Agenda packet, first session — Berkeley City Council, February 11, 2025 (part 1 of 3)

Tuesday, February 11, 2025 AGENDA Page 1
AGENDA

BERKELEY CITY COUNCIL MEETING
Tuesday, February 11, 2025
6:00 PM
SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702

ADENA ISHII, MAYOR
Councilmembers:

DISTRICT 1 – RASHI KESARWANI DISTRICT 5 – SHOSHANA O’KEEFE DISTRICT 2 – TERRY TAPLIN DISTRICT 6 – BRENT BLACKABY
DISTRICT 3 – BEN BARTLETT DISTRICT 7 – CECILIA LUNAPARRA DISTRICT 4 – IGOR TREGUB DISTRICT 8 – MARK HUMBERT
This meeting will be conducted in a hybrid model with both in -person attendance and virtual participation. Live captioned broadcasts of Council meetings are available on B -TV (Channel 33) and via internet video stream at http://berkeley.granicus.com/MediaPlayer.php?publish_id=1244. All Council meetings are recorded.

To access the meeting remotely use this URL: https://cityofberkeley-info.zoomgov.com/j/1618982548. To request to speak, use the “raise hand” function in Zoom. To join by phone: Dial 1-669-254-5252 or 1-833-568-8864 (Toll Free) and enter Meeting ID: 161 898 2548 . To provide public comment, Press *9 and wait to be recognized by the Chair. To submit a written communication for the public record, email [email protected].

This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953. Any member of the public may attend this meeting, however, if you are feeling sick, please do not attend the meeting in person.

The City Council may take action related to any subject listed on the Agenda.

Pursuant to the City Council Rules of Procedure and State Law, the presiding officer may remove, or cause the removal of, an individual for disrupting the meeting. Prior to removing an individual, the presiding officer shall warn the individual that their behavior is disrupting the meeting and that their failure to cease their behavior may result in their removal. The presiding officer may then remove the individual if they do not promptly cease their disruptive behavior. “Disrupting” means engaging in behavior during a meeting of a legislative body that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting and includes, but is not limited to, a failure to comply with reasonable and lawful regulations adopted by a legislative body, or engaging in behavior that constitutes use of force or a true threat of force.

Government Code Section 84308 (Levine Act) - Parties to a proceeding involving a license, permit, or other entitlement for use are required to disclose if they made contributions over $5 00 within the prior 12 months to any City employee or officer. Parties and participants with a financial interest are prohibited from making more than $500 in contributions to a decisionmaker for the 12 months after the final decision is rendered on the proceeding.

The above contribution disclosures and restrictions do not apply when the proceeding is competitively bid, or involves a personnel or labor contract. For more information, see Government Code Section 84308.

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Tuesday, February 11, 2025 AGENDA Page 2
Preliminary Matters
Roll Call:

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

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

1. Adjourn in Memory of the Stabbing Victim at San Pablo Park

2. Adjourn in Memory of Elise Lusk, Traffic Violence Victim at Ada Street and California Street City Manager Comments: The City Manager may make announcements or provide information to the City Council in the form of an oral report. The Council will not take action on such items but may request the City Manager place a report on a future agenda for discussion.

Public Comment on Non-Agenda Matters: Up to ten persons will be selected to address matters not on the Council agenda. If five or fewer persons are identified to provide non-agenda comment, each person selected will be allotted two minutes each. If more than five persons are selected to address matters not on the Council agenda, each person selected will be allotted one minute each.

In-person attendees wishing to address the Council on matters not on the Council agenda during the initial ten-minute period for such comment, must submit a speaker card to the City Clerk in person at the meeting location and prior to the moment that the Presiding Officer calls for public comment on non - agenda items. Remote attendees must raise their hand in the videoconference application when the Presiding Officer calls for non-agenda speakers. The first five raised hands on the videoconference application will be selected to speak and the first five cards drawn at the meeting will be selected to speak. The number of in-person and remote speakers selected may be adjusted by the Presiding Officer if fewer than five speakers from either format are identified.

The remainder of the speakers wishing to address the Council on non-agenda items will be heard at the end of the agenda.

Public Comment by Employee Unions (first regular meeting of the month): This period of public comment is reserved for officially designated representatives of City of Berkeley employee unions, with five minutes allocated per union if representatives of three or fewer unions wish to speak and up to three minutes per union if representatives of four or more unions wish to speak.

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Tuesday, February 11, 2025 AGENDA Page 3
Consent Calendar
The Council will first determine whether to move items on the agenda for “Action” or “Information” to the “Consent Calendar”, or move “Consent Calendar” items to “Action.” Three members of the City Council must agree to pull an item from the Consent Calendar or Information Calendar for it to move to Action.

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

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

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

Public Comment on Consent Calendar and Information Items Only: The Council will take public comment on any items that are either on the amended Consent Calendar or the Information Calendar. If ten or fewer persons are interested in speaking on an individual agenda item, each speaker may speak for two minutes. If there are more than ten persons interested in speaking, the Presiding Officer may limit the public comment for all speakers to one minute per speaker. Speakers are permitted to yield their time to one other speaker, however no one speaker shall have more than four minutes. The Presiding Officer may, with the consent of persons representing both sides of an issue, allocate a block of time to each side to present their issue. A speaker may only speak once during the period for public comment on Consent Calendar and Information items.

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

Consent Calendar

1. Minutes for Approval
From: City Manager
Recommendation: Approve the minutes for the Council meetings of December 3, 2024 (closed, special, and regular), December 10, 2024 (special and regular).

Financial Implications: None
Contact: Mark Numainville, City Clerk, (510) 981-6900

2. Formal Bid Solicitations and Request for Proposals Scheduled for Possible Issuance After Council Approval on February 11, 2025
From: City Manager
Recommendation: Approve the request for proposals or invitation for bids (attached to staff report) that will be, or are planned to be, issued upon final approval by the requesting department or division. All contracts over the City Manager’s threshold will be returned to Council for final approval.

Financial Implications: Various Funds - $848,000
Contact: Henry Oyekanmi, Finance, (510) 981-7300

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Consent Calendar
Tuesday, February 11, 2025 AGENDA Page 4

3. Contract No. 32300108 Third Amendment: Street Level Advisors, LLC for Housing Consulting Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager or designee to execute a third amendment to Contract No. 32300108 with Street Level Advisors, LLC increasing the contract by $180,000 for consulting services in a total amount not to exceed $379,500, with a contract end date of June 30, 2026.

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

4. Program Manager II Classification: 5% Differential for Assignment in City Manager’s Office
From: City Manager
Recommendation: Adopt a Resolution amending the Unrepresented Employee Manual to add a 5% salary differential to Program Manager II positions assigned to the City Manager’s Office.

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

5. Contract No. 32000223 Amendment: Gray Quarter, Inc. for Accela Professional Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32000223 with Gray Quarter, Inc. (Gray Quarter) for professional services, increasing the amount by $120,000, for a total not-to-exceed amount of $419,500 through January 31, 2026
Financial Implications: U1 Admin Fund - $120,000
Contact: Kevin Fong, Information Technology, (510) 981-6500

Council Consent Items

6. Resolution in Support of the Commissioning of a California Feasibility Study to Implement “Golden State Energy,” a Not-for-Profit Public Utility Model From: Councilmember Tregub (Author), Councilmember Lunaparra (Author) Recommendation: Adopt a resolution in support of the allocation of state fiscal and staff resources to commission a feasibility study that compares various not-for-profit utility models prioritizing public benefits in energy generation, distribution, and transmission; the development an equitable implementation plan that establishes a statewide successor entity known as “Golden State Energy” as a successor to investor-owned utilities such as Pacific Gas and Electric; and transmittal of the Council’s support of such a resolution to Governor Gavin Newsom, Senator Jesse Arreguín (SD7) and Assemblymember Buffy Wicks (AD14).

Financial Implications: See report.

Contact: Igor Tregub, Councilmember, District 4, (510) 981-7140

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Council Consent Items
Tuesday, February 11, 2025 AGENDA Page 5

7. Refer to City Manager study of intersections with traffic diverters From: Councilmember Humbert (Author), Councilmember O'Keefe (Co- Sponsor), Councilmember Blackaby (Co-Sponsor)
Recommendation: Refer to the City Manager a request to have staff prioritize study of intersections that include traffic diverters but do not feature stop signs; additionally, staff are requested to review past Council referrals for adoption of National Association of City Transportation Officials (NACTO) street design standards and provide an update on the status and timeline for meeting past policy directives. Examples of intersections to be studied include but are not limited to: - Ada and California Street; - Grant Street and Berkeley Way; - Yolo and Milvia Street; - McGee and Virginia Street; - Derby and Mabel Streets; - Piedmont and Russell Street; - Hillegass and Woolsey Street; - Park and Russell Street; - Mabel and Russell Street.

Financial Implications: See report
Contact: Mark Humbert, Councilmember, District 8, (510) 981-7180

Action Calendar
The public may comment on each item listed on the agenda for action. For items moved to the Action Calendar from the Consent Calendar or Information Calendar, persons who spoke on the item during the Consent Calendar public comment period may speak again during the Action Calendar public comment period on the item
The Presiding Officer will request that persons wishing to speak line up at the podium, or use the "raise hand" function in Zoom, to determine the number of persons interested in speaking at that time. If ten or fewer persons are interested in speaking on an individual agenda item, each speaker may speak for two minutes. If there are more than ten persons interested in speaking, the Presiding Officer may limit the public comment for all speakers to one minute per speaker. Speakers are permitted to yield their time to one other speaker, however no one speaker shall have more than four minutes. The Presiding Officer may, with the consent of persons representing both sides of an issue, allocate a block of time to each side to present their issue.

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

The Presiding Officer may open and close an additional comment period for Action items on this agenda (excluding any public hearings, appeals, and/or quasi-judicial matters), at the start of the Action Calendar.

Those who speak on an item during this comment period may not speak a second time when the item is taken up by Council.

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Action Calendar – New Business
Tuesday, February 11, 2025 AGENDA Page 6

8. 2009 Leases Audit Follow-Up: Berkeley Faces the Same Risks 16 Years Later From: Auditor
Recommendation: Our recommendations include clarifying roles and responsibilities for lease oversight, updating the lease policy, and developing a complete central list of leases and licenses. We recommend City Council request that the City Manager report back during the next follow-up period in fall 2025, and every year thereafter, regarding the status of the 8 re-opened recommendations until reported fully implemented by the Public Works Department and City Manager’s Office. They have agreed to our findings, re-opened recommendations, and guidance for implementing the recommendations. Please see our report for their complete response.

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

9. Proposed Amendments to the Building Emissions Saving Ordinance (BESO) From: City Manager
Recommendation: Adopt the first reading of amendments to the Building Emissions Saving Ordinance (BESO), Chapter 19.81 of the Berkeley Municipal Code, to establish a flexible resilience standard for small residential buildings containing up to four units.

Financial Implications: See report
Contact: Jordan Klein, Planning and Development, (510) 981-7400

Information Reports

10. FY 2024 Fourth Quarter Investment Report: Ended June 30, 2024 From: City Manager
Contact: Henry Oyekanmi, Finance, (510) 981-7300

11. LPO NOD: 1310 University Avenue/#LMSA2024-0001
From: City Manager
Contact: Jordan Klein, Planning and Development, (510) 981-7400

12. LPO NOD: 2500-12 San Pablo Avenue/#LMIN2024-0004
From: City Manager
Contact: Jordan Klein, Planning and Development, (510) 981-7400

Public Comment – Items Not Listed on the Agenda
Adjournment

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Tuesday, February 11, 2025 AGENDA Page 7
NOTICE CONCERNING YOUR LEGAL RIGHTS : If you object to a decision by the City Council to approve or deny a use permit or variance for a project the following requirements and restrictions apply:
1) No lawsuit challenging a City decision to deny (Code Civ. Proc. §1094.6(b)) or approve (Gov. Code 65009(c)(5)) a use permit or variance may be filed more than 90 days after the date the Notice of Decision of the action of the City Council is mailed. Any lawsuit not filed within that 90 -day period will be barred. 2) In any lawsuit that may be filed against a City Council decision to approve or deny a use permit or variance, the issues and evidence will be limited to those raised by you or someone else, orally or in writing, at a public hearing or prior to the close of the last public hearing on the project.

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

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

Communications to the City Council are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to the City Council, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, you may deliver communications via U.S. Postal Service to the City Clerk Department at 2180 Milvia Street. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the City Clerk Department for further information.

Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the public counter at the City Clerk Department located on the first floor of City Hall located at 2180 Milvia Street, and through the City's online records portal:
https://records.cityofberkeley.info/.

Agendas, agenda reports, and revised/supplemental material may be accessed via the online agenda for this meeting at:
https://berkeleyca.gov/your-government/city-council/city-council-agendas and may be accessed at reference desks at the following locations:

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

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

COMMUNICATION ACCESS INFORMATION:

This meeting is being held in a wheelchair accessible location.

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

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

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Tuesday, February 11, 2025 AGENDA Page 8
Captioning services are provided at the meeting, on B -TV, and on the Internet. In addition, assisted listening devices for the hearing impaired are available from the City Clerk prior to the meeting, and are to be returned before the end of the meeting.

Questions regarding public participation may be addressed to the City Clerk Department (510) 981 -6900 or by email at [email protected].

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the agenda for this meeting of the Berkeley City Council was posted at the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way, as well as on the City’s website, on January 30, 2025.

Mark Numainville, City Clerk

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

Item #7: Refer to City Manager study of intersections with traffic diverters From: Councilmember Humbert (Author), Councilmember O'Keefe (Co-Sponsor), Councilmember Blackaby (Co-Sponsor)

1. David Lerman (2)

2. Shirley Kirsten

3. Sandra Sanchez

4. Mike Dunham

5. Aviv Nitsan

6. Charles Siegel

7. Helga Recke
Missing Middle

8. Caephran McKenna (2)

Civic Center

9. Leah Amzel

10. Nicole Herron

11. Kathi Pugh and Josh Maddox

12. Marnie Ganotis

UA Theater

13. Carol Denney

14. Melanie Lawrence and family

15. Laura Linden

16. Arlene Oweichik

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Tuesday, February 11, 2025 AGENDA Page 9

Public Restroom Plans

17. Dr. Nicola Spence and Hans Reinhardt on behalf of Alpha Design Custom Furniture

18. Aimee Baldwin and Meryl Siegal

19. Carol Denney

20. Carol Crooks

21. Dirk

Planning Commission Meetings

22. Bernard Marszalek

23. Carol Denney

Protecting Berkeley

24. Elliot Peters

Fire Concerns

25. Jeffrey Heller

26. Leah and Rosenthal, Ellen Feingenbaum and Peter Schwab (2)

27. Yen Trac (2)

28. Anna Rabkin

29. Yelda Bartlett (2)

30. Jennifer Lombardi (2)

31. Samantha Johnston

32. Isabelle Gaston

33. Kris Hill

UC Berkeley Class

34. Igal Fridman

35. Mark Eckstein

Safety Concerns

36. David Lerman

37. Gina Rieger

Emergency Calls

38. Ory Sandel

Tedx Berkeley

39. Shreeya Julakanti

Community Conversations

40. Nigel

Chess Club

41. Jesse Sheehan (2)

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Tuesday, February 11, 2025 AGENDA Page 10
Traffic Data

42. Margot Smith

Liability for Falling Trees

43. Jim Haydel

OLA at Berkeley Marina

44. Barbara Shayesteh

Speed Tables Treatments

45. Sandra Sanchez

46. Naveen Gattu

Strawberry Creek Park – Bike Parking

47. Mariah Lauritzen

Shattuck Ave Repairs

48. Liz Horowitz

Amtrak Parking

49. Kevin Mei (2)

2nd Street Encampment

50. Yesica Prado and Gordon Gilmore

7th Annual Galo Day Festival

51. Nes Marco Morales

Fireworks

52. Anne Herrick

Letter

53. Eid

Puppies on Center Street

54. Cash Levi Caris

Restaurant Park-lets

55. Martha Stackawicz

BACs STAIRS

56. Ann Marie Davis

Sidewalk Repair

57. Emerald Canary

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Tuesday, February 11, 2025 AGENDA Page 11
Encampment Sweeps

58. Russell Bates

59. Nancy Halloran

60. Ellie Matejka

61. Rebecca Salsburg-Frank

Encampment Concern

62. Manasi Panditrao

Housing Choice Voucher

63. Hector91 Phuentes

Response to Request

64. Jack Kurzweil

65. Cindy Shamban

Fund Request

66. Henry DeNero

URL’s

67. Russbumper (10)

68. Josh Atwood

Forwards

69. Russbumper

Supplemental Communications and Reports
Items received by the deadlines for submission will be compiled and distributed as follows. If no items are received by the deadline, no supplemental packet will be compiled for said deadline.

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

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

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

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Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/

CONSENT CALENDAR
February 11, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Mark Numainville, City Clerk
Subject: Minutes for Approval

RECOMMENDATION
Approve the minutes for the Council meetings of December 3, 2024 (closed, special, and regular), December 10, 2024 (special and regular).

CONTACT PERSON
Mark Numainville, City Clerk, (510) 981-6900
Attachments:

1. December 3, 2024 – Special Closed City Council Meeting

2. December 3, 2024 – Special City Council Meeting

3. December 3, 2024 – Regular City Council Meeting

4. December 10, 2024 – Special City Council Meeting

5. December 10, 2024 – Regular City Council Meeting

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Tuesday, December 3, 2024 MINUTES Page 1

B E R K E L E Y C I T Y C O U N C I L

S P E C I A L M E E T I N G M I N U T E S
TUESDAY, DECEMBER 3, 2024
4:00 P.M.

SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702 TELECONFERENCE LOCATION - 13534 BALI WAY, MARINA DEL REY, CA 90292

JESSE ARREGUIN, MAYOR
Councilmembers:

To access the meeting remotely use this URL: https://cityofberkeley-info.zoomgov.com/j/1608079819. To request to speak, use the “raise hand” function in Zoom. To join by phone: Dial 1-669-254-5252 or 1-833-568-8864 (Toll Free) and enter Meeting ID: 160 807 9819. To provide public comment, Press *9 and wait to be recognized by the Chair. To submit a written communication for the public record, email [email protected].

The City Council may take action related to any subject listed on the Agenda.

Government Code Section 84308 (Levine Act) - Parties to a proceeding involving a license, permit, or other entitlement for use are required to disclose if they made contributions over $250 within the prior 12 months to any City employee or officer. Parties and participants with a financial interest are prohibited from making more than $250 in contributions to a decisionmaker for the 12 months after the final decision is rendered on the proceeding.

Attachment 1

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Tuesday, December 3, 2024 MINUTES Page 2
Preliminary Matters
Roll Call: 4:11 p.m.

Present: Tregub, Hahn, Lunaparra, Humbert, Wengraf

Absent: Kesarwani, Taplin, Bartlett
Councilmember Taplin present at 4:34 p.m.

Councilmember Bartlett present at 5:03 p.m.

Public Comment - Limited to items on this agenda only – 0 speakers CLOSED SESSION:

The City Council will convene in closed session to meet concerning the following:

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(a) and 54956.9(d)(2) and (e)(3) a. Government Claim of Safeco as subrogee of Michael and Susanne Kossa-Rienzi Claim filed on May 3, 2023
Government Code section 54956.9(e)(3) requires that the government claim be available for public inspection; the claim is attached to this agenda.

Action: No reportable action taken.

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(a) and 54956.9(d)(2)
a. Public Employees Union Local 1 v. City of Berkeley
Arbitration Request Filed May 6, 2022 regarding PEPRA Ramp Down Action: No reportable action taken.

3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8:

Property Address: 1250-1288 Ninth Street, 1226 9 th Street, 1249 8th Street, 1223 8th Street, 1221 8th Street, and 930 Harrison Street, Berkeley, CA 94710 Agency Negotiators: Paul Buddenhagen, City Manager’s Office; David Sprague, Fire Department; Dionne Early, Public Works
Negotiating Parties: City of Berkeley and Smith and Walters, Inc.

Property Owner: Smith and Walters, Inc.

Under Negotiation: Price and Terms
Action: No reportable action taken.

OPEN SESSION:

No reportable action taken.

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Tuesday, December 3, 2024 MINUTES Page 3
Adjournment
Action: M/S/C (Wengraf/Taplin) to adjourn the meeting.

Vote: Ayes – Taplin, Bartlett, Tregub, Hahn, Lunaparra, Humbert, Wengraf; Noes – None; Abstain – None; Absent – Kesarwani.

Adjourned at 5:08 p.m.

I hereby certify that the foregoing is a true and correct record of the City Council closed session meeting held on December 3, 2024.
________________________
Mark Numainville, City Clerk

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Tuesday, December 3, 2024 MINUTES Page 1

M I N U T E S

S P E C I A L M E E T I N G O F T H E

B E R K E L E Y C I T Y C O U N C I L
Tuesday, December 3, 2024
5:30 PM
SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702 TELECONFERENCE LOCATION - 13534 BALI WAY, MARINA DEL REY, CA 90292

JESSE ARREGUIN, MAYOR
Councilmembers:

DISTRICT 1 – RASHI KESARWANI DISTRICT 5 – SOPHIE HAHN
DISTRICT 2 – TERRY TAPLIN DISTRICT 6 – SUSAN WENGRAF
DISTRICT 3 – BEN BARTLETT DISTRICT 7 – CECILIA LUNAPARRA DISTRICT 4 – IGOR TREGUB DISTRICT 8 – MARK HUMBERT
This meeting will be conducted in a hybrid model with both in-person attendance and virtual participation. Live captioned broadcasts of Council meetings are available on B-TV (Channel 33) and via internet video stream at http://berkeley.granicus.com/MediaPlayer.php?publish_id=1244. All Council meetings are recorded.

To access the meeting remotely use this URL: https://cityofberkeley-info.zoomgov.com/j/1600367731 To request to speak, use the “raise hand” function in Zoom. To join by phone: Dial 1-669-254-5252 or 1-833-568-8864 (Toll Free) and enter Meeting ID: 160-036-7731 To provide public comment, Press *9 and wait to be recognized by the Chair. To submit a written communication for the public record, email [email protected].

The City Council may take action related to any subject listed on the Agenda.

Government Code Section 84308 (Levine Act) - Parties to a proceeding involving a license, permit, or other entitlement for use are required to disclose if they made contributions over $250 within the prior 12 months to any City employee or officer. Parties and participants with a financial interest are prohibited from making more than $250 in contributions to a decisionmaker for the 12 months after the final decision is rendered on the proceeding.

