Berkeley City Council
July 11, 2023

Tuesday, July 11, 2023 AGENDA Page 1

AG E N D A

BERKELEY CITY COUNCIL MEETING
Tuesday, July 11, 2023
6:00 PM
SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702 TELECONFERENCE LOCATION - 1404 LE ROY AVE, BERKELEY, CA 94708 TELECONFERENCE LOCATION - 18315 RAY’S ROAD, CABIN 5, PHILO, CA 95466

JESSE ARREGUIN, MAYOR
Councilmembers:

DISTRICT 1 – RASHI KESARWANI DISTRICT 5 – SOPHIE HAHN
DISTRICT 2 – TERRY TAPLIN DISTRICT 6 – SUSAN WENGRAF
DISTRICT 3 – BEN BARTLETT DISTRICT 7 – RIGEL ROBINSON
DISTRICT 4 – KATE HARRISON DISTRICT 8 – MARK HUMBERT
This meeting will be conducted in a hybrid model with both in -person attendance and virtual participation . For in- person attendees, face coverings or masks that cover both the nose and the mouth are encouraged. If you are feeling sick, please do not attend the meeting in person.

Live captioned broadcasts of Council Meetings are available on Cable B -TV (Channel 33) and via internet accessible video stream at http://berkeley.granicus.com/MediaPlayer.php?publish_id=1244.

Remote participation by the public is available through Zoom. To access the meeting remotely: Join from a PC, Mac, iPad, iPhone, or Android device: Please use this UR L: https://cityofberkeley- info.zoomgov.com/j/1607533030. If you do not wish for your name to appear on the screen, then use the drop down menu and click on "rename" to rename yourself to be anonymous. To request to speak, use the “raise hand” icon by rolling over the bottom of the screen. To join by phone: Dial 1-669-254-5252 or 1 -833-568-8864 (Toll Free) and enter Meeting ID: 160 753 3030. If you wish to comment during the public comme nt portion of the agenda, Press *9 and wait to be recognized by the Chair.

Please be mindful that the meeting will be recorded and all rules of procedure and decorum apply for in-person attendees and those participating by teleconference or videoconference.

To submit a written communication for the City Council’s consideration and inclusion in the public record , email [email protected].

This meeting will be cond ucted in accordance with the Brown Act, Government Code Section 54953 and applicable Executive Orders as issued by the Governor that are currently in effect . Any member of the public may attend this meeting. Questions regarding this matter may be addresse d to Mark Numainville, City Clerk, (510) 981-6900. The City Council may take action related to any subject listed on the Agenda. Meetings will adjourn at 11:00 p.m. - any items outstanding at that time will be carried over to a date/time to be specified.

Tuesday, July 11, 2023 AGENDA Page 2
Preliminary Matters
Roll Call:

Land Acknowledgement Statement: The City of Berkeley recognizes that the community we live in was built on the territory of xučyun (Huchiun (Hooch-yoon)), the ancestral and unceded land of the Chochenyo (Cho-chen-yo)-speaking Ohlone (Oh-low-nee) people, the ancestors and descendants of the sovereign Verona Band of Alameda County. This land was and continues to be of great importance to all of the Ohlone Tribes and descendants of the Verona Band. As we begin our meeting tonight, we acknowledge and honor the original inhabitants of Berkeley, the documented 5,000 -year history of a vibrant community at the West Berkeley Shellmound, and the Ohlone people who continue to reside in the East Bay. We recognize that Berkeley’s residents have and continue to benefit from the use and occupation of this unceded stolen land since the City of Berkeley’s incorporation in 1878. As stewards of the laws regulating the City of Berkeley, it is not only vital that we recognize the history of this land, but also recognize that the Ohlone people are present members of Berkeley and other East Bay communities today. The City of Berkeley will continue to build relationships with the Lisjan Tribe and to create meaningful actions that uphold the intention of this land acknowledgement.

Ceremonial Matters: In addition to those items listed on the agenda, the Mayor may add additional ceremonial matters.

City Manager Comments: The City Manager may make announcements or provide information to the City Council in the form of an oral report. The Council will not take action on such items but may request the City Manager place a report on a future agenda for discussion.

Public Comment on Non-Agenda Matters: Persons will be selected to address matters not on the Council agenda. If five or fewer persons wish to speak, each person selected will be allotted two minutes each. If more than five persons wish to speak, up to ten persons will be selected to address matters not on the Council agenda and each person selected will be allotted one minute each. Persons attending the meeting in-person and wishing to address the Council on matters not on the Council agenda during the initial ten-minute period for such comment, must submit a speaker card to the City Clerk in person at the meeting location and prior to commencement of that meeting. The remainder of the speakers wishing to address the Council on non-agenda items will be heard at the end of the agenda.

Consent Calendar
The Council will first determine whether to move items on the agenda for “Action” or “Information” to the “Consent Calendar”, or move “Consent Calendar” items to “Action.” Three members of the City Council must agree to pull an item from the Consent Calendar or Information Calendar for it to move to Action.

Items that remain on the “Consent Calendar” are voted on in one motion as a group. “Information” i tems are not discussed or acted upon at the Council meeting unless they are moved to “Action” or “Consent”.

No additional items can be moved onto the Consent Calendar once public comment has commenced. At any time during, or immediately after, public comment on Information and Consent items, any Councilmember may move any Information or Consent item to “Action.” Following this, the Council will vote on the items remaining on the Consent Calendar in one motion.

For items moved to the Action Calendar from the Consent Calendar or Information Calendar, persons who spoke on the item during the Consent Calendar public comment period may speak again at the time the matter is taken up during the Action Calendar.

Consent Calendar
Tuesday, July 11, 2023 AGENDA Page 3
Public Comment on Consent Calendar and Information Items Only: The Council will take public comment on any items that are either on the amended Consent Calendar or the Information Calendar. Speakers will be entitled to two minutes each to speak in opposition to or support of Consent Calendar and Information Items. A speaker may only speak once during the period for public comment on Consent Calendar and Information items.

Additional information regarding public comment by City of Berkeley employees and in terns: Employees and interns of the City of Berkeley, although not required, are encouraged to identify themselves as such, the department in which they work and state whether they are speaking as an individual or in their official capacity when addressing the Council in open session or workshops.

Consent Calendar

1. FY 2024 Tax Rate: Fund Fire Protection and Emergency Response and Preparedness (Measure GG)
From: City Manager, City Manager
Recommendation: Adopt second reading of Ordinance No. 7,877-N.S. setting the FY 2024 tax rate for funding Fire Protection and Emergency Response and Preparedness in the City of Berkeley at the rate of $0.06062 (6.062 cents) per square foot of improvements for dwelling units and setting the rate for all other property at $0.09173 (9.173 cents) per square foot of improvements.

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Henry Oyekanmi, Finance, (510) 981-7300, David Sprague, Fire, (510) 981- 3473

2. FY 2024 Special Tax Rate: Fund the Provision of Library Services From: City Manager, City Manager
Recommendation: Adopt second reading of Ordinance No. 7,878-N.S. setting the FY 2024 tax rate for funding the provision of Library Services in the City of Berkeley at $0.2698 (26.98 cents) per square foot for dwelling units and $0.4080 (40.80 cents) per square foot for industrial, commercial, and institutional buildings.

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Henry Oyekanmi, Finance, (510) 981-7300, Tess Mayer, Library, (510) 981- 6100

3. FY 2024 Annual Appropriations Ordinance
From: City Manager
Recommendation: Adopt second reading of Ordinance No. 7,879-N.S. adopting the FY 2024 Annual Appropriations Ordinance (AAO) in the amount of $728,631,293 (gross appropriations) and $621,229,929 (net appropriations).

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Sharon Friedrichsen, Budget Manager, (510) 981-7000

Consent Calendar
Tuesday, July 11, 2023 AGENDA Page 4

4. Adopting a temporary exemption from the collection of taxes under BMC Chapter 9.04.136(D): Tax Rate for Non-Medical and Medical Cannabis Businesses
From: Councilmember Bartlett (Author), Mayor Arreguin (Co-Sponsor), Councilmember Harrison (Co-Sponsor), Councilmember Humbert (Co- Sponsor)
Recommendation: Adopt second reading of Ordinance No. 7,880-N.S. adopting a temporary exemption (per 9.04.136(D)) on the collection of the taxes for all non- medical and medical cannabis businesses, retroactive to January 2023 and ending July 2025; Waive any late penalties that may have accrued since January 2023; any and all tax payments already made to the City for Q1 2023 will apply as a credit against a future tax or fee payment to the City.

First Reding Vote: All Ayes.

Financial Implications: Loss of tax revenue
Contact: Ben Bartlett, Councilmember, District 3, (510) 981-7130

5. Encampment Resolution Funding Grant Award
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to receive a $4,931,058 Encampment Resolution Funding Round 2 grant award from the State of California, and to enter into contract and all necessary amendments with the State of California resulting from this funding.

Financial Implications: See report
Contact: Peter Radu, City Manager's Office, (510) 981-7000

6. Urgency Ordinance for Leasing the Real Property at 1619 University Avenue From: City Manager
Recommendation: Adopt an Urgency Ordinance to enter into a lease for the real property located at 1619 University Avenue, Berkeley for a term of 60 months.

Financial Implications: See report
Contact: Peter Radu, City Manager's Office, (510) 981-7000

7. Contract: Insight Housing (formerly Berkeley Food and Housing Project) to operate interim housing at the Super 8
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute a contract and all necessary amendments with Berkeley Food and Housing Project to operate an interim housing program at the Super 8 Motel (1619 University Ave.) in an amount not to exceed $7,295,635 for the period of August 1, 2023 to July 31, 2028
Financial Implications: See report
Contact: Peter Radu, City Manager's Office, (510) 981-7000

Consent Calendar
Tuesday, July 11, 2023 AGENDA Page 5

8. Formal Bid Solicitations and Request for Proposals Scheduled for Possible Issuance After Council Approval on July 11, 2023
From: City Manager
Recommendation: Approve the request for proposals or invitation for bids (attached to staff report) that will be, or are planned to be, issued upon final approval by the requesting department or division. All contracts over the City Manager’s threshold will be returned to Council for final approval.

Financial Implications: Various Funds - $482,500
Contact: Henry Oyekanmi, Finance, (510) 981-7300

9. Contract: Strategic Economics and Street Level Advisors for Affordable Housing Requirements Economic Feasibility Analysis
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager or her designee to execute a contract and any amendments with Strategic Economics as a Contractor and Street Level Advisors as a subcontractor, to conduct an Economic Feasibility Analysis of the Affordable Housing Requirements for the Department of Health, Housing, and Community Services (HHCS) from July 15, 2023 to July 15, 2024 in an amount not to exceed $150,000.

Financial Implications: See report
Contact: Lisa Warhuus, Health, Housing, and Community Services, (510) 981-5400

10. Contract No. 32300134 Amendment: Bonita House for Specialized Care Unit Provider
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager or her designee to amend Contract No. 32300134 with Bonita House to add $68,000 of Mental Health Services Act (MHSA) funding for the Specialized Care Unit for a not- to-exceed total of $4,568,000.

Financial Implications: See report
Contact: Lisa Warhuus, Health, Housing, and Community Services, (510) 981-5400

11. Contract No. 321001100 Amendment: JotForm, Inc. for a HIPAA Compliant Platform to Support Clinical Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager or her designee to execute an amendment to Contract No. 32100110 and any subsequent amendments or extensions with the JotForm, Inc. by adding $53,424, bringing the contract total to an amount not to exceed $109,218 and extending the end date through May 12, 2026.

Financial Implications: See report
Contact: Lisa Warhuus, Health, Housing, and Community Services, (510) 981-5400

Consent Calendar
Tuesday, July 11, 2023 AGENDA Page 6

12. California Department of Housing and Community Development (HCD) Prohousing Designation Program Application
From: City Manager
Recommendation: Adopt a Resolution authorizing the City of Berkeley’s application to and participation in the California Department of Housing and Community Development (HCD) Prohousing Designation Program.

Financial Implications: See report
Contact: Lisa Warhuus, Health, Housing, and Community Services, (510) 981-5400

13. Contract No. 32000226 Amendment: MidAmerica Administrative & Retirement Solutions, Third Party Administrator for SRIP I Disability, and Health Reimbursement Accounts for Retiree Health Premium Assistance Plan Reimbursements, and Police Employees Retiree Income Plan From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute a contract amendment to Contract No. 32000226 with MidAmerica Administrative & Retirement Solutions for administration of the SRIP I Disability, Retiree Health Premium Assistance Plan (RHPAP) Health Reimbursement Account (HRA), and Police Employees Retiree Income Plans (PERIP) for the period covering January 1, 2021 through December 31, 2025, for a total cost not to exceed $233,736.

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800

14. Contract No. 32300158 Amendment: AppleOne Employment Services for Temporary Staffing Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32300158 with AppleOne Employment Services for temporary staffing services, to cover the period February 1, 2023 to June 30, 2025, for a total cost not to exceed $750,000.

Financial Implications: Various Funds - $750,000
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800

15. Revisions to the Unrepresented Employee Manual
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute changes to the Unrepresented Employee Manual that (1) effectuates merit raises for employees on salary ranges on their anniversary date in their current classification; (2) aligns vacation accrual, longevity pay rates, vacation sell-back policies, and a certification differential for the Fire Chief, the Police Chief, and their deputies with the corresponding provisions of the Memoranda of Understanding with the Berkeley Fire Fighters Association and the Berkeley Police Association; and (3) includes Accounting Office Specialists III among the classifications that qualify for the City Manager Department Differential.

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800

Consent Calendar
Tuesday, July 11, 2023 AGENDA Page 7

16. Supplemental Military Leave Compensation Policy
From: City Manager
Recommendation: Adopt a Resolution extending Resolution No. 63,646-N.S. to offer the City’s supplemental military leave compensation benefit retroactively from June 1, 2019 to June 30, 2025 to provide additional wages to supplement an employee’s military pay and allowances for a period not to exceed two (2) years that must be taken within 36 months of the leave request for employees called up to involuntary active military service. To receive the retroactive payment the employee must have been employed with the City of Berkeley at the time of active duty and remained employed with the City of Berkeley at the time of payment.

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800

17. Accepting grant funds from the Alameda County Transportation Commission for the Berkeley Pier Water Transportation / Ferry Project From: City Manager
Recommendation: Adopt a Resolution accepting the Alameda County Transportation Commission grant allocation for the Berkeley Pier Water Transportation/ Ferry Project in the amount of $5,138,685, confirming the City’s commitment to the Alameda County Transportation Commission grant requirements, and authorizing the City Manager to execute the associated grant agreement and amendments.

Financial Implications: Grant Revenue - $5,138,685
Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700

18. Contract No. 32000188 Amendment: GSI Environmental Inc. for On-Call Environmental Consulting Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32000188 with GSI Environmental Inc. for on-call environmental consulting services to increase the contract amount by $75,000 for a new not to exceed amount of $225,000 and extend the contract term from December 20, 2023 to June 30, 2025.

Financial Implications: See report
Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700

Consent Calendar
Tuesday, July 11, 2023 AGENDA Page 8

19. Contract No. 32300022 Amendment: Public Safety Family Counseling Group Inc. for Additional Critical Incident Stress Management (CISM), Education and Counseling Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32300022 with Public Safety Family Counseling Group Inc. to provide additional CISM Peer Support Team support, education and counselling services, for a total amount not to exceed $150,000 for a total contract amount not to exceed $200,000, and extending the term through June 30, 2026.

Financial Implications: See report
Contact: Jennifer Louis, Police, (510) 981-5900

20. Conduct a Study on the City’s History of Discriminatory Actions in Housing Policies/Programs
From: Housing Advisory Commission
Recommendation: Conduct a study that is comprehensive of the following actions: - Document the city of Berkeley’s past discriminatory actions in housing policies and programs that adversely impacted the Black community and its ability to remain and grow in the city, build inter-generational wealth, and fully realize the benefits of homeownership; -Inform future housing policy and program development and implementation to address these historic discriminatory practices; and -Provide data and information about historic discriminatory housing policies and programs in support of the city’s on-going reparations work. -Select community organization(s) as partners in the study to ensure a comprehensive community engagement process that documents lived experiences and local history so that lessons learned from those experiences can inform future housing policies and programs.

Financial Implications: See report
Contact: Mike Uberti, Commission Secretary, (510) 981-7400

Council Consent Items

21. Berkeley Housing Authority Board of Commissioners Re-Appointments From: Mayor Arreguin (Author)
Recommendation: Adopt a Resolution re-appointing Alexandria Thomas-Rodriguez, Max Levine and Ali Kashani to the Berkeley Housing Authority Board of Commissioners.

Financial Implications: None
Contact: Jesse Arreguin, Mayor, (510) 981-7100

Council Consent Items
Tuesday, July 11, 2023 AGENDA Page 9

22. Support Rooftop Solar and Battery Storage for Multifamily Housing and Schools
From: Mayor Arreguin (Author), Councilmember Hahn (Co-Sponsor) Recommendation: Adopt a Resolution in support of viable Virtual Net Energy Metering (VNEM) and Net Energy Metering Aggregation (NEM-A) tariffs. Submit a copy of the Resolution to Governor Gavin Newsom, State Senator Nancy Skinner, Assemblymember Buffy Wicks, and members of the California Public Utilities Commission Board (CPUC).

Financial Implications: Staff time
Contact: Jesse Arreguin, Mayor, (510) 981-7100

23. Relinquishment of Council Office Budget Funds for Chavez/Huerta Tribute Site From: Mayor Arreguin (Author), Councilmember Hahn (Co-Sponsor) Recommendation: Adopt a Resolution approving the expenditure of up to $5,000 from Mayor Arreguín, and any other Councilmembers, to the Kala Art Institute, the fiscal sponsor for the Chavez/Huerta Tribute Site, with funds relinquished from the City’s General Fund for the purpose of hiring of grounds keepers and providing the resources needed for the maintenance of the Chavez/Huerta Tribute Site, from the discretionary Council Office Budgets of Mayor Arreguín and any other Councilmembers who would like to contribute.

Financial Implications: $5,000 – Mayor’s Discretionary Fund Contact: Jesse Arreguin, Mayor, (510) 981-7100

24. Excused Absence for Vice Mayor Ben Bartlett
From: Mayor Arreguin (Author)
Recommendation: Excuse Vice Mayor Ben Bartlett from the June 6, 2023 Council meeting as a result of an illness of a close family member who needed immediate care.

Financial Implications: None
Contact: Jesse Arreguin, Mayor, (510) 981-7100

25. Berkeley Humane: Bark (& Meow) Around the Block: Relinquishment of Council Office Budget Funds from General Funds and Grant of Such Funds From: Councilmember Taplin (Author), Councilmember Hahn (Co-Sponsor), Councilmember Humbert (Co-Sponsor)
Recommendation: Adopt a Resolution approving the expenditure of council office budget funds, including $500 from Councilmember Taplin, to support the Bark (& Meow) Around the Block adoption event hosted by Berkeley Humane, with funds relinquished to the City’s general fund.

Financial Implications: $500 – Councilmember’s Discretionary Fund Contact: Terry Taplin, Councilmember, District 2, (510) 981-7120

Council Consent Items
Tuesday, July 11, 2023 AGENDA Page 10

26. Berkeley High School All Class Reunion: Relinquishment of Council Office Budget Funds from General Funds and Grant of Such Funds From: Councilmember Taplin (Author), Councilmember Hahn (Co-Sponsor) Recommendation: Adopt a Resolution approving the expenditure of council office budget funds, including $500 from Councilmember Taplin, to support the Berkeley High School All Class Reunion Committee (BHS ACRC) by way of its fiscal sponsor, the Berkeley Public Schools Fund, with funds relinquished to the City’s general fund.

Financial Implications: $500 – Councilmember’s Discretionary Fund Contact: Terry Taplin, Councilmember, District 2, (510) 981-7120

27. Resolution for unionized employees of REI
From: Councilmember Bartlett (Author), Mayor Arreguin (Co-Sponsor), Councilmember Harrison (Co-Sponsor) Councilmember Kesarwani (Co- Sponsor)
Recommendation: Adopt a Resolution of Support for the unionized employees of Recreational Equipment, Inc. (REI) in Berkeley, California that instructs REI to live up to its values, by ceasing to withhold the 2022 “Summit Pay”, and bargain in good faith.

Financial Implications: None
Contact: Ben Bartlett, Councilmember, District 3, (510) 981-7130

28. Relinquishment of Council Office Budget Funds and Co-Sponsorship of the César Chávez Dolores Huerta Tribute Site Curriculum Project From: Councilmember Harrison (Author), Mayor Arreguin (Author), Councilmember Hahn (Co-Sponsor)
Recommendation: Adopt a resolution approving an expenditure of D13 funds and cosponsorship of the César Chávez/Dolores Huerta Tribute Site Curriculum Project, with $250 relinquished to the City’s general fund for this purpose each from Mayor Arreguín’s and Councilmember Harrison’s discretionary Council Office Budget Funds, and from any other Councilmembers who would like to contribute.

Financial Implications: $250 – Councilmembers’ Discretionary Fund Contact: Kate Harrison, Councilmember, District 4, (510) 981-7140

29. Resolution Opposing Tokyo Electric Power Company and the Government of Japan’s Planned Discharge of Wastewater from Fukushima Daiichi Nuclear Power Plant into the Pacific Ocean
From: Councilmember Harrison (Author)
Recommendation: Adopt a Resolution opposing Tokyo Electric Power Company (TEPCO) and the government of Japan’s plan to discharge wastewater from Fukushima Daiichi Nuclear Power Plant into the Pacific Ocean and send copies of this resolution to Secretary Blinken, Senator Dianne Feinstein, Senator Alex Padilla, and Representative Barbara Lee.

Financial Implications: Staff time
Contact: Kate Harrison, Councilmember, District 4, (510) 981-7140

Action Calendar
Tuesday, July 11, 2023 AGENDA Page 11
The public may comment on each item listed on the agenda for action. For items moved to the Action Calendar from the Consent Calendar or Information Calendar, persons who spoke on the item during the Consent Calendar public comment period may speak again during one of the Action Calendar public comment periods on the item. Public comment will occur for each Action item (excluding public hearings, appeals, and/or quasi-judicial matters) in one of two comment periods, either 1) before the Action Calendar is discussed; or 2) when the item is taken up by the Council.

A member of the public may only speak at one of the two public comment periods for any single Action item.

The Presiding Officer will request that persons wishing to speak line up at the podium, or use the "raise hand" function in Zoom, to determine the number of persons interested in speaking at that time. Up to ten (10) speakers may speak for two minutes. If there are more than ten persons interested in speaking, the Presiding Officer may limit the public comment for all speakers to one minute per speaker. Speakers are permitted to yield their time to one other speaker, however no one speaker shall have more than four minutes. The Presiding Officer may, with the consent of persons representing both sides of an issue, allocate a block of time to each side to present their issue.

Action items may be reordered at the discretion of the Chair with the consent of Council.

Action Calendar – Scheduled Public Comment Period
During this public comment period, the Presiding Officer will open and close a comment period for each Action item on this agenda (excluding any public hearings, appeals, and/or quasi -judicial matters). The public may speak on each item. Those who speak on an item during this comment period may not speak a second time when the item is taken up by Council.

Action Calendar – Public Hearings
Staff shall introduce the public hearing item and present their comments. For certain hearings, this is followed by five-minute presentations each by the appellant and applicant. The Presiding Officer will request that persons wishing to speak line up at the podium, or use the "raise hand" function in Zoom, to be recognized and to determine the number of persons interested in speaking at that time.

Up to ten (10) speakers may speak for two minutes. If there are more than ten persons interested in speaking, the Presiding Officer may limit the public comment for all speakers to one minute per speaker.

Speakers are permitted to yield their time to one other speaker, however no one speaker shall have more than four minutes. The Presiding Officer may with the consent of persons representing both sides of an issue allocate a block of time to each side to present their issue.

When applicable, each member of the City Council shall verbally disclose all ex parte contacts concerning the subject of the hearing. Councilmembers shall also submit a report of such contacts in writing prior to the commencement of the hearing. Written reports shall be available for public review in the office of the City Clerk.

Action Calendar – Public Hearings
Tuesday, July 11, 2023 AGENDA Page 12

30. Zoning Ordinance Amendments to Title 23 of the Berkeley Municipal Code to Conform to State Law, and Make Non-Substantive Technical Edits From: City Manager
Recommendation: Conduct a public hearing and, upon conclusion, adopt the first reading of an Ordinance amending the following sections of the Zoning Ordinance to match State law relating to special needs housing (including supportive and transitional housing, emergency shelter, navigation center), employment housing, and family day care, and to make technical edits, corrections and other non- substantive amendments:
-23.202.020 Allowed Land Uses (Residential Districts)
-23.202.110 R-4 Multi-Family Residential District
-23.204.020 Allowed Land Uses (Commercial Districts)
-23.204.040 Use Specific Regulations (Commercial Districts) -23.204.060 C-U University Commercial District
-23.206.020 Allowed Land Uses and Permit Requirements (Manufacturing Districts) -23.206.040 Use Specific Regulations (Manufacturing Districts) -23.206.050 Protected Industrial Uses
-23.206.080 MU-LI Mixed Use-Light Industrial District (Land Use Regulations) -23.302.070 Use-Specific Regulations (Supplemental Use Regulations) -23.304.030 Setbacks
-23.304.040 Building Separation in Residential Districts -23.308.020 Applicability and Nonconformities (Emergency Shelters) -23.308.030 Standards for Emergency Shelters
-23.324 Nonconforming Uses, Structures, and Buildings
-23.324.010 Chapter Purpose
-23.324.050 Nonconforming Structures and Buildings
-23.502.020 Glossary
Financial Implications: None
Contact: Jordan Klein, Planning and Development, (510) 981-7400 Action Calendar – New Business

31. Staff Shortages: City Services Constrained by Staff Retention Challenges and Delayed Hiring
From: Auditor
Recommendation: We recommend City Council request that the City Manager report back by January 2024, and every six months thereafter, regarding the status of our audit recommendations until reported fully implemented. Some of our recommendations include: establish retention goals and conduct an analysis of staff needed for city operations and services; consider staff capacity around new legislation; take steps to improve employee satisfaction; identify opportunities for efficiency in the hiring process, and modernize its recruiting process; expand the telework policy to align with best practices; and regularly collect data on employee satisfaction and on diversity, equity, inclusion, and accessibility.

Financial Implications: See report
Contact: Jenny Wong, Auditor, (510) 981-6750

Action Calendar – New Business
Tuesday, July 11, 2023 AGENDA Page 13

32. Referral Response: Affordable Housing Preference Policy for Rental Housing Created Through the Below Market Rate and Housing Trust Fund Programs From: City Manager
Recommendation: Adopt a Resolution to create an Affordable Housing Preference Policy applicable to new residential housing units created via the Below Market-Rate (BMR) and the Housing Trust Fund (HTF) programs consistent with Fair Housing law and government funder approvals, and direct the City Manager to adopt guidelines to administer the Housing Preference Policy.

Financial Implications: See report.

Contact: Lisa Warhuus, Health, Housing, and Community Services, (510) 981-5400

33. Adoption - Civic Center Phase II - Design Concept
From: City Manager
Recommendation: Adopt a Resolution approving Berkeley’s Civic Center Design Concept Plan, and declaring Council’s intention to support the preferred design concept and necessary future studies and projects articulated in the plan.

