4 President Babitt asked for next steps to solve teachers’ need to move cars every two hours and if there were different policy issues to work on in interim for more parking permits.
PW Director Liam Garland commented that the plan is to take the presentation to the City’s technical experts in parking program, do some further analysis, especially the pros and cons of different policy options in front of the USD and the City and return with analysis and alternatives at next 2x2 meeting.
Councilmember Hahn requested clarification regarding placement of proposed new building and tennis courts.
Director Calise responded that four tennis courts, the new building, and additional parking will be on the main campus.
Councilmember Hahn stated she was looking forward to having data about how many parking permits are desired and what the City will decide to do.
Director Calise stated the intent to have results regarding how many people are driving by next meeting.
Director Vasudeo spoke about the conversation needed for TDM and how are we incentivizing staff to travel more sustainably.
5.3. - Update on Berkeley Youth Equity Partnership
Director of Health, Housing and Community Services, Dr. Lisa Warhuus, along with Nina Goldman, Katie Cobian presented on Berkeley Youth Equity Partnership. The presentation covered the New Name, Impacts of Berkeley’s 2020 Vision; Lessons Learned; YEP’s Framework and Key Activities. This was followed by committee members asking questions.
President Babbit thanked HHCS for presentation and expressed BUSD goal for partnership with the City to support students. President Babbit acknowledged the work and asked for a moment of silence for Hon. Karen Hempfield, former BUSD Board Member and President.
Director Vasudeo commented about having targeted outreach to Umoja and Puente program participants for an opportunity to be a part of the panel. She also spoke about learning how the City is working with CBOs.
Nina Goldman responded that the City funds almost every CBO in Berkeley, in Umoja and Puente, as well as connecting with the three community-based organizations that are serving the Black Lives Matter Resolution. Everyone will be invited to apply in the Fall for next round of funding.
Councilmember Hahn commented about the need for crisper goals in terms of metrics.
President Ford Morthel mentioned a lot of the partners are not clear on metrics around what the program does or what they are trying to accomplish. President Ford Morthel also commented
5 about how to first get clear on what District goals and outcome goals are for students, then working with partners on what their role is in supporting goals. The other discussion was creating clear metrics as partners on the quantitative measures and qualitative measures.
Nina Goldman added that one of the things learned is the complexity of the numbers – collecting data and how it interacts with each other - programs are doing amazing things with kids; but looking at the community measures, there's a disconnect. Expertise is needed in data analysis.
6. Action Item
6.1 - Develop and Prioritize Future Agenda Items
President Babitt asked the committee to have an agreement to prioritize issues for next meeting:
1. Giving more time to resolving parking permit issue; 2. Getting updates on Milvia project; and
3. focusing on next steps on YEP.
Vice President Vasudeo expressed that there are priority topics that come up at 2x2 meetings – 1.
Transportation -- Bright Streets and Milvia project; 2. Closing opportunity gap and agencies collaborating; and 3. Safety in our schools.
Councilmember Hahn commented about having 2x2 meetings every month. Other topics of interest are seeing zero waste in plastics, including issues around recycling, composting, reusables at BUSD and how the City can support; interested in shared facilities and expanding shared facilities for more accessible spaces for the rest of the community.
Committees collected list of topics for future meetings: 1. YEP; 2. Safety Task Force; 3. Milvia Street Project; 4. Shared equitable recreation; 5. Transportation – traffic around school; 6. Zero Waste; and 7. Meeting regularly.
Committee agreed on upcoming Special Meeting on May 17, 2023 at 11:00 am and Regular Meeting on June 16, 2023 at 1:00 pm. Further discussion is needed for proposed dates of September 8 at 10:30 am -12:00 pm, November 9 and/or possible date in October.
7. Next Meeting
Special Meeting on May 17, 2023, at 11:00 am – 12:30 pm Regular Meeting on June 16, 2023, at 1:00 pm – 2:30 pm
8. Adjournment
Meeting adjourned at10:50 am
1 Office of the City Manager
Notes of 2x2 Committee Meeting
May 17, 2023
Called to Order
Meeting commenced at 11:02 am
Approval of Special Meeting Agenda for May 17, 2023
President Laura Babitt moved to approve agenda for meeting. The motion was seconded, and passed.
Roll Call
Director Jennifer Shanoski, BUSD; Councilmember Sophie Hahn, City of Berkeley and President Laura Babitt, BUSD were present. Councilmember Terry Taplin, City of Berkeley was absent. Director Shanoski was the alternate for BUSD Board Member, Director Ana Vasudeo.
Others Present
Matt Meyer, President of Berkeley Federation for Teachers for public comment; Regina Chagolla, Vice President of Berkeley Federation of Teachers for public comment; Ramonda Clarke, City of Berkeley; Anne Cardwell, City of Berkeley; Enikia Ford Morthel, Superintendent BUSD; John Calise, Executive Director of Facilities BUSD; Tom Lent, President of Walk Bike Berkeley for public comment and Jessica Lopez, Executive Assistant BUSD
Approval of Minutes for April 28, 2023
Councilmember Hahn moved to approve minutes of April 28, 2023 meeting. The motion was seconded, and passed.
Public Comment
Matt Myers commented about the parking situation at Berkeley High for staff around commuting with their children with different drop off locations and unable to use ebike for this purpose and
2 lack of available parking for school day. He also expressed support of Director Calise’s alternatives and the need for the City’s collaboration.
Tom Lent commented about the BUSD survey that was shared with staff members and the need for a TDM survey to evaluate needs for BHS staff.
Liza Lutzker expressed appreciation of new flexible approach. She also commented about the survey to staff and suggested District collaboration with City transportation for more accurate data.
Cielo Rios commented about the need for a survey design to create an unbiased and comprehensive analysis of how staff get to work, the distance they travel and where they live.
Discussion Item – 5.1 Up date on Milvia Street Project
Director John Calise presented. The objective of presentation was to review high level findings of the parking study. Director Calise clarified that the internal survey is different from a TDM survey and that the District will bring in a consultant to do a TDM survey and then, engage 2x2 in discussion about possible next steps. The internal survey has been shared with City staff.
Parking study survey has been finalized. There was 40% participation in survey. Out of the respondents 80% drove to work out of necessity; 85% are able to use the staff lot; 5% parked in city or private parking garages; and 14% use surface street parking in the neighborhood.
President Babitt requested clarification of which lot, and if the 220 permits all go to Berkeley High School staff.
Director Calise responded that there are approximately 220 BHS parking permits issued for the 144 spaces, lot on Milvia between Bancroft and Durant. The spaces are first come, first serve with permit.
President Babitt stated that there are zero permits offered to staff by the City.
Director Calise thanked Babitt for clarifying stating that there are no RPP permits issued for anyone who works at BHS.
Director Calise further stated the study showed that if a financial incentive was offered, would driving to work change, 75% said no.
Director Shanoski asked about timeline for TDM survey.
3 Director Calise advised they anticipated putting out an RFP sometime this summer.
Director of Public Works, Liam Garland advised that the City is still digesting presentation and introduced parking policy team members Gordon Hansen and Hamid Mostowfi.
Gordon Hansen of Public Works advised that the City manages parking via RPP permits for the purpose to protect parking for residents. The area around BHS, Area C, where John’s team did the parking survey was established in 1986. BHS is located within Area I, which covers the southside and downtown area. RPP permits are intended for residents only. The City has several other programs that allow different classes of users to be able to park in our different areas. One of those programs is the neighborhood serving Community Facility program or NCF that allows employees of schools, churches and rehab centers to be able to purchase permits for the areas in which the facilities are located. The City also has a program for local merchants that allows them to get permits for certain commercial districts.
Under the current program, facilities apply every year using the same standard process. By using a standard formula, we look at the number of full-time staff , multiply that by 60%, that gives us the top line of parking permits that can be issued at the facility. Off-street parking available to that facility is also taken into account.
Historically BHS and other schools and churches in Area I have been excluded from eligibility for that program due to Area I being quite compacted. The other reason for this is that the City is guided by the Berkeley Municipal Code that staff must consider the degree of impact on parking conditions for residents and merchants in the area where we would consider extending eligibility for these community facility permits. Because of the unique constraints and pressures in Area I, BHS and other facilities have been excluded by administrative regulation in keeping with the direction from the code.
The question is, how do we move forward from here from the city's perspective. These are high level for discussion purposes, not proposals or plans. One idea, we say we will allow Berkeley High School to apply for these permits in Area I. That would be a departure from our past practice and would raise a lot of concern for the City for major impacts on existing permits holders.
Area C borders Berkeley High School. BHS is not actually within the boundaries of Area C where John's team did the parking survey analysis. Area C is a little more tricky and requires additional conversation, it may actually require council action to change the location of RPP area boundaries.
If we wanted to say, allow BHS to apply for community facility permits for Area C. The other piece is changing boundaries of Area I and Area C could disproportionately impact the existing RPP Area I parking, that's located on the periphery of Berkeley High School. Further reducing
4 opportunities for residents in the downtown area to find Area I parking. Those are two potential ways forward that we can discuss.
President Babitt interjected to allow Q & A on what was heard thus far.
Councilmember Hahn thanked Gordon for helpful information. She further commented that the reason for this conversation is because City Council referred it 2x2 saying we don't think it's optimal to have a parking garage in the middle of the downtown and please help problem solve hand in hand with the district. In that spirit, we need a well-developed plan to go to council.
Councilmember Hahn also stated that Area J and Area E, along with Area C should be looked at.
From a regulatory perspective, we would need council action to say Berkeley High is special and we will allow them to apply for permits in these other areas, or we would have to put them in another area.
Councilmember Hahn commented that surveys are helpful but definitive. What is more important even without a study is, putting programs and incentives in place at all our schools, i.e., electric trikes that have a big cargo and enhancing programs BUSD already has in place.
Councilmember Hahn expressed understanding and sympathy of people having complicated lives and being at different stages of life, and some have the need to drive for different reasons and some can take an ebike or other transit. Hahn also stated that they are trying to find solutions and personally thinks getting permits will be part of that solution, and is committed to all of the above.
Director Shanoski appreciated problem solving approach and the City partnering with the school district regarding issue of parking for teachers and staff and concerns about building a parking structure. Further comments about the big issue of subs and part-time teachers parking on city streets and if it would be possible to alleviate some of the city concerns if those folks were prioritized with the city street permits, to minimize the impact on city streets.
Councilmember Hahn clarified that once BUSD has the permits that it is up to District to allocate them.
Director Shanoski confirmed Hahn’s statement and advised that she was just voicing it as a possibility and that in collaboration with labor partners, they can figure out how to prioritize the permanent spaces and we use the permits in a more flexible way
Director Calise provided feedback that Berkeley High is the only school with a parking lot. The lottery is done now for subs, part-time and full-time teachers, but the itinerant staff aren't considered in lottery - special ed folks who roam school to school, do not get into that lottery and
5 are stuck looking for a spot. The reason is to try and maximize lot to make sure every spot is filled for the entire day.
Director Shanoski questioned if those included in the survey, includes the subs and part-time teachers because of the need to understand the impact to all.
Director Calise advised that subs were not included, as they are not part of BHS council.
President Babitt agreed with colleagues regarding being in problem solving mode. Babitt further commented about the fact that people are driving and parking in the neighborhoods from 8:00 am to 4:30 pm every day, and moving their cars every two hours. This is extremely disruptive for the city's educational program. The district needs help eliminating the fact that teachers are moving every two hours and to use the spaces that are already being used in a more efficient way.
Councilmember Hahn asked if the survey taken of Area C that showed 73% of spaces taken, included all the BHS staff, etc., on a school day.
Director Calise responded majority parked in the west in Area C because that's where most spots are available and why the area was studied.
Councilmember Hahn expressed to Deputy City Manager Anne Cardwell that no matter what, the City is going to have to take a look at this. BUSD has not taken action on the alternative plan, etc.; but feels like this needs to get in front of council in some fashion – maybe by writing a discussion item that President Babitt and Councilmember Hahn could write it together with support from Public Works, BUSD, to lay out all these great “ha-has” we have, with imperfect information.
Councilmember Hahn suggested a general outline of a path forward for the City's piece. The city's piece would be to consider a special dispensation for a certain number of permits to be allowed in one, two, or three adjoining areas by a possible ordinance change to see if we can get a certain number of permits in the three outlining areas. The second thing that should be looked at jointly is a robust electric cargo bike program. Teachers and staff can help us understand what would work for them. Maybe there's some grant funding out there for a pilot of a really well thought through program, either loaners; maybe we give some kind of an incentive to purchase one. Let's have a broad dive into an innovative program. The third is to look at what are the transit incentives that BUSD has in place.
6 Director Calise responded that BUSD currently has a cafeteria plan for all staff members who use public transit that they show their receipts and that amount is pre-taxed out of their check.
Councilmember Hahn asked if there is something we can do that is better or a way to design this so that more people take advantage of it. Is there any other thing that we should put in the council's idea box?
President Babitt said that she heard Gordon say that permits are offered at a cost and asked what is the portion that BUSD in the current structure of these neighborhood community service programs would have to pay.
Gordon Hansen responded the NCF permits? Yes, I believe it's $82 a year.
President Babitt responded $66 and then $185? We will need that information.
Director Calise advised that it comes come out of a different fund. The way that the permits are paid for is out of the site funds. The sites are allocated x amount of dollars of general fund dollars to use discretionary. Those permits at the sites are actually paid for by the sites.
Councilmember Hahn would like to explore allocating permits in the three nearby areas, some kind of cargo bike program, reevaluating the effectiveness of the transit incentive and whether that can be enhanced in some way. The possibility that some portion of the vehicle parking need might be handled in some way with a shared cost or something at the new half empty parking facility downtown. Hahn would invite BUSD to present at meeting and having the conversation about BUSD and the City of Berkeley's piece with council.
President Babitt asked where are we landing on the need for additional surveys or the TDM and what are the outcomes we expect a TDM to help offer, giving the framing that we have come up with to solving the immediate problem.
Gordon Hansen first confirmed the permit cost is $83 year. He further commented BUSD already provides a pretax commute benefit which allows employees to set aside funding from their paycheck to be used for any type of transit that they use. Other options to consider an AC Transit Easy Pass program. It offers bulk discounts typically used by either large institutions.
What it does is provide a discounted transit pass for use on transit at a much lower cost to the employer than a normal monthly or yearly pass would be.
Director Babitt responded that it sounds like the results of the TDM would be to basically let us know how to advocate for more of the public transit uses, the funding sources, the discounts or any kind of offerings we could partner with mass transit.
7 Gordon Hansen responded yes, that's definitely one approach.
Councilmember Hahn responded to Gordon saying that the question is, do we really need to spend money to do a special study; or with your expertise, would we be able to just potentially show a menu of things that could help reduce driving? Or do we need to spend the money on a study?
President Babitt said she thinks the study would help us negotiate with AC transit or BART.
Gordon Hansen responded not necessarily. To the first question, we could start with a list of TDM policies that already exist in Berkeley or that we have studied in the past in a parking pilot the city did about 10 years ago. He further stated that there is value to pursuing some external support given we are not always aware of what new programs or policies might be available so there is some research that could be valuable from a consultant.
Director Babitt thanked Gordon for feedback and asked if anyone else had anything pertinent to the solutions that we are moving towards that they would like to add before we adjourn.
Councilmember Hahn asked if we should take some action for the City team to work with the BUSD team to put an item together, a discussion item to bring before the city council so that the city council can engage in a preliminary discussion of how the city can participate in solving this problem.
Approval of Motion for City Team to Prepare Discussion Item for City Council Councilmember Hahn moved for a Motion to request that the City team prepare a discussion item for City Council to begin exploring the City's options to help solve the parking garage question.
The motion was seconded and passed
Director Calise asked if there was a timeline. He further advised that per the Board's direction, they are completing the CEQA and it is almost ready to publish. He further indicated that they are supposed to be writing and releasing the RFP for the design build of the garage project in July. He again asked if he can ask for a timeline, so he understands the direction to look for from the Board as to whether or not to postpone, pause, etc.
Director Babitt asked if there is a difference between pause and terminating.
Director Calise responded there is. But what he is asking is, does the 2x2 have a timeline to work with the City or when would this action or discussion be brought to the City?
8 Councilmember Hahn responded that it is about putting the item together which includes a little bit of background of everything Gordon laid out about our existing rules and explain what it would take to work around them and maybe some pros and cons of the different workarounds.
Director Calise advised that he can make July work and that it is helpful to understand from a planning perspective when we would begin. If we can do it in July, I think it's helpful cause it informs their work and what needed from team.
Councilmember Hahn advised that she is not prepared to give a timeline due to it not yet being an action item. She suggested that by the end of September, she hoped to have had a discussion and an indication of the general direction that council would like to move in.
Director Babitt advised that her concern is money continuing to be spent on this $27 million parking garage.
Director Calise responded we are but not continuing. The EIR and the bridging documents contracts are already in play and in the finalization stage. The dollars have been encumbered and expensed for that. For those particular contracts, is why he asked if there was a timeframe so not to put staff time and dollars or any public dollars, as far as bond dollars into moving this project to the next phase, until we understand. To not encumber or expense more dollars on this project, he’ll need to update the Board. He further stated if this is where we are with project, they are pressing pause since the 2x2 has indicated is a willingness to partner and that it will go before city council for a conversation.
Deputy City Manager Cardwell advised that she will have internal meetings and then update on timing.
President Babitt thanked everyone and advised the next meeting is scheduled for June 16 th and
advised if any other meeting dates had been finalized.
Deputy City Manager Cardwell advised that Jessica and Ramonda are working on getting those on calendars and double checking that it works for everybody's schedule.
Next Meeting
June 16, 2023 from 1:00pm – 2:30 pm
Adjournment
Meeting adjourned at 12:23 pm
1 Office of the City Manager
Notes - 2x2 Committee Meeting
June 16, 2023
Called to Order
Meeting commenced at 1:03 pm
Ap
proval of Meeting Agenda for June 16, 2023
President Laura Babitt moved to approve agenda for meeting. The motion was seconded, and passed.
Present
Ana Vasudeo, BUSD Board Vice President; Councilmember Sophie Hahn, City of Berkeley and Laura Babitt, BUSD Board President were present at commencement of meeting.
Councilmember Terry Taplin arrived at 1:12 pm
Ap
proval of Minutes for May 17, 2023
President Laura Babitt moved to approve minutes of May 17, 2023 meeting. The motion was seconded, and passed.
Public Comment
Jeff Jue made comments regarding appreciation of work relating to teacher parking issue; as well as BHS students looking forward to getting tennis courts back at BHS.
Pet
er Wrig
ht echoed Coach Jue’s comments about tennis courts, as well as commented regarding being encouraged by bond measure that passed with tennis courts and parking.
Ray Yep commented regarding need for tennis courts to return to Berkeley High and offered support and assistance for same.
2 Cordell Hindler invited 2x2 Committee members to Contra Costa Mayor’s Conference on July 6th hosted by the town of Moraga.
Martha Cain commented regarding zero waste and discussion of reusable dishes in some BUSD cafeterias. Applauded the effort to get it launched in 23/24.
Discussion Item – 5.1 B USD Presentation on Zero Waste Efforts
Superintendent Ford-Morthel presented on BUSD’s Zero Waste Efforts. The presentation included Reusable Foodware Pilot Project which included challenges/barriers and where additional support is needed. BUSD would like City’s input around the implementation of the single use ordinance. Sofia Peltz and Stephen Collins of BUSD presented slides for discussion item.
Questions and Answers follo wing Discussion Item 5.1 Presentation
Councilmember Hahn stated excitement that efforts are in pilot mode. She also talked about advocacy at schools and districts for these types of programs and the work that Deborah Moore did on the Green Schools initiatives in hopes to get schools to go to reusables, recycle and other changes for zero waste. BUSD is the only one that Moore was never able to get to move forward. Zero waste has been a longstanding goal of the community.
Councilmember Hahn talked about a couple of ideas:
• Using the City’s compostable list. Solution is reusables, any disposables are not a good solution
• Services that service corporate dining rooms like Google and contract with them to pick up/wash dishes
• Hotels and restaurants in Berkeley; kitchens are closed at night; dishwashing capacity in Berkeley that could be available.
• Labor – there are programs in Berkeley to partner with to provide entry level jobs and job training opportunities. The City has formerly homeless individuals who are ambassadors downtown.
• Motivated parents that are willing to volunteer.
Councilmember Taplin commended the District and recognized the work being done.
Director Vasudeo expressed thanks for updates. Further comments regarding the current use of a dishwasher at Cragmont, the Green team and use of reusable cutlery at the school.
3 Director Vasudeo requested more information regarding which campuses do not have a dishwasher, more specifics around cost and what it would take to make sure this is available to all our campuses or what a shared model could look like and, on the labor side, staffing numbers.
Expressed curiosity of how a homeless ambassador program would work, as mentioned by Councilmember Hahn, from an equity perspective.
President Babbitt stated excitement to take it to next level and expressed confidence that it can be done. She expressed need to understand the cost benefit analysis of the services available to District to contract work out. Acknowledged significant challenges with hiring staff to do this type of work and we also the added layer of being on the school campus and clearances needed.
Further suggested that the District partner with Cal Berkeley or Berkeley City Community College and find out how they are washing their dishes. Also, looking into how BHS can be a spot for Vessel, as mentioned by a student at Climate Fair.
President Babbitt asked what was the plan for the next school year 23/24.
Stephen Collins advised that a plan was not currently in place.
Superintendent Ford-Morthel stated this meeting was one of the things to get a plan in place.
The challenges are getting people, facilities having dishwashers and funding. Would like to work with executive team, work on a plan and discuss further at next 2x2 meeting.
President Babbitt summarized that the District will come back with a plan and agreement for a target date of 24/25 school year, which also meets BUSD sustainability plan goals. Babbitt asked to understand what is involved in a pilot program of washing dishes?
Stephen Collins responded that it is having the people to wash the dishes. Money is needed to fill the positions.
Councilmember Hahn suggested having as part of the plan -- recruitment and retention for this classification and look at you whether increasing pay, different working conditions, bonuses, referring friends.
Councilmember Taplin asked if a union gets brought into the project, who do they bargain with.
Stephen Collins responded staff is unionized. The partner organization called the Merit Commission controls all of the recruiting.
4 President Babitt summarized that staffing is the current challenge. Would also like to understanding costs, possibly partnering with Cal Berkeley or Berkeley Community College or bigger entities.
Prioritize Future Agenda Items
President Babitt mentioned continuing the conversation around the parking structure and the permits.
Di
rector Vasudeo me
ntioned Bright Streets and that there are specific requests from district principals around public works projects at the school sites. Would like to know if there are public works requests that district needs to collaborate on. There are also pending safe routes to school safety assessments and need collaboration with planning staff at the city to implement some of the recommendations.
President Babbitt commented about needing updates around the 2020 vision (YEP) and how those funds are being allocated. RFP needed, Grants. Collaborate more with being able to expand things that are working and just simplifying that process in general.
Anne Cardwell advised that Dr. Lisa Warhuus (Director of HHCS) requested that YEP be a standing item on agenda.
Councilmember Hahn commented about Bright Streets and asked regarding status of work from Public Works.
Summary of agenda topics
• Zero Waste
• Bright Streets
• 2020 Vision/YEP
• Transportation - Safety
• Parking Structure and Permits
Next Meeting
September 8, 2023 from 10:30 am – 12:00 pm
Meet
ing adjour
ned at 2:01pm.