Attachment 2

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Tuesday, December 3, 2024 MINUTES Page 2
Preliminary Matters
Roll Call: 5:43 p.m.

Present: Taplin, Bartlett, Tregub, Hahn, Lunaparra, Humbert, Wengraf

Absent: Kesarwani
Ceremonial Items

1. Recognition of John Muir Elementary School as a National Blue Ribbon School

2. Recognition of New Bridge Foundation’s Service to the Community Consent Calendar
Public Comment on Consent Calendar and Information Items Only: 0 speakers.

Action: M/S/C (Hahn/Bartlett) to adopt the Consent Calendar in one motion except as indicated.

Vote: Taplin, Bartlett, Tregub, Hahn, Lunaparra, Humbert, Wengraf; Noes – None; Abstain – None; Absent – Kesarwani.

Consent Calendar

1. Memorandum of Understanding: SEIU Local 1021 CSU/PTRLA From: City Manager
Recommendation: Adopt a Resolution 1) approving a successor Memorandum of Understanding (hereafter referred to as “MOU”) with Service Employees International Union Local 1021 Community Services & Part-Time Recreation Leaders Association (hereafter “SEIU Local 1021 CSU/PTRLA” or “Union”) for a three-year term from June 27, 2024 to July 26, 2027 and authorizing the City Manager to execute and implement the terms and conditions of employment set forth in the new MOU and to make non-substantive edits to the format and language of the MOU in alignment with the tentative agreement, and conforming to legal requirements; and 2) approving new Classification and Salary tables for SEIU Local 1021 CSU/PTRLA classifications that implement the salary adjustments reflected in the new MOU and supersede prior salary resolutions.

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800 Action: Adopted Resolution No. 71,583–N.S.

Adjournment
Action: M/S/C (Humbert/Lunaparra) to adjourn the meeting.

Vote: Taplin, Bartlett, Tregub, Hahn, Lunaparra, Humbert, Wengraf; Noes – None; Abstain – None; Absent – Kesarwani.

Adjourned at 5:59 p.m.

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Tuesday, December 3, 2024 ANNOTATED AGENDA Page 3
I hereby certify that the foregoing is a true and correct record of the City Council special meeting held on December 3, 2024.
________________________
Mark Numainville, City Clerk
Communications
Item #1: Memorandum of Understanding: SEIU Local 1021 CSU/PTRLA

1. Kimi Sakashita

2. Nancy Schimmel

3. Jacob Machnik

4. Jean Tepperman

5. Naomi A. Schapiro

6. Cristina Edwards
Supplemental Communications and Reports 1
 None
Supplemental Communications and Reports 2
 None
Supplemental Communications and Reports 3
 None

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Tuesday, December 3, 2024 MINUTES Page 1

MINUTES

BERKELEY CITY COUNCIL MEETING
Tuesday, December 3, 2024
6:00 PM
SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702 TELECONFERENCE LOCATION - 13534 BALI WAY, MARINA DEL REY, CA 90292

JESSE ARREGUIN, MAYOR
Councilmembers:

The City Council may take action related to any subject listed on the Agenda.

Government Code Section 84308 (Levine Act) - Parties to a proceeding involving a license, permit, or other entitlement for use are required to disclose if they made contributions over $250 within the prior 12 months to any City employee or officer. Parties and participants with a financial interest are prohibited from making more than $250 in contributions to a decisionmaker for the 12 months after the final decision is rendered on the proceeding.

Attachment 3

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Tuesday, December 3, 2024 MINUTES Page 2
Preliminary Matters
Roll Call: 6:00 p.m.

Present: Taplin, Bartlett, Tregub, Hahn, Lunaparra, Humbert, Wengraf

Absent: Kesarwani
Councilmember Kesarwani present at 6:04 p.m.

Councilmember Kesarwani participated remotely under the Just Cause exception in the Brown Act as amended by AB 2449.

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

Ceremonial Matters:

1. Recognition of Councilmember Sophie Hahn for her service to the Berkeley

2. Recognition of Councilmember and Acting Mayor Susan Wengraf for her service to Berkeley

3. Recognition of State Senator Jesse Arreguin for his service as Mayor of Berkeley City Manager Comments: None
City Auditor Comments: The City Auditor highlighted the progress in the Audit Status Reports on the agenda.

Public Comment on Non-Agenda Matters: 20 speakers.

Public Comment by Employee Unions: 1 speaker.

Recess: 8:09 p.m. – 8:25 p.m.

Consent Calendar
Public Comment on Consent Calendar and Information Items Only: 12 speakers.

Action: M/S/C (Bartlett/Humbert) to adopt the Consent Calendar in one motion except as indicated.

Vote: All Ayes.

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Consent Calendar
Tuesday, December 3, 2024 MINUTES Page 3

1. Amending BMC Section 9.04.165 -Tax Exemption for Research & Development Grants
From: Mayor Arreguin (Author), Councilmember Humbert (Co-Sponsor), Councilmember Tregub (Co-Sponsor)
Recommendation: Adopt second reading of Ordinance No. 7,937-N.S. amending Berkeley Municipal Code Section 9.04.165 to exempt the taxation of business gross receipts relating to government and philanthropic research and development grants in the public interest.

First Reading Vote: All Ayes.

Financial Implications: See report.

Contact: Jesse Arreguin, Mayor, (510) 981-7100
Action: Adopted second reading of Ordinance No. 7,937–N.S.

2. Ashby BART Transit Oriented Development (TOD) Legal Agreements From: City Manager
Recommendation: Adopt second reading of Ordinance No. 7,939-N.S. that:

1. Authorizing the City Manager to execute contractual agreements with San Francisco Bay Area Rapid Transit District (BART) in order to effectuate transit- oriented development in accordance with the nonbinding term sheet adopted by Council on September 16, 2024 (Resolution No. 71,514-N.S.) and executed by the City and BART on September 21, 2024; and

2. Adopting the Addendum to the Ashby and North Berkeley BART Stations Transit Oriented Development (TOD) Zoning Project EIR and the Adeline Corridor Specific Plan EIR.

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Jordan Klein, Planning and Development, (510) 981-7400 Action: Adopted second reading of Ordinance No. 7,939–N.S.

3. Amendment: FY 2025 Annual Appropriations Ordinance
From: City Manager
Recommendation: Adopt second reading of Ordinance No. 7,940-N.S. amending the FY 2025 Annual Appropriations Ordinance No. 7,926–N.S. for fiscal year 2025 based upon recommended re-appropriation of committed FY 2024 funding and other adjustments authorized since July 1, 2024.

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Sharon Friedrichsen, Budget Manager, (510) 981-7000 Action: Adopted second reading of Ordinance No. 7,940–N.S.

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Consent Calendar
Tuesday, December 3, 2024 MINUTES Page 4

4. Amendments to BMC Chapter 22.16, Development Agreement Procedures From: City Manager
Recommendation: Adopt second reading of Ordinance No. 7,941-N.S. amending BMC Chapter 22.16, “Development Agreement Procedures.”
First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Jordan Klein, Planning and Development, (510) 981-7400 Action: Adopted second reading of Ordinance No. 7,941–N.S.

5. Adopt the updated Revolving Loan Fund (RLF) Administrative Plan and transfer RLF program administration to Working Solutions, a federally certified Community Development Financial Institution (CDFI).

From: City Manager
Recommendation: Adopt two Resolutions to:

1. Adopt changes to the Administrative Plan of the Berkeley Revolving Loan Fund (RLF) to allow for third party administration of the RLF.

2. Authorize the City Manager to execute a sole source contract and any amendments with Working Solutions, a federally certified Community Development Financial Institution (CDFI), to provide loan origination, servicing, and technical assistance to Berkeley’s existing and future RLF participants and fund management for a renewable ten-year term.

Financial Implications: See report.

Contact: Eleanor Hollander, Economic Development, (510) 981-7530 Action: Adopted Resolution No. 71,584–N.S. (Administrative Plan), and Resolution No. 71,585–N.S. (Contract).

6. Memorandum of Understanding: Public Employees Union – Local One From: City Manager
Recommendation: Adopt a Resolution 1) approving a successor Memorandum of Understanding (hereafter referred to as “MOU”) with Public Employees Union – Local One (hereafter referred to as the “Union”) for a three-year term from June 27, 2024 to July 26, 2027 and authorizing the City Manager to execute and implement the terms and conditions of employment set forth in the new MOU and to make non- substantive edits to the format and language of the MOU in alignment with the tentative agreement, and conforming to legal requirements; and 2) approving a new Classification and Salary table for Public Employees Union – Local One classifications that implement the salary adjustments reflected in the new MOU and supersede prior salary resolutions.

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800 Action: Adopted Resolution No. 71,586–N.S. including supplemental material in Supplemental Communications Packet #1 from the City Manager.

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Consent Calendar
Tuesday, December 3, 2024 MINUTES Page 5

7. Donation: Memorial Bench at the Cesar Chavez Park in memory of Lawrence "Lon" Mullen
From: City Manager
Recommendation: Adopt a Resolution accepting a cash donation in the amount of $3,400 for a memorial bench to be placed at the Cesar Chavez Park in memory of Lawrence "Lon" Mullen.

Financial Implications: See report.

Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700 Action: Adopted Resolution No. 71,587–N.S.

8. Donation from the Eli Kane Fund for the Solano-Peralta Park Improvement Project
From: City Manager
Recommendation: Adopt a Resolution accepting a cash donation of up to $86,496 from the Eli Kane Fund to complete phase 3 of the Solano-Peralta Park Improvement Project, including a memorial bench/table in memory of their son, Eli Kane.

Financial Implications: See report.

Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700 Action: Adopted Resolution No. 71,588–N.S.

9. Contract: Azul Works, Inc. for Ohlone Park Restroom and Lighting project From: City Manager
Recommendation: Adopt a Resolution: 1. Approving the plans and specifications for the Ohlone Park Restroom and Lighting Project; and 2. Accepting the bid of the lowest responsive and responsible bidder, Azul Works, Ince.; and 3. Authorizing the City Manager to execute a contract and any amendments, extentions or other change orders until completion of the project in accordance with the approved plans and specifications, with Azul Works, Inc., for the Ohlone Park Restroom and Lighting Project at 1502 Delaware Street, 1641 Hearst Ave, 1701 Hearst Ave, and 1800 Hearst Ave, in an amount not to exceed $882,278 which includes a base contract amount of $698,000, plus $69,198 for Add Alternates No. 2 and 3 and a 15% contingency in the amount of $115,080.

Financial Implications: See report.

Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700 Action: Adopted Resolution No. 71,589–N.S.

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Consent Calendar
Tuesday, December 3, 2024 MINUTES Page 6

10. Contracts: On-Call Planning and Environmental Services From: City Manager
Recommendation: Adopt 16 Resolutions authorizing the City Manager to approve contracts and any amendments with the following firms for on-call planning and environmental review services, for a total contract period of three years:

1. CSG Consultants, Inc. in an amount not to exceed $1,000,000; and

2. Environmental Science Associates in an amount not to exceed $1,000,000; and

3. Rincon Consultants, Inc. in an amount not to exceed $1,000,000; and

4. Stantec Consulting Services, Inc. in an amount not to exceed $1,000,000; and

5. MIG in an amount not to exceed $1,000,000; and

6. PlaceWorks in an amount not to exceed $1,000,000; and

7. Architectural Resources Group in an amount not to exceed $500,000; and

8. Ascent in an amount not to exceed $500,000; and

9. Chronicle Heritage in an amount not to exceed $500,000; and

10. EPD Solutions, Inc. in an amount not to exceed $500,000; and

11. FirstCarbon Solutions in an amount not to exceed $500,000; and

12. Illingworth & Rodkin, Inc. in an amount not to exceed $500,000; and

13. ICF Jones & Stokes, Inc. in an amount not to exceed $500,000; and

14. LSA in an amount not to exceed $500,000; and

15. Meridian Consultants in an amount not to exceed $500,000; and

16. Ratcliffe Consulting in an amount not to exceed $200,000.

Financial Implications: See report.

Contact: Jordan Klein, Planning and Development, (510) 981-7400 Action: Adopted Resolution No. 71,590–N.S. (CSG Consultants), Resolution No. 71,591–N.S. (Environmental Science), Resolution No. 71,592–N.S. (Rincon Consultants), Resolution No. 71,593–N.S. (Stantec Consulting), Resolution No. 71,594–N.S. (MIG), Resolution No. 71,595–N.S. (PlaceWorks), Resolution No. 71,596–N.S. (Architectural Resources), Resolution No. 71,597–N.S. (Ascent), Resolution No. 71,598–N.S. (Chronicle Heritage), Resolution No. 71,599–N.S. (EPD Solutions), Resolution No. 71,600–N.S. (FirstCarbon Solutions), Resolution No. 71,601–N.S. (Illingworth & Rodkin), Resolution No. 71,602–N.S. (ICF Jones & Stokes), Resolution No. 71,603–N.S. (LSA), Resolution No. 71,604–N.S. (Meridian Consultants), and Resolution No. 71,605–N.S. (Ratcliffe Consulting).

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Consent Calendar
Tuesday, December 3, 2024 MINUTES Page 7

11. Lease Agreement – The Framer’s Workshop LLC, at 2435 and 2439 Channing Way in Telegraph-Channing Mall and Garage
From: City Manager
Recommendation: Adopt first reading of an Ordinance authorizing the City Manager to execute a lease agreement with Framer’s Workshop LLC, a limited liability corporation to use and occupy 2435 and 2439 Channing Way inside the Telegraph- Channing Mall and Garage for a ten (10) year lease term with the option to extend for two additional five (5) year terms. The initial lease term is anticipated to begin February 1, 2025.

Financial Implications: See report.

Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted first reading of Ordinance No. 7,942–N.S. Second reading scheduled for December 10, 2024.

12. Lease Amendment: We Wield The Hammer at 2440 Durant Avenue in the Telegraph-Channing Mall and Garage
From: City Manager
Recommendation: Adopt first reading of an Ordinance authorizing the City Manager to execute a Lease Amendment with We Wield The Hammer, a 501c3 organization, to use and occupy 2440 Durant Avenue for a five (5) year lease term with option to extend for one additional five (5) year term. This Lease Amendment modifies the Lease Commencement Date, Rent Commencement Date and increases months of rent abatement from six (6) to nine (9) months.

Financial Implications: See report.

Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted first reading of Ordinance No. 7,943–N.S. Second reading scheduled for December 10, 2024.

13. Lease Amendment: Dorothy Day House dba Dorothy’s Closet at 2425a Channing Way in the Telegraph-Channing Mall and Garage
From: City Manager
Recommendation: Adopt first reading of an Ordinance authorizing the City Manager to execute a Lease Amendment with Dorothy Day House, a 501c3 organization, d.b.a Dorothy’s Closet to use and occupy 2425a Channing Way for a five (5) year lease term with option to extend for one additional five (5) year term. This Lease Amendment proposes a rental rate reduction $2.26 per square foot per month with an annual 3% increase to $1.95 per square foot with no annual increase.

Financial Implications: See report.

Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted first reading of Ordinance No. 7,944–N.S. Second reading scheduled for December 10, 2024.

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Consent Calendar
Tuesday, December 3, 2024 MINUTES Page 8

14. Contract No. 32500091 Amendment: Ardurra Group, Inc. for on-site Traffic Engineering support services
From: City Manager
Recommendation: Adopt a Resolution satisfying requirements of the City of Berkeley allowing the City to participate in competitively bid contracts, authorizing the City Manager to execute a Contract No. 32500091 Amendment with Ardurra Group, Inc. for on-site traffic engineering services to augment staffing in the Transportation Division’s Traffic Engineering and Transportation Planning units in an amount not to exceed $500,000 through June 30th, 2026.

Financial Implications: See report.

Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,606–N.S.

15. Officially Name the Harrison Skate Park in honor of Terrance McCrary From: Parks and Waterfront Commission
Recommendation: Adopt a Resolution to officially name the Harrison Skate Park in honor of Terrance McCrary.

Financial Implications: See report.

Contact: Roger Miller, Commission Secretary, (510) 981-6700 Action: Adopted Resolution No. 71,607–N.S. as revised in Supplemental Communications Packet #1 from Councilmember Kesarwani to correct the name to Terrance McCrary, Jr.

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Council Consent Items
Tuesday, December 3, 2024 MINUTES Page 9

16. Berkeley Green New Deal: Environmental Justice and Workforce Development (Reviewed by the Land Use, Housing & Economic Development Committee) From: Councilmember Taplin (Author), Councilmember Bartlett (Co-Sponsor), Councilmember Kesarwani (Co-Sponsor)
Recommendation: Refer consideration of the following concepts to the Land Use, Housing, and Economic Development (LUHED) Policy Committee; City Manager; Planning Commission; and Environment and Climate Commission for inclusion in General Plan amendments pursuant to California Government Code Section 65302(h) to advance the city's environmental justice goals under a Just Transition Framework:
-Just Transition principles adopted by City Council in Resolution No. 70,171–N.S. “Resolution Committing the City of Berkeley to a Just Transition from Fossil Fuels and the Creation of a West Berkeley and South Berkeley Green New Deal”; -Transportation Demand Management (TDM) planning to reduce Vehicle Miles Traveled (VMT) per capita by at least 25% by 2030;
-The development of a workforce development board to increase equitable access to green jobs and accelerate the fossil-free economy.

Policy Committee Recommendation: To forward the item to Council with a Qualified Positive Recommendation to refer this item to the budget process and to the Environment and Climate Commission for further consideration.

Financial Implications: See report.

Contact: Terry Taplin, Councilmember, District 2, (510) 981-7120 Action: Approved recommendation of the Land Use, Housing & Economic Development Committee.

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Council Consent Items
Tuesday, December 3, 2024 MINUTES Page 10

17. Affordable Housing for Artists: AB-812 Implementation and Cultural District Statutory Standardization (Reviewed by the Land Use, Housing & Economic Development Committee)
From: Councilmember Taplin (Author), Councilmember Hahn (Co-Sponsor) Recommendation: Pursuant to California Government Code Section 65914.8, refer to the City Manager, City Attorney, and Planning Commission: (1) To study and develop an Ordinance and implementation plan for Assembly Bill 812 (2023) to reserve for artists up to 10 percent of Below Market Rate units under Berkeley Municipal Code 23.328 (Inclusionary Housing) within a half-mile of a state- designated cultural district or within any similar locally designated cultural district, with consideration for consistency with existing Affordable Housing Preference Police, (2) Consider common standards for locally designated cultural districts, including but not limited to Overlay Zones, and implementation of cultural district designation within the boundaries of Area Specific Plans, including but not limited to the Adeline Corridor and San Pablo Corridor Specific Plans, (3) Pursuant to California Government Code Section 8758, consider solicitation of state designation for cultural districts in the City of Berkeley.

Policy Committee Recommendation: To forward the item to Council with a Qualified Positive Recommendation that the Council:

1. Refer to the City Manager and the Civic Arts Commission to: a) Consider common standards for locally designated cultural districts, including but not limited to Overlay Zones, and implementation of cultural district designation within the boundaries of Area Specific Plans, including but not limited to the Adeline Corridor and San Pablo Corridor Specific Plans, b) Pursuant to California Government Code Section 8758, consider solicitation of state designation for cultural districts in the City of Berkeley.

2. Defer referral of the study and development of an ordinance and implementation plan until later in the process when there is more information regarding the applicable standards and definitions.

Financial Implications: See report
Contact: Terry Taplin, Councilmember, District 2, (510) 981-7120 Action: Councilmember Tregub added as a co-sponsor. Approved recommendation of the Land Use, Housing & Economic Development Committee.

18. Bicycle and Pedestrian Access on the Richmond-San Rafael Bridge From: Councilmember Lunaparra (Author), Councilmember Humbert (Co- Sponsor), Councilmember Kesarwani (Co-Sponsor)
Recommendation: Adopt a Resolution affirming the City of Berkeley’s support for permanent 24/7 protected bicycle and pedestrian access to the Richmond-San Rafael Bridge Trail.

Financial Implications: See report
Contact: Cecilia Lunaparra, Councilmember, District 7, (510) 981-7170 Action: Item 18 continued to December 10, 2024.

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Action Calendar – Public Hearings
Tuesday, December 3, 2024 MINUTES Page 11

19. Renewal of the Solano Avenue BID for Calendar Year 2025 From: City Manager
Recommendation: Conduct a public hearing and, upon conclusion, adopt a Resolution confirming the Annual Report and Budget for the Solano Avenue Business Improvement District (hereafter, “Solano BID Advisory Board” or “the BID”) for 2024-2025 and, if no majority protest exists, levy annual assessments in the District for calendar year 2025 to finance services and improvements and authorize a fiscal agency contract for receipt and expenditure of District funds.

Financial Implications: See report.

Contact: Eleanor Hollander, Economic Development, (510) 981-7530 Public Testimony: The Acting Mayor opened the public hearing. 0 speakers.

M/S/C (Hahn/Bartlett) to close the public hearing.

Vote: All Ayes.

Action: M/S/C (Wengraf/Humbert) to adopt Resolution No. 71,608–N.S.

Vote: All Ayes.

20. Zoning Ordinance Amendments: Keep Innovation in Berkeley From: City Manager
Recommendation: Conduct a public hearing and, upon conclusion, adopt first reading of an Ordinance amending Berkeley Municipal Code Title 23 to encourage Research and Development (R&D) uses in Berkeley.

Financial Implications: See report
Contact: Jordan Klein, Planning and Development, (510) 981-7400 Public Testimony: The Acting Mayor opened the public hearing. 7 speakers.

M/S/C (Taplin/Hahn) to close the public hearing.

Vote: All Ayes.

Action: M/S/C (Taplin/Humbert) to adopt first reading of Ordinance No. 7,945–N.S. as revised in Supplemental Communications Packet #1 by the City Manager.

Second reading scheduled for December 10, 2024.

Vote: All Ayes.

Information Reports

21. Staff Shortages: City Services Constrained by Staff Retention Challenges and Delayed Hiring Audit Status Report
From: City Manager
Contact: Anne Cardwell, City Manager's Office, (510) 981-7000 Action: Received and filed.

22. Measure FF Spending Audit Status Report
From: City Manager
Contact: David Sprague, Fire, (510) 981-3473
Action: Received and filed.

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Information Reports
Tuesday, December 3, 2024 MINUTES Page 12

23. Audit Recommendation Status - Berkeley Police: Improvements Needed to Manage Overtime and Security Work for Outside Entities
From: City Manager
Contact: Jennifer Louis, Police, (510) 981-5900
Action: Received and filed.

