for the Retiree Health Premium Assistance Coverage a “Retiree” must meet all of the following criteria:
(a) A person who is vested in, and
(b) Has reached the age of 50, and
(c) Has retired from the City at age 50 or thereafter, and (d) Has applied for and is receiving a pension from at the time of retirement.
The maximum amount the City will contribute toward the payment of medical insurance premiums is based on the employee’s years of service as a sworn member of the Berkeley Police Department at time of retirement. The retiree must have at least 10 years of service as a sworn member of the Berkeley Police Department to qualify for this benefit.
Years of Service City Percentage
10 to 14 25%
15 to 19 50
20 or more 100
Beginning September 19, 2012, each month after the employee retires the City will pay the health care service provider an appropriate percentage based on years of service above an amount equal to $1,200 per month for two -party coverage for the retiree and a qualifying spouse/domestic partner or $600 per month for single party coverage. Upon death of either the retiree or the retiree’s spouse, the City will only pay the appropriate percentage of the single party rate to the provider on behalf of the survivin g retiree or spouse/domestic partner. If there is no spouse/domestic partner at the time of retirement, the City shall only pay the single party rate.
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The retiree and/or surviving spouse/domestic partner will be responsible for payment of the difference between the amount the City contributes toward payment of the premium and the actual premium cost. The funds for this difference will come from the retiree’s retirement account and the retiree must authorize such withdrawal of funds.
Beginning July 1, 2013 and effective each July 1 thereafter, the base rates the City contributes toward payment of the premium amount described in the preceding paragraph shall be increased by either the amount Kaiser increases the retiree medical premium for that year, or 6%, whichever is less. The retiree and/or surviving spouse/domestic partner shall pay the difference between the amount the City contributes toward payment of the premium and the actual premium cost. As of June 30, 2020, there were 158 active employees, 16 active retirees, and 15 retirees entitled to, but not yet receiving, benefits.
For the retiree health premium assistance plan, the City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB asset for fiscal year 2020-21 and the four preceding years were as follows:
Fiscal Year
Ended Annual OPEB Cost
Percentage of
Annual OPEB Cost
Contributed
Net OPEB
Liability
6/30/2017 $5,105,429 11.0% $45,508,847
6/30/2018 4,929,429 6.0 41,652,588
6/30/2019 5,155,293 6.0 46,252,565
6/30/2020 4,432,549 4.0 57,472,394
6/30/2021 5,076,625 4.0 49,355,501
The actuarial cost method used for determining the benefit obligations is the Projected Unit Credit Cost Method. Under this method, the actuarial present value of projected benefits is the value of benefits expected to be paid for current actives and retirees and is calculated based on the assumptions and census data described this report. The Actuarial Accrued Liability (AAL) is the actuarial present value of benefits attributed to employee service rendered prior to the valuation date. The AAL equals the present value of benefits multiplied by a fraction equal to service to data over service at expected retirement. The Normal C ost is the actuarial present value of benefits attributed to one year of service. This equals the present value of benefits divided by service at expected retirement. Since retirees are not accruing any more service, their normal cost is zero. In determining the Annual Required Contribution, the Unfunded AAL is amortized as a level percentage of payroll over 30 years.
As of July 1, 2020, the most recent actuarial valuation date, the plan was 5.0% funded.
The actuarial accrued liability for benefit was $51.9 million, and the actuarial value of assets was $2.6 million, resulting in an unfunded accrued liability of $49.4 million. The covered payroll (annual payroll of active employees covered by the plan) was approximately $21.7 million. The fair value of the assets was determined using market values as of the date of the actuarial report.
The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information abou t whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Funded status of the plan as of June 30, 2021, the most recent actuarial valuation date is as follows:
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Actuarial
Valuation
Date
Actuarial
Value of
Assets
Actuarial
Accrued
Liability (AAL)-
Unit Credit
Unfunded
Actuarial
Accrued
Liability-
UAAL
Funded
Ratio
Covered
Payroll
UAAL
as
Percentage
of covered
Payroll
7/1/2021 $2,581,188 $51,936,689 $49,355,501 5.0% $21,718,889 227.2%
Defined Contribution Plans
The City offers certain supplemental retirement and income plans to retirees. See Appendix B, Note 12 for information about the City’s defined contribution plans.
Labor Relations
As of February 28, 2022, the City employed approximately 1,794.91 full -time equivalent budgeted employees. There are six employee unions as shown below. In addition, the City employs approximately 519 unrepresented employees that include Executive Management, Confidential professional or Confidential Office support positions. The City has not experienced any work stoppages or strikes by its employees.
CITY OF BERKELEY
Labor Relations
Labor Organization Employees
Contract Expiration
Date
Berkeley Fire Fighters Association/I.A.F.F. Local 1227 132 6/30/2023 Berkeley Police Association 150 6/30/2023
I. B. E. W. Local 1245 8 6/27/2022
Service Employees International Local 1021 Maintenance and Clerical Chapters
444 6/26/2024
Service Employees International Local 1021 Community Services and Part-Time Recreation Leaders Association Chapters
493 6/26/2024
Public Employees Local 1 187 6/27/2024
Unrepresented Employees _519__ n/a
Source: City of Berkeley.
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, or restriction of assets; errors or omissions; injuries to employees; or acts of God.
The City is self -insured for liability claims below $350,000. The City is a member of the Bay Cities Joint Powers Insurance Authority (“BCJPIA”). The BCJPIA consists of 20 municipal or public agency members, all located within the metropolitan San Francisco Bay Area. The BCJPIA provides general liability, auto liability, and errors and omissions coverage between $350,000 and $1,000,000. The California Affiliated Risk Management Authority (“CARMA”) provides additional coverage to the BCJPIA and its member entities for claims in excess of $1,000,000, up to $29,000,000.
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The City is self-insured for workers’ compensation. Payments are made to the Workers’ Compensation Self-Insurance Internal Service Fund by transfers from the City’s general fund and other funds of the City on a pay-as-you-go basis.
The City requires pre -employment physical examinations for high risk, high hazard employees as well as annual examination for all uniformed officers. As part of its workers’ compensation program, copies of all injured employee medical reports are monitored by a third - party agent to ensure that injured employees receive proper care.
At June 30, 2021, $4,923,541 and $36,538,000 have been accrued for public liability, and workers’ compensation claims, respectively. These accruals represent estimates of amounts to ultimately be paid for reported claims and, upon past experience, recent claim settlement trends and other information. It is the City’s practice to obtain an actuarial study on an annual basis.
Although the amount of actual losses incurred through June 30, 2021 are dependent on future developments, based upon information from the administrators and others involved with the administration of the programs, the City’s management believes that the aggregate accrual is adequate to cover such losses.
City Debt Structure
Short-Term Debt. The City has issued Tax and Revenue Anticipation Notes (“TRANs”) in each recent year. The City’s TRANs are a general obligation of the City, payable from the City’s general fund and any other lawfully available moneys. The fiscal year 2021- 22 TRANs have an outstanding principal amount of $44,660,000 and mature on July 25, 2022.
General Fund Obligations. The City currently has outstanding long -term General Fund debt and lease obligations described below. The City has never defaulted on the payment of principal of or interest on any of its indebtedness.
Certificates of Participation . On June 2, 2021, Berkeley Joint Powers Financing Authority (the “ Authority”) executed and delivered certificates of participation in the aggregate principal amount of $3,975,000 (the “Certificates of Participation”). The City’s underlying rental obligation is a general fund obligation of the City. The bonds bear interest at rates between 2.00%-5.00%, and the final maturity date is October 1, 2031. As of April 1, 2022, the principal balance outstanding was $3,975,000.
Lease Revenue Bonds. In October 2012, Authority issued lease revenue bonds on behalf of the City in the aggregate principal amount of $27,260,000 to refund the Authority’s 1999 Lease Revenue Bonds and 2003 Certificates of Participation. The City’s underlying rental obligation is a general fund obligation of the City. The bonds bear interest at rates between 3.00%-5.00%, and the final maturity date is October 1, 2037. As of April 1, 2022, the principal balance outstanding was $16,445,000 General Obligation Bonds . The City has previously issued general obligation and general obligation refunding bonds that are secured by ad valorem taxes levied and collected in the City. See “DEBT SERVICE SCHEDULES. - Combined Debt Service Schedule” in the front part of this Official Statement for a summary of the City’s outstanding general obligations.
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Employment
The unemployment rate in the Oakland -Hayward-Berkeley MD was 2.9% in April 2022, down from a revised 3.3% in March 2022, and below the year-ago estimate of 7.0%. This compares with an unadjusted unemployment rate of 3.8% for California and 3.3% for the nation during the same period. The unemployment rate was 2.8% in the County an d 3.1% in Contra Costa County.
The table below list employment by industry group for Alameda and Contra Costa Counties for the years 2017 to 2021.
OAKLAND- HAYWARD-BERKELEY MD
(Alameda and Contra Costa Counties)
Annual Averages Civilian Labor Force, Employment and Unemployment, Employment by Industry
(March 2021 Benchmark)
2017 2018 2019 2020 2021
Civilian Labor Force (1) 1,396,000 1,401,700 1,403,400 1,362,300 1,352,300 Employment 1,343,400 1,357,700 1,360,500 1,239,100 1,268,700 Unemployment 52,600 44,000 42,900 123,200 83,600
Unemployment Rate 3.8% 3.1% 3.1% 9.0% 6.2%
Wage and Salary Employment: (2)
Agriculture 1,400 1,300 1,400 1,500 1,600
Mining and Logging 200 200 200 200 200
Construction 71,200 74,900 75,500 70,700 73,000
Manufacturing 95,700 100,600 101,000 98,700 105,200
Wholesale Trade 48,700 47,500 45,400 42,100 41,300
Retail Trade 114,400 114,500 111,800 101,100 105,300
Transportation, Warehousing, Utilities 41,300 42,300 43,700 45,200 48,600 Information 26,900 27,600 27,600 25,800 25,000
Finance and Insurance 38,900 37,500 37,200 35,900 34,700 Real Estate and Rental and Leasing 17,400 17,800 18,100 16,700 16,800 Professional and Business Services 184,500 189,500 193,200 184,800 189,900 Educational and Health Services 191,500 194,300 198,400 191,300 198,200 Leisure and Hospitality 114,900 117,700 121,000 84,700 91,700 Other Services 40,200 41,000 41,200 33,100 35,000
Federal Government 13,800 13,400 13,400 14,200 13,500
State Government 39,300 39,400 39,600 38,200 37,900
Local Government 121,500 121,800 121,800 113,500 111,900 Total, All Industries (3) 1,161,800 1,181,300 1,190,300 1,097,700 1,129,700
(1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(3) Totals may not add due to rounding.
Source: State of California Employment Development Department.
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The following tables show the major employers in the City and the County.
CITY OF BERKELEY
Major Employers
2021
Employer
Number of
Employees
% of Total
Employment
University of California Berkeley 13,699 20.26%
Lawrence Berkeley National Laboratory 3,836 5.67
Sutter East Bay Medical Foundation/Hospitals 2,040 3.02 City of Berkeley 1,480 2.19
Bayer Corporation 1,082 1.60
Berkeley Unified School District 865 1.28
Kaiser Permanente Medical Group 771 1.14
Siemens Corporation/Healthcare Diagnostics, Inc. 678 1.00 Berkeley Bowl Produce 558 0.83
Lifelong Medical Care 441 0.65
Source: City of Berkeley, Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2021.
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COUNTY OF ALAMEDA
Major Employers (Listed Alphabetically)
June 2022
Employer Name Location Industry
Alameda County Law Enforcement Oakland Government Offices-County Alameda County Sheriff's Ofc Oakland Sheriff
Alameda Health System San Leandro Health Care Management Alta Bates Summit Med Ctr Alta Berkeley Hospitals
Alta Bates Summit Med Ctr Lab Oakland Laboratories-Medical BART PD Oakland Transit Lines
California State Univ East Bay Hayward Schools-Universities & Colleges Academic Cooper Vision Inc Pleasanton Optical Goods-Wholesale
Dell EMC Pleasanton Computer Storage Devices (mfrs)
East Bay Mud Oakland Water & Sewage Companies-Utility
Ebmud Oakland Utilities
Grifols Diagnostic Solutions Emeryville Pharmaceutical Research Laboratories Highland Hospital Oakland Hospitals
Kaiser Permanente Oakland Med Oakland Hospitals
Lawrence Berkeley Lab Berkeley Laboratories-Research & Development Lawrence Livermore Natl Lab Livermore University-College Dept/Facility/Office San Francisco Bay Area Rapid Transit Oakland Transit Lines Transportation Dept-California Oakland Government Offices-State UCSF Benioff Children's Hosp Oakland Hospitals
University of CA Berkeley Berkeley Schools-Universities & Colleges Academic University of CA-BERKELEY Berkeley University-College Dept/Facility/Office University-Ca-Berkeley Dept Berkeley University-College Dept/Facility/Office Valley Care Health System Livermore Health Services
Washington Hospital Healthcare Fremont Health Care Management Western Digital Corp Fremont Computer Storage Devices (mfrs)
Source: State of California Employment Development Department, extracted from The America's Labor Market Information System (ALMIS) Employer Database, 2022 2nd Edition.
Effective Buying Income
“Effective Buying Income” is defined as personal income less personal tax and nontax payments, a number often referred to as “disposable” or “after -tax” income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor’s income, rental income (which includes imputed rental income of owner -occupants of non- farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance).
Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as “disposable personal income.” The following table summarizes the total effective buying income for the City of Berkeley, the County of Alameda, the State and the United States for the period 2018 through 2022.
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CITY OF BERKELEY AND COUNTY OF ALAMEDA
Effective Buying Income
As of January 1, 2018 through 2022
Year
Area
Total Effective
Buying Income
(000’s Omitted)
Median
Household
Effective Buying
Income
2018 Berkeley $5,070,468 $66,382
Alameda County 61,987,949 73,633
California 1,113,648,181 59,646
United States 8,640,770,229 50,735
2019 Berkeley $5,517,451 $72,412
Alameda County 67,609,653 79,446
California 1,183,264,399 62,637
United States 9,017,967,563 52,841
2020 Berkeley $5,843,576 $76,294
Alameda County 72,243,436 84,435
California 1,243,564,816 65,870
United States 9,487,165,436 55,303
2021 Berkeley $6,203,796 $79,437
Alameda County 77,794,202 88,389
California 1,290,894,604 67,956
United States 9,809,944,764 56,790
2022 Berkeley $6,646,946 $88,676
Alameda County 85,225,529 99,940
California 1,452,426,153 77,058
United States 11,208,582,541 64,448
Source: The Nielsen Company (US), Inc for 2018; Claritas, LLC for 2019 through 2022.
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Construction Activity
Provided below are the building permits and valuations for the City of Berkeley for calendar years 2017 through 2021.
CITY OF BERKELEY
Total Building Permit Valuations
(Valuations in Thousands)
2017 2018 2019 2020 2021
Permit Valuation
New Single-family $14,776.2 $13,808.7 $9,666.3 $6,444.7 $13,533.1 New Multi-family 47,723.2 24,506.9 7,513.6 12,643.5 53,032.6 Res. Alterations/Additions 45,215.9 80,130.0 40,596.9 26,204.9 47,099.2 Total Residential 107,715.3 118,445.6 57,776.8 45,293.1 113,664.9
New Commercial 24,576.3 18,732.1 10,816.3 25,867.1 15,167.2 New Industrial 0.0 0.0 0.0 0.0 0.0
New Other 3,636.5 3,236.6 4,718.7 272.0 1,760.3
Com. Alterations/Additions 26,597.7 52,522.6 12,885.4 23,290.5 65,213.8 Total Nonresidential 54,810.5 74,491.3 28,420.4 49,429.6 82,141.3
New Dwelling Units
Single Family 43 63 46 21 69
Multiple Family 402 129 42 117 286
TOTAL 445 192 88 138 355
Source: Construction Industry Research Board, Buildi ng
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APPENDIX B
THE CITY’S ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR YEAR ENDED JUNE 30, 2021
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APPENDIX C
FORM OF OPINION OF BOND COUNSEL
[to come]
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APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the “ Disclosure Certificate”) is executed and delivered by the City of Berkeley (the “ City”) in connection with the issuance by the City, of the $_________ City of Berkeley 2022-23 Tax and Revenue Anticipation Notes (the “Notes”). The Notes are being issued pursuant to a resolution adopted by the City Council of the City on June 28, 2022 (the “Resolution”). The City covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate . This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Notes and in orde r to assist the Participating Underwriters in complying with S.E.C. Rule 15c2 - 12(b)(5).
Section 2. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Dissemination Agent” shall mean NHA Advisors, LLC, or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation.
“Listed Events” shall mean any of the events listed in Section 3(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule.
“Participating Underwriter ” shall mean any of the original u nderwriters of the Notes required to comply with the Rule in connection with offering of the Notes.
“Rule” shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.
Section 3. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 3, the City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Notes:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties.
(4) Unscheduled draws on credit enhancements reflecting financial difficulties.
(5) Substitution of credit or liquidity providers, or their failure to perform.
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(6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security.
(7) Modifications to rights of security holders, if material.
(8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the securities, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person.
(13) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material.
(14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material.
(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties.
(b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Notes under the Resolution.
(c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), and (a)(14) of this Section 3 contain the qualifier
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“if material.” The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that the City determines the event’s occurrence is material for purposes of U.S. federal securities law.
(d) For purposes of this Disclosure Certificate , any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other pr oceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City.
(e) For purposes of Section 3(a)(15) and (16), “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as secu rity or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with the Rule.
Section 4. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Notes. If such termination occurs prior to the final maturity of the Notes, the City shall give notice of such termination in the same manner as for a Listed Event under Section 3(b).
Section 5. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent.
The initial Dissemination Agent shall be NHA Advisors, LLC.
Section 6. Amendment; Waiver . Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Section 3(a) it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Notes, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Notes, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and
(c) the proposed amendment or waiver either (i) is approved by holders of the Notes, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Notes.
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Section 7. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any notice of occurrence of a Listed Event in addition to that which is specifically required by this Disc losure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future notice of occurrence of a Listed Event.
Section 8. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate any holder or beneficial owner of the Notes may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obli gations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance.
Section 9. Duties, Immunities and Liabilities of Dissemination Agent . The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its pow ers and duties hereunder, including the costs and expenses (including attorneys ’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Notes.
Section 10. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriters and holders and beneficial owners from time to time of the Notes and shall create no rights in any other person or entity.
Date: _______, 2022
CITY OF BERKELEY
By
City Manager
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APPENDIX E
DTC AND THE BOOK-ENTRY ONLY SYSTEM
The following description of the Depository Trust Company (“ DTC”), the procedures and record keeping with respect to beneficial ownership interests in the Notes, payment of principal, interest and other payments on the Notes to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Notes and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.