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
Office of the City Manager
INFORMATION CALENDAR
Info December 12, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Farimah Brown, City Attorney
Subject: Settlement of Claim of D.L. Falk Construction Inc. (North Berkeley Senior Center)
INTRODUCTION
Under Berkeley Municipal Code section 2.06.120G, all settlements that are not announced at the conclusion of a closed session are provided to the Council and the public via an information report.
CURRENT SITUATION AND ITS EFFECTS
Pursuant to the Council’s authorization on September 26, 2023, the City has entered into the attached Settlement and Release.
BACKGROUND
On May 17, 2019, Council approved a Construction Agreement between the City and D.L. Falk Construction Inc. (“DLF”) for a project at the North Berkeley Senior Center which included seismic retrofitting, deferred maintenance upgrades, and various improvements (“Project”). The initial approved contract amount was not to exceed $8,320,400 (Resolution No. 68,303-N.S.). On April 27, 2021, Council approved a contract amendment raising the not to exceed amount to $8,670,400 (Resolution No. 69,828-N.S.).
The Project incurred significant construction challenges which resulted in delays in project completion and claimed cost overruns. On October 3, 2022, DLF submitted a Claim to the City asserting that it was owed an additional $3.38 million in connection with the Project.
Settlement of Claim of D.L. Falk Construction Inc. (North Berkeley Senior Center) INFORMATION CALENDAR December 12, 2023
Prior to litigation of claims on a public construction project, parties are required to engage in a mediation process. Over the course of the following year, the parties engaged in mediation and settlement discussions.
On September 26, 2023, Council convened in closed session and provided direction regarding a potential settlement.
On October 23, 2023, the parties executed the attached Settlement Agreement. The Settlement Agreement provides that DLF will release all claims against the city relating to the Project in exchange for a payment of $1.25 million. The Settlement Agreement reflects the terms reached by the parties consistent with the Council’s Approval.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
Not applicable.
POSSIBLE FUTURE ACTION
None considered.
FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
Not applicable (no possible future actions considered).
CONTACT PERSON
Farimah Brown, City Attorney, 510-981-6950
Attachments:
1: Settlement Agreement and Release
DLF – CITY OF BERKELEY SETTLEMENT AGREEMENT
1 SETTLEMENT AGREEMENT
This Settlement Agreement (the “Agreement”) is made and entered into by and between D.L. Falk Construction Inc. (“DLF”) and City of Berkeley (“Berkeley”). DLF and Berkeley each may be referenced as a “Party,” and DLF and Berkeley collectively may be referenced as the “Parties.” Upon execution of this Agreement, it shall be effective as of September 26, 2023 (“Effective Date”).
RECITALS
A. Berkeley is the owner of the public works project generally described as the North Berkeley Senior Center Seismic Upgrades and Renovations at 1901 Hearst Ave., Berkeley CA 94709, Project No. 19-11268-C (“Project”).
B. On or about March 29, 2019, DLF and Berkeley entered into a written contract in which DLF was to perform construction work on Project (“Contract”).
C. The initial Contract time was 210 calendar days for substantial completion (January 1, 2020) and 260 calendar days for final completion (February 20, 2020).
D. The City issued Notice of Completion on August 31, 2022, 735 days later than the contract final completion date.
E. On or about October 7, 2022, DLF transmitted an “omnibus” claim pursuant to Article 12 of the Contract seeking additional compensation in the amount of $3,381,228.83 in connection with numerous change order requests (CORs). DLF’s omnibus claim included COR #61.7 in the amount of $1,420,380.17 pertaining to DLF’s claim for extended general conditions and a contract extension of 752 working days for the performance of additional work DLF contends was required by the City.
F. In addition, DLF submitted its final Payment Application No. 31 seeking $93,417.64, and its retention Payment Application No. 32 seeking $427,823.25. The City paid only the undisputed portion of Payment Application No. 31 and did not pay Payment Application No. 32 due to disputes arising from defective work the City believed needed to be corrected. The City disputed the amount DLF claimed it was owed for retention because the City valued the retention at $413,821.64.
G. The Contract provides for liquidated damages of $2,000 per day for late completion of the Project. Accordingly, the City has asserted entitlement to $1,470,000 in liquidated damages from DLF.
H. The respective claims and counterclaims by the Parties related to and arising out of the Project and Contract, including claims that could have been asserted but were not, are hereinafter referred to as the “Dispute”.
I. Between February 9, 2023, and July 13, 2023, the Parties engaged in various mediation proceedings with JAMS, in satisfaction of their obligations under the Contract and pursuant to Public Contract Code section 9204.
DLF – CITY OF BERKELEY SETTLEMENT AGREEMENT
2 J. DLF and Berkeley now seek to avoid the expense and risk of future litigation and to settle and compromise fully and forever, the Dispute via this Agreement, which has been negotiated at arms’ length and has been agreed to by the Parties in good faith.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by DLF and Berkeley, and intending to be legally bound by the terms of this Agreement, the Parties agree as follows:
1. Recitals. The Recitals above are incorporated herein as terms of this Agreement and are not mere recitals.
2. Payment to DLF. Within thirty (30) calendar days of execution of this Agreement, Berkeley shall pay to DLF the sum of One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) (“Settlement Payment”) as full accord and satisfaction of the Dispute, including but not limited to any claims for interest, costs, or attorneys’ fees.
3. Condition of Approval . This Agreement is expressly conditioned upon ratification of the key terms of this Agreement by the Berkeley City Council, which Berkeley’s signatory below certifies occurred at the September 26, 2023, meeting of the City Council.
4. Berkeley Waiver of Accrued Delay Damages . Berkeley agrees to waive its claims for costs for accrued Liquidated Damages and/or delay damages and/or defective work arising through Project completion.
5. No Admission of Liability. The Agreement involves the settlement and compromise of disputed claims and does not constitute an admission of liability by any of the Parties to this Agreement.
6. Fees and Costs. DLF and Berkeley shall each bear their own attorneys’ fees and costs in connection with the Project and the Dispute and the negotiation and creation of this Agreement. If any action is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs in addition to any other relief to which the Party may be entitled.
7. Mutual General Release. Except for Ongoing Rights and Obligations arising from the Contract described in Section 8 below, the Claims Not Released described in Section 11 below, and the obligations and rights created or confirmed by this Agreement, DLF and Berkeley, on behalf of themselves and their respective past, present, and future members, partners, shareholders, and insurers, and each of their respective predecessors, successors, and assigns, hereby releases the other Party and each of their respective predecessors, successors, and assigns, past or present, indirect or direct, partners, members, investors, parents, subsidiaries, heirs, executors, administrators, affiliated entities, insurers, attorneys, employees, and sureties from and against any and all causes of action, claims, demands, damages, obligations, liabilities, or judgments of whatever kind and character, whether known or unknown, suspected or unsuspected, accrued or unaccrued, in law, equity, or otherwise, that each currently owns or which may arise in the future
DLF – CITY OF BERKELEY SETTLEMENT AGREEMENT
3 relating to or arising from any and all past, present, or future claims in connection with the Dispute, the Project, or the Contract.
8. Ongoing Rights and Obligations. Except as specifically stated herein, the Agreement shall not be construed as creating, altering, extending, or abridging the ongoing rights and obligations of the Parties under the Contract, including but not limited to DLF’s obligation to indemnify, hold harmless, and defend the City. All warranties and guarantees specified in the Contract shall remain in full force and effect. Any change to the Contract required by this Agreement will be accomplished in accordance with the Change Order provisions of the Contract.
In particular, all warranties and guarantees under the Contract are to remain in full force and effect, except as modified by Contract Change Order.
9. Claims by DLF Subcontractors and Suppliers . Notwithstanding any other provision in this Agreement, DLF agrees to defend, indemnify, and hold harmless Berkeley from any and all mechanics liens, stop notices, payment bond claims, or other claims or demands for payment by any subcontractor, supplier, or materialman of any tier, or other materialmen or laborers providing work, services, or materials to the Project at the request or direction of DLF.
10. California Civil Code Section 1542 Waiver. The Parties expressly acknowledge and agree that the release(s) contained in this Agreement include a waiver of all rights under Section 1542 of the California Civil Code. This statute reads as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF
KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASED PARTY.
The Parties acknowledge that the foregoing waiver of the provisions of Section 1542 of the California Civil Code was bargained for separately. Accordingly, Section 1542 of the California Civil Code, and any similar law, statute, provision, or policy of this or any other state, is hereby expressly waived by DLF and Berkeley as to the claims that are released by this Agreement.
11. Claims Not Released. The Release set forth in Paragraph 7 above shall not release the Parties from the claims described herein. The Parties expressly reserve against one another all claims and defenses based on latent deficiencies (as that term is defined in California Code of Civil Procedure section 337.15, hereinafter collectively referred to as “Latent Deficiencies”) in the Project construction not known as of the Execution Date.
12. Third-Party Beneficiaries . Except as otherwise expressly provided herein, nothing in this Agreement is intended to confer upon any person or entity other than the Parties and their respective successors and assigns any rights, remedies, obligations, or liabilities by reason of this Agreement.
DLF – CITY OF BERKELEY SETTLEMENT AGREEMENT
4 13. No Assignment of Claims. DLF and Berkeley represent and warrant that each has not assigned or otherwise transferred any interest in any of the claims that they are releasing pursuant to this Agreement. DLF and Berkeley agree to indemnify, defend, and hold harmless the other from and against any and all liability, loss, claims, damages, costs, expenses, or attorneys’ fees incurred as a result of its breach of the representation contained in this paragraph.
14. Notices. Any notice required or permitted to be given under this Agreement shall be in writing and either shall be mailed by certified mail, postage prepaid, return receipt requested, or sent by overnight air courier service, or personally delivered to a representative of the receiving Party. All such communications shall be mailed, sent or delivered, addressed to the Party for whom it is intended at its address set forth below:
If to Berkeley:
With a copy to:
City of Berkeley
Attn: City Attorney’s Office
2180 Milvia Street
Berkeley, CA 94704
D. Joan Cox, Esq.
Burke, Williams & Sorensen, LLP,
One California Street, Suite 3050,
San Francisco, CA 94111-5432
If to DLF:
With a copy to:
David T. Falk
D.L. Falk Construction Inc.
3526 Investment Blvd.
Hayward, CA 94545
Matthew A. Richards
Nixon Peabody LLP
One Embarcadero Center, 32nd Floor
San Francisco, California 94111
15. Good Faith; Rescission. The Parties agree that this Agreement is entered into in good faith and for adequate consideration and may not be rescinded.
16. No Reliance. Each Party acknowledges that it has made such investigation of the facts pertaining to the settlement and this Agreement, and all matters pertaining thereto, as it deems necessary. Each Party to this Agreement represents that: (a) it is represented by the attorneys of its choice; (b) prior to the execution of this Agreement each Party’s attorney reviewed this Agreement, made all desired changes, and approved this Agreement as to substance and form; (c) the terms of this Agreement and its consequences (including risks, complications, and costs) have been fully explained to it by its attorneys; (d) it fully understands the terms and consequences of this Agreement; (e) it is not relying upon any representation or statement made by any other Party hereto, or by such other Party’s employees, agents, representatives or attorneys regarding this Agreement or its preparation except to the extent such representations are expressly and explicitly incorporated herein; (f) it is not relying upon a legal duty, if one exists, on the part of any other Party, or upon the part of such other Party’s employees, agents, representatives or attorneys, to
DLF – CITY OF BERKELEY SETTLEMENT AGREEMENT
5 disclose any information in connection with the execution of this Agreement or its preparation; and (g) it has carefully read and understands the contents of this Agreement and freely signs it of its own free act, without any constraint or undue influence, and it is the intention of each Party to be legally bound by this Agreement. Further, it is expressly understood that no Party shall ever assert any failure to disclose information by any other Party as a ground for challenging this Agreement.
17. After-Acquired Facts . The Parties acknowledge that they might hereafter discover facts different from or in addition to those they now know or believe to be true with respect to a claim or claims released herein, and they expressly agree to assume the risk of possible discovery of additional or different facts, and agree that this Agreement shall be and remain effective in all respects regardless of such additional or different discovered facts, or any change in circumstances.
18. Prohibition of Use . Neither this Agreement nor any of its Recitals, terms, or provisions, nor any of the negotiations connected with it, nor any other action taken to carry out this Agreement, shall be offered by either Party as evidence in any pending or future civil proceeding against the other Party, except in a proceeding to enforce or interpret any of the terms of this Agreement, including but not limited to as a defense to any claims released herein.
19. Construction of Agreement . Should any of the provisions or terms of this Agreement require judicial interpretation, it is agreed that the Court or other trier of fact interpreting or construing this Agreement, shall not apply a presumption that such provision(s) or term(s) shall be more strictly construed against one Party by reason of the rule of construction that a document is to be construed more strictly against the Party who prepared it. It is agreed that all Parties have participated in the preparation and review of this Agreement.
20. Complete Agreement. The Parties agree, declare, and represent that, other than the express terms of this Agreement and Exhibits hereto, no promise, inducement, representation, or agreement has been made to any Party by anyone to cause them to enter this Agreement, and each Party further agrees, declares, and represents that it has not relied on any representation, oral or written, by any other Party in making the decision to enter into this Agreement. The Agreement contains the entire agreement between the Parties, and the terms of the Agreement are contractual and not a mere recital. This is a fully integrated Agreement, and it may not be altered or modified by oral agreement, representation, or otherwise except by a writing of subsequent date hereto signed by all Parties.
21. Governing Law. This Agreement shall in all respects be interpreted, enforced, and governed by the laws of the State of California.
22. Further Documents. Each Party will cooperate and diligently perform any further acts, deeds, and things and execute and deliver any documents that may from time to time be reasonably necessary or otherwise reasonably required to consummate, evidence, confirm, and/or carry out the intent and provisions of this Agreement, all without undue delay or expense and without further consideration.
DLF – CITY OF BERKELEY SETTLEMENT AGREEMENT
6 23. Mutual and Binding Agreement. The Parties represent that they have fully read and understood this Agreement and acknowledge that this Agreement is mutual, final, and binding on them and on their respective agents, employees, legal representatives, successors, assigns, heirs, estates, executors, and all others claiming by or through the Parties and otherwise as described in this Agreement.
24. Authority. Each signatory for each respective Party hereunder represents and warrants that they have all due authority necessary to execute this Agreement on behalf of such Party.
25. Counterparts. This Agreement may be executed in any number of counterparts, with the same effect as if all of the Parties hereto had signed the same document. All counterparts shall be construed together and shall constitute one agreement.
26. Severability. The paragraphs of this Agreement are severable. So long as the essential purpose of this Agreement may be accomplished, a finding that any particular paragraph of this Agreement is invalid and/or unenforceable shall not affect the validity or enforceability of the remaining provisions of the Agreement.
27. Public Contract Code. This Agreement concludes the Parties’ dispute resolution process under the Contract and pursuant to Public Contract Code section 9204. The Parties acknowledge they have no further obligations under Public Contract Code section 9204 related to the Dispute.
IN WITNESS WHEREOF, D.L. Falk Construction Inc. and the City of Berkeley have executed this Agreement.
Date: _________________, 2023 D.L. Falk Construction Inc.
By: _________________________________
Name:
Its: _________________________________
Date: ___10/23______________, 2023 City of Berkeley
By: _Farimah Brown
__________________________ Name:
Its: ______
City Attorney
Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://www.cityofberkeley.info/manager
INFORMATION CALENDAR
December 12, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Henry Oyekanmi, Director, Finance Department Subject: FY 2023 Fourth Quarter Investment Report: Ended June 30, 2023
SUMMARY
The City’s investment policy requires that a quarterly investment report be submitted to the City Council on the status of the investment portfolio. The report includes all investments managed by the City of Berkeley and provides information on the types, values (par, book, and market), term, and yield of each security. The return on pooled investments for the quarter ended June 30, 2023 was 3.06%, 5 basis points more than the 3.01% earned by the State Local Agency Investment Fund (State LAIF), which is the benchmark for investment performance used by the City. The return on pooled investments of 3.06% for the quarter ended June 30, 2023 was 30 basis points more than the rate of 2.76% earned in the quarter ended March 31, 2023.
The average return on all Retiree Medical Trust Fund investments was 5.08% for the quarter ended June 30, 2023.
CURRENT SITUATION AND ITS EFFECTS
Attached is a summary of the quarterly report for fiscal year 2023 Fourth Quarter ending June 30, 2023 representing the status of the City’s investment portfolio. The report includes all investments managed by the City of Berkeley and provides information on the values (par, book, and market), term, and yield of each security.
Summary information by type of security and detailed information on each security is provided on Exhibit 2-A. An evaluation of portfolio performance for this accounting period compared to the previous three accounting periods is also included in Attachment 1.
Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023
A. Portfolio Results
As a result of the differences in the investment policies of different cities, including responsible investing policies, maturity restrictions, investment restrictions, etc., it was difficult for the City of Berkeley to come up with a reasonable performance measure for pooled cash investments. In order to provide some measure of the relative performance of the City’s investment returns, many years ago the City established the State Local Agency Investment Fund (LAIF) as the performance measure to be reported in the quarterly investment reports, since many local governments invested significant portions of their investment portfolios in LAIF.
LAIF was intended to be a reference point to compare the City’s investment performance against, rather than a true performance measure, since most cities typically earn a yield higher than LAIF in normal interest rate environments, and because LAIF’s average maturity of its investments is generally shorter than that of most cities. As a result, past City Councilmembers requested that information about the rates earned by other California cities be included in the quarterly investment reports for comparison purposes, despite the differences in the investment policies of the various cities.
1. Liquidity of Portfolio:
The average investment in the pooled portfolio matures in 1,286 days as of June 30, 2023. This is 36 days less than the 1,322 maturity days as of March 31, 2023.
2. Comparison of Results to Performance Measures – Pooled investments:
Quarter Ended June 30, 2023
The City’s yield on investments for the quarter ended June 30, 2023 was 3.06%, an increase of 30 basis points (.30%) from the 2.76 earned during the quarter ended March 31, 2023. The average yield on a 91-day Treasury bill at the end of the quarter ended June 30, 2023 was 5.28%, an increase of 59 basis points (0.59%) from the 4.69% at the end of the previous quarter, primarily as a result of the Feds raising the Federal Funds rate by .25% on March 23, 2023 and .25% on May 3, 2023.
As summarized in Table 1, staff’s overall results were above the performance measure for the quarter by 5 basis points. Staff’s performance was above the performance measure in April by approximately 11 basis points (+.11%); over the performance measure in May by approximately 7 basis points (+.07%); and, was under the performance measure in June by approximately 2 basis points (-.02%).
The performance measure for the return on investments is compared to the rate of return of the State LAIF.
Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023
Table 1
For Quarter Ending June 30, 2023
Period City State LAIF Difference
Apr-23 2.98% 2.87% +0.11%
May-23 3.06% 2.99% +0.07%
June-23 3.15% 3.17% -0.02%
Apr 1-Jun 30
3.06% 3.01% +0.05%
3. Investment Results-Retiree Health Insurance Funds:
Average interest rates earned on the retiree health insurance trust funds for the quarter ended March 31, 2023 compared to the quarter ended June 30 2023, were as follows:
Table 2
EARNED INTEREST RATES
For Quarter Ended 3/31/2023 Compared To 6/30/2023
Trust Fund 3rd Qtr
3/31/23
4th Qtr
6/30/23
Retiree Medical Trust Fund (Misc Employees) 5.41% 5.39% Fire Retiree Medical Trust Fund 5.22% 5.19%
Police Retiree Medical Trust Fund 4.62% 4.60%
The rates earned on these plans are expected to continue to increase, as staff plans to use the investment authority granted by Council to purchase long-term bonds as rates move higher.
Details related to retiree health trust fund investments are in Attachment 3, Exhibits 3- A, 3-B, and 3-C of this report.
Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023
B. Discussion of Interest Rate Environment and Outlook
In its June 14, 2023 statement, the Federal Open Market Committee said recent indicators suggest that economic activity has continued to expand at a modest pace. Job gains have been robust in recent months, the unemployment rate has remained low, but inflation remains elevated.
The U. S. banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks.
Yield Trend
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5 to 5-1/4%-percent. Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy. In determining the extent of additional policy changes that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.
In addition, the Committee will continue to reduce its holdings of Treasury securities and agency debt and mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for its economic outlook. The Committee would be prepared to adjust its stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Since the Federal Reserve change its zero-interest rate policy in March 2017 to combat high inflation, the Federal Reserve Board has raised the Federal Funds rate 11 times for a total of 5.25%-5.50%, as follows:
Table 3
DATE RATE CHANGE FEDERAL FUNDS RATE
03/17/22 .25% .25%-.50%
05/05/22 .50% .75%-1.00%
06/16/22 .75% 1.50%-1.75%
07/27/22 .75% 2.25%-2.50%
09/21/22 .75% 3.00%-3.25%
Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023
11/02/2022 .75% 3.75%-4.00%
12/14/2022 .50% 4.25%-4.50%
2/1/2023 .25% 4.50%-4.75%
3/23/2023 .25% 4.75%-5.00%
5/3/2023 .25% 5.00%-5.25%
7/26/2023 .25% 5.25%-5.50%
Since the rate hike on March 23, 2023, there were three regional bank failures (Silicon Valley Bank, Signature Bank and First Republic Bank), and several other regional banks are under significant pressure. Therefore, it is likely that the Fed will be extremely cautious before raising the Federal Funds rates much higher. In addition, these developments have resulted in (1) banks’ raising their lending standards and reducing the number of loans granted; (2) mortgage rates rising to 8%; and (3) an increase in the probability of a significant slowdown in the US economy in 2023. Berkeley has already started feeling the effects of the Feds monetary tightening in the form of a substantial slowdown in the sales of real properties in the third and fourth quarters of FY 2023.
Change in Strategy
Prior to the Fed’s change in monetary policy starting March 17, 2022, staff’s basic strategy consisted of not purchasing any Agency or Medium-Term corporate note securities with a maturity beyond three years, unless the securities were step-up securities (i.e., securities whose interest rates increased periodically, if they were not called). After the Feds changed to a tighter monetary policy in March 2022, the City’s investment strategy changed to extending the investment maturities of securities purchased beyond three years and locking in rates. This should result in an increase in interest income during FY 2023 and beyond.
As a result of the Fed’s tightening of the money supply by sharply increasing short-term interest rates and through its program of selling Agency and Mortgage-Backed securities from its Balance Sheet, there is an increasing probability of a downturn or recession in the US in late 2023 or early 2024, which could give the Feds an incentive to start reducing the Federal Funds rate in 2024, if the inflation rate continues to decline. That would result in short-term rates declining from current high levels and result in the City earning less interest income on the short-term portion of the investment portfolio.
On the other hand, the projected US budget deficit of $1.8 trillion and the Fed’s program of selling $95 billion of Agency and Mortgage-Backed securities per month (or $1.14 trillion per year) will significantly increase the supply of these bonds at a time when demand for them is declining (as the Fed sells $1.14 trillion each year from its Balance Sheet, instead of purchasing them as it did before this program began). This additional huge supply of bonds will overwhelm demand for Treasury Bonds and put further upward pressure on medium and long-term interest rates. This will keep medium-term and long-
Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023
term interest rates high at least through CY 2024 and the City will continue to earn high rates on the longer-term portion of the investment portfolio.