Public Comment – Items Not Listed on the Agenda - 3 speakers.

Adjournment
Action: M/S/C (Wengraf/Bartlett) to adjourn the meeting.

Vote: All Ayes.

Adjourned at 9:43 p.m.

I hereby certify that the foregoing is a true and correct record of the City Council regular meeting held on December 3, 2024.
________________________
Mark Numainville, City Clerk
Communications
199 Seawall

1. Daniel Auten
Fair Contract

2. Diana Bohn

3. Elana Auerbach

4. Channing Kennedy

5. Friends of Adeline

6. 26 Similarly worded form letters
Elmwood Neighborhood Safety Meeting

7. Claire Schooley
Mayoral Election

8. Nick Frababsilio
Ashby BART

9. Christopher Smith
Peace and Justice Commission Resolution

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Tuesday, December 3, 2024 MINUTES Page 13

10.Diana Bohn
City Concerns

11.Nicola Spence (2)
Middle East Conflict

12.Judy Zagha (2)

13.Rachael Soares
Crosswalk Concerns

14.Alex S. Merenkov
La Pena Cultural Center

15.Berklee Sati

16.Sylvia Sherman (2)

17.Hector Mendez

18.Craig McCaleb

19.Tom Miller

20.Liz Lisle
Berkeley Art Center

21.Youngmi Angela Pak
CA Theater Project

22.John Craner

23.EJ Cire

24.Eric Fenster

25.Tai Yu

26.Mark Rhoades
Zoning

27.Verna Winters

28.David Brandon

29.Kate Kirkhuff

30.Aaryaman Singhal

31.Ruben Hernandez Story

32.Jason N. Lawrence

33.Cassandra Turgman

34.Jack Kurzweil
Parking Stickers

35.Liz Arenas
Public Hearing Questions

36.Biolab Watch

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Tuesday, December 3, 2024 MINUTES Page 14
Encampment Closures

37.Yesica Prado and Gordon Gilmore
Encampment Concerns

38.Molly Miller

39.Todd Jersey

40.Peter Radu
UC Berkeley Wildfire Research Project

41.Olivia Henchel
Housing Concern

42.Carl Martineau
Street Lighting

43.Carrie Olson
RHSP Form

44.Alex S. Merenkov
Local Business

45.Eid (3)
Forwards of Current Events

46.Eid (3)

47.Russbumper (4)
URLs

48.Josh Atwood (4)

49.Russbumper (2)
Miscellaneous

50.Eid (2)

51.Josh Atwood (5)

52.Keith Bayne (3)
Letter

53.Yesica Prado and Gordon Gilmore on behalf of the Berkeley Homeless Union UC Berkeley Class

54.2,106 Similarly worded form letters
Supplemental Communications and Reports 1
Item #6: Memorandum of Understanding: Public Employees Union – Local One

55.Supplemental agenda material submitted by the Human Resources Department (2) Item #15: Officially Name the Harrison Skate Park in honor of Terrance McCrary

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Tuesday, December 3, 2024 MINUTES Page 15

56.Revised agenda material submitted by Councilmember Kesarwani Item #20: Zoning Ordinance Amendments: Keep Innovation in Berkeley

57.Revised agenda material submitted by the Planning and Development Department Supplemental Communications and Reports 2
Item 2: Ashby BART Transit Oriented Development (TOD) Legal Agreements

58.Clifford Fred

59.Octavio Raygoza
Item 20: Zoning Ordinance Amendments: Keep Innovation in Berkeley

60.Rachel Haurwitz, Caribou Biosciences, Inc.

61.Wesley M. Jackson, Valitor

62.John Caner, Downtown Berkeley Association

63.Beth Roessner, Berkeley Chamber
Supplemental Communications and Reports 3
Item #15: Officially Name the Harrison Skate Park in honor of Terrance McCrary

64.Tina Monaco-Glynn

65.Joan Hoffman

66.Jacquelin Luckett

67.Cristal Leon Maciel
Item #17: Affordable Housing for Artists: AB-812 Implementation and Cultural District Statutory Standardization (Reviewed by the Land Use, Housing & Economic Development Committee)

68.Cameron Woo (2)
Item #18: Bicycle and Pedestrian Access on the Richmond-San Rafael Bridge

69.Max Perrey on behalf of member non-profit community clinics

70.Robert Prinz

71.Barbara Gilbert
Item #20: Zoning Ordinance Amendments: Keep Innovation in Berkeley

72.Presentation submitted by the Office of Economic Development

73.Clark Kellogg

74.Rigel Shimono-Robinson
Miscellaneous

75.Rincon Consultants Inc.

76.Eid

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Tuesday, December 10, 2024 MINUTES Page 1

M I N U T E S

S P E C I A L M E E T I N G O F T H E

B E R K E L E Y C I T Y C O U N C I L
Tuesday, December 10, 2024
5:30 PM
SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702

ADENA ISHII, MAYOR
Councilmembers:

DISTRICT 1 – RASHI KESARWANI DISTRICT 5 – SHOSHANA O’KEEFE DISTRICT 2 – TERRY TAPLIN DISTRICT 6 – BRENT BLACKABY
DISTRICT 3 – BEN BARTLETT DISTRICT 7 – CECILIA LUNAPARRA DISTRICT 4 – IGOR TREGUB DISTRICT 8 – MARK HUMBERT
This meeting will be conducted in a hybrid model with both in-person attendance and virtual participation. Live captioned broadcasts of Council meetings are available on B-TV (Channel 33) and via internet video stream at http://berkeley.granicus.com/MediaPlayer.php?publish_id=1244. All Council meetings are recorded.

To access the meeting remotely use this URL: https://cityofberkeley-info.zoomgov.com/j/1601063395. To request to speak, use the “raise hand” function in Zoom. To join by phone: Dial 1-669-254-5252 or 1-833-568-8864 (Toll Free) and enter Meeting ID: 160 106 3395 . To provide public comment, Press *9 and wait to be recognized by the Chair. To submit a written communication for the public record, email [email protected].

The City Council may take action related to any subject listed on the Agenda.

Government Code Section 84308 (Levine Act) - Parties to a proceeding involving a license, permit, or other entitlement for use are required to disclose if they made contributions over $250 within the prior 12 months to any City employee or officer. Parties and participants with a financial interest are prohibited from making more than $250 in contributions to a decisionmaker for the 12 months after the final decision is rendered on the proceeding.

Attachment 4

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Tuesday, December 10, 2024 MINUTES Page 2
Preliminary Matters
Roll Call: 5:39 p.m.

Present: Kesarwani, Taplin, Bartlett, Tregub, O’Keefe, Blackaby, Lunaparra, Humbert, Ishii

Absent: None
Consent Calendar
Public Comment on Consent Calendar and Information Items Only: 1 speaker.

Action: M/S/C (Humbert/Tregub) to adopt the Consent Calendar in one motion except as indicated.

Vote: All Ayes.

1. Confirming the Results of the November 5, 2024, General Municipal Election From: City Manager
Recommendation:

1. Adopt a Resolution:
a) Confirming the results of the November 5, 2024, General Municipal Election; and b) Declaring the passage of Measure W – Real Property Transfer Tax Amendments, Measure X – Library Relief Act of 2024, Measure Y – Parks, Trees, and Landscaping Maintenance Tax Amendments , Measure Z – Sugar Sweetened Beverage Tax Amendments, Measure AA – Article XIIIB GANN Appropriations Limit Authority, Measure BB – Rent Stabilization Ordinance Amendments and Housing Retention Measure DD – Prohibition on Concentrated Animal Feeding Operations, Measure FF – Ordinance to Establish a Parcel Tax for the Purpose of Funding Repairs and Improvements to Streets, Sidewalks, and Pedestrian Paths. c) Declaring the failure of Measure CC – Establish Direct Rental Payments and Amendments to the Rent Stabilization Ordinance, Measure EE – Ordinance Creating a Parcel Tax for the Purpose of Funding Repairs and Improvements to Streets, Sidewalks and Pedestrian Paths, Measure GG – Ordinance to Adopt a Special Tax on Natural Gas Consumption in Buildings 15,000 Sq. Ft. or Larger, Measure HH – Ordinance Requiring the Adoption of Minimum Indoor Air Quality Standards in City- Owned and City-Leased Buildings.

2. Adopt seven Ordinances amending the Berkeley Municipal Code to incorporate the passage of Measure W – Real Property Transfer Tax Amendments, Measure X – Library Relief Act of 2024, Measure Y – Parks, Trees, and Landscaping Maintenance Tax Amendments, Measure Z – Sugar Sweetened Beverage Tax Amendments, Measure BB – Rent Stabilization Ordinance Amendments and Housing Retention, Measure DD – Prohibition on Concentrated Animal Feeding Operations, Measure FF – Ordinance to Establish a Parcel Tax for the Purpose of Funding Repairs and Improvements to Streets, Sidewalks, and Pedestrian Paths.

3. Adopt a Resolution codifying the text of Measure AA – Article XIIIB GANN Appropriations Limit Authority.

Financial Implications: See report
Contact: Mark Numainville, City Clerk, (510) 981-6900

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Consent Calendar
Tuesday, December 10, 2024 AGENDA Page 3
Action: Adopted:

1. Resolution No. 71,609–N.S. (Confirm Results).

2. Adopted Ordinance No. 7,946-N.S. (Measure W – Real Property Transfer Tax Amendments), Ordinance No. 7,947-N.S. (Measure X – Library Relief Act of 2024), Ordinance No. 7,948-N.S. (Measure Y – Parks, Trees, and Landscaping Maintenance Tax Amendments), Ordinance No. 7,949-N.S. (Measure Z – Sugar Sweetened Beverage Tax Amendments), Ordinance No. 7,950-N.S. (Measure BB – Rent Stabilization Ordinance Amendments and Housing Retention), Ordinance No. 7,951-N.S. (Measure DD – Prohibition on Concentrated Animal Feeding Operations), and Ordinance No. 7,952-N.S. (Measure FF – Ordinance to Establish a Parcel Tax for the Purpose of Funding Repairs and Improvements to Streets, Sidewalks, and Pedestrian Paths).

3. Resolution No. 71,610–N.S. (Measure AA – Article XIIIB GANN Appropriations Limit Authority).

Adjournment
Action: M/S/C (Taplin/Tregub) to adjourn the meeting.

Vote: All Ayes.

Adjourned at 5:43 p.m.

I hereby certify that the foregoing is a true and correct record of the City Council special meeting held on December 10, 2024.
________________________
Mark Numainville, City Clerk
Communications
 None
Supplemental Communications and Reports 1
 None
Supplemental Communications and Reports 2
 None
Supplemental Communications and Reports 3
 None

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Tuesday, December 10, 2024 MINUTES Page 1

MINUTES

BERKELEY CITY COUNCIL MEETING
Tuesday, December 10, 2024
6:00 PM
SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702

ADENA ISHII, MAYOR
Councilmembers:

DISTRICT 1 – RASHI KESARWANI DISTRICT 5 – SHOSHANA O’KEEFE DISTRICT 2 – TERRY TAPLIN DISTRICT 6 – BRENT BLACKABY
DISTRICT 3 – BEN BARTLETT DISTRICT 7 – CECILIA LUNAPARRA DISTRICT 4 – IGOR TREGUB DISTRICT 8 – MARK HUMBERT
This meeting will be conducted in a hybrid model with both in-person attendance and virtual participation. Live captioned broadcasts of Council meetings are available on B-TV (Channel 33) and via internet video stream at http://berkeley.granicus.com/MediaPlayer.php?publish_id=1244. All Council meetings are recorded.

The City Council may take action related to any subject listed on the Agenda.

Government Code Section 84308 (Levine Act) - Parties to a proceeding involving a license, permit, or other entitlement for use are required to disclose if they made contributions over $250 within the prior 12 months to any City employee or officer. Parties and participants with a financial interest are prohibited from making more than $250 in contributions to a decisionmaker for the 12 months after the final decision is rendered on the proceeding.

Attachment 5

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Tuesday, December 10, 2024 MINUTES Page 2
Preliminary Matters
Roll Call: 6:05 p.m.

Present: Kesarwani, Taplin, Bartlett, Tregub, O’Keefe, Blackaby, Lunaparra, Humbert, Ishii

Absent: None
Land Acknowledgement Statement: The City of Berkeley recognizes that the community we live in was built on the territory of xučyun (Huchiun (Hooch-yoon)), the ancestral and unceded land of the Chochenyo (Cho-chen-yo)-speaking Ohlone (Oh-low-nee) people, the ancestors and descendants of the sovereign Verona Band of Alameda County. This land was and continues to be of great importance to all of the Ohlone Tribes and descendants of the Verona Band. As we begin our meeting tonight, we acknowledge and honor the original inhabitants of Berkeley, the documented 5,000-year history of a vibrant community at the West Berkeley Shellmound, and the Ohlone people who continue to reside in the East Bay. We recognize that Berkeley’s residents have and continue to benefit from the use and occupation of this unceded stolen land since the City of Berkeley’s incorporation in 1878. As stewards of the laws regulating the City of Berkeley, it is not only vital that we recognize the history of this land, but also recognize that the Ohlone people are present members of Berkeley and other East Bay communities today. The City of Berkeley will continue to build relationships with the Lisjan Tribe and to create meaningful actions that uphold the intention of this land acknowledgement.

Ceremonial Matters:

1. Swearing in of newly elected and re-elected officials City Manager Comments:

Recognition of outgoing Deputy City Managers LaTanya Bellow and Anne Cardwell City Auditor Comments:

City Auditor Jenny Wong provided an update on the four audit status reports on the Information Calendar.

Public Comment on Non-Agenda Matters: 10 speakers.

Action: M/S/C (Bartlett/Tregub) to accept an urgency item from Councilmember Bartlett pursuant to Government Code Section 54954.2(b)(2) entitled Lights of Tomorrow nonprofit MX (Malcolm X Elementary School) Bike Giveaway on December 18, 2024 - Relinquishment of Council Office Budget Funds to General Fund and Grant of Such Funds.

Vote: All Ayes.

Consent Calendar
Public Comment on Consent Calendar and Information Items Only: 25 speakers.

Action: M/S/C (Blackaby/Taplin) to adopt the Consent Calendar in one motion except as indicated.

Vote: All Ayes.

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Consent Calendar
Tuesday, December 10, 2024 MINUTES Page 3
Urgent Item: Lights of Tomorrow nonprofit MX (Malcolm X Elementary School) Bike Giveaway on December 18, 2024 - Relinquishment of Council Office Budget Funds to General Fund and Grant of Such Funds
From: Councilmember Bartlett (Author)
Recommendation: Adopt a Resolution approving the expenditure of funds, including $500 from the discretionary Council Office Budget of Councilmember Ben Bartlett, to Lights of Tomorrow to fund operational resources for MX (Malcolm X Elementary School) Bike giveaway event on Wednesday, December 18, 2024. The funds will be relinquished to the City’s General Fund from the Discretionary Council Office Budget of Councilmember Ben Bartlett and the Discretionary Council Office Budgets of any other Councilmembers who would like to contribute.

Financial Implications: Councilmember’s Discretionary Funds - $500 Contact: Ben Bartlett, Councilmember, District 3, (510) 981-7130 Action: Adopted Resolution No. 71,611–N.S. revised to include contributions from the following Councilmembers up to the amounts listed: Councilmember Taplin - $500; Mayor Ishii - $500; Councilmember Tregub - $100; Councilmember Humbert - $300; Councilmember Lunaparra - $300; Councilmember Kesarwani - $100; Councilmember Blackaby - $250; Councilmember O’Keefe - $250.

Consent Calendar – Continued Business
A. Lease Agreement – The Framer’s Workshop LLC, at 2435 and 2439 Channing Way in Telegraph-Channing Mall and Garage (Continued from December 3, 2024) From: City Manager
Recommendation: Adopt second reading of Ordinance No. 7,942-N.S. authorizing the City Manager to execute a lease agreement with Framer’s Workshop LLC, a limited liability corporation to use and occupy 2435 and 2439 Channing Way inside the Telegraph-Channing Mall and Garage for a ten (10) year lease term with the option to extend for two additional five (5) year terms. The initial lease term is anticipated to begin February 1, 2025.

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted second reading of Ordinance No. 7,942–N.S.

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Consent Calendar – Continued Business
Tuesday, December 10, 2024 MINUTES Page 4
B. Lease Amendment: We Wield The Hammer at 2440 Durant Avenue in the Telegraph-Channing Mall and Garage (Continued from December 3, 2024) From: City Manager
Recommendation: Adopt second reading of Ordinance No. 7,943-N.S. authorizing the City Manager to execute a Lease Amendment with We Wield The Hammer, a 501c3 organization, to use and occupy 2440 Durant Avenue for a five (5) year lease term with option to extend for one additional five (5) year term. This Lease Amendment modifies the Lease Commencement Date, Rent Commencement Date and increases months of rent abatement from six (6) to nine (9) months.

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted second reading of Ordinance No. 7,943–N.S.

C. Lease Amendment: Dorothy Day House dba Dorothy’s Closet at 2425a Channing Way in the Telegraph-Channing Mall and Garage (Continued from December 3, 2024)
From: City Manager
Recommendation: Adopt second reading of Ordinance No. 7,944-N.S. authorizing the City Manager to execute a Lease Amendment with Dorothy Day House, a 501c3 organization, d.b.a Dorothy’s Closet to use and occupy 2425a Channing Way for a five (5) year lease term with option to extend for one additional five (5) year term.

This Lease Amendment proposes a rental rate reduction $2.26 per square foot per month with an annual 3% increase to $1.95 per square foot with no annual increase.

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted second reading of Ordinance No. 7,944–N.S.

D. Zoning Ordinance Amendments: Keep Innovation in Berkeley; Amending BMC Title 23 (Continued from December 3, 2024)
From: City Manager
Recommendation: Adopt second reading of Ordinance No. 7,945-N.S. amending Berkeley Municipal Code Title 23 to encourage Research and Development (R&D) uses in Berkeley.

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Jordan Klein, Planning and Development, (510) 981-7400 Action: Adopted second reading of Ordinance No. 7,945–N.S.

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Consent Calendar
Tuesday, December 10, 2024 MINUTES Page 5

1. Minutes for Approval
From: City Manager
Recommendation: Approve the minutes for the Council meetings of November 8, 2024 (closed), November 12, 2024 (regular), November 15, 2024 (closed), November 18, 2024 (special), November 19, 2024 (closed and regular).

Financial Implications: None
Contact: Mark Numainville, City Clerk, (510) 981-6900
Action: Approved the minutes as submitted.

2. Contract: CVL Economics for a Study of the Economic Impact of the Arts in Berkeley
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with CVL Economics for an amount not to exceed $119,300 for analysis of pandemic cultural arts recovery investments and the economic impact of the arts in Berkeley for a term of two years.

Financial Implications: American Rescue Act Fund - $119,300 Contact: Eleanor Hollander, Economic Development, (510) 981-7530 Action: Adopted Resolution No. 71,612–N.S.

3. Contract: Kala Art Institute for Framed Artwork Purchase Plan for City Buildings
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with Kala Art Institute for an amount not to exceed $50,000 to implement a framed artwork purchase plan for two city administration buildings located at 1947 Center Street and 2180 Milvia Street. The artworks are to be hung in public areas of civic buildings and will become part of the City’s Civic Art Collection.

Financial Implications: Cultural Trust Fund - $50,000.

Contact: Eleanor Hollander, Economic Development, (510) 981-7530 Action: Adopted Resolution No. 71,613–N.S.

4. Contract: Masako Miki Public Artwork Commission for Aquatic Park Pathway Wall
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with artist Masako Miki for an amount not to exceed $87,000 for a public art commission of a ceramic tile mural on the 42’-long curved wall located along the San Francisco Bay Trail west of the intersection of Addison Street and Bolivar Drive in Aquatic Park.

Financial Implications: Cultural Trust Fund - $87,000
Contact: Eleanor Hollander, Economic Development, (510) 981-7530 Action: Adopted Resolution No. 71,614–N.S.

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Consent Calendar
Tuesday, December 10, 2024 MINUTES Page 6

5. Formal Bid Solicitations and Request for Proposals Scheduled for Possible Issuance After Council Approval on December 10, 2024
From: City Manager
Recommendation: Approve the request for proposals or invitation for bids (attached to staff report) that will be, or are planned to be, issued upon final approval by the requesting department or division. All contracts over the City Manager’s threshold will be returned to Council for final approval.

Financial Implications: See report
Contact: Henry Oyekanmi, Finance, (510) 981-7300
Action: Approved recommendation including revised material in Supplemental Communications Packet #1 from the City Manager.

6. Establish Classification and Salary – Senior Paralegal From: City Manager
Recommendation: Adopt a Resolution establishing the job class specification and salary of Senior Paralegal with an hourly salary range of $47.4636 to $57.6923, and an annual range of $98,724.30 to $120,000.00.

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800 Action: Adopted Resolution No. 71,615–N.S.

7. Revise Job Class Specifications – Communications Specialist From: City Manager
Recommendation: Adopt a Resolution (1) revising the Communications Specialist job class specifications to allow Charter departments and offices to utilize the classification and (2) providing a 5% differential to Communication Specialists assigned to the City Manager’s Office.

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800 Action: Adopted Resolution No. 71,616–N.S.

8. Personnel Rule 9.03 Revision: Promotion Through a Non-Competitive Process From: City Manager
Recommendation: Adopt a Resolution amending Section 9.03 of the City’s Personnel Rules and Regulations, “Promotion Through a Non-Competitive Personnel Action,” to add classifications including Deputy City Attorney I, II, III, and IV; Police Officer Recruit and Police Officer; Public Safety Dispatcher I and Public Safety Dispatcher II; Hazardous Materials Specialist I and Hazardous Materials Specialist II; and Housing Inspector I (Certified) and Housing Inspector II (Certified).

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800 Action: Adopted Resolution No. 71,617–N.S.

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Consent Calendar
Tuesday, December 10, 2024 MINUTES Page 7

9. Contract No. 32400151 Amendment: SDR Consulting for Classification and Compensation Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32400151 with SDR Consulting for classification and compensation services to cover the period of February 26, 2023 through June 30, 2026, for a total cost not to exceed $150,000.

Financial Implications: See report
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800 Action: Item 9 removed from the agenda by the City Manager.