Neither the issuer of the Notes (the “Issuer”) nor the trustee, fiscal agent or paying agent appointed with respect to the Notes (the “ Agent”) take any responsibility for the information contained in this Appendix.
No assurances can be given that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Notes, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Notes, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Notes, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current " Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC to be followed in dealing with DTC Participants are on file with DTC.
1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the “Securities”). The Securities will be issued as fully -registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount , and an additional certificate will be issued with respect to any remaining principal amount of such issue.
2. DTC, the world’s largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“ Direct Participants”) deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust
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companies, clearing corporations, and certain other organizations . DTC is a wholly- owned subsidiary of The Depository Trust & Clearing Corporation (“ DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in th e Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co. or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the act ual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
7. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI
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Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and interest payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts, upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent on payable date in accordan ce with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or r egistered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
9. DTC may discontinue providing its services as securities depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered.
10. Issuer may decide to discontinue use of the system of book -entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
11. The information in this section concerning DTC and DTC’s book- entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof.
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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
PUBLIC HEARING
June 28, 2022
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Liam Garland, Director, Public Works
Subject: goBerkeley SmartSpace Pilot Program Implementation Recommendations
RECOMMENDATION
Conduct a public hearing, and upon conclusion:
1. Adopt an Ordinance repealing and reenacting Berkeley Municipal Code Chapter
14.52 Parking Meters to enable demand-responsive paid parking for non-RPP permit holders in the 2700 blocks of Durant Avenue, Channing Way, and Haste Street and the 2300-2400 blocks of Piedmont Avenue (a portion of Residential Preferential Parking Program Area I) for the duration of the grant-funded goBerkeley SmartSpace pilot program, and allow payment via license plate entry pay stations (“pay-by-plate”) to improve convenience and enforcement; and
2. Adopt a Resolution approving the pilot proposals to be implemented and evaluated as part of the goBerkeley SmartSpace pilot program.
SUMMARY
The recommended actions are for the implementation of the goBerkeley SmartSpace pilot program, which will evaluate strategies to reduce the “two-hour shuffle” in residential areas adjacent to the Elmwood and Southside/Telegraph commercial districts.1 The two-hour shuffle occurs when those without permits re-park their vehicles every two hours to avoid being cited for parking longer than posted time limits. The new proposals reflect public input, and those marked with an asterisk (*) are recommended for Council approval based on spring 2022 community feedback.
Elmwood
Introduce a limited number of RPP parking passes for local employees* Facilitate a transit pass program for local employees* Test longer time RPP time limits
Southside/Telegraph
Implement a smaller visitor paid parking pilot closer to the UC Campus* 1 Berkeley City Council Resolution No. 67,382-N.S. https://bit.ly/3MfXO3q
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goBerkeley SmartSpace Pilot Program Implementation Recommendations PUBLIC HEARING June 28, 2022
Encourage business/employee parking in the Telegraph/Channing Garage* Facilitate a transit pass program for local employees* Introduce a limited number of RPP parking passes for local employees The pilot is expected to launch later this summer and conclude by the end of calendar year 2023.
FISCAL IMPACTS OF RECOMMENDATION
The SmartSpace pilot program is funded by a $950,000 Congestion Management and Air Quality (CMAQ) grant from the Federal Highway Administration (FHWA) via the Metropolitan Transportation Commission (MTC). The City is reimbursed for 80% of all eligible non-infrastructure pilot program expenses, with 20% supplemented by local match funding.
$100,000 in non-grant-related funding will be included in the FY 2023 Budget in the Parking Meter Fund (631-54-622-665-0000-000-472-612990- PWTRPK1401) pending the approval of the first Amendment to the Annual Appropriations, as part of a separate project to facilitate the implementation of the pilot.
CURRENT SITUATION AND ITS EFFECTS
Public engagement for the goBerkeley SmartSpace pilot program began in late 2019 with the launch of the project website2, public surveys, and in-person outreach. Staff also convened a Community Advisory Group in early 2020 to provide input on the pilot development and evaluation. With the advent of the coronavirus pandemic and shelter- in-place orders, the project was put on hold for approximately one year due to impacts on the local business community and commute patterns, two major factors in this study.
Outreach resumed in mid-2021 and included three sets of virtual community meetings held on Zoom, an online survey and a comment form on the project website, a presentation to the Transportation Commission, meetings with merchant and neighborhood groups, email updates to website sign-ups, and correspondence with community members. Virtual meetings for each pilot area were held via Zoom in November 2021, December 2021, and April 2022. An additional “hybrid” Zoom and in- person meeting in December 2021 was organized by a consortium of neighborhood groups and provided an additional opportunity for public comment on initial proposals. 3 Attendance at the virtual meetings dropped over time, and participation at the Southside/Telegraph pilot area meetings was particularly difficult to attract. In spring 2 Project website available at https://smartspace.goberkeley.info. 3 Summaries of all public meetings are available in the “Additional Resources” section of the project website at https://smartspace.goberkeley.info.
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goBerkeley SmartSpace Pilot Program Implementation Recommendations PUBLIC HEARING June 28, 2022
2022, City staff conducted additional surveying to better understand existing conditions, particularly among merchants and employees, and to inform new proposals.
Pilot Program Recommendations
In fall 2021, City staff introduced initial concepts for demand-responsive visitor paid parking throughout both pilot areas, removing the two-hour free grace period and extending time limits to increase options for visitors. These concept proposals were met with opposition from both residents and merchants, and are not recommended for implementation. Rather, in response to public input, City staff developed new pilot proposals that either derive from or have been modified by community suggestions. City staff have confirmed with MTC that the new proposals are in alignment with the goals of the grant funding. Those marked with asterisks (**) are recommended for Council approval based on spring 2022 community feedback.
Elmwood Pilot Area
Recommendation Description Spring
2022
Feedback
Source
Numbers
Dates/Time
of Input
**Introduce a
limited number of
RPP parking
permits for local
employees.
Sell transferable
employee parking
permits for nearby
RPP areas. City to
determine maximum
number of permits
based on a review of
available parking
supply.
40% Yes
and 60%
wanted
more info.
None
opposed.
15 Zoom
poll
participants
April 27,
2022 Zoom
meeting
**Facilitate a
transit pass
program for
employees of
local businesses.
Provide staff support
to set up and
administer an AC
Transit EasyPass
program for local
employees in the
Elmwood district.
80% Yes 20 Zoom
poll
participants
April 27,
2022 Zoom
meeting
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goBerkeley SmartSpace Pilot Program Implementation Recommendations PUBLIC HEARING June 28, 2022
Recommendation Description Spring
2022
Feedback
Source
Numbers
Dates/Time
of Input
Test 3-hour RPP
time limits in a
small portion of
the pilot area.
Extend RPP time
limits from two (2) to
three (3) hours in
portions of RPP
areas east of College
Avenue.
27% Yes,
20% No,
53% more
info;
72% of
survey
takers said
two-hour
limit
sufficient
15 Zoom
poll
participants;
87 Elmwood
area
residents
via online
survey
April 27,
2022
meeting &
Feb/Mar
2022 online
survey
Southside/Telegraph Pilot Area
Recommendation Description Spring 2022
Feedback
Source
Numbers
Dates/Time
of Input
**Implement
smaller visitor
paid parking pilot
closer to the UC
Campus.
Test goBerkeley
demand-responsive
pricing and longer
time limits for non-
permit holders in a
portion of RPP Area
I.4 Install license
plate entry pay
stations to simplify
payment and
enforcement.
40% Yes,
30% No,
30% more
info;
50% of
survey
takers said
two-hour limit
insufficient
9 Zoom poll
participants;
26 Area I
RPP permit
holders in
pilot area
via online
survey
April 28,
2022 Zoom
meeting &
March 2022
online
survey
**Encourage
local merchants
and/or
employees to
park at
Telegraph/
Channing
Garage.
The City would set
aside a maximum
number of stalls at
the garage for local
businesses and
encourage garage
parking as a first
choice.
66% Yes,
11% No,
22% more
info.
9 Zoom poll
participants
April 28,
2022 Zoom
meeting
4 Visitor paid parking would be implemented in the 2700 blocks of Durant Ave, Channing Way, and Haste St, and the 2300-2400 blocks of Piedmont Ave. RPP Area I permit holders would be exempt from hourly paid parking. Payment would be accepted by ParkMobile mobile payment service and new license-plate entry pay stations from 8am-7pm, matching current RPP enforcement hours.
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goBerkeley SmartSpace Pilot Program Implementation Recommendations PUBLIC HEARING June 28, 2022
Recommendation Description Spring 2022
Feedback
Source
Numbers
Dates/Time
of Input
**Facilitate a
transit pass
program for
employees of
local businesses.
Provide staff support
to set up and
administer an AC
Transit EasyPass
program for local
employees in the
Telegraph district.
90% Yes,
10% more
info.
10 Zoom
poll
participants
April 28,
2022 Zoom
meeting
Introduce a
limited number of
RPP parking
permits for local
employees.
Sell transferable
employee parking
permits for nearby
RPP areas. City to
determine maximum
number of permits
based on a review
of available parking
supply.
20% Yes,
60% No,
20% more
info.
10 Zoom
poll
participants
April 28,
2022 Zoom
meeting
Pilot Implementation
Prior to launching the pilot, staff will develop detailed policies guiding the implementation, and update the community via our website, mailing list, and other communication channels. The pilot is expected to launch later this summer, will be in place for at least six (6) months, and conclude by the end of calendar year 2023. New data collection will occur in fall 2022 and spring 2023 to support project evaluation and determine if a price adjustment is needed for the Southside/Telegraph visitor paid parking area following goBerkeley program guidelines. Staff will continue to engage with major stakeholders and the general public after the pilot begins, and expect to return to Council in mid-2023 with an evaluation of the project and further recommendations on whether the strategies should be discontinued, retained, or expanded.
BACKGROUND
During the first goBerkeley parking pilot program (2013-2015), the City received feedback about the “two-hour shuffle” in residential areas adjacent to commercial districts. While staff could not study this behavior comprehensively during the first pilot, the City was awarded a $950,000 grant from the MTC in late 2015 to study the two-hour shuffle in more detail as part of the goBerkeley Residential Shared Parking Pilot. The pilot program was rebranded “goBerkeley SmartSpace” in 2019. The goals of the pilot include:
Reduce occurrences of the “two-hour shuffle” in residential neighborhoods to alleviate inconvenience for local merchants and employees and reduce greenhouse gas emissions associated with the behavior;
Increase parking availability on residential streets;
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Increase information about and/or facilitate access to alternatives to driving and parking; and
Improve customer service and technology related to the City’s parking program, making parking easier to find and understand.
Finally, the goBerkeley SmartSpace pilot is a Strategic Plan Priority Project, advancing our goals to:
provide state-of-the-art, well-maintained infrastructure, amenities, and facilities. be a global leader in addressing climate change, advancing environmental justice, and protecting the environment.
be a customer-focused organization that provides excellent, timely, easily- accessible service and information to the community.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
This pilot project will test ways to reduce greenhouse gas emissions among commuters to the Elmwood and Southside/Telegraph commercial districts, particularly those parking in nearby residential neighborhoods. Reducing greenhouse gas emissions produced by vehicular traffic is one of the City’s 2009 Climate Action Plan goals.
While the effectiveness of the recommendations is not yet known, parking management based on user demand in the smaller Southside/Telegraph visitor paid parking pilot is expected to improve residential on-street parking availability and lessen vehicle emissions, as drivers spend less time searching for available parking spaces. Likewise, providing some local employees with parking permits could reduce emissions associated with frequent shuffling of vehicles. Employees who receive transit passes may choose to use transit more often, alleviating parking demand.
RATIONALE FOR RECOMMENDATION
The recommendations in this report reflect public feedback received during outreach in fall 2021 and winter 2022. As such, they reflect community priorities for addressing the “two-hour shuffle” in residential neighborhoods as part of this grant-funded pilot program.
ALTERNATIVE ACTIONS CONSIDERED
Council could choose not to approve any of the recommendations for the pilot, which would require additional effort to develop new proposals and could further delay the program. Council could also choose to approve some but not all of the recommended proposals, including those that were not recommended for approval.
CONTACT PERSON
Farid Javandel, Deputy Director, Public Works, 510-981-7061 Danette Perry, Parking Services Manager, Public Works, 510-981-7057 Gordon Hansen, Senior Planner, Public Works, 510-981-7064
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goBerkeley SmartSpace Pilot Program Implementation Recommendations PUBLIC HEARING June 28, 2022
Attachments:
1: Ordinance
2: Resolution
3: Public Hearing Notice
1005
1006
ORDINANCE NO. -N.S.
REPEAL AND REENACT BERKELEY MUNICIPAL CODE CHAPTER 14.52 TO ALLOW PAYMENT AT LICENSE PLATE ENTRY (“PAY-BY-PLATE”) PAY STATIONS
AND IMPLEMENT PAID PARKING IN PORTIONS OF RESIDENTIAL PREFERENTIAL
PARKING (RPP) AREA I AS PART OF THE GOBERKELEY SMARTSPACE PILOT
PROGRAM
BE IT ORDAINED by the Council of the City of Berkeley as follows:
Section 1. That Berkeley Municipal Code Chapter 14.52 is repealed and reenacted to read as follows:
14.52.010 Parking meter zones.
A. goBerkeley Program parking meter zones are those streets or portions of streets in the City located within the goBerkeley Areas hereinafter described as zones within which the parking of motor vehicles shall be controlled, regulated and inspected with the aid of parking meters, pay stations, and/or a City-approved software application that processes pay-by-phone payments from a mobile phone at fees set in 14.52.120:
Acton Street, both sides, from 150 feet north of University Avenue to University Avenue.
Addison Street, both sides, from Oxford Street to Martin Luther King Jr. Way.
Addison Street, north side, from Martin Luther King Jr. Way to 170 feet west of Martin Luther King Jr. Way.
Adeline Street, east side, from Ward Street to Essex Street.
Adeline Street, west side, from Russell Street to Ashby Avenue.
Alcatraz Avenue, south side, from 75 feet east of College Avenue to College Avenue.
Allston Way, both sides, from Oxford Street to Martin Luther King Jr. Way.
Ashby Avenue, both sides, from Domingo Avenue to Claremont Avenue.
Ashby Avenue, north side, from College Avenue to Benvenue Avenue.
Ashby Avenue, south side, from Benvenue Avenue to Elmwood Avenue.
Ashby Place, east side, from Ashby Avenue to a point 80 feet north of Ashby Avenue.
Bancroft Way, both sides, from Piedmont Avenue to Milvia Street.
Benvenue Avenue, west side, from Ashby Avenue to 100 feet south of Ashby Avenue.
Berkeley Square, both sides, from Addison Street to Center Street.
Berkeley Way, north side, from Oxford Street to Shattuck Avenue.
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Berkeley Way, south side, from Oxford Street to 385 feet west of Shattuck Avenue.
Blake Street, both sides, from Telegraph Avenue to 125 feet west of Telegraph Avenue.
Blake Street, south side, from Shattuck Avenue to 80 feet west of Shattuck Avenue.
Bonar Street, east side, from University Avenue to 150 feet south of University Avenue.
Bonar Street, west side, from University Avenue to Addison Street.
Bonita Avenue, east side, from University Avenue to Berkeley Way.
Bowditch Street, east side, from Bancroft Way to Dwight Way.
California Street, both sides, from 100 feet north of University Avenue to 100 feet south of University Avenue.
Camelia Street, north side, from Tenth Street to Ninth Street.
Camelia Street, north side, from San Pablo Avenue to 100 feet west of San Pablo Avenue.
Center Street, both sides, from Oxford Street to Martin Luther King Jr. Way.
Channing Way, north side, from Shattuck Avenue to 250 feet west of Shattuck Avenue.
Channing Way, north side, from College Avenue to Dana Street.
Claremont Avenue, east side, from Russell Street to Ashby Avenue.
Claremont Avenue, west side, from Russell Street to Claremont Boulevard.
Colby Street, west side, from Webster Street to South Hospital Drive.
College Avenue, east side, from Bancroft Way to 200 feet south of Dwight Way.
College Avenue, west side, from Bancroft Way to Dwight Way.
College Avenue, east side, from 75 feet south of Webster Street to 175 feet north of Russell Street.
College Avenue, west side, from 140 feet north of Russell Street to Webster Street.
College Avenue, east side, from 150 feet north of Alcatraz Avenue to Berkeley-Oakland city limits south of Alcatraz Avenue.
College Avenue, west side, from Alcatraz Avenue to Berkeley-Oakland city limit, south of Alcatraz Avenue.
Colusa Avenue, east side, from Catalina Avenue to 225 feet south of Solano Avenue Colusa Avenue, west side, from Catalina Avenue to 180 feet south of Solano Avenue.
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Curtis Street, both sides, from 100 feet north of University Avenue to University Avenue.
Dana Street, both sides, from Bancroft Way to Channing Way.
Dana Street, west side, from Haste Street to 150 feet south of Haste Street.
Delaware Street, south side, from 60 feet east of Shattuck Avenue to Shattuck Avenue.
Derby Street, north side, from 150 feet east of Telegraph Avenue to 50 feet west of Telegraph Avenue.
Derby Street, south side, from 150 feet east of Telegraph Avenue to Telegraph Avenue.
Derby Street, south side, from 300 feet east of Milvia Street to Milvia Street.
Domingo Avenue, both sides, from Berkeley-Oakland city limit to Ashby Avenue.
Durant Avenue, both sides, from Fulton Street to Milvia Street.
Durant Avenue, both sides, from College Avenue to Ellsworth Street.
Dwight Way, both sides, from Fulton Street to Milvia Street.
Dwight Way, north side, from 300 feet east of Telegraph Avenue to 300 feet east of Dana Street.
Dwight Way, north side, from College Avenue to Bowditch Street.
Dwight Way, south side, from 125 feet east of Regent Street to 325 feet west of Telegraph Avenue.
Dwight Way, south side, from Benvenue Avenue to Hillegass Avenue.
Dwight Way, north side, from 40 feet east of San Pablo Avenue to San Pablo Avenue.
Eighth Street, west side, from 100 feet north of University Avenue to 200 feet south of University Avenue.
Ensenada Avenue, east side, from 66 feet north of Solano Avenue to 90 feet south of Solano Avenue.
Euclid Avenue, east side, from 135 feet north of Ridge Road to Hearst Avenue.
Euclid Avenue, west side, from 130 feet north of Ridge Road to Hearst Avenue.
Fifth Street, west side, from Virginia Street to Hearst Avenue.