On a long-term basis, the City’s earned rate is expected to be above the City’s benchmark (State LAIF) and the City’s return is expected to be comparable to rates earned by most other cities in California. A sample of rates earned by Northern and Southern California cities is reflected in table 3 below (previously only Northern California cities were included):
Table 4
Other California Cities
Earned Interest Rates
For the Quarter Ending June 30, 2023
City Rates Earned
Oakland 4.02%
Burbank 3.06%
Berkeley 3.06%
San Diego 2.94%
San Francisco 2.93%
San Jose 2.86%
Fremont 2.59%
Sacramento 2.57%
Palo Alto 2.31%
BACKGROUND
Pooled Investments
Short-term cash is invested primarily in government sponsored enterprises (referred to as Federal Agency securities) notes, medium-term corporate notes and municipal securities for periods of one to ten years. Additional cash is invested in a money market fund or overnight securities to meet the liquidity needs of the City.
In some cases, the City may have investments with a current market value that is greater or less than the recorded cost. These changes in market value are due to fluctuations in the market and have no effect on yield, as the City does not intend to sell securities prior to maturity.
Retiree Health Trust Fund Investments
The City agreed to provide retiree Health insurance coverage for fire, police and miscellaneous employees under certain terms and conditions. An actuarial study commissioned by the City many years ago determined that, in addition to City Contributions, an average rate of return of 7% on miscellaneous employees trust fund assets invested must be achieved to fund the retiree health benefit at the desired 70% level. Primarily as a result of the Federal Reserve Board’s decision to keep short-term
Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023
rates near zero from 2008 to March 2020, the average rate currently earned is significantly below that 7% level. City Finance Department staff manages these investment portfolios.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental effects or opportunities associated with the subject of this report.
CONTACT PERSON
Henry Oyekanmi, Director, Finance Department, 981-7326
ATTACHMENTS
1. Portfolio Evaluation FY 2023 Fourth Quarter
2. Investment Report Analysis FY 2023 Fourth Quarter
a. Exhibit 2-A: Pooled Cash and Investments
b. Exhibit 2-B.1 through 2-B.3: Interest Earnings April 1, 2023 – June 30, 2023 c. Exhibit 2-C: Book Value By Investment Type
d. Exhibit 2-D: Current Holdings vs. Policy Limits
e. Exhibit 2-E: Investment Portfolio Trend
3. Summary of Pooled and Cash Investments FY 2023 Fourth Quarter –Trust Funds a. Exhibit 3-A: Retiree Medical Trust Funds –Misc.
b. Exhibit 3-B: Retiree Medical Trust Funds –Fire
c. Exhibit 3-C: Retiree Medical Trust Funds –Police
Attachment 1
Portfolio Evaluation
Quarter Ended June 30, 2023
Total Portfolio
Pooled Cash and Investments (COB) $ 712,329,294 667,712,171$ 657,109,639$ 595, 920,437$ Pooled Cash and Investments (Trust) 54,012,972 54,330,791 51,469,759 50,385, 235
Total Cash and Investments 766,342,266$ 722,042,962$ 708,579,398$ 646,305,672$ Average Life of Investment Portfolio
Pooled Investments (CoB) 1,286 1,322 1,323 1,337
Trust Investments 7.852 years 8.047 years 7.586 years 1.91 years Weighted Yield
Pooled Investments (CoB) 3.062% 2.761% 2.394% 1.830%
Trust Investments 5.063% 5.081% 4.670% 4.094%
Prime Rate 8.250% 8.000% 7.500% 6.250%
91-day Treasury Bill Rate 5.284% 4.693% 4.343% 3.247%
2-year Treasury Note Rate 4.895% 4.025% 4.426% 4.279%
Cash and Investments Maturity
Within one year 234,655,408$ 30.62% 208,919,256$ 28.93% 223,131,582$ 31.49% 199,265,720$ 30.83% Between 1 to 3 years 270,060,770 35.24% 103,151,808 14.29% 103,795,200 14.65% 89,762,997 13.89% Between 3 to 5 years 164,373,440 21.45% 317,003,276 43.90% 316,456,840 44.66% 314,751,739 48.70% Between 5 to 10 years 86,070,641 11.23% 81,672,587 11.31% 55,998,303 7.90% 42,525,217 6.58% Over 10 years 11,182,007 1.46% 11,296,035 1.56% 9,197,473 1.30% - 0.00% Total 766,342,266$ 100.00% 722,042,962$ 100.00% 708,579,398$ 100.00% 646,305,672$ 100.00% June 2023
QUARTER ENDING
September 2022December 2022March 2023
Attachment 2
Pension and OPEB
Investments Pooled Investments Trust Investments Total
Portfolio 561,955,219$ 46,292,
870$ 608,248,088$
Unrecognized gain/(loss) (35,173,305) (1,754,628) (36,927,933) Total Investments 526,781,913 44,538,242 571,320,155 Cash Pooled Cash
Pension and OPEB
Trust Cash Total
Cash with Fidelity Money Market 164,531,385 - 164,531,385 Cash with Fiscal Agents 255 - 255 Cash Deposits in Banks 30,490,471 - 30,490,471 Pooled Cash Adjustment (9,474,730) 9,474,730 - Total Cash 185,547,381 9,474,730 195,022,111 Adjusted Grand Total (All Cash and Investments) 712,329,294$ 54,012,972$ 766,342,266$ Pooled Cash Portfolio Breakdown As of June 30, 2023 Book Value Market Value Investments 561,955,219$ 526,781,913$
Note: The pooled cash includes Rent Board cash $6,132,610.
Investment Report Analysis
As of June 30, 2023
Exhibit 2-A
CUSIP Investment # Issuer Book Value Par Value Market Value Current
Rate
YTM/C
365
Maturity
Date
Days To
Maturity
Moody's
Rating
Certificates of Deposits
254673RD0 14539 Discover Bank 250,000.00 250,000.00 249,930.00 3.300 3.300 07/05/23 4 N/A 795450T47 14540 Sallie Mae Bank 250,000.00 250,000.00 249,957.50 3.300 3.300 07/03/23 2 N/A Subtotal and Average 500,000.00 500,000.00 499,887.50 3.300 3 Medium Term Notes
88579YAR2 14659 3M COMPANY 4,890,115.44 5,000,000.00 4,773,150.00 3.000 4.120 08/07/25 768 A2 008252AM0 14582 Affiliated Managers Group 1,011,480.12 1,000,000.00 986,810.00 4.250 2.300 02/15/24 229 A3 04685A2L4 14590 Athene Global Funding 5,965,446.49 5,950,000.00 5,557,954.50 2.500 2.320 01/14/25 563 A1 04685A2L4 14602 Athene Global Funding 4,946,978.23 5,000,000.00 4,670,550.00 2.500 3.250 01/14/25 563 A1 20030NBN0 14563 Comcast Corp 5,026,292.19 5,000,000.00 4,824,400.00 3.375 3.099 08/15/25 776 A3 233851CU6 14571 Daimler Finance 5,040,259.46 5,000,000.00 4,742,100.00 3.450 3.190 01/06/27 1,285 A2 233851CU6 14574 Daimler Finance 3,777,360.04 3,725,000.00 3,532,864.50 3.450 3.000 01/06/27 1,285 A2 24422EUM9 14554 John Deere Cap 5,004,498.58 5,
000,000.00 4,973,300.00 3.650 3.300 10/12/23 103 A2 24422EWK1 14663 John Deere Cap 4,981,158.18 5,000,000.00 4,878,950.00 4.150 4.250 09/15/27 1,537 A2 375558BF9 14570 Gilead Sciences 5,063,489.18 5,000,000.00 4, 810,050.00 3.650 3.117 03/01/26 974 A3
30303M8G0 14660 Meta Platforms Inc 4,841,841.07 5,000,000.00 4,747,150.00 3.500 4.360 08/15/27 1,506 A1 617446HD4 14670 Morgan Stanley 10,825,979.74 10,000,000.00 11,339,700.00 7.250 6.000 04/01/32 3,197 A1 68389XAS4 14548 Oracle Corp 5,000,401.15 5,000,000.00 4,994,450.00 3.625 3.387 07/15/23 14 BAA2 747525AT0 14564 Qualcomm Inc 4,993,873.01 5,000,000.00 4,890,900.00 2.900 3.049 05/20/24 324 A2 747525AU7 14587 Qualcomm Inc 6,134,782.38 5,963,000.00 5,646,424.33 3.250 2.432 05/20/27 1,419 A2 828807CS4 14606 Simon Property Group 4,998,532.57 5,000,000.00 4,846,400.00 3.375 3.352 10/01/24 458 A3 07330MAA5 14588 Truist Bank 5,219,470.62 5,000,000.00 4,555,550.00 3.800 2.365 10/30/26 1,217 A2 Subtotal and Average 87,721,958.45 86,
638,000.00 84,770,703.33 3.547 1,133
Federal Agency Coupon Securities
3133ENN22 14664 Federal Farm Credit Bank 4,985,432.59 5,000,000.00 4,891,950.00 3.750 3.890 09/22/25 814 AAA 3133ENP95 14666 Federal Farm Credit Bank 4,984,371.08 5,000,000.00 4,938,650.00 4.250 4.400 09/30/25 822 AAA 3133ENS50 14667 Federal Farm Credit Bank 4,999,335.65 5,000,000.00 4,953,700.00 4.125 4.128 10/14/27 1,566 AAA 3133ENN30 14668 Federal Farm Credit Bank 4,641,527.82 5,000,000.00 4,815,800.00 3.875 4.863 09/20/32 3,369 AAA 313
3ENV72 14669 Federal Farm Credit Bank 4,986,252.70 5,000,000.00 4,981,850.00 4.500 4.600 07/27/26 1,122 AAA 3133EPGG4 14686 Federal Farm Credit Bank 4,959,200.84 5,000,000.00 4,881,200.00 4.000 4.102 04/20/33 3,581 AAA 3133EPGS8 14687 Federal Farm Credit Bank 4,995,367.72 5,000,000.00 4,935,650.00 4.250 4.300 07/24/25 754 AAA 3130ATDK0 14661 Federal Home Loan Banks 4,997,678.67 5,000,000.00 4,967,300.00 3.875 3.989 12/08/23 160 AAA Subtotal and Average 39,549,167.07 40,000,000.00 39,366,100.00 4.279 1,505 Medium-Term Notes - Callable
05531FBF9 14561 BB&T Corporation 5,014,698.60 5,000,000.00 4, 951,600.00 3.750 3.012 12/06/23 158 A3
22553PWD7 14652 Credit Suisse AG 5,000,000.00 5,000,000.00 4,561,000.00 4.050 4.050 05/25/25 694 A3 22553PXJ3 14655 Credit Suisse AG 5,000,000.00 5, 000,000.00 4, 442,050.00 5. 000 5.001 05/31/32 3,257 A3 City of Berkeley
Pooled Cash and Investments
As of June 30, 2023
Exhibit 2-A
CUSIP Investment # Issuer Book Value Par Value Market Value Current
Rate
YTM/C
365
Maturity
Date
Days To
Maturity
Moody's
Rating
City of Berkeley
Pooled Cash and Investments
As of June 30, 2023
693475AV7 14557 PNC Financial Services 5,003,287.82 5, 000,000.00 4,937,050.00 3.500 3.425 01/23/24 206 A3 751212AC5 14566 Ralph Lauren 5,063,056.00 5,000,000.00 4,822,850.00 3.750 3.106 09/15/25 807 A3 91159HHU7 14562 US Bancorp 5,100,565.68 5,000,000.00 4,806,600.00 3.950 2.848 11/17/25 870 A3 91159HHM5 14684 US Bancorp 4,712,179.73 5,000,000.00 4,672,650.00 3.100 5.348 04/27/26 1,031 A3 Subtotal and Average 34,893,787.83 35,000,000.00 33,193,800.00 3.810 1,001 Federal Agency Callable
3133EN6K1 14676 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,783,150.00 4.220 4.220 01/23/30 2,398 AAA 3133EN6K1 14677 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,783,150.00 4.220 4.220 01/23/30 2,398 AAA 3133EPAJ4 14679 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,890,650.00 4.000 4.000 02/09/33 3,511 AAA 3130ARXL0 14649 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,815,700.00 3.000 3.000 11/25/24 513 AAA 3130ATH42 14665 Federal Home Loan Banks 8,000,000.00 8,000,000.00 7,942,080.00 4.700 4.700 09/29/27 1,551 AAA 3130AULM4 14678 Federal Home Loan Banks 5,000,000.00 5, 000,000.00 4,913,000.00 5.620 5.620 01/26/33 3,497 AAA 33,000,000.00 33,000,000.00 32,127,730.00 4.330 2,242 Federal Agency Continuously Callable
31422XJW3 14638 Farmer Mac 10,000,000.00 10,000,000.00 9,160,500.00 1.500 0.300 07/20/26 1,115 AAA 314
22XZ47 14681 Farmer Mac 5,000,000.00 5,000,000.00 4,927,650.00 5.675 5.675 03/20/30 2,454 AAA 3133ENUV0 14644 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,639,000.00 4.000 4.000 04/19/32 3,215 AAA 3133ENVV9 14647 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,794,200.00 3.630 3.630 05/03/27 1,402 AAA 3133ENWW6 14653 Federal Farm Credit Bank 4,995,109.07 5,000,000.00 4,712,250.00 4.370 4.384 05/17/32 3,243 AAA 3133EN5C0 14675 Federal Farm Credit Bank 4,994,506.02 5,000,000.00 4,897,850.00 5.370 5.394 12/27/28 2,006 AAA 3133EPEK7 14682 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,890,450.00 4.620 4.620 04/03/25 642 AAA 3130AMAV4 14611 Federal Home Loan Banks 5,600,000.00 5,600,000.00 4,967,704.00 1.250 1.125 04/29/27 1,398 AAA 3130ALZA5 14612 Federal Home Loan Banks 9,000,000.00 9, 000,000.00 8,238,330.00 1.000 0.500 04/29/26 1,033 AAA 3130AMEX6 14613 Federal Home Loan Banks 15,000,000.00 15,000,000.00 13,786,050.00 1.000 0.555 05/27/26 1,061 AAA 3130AMF72 14615 Federal Home Loan Banks 15,000,000.00 15,000,000.00 13,614,150.00 1.300 1.040 05/27/26 1,061 AAA 3130AMFQ0 14616 Federal Home Loan Banks 15,000,000.00 15,000,000.00 13,554,750.00 1.150 1.020 05/26/26 1,060 AAA 3130AMFT4 14617 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,062,700.00 0.625 0.625 05/27/26 1,061 AAA 3130AMG22 14618 Fed
eral Home Loan Banks 20,000,000.00 20,000,000.00 18,211,000.00 0.900 0.500 05/27/26 1,061 AAA 3130AMGG1 14619 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,148,800.00 0.600 0.600 05/26/26 1,060 AAA 3130AMFN7 14620 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,161,900.00 0.750 0.500 05/26/26 1,060 AAA 3130AMG55 14622 Federal Home Loan Banks 10,000,000.00 10,000,000.00 8,900,900.00 1.375 1.219 05/27/27 1,426 AAA 3130AMG22 14624 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,105,500.00 0.900 0.500 05/27/26 1,061 AAA 3130AMLS9 14627 Federal Home Loan Banks 10,000,000.00 10, 000,000.00 9,133,900.00 1.000 0.875 06/17/26 1,082 AAA 3130AMN24 14628 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,027,200.00 1.150 1.034 06/03/26 1,068 AAA 3130AMN57 14629 Federal Home Loan Banks 20,000,000.00 20,000,000.00 18,037,200.00 1.100 1.013 06/03/26 1,068 AAA 3130AMP71 14630 Federal Home Loan Banks 20,000,000.00 20,000,000.00 18,062,000.00 1.200 1.077 06/18/26 1,083 AAA 3130AMPL0 14631 Federal Home Loan Banks 15,000,000.00 15,000,000.00 13,535,850.00 1.150 0.375 06/08/26 1,073 AAA 3130AMMW9 14632 Federal Home Loan Banks 10,000,000.00 10, 000,000.00 9, 122,300.00 1. 500 0.500 06/10/26 1,075 AAA
Exhibit 2-A
CUSIP Investment # Issuer Book Value Par Value Market Value Current
Rate
YTM/C
365
Maturity
Date
Days To
Maturity
Moody's
Rating
City of Berkeley
Pooled Cash and Investments
As of June 30, 2023
3130AMWM0 14634 Fed eral Home Loan Banks 4,250,000.00 4, 250,000.00 3,819,517.50 1.050 0.500 06/30/26 1,095 AAA 3130AN5U0 14642 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,124,500.00 0.875 0.500 07/29/26 1,124 AAA 3130ANJY7 14643 Federal Home Loan Banks 40,000,000.00 40,000,000.00 35,740,000.00 1.000 0.400 08/26/26 1,152 AAA 3130ARTE1 14645 Federal Home Loan Banks 6,425,000.00 6,425,000.00 5,988,871.00 4.100 4.100 04/26/32 3,222 AAA 3130ARX71 14648 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,802,450.00 3.000 3.000 05/23/25 692 AAA 3130ARYA3 14651 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,833,050.00 4.000 4.000 05/26/27 1,425 AAA 3130AS7K9 14654 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,699,850.00 4.440 4.440 05/26/32 3,252 AAA 3130ASGF0 14656 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,882,300.00 4.000 4.000 06/30/25 730 AAA 3130ATDV6 14662 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,918,150.00 5.000 5.000 09/30/27 1,552 AAA 3134GXRS5 14646 Federal Home Loan Mortgage Co 5,000,000.00 5,000,000.00 4,794,200.00 3.100 3.100 04/29/25 668 AAA 313
4GXC28 14657 Federal Home Loan Mortgage Co 5,000,000.00 5,000,000.00 4,869,800.00 4.100 4.100 07/18/25 748 AAA 3134GXC36 14658 Federal Home Loan Mortgage Co 5,000,000.00 5,000,000.00 4,894,250.00 4.000 4.000 12/30/24 548 AAA 3134GYPL0 14685 Fed
eral Home Loan Mortgage Co 5,000,000.00 5,000,000.00 4,938,350.00 5.250 5.251 05/01/28 1,766 AAA 360,264,615.09 360,275,000.00 330,997,422.50 1.503 1,248 Continuous Callable Bonds
06051GLG2 14688 Bank of America Corporation 1,000,000.00 1,000,000.00 989,070.00 5.202 5.202 04/25/29 2,125 A1 Subtotal and Average 1,000,000.00 1,000,000.00 989,070.00 5.202 2,125 Municipal Bonds
13063DGB8 14559 General Obligation Unlimited 5,025,690.28 5,000,000.00 4,837,200.00 3.375 3.087 04/01/25 640 AA2 Subtotal and Average 5,025,690.28 5,000,000.00 4,837,200.00 3.087 640 Total Investments and Average 561,955,218.72 561,413,000.00 526,781,913.33 2.349 1,286 Total Investments (Book Value) 561,955,218.72
Cash 185,547,381.00
Total Investments (Book Value) and Cash 747,502,599.72
Increase / (Decrease) in Market Value of Securities (35,173,305.39) Total Investments (Market Value) and Cash 712,329,294.33
Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.1
Sorted by Fund - Fund
April 1, 2023 - April 30, 2023
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.065010 4,250,000.003130AMWM0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMPL0 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.217010 20,000,000.003130AMP71 10,000,000.0014632 10,000,000.00 1.000MC5 06/10/2026 8,333.33 0.00 8,333.331.014010 10,000,000.003130AMMW9 10,000,000.0014642 10,000,000.00 0.875MC5 07/29/2026 7,291.67 0.00 7,291.670.887010 10,000,000.003130AN5U0 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.33 0.00 33,333.331.014010 40,000,000.003130ANJY7 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.67 0.00 16,666.674.056010 5,000,000.003130ARYA3 5,000,000.0014649 5,000,000.00 3.000MC4 11/25/2024 12,500.00 0.00 12,500.003.042010 5,000,000.003130ARXL0 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.08 0.00 21,952.084.157010 6,425,000.003130ARTE1 5,000,000.0014648 5,000,000.00 3.000MC5 05/23/2025 12,500.00 0.00 12,500.003.042010 5,000,000.003130ARX71 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.33 0.00 18,333.331.115010 20,000,000.003130AMN57 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.33 0.00 9,583.331.166010 10,000,000.003130AMN24 9,000,000.0014612 9,000,000.00 1.000MC5 04/29/2026 5,750.00 0.00 5,750.000.777010 9,000,000.003130ALZA5 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.33 0.00 5,833.331.267010 5,600,000.003130AMAV4 15,000,000.0014613 15,000,000.00 0.750MC5 05/27/2026 9,375.00 0.00 9,375.000.760010 15,000,000.003130AMEX6 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMFQ0 15,000,000.0014615 15,000,000.00 0.650MC5 05/27/2026 8,125.00 0.00 8,125.000.659010 15,000,000.003130AMF72 10,000,000.0014624 10,000,000.00 0.800MC5 05/27/2026 6,666.67 0.00 6,666.670.811010 10,000,000.003130AMG22 10,000,000.0014627 10,000,000.00 0.875MC5 06/17/2026 7,291.67 0.00 7,291.670.887010 10,000,000.003130AMLS9 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.33 0.00 11,458.331.394010 10,000,000.003130AMG55 10,000,000.0014619 10,000,000.00 0.600MC5 05/26/2026 5,000.00 0.00 5,000.000.608010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 0.750MC5 05/26/2026 6,250.00 0.00 6,250.000.760010 10,000,000.003130AMFN7 10,000,000.0014617 10,000,000.00 0.625MC5 05/27/2026 5,208.33 0.00 5,208.330.634010 10,000,000.003130AMFT4 20,000,000.0014618 20,000,000.00 0.800MC5 05/27/2026 13,333.33 0.00 13,333.330.811010 20,000,000.003130AMG22 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.502010 5,000,000.003130AS7K9 5,000,000.0014656 5,000,000.00 4.000MC5 06/30/2025 16,666.67 0.00 16,666.674.056010 5,000,000.003130ASGF0 4,996,577.1414661 5,000,000.00 3.875FAC 12/08/2023 16,145.83 443.56 16,589.394.040010 4,996,347.973130ATDK0 5,000,000.0014678 5,000,000.00 5.620MC4 01/26/2033 23,416.67 0.00 23,416.675.698010 5,000,000.003130AULM4 8,000,000.0014665 8,000,000.00 4.700MC4 09/29/2027 31,333.33 0.00 31,333.334.765010 8,000,000.003130ATH42 5,000,000.0014662 5,000,000.00 5.000MC5 09/30/2027 20,833.33 0.00 20,833.335.069010 5,000,000.003130ATDV6
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.1
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
April 1, 2023 - April 30, 2023
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
1,165,494.1514687 5,000,000.00 4.250FAC 07/24/2025 4,131.94 43.64 4,175.584.359010 0.003133EPGS8 1,818,098.1014686 5,000,000.00 4.000FAC 04/20/2033 6,111.11 127.17 6,238.284.175010 0.003133EPGG4 4,994,995.0614653 5,000,000.00 4.370MC5 05/17/2032 18,208.33 45.91 18,254.244.446010 4,994,971.343133ENWW6 4,666,666.6714682 5,000,000.00 4.620MC5 04/03/2025 17,966.67 0.00 17,966.674.684010 0.003133EPEK7 4,984,077.7014664 5,000,000.00 3.750FAC 09/22/2025 15,625.00 545.60 16,170.603.947010 4,983,795.803133ENN22 4,985,326.6914669 5,000,000.00 4.500FAC 07/27/2026 18,750.00 372.90 19,122.904.667010 4,985,134.023133ENV72 4,633,481.3714668 5,000,000.00 3.875FAC 09/20/2032 16,145.83 3,240.19 19,386.025.090010 4,631,807.273133ENN30 4,994,298.8914675 5,000,000.00 5.370MC5 12/27/2028 22,375.00 83.41 22,458.415.471010 4,994,255.793133EN5C0 5,000,000.0014644 5,000,000.00 4.000MC5 04/19/2032 16,666.67 0.00 16,666.674.056010 5,000,000.003133ENUV0 5,000,000.0014676 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.279010 5,000,000.003133EN6K1 4,982,931.8314666 5,000,000.00 4.250FAC 09/30/2025 17,708.33 579.56 18,287.894.465010 4,982,632.393133ENP95 4,999,303.5814667 5,000,000.00 4.125FAC 10/14/2027 17,187.50 12.92 17,200.424.186010 4,999,296.903133ENS50 5,000,000.0014650 5,000,000.00 2.030FAC 05/02/2023 8,458.33 0.00 8,458.332.058010 5,000,000.003133ENVS6 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.67 0.00 16,666.674.056010 5,000,000.003133EPAJ4 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.279010 5,000,000.003133EN6K1 5,000,000.0014647 5,000,000.00 3.630MC5 05/03/2027 15,125.00 0.00 15,125.003.680010 5,000,000.003133ENVV9 5,000,000.0014658 5,000,000.00 4.000MC5 12/30/2024 16,666.67 0.00 16,666.674.056010 5,000,000.003134GXC36 5,000,000.0014657 5,000,000.00 4.100MC5 07/18/2025 17,083.33 0.00 17,083.334.157010 5,000,000.003134GXC28 5,000,000.0014646 5,000,000.00 3.100MC5 04/29/2025 12,916.67 0.00 12,916.673.143010 5,000,000.003134GXRS5 10,845,514.8214670 10,000,000.00 7.250MTN 04/01/2032 60,416.67 -7,866.48 52,550.195.895010 10,849,579.17617446HD4 200,000.0014688 1,000,000.00 5.202MC6 04/25/2029 867.00 0.00 867.005.274010 0.0006051GLG2 4,998,262.5514536 5,000,000.00 2.400MTN 05/03/2023 10,000.00 3,158.99 13,158.993.203010 4,996,630.41037833AK6 5,000,000.0014681 5,000,000.00 5.675MC5 03/20/2030 23,645.83 0.00 23,645.835.754010 5,000,000.0031422XZ47 10,000,000.0014638 10,000,000.00 1.500MC5 07/20/2026 12,500.00 0.00 12,500.001.521010 10,000,000.0031422XJW3 5,002,535.8414548 5,000,000.00 3.625MTN 07/15/2023 15,104.17 -859.61 14,244.563.464010 5,002,979.9768389XAS4 5,007,816.8514554 5,000,000.00 3.650MTN 10/12/2023 15,208.33 -1,336.21 13,872.123.370010 5,008,507.2224422EUM9 4,980,231.0314663 5,000,000.00 4.150MTN 09/15/2027 17,291.67 373.35 17,665.024.316010 4,980,038.1324422EWK1 4,997,346.8714555 5,000,000.00 2.625MTN 05/15/2023 10,937.50 2,792.78 13,730.283.343010 4,995,903.93540424AQ1 5,004,500.4014557 5,000,000.00 3.500MC3 01/23/2024 14,583.33 -488.29 14,095.043.427010 5,004,752.69693475AV7 5,028,728.2614559 5,000,000.00 3.375MUN 04/01/2025 14,062.50 -1,223.34 12,839.163.106010 5,029,360.3213063DGB8 5,021,763.4014561 5,000,000.00 3.750MC3 12/06/2023 15,625.00 -2,844.89 12,780.113.096010 5,023,233.2605531FBF9 5,109,318.1814562 5,000,000.00 3.950MC3 11/17/2025 16,458.33 -3,524.50 12,933.833.080010 5,111,139.1791159HHU7 2,972,000.8214684 5,000,000.00 3.100MC3 04/27/2026 8,180.55 5,382.47 13,563.025.552010 0.0091159HHM5 5,028,856.0214563 5,000,000.00 3.375MTN 08/15/2025 14,062.50 -1,032.42 13,030.083.152010 5,029,389.4420030NBN0 6,143,930.1914587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.68 12,466.112.469010 6,145,833.43747525AU7 4,992,442.1014564 5,000,000.00 2.900MTN 05/20/2024 12,083.33 576.21 12,659.543.085010 4,992,144.39747525AT0 5,068,972.4614566 5,000,000.00 3.750MC3 09/15/2025 15,625.00 -2,382.47 13,242.533.179010 5,070,203.41751212AC5 r.