Financial Implications: See report.

Contact: Liam Garland, Public Works, (510) 981-6300

Council Action Items

34. Dedicated Public Comment Time for City of Berkeley Unions From: Councilmember Hahn (Author), Mayor Arreguin (Co-Sponsor) Recommendation: Adopt a Resolution (Attachment 3 + Exhibits A and B to the report) revising the City Council Rules of Procedure and Order: Section IV. Conduct of the Meeting to:

1. Create a period of public comment reserved for officially designated representatives of City of Berkeley employee unions, immediately following the existing initial ten-minute period of public comment on non-agenda items.

2. Rescind Resolution No. 70,725–N.S.

Financial Implications: None
Contact: Sophie Hahn, Councilmember, District 5, (510) 981-7150

Council Action Items
Tuesday, July 11, 2023 AGENDA Page 14

35. De-Prioritizing the enforcement of laws imposing criminal penalties for Entheogenic/Psychedelic plants and fungi for personal use (Reviewed by the Health, Life Enrichment, Equity, & Community Committee) From: Health, Life Enrichment, Equity & Community Committee Recommendation: Approve the Resolution presented and passed with a qualified positive recommendation at the June 12, 2023 meeting of the Health, Life Enrichment, Equity & Community Committee (Attachment 1), in lieu of the Resolutions provided in the originally referred item and by the Community Health Commission.

Policy Committee Recommendation: to send the item to Council with a qualified positive recommendation to approve the Resolution in the form and as amended by the committee. There is no “mark-up” of the CHC resolution because what the Committee decided to pass is a full rewrite.

Financial Implications: None
Contact: Sophie Hahn, Councilmember, District 5, (510) 981-7150, Ben Bartlett, Councilmember, District 3, (510) 981-7130, Mark Humbert, Councilmember, District 8, (510) 981-7180

Information Reports

36. Annual Report on Landmarks Preservation Commission (LPC) Actions From: Landmarks Preservation Commission
Contact: Fatema Crane, Commission Secretary, (510) 981-7400

37. City Auditor Fiscal Year 2024 Audit Plan
From: Auditor
Contact: Jenny Wong, Auditor, (510) 981-6750

Public Comment – Items Not Listed on the Agenda
Adjournment
NOTICE CONCERNING YOUR LEGAL RIGHTS : If you object to a decision by the City Council to approve or deny a use permit or variance for a project the following requirements and restrictions apply:
1) No lawsuit challenging a City decision to deny (Code Civ. Proc. §1094.6(b)) or approve (Gov. Code 65009(c)(5)) a use permit or variance may be filed more than 90 days after the date the Notice of Decision of the action of the City Council is mailed. Any lawsuit not filed within that 90 -day period will be barred. 2) In any lawsuit that may be filed against a City Council decision to approve or deny a use permit or variance, the issues and evidence will be limited to those raised by you or someone else, orally or in writing, at a public hearing or prior to the close of the last public hearing on the project.

Archived indexed video streams are available at:
https://berkeleyca.gov/your-government/city-council/city-council-agendas.

Channel 33 rebroadcasts the following Wednesday at 9:00 a.m. and Sunday at 9:00 a.m.

Communications to the 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

Tuesday, July 11, 2023 AGENDA Page 15
any other contact information to be made public, you may deliver communications via U.S. Postal Service to the City Clerk Department at 2180 Milvia Street. 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 Department for further information.

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the public counter at the City Clerk Department located on the first floor of City Hall located at 2180 Milvia Street as well as posted on the City's website at https://berkeleyca.gov/.

Agendas and agenda reports may be accessed via the Internet at:
https://berkeleyca.gov/your-government/city-council/city-council-agendas and may be read at reference desks at the following locations:

City Clerk Department - 2180 Milvia Street, First Floor Tel: 510-981-6900, TDD: 510-981-6903, Fax: 510-981-6901 Email: [email protected]

Libraries: Main – 2090 Kittredge Street,
Claremont Branch – 2940 Benvenue, West Branch – 1125 University, North Branch – 1170 The Alameda, Tarea Hall Pittman South Branch – 1901 Russell

COMMUNICATION ACCESS INFORMATION:

This meeting is being held in a wheelchair accessible location.

To request a disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, please contact the Disability Services specialist at (510) 981-6418 (V) or (510) 981-6347 (TDD) at least three business days before the meeting date.

Attendees at public meetings are reminded that other attendees may be sensitive to various scents, whether natural or manufactured, in products and materials. Please help the Ci ty respect these needs.

Captioning services are provided at the meeting, on B -TV, and on the Internet. In addition, assisted listening devices for the hearing impaired are available from the City Clerk prior to the meeting, and are to be returned before the end of the meeting.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the agenda for this meeting 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 29, 2023.

Mark Numainville, City Clerk

Communications
Council rules limit action on Communications to referral to the City Manager and/or Boards and Commissions for investigation and/or recommendations. All communications submitted to Council are public record. Copies of individual communications are available for viewing at the City Clerk Department and through Records Online.

Tuesday, July 11, 2023 AGENDA Page 16
Item #18: Staff Shortages: City Services Constrained by Staff Retention Challenges and Delayed Hiring

1. Steven Lipson

2. Councilmember Hahn
Item #29: Adoption - Civic Center Phase II - Design Concept

3. Jennifer Lovvron, Civic Arts Commission Secretary

4. Jack Kurzweil

5. Diana Bohn

6. Stephen Most

7. Juliet Lamont and Phil Price

8. Tom and Jane Kelly

9. Rachel Katz

10. Steven Finacom

11. Erin Biehm
Hopkins Corridor – Repave and/or Bike Lanes

12. Kester Allen

13. Janet Stromberg

14. David Brandon

15. Kathleen Haberer

16. Kevin Jones

17. David Socholitzky

18. Ernesto

19. Kori Kody

20. Jose Arau

21. Marguerite Lee

22. Trarie Kottkamp

23. Lily Liang

24. Verna Winters

25. Constance Anderson

26. Jeffrey Kaplan

27. Susan Taylor

28. Matthew Skinner

29. Theresa Malki

30. David Coolidge

31. Shirley Kirsten

32. Amber Crowley

33. Barbara Gilbert

34. Meryl Siegal

35. Jennifer Winch

36. Jeanne Allan

37. Barbara Englis

38. Peggy Radel

39. Marguerite Tompkins

40. Sheridan Pauker

41. Michael Frantz

42. Rachel Bradley

Tuesday, July 11, 2023 AGENDA Page 17

43. Isabelle Gaston

44. Jan Woo

45. Dahlia Armon

46. Jean Weininger

47. Renate Crocker

48. Paul Elmore

49. Jacqueline Wilson

50. Susan DeMersseman

51. Justin Kao

52. Dan Alpert

53. Katherine de Runtz

54. Catherine Ryan

55. Steven and Judy Lipson

56. Ernie Mansfield

57. Kay Englund

58. Helen Toy

59. Eric

60. Melanie O’Hare

61. Ilyse Gordis

62. Constance Rivemale

63. Janice Murota

64. Rachel Hope Crossman

65. Stephen Wood

66. Ann Campbell

67. Janice Hamer

68. Jeanne Friedman

69. Zara Ortiz

70. Gar Smith

71. Joan Garvin

72. Richard Tamm

73. Grace Munakata

74. George and Wendy Draper

75. Friends of Hopkins Street

76. John Hitchen

77. Jessica Livingston

78. Timothy Ross

79. Kim Markison

80. Fiona Baker

81. Margret Leventhal

82. Pamela Zelnik

83. Shirley Kirsten

84. Bruce Chamberlain

85. Soleil Taylor

86. Jonah Gollub

87. Shirley Kirsten

88. AJ Romano

Tuesday, July 11, 2023 AGENDA Page 18

89. Bill Hackman

90. Cindi And Howard Goldberg

Fire Department Consultant Report

91. Michael Wilson (2)

92. Liza Lutzker, on behalf of Walk Bike Berkeley

93. Stephen Dalton

Natural Gas Ban

94. John Caner, on behalf of the Downtown Berkeley Association

Horse Deaths

95. Nancy Veerhusenb

96. Christopher Kroll

97. Acacia Schmidt

98. TC Conrad

Celebrating Susan Felix

99. Toby Furash

Unhoused Toileting Letter
100. Friends of Five Creeks

Fully Fund African American Holistic Resource Center
101. Boona Cheema

Kudo’s for the Fire Department
102. L.J. Cranmer

Rent Board Billing Errors
103. Morris

Healthy 4 Change Health Conference
104. Ayanna Davis, on behalf of Healthy Black Families

“Read Banned Books”
105. Todd Andrew
106. Aimee Reeder, on behalf of the Berkeley Public Library

1740 San Pablo Multifamily Housing Program
107. Rachel Durney, NorCal Development, BRIDGE

Overhead Utility Wires
108. Maria Riddle

Tuesday, July 11, 2023 AGENDA Page 19
Automated License Plate Readers
109. Elana Auerbach
110. Diana Bohn

Surveillance Cameras
111. Toni Mester

City Dysfunction
112. Bob Flasher

St. Paul AME Church and Ephesian Church of God Applying for Funding 113. Norma Thompson, on behalf for Community Housing Development Corporation

Help Business’ Get Off the Ground
114. Geoff Lomax

Fireworks in South Berkeley
115. Pamela Michaud (3)
116. Mike Kim

My Tenant’s Rights Stolen by City of Berkeley
117. Deborah Black

Transphobia in Berkeley and Albany
118. Kirstyn Russell and Melissa Neal

Asking for Help from the Mayor and Council
119. Benjamin Stein

URL’s Only
120. Vivian Warkentin (3)
Supplemental Communications and Reports
Items received by the deadlines for submission will be compiled and distributed as follows. If no items are received by the deadline, no supplemental packet will be compiled for said deadline.

• Supplemental Communications and Reports 1
Available by 5:00 p.m. five days prior to the meeting.

• Supplemental Communications and Reports 2
Available by 5:00 p.m. the day before the meeting.

• Supplemental Communications and Reports 3
Available by 5:00 p.m. two days following the meeting.

Ordinance No. 7,877-N.S. Page 1 of 1
ORDINANCE NO. 7,877-N.S.

SETTING THE FISCAL YEAR 2024 SPECIAL TAX RATE TO FUND FIRE PROTECTION

AND EMERGENCY RESPONSE AND PREPAREDNESS (MEASURE GG) IN THE CITY

OF BERKELEY
BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. The FY 2024 Tax Rate for the Fire Protection and Emergency Response and Preparedness (Measure GG) is set at:
$0.06062 per square foot of improvements for dwellings
$0.09173 per square foot of improvements for all other properties Section 2. The cost to taxpayers during FY 2024 will be $72.74 for a 1,200 square foot dwelling and $181.86 for a 3,000 square foot dwelling.

Section 3. This tax rate will result in estimated total collections of $5,631,795 Section 4. The tax imposed by this ordinance does not apply to any property owner whose total personal income, from all sources for the previous calendar year, does not exceed that level which shall constitute a very low income, as established by resolution of City Council.

Section 5. 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.

At a regular meeting of the Council of the City of Berkeley held on June 27, 2023, this Ordinance was passed to print and ordered published by posting by the following vote:

Ayes: Bartlett, Hahn, Harrison, Humbert, Kesarwani, Robinson, Taplin, Wengraf, and Arreguin.

Noes: None.

Absent: None.

Ordinance No. 7,878-N.S. Page 1 of 1
ORDINANCE NO. 7,878-N.S.

SETTING THE FISCAL YEAR 2024 SPECIAL TAX RATE TO FUND LIBRARY

SERVICES TAX IN THE CITY OF BERKELEY
BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. The FY 2024 Tax Rate to support usual and current expenses of operating library services is set at $0.2698 per square foot for dwelling units and $0.4080 per square foot for industrial, commercial and institutional buildings.

Section 2. The cost to taxpayers during FY 2024 will be $404.71 for a 1,500 square foot dwelling and $611.95 for all other property of similar size.

Section 3. This tax rate will result in estimated total collections of $25,050,748.

Section 4. The tax imposed by this ordinance does not apply to any property owner whose total personal income, from all sources for the previous calendar year, does not exceed that level which shall constitute a very low income, as established by resolution of City Council.

Section 5. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of Old City Hall, 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.

At a regular meeting of the Council of the City of Berkeley held on June 27, 2023, this Ordinance was passed to print and ordered published by posting by the following vote:

Ayes: Bartlett, Hahn, Harrison, Humbert, Kesarwani, Robinson, Taplin, Wengraf, and Arreguin.

Noes: None.

Absent: None.

Ordinance No. 7,879-N.S. Page 1 of 8
ORDINANCE NO. 7,879-N.S.

ADOPTING THE ANNUAL APPROPRIATIONS ORDINANCE BASED ON THE ADOPTED BUDGET FOR FISCAL YEAR 2024 AS PROPOSED BY THE CITY

MANAGER AND PASSED BY THE CITY COUNCIL
BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. That the Annual Appropriations Ordinance based on the budget for FY 2024 submitted by the City Manager and passed by the City Council be adopted as follows and as summarized in Exhibit A:

A. General Fund (Funds 001-099) 283,576,217
B. Special Funds (Funds 100-199) 116,996,863
C. Grant Funds (Funds 300-399) 48,558,865
D. Capital Projects Funds (Funds 500-550) 51,452,605
E. Debt Service Fund (Funds 551-599) 13,363,356
F. Enterprise Funds (Funds 600-669) 153,517,230
G. Internal Service Funds (Funds 146, 670-699) 48,309,824 H. Successor Agency (Funds 760-769) 57,120
I. Agency Funds (Funds 771-799) 5,292,752
J. Other Funds (Funds 800-899) 7,506,460
K. Total
Total General Fund 283,576,217
Add: Total Other Than General Fund 445,055,076
Gross Revenue Appropriated 728,631,293
Less: Dual Appropriations -58,350,511
Less: Revolving/Internal Service Funds -49,050,853
Net Revenue Appropriated 621,229,929
Section 2. The City Manager is hereby permitted, without further authority from the City Council, to make the following transfers by giving written notice to the Director of Finance:

Ordinance No. 7,879-N.S. Page 2 of 8
a. From the General Fund to the General Fund – Stability Reserve Fund; Catastrophic Reserve Fund; PERS Savings Fund; Health State Aid Realignment; Fair Election Fund; Capital Improvement Fund; Phone System Replacement; Equipment Replacement Fund; Public Liability Fund; Catastrophic Loss Fund; IT Cost Allocation Fund: Police Employee Retiree Health Assistance Plan; Safety Members Pension Fund; and Sick Leave Entitlement Fund.
b. To the General Fund from the General Fund – Stability Reserves Fund; Catastrophic Reserves Fund; Community Development Block Grant Fund; Street Lighting Assessment District Fund; Zero Waste Fund; Marina Operations and Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Parking Meter Fund; Unified Program (CUPA); and Health State Aid Realignment Fund.
c. To the First Source Fund from the Parks Tax Fund; Capital Improvement Fund; and the Marina Fund.
d. From Measure FF – Public Safety Fund to Paramedic Tax Fund e. From the American Rescue Plan Fund to the General Fund; Marina Fund; Off- Street Parking Fund; and Parking Meter Fund.
f. From Capital Improvement Fund to PERS Savings Fund; Berkeley Repertory Theater Fund; and 2010 COP (Animal Shelter) Fund.
g. To the Public Art Fund from the Parks Tax Fund; Capital Improvement Fund; and the Marina Fund.
h. To CFD#1 District Fire Protection Bond (Measure Q) from Special Tax Bonds CFD#1 ML-ROOS.
i. To Private Sewer Lateral Fund from Sanitary Sewer Operation Fund. j. To Catastrophic Loss Fund from Permit Service Center Fund. k. To Catastrophic Loss Fund from Unified Program (CUPA) Fund. l. To the Building Purchases and Management Fund from General Fund; Health (General) Fund; Rental Housing Safety Program Fund; Measure B Local Streets & Road Fund; Employee Training Fund; Zero Waste Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Building Maintenance Fund; Central Services Fund; and Health State Aide Realignment Trust Fund.
m. To Equipment Replacement Fund from General Fund; Mental Health Services Act Fund; Health (Short/Doyle) Fund; Vector Control Fund; Paramedic Tax Fund;

Ordinance No. 7,879-N.S. Page 3 of 8
Playground Camp Fund; State Transportation Tax Fund; Rental Housing Safety Program Fund; Parks Tax Fund; Street Light Assessment District Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Central Services Fund.
n. To the Equipment Maintenance Fund from General Fund; Health (General) Fund; Mental Health Services Act Fund; Health (Short/Doyle) Fund; Vector Control Fund; Paramedic Tax Fund; Library - Discretionary Fund; Playground Camp Fund; State Transportation Tax Fund; Rental Housing Safety Program Fund; Rent Stabilization Board Fund; Parks Ta Fund; Street Light Assessment District Fund; FEMA Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Central Services Fund.
o. To the Building Maintenance Fund from the General Fund; Health (General) Fund; Health (Short/Doyle) Fund; Measure B Local Street & Road Fund; Parks Tax Fund; Street Light Assessment District Fund; Zero Waste Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Off Street Parking Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Mental Health State Aid Realignment Fund.
p. To the Central Services Fund from the General Fund; First Source Fund; Health (Short/Doyle) Fund; Library-Discretionary Fund; Playground Camp Fund; Rent Stabilization Board Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation; Building Purchases & Management Fund; Building Maintenance Fund; Central Services Fund; and Mental Health State Aid Realignment Fund.
q. To Information Technology Cost Allocation Plan Fund from General Fund; Target Case Management/Linkages Fund; Health (Short/Doyle); Library Fund; Playground Camp Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Rent Stabilization Board Fund; Parks Tax Fund; Street Light Assessment District Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Equipment Maintenance Fund; Building Maintenance Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; and Mental Health State Aid Realignment Fund.
r. To the Workers' Compensation Self-Insurance Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental

Ordinance No. 7,879-N.S. Page 4 of 8
Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority; and Bio-Terrorism Grant Fund.
s. To the Sick Leave and Vacation Leave Accrual Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities

Ordinance No. 7,879-N.S. Page 5 of 8
Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority; and Bio-Terrorism Grant Fund.
t. To the Payroll Deduction Trust Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority; and Bio-Terrorism Grant Fund.

Ordinance No. 7,879-N.S. Page 6 of 8
Section 3. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of Council Chambers, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.

At a regular meeting of the Council of the City of Berkeley held on June 27, 2023, this Ordinance was passed to print and ordered published by posting by the following vote:

Ayes: Bartlett, Hahn, Harrison, Humbert, Kesarwani, Robinson, Taplin, Wengraf, and Arreguin.

Noes: None.

Absent: None.

Ordinance No. 7,879-N.S. Page 7 of 8
Attachment for Annual Appropriations Ordinance - Fiscal Year 2024

REVOLVING FUNDS/INTERNAL SERVICE FUNDS
Appropriations are identified with revolving and internal service funds. Such funds derive revenue by virtue of payment from other fund sources as benefits are received by such funds, and the total is reflected in the "Less Revolving Funds and Internal Service Funds" in item I. The funds are:

DUAL APPROPRIATIONS - WORKING BUDGET
Dual appropriations are identified with revenues generated by one fund and transferred to another fund. Both funds are credited with the applicable revenue, and the total is reflected in the "Less Dual Appropriations" in item I. The dual appropriations are:

Revolving/Internal Service Funds
Employee Training Fund 851,401
Equipment Replacement Fund 6,300,512
Equipment Maintenance Fund 9,296,717
Building Maintenance Fund 4,627,672
Central Services Fund 392,741
Workers' Compensation Fund 6,467,536
Public Liability Fund 3,802,945
17,311,329
Subtotal Revolving/Internal Service Funds 49,050,853$
Information Technology Fund
Transfers to the General Fund
Indirect Cost Reimbursement
CDBG Fund 176,194
Street Light Assessment District Fund 164,811
Zero Waste Fund 2,827,863
Marina Enterprise Fund 423,813
Sanitary Sewer Fund 1,335,826
Clean Storm Water Fund 207,052
Permit Service Center Fund 2,204,064
Unified Program (CUPA) Fund 86,575
Subtotal Transfers to General Fund: 7,426,198$

Ordinance No. 7,879-N.S. Page 8 of 8
Transfer to Safety Members Pension Fund from General Fund 551,804 4,900,000
Transfer to PERS Savings Fund from General Fund 2,000,000 Transfer to Health State Aid Realignment from General Fund 1,953,018 Transfer to Fair Election Fund from General Fund 612,210 Transfer to Capital Improvement Fund (CIP) from General Fund 18,370,905 449,408
Transfer to Equipment Replacement Fund from General Fund 1,081,699 Transfer to Public Liability Fund from General Fund 3,895,888 Transfer to Catastrophic Loss Fund from General Fund 6,278,457 Transfer to IT Cost Allocation Fund from General Fund 71,335 400,136
Transfer to Sick Leave Entitlement Fund from General Fund 201,501 Transfer to General Fund from Health State Aid Realignment Fund 2,643,280 757,925
3,255,743
Transfer from CIP Fund to PERS Savings Fund 151,632
499,802
Transfer from CIP Fund to 2010 COP (Animal Shelter) Fund 402,613 90,501
50,555
5,082
Transfer to General Fund from Parking Meter Fund 1,742,288 450,613
Transfer to First Source Fund from Parks Tax Fund 6,675 Transfer to First Source Fund from Capital Improvement Fund 29,943 Transfer to First Source Fund from Marina Fund 2,625
Transfer to Public Art Fund from Parks Tax Fund 11,681
Transfer to Public Art Fund from Capital Improvement Fund 52,400 Transfer to Public Art Fund from Marina Fund 4,594
Subtotal Transfers to Other Funds: 50,924,313
Sub-Total Dual Appropriations 58,350,511$
Grand Total Dual Appropriations 107,401,364$
Transfer to Phone System Replacement - VOIP from General Fund Transfer to Police Employee Retiree Health Assistance Plan from General Fund Transfer to General Fund from IT Cost Allocation Fund
Transfer to Catastrophic Loss Fund from Permit Service Center Fund Transfer to Catastrophic Loss Fund from Unified Program (CUPA) Fund Transfer to Private Sewer Lateral Fund from Sewer Fund
Transfer to Berkeley Repertory Theater Debt Service Fund from CIP Fund Transfer to Measure U1 Fund from General Fund
Transfer to Paramedic Tax Fund from Measure FF - Public Safety Fund Transfer to General Fund from Amercian Rescue Plan Fund

EXHIBIT A
ERMA
Fund # Fund
FY 2024
Adopted
11 General Fund Discretionary 276,548, 969
16 Measure U1 - Housing 7,027,248
101 Library - Tax 24,642,865
103 Library - Grants 67,526
104 Library - Friends & Gift 150,000
105 Library - Foundation 200,000
106 Asset Forefeiture 201,000
107 Special Tax Measure E 1,673,845
108 First Source Fund 57,676
110 Sec 108 Loan Gty Asst. 587,612
111 Fund Raising Activities 64,048
113 Gilman Sports Field 297,279
115 Animal Shelter 52,480
116 Paramedic Tax 4,981,166
119 Domestic Violence Prev - Vit Stat 26,635
120 Affordable Housing Mitigation 2,998,899
121 Affordable Child Care 13,275
122 Inclusionary Housing Program 610,282
123 Condo Conversion 122,348
125 Playground Camp 3,614,269
126 State-Prop 172 Pub.Safety 442,387
127 State Transportation Tax 5,868,962
128 CDBG 4,792,214
129 Rental Housing Safety Program 2,356,542
130 Measure B - Local St & Road 21,958
132 Measure B - Paratransit 36,797
133 Measure F Alameda County VRF St & Rd 968,796
134 Measure BB - Local St & Road 10,085,614
135 Meaure BB - Bike & Pedestrian 1,484,882
136 Measure BB - Paratransit 969,418
138 Parks Tax 15,963,245
139 Streets and Open Space Improvement (SOSIP) 200,000
140 Measure GG - Fire Prep Tax 5,898,307
142 Streetlight Assesment District 3,217,318
143 Berkeley Bus Ec Dev 156,387
146 Employee Training 851,401
147 UC Settlement 4,931,696
148 Cultural Trust 110,372
149 Private Party Sidewalks 100,000
150 Public Art Fund 118,718
152 Vital & Health Statistics Trust Fund 30,292
156 Hlth State Aid Realign Trust 3,947,649
157 Tobacco Cont.Trust 300,243
158 Mental Health State Aid Realign 4,031,749
159 Citizens Option Public Safety Trust 272,292
161 Alameda Cty Abandoned Vehicle Abatement 128,168

SUMMARY OF APPROPRIATIONS BY FUND
24AAO.xlsx 6/26/2023 12:55 PM

EXHIBIT A
ERMA
Fund # Fund
FY 2024
Adopted

SUMMARY OF APPROPRIATIONS BY FUND
164 Measure FF 8,848,412
165 Fair Elections 612,210
301 Operating Grants - Federal 130,186
302 Operating Grants - State 976,688
306 Capital Grants - State 750,000
307 Capital Grants - Local 100,000
309 OTS DUI Enforcement Education Prg. 137,060
310 HUD/Home 819,770
311 ESGP 273,659
312 Health (General) 2,216,057
313 Target Case Management Linkages 1,046,552
314 Alameda County Tay Tip 35,812
315 Mental Health Service Act 10,792,336
316 Health (Short/Doyle) 6,504,323
317 EPSDT Expansion Proposal 459,456
318 Alcoholic Bev Ctr OTS/UC 55,639
319 Youth Lunch 69,820
320 Sr. Nutrition Title III 178,189
321 CFP Title X 160,967
324 BUSD Grant 363,548
325 Vector Control 246,781
326 Alameda County Grants 777,675
327 Senior Supportive Social Services 124,403
328 Family Care Support Program 88,321
329 CA Integrated Waste Management 5,244
331 Housing Mitigation 1,126,763
333 CALHOME 363,100
334 Community Action 281,777
336 One-Time Grant: No Cap Exp 6,999,778
339 MTC 752,827
340 FEMA 959,325
341 Alameda Cty Waste Mgt. 345,000
343 State Dept Conserv/Recylg 32,000
347 Shelter+Care HUD 6,461,774
348 Shelter+Care County 906,212
349 JAG Grant 55,650
350 Bioterrorism Grant 315,162
354 ARPA - Local Fiscal Recovery Fund 3,647,011
501 Capital Improvement Fund 22,993,379
502 Phone System Replacement 449,408
503 FUND$ Replacement 3,372,446
504 PEG-Public, Education & Government 100,000
511 Measure T1 - Infra & Facil. 18,091,805
512 Measure O 6,445,567
552 09 Measure FF Debt Service 1,337,638
553 2015 GORBS 2,047,259
24AAO.xlsx 6/26/2023 12:55 PM

EXHIBIT A
ERMA
Fund # Fund
FY 2024
Adopted

SUMMARY OF APPROPRIATIONS BY FUND
554 2012 Lease Revenue Bonds BJPFA 499,820
555 2015 GORBS - 2002 G.O. Refunding Bonds 378,696
556 2015 GORBS (2007, Series A) 142,540
557 2015 GORBS (2008 Measure I) 480,184
558 2010 COP (Animal Shelter) 140,085
559 Measure M GO Street & Water Imps 1,630,863
560 Infrastucture & Facilities Measure T1 4,699,006
561 Measure O - Housing Bonds 2,007,265
601 Zero Waste 59,489,630
608 Marina Operation 8,027,559
611 Sewer 32,561,256
612 Private Sewer Lateral FD 80,417
616 Clean Storm Water 6,111,869
621 Permit Service Center 25,508,236
622 Unified Program (CUPA) 849,669
627 Off Street Parking 6,940,920
631 Parking Meter 10,250,256
636 Building Purchases and Management 3,697,419
671 Equipment Replacement 6,300,512
672 Equipment Maintenance 9,296,717
673 Building Maintenance Fund 4,627,672
674 Central Services 392,741
676 Workers Compensation 6,467,536
678 Public Liability 3,802,945
680 Information Technology 17,311,329
762 Successor Agency - Savo DSF 57,120
776 Thousand Oaks Underground 98,448
777 Measure H - School Tax 500,000
778 Measure Q - CFD#1 Dis. Fire Protect Bond 988,982
779 Spl Tax Bds. CFD#1 ML-ROOS 775,623
781 Berkeley Tourism BID 697,882
782 Elmwood Business Improvement District 30,000
783 Solano Ave BID 25,000
784 Telegraph Avenue Bus. Imp. District 583,315
785 North Shattuck BID 210,363
786 Downtown Berkeley Prop & Improv. District 1,383,139 801 Rent Board 7,506,460
GROSS EXPENDITURE: 728,631,293
Dual Appropriations (58,350,511)
Revolving & Internal Service Funds (49,050,853)

NET EXPENDITURE: 621,229,929
24AAO.xlsx 6/26/2023 12:55 PM

Ordinance No. 7,880-N.S. Page 1 of 4
ORDINANCE NO. 7,880-N.S.