Fifth Street, both sides, from Hearst Avenue to Addison Street.
Fourth Street, east side, from Virginia Street to Addison Street.
Fourth Street, west side, from Cedar Street to Addison Street.
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Francisco Street, both sides, from Shattuck Avenue to 100 feet west of Shattuck Avenue.
Fresno Avenue, east side, from Solano Avenue to 69 feet south of Solano Avenue.
Fulton Street, both sides, from Kittredge Street to Bancroft Way.
Fulton Street, east side, from Bancroft Way to Durant Avenue.
Fulton Street, west side, beginning at Durant Avenue and extending south for 80 feet.
Grant Street, both sides, from 100 feet north of University Avenue to 100 feet south of University Avenue.
Grayson Street, south side, from San Pablo Avenue to 60 feet west of San Pablo Avenue.
Harold Way, both sides, from Allston Way to Kittredge Street.
Haste Street, both sides, from 250 feet east of Shattuck Avenue to Milvia Street.
Haste Street, north side, from College Avenue to Dana Street.
Haste Street, south side, from 300 feet east of Telegraph Avenue to 350 feet west of Telegraph Avenue.
Haste Street, south side, from College Avenue to Bowditch Street.
Hearst Avenue, north side, from LaLoma Avenue to Scenic Avenue.
Hearst Avenue, south side, from Euclid Avenue to Gayley Road.
Hearst Avenue, south side, from Oxford Street to Arch Street.
Hearst Avenue, both sides, from Oxford Street to Shattuck Avenue.
Hearst Avenue, north side, from Fifth Street to Third Street.
Hearst Avenue, south side, from Sixth Street to Third Street.
Kittredge Street, both sides, from Oxford Street to Milvia Street.
LaLoma Avenue, both sides, from Ridge Road to Hearst Avenue.
LeRoy Avenue, both sides, from Ridge Road to Hearst Avenue.
Lincoln Street, south side, from Shattuck Avenue to 150 feet west of Shattuck Avenue.
Martin Luther King Jr. Way, both sides, from Addison Street to Allston Way.
Milvia Street, both sides, from Berkeley Way to Center Street.
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Milvia Street, east side, from Center Street to Bancroft Way.
Milvia Street, east side from Derby Street to Ward Street.
Modoc Street, east side, from Solano Avenue to 90 feet south of Solano Avenue.
Modoc Street, west side, from Solano Avenue to 66 feet south of Solano Avenue.
Ninth Street, east side, from 300 feet north of Gilman Street to Gilman Street.
Ninth Street, west side, from 75 feet north of University Avenue to 150 feet south of University Avenue.
Oregon Street, north side, from 75 feet east of Telegraph Avenue to 50 feet west of Telegraph Avenue.
Oregon Street, south side, from 175 feet east of Telegraph Avenue to Telegraph Avenue.
Oregon Street, both sides, from Shattuck Avenue to Adeline Street.
Oxford Street, both sides, from Hearst Avenue to Kittredge Street.
Page Street, north side, from San Pablo Avenue to Tenth Street.
Pardee Street, south side, from San Pablo Avenue extending 60 feet west of San Pablo Avenue.
Parker Street, both sides, from 200 feet west of Regent Street to 100 feet west of Telegraph Avenue.
Parker Street, both sides, from Shattuck Avenue to 100 feet west of Shattuck Avenue.
Parker Street, north side, from 100 feet east of Shattuck Avenue to Shattuck Avenue.
Regent Street, east side, from Ashby Avenue to 125 feet south of Webster Street.
Regent Street, west side, from Ashby Avenue to South Hospital Drive.
Ridge Road, north side, from 100 feet east of Euclid Avenue to 250 feet west of Euclid Avenue.
Ridge Road, south side, from LeRoy Avenue to 250 feet west of Euclid Avenue.
Rose Street, north side, from 100 feet east of Shattuck Avenue to 100 feet west of Henry Street.
Rose Street, south side, from Walnut Street to Shattuck Place.
Russell Street, north side, from 85 feet east of College Avenue to 175 feet west of College Avenue.
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Russell Street, south side, from 120 feet east of College Avenue to 200 feet west of College Avenue.
Russell Street, south side, from 75 feet east of Telegraph Avenue to 100 feet west of Telegraph Avenue.
San Pablo Avenue, both sides, from Harrison Street to Carrison Street.
Scenic Avenue, east side, from Hearst Avenue to Ridge Road.
Seventh Street, east side, from University Avenue to 150 feet south of University Avenue.
Shattuck Avenue, both sides, from 100 feet north of Rose Street to University Avenue.
Shattuck Avenue, both sides, of the east roadway, from University Avenue to Addison Street (Shattuck Square).
Shattuck Avenue, both sides, of the west roadway, from University Avenue to Addison Street (Shattuck Square).
Shattuck Avenue, both sides, of the east roadway, from Addison Street to Center Street (Berkeley Square).
Shattuck Avenue, both sides, of the west roadway, from Addison Street to Center Street (Berkeley Square).
Shattuck Avenue, both sides, from Center Street to Ashby Avenue.
Shattuck Place, both sides, from Rose Street to Shattuck Avenue.
Sixth Street, east side, University Avenue to Addison Street.
Solano Avenue, both sides, from Tulare Avenue to The Alameda.
Solano Avenue, north side, from 140 feet to 184 feet east of The Alameda.
South Hospital Drive, south side, from Colby Street to 75 feet west of Colby Street.
Stuart Street, north side, from 70 feet east of Shattuck Avenue to Adeline Street.
Stuart Street, south side, from 50 feet east of Telegraph Avenue to Telegraph Avenue.
Tacoma Avenue, both sides, from 66 feet north of Solano Avenue to Solano Avenue.
Telegraph Avenue, both sides, from Bancroft Way to Dwight Way.
Telegraph Avenue, east side, from Dwight Way to Woolsey Street.
Telegraph Avenue, west side, from Dwight Way to Prince Street.
Tenth Street, west side, from 300 feet north of Gilman Street to Gilman Street.
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Tenth Street, both sides, from Gilman Street to Camelia Street.
Tenth Street, east side, from 100 feet north of University Avenue to 100 feet south of University Avenue.
The Alameda, east side, from Solano Avenue to Los Angeles Avenue.
The Alameda, west side, from 90 feet north of Solano Avenue to 220 feet north of Los Angeles Avenue.
Tulare Avenue, east side, from Solano Avenue to 90 feet south of Solano Avenue.
University Avenue, both sides, from Oxford Street to Third Street.
Vine Street, north side, from 75 feet east of Walnut Street to 100 feet east of Henry Street.
Vine Street, south side, from 150 feet east of Walnut Street to 100 feet east of Henry Street.
Virginia Street, north side, from 150 feet east of Shattuck Avenue to 150 feet west of Shattuck Avenue.
Virginia Street, south side, from Shattuck Avenue to 125 feet west of Shattuck Avenue.
Walnut Street, east side, from 75 feet north of Vine Street to 125 feet south of Vine Street.
Walnut Street, west side, from Rose Street to 200 feet south of Vine Street.
Walnut Street, both sides, from Berkeley Way to University Avenue.
Ward Street, north side, from 300 feet east of Milvia Street to Milvia Street.
Webster Street, both sides, from 125 feet east of College Avenue to 100 feet west of College Avenue.
Webster Street, north side, from Colby Street to 150 feet west of Telegraph Avenue.
Webster Street, south side, from Colby Street to 100 feet west of Telegraph Avenue.
B. goBerkeley SmartSpace Pilot Program parking meter zones are those streets or portions of streets currently included in Residential Preferential Program (RPP) Area I in the City hereinafter described as zones within which the parking of motor vehicles shall be controlled, regulated and inspected with the aid of parking meters, pay stations, and/or a City-approved software application that processes pay-by-phone payments from a mobile phone at fees set in 14.52.120:
Channing Way, north side, from Piedmont Avenue to College Avenue.
Durant Avenue, both sides, from Piedmont Avenue to College Avenue.
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Haste Street, both sides, from Piedmont Avenue to College Avenue.
Piedmont Avenue, both sides, from Bancroft Way to Dwight Way.
C. The City Traffic Engineer shall cause parking meters and pay stations to be installed and maintained in all parking meter zones.
14.52.020 Manner of installation.
A. Single space meters.
1. Parking meters shall be installed upon the curb or sidewalk area immediately adjacent to each parking space. Each meter shall be placed in such manner as to show or display by a sign or signal that the parking space adjacent thereto is or is not legally in use. Each parking meter shall indicate the limit of parking time in the parking space adjacent to the parking meter.
2. Each parking meter shall be set to display, after the operational procedure has been completed, a sign or signal indicating legal parking for that period of time conforming to the limit of parking time as indicated on the meter, and shall continue to operate from the time of the completion of the operational procedure until the expiration of the time fixed as the parking limit or a portion thereof for the part of the street upon which said meter is placed. Each said meter shall also be so arranged that upon the expiration of said legal parking time it will indicate by a mechanical operation and by proper signal that the lawful parking period has expired.
B. Pay stations.
1. Pay stations are used to accept payment for multiple paid parking spaces on a block face or off-street parking lot and shall include pay-and-display stations and pay-by-plate stations.
2. Pay stations shall be installed upon the curb or sidewalk area within any designated meter zone. Each pay station shall indicate the limit of parking time in that particular designated meter zone.
3. Each pay-and-display station shall be set to dispense, after the operational procedure has been completed, a two-part windshield dispensing machine ticket indicating legal parking for that period of time conforming to the limit of parking time as indicated on the pay-and-display station or indicated by signage or curb markings.
4. Each pay-by-plate station shall be set for the vehicle operator to register their vehicle license plate as the parking permit indicating legal parking for that period of time conforming to the limit of parking time as indicated on the pay-by-plate station or indicated by signage or curb markings.
14.52.030 Time of operation of parking meters and pay stations.
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A. The provision of this chapter relating to the operation of parking meters and pay stations shall be effective between the hours of nine a.m. and six p.m. every day except Sundays, and as may be otherwise provided for specific locations in the sections of establishing parking meter zones.
B. goBerkeley SmartSpace Pilot Program
1. The provision of this chapter relating to the operation of parking meters and pay stations in the goBerkeley SmartSpace pilot program areas listed in 14.52.010 (B) shall be effective between the hours of eight a.m. and seven p.m. every day except Sundays.
2. A motor vehicle which has a valid RPP “Area I” annual or visitor residential parking permit is exempt from hourly paid parking in the goBerkeley SmartSpace pilot program areas listed in 14.52.010 (B).
14.52.040 Operational procedure to be followed.
A. Single space meters. Immediately after occupancy of a parking meter space, the operator of a vehicle shall, if necessary, deposit a coin of the United States, or use a credit or debit card acceptable to the City, or use a City-approved software application that processes pay-by-phone payments from a mobile phone, at said parking meter in accordance with the instructions posted on the face of the parking meter or the pay-by- phone software application that processes payments from a mobile device.
B. Pay-and-display stations.
1. Immediately after occupancy of a pay-and-display station space, the operator of a vehicle shall, if necessary, locate the nearest pay-and-display station on the block and deposit a coin of the United States, or use a credit or debit card acceptable to the City, or use a City-approved software application that processes pay-by-phone payments from a mobile phone at said pay-and-display station and make selections in accordance with the instructions posted on the face of the pay-and-display station, or the pay-by- phone software application that processes payments from a mobile phone.
2. Upon obtaining the printed dispensing machine ticket from the pay-and-display station, the operator of the vehicle shall return immediately to their vehicle and place the dispensing machine ticket face up on the street-side of the vehicle’s dashboard in such a manner that the expiration time and date are readily visible from the exterior.
C. Pay-by-plate stations. Immediately after occupancy of a pay-by-plate station space, the operator of a vehicle shall, if necessary, locate the nearest pay-by-plate station on the block, enter their vehicle license plate number to register their payment, deposit a coin of the United States, or use a credit or debit card acceptable to the City, or use a City-approved software application that processes pay-by-phone payments from a mobile phone at said pay-by-plate station, and make selections in accordance with the instructions posted on the face of the pay-by-plate station, or the pay-by-phone software application that processes payments from a mobile phone.
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14.52.050 Unlawful to park after meter and/or pay station time has expired.
A. Single space meter. It is unlawful for the operator of any vehicle to permit said vehicle to remain parked in any parking space during any time that an operable meter is showing a signal indicating that such space is illegally in use, such as where the time has expired, unless the operator of the vehicle has otherwise paid for the parking space via the use of a City-approved software application that processes pay-by-phone payments from a mobile phone, other than such time immediately after the original occupancy as is necessary to operate the meter to show legal parking.
B. Pay-and-display stations. It is unlawful for the operator of any vehicle to permit said vehicle to remain parked in any parking space during any time that pay-and-display station dispensing machine ticket is indicating that such space is illegally in use, such as where the time has expired, unless the operator of the vehicle has otherwise paid for the parking space via the use of a City-approved software application that processes pay-by-phone payments from a mobile phone, other than such time immediately after the original occupancy as is necessary to obtain a receipt from the pay-and-display station and to place said dispensing machine ticket face up on the street-side of the vehicle’s dashboard to show legal parking.
C. Pay-by plate stations. It is unlawful for the operator of any vehicle to permit said vehicle to remain parked in any parking space during any time that the operator has not registered their vehicle by entering their vehicle license plate number and submitted payment at the nearest pay-by-plate station, unless the operator of the vehicle has otherwise paid for the parking space via the use of a City-approved software application that processes pay-by-phone payments from a mobile phone, other than such time immediately after the original occupancy as is necessary to register their vehicle license plate number at the pay-by-plate station.
14.52.060 Unlawful to extend time beyond limit.
A. Single space meter. It is unlawful and a violation of the provisions of this chapter for any person to follow the operational procedure or any part of the operational procedure for the purpose of increasing or extending the parking time of any vehicle beyond the legal parking time which has been established for the parking space adjacent to which said parking meter is placed.
B. Pay-and-display stations. It is unlawful and a violation of the provisions of this chapter for any person to follow the operational procedure or any part of the operational procedure for the purpose of increasing or extending the parking time of any vehicle beyond the legal parking time which has been established for the parking space which is indicated on the pay-and-display station dispensing machine ticket.
C. Pay-by-plate stations. It is unlawful and a violation of the provisions of this chapter for any person to follow the operational procedure or any part of the operational procedure for the purpose of increasing or extending the parking time of any vehicle beyond the legal parking time which has been established for the parking space controlled by the nearest pay-by-plate station.
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14.52.063 No pay-and-display dispensing machine ticket displayed.
A motor vehicle on which is properly displayed a valid pay-and-display dispensing machine ticket as provided for herein shall be permitted to stand or be parked in a pay- and-display zone for which the dispensing machine ticket has been issued for the period of time indicated on the dispensing machine ticket without being subject to parking penalties in effect for such area. However, any motor vehicle on which there is not displayed a valid dispensing machine ticket as provided herein shall be subject to parking regulations and consequent penalties in effect for such area. (Ord. 7305-NS (part), 2013)
14.52.066 Improperly displayed pay-and-display dispensing machine ticket.
A motor vehicle on which the pay-and-display dispensing machine ticket is not properly displayed as provided herein shall be subject to parking regulations and consequent penalties in effect for such area. (Ord. 7305-NS (part), 2013)
14.52.070 Improper use of meter and pay station.
It is unlawful to deposit or cause to be deposited in any parking meter any defaced or bent coin, or any slug, device or metallic substitute for a coin of the United States, or to otherwise use any card or other device in a parking meter or pay station having alternative payment capability in lieu of a card or device lawful and appropriate to an alternative payment process at such parking meter or pay station, or for any person to deface, injure, tamper with, open or willfully break, destroy or impair the usefulness of any parking meter or pay station. (Ord. 7305-NS (part), 2013)
14.52.080 Deposit of coins in meter or coins, credit card, debit card, or epark card in meter or pay station by unauthorized person.
A. Single space meter. It is unlawful for any person, other than the owner or operator of a vehicle, to deposit any coin, debit card or credit card in any parking meter without the knowledge or consent of said owner or operator of the vehicle using the parking space immediately adjacent to said meter.
B. Pay stations. It is unlawful for any person, other than the owner or operator of a vehicle, to deposit any coin, credit card, debit card, or epark card in any pay station without the knowledge or consent of said owner or operator of the vehicle using the parking space. (Ord. 7305-NS (part), 2013)
14.52.090 Parking meters, pay stations and parking meter/pay station standards not to be used for certain purposes.
A. Single space meters. It is unlawful for any person to attach anything to or allow a bicycle, newsrack or any other article or thing to lean against a parking meter or a parking meter standard.
B. Pay stations. It is unlawful for any person to attach anything to or allow a bicycle, newsrack or any other article or thing to lean against a pay station unit or a pay station standard. (Ord. 7305-NS (part), 2013)
14.52.100 Rule of evidence.
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A. Single space meters. The parking or standing of any motor vehicle in a parking space, at which space the parking meter displays the sign or signal indicating illegal parking shall constitute a prima facie presumption that the vehicle has been parked or allowed to stand in such space for a period longer than permitted by this chapter.
B. Pay-and-display stations. The parking or standing of any motor vehicle in a parking space, at which space the pay-and-display station dispensing machine ticket indicates illegal parking shall constitute a prima facie presumption that the vehicle has been parked or allowed to stand in such space for a period longer than permitted by this chapter.
C. Pay-by-plate stations. The parking or standing of any motor vehicle in a parking space, at which space the vehicle license plate has not been registered at the nearest pay-by-plate station, shall constitute a prima facie presumption that the vehicle has been parked or allowed to stand in such a space for a period longer than permitted by this chapter.
14.52.110 Use of money deposited in parking meters and pay stations.
Except as permitted under subdivision G below, all moneys collected from parking meters and pay stations in the City shall be placed in a special fund, which fund shall be used for the following purposes:
A. For the purchasing, leasing, installing, repairing, maintaining, operating, removing, regulating and policing of parking meters and pay stations in the City and for the payment of any and all expenses relating or incidental thereto.
B. For the purchasing, leasing, acquiring, improving, operating and maintaining of off- street parking facilities in the City.
C. For the installation and maintenance of traffic control devices and signals.
D. For the painting and marking of streets and curbs required for the direction of traffic and the parking of motor vehicles.
E. For the proper regulation, control and inspection of parking and traffic upon the public streets.
F. To be pledged as security for the payment of principal of and interest on off-street parking revenue bonds issued by the City.
G. Additional Revenue deemed to be generated by the goBerkeley Pilot Program will be used to fund goBerkeley efforts, pursuant to Section 1012(b) of Intermodal Surface Transportation Efficiency Act of 1991, as amended, as agreed in the 2012 Cooperative Agreement between the City of Berkeley, the California Department of Transportation and the Federal Highway Administration.