7. 3.
1 1
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.1
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
April 1, 2023 - April 30, 2023
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
5,068,416.2114570 5,000,000.00 3.650MTN 03/01/2026 15,208.33 -1,984.03 13,224.303.174010 5,069,441.29375558BF9 5,042,630.4714571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.77 13,420.233.238010 5,043,123.77233851CU6 3,780,443.6914574 3,725,000.00 3.450MTN 01/06/2027 10,709.38 -1,241.74 9,467.643.047010 3,781,085.26233851CU6 1,015,298.2814582 1,000,000.00 4.250MTN 02/15/2024 3,541.67 -1,537.52 2,004.152.402010 1,016,092.67008252AM0 5,233,107.4514588 5,000,000.00 3.800MTN 10/30/2026 15,833.33 -5,491.35 10,341.982.404010 5,235,944.6507330MAA5 5,967,527.4314590 5,950,000.00 2.500MTN 01/14/2025 12,395.83 -837.96 11,557.872.356010 5,967,960.3804685A2L4 4,939,835.1514602 5,000,000.00 2.500MTN 01/14/2025 10,416.67 2,876.41 13,293.083.274010 4,938,349.0104685A2L4 4,998,289.6314606 5,000,000.00 3.375MTN 10/01/2024 14,062.50 97.83 14,160.333.447010 4,998,239.08828807CS4 5,000,000.0014655 5,000,000.00 5.000MC3 05/31/2032 20,161.29 0.00 20,161.294.906010 5,000,000.0022553PXJ3 5,000,000.0014652 5,000,000.00 4.050MC3 05/25/2025 16,875.00 0.00 16,875.004.106010 5,000,000.0022553PWD7 4,879,286.8714659 5,000,000.00 3.000MTN 08/07/2025 12,500.00 4,360.50 16,860.504.204010 4,877,033.9488579YAR2 4,833,901.1514660 5,000,000.00 3.500MTN 08/15/2027 14,583.33 3,197.28 17,780.614.475010 4,832,249.2230303M8G0 8,250,666.6714683 10,000,000.00 4.960ACP 06/30/2023 0.00 34,444.44 34,444.445.079010 0.0024422MTW1 580,913,000.00Subtotal 569,907,873.96 2.511 1,176,039.3825,465.861,150,573.52550,842,455.69 Fund: Fidelity MM - Trans
14,152,819.9014190 14,206,591.02 0.002RRP 55,625.30 0.00 55,625.304.782030 14,150,965.72SYS14190 14,206,591.02Subtotal 14,152,819.90 4.782 55,625.300.0055,625.3014,150,965.72 Fund: Fidelity MM - Regular
135,519,846.0714265 156,337,356.37 0.003RRP 528,458.93 0.00 528,458.934.744040 123,908,897.44SYS14265 156,337,356.37Subtotal 135,519,846.07 4.744 528,458.930.00528,458.93123,908,897.44 751,456,947.39Total 719,580,539.93 2.976 1,760,123.6125,465.861,734,657.75688,902,318.85
Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.2
Sorted by Fund - Fund
May 1, 2023 - May 31, 2023
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.030010 4,250,000.003130AMWM0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.128010 15,000,000.003130AMPL0 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.177010 20,000,000.003130AMP71 10,000,000.0014632 10,000,000.00 1.000MC5 06/10/2026 8,333.33 0.00 8,333.330.981010 10,000,000.003130AMMW9 10,000,000.0014642 10,000,000.00 0.875MC5 07/29/2026 7,291.67 0.00 7,291.670.859010 10,000,000.003130AN5U0 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.33 0.00 33,333.330.981010 40,000,000.003130ANJY7 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.67 0.00 16,666.673.925010 5,000,000.003130ARYA3 5,000,000.0014649 5,000,000.00 3.000MC4 11/25/2024 12,500.00 0.00 12,500.002.944010 5,000,000.003130ARXL0 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.08 0.00 21,952.084.023010 6,425,000.003130ARTE1 5,000,000.0014648 5,000,000.00 3.000MC5 05/23/2025 12,500.00 0.00 12,500.002.944010 5,000,000.003130ARX71 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.33 0.00 18,333.331.079010 20,000,000.003130AMN57 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.33 0.00 9,583.331.128010 10,000,000.003130AMN24 9,000,000.0014612 9,000,000.00 1.000MC5 04/29/2026 7,500.00 0.00 7,500.000.981010 9,000,000.003130ALZA5 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.33 0.00 5,833.331.226010 5,600,000.003130AMAV4 15,000,000.0014613 15,000,000.00 1.000MC5 05/27/2026 9,791.67 0.00 9,791.670.769010 15,000,000.003130AMEX6 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.128010 15,000,000.003130AMFQ0 15,000,000.0014615 15,000,000.00 1.300MC5 05/27/2026 9,208.33 0.00 9,208.330.723010 15,000,000.003130AMF72 10,000,000.0014624 10,000,000.00 0.900MC5 05/27/2026 6,777.78 0.00 6,777.780.798010 10,000,000.003130AMG22 10,000,000.0014627 10,000,000.00 0.875MC5 06/17/2026 7,291.67 0.00 7,291.670.859010 10,000,000.003130AMLS9 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.33 0.00 11,458.331.349010 10,000,000.003130AMG55 10,000,000.0014619 10,000,000.00 0.600MC5 05/26/2026 5,000.00 0.00 5,000.000.589010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 0.750MC5 05/26/2026 6,250.00 0.00 6,250.000.736010 10,000,000.003130AMFN7 10,000,000.0014617 10,000,000.00 0.625MC5 05/27/2026 5,208.33 0.00 5,208.330.613010 10,000,000.003130AMFT4 20,000,000.0014618 20,000,000.00 0.900MC5 05/27/2026 13,555.56 0.00 13,555.560.798010 20,000,000.003130AMG22 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.356010 5,000,000.003130AS7K9 5,000,000.0014656 5,000,000.00 4.000MC5 06/30/2025 16,666.67 0.00 16,666.673.925010 5,000,000.003130ASGF0 4,997,027.6314661 5,000,000.00 3.875FAC 12/08/2023 16,145.83 443.57 16,589.403.909010 4,996,791.533130ATDK0 5,000,000.0014678 5,000,000.00 5.620MC4 01/26/2033 23,416.67 0.00 23,416.675.514010 5,000,000.003130AULM4 8,000,000.0014665 8,000,000.00 4.700MC4 09/29/2027 31,333.33 0.00 31,333.334.612010 8,000,000.003130ATH42 5,000,000.0014662 5,000,000.00 5.000MC5 09/30/2027 20,833.33 0.00 20,833.334.906010 5,000,000.003130ATDV6
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.2
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
May 1, 2023 - May 31, 2023
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,995,093.1914687 5,000,000.00 4.250FAC 07/24/2025 17,708.33 187.04 17,895.374.218010 4,994,993.643133EPGS8 4,958,691.7814686 5,000,000.00 4.000FAC 04/20/2033 16,666.67 346.84 17,013.514.040010 4,958,507.173133EPGG4 4,995,041.6914653 5,000,000.00 4.370MC5 05/17/2032 18,208.33 45.91 18,254.244.303010 4,995,017.253133ENWW6 5,000,000.0014682 5,000,000.00 4.620MC5 04/03/2025 19,250.00 0.00 19,250.004.533010 5,000,000.003133EPEK7 4,984,631.8014664 5,000,000.00 3.750FAC 09/22/2025 15,625.00 545.60 16,170.603.820010 4,984,341.403133ENN22 4,985,705.3914669 5,000,000.00 4.500FAC 07/27/2026 18,750.00 372.89 19,122.894.516010 4,985,506.923133ENV72 4,636,772.0714668 5,000,000.00 3.875FAC 09/20/2032 16,145.83 3,240.18 19,386.014.923010 4,635,047.463133ENN30 4,994,383.6014675 5,000,000.00 5.370MC5 12/27/2028 22,375.00 83.41 22,458.415.295010 4,994,339.203133EN5C0 5,000,000.0014644 5,000,000.00 4.000MC5 04/19/2032 16,666.67 0.00 16,666.673.925010 5,000,000.003133ENUV0 5,000,000.0014676 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.141010 5,000,000.003133EN6K1 4,983,519.8114666 5,000,000.00 4.250FAC 09/30/2025 17,708.33 579.56 18,287.894.321010 4,983,211.953133ENP95 4,999,316.6914667 5,000,000.00 4.125FAC 10/14/2027 17,187.50 12.92 17,200.424.051010 4,999,309.823133ENS50 161,290.3214650 0.00 2.030FAC 05/02/2023 281.94 0.00 281.942.058010 5,000,000.003133ENVS6 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.67 0.00 16,666.673.925010 5,000,000.003133EPAJ4 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.141010 5,000,000.003133EN6K1 5,000,000.0014647 5,000,000.00 3.630MC5 05/03/2027 15,125.00 0.00 15,125.003.562010 5,000,000.003133ENVV9 5,000,000.0014658 5,000,000.00 4.000MC5 12/30/2024 16,666.67 0.00 16,666.673.925010 5,000,000.003134GXC36 5,000,000.0014657 5,000,000.00 4.100MC5 07/18/2025 17,083.33 0.00 17,083.334.023010 5,000,000.003134GXC28 5,000,000.0014646 5,000,000.00 3.100MC5 04/29/2025 12,916.67 0.00 12,916.673.042010 5,000,000.003134GXRS5 5,000,000.0014685 5,000,000.00 5.250MC5 05/01/2028 21,875.00 0.00 21,875.005.151010 0.003134GYPL0 10,837,525.7014670 10,000,000.00 7.250MTN 04/01/2032 60,416.67 -7,866.47 52,550.205.709010 10,841,712.69617446HD4 1,000,000.0014688 1,000,000.00 5.202MC6 04/25/2029 4,335.00 0.00 4,335.005.104010 1,000,000.0006051GLG2 322,577.2514536 0.00 2.400MTN 05/03/2023 666.67 210.60 877.273.202010 4,999,789.40037833AK6 5,000,000.0014681 5,000,000.00 5.675MC5 03/20/2030 23,645.83 0.00 23,645.835.568010 5,000,000.0031422XZ47 10,000,000.0014638 10,000,000.00 1.500MC5 07/20/2026 12,500.00 0.00 12,500.001.472010 10,000,000.0031422XJW3 5,001,662.8314548 5,000,000.00 3.625MTN 07/15/2023 15,104.17 -859.60 14,244.573.353010 5,002,120.3668389XAS4 5,006,459.8014554 5,000,000.00 3.650MTN 10/12/2023 15,208.33 -1,336.21 13,872.123.262010 5,007,171.0124422EUM9 4,980,610.2014663 5,000,000.00 4.150MTN 09/15/2027 17,291.67 373.35 17,665.024.176010 4,980,411.4824422EWK1 2,257,791.2514555 0.00 2.625MTN 05/15/2023 5,104.17 1,303.29 6,407.463.341010 4,998,696.71540424AQ1 5,004,004.5014557 5,000,000.00 3.500MC3 01/23/2024 14,583.33 -488.29 14,095.043.316010 5,004,264.40693475AV7 5,027,485.8414559 5,000,000.00 3.375MUN 04/01/2025 14,062.50 -1,223.35 12,839.153.007010 5,028,136.9813063DGB8 5,018,874.1614561 5,000,000.00 3.750MC3 12/06/2023 15,625.00 -2,844.89 12,780.112.998010 5,020,388.3705531FBF9 5,105,738.7314562 5,000,000.00 3.950MC3 11/17/2025 16,458.33 -3,524.49 12,933.842.983010 5,107,614.6791159HHU7 4,699,705.9314684 5,000,000.00 3.100MC3 04/27/2026 12,916.67 8,498.63 21,415.305.365010 4,695,182.4791159HHM5 5,027,807.5114563 5,000,000.00 3.375MTN 08/15/2025 14,062.50 -1,032.41 13,030.093.051010 5,028,357.0220030NBN0 6,140,189.0814587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.69 12,466.102.390010 6,142,149.75747525AU7 4,993,027.2914564 5,000,000.00 2.900MTN 05/20/2024 12,083.33 576.20 12,659.532.985010 4,992,720.60747525AT0
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.2
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
May 1, 2023 - May 31, 2023
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
5,066,552.8514566 5,000,000.00 3.750MC3 09/15/2025 15,625.00 -2,382.47 13,242.533.077010 5,067,820.94751212AC5 5,066,401.2414570 5,000,000.00 3.650MTN 03/01/2026 15,208.33 -1,984.04 13,224.293.073010 5,067,457.26375558BF9 5,041,660.8214571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.77 13,420.233.134010 5,042,169.00233851CU6 3,779,182.5914574 3,725,000.00 3.450MTN 01/06/2027 10,709.38 -1,241.74 9,467.642.950010 3,779,843.52233851CU6 1,013,736.8014582 1,000,000.00 4.250MTN 02/15/2024 3,541.67 -1,537.52 2,004.152.328010 1,014,555.15008252AM0 5,227,536.4014588 5,000,000.00 3.800MTN 10/30/2026 15,833.33 -5,491.34 10,341.992.329010 5,230,453.3007330MAA5 5,966,676.4014590 5,950,000.00 2.500MTN 01/14/2025 12,395.83 -837.97 11,557.862.281010 5,967,122.4204685A2L4 4,942,756.4114602 5,000,000.00 2.500MTN 01/14/2025 10,416.67 2,876.40 13,293.073.167010 4,941,225.4204685A2L4 4,998,388.9814606 5,000,000.00 3.375MTN 10/01/2024 14,062.50 97.83 14,160.333.336010 4,998,336.91828807CS4 5,000,000.0014655 5,000,000.00 5.000MC3 05/31/2032 20,855.73 0.00 20,855.734.911010 5,000,000.0022553PXJ3 5,000,000.0014652 5,000,000.00 4.050MC3 05/25/2025 16,875.00 0.00 16,875.003.974010 5,000,000.0022553PWD7 4,883,715.3514659 5,000,000.00 3.000MTN 08/07/2025 12,500.00 4,360.50 16,860.504.065010 4,881,394.4488579YAR2 4,837,148.2814660 5,000,000.00 3.500MTN 08/15/2027 14,583.33 3,197.28 17,780.614.328010 4,835,446.5030303M8G0 9,939,377.7814683 10,000,000.00 4.960ACP 06/30/2023 0.00 42,711.11 42,711.115.060010 9,917,333.3324422MTW1 570,913,000.00Subtotal 574,153,067.90 2.501 1,219,776.5132,773.861,187,002.65581,393,940.44 Fund: Fidelity MM - Trans
14,210,468.0414190 14,266,684.81 0.002RRP 60,093.79 0.00 60,093.794.979030 14,206,591.02SYS14190 14,266,684.81Subtotal 14,210,468.04 4.979 60,093.790.0060,093.7914,206,591.02 Fund: Fidelity MM - Regular
152,158,134.2114265 152,781,469.53 0.003RRP 644,113.16 0.00 644,113.164.984040 156,337,356.37SYS14265 152,781,469.53Subtotal 152,158,134.21 4.984 644,113.160.00644,113.16156,337,356.37 737,961,154.34Total 740,521,670.16 3.059 1,923,983.4632,773.861,891,209.60751,937,887.83
Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.3
Sorted by Fund - Fund
June 1, 2023 - June 30, 2023
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.065010 4,250,000.003130AMWM0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMPL0 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.217010 20,000,000.003130AMP71 10,000,000.0014632 10,000,000.00 1.500MC5 06/10/2026 11,250.00 0.00 11,250.001.369010 10,000,000.003130AMMW9 10,000,000.0014642 10,000,000.00 0.875MC5 07/29/2026 7,291.67 0.00 7,291.670.887010 10,000,000.003130AN5U0 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.33 0.00 33,333.331.014010 40,000,000.003130ANJY7 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.67 0.00 16,666.674.056010 5,000,000.003130ARYA3 5,000,000.0014649 5,000,000.00 3.000MC4 11/25/2024 12,500.00 0.00 12,500.003.042010 5,000,000.003130ARXL0 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.08 0.00 21,952.084.157010 6,425,000.003130ARTE1 5,000,000.0014648 5,000,000.00 3.000MC5 05/23/2025 12,500.00 0.00 12,500.003.042010 5,000,000.003130ARX71 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.33 0.00 18,333.331.115010 20,000,000.003130AMN57 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.33 0.00 9,583.331.166010 10,000,000.003130AMN24 9,000,000.0014612 9,000,000.00 1.000MC5 04/29/2026 7,500.00 0.00 7,500.001.014010 9,000,000.003130ALZA5 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.33 0.00 5,833.331.267010 5,600,000.003130AMAV4 15,000,000.0014613 15,000,000.00 1.000MC5 05/27/2026 12,500.00 0.00 12,500.001.014010 15,000,000.003130AMEX6 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMFQ0 15,000,000.0014615 15,000,000.00 1.300MC5 05/27/2026 16,250.00 0.00 16,250.001.318010 15,000,000.003130AMF72 10,000,000.0014624 10,000,000.00 0.900MC5 05/27/2026 7,500.00 0.00 7,500.000.913010 10,000,000.003130AMG22 10,000,000.0014627 10,000,000.00 1.000MC5 06/17/2026 7,777.78 0.00 7,777.780.946010 10,000,000.003130AMLS9 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.33 0.00 11,458.331.394010 10,000,000.003130AMG55 10,000,000.0014619 10,000,000.00 0.600MC5 05/26/2026 5,000.00 0.00 5,000.000.608010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 0.750MC5 05/26/2026 6,250.00 0.00 6,250.000.760010 10,000,000.003130AMFN7 10,000,000.0014617 10,000,000.00 0.625MC5 05/27/2026 5,208.33 0.00 5,208.330.634010 10,000,000.003130AMFT4 20,000,000.0014618 20,000,000.00 0.900MC5 05/27/2026 15,000.00 0.00 15,000.000.913010 20,000,000.003130AMG22 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.502010 5,000,000.003130AS7K9 5,000,000.0014656 5,000,000.00 4.000MC5 06/30/2025 16,666.67 0.00 16,666.674.056010 5,000,000.003130ASGF0 4,997,464.2814661 5,000,000.00 3.875FAC 12/08/2023 16,145.83 443.57 16,589.404.039010 4,997,235.103130ATDK0 5,000,000.0014678 5,000,000.00 5.620MC4 01/26/2033 23,416.67 0.00 23,416.675.698010 5,000,000.003130AULM4 8,000,000.0014665 8,000,000.00 4.700MC4 09/29/2027 31,333.33 0.00 31,333.334.765010 8,000,000.003130ATH42 5,000,000.0014662 5,000,000.00 5.000MC5 09/30/2027 20,833.33 0.00 20,833.335.069010 5,000,000.003130ATDV6
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.3
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
June 1, 2023 - June 30, 2023
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,995,277.3114687 5,000,000.00 4.250FAC 07/24/2025 17,708.33 187.04 17,895.374.359010 4,995,180.683133EPGS8 4,959,033.2014686 5,000,000.00 4.000FAC 04/20/2033 16,666.67 346.83 17,013.504.174010 4,958,854.013133EPGG4 4,995,086.8814653 5,000,000.00 4.370MC5 05/17/2032 18,208.33 45.91 18,254.244.446010 4,995,063.163133ENWW6 5,000,000.0014682 5,000,000.00 4.620MC5 04/03/2025 19,250.00 0.00 19,250.004.684010 5,000,000.003133EPEK7 4,985,168.8914664 5,000,000.00 3.750FAC 09/22/2025 15,625.00 545.59 16,170.593.947010 4,984,887.003133ENN22 4,986,072.4714669 5,000,000.00 4.500FAC 07/27/2026 18,750.00 372.89 19,122.894.666010 4,985,879.813133ENV72 4,639,961.7314668 5,000,000.00 3.875FAC 09/20/2032 16,145.83 3,240.18 19,386.015.083010 4,638,287.643133ENN30 4,994,465.7114675 5,000,000.00 5.370MC5 12/27/2028 22,375.00 83.41 22,458.415.471010 4,994,422.613133EN5C0 5,000,000.0014644 5,000,000.00 4.000MC5 04/19/2032 16,666.67 0.00 16,666.674.056010 5,000,000.003133ENUV0 5,000,000.0014676 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.279010 5,000,000.003133EN6K1 4,984,090.9614666 5,000,000.00 4.250FAC 09/30/2025 17,708.33 579.57 18,287.904.464010 4,983,791.513133ENP95 4,999,329.4114667 5,000,000.00 4.125FAC 10/14/2027 17,187.50 12.91 17,200.414.186010 4,999,322.743133ENS50 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.67 0.00 16,666.674.056010 5,000,000.003133EPAJ4 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.279010 5,000,000.003133EN6K1 5,000,000.0014647 5,000,000.00 3.630MC5 05/03/2027 15,125.00 0.00 15,125.003.680010 5,000,000.003133ENVV9 5,000,000.0014658 5,000,000.00 4.000MC5 12/30/2024 16,666.67 0.00 16,666.674.056010 5,000,000.003134GXC36 5,000,000.0014657 5,000,000.00 4.100MC5 07/18/2025 17,083.33 0.00 17,083.334.157010 5,000,000.003134GXC28 5,000,000.0014646 5,000,000.00 3.100MC5 04/29/2025 12,916.67 0.00 12,916.673.143010 5,000,000.003134GXRS5 5,000,000.0014685 5,000,000.00 5.250MC5 05/01/2028 21,875.00 0.00 21,875.005.323010 5,000,000.003134GYPL0 10,829,781.8714670 10,000,000.00 7.250MTN 04/01/2032 60,416.67 -7,866.48 52,550.195.904010 10,833,846.22617446HD4 1,000,000.0014688 1,000,000.00 5.202MC6 04/25/2029 4,335.00 0.00 4,335.005.274010 1,000,000.0006051GLG2 5,000,000.0014681 5,000,000.00 5.675MC5 03/20/2030 23,645.83 0.00 23,645.835.754010 5,000,000.0031422XZ47 10,000,000.0014638 10,000,000.00 1.500MC5 07/20/2026 12,500.00 0.00 12,500.001.521010 10,000,000.0031422XJW3 5,000,816.6314548 5,000,000.00 3.625MTN 07/15/2023 15,104.17 -859.61 14,244.563.466010 5,001,260.7668389XAS4 5,005,144.4214554 5,000,000.00 3.650MTN 10/12/2023 15,208.33 -1,336.22 13,872.113.372010 5,005,834.8024422EUM9 4,980,977.7314663 5,000,000.00 4.150MTN 09/15/2027 17,291.67 373.35 17,665.024.315010 4,980,784.8324422EWK1 5,003,523.8214557 5,000,000.00 3.500MC3 01/23/2024 14,583.33 -488.29 14,095.043.427010 5,003,776.11693475AV7 5,026,281.5714559 5,000,000.00 3.375MUN 04/01/2025 14,062.50 -1,223.35 12,839.153.108010 5,026,913.6313063DGB8 5,016,073.6314561 5,000,000.00 3.750MC3 12/06/2023 15,625.00 -2,844.88 12,780.123.100010 5,017,543.4805531FBF9 5,102,269.1914562 5,000,000.00 3.950MC3 11/17/2025 16,458.33 -3,524.50 12,933.833.084010 5,104,090.1891159HHU7 4,708,072.0514684 5,000,000.00 3.100MC3 04/27/2026 12,916.67 8,498.63 21,415.305.534010 4,703,681.1091159HHM5 5,026,791.1914563 5,000,000.00 3.375MTN 08/15/2025 14,062.50 -1,032.42 13,030.083.154010 5,027,324.6120030NBN0 6,136,562.8314587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.68 12,466.112.472010 6,138,466.06747525AU7 4,993,594.5114564 5,000,000.00 2.900MTN 05/20/2024 12,083.33 576.21 12,659.543.084010 4,993,296.80747525AT0 5,064,207.5314566 5,000,000.00 3.750MC3 09/15/2025 15,625.00 -2,382.47 13,242.533.181010 5,065,438.47751212AC5 5,064,448.1314570 5,000,000.00 3.650MTN 03/01/2026 15,208.33 -1,984.04 13,224.293.177010 5,065,473.22375558BF9 5,040,720.9314571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.77 13,420.233.239010 5,041,214.23233851CU6