ORDINANCE AMENDING SECTION 9.04.136 OF THE BERKELEY MUNICIPAL CODE

TO TEMPORARILY SUSPEND TAXATION OF CANNABIS BUSINESSES ABOVE THE

RATES CHARGED FOR NON-CANNABIS BUSINESSES OF THE SAME TYPE BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. That Berkeley Municipal Code Section 9.04.136 is amended to read as follows:

9.04.136 Cannabis businesses.

A.

1.  Every Medical Cannabis Business that is not a Nonprofit Organization as defined in Section 9.04.305, and every Non-Medical Cannabis Business, shall pay an annual tax for each thousand dollars of gross receipts as provided in Section

9.04.240. If the "Regulate, Control and Tax Cannabis Act of 2010" on the November 2010 state ballot passes and takes effect, the maximum gross receipts rate that may be applied to medical cannabis businesses shall be reduced to 1.8%, or $18 per $1000.

2.  Except as provided in paragraph 1 of this subdivision, the tax on Medical Cannabis Businesses that is imposed by this Section shall be phased in as follows:
(a)  The tax payable in 2011 shall be $18 per $1000 of gross receipts after June 30, 2010.
(b)  The tax payable in 2012 shall be $25 per $1000 of gross receipts after January 1, 2011.
(c)  The tax payable in subsequent years shall be $25 per $1000 of gross receipts during the preceding calendar year.

3. Temporary Exemption
(a) Every Medical Cannabis Business and every Non-Medical Cannabis Business shall be temporarily exempt from the tax rates provided in this section and Section 9.04.020 for the period beginning January 1, 2023 and ending July 1, 2025. This temporary exemption shall apply retroactively beginning January 1, 2023. Payment of taxes due for calendar year 2022 will still be applicable. (b) For the period beginning January 1, 2023 and ending July 1, 2025, in lieu of paying the Medical Cannabis Business and Non-Medical Cannabis Business tax

Ordinance No. 7,880-N.S. Page 2 of 4
rates provided for in this section and Section 9.04.020, each cannabis business will pay the business license tax rate for the business type that most closely represents the nature of its current operations, e.g. retail trade (Section

9.04.145), manufacturing (Section 9.04.185), and wholesale trade (9.04.150). (c) Any late penalties levied between the period of January 1, 2023 and enactment of this amendment including but not limited to penalties provided for in Section 9.04.110 and 9.04.115 shall be waived. Any interest on late penalties accrued pursuant to Section 9.04.120 during this same period shall also be waived.
(d) Any tax payments already made for the first quarter (January 1, 2023 to March 31, 2023) of the 2023 fiscal year shall be applied as a credit against the payment of future taxes or fee payments made pursuant to this Section, including payments due under subsection 9.04.136.A.3.b.

B.  For purposes of this Chapter:

1.  "Medical Cannabis Business" means any activity regulated or permitted by Chapter 12.26 or Title 23 that involves planting, cultivating, harvesting, transporting, dispensing, delivering, selling at retail or wholesale, manufacturing, compounding, converting, processing, preparing, storing, packaging, or testing, any part of the plant Cannabis sativa L. or any of its derivatives, pursuant to Health & Safety Code sections 11362.5 and 11362.7-11362.83.

2.  "Non-Medical Cannabis Business" means any of the activities described in the preceding paragraph that are not conducted pursuant to Health & Safety Code sections 11362.5 and 11362.7-11362.83, but are otherwise authorized by state law.

3.  "Cannabis Business" includes both Medical Cannabis Businesses and Non- Medical Cannabis Businesses.

4.  A Cannabis Business shall be deemed a "Business" under Section 9.04.010 and as that term is used in this Chapter.

C.  For purposes of this Section and Section 9.04.305.A.2, "gross receipts" includes any monetary consideration for medical cannabis whatsoever, including but not limited to: membership dues; reimbursement pursuant to Health & Safety Code sections 11362.5 and 11362.7-11362.83; and any money received for wholesale or retail sales.

D.

1.  The annual tax rate imposed by Section 9.04.240 on Non-Medical Cannabis Businesses shall apply to the sum of gross receipts as defined in Section 9.04.025 and this Section.

2.  The City Council may impose the tax authorized by this Section at a lower rate, and may establish an exemption for Cannabis Businesses whose gross receipts are below a specified amount. The Council may adopt different rates and exemption

Ordinance No. 7,880-N.S. Page 3 of 4
levels for Medical and Non-Medical Cannabis Businesses. No action by the Council under this paragraph shall prevent it from subsequently increasing the tax rate for any type of Cannabis Business to the maximum specified in this Section and Section 9.04.240 or from modifying or eliminating any exemption.

E.  In order to aid in the City’s collection of taxes due under this Chapter and ensure that all Cannabis Businesses are taxed consistently to the best of the City’s ability, beginning January 1, 2011, in any Cannabis Business, that obtains any product containing Cannabis sativa L. or any of its derivatives for monetary consideration that constitutes gross receipts under subdivision (C) for the provider of that Cannabis sativa, shall either:

1.  Report quarterly to the City all such transactions, the monetary consideration involved, and the identity and contact information of the person or entity to whom or to which monetary consideration was provided; or

2.  Collect the tax that would be payable as a result of the transaction from the person or entity to whom monetary consideration was provided and remit it to the City.

F.  The City Manager may promulgate regulations to implement and administer this Section, including allowing Medical Cannabis Businesses to remit taxes more frequently than annually. (Ord. 7160-NS § 1, 2010)
Section 2. Severability
If any section, subsection, sentence, clause, phrase, or word of this Ordinance, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this Ordinance. The Council of the City of Berkeley hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Ordinance or application thereof would be subsequently declared invalid or unconstitutional.

Section 3. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of 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.

Ordinance No. 7,880-N.S. Page 4 of 4
At a regular meeting of the Council of the City of Berkeley held on June 27, 2023, this Ordinance was passed to print and ordered published by posting by the following vote:

Ayes: Bartlett, Hahn, Harrison, Humbert, Kesarwani, Robinson, Taplin, Wengraf, and Arreguin.

Noes: None.

Absent: None.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Peter Radu, Assistant to the City Manager Subject: Encampment Resolution Funding Grant Award

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to receive a $4,931,058.30 Encampment Resolution Funding Round 2 grant award from the State of California, and to enter into contract and all necessary amendments with the State of California resulting from this funding.

FISCAL IMPACTS OF RECOMMENDATION
It is anticipated that the $4,931,058.30 state grant will fully fund two years of operations (i.e., master leasing a motel and contracting with a service provider for the provision of interim housing for persons experiencing homelessness). Extending beyond the first two years will require additional funding. Consistent with the guidance from the Budget and Finance Policy Committee on February 9, 2023, years 3-4 would need to be covered by Measure P. The total anticipated yearly expenses for the program are as follows:
 Year 1 (August 1, 2023 – July 31, 2024) - $2,445,706.91M (funding source:

State ERF)
 Year 2 (August 1, 2024 – July 31, 2025) - $2,462,504.31M (funding source:

State ERF)
 Year 3 (August 1, 2025 – July 31, 2026) - $2,496,456.31M (potential funding source: Measure P)
 Year 4 (August 1, 2026 – July 31, 2027) - $2,527,538.05M (potential funding source: Measure P)
 Year 5 (August 1, 2027 – July 31, 2028) - $2,559,551.29M (potential funding source: Measure P)

CURRENT SITUATION AND ITS EFFECTS
Despite significant work from the City of Berkeley, there are still a considerable number of people living outside in Berkeley. To help move at least 23 homeless people into

Encampment Resolution Funding Round 2 Grant Award CONSENT CALENDAR July 11, 2023

noncongregate temporary housing for two years, staff completed and submitted an application on February 28, 2023 for $4.9M in funding to support two years of operations and services to master lease the Super 8, a 23-room motel located on University Avenue in West Berkeley.

The City’s Homeless Response Team, managed by the Neighborhood Services Division in the City Manager’s Office, proposes to work with Insight Housing (formerly Berkeley Food and Housing Project) to assist those living in Northwest Berkeley encampments into noncongregate interim housing at the Super 8. The purpose of this funding is specifically to address and resolve encampments, and staff were required to identify encampments of focus in the grant application to the State. Super 8 will be available to other homeless people in Berkeley should there be rooms open after focusing on Northwest Berkeley and should adequate funding remain.

The City’s application was awarded $4,931,058.30 by the State on June 14, and must be fully expended by June 30, 2026. To meet this deadline and in order to lease the Super 8 and contract with Insight Housing for services, it is important to have the City Council adopt a resolution authorizing receipt of these funds for this purpose as quickly as possible. Creating this temporary homeless housing aligns with the City of Berkeley’s strategic plan priorities.

BACKGROUND
On December 1, 2022, the State of California’s Interagency Council on Homelessness (Cal ICH) released a Notice of Funding Availability (RFA) for the Encampment Resolution Funding Program, Round 2, Second Disbursement (ERF-2-R), a $300M statewide competitive grant opportunity to fund local demonstration projects that assist people living in encampments to safe, low-barrier, and stable housing pathways. The Cal ICH awarded those applications that were deemed to not only be consistent with this mission, but to also be scalable and replicable across the State, furthering our collective understanding of best practices that effectively and compassionately bring people off the streets and under a roof.

On February 1, 2023 the Homeless Services Panel of Experts voted to support the City of Berkeley’s application for Encampment Resolution Funding to enter into a lease agreement with the Super 8 at 1619 University Ave for four years.

On February 9, 2023 City staff presented a plan, including the proposed priority encampment areas and a request for local Measure P match funding to extend the program beyond two years, to the Budget and Finance Policy Committee of the Council; the Committee voted unanimously to approve staff’s application and to include a 1:1 Measure P match commitment in the application. (Given the short time between Council’s return from Winter recess and the deadline for the grant application on February 28, there was no time to bring this item before the full City Council for consideration.) Staff

Encampment Resolution Funding Round 2 Grant Award CONSENT CALENDAR July 11, 2023

successfully completed and submitted the application on February 28, 2023, and were awarded the full amount on June 14, 2023.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
Helping unhoused people currently living in West Berkeley transition into interim and permanent housing placement will minimize the detrimental environmental impacts associated with encampment homelessness over the long run, including vector and fire hazards, accumulation of trash and waste, and impacts on sensitive waterways. It will also reduce the impact of these environmental elements on the health and safety of people with no shelter.

RATIONALE FOR RECOMMENDATION
Supporting homeless people living in Northwest Berkeley and elsewhere by providing them rooms at the Super 8 as well as services to help transition to permanent housing will be possible through accepting this state funding. The city has no other resources to address the encampments in Northwest Berkeley, which continue to pose serious health and safety threats to the residents of the encampment and immediate neighbors, and broader economic and operational challenges to the broader Berkeley community.

ALTERNATIVE ACTIONS CONSIDERED
Alternate city funding could be considered, and/or the resolution of these encampments could be suspended.

CONTACT PERSON
Josh Jacobs, Homeless Services Coordinator, 510 225-8035 Attachments:
1: Resolution
2: Award Letter from Cal-ICH

RESOLUTION NO. ##,###-N.S.

ACCEPTING THE STATE OF CALIFORNIA’S ENCAMPMENT
RESOLUTION ROUND 2 FUNDING GRANT AWARD
WHEREAS, on December 1, 2022, the State of California released a Notice of Funding Availability (NOFA) for the Encampment Resolution Funding Round 2 (ERF-2-R) Program, a Statewide, competitive $300M funding opportunity to further the State’s understanding of best practices to compassionately resolve encampments by assisting their residents into safe and stable pathways to housing; and WHEREAS, on February 9, 2023, the Budget and Finance Policy Committee of the City Council unanimously voted to approve city staff’s grant application and the inclusion of a local Measure P match commitment in that application; and WHEREAS, on February 28, 2023, staff submitted a grant application to the ERF requesting $4,931,058 to fund two years of operations at the Super 8 on University Avenue in Berkeley; and
WHEREAS, staff propose the use of the Super 8 as noncongregate interim housing for individuals currently residing in Northwest Berkeley encampments; and WHEREAS, the City’s Homeless Response Team will partner with Alameda County as well as LifeLong Medical Care, Homeless Action Center, Bay Area Community Resources, and other nonprofit organizations to assist those individuals living in Northwest Berkeley encampments into the Super 8 and onto pathways to stable housing; and
WHEREAS, the City Manager was notified on June 14, 2023 that the City’s ERF-2 application will be funded at the full amount, supporting two years of operations and services for the shelter program at the Super 8.

NOW THEREFORE, BE IT RESOLVED that the Council of the City of Berkeley authorizes the City Manager to accept and receive an award from the State of California, and to enter into contract and all necessary amendments with the State, for $4,931,058.30 in Encampment Resolution Funding grant funding, with funds to be appropriated in the First Amendment to the FY 2024 Annual Appropriations Ordinance.

June 2023

Ci
ty of Berkeley
Attn: Josh Jacobs
2180 Milvia Street, 5th Floor
Berkeley, CA 947
04 RE: ERF-2-R Award Announcement – City of Berkeley
Award Amount: $4,931,058.30

Dear Josh Jacobs:

The Business, Consumer Services and Housing Agency’s (BCSH) California Interagency Council on Homelessness (Cal ICH) is pleased to announce that the City of Berkeley has been awarded an Encampment Resolution Funding Rolling (ERF-2-R) grant in the amount of $4,931,058.30. This letter constitutes notice of the award of ERF-2-R funds for use in the City of Berkeley.

The City of Berkeley will receive its full disbursement of funds after the Standard Agreement is fully executed. Please be advised that this award is subject to the terms and conditions of the Standard Agreement. Failure to sign and return the Standard Agreement within 30 days of receipt from BCSH may result in a delay of disbursement of funds.

Congratulations on your successful application. For further information or if you have any questions, please contact me at
[email protected] or [email protected].

Sincerely,
Jeannie McKendry
Jeannie McKendry,
Grants Development Section Chief, Cal ICH

BUSINESS, CONSUMER

SERVICES AND

HOUSING AGENCY

801 Capitol Mall
Suite 601
Sacramento, CA 95814
(916) 651-2820
bcsh.ca.gov/calich

Gavin Newsom,
Governor
Lourdes M.

Castro Ramirez,
Secretary

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Peter Radu, Assistant to the City Manager Subject: Urgency Ordinance for Leasing the Real Property at 1619 University Avenue

RECOMMENDATION
Adopt an Urgency Ordinance to enter into a lease for the real property located at 1619 University Avenue, Berkeley for a term of 60 months.

FISCAL IMPACTS OF RECOMMENDATION
Total costs for this lease are not to exceed $110 per room per night for 23 rooms, plus a $2,200 yearly damage deposit per room, for a total $976,580 for the first year and escalating 3% year-over-year for each year of the term, such that lease and yearly damage deposit costs in year 2 (August 1, 2024 – July 31, 2025) are estimated not to exceed $1,005,877.40; in Year 3 (August 1, 2025 – July 31, 2026) are estimated not to exceed $1,036,053.86; in year 4 (August 1, 2026 – July 30, 2027) are estimated not to exceed $1,067,135.60; and in year 5 (August 1, 2027 – July 31, 2028) are estimated not to exceed $1,099,148.84. The costs will be paid for using State of California Encampment Resolution Funding grant funds for the first two years (August 1, 2023-July 31, 2025).

Extending beyond the first two years will require additional funding. Consistent with the guidance from the Budget and Finance committee on February 9, 2023, years 3-4 would need to be covered by Measure P.

These funds will be appropriated in the First Amendment to the FY 2024 Annual Appropriations Ordinance.

CURRENT SITUATION AND ITS EFFECTS
Pursuant to Article XIV of the City Charter, this urgency ordinance is needed for the “immediate preservation of the public peace, health or safety” in light of the current shelter crisis in the encampments of Northwest Berkeley. By adopting this agreement through an Urgency Ordinance, it will be possible to execute a lease with an effective date of August 1, 2023, thus allowing sufficient time to ensure those who are currently living in the encampment have a safe, indoor destination—as well as to meet the aggressive expenditure deadlines of the ERF-2 grant, which require 50 percent of the allocated grant award to be expended and 100 percent of the allocated grant award to be obligated by July 31, 2024 and 100 percent of the allocated grant award to be expended by July 31, 2026.

Urgency Ordinance for Lease of Real Property at 1619 University Avenue CONSENT CALENDAR July 11, 2023

On the July 11, 2023 agenda, Council will consider a recommendation to adopt a resolution authorizing the City Manager to contract with the State of California for just over $4.9M in funding from the Encampment Resolution Funding grant program. Staff submitted an application to this grant opportunity on February 28, 2023, proposing to use the funds, along with local match funding provided by Measure P, to operate noncongregate interim housing at the Super 8 for the cohort of individuals currently living in the encampments in Northwest Berkeley.

Staff have secured an agreement with the Super 8’s ownership to lease all 23 rooms at the Super 8 for this purpose. The proposed lease, as specified in Exhibit A attached to this report, covers 23 rooms at a flat price of $110 per room per night, as well as a yearly damage deposit not to exceed $2,200/room per room, for a total amount not to exceed $976,580 and escalating by 3% annually for five years. The lease contains exit clauses after year 2, when State funds will be expended, if funding becomes unavailable. Staff propose to contract with Berkeley Food and Housing Project to provide the social services component of the program and are bringing that to Council in a separate report on July 11, 2023.

Increasing access to interim housing for persons experiencing homelessness is consistent with the City’s strategic priorities.

BACKGROUND
On February 1, 2023 the Homeless Services Panel of Experts voted to support the City of Berkeley’s application for Encampment Resolution Funding to enter into a lease agreement with the Super 8 at 1619 University Ave for four years.

On February 9, 2023 City staff presented a plan, including the proposed priority encampment areas and a request for local Measure P match funding to extend the program beyond two years, to the Budget and Finance Policy Committee of the Council; the Committee voted unanimously to approve staff’s application and to include a 1:1 Measure P match commitment in the application. (Given the short time between Council’s return from Winter recess and the deadline for the grant application on February 28, there was no time to bring this item before the full City Council for consideration.) Staff successfully completed and submitted the application on February 28, 2023 and were awarded the full amount on June 14, 2023.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental impacts associated with this lease. Providing noncongregate interim housing for those currently living in encampments will reduce the overall negative impact of encampments on Berkeley’s environment and waterways, as well as the negative impacts of environmental elements on the health and safety of those living in encampments.

Urgency Ordinance for Lease of Real Property at 1619 University Avenue CONSENT CALENDAR July 11, 2023

RATIONALE FOR RECOMMENDATION
If adopted, this lease agreement will bring about the opportunity to shelter at least 23 individuals who are currently living in encampments. Adopting the agreement by Urgency Ordinance is appropriate in light of the current shelter crisis. By adopting this agreement through an Urgency Ordinance, it will be possible to execute a lease with an effective date of August 1, 2023, helping meet the ERF-2 expenditure deadline of June 30, 2024.

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Josh Jacobs, Homeless Services Coordinator, 510-225-8035.

Attachments:

1. Ordinance
Exhibit A: Lease Agreement

ORDINANCE NO. X,XXX N.S.

URGENCY ORDINANCE AUTHORIZING THE CITY MANAGER OR HER DESIGNEE

TO EXECUTE A LEASE AND ANY NECESSARY AMENDMENTS WITH CAMPUS MOTEL, LLC, FOR REAL PROPERTY LOCATED AT 1619 UNIVERSITY AVENUE, BERKELEY, CA.

BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. The City Council finds as follows:
a. The City of Berkeley is facing an ongoing crisis of street homelessness: while overall homelessness declined in Berkeley by 5% from 2019 to 2022, unsheltered
homelessness stayed roughly the same during this period, declining only 1%. b. To help address this crisis, on February 9, 2023, the Budget and Finance Policy Committee of the City Council passed a motion authorizing staff to apply to the State of California for an Encampment Resolution Funding program grant which, if funded, would provide the City with funding to master lease the Super 8 motel at 1619 University Ave for two years for the purposes of providing non- congregate shelter; and
c. In the same Feb 9, 2023 motion, the Budget and Finance Policy Committee authorized staff to include two years of match funding from Measure P in the grant application; and
d. City staff successfully submitted this grant in February 2023, and the City was awarded $4,931,058.30 on June 14, 2023; and
e. City staff have previously partnered with the owners of the Super 8 Motel to serve
high-needs residents of dangerous Berkeley encampments, demonstrating that the use of this property for non-congregate shelter is viable and feasible; and f. Providing low-barrier, non-congregate interim housing options will be critical to end the unsheltered status of those currently living in dangerous Berkeley encampments; and
g. The property owner, Campus Motel, LLC, has offered to lease the entire property (providing 23 guest rooms) at 1619 University Avenue to the City for purposes of
establishing a homeless shelter for five years.

Section 2. The City Manager or her designee is hereby authorized to enter into a lease and necessary amendments starting August 1, 2023 with Campus Motel, LLC for real property located at 1619 University Avenue on substantially the same terms as set forth in Exhibit A. The rent will be $3,355 per room per month, including $2,200 per room in damage funds annually, escalating 3% year-over-year for each year of the term. Lease costs will be paid for by a State of California Encampment Resolution Fund-2 grant.

Section 3. This Ordinance is adopted as an urgency ordinance pursuant to the Charter of the City of Berkeley, Article XIV, Section 93 and shall be effective immediately. The City Council finds and determines that the adoption of this Ordinance as an urgency ordinance is necessary for the immediate preservation of the public peace, health and safety of the residents of the City of Berkeley.

Section 4. 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 fifteen calendar 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.

Page - 1

CITY OF BERKELEY

EMERGENCY OCCUPANCY AGREEMENT

OCCUPANCY AGREEMENT COVERING PREMISES
LOCATED AT:

Super 8 Motel
1619 University Avenue, Berkeley, CA
OWNER'S FED. TAX. I.D., NO. OR SOCIAL SECURITY NO.:
87-0751947
File No:

TENANT:

City of Berkeley
THIS OCCUPANCY AGREEMENT (“OCCUPANCY AGREEMENT”), is MADE AND ENTERED INTO THIS 1st DAY OF August, 2023 BY AND BETWEEN CAMPUS MOTEL, LLC, a California limited liability company (hereinafter, the "Owner"), without distinction as to number or gender, and the City of Berkeley (hereinafter called the "City.") This Occupancy Agreement is entered into for the purposes of providing interim housing for persons experiencing homelessness in Berkeley, California.

Owner is the record owner of or authorized party to grant such rights concerning certain real property defined as the Premises herein situated in the County of Alameda, State of California and has the authority to grant the rights to the City contained in this Occupancy Agreement. The Owner and its manager(s), members, agents, successors and assigns are referred to individually as an "Owner Party" and collectively as "Owner Parties." The City and its employees, agents, contractors, invitees, licensees, successors and assigns are referred to as the "City Parties." The "Operator" and the "Program Guests", as defined below, and their respective agents, invitees and licensees of any of them, are also "City Parties" for purposes of this Occupancy Agreement.

WITNESSETH

1. The Owner hereby authorizes the City and the City hereby hires from the Owner those certain premises with appurtenances situated on improved real property at 1619 University Avenue, Berkeley, CA (APN 57-2070-9-1) ("Property") in the City of Berkeley, County of Alameda, State of California, and more particularly described as follows:

All twenty-three (23) guest rooms within the Berkeley Inn hotel ("Hotel") located at (each individually a “Room” and collectively, the “Rooms”), and including all parking spaces contiguous to the Hotel building, and unlimited use of the building's common facilities as shown on Exhibit A (collectively, the “Premises”). The Premises do not include rights of access to or use of the roof.

The Premises are operated as a hotel accommodation. The City has inspected the Premises and deems them appropriate for its intended uses, and acknowledges that Owner will deliver the Premises to the City in their “AS IS, WHERE IS AND WITH ALL FAULTS” condition and also acknowledges that Owner has no obligation to prepare the Premises for occupancy in any manner. Subject to casualty events, condemnation, or emergency conditions stated below, and subject to Owner's needs to access the Premises for repair work or periodic inspection, as described below, Owner grants to the City exclusive access to and use of the Premises on a Preamble
Description

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continual basis (i.e., twenty-four (24) hours per day, seven (7) days per week) for purposes of providing interim housing for persons experiencing homelessness under a specialized housing program ("Program") administered by the City (each such occupant or invitee through that Program is referred to herein as a “Program Guest”), either directly or through a Program operator under the City's control ("Operator"). The City will not (i) allow any nuisance conditions to exist on the Premises, and (ii) shall use diligent efforts to promptly eliminate any Program Guest from accessing the Premises if such Program Guest has engaged in activity that causes material damages to the Premises.

Owner acknowledges that during the Term, Owner shall not rent or allow occupancy of any Room or facilities in the Premises to any person other than City, and City agrees that it will use the Premises exclusively for the implementation of the Program and the housing of Program Guests (together with any administrative or management function required on site at the Premises for the Program). Under no circumstances shall the City engage in any conduct that would jeopardize (i) Owner's existing permits for the Hotel; or (ii) its ability to surrender the Premises at the end of the Term vacant, and in the condition required by this Occupancy Agreement. Owner shall have no obligation to manage any Program Guest or monitor or control any of the operations on the Premises; all such operations and control shall be the sole responsibility of the City. Owner represents that Owner has not received a notice of violation of any permit condition with respect to the Premises, and, to Owner's knowledge, that the Premises comply with all laws.

The City acknowledges that there is a storage room in which the Owner stores tools, parts and supplies to make repairs to improvements and equipment, and that Owner is reserving its use of such storage room for that purpose in order to more efficiently undertake any repairs required at the Premises. The City shall not permit others to gain access to such storage room which shall remain locked when not in use by Owner or its agents.