H. Surplus money not utilized under subdivision A through F above may be transferred to the general fund. The City Manager or their designee may make an annual determination as to what is surplus based on the needs and obligations of the special
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fund and transfer such surplus to the general fund. (Ord. 7498-NS § 2, 2016: Ord. 7305- NS (part), 2013).
14.52.120 Parking meter and pay station fees.
Single-space meter and pay station fees for the goBerkeley Program parking meter zones hereinabove set forth in 14.52.010 shall be as follows:
A. For goBerkeley Program parking meter zones set forth in 14.52.010:
1. Pay stations and credit card enabled single-space meters shall accept nickels, dimes, quarters, one dollar coins and credit/debit cards.
2. The minimum transaction amount for cash payment shall be five cents ($0.05) and shall purchase a segment of time proportional to the prevailing hourly rate, rounded up to the nearest whole minute. The prevailing hourly rate for meter zones specified in 14.52.010 shall be set by section 14.52.120(B).
3. The 12-minute minimum transaction amount for credit/debit card payment shall purchase a segment of time proportional to the prevailing hourly rate, rounded up to the nearest whole minute. The prevailing hourly rate for meter zones specified in 14.52.010 shall be set by section 14.52.120(B).
B. At single-space meters and pay stations within the goBerkeley Program parking meter zones:
1. The hourly rate may vary between $0.50 and $5.00 per hour effective FY 2017, between $0.50 and $6.00 per hour effective FY 2018, between $0.50 and $7.00 effective FY 2019, and between $0.50 and $8.00 effective FY 2020, as set by the City Manager.
2. The parking fee may be either flat rates (same rate for a specified time period e.g. 1 hour, 4 hours, all day), or may be variable rates based on time of day, length of stay, or a combination of those pricing structures, as set by the City Manager.
3. The City Manager may adjust the parking fee by increments no larger than 50 cents ($0.50) per hour.
4. The City Manager may implement special event pricing at designated times and at designated pay stations and parking meters,
5. Adjustments to the parking fee must be supported by published data on parking usage statistics with the goal of achieving 65-85% parking occupancy of spaces as calculated in the goBerkeley Program Guidelines.
6. Adjustments to the parking fee at pay stations and parking meters must be posted to the City’s website no later than 30 calendar days prior to the adjustment.
7. Parking rates may be adjusted no more frequently than once per 60 calendar days. (Ord. 7752-NS § 2, 2021: Ord. 7498-NS § 3, 2016: Ord. 7308-NS § 1, 2013: Ord. 7305-NS (part), 2013)
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14.52.130 Time limits enforced at inoperable parking meters and pay stations.
A. Single space meters. Where parking meters are installed in the City, if the parking meter is inoperable, the time limits posted on the parking meter shall be enforced during the hours of operation of parking meters.
B. Pay stations. Where pay stations are installed in the City, if the pay station is inoperable, the time limits posted on the pay station within the block that the vehicle is parked or indicated by signage or curb markings shall be enforced during the hours of operation of the pay station.
Section 2. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 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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RESOLUTION NO. ##,###-N.S.
GOBERKELEY SMARTSPACE PILOT PROGRAM RECOMMENDATIONS
WHEREAS, the Council of the City of Berkeley accepted a $950,000 Congestion Mitigation and Air Quality Improvement (CMAQ) grant from the Federal Highway Administration (FHWA) under the Metropolitan Transportation Commission’s (MTC) Climate Initiatives Program for the goBerkeley Residential Shared Parking Pilot (since renamed goBerkeley SmartSpace) via Resolution No. 67,382–N.S.; and WHEREAS, the goBerkeley SmartSpace pilot program is studying ways to reduce the inconvenience and greenhouse gas emissions associated with the “two-hour shuffle,” improve parking availability, increase information and/or access to alternatives to driving and parking, and improve customer service related to the City’s parking program in Residential Preferential Parking (RPP) areas adjacent to the Elmwood and Southside/Telegraph commercial districts; and
WHEREAS, public engagement for the pilot program began in late 2019, was delayed for approximately one year due to the coronavirus pandemic and shelter-in-place, and resumed in mid-2021 amid the reopening of the local economy; and WHEREAS, the City’s initial concept proposals for visitor paid parking in both pilot areas that were presented to the community in November 2021 were met with opposition from both residents and merchants; and
WHEREAS, City staff have developed new pilot proposals in support of project goals that either derive from or have been modified by suggestions and feedback from the community, confirmed with the MTC that they accord with the goals of the grant, and presented these proposals for further feedback and prioritization at public meetings in April 2022; and
WHEREAS, $100,000 in non-grant-related funding will be included in the FY 2023 Budget in the Parking Meter Fund (631-54-622-665-0000-000-472-612990- PWTRPK1401) pending the approval of the first Amendment to the Annual Appropriations, as part of a separate project to facilitate the implementation of the pilot; and
WHEREAS, the recommended goBerkeley SmartSpace pilot proposals for the Elmwood pilot area include introducing a limited number of RPP parking permits for local employees and facilitating a transit pass program for employees of local businesses; and in the Southside/Telegraph pilot area, implementing a smaller visitor paid parking pilot on the 2700 blocks of Channing Way, Durant Ave, and Haste St and the 2300-2400 blocks of Piedmont Ave in RPP Area I, encouraging employee parking at the Telegraph Channing parking garage, and facilitating a transit pass program for employees of local businesses.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to proceed with the implementation and evaluation of the recommended proposals under the goBerkeley SmartSpace pilot program.
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NOTICE OF PUBLIC HEARING - BERKELEY CITY COUNCIL
PUBLIC PARTICIPATION BY REMOTE VIDEO ONLY
AUTHORIZE DEMAND-RESPONSIVE PAID PARKING FOR NON-RPP PERMIT HOLDERS IN 2700 BLOCKS OF CHANNING WAY, DURANT AVENUE, AND HASTE STREET, AND THE 2300-2400 BLOCKS OF PIEDMONT AVENUE AS PART OF
GOBERKELEY SMARTSPACE PILOT PROGRAM
Notice is hereby given by the City Council of the City of Berkeley that a public hearing will be conducted by said city council of the City of Berkeley at which time and place all persons may attend and be heard upon the following:
The Department of Public Works is proposing to implement demand-responsive paid parking from 8 a.m. to 7 p.m. in a portion of Residential Preferential Parking (RPP) Area I in the Southside/Telegraph area as part of the goBerkeley SmartSpace pilot program. This pilot program is studying ways to reduce the “two-hour shuffle,” which occurs when those without permits re-park their vehicles every two hours to avoid being cited for parking longer than posted time limits, and to increase parking availability in residential areas. Those with valid RPP Area I permits would be exempt from paying for hourly metered parking. Visitors could pay by ParkMobile pay-by-app or new license plate entry pay stations, which simplify payment and enforcement. The pilot program would include new on-street paid parking on the following blocks:
Channing Way, north side, from College Avenue to Piedmont Avenue Durant Avenue, both sides, from College Avenue to Piedmont Avenue Haste Street, both sides, from College Avenue to Piedmont Avenue Piedmont Avenue, both sides, from Bancroft Way to Dwight Way Under existing goBerkeley program guidelines, parking rates would be periodically adjusted to achieve 65-85% parking occupancy. This target rate is equivalent to between 1-2 parking spaces available at peak hours, such as noon on weekdays.
The table below describes the current range of parking rates at meters within the goBerkeley program, per Ordinance No. 7498 (July 19, 2016). The table also shows the limitations on the size of rate adjustments and frequency of rate changes.
On-Street Paid Parking: 2700 Channing Way, Durant Ave, Haste St & 2300-2400 Piedmont Ave
Current goBerkeley Hourly
Rate Range Increment Frequency
On-Street Paid
Parking
N/A
($0.00/hr)
$0.50/hr – $8.00/hr Not more than
$0.50/hr
Not more often
than once per 60
calendar days
The hearing will be held, on June 28, 2022 at 6:00 p.m. The hearing will be held via videoconference pursuant to Government Code Section 54953(e) and the state declared emergency.
For further information, please contact Farid Javandel, Deputy Director of Public Works at 510- 981-7061.
A copy of the agenda material for this hearing will be available on the City’s website at www.berkeleyca.gov as of June 16, 2022. Once posted, the agenda for this meeting will include a link for public participation using Zoom video technology.
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Written comments should be mailed to the City Clerk, 2180 Milvia Street, Berkeley, CA 94704 or emailed to [email protected] in order to ensure delivery to all Councilmembers and inclusion in the agenda packet.
Communications to the Berkeley City Council are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to the City Council, will become part of the public record.
If you do not want your e-mail address or any other contact information to be made public, you may deliver communications via U.S. Postal Service or in person to the City Clerk. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the City Clerk at 981-6900 or [email protected] for further information.
If you challenge the above in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Berkeley at, or prior to, the public hearing.
Background information concerning this proposal will be available at the City Clerk Department and posted on the City of Berkeley webpage at least 12 days prior to the public hearing.
Published: June 17 and June 24, 2022 – The Berkeley Voice Pursuant to Government Code 6062a
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the Notice for this Public Hearing of the Berkeley City Council was posted at the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way, as well as on the City’s website, on June 16, 2022.
Mark Numainville, City Clerk
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1024
Disaster and Fire Safety Commission
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: Disaster and Fire Safety Commission
Submitted by: Jose Luis Bedolla, Chairperson, Disaster and Fire Safety Commission Subject: Request for Timely Fiscal Information on Measures FF and GG
RECOMMENDATION
The Disaster and Fire Safety Commission (“Commission” or “DFSC”) respectfully recommends that Council direct the Fire Department and City Manager provide the Commission with the following fiscal information regarding Measures GG and FF:
1. Base budget documentation for the 22/23 FY (current year) that was approved by Council;
2. Quarterly, preferably monthly, expenditure reports, including a brief narrative describing each line item, with initial reports starting by March 30, 2022, with a published calendar for reporting and
3. The proposed budgets submitted to Council’s Budget and Finance Policy Committee in April, each subsequent revision presented to Council, and the budget that is adopted at the end of the budget process.
The Commission takes seriously the role it has been given by the voters and the City Council to provide oversight and advice to the City Council about the use of Measure GG and FF funds. DFSC commissioners intend to carry out this role but must rely on information from the City Manager and the Fire Department to do so.
FISCAL IMPACTS OF RECOMMENDATION
The Commission is supposed to receive formal written reports on a regular cadence to provide input and oversight. Proper oversight may lead to more efficient and/or effective use of taxpayer dollars. The cost of producing financial information for the Commission should be minimal, as most financial systems allow for project reporting. If not, the cost incurred would only be the set-up time, which is minimal.
CURRENT SITUATION AND ITS EFFECTS
Regarding Measure GG, the most recent budget information provided to the Commission was a December 2020 Year-End budget report dated December 2, 2020.
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Request for Timely Fiscal Information on Measures FF and GG ACTION CALENDAR June 28, 2022
Regarding Measure FF, in January 2021, the Fire Department presented the Commission with a preliminary budget overview and presented an informal working group of the Commission a detailed, but still preliminary, version of the budget in February 2021. To date, the Commission has not been provided with the final FY 22 Measure GG or FF budget, as approved by Council in June 2021, despite requests by Chair Bedolla at nearly every DFSC meeting. In addition, at its September 22, 2021, meeting, the Commission informally requested that the Fire Department provide a Measure FF implementation plan; in response, the Department promised more information, however only ad hoc updates have since been provided.
The Commission appreciates the strain that the Covid pandemic has placed on staff, as well as the challenge of managing the new influx of funds from Measure FF, and has therefore been patient despite a lack of information that has prevented the Commission from fulfilling its duties for more than the past year. At this point, however, as we head into another budget cycle, we believe that it is reasonable to expect that the information begin to flow.
The City’s Budget Manager has proposed to begin having department budget presentations to the Council’s Budget and Finance Policy Committee in April. The Council will hold a public hearing on the FY 23 and FY 24 proposed budgets on May 10.
To perform its oversight responsibilities, the Commission will need to receive this information in the same timeframes.
BACKGROUND
The Commission’s main duty is to serve as an oversight body for the expenditure of Measure GG and FF funds. On September 22, 2020, the City Council passed a resolution “Designating the DFSC as the Citizens’ Oversight Committee for Expenditure of the Proceeds of the Fire, Emergency Services and Wildfire Prevention Tax (Measure FF)” which replicated the Commission’s duties with respect to Measure GG. The resolution states that “Citizen input and oversight are crucial for transparency and accountability.” It further states:
For this purpose, in addition to its other powers, the Commission may: 1) request detailed expenditure plans for tax proceeds annually, which shall be provided to it as early in the budget process as feasible; 2) make recommendations to the City Manager and the City Council as to the rate at which the tax should be set and how any tax proceeds should be spent; and 3) obtain a report on actual expenditures.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There is no direct environmental impact of this recommendation.
RATIONALE FOR RECOMMENDATION
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Request for Timely Fiscal Information on Measures FF and GG ACTION CALENDAR June 28, 2022
The rationale is to ensure that the Commission and the City not only stay within the letter of the law but the spirit. This Citizen Commission is supposed to provide oversight.
Without budget data and input into the budget, the City may not be in compliance with the two measures. Even with the currently proposed review cycles, middle of the year and end of the year, there is no ability to provide further input, modifications, nor address ad hoc requests from the community.
ALTERNATIVE ACTIONS CONSIDERED
Since most financial systems require set up of annual budgets and they can output results with minimal staff time, no other actions were considered.
CITY MANAGER
See Companion Report
CONTACT PERSON
Keith May, Secretary, Disaster and Fire Safety Commission, 510-981-5508
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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: Abe Roman, Fire Chief
Subject: Companion Report: Request for Timely Fiscal Information on Measures FF and GG
RECOMMENDATION
The City Manager acknowledges the need to provide accurate, timely, and relevant information to the Disaster and Fire Safety Commission (DFSC). Fire Department Staff has committed to providing the DFSC line item budgets on Measures GG and FF funding plans prior to the budget process cycle as much as feasible.
The DFSC can take this opportunity to discuss potential recommendations or issues with Staff with regards to the future spending of the funds.
The Fire Department will continue to provide biennial reports on Measure FF as outlined by City Council in accordance with the Adopted Council Resolution No. 69,575–N.S.
FISCAL IMPACTS OF RECOMMENDATION
Limited Staff time is the principal fiscal impact. Per the City Council’s directive, commissions are to receive an annual report on the budget process. At this time, the department is providing the commission with two reports during the year for Measure GG; and will also be providing the same for Measure FF. Staff have multiple conflicting City deadlines year-round. The reporting request for Measure GG takes more time because the data needs to be consolidated into the categories requested by the commission.
CURRENT SITUATION AND ITS EFFECTS
The Fire Department Staff presents an annual Year-End Report to the DFSC after the Fiscal Year concludes in late Fall. At the mid-year cycle, usually in March or April, Staff goes back to the Commission and gives a report and presentation.
On January 27th, 2021, Staff made a presentation to the DFSC on Measure FF Budget Priorities and received feedback from the Commission. This presentation outlined
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Companion Report: Request for Timely Fiscal Information on Measures FF and GG ACTION CALENDAR
June 28, 2022
Measure FF Implementation Plan on Wildfire Prevention & Response, Emergency Medical Service, Training & Development, and dispatch. The presentation also showed the proposed funding for each of these mission areas and if the amount of funds were a one-time and/or recurring through the first five years of operations.
Budget authority rests with the City Manager. In addition to the fiscal information provided to the commission, Fire Department expenditures are addressed in public forums, which encourages public review and comment, at:
The Budget and Finance Committee, Fire Department Budget Presentation City Council Meeting, Public Hearings regarding the Annual Budget
RATIONALE FOR RECOMMENDATION
The Disaster and Fire Safety Commission provides oversight over funding allocated to the Fire Department through voter-approved tax measures (GG, FF).
The Disaster and Fire Safety Commission will be able to see the intention of the Fire Department spending of Measure GG and FF funds through the Mid-Year and Year-End reports. The Year-End report will include a Trial Balance (expenditure) report. The Commission will have the opportunity to provide insights or thoughts and to discuss with staff recommendations. The Commission can also choose to make recommendations to City Council indicating full support of Staff’s plans. If there are areas that the Commission disagrees with Staff plan’s, they can make recommendations to Council via Memo or Report to Council.
ALTERNATIVE ACTIONS CONSIDERED
None.
CONTACT PERSON
Keith May, Assistant Fire Chief, Disaster and Fire Safety Commission Secretary, Fire Department, 510-9981-5508
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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
INFORMATION 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: Voluntary Time Off Program for Fiscal Year 2023
INTRODUCTION
As a citywide cost-saving measure, the City Manager is designating 16 Voluntary Time Off (VTO) days in Fiscal Year 2023 (July 1, 2022 to June 30, 2023) and authorizing certain City offices and non-essential services to temporarily close for those days.
CURRENT SITUATION AND ITS EFFECTS
The proposed 16 VTO dates will fall on a schedule similar to Fiscal Year 2022, with City offices generally closing on every second Friday, with additional days the last week in December 2022 (December 27 - December 30). The following are the proposed VTO Days:
Date (2022) Day Date (2023) Day
July 8 Friday January 13 Friday
August 12 Friday February 10*** Friday
September 16* Friday March 10 Friday
October 14 Friday April 14 Friday
November 8** Tuesday May 12 Friday
December 9 Friday June 9 Friday
December 27 Tuesday
December 28 Wednesday
December 29 Thursday
December 30 Friday
10 days (2022) 6 days (2023)
* VTO day in September is moved to September 16 to minimize the impact on payroll processing.
**VTO day in November is moved to Tuesday, November 8 due to 2022 Election day. ***Please note that Monday, February 13, 2023 is the observed Lincoln’s Birthday.
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Voluntary Time Off Program for FY 2023 INFORMATION CALENDAR June 28, 2022
The purpose of VTO days is to generate savings to help balance the budget. The program is projected to achieve a savings of $252,904 on an all funds basis in Fiscal Year 2022. The actual savings per VTO day since Fiscal Year 2021 was lower than previous fiscal years because of City building closures and staff working remotely due to the COVID-19 pandemic. Nonetheless, the program is still recommended to continue in Fiscal Year 2023.