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.3
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
June 1, 2023 - June 30, 2023
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
3,777,960.2114574 3,725,000.00 3.450MTN 01/06/2027 10,709.38 -1,241.74 9,467.643.049010 3,778,601.78233851CU6 1,012,223.2514582 1,000,000.00 4.250MTN 02/15/2024 3,541.67 -1,537.51 2,004.162.409010 1,013,017.63008252AM0 5,222,124.7714588 5,000,000.00 3.800MTN 10/30/2026 15,833.33 -5,491.34 10,341.992.410010 5,224,961.9607330MAA5 5,965,851.5014590 5,950,000.00 2.500MTN 01/14/2025 12,395.83 -837.96 11,557.872.357010 5,966,284.4504685A2L4 4,945,587.9714602 5,000,000.00 2.500MTN 01/14/2025 10,416.67 2,876.41 13,293.083.270010 4,944,101.8204685A2L4 4,998,485.2814606 5,000,000.00 3.375MTN 10/01/2024 14,062.50 97.83 14,160.333.447010 4,998,434.74828807CS4 5,000,000.0014655 5,000,000.00 5.000MC3 05/31/2032 20,833.33 0.00 20,833.335.069010 5,000,000.0022553PXJ3 5,000,000.0014652 5,000,000.00 4.050MC3 05/25/2025 16,875.00 0.00 16,875.004.106010 5,000,000.0022553PWD7 4,888,007.8714659 5,000,000.00 3.000MTN 08/07/2025 12,500.00 4,360.50 16,860.504.197010 4,885,754.9488579YAR2 4,840,295.7114660 5,000,000.00 3.500MTN 08/15/2027 14,583.33 3,197.29 17,780.624.469010 4,838,643.7830303M8G0 9,648,020.7414683 0.00 4.960ACP 06/30/2023 0.00 39,955.56 39,955.565.039010 9,960,044.4424422MTW1 560,913,000.00Subtotal 571,108,774.17 2.609 1,224,751.3328,504.421,196,246.91571,426,714.30 Fund: Fidelity MM - Trans
14,268,647.3914190 14,325,562.18 0.002RRP 58,877.37 0.00 58,877.375.020030 14,266,684.81SYS14190 14,325,562.18Subtotal 14,268,647.39 5.020 58,877.370.0058,877.3714,266,684.81 Fund: Fidelity MM - Regular
151,202,281.3014265 150,205,822.59 0.003RRP 624,353.06 0.00 624,353.065.024040 152,781,469.53SYS14265 150,205,822.59Subtotal 151,202,281.30 5.024 624,353.060.00624,353.06152,781,469.53 725,444,384.77Total 736,579,702.86 3.152 1,907,981.7628,504.421,879,477.34738,474,868.64
Exhibit 2-C
Certificates of Deposit - S & L
$499,888 0.07%
Medium Term Notes
$118,953,
573 16.70%
Federal Agency
$402,491,253 56.50%
Municipal Bonds
$4,837,200 0.68%
Bank and Money Market
Account $185,547,381
26.05%
Pooled Cash and Investments
(Market Value)
as of June 30, 2023
Exhibit 2-D
$185,547,381
$499,888
$118,953,
573
$402,491,253
$4,837,200
$712,329,294
$213,698,788
$213,698,788
$712,329,294
$712,329,294
BANK ACCOUNTS
CERTIFICATES OF DEPOSITS
MEDIUM TERM NOTES
FEDERAL AGENCY BONDS
MUNICIPAL BONDS
City of Berkeley
Current Holdings vs. Policy Limits
as of June 30, 2023
Policy Limits
Current Holdings
Exhibit 2-E
-
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Investment Value
Pooled and Trust
Cash and Investment Portfolio Trend
as of June 30, 2023
Attachment 3
As of June 30, 2023
Pooled Cash
Investments Gain/Loss on & Investments
Pooled Cash (Book Value) Investments (Market Value)
Retiree Medical Trust Fund
Fund No.
721 BHA 178,283$ 424,516 29,402 632,201$ 722 M1=IBEW (86,223) 93,378 (3,787) 3,369 723 M2=Local 1 3,388,159 8,282,827 50,285 11,721,271 724 MUI=Z1 410,863 1,643,393 (148,971) 1,905,285 725 MUI=Z2 to Z6 773,556 2,263,191 (108,435) 2,928,312 726 M535= Local 535 2,899,953 8,011,327 (453,106) 10,458,174 727 M3=Local 790 1,801,475 5,023,423 (90,312) 6,734,587 Total Retiree Medical Trust Fund 9,366,066 25,742,055 (724,924) 34,383,198 Fire Medical Trust Fund
736 Fire Medical Trust Fund (273,254) 13,838,343 (612,957) 12,952,132 Total Fire Medical Trust Fund (273,254) 13,838,343 (612,957) 12,952,132 Police Medical Trust Fund
731 Police EE Retiree HLT Assistance Plan 212,004 2,370,878 (164,345) 2,418,537 701 Safety Members Pension Fund - - - - 706 Police Medical Trust Fund 169,914 4,341,594 (252,402) 4,259,105 Total Police Medical Trust Fund 381,918 6,712,472 (416,748) 6,677,642 Total Trust Funds 9,474,730$ 46,292,870$ (1,754,628)$ 54,012,972$ Summary of Pooled Cash and Investments - Trust Funds
(Market Value)
Exhibit 3-A
As of June 30, 2023
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Federal Agency Coupon Securities
3133EFQT7 14361 Fed Farm Credit Bank 2,600,000.00 2,604,820.55 2,604,365.78 2,459,730.00 11/25/2025 AAA 2.700 2.633 17,550.00 (454.77) 17,095.23 Medium Term Notes - Callable
665859AX2 14671 Northern Trust Corp 10,000,000.00 10,016,323.59 10,015,897.89 10,367,400.00 11/02/2032 A2 6.125 6.115 153,125.00 (425.70) 152,699.30 Continous Callable Bonds
797440CD4 14680 San Diego Gas & Electric 2,000,000.00 1,979,000.83 1,979,175.82 1,983,700.00 04/01/2053 A1 5.350 5.457 26,750.00 174.99 26,924.99 Municipal Bonds
786091AG3 14316 SACGEN 5,000,000.00 5,126,082.68 5,112,573.82 5,137,600.00 08/01/2025 A1 7.250 6.042 90,625.00 (13,508.86) 77,116.14 Savo Island Loan
SYS10988 10988 EMPMED 150,000.00 150,000.00 150,000.00 150,000.00 09/01/2025 N/A 8.000 7.948 2,972.35 - 2,972.35 Preferred Securities
00206R706 14591 AT&T Inc. 1,680,033.60 1,680,033.60 1,680,033.60 1,405,361.44 N/A N/A 4.596 4.728 19,801.73 - 19,801.73 00206R706 14596 AT&T Inc. 1,680,008.40 1,680,008.40 1,680,008.40 1,405,340.36 N/A N/A 4.640 4.728 19,801.44 - 19,801. 44 00206R706 14597 AT&T Inc. 2,520,000.00 2,520,000.00 2,520,000.00 2,108,000.00 N/A N/A 4.643 4.728 29,702.00 - 29,702.00 Total 25,630,042.00 25,756,269.65$ 25,742,055.31$ 25,017,131.80$ 5.391 360,327.52$ (14,214.34)$ 346,113.18$ Total Investments (Book Value) 25,742,055.31$
Gain/Loss on Investments (724,923.51)
Total Investments (Market Value) 25,017,131.80
Temporarily Invested with Pooled Cash & Investments 9,366, 066.00
Total Pooled Cash and Investments 34,383,197.80$
Adjusted Interest Earnings
Retiree Medical Trust Fund
Fund 721 - 727
Investments Interest Earnings
April 01 to June 30, 2023
April 01 to June 30, 2023
Interest Earnings
Exhibit 3-B
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Medium Term Notes
6174467X1 14318 Morgan Stanley DW DTC#0015 2,000,000.00 2,020,435.79 2,018,505.87 1,966,140.00 11/24/2025 BAA1 5.000 4.582 25,000.00 (1,929.92) 23,070.08 Federal Agency Coupon Securities
3133EFQT7 14362 Fed F
arm Credit Bank 2,300,000.00 2,304,
264.34 2,303,862.04 2,175,915.00 11/25/2025 AAA 2.700 2.633 15,525.00 (402.30) 15,122.70 Federal Agency Continuously Callable
3130AUB78 14672 Feder
al Home Loan Banks 4,000,000.00 4,000,
000.00 4,000,000.00 3,980,760.00 12/28/2037 AAA 6.230 6.247 62,300.00 - 62,300.00 3130AUB86 14673 Federal Home Loan Banks 2,996,000.00 2,996,000.00 2,996,000.00 2,994,591.88 12/29/2042 AAA 6.540 6.558 48,984.60 - 48,984.60 Preferred Securities
00206R706 14592 AT&
T Inc. 1,679,983.20 1,679,
983.20 1,679,983.20 1,405,319.28 N/A N/A 4.596 4.728 19,801.14 - 19,801.14 00206R706 14594 AT&T Inc. 839,991.60 839,991.60 839,991.60 702,659.64 N/A N/A 4.640 4.728 9,900.57 - 9,900.57 Total 13,815,974.80$ 13,840,674.93$ 13,838,342.71$ 13,225,385.80$ 5.193 181,511.31$ (2,332.22)$ 179,179.09$ Total Investments (Book Value) 13,838,342.71$
Gain/Loss on Investments (612,956.91)
Total Investments (Market Value) 13,225,385.80
Temporarily Invested with Pooled Cash & Investments (273,254.00) Total Pooled Cash and Investments 12,952,131.80$
Fire Retiree Medical
Fund 736
Adjusted Interest Earnings
April 01 to June 30, 2023As of June 30, 2023
Investments Interest Earnings
Interest Earnings
April 01 to June 30, 2023
Exhibit 3-C
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Medium Term Notes
6174467X1 14319 Morgan Stanley DW DTC#0015 500,000.00 505,108.95 504,626.47 491,535.00 11/24/25 BAA1 5.000 4.582 6,250.00 (482.48) 5,767.52 Federal Agency Coupon Securities
3133EFQT7 14363 Fed. Farm Credit Banks 2,300,000.00 2,304,264.34 2,303,862.04 2,175,915.00 11/25/25 AAA 2.700 2.63 3 15,525.00 (402.30) 15,122.70 Federal Agency Continuously Callable
3130AUB86 14674 Federal Home Loan Banks 2,224,000.00 2,224,000.00 2,224,000.00 2,222,954.72 12/29/42 AAA 6.540 6.558 36,362.40 - 36,362.40 Preferred Securities
00206R706 14593 AT&T Inc. 1,679,983.20 1,679,983.20 1,679,983.20 1,405,319.28 N/A N/A 4.596 4.728 19,801.14 - 19,801.14 Total 6,703,983.20$ 6,713,356.49$ 6,712,471.71$ 6,295,724.00$ 4.604 77,938.54$ (884.78)$ 77,053.76$ Total Investments (Book Value) 6,712,471.71$
Gain/Loss on Investments (416,747.71)
Total Investments (Market Value) 6,295,724.00
Temporarily Invested with Pooled Cash & Investments 381,918.00 Total Pooled Cash and Investments 6,677,642.00$
Police Retiree Medical
Fund 731 and 706
Adjusted Interest Earnings
Investments Interest Earnings
As of June 30, 2023 April 01 to June 30, 2023
Interest Earnings
April 01 to June 30, 2023
Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://www.cityofberkeley.info/manager
INFORMATION CALENDAR
December 12, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Henry Oyekanmi, Director, Finance Department Subject: Section 115 Trust Investment Report for: Inception to Period Ended June 30, 2023
SUMMARY
In June 2018, the City Council approved the establishment of a Section 115 trust to help address pension obligations, with administration by the City Manager or their designee.
Since May 2019, Keenan Financial Services has managed and invested this fund. This report provides an overview and analysis of the performance and current market conditions as it pertains to the City’s Section 115 Trust investment portfolio. The trust consists of two distinct accounts: the Fixed Income Account and the Moderate Growth Account. These accounts encompass various asset classes, including fixed income mutual funds, domestic equities, international mutual funds, and alternative investment funds with a focus on real estate.
I. Fixed Income Account (#7590):
The Fixed Income Account predominantly comprises fixed income mutual funds. As of the latest available data, this portion of the portfolio has been performing steadily, slightly below market expectations for fixed income investments. It's important to note that fixed income investments are generally considered a lower-risk component of a portfolio, providing stability and consistent income.
II. Moderate Growth Account (#7600):
The Moderate Growth Account represents a diversified mix of asset classes, including domestic equities, international mutual funds, and alternative investment funds that focus on real estate.
As of June 30, 2023, the City Section 115 Trust Fund Investment Fund Activity for the period from September 30, 2020 to June 30, 2023 is summarized in Table 1 and Table 2 below on a market value basis. Before considering the change in market value, the City’s
Section 115 Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023 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 Section 115 Trust Fund earned 3.65%, 3.99%, and 4.17%, in FY2021, FY2022 and FY2023, respectively.
Table 1. Investment Fund Activity Inception to June 30, 2023 Table 2. Investment Fund Activity By Fiscal Year
Discussion of Changes in Market Values
Generally accepted accounting principles requires that investments be marked-to-market.
This term refers to a method under which the fair values of accounts (i.e., assets and liabilities) that are subject to periodic fluctuations can be measured. The goal is to provide time to time appraisals of the current financial position of a company or organization, by incorporating the prevailing market conditions.
In the tables above, there is a line for changes in market values, which is negative. That is because, in some cases, the City may have investments with a current market value that is greater or less than the recorded cost. These changes in market value are due to Pooled Cash Fixed Income
Account
Moderate Growth
Account Total
Beginning Value (9.30.2020) -$ 6,356,407$ 4,278,393$ 10,634,799$ (4,655,470) 2,793,282 1,862,188 -
4,431,965 - - 4,431,965
4,911,324 - - 4,911,324
- 837,000 692,421 1,529,421
- (1,619,671) (652,171) (2,271,842)
- (59,213) (43,124) (102,336)
Ending Value (6.30.2023) 4,687,819$ 8,307,805$ 6,137,707$ 19,133,331$ Inception to Date: 9/30/2020 - 6/30/2023
Trust Fund
Management Fees
Change in Market Value
Net Contributions
Dividends
CalPERS Savings
Transfer from other funds
FY 2021 FY 2022 FY 2023
10,634,799$ 12,454,721$ 16,540,906$
Contributions:
a. Concil authorized transfers 113,724 2,151,632 2,645,968 b. Prepayment of CalPERS
Unfunded Liability discount 1,318,502 1,479,360 1,634,103 412,481 490,659 626,281
(24,785) (35,466) (42,085)
12,454,721 16,540,906 21,405,174
378,132 (2,116,151) (2,271,842)
12,832,853$ 14,424,755$ 19,133,331$
Beginning Book Value
Ending Balance - Market Value
Change in Market Value
Subtotal before marking
investments to market
Management fees
Dividends and Realized Gain/Loss
Section 115 Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023 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 fluctuations in the market and have no effect on yield, as the City does not intend to sell securities prior to maturity. For this reason, Table 2 above shows the Section 115 Trust Fund balance before and after adding the changes in market value, so that management and the City Council can get a more realistic picture of how the Section 115 Trust Fund is performing.
The large decline in the market value of the total Section 115 Trust investments is almost exclusively due to the following rapid increases in interest rates by the Federal Reserve Board from a range of 0%-.25% to a current range of 5.25%-5.50%:
As interest rates rise, bond prices fall, creating a decline in the market value of bond investments.
Investment Performance
A. Overview from Inception to June 30, 2023
As of September 30, 2020, the Trust Fund reported a total balance of $10,634,799, with $6,356,407 allocated to the Fixed Income Account and $4,278,393 allocated to the Moderate Growth Account.
Fixed Income Account: During FY2021, the Fixed Income Account earned $127,368, resulting in a yield of 2.00% during its initial year. Subsequently, from July 1, 2021, to June 30, 2022, the Fixed Income Account experienced a temporary downturn, reporting earnings of -$984,712, resulting in a yield of -15.22%. This period was marked by fluctuations in the fixed income market, largely due to the Federal Reserve raising interest rates aggressively, which clobbered bond prices, especially those for long-term bonds. However, from July 1, 2022, to June 30,
DATE RATE CHANGE FEDERAL FUNDS
RATE
03/17/22 .25% .25%-.50%
05/05/22 .50% .75%-1.00%
06/16/22 .75% 1.50%-1.75%
07/27/22 .75% 2.25%-2.50%
09/21/22 .75% 3.00%-3.25%
11/02/22 .75% 3.75%-4.00%
12/14/22 .50% 4.25%-4.50%
02/01/23 .25% 4.50%-4.75%
03/23/23 .25% 4.75%-5.00%
05/03/23 .25% 5.00%-5.25%
07/26/23 .25% 5.25%-5.50%
Section 115 Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023 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 2023, the Fixed Income Account rebounded impressively, recording earnings of $74,673, equating to a yield of 0.90%. This resurgence was influenced by higher- than-anticipated inflation and a robust global economy, particularly in the fourth quarter. These factors contributed to rising yields and narrowing credit spreads.
This reaffirms our belief in the resurgence of bonds, as higher yields have the potential to generate positive returns even amid ongoing rate hikes and periods of heightened market volatility.
Moderate Growth Account: The Moderate Growth Account, during FY2021, reported substantial earnings of $663,245, resulting in a yield of 15.50%, reflecting its dynamic investment strategy. During the subsequent year, from July 1, 2021, to June 30, 2022, the Moderate Growth Account experienced a period of challenge, reporting earnings of -$1,018,912, resulting in a yield of -20.66%.
However, in the following year, from July 1, 2022, to June 30, 2023, the account displayed a strong recovery, generating earnings of $395,917, resulting in a yield of 6.87%, signaling a return to a positive performance trend.