10. Accept Grant Funds from the U.S. Department of Energy’s Zero Codes Award and contract with City and County of San Francisco to develop, implement, and enforce Building Performance Standards
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager or their designee to accept the U.S. Department of Energy’s Assistance for adoption of the “Latest and Zero Building Energy Codes” in the amount of $5,729,943, and negotiate and execute a contract and any amendments, extensions, or change orders with City and County of San Francisco, to develop Building Performance Standards, for the duration of January 1, 2025 through December 31, 2033.

Financial Implications: See report
Contact: Jordan Klein, Planning and Development, (510) 981-7400 Action: Adopted Resolution No. 71,618–N.S.

11. Contract No. 112219-1 Amendment: Siemens Industry, Inc. for Fire and Life Safety Systems Maintenance
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 112219-1 with Siemens Industry, Inc. for Fire and Life Safety Systems Maintenance, increasing the current contract amount of $100,000 for a total not to exceed amount of $700,000 and extending the contract term through December 31, 2025.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,619–N.S.

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Consent Calendar
Tuesday, December 10, 2024 MINUTES Page 8

12. Contract: Terocons Inc. for Sacramento Street Pedestrian Safety Project From: City Manager
Recommendation: Adopt a Resolution: 1. Approving plans and specifications for the Sacramento Street Pedestrian Safety Project (“Project”), Specification No. 24-11643- C; 2. Accepting the bid of Terocons Inc., the lowest responsive and responsible bidder; and 3. Authorizing the City Manager to execute a contract with Terocons Inc. and any amendments, extensions, and/or change orders until completion of the Project in accordance with the approved plans and specifications, in an amount not to exceed $973,638, which includes a 15% contingency for unforeseen circumstances.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,620–N.S.

13. Contract No. 32000078 Amendment: DC Electric Group, Inc for On-Call Electrical Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to amend Contract No. 32000078 between the City and DC Electric Group, Inc. for supplemental On-Call electrical services to support the Public Works Electrical Unit, increasing the current contract spending authority by $250,000 for a new total not to exceed amount of $725,000.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,621–N.S.

14. Contract: Stommel Inc., dba Lehr for Hybrid Police Patrol Vehicles Supplies, Equipment, and Installation Services
From: City Manager
Recommendation: Adopt a Resolution satisfying bid requirements of the City allowing the City to participate in competitively bid contracts, authorizing the City Manager to enter into contract with Stommel Inc. dba Lehr, for Hybrid Police Patrol vehicle supplies, equipment, and installation services with a contract term from December 15, 2024 to December 15, 2026 for an amount not to exceed $400,000.

Financial Implications: Public Works Equipment Replacement - $400,000 Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,622–N.S.

Vote: Ayes – Kesarwani, Taplin, Bartlett, Tregub, O’Keefe, Blackaby, Humbert, Ishii; Noes – Lunaparra; Abstain – None.

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Consent Calendar
Tuesday, December 10, 2024 MINUTES Page 9

15. Purchase Order: Braun Northwest Inc. for Two (2) 2025 Ford F-450 North Star Engine Remount of Ambulance Bodies to New Chassis
From: City Manager
Recommendation: Adopt a Resolution satisfying requirements of City Charter allowing the City of Berkeley (“City”) to participate in HGACBuy contract bid procedures and authorizing the City Manager to purchase two (2) 2025 Ford F-450 North Star Ambulance chassis with Braun Northwest, Inc. in an amount not to exceed $430,000.

Financial Implications: Equipment Replacement Fund - $430,000 Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,623–N.S.

16. Agreement Regarding Allocation of Costs for Railroad Crossing Improvements for W-SW WBLS West Owner IX, L.P., a California limited liability company and the City
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an agreement and any amendments with the W-SW WBLS West Owner IX, L.P., (“Developer”) for payment for all improvements mitigating the impact of their Development (Project) at the Bancroft Way at-grade railroad crossing.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,624–N.S.

17. Grant Applications: Metropolitan Transportation Commission Housing Incentive Pool
From: City Manager
Recommendation: Adopt two Resolutions certifying the City’s compliance with State Housing Laws and authorizing the City Manager to submit grant applications to the Metropolitan Transportation Commission (MTC) Housing Incentive Pool (HIP) for the following projects: San Pablo Avenue/Ashby Avenue Intersection Improvements Project for up to $1.9 million; Adeline Street Quick-Build for up to $1.05 million; and 7th Street/Anthony Street Complete Intersections Project for up to $2 million; accept the grants if awarded, and execute any resulting agreements and amendments.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,625–N.S. (Local Support), and Resolution No. 71,626–N.S. (Local Compliance).

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Consent Calendar
Tuesday, December 10, 2024 MINUTES Page 10

18. Establishing a New Schedule of Fines and Late Payment Penalties for Parking Violations; and Rescinding Resolution No. 70,924-N.S.

From: City Manager
Recommendation: Adopt a Resolution updating the existing schedule of parking violations and fines to include parking violations and late payment penalties for California’s new daylighting law, Assembly Bill 413 (AB 413); and rescinding resolution No. 70,924-N.S.

Financial Implications: See report
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Adopted Resolution No. 71,627–N.S.

19. City Council Committee and Regional Body Appointments From: Mayor Arreguin
Recommendation: Adopt a Resolution approving appointments to City Council Policy Committees, Partnership Committees and Regional Bodies, to temporarily appoint Mayor Adena Ishii and Councilmembers Terry Taplin and Ben Bartlett to the Agenda & Rules Committee.

Financial Implications: None.

Contact: Jesse Arreguin, Mayor, (510) 981-7100
Action: Adopted Resolution No. 71,628–N.S.

Action Calendar – Public Hearings

20. ***Item Removed by the City Manager*** Changes to Selected Recreation Facilities and Camps Program Fees
From: City Manager
Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700 Action Calendar – Continued Business
E. Bicycle and Pedestrian Access on the Richmond-San Rafael Bridge (Continued from December 3, 2024)
From: Councilmember Lunaparra (Author), Councilmember Humbert (Co- Sponsor), Councilmember Kesarwani (Co-Sponsor)
Recommendation: Adopt a Resolution affirming the City of Berkeley’s support for permanent 24/7 protected bicycle and pedestrian access to the Richmond-San Rafael Bridge Trail.

Financial Implications: See report
Contact: Cecilia Lunaparra, Councilmember, District 7, (510) 981-7170 Action: Moved to Consent Calendar. Adopted Resolution No. 71,629–N.S.

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Information Reports
Tuesday, December 10, 2024 MINUTES Page 11

21. Fire Prevention Inspections Audit Status Report
From: City Manager
Contact: David Sprague, Fire, (510) 981-3473
Action: Received and filed.

22. Restaurant Inspection Audit Status Report
From: City Manager4
Contact: Scott Gilman, Health, Housing, and Community Services, (510) 981-5400 Action: Moved to Action Calendar. 0 speakers. Discussion held.

23. Update: HR Response: Audit Directive(s) for Comprehensive Domestic Violence Policy to Support City Employees
From: City Manager
Contact: Aram Kouyoumdjian, Human Resources, (510) 981-6800 Action: Received and filed.

24. Audit Status Reports: Fleet Replacement Fund Short Millions and Rocky Road:

Berkeley Streets at Risk and Significantly Underfunded
From: City Manager
Contact: Terrance Davis, Public Works, (510) 981-6300
Action: Received and filed.

Public Comment – Items Not Listed on the Agenda - 5 speakers.

Adjournment
Action: M/S/C (Taplin/Lunaparra) to adjourn the meeting.

Vote: All Ayes.

Adjourned at 8:12 p.m.

I hereby certify that the foregoing is a true and correct record of the City Council regular meeting held on December 10, 2024.
________________________
Mark Numainville, City Clerk
Communications
Berkeley Holiday Gift Fair

1. Beth Roessner
Mayor and Councilmember Send Off

2. Tim O’Brien

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Tuesday, December 10, 2024 MINUTES Page 12
Public Toilet Facility

3. Nicole Spence (2)
RV Living

4. John Hershberger
Rose Street

5. Ben Gerhardstein, Liza Lutzker, Charles Siegel, Benjamin Fry, Naveen Gattu, Brandon Yung, Rebecca Mirvish, Stewart Smith, Avery Arbaugh, Marc Hedlund, Ian Meyers, John Beaulaurier, Walk Bike Berkeley, Bryce Miller, Telegraph For People, Cal Berkeley Democrats, Sunrise Bay Area, Ren Fitzgerald, and Phyllis Orrick

6. Katherine Silver
Notification of Service

7. Yesica Prado
The Black Repertory Group

8. Moni T. Law
Marine Protected Areas Petition

9. Melissa A. Miller-Henson on behalf of the California Fish and Game Commission Encampment Resolution

10.Stacie Blair
Encampment Sweeps

11.Boona Cheema

12.Moni T. Law

13.Paul Kealoha Blake

14.Willie Phillips
Encampments

15.Lyle Courtsal
Zoning

16.Mimi Moungovan

17.Bob Dougherty
Berkeley Arts Center

18.Thet Shein Win

19.Naz Cuguoglu

20.Natnael Amare
La Pena Cultural Center

21.Vanessa Whang

22.Ted Russell

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Tuesday, December 10, 2024 MINUTES Page 13

23.Biel Delgado Trabal
Virginia St.

24.David Lerman
Cannabis Policy

25. Lynn Silver, Aurash J. Soroosh, and Kiara Gonzalez Garcia on behalf of Getting it Right from the Start
Forwards of Information

26.Josh Atwood

27.Russbumper

28.Kyle Ratia

29.Eid (2)
URLs

30.Russbumper (3)
UC Berkeley Class

31.891 Similarly worded form letters
Supplemental Communications and Reports 1
Item #5: Formal Bid Solicitations and Request for Proposals Scheduled for Possible Issuance After Council Approval on December 10, 2024

32.Revised agenda material submitted by the Finance Department Supplemental Communications and Reports 2
Item #18: Establishing a New Schedule of Fines and Late Payment Penalties for Parking Violations; and Rescinding Resolution No. 70,924-N.S.

33.Gregory Kalkanis
Supplemental Communications and Reports 3
Item #18: Establishing a New Schedule of Fines and Late Payment Penalties for Parking Violations; and Rescinding Resolution No. 70,924-N.S.

34.Liza Lutzker, Barnali Ghosh, Ben Gerhardstein, Karen Parolek, Charles Siegel on behalf of Walk Bike Berkeley
Item #E: Bicycle and Pedestrian Access on the Richmond-San Rafael Bridge (Continued from December 3, 2024)

35.Robert Prinz (2)

36.John Rice

37.Barbara Gilbert

38.Lauren Goode

39.Ben Gerhardstein on behalf of Walk Bike Berkeley

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Tuesday, December 10, 2024 MINUTES Page 14
Emergency Item: Lights of Tomorrow nonprofit MX (Malcolm X Elementary School) Bike Giveaway on December 18, 2024 - Relinquishment of Council Office Budget Funds to General Fund and Grant of Such Funds

40.Councilmember Ben Bartlett
Miscellaneous

41.Eid

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Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/

CONSENT CALENDAR
February 11, 2025
To: Honorable Mayor and Members of the City Council From: Paul Buddenhagen, City Manager
Submitted by: Henry Oyekanmi, Director, Finance
Subject: Formal Bid Solicitations and Request for Proposals Scheduled for Possible Issuance After Council Approval on February 11, 2025

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

FISCAL IMPACTS OF RECOMMENDATION
The total estimated cost of items included in this report is $848,000 PROJECT Fund Source Amount
Marina Mobile Pump Out Services 608 MARINA OPE. $198,000 PCI Compliance Review 011 PROF SVCS – MISC. $250,000
Financial Services and Staff
Augmentation
011 PROF SVCS – MISC. $400,000
Total: $848,000

CURRENT SITUATION AND ITS EFFECTS
On May, 6, 2008, Council adopted Ordinance No. 7,035-N.S. effective June 6, 2008, which increased the City Manager’s purchasing authority for services to $50,000. As a result, this required report submitted by the City Manager to Council is now for those purchases in excess of $100,000 for goods; and $200,000 for playgrounds and construction; and $50,000 for services. If Council does not object to these items being sent out for bid or proposal within one week of them appearing on the agenda, and upon final notice to proceed from the requesting department, the IFB (Invitation for Bid) or RFP (Request for Proposal) may be released to the public and notices sent to the potential bidder/respondent list.

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Formal Bid Solicitations and Request for Proposals
Scheduled for Possible Issuance After Council
Approval on February 11, 2025 CONSENT CALENDAR February 11, 2025

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

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

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

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Roopreet Walia-Soorma, Senior Buyer, Finance, 510-981-7311 Attachments:

1. Marina Mobile Pump Out Services

2. PCI Compliance Review

3. Financial Services and Staff Augmentation
Note: Original of this attachment with live signature of authorizing personnel is on file in General Services.

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NEXT 30 DAYS
DATE SUBMITTED: FEBRUARY 11, 2025
Attachment 1

SPECIFICATION
NO.

DESCRIPTION OF

GOODS /

SERVICES BEING

PURCHASED
APPROX. RELEASE
DATE
APPROX. BID

OPENING DATE

INTENDED USE ESTIMATED COST BUDGET CODE TO BE

CHARGED
DEPT. / DIVISION CONTACT NAME &
PHONE
25-11709-C Marina Mobile Pump
Out Services
2/15/2025 3/1/2025 Mobile pump-out service of sanitary
holding tanks for up to 120
recreational Marina customers per
month.
$66,000/ year, for 3
years. Total $198,000
608-52-544-592-0000-000-
472-612990-
PRW/Waterfront Robert Chan, P.E.

Assistant Engineer
1-510-981-6392
Dept Total $198,000
25-11710-C PCI Compliance
Review
2/15/2025 3/15/2025 Annual PCI Compliance
Certification
$50,000 annually for 5
years for a total of
$250,000
011-33-321-326-0000-000-
412-612220-
Finance – Admin Greg Segraves
25-11711-C Financial Services and
Staff Augmentation
February 15, 2025 3/15/2025 Financial Services and Staff Augmentation for the Finance
department.

General Services
Manager, Contract Administrator,
Accounting manager
$400,000 011-33-325-345-0000-000-
412-612250
Finance – Gen Svcs Henry Oyekanmi
Dept Total $650,000
TOTAL $848,000
1 of 1

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Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/

CONSENT CALENDAR
February 11, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Scott Gilman, Director, Health Housing, and Community Services Subject: Contract No. 32300108 Third Amendment: Street Level Advisors, LLC for Housing Consulting Services

RECOMMENDATION
Adopt a Resolution authorizing the City Manager or designee to execute a third amendment to Contract No. 32300108 with Street Level Advisors, LLC increasing the contract by $180,000 for consulting services in a total amount not to exceed $379,500, with a contract end date of June 30, 2026.

FISCAL IMPACTS OF RECOMMENDATION
The total not-to-exceed amount of this contract will be $379,500. Up to $120,000 of the new funds will come from the administrative set-aside portion of the Affordable Housing Mitigation Fee fund (Fund #120), which was made available for housing development consulting services through FY2025 Annual Appropriations Ordinance #1. The remaining $60,000 will come from General Fund salary savings (Fund #011).

CURRENT SITUATION AND ITS EFFECTS
The City has a contract with Street Level Advisors, LLC (SLA) to provide project management, community engagement, and technical expertise for the affordable housing programs implemented by the Department of Health, Housing, and Community Services’ Housing and Community Services Division (HHCS/HCS). The initial contract along with the amendments are focused on maximizing the affordable housing potential of the proposed residential developments at the North Berkeley BART and Ashby BART sites. The contract also provides support for HCS’ ongoing policy and programmatic work to implement the Housing Trust Fund (HTF) and inclusionary housing programs.

The third amendment to the contract will enable SLA to develop and support the competitive process to select a development team for the City-owned Ashby BART east lot. SLA’s scope of work will include establishing a framework for the developer selection process, soliciting input from City leadership on priorities for developing the site, drafting the Request for Proposals or Request for Qualifications, working with City representatives to select the developer team, and supporting HCS staff in ongoing project management. Similar to the North Berkeley BART project, the Ashby BART east

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Street Level Advisors, LLC: Third Amendment to Contract CONSENT CALENDAR for Housing Consulting Services February 11, 2025

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lot project is anticipated to blend a mix of market rate housing with nonprofit, deed restricted affordable housing supported by the City’s Housing Trust Fund program. The Ashby BART east lot project will require work to ensure a fair contribution to affordable housing by the market rate developer(s) as well as due diligence to maximize the affordable housing onsite.

SLA will also continue its project management role for the affordable housing plans at North Berkeley BART and the Ashby BART west lot (the parcel owned by BART). The City’s engagement with the BART development projects is critical to its long-term affordable housing development goals. Delivering a high amount of affordable housing will require significant, long-term planning; including the development of an Affordable Housing Framework, Affordable Housing Compliance Plan, and technical assistance to complete subsidy applications that currently exceed the capacity of City staff and extend beyond the current timeline of the SLA contract.

SLA is also currently supporting other programmatic responsibilities, which include updating the Below Market Rate ownership regulations and administrative guidelines to be consistent with the inclusionary housing requirements adopted in 2023 (Berkeley Municipal Code Chapter 23.328). SLA brings a high level of housing affordability and engagement experience and can support and augment the current needs and expertise of City staff to complete these projects.

BACKGROUND
The Berkeley City Council committed $53 million for the development of at least 35% affordable housing at the proposed residential housing development projects at North Berkeley and Ashby BART stations. City staff are working closely with BART and the selected development teams to maximize the affordability at each site and ensure a transparent and fair commitment to affordable housing. SLA is providing critical support to advance a transparent and fair commitment to affordable housing through policy planning and pre-development review.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no environmental impacts related to amending the consultant contract.

RATIONALE FOR RECOMMENDATION
Staff are continuing to work diligently with SLA to facilitate the affordable housing plans underway at Ashby BART west lot as well as the ongoing development for North Berkeley BART. The affordable housing plans for each site are unique and require complex financial and policy analysis. While BART managed the developer selection processes at the North Berkeley BART and Ashby BART west lot sites, the City will be responsible for setting priorities and selecting developers for the Ashby BART east lot site. The scale and complexity of the project work required exceeds HHCS/HCS’ current capacity.

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Street Level Advisors, LLC: Third Amendment to Contract CONSENT CALENDAR for Housing Consulting Services February 11, 2025

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ALTERNATIVE ACTIONS CONSIDERED
The Council may choose not to extend the contract. Staff will not be able to adequately support the BART housing projects or complete programmatic work without additional support from Street Level Advisors, LLC.

CONTACT PERSON
Asavari Devadiga, Community Development Project Coordinator, HHCS, 510-981-5426 Attachments:
1: Resolution

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

CONTRACT NO. 32300108 THIRD AMENDMENT: PERSONAL SERVICES

CONTRACT WITH STREET LEVEL ADVISORS, LLC
WHEREAS, the City Council established a Housing Trust Fund (HTF) program to assist in the development and expansion of housing affordable to low- and moderate-income persons who either work or reside within the City of Berkeley, and authorized the City Manager to implement the HTF program; and
WHEREAS, on October 15, 2022, the Health, Housing and Community Services Department entered into a contract with Street Level Advisors, LLC (contract # 32300108) to provide project management and technical support to the City’s affordable housing projects at the North Berkeley and Ashby BART stations; and WHEREAS, on May 9, 2023, the City Council authorized a contract amendment with Street Level Advisors, LLC to increase the contract by $50,000 for a total not to exceed amount of $99,500; and
WHEREAS, on May 7, 2024, the City Council authorized a contract amendment with Street Level Advisors, LLC to add up to $100,000 for a total not to exceed amount of up to $199,500 with a contract end date of June 30, 2025; and WHEREAS, Street Level Advisors, LLC continues to support the implementation of the City’s Housing Trust Fund and inclusionary housing programs; and WHEREAS, Street Level Advisors, LLC continues to provide critical support to the development of affordable housing at North Berkeley and Ashby BART stations, which each have City funding reservations; and
WHEREAS, City staff identified a need for support related to the developer selection process for the City-owned, Ashby BART east lot site; and WHEREAS, $120,000 is available in the FY25 budget from Fund 120, and $60,000 is available from fund 011 through salary savings.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that City Manager or designee is authorized to amend Contract No. 32300108 with Street Level Advisors, LLC for personal services to add up to $180,000 for a total not to exceed amount of up to $379,500 with a contract end date of June 30, 2026.

BE IT FURTHER RESOLVED that the City Manager, or designee, is hereby authorized to execute all original or amended documents or agreements to effectuate this action; a signed copy of said documents, agreements and any amendments will be kept on file in the Office of City Clerk.

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Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://www.CityofBerkeley.info/Manager

CONSENT CALENDAR
February 11, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Aram Kouyoumdjian, Director of Human Resources Subject: Program Manager II Classification: 5% Differential for Assignment in City Manager’s Office

RECOMMENDATION
Adopt a Resolution amending the Unrepresented Employee Manual to add a 5% salary differential to Program Manager II positions assigned to the City Manager’s Office.

FISCAL IMPACTS OF RECOMMENDATION
The change will result in a 5% increase to the base salary of each Project Manager II position assigned to the City Manager’s Office; currently, there are only two such positions.

CURRENT SITUATION AND ITS EFFECTS
Select classifications qualify for a 5% salary differential when the position is assigned to the City Manager’s Office (CMO) rather than to a department, since the CMO assignment involves oversight of programs and services that have Citywide reach and are broader in scope than department-level programs and services. The recommendation to add Program Manager II to the list of classifications eligible for the 5% differential seeks to create parity within the CMO.

BACKGROUND
Section 13.19 of the Unrepresented Employee Manual provides that “Assistant, Associate, Senior Management Analysts, and Office Specialists III in the City Manager's Department and in the Office of Budget and Fiscal Management shall receive a 5% salary differential.” At its meeting of December 10, 2025, the City Council added the Communications Specialist classification to this list.

The current recommendation, which seeks to maintain parity among classifications in the CMO by adding the Program Manager II classification to the list, was considered by the Personnel Board at its January 6, 2025 meeting and approved by unanimous vote.

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Program Manager II: 5% Differential for CMO Assignment CONSENT CALENDAR February 11, 2025

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

RATIONALE FOR RECOMMENDATION
This recommendation ensures parity among classifications assigned to the City Manager’s Office and ensures that Program Managers II assigned to the CMO are recognized for the Citywide breadth of their work.

ALTERNATIVE ACTIONS CONSIDERED
None.