Voluntary Time Off Salary Savings
Fiscal Year Number of
VTO Days
Base Salary
Savings
Savings Per
VTO Day
2012 28 $731,723 $26,133
2013 28 $578,044 $20,644
2014 16 $389,706 $24,357
2015 16 $366,853 $22,928
2016 16 $367,821 $22,989
2017 16 $402,070 $25,129
2018 16 $475,400 $29,713
2019 17 $524,086 $30,829
2020 16 $467,108 $29,194
2021 17 $251,229 $14,778
2022 16 $252,904* $15,806
*Annualized projection
The VTO program is recommended to continue in Fiscal Year 2023 and will be reevaluated at a later time to determine whether the VTO program will also be implemented in Fiscal Year 2024. As shown in the chart below, the average savings per VTO day within the last decade ranged from $14,800 to $30,800. $30,
829
$14,
778
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$0
$5,
000
$10,
000
$15,
000
$20,
000
$25,
000
$30,
000
$35,
000
Sa
vings Per VTO Day
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Voluntary Time Off Program for FY 2023 INFORMATION CALENDAR June 28, 2022
In Fiscal Year 2022, staff considered the impact that the VTO days had on City services. It was determined that the VTO days were, in general, not having a significant impact on the City’s ability to provide quality services. Potential inconveniences to residents were mitigated in several ways, including keeping the 311 Customer Call Center open on VTO days, adjusting due dates for fines, and posting clear signs in advance of closure dates.
BACKGROUND
The concept for a VTO program was proposed in 2004 by the labor unions representing non-sworn employees as an alternative to a mandatory closure of City offices (“furloughs”) and staff layoffs. The VTO program designates certain days City offices are closed to the public while allowing staff to take paid or unpaid leave, or voluntarily report to work. The VTO closures have permitted staff to reduce their vacation leave balances, and eliminate the costly past practice of buying back vacation leave balances, which in turn has allowed the City to reduce its cost to pay out accrued vacation leave upon an employee’s separation from employment. It has also been used by departments to help them reach their annual target savings.
Likewise, the City Council approved a recommendation that designates any Statewide Election, including Primary and Special Statewide Elections, as VTO days1. Election Day occurs on the Tuesday after the first Monday in November of each even-numbered year, with the corresponding Primary Day occurring on the Tuesday after the first Monday of March.
Service Impacts: The VTO program has generated minimal complaints from the public regarding the office closures and reduced services because many key services remain open to the public, while other services can be provided on a callback basis.
During VTO days, customer service counters at the Finance Customer Service Center and Permit Service Center are closed to the public. When Customer Service Center offices are closed, customers may access the drop box that is located outside the 1947 Center building. Customers are redirected to access the drop box through signage to the Rent Board Office at 2125 Milvia Street on VTO days in the last week of December.
When the Permit Service Center is closed, building inspection services continue to be available to the public when City approvals are required for time-sensitive projects. The permit mailbox has been configured to accept emails from applicants on VTO days including applications for all types of building related permits. In addition, Permit Service Center cashiers work most of the VTO days to return customer calls and process payments. The City will continue to notify the public of City VTO closure dates through public noticing, the press, voicemail messages, and signage. 1 https://records.cityofberkeley.info/PublicAccess/api/Document/AfIClpxxSiesVU%C3%81UeV6uHvDcSM3 47Ko0EvBQfWOAcMZctkvZVLhegoOT5Gsbt38OjQY6FVXdfzeIiGPO5gabOg4%3D/
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Voluntary Time Off Program for FY 2023 INFORMATION CALENDAR June 28, 2022
The Voluntary Time Off Program for Fiscal Year 2023 is a Strategic Plan Priority, advancing our goal to provide an efficient and financially-healthy City government.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
VTO days may reduce vehicle miles traveled associated with City employees’ work commute. Otherwise, there are no identifiable environmental and climate effects or opportunities associated with the subject of this report.
POSSIBLE FUTURE ACTION
The City Manager is recommending to continue the VTO program in Fiscal Year 2023.
However, the City Manager will reassess the economic impact as well as the cost benefit to the public of continuing these temporary closures of City offices in Fiscal Year 2024.
FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
Cost savings are achieved on an annual basis from the VTO program. Since FY 2012, annual cost savings ranging from $251,000 to just under $732,000 have been achieved from the VTO program.
CONTACT PERSON
Donald Ellison, Director of Human Resources, 981-6800
Sharon Friedrichsen, Budget Manager, 981-7000
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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
INFORMATION 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: Annual Update on Wells Fargo Bank’s Community Involvement and Investment in the City of Berkeley
INTRODUCTION
On May 7, 2013, Council adopted Resolution No. 66,106-N.S. authorizing the City Manager to execute a four-year contract with Wells Fargo Bank. The bank provides comprehensive banking services to the City. The contract has subsequently been extended through 2023. Wells Fargo is required to provide an annual report about its community involvement and investments within the City of Berkeley.
CURRENT SITUATION AND ITS EFFECTS
This report is the annual report of Wells Fargo Bank’s Community Involvement and Investments within the City of Berkeley. Additionally, Wells Fargo presents a summary of several corporate strategies related to social and environmental responsibility efforts.
Attachments to this report are:
1. 2020 Social Impact and Sustainability Highlights. This document provides a corporate-wide overview of the following areas: Resiliency and recover amidst the COVID-19 pandemic; Elevating diversity, equity, and inclusion; Supporting the transition to a low-carbon economy.
2. 2022 Berkeley Social Responsibility Report. This power point slide deck provides some details of Wells Fargo’s activity specifically within the city limits of the City of Berkeley, and is quantified by the following subsections:
People:
o 73 team members live in Berkeley
o 55 team members work in Berkeley
Locations:
o Four (4) locations, one in low to moderate income neighborhoods (LMI) o 12 ATMS, six (6) in LMI
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Annual Report on Wells Fargo Bank Community Involvement and Investment INFORMATION CALENDAR
June 28, 2022
Philanthropy and Volunteerism
o 197 non-profit grants over the past 5 years = $7.0 million o Ten (10) grants last year = $530,980
o Employees volunteered at 31 events totaling 99 volunteer hours o 78 employees donated to Berkeley non-profits = $7,641 o List of Berkeley non-profits supported by Wells Fargo Home Ownership:
o 1,603 home mortgages over the past five (5) years = $1.1 billion o 307 home mortgages last year = $226.1MM
o 17 loans in LMI communities = $11.6MM
o 27 to LMI borrowers = $8.4MM
Community Development Loans and Investments:
o 80 community development loans and investments supporting affordable housing over the past 5 years = $41.0 million
o Two (2) community development loans last year = $15.6 MM o 12 community development investments last year = $814,000 Small Business Lending
o 3,250 small business loans over the past 5 years = $186.0 million o 781 loans last year = $45.2MM
o 117 small business loans in LMI communities = $7.1MM
Diversity, Equity, and Inclusion
o 45% of employees are ethnically/racially diverse
o 55.2% of employees are female
o 8,800 employees are veterans
Environmental Sustainability
o 100% of the bank’s operating energy is met by renewable energy o 8.1% of all wind/solar energy in the U.S. was owned or financed by Wells o $75 billion in sustainable financing was provided in the U.S.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
Wells Fargo discusses supporting a transition to a low-carbon economy, which includes, but is not limited to, funding Resilient Communities Programs that work to restore or improve land, protect land, restore wetlands, plant trees, reduce wastewater, and engage community members in these efforts.
CONTACT PERSON
Darryl Sweet, General Services Manager, (510) 981-7329
Attachments:
1: 2020 Social Impact and Sustainability Highlights
2: 2022 Berkeley Social Responsibility Report
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1 Social Impact and Sustainability Highlights
2020 Social Impact and
Sustainability Highlights
Published April 2021
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2 Social Impact and Sustainability Highlights
Contents
27 04
13 03 Introduction
Resiliency and recovery amidst the COVID-19 pandemic
Elevating diversity, equity, and inclusion
Supporting the transition to a low-carbon economy
1038
3 Social Impact and Sustainability Highlights
The events of the past year – everything from the COVID-19 pandemic and social unrest to political upheaval and rampant wildfres – have shone a harsh light on the inequities embedded in our social systems. Day after day, we’ve witnessed the inspirational courage of grocery clerks and frst responders … activists and scientists … teachers and students, as they fght the pandemic and climate change and raise their voices against discrimination and injustice. Their stories have both inspired us and awakened us to the hard work we all must do to better understand and take action on these interconnected crises.
Wells Fargo is dedicated to making meaningful,
inclusive, and enduring contributions as our
communities address and recover from these
challenges. We’re focused on addressing systemic
issues and supporting an inclusive recovery as we aim
to break down barriers to enable a better future.
More than ever, the world needs thoughtful, well-informed, fact-driven leadership. As a leader in our industry, Wells Fargo is:
• Practicing active listening: We’re listening to the advice of experts and to feedback from our customers, employees, investors, and community partners. • Leveraging innovation and technology: Technology has played a vital role in keeping people more connected during the pandemic. We’re investing in technology and innovation to deliver fast and secure services that make doing business with us easier, more accessible, and more convenient.
• Emphasizing collaboration: Both within and across sectors, we’re working together on innovations that serve the greater good.
• Operating with empathy: The challenges facing
us have made life overwhelming for
many. So, it’s increasingly important that
we lead with empathy, kindness, and
compassion.
By any measure, 2020 was one of the most
challenging years we’ve faced in decades, as
a society and as a company.
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4 Social Impact and Sustainability Highlights
Resiliency and recovery amidst
the COVID-19 pandemic
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5 Social Impact and Sustainability Highlights
Letter from the Chief Operating Ofcer
Since the COVID-19 pandemic began, Wells Fargo’s priority has been protecting the safety and well-being of our employees and customers and supporting the communities we serve.
For our employees, we’ve been deliberate in our workplace decisions. We’ve been able to equip approximately 83% of our workforce to work from home. For employees whose roles require them to be at a Wells Fargo location, we’ve taken numerous steps to help protect their health and safety, including requiring face coverings in our facilities, confguring ofce space for social distancing, and enhancing our cleaning protocols.
We’ve provided frequent, transparent communications to our employees and listened for areas where we could ofer support. For example, after many daycare facilities and schools closed, we temporarily reimbursed childcare expenses of $100 per day for eligible employees during the frst three months of the pandemic. We also aided more than 23,000 employees through the WE Care employee relief fund.
Our support for customers has been multifaceted. In 2020, we helped
3.6 million consumer and small business customers by deferring payments and waiving fees. We’ve helped customers through relief programs as a participant in the Paycheck Protection Program (PPP). As for our physical locations, global research frm Ipsos recognized us as leading the major banks in maintaining cleanliness and providing health and safety signage in our bank branches.
We also engaged with our community partners, who identifed food insecurity as one of their greatest needs. In response, we provided 82 million meals to families in need, through a combination of food bank events and a $10 million donation to Feeding America. We’ve also committed to distributing about $420 million in grants through the Open for Business Fund to nonprofts that support small businesses. We project that grant awards from August 2020 through February 2021 will help entrepreneurs to protect more than 63,000 jobs.
We look forward to the day when we can return to a more normal operating model. Until then, we will continue to do all we can to support our employees, customers, and communities.
– Scott Powell, COO
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6 Social Impact and Sustainability Highlights
In 2020,
we shipped
80,000
safety kits to
employees,
with priority
for individuals
still working at
Wells Fargo
locations.
In 2021, this
program will
expand to the
rest of the
enterprise.
Reimagining the Wells Fargo workforce
When it comes to our people, safety is our top priority. We’re taking action every day to support our employees so they can continue to safely serve our customers.
Over just a couple of weeks in March 2020, our working habits shifted profoundly. In response to the COVID-19 pandemic, we supported our team by enhancing employee benefts, including time-away policies and childcare and healthcare benefts. • Since spring 2020, we’ve enabled more than 220,000 employees to work remotely full-time • We made a one-time cash award to approximately 165,000 employees who make less than $100,000 per year, and we made additional special payments to recognize the unique contributions of those working on the front lines • More than 22,000 eligible U.S. employees took advantage of enhanced childcare benefts in early 2020
• In the U.S., we adjusted the short-term disability program to provide full pay, without a waiting period, to employees who needed to take a COVID-related medical leave • Enhanced telehealth benefts for employees and their families enrolled in health plans
• Ofering free, voluntary on-site or self-administered COVID-19 testing for employees currently working at a Wells Fargo location in the United States
The safety of
our employees
and customers
is our priority.
We’ve made
many important
changes across
our ofces and
branches:
• Face coverings
• Capacity
and physical
distancing
• Enhanced air
fltration
• Physical
barriers
• Increased
sanitation
• Expanded
drive-up
services
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7 Social Impact and Sustainability Highlights
Providing services customers can count on
in challenging times
Wells Fargo is dedicated to the highest standards of service, integrity, and accountability. We listen to our customers, and we’re committed to exceeding their expectations and putting them first. As we rise to meet the challenges of our current environment, we’re working to meet our customers’ needs by providing them with financial access and guidance via an easy and convenient digital banking experience, in addition to support by phone and in person.
In 2020, Wells Fargo helped 3.6 million consumers and
small businesses with payment assistance, including
deferrals and fee waivers.
Digital as an essential service
The COVID-19 pandemic has accelerated the adoption of digital banking and payment options at a staggering pace. Through increased system capacity, enhanced automation, and the creation of new features, digital banking has become one of the primary connection points for our customers.
Amid the height of pandemic-driven restrictions in mid-April, approximately 51% of American workers were working from home (Gallup*). With many people unable to access their workplaces and financial institutions, individuals and businesses struggled with such routine activities as processing payments, cashing checks, and accessing accounts. * We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
COVID-19 vaccines
COVID-19 vaccines are now being distributed in most of
the countries where we operate. While we understand
that choosing to be vaccinated is a personal decision,
we encourage all employees to be educated and make
well-informed decisions about the vaccine based on
the guidance of medical experts. We are providing all
employees globally who choose to get vaccinated with
up to eight hours additional paid time off for COVID-19 vaccine appointments.
Wells Fargo is a Founding Partner of The Ad Council and COVID Collaborative’s COVID-19 Vaccine Education
Initiative, “It’s Up to You” , launched in February 2021.
This
initiative represents one of the largest public education efforts in U.S. history and is focused on addressing
American’s top questions, understanding their concerns
and working to educate and empower people across the
country – particularly communities of color who have been disproportionately impacted by the pandemic – so they can make an informed choice about vaccination for themselves and their families. The campaign urges audiences to visit GetVaccineAnswers.org*
(DeTiDepende.org* in Spanish)
to get the latest information about COVID-19 vaccines.
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8 Social Impact and Sustainability Highlights
Distributing CARES Act funds
to students
After the COVID-19 pandemic
upended life on campus, Stillman
College worked to quickly distribute
part of its Coronavirus Aid, Relief, and
Economic Security CARES Act funds
to its scattered student population.
Given that 80% of its students qualify
for Pell Grants – which means their
household income is $30,000 or less
– the College wanted to get funds
directly into the hands of its students
before their May rent payments were
due. Once the Stillman COVID-19
Leadership Task Force decided to give
$500 grants to all eligible students,
they quickly realized that tracking
down current addresses, and printing
and mailing checks, would take too
long. Working with Wells Fargo, they
identifed disbursements via Z elle® as
the optimal solution for immediately
sending money to students’ bank
accounts using only their email
address or mobile phone number.
Thanks to this digital solution, the
funds arrived at a critical time and
were easier to access.
At Wells Fargo, we saw increased digital engagement with customers, including adoption of our mobile and online banking oferings by customers who haven’t historically used them – all in response to the pandemic’s impacts on branch hours and availability. Notably, in fourth quarter 2020:
• Digital banking logins rose 11.2% from the prior year to 1.7 billion, and 1.5 billion of those came through a mobile device
• Mobile deposit dollar volume was up 108.4% year over year. And 33.4 million checks were deposited using mobile devices – a 36.1% increase from the prior year We supported commercial customers’ continued ability to access banking services through the secure mobile functionality of our Commercial Electronic Ofce® (CEO®), which saw:
• A 76% increase in CEO® Mobile app downloads during the frst fve months of 2020 compared with the same period in 2019
• A 43% increase in mobile check deposits from 2019 to 2020 “The speed at which companies have pivoted their
business models to provide life-altering products and
services has been awe-inspiring.”
– Charlie Scharf, Wells Fargo CEO
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9 Social Impact and Sustainability Highlights
Merchant Services supports business adaptations
Whether establishing an online presence, taking mobile or contactless payments, or reaching new customers, business owners faced many challenges in 2020. Wells Fargo Merchant Services worked with our customers to help them pivot their business operations and remain open through stay-at-home orders and social-distancing requirements. No matter how they serve customers – curbside, in-store, online, by phone, or on the go – Wells Fargo Merchant Services ofers fexible, scalable, and reliable solutions to help meet health and safety guidelines while adopting new payment methods.
When most restaurants began shutting down at the onset of the pandemic, one West Coast-based seafood distributor, that primarily caters to the restaurant industry, had to quickly pivot their business model to stay open. The company began serving consumers directly with family meal kits, fresh shellfsh, new appetizers, and more. To capitalize on these additional revenue streams, they needed to set up a merchant account/payment gateway as quickly as possible. We provided guidance and a roadmap for the most appropriate gateway and the simplest setup options, and in just two days we helped the company get up and running with their new business model.
Paycheck Protection Program (PPP)
Small businesses are the heartbeat of our communities – and they are the key to millions of local jobs. Wells Fargo is committed to helping small businesses impacted by COVID-19 stay open and get back to growth.
Through the initial phase of PPP , we:
• Approved lending to companies representing a total of
1.3 million jobs
• Submitted 259,000 PPP applications to the U.S. Small
Business Association (SBA)
• Funded approximately 194,000 loans totaling more than $10.5 billion:
– 61% were for loan amounts of $25,000 or less
– 84% were for companies that have fewer than
10 employees
– 78% were for $50,000 or less
– The average loan amount was $54,000
– 90% of applicants have $2 million or less in annual revenue – 41% of the loans originated in low- and moderate-income communities, or those with at least a 50% minority census track
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10 Social Impact and Sustainability Highlights
Contributing to an
inclusive recovery in our
communities
We will continue to be there for
customers and communities during
the COVID-19 pandemic and its
aftermath as we work toward an
inclusive recovery. As we do that,
we’re evolving our social impact
eforts to focus more deeply on
racial and economic inequities and
environmental justice, as well as on
building more resilient and inclusive
communities. To learn more, visit our
Impact page.
Drive-up food banks
Millions of Americans are struggling to put meals on the table, creating extraordinarily long lines at food banks and stretching limited family resources thinner than ever. From July to October 2020, we teamed up with Feeding America® member food banks to transform many branch and corporate parking lots into a network of Drive-Up Food Banks. • 211 events coordinated in 35 cities
• 82 million+ meals
1 provided
Open for Business Fund
The COVID-19 pandemic has created unprecedented economic challenges for our small business customers. We’re working to foster an inclusive recovery and to strengthen the small business sector for the long term. In July 2020, Wells Fargo established the Open for Business Fund, voluntarily committing to donate all of the gross processing fees received in 2020 from funding Paycheck Protection Program loans – approximately $420 million – to nonprofts supporting struggling small businesses impacted by COVID-19. The Fund provides grants for Community Development Financial Institutions (CDFIs) and other nonproft organizations that serve diverse small businesses, including Black, African American, Hispanic, Asian, Native American, and other entrepreneurs.