2. The term of this Occupancy Agreement shall commence on August 1, 2023 (“Commencement Date”), with the City taking physical occupancy on August 1, 2023. The term of this Occupancy Agreement ("Term") and the City's rights to possession of the Premises shall end on the earlier of: (i) five (5) years after the Commencement Date (expected to be July 31, 2028) unless the parties negotiate an extension under the "Option" described below; (ii) on the effective date of termination under any election of a party to terminate the Occupancy Agreement upon an "Event of Default" (defined below); (iii) on the effective date of any termination by the City for convenience (in the City's sole discretion) that is based on a notice of termination given at any time after August 1, 2024, if the City elects to so terminate the Term ("City's Termination Right"); (iv) on the effective date of any termination by Owner for convenience (in the Owner's sole discretion) that is based on a notice of termination that takes effect at any time after August 1, 2025, if Owner elects to so terminate the Term ("Owner's Termination Right"); and (v) on the effective date of termination that takes effect under the exercise of the "Casualty Termination Right" under Section 10, below, or pursuant to the "Special Termination Right", as specified in Exhibit C of this Occupancy Agreement.

Any exercise of City's Termination Right or of Owner's Termination Right referenced in the prior paragraph, sections (iii) and (iv), shall be made by written notice, which shall become effective and end the Term on the day that is One Hundred Eighty (180) days after such termination notice is provided to the counterparty. Thus, an election by the City to terminate the Term under the City's Termination Right that is given 190 days before July 31, 2024 will be effective as of July 31, 2024, but one given 120 days before that date will mean that the Term will end on September 30, 2024. Similarly, an election by the Owner to terminate the Term under the Owner's Termination Right that is given 190 days before July 31, 2025 will be effective as July 31, 2025, but one given 120 days before that date will mean that the Term will end on September Term; Early
Termination;
Option

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30, 2025. During any such period through the end of the Term the parties are bound by all of the terms of this Occupancy Agreement.

If mutually agreeable to City and Owner, the parties may extend the Term for an additional five (5) years (“Option”), so long (i) this Occupancy Agreement has not terminated and there is no pending default by the party invoking the Option, (ii) notice of the intention to extend the Term is given by written notice to the counterparty at least four (4) months prior to the then pending expiration date for the Term, and (iii) the terms and conditions of such an extension, including the amount of Monthly Rent, will be negotiated and must be agreed to and reduced to writing and signed by both parties to be effective.

3. Monthly Rent payments ("Monthly Rent") shall be paid by the City in advance and without deduction or offset (except as allowed in Section 6), on the first day of each month during the Term, regardless of whether each Room is occupied for the full month or not, as follows:

TIME PERIOD MONTHLY RENT RATE

PER ROOM
8/1/2023-7/31/2024 $3,355.00
8/1/2024-7/31/2025 $3,455.65
8/1/2025-7/31/2026 $3,559.32
8/1/2026-7/31/2027 $3,666.10
8/1/2027-7/31/2028 $3,776.08
Monthly Rent and all other payment obligations under this Occupancy Agreement are referred to collectively as "Rent." All payments of Rent are due and payable thirty (30) days after Owner has provided a demand for payment. For payments other than Monthly Rent, Owner shall submit an invoice with reasonably sufficient detail to permit the City to reference and confirm the obligation to pay under the Occupancy Agreement. Rent shall be paid to Owner at the address specified in Section 4 or to such other address as the Owner may designate by a notice in writing.

Rent payments shall be paid from any source of legally available funds of the City, and so long as the Premises is available for the City’s use, the City covenants to take such action as may be necessary to include all Rent payments due under this Occupancy Agreement in its budgets and to maintain such items to the extent unpaid for that fiscal year in its budgets, and to make the necessary appropriations and supplemental appropriations to the extent necessary, for all such Rent payments; which covenants of the City shall be deemed to be, and shall be, ministerial duties imposed by law, and it shall be the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants made by the City in this Occupancy Agreement.

4. All notices and correspondence herein provided to be given, or which may be given by either party to the other, shall be deemed to have been fully given when made in writing and when addressed as shown below, and one of the following applies: 1) two business days (i.e. not a Saturday, Sunday or a national or state holiday where the courts are closed) after it is deposited in the United States Mail, with certified first class postage prepaid; 2) on the day it is received if delivered by personal service, or if sent via a reputable commercial overnight delivery service (i.e.

Rent and
Invoicing
Notices

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UPS, FedEx or similar) with receiver’s signature required; and (3) on the next business day after it is by email to the address shown below and receipt has been electronically confirmed:

To the Owner: Campus Motel, LLC
Attention: Feroz Amin
________________________
___________________, CA _________
Phone No.: (415) 297-8758
Email: [email protected]
To the City: City Manager’s Office
City of Berkeley
2180 Milvia St, 5th Floor
Berkeley, CA 94704
Attn: Peter Radu
Phone No. (510) 981-7045
Email: [email protected]
ALL NOTICES AND CORRESPONDENCE MUST REFERENCE PREMISES ADDRESS.

Rent warrants shall be made payable to:

Campus Motel, LLC
ATTN: Feroz Amin
and mailed to:
______________________
________________________, CA _________
The address to which notices and correspondence shall be mailed to either party may be changed on not less than five (5) days prior notice, by giving written notice to the other party as required above.

5. Subject to the provisions of Section 2, parking spaces shown on Exhibit A, are to be available for City’s use and that of its Program Guests during the Term; however, the Owner is not obligated to enforce any parking use. The City's obligations to hold harmless, defend and indemnify the Owner and Owner Parties extends to any use made by it or its Program Guests (or their invitees or licensees) in the Premises or the parking areas. Owner shall ensure that no Owner Party nor any of its agents use these parking spaces unless separately authorized by the City. The on-site parking spaces shall be provided at no additional charge.

6. Owner, at Owner’s sole cost and expense, shall contract for and facilitate the delivery to the Premises of the following public utilities and public services: electricity and gas for heating, ventilating, air-conditioning as the City needs for its operations at the Hotel, plus sewer, trash disposal (of up to 3 yards per week), and internet services (as it currently operates at the Hotel).

In addition, Owner shall provide and maintain security cameras, and hot and cold water service for the reasonable needs of the Hotel.

Parking
Services,
Utilities, and
Supplies

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The City and Owner shall mutually determine baseline usage for these utilities and services, based on 100% occupancy of the Hotel, and the City shall be responsible for reimbursing the Owner for any usage costs that exceed 110% of the baseline costs for the utilities and services, per billing cycle used by the utility or service provider.

If Owner breaches its obligation to pay for and facilitate the delivery of the foregoing services, utilities or equipment, upon not less than one (1) business days' notice, City may furnish the same and deduct the cost, plus City’s administrative expenses of 10%, of furnishing those services, utilities or equipment from the Rent.

7. During the Term, the Owner shall maintain the Premises substantially in its existing condition as of the Commencement Date and in tenantable condition, subject, however, to Casualty (defined in Section 10) and condemnation. Owner's obligation to pursue repairs is limited to the obligations set out in this Section 7; such obligations arise upon prior notice of disrepair from the City ("Repair Notice"). Upon any Repair Notice, Owner shall immediately respond to a Repair Notice if there is an emergency involving life safety issues; otherwise Owner shall respond with the required maintenance or repair with reasonable diligence, consistent with common property management practices. For Casualty and other events beyond the Owner's control, notice of the damage shall be promptly provided by the City and the obligations to repair and pay for any such repairs shall be governed by this Section 7, Schedule 7 and Section 10, below. (a) Owner warrants and represents the common facilities of the Premises and at least one (1) Room shall be readily accessible to and usable by individuals with disabilities in compliance with Title III of the Americans with Disabilities Act of 1990 and California Title 24 (“Disability Laws”), as amended from time to time and regulations issued pursuant thereto and in effect from time to time. Any and all costs incurred to cause the Premises to comply with the Disability Laws shall be borne by Owner unless caused by alterations to the Premises pursued by the City. See also Schedule 7.
(b) The City shall promptly notify Owner of damage to the Premises, and/or Owner's fixtures, furnishings and equipment ("FF&E") and mattresses ("Mattresses") provided by Owner on the Commencement Date or replaced by Owner. Owner’s actual out-of-pocket costs of repairing or replacing any damage to (i) the Property, (ii) the FF&E, and/or (iii) Mattresses and (iv) any required deep cleaning including pest control and heat treatments for any Room are herein collectively referred to as the ("Repair Costs"). The City's obligation to reimburse the Owner for such Repair Costs in any "Year", as defined below, is limited to the amount of the Yearly Damage Deposit applicable to the Year in which the Repair Costs are incurred, plus any additional Repair Costs in that Year caused by the gross negligence or willful misconduct of a City Party. In so calculating the applicable Repair Costs for such Year, the parties agree to offset from such Repair Costs any net amount recovered by Owner as insurance proceeds for such loss or damages pursuant to the insurance coverage required by this Occupancy Agreement. The sum of all such Repair Costs, less any applicable net insurance proceeds received, less any available balance of that Year's Yearly Damage Deposit as of the date of such loss or damage is herein referred to as "Excess Costs." The City shall be responsible to Owner for all Excess Costs incurred by Owner and must pay such Excess Costs within sixty (60) days of demand from Owner.

For the avoidance of doubt, Repair Costs are to first be satisfied from the aggregate "Yearly Damage Deposit" (see right column, below), which shall be equal to the "Damage Deposit per Room" set forth below for each applicable "Year" (defined below) of the Term multiplied by 27 Rooms (e.g. for the first Year the Yearly Damage Deposit is $2,200 x 23 Rooms = $50,600.00).

City shall pay any Excess Costs within 60 days of City’s receipt of Owner’s reasonable proof of payment for actual costs of good, services and labor.

The Yearly Damage Deposit may be used to address damage or destruction from a "Casualty" (defined in Section 10, below) if it was caused by the negligence, gross negligence, or the willful Repair and
Maintenance

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misconduct of a City Party. In such Casualty events, the cost allocations (including rights to insurance proceeds) shall be governed by Section 10 and Exhibit C.

Each 12-month time period noted below shall be referred to as a “Year.” TIME PERIOD "YEARLY DAMAGE DEPOSIT" PER
ROOM
8/1/2023-7/31/2024 $2,200.00
8/1/2024-7/31/2025 $2,266.00
8/1/2025-7/31/2026 $2,333.98
8/1/2026-7/31/2027 $2,404.00
8/1/2027-7/31/2028 $2,476.12
(c) The City shall pay the first Year's Yearly Damage Deposit to the Owner within fifteen (15) days of the Commencement Date and receipt of demand for payment. If the Yearly Damage Deposit is not exhausted during the course of each such Year, Owner may retain the balance. If the Term continues beyond the first Year, then on the first anniversary of the Commencement Date, and after receipt of demand for payment, the City will remit that Year's Yearly Damage Deposit to the Owner. The City will follow this for each succeeding anniversary of the Commencement Date during the Term to ensure the Yearly Damage Deposit has been paid to Owner at the start of each Year in the Term. If either Owner or City exercises the Option to extend the Term, the parties shall attempt to resolve the amount and disposition of the Yearly Damage Deposit during any such extended Term.
(d) If any Room(s) are made uninhabitable due to the negligence or willful misconduct of an Occupant, the City shall not be entitled to Rent abatement for the affected Room(s) during the duration of rehabilitation.
(e) Laundry FF&E. Only staff supervised by the Operator may have access to the laundry room area. If any damage is caused to the laundry equipment during the Term by any City Party, and such damages ultimately aggregate to more than $2,000.00 (Two Thousand Dollars), Owner may, in its discretion remove the existing laundry equipment and install a coin operated laundry serviced by a vendor.

The City further agrees that the City will ensure that every Program Guest agrees in writing – and as a condition of such person's occupancy - to refrain from engaging in damage to the Property, the FF&E or the Mattresses. See Schedule 7.

8. The City shall have the right to assign this Occupancy Agreement with Owner’s prior written consent, which shall not be unreasonably withheld, conditioned, or delayed. No such assignment shall relieve the City of any liability or responsibility under this Occupancy Agreement, unless the assignee agrees in writing to assume all of City’s obligations under this Occupancy Agreement and is equally capable of performing them.

9. Subject to the terms of this Occupancy Agreement, the Owner agrees that the City, while keeping and performing the covenants herein contained, shall at all times during the existence of this Occupancy Agreement, peaceably and quietly have, hold, and enjoy the Premises without suit, trouble, or hindrance from the Owner or any person claiming a superior title under the Owner.

City acknowledges that the Owner may access the Premises on not less than twenty-four (24) hours prior written notice to the City (except in case of an emergency, or where Owner is Assignment
Quiet
Possession

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undertaking repair of a Casualty event and it is part of a continuum of work days, in which case no notice is required) in order to (i) perform required repairs, (ii) address any failure of the utilities or services required under Section 6, or (iii) inspect the Premises. Owner's inspection of the Premises shall be limited as follows: (i) absent cause, an inspection to determine compliance with the Occupancy Agreement will not be more often than once per month; (ii) to complete an appraisal or due diligence analysis for any financing, sale or other bona fide valuation need; (iii) to show the Premises to a prospective lender or purchaser; (iv) access to a Program Guest's Room shall only occur if damage is being inspected or repaired, or the cause of a Casualty is being assessed, and then only with a person assigned by the City to accompany the Owner or its agent in completing such inspection. Absent an emergency, in which case access shall be provided immediately, any access by Owner shall only occur during regular 9 a.m. to 5 p.m. business hours. The City will reasonably cooperate in coordinating this access.

10. If the Premises are damaged by fire, accident or other casualty (collectively, "Casualty"), and if the cost to repair such damage exceeds more than 20% of the Rent due for the remainder of the Term, or such damage is not fully covered by insurance proceeds made available to Owner, Owner may elect to terminate this Occupancy Agreement ("Casualty Termination Right"). Such election shall be made within twenty (20) days of the date of Casualty. Calculating the "remainder of the Term" shall be based on the shortest available Term if either party exercises an available Termination Right, If the Casualty does not provide Owner with such an election to terminate this Occupancy Agreement, or Owner does not timely elect to terminate, whether under a Casualty Termination Right, or a "Special Termination Right" under the provisions of Exhibit C, then Owner shall diligently pursue the repair and restoration of the Premises in a commercially diligent manner. Pending such repairs, Rent shall abate proportional to the number of Rooms that are untenantable during the repair efforts unless the Casualty was due to the gross negligence or willful misconduct of a City Party.

If a Casualty occurs and the Occupancy is not terminated, Owner shall tell the City the estimated number of days required to repair such Casualty within thirty (30) days of its occurrence (“Owner’s Notice”), as the repair period may be determined in Owner’s reasonable judgment. If the Owner’s Notice specifies that more than fifty percent (50%) of the remainder of the Term, or more than two hundred ten (210) days, will be required to complete the repairs, whichever is less, City may at its option terminate this Occupancy Agreement by written notice to Owner within thirty (30) days of Owner’s Notice (“City’s Notice”). The "remaining Term" shall only include that portion of the Term that is not at the time of the Casualty susceptible to any early termination rights under this Occupancy Agreement. If the Premises are totally destroyed by a Casualty, this Occupancy Agreement shall terminate.

If the Premises are to be repaired after a Casualty, Owner shall diligently prosecute to completion the repair of said Premises, and the parties shall cooperate in obtaining all available insurance coverage to pay for such repairs and make these available to the Owner for such purposes including the recovery of any Rents. Except for circumstances wherein an act of the City or Program Guest(s) unduly delay the completion, if Owner does not complete the repairs within 120% of the time noted in the Owner's Notice, the City shall have the option to terminate this Occupancy Agreement by giving written notice to Owner at any time prior to Owner’s completion of such repairs.

During any period where a Room is untenantable, as a result of Casualty that was not caused by the negligence or willful misconduct of a City Party, then (i) to the extent any Room is not available for City’s use, the rent for any affected Room shall be abated each month by dividing the number of days the Room is unable to be occupied by thirty (30) days, and (ii) if portions of the Premises located outside of the Rooms are damaged or destroyed and not available for City’s use, the rent for each Room shall be abated during the time that those portions of the Premises are not available for City’s use by multiplying the rent for each Room by a fraction, the numerator of which is the square footage of the Premises that has been damaged or destroyed and the Casualty and
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denominator of which is the square footage of the entire Premises. It is understood and agreed that the City or its agent has the right to enter the destroyed or partially destroyed Premises provided any such entry is not prohibited by law or emergency services, and in all events any such entry is at the sole risk of City. At the City's request, the Owner shall immediately identify an appropriate route through the Hotel building to access the Premises. If the Owner cannot identify an appropriate access route, it is agreed that the City may use any and all means of access at its discretion in order to enter the Premises.

11. To the extent authorized by any fire and extended coverage insurance policy issued to Owner or City (or the Operator) related to the Premises or operations on it, each such insured will diligently pursue with its insurer a good faith effort to have such insurer waive its rights of subrogation against the party causing the loss or damage. If a premium is required to obtain such waiver, the party seeking and benefitting from such waiver may elect to pay the premium or other cost to ensure the waiver occurs, but otherwise the insured party is under no obligation to procure the waiver of subrogation. Each party agrees to release its counterparty from liability for any loss or damage to the extent it is covered by said insurance.

12. For those projects defined as "public works" pursuant to Labor Code §1720.2, the following shall apply during the Term:

A. Owner/contractor shall comply with prevailing wage requirements and be subject to restrictions and penalties in accordance with §1770 et seq. of the Labor Code which requires prevailing wages be paid to appropriate work classifications in all bid specifications and subcontracts.

B. The Owner/contractor shall furnish all subcontractors/employees a copy of the Department of Industrial Relations prevailing wage rates which Owner will post at the job site. All prevailing wage rates shall be obtained by the Owner/contractor from:

Department of Industrial Relations
Division of Labor Statistics and Research
455 Golden Gate Avenue, 8th Floor
San Francisco, California 94102
Phone:(415) 703-4774
Fax: (415) 703-4771
For further information on prevailing wage: http://www.dir.ca.gov/dlsr/statistics_research.html C. Owner/contractor shall comply with the payroll record keeping and availability requirement of §1776 of the Labor Code.

D. Owner/contractor shall make travel and subsistence payments to workers needed for performance of work in accordance with the Labor Code.

E. Prior to commencement of work, Owner/contractor shall contact the Division of Apprenticeship Standards and comply with §1777.5, §1777.6, and §1777.7 of the Labor Code and Applicable Regulations

13. During the Term of this Occupancy Agreement, the Owner shall not deny benefits to any person on the basis of religion, color, ethnic group identification, sex, age, physical or mental disability, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, mental disability, medical condition, marital status, age, or sex. Owner shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination.

Subrogation
Waived
Prevailing
Wage
Provision
Fair
Employment
Practices

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Owner shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.), the regulations promulgated thereunder (California Code of Regulations, Title 2, Section 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Government Code, Sections 11135-11139.8), and the regulations or standards adopted by the awarding City to implement such article.

14. In the event the City remains in possession of the Premises with the express written consent of the Owner after the termination or the expiration of the Term, or any extension or renewal thereof, this Occupancy Agreement shall be automatically extended on a month to month basis, subject to a thirty day (30) day notice of termination by the Owner or the City and otherwise on the terms and conditions herein specified, so far as applicable, with Monthly Rent to be at two hundred percent (200%) of the Monthly Rent in effect immediately prior to such holdover period.

If no such consent is provided by Owner, then there shall be no holding over and City will be liable to Owner for any consequential or special damages caused by the unlawful holding over.

15. Upon termination or expiration of this Occupancy Agreement, the City will peacefully surrender to the Owner the Premises entirely vacant and in good order and repair, except for reasonable use and wear thereof and damage by earthquake, fire, public calamity, the elements, acts of God, or circumstances for which Owner is responsible pursuant to this Occupancy Agreement. Notwithstanding the foregoing, City’s obligation to restore the Premises shall also be limited in accordance with Section 19.

16. Time is of the essence of this Occupancy Agreement. Without affecting the provisions governing assignment and subleasing, the terms and provisions of this Occupancy Agreement shall extend to and be binding upon and inure to the benefit of the heirs, executors, administrators, successors, and assigns to the respective parties hereto.

17. It is mutually understood and agreed that each party shall be deemed a drafter of the provisions of this Occupancy Agreement in equal measure, and that no alterations or variations of the terms of this Occupancy Agreement shall be valid unless made in writing and signed by the parties hereto, and that no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto.

18. City agrees that it will comply with all applicable laws in occupying and using the Premises. This obligation includes complying with all laws existing during the Term pertaining to the presence, use, storage, transportation, and disposal of any "hazardous substance" or "hazardous materials" (as those terms are defined in Exhibit B, attached to this Occupancy Agreement; "Hazardous Materials") in on or about the Premises. City shall promptly advise Owner of the discovery of any such Hazardous Materials in or about the Premises where the presence, use, storage or disposal of the Hazardous Materials constitute an event requiring reporting to any governmental agency charged with protecting the environment or public health, or reflects a violation of the Environmental Laws, as these are defined in Exhibit B. In the event a government order is issued naming the City or the City incurs any liability during or after the Term in connection with Hazardous Materials that were present on the Premises before the Commencement Date, or which was caused by the Owner or its agent during the Term, Owner shall hold harmless, indemnify, and defend the City in connection therewith and shall be solely responsible as between City and Owner for all efforts and expenses arising from such preexisting contamination.

Owner represents and warrants that, to the knowledge of the Owner's manager: (a) the Premises do not contain asbestos; (b) the Premises do not contain any substance that is deemed Hazardous Materials, other than normal quantities of such Hazardous Materials as may typically be found in commercial construction or cleaning products used and disposed of in accordance with applicable laws; (c) there has been no release of Hazardous Materials on the Premises in violation of applicable law; (d) there are no underground storage tanks for petroleum products or Holding Over
Surrender of
Possession
Time of
Essence,
Binding upon
Successors
No Oral
Agreements
Hazardous
Substance

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Hazardous Materials, active or abandoned, located on or under the Premises; (e) Owner has received no notice of violation, administrative complaint, judicial complaint, or other formal or informal notice alleging any violation of any Environmental Laws or informing Owner that the Premises are subject to investigation, inquiry, or proceeding regarding Hazardous Materials or the potential violation of any Environmental Law; and (f) there are no environmental liens on the Premises.

19. Throughout the Term, the City shall make no improvements or alterations to the Premises if these require permits or that affect any roof membrane, any structural elements or involve more than $10,000 in costs without the express written permission of the Owner, which shall not be unreasonably withheld, conditioned, or delayed. City shall pay for the costs of any such works of improvement and ensure that no liens or other charges are imposed on the Premises. Upon termination of the Occupancy Agreement, any equipment installed on the Premises by the City shall remain the City’s property and the City shall remove such property from the Premises and repair any damages caused by such removal before the end of the Term. Upon expiration or termination of the Term, the Premises shall be returned to Owner vacant and in the same condition that existed on the Commencement Date, reasonable wear and tear excepted. On expiration of the Occupancy Agreement, the Premises shall revert to its status as a tourist hotel.

21. The City agrees to indemnify and hold harmless the Owner, its members, manager(s), agents, successors and assigns ("Indemnitees") in the event of any third party claim, demand, cause of action, judgments, obligations, liabilities, expenses and costs (including, e.g., court costs and reasonable attorney's fees) and all other reasonable expenses (collectively "Claims") which Owner may suffer as a proximate result of the negligence or other wrongful act or violation of law by a City Party (or by any person or persons acting under the direct control and authority of the City, the Operator, or the agents or employees or either of them), in connection with the City's occupancy of the Premises under and during the Term of this Occupancy Agreement, and agrees to repair or pay for any damage proximately caused by reason of the City’s use of the Premises during the Term of this Occupancy Agreement, in accordance with the terms the City committed to in Sections 7, 10, Schedule 7 and Exhibit C, as well as when due to the City's default or an Event of Default, except (i) to the extent such damages are the result of Owner's negligence or willful misconduct or it is the result of negligence or willful misconduct of any person(s) acting under the direct control and authority of Owner. The City's defense and indemnity obligations under this Section shall not be limited by the policy limits of any policy of insurance.

Owner agrees to indemnify and hold harmless the City in the event of any third party Claims that the City may suffer as direct and proximate result of the negligence or other wrongful act or violation of law by the Owner, its employees, or any person or persons acting under the direct control and authority of the Owner and further excluding that portion of the Claim caused by the negligence or willful misconduct of a City Party. Owner’s defense and indemnity obligations under this Section shall not be limited by the policy limits of any policy of insurance.

Without limiting either party’s defense and indemnity obligations under this Section, each party shall be entitled to participate in the defense of any third party claim that is reasonably likely to give rise to an indemnification claim under this Section.

The parties shall maintain in force at all times such policies of insurance as specified in Exhibit C, and shall abide by all of the terms and conditions of Exhibit C, which are incorporated by reference as if set forth in full herein. The provisions of this Section 21 shall continue in full force and effect despite any expiration or termination of the Occupancy Agreement.

Improvements
and
Alterations;
Restoration of
Premises
Indemnification
and Insurance

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22. Owner is solely responsible for all tax liabilities, including property taxes. However, the City represents and warrants that under no circumstances shall any room occupied by the City or Program Guests be subject to the City’s Transient Occupancy Tax.

23. Owner shall not rent or allow occupancy of any vacant Rooms or facilities in the Hotel during the Term of the City’s occupancy of the Premises.

24. Owner and City understand that they shall not receive rent, fees, or any other form of payments or consideration, or gifts from Program Guests of Rooms in exchange for access to or use of the Premises. Owner and City also understand that neither has entered into any contract with the occupants of the Rooms related to the use of the Premises within the meaning of California Civil Code section 1925. The occupants of the Rooms are not persons who hire any dwelling unit from Owner or City within the meaning of California Civil Code section 1940 and are not subject to the benefits of the California Civil Code or any other state statutes, rules, or regulations or local government rules, regulations or ordinances that confer tenancy rights on the occupants.