B. Rate of Returns by Account and Fiscal Year
1. Account 7600 (39.6% Equities, 53.9% Fixed Income and 6.5% Alternatives):
As summarized in Table 3 below, in account 7600, the Section 115 fixed income portion of the portfolio outperformed the benchmark* in FY 2021 (-1.13% versus -1.60%) and FY 2023 (.93% versus -.94%) and underperformed the benchmark in FY 2022 (-13.82% versus -10.35%). The equity portion of the portfolio underperformed the benchmark in FY 2021 (12.71% versus 15.25%), in FY 2022 (-26.55% versus -10.60%, and in FY 2023 (17.48% versus 19.59%).
Table 3. Account 7600 Rate of Return by Fiscal Year and Asset Allocation Benchmark: S&P 500 Total Return Index
2. Account 7590 (100% Fixed Income):
As summarized in Table 4 below, Account 7590 underperformed the benchmark in FY 2022 (-15.22% versus -10.30%) and outperformed the benchmark in FY 2021 (2.00% versus -.94%) and FY 2023 (.90% versus -.94%).
FY2021 FY2021
Benchmark FY2022 FY2022
Benchmark FY2023 FY2023
Benchmark
Fixed Income -1.13% -1.60% -13.82% -10.35% .93% -.94%
Equities 12.71% 15.25% -26.55% -10.60% 17.48% 19.59%
Alternatives 19.83% N/A -8.21% N/A -2.39% N/A
Total Account 15.50% -20.66% 6.87%
Section 115 Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023 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 Table 4. Account 7590 Rate of Return by FY and Asset Allocation Benchmark: Bloomberg US Aggregate Bond Index
The yield of the Section 115 Trust Fund for the fiscal year ended June 30, 2023 compared to the fiscal year ended June 30, 2022, was as follows. As shown in Table 5 below, for FY2023, the fixed income account yielded a return of 0.90%, while the moderate growth account returned 6.87%. This represents an increase of 1,612 basis points from the
15.22% return in FY2022 for the fixed income account and an increase of 2,753 basis points from the -20.66% return in FY2022 for the moderate growth account.
Table 5. Yield by Fiscal Year
Economic overview and Investment Outlook
Fixed Income: The fixed income outlook suggests a favorable environment with a receding U.S. recession risk and controlled inflation. However, longer-maturity government bonds face challenges due to valuations and tightening monetary policy. While uncertainties persist, employment remains strong, and the goods sector is showing signs of improvement, supported by capital expenditures and fiscal backing. Monetary policy may ease as inflation falls, potentially benefiting shorter-maturity bonds. Credit markets have tightened, especially in investment- grade non-financials, while high-yield markets remain volatile. Selectivity is crucial in high-yield investments. Shorter maturity securitized credit is favored, particularly non-agency residential mortgages. Overall, fixed income presents attractive opportunities, with caution advised for longer-maturity bonds and a preference for shorter maturities and select credit investments.
Global Equity: The sector picture has been a reversal of 2022, as the market has been led by the growthier sectors that suffered last year: consumer discretionary, communication services and, in particular, information technology, with the outpouring of euphoria around the promise of generative artificial intelligence (AI) offering a new lease on life for tech mega-caps after a tough 2022. June saw a more general cyclical recovery, but up until the end of May, the 'magnificent seven' or 'MANAMAT' (Meta, Apple, Nvidia, Amazon, Microsoft, Alphabet, Tesla), around FY 2021 FY2021
Benchmark FY 2022 FY2022
Benchmark FY 2023 FY2023
Benchmark
Fixed Income 2.00% -.94% -15.22% -10.30% .90% -.94%
Total Account 2.00% -15.22% .90%
Trust Fund 6/30/2023 6/30/2022
Fixed Income Account 0.90% -15.22%
Moderate Growth Account 6.87% -20.66%
For Fiscal Year Ended 6/30/2023 Compared to 6/30/2022
Section 115 Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023 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 a quarter of the S&P 500 Index by weight, had effectively delivered all the U.S. index returns, with the other 493 constituents being slightly down overall.
Inflation rose to unacceptably high levels in 2022, causing the Federal Reserve Board to tighten monetary policy significantly to combat inflation. As a result, the Fed raised interest rates from a range of 0%-.25% in March 2022 to a range of
5.25%-5.50% currently. During this period the average mortgage rose from a little over 4.1% to 7.5% currently. In addition, the Feds began a program to sell $95 billion/month (or $1.14 trillion) of Agency and Mortgage-Backed securities from its Balance Sheet, which will increase the supply of these securities and put additional upward pressure on mortgage rates. This has already significantly reduced consumer spending and has started slowing down the economy.
Gigantic and ongoing federal budget deficits, high inflation and the Federal Reserve Board tightening of the monetary supply to fight high inflation have replaced the COVID-19 pandemic as the biggest headwinds to economic growth over the next few years. The Feds Chairman said the Federal Reserve will keep interest rates at a high level until its preferred inflation index (i.e., Core Personal Consumption Expenditure Index or PCE Index) declines below its target of 2% and the Feds is convinced it will remain so. It is currently 3.88%, almost double the Feds target rate. The Federal Reserve is trying to engineer a soft landing for the economy (i.e., slowing the economy by tightening the money supply, but not creating a recession); the Feds may or may not be successful at engineering this soft landing. The proposed $1.8 trillion federal budget deficit for the upcoming fiscal year will require the issuance of additional $1.6 trillion in Treasury Bonds to fund the deficit. This additional huge supply of bonds will overwhelm demand for Treasury Bonds and put further upward pressure on long-term interest rates.
BACKGROUND
At the November 28, 2017 City Council meeting, the City Manager was instructed to present a proposal for establishing an Irrevocable Supplemental Pension Trust, along with other options proposed by staff.
On June 26, 2018, the City Council adopted a Resolution appointing the City Manager as the Plan Administrator. This resolution authorized the City Manager to initiate the necessary steps for negotiating and executing documents to establish a Section 115 Trust Fund, intended to serve as a pension rate stabilizing fund. Additionally, it delegated authority for managing the Section 115 Trust Fund investments.
During the Request for Proposals (RFP) process, the City identified three agencies capable of providing professional trust administrative, trustee/custodial, and investment advisory or management services: Public Agency Retirement Services (PARS), PFM Asset Management LLC (PFM), and Keenan. RFPs were sent out, and the responses were evaluated by a review committee, which included the Director of Finance, Treasury
Section 115 Investment Report: FY2023 4th Qtr INFORMATION CALENDAR Ended June 30, 2023 DECEMBER 12, 2023 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 Manager, and an external consultant for the City. Keenan Financial Services received the highest rating from all three reviewers based on the outlined criteria in the RFP.
On May 14, 2019, during the City Council meeting, the City Council adopted a Resolution authorizing the City Manager to execute a contract with Keenan Financial Services to establish a pension Section 115 trust. This contract includes Keenan Financial Services providing trust administration, trustee/custodian, and investment advisory services. The structure of the trust includes the following components:
Trust Administrator: Keenan
Trustee/Custodian: Benefit Trust Company
Investment Manager: Morgan Stanley
Benefit Trust Company (BTC) actively manages plan assets. The City's individual trust account is part of a larger Multiple Employer Trust administered by Keenan Financial Services and BTC. BTC also provides the City with monthly and quarterly statements detailing the activity of the City's accounts.
The primary purpose of the Pension Stabilization Trust is to accumulate, hold, and distribute pension plan assets exclusively for the benefit of retiree pensions, as defined by IRS Code Section 115. These plan assets are irrevocable and can only be used for the intended purpose of the Trust.
The City's principal objective in establishing the Pension Trust is to control long-term costs and mitigate the annual operating budget's volatility. The trust offers increased flexibility to the City, allowing for more consistent contributions and reduced year-to-year contribution volatility.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental effects or opportunities associated with the subject of this report.
CONTACT PERSON
Henry Oyekanmi, Director, Finance Department, 981-7326
ATTACHMENTS
1. Portfolio Evaluation Inception to June 30, 2023
2. Investment Report Analysis Inception to June 30, 2023 a. Exhibit 2-A: Summary Information by Portfolio
b. Exhibit 2-B: Investment by Type
c. Exhibit 2-C: Market Value by Type
d. Exhibit 2-D: Investment Portfolio Trend
Attachment 1
Portfolio Evaluation
6.30.2023 6.30.2022 6.30.2021 9.30.2020 (Inception)
Total Portfolio
Pooled Cash 4,687,819$ 407,748$ 1,432,226$ -$ Fixed Income Account (7590) 8,307,805 8,257,710 6,469,347 6,356,407 Moderate Growth Account (7600) 6,137,707 5,759,296 4,931,280 4,278,393 Total Cash and Investments 19,133,331$ 14,424,755$ 12,832,853$ 10,634,799$ Earnings
Fixed Income Account (7590) 74,673 (984,712) 127,368 Moderate Growth Account (7600) 395,917 (1,018,912) 663,245 Total Earnings 470,590$ (2,003,624)$ 790,613$ Yield YTD
Fixed Income Account (7590) 0.90% -15.22% 2.00%
Moderate Growth Account (7600) 6.87% -20.66% 15.50%
As of June 30, 2023
Analysis by Fiscal Year
Exhibit 2-A
Section 115
Cash and Investments Trust Investments Total
Portfolio 10,634,799$ 10,634,799$
Unrecognized gain/(loss) 3,810,713 3,810,713$ Total Investments 14,445,512$ 14,445,512$ Cash Pooled Cash Total
Cash Deposits in Bank 4,687,819 4,687,819 Total Cash 4,687,819 4,687,819
Adjusted Grand Total (All Cash and Investments) 19,133,331$ 19,133,331$ Section 115 Trust Portfolio Breakdown As of June 30, 2023 Book Value Market Value
Fixed Income 8,687,089.21 11,614,770.27 Equities 1,703,409.07 2,433,489.57
Alternatives 244,301.08 397,252.50
Total Investments 10,634,799$ 14,445,512$ As of June 30, 2023
Investment Report Analysis
Exhibit 2-B
Security Investments Gain/Loss on Investments Curren
Quantity Symbol (Book Value) Investments (Market Value) Yield MODERATE GROWTH ACOCUNT PENSION STABILIAZATION TRUST - BENEFIT ACCOUNT 7600
FIXED INC MUTUAL FUNDS
TAXABLE BOND FUND
65,989.663 MPHQ.X 777,380 (119,463.35) 657,917 3.4 40,734.878 GIUS.X 787,244 (127,746.52) 659,498 3.7 13,928.713 GIOS.X 362,588 (30,666.60) 331,921 5.3 55,848.763 PTRQ.X 787,366 (126,116.75) 661,249 4.1 65,455.439 PGTQ.X 421,286 (88,117.81) 333,168 4.1 70,106.967 WAPS.X 811,784 (148,571.70) 663,212 3.6 FIXED INC MUTUAL FUNDS TOTAL 3,947,648 (640,683) 3,306,965 3.9
DOMESTIC EQUITY MUTUAL FUNDS
LARGE CAP FUND
6,329.701 ALGY.X 313,712 (1,404.13) 312,307 0.1 14,978.675 COFY.X 447,059 8,742.15 455,801 0.6 4,605.795 LCSS.X 186,086 15,371.03 201,457 0.0 LARGE CAP FUND TOTAL 946,857 22,709 969,566 0.3 SMALL CAP FUNDS
11,929.120 AGOZ.X 261,534 (53,371.06) 208,163 0.0 2,822.187 UBVF.X 181,590 33,036.93 214,627 1.2 SMALL CAP FUNDS TOTAL 443,125 (20,334) 422,790 0.6 City of Berkeley
Investment Report Analysis
Summary of Investments - Section 115 Trust Funds
Exhibit 2-B
Security Investments Gain/Loss on Investments Curren
Quantity Symbol (Book Value) Investments (Market Value) Yield City of Berkeley
Investment Report Analysis
Summary of Investments - Section 115 Trust Funds
DOMESTIC EQUITY MUTUAL FUNDS TOTAL 1,389,982 2,375 1,392,356 0.4
INTERNATIONAL MUTUAL FUNDS
INTERNATIONAL EMERGING MARKET FUND
759.340 NFFF.X 55,256 1,011.28 56,267 1.1 INTERNATIONAL EMERGING MARKET FUND TOTAL 55,256 1,011 56,267 1.1 INTERNATIONAL FUND
3,075.465 ANWF.X 163,574 6,192.10 169,766 0.9 9,182.432 GSIY.X 158,963 9,443.28 168,406 4.4 9,795.832 HILY.X 142,449 26,039.66 168,488 2.6 4,629.057 PRJQ.X 167,376 2,834.09 170,210 0.0 13,526.386 TIBO.X 293,775 14,220.96 307,996 5.3 INTERNATIONAL FUND TOTAL 926,136 58,730 984,866 3.0 INTERNATIONAL MUTUAL FUNDS TOTAL 981,392 59,741.37 1,041,133 2.9
ALTERNATIVE INVESTMENT FUNDS
ALTERNATIVE FUND
19,863.727 CSZI.X 335,310 (21,463.04) 313,847 3.4 4,592.820 PGRQ.X 99,033 (15,627.60) 83,406 2.3 ALTERNATIVE INVESTMENT FUNDS TOTAL 434,343 (37,091) 397,253 3.2
Exhibit 2-B
Security Investments Gain/Loss on Investments Curren
Quantity Symbol (Book Value) Investments (Market Value) Yield City of Berkeley
Investment Report Analysis
Summary of Investments - Section 115 Trust Funds
TOTAL PORTFOLIO 6,753,364 (615,657) 6,137,707 3.1 FIXED INCOME ACOCUNT PENSION STABILIAZATION TRUST - BENEFIT TRUST ACCOUNT 7590
FIXED INC MUTUAL FUNDS
TAXABLE BOND FUND
165815.793 MPHQ.X 1,963,200 (310,016.76) 1,653,183 3.4 102359.063 GIUS.X 1,982,742 (325,549.20) 1,657,193 3.7 34939.159 GIOS.X 908,432 (75,832.23) 832,600 5.3 140337.900 PTRQ.X 1,984,285 (322,684.64) 1,661,601 4.1 164391.532 PGTQ.X 1,054,803 (218,050.00) 836,753 4.1 176160.095 WAPS.X 2,042,657 (376,182.09) 1,666,475 3.6 FIXED INC MUTUAL FUNDS TOTAL 9,936,120 (1,628,315) 8,307,805 3.9 TOTAL PORTFOLIO 9,936,120 (1,628,315) 8,307,805 3.9 Total Trust Funds 16,689,484$ (2,243,972)$ 14,445,512$ Pooled Cash 4,687,819$
Total Cash and Investments 19,133,331$
Exhibit 2-C
Pooled Cash $4,687,819
24.50%
Taxable Bond Fund
$11,614,770 80.4%
Large Cap Fund
$969,566 6.71%
Small Cap Fund
$422,790 2.93%
Int'l Emerging Market
Fund $56,267 0.29% International Fund
$984,866 5.15%
Alternative Fund
$397,253 2.08%
INVESTMENT PORTFOLIO
(MARKET VALUE)
AS OF JUNE 30, 2023
Exhibit 2-D
0 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2021 2022 2023
Investment Value
Average Investment Portfolio Trend
as of June 30, 2023
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.BerkeleyCA.gov/Manager
INFORMATION CALENDAR
December 12, 2023
To: Honorable Mayor and Members of the City Council
From: Dee Williams-Ridley, City Manager
Submitted by: Jordan Klein, Director, Department of Planning and Development Subject: Climate Action Plan and Resilience Update
SUMMARY
This report contains performance metrics to measure progress toward meeting climate action goals in the transportation and building sectors. Alongside GHG emission reductions, staff is advancing equity, prioritizing community resilience, helping the community adapt to the changing climate, and will be utilizing funding from the California Office of Planning and Research Adaptation Planning Grant Program starting in 2024 to collaborate with disadvantaged communities to develop meaningful metrics to measure Berkeley’s progress in advancing climate, equity and resilience goals.
Based on the best currently available data from 2021, the Berkeley community has reduced overall greenhouse gas (GHG) emissions by 25% since 2000. In addition to a declining trend since 2000, there was a significant drop in 2020 due to the impacts of the COVID-19 pandemic, particularly in the transportation sector. As anticipated, in 2021 as people resumed commute and travel patterns the transportation emissions increased by 27% from 2020 levels, though the 2021 transportation emissions are still 9% lower than in 2019. In Berkeley’s building sector, emissions decreased by 7% from 2020 to 2021. Further declines in community-wide building sector emissions are anticipated in 2022, which is when most residential and commercial electricity accounts transitioned to Ava Community Energy’s (formerly known as East Bay Community Energy’s) Renewable 100 product. Ava Community Energy (Ava) has also pledged to make its Bright Choice product emissions-free by 2030.
Although Berkeley has made significant progress in reducing GHG emissions, additional work is required to achieve the City’s ambitious goals. In 2006, Berkeley residents voted to reduce the community’s GHG emissions by 80% below 2000 levels by 2050, and the resulting Climate Action Plan (CAP) was adopted by the Berkeley City Council in 2009.
In 2018, then-Governor Brown committed California to carbon neutrality by 2045, the Berkeley City Council resolved to become a “Fossil Fuel-Free City,” and the Council declared a Climate Emergency, all steps to signal the urgency of these ambitious goals and the need to act on climate threats in an equitable manner. Additionally, in 2020, Berkeley City Council established a 2030 GHG emission reduction target that reflects
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Berkeley’s fair share of the 50% global reduction in carbon dioxide equivalent (CO2e), committing to reduce emissions 60.5% from 2018 levels by 2030. Berkeley’s emission reduction and fossil fuel-free goals were set in the context of a growing population, so the 2021 emissions reductions were achieved with an 18% increase in population from the 2000 baseline.
CURRENT SITUATION AND ITS EFFECTS
Berkeley’s progress on climate action and the annual community-wide GHG emissions inventory is a Strategic Plan Priority Project, advancing our goal to be a global leader in addressing climate change, advancing environmental justice, and protecting the environment.
City staff annually calculate community GHG emissions to understand which sectors and fuels contribute the most emissions in Berkeley, track progress toward climate goals, and provide data that can be used for prioritizing programs and policies.
Berkeley’s community-wide GHG emissions in 2021 totaled 546,388 metric tons of carbon dioxide equivalent (mtCO2e). The 2021 GHG inventory continued to be impacted by the global COVID-19 pandemic, as noted within each sector’s analysis.
Figure 1 is a pie chart of the 2021 community-wide GHG emissions inventory, the most recent available data, broken down by sector and fuel. The majority of Berkeley’s GHG emissions continue to come from the transportation and building sectors.
The transportation sector was the largest source of 2021 GHG emissions, accounting for 54% (295,777 mtCO2e) and includes vehicles, BART, AC Transit, Amtrak and maritime vessels. The building sector was the second largest source of emissions in 2021 and accounted for 43% (236,973 mtCO2e) of community-wide emissions. Energy usage data for Berkeley buildings, provided by Ava and PG&E, is broken down into residential and commercial (including industrial) buildings—for both electricity use and natural gas (gas) combustion.
Emissions from municipal energy use accounts for 0.3% (1,434 mtCO2e) of the 2021 community-wide GHG emissions. Municipal energy consumption includes city buildings and other uses like streetlights and traffic signals. The remaining 2% (13,639 mtCO2e) of Berkeley’s community-wide GHG emissions come from landfilled solid waste, water consumption, and waste water treatment.
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Figure 1: 2021 community-wide GHG emissions inventory, by sector and fuel.
To identify and quantify reductions achieved, the most current community emissions from 2021 are compared to the Climate Action Plan (CAP) baseline year of 2000. A historic summary of Berkeley’s annual emissions inventories from 2000 to 2021 is provided in Figure 21.
1 Due to data access issues, the City was not provided with energy use data in 2015 and 2016, so building energy usage was estimated using assumptions and is represented with shaded coloring. No inventory was calculated for 2017, so that year of data is omitted.
Com
mercial
Gas
13% Reside
ntial
Gas
16%
Com
mercial Electricity
7%
Reside
ntial Electricity
7%
Munici
pal Energy
Use 0.3%
Water Con
sumption & Waste Water
0.3%
Landfi
ll Waste
2%
Transportatio
n
54%
2021 Gre
enhouse Gas Inventory
Summary:
Transportation: 54%
Buildings: 43%
Waste: 2%
Water: <1%
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Figure 2: Historic Berkeley GHG emissions inventories back to 2000, broken out into building electricity and gas combustion, transportation, and other (water, wastewater treatment and landfill solid waste).
Community-wide GHG emissions in 2021 decreased 25% from the 2000 baseline. As mentioned, due to the COVID-19 pandemic GHG emissions in 2020 were very low. In 2021 GHG emissions increased 9% from the dip in 2020, and increased 1% from 2019, the most recent pre-pandemic year. Berkeley’s original CAP goal of reducing GHG emissions by 80% from 2000 levels by 2050 was superseded by a commitment by the Berkeley City Council on May 11, 2021, to become zero net emissions by 2045 or sooner, requiring an additional 75% reduction of GHG emissions over the next 24 years.
Key accomplishments and examples of work underway to reduce GHG emissions and address the climate emergency are described below. Although the data for GHG emissions is for the calendar year of 2021, the progress on programs described in the following sections includes more recent efforts.
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Equity
Equity Goal: Prioritizing the advancement of equity outcomes into policies and programs Equity Guardrails
Berkeley’s Existing Buildings Electrification Strategy (BEBES, 2021) developed a set of “Equity Guardrails” which serve as minimum requirements that must be met in order to equitably advance a policy, program or project. These guardrails were developed as a result of targeted outreach with disadvantaged communities to better understand and elevate their priorities and needs. The Planning & Development Department’s Office of Energy and Sustainable Development (OESD) applies these guardrails to all of its work.
They include:
Maximize Access to Health, Safety & Mobility Benefits Maximize Access to Economic Benefits
Maximize Ease of Participation
Promote Housing Affordability & Anti-Displacement
Measuring Progress
Cities often use quantitative metrics like GHG inventories to measure progress on climate action, but these inventories only tell part of the story. Ideally, both qualitative and quantitative indicators are co-created with the community to identify meaningful measures of success based on the community’s priorities. By creating indicators that show meaningful and equity-focused outcomes, staff can adjust programs and policies to improve equitable outcomes over time, and increase the quality of life for members of the community – particularly those who have been historically disadvantaged and are most impacted by climate change. The City of Berkeley has been awarded a grant from the CA Office of Planning and Research’s Adaptation Planning Grant Program, which includes funding to co-create climate and resilience metrics with community. This work is anticipated to be completed in 2026.
Transportation
Transportation Goal: Advancing opportunities for people to safely walk, bike, take public transit, and electrify mobility options
Transportation Sector Emissions
In 2021, Berkeley began to see a return in transportation emissions from the 2020 impacts of COVID-19, but these transportation sector emissions remain 9% below the
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
pre-pandemic year of 2019. Overall, total community transportation GHG emissions decreased 14% between 2021 and the baseline year of 2000. Emissions from on-road vehicles are calculated using total miles traveled provided by Google Environmental Insights Explorer2.
Electric Mobility Roadmap
The Berkeley Electric Mobility Roadmap, adopted by Berkeley City Council in July 2020, identifies goals, strategies, and actions to create a fossil fuel-free transportation system.