Through our Open for Business Fund, we’re providing capital, technical support, and long- term resiliency programs to nonprofts that serve small businesses. The frst $250 million will go to nonproft lenders or CDFIs who focus on minority-owned businesses that have been disproportionately afected by the pandemic.
1. 82 million meals calculation is based on 1) Actual number of meals distributed through Wells Fargo Drive-Up Food Bank events and 2) Wells Fargo’s fnancial contributions to support Feeding America food banks 7/20/20-12/31/20.
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11 Social Impact and Sustainability Highlights
From August 2020 through February 2021, the Open
for Business Fund deployed more than $112 million
to CDFIs to help a projected 22,000 small businesses
maintain more than 63,000 jobs.
Opening doors to a safe and afordable home
Wells Fargo and the Wells Fargo Foundation donated more than $80 million in 2020 to support housing afordability initiatives, including eforts to help provide or maintain housing for more than 200,000 people afected by the COVID-19 economic downturn. We helped people to have a quality place to call home through support for housing counseling, rent relief, legal assistance to mitigate eviction, and other initiatives. The grants also indirectly assisted millions through eforts to advance racial equity, spark innovation, and fund technical assistance aligned with housing afordability solutions in communities across the U.S. Additional housing afordability philanthropy initiatives include:
• Helping to narrow the racial equity gap by expanding pathways to homeownership for people of color, including support for NeighborhoodLIFT and other LIFT programs that have assisted more than 24,600 people with down payment assistance since 2012.
• Supporting initiatives that increase the supply of
afordable homes, including grants in 2020
to help nonprofts Habitat for Humanity
and Rebuilding Together build and repair
more than 400 homes, as well as additional
support for veterans housing organizations.
• Advancing innovation and transformation
in local communities,
including the Housing
Afordability Breakthrough Challenge *,
which – in collaboration with Enterprise
Community Partners – provides catalytic
funding to support scalable housing
afordability solutions across
the U.S.
NeighborhoodLIFT
and other LIFT
programs that have
assisted
more than
24.6k
people with
down payment
assistance since
2012.
* We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
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12 Social Impact and Sustainability Highlights
“When COVID-19 presented an unprecedented need for
communities across the country, the more than 240
network organizations that make up NeighborWorks
Network quickly pivoted to answer the need. Because
of Wells Fargo’s investment, we were able to provide
critical funds for thousands of vulnerable families
immediately. From keeping families housed to
addressing food deserts and healthcare defciencies
to educating and protecting consumers from scams,
the generosity and fexibility of Wells Fargo made a
signifcant diference across our network. Our ability
to immediately respond to the needs of our network
would not have been possible without the Wells Fargo
Foundation.”
– Marietta Rodriguez, President and CEO of
NeighborWorks America
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13 Social Impact and Sustainability Highlights
Elevating diversity, equity,
and inclusion
1049
14 Social Impact and Sustainability Highlights
meet them.
Letter from the head of Diverse Segments,
Representation & Inclusion
At Wells Fargo, we are deeply dedicated to diversity and inclusion. Over the past year, the company has focused on accelerating our progress in this essential area through several new commitments.
While we have much work to do, the progress we are making is captured throughout this report. A few highlights include:
• Building a diversity-focused development program for high-potential employees that includes a sponsorship program
• Engaging an external frm to propose specifc solutions to help attract, advance, and retain Black and African American and other underrepresented employees
• Every member of our Operating Committee now serves as an executive sponsor for one of our Team Member Networks
• Added a new DE&I Performance Management Objective, focused solely on representation, for our Operating Committee members and their direct reports
• Created the role that I now lead as head of Diverse Segments, Representation & Inclusion, reporting to the CEO and sitting on the Operating Committee
In my role, I am focused on increasing diverse representation at all levels of the company, creating a more inclusive workplace environment, and better serving and growing our diverse customer segments and diverse suppliers across all lines of business.
Society expects companies to have their executive ranks refect the customers they serve and the U.S. population more broadly. They also expect fnancial institutions to provide afordable, easy-to- use products and services, to enable the dream of homeownership, and to help in the formation and growth of small businesses in diverse communities. We share these expectations and we want to We have a tremendous opportunity to make a positive impact — at perhaps the most pivotal time in our society — in the communities where we work, live, and serve. We are developing and implementing a comprehensive diversity agenda that focuses on sustainable progress and lasting impact.
It is important that our employees see and feel that they are being represented across all levels of the company and we want to create a culture of inclusion and belonging so they can bring their full selves to work. To do this, we are focused on creating programs that support career mobility and building a sustainable talent pipeline to provide career opportunities for underrepresented employees — including in our management positions.
We also want to develop a much deeper understanding of the needs of our diverse customer base so we can better serve and equip them with the products and services they need. We plan to work with our lines of business to identify opportunities that may help remove barriers contributing to the wealth gap that still persists in our society. In addition, we will work to increase our procurement spend with diverse suppliers and help nurture and grow minority-owned businesses.
The changes we are committed to make will not be achieved overnight. I am confdent that with a focused and enduring efort, we will make the positive impact that we, our customers, and our communities expect as we continue this work of a lifetime. – Kleber Santos, Head of Diverse Segments, Representation & Inclusion
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15 Social Impact and Sustainability Highlights
Campaign Corporate
Equality index.
LatinaStyle
ranked Wells Fargo
#12 on its
Top Companies
for Latinas
for 2020.
Diversity, equity, and inclusion
awards and recognition
Wells Fargo earned
a spot on the
Civic 50’s Most
Generous
Companies in
America
list for 2020.
Wells Fargo has
been designated a
Top Military
Friendly
Employer,
Top Military
Friendly
Spouse
Employer, and
Top Supplier
Diversity
Program by
Viqtory Media
for 2021.
Wells Fargo received the
Employers Seal
from the
National Organization
on Disability’s 2020
Employment Tracker.
Wells Fargo ranked
#11
on DiversityInc’s 2020 Top 50 Companies
for Diversity. The company is also recognized
on a number of specialty lists including:
#1
Top Companies for People with Disabilities
#2
Top Companies for Philanthropy
#7
Top Companies for Employee Resources
#8
Top Companies for Supplier Diversity
#14
Top Companies for Mentoring
Top Companies for LGBT Employees
See Wells Fargo Stories
for more examples of
diversity and inclusion at
Wells Fargo.
Wells Fargo earned a
100 percent
rating and was
designated a
“Best Place
to Work
for LGBTQ
Equality”
on the 2021
Human Rights
Wells Fargo is
among the
2021 GEI
Members
in the
Bloomberg
Gender
Equality
Index.
Wells Fargo received
top scores from the
Hispanic
Association
Corporate
Responsibility
Inclusion Index.
Chief Risk Ofcer Mandy
Norton was named to the
2020 OUTstanding
100 LGBT+
Executives.
Wells Fargo ranked
#34
on
Military Times
Best for Vets
list.
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16 Social Impact and Sustainability Highlights
Building a diverse talent pipeline
2020 Global
workforce
2020 U.S.
workforce
2020 Operating
Committee
members self-
identify as
54%
female and
46%
male
56%
female and
44%
male
22.2%
female
77.8%
male
We continue to work toward more
transparency in our reporting of
diversity metrics. Please see the ESG
goals and performance data table (PDF)
for more information.
55%
Caucasian/white
45%
racially/ethnically
diverse
16.7%
racially diverse
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17 Social Impact and Sustainability Highlights
“Marketplace shifts, changing demographics, and
disruption across industries are challenging all
businesses. It’s challenging us to be more innovative
— to think and lead in new ways. For Wells Fargo
to be successful, we must create a truly diverse
and inclusive workforce that brings a diversity of
insight and perspective to all levels of our company.
I frmly believe that our diversity will drive us
to the best ideas and outcomes possible.”
– Charlie Scharf, CEO and President
Diverse Search Requirements
To be successful, we must continue to create a truly diverse and inclusive workforce that brings a wide range of insights and perspectives to all levels of our company. Our Diverse Search Requirement requires that for most U.S. roles with total direct compensation greater than $100,000, at least 50% of interview candidates must be diverse with respect to at least one diversity dimension. Further, at least one interviewer on the hiring panel must represent at least one diversity dimension. For these purposes, our defnition of diversity includes race/ethnicity, gender, LGBTQ, veterans, and people with disabilities.
We’re expanding this program internationally. As of December 31, 2020, the Diverse Search Requirement:
• Applied to approximately 95% of all U.S. roles with total direct compensation greater than $100,000; and
• Applied to approximately 48% of all active U.S. employees irrespective of their total direct compensation
• 91% of applicable requisitions had a diverse interview slate • 94% of applicable requisitions had a diverse interview team
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18 Social Impact and Sustainability Highlights
Attracting and investing in diverse young leaders
Historically Black colleges and universities (HBCUs) continue to empower students to be civic-minded leaders and to take control of their destinies. We work in partnership with HBCUs to provide students the resources they need to gain real-world exposure that supplements their academic pursuits. We also work with Hispanic-serving institutions to identify talent, build engagement, and grow diverse representation at Wells Fargo.
Since 2011, we’ve provided more than $87.3 million to support programming and scholarships to organizations that include the Hispanic Scholarship Fund (HSF), the Thurgood Marshall College Fund (TMCF), and the United Negro College Fund (UNCF).
Wells Fargo provides scholarship and emergency grants to ofset the costs of tuition, fees, room and board, and books for students who are attending HBCUs. In 2020, we also provided direct support for students experiencing academic displacement related to COVID-19, including $512,000 in emergency grants to help students with critical housing, food insecurity, and technology needs.
In 2020, our Supply Chain Management group awarded $50,000 in scholarships to 10 HBCU students enrolled in supply chain management programs at Tennessee State University, Howard University, North Carolina A&T State University, Florida A&M University, and Clark Atlanta University.
“Wells Fargo’s commitment to HBCUs has provided
opportunities for individuals such as myself to pursue
and achieve our goals. Attending an HBCU instills in
you the importance of culture, community, and
achievement. These values are what I sought after for
my post-undergraduate career. I have since made it
my mission, in tandem with Wells Fargo, to aford
other HBCU graduates the same opportunity. Wells
Fargo views HBCUs as a vital part of our strategy and
I’m excited for the continued investment by us to pave
the way for the future leaders of our frm.”
– Shirlethia Evans, Wells Fargo employee
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19 Social Impact and Sustainability Highlights
Helping employees reenter the workforce
The GLIDE program provides an opportunity for professionals to reenter the workforce after a career break and helps lay the foundation for a proper transition back into the workforce. Typically, these are people with at least seven years of experience who have taken a two-year minimum voluntary career break. GLIDE-relaunch “interns” participate in an eight-week program that includes a skills refresh, training curriculum, and senior networking opportunities.
“Relaunching a career after a 13-year break is hard,
but in the middle of a pandemic, nearly impossible.
The Glide-Relaunch program made the impossible not
just achievable, but enjoyable – a feat for which I’m
very grateful
to my fellow Gliders, whose impressive
backgrounds and amazing attitudes continue to
inspire me.”
– Rebecca Hogenhuis,
GLIDE participant
85%
2020 GLIDE were women
program
at a glance: 6%
were veterans
836
applications 88%
received of GLIDE participants
converted into full
34 time roles
interns accepted
56%
of interns were
racially/ethnically
diverse
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20 Social Impact and Sustainability Highlights
Diversity, equity, and inclusion training and engagement Our DE&I curriculum provides the learning tools necessary to establish a core and common Wells Fargo approach to DE&I. Promoting diversity and inclusion in all aspects of business isn’t a choice — it’s an expectation of every employee. We encourage all employees to challenge assumptions, encourage diversity of experience, opinion, and expression, and strive to be more inclusive.
We encourage employees and managers to complete training on unconscious bias, understanding and appreciating diferences, and leading inclusively. We ofer experiential learning programs (done virtually during COVID-19) to provide deeper learning and collaboration on key diversity, equity, and inclusion initiatives and topics. We’re also developing anti-racism training that will be mandatory for managers in 2021.
Team member networks
Our team member networks are devoted to professional growth and education, community outreach, recruiting and retention, business development, and customer insight. The networks are organized by employees who share a common background, experience, or other afnity, and they’re open to all employees. They promote cultural competence and provide a place where employees can connect, learn, build and leverage their skills, and impact business outcomes.
We deliver DE&I
trainings on:
• DE&I
Foundations
• Understanding
Unconscious
Bias:
Infuencers
• Appreciating
Diference
• Managers
Leading
Inclusively
We have 10 team member
networks representing
diversity dimensions
including:
Asian
Black and
African American
Diverse Abilities
Latin
Middle East
My Generation
Native Peoples
PRIDE
Veterans’
Women’s
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21 Social Impact and Sustainability Highlights
Creating a more inclusive future
Wells Fargo is taking steps to create and sustain a more inclusive future by helping to address issues and remove barriers that have impacted the ability of diverse customers and communities to achieve economic empowerment and build wealth.
Diverse customer segments
According to the U.S. Census Bureau, in the coming decades, the U.S. population is projected to grow slowly, to age considerably, and to become more racially and ethnically diverse.
Americans identifying as two or more races will be the fastest-growing ethnic group, projected to grow some 200% by 2060. The Asian population is projected to double, and the Hispanic population will nearly double within the next four decades
1. These individuals will
represent the full economic spectrum of customers. We seek to understand the needs of our diverse customers – leveraging customer feedback, data, analytics, and insights to guide our strategies and help to improve their fnancial well-being. “Our Diverse Segments group is focused on growing
and maximizing positive outcomes for our clients in
all that they do with us and in the community. My
team is focused on creating greater and deeper access
within the capital markets and our corresponding
businesses. With 22 years of experience delivering
client solutions within the Corporate & Investment
Bank, I am extremely excited and proud to lead our
increased and intentional focus on advancing our
Diverse Corporate & Investment Banking clients.”
– Danielle M. Squires, Managing Director, CIB Head of Diverse Segments
1. U.S. Census Bureau. Demographic Turning Points for the United States: Population Projections for 2020 to 2060.
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22 Social Impact and Sustainability Highlights
Wells Fargo
is the largest
lender in low-
and moderate-
income
communities
and the largest
afordable
housing lender
in America
1. “When millions faced evictions and foreclosures due
to the pandemic, Wells Fargo supported housing
initiatives and entrepreneurs who faced challenges
securing funding to keep their businesses open. We
are grateful for their strong partnership and eforts to embrace diversity, equity and inclusion as we chart a
course for the future.”
– Marc Morial, President and CEO, National Urban League Housing afordability
We’re working to increase access to safe, stable, afordable places to live, including transitional housing, rentals, and home ownership, especially for individuals and families historically shut out of the market.
• Wells Fargo has made two signifcant commitments to increase Hispanic and Black homeownership over 10 years by making $185 billion in home purchase loans to Hispanic and Black borrowers, increasing the diversity of our mortgage sales team, and providing $25 million in homebuyer education and counseling.
– In 2016, we committed to increasing Hispanic homeownership over 10 years through $125 billion in home purchase loans to Hispanic borrowers. Through 2020, we helped 188,460 Hispanic families and individuals become homeowners through $48.7 billion in mortgage fnancing.
– In 2017, we pledged to create at least 250,000 Black homeowners in 10 years through lending $60 billion for home purchases to Black borrowers. Through 2020, we helped 72,759 Black families and individuals become homeowners through $18.6 billion in mortgage fnancing.
Hispanic
representation
within our
mortgage
production team
is currently
15.7%
Black
representation
within our
mortgage
production team
is currently
4.6%
1. According to the Mortgage Bankers Association, 2020.
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23 Social Impact and Sustainability Highlights
• Dream. Plan. Home. In November of 2020, Wells Fargo Home Lending launched a new program called “Dream. Plan. Home. ” , which provides a closing cost credit on a limited basis in fve metropolitan areas. The program will address one of the key barriers facing frst-time homebuyers by providing up to $5,000 toward closing costs to make it easier for low- and moderate-income families to purchase a home. This program aligns with our eforts to help drive economic growth, sustainable homeownership, and neighborhood stability in low- and moderate-income communities.
Adding an equity lens to charitable giving
Wells Fargo’s Social Impact and Sustainability team is working to understand and overcome revenue disparities for diverse-led organizations. Revenues of Black-led organizations are on average 24% smaller than the revenues of white-led organizations, according to research by the nonprofts * Echoing Green and The Bridgespan Group. According to a 2020 report by Exponent Philanthropy*, 74% of participating foundations had no board members of color and 78% had no staf members of color. Learn more about how Wells Fargo is adding an equity lens to personal and charitable giving and service here. “The COVID-19 pandemic has impacted the fnancial
lives of all Americans, but its impact on renters and
communities of color has been especially devastating.
Wells Fargo funding for programs like Virtual
Financial Coaching
* and our partnership with the
Housing Partnership Network* (HPN) to create Renter
Advantage* are examples of how they are making
a diference to support nonproft organizations
dedicated to directly assisting in areas of greatest
need while improving fnancial inclusion for African
American and Hispanic populations.”
– Rebecca Steele, President and Chief Executive Ofcer of the National Foundation for Credit Counseling (NFCC)
* We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
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24 Social Impact and Sustainability Highlights
What is an MDI?
MDIs are FDIC-insured depository
institutions in which either minority
individuals represent at least 51%
of voting stock or a majority of the
board of directors is minority and the
community that the institution serves
is predominantly minority. Historically,
there were more than 100 African
American MDIs in the U.S., only about
20 still exist now.
Small business growth
We help small businesses thrive by investing in underserved small-business owners and entrepreneurs through access to capital, capacity building, and growth opportunities.
Minority Depository Institutions (MDIs) serve a vital role in the U.S. fnancial ecosystem by providing ready access to capital and credit in minority and underserved communities, supporting neighborhood revitalization, and driving economic opportunity. Wells Fargo is proud to build on our recent commitment of up to $50 million to African American MDIs by signing the Project REACh MDI Pledge. We’re working to enhance our relationships with MDIs by contributing capital, connections, and expertise to help them grow, so that the communities they serve can prosper. We’ve announced equity investments in six Black owned MDIs.