25. (a) It is an "Event of Default" – and a breach by the City - under this Occupancy Agreement if the following occurs: (i) Monthly Rent is not timely paid and such failure is not cured within five (5) days of notice from Owner; (ii) Rent other than Monthly Rent is not timely paid and such failure is not cured within fifteen (15) days of notice from Owner; (iii) City is in breach of its obligation to maintain the insurance coverages required of it, or fails to ensure that the Operator maintains its required insurance coverages; (iv) the City fails to perform any other obligation under this Occupancy Agreement (other those enumerated below), and fails to cure such default within thirty (30) days of notice from Owner; (v) the City abandons the Premises; (vi) the City fails to timely surrender the Premises, or (vii) City permits nuisance conditions to exist on the Premises. (b) It is an "Event of Default" – and breach by the Owner- under this Occupancy Agreement if the following occurs: (i) Owner fails to timely pay an obligation to City within thirty (30) days of notice from City of such delinquency; (ii) Owner fails to perform an obligation that is required of Owner under this Occupancy Agreement and it fails to cure such default within thirty (30) days of notice from City of such default; and (iii) the Owner is in breach of its obligation to maintain the insurance coverages required of it.
(c) Except to the extent budget has been authorized by the City for Rents due under this Occupancy Agreement, there shall be no right under any circumstances to accelerate the payment of Rent or otherwise declare any payments of Rent not then in default to be immediately due and payable, Owner reserves and shall have all of the remedies reserved to a landlord for a breach of a lease, including:
(1) Owner may: (i) terminate this Occupancy Agreement upon service of lawful notice, and City shall then surrender the Premises to Owner; or (ii) enter and take possession of the Premises, in accordance with any applicable laws governing such repossession, and remove City, with or without having terminated this Occupancy Agreement. The provisions of this Section 25 (c)(1) shall operate as a notice to quit, any other notice to quit or of Owner's intention to re- enter the Premises being expressly waived. If necessary, Owner may proceed to recover possession of the Premises under applicable laws, or by such other legal proceedings, including re-entry and possession. Owner's exercise of any of its remedies or its receipt of City's keys to the Premises shall not be considered an acceptance or surrender of the Premises by City. A surrender must be agreed to in writing and signed by both parties. City shall pay to Owner all costs, losses or damages howsoever arising or occurring payable at the same time and in the same manner as is provided herein in the case of payment of Rent. Any surplus received by the Owner from re-leasing the Premises shall be the absolute property of Owner and City shall have Taxes
Exclusive Use
Occupancy of
Premises
Remedies

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no right thereto, nor shall the City be entitled to any credit in the event of a surplus in the rentals received by Owner.
(2) Owner shall have the right to continue the Occupancy Agreement in effect after City's breach and recover Rent as it becomes due, and Owner, in addition to all other rights and remedies, shall have the rights and the remedy described in California Civil Code § 1951.4 (which provides that the Owner may continue the Occupancy Agreement in effect after City's breach and abandonment and recover Rent as it becomes due, if the City has right to sublet or assign, subject only to reasonable limitations). Acts of maintenance or preservation, efforts to relet the Premises, or the appointment of a receiver upon Owner's initiative to protect its interest under this Occupancy Agreement shall not of themselves constitute a termination of City's right to possession. City consents to Owner repossessing the Premises and re leasing it for the account of City, in which event the City’s obligation will accrue from year to year in accordance with this Occupancy Agreement and City will continue to receive the value of the use of the Premises from year to year in the form of credits against its obligation to pay Rent. The obligations of City shall remain the same as prior to such default, to pay Rent whether City re-enters or not. City agrees to and shall remain liable for the payment of all Rent and the performance of all conditions contained herein and shall reimburse Owner for any deficiency arising out of the re leasing of the Premises, or, in the event Owner is unable to re lease the Premises, then for the full amount of all Rent to the end of the Term, but said Rent and/or deficiency shall be payable only at the same time and in the same manner as provided above for the payment of Rent hereunder, notwithstanding such repossession by Owner or any suit, brought by Owner for the purpose of effecting such repossession of the Premises or the exercise of any other remedy by Owner. (d) Unless specifically reserved in this Occupancy Agreement, or the damage is caused by the gross negligence or willful misconduct of a party or any agent of such party, each party waives any claims for consequential or special damages arising from this Occupancy Agreement or the use of the Premises. Subject to the preceding sentence, if a party breaches any term or provision of this Occupancy Agreement, the counterparty shall have the right to pursue all available remedies at law or equity, including recovery of damages and specific performance of this Occupancy Agreement. The parties hereto agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach of any of the provisions of this Occupancy Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, each party shall waive the defense that a remedy at law would be adequate. Except as expressly provided elsewhere in this Occupancy Agreement, each party's rights and remedies under this Occupancy Agreement are cumulative and in addition to, not exclusive of or in substitution for, any rights or remedies otherwise available to that party.

26. By executing this Occupancy Agreement, Owner certifies that it does not know of any fact which constitutes a violation of California Government Code Section 1090, Berkeley City Charter Section 36 and B.M.C. Chapter 3.64, and further agrees promptly to notify the City if it becomes aware of any such fact during the Term of this Occupancy Agreement.

27. THIS SECTION IS INTENTIONALLY DELETED

CITY OF BERKELEY PROVISIONS

28. City Non-Discrimination Ordinance. Owner hereby agrees to comply with the provisions of the Berkeley Municipal Code (“B.M.C.”), including without limitation Chapter 13.26, as amended Conflict of
Interest
Right of First
Offer

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from time to time. In the performance of its obligations under this Occupancy Agreement, Owner agrees as follows during the Term:
a. Owner shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, national origin, age (over 40), sex, pregnancy, marital status, disability, sexual orientation or AIDS.
b. Owner shall permit City access to records of employment, employment advertisements, application forms, EEO-1 forms, affirmative action plans and any other documents which, in the reasonable opinion of City, are necessary to monitor compliance with this non-discrimination provision. In addition, Owner shall fill out, in a timely fashion, forms supplied by City to monitor this non-discrimination provision.

29. Non-Discrimination Against Persons With Disabilities. a. If Owner provides any aid, service or benefit to others on the City’s behalf, Owner shall, in the provision of such aid, service or benefit, observe and comply with all applicable provisions of Title II of the Americans with Disabilities Act of 1990 and any amendments thereto. Owner shall further observe and comply with all applicable federal, state, municipal and local laws, ordinances, codes and regulations prohibiting discrimination against individuals with disabilities or ensuring that individuals with disabilities are not excluded from participating in or receiving benefits, services or activities of the City, if applicable. b. If Owner is or becomes a “public accommodation” as defined in Title III of the Americans with Disabilities Act of 1990, Owner shall observe and comply with all applicable provisions of the Act and any amendments thereto, and all applicable federal, state, municipal and local laws, ordinances, codes and regulations prohibiting discrimination on the basis of disability in the full and equal enjoyment of goods, services, facilities, privileges, advantages, or accommodations offered by the Owner. All of Owner’s activities must be in accordance with these laws, ordinances, codes, and regulations, and Owner shall be solely responsible for complying therewith.

30. Conflict of Interest Prohibited.
a. In accordance with California Government Code Section 1090, Berkeley City Charter Section 36 and B.M.C. Chapter 3.64, neither Owner nor any employee, officer, director, partner or member of Owner, or immediate family member of any of the preceding, shall have served as an elected officer, an employee, or a committee or commission member of City, who has directly or indirectly influenced the making of this Occupancy Agreement.
b. In accordance with California Government Code Section 1090 and the Political Reform Act, (Government Code Section 87100 et seq.,) no person who is a director, officer, partner, trustee, employee or consultant of Owner, or immediate family member of any of the preceding, shall make or participate in a decision made by City or any of its boards, commissions or committees, if it is reasonable foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or City, except to the extent permitted by 2 California Code of Regulations, Section 18700(c)(2).

Interpretation of this Section shall be governed by the definitions and provisions use in the Political Reform Act, Government Code section 87100 et seq., its implementing regulations, manuals and codes, Government Code section 1090, Berkeley City Charter section 36 and B.M.C. Chapter 3.64, as amended from time to time.

31. Nuclear Free Berkeley. Owner agrees to comply with B.M.C. Chapter 12.90, the Nuclear Free Berkeley Act, as amended from time to time.

32. Oppressive States.

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a. In accordance with Resolution No. 59,853-N.S., Owner certifies that it has no contractual relations with, and agrees during the Term of this Occupancy Agreement to forego contractual relations to provide personal services to, the following entities:
i. The governing regime in any Oppressive State.
ii. Any business or corporation organized under the authority of the governing regime of any Oppressive State.
iii. Any individual, firm, partnership, corporation, association, or any other commercial organization, and including parent-entities and wholly-owned subsidiaries (to the extent that their operations are related to the purpose of this Occupancy Agreement) for the express purpose of assisting in business operations or trading with any public or private entity located in any Oppressive State. b. For purposes of this Occupancy Agreement, the Tibet Autonomous Region and the provinces of Ado, Kham, and U-Tsang shall be deemed Oppressive States. c. Owner’s failure to comply with this Section 31 shall constitute a default of this Occupancy Agreement and Owner may terminate this Occupancy Agreement on five days’ written notice to Owner. In the event that City terminates this Occupancy Agreement due to a default under this provision, City may deem Owner a non-responsible bidder for five (5) years from the date this Occupancy Agreement is terminated.

33. Berkeley Sanctuary City Ordinance.

Owner hereby agrees to comply with the provisions of the Sanctuary City Contracting Ordinance, B.M.C. Chapter 13.105. In accordance with this Chapter, Owner agrees not to provide the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security with any Data Broker or Extreme Vetting Services as defined herein:
a. “Data Broker” means either of the following: (1) The collection of information, including personal information about consumers, from a wide variety of sources for the purposes of reselling such information to their customers, which include both private-sector business and government agencies; (2) the aggregation of data that was collected for another purpose from that for which it is ultimately used. b. “Extreme Vetting” means data mining, threat modeling, predictive risk analysis, or other similar services. Extreme Vetting does not include: (1) The City’s computer-network health and performance tools; (2) Cybersecurity capabilities, technologies and systems used by the City of Berkeley Department of Information Technology to predict, monitor for, prevent, and protect technology infrastructure and systems owned and operated by the City of Berkeley from potential cybersecurity events and cyber-forensic based investigations and prosecutions of illegal computer-based activity.

IN WITNESS WHEREOF, this Occupancy Agreement has been executed by the parties hereto as of the dates written below.

CITY:

CITY OF BERKELY
By: __________________________________
Dee Williams-Ridley
Its: _City Manager_______________________
OWNER:

CAMPUS MOTEL, LLC
By: __________________________________
Feroz Amin
Its: _Manager__________________________

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Date: ________________________________ Date: ________________________________ Approved as to Form
_________________________

DEPUTY CITY ATTORNEY
By: ______________________

16 39809.1 19138181.1
SCHEDULE 7

REPAIRS, FUNDING, AND RISK MANAGEMENT OBLIGATIONS
The parties intend by these provisions to provide certain standards for reducing (and allocating) risks and costs between them, including the costs of repairs arising from the use of the Premises and the need for repairs or reconstruction of the Premises during the Term.

A. ADA Accessibility And Disability Access Disclosure Under Section 1938 of the California Civil Code. City acknowledges and agrees that it is familiar with the condition of the Premises and all improvements thereon and, except with respect to pending work on a retaining wall that affects some of the parking on site, is leasing the Premises in its “AS-IS” condition, and, except with respect to said retaining wall, Owner shall have no obligation whatsoever to perform any work, supply any materials, incur any expenses or make any installations in order to prepare the Premises for City’s occupancy.

Moreover, Owner has not granted any allowances of any kind for the condition of the Premises. Except as expressly provided in this Occupancy Agreement, Owner makes no representation or warranty of any kind or nature, express, implied or otherwise, regarding the condition or usefulness of the Premises by or for City, its compliance with applicable Legal Requirements, or the suitability of the Premises for any particular use or purpose.

In accordance with Section 1938 of the California Civil Code, Owner has notified City that the Premises has undergone an inspection by a Certified Access Specialist to determine if the Premises meet all applicable construction related accessibility standards pursuant to Section 55.53 of the California Civil Code. Owner makes the following statement in compliance with the requirements of Section 1938(e) of the California Civil Code:
“A Certified Access Specialist (“CASp”) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state Laws. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the subject premises.”
If City desires to obtain such CASp inspection, the CASp party, the scope of the inspection and date such inspection shall be performed shall be subject to the prior written approval of Owner, which will not be unreasonably withheld. Owner shall have the right to have a representative present during such inspection. The cost of such inspection shall be paid by City without reimbursement or other payment from Owner. Any work with respect to the Premises required to be completed as described in the CASp report shall be performed and paid for by City. Nothing contained in this Schedule 7 (including, without limitation, the notice to City above), shall alter the Parties’ respective obligations under the other express provisions of this Occupancy Agreement.

B. Life Safety Systems. At its cost, Owner shall provide the existing life safety systems on the Premises, together with any upgrades required by applicable law. City agrees that its Program manager will, at least on a weekly basis, (i) test all smoke/CO detectors throughout the Hotel, and (ii) report to Owner on any smoke detectors that fail the test. Separately, the City will promptly notify the Owner of any defects that it becomes aware of in the life safety systems on the Premises.

17 39809.1 19138181.1
C. Yearly Damage Deposit. As provided in Section 7 of the Occupancy Agreement, on the Commencement Date and on each anniversary of the Commencement Date (thus, at the start of each Year of occupancy), the City will provide an annual amount as a "damage deposit" for the ensuing Operating Year to cover anticipated costs of repairing the Premises following a Casualty caused by a City Party.

Any unused portion of the Yearly Damage Deposit will be retained by Owner as Rent; provided, however, if the Owner exercises an Owner Termination Right, a Casualty Termination Right, or a Special Termination Right, or the City exercises a termination due to Owner's Event of Default, then as of the date the Term ends, any unused portion of the Yearly Damage Deposit shall be (i) applied to the need for repairs to the extent that City fails to surrender the Property in the condition required by the Occupancy Agreement; and (ii) the balance is to be paid over to the City within thirty (30) days of such surrender, or the completion of such repairs, whichever is later.

D. Program Management. The City has advised Owner that each Program Guest is bound by an agreement with the City ("Residency Agreement") to use the Premises for residential purposes only and to exercise care in pursuing that occupancy and use.

1. It is a material part of the Occupancy Agreement that the City observe and enforce the following requirements under the Residency Agreement: (i) it will ensure that the Program Guest will test the smoke/CO detector in that person's assigned Room and report on whether it functions (this shall not relieve the City from its own testing obligations); and (ii) the City will ensure that each Residency Agreement will be duly reviewed and signed by the Program Guest, and that it will contain the following warnings and provisions in capital letters and 14 point font (and it shall note that doing these things will be grounds for eviction from the Premises):
[CITY/PROGRAM COMPANY] WANTS TO ENSURE THAT THE HOUSING OFFERED IS KEPT IN A SAFE AND USABLE CONDITION.

YOU AGREE TO HELP ENSURE THAT YOU DO YOUR PART TO REACH THIS GOAL.

IF YOU OR ANY GUEST OF YOURS ENGAGES IN ANY OF THE FOLLOWING CONDUCT, IT WILL

CONSTITUTE WILLFUL MISCONDUCT AND WILL BE IMMEDIATE GROUNDS FOR TERMINATING YOUR RIGHT TO ENTER THE PROPERTY: (A) ANY INTENTIONAL DAMAGE TO THE ROOM OR ANY PART OF THE BUILDING OR EXTERIOR PREMISES (i.e., PURSUING A COURSE OF ACTION WITH THE LIKELY RESULT THAT IT WILL SO DAMAGE THE PREMISES); (B) SMOKING IN THE ROOM OR ANYWHERE IN THE BUILDING; (C) ANY TAMPERING OR DAMAGE TO THE SMOKE DETECTORS IN THE ROOM OR THE BUILDING; (D) ALLOWING ANYTHING TO ENTER THE

TOILET OR BE FLUSHED DOWN THE TOILET OTHER THAN HUMAN WASTE AND REGULAR

TOILET PAPER, (THIS IS WITHOUT EXCEPTION - SO, ALL OF THE FOLLOWING ARE PROHIBITED: SYRINGES, “WIPES” OF ANY KIND [INCLUDING THOSE THAT CLAIM TO BE "DISPOSABLE"], TAMPONS, PAPER TOWELS, HAIR BALLS, DENTAL FLOSS, STRING, ETC. ARE ALL STRICTLY PROHIBITED); (E) TAMPERING WITH ANY PLUMBING OR ELECTRICAL DEVICES (THAT IS, ANYTHING OTHER THAN TURNING FAUCETS ON OR OFF, OR PLUGGING IN APPLIANCES, ETC.); (F) ALLOWING ANY SINK TO OVERFLOW; (F) THE USE OF ANY OF THE FOLLOWING: ANY OPEN FLAME, ANY HOT PLATES AND ANY SPACE HEATERS; (G) TAMPERING WITH ANY ELECTRICAL WIRING; (H) BRINGING ANY HAZARDOUS MATERIALS ONTO THE

PREMISES UNLESS IT IS A CONSUMER PRODUCT THAT IS KEPT IN ITS AUTHORIZED CONTAINER AND USED SOLELY FOR THE PURPOSE IT WAS DESIGNED FOR; AND (I) BRINGING

PROPANE, GASOLINE OR ANY OTHER FLAMMABLE PRODUCT ONTO THE PREMISES, EXCEPT FOR FUEL IN A VEHICLE'S FUEL TANK.

18 39809.1 19138181.1

2. IF YOU ARE RESPONSIBLE FOR ANY LOSS OR DAMAGES TO THE ROOM OR ANY PART OF THE PROPERTY, DUE TO YOUR NEGLIGENCE OR WILLFUL MISCONDUCT, THEN [THE CITY] CAN TERMINATE YOUR USE OF THE ROOM OR THE PREMISES IMMEDIATELY AND YOU

WILL LOSE ALL PRIVILEGES AND BENEFITS OF THIS PROGRAM PROVIDED TO YOU BY THE CITY.

3. For all purposes under this Occupancy Agreement, City acknowledges that if any City Party engages in any of the conduct identified as "willful misconduct" in the enumerated actions set out in capital letters of subsection 1., above, it shall be binding on City as an act of "willful misconduct" for all purposes under this Occupancy Agreement.
 Eviction for Misconduct. The City and its Operator shall ensure that Owner is promptly notified of any events or occurrences constituting a violation of the above requirements under the Residency Agreement (regardless of any ostensible "cure" period). All of the above must be grounds for immediate eviction under the Residency Agreement, and where any of the prescribed events occurs, the City will take all reasonable and lawful measures to cause such Program Guest to be evicted from the Premises within TEN (10) days of the occurrence, and ensure that he or she is precluded from reentering the Premises for the balance of the Term. Until such eviction is accomplished, the City will be responsible for any further losses caused by that Program Guest.  Other Evictions/Risk Allocation. Moreover, if the Program Guest has more than one such damage incident, that is the result of mere negligence (i.e., the first such occurrence was not caused by an act or omission constituting gross negligence or willful misconduct, including, as defined in the Residency Agreement), and the aggregate damage inclusive of prior Casualties attributable to such Program Guest is greater than $5,000, then, if the City does not oust the Program Guest, the City will be responsible for any further damages caused by that Program Guest's negligence (after the Yearly Damage Deposit has been exhausted). Where any Program Guest causes a loss of more than $5,000.00 (in a single instance or in the aggregate), regardless of the degree of negligence or misconduct, and the City does not remove such person from the Premises immediately after such a threshold of harm has been reached, then the City shall be responsible for any further Claim, loss or damage caused by such Program Guest's acts or omissions (whether due to simple or gross negligence or due to willful misconduct); provided that, if the City is so obligated to pay for such further losses, the City can apply any balance remaining in the Yearly Damage Deposit for that Year (defined in Section 7, above) to cover the resulting costs.
o Thus, if a Program Guest has caused two instances where repairs were needed and these cost more than $5,000 in losses, and the City does not remove such person from the Premises, and then a further loss of $10,000 occurs due to that person's acts or omissions, the City will pay for such additional $10,000 loss; however, it can use any remaining balance in the Yearly Damage Deposit to pay for those costs. For example, if there are three thousand dollars ($3,000) remaining in the Yearly Damage Deposit account for that Year, then the parties will apply the $3,000 to pay for such repairs, and the City will provide further payment of the $7,000.00 balance to cover the additional costs of repairs.
o See additional provisions in Exhibit C.

D. Insurance. See Exhibit C.

19 39809.1 19138181.1

20 39809.1 19138181.1
Exhibit A
Aerial Site Plan
This is an aerial site plan including all parking spaces contiguous to the subject hotel building.

This is a street view showing parking spaces contiguous to the subject hotel building.

21 39809.1 19138181.1
Exhibit B
Hazardous Substances and Environmental Laws
“Hazardous Substances” means any hazardous or toxic substance, material or waste, or any pollutant or contaminant, or any substance that is or becomes regulated by any local governmental authority, the state in which the Premises are located or the United States Government, including without limitation: (a) those substances included within the definitions of “hazardous substances,” “hazardous materials,” “toxic substances,” or “solid waste” in CERCLA or RCRA; (b) those substances defined as “hazardous wastes” in section 25117 of the California Health & Safety Code, or as “hazardous substances” in section 25316 of the California Health & Safety Code, and in the regulations promulgated pursuant to said laws; (c) those substances listed in the United States Department of Transportation Table (49 C.F.R. 172.101 and amendments thereto) or by the Environmental Protection Agency (or any successor agency) as hazardous substances (40 C.F.R. part 302 and amendments thereto); (d) any material, waste or substance which is (i) petroleum (including crude oil or any fraction thereof, natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel, or any mixture thereof), (ii) petroleum products, (iii) asbestos, (iv) polychlorinated biphenyls, (v) designated as a “hazardous substance” pursuant to section 311 of the Clean Water Act, 33 U.S.C. 1251 et seq. (33 U.S.C. §1321) or listed or designated as a “hazardous substance” pursuant to section 307 of the Clean Water Act (33 U.S.C. §1317), (vi) flammable explosives, or (vii) radioactive materials, (viii) urea formaldehyde, (ix) radon gas, (x) medical waste, and (xi) chemicals that may cause cancer or reproductive toxicity; (e) defined as a “hazardous waste” pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. § 6903), (f) defined as a “hazardous substance” pursuant to section 101 of the Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C. § 9601, et seq.); and (g) such other substances, materials, and wastes which are or become classified as hazardous or toxic under any of the Environmental Government Regulations or any other applicable local, state or federal law, or otherwise are or become regulated under any Environmental Law(s).
“Environmental Law(s)” means any federal, state, or local laws, ordinances, rules, regulations, requirements, orders, directives, guidelines, or permit conditions, in existence as of the Commencement Date or as later enacted, promulgated, issued, modified or adopted, regulating or relating to Hazardous Substances, and all applicable judicial, administrative, and regulatory decrees, judgments, and orders, and common law, including those relating to industrial hygiene, public safety, human health, or protection of the environment, or the reporting, licensing, permitting, use, presence, transfer, treatment, analysis, generation, manufacture, storage, discharge, Release, disposal, transportation, Investigation or Remediation of Hazardous Substances. Environmental Government Regulations include the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. section 9601, et seq.) (“CERCLA”); the Resource Conservation and Recovery Act, as amended, (42 U.S.C. section 6901 et seq.) (“RCRA”); the federal Water Pollution Control Act, as amended, (33 U.S.C. section 1251 et seq.); the Toxic Substances Control Act, as amended, (15 U.S.C. section 2601 et seq.); the Hazardous Substances Account Act (Chapter 6.8 of the California Health and Safety Code section 25300 et seq.); Chapter 6.5 commencing with section 25200 (Hazardous Waste Control) and Chapter 6.7 commencing with section 25280 (Underground Storage of Hazardous Substances) of the California Health and Safety Code; and the California Water Code, sections 13300 et seq.

22 39809.1 19138181.1

EXHIBIT C
Minimum Insurance Requirements
Unless separately defined below, capitalized terms shall have the meaning given to them in the main body of the Occupancy Agreement. To the extent of any conflict between these provisions and those in the main body of the Occupancy Agreement, these shall prevail. In addition, the City will provide all of the coverages contained in its "Memorandum of Coverages" attached hereto as Schedule 2 to the extent that such coverages are broader than and more protective of Owner (otherwise the broader coverages of this Exhibit C and the provisions of the main body of the Occupancy Agreement will prevail). a. For the Term of this Occupancy Agreement, City shall self-insure or maintain, at its own expense, comprehensive general liability insurance in an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single and aggregate limits for both bodily injury and property damage, personal injury, completed operations and products liability. City shall insure all of the City's personal property located on or in the Premises against all risks. All such liability insurance shall name the Owner and its members and manager and its agents and employees as additional insureds and shall contain a severability of interests clause, specifying that, with respect to the coverage limits, such liability insurance applies to each person named as additional insureds as though a separate policy were issued to each, thus providing primary coverage with respect to the claims arising from the operations on the Premises.

City shall cause its Operator to provide the following insurance coverages: (a) comprehensive general liability insurance in an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single and aggregate limits for both bodily injury and property damage, personal injury, completed operations and products liability; (b) "all risks" form of property insurance for all of the Operator's personal property on the Premises; (c) If any licensed professional performs services as the Operator, a professional liability insurance policy in the minimum amount of $1,000,000 to cover any claims arising out of Operator's performance of services under this Occupancy Agreement; (d) Worker's Compensation Insurance at levels required by statute; and (e) if Operator uses any vehicles in its operations in or about the Property, automobile liability coverage for bodily injury and property damage of not less than $100,000 per person bodily injury per accident and $50,000 in property damage per accident. The Workers' compensation policy shall include Employer Liability Insurance with limits not less than $1,000,000 each accident, and shall provide that the insurance carrier shall not cancel, terminate, or otherwise modify the terms and conditions of said insurance except upon thirty (30) days prior written notice to Owner and shall provide for a waiver of any right of subrogation against Owner, to the extent permitted by law
City has provided a Memorandum of Coverage to signify its proposed coverage of these coverage obligations. A copy is attached to this Exhibit C as Schedule 1. The City agrees to maintain these coverages at its cost throughout the Term.

Subject to the provisions of this Exhibit C, Owner shall maintain at all times during the performance of this Occupancy Agreement the insurance coverages (for property damage to the Property and for liability insurance) as identified in the quote relating to property damage and liability insurance attached hereto as Schedule 1. To the extent permitted under Owner's Policies, Owner's liability insurance shall name the City, its officers, agents, volunteers and employees as additional insureds but shall be subordinate to the primary coverage provided by the City.

Owner shall not be in breach of this Occupancy Agreement if it is unable to procure ongoing or replacement coverage(s) for the policies or coverages noted on Schedule 1(whether property damage or liability coverage; individually, an "Owner's Policy", and collectively, "Owner's Policies"), so long as Owner has made commercially reasonable efforts to find replacement coverage for an Owner's Policy

23 39809.1 19138181.1
and is unable to find equivalent coverage, or is unable to find it at a premium cost that does not exceed the prior Year's coverage costs for such insurance by more than 50% and City will not cover the excess premium costs over such 50% maximum (referred to as a "Coverage Failure"). If Owner suffers a Coverage Failure, it may elect to terminate this Occupancy Agreement on thirty (30) days' notice ("Special Termination Right"), and if there is a loss of coverage under the Owner Policies before the City surrenders possession, City shall be responsible for any Claim, loss or damage suffered or incurred by Owner until such surrender occurs. If Owner exercises its Special Termination Right then City shall timely surrender the Premises to Owner as required within such thirty (30) days, unless the next sentence applies. The City shall have an option to extend the surrender date by ninety (90) days (so that the surrender date is one hundred and twenty (120) days after notice of the Special Termination Right ("Extension Election")) if (i) it has not otherwise caused an Event of Default, (ii) the Coverage Failure is only with respect to Owner's property damage coverage, and (iii) the City makes its Extension Election within ten (10) days of Owner's notice of exercising its Special Termination Right. If an Extension Election occurs, the City shall hold harmless, defend and indemnify the Owner and the Indemnitees from all Claims arising from the City's continued use of or operations on the Property until the Premises are duly surrendered by the City. Time is of the essence in making such Extension Election.