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

Attachments:
1: Resolution

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

PROGRAM MANAGER II CLASSIFICATION: 5% DIFFERENTIAL FOR ASSIGNMENT IN CITY MANAGER’S OFFICE
WHEREAS, Section 13.19 of the Unrepresented Employee Manual provides for a 5% salary differential for select classifications, such as management analysts and office specialists, when they are assigned to the City Manager’s Office (CMO) to recognize the Citywide breadth of their duties; and
WHEREAS, by resolution adopted on December 10, 2024, the City Council added the Communications Specialist classification to the list of classifications eligible for the 5% differential set forth by Section 13.19 of the Unrepresented Employee Manual; and WHEREAS, Program Manager II positions in the CMO involve oversight of programs that have Citywide reach and are broader in scope than department-level programs; and WHEREAS, adding the Program Manager II classification to the list of classifications eligible for the 5% differential articulated in Section 13.19 of the Unrepresented Employee Manual would promote parity within classifications assigned to the CMO; and WHEREAS, the proposed revisions were considered by the Personnel Board at its meeting of January 6, 2025 and approved by unanimous vote; NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the Program Manager II classification shall be eligible for a 5% differential when the position is assigned to the City Manager’s Office; and
BE IT FURTHER RESOLVED that Section 13.19 of the Unrepresented Employee Manual be revised to add Program Manager II to the list of classifications eligible for a 5% differential when assigned to the City Manager’s Office.

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Public
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: https://berkeleyca.gov/

CONSENT CALENDAR
February 11, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Kevin Fong, Director of Information Technology Subject: Contract No. 32000223 Amendment: Gray Quarter, Inc. for Accela Professional Services

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32000223 with Gray Quarter, Inc. (Gray Quarter) for professional services, increasing the amount by $120,000, for a total not-to-exceed amount of $419,500 through January 31, 2026.

FISCAL IMPACTS OF RECOMMENDATION
Funding for the additional managed services is available in the Fiscal Year (FY) 2025 Finance U1 Administration budget. Future expenditures are subject to Council approval of the proposed citywide budget and Annual Appropriations Ordinances. $120,000

FY 2025: Professional Services – FINANCE
Budget Code: 016-33-321-326-0000-000-412-612990-
(U1 Admin, Finance, Professional Services)
$299,500 Current Contract Value
$419,500 Total Contract Value: Managed Services

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Public
Contract No. 32000223 Amendment: Gray Quarter, Inc. CONSENT CALENDAR February 11, 2025

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CURRENT SITUATION AND ITS EFFECTS
The Finance department currently uses the Accela Civic Platform to handle Berkeley business licenses. This includes a public facing online portal that accepts business license renewals but does not allow for new business license applications. Finance and Information Technology are collaborating on an enhancement to the Accela Civic Platform that will allow all businesses to apply for new licenses through the online portal.

As the City continues to expand its capabilities of the Accela Platform, the configurations and customizations become more complex. As such, the City requires a higher level of support and expertise that Gray Quarter can provide. Gray Quarter’s Managed Services offering provides responsive support to address issues that may arise from either this enhancement or future improvements. This enhanced support will ensure timely problem resolution and continued platform improvement.

The enhancement of the Accela Business License module aligns with the City’s Strategic Plan goal to be a customer-focused organization that provides excellent, timely, easily- accessible service and information to the community.

BACKGROUND
Gray Quarter is an Accela Certified Services Partner and Accela Technology Alliance Partner that specializes in Accela software, with proven experience in many challenging projects.

Gray Quarter has been providing support to the City through Accela professional services as a subcontractor since 2018. In 2019, they led the successful implementation of an online business license renewal portal. As a result, over 25% of businesses are now renewing their licenses online. As the City continues to expand the portal, we anticipate further growth in the number of online renewals. This saves customers and the City time and money, and provides customers with an unofficial copy of their license upon full online payment.

In 2020, the City established a direct contract with Gray Quarter to assist with Accela Civic Platform efforts on an as needed basis. Some of the key efforts in which Gray Quarter has assisted the City – include: 1.) updating an interface file to allow for accurate reporting of revenue when overpayments are received, 2.) assisting with completion of a data bridge to create refunds directly from FUND$, 3.) assisting with design and configuration of ad hoc reports, 4.) ongoing support of the business license module.

In 2021, Gray Quarter helped complete the initiative for Business License Online Renewals through Accela Citizen Access, making the process more efficient for both businesses and the City.

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Public
Contract No. 32000223 Amendment: Gray Quarter, Inc. CONSENT CALENDAR February 11, 2025

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In 2022, Gray Quarter completed the following: 1.) developed a new process to handle delinquent business license renewal notifications, 2.) made changes to accommodate business license tax rate change for street vendors, 3.) worked with IT to specify new infrastructure for Accela version 22, 4.) installed new instances of Development and Test on latest Accela version.

In 2023 and 2024, Gray Quarter has continued to support both Finance and IT by significantly helping to improve the functionality and efficiency of the Accela Civic Platform, especially in the areas of business licensing and revenue reporting.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The City will help reduce carbon emissions by allowing business license renewal and application processes to be performed online thereby reducing traffic into the City in keeping with the City's Climate Action Plan.

RATIONALE FOR RECOMMENDATION
Gray Quarter, Inc. is an Accela-Certified services partner. They have supported the City in various projects. Gray Quarter has performed specialized process analysis, configuration, and scripting to support the City's online business license system and various other IT and Finance projects. As a result, Gray Quarter has in-depth knowledge of City business processes and data architecture that would take other vendor years to acquire.

ALTERNATIVE ACTIONS CONSIDERED
Staff considered completing projects and enhancements, gaining expertise by investing more time in learning without professional services; however, doing so would lead to an inefficient allocation of staff resources and significantly extend implementation timelines.

CONTACT PERSON
Kevin Fong, Director, Information Technology, 510-981-6525 Attachments:
1: Resolution

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

CONTRACT NO. 32000223 AMENDMENT: GRAY QUARTER, INC. FOR ACCELA

PROFESSIONAL SERVICES
WHEREAS, the City Council authorized Contract No. 32000223 with Gray Quarter, Inc. on February 17, 2020 for software professional services; and WHEREAS, the City Council authorized an amendment to Contract No. 32000223 with Gray Quarter, Inc. on May 5, 2021 (69,781-N.S) for software professional services to implement online business license application and renewal; and WHEREAS, the City Council authorized an amendment to Contract No. 32000223 with Gray Quarter, Inc. on September 10, 2024 (71,497-N.S) for continued software professional services; and
WHEREAS, Gray Quarter, Inc. provides design, implementation, and support services to public sector technology solutions; and
WHEREAS, Gray Quarter is an Accela Certified Services Partner and Accela Technology Alliance Partner that specializes in Accela software since 2002, with proven experience in many challenging projects; and
WHEREAS, Gray Quarter has provided online enhancements to the Accela platform that have become particularly critical in order to keep business license services accessible and efficient for the community, and this functionality is consistent with the City’s strategic goal “to be a customer-focused organization that provides excellent, timely and easily accessible service to the community”; and
WHEREAS, Gray Quarter has provided excellent scripting, configuration and consulting services for Accela and therefore has an in-depth knowledge of City business processes and data architecture that would take another vendor years to acquire; and NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to amend Contract No. 32000223 with Gray Quarter, Inc., increasing the amount by $120,000, for a total not-to-exceed amount of $419,500, for the term beginning February 17, 2020 to January 31, 2026.

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Internal
Igor Tregub
Councilmember, District 4
Cecilia Lunaparra
Councilmember, District 7
1 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected]

CONSENT CALENDAR
FEBRUARY 11, 2025
To: Honorable Mayor and Members of the City Council
From: Councilmembers Igor Tregub (Author) and Cecilia Lunaparra (Co-Author) Subject: Resolution in Support of the Commissioning of a California Feasibility Study to Implement “Golden State Energy,” a Not-for-Profit Public Utility Model

RECOMMENDATION
Adopt a resolution in support of the allocation of state fiscal and staff resources to commission a feasibility study that compares various not-for-profit utility models prioritizing public benefits in energy generation, distribution, and transmission; the development an equitable implementation plan that establishes a statewide successor entity known as “Golden State Energy” as a successor to investor-owned utilities such as Pacific Gas and Electric; and transmittal of the Council’s support of such a resolution to Governor Gavin Newsom, Senator Jesse Arreguín (SD7) and Assemblymember Buffy Wicks (AD14).

CURRENT SITUATION AND ITS EFFECTS
Three investor-owned utilities (IOUs) in California have monopolistic control of the state’s energy transmission and distribution system.1 As one particular example, Pacific Gas and Electric Company (PG&E) is one of the two largest IOUs in California and one of the largest utility companies in the United States.2 Its coverage area, which includes most of Northern and Central California, covers 70,000 square miles and serves 16 million people across the state but has consistently failed to meet safety, reliability, affordability, and climate justice standards.

The consequences of PG&E’s failures have been dire:
1https://information.auditor.ca.gov/reports/2022-
115/index.html#:~:text=Background,primarily%20in%20SCE's%20service%20area. 2https://www.eia.gov/todayinenergy/detail.php?id=40913#:~:text=The%20two%20largest%20IOUs%20ar e,%2C%20and%20municipal%2Drun%20utilities.

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Internal
2 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] ● Wildfire Liability & Disasters: PG&E infrastructure has been directly linked to some of the deadliest and most destructive wildfires in California history, including the 2018 Camp Fire, which destroyed over 18,000 structures3. ● Public Safety Power Shutoffs (PSPS): PG&E has increasingly relied on mass power shutoffs to mitigate wildfire risks, leaving millions of residents and businesses without electricity for days at a time, with disproportionate harm to vulnerable populations.4
● Escalating Rates & Affordability Crisis: PG&E’s residential rates have increased by over 118% since 2014, and future rate hikes are expected as the company seeks to recover wildfire-related liabilities and infrastructure costs.5 By comparison, publicly owned utilities in California offer electricity at rates that are more than 50%% lower on average than those of IOUs.6
● Grid Connection Delays: Municipalities and developers are experiencing significant delays in connecting new buildings and businesses to the power grid.

In Berkeley alone, these delays are significant contributors to unrealized projects, which stifles economic growth and electrification efforts.7 The failures of PG&E and the broader investor-owned utility model demonstrate the urgent need for alternatives that prioritize public interest over shareholder profits. The Golden State Energy Act (SB 350, 2020)8 was a critical first step in planning to replace IOUs such as PG&E with a more affordable, sustainable, and public-serving model. This legislation established Golden State Energy, a nonprofit public benefit corporation designed to take over PG&E’s assets in the event of another bankruptcy or operational collapse. The law aims to:
● Reduce energy cost burdens on residents
● Increase grid resilience and reliability
● Expand equitable access to clean energy infrastructure 3 https://www.nytimes.com/interactive/2019/03/18/business/pge-california-wildfires.html 4 https://iejusa.org/wp-content/uploads/2020/10/V3.3-Policy-Brief-CA-Shutoffs-Data-Brief.pdf 5 https://www.publicadvocates.cpuc.ca.gov/-/media/cal-advocates-website/files/press-room/reports-and- analyses/241205-public-advocates-office-q3-2024-rates-report.pdf 6 https://lao.ca.gov/Publications/Report/4950
7 https://emp.lbl.gov/news/grid-connection-backlog-grows-30-2023-dominated-requests-solar-wind-and-energy- storage
8 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200SB350

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Internal
3 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected]

BACKGROUND
Across California and the nation, publicly owned and cooperative utilities have demonstrated superior outcomes in cost, reliability, and clean energy deployment:
● Community Choice Aggregators (CCAs): CCAs such as Ava Community Energy (formerly East Bay Community Energy)9 serve customers in Alameda County and the upper San Joaquin Valley, delivering cleaner electricity at competitive rates.

Unlike IOUs, CCAs reinvest surplus revenues into local energy programs, such as building electrification incentives, energy efficiency upgrades, local solar-plus- storage projects and customer rebates.10
● Municipal Utilities: Public utilities, including the Sacramento Municipal Utility District (SMUD) and the Los Angeles Department of Water and Power (LADWP), offer lower rates and more aggressive clean energy programs than IOUs. SMUD, for instance, has committed to achieving net-zero emissions by 2030, significantly outpacing state targets.11
● Rural Electric Cooperatives & Tribal Utilities: These entities successfully provide electricity to rural and underserved communities while maintaining local control over rates and infrastructure investments.

These models prove the success of publicly owned utilities (cooperative mutual benefit corporations, public utilities, and nonprofit public benefit corporations), and they could be scaled up to a statewide level.

Given PG&E’s track record and the increasing urgency of the climate crisis, Berkeley and other cities should actively advocate for alternative energy models that reduce dependence on IOUs.

City of Richmond and the City and County of San Francisco have both passed similar resolutions.

RATIONALE FOR RECOMMENDATION
9 https://avaenergy.org/about-
ava/?gad_source=1&gclid=EAIaIQobChMIpIWTx6rsigMVoNXCBB1qWSLiEAAYASAAEgKowvD_BwE 10 https://avaenergy.org/news/press-release-ava-community-energy-kicks-off-the-new-year-by-issuing-22mm-in-bill- credits-to-its-customers/
11 https://www.smud.org/Corporate/About-us/News-and-Media/2024/2024/SMUD-joins-landmark-global-coalition-for- sustainable-energy-
future#:~:text=Key%20actions%20in%20SMUD's%202030,California%20and%20international%20energy%20agenci es.

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Internal
4 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] The continued failures of IOUs such as PG&E, as detailed above, underscore the risks of a monopoly-driven energy system that prioritizes shareholder returns over public well-being. As California accelerates its transition to a clean energy future, it is imperative that the state moves beyond IOUs toward a more democratic and resilient energy model. Berkeley and other municipalities have a unique opportunity to drive this transition by advocating for structural reforms, and ensuring that all residents have access to safe, affordable, and clean electricity.

FINANCIAL IMPLICATIONS
Negligible (staff time associated with transmittal of resolution).

ENVIRONMENTAL SUSTAINABILITY
The recommended action fully aligns with Berkeley’s climate action goals by accelerating the reduction of greenhouse gas emissions and advancing local resilience efforts. Berkeley advocacy and influence on the State level will continue its commitment to be on the cutting edge of investing in energy efficiency, electrification, and grid innovation and contributing to a more sustainable and equitable energy future for the City of Berkeley and State of California.

CONTACT PERSON
Igor Tregub, Councilmember District 4
Olga Bolotina, Chief of Staff, Council District 4
Phone: 510-981-7140
Email: [email protected]
[email protected]
ATTACHMENTS:

1. Resolution

2. Letter of support

3. The Case for Golden State Energy Report

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5 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] ATTACHMENT #1
RESOLUTION # XX-XX

RESOLUTION OF THE COUNCIL OF THE CITY OF BERKELEY IN SUPPORT

OF THE ALLOCATION OF STATE FISCAL AND STAFF RESOURCES TO

COMMISSION A FEASIBILITY STUDY THAT COMPARES VARIOUS NOT-FOR-

PROFIT UTILITY MODELS PRIORITIZING PUBLIC BENEFITS IN ENERGY GENERATION, DISTRIBUTION, AND TRANSMISSION; THE DEVELOPMENT AN

EQUITABLE IMPLEMENTATION PLAN THAT ESTABLISHES A STATEWIDE SUCCESSOR ENTITY KNOWN AS “GOLDEN STATE ENERGY” AS A SUCCESSOR

TO INVESTOR-OWNED UTILITIES SUCH AS PACIFIC GAS AND ELECTRIC WHEREAS, investor-owned utilities (IOUs) in California, including Pacific Gas and Electric Company (PG&E), operate as monopolies prioritizing shareholder profits over the public interest, leading to dire consequences causing grievous harm to California residents and its environment by causing catastrophic wildfires, smoke, shutoffs, excessive and escalating utility rates and debts, environmental injustice and climate disruption, including:
 After the latest rate hikes on December 19th, the fifth and sixth granted in the 2024 calendar year12, Pacific Gas and Electric Company’s rates are now the highest in California, which has the second highest electric rates in the nation13. In 2024 alone, Pacific Gas and Electric Company increased rates by over 12 percent and in the last 10 years, averaged bundled residential rates more than doubled. Pacific Gas and Electric’s rates are increasing nearly four times faster than the national average. 14 These substantial and excessive rate hikes disproportionately impact low-income communities, Indigenous People, migrant communities and communities of color. We recognize lack of sufficient income is a strong determinant of health outcomes. Poverty15 in Berkeley is higher than the regional average.

Thus, PG&E’s rate hikes have a disproportionate impact on Berkeley residents.  PG&E-caused wildfires, due to negligence in maintaining their transmission and distribution infrastructure, and lack of transparency regarding safety checks in part for the purpose of maximizing profits and bonuses for their shareholders and executives16, generate a range of adverse outcomes for communities across California, such as the loss of human lives (PG&E has been found and admitted guilt for having killed at least 117 12 https://ia.cpuc.ca.gov/agendadocs/3556_results.pdf
13 California electricity prices now second-highest in U.S.: ‘Everyone is getting squeezed’ 14 California electric bills have essentially doubled over the past decade 15 Poverty - Vital Signs - SF Bay Area
16 How PG&E Ignored Fire Risks in Favor of Profits

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6 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] people since 201017), destruction of over 1.5 million acres of land and over 24,000 structures18, respiratory harms from smoke, mental health impacts and economic impacts.

Considering the cumulative impacts of smoke exposure on Berkeley residents, especially for Black, Latine, Asian, and Native communities, preventing PG&E-caused wildfires is a significant priority for improving public health and safety for Berkeley.  Utility shut-offs, which cause significant and disproportionate health, safety, and economic impacts on low-income people, disabled people, children, babies, and elderly people due to perishable food going bad and refrigerated medications expiring when the power is out for extended periods; endangerment of life and significant health impacts on people dependent on power to live through medical devices such as ventilators and electric wheelchairs, and health risks from heat stroke or heat exhaustion from loss of air conditioning during extreme heat days, and safety risks from breakdown of telecommunications19; and
WHEREAS, recognizing the long-term unsustainability of the incumbent system and the likelihood of its eventual failure, as a first step, in 2020 the state created the not-for-profit public benefit corporation, Golden State Energy, through passing SB35020, the Golden State Energy Act. Golden State Energy is legally designated as a receiver for PG&E’s assets for the purpose of owning, controlling, operating, or managing electrical and gas services for its ratepayers should PG&E fail; and
WHEREAS, a technical feasibility study would enable the state to determine if the best ownership structure for ratepayers and for the state for such a successor entity to PG&E should be a public utility, mutual benefit corporation (cooperative), or not-for-profit public benefit corporation (as is currently written in law); and
WHEREAS, the City of Berkeley understands the principle that energy is a human right and should not be sold to generate profit for anyone, and is committed to support all of our residents to access safe, renewable, clean, affordable and reliable energy; and WHEREAS, Berkeley faces significant interconnection delays on building infrastructure and developing clean energy projects. Operationalization and permitting of buildings’ electrical systems, and installation of solar and battery projects depends on PG&E; and 17 PG&E disasters killed 117 people last decade.
18 Many Californians still ‘trapped’ years after PG&E fires. Has the company improved safety? | PBS News 19 https://supreme.courts.ca.gov/sites/default/files/supremecourt/default/documents/2-20-s273340-records-rec%27d- 022822.pdf
20 Bill Text - SB-350 The Golden State Energy Act.

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7 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] WHEREAS, the City of Berkeley’s electrical and gas infrastructure faces unique risks of inundation or limited access to energy facilities or infrastructure due to flooding and sea level rise; and
WHEREAS, Berkeley residents experience the adverse effects of receiving electric power and gas utilizing the infrastructure of PG&E, an investor-owned utility (IOU), including:
 The recognition that rates are higher in IOU service territories across California – including in PG&E’s service territory – than in not-for-profit utilities (including municipal utilities, rural electric cooperatives, and tribal utilities), which has resulted in working class and low-income people paying higher rates. o Sacramento Municipal Utility District’s (SMUD) rates are 57.8% cheaper than PG&E’s.21
o Alameda Municipal Power’s rates are 48% cheaper than PG&E’s.22 o Anza Electric Cooperative’s rates are 59% cheaper than PG&E’s.23 o According to the Legislative Analyst’s Office, on average, California IOU electricity rates are more than 50 percent higher than rates charged by publicly owned utilities.24
 The recognition that PG&E is incentivized to make expensive, inefficient and unnecessary infrastructure investments that prioritize the maximization of shareholder profits over health, safety, economic, and environmental benefits for ratepayers.25 NOW THEREFORE BE IT RESOLVED, that the City of Berkeley supports the allocation of state fiscal and staff resources to commission a feasibility study that compares various not-for- profit utility models prioritizing public benefits in energy generation, distribution, and transmission; and the development an equitable implementation plan that establishes a statewide successor entity known as “Golden State Energy” as a successor to investor-owned utilities such as Pacific Gas and Electric; and
BE IT FURTHER RESOLVED that the City of Berkeley declares that it is in the best interest of its residents for California to support a worker- and community-led just transition away from for-profit utility models and toward publicly owned, cooperative, and nonprofit energy service models; and
BE IT FURTHER RESOLVED that the City of Berkeley will send a letter to the Governor and the Legislature urging them to:
21 https://www.smud.org/Rate-Information/Compare-rates
22 https://www.alamedamp.com/DocumentCenter/View/482/Alameda-Municipal-Power-Fact-Sheet-PDF 23 https://www.anzaelectric.org/sites/default/files/Rate%20Sheet%20- %20Rate%201%20Residential%20OCT%202024.pdf
24 https://lao.ca.gov/Publications/Report/4950
25 Here's the Real Reason PG&E Rates Are Skyrocketing in California - The Santa Barbara Independent

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8 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] ● Invest in a feasibility study to assess the viability of transitioning PG&E to a not-for- profit successor entity, evaluating the merits of a public benefit corporation, public utility, or cooperative mutual benefit corporation.
● Co-design Golden State Energy with frontline communities including wildfire survivors, labor unions, people with disabilities, Indigenous leaders, and environmental justice organizations to ensure that the new utility is democratically governed and accountable to the public rather than state agencies, the Governor’s office, or investor interests.
● Develop a justice-centered implementation plan that includes a clear transition timeline, outlines agency responsibilities, and ensures that burdens and benefits are equitably distributed among California residents.
● Enable a worker- and community-led transition by revoking PG&E’s business license and transferring its assets to Golden State Energy, ensuring continuity of service and prioritizing affordability, reliability, and resilience in California’s energy system.

BE IT FURTHER RESOLVED that the City of Berkeley recognizes that moving beyond investor-owned utilities is essential for achieving energy justice, affordability, and climate resilience, and commits to advocating for state action to replace PG&E and other IOUs with a more equitable and sustainable model.