This supports the City’s ongoing efforts to increase walking, biking, and public transportation, and helps to ensure equitable access to the benefits of clean transportation. The four goals of the Roadmap, along with implementation updates, are detailed below:
1. Ensure Equity in Access to Electric Mobility: Maximize electric mobility benefits in underserved communities
Pilot Climate Equity Fund: On July 27, 2021, City Council approved a resolution establishing a Pilot Climate Equity Action Fund and allocated $600,000 to provide climate change and resilience benefits to low-income residents. One of the three program areas3 is the Berkeley E-Bike Equity Program (BEEP), a $250,000 electric bike (e-bike) access program for income-qualified Berkeley households, and an e-bike youth education and workforce training program to service e-bikes and provide training for high-road job opportunities. The local non-profit Waterside Workshops, with assistance from GRID Alternatives, is implementing BEEP including education and workforce training on e-bike assembly and maintenance for its youth interns. In 2023, the BEEP program provided safety training and distributed 56 e-bikes to program recipients.
2. Improve Alternatives to Driving: Shift trips to walking, biking, and shared electric modes
Micromobility: In September 2021, Berkeley City Council adopted a resolution to establish a shared electric micromobility permit program which allows operators (currently Veo and Link) to provide Berkeley residents and visitors with more sustainable commute options using electric scooters and e-bikes. To ensure equitable access to these devices, at least 50% of these devices must be deployed in designated equity priority areas, and operators are required to provide both low-income programs and more accessible devices, such as sit scooters. In May 2023, the City renewed permits for two shared mobility operators, with 400 stand-scooters and 400 seated-scooters approved to operate in Berkeley. In the period between July 2022 and June 2023 a total of 281,973 2 https://insights.sustainability.google/
3 Additional information on the other program areas of the Pilot Climate Equity Fund is provided in the Buildings section of this report.
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
trips, representing 268,125 total miles, were taken on these shared electric scooters and bicycles.
3. Achieve Zero Net Carbon: Eliminate emissions from private vehicles Electric Vehicle Charging: The City continues to promote the use of electric vehicles (EVs) and facilitate the installation of EV charging stations by offering streamlined permitting, educating property owners about EV charging and grant opportunities, and providing EV charging on municipal property. Based on field verification, in October 2023 there are currently 129 publicly available EV charging ports in Berkeley (Level 2 and Direct Current Fast Chargers, or DCFC) in addition to at least 75 EV charging ports installed by businesses for their employees, or in multifamily apartment buildings for residents and visitors. The City is currently partnering with Ava to develop public DCFC Hubs at two locations in Berkeley. Local amendments to the 2022 California Green Building Standards Code, effective January 2023, require levels of EV charging in new buildings in Berkeley which exceed state requirements.
4. Demonstrate City Leadership: Lead by example and guide the electric mobility transition
Electrification of City Fleet: Staff worked with Ava to conduct a municipal fleet electrification assessment including a plan for EV deployment and associated charging infrastructure through 2030, presented to Council in July 2020. The City is currently working to add EV charging for fleet vehicles at the Corporation Yard, and has continued to increase the number of EVs in the municipal fleet. In 2023, EV additions to the municipal fleet will include 14 electric sedans, three electric cross-over SUVs, and one electric pick-up truck.
Electric Mobility Position: The City hired an Electric Mobility Coordinator in March 2023. This position convenes the City’s Electric Mobility Implementation Working Group, manages and coordinates the development of City-owned EV charging infrastructure, tracks and develops programs utilizing emerging mobility options, obtains grant funding for the City’s electric mobility programs, and catalyzes actions such as electric mobility equity pilot projects, new best practices for curbside vehicle charging, and shared electric mobility hubs.
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Measuring Progress in the Transportation Sector
% Sustainable Trips
31%
in 20214d
Goal: Increase of share of trips taken on
sustainable modes of transportation to 50%
by 2030 and 100% by 20405
% EV Adoption
9.2%
in 2022d
Goal: Increase the share of light-duty EVs
registered in Berkeley to 25% by 2025, 55%
by 2030, and 100% by 2045
# of Gas Cars Per
Household 1.3
in 2022
Goal: Reduce the number of gas cars per
household to 0 by 2045
# of Public Level 2
Chargers 110
in October 20236
Goal: Install at least 420 public Level 2
chargers by 20257
# of Public DC Fast
Chargers 19
in October 20238
Goal: Install at least 100 public direct current
fast chargers (DCFC) by 20257
4 Percent of sustainable trips in 2021 only includes trips from walking, biking, and public transit as EV trip data is currently not available.
5 The goal to increase sustainable trips to 100% by 2040 includes trips from walking, bicycling, public transit, and EVs.
6 The number of chargers decreased from last year’s reported value. There were few new installations and many chargers were switched from public to restricted use for fleets, employee and/or residents. 7 Berkeley’s estimates for number of chargers needed by 2025 are based on charging infrastructure projections provided by the California Energy Commission using Alameda County’s ratio of needed EV chargers to projected EVs.
8 Includes Tesla fast chargers
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Buildings
Buildings Goal: Reducing energy use, promoting cleaner energy, and transitioning all buildings to clean electricity
Building Sector Emissions
Overall GHG emissions from Berkeley’s building sector decreased by 7% from 2020 to 2021, and are 34% below 2000 levels. Total community-wide electricity usage decreased 14% between 2020 and 2021, and has decreased by 45% since 2000. Total community-wide natural gas usage increased by 1% from 2020 to 2021, but has decreased by 22% since 2000.
Impacts to Berkeley’s Building sector emissions:
Ava Bright Choice Electricity Emission Factor – The emission factor for Ava’s default electricity product, Bright Choice, increased significantly in 2020 compared to the 2019 value due to the changing procurement costs and loss of nuclear allocation in the electricity mix. In 2021 the Bright Choice emission factor decreased by 5% from 2020, but remains over three times higher than it was in 2019. The Bright Choice product accounts for 92% of Berkeley’s 2021 community-wide electricity consumption. Ava is committed to providing 100% emissions-free Bright Choice by 2030. Additionally, in 2022 all Berkeley customers were automatically opted-up into Ava’s Renewable 100, so a significant decrease in community-wide electricity emissions is expected for the 2022 inventory.
Direct Access Accounts – The dataset used to calculate GHG emissions does not include Direct Access accounts, an option that allows eligible customers to purchase their electricity directly from third party providers known as Electric Service Providers. Due to an increase of Direct Access accounts which were therefore not included in the dataset, reported community-wide electricity usage showed a decrease in 2021.
Municipal Buildings Progress
Municipal buildings are assessed for energy efficiency, electrification, and rate plan savings opportunities on an ongoing basis.
Recently completed projects and major current efforts include:
o Building Lighting Upgrades to LED: The Public Safety Building, which was a 2023 US Department of Energy Award-Winning Design, saves over 300,000 kilowatt-hours (kWh) annually. Other Fire Stations, Public garages, and Municipal building upgrades are in process. o Building Envelope Improvements: Mental Health Clinic, Ann Chandler Health Clinic, West Branch Library
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
o Kitchen Electrification: North & South Berkeley Senior Centers o Heat Pump Water Heaters: Main Library, North & South Library Branches, Corporation Yard Green Room & Ratcliff Building (Admin), Fire Stations 3 & 6, Marina Admin/Restroom, and non-profit sites (non-City buildings): Women’s Daytime Drop-In Center, and Harrison House o Solar Electric Generation: Shorebird Park Nature Center, Berkeley Corp Yard, West Branch Library, South Branch Library, North Berkeley Senior Center
o Solar Thermal: West Campus Swim Center, Shorebird Park Nature Center, West Branch Library
Municipal Solar + Storage: The City, alongside several other cities in the Ava territory, is partnering with Ava to procure and implement solar + storage systems at critical municipal facilities to provide increased resilience and clean back-up power. Ava released a joint Request for Offers (RFO) for Power Purchase Agreement vendors in 2022 and re-released it in 2023. Ava hopes to select a vendor by early 2024, and start installation in 2024.
Switching to Ava Community Energy (formerly East Bay Community Energy) Renewable 100: In 2019, Berkeley City Council voted to switch municipal facilities to Ava’s Renewable 100 (R100) electricity service.
Voluntary Transition off Fossil Fuels
Berkeley homeowners have started voluntarily transitioning their gas, water, and HVAC systems to electric heat pumps. Heat pumps utilize clean electricity, are highly efficient compared to their gas counterparts, reduce building GHG emissions and provide a variety of other benefits including increased comfort and better indoor air quality. There are challenges to quantifying the number of heat pump installations in Berkeley, as the City’s existing permit database doesn’t provide ways to track specific technologies. The City’s future replacement building permit system will incorporate the ability to readily track and report these electrification upgrades.
Several incentive programs9 are available for heat pump water heaters (HPWH) and heat pump HVAC systems (HP HVAC), including TECH Clean California and BayREN.
While upgrades through these programs don’t account for the total number of heat pumps installed, they provide general indication of heat pump adoption trends in Berkeley.
TECH Clean California is a statewide initiative, funded by California gas corporation ratepayers, to accelerate the adoption of clean space and water heating technology across California in order to help meet the state goal of being carbon-neutral by 2045. Since its launch in 2022 through October 2023:
9 For more information on rebates and incentives for electrification, please see The Switch Is On:
https://switchison.org/
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
o 38 Berkeley homes installed HPWHs qualifying for TECH Clean California rebates totaling $60,700
o 157 Berkeley homes installed HP HVACs qualifying for TECH Clean California rebates totaling $442,000
BayREN offers a variety of rebates for heat pumps.
o Through BayREN’s Home+ program, from 2019 to July 2023:
93 Berkeley homes installed HPWHs qualifying for BayREN rebates totaling $93,000
28 Berkeley homes installed HP HVACs qualifying for BayREN rebates totaling $28,000
o BayREN’s also offers a $1,000 incentive per HPWH upgrade for contractors, and can be stacked with other rebates, such as the TECH Clean California rebates. Since the BayREN HPWH contractor rebate launch in 2020, local contractors received $83,000 in rebates for 83 HPWH installations in Berkeley.
Switching Residential and Commercial Accounts to Ava Community Energy Renewable 100
In 2019, Berkeley’s electricity accounts began the transition to Ava’s Renewable 100 (R100) electricity service. Residential customers transitioned in March 2022, and commercial customers in October 2022. One year after all buildings have completed the transition, over 96% of accounts (excluding CARE customers who remained on Bright Choice) are receiving R100 electricity service.
Berkeley Customers by
Sector
Total
Accounts Renewable 100 Bright Choice
Residential (excluding CARE) 42,850 97% 3%
Residential (CARE) 5,813 N/A 100%
Non-Residential 5,065 96% 4%
All Accounts 53,728 86% 14%
Building Emissions Saving Ordinance (BESO) Implementation Berkeley’s Building Emissions Saving Ordinance (BESO) requires building owners to complete and publicly report building-specific energy efficiency assessments and energy scores when a building changes ownership (also known as “time of sale”). The goal of BESO is to reduce both energy costs and GHG emissions in Berkeley’s existing buildings. To date, BESO has achieved many successes, including:
Provided data on the energy use and energy efficiency opportunities of Berkeley’s existing building stock
3,646 energy assessments completed
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
2,959 Home Energy Scores10 completed, with an average score of 4.5 out of 10 Developed new communications to promote energy efficiency and electrification upgrades
Since the beginning of 2022, 46 homes have applied to complete qualifying energy or electrification upgrades, in place of energy assessments to satisfy BESO requirements at time of listing for sale
Time of Sale Energy Upgrade Requirements
In December 2020, Berkeley City Council amended BESO to further align the program with the City’s electrification and community resilience goals. The amendment directed staff to develop energy upgrade requirements for Council consideration. In early 2023, staff assembled a Technical Advisory Committee (TAC) of building decarbonization experts from local, state, and federal organizations, including PG&E, Ava, California Energy Commission, the Berkeley Lab, Building Decarbonization Coalition, contractors and architects, to advise on potential requirements at time of sale. Over the last year, staff worked with the TAC, Bridge Association of Realtors, the Berkeley Rent Board, and the Environment and Climate Commission to develop a policy proposal. Staff plans to bring an amendment to BESO to Council in early 2024, which will include energy upgrade requirements for small residential buildings. Building Performance Standards
Building performance standards establish building-level requirements such as minimum GHG emissions standards or elimination of gas systems or equipment by a specified date. These standards are generally applied to larger buildings, including multi-family residential and commercial buildings, in order to have the highest impact on the largest energy users. The size and type of building covered could expand over time. Staff is working to develop requirements for building performance standards that lead to the elimination of gas in Berkeley’s large buildings. These requirements would be administered through Berkeley’s existing BESO program.
Pilot Climate Equity Fund
On July 27, 2021, City Council approved a resolution establishing a Pilot Climate Equity Action Fund and allocated $600,000 to provide building and transportation electrification and resilience benefits to low-to-moderate income residents. The City of Berkeley released an RFP in December 2021, and on April 26, 2022, the City Council approved 10 Developed by the US Department of Energy and its national laboratories, the Home Energy Score provides home owners, buyers, and renters directly comparable and credible information about a home’s energy use. Each Home Energy Score is shown on a simple one-to-ten scale, where a ten represents the most efficient homes. More information can be found at:
https://www.energy.gov/eere/buildings/downloads/home-energy- score#:~:text=Developed%20by%20DOE%20and%20its,about%20a%20home's%20energy%20use.&text =Each%20Home%20Energy%20Score%20is,represents%20the%20most%20efficient%20homes.
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
contracts with five vendors. Implementation of these programs is underway and will take place through 2024. The three program areas include:
Resilient Home Retrofits Pilot: Provides direct building decarbonization improvements for low-to-moderate income residents’ homes to enhance resilience, support occupant health and reduce GHG emissions. Berkeley Equity E-Bike Program (BEEP): An electric bike (e-bike) access program for income-qualified Berkeley households, and an e-bike youth education and workforce training program to service the e-bikes and provide training for high-road job opportunities.
Climate Equity Collaborative: Elevates under-represented voices, while increasing access to information and equipment for climate resilience and electrification efforts.
Kala Art Institute Municipal Artist-In-Residence
The Planning and Development Department is participating in Kala Art Institute’s Print Public Municipal Artist in Residence Program, an arts-integrated approach to urban planning and community activation. The goal of the program is for artists to work with city departments as cultural strategists to help approach challenges in new ways, and lift up voices that are less often heard. The Pilot Climate Equity Fund is participating in this program, and staff is partnering with the artist Cheryl Derricotte through Fall 2024.
Just Transition Pilot Program
On June 14, 2022, City Council approved a resolution to develop a Just Transition Pilot Program, with a budget of $1,500,000. This program aims to aggregate multiple direct install projects of electrification measures in existing affordable housing buildings and/or for low-to-moderate income households (at or below 120% of the Area Median Income, or AMI). Electrification measures include replacing gas water heating, HVAC, electrical upgrades and cooking equipment with efficient electric systems. The program requires that upgrades be completed by pre-qualified contractors who meet minimum labor standards, to ensure that residential electrification construction work also provides equitable benefits to workers. The objective of labor standards is to advance high-road, family-sustaining jobs that pay living wages, with comprehensive benefits and opportunities for career advancement for a diverse workforce.
Staff conducted extensive research to inform program design through expert interviews and active participation in the Bay Area High Road Training Partnership (HRTP)11. Staff also received valuable input from the Berkeley Environment and Climate Commission (ECC) on September 28, 2022, the City Council Facilities, Infrastructure, Transportation, Environment & Sustainability (FITES) Policy Committee on November 3, 2022, and the Commission on Labor on November 30, 2022. The City released an RFP in January 2023 to develop and implement the Just Transition Pilot Program. On June 6, 2023, City Council approved a resolution authorizing the City Manager to award a contract with 11 https://cwdb.ca.gov/initiatives/high-road-training-partnerships/
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Rebuilding Together East Bay North (RTEBN) as the contractor, who is teaming with the Construction Trades Workforce Initiative (CTWI). The City is in the contracting process and anticipates starting the project in December 2023, with installations taking place over two years. Staff will report back to Council next year with a program status as part of the Climate Action Plan and Resilience Update.
Indoor Appliances Implementation Working Group
Berkeley city staff were invited (along with only two other municipalities) to participate in the Bay Area Air Quality Management District (BAAQMD) Indoor Appliances Working Group (IWG). The BAAQMD adopted amendments to Rule 9-4 and Rule 9-6 in March 2023 which establish zero-nitrogen oxide (NOx) emissions standards for gas furnaces and water heaters.12 These rules phase in requirements, beginning in 2027, that will ultimately only allow heat pumps (zero NOx appliances) to be sold and installed in the Bay Area for new water heaters and furnaces. The IWG is assisting the BAAQMD in identifying and addressing implementation issues including technical and workforce readiness of the market and equitable transition to compliant appliances. 12 https://www.baaqmd.gov/rules-and-compliance/rule-development/building-appliances
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Measuring Progress in the Building Sector
Community-wide
Building Energy Usage
from Gas Combustion
73%
in 202113d
Goal: Decrease percentage of building
energy from fossil fuel consumption, in
the form of gas combustion, to 0 by 2045
while switching to clean electricity
BayREN Home+: # of
Measures Completed 1,139
from 2019-2022
Goal: Increase BayREN Home+
participation
BayREN Multifamily: # of
Units Participated 1,052
from 2014-2022
Goal: Increase BayREN Multifamily
participation and upgrade more units to
decrease energy use, emissions, and
increase comfort
Total GHG emissions
Saved through BayREN
Upgrades
367mtCO2e
from 2014-2022
Goal: Increase total GHG emissions
saved through participation in BayREN
Home+ and BayREN Multifamily
Waste
Waste Goal: Leading the way towards zero waste in policy, planning and practice Landfill Solid Waste Emissions
Total community-wide landfill solid waste and overall emissions from the waste sector decreased by 3% in 2021 compared to 2020, placing current waste sector emissions 49% below the 2000 baseline.
13 Due to the increase in Direct Access energy, our reported Citywide electricity use decreased. More information is provided above.
mtCO2e
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Impacts to Berkeley’s emissions:
SB 1383
In 2016, SB 1383 was signed into law. This State legislation is designed to reduce short-lived climate pollutants and requires 75% organic waste reduction by 2025 and a 20% increase in recovery of edible food that is currently disposed by 2025. California local jurisdictions have significant, new requirements to implement additional waste reduction programs and enhanced reporting and enforcement protocols to comply with the state legislation. SB 1383 implementation started January 1, 2022.
Community Outreach & Engagement
Community Engagement Goal: Achieving equitable climate action together Since 2012, the Berkeley Climate Action Coalition (BCAC), co-convened by the Ecology Center and the City, has been a vehicle for climate engagement. BCAC continues to engage Berkeley and East Bay residents on climate action issues through in-person and online events.
Community Webinars
The City collaborated with governmental and community organizations, and municipalities in both Alameda and Contra Costa counties to host webinars on a variety of topics such as building electrification, climate justice, residential energy efficiency, electric cars and bikes, and solar and storage.
East Bay Green Home Tours
Since 2021, the City has hosted virtual East Bay Green Home Tours14 showcasing various efforts of local residents to save water and energy, increase resilience to drought and heat, electrify their appliances, and reduce the carbon footprint of their homes. Hundreds of people have attended the event each year, and the videos that are available online afterwards continue to receive thousands of views.
Ride Electric
The City hosted its 6th Annual Ride Electric in conjunction with the City Harvest Festival on October 21, 2023. This event offers electric bike and scooter test rides through the City’s shared electric mobility providers and local bicycle retailers, and this year hosted an exciting new municipal fleet electric vehicle showcase. As in years past, the City offered multiple resources to income-qualified residents to help electrify their ride.
Additionally, the City invited multiple community partners such as Ava Community 14 https://www.eastbaygreenhome.com/
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Energy, the Ecology Center, and Citizen’s Climate Lobby to host interactive information tables on home electrification and recycling.
Climate Adaptation & Community Resilience
Adaptation and Resilience Goal: Strengthening and preparing the community for shocks and stresses, including adapting to the impacts of climate change The City’s resilience efforts, as outlined in the 2016 Resilience Strategy, include the following goals:
1. Build a connected and prepared community
2. Accelerate access to reliable and clean energy
3. Adapt to the changing climate
4. Advance racial equity
5. Excel at working together within City government to better serve the community
6. Build regional resilience
Many City departments are coordinating and leading efforts to enhance resilience and help Berkeley adapt to a changing climate, including Planning, Public Works, Parks Recreation and Waterfront, Health, Housing and Community Services, and Fire. A summary of programs is provided below:
Adaptation Planning Grant Program
The City of Berkeley in partnership with the Ecology Center and the Berkeley Climate Equity Collaborative, is being awarded a nearly $500,000 grant from the Governor’s Office of Planning and Research (OPR) Adaptation Planning Grant Program (APGP).
The project includes co-creating with community an update to Berkeley’s General Plan Safety Element, development of a new General Plan Environmental Justice Element, and creation of an Equitable Climate and Resilience Monitoring and Evaluation Strategy and Dashboard. As part of this work, the team will conduct additional technical analyses which will guide strategies, goals and policies of the Safety and Environmental Justice Elements, as well as future General Plan Element updates. The intent of the project is to achieve equitable outcomes that are specific and measurable through co-creating the climate adaptation and resilience policies and programs with vulnerable communities, as well as meaningful metrics for monitoring and evaluation.
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Local Hazard Mitigation Plan (LHMP)
The LHMP is the main document that houses the City’s climate adaptation work, and is currently being updated. A draft plan is anticipated to be released in late 2023 for public review and the final plan is anticipated to be completed and adopted in 2024.
Extreme Heat Planning
The City of Berkeley is developing extreme heat protocols for City operations. This work evaluates city infrastructure and community needs, and is integrating best practices from other jurisdictions. The City is also participating in a regional group coordinated with UC Berkeley, the Berkeley Lab, and several Bay Area jurisdictions, to share and plan around extreme heat.
Wildfire Smoke
The Bay Area has experienced multiple days and periods of unhealthy air quality due to wildfire smoke in recent years. These events can coincide with heat waves, high fire risks, and/or Public Safety Power Shutoffs. To better address the threat of wildfire smoke, in 2019 the City of Berkeley participated in a grant led by Alameda County to create a communications protocol for responding to wildfire smoke and other air quality conditions. In addition, in 2023 the Office of Emergency Services secured 28 air cleaners from a Bay Area Air Quality Management District (BAAQMD) grant. These air cleaners were distributed to public facing sites including libraries and community centers for use during poor air quality events. The City is also working to advance emergency and resilience planning for extreme heat and high air quality index (AQI) events, including coordination with cities around North America, and local collaboration outreach with community partners serving disadvantaged communities.
Sea Level Rise
In 2019, the City initiated the Waterfront Specific Plan project to develop a long-term vision for achieving a financially self-sustainable publicly-owned Waterfront. The team conducted an extensive community outreach process and a draft Sea Level Rise Study for the Berkeley Waterfront. Preliminary findings indicate that three locations at the Berkeley Waterfront may experience periodic flooding by 2050 during a 100-year storm and King tide:
1. The shoreline at the north segment of Marina Blvd between the Virginia Street Extension and the entrance to Cesar Chavez Park
Staff is in partnership with East Bay Regional Park District (EBRPD) as part of their North Basin Strip planning and design project (funding provided to EBRPD by Measure AA - San Francisco Bay Restoration Authority) to conduct a feasibility study with collaborative input from City.