All insurance policies shall: 1) provide that the insurance carrier shall not cancel, terminate or otherwise modify the terms and conditions of said policies except upon thirty (30) days written notice to the City’s Contract Administrator or the Owner, as applicable (unless otherwise noted on Schedule 1); and 2) be evidenced by the original Certificate of Insurance, specifying the required coverage and the insurance carrier’s standard additional insured form endorsement. If any of the stipulated coverages are to change, such change is to be approved as to form and sufficiency by the City’s Contract Administrator and Owner, as applicable, with such approval to be reasonably exercised. A failure by City or Owner to procure and maintain the required coverage(s) is an Event of Default unless the failure is a Coverage Failure. The original insurance certificates and all extensions to the insurance certificates should be sent to the addresses identified below.
b. If the commercial general liability insurance referred to above or shown in Schedule 1 is written on a Claims Made Form then, following termination of this Occupancy Agreement, the applicable party required to provide coverages must purchase and ensure there is coverage that will survive for a period of not less than five years after the end of the Term. Coverage shall also provide for a retroactive date of placement coinciding with the effective date of this Occupancy Agreement. c. If a party to the Occupancy Agreement (including any Operator) employs any person to be in or around the Premises, it shall carry workers’ compensation and employer’s liability insurance and shall provide a certificate of insurance to its counterparty. The workers’ compensation insurance shall: 1) provide that the insurance carrier shall not cancel, terminate or otherwise modify the terms and conditions of said insurance except upon thirty (30) days written notice to the City’s Contract Administrator or Owner (as applicable); 2) provide for a waiver of any right of subrogation against the counterparty, to the extent permitted by law; and 3) shall be approved as to form and sufficiency by the Contract Administrator and the Owner, as applicable.

Where there is a Casualty event, and coverage may be available under an Owner's Policy, it is within the Owner's discretion to tender a claim under such policies, except to the extent the City can direct that decision under this subsection (d). If, in any given Year there is a liability claim, or a Casualty event that involves a loss or damage (to Owner or a third party) that is covered under an Owner's Policy (a "Covered Claim"), then Owner shall (i) provide notice to the City of the nature of the Covered Claim and the date of occurrence ("Claim Notice"), and (ii) tender the Covered Claim under the applicable Owner's Policy if (i) the amount of the Covered Claim for an occurrence is more than $150,000.00 (One Hundred and Fifty Thousand Dollars), (ii) if the amount of the Covered Claim is less than $150,000.00, but more

24 39809.1 19138181.1
than one Covered Claim has occurred during the applicable Year and the aggregate of all such Covered Claims in that Year (regardless of whether they were tendered) exceeds $250,000.00, and (iii) the City directs the Owner to pursue submission of the Covered Claim within ten (10) days of the Claim Notice. If Owner submits such Covered Claim and, as a result, there is a Coverage Failure, Owner may elect to terminate this Occupancy Agreement as a Special Termination Right. e. If there is a Casualty or Claim that exceeds the coverage limits required of Owner under the Occupancy Agreement (e.g., $5 million in property coverage and $1 million in liability coverage), the City agrees to hold harmless, defend and indemnify the Owner and the Indemnitees from and against any loss or Claims arising from the Casualty or Claim that exceed the required coverage limits. f. Owner shall forward all insurance documents to:

Department Name: City Manager
Department Address: 2180 Milvia Street, Berkeley, CA 94704 The City shall forward all insurance documents to the Owner at its address for notices.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Peter Radu, Assistant to the City Manager Subject: Contract: Insight Housing (formerly Berkeley Food and Housing Project) to operate interim housing at the Super 8

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute a contract and all necessary amendments with Berkeley Food and Housing Project to operate an interim housing program at the Super 8 Motel (1619 University Ave.) in an amount not to exceed $7,295,634.55 for the period of August 1, 2023 to July 31, 2028.

FISCAL IMPACTS OF RECOMMENDATION
If approved, this resolution will result in an expenditure contract with Insight Housing (formerly Berkeley Food and Housing Project) for an amount not to exceed $7,295,634.55 for 60 months of program operations through July 31, 2028. This contract will be funded by the Encampment Resolution Fund Round 2 grant (the acceptance of which award is also before Council on the July 11, 2023 agenda) for the first two years. Extending beyond the first two years will require additional funding; consistent with the guidance from the Budget and Finance committee on February 9, 2023, years 3-4 would need to be covered by Measure P. The City will allocate $2,913,253.82 of the $4.9M Encampment Resolution Fund Round 2 (ERF-2) grant and/or additional Measure P to maintain shelter operations through July 31, 2028.

These funds will first be appropriated as part of the First Amendment to the FY 2024 Annual Appropriations Ordinance.

CURRENT SITUATION AND ITS EFFECTS
The encampments in Northwest Berkeley are the highest priority encampments in the City: they are our largest remaining encampments and pose numerous risks to community health, including heavy drug use, rodent harborage, and fire concerns. The accumulation of debris and rodent harborage conditions in the area negatively affects both the residents and the surrounding businesses. These encampments have been deep cleaned and/or closed on multiple occasions and have received significant street outreach efforts such as shelter offers, case management, housing navigation, and problem solving.

Execute contract with Insight Housing to operate interim housing at the Super 8 CONSENT CALENDAR July 11, 2023

Prioritizing the well-being of the people who call the area home necessitates that they be assisted indoors or into places of greater safety. By developing a resource specifically tailored to the needs of the encampment, the City can assist everyone that wants a shelter bed to get indoors and work with remaining residents to identify a safer alternative.

Further, we have not yet had a dedicated funding source to appropriately serve these encampments in their entirety (which together have an estimated 40 residents); by finding a resolution to this geographic area, we can more equitably redistribute resources to other areas of the city that require assistance.

Given the tremendous success of the City’s use of the first round of state Emergency Resolution Funding, which targeted the encampment in People’s Park by providing noncongregate, interim housing at the Rodeway Inn, staff is optimistic that this intervention will be equally successful. Since the beginning of ERF operations in May 1, 2022, over 125 individuals have been served with 42 individuals moving to permanent housing. Additionally, the Super 8 partnered with the City of Berkeley to utilize the Winter Relief Shelter funds, provided by Alameda County, which granted short term motel stays for individuals experiencing street homelessness during the winter months of 2023. By establishing a master lease with the property and bringing in supportive services provided by Insight Housing, staff will strengthen the partnership with the motel owner. A lease ordinance for this project is also before the Council on the July 11, 2023 agenda.

Staff propose to provide services from Insight Housing (formerly Berkeley Food and Housing Project) for the cohort currently living in the Northwest Berkeley encampments, and is recommending that the Council authorize the City Manager to contract with Insight Housing for this purpose. The proposed contract with Insight Housing would be for $7.3M over 60 months and would cover an array of services including supportive housing navigation, housing search assistance and flexible funding to support moving and move- in expenses; three meals a day; transportation assistance; and intensive clinical case management that would help link individuals to a variety of other needed services. The City’s Homeless Response Team will partner with LifeLong Medical Care, Bay Area Community Services, and the Homeless Action Center street teams to perform extensive outreach to the people living in the encampments and will coordinate and facilitate referrals with BFHP to support Super 8 enrollments. The City and Alameda County will partner to provide as many housing and supportive services resources as possible (given various Federal and State regulations) to the cohort at the Super 8, with the goal of ensuring that everyone at the encampment is ultimately transitioned to a permanent home.

If approved, the contract with BFHP would begin on August 1, 2023 and extend through July 31, 2028. Funding for the contract would come from the state’s Encampment Resolution Fund Round 2 grant and possibly the City’s Measure P funds.

Execute contract with Insight Housing to operate interim housing at the Super 8 CONSENT CALENDAR July 11, 2023

BACKGROUND
On February 1, 2023 the Homeless Services Panel of Experts moved to support the City of Berkeley’s application for Encampment Resolution Funding to enter into a lease agreement with the Super 8 at 1619 University Ave for four years.

On February 9, 2023, the Budget and Finance Committee approved staff to apply for a second round of Encampment Resolution Funding from the California Interagency Council on Homelessness and authorized staff to include in the application a match commitment funded with Measure P dollars to continue the program in Fiscal Years 26- 27 if awarded.

On Feb 28, 2023, staff submitted this application and on June 14, 2023, the City was awarded the full amount of its ERF Round 2 grant application.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
Helping unhoused people currently living in West Berkeley transition into interim and permanent housing placement will minimize the detrimental environmental impacts associated with encampment homelessness over the long run, including vector and fire hazards, accumulation of trash and waste, and impacts on sensitive waterways. It will also reduce negative impacts of environmental elements on the health and safety of those living in these encampments.

RATIONALE FOR RECOMMENDATION
Insight Housing will be the main social service provider for the proposal and has been providing services in our community since 1970, including: emergency food and shelter, transitional housing, rapid rehousing, and permanent supportive housing with support services to individuals and families. Insight Housing also has experience operating non- congregate shelter in Berkeley, having operated a Project Roomkey site during the pandemic.

ALTERNATIVE ACTIONS CONSIDERED
None. The City of Berkeley’s current shelter crisis resolution (Resolution No. 70,179-N.S.) authorizes the City Manager to waive usual purchasing and bid requirements for the provision of emergency shelter; pursuant to this authority, and for the purpose of implementing the new ERF-2 funding as quickly as possible, staff recommend sole- sourcing this contract to BFHP.

CONTACT PERSON
Josh Jacobs, Homeless Services Coordinator, 510-225-8035.

Attachments:
1: Resolution

RESOLUTION NO. XX,XXX N.S.

AUTHORIZING A CONTRACT WITH INSIGHT HOUSING TO OPERATE INTERM HOUSING AT THE SUPER 8 MOTEL FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $7,295,634.55 FOR THE PERIOD AUGUST 1, 2023 TO JULY 31, 2028.

WHEREAS, the severe lack of housing affordable to people who are experiencing homelessness or insecurely housed, is contributing to an acute housing shortage that is worsening the rates of homelessness in Berkeley; and
WHEREAS, Northwest Berkeley is currently home to several large encampments of unsheltered individuals who will need to be assisted indoors into realistic, safe, and dignified interim and permanent housing options in order to address the street conditions in the area; and
WHEREAS, the City applied for $4.9M in State of California Encampment Resolution Fund (ERF) grant funds to operate the Super 8 as an intensive interim housing destination for the cohort currently living in the Northwest Berkeley encampments; and WHEREAS, as part of this ERF application, the City secured commitments from the County as well as Insight Housing to establish a program model at the Super 8 to serve and rehouse the cohort in Northwest Berkeley; and
WHEREAS, the City was awarded the full amount of their ERF application on June 14, 2023; and
WHEREAS, Insight Housing (formerly Berkeley Food and Housing Project) is an experienced provider of shelter and services to people experiencing homelessness, and is uniquely qualified to operate the Super 8, having provided emergency food and shelter, transitional housing, rapid rehousing, and permanent supportive housing with support services to individuals and families since 1970, and having operated noncongregate, motel-based shelter in Berkeley during the COVID-19 pandemic; and WHEREAS, The City of Berkeley’s current shelter crisis resolution (Resolution No. 70,179-N.S.) authorizes the City Manager to waive usual purchasing and bid requirements for the provision of emergency shelter; pursuant to this authority, and for the purpose of implementing the new project as quickly as possible, staff recommend sole-sourcing this contract to Insight Housing.

NOW THEREFORE, BE IT RESOLVED that the Council of the City of Berkeley authorizes the City Manager to enter into a contract and all necessary amendments for the period August 1, 2023 through July 31, 2028 with Insight Housing for operating a noncongregate interim housing program at the Super 8.

July 11, 2023

BE IT FURTHER RESOLVED that the contract amount will not exceed $7,295,634.55.

Contract payments will be paid from the Encampment Resolution Fund grant monies and Measure P general fund dollars.

BE IF FURTHER RESOLVED that an advance payment of $368,575 (25% of the FY24 annual allocation) will be advanced prior to contract execution to cover staffing and operating costs. A recorded signature copy of said contract and any amendments will be on file in the City Clerk Department.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Henry Oyekanmi, Director, Finance
Subject: Formal Bid Solicitations and Request for Proposals Scheduled for Possible Issuance After Council Approval on July 11, 2023

RECOMMENDATION
Approve the request for proposals or invitation for bids (attached to staff report) that will be, or are planned to be, issued upon final approval by the requesting department or division. All contracts over the City Manager’s threshold will be returned to Council for final approval.

FISCAL IMPACTS OF RECOMMENDATION
Total estimated cost of items included in this report is $482,500.

CURRENT SITUATION AND ITS EFFECTS
On May, 6, 2008, Council adopted Ordinance No. 7,035-N.S. effective June 6, 2008, which increased the City Manager’s purchasing authority for services to $50,000. As a result, this required report submitted by the City Manager to Council is now for those purchases in excess of $100,000 for goods; and $200,000 for playgrounds and PROJECT Fund Source Amount
Towing Services Contract 011 GF - Discretionary $180,000 Woolsey-Eton Intersection
Improvements
City Project No.:

PWTRTC2202
130 Measure B – Local Streets
and Roads $302,500
Total: $482,500

Formal Bid Solicitations and Request for Proposals CONSENT CALENDAR Scheduled for Possible Issuance After Council July 11, 2023 Approval on July 11, 2023
construction; and $50,000 for services. If Council does not object to these items being sent out for bid or proposal within one week of them appearing on the agenda, and upon final notice to proceed from the requesting department, the IFB (Invitation for Bid) or RFP (Request for Proposal) may be released to the public and notices sent to the potential bidder/respondent list.

BACKGROUND
On May 6, 2008, Council adopted Ordinance No. 7,035-N.S., amending the City Manager’s purchasing authority for services.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The Finance Department reviews all formal bid and proposal solicitations to ensure that they include provisions for compliance with the City’s environmental policies. For each contract that is subject to City Council authorization, staff will address environmental sustainability considerations in the associated staff report to City Council.

RATIONALE FOR RECOMMENDATION
Need for the goods and/or services.

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Darryl Sweet, General Services Manager, Finance, 510-981-7329 Attachments:
1: Formal Bid Solicitations and Request for Proposals Scheduled for Possible Issuance After Council Approval on July 11, 2023
a. Towing Services Contract
b. Woolsey-Eton Intersection Improvements - City Project No. PWTRTC2202 Note: Original of this attachment with live signature of authorizing personnel is on file in General Services.

NEXT 30 DAYS
DATE SUBMITTED: July 11, 2023
Attachment 1

SPECIFICATION
NO.

DESCRIPTION

OF GOODS /

SERVICES
BEING

PURCHASED
APPROX.

RELEASE
DATE
APPROX. BID

OPENING
DATE

INTENDED USE ESTIMATED
COST

BUDGET CODE TO

BE CHARGED
DEPT. / DIVISION CONTACT NAME
& PHONE
23-11612-C Towing Services
Contract
8/1/23 8/29/2023 The Contractor agrees to
perform all services
described in Exhibit A, in
accordance with its stated
terms and conditions.

Exhibit A is attached to
made a part of the
proposed contract.
$180,000 NTE 011-71-702-805-
0000-000-421-
612990
Police Department Lt Jen Tate
981-5983
DEPT. TOTAL $180,000
23-11614-C Woolsey-Eton
Intersection
Improvements
City Project No.:

PWTRTC2202
7/15/23 8/31/2023 Construction of traffic circle,
medians, curb ramps,
sidewalk, curb, gutter,
raised crosswalk, asphalt
concrete pavement, and
pavement markings.

Removal of two existing
street trees.
$302,500
(includes 10%
construction
contingency)
FY2023:
130-54-622-668-
0000-000-431-
665110-
(PWTRTC2202)
Public Works -
Transportation
Ken Jung
981-7028
DEPT. TOTAL $302,500
TOTAL $482,500
1 of  1

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Lisa Warhuus, Director, Health, Housing, and Community Services Subject: Contract: Strategic Economics and Street Level Advisors for Affordable Housing Requirements Economic Feasibility Analysis

RECOMMENDATION
Adopt a Resolution authorizing the City Manager or her designee to execute a contract and any amendments with Strategic Economics as a Contractor and Street Level Advisors as a subcontractor, to conduct an Economic Feasibility Analysis of the Affordable Housing Requirements for the Department of Health, Housing, and Community Services (HHCS) from July 15, 2023 to July 15, 2024 in an amount not to exceed $150,000.

FISCAL IMPACTS OF RECOMMENDATION
The term of this contract is from July 15, 2023 to July 15, 2024. Funding in the amount of $150,000 for the Affordable Housing Requirements Economic Feasibility Analysis contract is available in the Fiscal Year 24 Budget in the General Fund (ERMA Fund 011).

CURRENT SITUATION AND ITS EFFECTS
The City of Berkeley adopted revised Affordable Housing Requirements (AHR) (Berkeley Municipal Code Chapter 23.328) for new housing development projects on February 28, 2023. The ordinance went into effect on April 1, 2023. The revisions transition the City’s affordable housing requirements from an affordable housing mitigation fee to an inclusionary housing requirement with an option to pay a fee in-lieu of the onsite provision of affordable housing. All in-lieu fees are deposited into the City’s Housing Trust Fund program. City Council directed staff to conduct an economic feasibility analysis related to the new AHR.

In addition, the City’s condominium conversion regulations (Berkeley Municipal Code Chapter 21.28) established an affordable housing mitigation fee to mitigate the impact of removing rental housing from the local market. The City is seeking updated analysis to consider changes to the program’s affordable housing requirements.

Contract: Strategic Economics and Street Level Advisors CONSENT CALENDAR for Affordable Housing Requirements Economic Feasibility Analysis July 11, 2023

Staff issued Request for Proposals (RFP) Specification No. 23-11571-C on March 21, 2023. The RFP closed on April 18, 2023. The City received two responses. The selection committee included staff from HHCS’ Housing and Community Services Division (HHCS/HCS) and the Department of Planning and Development.

BACKGROUND
State law requires the City offer alternative options for AHR compliance. Since 2015, the AHR has generated approximately $38 million for the Housing Trust Fund Program to support the new construction and rehabilitation of affordable housing.

The economic feasibility analysis will quantify how the revised AHR will impact the feasibility of new residential development. HHCS/HCS is also seeking analysis on the condominium conversion requirements to supplement the City’s updated AHR analysis.

The analysis resulting from this contract will inform the City Council in light of evolving market conditions. The analysis will meet the specified criteria in the State’s guidance on AB1505 and other best practices.

The analysis will also consider the financial impacts of the new health care and apprenticeship requirements (Berkeley Municipal Chapter Code 13.07) on the feasibility of residential development.

The feasibility analysis will be used to verify the feasibility of the current in-lieu fee and/or determine new few amounts for the AHR, including fees for smaller projects, and condominium conversion projects. Staff and the consultant will use the feasibility analysis to develop policy option recommendations for Council’s consideration.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no environmental impacts related to this contract.

RATIONALE FOR RECOMMENDATION
The City conducted a competitive bid process. The Strategic Economics/Street Level Advisors application successfully met the bid requirements and ranked highest among all bidders.

ALTERNATIVE ACTIONS CONSIDERED
The City also received a very competitive application from Century Urban. Reviewers found Strategic Economics/Street Level Advisors better demonstrated a strategy for analyzing Berkeley’s housing market, including missing middle project sizes and ownership structures requested by Council. Therefore, contracting with Century Urban for this project is not recommended.

CONTACT PERSON
Mike Uberti, Senior Community Development Project Coordinator, HHCS, (510) 981- 5424

Contract: Strategic Economics and Street Level Advisors CONSENT CALENDAR for Affordable Housing Requirements Economic Feasibility Analysis July 11, 2023

Attachments:
1: Resolution

RESOLUTION NO. ##,###-N.S.

CONTRACT: STRATEGIC ECONOMICS AND STREET LEVEL ADVISORS FOR

AFFORDABLE HOUSING REQUIREMENTS ECONOMIC FEASIBILITY ANALYSIS WHEREAS, the City of Berkeley adopted revised Affordable Housing Requirements (Berkeley Municipal Code Chapter 23.328) for new housing development projects on February 28, 2023.

WHEREAS, the City of Berkeley issued a Request for Proposals (RFP) to obtain professional services to conduct an economic feasibility analysis to support the revised Affordable Housing Requirements and Condominium Conversion ordinance; and WHEREAS, the City conducted RFP Specification No. 23-11571-C with proposals due no later than April 18, 2023; and
WHEREAS, the City received two proposals in response to this RFP; and WHEREAS, the City conducted a competitive bid process, and a joint application from Strategic Economics and Street Level Advisors met the bid requirements and ranked highest among all bidders.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager or her designee is authorized to execute a contract and any amendments with Strategic Economics as a contractor, and Street Level Advisors as a subcontractor, to provide professional services for Affordable Housing Requirements Economic Feasibility Analysis from July 15, 2023 to July 15, 2024 in an amount not to exceed $150,000.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Lisa Warhuus, Director, Health, Housing, and Community Services Subject: Contract No. 32300134 Amendment: Bonita House for Specialized Care Unit Provider

RECOMMENDATION
Adopt a Resolution authorizing the City Manager or her designee to amend Contract No. 32300134 with Bonita House to add $68,000 of Mental Health Services Act (MHSA) funding for the Specialized Care Unit for a not-to-exceed total of $4,568,000.

FISCAL IMPACTS OF RECOMMENDATION
This amendment will add $68,000 for a total not-to-exceed amount of $4,568,000.

Funding for the Bonita House contract for the Specialized Care Unit (SCU) evaluation is available in the FY2023 budget in the Mental Health Services Act Fund 315. Funds will be appropriated as part of the First Amendment to the FY 2024 Annual Appropriations Ordinance.

CURRENT SITUATION AND ITS EFFECTS
The SCU is a Strategic Plan Priority Project, advancing our goal to champion and demonstrate social and racial equity. City Council approved the selection on December 13, 2022. Throughout 2023, Bonita House has started hiring staff and purchasing operational supplies. This additional funding set aside through the previously-approved MHSA plan will help support continued operations of the SCU’s initial implementation activities including recruitment and purchasing supplies.

BACKGROUND
In response to the killing of George Floyd by Minneapolis police in May 2020 and the ensuing protests across the nation, a conversation emerged about how policing can be done differently. The Berkeley City Council initiated a wide-reaching process to re- imagine safety in the City of Berkeley. As part of the Re-Imagining Public Safety process, the City engaged in research and planning to implement a 24/7 SCU to respond to and support people who are experiencing a mental health or substance use crisis without direct involvement of the police. The SCU will be different than the City’s current Mobile Crisis Team that is a partnership of HHCS’ Mental Health Division (HHCS/MH) and the Police Department.

Contract No. 32300144 Amendment: CONSENT CALENDAR
Resource Development Associates for Specialized Care Unit Evaluation July 11, 2023

Design for the SCU began in Fall 2020 with contracted consultant, Resource Development Associates (RDA), and the establishment of the SCU Steering Committee, an advisory group of HHCS and Berkeley Fire Department staff as well as representation from the Berkeley Mental Health Commission and Berkeley Community Safety Coalition. The City of Berkeley, in partnership with RDA, conducted extensive community engagement and stakeholder analysis to determine a model that would best serve the Berkeley community. This work culminated in 25 recommendations for the implementation of the SCU. These recommendations for implementation were subsequently evaluated by the SCU Steering Committee, with accompanying analysis to further create a SCU that would meet the community need in Berkeley.

The City of Berkeley released a Request for Proposals (RFP) to contract with a community-based organization (CBO) to serve as and implement the SCU. After a competitive proposal process, Bonita House was selected as the provider for the SCU and approved by Council in December 2022.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
No environmental sustainability and climate impacts directly associated to this recommendation have been identified.

RATIONALE FOR RECOMMENDATION
The additional funding planned in the MHSA plan will support SCU operations and assist in sustaining a pilot program for a full two-year period. Amending the SCU contract to include the MHSA funding for the SCU is in direct alignment with the already approved MHSA plan.

ALTERNATIVE ACTIONS CONSIDERED
No alternative actions were considered because the MHSA plan has already been approved with this funding line item for the SCU.

CONTACT PERSON
Katherine Hawn, Special Projects Coordinator, HHCS, 510-981-5411

RESOLUTION NO. ##,###-N.S.

CONTRACT NO. 32300134 AMENDMENT: BONITA HOUSE FOR SPECIALIZED

CARE UNIT PROVIDER
WHEREAS, Contract #32300143 was awarded to Resource Development Associates (RDA) to design and implement an evaluation for program effectiveness of the Specialized Care Unit (SCU); and
WHEREAS, through Contract #32300134 Bonita House has started hiring staff and purchasing supplies for the SCU; and
WHEREAS, $68,000 was allocated as a part of Berkeley’s previously approved Mental Health Services Act (MHSA) plan to directly support the SCU; and WHEREAS, Bonita House is the most qualified organization to receive the additional funding to further support implementation of Berkeley’s SCU.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager or her designee is authorized to amend the Specialized Care Unit Provider Contract No. 32300134 with Bonita House by adding $68,000 for a not-to-exceed amount of $4,568,000. Funds will be appropriated as part of the First Amendment to the FY 2024 Annual Appropriations Ordinance in the Mental Health Services Act Fund 315.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Lisa Warhuus, Director, Health, Housing, and Community Services Subject: Contract No. 321001100 Amendment: JotForm, Inc. for a HIPAA Compliant Platform to Support Clinical Services

RECOMMENDATION
Adopt a Resolution authorizing the City Manager or her designee to execute an amendment to Contract No. 32100110 and any subsequent amendments or extensions with the JotForm, Inc. by adding $53,424, bringing the contract total to an amount not to exceed $109,218 and extending the end date through May 12, 2026.

FISCAL IMPACTS OF RECOMMENDATION
Funding in the amount of $53,424 will be available in Fiscal Year 2024 in Mental Health Realignment fund (Fund 158) to support clinical services, subject to approval of the Annual Appropriations Ordinance.

CURRENT SITUATION AND ITS EFFECTS
Technology services provided through this contract provide support to clinical services for clients at the Berkeley High School & Berkeley Technology Academy Health Centers. Clients use this platform to independently request confidential services for mental health, reproductive health, and sexual health services. The current proposed amendment for $53,424 will ensure that clinicians and the clinical care teams have continued access to appointment requests and data on previous requests for another three years. New clients who have used JotForm thus far say that they appreciate having an easy way to request services and are surprised how quickly the health centers are able to respond to their request and make an appointment.

JotForm is a temporary solution until the City’s Electronic Health Record (EHR) system can be updated to provide the same services. Due to resource limitations, an upgrade for the Electronic Health Record (EHR) system, and the module that would enhance the service model in the same way as JotForm has been delayed, necessitating this contract extension recommendation.

Expenditure Contract: Berkeley Free Clinic for Laboratory Services CONSENT CALENDAR July 11, 2023

BACKGROUND
JotForm provides a HIPAA compliant server that increases clients’ access to the Health Center by providing a confidential link to request services. Service areas that clients can request an appointment for include: first aid, counseling, reproductive, and sexual health services. JotForm has been readily adopted by the adolescent population served by the Health Center.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental effects, climate impacts, or sustainability opportunities associated with the subject of this report.

RATIONALE FOR RECOMMENDATION
JotForm removes barriers for access to care for adolescent clients. Clients can request services from this platform anywhere they can access a smart device and internet. The high school health centers continue to be a resource for students who need reproductive and sexual health, first aid, and counseling services. Increasing accessibility to these services supports public health goals of improving the health and well-being of the community.

ALTERNATIVE ACTIONS CONSIDERED
Ceasing to use JotForm at this point would reduce access to health care for the high school health center population. While there would be a cost savings, reducing access to health care is not consistent with the Mental Health Division’s mission to increase access, and therefore not recommended.