Diverse Community Capital (DCC) program: The DCC program is a fve-year, $175 million grant program to empower diverse small-business owners with greater access to capital and technical assistance so they can grow and sustain local jobs. Approximately 75% of awardees in the DCC program have diverse leaders. The DCC program is a collaboration with Opportunity Finance Network (OFN) and CDFIs across the country. In 2020, the DCC program 1:
• Made more than 91,000 loans to diverse small businesses • Delivered more than 546,000 hours of technical assistance to diverse small businesses
• Enabled diverse small-business owners to retain and create more than 100,000 jobs Our approximately
$420 million Open
for Business Fund
helps small businesses
navigate the pandemic,
with an emphasis on
those with Black and
racially diverse owners.
1. As reported by Opportunity Finance Network (OFN) based on preliminary results for fscal year 2020.
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25 Social Impact and Sustainability Highlights
Financial health
We’re focused on opening pathways to economic advancement for individuals in low- and moderate-income and underserved communities by challenging systemic barriers and supporting innovation that puts more individuals on a path to wealth creation. • In 2020, we launched Clear Access Banking, a new low-cost and checkless bank account with no overdraft or insufcient funds fees to make it easier for customers to manage their money, make payments, and save. Clear Access Banking meets the Cities for Financial Empowerment Fund’s Bank On National Account Standards* for safe and appropriate fnancial products that can help people enter or reenter the fnancial system. • In 2020, we expanded free fnancial counseling and coaching services and access to other emergency fnancial recovery resources through grants to nonprofts serving vulnerable populations facing fnancial hardships.
• We have partnered with SAGE to develop a digital tool to address economic stability and stress in the aging LGBTQ population. The SAGECents app is a fnancial wellness tool ofering fnancial planning tools and resources geared toward LGBTQ Americans over the age of 50. • We worked with Mission Asset Fund to aid immigrant and diverse communities to move from poverty to living fnancially secure lives. The Lending Circles program ofers zero- interest, credit building loans and tools to enable lower-income people to establish credit and build credit scores.
• Since 2018, our company and the Wells Fargo Foundation have provided more than $50 million in philanthropic funding to Native-focused nonprofts, working to address economic, social, and environmental issues.
Learn more by visiting Wells Fargo Stories
“For over 50 years, UnidosUS has been dedicated to
dismantling systemic barriers preventing Latinos
from achieving our full potential and achieving our
dreams. As we strive to make social and economic
advancement a reality for our community, we count
on partners like Wells Fargo. Working together, we’re
building a stronger fnancial future for Latinos and
for generations to come.”
– Janet Murguía, President and CEO, UnidosUS
* We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
Financial health
services include:
• Understanding
and improving
credit scores
• Establishing new
bank accounts
• Financial
counseling and
coaching
• Savings planning
• Retirement
planning
• Budgeting
and debt
management
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26 Social Impact and Sustainability Highlights
Expanding supplier diversity outreach
Through our supplier diversity program we seek to close the racial wealth gap, ensure inclusive procurement, and create opportunity. A key part of our commitment to diversity, equity, and inclusion is developing and engaging certifed minority, women, LGBTQ, veteran, disabled, and small businesses. Supplier diversity adds value to our organization by ensuring
that our supplier base mirrors the customers and communities we serve. Our Supply Chain Management group works to ensure that we integrate diversity into our strategic sourcing and procurement processes by establishing and supporting relationships with the diverse business community, developing these businesses for growth, and engaging with community organizations that share our commitment.
We have steadily increased our annual spending with diverse suppliers from $824 million in 2013 to nearly $1.4 billion in 2020, representing 12% of our total controllable spending, and surpassing the fnancial services industry average of 9.3%
1. In addition to direct spending with diverse suppliers, in 2020 we invested $1 million in funding diverse business development and capacity building programs.
Wells Fargo Supplier Diversity
received three prestigious
recognitions:
• 2020 Top Corporation for
Disability-Owned Businesses by
Disability:IN
• America’s Top Corporations for
Women’s Business Enterprises
presented by the Women’s
Business Enterprise National
Council
• 2020 Best Corporations for
Veteran’s Business Enterprises
from the National Veteran-
Owned Business Association
1. As reported by Financial Services Roundtable for Supplier Diversity.
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27 Social Impact and Sustainability Highlights
* We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
Supporting the transition to
a low-carbon economy
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28 Social Impact and Sustainability Highlights
Letter from the Head of Social Impact
and Sustainability
Over the past year, we have seen the efects of climate change in yet another unprecedented fre season, along with devastating storms, deep freezes, and ruinous fooding, all while facing the spread of a global pandemic.
COVID-19 has laid bare the challenges that race and income disparity infict on hard- working people who are simply trying to stay safe, feed their families, and remain housed – challenges that are and will continue to be exacerbated by climate change.
Despite the many challenges 2020 presented, Wells Fargo made tremendous progress in further embedding sustainability across the enterprise. As you will read in more detail below, we deployed signifcant capital in support of sustainable businesses and projects, hit milestones in renewable energy fnancing and operational sustainability, and implemented a robust ESG disclosure program to elevate our transparency on nonfnancial metrics. The Wells Fargo Innovation Incubator achieved great success in supporting cleantech innovation and startups struggling through the pandemic, and our Resilient Communities program continued to help communities better prepare for and respond to the impacts of climate change. We also laid the groundwork for a major step in our enterprise climate strategy.
In early 2021, Wells Fargo announced an ambitious goal — to align our business activities with the goals of the Paris Climate Agreement and achieve net-zero greenhouse emissions by 2050, including our fnanced emissions. In announcing this goal, our CEO Charlie Scharf stated, “the risks of not taking action are too great to ignore, and collective action is needed to avoid the signifcant impact on our most vulnerable communities. ”
The journey to net-zero is a complex one, and we’ve identifed concrete frst steps, which include measuring, disclosing, and setting targets for emissions in high-carbon sectors; accelerating the deployment of capital to support low-carbon opportunities; and innovation in climate fnance. We have a responsibility to work closely with our clients in how they address these issues and align their own business models to a low-carbon economy.
We place great value on being a trusted partner and believe that engagement rather than divestment is the fastest pathway to achieving economywide net zero ambitions. Of course we will also continue to build on the tremendous progress we are making in our operational sustainability and supporting national and local nonproft organizations focused on community resiliency and environmental justice.
Climate change is one of the most signifcant environmental and social issues of our time.
We are committed to leveraging our expertise and market position across our value chain and our stakeholder relationships to accelerate a just transition to a low-carbon future. – Nate Hurst, Head of Social Impact & Sustainability
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29 Social Impact and Sustainability Highlights
Wells Fargo’s climate commitment
In March 2021, Wells Fargo set an ambitious climate
goal to achieve net-zero greenhouse emissions by
2050 — including our fnanced emissions. While we
build on a strong foundation, we know the pathway
to net-zero will be complex. Near-term priorities
for Wells Fargo include the following:
• Measure and disclose fnanced emissions for
select carbon-intensive portfolios, and set
interim emission reduction targets by the
close of 2022
• Launch an Institute for Sustainable Finance to
deploy $500 billion to sustainable businesses and
projects by 2030, support innovation in climate
fnance and clean technologies, and advance
community resiliency
• Support clients’ eforts in their low-carbon
transitions, including quantifying their emissions
• Advocate for policy initiatives that support
clients’ low-carbon transitions, as well as those
that advance the goals of the Paris Agreement
• Integrate climate considerations into
Wells Fargo’s Risk Management
Framework
Supporting a just transition to a low-carbon economy
Trillions of dollars of sustainable capital fows will be required to adequately avoid, sequester, and redirect greenhouse gas (GHG) emissions. Deploying capital to accelerate and scale the next generation of fnancial products and services gives us an opportunity to integrate climate, environmental, and social factors into our lending, securities, and investing products and services. We are positioned to play a central role in providing sustainable fnance capital and information to the marketplace and supporting a just transition to a low-carbon economy. One example of how we’re engaging on this topic is our sponsorship of and contributions to the Climate Finance Markets and the Real Economy Report
* (PDF) by the Global Financial Markets Association (GFMA) and Boston Consulting Group (BCG), which outlines the global need and market structure required to accelerate the mobilization of capital.
Sustainable fnance
In 2018, we announced that Wells Fargo would provide $200 billion in fnancing to sustainable businesses and projects by 2030, with at least 50% of that focused on transactions that directly support the transition to a low-carbon economy, including renewable energy, clean technology, and green-building. Since then, we have provided approximately $74.6 billion in fnancing to sustainable businesses and projects. And 71% of that was allocated towards low-carbon opportunities.
We established the Sustainable Finance Center of Excellence (SFCOE) in 2020 to guide our environmental and social fnance business activities, particularly those focused on accelerating climate-aligned, sustainable fnance. The SFCOE brings business intelligence to internal partners throughout Wells Fargo and supports product innovation and engagements that help advance collective action on such issues as climate adaptation, resiliency, environmental justice, and climate mitigation (e.g., deployment of clean technology). * We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
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30 Social Impact and Sustainability Highlights
Engaging
climate
experts
Wells Fargo is proud
to collaborate with
leading scientists
and organizations to
advance a low-carbon
economy and accelerate
sustainable fnance
more broadly.
Evaluating our fnanced emissions
We recognize that the direct and indirect emissions of our customers — referred to as fnanced emissions — represent a far larger source of emissions than those from our own operations. In 2020, we developed a preliminary model of our Scope 3, fnanced emissions.
Ultimately, we aim to cultivate repeatable, consistent metrics for fnanced emissions that inform the complex undertaking of setting a science-based GHG reduction target. For more information, see our Task Force for Climate-Related Financial Disclosures Report (PDF).
Understanding environmental and social impacts
Wells Fargo’s Environmental and Social Risk Management (ESRM) team continues to work to strengthen policies and processes related to how our company seeks to manage and govern our environmental and social risk. ESRM Framework (PDF) provides information and transparency on the company’s approach to managing environmental and social risks, including those related to climate change.
Climate Impact Risk Forum
In 2020, we established an enterprise Climate Impact Risk Forum to oversee the company’s approach to managing climate-related risks. The Forum is a cross-functional group that includes senior leaders from across the company.
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31 Social Impact and Sustainability Highlights
Addressing climate resilience, adaptation,
and mitigation in vulnerable communities
We’re working across our business and with our partners to help build a more sustainable, inclusive future for all. Minority and low-income neighborhoods and Tribal lands are often disproportionately afected by pollution due to decades of potential environmental degradation that may result from industrial siting, operations, waste and emissions, or the impacts of climate change (drought, longer fre and hurricane seasons, fooding, etc.).
See Wells Fargo Stories for more examples of our
environmental impact.
Resilient communities program
In 2017, the Wells Fargo Foundation and the National Fish and Wildlife Foundation launched the Resilient Communities Program — a four-year initiative designed to help communities better prepare for and respond to the impacts of climate change by investing in such natural features as wetlands, resilient shorelines, urban tree canopies, natural forests, and healthy upstream watersheds and by providing conservation and resilience training for community leaders.
The program places special emphasis on helping traditionally low- and moderate-income communities build capacity, and also supports American Indian, Alaskan Native, and other Indigenous communities whose livelihoods and economies rely on their self-determined management of water, land, and other natural resources.
With a $12.4 million investment by Wells Fargo, the program was able to attract additional private and public funds and grantee matching contributions to generate a total conservation impact of more than $45 million.
Projects funded across the U.S. between 2017 and 2020 are working to:
• Restore and/or improve 180,000 acres of land through land management • Protect 26,000 acres of land under conservation easements • Restore 13,000 acres of wetlands
• Plant 71,000 trees
• Eliminate 3 million gallons of storm water annually
• Engage 137,000 community members in community resilience eforts
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32 Social Impact and Sustainability Highlights
Wells Fargo has
been carbon
neutral in our
operations
since 2019.
GRID Alternatives Tribal Solar
Accelerator Fund
With help from Wells Fargo, GRID Alternatives has
grown into a national leader in making renewable
energy technology and job training accessible to
underserved communities and helping low-income
homeowners save on energy and housing costs. In
2018, GRID and Wells Fargo launched the Tribal Solar
Accelerator Fund (TSAF) to catalyze the growth of
solar energy and expand solar job opportunities in
Tribal communities across the U.S. The TSAF is helping
Tribes across the country achieve energy sovereignty.
The Spokane Tribe’s Children of the Sun Solar Initiative was the frst project selected for TSAF funding. This 650-kilowatt solar initiative was born in response to the 2016 Cayuse Mountain Fire, which burned 18,000 acres on the Spokane reservation and cut power to the tribe’s main administrative buildings and water supply. For the Spokane Tribe, solar represents a way to save money, create new economic opportunity, and strengthen community resilience.
Supporting clean technology innovation
The Wells Fargo Innovation Incubator* (IN2), a collaboration with U.S. Department of Energy National Renewable Energy Laboratory (NREL) and the Donald Danforth Plant Science Center (Danforth Center), is a proven model for accelerating the path to market for clean technology and agriculture companies. The Wells Fargo Foundation funded IN 2 with
an additional $20 million to extend the award-winning program through 2024.
In 2020, IN2:
• Made $900,000 in grants to help clean technology and sustainable agriculture startups retain staf and bring their solutions to market
• Added six new startups, bringing the total portfolio of companies to 46 at year-end • Opened referrals for two new technology incubation rounds • Saw three portfolio companies be acquired by more established companies, which means that innovative climate solutions addressing air conditioning and climate-friendly refrigerants, microgrid management and energy storage, as well as multifamily housing technologies that decrease energy use, are now available in the larger economy Wells Fargo
Innovation
Incubator
was named a
fnalist for the
Corporate Social
Responsibility
Award-
Diversifed
*.
* We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
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33 Social Impact and Sustainability Highlights
“BRITE Energy Innovators is the state of Ohio’s Energy
Incubator. In 2020, our country saw its fair share
of change, but we are no strangers to the roads less
traveled. Due to our partnership with Wells Fargo and
IN
2 we were able to provide critical services to help
more founders create new energy technologies than
any year before. Our founders were more diverse and
were able to pivot products through the pandemic
to meet the world’s needs. We even had the world’s
frst electric truck and a battery Gigafactory land in
our back yard. With partners like Wells Fargo, the
Midwest’s future is BRITE.”
– Rick Stockburger, President and CEO, BRITE Energy
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34 Social Impact and Sustainability Highlights
Climate disclosures
Wells Fargo is a signatory
of the Task Force
on Climate-Related
Financial Disclosures
(TCFD) and has published
our inaugural TCFD
Report (PDF). Please
also refer to our ESG
Report (PDF) and ESG
Goals and Performance
Data (PDF) for additional
information on our
environmental metrics.
Driving operational sustainability
We’re working toward more energy and resource efciency in our own operations to help our company be more resilient to climate change. We strive to provide environmentally responsible, safe, and healthy spaces for all of our stakeholders. Over the years, we’ve set a number of goals (PDF) related to operational sustainability and, despite a highly irregular year for occupancy of our properties due to COVID-19, we were able to make great strides on our operational sustainability journey. We continue to leverage industry best practices and set challenging goals to improve our full portfolio.
Goal 2020 results
Reduce energy consumption 40% from
2008 baseline
Achieved
Purchase renewable electricity to meet
100% of our global operations needs by
the close of 2017
Achieved
Reduce greenhouse gas emissions 45%
from 2008 baseline
Achieved
Achieve LEED® certifcation for 35% of
buildings (by leased and owned square
footage)
Goal not achieved
1 Reduce water consumption 65% from
2008 baseline
Achieved
Reduce total waste stream 50% from
2010 baseline
Achieved
1. Wells Fargo has completed 900 LEED certifed projects totaling more than 44 million square feet. This stretch goal has enabled Wells Fargo to drive green building requirements into design, construction, and operations thereby improving all buildings in the portfolio, not just the newest buildings.
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35 Social Impact and Sustainability Highlights
Wells Fargo’s
2020 CDP
Supplier
Engagement
Ranking is
A-
Renewable Energy at Wells Fargo
Wells Fargo has been meeting 100% of its global electricity needs with renewable energy since 20171. In support of the second phase of our renewable energy commitment — transition to long-term agreements that fund new sources of renewable energy — Wells Fargo entered into a number of long-term contracts supporting development of more than 750 megawatts of net-new renewable energy assets2. Nearly 200 megawatts of allocated capacity from these assets is expected to meet 25% of Wells Fargo’s global electricity needs, while supporting the job creation, tax revenue, and carbon reduction in communities where our customers and employees live and work.
Since its inception in 2005 through November
2020, the Wells Fargo Renewable Energy and
Environmental Finance (REEF) team provided
fnancing to 13% of the utility scale wind and solar
investments in the U.S. Since 2006, REEF has provided
more than $10 billion in tax equity fnancing in
support of more than 500 renewable energy projects
across the country.
Supply chain sustainability
We’re engaging our suppliers on our sustainability journey, and we continue to participate in the CDP Supply Chain program, which encourages our suppliers to demonstrate their commitment to environmental sustainability and take measures to improve where possible.
In 2020, the response rate was 72%, up from 64% in 2019. We see this as particularly noteworthy, given the impact of COVID-19 on so many businesses and sustainability teams.
Wells Fargo’s 2020 CDP Supplier Engagement Ranking (SER) is A-. The SER assesses performance on governance, targets, Scope 3 emissions, and value chain engagement in the CDP climate change questionnaire. Of the more than 5,000 companies that participated, Wells Fargo ranked in the top 15%. We’re in the fnal stages of completing customized education support for our suppliers who received a score of B- or less from CDP . In 2020, we augmented the training to address COVID-19’s impact and the importance of business continuity planning for small and diverse-certifed companies.
1. Renewable energy sources include onsite solar, long-term contracts that fund net-new sources of ofsite renewable energy, and the purchase of renewable energy and renewable energy certifcates (RECs).
2. Construction of new assets will occur in 2021 and 2022.
Wells Fargo has
been carbon
neutral in our
operations
since 2019.
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36 Social Impact and Sustainability Highlights
Environmental awards and recognition
For the frst time, Wells Fargo
ranked #1 in the fnancial
sector for Environment
and Communities on the
Forbes Just 100 list* .
Wells Fargo was awarded
the top prize for Sustained
Excellence by S&P Global
Platts at its 2020 Global
Energy Awards*. The
Sustained Excellence
category recognizes
companies that embrace
efcient and renewable
energy in their operations
in order to reduce their
environmental impact
and help foster a
low-carbon future.
Wells Fargo was awarded the
2021 Fitwel Promise
Award: Most
Registrations of
All-Time
,
as well as the
Tenant with the Most
Fitwel Registrations
in 2020
award by the Center for Active
Design in recognition of the
company’s industry-leading
use of the Fitwel platform to
drive continuous improvement
in building occupant health
and well-being.
Curt Radkin, strategic
planning manager within
our Corporate Properties
Group, was named an
Environment +
Energy Leader
100 honoree
*.