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9 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] ATTACHMENT #2
City of Berkeley Date
2180 Milvia St
Berkeley, CA 94704
TO: Governor Gavin Newsom, Senator Jesse Arreguin and Assemblymember Buffy Wicks FROM: Berkeley Mayor Ishi and City Councilmembers
RE: The City of Berkeley Supports state investment in building a new not-for-profit utility for community benefit to replace PG&E
Dear Governor Newsom, and Honorable Members of the California State Assembly and State Senate,
On [DATE], City of Berkeley City Council Members voted to adopt the attached Resolution of the Council of the City of Berkeley in support of State investment in building a new not-for-profit utility for community benefit to replace PG&E
The unanimous passage of this resolution demonstrates the Berkeley City Council’s understanding that PG&E’s systemic failures have made it unsafe, unaffordable, and unsustainable to remain as Northern California’s electric utility monopoly. A viable and superior alternative is needed. The unexpected failure of PG&E would have catastrophic impacts on Berkeley residents, businesses and public services. PG&E’s historic and current practices adversely impact a wide array of municipal services, such as, but not exclusive to the interconnection and permitting of new traffic signals; the development of new affordable housing units and the decarbonization of both affordable and market-rate existing housing units; the development, interconnection and permitting of wastewater treatment facilities; the development and decarbonization upgrades of libraries; and more. This is due to PG&E’s consistent practice of delaying and overcharging for permits to connect new construction and electrical upgrades to PG&E’s electrical transmission and distribution grid. For all of these reasons and more, the City of Berkeley declares it is in the best interest of our residents that California makes a Just Transition26 away from all for-profit utility service models to not-for-profit utility service models, such as Golden State Energy (GSE).27 .
26 Putting California on the High Road: A Jobs and Climate Action Plan for 2030 27 Link to SFPUC & SF LAFCO Report & Recommendations on GSE, until ROP’s GSE Report Vol I is released for distribution.

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10 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] In June 2020, SB-350, the Golden State Energy Act, was enacted into law creating a framework for establishing Golden State Energy (GSE) to receive PG&E’s assets and authorized GSE to take the basic actions necessary to ensure continuity of critical electrical and gas service in Northern California. However, SB350’s design is skeletal, and GSE remains unstaffed and unfunded, creating significant uncertainty in the state’s ability to act quickly in the event of PG&E’s unexpected failure. With the increasing severity and unpredictability of our climate crisis, it is critical that we prepare for that eventuality in a way that prepares GSE to meet Californians’ modern energy needs.

Our communities deserve safe, reliable, affordable, clean and equitable energy provisions and the eventual implementation of GSE depends on legislative leadership. Therefore, the City of Berkeley urges the Governor and the California State Legislature to:
● Invest resources to study Golden State Energy - a not-for-profit successor alternative to PG&E, either as a not-for-profit public benefit corporation, a public utility, or a cooperative mutual benefit corporation - in order to identify a recommended model, assess the feasibility of transitioning PG&E to a successor entity, and identify priority just design features for the successor entity, with the goal of serving the public interest and necessity of the people and ecologies of California.
● Co-design Golden State Energy with frontline community28 representatives, including but not limited to wildfire survivors, labor unions, people with disabilities, Indigenous leaders and Tribes, people harmed by PG&E’s negligence, and economic, racial, and environmental justice organizations, the aforementioned groups to be a deeply democratic utility that is structurally accountable to the public – particularly frontline communities – with meaningful and equitable community engagement practices, rather than to the investor-owned utilities, the California Public Utilities Commission, the Governor’s office or its departments
● Implement Golden State Energy using a justice-centered implementation plan which outlines a timeline and transition process to the successor entity, including recommendations for which branches of government or agencies should be responsible and in coordination with which portions of the public, to ensure the transition fairly minimizes burdens and unintended consequences and fairly maximizes benefits in service of the public interest and necessity.
28 "Frontline communities are those who are most vulnerable to a particular burden or impact. They are also most sensitive to its effects, and have less adaptive capacity to mitigate the harm they are experiencing. Low-income and BIPOC residents of EJ neighborhoods are also frontline and most vulnerable to climate impacts: they are most exposed, more sensitive to, and have lower adaptive capacity to adapt to the impacts of climate change. As low-income residents of EJ communities are least responsible for causing the climate crisis in the first place, climate change ends up being an ‘injustice multiplier.” (Oakland General Plan Update 2045, Racial Equity Impact Assessment | Environmental Justice & Safety Elements, Marybelle Nzegwu Tobias & Colin Miller, Environmental / Justice Solutions, p. 5, 2023, available online at RACIAL EQUITY IMPACT

ASSESSMENT)

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11 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] ● Enable a worker- and community-led just transition29 by revoking PG&E’s business license and transferring its assets to the not-for-profit successor utility Golden State Energy as the Provider of Last Resort for PG&E’s territory.

We strongly urge you to take leadership as representatives of the people of California, towards legislative action to implement Golden State Energy.

Sincerely,
29 Putting California on the High Road: A Jobs and Climate Action Plan for 2030

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12 2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7140 ● E-Mail: [email protected] ATTACHMENT #3: https://reclaimourpowerca.org/wp-
content/uploads/2024/06/TheCaseForGoldenStateEnergyReport.pdf

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Berkeley City Councilmembers
Mark Humbert, District 8
Shoshana O’Keefe, District 5
Brent Blackaby, District 6
2180 Milvia Street, 5th Floor
Berkeley, CA 94704
[email protected]

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CONSENT CALENDAR
February 11, 2025
To: Honorable Mayor & Members of the Berkeley City Council From: Councilmember Mark Humbert (Author)
Councilmember Shoshana O’Keefe (Co-sponsor)
Councilmember Brent Blackaby (Co-sponsor)
Subject: Refer to City Manager study of intersections with traffic diverters RECOMMENDATION:

Refer to the City Manager a request to have staff prioritize study of intersections that include traffic diverters but do not feature stop signs; additionally, staff are requested to review past Council referrals for adoption of National Association of City Transportation Officials (NACTO) street design standards and provide an update on the status and timeline for meeting past policy directives. Examples of intersections to be studied include but are not limited to:
● Ada and California Street
● Grant Street and Berkeley Way
● Yolo and Milvia Street
● McGee and Virginia Street
● Derby and Mabel Streets
● Piedmont and Russell Street
● Hillegass and Woolsey Street
● Park and Russell Street
● Mabel and Russell Street
BACKGROUND:

Within the past 18 months, two pedestrians in Berkeley have been seriously injured or killed in the vicinity of intersections with traffic diverters but no stop signs:
● On Halloween 2023, Shannon Mitchell's then 7-year-old son was struck by a hit-and-run driver who came speeding around the corner of Derby and Mabel. ● On January 26, 2025, a 66-year-old woman was struck and killed at the intersection of California and Ada streets.

RATIONALE FOR RECOMMENDATION:

Something these two intersections appear to have in common is the presence of traffic diverters without stop signs. Since there is generally no oncoming traffic, drivers may treat such intersections differently from intersections with through traffic in all directions..

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Refer to City Manager study of intersections with traffic diverters CONSENT CALENDAR February 11, 2025

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Based on photos and witness testimony reported on by the Berkeley Scanner, the driver involved in the most recent fatal collision had most likely just executed a left turn from northbound California Street on to westbound Ada Street.

Many similar intersections throughout Berkeley already feature stop signs, so their inclusion at additional intersections or other measures may be appropriate. Exploring potential safety improvements at these intersections would be consistent with Berkeley’s Vision Zero policies, Climate Action Plan, Pedestrian Plan, and Transit First policy.

FISCAL IMPACTS
Preliminary, order-of magnitude estimate of staff time for study and reporting to Council is $20,000–$60,000.

SUSTAINABILITY
By potentially making Berkeley streets safer for walking and biking, this proposal would encourage alternatives to driving, thereby serving to decrease greenhouse gas emissions and other impacts associated with the operation of automobiles.

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ACTION CALENDAR
February 11, 2025
To: Honorable Mayor and Members of the City Council
From: Jenny Wong, City Auditor
Subject: 2009 Leases Audit Follow-Up: Berkeley Faces the Same Risk s 16 Years Later

RECOMMENDATION
Our recommendations include clarifying roles and responsibilities for lease oversight, updating the lease policy, and developing a complete central list of leases and licenses. We recommend City Council request that the City Manager report back during the next follow-up period in fall 2025, and every year thereafter, regarding the status of the 8 re-opened recommendations until reported fully implemented by the Public Works Department and City Manager’s Office. They have agreed to our findings, re-opened recommendations, and guidance for implementing the recommendations. Please see our report for their complete response.

FISCAL IMPACTS OF RECOMMENDATION
Implementing the recommendations outlined in the follow-up report may have fiscal implications for the City. Some improvements to lease management will depend on additional resources for staffing and software to track leases and licenses. However, improved monitoring of lease and license agreements could result in cost savings, for example if lease agreements are renegotiated in a timely manner, or if responsibility for utilities and maintenance costs are applied more consistently.

CURRENT SITUATION AND ITS EFFECTS
Our report highlights a number of potential risks associated with the City’s current lease management practices. The City Auditor’s 2009 Leases Audit found that the City’s lease oversight was largely decentralized despite a previous plan to centralize this function. The 2009 audit also found that City staff did not always comply with rules and regulations for leases, and a complete central inventory of leases was not available. Our follow-up report found that these issues are still relevant today.

There is still no central oversight of leasing activities citywide. Limited staff capacity and lack of clear direction from City Management impact the City’s ability to stay on top of its leases and licenses. At the time the original audit was released, the City had a Real Property Administrator dedicated to citywide lease management, but this position was eliminated in FY 2014.

The City still does not have a relevant policy for how lease and license agreements should be established and managed. We found differences in terms for leases with below market rate rent, including whether utilities and maintenance were covered by the City. We found that there is no

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2009 Leases Audit Follow Up – Berkeley Faces the Same Risks 16 Years Later ACTION CALENDAR standard process for determining when to offer rent below market rate. Differences in agreements could lead to actual or perceived unfairness between current or prospective tenants.

Finally, the City still has no complete central list of lease and license agreements. This limits the City’s ability to holistically assess the costs and benefits of leasing and licensing decisions, and could expose the City to potential risks like losing track of real estate assets – which according to Public Works happened with a building at 1890 Alcatraz Avenue – or financial loss if lease agreements are not renewed in a timely fashion.

BACKGROUND
The City rents out City-owned properties for specified periods of time to tenants including commercial businesses, non-profit organizations, and other governments through lease and license agreements. The City currently has at least 49 lease agreements and 8 license agreements for outside entities to rent City-owned property. The City also rents space owned by other entities. Departments involved in lease management include Public Works; Parks, Recreation and Waterfront; and Health, Housing and Community Services.

We were unable to confirm the exact number of leases and licenses in the City’s inventory due to limited information maintained by the City.

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

RATIONALE FOR RECOMMENDATION
Implementing our recommendations will improve the City’s oversight of leases and licenses.

CONTACT PERSON
Jenny Wong, City Auditor, City Auditor’s Office, 510-981-6750 Attachments:
1: Report – 2009 Leases Audit Follow-Up: Berkeley Faces the Same Risks 16 Years Later

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Promoting transparency and accountability in Berkeley government Audit Report
May 27, 2021
2009 Leases Audit
Follow-Up: Berkeley
Faces the Same Risks
16 Y ears Later

January 24, 2025
Jenny Wong, City Auditor
Caitlin Palmer, Audit Manager
Pauline Miller, Auditor II

Follow-Up Report

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2009 Leases Audit Follow-Up: Berkeley Faces the Same Risks 16 Years Later

1 Table of Contents

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management and lacks a clear approach.

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leading to variances in agreements.

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for effective management.

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Executive Summary
We assessed the implementation of the recommendations from the 2009 audit of City leases and found that the City still faces some of the same issues identified in the original audit, 16 years later. The City lacks a clear approach to lease management, a relevant policy to guide leasing and licensing decisions, and a complete central inventory of leases and licenses. These factors compromise the City’s ability to strategically manage City-owned property. To address these challenges, we re-opened 8 recommendations, which include prioritizing lease management oversight, updating the leasing policy, and developing a complete central inventory of leases and licenses. Implementing these recommendations will require collaboration and depends on additional resources, but the recommendations are critical to ensure sound management of City-owned and occupied properties.

Objective
The objective of this special report was to assess the implementation status of the recommendations from the 2009 audit of City leases and identify any remaining risks to the City associated with lease management.

We initiated this work because according to the Public Works Department’s last update to City Council, the City never implemented 7 out of 24 recommendations from the 2009 report.1 Additionally, the City did not follow through with the 2002 plan to centralize lease management, raising concerns that the status of some previously implemented recommendations may have changed. Without a clearly defined citywide approach to lease management, the City still faces many of the risks the 2009 audit recommendations aimed to address.

1 November 3, 2022 Status Update to City Council: https://berkeleyca.gov/sites/default/files/city-council- meetings/2022-11-03%20Agenda%20Packet%20-%20Council%20-%20WEB.pdf#page=871

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2 Methodology
We assessed the relevance and potential risk of the original audit recommendations and selected 8 recommendations to follow up on. Our follow up work targeted some recommendations that were not implemented, and some recommendations that were once implemented, but may have become unimplemented. To verify the status of these recommendations, we reviewed lease and license documentation and policies, and interviewed City staff responsible for lease management.

Background on City Leases and Licenses
The City rents out City-owned properties for specified periods of time to tenants including commercial businesses, non-profit organizations, and other governments through lease and license agreements. The City also leases space owned by other entities. In this report, “lease management” refers to lease and license agreements.

Table 1. The City of Berkeley uses these two types of agreements for renting space.

Description

Lease Agreement
• Tenant is allowed to occupy the property.
• Transfers leasehold interest in the property.
• May require eviction proceedings to end the agreement and remove the lessee.
• Typically exclusive use.
• Longer terms.

License Agreement
• Tenant is allowed use of space for a specific purpose. • Does not transfer interest in the property.
• Simpler process for ending the agreement and removing the licensee.
• Non-exclusive use.
• Shorter terms.

Sources: Department of Public Works, City Attorney’s Office, University of California Santa Cruz Website Departments involved in lease management include Public Works; Parks, Recreation and Waterfront; and Health, Housing and Community Services. The City currently has at least 49 lease agreements and 8 license agreements for outside entities to rent City-owned property. The City also rents space from outside entities. We were unable to confirm the exact number of leases and licenses today because the City does not currently have a complete list.

Examples of buildings the City rents out to other entities include Old City Hall (image 1), the Veteran’s Building, and the Telegraph-Channing Mall (image 2). The City also rents property to hotels, restaurants, and shops at the Berkeley Marina. An example of a building the City leases from another entity is the Adult Mental Health Clinic on University Avenue.

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3 Images 1 and 2. Examples of City-owned buildings leased or licensed to outside entities.

Old City Hall Telegraph Channing Mall

Source: City of Berkeley Source: City of Berkeley Overview of the 2009 Leases Audit
In June 2009, the City Auditor issued an audit examining the effectiveness of the City’s lease oversight. The audit findings included:
• Lease oversight remained largely decentralized despite steps taken to centralize this function; • City staff did not always comply with City rules and regulations for leases; and • A complete inventory of City facility leases with key information was not available.

The 2009 audit compared the City’s lease management practices to its 2002 goal to centralize lease management. In our follow up work, we did not assess whether or not lease management should be centralized, but we did identify some risks associated with the City’s current approach, which continues to lack clear, formalized expectations regarding lease management.

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4 Some issues identified in the 2009 audit are still relevant 16 years later in 2025.

Our assessment of the current status of the recommendations found that the City still faces some of the issues identified in the original audit. The following issues compromise the City’s ability to strategically manage City- owned property:

The City lacks a clear approach to lease management;
The City’s lease policy does not accurately reflect its actual practices; and There is no complete central inventory of lease and license agreements.

The City did not follow through on efforts to centralize lease management and lacks a clear approach.

We found that there is still no central oversight for citywide leasing activities. The staffing model for lease management has changed since the original audit was issued. In 2009, the City had a Real Property Administrator (RPA) formally in charge of citywide lease management as part of their plan to centralize this function. A primary responsibility of the RPA was to create a property management plan that outlines a process to centralize lease management by transferring lease responsibilities from other departments to the RPA. This plan was never adopted and the RPA position was eliminated in fiscal year 2014.

Public Works staff conduct many of the duties assigned to the RPA, but there is currently no staff person in the City responsible for central oversight of leases and licenses. While determining the best approach to lease management was outside of the scope of this follow-up report, based on interviews with several departments, we found that limited staff capacity and lack of clear direction from City Management impact the City’s ability to stay on top of its leases and licenses.

To address these lease management issues and implement the original audit recommendations, we provide the following guidance:

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5 Original Recommendation Explanation of Current Status Guidance for Implementation

1.1: The City Manager should
formalize and approve the
division of responsibilities
between the Public Works
department and other
departments regarding lease
management.

Not started. According to the City Manager’s
Office, Berkeley’s current lease management
system is decentralized and requires
interdepartmental coordination. They have not
provided formal direction on the City’s
approach to lease management since the
2002 plan to centralize and have not yet
formalized roles for lease management
despite changes in the City’s approach.

In order to implement this
recommendation, the City Manager’s
Office should define roles and
responsibilities for lease management
and oversight of leases and licenses.

This should include written direction on
any aspects of lease management that
should be centralized or delegated to a
single staff member or staff members,
for example, maintaining the inventory of
leases and licenses (see
recommendations 4.1, 4.3 and 4.4).

1.2: The Public Works
department should determine
and formally define the role of
the real property
administration staff given
available resources.

Started. According to Public Works, the
Department hired a Community Development
Specialist responsible for many of the RPA’s
former lease management duties. This
position is currently undergoing a desk audit,
which will help assess if any additional
resources are needed to support real property
management. According to Parks, Recreation
and Waterfront, the department had a position
partially assigned to lease work, but the
position is currently vacant.

In order to implement this
recommendation, once responsibilities
for lease management are defined (see
recommendation 1.1), the City
Manager’s Office should work with all
departments managing leases and
licenses to identify where additional
staffing resources are needed. This
process should be documented.

1.5: The City Manager should
formally communicate a
property management plan
with all affected City
Departments.

Not started. The Real Property Administrator
did not establish a plan to centralize lease
management, and the position was eliminated.

According to the City Manager’s Office,
developing such a plan will be difficult given
staffing constraints, and additional funding
would be needed to implement it.

In order to implement this
recommendation, the City Manager’s
Office should request resources in the
budget to develop a property
management plan detailing the City’s
approach to lease management. This
plan should be shared with all affected
departments.

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6 The City’s lease policy does not align with its actual practices, leading to variances in agreements.

We found that City staff still do not follow the lease policy. The City’s lease policy, Administrative Regulation (AR) 6.6, assigns oversight of the lease process to Public Works. This includes reviewing lease requests, negotiating leases, and preparing lease agreements for City Council approval. According to Public Works and City Attorney’s Office staff, departments do not always consult Public Works during the process of establishing leases and licenses as required by AR 6.6. As a result, Public Works may not know about leasing decisions until the City Council approval stage, when it is too late to provide direction on the lease terms.

Without clear policies and procedures for developing rental agreements, lease and license terms vary significantly and the City’s process for offering below market rate rent lacks transparency. According to staff, responsibilities for paying utilities and other fees is not always consistent across leases. We reviewed several agreements in which the City rents out its own property at significantly below market rate, but still pays for some or all utilities and other services, including refuse services or maintenance. We found that some non- profits pay market rate to rent City-owned properties while others do not. While the City may establish below market rate rent to subsidize organizations that provide services to the community or make improvements to City-owned properties, we found that there is no standard process for determining when to offer rent below market rate. Without a standard policy for establishing lease terms, there is a lack of transparency about the justification for these decisions. Differences in lease agreements could lead to actual or perceived unfairness between current or prospective tenants that do not receive the same opportunities.

We also found no clear guidance for determining when to lease versus when to license City-owned space. Public Works is moving toward optimizing use of City property by establishing more license agreements, which are non-exclusive and allow tenants to co-occupy space. However, this is not an adopted citywide approach.

To address these lease management issues and implement the original audit recommendations, we provide the following guidance:

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7 Original Recommendation Explanation of Current Status Guidance for Implementation

2.1: Public Works and
Finance should update
Administrative Regulation 6.6
and Contracts Online to give
clear direction to City staff
regarding administration and
execution of lease
agreements.

Not started. AR 6.6 has not been updated.

Some departments managing leases and
licenses have developed their own internal
procedures, but several departments told us
they do not follow AR 6.6.

In order to implement this
recommendation, the City Manager’s
Office should revise AR 6.6 with support
from the City Attorney’s Office to reflect
an agreed upon process for
administration and execution of lease
and license agreements. This should
include reference to established roles
and responsibilities for lease
management (see recommendation 1.1).

It should also include guidance for
ensuring lease and license terms follow
consistent practices, including but not
limited to:
• Guidance for when to lease
versus license city-owned
property.
• Guidance for establishing
below market rate rent
agreements.
• Guidance for establishing
responsibility for utility and
maintenance costs.

The City Attorney’s Office and the City
Manager’s Office should determine if
additional administrative regulations are
needed.

Once this is complete, the Finance
Department should link to AR 6.6 in
Contracts Online.

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2009 Leases Audit Follow-Up: Berkeley Faces the Same Risks 16 Years Later

8 The City lacks a complete central list of leases and licenses needed for effective management.

We found that there is still no central inventory containing all leases and licenses, but several departments manage their own lists. When we examined the master list of citywide leases and licenses kept by Public Works, we found that it was missing some agreements, including many leases managed by the Health, Housing and Community Services Department. The list was also missing detailed lease and license information such as property location, contract numbers, start and end dates, rent amounts, and details on utility and maintenance agreements. Without complete and detailed central lease inventory, the City faces the following types of risks.

The City’s ability to assess the costs and benefits of leasing and licensing decisions is limited.

The City does not keep complete data on rent charged to tenants or keep track of the market rate for its properties. Based on the limited data available, we identified instances where the City charges rents as low as $1 per year. However, we could not tell how many total properties the City leases or licenses out below the market rate. Additionally, there seem to be inconsistencies in what the City spends and receives on rent.