CONTACT PERSON
Conor Murphy, Associate Management Analyst, HHCS, (510) 981-7611 Jeffrey Buell, Manager of Mental Health Services, HHCS, (510) 981-7682 Attachments:
1: Resolution

RESOLUTION NO. ##,###-N.S.

CONTRACT NO. 32100110 AMENDMENT: JOTFORM, INC FOR A HIPAA

COMPLIANT PLATFORM TO SUPPORT CLINICAL SERVICES
WHEREAS, Berkeley Public Health Division originally contracted with JotForm, Inc, in May 2020 for a HIPAA compliant platform for clinical support of clients at the Berkeley High School and Berkeley Technology Academy Health Centers; and WHEREAS, the Public Health Division originally identified JotForm, Inc early in the COVID-19 pandemic to fill an immediate need for a HIPAA compliant online software for COVID testing/vaccination consents, Vital Statistics appointments, and referrals for Mental Health services at the Berkeley High School Health Center; and WHEREAS, JotForm, Inc provides a HIPAA-compliant server that increases client’s accessibility to the health centers by providing a confidential link to request services pertaining to first aid needs, counseling, reproductive, and sexual health services; and WHEREAS, JotForm, Inc’s services complement those provided by the City and other community health care providers, and support public health goals of improving the health and well- being of the community; and
WHEREAS, these services are still required due to the delay in Electronic Health Record (EHR) system updates and enhancements due to resource limitations; and WHEREAS, on May 10, 2022 by Resolution No. 70,339-N.S., City Council authorized the City Manager to approve amending Contract No. 32100110 in an amount not to exceed $55,794; and
WHEREAS, funding is subject to appropriation in the Fiscal Year 2024 budget in Mental Health Realignment Fund Account 158-51-503-520-0000-000-451-651120-.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager or her designee is authorized to execute an amendment to Contract No. 32100110 and any subsequent amendments or extensions with JotForm, Inc. in an amount not to exceed $109,218 through May 12, 2026 for the purpose of funding continued usage of a HIPAA compliant platform to support the clinical services for clients at the Berkeley High School & Berkeley Technology Academy Health Centers within the City of Berkeley. A record signature copy of said contract to be on file in the office of the City Clerk.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Jordan Klein: Director, Planning and Development Lisa Warhuus, Director, Health, Housing, and Community Services Subject: California Department of Housing and Community Development (HCD) Prohousing Designation Program Application

RECOMMENDATION
Adopt a Resolution authorizing the City of Berkeley’s application to and participation in the California Department of Housing and Community Development (HCD) Prohousing Designation Program.

FISCAL IMPACTS OF RECOMMENDATION
Jurisdictions who obtain the Prohousing Designation will receive additional points or other preference in the scoring of their competitive applications for specified housing, community development, and infrastructure funding. Such jurisdictions may also be eligible to apply for dedicated grant funding.

CURRENT SITUATION AND ITS EFFECTS
The Prohousing Designation Program creates incentives for jurisdictions that are compliant with state housing element requirements and have enacted what HCD has determined to be “Prohousing” local policies. Cities with a Prohousing Designation will receive additional points or other preference in the scoring of their competitive applications for specified housing, community development, and infrastructure funding.

Obtaining this funding is critical to leverage the City’s Housing Trust Fund (HTF) program commitments and complete the financing for the City’s affordable housing pipeline. The City has over 750 affordable housing units in the pipeline that will require access to competitive State funding to move forward. Obtaining the Prohousing Designation will improve the City’s ability to access the competitive funds.

Berkeley has made significant progress in adopting policies consistent with the Prohousing Designation Program, which are outlined in the recently approved 2023- 2031 Housing Element. The Department of Health, Housing, and Community Services (HHCS) is coordinating with the Planning and Development Department to identify eligible criteria and complete the application. The City’s application will reflect adopted

Authorizing Resolution for Application to and Participation CONSENT CALENDAR in the Prohousing Designation Program July 11, 2023

policies and programs as well as those identified in the Housing Element to be implemented in the next two years, which can be included in the application as “proposed policies.” Authorization from the City Council is required to submit the application.

Obtaining the Prohousing Designation would advance the City’s strategic plan goal to create affordable housing and housing support service for our most vulnerable community members.

BACKGROUND
Increasing the availability of housing statewide is critical to bettering the quality of life of all Californians and to ending homelessness. The 2019-2020 Budget Act provided a spectrum of support, incentives, and accountability measures to meet California’s housing goals, and provided for the establishment of the Prohousing Designation Program.

Local governments with the Prohousing Designation can receive priority processing or funding points when applying for several funding programs including:
 Affordable Housing & Sustainable Communities (AHSC)
 Infill Infrastructure Grant (IIG)
 Transformative Climate Communities (TCC)
 Solutions for Congested Corridors
 Local Partnership Program
 Transit and Intercity Rail Capital Program (TIRCP)
Other programs may be added to the list after HCD engages with stakeholders and partner agencies to consider adding Prohousing points to other housing and non- housing programs.

There is also the potential to qualify for special funding. Local governments with the Prohousing Designation were eligible to apply for the new Prohousing Incentive Pilot Program grant funding, a $26 million state investment from the Building Homes and Jobs Trust Fund established earlier this year. Future grant funds may be available to jurisdictions with Prohousing Designation.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no environmental sustainability and climate impacts associated with this recommendation.

RATIONALE FOR RECOMMENDATION
Obtaining the Prohousing Designation will make Berkeley affordable housing projects more competitive in accessing state funding, as well as potentially giving the City

Authorizing Resolution for Application to and Participation CONSENT CALENDAR in the Prohousing Designation Program July 11, 2023

access to grants only available to Prohousing jurisdictions. The Prohousing Designation will help the City better leverage its funding with State funds for producing affordable housing and meeting its Regional Housing Needs Assessment (RHNA) goals.

ALTERNATIVE ACTIONS CONSIDERED
Staff did not consider alternative actions. Participating in this program will help Berkeley be more competitive for funds for affordable housing.

CONTACT PERSON
Anna Cash, Community Development Project Coordinator, HHCS, (510) 981-5403 Attachments:
1: Resolution

RESOLUTION NO. ##,###-N.S.

A RESOLUTION OF BERKELEY CITY COUNCIL AUTHORIZING APPLICATION TO

AND PARTICIPATION IN THE PROHOUSING DESIGNATION PROGRAM WHEREAS, Government Code section 65589.9 established the Prohousing Designation Program (“PDP” or “Program”), which creates incentives for jurisdictions that are compliant with state housing element requirements and that have enacted Prohousing local policies; and
WHEREAS, such jurisdictions will be designated Prohousing, and, as such, will receive additional points or other preference during the scoring of their competitive applications for specified housing and infrastructure funding; and
WHEREAS, the Department of Housing and Community Development (“Department ”) has adopted emergency regulations (Cal. Code Regs., tit. 25, § 6600 et seq.) to implement the Program (“Program Regulations ”), as authorized by Government Code section 65589.9, subdivision (d); and
WHEREAS, the City of Berkeley (“Applicant”) desires to submit an application for a Prohousing Designation (“Application”).

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that:

1. Applicant is hereby authorized and directed to submit an Application to the Department.

2. Applicant acknowledges and confirms that it is currently in compliance with applicable state housing law.

3. Applicant acknowledges and confirms that it will continue to comply with applicable housing laws and to refrain from enacting laws, developing policies, or taking other local governmental actions that may or do inhibit or constrain housing production.

Examples of such local laws, policies, and action include moratoriums on development; local voter approval requirements related to housing production; downzoning; and unduly restrictive or onerous zoning regulations, development standards, or permit procedures.

4. Applicant further acknowledges and confirms that it commits itself to affirmatively furthering fair housing pursuant to Government Code section 8899.50.

5. If the Application is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver all documents required or deemed necessary or appropriate to participate in the Program, and all amendments thereto (the “Program Documents”).

6. Applicant acknowledges and agrees that it shall be subject to the Application; the terms and conditions specified in the Program Documents; the Program Regulations; and any and all other applicable law.

7. The City Manager or designee is authorized to execute and deliver the Application and the Program Documents on behalf of the Applicant for participation in the Program.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Aram Kouyoumdjian, Director of Human Resources Subject: Contract No. 32000226 Amendment: MidAmerica Administrative & Retirement Solutions, Third Party Administrator for SRIP I Disability, and Health Reimbursement Accounts for Retiree Health Premium Assistance Plan Reimbursements, and Police Employees Retiree Income Plan

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute a contract amendment to Contract No. 32000226 with MidAmerica Administrative & Retirement Solutions for administration of the SRIP I Disability, Retiree Health Premium Assistance Plan (RHPAP) Health Reimbursement Account (HRA), and Police Employees Retiree Income Plans (PERIP) for the period covering January 1, 2021 through December 31, 2025, for a total cost not to exceed $233,736.00.

FISCAL IMPACTS OF RECOMMENDATION
The total estimated cost for this contract is $233,736.00.

MidAmerica will administer the Plans at the following rates:

Plan Administration
401a Administration $10.00 PEPM
Partial funding is available for this contract in allocations from the following budget codes:

Budget Code Retiree Medical Programs Costs
731-99-900-900-0000-
000-412-612990- Berkeley Police Association $22,200.00
736-99-900-900-0000-
000-412-612990- Berkeley Fire Fighters Association $4,800.00 722-99-900-900-0000-
000-412-612990- International Brotherhood of Electrical Workers $1,680.00 723-99-900-900-0000-
000-412-612990- Public Employees Union, Local One $4,560.00 724-99-900-900-0000-
000-412-612990- Unrepresented Unit Z1-Department Head $3,120.00

Contract No. 32000226 Amd: Third-Party Admin. for SRIP I Disab. & Retiree Health Plans CONSENT CALENDAR July 11, 2023

Budget Code Retiree Medical Programs Costs
725-99-900-900-0000-
000-412-612990- Unrepresented Unit Z2 $4,080.00
726-99-900-900-0000-
000-412-612990-
Service Employees International Union, Local 1021
Community Services Unit/Part-Time Recreation
Leaders Association
$4,200.00
727-99-900-900-0000-
000-412-612990-
Service Employees International Union, Local 1021
Maintenance and Clerical Chapter $8,040.00
Total $52,680.00

CURRENT SITUATION AND ITS EFFECTS
The City has contractual obligations under various Memoranda of Understanding/ Agreements with non-sworn employees and sworn Fire and Police Associations that specify the amount the City contributes towards post-employment retiree medical benefits.

BACKGROUND
Third Party Administrator, Mid-America, has been administering the City’s Supplemental Retirement Income Plan – SRIP I Disability – since January 1, 2015.

In 2017, the City amended the contract with MidAmerica to include reimbursement of Retiree Health Premium Assistance Plan (RHPAP) benefits to Unrepresented and Local 1227 employees.

In 2021, the City broadened the definition of “Eligible Employee” from BFFA and Unrepresented to allow the City to provide RHPAP benefit payments to any classification of Retiree. This streamlined the RHPAP reimbursement process and allowed the City to utilize the MidAmerica Health Reimbursement Account for RHPAP benefit payments to all current and future retirees.

ENVIRONMENTAL SUSTAINABILITY
There are no identifiable environmental effects or opportunities associated with the subject of this report.

RATIONALE FOR RECOMMENDATION
The Retiree Health Premium Assistance Plan and sworn retiree benefits are employee benefits required under various collective bargaining agreements with the City.

Contracting with the Third-Party Administrator, MidAmerica, is the most efficient and cost- effective way to administer these benefits.

ALTERNATIVE ACTIONS CONSIDERED
The City sent out a request for proposals through its benefits broker, Keenan and Associates, and no companies are familiar enough with the unique benefits of the City RHPAP to handle it better than the current administrator. Accordingly, the best option would be to amend the contract with MidAmerica.

Contract No. 32000226 Amd: Third-Party Admin. for SRIP I Disab. & Retiree Health Plans CONSENT CALENDAR July 11, 2023

CONTACT PERSON
Aram Kouyoumdjian, Director of Human Resources, (510) 981-6807.

Attachments:

1. Resolution

RESOLUTION NO. XX,XXX-N.S.

CONTRACT NO. 32000226 AMENDMENT: MIDAMERICA FOR ADMINISTRATION OF

THE RETIREE HEALTH PREMIUM ASSISTANCE PLAN AND OTHER RETIREE

MEDICAL PROGRAMS
WHEREAS, the City of Berkeley has contractual obligations under various agreements with its employee groups to provide post-employment retiree medical services; and WHEREAS, contracting with a third-party administrator is the most efficient and cost- effective way to administer these benefits; and
WHEREAS, MidAmerica Administrative & Retirement Solutions has been administering a number of these benefits for the past several years; and WHEREAS, the City of Berkeley would like MidAmerica to provide administrative services for SRIP I Disability, RHPAP Health Reimbursement Account (HRA), and Police Employees Retiree Income Plans (PERIP); and
WHEREAS, funds are available and will be budgeted in future years in an amount not to exceed $233,736.00 through December 31, 2025.

NOW THEREFORE, BE IT RESOLVED that the Council authorizes the City Manager to execute an amendment to Contract No. 32000226 with MidAmerica for administration of SRIP I Disability, RHPAP Health Reimbursement Account (HRA), and Police Employees Retiree Income Plans (PERIP) for sworn Fire and Police not to exceed $233,736.00, for the period covering January 1, 2021 through December 31, 2025.

BE IT FURTHER RESOLVED that a record signature copy of said contract and any amendments be on file in the Office of the City Clerk.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Aram Kouyoumdjian, Director of Human Resources Subject: Contract No. 32300158 Amendment: AppleOne Employment Services for Temporary Staffing Services

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32300158 with AppleOne Employment Services for temporary staffing services, to cover the period February 1, 2023 to June 30, 2025, for a total cost not to exceed $750,000.

FISCAL IMPACTS OF RECOMMENDATION
Funding for the contract will be provided by user departments from various budget codes.

CURRENT SITUATION AND ITS EFFECTS
Although the City has consistently hired over attrition in recent months, departments continue to contend with high vacancy rates and ongoing recruitment and retention challenges. As such, it is critical that departments have access to temporary hires in order to ensure continuity of vital operations in the event of sudden vacancies or unexpected spikes in work volume.

Multiple departments, including Human Resources, along with the City Manager’s Office and the Office of the Director of Police Accountability, have drawn upon the original contract that had a limit of $250,000. An extension of the contract and an increase in its cap are necessary to keep these services viable for the next two fiscal years.

BACKGROUND
Departments are in the midst of a number of large projects, which can be disrupted by vacancies created not just by separations from City employment but also internal promotions. In these instances, immediate temporary staffing – funded by salary savings – is necessary to sustain vital City services.

Contract Amendment: AppleOne Employment Services CONSENT CALENDAR July 11, 2023

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental effects or opportunities associated with the subject of this report.

RATIONALE FOR RECOMMENDATION
Maintaining necessary staffing levels is key to providing high-caliber services that Berkeley residents expect and deserve. When vacancies occur suddenly or in hard-to- fill positions, or when there are unexpected spikes in workload, temporary staffing can serve as an interim gap. This contract extension allows the City to have continued access to temporary staff on short notice – a service that AppleOne has provided in a responsive and time-sensitive manner throughout the initial term of the contract.

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Aram Kouyoumdjian, Director of Human Resources, (510) 981-6807.

Attachments:
1: Resolution

RESOLUTION NO. ##,###-N.S.

CONTRACT NO. 32300158 AMENDMENT: APPLEONE EMPLOYMENT SERVICES

FOR TEMPORARY STAFFING SERVICES
WHEREAS, the Human Resources Department conducts recruitments and maintains employment lists of qualified individuals for career and temporary positions; and WHEREAS, City departments may require additional administrative, clerical, technical, or professional temporary staff to augment their existing resources to deliver vital services; and
WHEREAS, if there are no available candidates from existing employment lists, City departments may use a temporary staffing agency to obtain limited-term temporary staff; and
WHEREAS, expenditures for these services will be paid from a variety of funding sources in budgets of individual operating departments when temporary staffing services are required.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to execute an amendment to Contract No. 32300158 with AppleOne, Inc. dba AppleOne Employment Services for an amount not to exceed $750,000 for the period covering February 1, 2023 through June 30, 2025.

BE IT FURTHER RESOLVED that a record signature copy of said contract and any amendments be on file in the Office of the City Clerk.

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

CONSENT CALENDAR
July 11, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Aram Kouyoumdjian, Director of Human Resources Subject: Revisions to the Unrepresented Employee Manual

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute changes to the Unrepresented Employee Manual that (1) effectuates merit raises for employees on salary ranges on their anniversary date in their current classification; (2) aligns vacation accrual, longevity pay rates, vacation sell-back policies, and a certification differential for the Fire Chief, the Police Chief, and their deputies with the corresponding provisions of the Memoranda of Understanding with the Berkeley Fire Fighters Association and the Berkeley Police Association; and (3) includes Accounting Office Specialists III among the classifications that qualify for the City Manager Department Differential.

FISCAL IMPACTS OF RECOMMENDATION
The fiscal impacts of these revisions will be borne by the affected departments.

CURRENT SITUATION AND ITS EFFECTS
Current policy provides a mechanism for employees on salary ranges to receive merit raises but indicates no effective date.

Current vacation accrual and vacation sell-back policies for the Fire Chief, the Police Chief, and their deputies, as well as longevity pay provisions for the Police Chief and Emergency Medical Technician certification differentials for the Fire Chief and Deputy Fire Chief, do not reflect the benefits afforded to members of the Berkeley Fire Fighters Association and the Berkeley Police Association, meaning that members of those employee groups who promote to the chief or deputy positions actually suffer losses in benefits that can lead to a reduction in total compensation.

Current classifications that qualify for the City Manager Department Differential do not include Accounting Office Specialists III.

Revisions to Unrepresented Employee Manual CONSENT CALENDAR July 11, 2023

BACKGROUND
The Unrepresented Employee Manual periodically undergoes revision so that its provisions are brought up-to-date and aligned with City practices. (The Manual was most recently revised in July 2020.) The newly proposed changes were triggered by inconsistent timing of merit raises, as well as unintended reduction of benefits for the Fire Chief, the Police Chief, and their deputies due to lack of alignment between Manual provisions and the terms of the City’s Memoranda of Understanding with the Berkeley Fire Fighters Association and the Berkeley Police Association.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental effects or opportunities associated with the subject of this report.

RATIONALE FOR RECOMMENDATION
Revisions are necessary to the Unrepresented Employee Manual to eliminate inconsistencies in effectuation dates of merit raises for employees on salary ranges and to ensure alignment of vacation and longevity benefits, as well as a certification differential, for the Fire Chief, the Police Chief, and their deputies with those of sworn officers and firefighters, respectively.

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Aram Kouyoumdjian, Director of Human Resources, (510) 981-6807.

Attachments:
1: Resolution
Exhibit A: Unrepresented Employee Manual (Revised – July 2023) 2: Unrepresented Employee Manual – Proposed Revisions (Tracked Changes)

RESOLUTION NO. ##,###-N.S.

REVISIONS TO UNREPRESENTED EMPLOYEE MANUAL
WHEREAS, the Human Resources Department periodically revises the Unrepresented Employee Manual, most recently in July 2020;
WHEREAS, changes to the Manual are warranted in order to clarify City procedures, and to ensure consistency and internal alignment;
WHEREAS, current policy provides a mechanism for employees on salary ranges to receive merit raises but indicates no effective date;
WHEREAS, current vacation accrual and vacation sell-back policies for the Fire Chief, the Police Chief, and their deputies, as well as longevity pay provisions for the Police Chief (and Deputy Police Chief) and Emergency Medical Technician certification differentials for the Fire Chief (and Deputy Fire Chief), do not reflect the benefits afforded to members of the Berkeley Fire Fighters Association and the Berkeley Police Association, meaning that members of those employee groups who promote to the chief or deputy positions actually suffer losses in benefits that can lead to a reduction in total compensation; and
WHEREAS, current classifications that qualify for the City Manager Department Differential do not include Accounting Office Specialists III; NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to execute changes to the Unrepresented Employee Manual (set forth in Exhibit A) that (1) effectuates merit raises for employees on salary ranges on their anniversary date in their current classification; (2) aligns vacation accrual, longevity pay rates, vacation sell-back policies, and a certification differential for the Fire Chief, the Police Chief, and their deputies with the corresponding provisions of the Memorandum of Understanding with the Berkeley Fire Fighters Association and the Berkeley Police Association; and (3) includes Accounting Office Specialists III among the classifications that qualify for the City Manager Department Differential.

Exhibit A: Unrepresented Employee Manual (Revised – July 2023)

Internal

City of Berkeley

Unrepresented Employee Manual

July 11, 2023

Internal

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City of Berkeley Unrepresented Employee Manual
July 2021
i
Internal

Table of Contents
Table of Contents ................................................................................................. i UNREPRESENTED EMPLOYEE MANUAL ......................................................... 1 ARTICLE 1 - SALARY, OTHER PAY AND OVERTIME ....................................... 2

1.1 Intent .................................................................................................. 2

1.2 Hours and Days of Work ..................................................................... 2

1.3 Workweek ........................................................................................... 2

1.4 Regular Workweek ............................................................................. 2

1.5 Payment of Salaries ........................................................................... 2

1.6 Salary Ranges without Salary Steps ................................................... 2

1.7 Automobile Allowances ...................................................................... 2

1.8 Mandatory Professional Fees and Licenses ....................................... 3

1.9 Bilingual Pay ....................................................................................... 3

1.10 Overtime for FLSA Non-Exempt Employees ...................................... 3

1.11 Emergency Overtime .......................................................................... 4

1.12 Shift Differential .................................................................................. 4

1.13 Fifty-Six (56) Hour per Week Work Schedule Leave Conversion Factor . .......................................................................................................... 4

1.14 One-Time Allocation ........................................................................... 5

1.15 Payroll Specialty Pay .......................................................................... 5

1.15.1 Salary Resolution ............................................................................... 5 ARTICLE 2 - PROBATIONARY PERIOD ............................................................. 6

2.1 Length of Probationary Period ............................................................ 6

2.2 Objectives of Probationary Period ...................................................... 6

2.3 Rejection of Probationers ................................................................... 6

2.4 Rejection during Probationary Promotion ............................................ 6 ARTICLE 3 - VACATION ...................................................................................... 7

3.1 Vacation Leave................................................................................... 7

3.2 Vacation Approval .............................................................................. 7

3.3 Vacation Accrual ................................................................................ 7

3.4 Vacation Scheduling ........................................................................... 8

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3.5 Maximum Vacation Accumulation ....................................................... 8

3.6 Vacation Leave before Retirement ..................................................... 9

3.7 Vacation Leave in Lieu of Sick Leave ................................................. 9

3.8 Payout upon Termination or Extended Unpaid Leave......................... 9

3.9 Holidays Occurring during Vacation ................................................... 9 ARTICLE 4 - SICK LEAVE ................................................................................. 10

4.1 Eligibility ........................................................................................... 10

4.2 Sick Leave Not a Privilege ................................................................ 10

4.3 Family Sick Leave ............................................................................ 10

4.4 Notice to Department Head .............................................................. 10

4.5 Medical Verification .......................................................................... 10

4.6 Injury Incurred in Outside Employment ............................................. 11

4.7 Bonus for Unused Sick Leave .......................................................... 11

4.8 Accumulation of Sick Leave .............................................................. 11

4.9 Payout for Excessive Sick Leave for Employees Hired on or Before June 30, 2013 .................................................................................. 11

4.10 Effect of Leave without Pay on Sick Leave Accrual .......................... 12

4.11 Accrued Sick Leave Canceled Upon Termination ............................. 12

4.12 City of Berkeley Supplemental Retirement Plan [Termination 401(a)] . ........................................................................................................ 14

4.13 Accrued Sick Leave Applied to CalPERS Retirement Credit ............ 14

4.14 Sick Leave Benefits and State Disability Insurance .......................... 14

4.15 Workers’ Compensation and Salary Continuation ................................ 14

4.16 Sick Leave Accrual for Department Heads and Deputy City Managers . ........................................................................................................ 15 ARTICLE 5 - HOLIDAYS .................................................................................... 16

5.1 Holidays............................................................................................ 16

5.2 Floating Holidays .............................................................................. 16

5.3 Eligibility ........................................................................................... 17

5.4 Part-Time Employee Eligibility .......................................................... 17

5.5 No Work on the Holiday .................................................................... 17

5.6 Work on the Holiday ......................................................................... 17 ARTICLE 6 - OTHER PAID LEAVES OF ABSENCE ......................................... 18

6.1 Family Bereavement Leave .............................................................. 18

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6.2 Jury Duty Leave ............................................................................... 18

6.3 Continuing Education Leave ............................................................. 19

6.4 Administrative Leave Program .......................................................... 19

6.5 Temporary Employees – Earned Leave ........................................... 19

6.6 Abolishment of Temporary Employees – Earned Leave ................... 20

6.7 Temporary Employees Sick Leave ................................................... 20

6.8 Sick Leave Accrual ........................................................................... 20

6.9 Sick Leave Use................................................................................. 20 ARTICLE 7 - LEAVES OF ABSENCE WITHOUT PAY ...................................... 21

7.1 Power to Grant Leave ....................................................................... 21

7.2 Authorized Leave Without Pay ......................................................... 21

7.3 Unauthorized Leave of Absence ....................................................... 21

7.4 Parental Leave ................................................................................. 22

7.5 Family Care Leave ........................................................................... 22

7.6 Military Leave ................................................................................... 22 ARTICLE 8 - EMPLOYEE FRINGE BENEFITS .................................................. 23

8.1 Group Medical-Dental Insurance Benefits ........................................ 23

8.2 Life Insurance ................................................................................... 23

8.3 Hourly Rated Employees in Lieu of Benefits ..................................... 23

8.4 Public Employees Retirement System .............................................. 23

8.5 Supplementary Retirement and Income Plans ................................. 30

8.6 Deferred Compensation.................................................................... 31

8.7 PARS ............................................................................................... 31

8.8 Public Safety Uniform Allowance ...................................................... 31

8.9 Supplemental Retirement Plan and Trust Agreement ....................... 31 ARTICLE 9 - EMPLOYMENT AT-WILL .............................................................. 32

9.1 Employment At-Will .......................................................................... 32

9.2 No Right to Appeal Discharge .......................................................... 32

9.3 Benefits ............................................................................................ 32

9.4 Standards of Conduct ....................................................................... 32

9.5 Transfer or Appointment of Career Employee to an At-Will Position 32 ARTICLE 10 - LAYOFF POLICY AND PROCEDURE ........................................ 34

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10.1 Statement of Intent ........................................................................... 34

10.2 Announcement of Layoff ................................................................... 34

10.3 Vacancy Freeze ............................................................................... 34

10.4 Seniority Service Date ...................................................................... 34

10.5 Establishment of Seniority Lists ........................................................ 34

10.6 Order of Layoff ................................................................................. 35

10.7 Notification ........................................................................................ 35

10.8 Employee Retreat Rights .................................................................. 35

10.9 Flexible Placement Program ............................................................ 36

10.10 Failure to Accept Offer under Layoff ................................................. 36

10.11 Re-Employment List ......................................................................... 37

10.12 Appeal Procedures ........................................................................... 38

10.13 Audit ................................................................................................. 38 ARTICLE 11 - DISCIPLINARY ACTION ............................................................. 39

11.1 Policy ................................................................................................ 39

11.2 Final Decision Maker for Disciplinary Action ..................................... 39

11.3 Disciplinary Actions .......................................................................... 39

11.4 Written Reprimands for Fire Safety Employees ................................ 39

11.5 Written Reprimands for Non- Safety Employees .............................. 40 ARTICLE 12 - COMPLAINTS, APPEALS AND HEARINGS .............................. 41

12.1 Policy ................................................................................................ 41

12.2 Final Decision Maker for Purposes of this Article ............................. 41

12.3 Complaints ....................................................................................... 41

12.4 Right of Appeal ................................................................................. 42

12.5 Method of Appeal ............................................................................. 42

12.6 Investigations and Hearings ............................................................. 42

12.7 Hearing Procedures .......................................................................... 42

12.8 Findings and Recommendations ...................................................... 43 APPENDIX .......................................................................................................... 44

13.1 Administrative Leave ........................................................................ 44

13.2 Automobile Allowance ...................................................................... 44

13.3 Bilingual Premium Pay ..................................................................... 44

13.4 Cash-In-Lieu Payments .................................................................... 45

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13.5 Dependent Care ............................................................................... 45

13.6 Life Insurance ................................................................................... 46

13.7 Medical/Dental Insurance for Employees/Dependents ..................... 46

13.8 Retiree Medical Plan ........................................................................ 47

13.9 Amendment of Retiree Health Premium Assistance Plans I and II, effective June 28, 1998, Restated and Amended effective March 22, 2011 ................................................................................................. 47

13.10 Retiree Medical for Unrepresented Benefitted Employees ............... 47

13.11 Reimbursement Plan ........................................................................ 51

13.12 Fire Chief and Deputy Fire Chief Retiree Medical Plan..................... 56

13.13 Retiree Medical for Police Chief Classification .................................. 57

13.14 Partially Subsidized YMCA Membership .......................................... 57

13.15 Part-Time Employees Eligible for Full Benefits ................................. 57

13.16 Probationary Periods for Unrepresented Classifications ................... 58

13.17 Public Safety Uniform Allowance ...................................................... 58

13.18 Regular “At-Will” Classifications........................................................ 58

13.19 City Manager Department Differential............................................... 59

13.20 Shift Differential ................................................................................ 59

13.21 SRIP II Disability Insurance .............................................................. 59

13.22 Vacation Schedules .......................................................................... 59

13.23 Special Pay for Camps Personnel .................................................... 60

13.24 Hazard Premium Pay for Clerical Mental Health Personnel.............. 60

13.25 Longevity Pay ................................................................................... 60

13.26 Longevity Pay for Confidential and Executive Management Employees . ........................................................................................................ 60

13.27 Automobile Allowance for Police Chief ............................................. 61

13.28 Video Display Terminal Screening/Glasses ...................................... 61

13.29 Emergency Medical Technician ........................................................ 61

13.30 Shoe Allowance ................................................................................ 61

13.31 Training Differential .......................................................................... 61

13.32 Summary of May 2017 Changes to the Unrepresented Employee Manual ............................................................................................. 62

13.33 Summary of October 2017 Changes to the Unrepresented Employee Manual ............................................................................................. 63

13.34 Summary of July 2018 Changes to the Unrepresented Employee Manual ............................................................................................. 63

13.35 Summary of July 2020 Changes to the Unrepresented Employee

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Manual ............................................................................................. 63

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UNREPRESENTED EMPLOYEE MANUAL
This document establishes the rules governing benefits and working conditions, which are in effect for Unrepresented employees which have been approved by the City Council of the City of Berkeley.