2. The shoreline to the south of University Avenue between West Frontage Road and Marina Blvd
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
In 2023 staff submitted a grant application to the US Department of Transportation for the Berkeley Waterfront University Ave Shoreline and Habitat Resiliency Project for consideration. The funder plans to notify selected awardees in early 2024.
3. Various spots in the northeast corner of the inner harbor of the Marina.
Groundwater Rise
Shallow groundwater in coastal communities will rise as sea levels rise, increasing the risk of flooding communities from below. Through funding from the California Resilience Challenge grant, a project led by the San Francisco Estuary Institute Aquatic Science Center, in collaboration with Pathways Climate Institute, UC Berkeley, and Bay Area cities and counties, explored the links between sea level rise, precipitation, and the elevation of shallow groundwater in the Bay Area. The City of Berkeley was a joint proposer and participated in the Project Management Taskforce.
The final report15 provides existing conditions groundwater mapping and future condition projections, suggestions on how to use this dataset for planning purposes, recommendations for additional modeling and assessments, and potential next steps.
The City plans to take this study to the next step by evaluating the impact of shallow groundwater rise and sea level rise on toxic materials stored underground. This work is being funded through a grant from the CA OPR APGP grant (described above) and will take place from 2024-2026.
Tree Canopy
The City of Berkeley currently has a vibrant urban forest made up of approximately 38,000 street, park and median trees. These trees are managed and maintained by the Urban Forestry Unit of the Parks, Recreation & Waterfront Department. However, while dense and vibrant in areas, this urban forest is not equitably distributed throughout the City. Current tree inventories and overall canopy coverage data illustrates fewer trees located in the West and South Berkeley neighborhoods, which also have a higher population of lower-income and historically disadvantaged communities. The City plans to plant 1,000 new trees in West and South Berkeley neighborhoods over the next two years. Funds have been secured to cover most costs through an Urban Greening Grant of $726,000 and an Environmental Enhancement and Mitigation Grant of $576,000.
Both grants are sponsored by the California Natural Resources Agency. In addition, the City was awarded a federal Urban and Community Forestry grant from the Inflation Reduction Act for $1,000,000 to hire staff and continue tree planting work over the next five years.
15 May, C. L.; Mohan, A.; Plane, E.; Ramirez-Lopez, D.; Mak, M.; Luchinsky, L.; Hale, T.; Hill, K. 2022.
Shallow Groundwater Response to Sea-Level Rise: Alameda, Marin, San Francisco, and San Mateo Counties. Pathways Climate Institute and San Francisco Estuary Institute. See:
https://www.sfei.org/projects/shallow-groundwater-response-sea-level-rise
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
This project aims to eliminate the past barriers to growing new street trees by first promoting tree planting opportunities, engaging with communities and gathering specific tree planting requests in areas with low tree counts. Next, funding will cover all costs of the tree growing process, which include site planning and species selection, creating new sidewalk growing spaces, purchasing and planting trees, and providing the three years of watering investment needed to establish these drought tolerant trees.
These new trees will help to provide shade, cooling, storm water benefits, and beautification in neighborhoods that have been historically underserved. Additionally, this project offers an opportunity to grow tree species which are resilient and climate change ready, and to utilize modern urban forestry methods to create sustainable sites and reduce future infrastructure conflicts.
Pollinator Gardens
Bees and other insects are responsible for the pollination of much of the world's crops and flowering plants. The ecological service they provide is essential for a healthy environment. While numbers of many species have declined, several Berkeley Parks have been renovated to create space for native pollinator gardens and corridors. The pollinator garden partnership and collaboration began in 2020. Since the last report in 2021, two new sites have broken ground, one site is actively in construction, and there are also plans for another installation later in 2024:
A new community garden at Sixty-Third St. Mini-Park
A new pollinator garden at Charlie Dorr Mini Park
A large new 5,000 square foot native garden on the west side of the roundabout at University Ave. and Marina Blvd.
Ground broke for four renovated native planters at the Berkeley Marina Sportsman Center Bait Shop at 225 University Ave.
Ground broke for a pollinator garden at Monterey Ave. and Posen Ave. Plans for both a pollinator garden and a Community Garden at the newly renovated areas of Grove Park
Bay Area Climate Adaptation Network (BayCAN)
Berkeley is a founding member and participates in the Executive Committee of the Bay Area Climate Adaptation Network (BayCAN), a network of local government staff helping coordinate an effective and equitable response to the impacts of climate change. BayCAN works to share best practices, develop opportunities for collaboration and program implementation, and secure funding and resources for equitable climate adaptation.
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
Climate Action at UC Berkeley and The Berkeley Lab
UC Berkeley and the Berkeley Lab are not included in Berkeley’s GHG emissions inventory because their campuses are outside of the City’s jurisdiction. However, both institutions track their own emissions reduction goals and are engaged community partners in addressing climate change. UC Berkeley and the Berkeley Lab have completed their 2022 GHG inventories and they provide additional information on their climate action progress in their 2022 Sustainability Reports16.
The Berkeley Lab has partnered directly with the City on several innovative sustainability projects including building data management tools, zero-net energy analysis of municipal buildings, and a Building Performance Standard (BPS) policy analysis for the development of energy upgrade requirements through BESO. The City of Berkeley also participates in the Berkeley Lab Community Advisory Group (CAG).
BACKGROUND
In recognition of the climate crisis, the City added additional climate goals to bolster the Climate Action Plan goal of reducing greenhouse gas emissions below 2000 levels by the year 2045. Berkeley’s goals include:
Fossil Fuel Free Berkeley: In June 2018, the City Council referred a proposed resolution to the Energy Commission and Transportation Commission to further implement the Climate Action Plan and establish a goal of becoming a Fossil Fuel Free City.
Climate Emergency: On June 12, 2018, the City Council adopted a Climate Emergency Declaration.
Net-Zero Carbon Emissions: In 2018, Mayor Arreguín announced the City’s intention to achieve zero net carbon emissions by 2045, in alignment with California state-wide goals.
Race to Zero: In 2021, Berkeley City Council adopted a resolution for the Cities Race to Zero Campaign to establish a 2030 emission reduction target that reflects Berkeley’s fair share of the 50% global reduction in CO2e, committing to reduce emissions 60.5% from 2018 levels by 2030.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The City’s Climate Action Plan, Resilience Strategy, Local Hazard Mitigation Plan, and Strategic Plan all contribute to advancing the community towards a clean and resilient energy future that successfully meets Berkeley’s climate goals. The City is actively working to advance a just transition to becoming a fossil fuel-free City, through projects 16 UC Berkeley 2022 Sustainability Report: https://sustainabilityreport.ucop.edu/2022/locations/uc- berkeley/ and the Berkeley Lab 2021 Sustainability Report:
https://sustainabilityreport.ucop.edu/2021/locations/lawrence-berkeley-national-lab/
Climate Action Plan and Resilience Update INFORMATION CALENDAR December 12, 2023
such as the $1.5 million Just Transition Pilot Program and the High Road Training Partnership.
POSSIBLE FUTURE ACTION
This report provides the City Council with an update on GHG emission trends, an overview of associated current activities, and efforts underway to accelerate the rate of GHG emission reductions to reach Berkeley’s increasingly ambitious climate goals. The Climate Equity Fund and Just Transition Program are examples of valuable opportunities to pilot programs that can eventually scale to continue to achieve equitable GHG emissions reductions.
FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
Mitigation of GHG emissions within Berkeley and adapting to the impacts of climate change are interrelated. Current investment to reduce community-wide emissions and enhance climate adaptation and resilience, such as the Climate Equity Fund Pilot Projects and the Just Transition Pilot Project, will help reduce the costs of addressing the impacts of climate change in the future. Staff are closely monitoring the applicability and availability of regional, State and Federal funding to support the transition away from fossil fuels and other opportunities to clean energy and climate resilience goals.
CONTACT PERSON
Billi Romain, Manager, Office of Energy & Sustainable Development, 510-981-9732 Ammon Reagan, Community Services Specialist II, Office of Energy & Sustainable Development, 510-981-7416
Katie Van Dyke, Climate Action Program Manager and Chief Resilience Officer, Office of Energy & Sustainable Development, 510-981-7403
Civic Arts Commission
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/
INFORMATION CALENDAR
December 12, 2023
To: Honorable Mayor and Members of the City Council
From: Civic Arts Commission
Submitted by: Dana Blecher, Chairperson, Civic Arts Commission Subject: Civic Arts Commission FY24 Work Plan
INTRODUCTION
The Civic Arts Commission has updated its work plan, which outlines Commission objectives for Fiscal Year 2024 (FY24) based upon goals articulated in the City of Berkeley Arts & Culture Plan (2018 - 2027 Update) and reflective of previously initiated projects that are already under way. This work plan includes a variety of objectives in three civic arts areas: Policy, Grants, and Public Art.
CURRENT SITUATION AND ITS EFFECTS
At the regular meeting on July 19, 2023, the Civic Arts Commission unanimously approved a recommendation to approve the FY24 Civic Arts Commission Work Plan, which is used to guide the Commission’s work throughout the year.
Action: M/S/C (Passmore/Anno) to approve the FY24 Civic Arts Commission Annual Work Plan with change to wording of second item listed under Public Art Subcommittee to: “Complete backlog of public art projects identified in previous fiscal years Attachment 1) and the Public Art Master Plan before initiating new public art projects for implementation by Civic Arts staff.”
Vote: Ayes — Anno, Blecher, Bullwinkel, Covarrubias, Dhesi, Ibarra, Ozol, Passmore, Woo; Nays — None; Abstain — None; Absent — None. Public Comment: 0
BACKGROUND
See the Civic Arts Commission Annual Work Plan FY 24 (Attachment 1).
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
Through the Municipal Artist-in-Residence Program, artist Cheryl Derricotte is working with the Planning Department’s Climate Equity Pilot Project to creatively support the project’s community engagement and coalition building efforts. For the other FY24 Civic Arts Commission Work Plan projects and initiatives there are no environmental sustainability or climate impacts identified as a result of this plan.
Civic Arts Commission FY24 Work Plan INFORMATION CALENDAR December 12, 2023
POSSIBLE FUTURE ACTION
Based on Commission research and public hearings, new initiatives and recommendations to City Council may be submitted to City Council at such time deemed necessary.
FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
No fiscal impacts determined at this time.
CONTACT PERSON
Jennifer Lovvorn, Commission Secretary, Civic Arts Commission, (510) 981-7533 Attachment: 1: FY24 Civic Arts Commission Work Plan
Civic Arts Commission FY24 Work Plan Page 1
Civic Arts Commission
Civic Arts Commission FY24 Work Plan
Approved by Civic Arts Commission: July 19, 2023
Policy Subcommittee
1. Participate with staff and in consultation with the Housing Advisory Commission to advise on the development of a program and process for certifying Artists and Cultural Workers for eligibility for affordable artist housing culminating in a referral response to City Council and advocacy to fund a resulting affordable housing program.
Grants Subcommittee
1. If funding is awarded to the City of Berkeley by the National Endowment for the Arts, participate with staff in development of a new Arts Program Grant which would provide grants to support art programs within non-arts nonprofit organizations in Berkeley.
Public Art Subcommittee
1. Participate with staff in the development of a Public Art Master Plan for the City of Berkeley with input from the community and other stakeholders, which will provide a framework for developing new public art projects and funding for community-initiated public art projects.
2. Complete backlog of public art projects identified in previous fiscal years FYs 19-23 (Attachment 1) and the Public Art Master Plan before initiating new public art projects for implementation by Civic Arts staff.
3. Explore a possible amendment to the “Public Art in Private Development Ordinance” to facilitate the creation of permanently affordable venues for nonprofit arts organizations and affordable housing for artists and cultural workers within private development.
4. Participate with staff to update the Public Art Guidelines to reflect best practices and recommend corresponding updates to the Municipal Code where relevant.
Civic Arts Commission FY24 Work Plan Page 2
Attachment 1: List of Public Art Projects Included in Previous Fiscal Years (FY19 – FY23) Work Plans
Active:
1. Mildred Howard sculpture at Adeline and MLK
2. Jean LaMarr sculptural seating and grinding rock at Ohlone Park
3. Turtle Island Monument
4. Peace Wall Conservation
5. Utility Box Mural Program (Assessment and Implementation of Recommendations)
6. Cube Space Exhibitions (Ongoing)
7. BART Plaza Sound Installation (Ongoing programming and equipment repair)
8. Municipal Artists in Residence (Ongoing)
9. Po Shu Wang Signage and Bell
10. Framed Art Purchases for City Buildings
11. Berkeley Art Works Projects
12. Homelessness Social Practice Project 1
13. Homelessness Social Practice Project 2
14. Homelessness Social Practice Project 3
15. Lara Kaur artwork at West Service Center
16. Re-installation of Romare Bearden artwork
17. John Wehrle mural conservation
18. Aquatic Park tile wall
19. Aquatic Park sculpture
20. Home sculpture de-installation
Not Started:
1. Santa Fe ROW
2. South Berkeley Senior Center
3. MLK Youth Service Center
4. Willard Clubhouse
5. African American Health Resource Center
6. Eric Powell Gates Assessment
7. City Flag, Song, and Motto
8. Telegraph Crosswalk Murals
9. Telegraph Avenue Public Art Project
10. Council Referral for Family Friendly Art
11. Hidden Gems in Berkeley Hills
12. Mural Commemorating Black Lives Matter Movement
13. Replacement Mural for Center for Independent Living
14. Harrison Street Corridor Project
Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://www.CityofBerkeley.info/Manager
INFORMATION CALENDAR
December 12, 2023
To: Honorable Mayor and Members of the City Council
From: Housing Advisory Commission
Submitted by: Debbie Potter, Chairperson, Housing Advisory Commission Subject: Housing Advisory Commission Work Plan Fiscal Year 2024
INTRODUCTION
The Housing Advisory Commission (HAC) submits its Fiscal Year (FY) 2024 work plan to the City Council as an information item (Attachment 1).
CURRENT SITUATION AND ITS EFFECTS
In July 2016, the City Council directed all commissions (with certain exceptions) to submit work plans detailing goals and objectives for the year. Plans should be submitted at the start of each fiscal year. Commission work plans were suspended during the past two fiscal years due to the COVID pandemic. The requirement to prepare commission work plans was reinstated for FY 24 (July 1, 2023 – June 30, 2024).
At its October 5, 2023 meeting, the HAC approved its FY 2024 work plan with the following vote:
Action: M/S/C (Johnson/Ortiz-Cedeño) to adopt the 2023-2024 work plan, as amended.
Vote: Ayes: Braslaw, Fain, Johnson, Ortiz-Cedeño, Potter, and Simon-Weisberg. Noes:
none. Abstain: none. Absent: Calavita (unexcused), Mendonca (excused).
The goal of the work plan is to recommend to the City Council affordable housing and community development programs and policies that further social justice and address systemic racism, classism, and inequity in the city of Berkeley.
The FY 2024 work plan goal will be achieved through the following work plan activities:
1. Convene ad hoc year-round subcommittees to work with staff on proposed HTF allocations and Community Development Block Grant (CDBG)-funded public facilities improvements and make funding recommendations to the full HAC.
2. Develop an ordinance regarding fair access and transparency for rental housing applications for City Council consideration.
Housing Advisory Commission Work Plan Fiscal Year 2024 INFORMATION CALENDAR
3. Work with the Civic Arts Commission, via a subcommittee that meets together or concurrently, regarding proposed artist housing initiatives for HAC’s and the Civic Arts Commission’s approval and City Council consideration of any recommended initiatives.
4. Undertake a process to: a) better inform the HAC about Emergency Shelter/Solutions Grant (ESG) and CDBG-funded agencies, programs, and funding needs, and b) enhance public participation and the public’s feedback on program effectiveness ahead of recommending five-year and annual program and funding allocations to City Council.
5. Explore a subcommittee that meets together or concurrently with the Disaster and Fire Safety Commission, or other appropriate bodies, on Housing and Wildfire Risk.
6. Increase opportunities for more direct participation, including exploring hybrid meeting access, with community members and groups to gather input to be included in decision-making and recommendations.
7. Review and make recommendations to City Council regarding various affordable housing policies including inclusionary housing fees, the Housing Preference Policy discrimination study report (if funded), etc.
BACKGROUND
The FY 2024 work plan reflects the HAC’s mission to:
1. Advise the City Council on housing matters, including affordable housing programs and policies and Community Development Block Grant (CDBG) and Emergency Services Grant (ESG) programs and their funding allocations;
2. Recommend to the City Council Housing Trust Fund (HTF) allocations;
3. Serve as the oversight body for Measure O, the $135 million General Obligation bond to fund development of affordable housing; and
4. Review and make recommendations on items referred by the City Council, HAC members, or other commissions.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no direct environmental effects or opportunities associated with the subject of this report.
POSSIBLE FUTURE ACTION
The HAC will continue to work on this Work Plan in order to refine potential outputs, outcomes, activities, and required resources.
FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
It is possible that adoption of new housing-related programs or policies stemming from City Council referrals or City Council-adopted HAC recommendations could result in fiscal impacts to the City.
Housing Advisory Commission Work Plan Fiscal Year 2024 INFORMATION CALENDAR
CONTACT PERSON
Anna Cash, Commission Secretary, HHCS, (510) 981-5403
ATTACHMENTS:
1: Housing Advisory Commission FY 2024 work plan
Housing Advisory Commission
2180 Milvia Street – 2nd Floor • Berkeley • CA • 94704 • Tel. 510.981.5400 • TDD: 510.981.6903 • Fax: 510.981.5450 E-mail: [email protected]
FY 2024 HOUSING ADVISORY COMMISSION WORK PLAN
Mission Statement:
The Housing Advisory Commission:
1. Advises the City Council on housing matters, including affordable housing programs and policies and Community Development Block Grant (CDBG) and Emergency Services Grant (ESG) programs and their funding allocations;
2. Recommends to the City Council Housing Trust Fund (HTF) allocations;
3. Serves as the oversight body for Measure O, the $135 million General Obligation bond to fund development of affordable housing; and
4. Reviews and makes recommendations on items referred by the City Council, HAC members, or other commissions.
In addition, as necessary, the HAC:
1. Hears matters regarding abatement of substandard buildings pursuant to chapter
19.40; and
2. Serves as the appeals board for relocation and correction of code violations as provided in chapter 19.40.
When advising the City Council, the HAC is committing to addressing past and present racial and social inequities in housing and other community development service delivery and approaching its recommendations through a social justice lens.
Goal:
Recommend affordable housing and community development programs and policies that further social justice and address systemic racism, classism and inequity in the city of Berkeley as outlined in HAC’s FY 2024 work plan.
FY 2024 Work Plan Activities:
1. Convene ad hoc year-round subcommittees to work with staff on proposed HTF allocations and CDBG-funded public facilities improvements and make funding recommendations to the full HAC.
2. Develop an ordinance regarding fair access and transparency for rental housing applications for City Council consideration.
3. Work with the Civic Arts Commission, via a subcommittee that meets together or concurrently, regarding proposed artist housing initiatives for HAC’s and the
FY 2024 Housing Advisory Commission Work Plan
Civic Arts Commission’s approval and City Council consideration of any recommended initiatives.
4. Undertake a process to: 1) better inform the HAC about ESG and CDBG- funded agencies, programs, and funding needs, and 2) enhance public participation and the public’s feedback on program effectiveness ahead of recommending five-year and annual program and funding allocations to City Council.
5. Explore a subcommittee that meets together or concurrently with the Disaster and Fire Safety Commission, or other appropriate bodies, on Housing and Wildfire Risk.
6. Increase opportunities for more direct participation, including exploring hybrid meeting access, with community members and groups to gather input to be included in decision- making and recommendations.
7. Review and make recommendations to City Council regarding various affordable housing policies including inclusionary housing fees, the Housing Preference Policy discrimination study report (if funded), etc.
Outcomes:
1. HTF monies pledged to affordable housing projects serving families and housing-insecure households
2. CDBG-funded public facilities constructed in support of non-profits
3. Adoption of a Fair Access and Transparency for Rental Housing Application Ordinance
4. Proposed initiatives to promote affordable artist housing to retain and build the city’s cultural infrastructure
5. Five-Year and Annual CDBG/ESG Plans and funding recommendations that are grounded in service to the city’s low-income and historically marginalized residents
6. Recommendations about protecting low-income residents from wildfire hazards
7. Outcomes that are reflective of the community’s actual needs and concerns through increased consideration and inclusion of community voices, particularly those of low and moderate income
8. Review workplan progress quarterly.
Communications – December 12, 2023
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.
Martin Luther King Jr. Way
1. David Lerman
Policing
2. Gregory Kalkanis
Public Information
3. Mary Behm-Steinberg
Housing Voucher
4. Sameerah Karim
URL’s Only
5. Vivian Warkentin (2)
Tenants Opportunity to Purchase Act
6. Diana Bohn
Repaving Francisco Street
7. David Lerman
Civil Rights
8. Lavell Young
Winter Shelter
9. Elana Auerbach
10. Boona cheema
11. Moni Law
Israel and Gaza Conflict
12. Alejandro Garcia-Paredes
13. Angie Chang
14. Rachel Noel
15. Madeline Pignetti
16. Karen Carroll
17. Boba.bunny05@
18. Greg Garcia-Wilson
19. Steven Lipson
20. Madeline Weinstein
21. Jessica Login
22. Dianna Dar
23. Youval Dar
24. Bryan Weiss
25. Mollie Mindel
26. Deborah Fink
27. Yael Galinson
28. Doni Katz
29. Offer Grembek
30. Jaimie Baron
31. Talia Nagar
32. Elana Naftalin-Kelman
33. Howard Miller
34. Ariel Berson
35. Dan Alter
36. Ayana Davis
37. Alexia Murillo Amezcua
38. Desmid Lyon
39. Andrew Fine
40. Clara Weinstein
41. Orli Loewenberg
42. Raphael Goldman
43. Karen Weil (2)
44. Daniel Frydman
45. Katrin Youdim
46. Emma
47. Leah Rosenthal
48. Tal Garner
49. Sophie
50. Summer Brenner
51. Liberty Schubert
52. Ilana Pearlman
53. Jessica Pearlman
54. Rita Minas
55. Wenrick Family
56. Philippa Kelly
57. Rabbi Chai Levy
58. Elana Auerbach
59. Cris Arguedas
60. Vanessa Davis
61. Meital Mashash
62. Noga Alon
63. Dahlia Frydman Tenenbaum
64. Aviva Gilbert
65. Jenna Lewis
66. Chiara Juster
67. Seth Engel
68. Jennifer Burt
69. Mollie Mindel
70. David Kilimnik
71. Miriam Schultz
72. Rachel Friedman
73. Daniel Green
74. Forouzan Khalili
75. Daniel Green
76. Shira Rome
77. Sarah Crow
78. Kasaia Luckel
79. Arielle Hassid
80. Richard Taylor
81. Vincent Casalaina
82. Rabbi Cat Zavis
83. Rena Greenfield
84. Abby Maimon
85. Arbel Shemesh
86. Ella Lachman
87. Traci Moren
88. Nora Shourd
89. Debbie Tuttle
90. 931 similarly-worded form letters – Vote No on November 28 (Letters are on file at the City Clerk’s Office)
91. 302 similarly-worded form letters – Resolution for Ceasefire and Solidarity with Palestine (Letters are on file at the City Clerk’s Office)
92. 14 similarly-worded form letters – Ceasefire Now (Letters are on file at the City Clerk’s Office)
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