According to a lease agreement established in 1958 and renewed in 2007, the City offers discounted rent of less than $1 per year to the Judicial Court of California for use of the City-owned Berkeley Courthouse. At the same time, the City currently pays $1,200 per meeting day for use of the Berkeley Unified School District building to host City Council meetings. Without keeping some detailed financial information in one central location, the City cannot assess the costs and benefits of renting to or from other entities.

The City could lose track of its property.

The City’s current lists of leases and licenses had incomplete data on property location and were missing some City-owned properties. In the past, this issue has caused the City to lose track of properties it owns and could use for services. According to Public Works, this occurred with a building at 1890 Alcatraz Avenue which the City was at one point unaware that it owned. A complete inventory of leases and licenses could also assist the City in conducting analysis of space utilization, which Public Works is planning to initiate in 2025.

The City could face financial loss or service disruption.

The City’s current lists of leases and licenses had incomplete data on lease start and end dates. Based on the latest information provided by Public Works and Parks, Recreation and Waterfront, the City has over 20 leases in holdover, and some of these agreements ended over 10 years ago. According to the City Attorney’s Office, when leases extend beyond the end date without renewal, they go into holdover and the terms continue on a month to month basis until they are updated. With so many leases in holdover, the City may miss out on opportunities to adjust rent amounts to better cover its costs, or match the market rate. This could result in

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9 financial loss if lease agreements end and terms including rental amount are not renegotiated. 2 For leases in holdover in which the City is the tenant, this places the City at risk of being asked to leave, which could interrupt services to the community.

To address these lease management issues and implement the original audit recommendations, we provide the following guidance:

Original Recommendation Explanation of Current Status Guidance for Implementation

4.1: Public Works should
determine what information is
needed in a centralized
repository of lease
information. Staff in the
operating departments
responsible for leases should
be consulted to identify
information that they need for
monitoring leases. This
information should be
included in the centralized
repository of lease
information.

Not started. There is no
complete central inventory of
leases and licenses.

In order to implement this recommendation, the Public
Works Department should meet with staff in other
departments managing leases and licenses to
determine what information is needed in a central
repository of lease and license information.

4.3: Public Works should
ensure that relevant detailed
information such as contract
numbers, annual cost of living
adjustments, and other lease
terms, fees, covenants, and
locations are included in the
complete lease inventory
detail.

Not started. There is no
complete central inventory of
leases and licenses.

In order to implement this recommendation, once
recommendation 4.1 is addressed, the Public Works
Department should ensure that basic information on
lease and license agreements, including contract
numbers, annual cost of living adjustments, expiration
dates and locations, is kept in a central inventory of
leases and licenses. The Public Works Department
should also meet with staff in other departments
managing leases and licenses to develop a schedule
for updating this information (for example, quarterly,
every 6 months, or annually) and work with the City
Manager’s Office to confirm responsibility for updating the inventory (see recommendation 1.1).

We identified the following fields that would be useful to include in a central inventory, but may require
additional resources to include. The City should
consider including the following information in a new
lease management system or tool, pending available
resources (see recommendation 8.2).
• Market rate rent value for each property, in
order to properly track below market rate
leases and licenses.
• Details on utilities and maintenance
agreements.

2 According to Public Works, lease terms include small annual increases that apply even when a lease is in holdover.

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10 4.4: Public Works should
make the lease inventory
detail available to City staff so
they can utilize the
information to make informed
decisions. If possible, this
information should be
available online in a format
that allows controlled updates
of information.

Not started. According to
Public Works, department staff
maintain a folder with lease and
license information that is
shared with other departments.

However, this folder is not
utilized by city staff outside of
Public Works to make informed
decisions about leasing and
licensing space.

In order to implement this recommendation, the Public
Works Department should work with departments
managing leases and licenses to determine a central
location where the lease and license inventory and
related documents can be stored, and document the
outcome of this meeting.

This may involve consideration of a lease management
system or tool, and could require additional resources
(see recommendation 8.2).

8.2: Public Works and
Finance should determine if
the existing systems can be
used to finalize a
comprehensive list of City
leases.

Not started. According to City
staff, the complexity of the
City’s lease and license
agreements may necessitate a
new lease management system
or tool other than Excel for
tracking leases and licenses.

In order to implement this recommendation, the City
Manager’s Office should work with departments
managing leases and licenses to determine whether
additional resources for a new lease management
system are needed to maintain a central inventory of
leases and licenses.

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11 Recommendations and Management Response
We provided a draft of this report to city management and the Public Works Department (Department) for review and comment. The Department agreed with our findings, re-opened recommendations, and guidance for implementation. We generally expect the City to implement audit recommendations within two years of report issuance. However, some recommendations depend on additional resources. The Department provided the implementation dates and corrective action plan below. We will be conducting our standard recommendation follow up process after the report is issued. We have not yet confirmed to what extent the recommendations have been implemented prior to the audit release date.

1.1 The City Manager should formalize and approve the division of responsibilities between the Public Works department and other departments regarding lease management.

Guidance for Implementation: In order to implement this recommendation, the City Manager’s Office should define roles and responsibilities for lease management and oversight of leases and licenses. This should include written direction on any aspects of lease management that should be centralized or delegated to a single staff member or staff members, for example, maintaining the inventory of leases and licenses (see recommendations 4.1, 4.3 and 4.4).

Management Response: Agree
Implementation Date: June 2025
Corrective Action Plan: Will develop written direction on division lease related responsibilities delineating which aspects of lease management will be centralized vs decentralized with clear guidance for departments on responsibilities.

1.2 The Public Works department should determine and formally define the role of the real property administration staff given available resources.

Guidance for Implementation: In order to implement this recommendation, once responsibilities for lease management are defined (see recommendation 1.1), the City Manager’s Office should work with all departments managing leases and licenses to identify where additional staffing resources are needed. This process should be documented.

Management Response: Agree
Implementation Date: June 2025
Corrective Action Plan: The Public Works Department currently has an existing 1 FTE position in the Community Development Project Coordinator classification that has dedicated responsibility for real property management functions, which includes leases. Given the evolution of this workload, a Human Resources Department desk audit of the position has been initiated by the Public Works Department to assess the job duties and workload of the position. The desk audit will also help to identify capacity constraints of the position and determine if additional resources are recommended to meet the existing workload associated with lease and real property management.

1.5 The City Manager should formally communicate a property management plan with all affected City Departments.

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12 Guidance for Implementation: In order to implement this recommendation, the City Manager’s Office should request resources in the budget to develop a property management plan detailing the City’s approach to lease management. This plan should be shared with all affected departments.

Management Response: Agree
Implementation Date: June 2025
Corrective Action Plan: The feasibility of implementing this recommendation with the current resources will be evaluated as part of recommendations 1.1 and 1.2. If additional resources are needed they will be contemplated as part of the budget process in the context of all financial requests.

2.1 Public Works and Finance should update Administrative Regulation 6.6 and Contracts Online to give clear direction to City staff regarding administration and execution of lease agreements.

Guidance for Implementation: In order to implement this recommendation, the City Manager’s Office should revise AR 6.6 with support from the City Attorney’s Office to reflect an agreed upon process for administration and execution of lease and license agreements. This should include reference to established roles and responsibilities for lease management (see recommendation 1.1).

It should also include guidance for ensuring lease and license terms follow consistent practices, including but not limited to: guidance for when to lease versus license city-owned property; guidance for establishing below market rate agreements; and guidance for utility and maintenance costs. The City Attorney’s Office and the City Manager’s Office should determine if additional administrative regulations are needed. Once this is complete, the Finance Department should link to AR 6.6 in Contracts Online.

Management Response: Agree
Implementation Date: December 2025
Corrective Action Plan: Given current resources this work will be undertaken in 2025.

4.1 Public Works should determine what information is needed in a centralized repository of lease information. Staff in the operating departments responsible for leases should be consulted to identify information that they need for monitoring leases. This information should be included in the centralized repository of lease information.

Guidance for Implementation: In order to implement this recommendation, the Public Works Department should meet with staff in other departments managing leases and licenses to determine what information is needed in a central repository of lease and license information.

Management Response: Agree
Implementation Date: March 2025
Corrective Action Plan: Public Works will lead an interdepartmental team through the process of defining all relevant information that should be collected to ensure a complete and accurate list of revenue and expenditure leases and license agreements as well as programmatic property agreements is created and maintained. Public Works will ensure that every City department is represented on the team to ensure the content of the central inventory meets the needs of all departments. Once this framework is complete, Public Works will oversee implementation of this tracking tool and periodically work with the team to review and update inputs to improve consistency and standardization of fields.

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13 4.3 Public Works should ensure that relevant detailed information such as contract numbers, annual cost of living adjustments, and other lease terms, fees, covenants, and locations are included in the complete lease inventory detail.

Guidance for Implementation: In order to implement this recommendation, once recommendation 4.1 is addressed, the Public Works Department should ensure that basic information on lease and license agreements, including contract numbers, annual cost of living adjustments, expiration dates and locations, is kept in a central inventory of leases and licenses. The Public Works Department should also meet with staff in other departments managing leases and licenses to develop a schedule for updating this information (for example, quarterly, every 6 months, or annually) and work with the City Manager’s Office to confirm responsibility for updating the inventory (see recommendation 1.1).

We identified the following fields that would be useful to include in a central inventory, but may require additional resources to include. The City should consider including the following information in a new lease management system or tool, pending available resources (see recommendation 8.2).
• Market rate rent value for each property, in order to properly track below market rate leases and licenses.
• Details on utilities and maintenance agreements.

Management Response: Agree
Implementation Date: March 2025
Corrective Action Plan: To ensure all information identified in recommendation 4.1 is collected, Public Works will work with the City Attorney’s Office to create a Letter of Intent/Lease Summary template that will become a mandatory part of all future leases and license agreements. This template will include all data needed for the inventory. This document can also be used to review and assess current leases and licenses agreements. The language used in Lease and/or Licensing Agreements for real property has been under iterative revision during the past 12-18 months in an effort to standardize formatting, term structure (when feasible), and legal language. As legacy Agreements reach expiration or are amended (exercising an option to extend the lease for example), the Letter of Intent/Lease Summary can be added to an existing agreement or used part of a new agreement.

4.4 Public Works should make the lease inventory detail available to City staff so they can utilize the information to make informed decisions. If possible, this information should be available online in a format that allows controlled updates of information.

Guidance for Implementation: In order to implement this recommendation, the Public Works Department should work with departments managing leases and licenses to determine a central location where the lease and license inventory and related documents can be stored, and document the outcome of this meeting.

This may involve consideration of a lease management system or tool, and could require additional resources (see recommendation 8.2).

Management Response: Agree
Implementation Date: July 2025
Corrective Action Plan: Concurrent with the Corrective Action Plan for 4.1, Public Works will also lead interdepartmental discussions about the location and access to the centralized lease and

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14 license agreement list and determine need and advocacy for a property management system or tool that includes leases, license, and tenant management. The team will also determine the need for public access to the list and establish a calendar for annual and/or quarterly updates to that public list.

8.2 Public Works and Finance should determine if the existing systems can be used to finalize a comprehensive list of City leases.

Guidance for Implementation: In order to implement this recommendation, the City Manager’s Office should work with departments managing leases and licenses to determine whether additional resources for a new lease management system are needed to maintain a central inventory of leases and licenses.

Management Response: Agree
Implementation Date: July 2025
Corrective Action Plan: A central inventory of city exists but needs to be refined, improved and clearly communicated to all department staff involved in lease management. Assessment will continue and if existing systems are insufficient new systems will be reviewed for adoption.

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Mission Statement
Promoting transparency and accountability in Berkeley government.

Project Team
Caitlin Palmer, Audit Manager
Pauline Miller, Auditor II

City Auditor
Jenny Wong

Office of the City Auditor
Phone: (510) 981-6750
Email: [email protected]
Website: https://berkeleyca.gov/your-government/city-audits

Copies of our audit reports are available at:
https://berkeleyca.gov/your-government/city-audits/city-auditor-reports

Cover photographs provided by City of Berkeley

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Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/

ACTION CALENDAR
February 11, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Jordan Klein, Director, Planning and Development Department Subject: Proposed Amendments to the Building Emissions Saving Ordinance (BESO)

RECOMMENDATION
Adopt the first reading of amendments to the Building Emissions Saving Ordinance (BESO), Chapter 19.81 of the Berkeley Municipal Code (Attachment 1), to establish a flexible resilience standard for residential buildings containing up to four units.

SUMMARY
Berkeley’s Building Emissions Saving Ordinance (BESO) is one of the City’s main programs designed to reduce energy use, water consumption, and greenhouse gas (GHG) emissions from existing buildings. In 2015, the initial adoption of BESO removed the mandatory prescriptive requirements previously required in Berkeley’s predecessor legislation, the Residential Energy Conservation Ordinance (RECO), and instead focused on an assessment-based approach at time of sale. Currently, BESO relies on building owners to voluntarily complete energy upgrades to decrease their building’s emissions. However, only 2-3% of building owners are known to have completed upgrades under BESO’s voluntary model. In 2020, when the City Council amended BESO, it directed staff to develop upgrade requirements for Council consideration.

These proposed amendments to BESO would re-establish mandatory time of sale requirements for one-to-four-unit residential buildings, ensuring upgrades that increase resilience are made alongside the existing energy assessment requirement; both are critical to achieving Berkeley’s ambitious climate action and GHG reduction goals. In addition to time of sale requirements, staff will develop building performance standards for large buildings for future Council consideration.

On December 2, 2024, staff met with Council’s Land Use, Housing, and Economic Development (LUHED) Policy Committee, which voted to forward the proposed amendments to City Council with a Qualified Positive Recommendation. The committee’s recommendations have been addressed in this proposal.

The proposed amendments to BESO would establish a flexible resilience standard that requires owners of small (one-to-four-unit) residential buildings to complete upgrades when a property is sold. These proposed time of sale requirements allow building

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owners to choose from a menu of measures to satisfy the requirements, to accommodate building conditions and owner priorities. For homes that have not met compliance prior to sale, an escrow deposit would ensure that funds are set aside to help the buyer complete the upgrades. The proposed BESO amendments include exemptions for first-time home buyers receiving Federal or State assistance, all-electric buildings, and buildings that have at least one heat pump system.

The proposed time of sale requirements cover one-to-four-unit residential buildings and would be implemented in two phases beginning in 2026.

FISCAL IMPACTS OF RECOMMENDATION
Current staffing levels within the BESO program are sufficient to accommodate these proposed BESO amendments if updates are made to BESO’s compliance software.

Updates to BESO’s online application portal would incorporate the new workflows and application types, develop additional automations to reduce staff time, and provide additional customer support options for building owners. One-time costs to upgrade BESO’s compliance software would not exceed $100,000. There is currently $20,000 allocated from a budget referral that can be used for that software upgrade; the remaining $80,000 could be funded through the Permit Service Center baseline budget.

The ongoing software licensing costs are covered by existing program fees and would not increase as a result of the recommended action.

Currently, the Finance Department allocates 0.5 FTE of an Accounting Office Specialist II to process escrow deposits for Berkeley’s Private Sewer Lateral Program. BESO would require a similar process, requiring an additional 0.5 FTE position to process the new escrow deposits. Recovering this cost would be addressed through a new fee to obtain a BESO Certificate. This fee, of approximately $150, will be included in an updated BESO fee structure that will be brought to City Council within the next year.

Fiscal Impacts on the Property Owner:

The seller would maintain responsibility to complete the current BESO energy assessment requirement, which currently costs an average of $350 per dwelling unit.

The cost to a buyer to complete upgrades, if compliance was not met prior to sale, varies depending on which upgrades are selected and the building characteristics and condition. Additionally, if upgrades are needed, a $7,000 deposit for this purpose would be held by the City through escrow. Funding for the deposit would be negotiated between a buyer and a seller. The easiest and cheapest upgrade that meets compliance is to install a heat pump water heater, with a current median cost of $6,700- $7,9001 in Alameda County without rebates and under $5,000 with currently available rebates and tax credits. Additional rebates and tax credits are available to offset the costs of heat pump water heaters and other upgrade measures to reach compliance. 1 Based on project installation data available for Alameda County from BayREN Home+ participation data (January 2020 to March 2024) and TECH Clean California (July 2021 to November 2024), https://techcleanca.com/public-data/) accessed 12/31/2024.

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CURRENT SITUATION AND ITS EFFECTS
Expanding BESO to establish a time of sale resilience standard for small residential buildings responds to City Council direction to staff in 20202 to develop energy upgrade requirements for Council’s consideration. This work is a Strategic Plan Priority Project, advancing the City’s goal to be a global leader in addressing climate change, advancing environmental justice, and protecting the environment.

Berkeley’s BESO is one of the City’s main programs to improve indoor air quality and reduce GHG emissions from existing buildings. Since BESO’s adoption in 2015, more than 4,200 BESO assessments have been completed and more than 300 medium and large buildings have been regularly tracking and reporting their energy use. However, BESO has relied on voluntary uptake of the assessment recommendations to achieve Berkeley’s climate action goals, and few building owners have acted. BESO currently includes an exemption pathway that allows building owners to complete energy upgrades in lieu of an assessment, and only 2-3% of building owners have opted to complete energy upgrades. The proposed amendments to BESO, which would require a flexible resilience standard at the time of sale, are critical to achieving Berkeley’s ambitious climate action and GHG reduction goals and its goals of improving public health and the resilience of its built environment.

There are several benefits to requiring buildings to complete upgrades when sold, if compliance hasn’t already been met. Many new homeowners renovate soon after moving in and buyers can incorporate the cost of the upgrades into their budget when purchasing a home, and negotiate with the sellers on the escrow funds for compliance.

The proposed resilience upgrades can help new homeowners improve the comfort and indoor air quality of their new home, decrease utility costs, increase safety, or prepare their home for compliance with the Bay Area Air Quality Management District’s (BAAQMD) upcoming zero NOx appliance standards by completing necessary electrical upgrades to ensure a seamless transition when their gas water heater or gas furnace requires replacement.

Flexible Resilience Standard:

The proposed amendments would establish a flexible resilience standard for small residential buildings based on a credit system. Building owners who have already taken steps to reduce emissions by installing a heat pump water heater or heat pump HVAC 2 Staff Report and Ordinance regarding amendments to the Building Emissions Saving Ordinance (Council meeting on December 1, 2020): https://berkeleyca.gov/sites/default/files/documents/2020-12- 01%20Item%2013%20Proposed%20Amendments%20to%20the%20Building.pdf

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system would not be required to complete additional upgrades. This standard only applies to properties that are being sold.

The resilience standard would use a credit-based compliance system to ensure the greatest flexibility. Building owners can choose which measures to complete in order to accommodate the range of building conditions and owner priorities. Each measure would have a corresponding credit value based on its emissions savings. Measures that contribute to resilience but don’t directly reduce emissions would have credit values based on cost. Bonus credits may be added to specific measures that provide additional health, safety, or equity benefits. Initial measures include:
 Heat Pump Water Heater
 Heat Pump HVAC
 EV Charging Station
 Bi-Directional EV Charger
 Induction Range
 Knob and Tube Replacement
 Panel Upgrade
 Pre-wiring & 240v Outlets
 Smart Panel
 Duct Sealing/Replacement
 Attic Insulation
 Wall Insulation
 Window Replacements
 Air Sealing
 Floor Insulation/Crawlspace
Improvement
 Solar PV Installation
 Battery Storage Installation
 Greywater System
Staff will assemble a Technical Advisory Committee to establish guidelines for each measure, formalize the credits and scoring criteria, and vet new measures to include.

See Attachment 2 for the list of measures and example credits.

The cost of compliance will vary, as a building owner can choose which measures to complete based on their home’s conditions and priorities. Buyers may also recoup costs through their monthly utility bills from upgrades measures that increase energy efficiency. Many of the measures align with current rebates or tax credits provided by Federal, State, and local programs, such as TECH Clean California and the Inflation Reduction Act. For example, switching out a gas water heater for an electric heat pump is an easy and straightforward path to compliance. Without rebates, the average purchase and installation cost of a heat pump water heater in Alameda County is approximately $6,700-$7,9003. Currently, a heat pump water heater installation is eligible for a $1,100 or $1,800 rebate (based on tank size) through TECH Clean CA and a $2,000 Federal tax credit, reducing the average cost of a heat pump water heater to under $5,000. An additional $2,000 incentive is available for electrical upgrades through 3 Based on project installation data available for Alameda County from BayREN Home+ participation data (January 2020 to March 2024) and TECH Clean California (July 2021 to November 2024), https://techcleanca.com/public-data/) accessed 12/31/2024.

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TECH Clean CA. These rebates are subject to change based on available funding. See Attachment 2 for additional compliance cost examples.

In the case where the building is not all-electric, does not have a heat pump, and has not met the requisite number of credits in the last five years, the buyer would have up to three years from the date of sale to make upgrades that comply with the flexible resilience standard.

If upgrades are needed, a monetary deposit would be held by the City through escrow, serving as an important compliance mechanism to ensure that upgrades are completed.

Funding for the deposit can be negotiated between a buyer and a seller. A similar escrow deposit process is currently used to enforce Berkeley Municipal Code Chapter

17.24, Abatement of Nonconforming/Substandard Sewer Laterals on Private Property.

The deposit would be set at $7,000, roughly equivalent to the minimum cost of compliance. The escrow deposit is less than 0.5% of the average home sale price in Berkeley, $1.5 million.

The deposit would be refunded in full once the buyer meets the flexible resilience standard. If the buyer does not complete the required upgrades before the expiration of the three-year deadline, the deposited funds would be forfeited and transferred to the City. In response to the LUHED’s recommendation to incorporate a “safety valve” to ensure the buyer has sufficient time to complete upgrades, additional extensions may be granted beyond the three-year deadline for delays beyond the buyer’s control, such as delays due to utility capacity or equipment supply chains, delays required to minimize disruption to tenants, or financial hardship. The flexible resilience standard may be enforced by fines and penalties, as well as forfeiture of the escrow deposit. The forfeiture of the deposit will serve as a last resort to encourage compliance. Staff will proactively work with homeowners to utilize the deposit to improve the resilience of their newly purchased home.

An escrow deposit helps to ensure upgrades are completed after the sale. It serves as a monetary incentive for buyers to complete the required upgrades in a timely manner to receive their deposit back. If upgrades are not completed by the end of the extension period, the forfeited deposit would be held in a separate fund and used to reduce emissions in low-income homes through such programs as the City’s Climate Equity Fund or Just Transition Residential Electrification Program, further helping to guarantee emissions savings from BESO.