This Unrepresented Employment Manual provides the personnel policies and procedures that affect the working conditions and benefits of unrepresented employees in the City of Berkeley. For purpose of categorization, all classifications are designated by a representation unit. Unrepresented employees are in classifications included in representation units Z-1; Z-2; Z-3; Z-9; X; and X-1, as noted in the City’s Classification/Salary Resolution. The working conditions and benefits for represented employees are contained in their respective memoranda agreements. Rules, which describe general policies of the City’s personnel system, are found in the City of Berkeley Personnel Rules and Regulations.

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ARTICLE 1 - SALARY, OTHER PAY AND OVERTIME

1.1 Intent
This Section (Salary, Other Pay and Overtime) is intended only to define the normal hours of work and the time for which salary shall be paid, and to provide the basis for the calculation of overtime pay. Nothing in these rules shall be construed as a guarantee of hours of work per day or per week, or of days of work per week. The City's pay records, practices and procedures shall govern the payment of all wages.

1.2 Hours and Days of Work
Hours and days of work shall be governed by rules established by the City.

1.3 Workweek
The workweek shall consist of seven days beginning at 12:01 a.m. on Sunday to and including 12:00 midnight the following Saturday.

1.4 Regular Workweek
The regular workweek shall consist of forty hours of work within the workweek.

1.5 Payment of Salaries
Payment of salaries shall be bi-weekly and shall cover a pay period of two (2) consecutive workweeks. Each payment shall be made not later than Friday following the ending of each payroll period and shall include payment for all earnings reported during the previous payroll period.

1.6 Salary Ranges without Salary Steps
In those classes of positions for which a salary range is established without a designation of salary steps, the City Manager is authorized to fix the salary rate at any point within the established salary range. Subsequent increases, if approved by the City Manager, shall be effectuated at the start of the pay period closest to the employee’s anniversary date (defined as the date of hire into the employee’s current classification).

1.7 Automobile Allowances
In addition to the salaries provided in the salary resolution, employees may be reimbursed for the use of automobiles owned by employees of the City of Berkeley and used on City business, as authorized by the City. Current automobile allowances are appended to this Manual, as shown in the Appendix, Section 13.27 (Automobile Allowance).

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1.8 Mandatory Professional Fees and Licenses
The City will assume full payment of the mandatory professional fees and licenses required by employees in the following unrepresented classes in order to maintain their continued employment with the City of Berkeley:

Director of Public Works City Attorney
Deputy Director of Public Works (Registered) The Attorney Class Series Rent Stabilization Board Staff Attorney Class Series Audit Manager Classes requiring a license to practice medicine

1.9 Bilingual Pay
Employees appointed to positions requiring bilingual abilities, including Braille and sign language shall receive additional compensation as established by the City Council. Only those employees who possess second language competency, can demonstrate second language competency, and are serving in a position requiring competency in that particular language are entitled to receive the bilingual premium pay. The current level of approved compensation and procedures for qualifying and receiving bilingual pay are appended to these Rules, as shown in Appendix, Section 13.3 (Bilingual Premium Pay).

1.10 Overtime for FLSA Non-Exempt Employees
All employees who are covered by the overtime provisions of the Fair Labor Standards Act are designated as "FLSA non-exempt employees." Unless otherwise required by the Fair Labor Standards Act, all FLSA non-exempt employees, and employees in the classification of Battalion Chief, who are required to work in excess of their regular workweek shall be paid overtime compensation at the rate of one and one-half times the straight time rate based upon the regular monthly salaries or shall be given compensatory time off in lieu of payment at the rate of one and one-half hours off with pay for each overtime hour worked. The following provisions regarding overtime apply only to FLSA non- exempt employees and do not apply to FLSA exempt employees. FLSA non- exempt employees, temporarily promoted to FLSA exempt classifications, will be ineligible for overtime compensation for the duration of the appointment.

1.10.1 Manner of Compensation: An employee may be compensated for overtime by either compensatory time off or by payment; the method of overtime compensation shall be agreed upon by the employee and the supervisor at the time of obtaining approval to work overtime.

1.10.2 Pre-Authorization: No employee may work overtime without the express prior approval of his or her department head.

1.10.3 Accrual Limit on Compensatory Time: Compensatory time shall not accumulate in excess of sixty (60) overtime hours worked which is the equivalent of ninety (90) hours of compensatory time. Overtime accumulation in excess of sixty (60) hours shall be paid as compensation.

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1.10.4 Use of Compensatory Time: All use of compensatory time off must be approved, in advance, by the employee's department head, on forms provided by the City.

1.10.5 Effect of Termination on Compensatory Time: An employee is entitled to compensation for any accumulated overtime upon resignation or termination.

1.11 Emergency Overtime
All FLSA non-exempt employees who are called to duty from their living quarters outside of their regular work hours and work days shall be paid emergency overtime compensation for the actual time worked provided, however, that each employee shall be paid a minimum of two (2) hours pay for emergency overtime unless such emergency overtime work is performed prior to the beginning of his or her work regularly scheduled work period without a break in service in which case, compensation shall be paid only for the actual time worked.

1.12 Shift Differential
All unrepresented FLSA non-exempt employees (except for Police Aides) who regularly work a shift of eight hours or more, which includes more than four hours between the hours of 5:00 p.m. and 12:00 a.m., or between 12:00 a.m. and 7:00 a.m., are paid a shift differential in addition to their regular base rate of pay in an amount established by the City Council. The current shift differential rate paid to unrepresented employees is in the Appendix to this Manual.

1.13 Fifty-Six (56) Hour per Week Work Schedule Leave Conversion Factor The conversion factor for Fire Management employees accruing and using vacation leave, sick leave or sick leave bonus bank of hours is as shown below.

The intent of the parties is to have the dollar value of the vacation leave, sick leave or sick leave bonus bank of hours accrued be the same whether an employee is assigned to a fifty-six (56) hour per week schedule or a forty (40) hour per week schedule.

1.13.1 Leave Accrual for 56 Hour per Week Schedule: Vacation leave, sick leave or sick leave bonus bank of hours accrued on a fifty-six (56) hour per week scheduled is converted to a forty (40) hour per week schedule by multiplying number of hours of vacation leave or sick leave accrued by the conversion factor of 0.7143.

1.13.2 Leave Accrual for 40 Hour per Week Schedule: Vacation leave, sick leave or sick leave bonus bank of hours accrued on a forty (40) hour per week scheduled is converted to a fifty-six (56) hour per week schedule by multiplying number of hours of vacation leave accrued by the conversion factor of 1.4.

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1.14 One-Time Allocation
Employees in Units Z-1, Z-2, Z-3, Z-6, and Z-9 who are in paid status as of July 29, 2018 will receive a one-time allocation of $2,000.00 (prorated for part-time employees) on August 17, 2018, minus applicable local, state and/or federal taxes.

1.15 Payroll Specialty Pay
City shall provide (“payroll clerks”) identified by the City in Unrepresented Employees a one-time lump sum payment of $500.00 effective the first full pay period after Council adoption of this successor agreement and a second $500.00 one-time lump sum payment the first full pay period in January 2022 for only those employees in the Accounting Office Specialist III classification. Such payments are subject to applicable payroll taxes and will not be considered pensionable salary. At the time of each payment, employee must be still employed by the City and must still be in the Accounting Office Specialist III classification. Employees working less than full-time (40 hours per week, 2,080 hours per year) shall receive a pro rata share of the one-time lump sum payment based on the number of hours they are assigned to work. For example, an employee working 30 hours per week, shall receive 75% of the one-time lump sum payment ($375 effective the first full pay period after Union ratification and Council adoption of this successor agreement and $375.00 the first full pay period in January 2022).

1.15.1 Salary Resolution
Effective the first full pay period in July 2021 after Council adoption on its regular agenda, the salary ranges for those classifications covered by this Manual shall receive a salary increase of four percent (4.0%).

Effective the first full pay period in July 2022, the salary ranges for those classifications covered by this Manual as listed in Exhibit A shall be increased by three percent (3.0%)

Effective the first full pay period in July 2023, the salary ranges for those classifications covered by this Manual as listed in Exhibit A shall be increased by one percent (1%).

Effective the first full pay period after City Council adoption on its regular agenda, a onetime non-pensionable lump sum payment of $1,000.00 for each career bargaining unit employee shall be conferred. Eligible employees must be current City employees in paid status for the full pay period this lump sum is conferred and shall not apply to unit members who are in unpaid status. Such payment shall be subject to required payroll tax deductions. The parties agree that this lump sum provision does not create or bind the City to any precedent or past practice.

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ARTICLE 2 - PROBATIONARY PERIOD

2.1 Length of Probationary Period
All original and promotional appointments to positions in the career service shall be tentative and subject to a probationary period. The length of the probationary period shall be determined for each class by the City Council. However, the length of the probationary period shall not be less than six months of actual service (1040 hours) or more than two years of actual service (4160 hours). A six (6) month probationary period must be completed in no more than one (1) year. A one (1) year probationary period (2080 hours) must be completed in no more than two (2) years. A two (2) year probationary period must be completed in no more than three (3) years. A current schedule of probationary periods for unrepresented classes is appended to this Manual, as shown in Appendix, Section 13.16 (Probationary Periods for Unrepresented Classifications).

2.2 Objectives of Probationary Period
The probationary period shall be regarded as a part of the selection process and shall be used to closely observe and evaluate the employee's work, to secure the most effective adjustment of a new employee to his or her position, and to eliminate any probationary employee whose performance does not meet the required standards of work.

2.3 Rejection of Probationers
During the probationary period, an employee may be rejected from employment at any time by the City Manager without cause and without the right of appeal.

2.4 Rejection during Probationary Promotion
An employee rejected during the probationary period following a promotional appointment shall be reinstated to the classification from which he or she was promoted unless charges are filed and he or she is discharged in the manner provided in the Personnel Ordinance and these rules.

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ARTICLE 3 - VACATION

3.1 Vacation Leave
All benefitted employees shall be entitled to annual vacation leave subject to the provisions in this chapter.

3.2 Vacation Approval
All vacations must be approved, in advance, by the employee's department head, on forms provided by the City.

3.3 Vacation Accrual

3.3.1 Full Time Benefitted Employees: During the first two (2) calendar years of employment, all full time benefitted employees shall be entitled to take only such annual vacation leave as the employees earn based on their continuous length of service measured from the date of hire.

After two (2) years of service, employees may request, and upon approval, take up to a maximum of two (2) weeks of their annual vacation, in advance of actual earning. Approval of requests for advance vacation shall be solely at the discretion of management.

Vacation accrues according to schedules established by the City Council and can vary for different groups of employees. The current vacation schedules for full time unrepresented employees are in the Appendix to this Manual.

3.3.2 Part Time and Temporary Employees : Benefitted part-time employees working a minimum of twenty (20) hours per week accrue vacation benefits on a pro rata basis. Employees who work less than twenty (20) hours per week and temporary employees, unless otherwise authorized, do not accrue leave benefits

3.3.3 Accrual of Vacation Credits: Vacation leave credits are only accrued for each straight time hour for which the employee is paid.

3.3.4 Effect of Extended Leave on Vacation Accrual : An employee who has returned from extended military leave or an extended authorized leave of absence without pay of six (6) months or more or who has been re-employed or reinstated shall be entitled, during the calendar year in which the employee returns to the City service, to earn vacation according to a schedule based upon the total years in the career service with the City and upon the total number of months of actual service with the City during the said calendar year. For succeeding calendar years, the employee's vacation leave shall accrue as provided in this Manual.

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3.3.5 New Hire Vacation Accrual : For new hires, the City Manager may authorize vacation accrual at a higher rate, up to the maximum accrual rate, depending upon the paid leave accrual of the potential employee at his or her present employer. The new hire must be able to document his or her current paid leave accrual, which has been earned for general use, such as vacation. The waiting period to advance to the next accrual rate would be the actual number of years between the respective accrual levels.

3.3.6 Vacation Accrual for Unit Z1 Police Chief and Deputy Police Chief :

The vacation accrual rate for the Police Chief and Deputy Police Chief classifications will provide the same benefits as the vacation accrual for represented sworn police employees under the Berkeley Police Association (Units E & F) Memorandum of Understanding.

3.3.7 Vacation Accrual for Unit Z1 Fire Chief and Deputy Fire Chief : The vacation accrual rate for the Fire Chief and Deputy Police Chief classifications will provide the same benefits as the vacation accrual for represented sworn fire employees under the Berkeley Fire Fighters Association (Units B) Memorandum of Understanding.

3.3.8 The classifications identified within Sections 3.3.6 and 3.3.7 shall be allowed to participate in the annual vacation leave sell back to the extent such rights are afforded to the bargaining units they supervise in their respective memoranda of understanding.

3.4 Vacation Scheduling
The times during the calendar year at which an employee shall take his or her vacation shall be determined by the department head with due regard for the wishes of the employee and particular regard for the needs of the service. If the requirements of the service are such that a department head cannot permit the employee to take an annual vacation leave or any part of such leave within a particular calendar year, the employee may accrue vacation according to Section

3.3 (Vacation Accrual) of this Manual.

3.5 Maximum Vacation Accumulation
Employees may defer vacation earned up to a maximum cumulative total of eight (8) weeks. An employee who has attained maximum accumulation may be required to take all excess earned vacation at the option of the City. Not later than October 1 of each year, the City will advise employees who have attained a maximum accumulation of vacation whether such excess earned vacation must be scheduled as time off prior to March 31. Such time off shall be scheduled in accordance with the provisions of Section 3.2 (Vacation Approval).

The City shall require all employees to reduce their accrued vacation balances to no more than 320 hours, as of the last pay period in February of each year. To effectuate the requirement that employees not accrue more than 320 hours vacation leave, no later than November 15 of each year the City will provide Department Heads with a report identifying all employees who have accrued two hundred and eighty (280) hours of vacation leave and appear in danger of exceeding the 320 hour limit.

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Employees who have accrued 280 hours of vacation leave, as of that date, will be advised by their supervisor that they must take vacation leave to reduce their vacation leave accrual by February of the following year.

Supervisors should be flexible in granting employee vacation requests to those employees above, or approaching the 320 hours limit, and further, that with regard to employees who are in danger of exceeding the 320 hour limit, no vacation request by such an employee shall be unreasonably denied. If an employee who is in danger of exceeding the 320 hour limit fails by December 31 to schedule a vacation to be taken before the last pay period in February, the City has the

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authority to direct the employee to go on vacation leave to reduce the employee’s accrued vacation.

If, due to operational necessity, a department head denies an employee vacation leave and does not provide the employee with an alternate vacation date, and as a result causes the employee to exceeds the 320 vacation leave limit, said employee shall nonetheless be entitled to use that vacation leave in the next calendar year to the extent necessary to reduce their accrued vacation to not more than 320 hours. Under no circumstances will the City liquidate any vacation leave balances for any employee during employment.

3.6 Vacation Leave before Retirement
Accumulated vacation shall not be used immediately prior to retirement, which has the effect of extending the date of retirement, but shall be paid out in full upon retirement.

3.7 Vacation Leave in Lieu of Sick Leave
Except for absences that qualify for benefits under Administrative Regulation 2.4 (Family Care Leave) Vacation leave shall not be used in lieu of accrued sick leave for absences due to illness. If accrued sick leave is exhausted, vacation leave may be used for absences due to illness, only if such leave is approved by the employee's department head.

3.8 Payout upon Termination or Extended Unpaid Leave
Upon termination, including death, extended military leave or other extended leave without pay, an employee or his or her estate shall be paid for all accrued unused vacation leave at the employee's base rate at the time of his or her termination, and such employee or his or her estate shall reimburse the City for any vacation leave taken before it had accrued, in accordance with provisions established by the City Manager.

3.9 Holidays Occurring during Vacation
If an observed City holiday occurs during an employee's scheduled vacation, no deduction from accrued vacation will be made for the holiday period.

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ARTICLE 4 - SICK LEAVE

4.1 Eligibility
All full-time benefitted employees are eligible for one (1) sick leave day (eight [8] hours) per month of service, except that the Police Chief hired before September 11, 2012 is eligible for two (2) sick leave days for each month of service during the twenty-first (21) year of employment and thereafter. Employees in the classifications of Fire Chief and Deputy Fire Chief shall be credited with two (2) sick leave days for each month of service during the seventeenth (17 th) year of employment and thereafter. Part time benefitted employees are eligible to accrue sick leave on a pro rata basis.

4.2 Sick Leave Not a Privilege
Sick leave shall not be considered a privilege, which an employee may use at his or her discretion, but shall be allowed only in the case of his or her sickness or disability or in the case of illness within the defined family of the employee.

4.3 Family Sick Leave
As of January 1, 1999, employees may use up to fifteen (15) working days of accrued sick leave in a calendar year to care for a family member, limited to one of the following: a legal dependent, parent, spouse, son, daughter or domestic partner.

4.4 Notice to Department Head
In order to qualify for sick leave benefits, the employee shall notify his or her department head or designee prior to or within two (2) hours after the time set for the beginning of the employee's daily duties, or as otherwise required by the department head. Leave for non-emergency medical appointments shall be requested in advance of the workday.

4.5 Medical Verification
The City of Berkeley retains the right to request a verification from a licensed medical practitioner under appropriate circumstances which include (1) showing that an employee's illness or disability has started or ended, before the City will allow an employee to take a leave or to return from leave, (2) showing regular updates during a medical leave of absence regarding the employee's medical status and the date the employee expects to return to work, (3) where reasonable cause exists to believe that the employee is not medically fit to perform the essential functions of the job or that the employee cannot perform the job without endangering the health and safety of the employee or others, and (4) where reasonable cause exists to believe that the employee is abusing sick leave or family sick leave. Sick leave pay may be withheld if a satisfactory verification is not received.

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4.6 Injury Incurred in Outside Employment
No sick leave shall be allowed for time off for an injury incurred while working for another employer, provided that the injury is covered by California's workers' compensation law or by provisions of the other employer granting payment for time off because of the injury. In the event the injury is not covered either by the workers' compensation law or by the other employer's provisions, sick leave will be granted in accordance with this chapter only if the outside employment had been authorized by the City before the injury occurred

4.7 Bonus for Unused Sick Leave
For every six (6) months of perfect attendance, the employee will receive eight (8) hours of bonus time. "Perfect attendance" means the employee has not received sick leave or salary continuation benefits and has not taken or been placed on leave without pay. Benefitted part time employees will receive sick leave bonus time on a pro rata basis. Sick leave bonus can be used for any leave purpose authorized by this Manual.

4.8 Accumulation of Sick Leave
Employees may accumulate sick leave up to a maximum of two hundred (200) days (1600 hours) except for the classifications named below.

The Police Chief and Fire Chief may accumulate sick leave in excess of the 1600- hour limit by 100 hours per year.

4.9 Payout for Excessive Sick Leave for Employees Hired on or Before June 30, 2013
All employees, except employees in the classification of Deputy Fire Chief hired on or before June 30, 2013 in the career service who regularly work one-half time or more who have attained the two hundred (200) day maximum sick leave accumulation shall be entitled to receive payment for one-third (1/3) of the first twelve (12) days of sick leave days (or if earning sick leave at the rate of two (2) working days each month of service, one-third (1/3) of the first twenty-four (24) days of sick leave days), for which sick leave days they become eligible, they do not use and they would otherwise forfeit because of the two hundred (200) day maximum limitation. Determination of eligibility for such payment shall be made on an annual calendar year basis, and payment for such sick leave for any calendar year shall be made not later than the first full pay period in January. Such payment shall be at the employee's salary rate in effect on the preceding December 31, and shall be made only in units of whole days and will not be made for any fraction of a day.

4.9.1 Deputy Fire Chief: For employees in the classification of Deputy Fire Chief, the following provisions shall apply. In each year following that 1200 hour base year, the employee may, on a form provided by the City, elect to receive pay for excess sick leave or may elect to increase his or her sick leave accumulated base by the 96 hours and take any additional

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excess sick leave in pay at the following prescribed rate: employees who choose to increase their sick leave accumulated base by the 96 hours will receive 50% pay off rate in March; employees who choose to receive pay out for excess sick leave over the base, and do not exercise the option of increasing their accumulated sick leave base by 96 hours in any particular year, will be paid for excess sick leave at the 38% pay off rate in March.

Forms, provided by the City along with projected excess sick leave balances, shall be distributed to affected employees by February of each year and shall be returned to the City by February 15th. If an employee uses part of an established “sick leave maximum accumulation level”, the employee may replenish the used portion at the applicable rate.

Determination of eligibility for such payment shall be made on an annual basis, and payment for such sick leave for any calendar year shall be made during the month of March each year. Such payment shall be made at the employee’s regular monthly salary rate in effect on the last day of the first pay period to end in March. An employee shall be eligible for this provision whether or not the employee is on the payroll as of the last day of the first pay period to begin and end in March.

4.9.2 Police Chief and Fire Chief Hired on or before June 30, 2013: For the Police Chief and Fire Chief hired on or before June 30, 2013, the maximum sick leave accrual allowed shall be adjusted at the rate of 100 additional hours per year above the 1600-hour limit. The employee may elect to receive pay for the excess sick leave or may elect to increase the base by 100 hours, in each subsequent year. Payment for excess sick leave is prescribed at 1/3 of the excess leave balance.

4.10 Effect of Leave without Pay on Sick Leave Accrual
Sick leave will not accrue during any period of absence without pay. Sick leave credits are accrued on the basis of actual straight time hours worked or paid, based on a forty-hour workweek.

4.11 Accrued Sick Leave Canceled Upon Termination
Except as otherwise provided under the CalPERS conversion of sick leave retirement credit benefit (California Government Code Section 20965) and the other exceptions set forth below, all accrued sick leave shall be canceled upon termination of an employee. Such leave shall be credited back to the employee if the employee returns to City employment within two (2) years of termination except as otherwise provided by the City Council, or within three (3) years of termination if re-employed under the City's Layoff Policy provided in this Manual.

4.11.1 CalPERS Miscellaneous Members, Chief of Police Hired on or before June 30, 2013 Sick Leave Payout : For CalPERS

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Miscellaneous members and Chief of Police hired on or before June 30, 2013 who voluntarily separate from service with a vested pension and at least twenty (20) years of benefitted City of Berkeley service or to employees retiring on permanent disability arising out of and incurred in the course and scope of their employment with the City shall be entitled to liquidate a portion of their accrued but unused sick leave as follows:

Upon termination, employees with between twenty (20) years and twenty-eight (28) years of benefitted City of Berkeley service shall be entitled to receive payment in an amount equal to 38% of their accrued sick leave days up to a maximum of two hundred (200) unused sick leave days.

All employees hired on or after July 1, 2013 shall not be eligible for payment of any unused sick leave days.

Employees hired on or before June 30, 2013 who voluntarily separate from service with a vested pension and at least twenty-eight (28) years of benefitted City of Berkeley service or employees retiring on permanent disability arising out of and incurred in the course and scope of their employment with the City, with at least twenty-eight years of benefitted City of Berkeley service, shall be entitled to receive payment in an amount equal to 50% of their accrued sick leave days up to a maximum of two hundred (200) unused sick leave days. Employees hired on or after July 1, 2013 shall not be eligible for payment of any unused sick leave days.

4.11.2 Fire Chief and Deputy Fire Chief Hired on or before June 30, 2014 Sick Leave Payout: For employees hired on or before June 30, 2014 in the classification of Fire Chief and Deputy Fire Chief who retire or voluntarily terminate with twenty (20) years of service or who retire on permanent disability arising out of and incurred in the course and scope of their employment with the City, shall be entitled to receive payment at retirement or termination of unused sick leave days, based on the following schedule:

Number of Days % of Payment
0-75 Days 38%
75-99 Days 41%
100-124 Days 44%
125-149 Days 47%
150 Days and over 50%

Employees in classifications identified in this Section 4.11.2 (Fire Chief and Deputy Fire Chief Hired on or before June 30, 2014 Sick Leave Payout) hired on or after July 1, 2014 shall not be eligible for payment of any unused sick leave days.