This annual recognition goes
to those who have broken
new ground or advanced
best practices to help their
companies — or the industry
as a whole — achieve great
success in commercial and
industrial environment and
energy management.
* We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
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37 Social Impact and Sustainability Highlights
Forward-looking statements
This Report contains forward-looking statements about the Company’s future activities, plans, objectives, and expectations forward-looking statements can be identifed by words such as “anticipates, ” “intends, ” “plans, ” “seeks, ” “believes, ” “estimates, ” “expects, ” “target, ” “projects, ” “outlook, ” “forecast, ” “will, ” “may, ” “could, ” “should, ” “can” and similar references to future periods. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difcult to predict. You are urged to not unduly rely on forward-looking statements, as actual results may difer materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to refect changes or events that occur after that date.
For more information about factors that could cause actual results to difer materially from expectations, please refer to our reports fled with the Securities and Exchange Commission (SEC), including the discussion under “Forward-Looking Statements” and “Risk Factors” in our 2020 Annual Report on Form 10-K as fled with the SEC and available on its website at www.sec.gov*.
Securities and Exchange Commission flings
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports are available free of charge on our website as soon as practical after they are electronically fled with or furnished to the SEC. These reports and amendments also are available free of charge on the SEC’s website at www.sec.gov*. * We do not control the website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
1073
Confidential – For Discussion & General Information Purposes Only Commitment to Social Responsibility
in Berkeley, California
1074
Berkeley, CA 2
Wells Fargo Bank in Berkeley, California
*LMI = low to moderate income
Our people and location information as of March 2022
• 4 banking locations, including 1 in
LMI* community
• 21 ATMs, 6 in LMI communities
• 73 team members live here
• 55 team members work here
Our locationsOur people
Bank Moody’s S&P Fitch
Wells Fargo Bank, NA Aa1(cr) A+ AA-
JP Morgan Chase Bank Aa1(cr) A+ AA
Bank of America Aa2(cr) A+ AA-
US Bank Aa2(cr) AA- AA-
Citibank Aa3(cr) A+ A+
(cr) – Reflects Moody’s Counterparty Risk Assessment
Source: Bloomberg as of January 21, 2021
Credit ratings
Deposit share Rank # Total deposits ($000)
32.43% #1 $2,077,121
Source: FDIC Deposit Market Share Report as of June 30, 2021 FDIC deposit market share
Wells Fargo continues to be among
the highest credit-rated U.S. banks
1075
Berkeley, CA 3
Diversity and Social Inclusion
Make sure all people feel respected and
have equal access to resources and
opportunities to succeed.
Creating solutions to pressing societal challenges.
Corporate Responsibility Priorities
Wells Fargo is dedicated to making meaningful, inclusive, and enduring contributions as our communities address and recover from these challenges. We’re focused on addressing systemic issues and supporting an inclusive recovery as we aim to break down barriers to enable a better future.
Philanthropy and Volunteerism
Create meaningful change by supporting
the communities that we live and work in.
Economic Empowerment
Strengthen financial education and
economic opportunities in underserved
communities
Environmental Sustainability
Accelerate the transition to a low‐ carbon
economy and help reduce climate change
impacts.
See Corporate Responsibility — Wells Fargo for additional information.
1076
Philanthropy and Volunteerism
1077
Berkeley, CA 5
Philanthropy and Volunteerism
$475MM Donated Nationally
Through our businesses and the Wells Fargo
Foundation, our charitable contributions totaled
$475 million in 2020
$52.3MM Donated in California
Wells Fargo businesses and foundation charitable
contributions in California totaled $52.3 million.
1,769 employees volunteered 59,004 hours to
non-profit organizations.
1,960 employees donated $2,427,608 in
California.
2020 Employee giving
Participants = 78 Amount = $7,641
2020 Employee volunteer hours
Volunteer hrs = 99 Events = 31
1Community Impact and CRA reflects 2020 data
Charitable giving Total grants $ Amount
2016 Giving 63 $790,875
2017 Giving 114 $1,829,025
2018 Giving 190 $1,503,561
2019 Giving 94 $1,492,304
2020 Giving 26 $1,407,137
TOTAL CHARITABLE GIVING 197 $7,022,902
Charitable Contributions1 in the City of Berkeley
2020 Employee giving
Participants = 78 Amount = $7,641
2020 Employee volunteer hours
Volunteer hrs = 99 Events = 31
1078
Berkeley, CA 6
• California Community Builders Inc.: Wells Fargo funds support three projects:
• Policy research related to increased mortgage capital access for low- and moderate-income communities of color; • Policy research and convenings related to increased multi-family homeownership production; • Research and dissemination related to increasing support for small BIPOC developers. • Resources for Community Development:
• Supporting pre-development for affordable housing in the Bay Area. • Berkeley Student Cooperative Inc.
• Student run affordable housing provider that helped keep 1,260 students stay in college. • Disability Rights Advocates
• Wells Fargo has served on the Board for the past 9 years and we celebrate Kathy Martinez (former Wells Fargo SVP of Accessibility Strategy) as the new CEO of Disability Rights Advocates. • University of California Berkeley Foundation
• Berkeley Food and Housing Project
• Bay Area Council Foundation Berkeley
• Satellite Affordable Housing Associates
Housing Affordability
• We Care Solar
• 1951 Coffee
Company
• Multicultural
Institute
• Earth Island
Institute Inc.
• Hospital De La
Familia Foundation
• Regents of the
University of
California at
Berkeley
• Small Business
Growth: Data For
Social Good
Foundation
• Regents of the
University of
California at
Berkeley
• Berkeley Repertory
Theatre
• National
Interscholastic
Cycling Association
Job Training Social Services Small Business GrowthArts & Culture Civic Engagement • Center For
Creative Land
Recycling
• Bay Nature
Institute
• Rose Foundation
For Communities
and the
Environment
Environment
Berkeley non-profits supported by Wells FargoPage 45 of 59 1079
Berkeley, CA 7
Local non-profit support
Wells Fargo provided general operating support to BFHP as they faced its greatest challenge ever in responding to the pandemic. Housing the homeless both increases their safety and that of the wider population; a housed person is less likely to contract and spread COVID-19. During the COVID-19 outbreak and SIP order, Wells provided additional funding for:
1. 24/7 Operations of Dwight Way Shelters to allow 81 clients to shelter in place.
2. Implementation of programming for 18 trailers for homeless clients at 2 sites in Berkeley and a single-family home for the duration of the outbreak.
3. Continuation of the Meals Program, providing 300+ meals daily to those in need.
4. Team Hope outreach to those living on the street and providing them hotel rooms during SIP.
5. Roads Home outreach to veterans experiencing homelessness to secure safe shelter in hotel rooms.
6. Referring and transitioning shelter clients to Operation Comfort (at the Oakland Comfort) or to Safer Ground, which houses clients 65+ with pre-existing medical conditions at the Radisson.
7. Completing daily Wellness Checks for clients in shelters, hotels and transitional housing.
Checks include COVID-19 screening following CDC guidelines.
8. Disinfecting all areas shelters and transitional housing facilities frequently.
9. Ensuring clients follow COVID-19 hygiene practices (daily showering, frequent handwashing, etc).
Terner Housing Innovation Labs announced a three-year
partnership with Wells Fargo to support solutions at the intersection of housing affordability, equity, and sustainability.
This partnership will help the Housing Lab, Terner’s accelerator program, continue to support housing affordability and equity innovations, while adding a focus on the planet. Environmental sustainability broadly includes carbon reduction, materials innovations, and building for climate resilience.
Satellite Affordable Housing Associates: Wells Fargo grant funds support SAHA's Clifton Hall creating 40 new units of permanent supportive housing for 40 homeless, COVID-vulnerable seniors. The Hall was formerly a college dormitory and in additional to the permanent supportive housing on floors 3 and 4, will include a family shelter on floors 1 and 2. This is new model of transforming hotels into housing for the homeless was an innovation from the State as a result of the COVID pandemic and the need to transition homeless vulnerable residents into a safe place to avoid worsening the pandemic and to address the homeless crises in our cities.
1080
Home Ownership
1081
Berkeley, CA 9
Housing Support in Berkeley, California
1Community Impact and CRA reflects 2020 data
Total loans $ Amount
Home purchases 499 $441,967,000
Home improvement 161 $56,639,000
Home refinance 856 $539,939,000
Other mortgage 87 $50,106,000
TOTAL HOME MORTGAGE 1,603 $1,055,651,000
Home mortgage lending from 2016-2020 in Berkeley1
In 2020, Wells Fargo provided 2 community development
loans totaling $15.6 million and 12 community development investments totaling $814,461
Total $ Amount
Affordable Housing Loans 12 $26,740,000
Community Services Loans 3 $8,082,000
Community Development Investments 65 $6,191,000
TOTAL COMMUNITY DEVELOPMENT 80 $41,013,000
2016-2020 Community Development support in Berkeley1
1082
Berkeley, CA 10
Wells Fargo Community Lending & Investment
Affordable Housing Investments
Grayson Apartments:
Wells Fargo provided funding to support a 23-unit development on San Pablo Avenue at the corner of Grayson Street that includes 18 one-bedroom apartments and 5 two-bedroom apartments. Funding includes commitments from the City of Berkeley, Alameda County and State HCD and 17 project- based Section 8 vouchers provided by the Berkeley Housing Authority.
Thirteen units will be set aside for people with special needs including nine units for youth transitioning out of the foster system, three units for people living with HIV/AIDS, and one unit for a generally disabled person.
YMCA of the East Bay:
Wells Fargo provided $9.5MM investment to help purchase and renovate a 9,017 sq/ft two-story building in Alameda County. The 50-year-old building will become the new Cherryland Early Learning Center (ELC), a vibrant new facility for YMCA of the East Bay, providing high quality early childhood education and wraparound services for 80 low-income children ages 0-5. The Cherryland neighborhood has one of the highest needs for early learning sites, yet it is among the least served neighborhoods per capita in Alameda County. The renovated building will include six classrooms (two preschool rooms and four infant/toddler rooms), a meeting room, kitchen, restrooms, reception area, and offices. Cherryland ELC will provide free, year-round, full-day care for 80 children, ages 0-5. All 80 seats will be Early Head Start or Head Start seats, and 100% of the families are expected to meet federal poverty guidelines for income or other categorical eligibility requirements such as homelessness. The project is expected to create or retain 20 FTE permanent jobs.
1083
Economic Empowerment
1084
Berkeley, CA 12
Economic Empowerment
Source: https://www.wellsfargo.com/about/corporate-responsibility/economic-empowerment/ $400 Million To Help Entrepreneurs stay ‘Open for Business’ To help small businesses impacted by the ongoing COVID-19 pandemic keep their doors open, retain employees, and rebuild, Wells Fargo is making an industry-leading commitment by donating approximately $400 million in gross processing fees from the Paycheck Protection Program. Through a new Open for Business Fund, Wells Fargo will provide support for nonprofit organizations who serve small businesses, particularly businesses owned by underrepresented individuals — a group disproportionately affected by the pandemic — to provide needed capital, offer technical support, and develop long-term resiliency programs.
The program launched with an initial $28 million aimed at supporting Black- and African American-owned small businesses, which are closing at nearly twice the rate of the industry, according to the National Bureau of Economic Research (PDF). The first grantees are:
Expanding Black Business Credit to support the launch of the Black Vision Fund, which will increase capital to Black-focused Community Development Financial Institutions, also known as nonprofit or community lenders, to close the racial wealth gap in African American communities. LISC (Local Initiatives Support Corporation) will team up with social impact platform Kiva to provide grants and low-cost capital to more than 2,800 entrepreneurs with a focus on preventing loss in revenue, sustaining employment, and averting vacancies among vulnerable small business owners in urban and rural markets nationwide
Financial success for our customers and our business starts with the success of local communities. We’re strengthening economic opportunities in underserved communities by empowering individuals and small businesses with the products, services, knowledge, and tools needed to ensure financial self‐sufficiency, income mobility, and ultimately, improved well‐being and quality of life Our 2020 Commitments
• Expand access to high‐quality, affordable, and responsible financial products and services to help underserved consumers enter the financial mainstream, increase savings, improve credit, and build assets • Strengthen the financial capabilities of underbanked consumers and our own team members • Stabilize local economies and low‐ to moderate‐income neighborhoods through affordable housing, philanthropy, community development investments, and other critical community services • Empower small businesses with access to the capital and financial services needed to start, operate, and grow
1085
Small Business Lending
1086
Berkeley, CA 14
Small business lending in Berkeley, California
Of that, 117 were in LMI communities
totaling $7.1 million in credit
781 small business
loans extending
$45.2 million in credit
Small Business Loans by Size # of loans $ Amount
$100,000 or less 3,011 $121,696,000
$100,000 to $250,000 165 $23,779,000
$250,000 to $1,000,000 190 $1,503,561
TOTAL SMALL BUSINESS LOANS 3,250 $185,993,000
Small business loans in Berkeley from 2016-2020
$50M
invested in Black owned Minority Depository
Institutions (MDIs) part of our commitment to
support MDIs with capital and technical assistance
for Black and African American homeowners, small
businesses, and individuals.
$175M
invested in Wells Fargo Diverse Community Capital
(DCC), to empower diverse small business owners to
grow and sustain local jobs.
Support for Berkeley small businesses last year $1B Small Business Financing Approximately $1 billion in available financing is
expected to help entrepreneurs through the Open
for Business Fund
1087
Berkeley, CA 15
Empowering small businesses to thrive
* Data as of 06/09/2021
282,000
PPP loans for small businesses since 2020
$420M
In grants to non-profits serving small businesses
through the open for Business Fund
84%
of Open for Business Fund grants support
diverse-owned small business
1.7M
Small business employees are back to work
through PPP lending
Wells Fargo is donating roughly $420 million ($250 million for capital to CDFIs, $50 million for technical assistance, and $100+ million for long-term resiliency programs)
Open For
Business
Fund
1088
Diversity, Equity, and Inclusion
1089
Berkeley, CA 17
Diversity, equity, and inclusion
Meeting the increasingly diverse needs of Wells Fargo’s global customer base is critical for our company’s long-term growth and success. We’re committed to advancing diversity, equity, and inclusion by helping ensure that all people across our workforce, our communities, and ou r supply chain feel valued and respected and have equal access to resources, services, products, and opportunities to succeed.
We define diversity as the unique combination of various dimensions that makes each of us different from and similar to others. Those dimensions can include — but are not be limited to — age, gender, ethnic heritage, race, physical or mental abilities, sexual orientation, valu es, religion/spiritual practice, income, family status, education, and geographic location.
Our Team (as of 01/01/2020)
• 271,151 employees globally
• 45% of our U.S. workforce is ethnically/racially diverse • 55.2% of our global workforce are female
• 8,800+ veteran employees in the U.S.
• Our Employee Resource Networks:
• Asian Connection
• Black & African American Connection
• Disability Connection
• Hispanic & Latino Connection
• Middle East Connection
• Generation Connection
• Native Peoples Connection
• Pride Connection
• Veterans’ Connection
• Women’s Connection
Source: Wells Fargo Social Responsibility - https://www.wellsfargo.com/about/diversity/diversity-and-inclusion/ $175MM Invested to Grow Local Jobs
We’re empowering diverse small business owners to grow
and sustain local jobs by investing $175 million in Wells Fargo Diverse Community Capital (DCC)
Helping 72K+ Black Homeowners
Through 2020, we helped 72,759 Black families and
individuals become homeowners through $18.6 billion in
mortgage financing
Helped 188K+ Hispanic Homeowners
Through 2020, Wells Fargo helped 188,460 Hispanic families and individuals become homeowners through $48.7 billion in mortgage financing
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Berkeley, CA 18
Diversity, equity, and inclusion awards and recognition See Wells Fargo Stories for more examples of diversity and inclusion at Wells Fargo Wells Fargo
ranked #34
on Military
Times Best
for Vets list
Wells Fargo earned
a spot on the Civic
50’s Most
Generous
companies in
America list for
2020
Wells Fargo has been
designated a Top Military
Friendly Employer,
Top Military spouse Employer
and top Supplier
Diversity program by
Viqtory Media
for 2021
Wells Fargo
received the
Employers Seal
from the National
Organization on
Disability’s 2020
Employment
Tracker
LatinaStyle
ranked
Wells Fargo #12
on its Top
Companies for
Latinas for 2020.
Wells Fargo ranked
On DiversityInc’s 2020 Top 50 companies
for Diversity.
#1 Top companies for people with Disabilities
#2 Top companies for Philanthropy
#7 Top companies for Employee Resources
#8 Top companies for Supplier Diversity
#14 Top companies for LGBT employees
#11
Wells Fargo is
among the 2021
GEI Members in the
Bloomberg Gender
Equality Index
Wells Fargo
received top scores
from the Hispanic
Association
Corporate
Responsibility
inclusion Index
Wells Fargo earned
a 100 percent
rating and was designated a
“Best Place to Work for LGBTQ
Equality” on the 2021 Human
Rights Campaign Corporate
Equality Index.
Chief Risk Officer
Mandy Norton was
named to the 2020
Outstanding 100
LGBT+ Executives
The Company is also recognized on several specialty lists including
1091
Environmental Sustainability
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Environmental sustainability
At Wells Fargo, we are working to embed environmental sustainability throughout our products, services, operations, and culture to drive efficiencies and responsible resource use while creating comfortable, safe, and healthy workplaces. We believe that climate change continues to be one of the most urgent environmental and social issues of our time, and we are working across our valu e chain to help accelerate the transition to a low-carbon economy and reduce the impacts of climate change on our business, communities, employees, and customers.
Wells Fargo commitment to the environment
• 100% of all Wells Fargo operating energy needs are met by renewable energy
• Wells Fargo owned or financed 8.1% of all wind & solar energy in the US last year
• Provided $17.6 billion in financing for renewable energy, clean technology, and sustainable business last year for a total of $74.6 billion since 2018
• Reduced water consumption 67% since 2008
• Reduced energy consumption by 44% since 2008
• Reduced total waste by 60% since 2010
• 26.2 million square feet of LEED‐certified space totaling 33% of total square footage
• 58,631 hours volunteered on environmental projects
Let The Sun Shine
Financing from Wells Fargo helped
Kern High School District in
California install SunPower® Helix™
Carport solar systems at 25 of its
sites. These systems have panels on
top that absorb sunlight, produce
clean energy, and generate power
for 23 schools and two
administrative buildings, while also
providing shade. The district expects
to save $80 million in electricity
costs over 25 years, while also
conserving energy.
$75B to Support Sustainability
Wells Fargo deployed $75 billion in financing to
sustainable businesses and projects to accelerate
the transition to a low-carbon economy