All-Electric Building and Heat Pump System Exemptions:

To increase the resilience of Berkeley homes and to reduce their GHG and air pollution emissions as soon as possible, the proposed amendments include a heat pump exemption pathway to encourage early compliance. Buildings in which all units are served by at least one electric heat pump system are deemed fully compliant and qualify for an exemption from any additional upgrades required by the flexible resilience

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standard. A heat pump system would qualify a building for an exemption regardless of when the system was installed.

Gas-based water heating and gas-based space heating are the two largest sources of GHG emissions in Berkeley homes, and electrifying either one of these systems will yield significant emissions reductions. By providing a heat pump system exemption, building owners are incentivized to use currently available rebates to achieve BESO compliance and reduce their home’s emissions well before they intend to sell. Based on data collected through BESO’s Home Energy Score Assessments, an estimated 5-7% of Berkeley homes have at least one heat pump system and would already qualify for this exemption.

Additionally, because they have already substantially eliminated emissions, all-electric buildings that have electrified all building systems and appliances and capped all gas lines are exempt from the BESO assessment requirement and the flexible resilience standard.

Covered Buildings and Phase-In:

The proposed time of sale requirements would cover one-to-four-unit residential buildings. Accessory dwelling units (ADUs) and condominiums are exempt from the proposed time of sale requirements following the recommendation of the LUHED Policy Committee. Each year around 2-3% of Berkeley’s one-to-four-unit residential building stock is sold. The following approximate number of buildings would need to complete upgrades each year, assuming compliance hasn’t already been met:

The proposed time of sale requirements would be implemented in two phases:
 Time of Sale Phase I - Single-family homes and Duplexes: These buildings cover ~70% of Berkeley’s annual real estate sales. Requirements for these buildings would take effect January 1, 2026.
 Time of Sale Phase II - Triplexes and Fourplexes: These buildings are often rental properties, and many have a complex mix of shared and in-unit systems.

Requirements for these buildings would take effect on January 1, 2028. The additional time will help ensure that staff have the capacity to adequately implement the program at a larger scale, and will also allow policymakers time to 4 The remaining 28% of sales include vacant lots, commercial buildings, industrial buildings, 5+ unit multifamily buildings, and condominiums.

Building Type Avg. # of Buildings
Sold per Year
% of Annual
Property Sales4
Single Family 600 61%
Duplex 60 6%
3-4 Units 50 5%

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consider whether to establish additional renter protections to mitigate any unintended consequences that may result from required construction projects.

BESO’s time of sale requirements will continue to exclude condominiums, refinances, transfers due to inheritance, and partial transfers, such as a change in title due to marriage or divorce.

Energy Assessment Requirement:

The current BESO energy assessment requirement will be maintained, requiring sellers of one to four-unit residential buildings to complete a comprehensive energy and electrification assessment prior to listing their building for sale. The assessment will confirm whether a building qualifies for an exemption by having at least one heat pump system or if the buyer needs to complete upgrades to meet the flexible resilience standard. If upgrades are required, the assessment will recommend which upgrades to prioritize based on a building’s conditions, list the current incentives for each upgrade, and provide clear instructions on how to achieve the required credits. The current ability to defer the assessment responsibility to the buyer would be eliminated to ensure the BESO compliance status of a property is communicated to all potential buyers when the property is listed for sale.

Additional Support and Exemptions:

The BESO team will create robust compliance guides and resources to help buyers and sellers understand their new responsibilities during the home sale process. Staff developed a draft compliance guide for buyers and sellers, see Attachment 3.

Guidance will be added to the BESO website and the BESO helpdesk will continue to provide prompt and comprehensive customer service. Additionally, BESO’s automated email system will notify buyers of their resilience standard requirement at frequent intervals to make sure that new homeowners utilize their escrow deposits and upgrade their homes. Staff will also continue to proactively work with the real estate community, including webinars and in-office presentations to educate the real estate professionals on requirements, timelines, and to ensure a smooth sales process.

Many of BESO’s current deferrals and exemptions would no longer be relevant to small residential buildings, such as a major renovation deferral, but new exemptions and support are proposed to help building owners comply with the upgrade requirements.

Some exemptions and support opportunities for building owners include the following:
 First-time Homebuyers – First-time homebuyers participating in an approved income-qualified first-time home-buying program or down payment assistance program would be exempt from the flexible resilience standard, as the additional costs of upgrade requirements could prevent these income-qualified buyers from purchasing in Berkeley. These owners will still receive the assessment and will be encouraged to apply for other income-qualified incentive programs to help improve the resilience of their new home.

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 Early Refund Support – Building owners may apply for an early refund of their deposited funds if they supply sufficient evidence, such as issued building permits and a contract for qualifying work, to show the upgrades will be completed.
 High Home Energy Score Credit – Buildings that demonstrate a high level of energy efficiency by receiving a high Home Energy Score would receive bonus credits, so fewer upgrades would be needed to meet the standard. High-scoring buildings are often smaller buildings with lower energy use, and those that have already completed several energy efficiency upgrades in the past.  Hardship Deferral – A building owner may be eligible to defer the required upgrades past two years if experiencing financial hardship. Financial hardship may be demonstrated by participating in an income-qualified energy assistance program, participating in a property tax postponement program, or providing other proof establishing a financial incapacity to complete the required upgrades within three years of the sale.

BACKGROUND
The development of time of sale energy upgrade requirements was recommended in the BESO evaluation completed in 2015, directed by Council in the 2020 BESO Amendments, and was one of the four recommended strategies of Berkeley’s Existing Building Electrification Strategy (BEBES) adopted by Council in 2021.

On December 2, 2024, staff met with Council’s Land Use, Housing, and Economic Development Policy Committee which voted to forward the proposed amendments to City Council with a Qualified Positive Recommendation that City Council also:

1. Remove condominiums and ADUs from the Building Emissions Saving Ordinance.

2. Provide the “Building Owner” 5% annual interest on the deposit funds held by the City prior to awarding a BESO Certificate of Compliance.

3. Include language indicating protections or a “safety valve” to avoid forfeiture of deposit funds with the City.

4. Include that after a two-year period, the City will reach out to the “Building Owner” and offer a one-year extension to boost compliance.

These recommendations have been incorporated into the proposed amendments to BESO except for providing annual interest on the escrow deposit. The Policy Committee cited as precedent for this policy the existing provision in BMC Chapter 13.76 that requires landlords to pay annual interest on a tenant’s security deposit. The annual interest rate for that payment is equal to the average rates of interest paid on six-month certificates of deposit by banks doing business in the City of Berkeley, which have

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typically ranged between 0.1-0.2% over the last 13 years.5 No City program, including the Private Sewer Lateral program, requires the City to pay interest on funds held by the City. Staff do not recommend establishing annual interest payments on the escrow deposit, primarily due to the potential budget implications and additional administrative burden associated with establishing such a payment program. Providing the building owner with 5% interest is estimated to cost the City roughly $800,0006 a year, not including administrative costs.

Path to Requirements
Prior to the passage of BESO in 2015, the City maintained time of sale requirements for residential buildings since 1987 through the Residential Energy Conservation Ordinance (RECO).

RECO played an important role in advancing building energy and water efficiency and reducing Berkeley’s GHG emissions. The ordinance prescribed a list of basic energy- and water-saving measures that were required to be installed in residential buildings at the point of sale or during significant remodels.

In 2015, RECO was replaced by BESO to create a more individually tailored approach to energy upgrades and achieve deeper energy savings and emissions reductions from existing buildings. RECO’s prescriptive measures were out of date with building science, lacked flexibility, lagged behind the current Title 24 California Energy Code, and did not align with rate-payer funded incentive programs. BESO removed the mandatory prescriptive requirements and instead focused on an assessment-based approach. BESO currently requires building owners to complete a comprehensive energy and electrification assessment which provides information on how to best upgrade their building to decrease energy, emissions, and operating costs. By providing valuable information on energy saving opportunities as well as access to incentive and financing programs, the goal of BESO was to on-ramp building owners to local energy efficiency and electrification rebate programs, such as BayREN Home+. BESO has relied on building owners to voluntarily complete energy upgrades to decrease their building’s emissions.

In 2019, an evaluation of BESO was conducted by Energy Solutions to evaluate the outcomes of the program.7 The evaluation assessed whether BESO was meeting its goals of being easy, affordable, and valuable and identified ways to better align BESO 5 https://rentboard.berkeleyca.gov/rights-responsibilities/security-deposits/security-deposit-interest- calculator
6 Estimate is based on a 5% interest rate on a $7,000 deposit for 710 buildings sold annually. A 5% interest rate would yield approximately $1,130 over the three-year deposit holding term 7 Staff Report regarding the Evaluation and Recommended Updates to the Building Energy Savings Ordinance (Special City Council meeting of July 21, 2020):
https://berkeleyca.gov/sites/default/files/documents/2020-07- 21%20Special%20Item%2002%20Evaluation%20and%20Recommended%20Updates.pdf

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with Berkeley’s policy goals of electrification and community resilience. The evaluation concluded that mandatory energy upgrades are needed to achieve Berkeley’s climate action goals and transition our buildings off fossil fuels.

Based on the BESO evaluation, Berkeley City Council amended BESO in 2020, further aligning BESO with the City’s emissions reduction goals, streamlining requirements for small and medium-sized buildings, and directing staff to develop time of sale requirements for Council’s consideration.

In November 2021, Berkeley City Council adopted the Berkeley Existing Building Electrification Strategy (BEBES)8, which provides a framework for the transition to all- electric buildings in a way that includes and benefits all residents, especially members of historically marginalized communities. One of the four primary electrification strategies identified in BEBES was to develop and implement time of sale energy upgrade requirements through BESO.

The proposed BESO requirements would also help prepare Berkeley building owners for the recent Bay Area Quality Management District (BAAQMD) ruling that will prohibit the sale and installation of NOx emitting water heaters and furnaces, starting in 2027. In spring 2023, BAAQMD amended two Air District rules to support improvements to regional air quality and public health, Regulation 9 – Rule 4 (Rule 9-4) and 6 (Rule 9-6).

Beginning in 2027, Rule 9-6 will only allow the sale and installation of zero-NOx residential water heaters (75,000 BTU/hr or less) throughout the Bay Area. In 2029, Rule 9-4 will require zero-NOx residential and commercial furnaces. Because no gas systems can currently meet a zero-NOx standard, building owners will be required to install electric heat pumps. While this is a step forward for building electrification, some homes may need additional electrical upgrades to accommodate these all-electric systems. The proposed update would help new homeowners prepare their homes for their future heat pump installations. When their gas systems fail, a replacement with an electric heat pump will be a simple and straightforward replacement. The proposed BESO requirements and BAAQMD’s new ruling complement each other by having different trigger points (time of sale for BESO and time of replacement for BAAQMD Rules 9-4 and 9-6), but are both satisfied by installing heat pumps instead of new gas systems.

Developing the Proposal
Based on extensive community outreach, staff developed six objectives to guide the development of this proposal:
 Accelerate building electrification and resilience upgrades – Create upgrade requirements to reduce harmful emissions and increase resilience. 8 https://berkeleyca.gov/your-government/our-work/adopted-plans/berkeley-existing-buildings- electrification-strategy

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 Promote early compliance – Encourage building owners to complete the BESO upgrades as soon as possible, prior to selling their building.  Align with available resources – Include requirements that are eligible for incentive programs or other resources to offset costs.
 Ensure smooth sales process – Align requirements and timelines with the selling/buying process.
 Provide flexible compliance paths – Allow owners to prioritize upgrades that improve the health, safety, and comfort of their building and maximize ease of compliance.
 Ensure renters are protected – Prevent additional burdens for renters while improving rental units.

These objectives provided the framework when working with partners and groups on the potential upgrade requirements.

Technical Advisory Committee:

Staff assembled a Technical Advisory Committee (TAC) in spring 2023 to provide expert input on energy upgrade requirements for small residential buildings to accelerate decarbonization in existing buildings. The TAC included contractors, architects, BESO assessors, and building decarbonization experts from local, state, and federal organizations, such as PG&E, Ava Community Energy, California Energy Commission, Berkeley Lab, BayREN, and the Building Decarbonization Coalition. Staff facilitated a series of meetings to discuss various policy components and developed a list of energy upgrade measures. Key takeaways from the TAC included:
 81% of the TAC supported establishing a heat pump system as baseline compliance, with the remaining 19% noting this was either too low or too high of a requirement.
 85% of the TAC supported allowing building owners to choose which measures to complete, using a credit-based compliance system of potential energy upgrades, to maximize flexibility.
 To ensure that building owners can access rebates and incentives for energy upgrades, an ordinance shouldn’t require specific measures or technologies.

Outreach and Engagement:

In addition to the Technical Advisory Committee, staff engaged with a variety of partners and groups on the proposed requirements, including:
 Bridge Association of Realtors
 Real Estate Professionals (including realtors and title company officers)  Berkeley Rent Board’s Ad Hoc Sustainability Committee  Berkeley Property Owners Association

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 Berkeley Neighborhood Council
 Climate Advocacy Groups (including the Berkeley Climate Action Committee’s Electrification Working Group, Sierra Club, Citizens Climate Lobby, and the League of Women Voters)
Staff worked with the Environment and Climate Commission at various stages throughout the policy’s development. At the Commission’s meeting on October 18, 2023, the Commission unanimously voted to approve the concept of a resilience standard for small residential buildings verified at time of sale, as proposed in this action. The Commission suggested that staff consider future requirements for additional upgrades and recommended that Council support staff in collaborating with the Rent Board and local and regional stakeholders. Vote: 8-0-0-1; Ayes: Tregub, Ranney, McGuire, Tahara, Allen, Guliasi, Lunaparra, Gould. Noes: None. Abstain: None. Absent:

Hedlund.

Staff also presented the preliminary proposal to Council’s Facilities, Infrastructure, Transportation, Environment & Sustainability Policy Committee for discussion on November 1, 2023. The Committee provided feedback on the draft proposal, and no further action was requested at that time.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The adoption of BESO was a key implementation action of the Climate Action Plan (CAP). Existing buildings are the second largest source of GHG emissions and account for 43% of GHGs in Berkeley’s most recent emissions inventory. Adopting the proposed BESO amendments would further Berkeley’s environmental sustainability and climate goals, including becoming a Fossil Fuel Free City, decreasing emissions by 60.5% from 2018 levels by 2030 under the Race to Zero commitment, being responsive to the Declaration of a Climate Emergency and Just Transition framework, and spurring jobs in building electrification.

RATIONALE FOR RECOMMENDATION
In order for Berkeley to achieve its climate action, GHG reduction, resilience, and public health goals, all buildings will need to transition off fossil fuels to clean electricity.

Requiring buildings to complete upgrades at time of sale is one of the four primary strategies adopted by City Council through Berkeley’s Existing Building Electrification Strategy. Berkeley will not be able to achieve its GHG emissions reduction goals without adopting time of sale upgrade requirements for small residential buildings, which constitute 84% of Berkeley’s building stock. BESO is one of the best tools for addressing emissions from existing buildings, and the proposed amendments would further the City’s ability to reach its goals. The upgrade requirements proposed would also help building owners comply with the upcoming BAAQMD regulations by switching to heat pumps early before their gas system burns out, or by upgrading their home to ensure a seamless transition.

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ALTERNATIVE ACTIONS CONSIDERED
Staff explored a variety of energy upgrade requirement options. Extensive work was done with the Technical Advisory Committee (TAC) to determine what upgrades were feasible for small residential buildings to complete at time of sale. The TAC recommended a flexible compliance pathway since each building needs a custom approach to electrification and there are limitations to requiring building owners install specific technologies or equipment.

City Council could require the City to pay interest on the escrow deposit funds held. The fiscal implications to the City for providing interest have not been determined. No City program, including the Private Sewer Lateral program, requires the City to pay interest on funds held by the City.

City Council could choose to take no action on this proposal and continue with BESO’s voluntary uptake of energy upgrades. In this case, the City would fall further behind in meeting its climate action and resilience goals including commitments to become a Fossil Fuel-Free City, meet Race to Zero by reducing GHG emissions 60.5% from 2018 by 2030, and become carbon neutral by 2045.

CONTACT PERSON
Sarah Moore, Manager, Office of Energy & Sustainable Development, 510-981-7494 Ammon Reagan, Community Services Specialist II, Office of Energy & Sustainable Development, 510-981-7416
Attachments:
1: Ordinance
2: Example Credits and Compliance Costs
3: Draft Compliance Guide for Buyers and Sellers
4: Materials sent to Land Use, Housing, and Economic Development Policy Committee on 12/4/2024

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ORDINANCE NO. -N.S.

CHAPTER 19.81

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

Section 1. That Berkeley Municipal Code 19.81.010 is amended to read as follows:

19.81.010 - Purpose.

The purpose of this chapter is to reduce energy use, water consumption, and greenhouse gas emissions in existing buildings, to increase the resilience of these buildings, and to promote public health. These efficiency and emission reduction improvements will increase comfort, safety and health for building occupants lower energy and water costs, transition buildings away from the use of fossil fuels, and may lower energy and water costsincrease comfort, safety and health for building occupants.

The provisions of the ordinance will inform decision makers about energy, and emissions, and resilience performance and improvement opportunities.

Section 2. That Berkeley Municipal Code 19.81.030 is amended to read as follows:

19.81.030 - Definitions.

A. "Administrator" means the Director of Planning and Development or their designee.

B. "Building Owner" means the owner of record of a building. In the case of a building held in cooperative or condominium form of ownership, the term "Building Owner" shall also refer to the board of managers, board of directors, homeowners association, or other representative body of the jointly-owned building with authority to make decisions about building assessments and alterations.

C. "Building Energy Score" means a measurement of how efficiently a building uses energy and/or water based on modeled simulations or actual energy use of the building over time compared to similar buildings, which can be in the form of a performance score, asset score or other comparable metric that meets standards and formats established by the Administrator.

D. “Credits” means a numerical value based on the improved resilience, emissions savings, cost, or other measured benefit associated with a Resilience Upgrade.

E. “Dwelling Unit” means a single unit providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking and sanitation.

DF. "Electrification" means the transition of building systems and appliances away from natural gas to electricity as the source of energy.

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EG. "Energy Report" means a report submitted by a Registered Service Provider that identifies existing conditions, opportunities for water and energy efficiency in a building, opportunities to transition off fossil fuels, greenhouse gas emissions reductions, and available incentives and financing, as well as any applicable Building Energy Score, in accordance with the standards and formats established by the Administrator.

FH. "ENERGY STAR Performance Report" means an ENERGY STAR Portfolio Manager Benchmark report generated by the on-line tool developed by the U.S.

Environmental Protection Agency that determines energy use intensity and an Energy Star Performance Score for a building based on utility usage data.

GI. "Energy Resilience Upgrade" means the installation or completion of recommended measure(s) that improve the building’s energy efficiency, increases the building’s resilience, supports the transition off fossil fuels, and/or decreases the building’s greenhouse gas emissions.

HJ. "Extensive Renovation" means any project that replaces all building space heating, cooling, and ventilation equipment and replaces at least half of the building envelope, in accordance to standards established by the Administrator.

IK. "Green Building Rating" means an approved rating by a green building verification system consistent with standards identified by the Energy Efficiency Standardization Coordination Collaborative (EESCC) of the American National Standards Institute (ANSI), including, but not limited to the following: Build It Green (BIG) GreenPoint Rated Existing Building; US Green Building Council Leadership in Energy and Environmental Design Existing Building Operation and Maintenance (USGBC LEED-EBOM); Passive House Institute (PHI) Certified Passive House and EnerPHit; Passive House Institute US (PHIUS) PHIUS+ Certified Project; and the International Living Future Institute Zero Net Energy Building and Living Building Challenge Certification; or any other rating demonstrating approved levels of energy efficiency, as determined by the Administrator.

JL. "Gross Floor Area" means the total size, as measured between the principal exterior surfaces of the enclosed fixed walls of the building(s). This includes all areas inside the building(s) such as: occupied tenant areas, common areas, meeting areas, break rooms, restrooms, elevator shafts, mechanical equipment areas, and storage rooms. Gross Floor Area should not include interstitial plenum space between floors, which may house pipes and ventilation.

KM. "Large Building" means any building with 25,000 square feet or more of Gross Floor Area.

LN. "Medium Building" means any building with between 15,000 and 24,999 square feet of Gross Floor Area, excluding Single Family Buildings1 to 4 Unit Residential Buildings.

MO. "Real Estate Listing" means any listing of a building for sale in the City of Berkeley. "Real Estate Listings" include listing a building for sale by a property owner or by a licensed agent. "Real Estate Listings" include any printed advertisement, internet

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posting, or publicly displayed sign, including but not limited to Regional Multiple Listing Service, Redfin, Zillow, Trulia and other third party listing services.include any listing for sale by any advertisement, internet posting, or publicly displayed sign.

NP. "Registered Service Provider" means an entity that has been registered by the Administrator to provide an Energy Report and/or Building Energy Score as required by this ordinance.

O. "Sale" means the conveyance of title to real property as a result of the execution of a real property sales contract as defined in Section 2985 of the California Civil Code as well as any change of ownership described in subdivision (c) of Section 61 and subdivision (c) of Section 64 of the California Revenue and Taxation Code. "Sale" does not include transfer of title pursuant to inheritance, involuntary transfer of title resulting from default on an obligation secured by real property, change of title pursuant to marriage or divorce, condemnation, or any other involuntary change of title affected by operation of law.

PQ. "Single Family Building1 to 4 Unit Residential Building" means any building comprised of solely 1 to 4 residential Dwelling Uunits, regardless of size. For the purpose of determining which buildings constitute a 1 to 4 Unit Residential Building subject to this Chapter, an Accessory Dwelling Unit (ADU) as defined in Chapter 23.502 of this Code is not a Dwelling Unit.

QR. "Small Building" means any building with less than 15,000 square feet of Gross Floor Area, excluding Single Family1 to 4 Unit Residential Buildings.

S. "Transfer" means the conveyance of title to real property, excluding condominiums as defined in California Civil Code Section 1351(f), as a result of the execution of a real property sales contract as defined in Section 2985 of the California Civil Code as well as any change of ownership described in subdivision (c) of Section 61 and subdivision (c) of Section 64 of the California Revenue and Taxation Code. "Transfer" does not include transfer of title pursuant to inheritance, involuntary transfer of title resulting from default on an obligation secured by real property, change of title pursuant to marriage or divorce, condemnation, or any other involuntary change of title affected by operation of law.

Section 3. That Berkeley Municipal Code 19.81.040 is amended to read as follows:

19.81.040 – Large Buildings.

A. Annual ENERGY STAR Performance Report. Owners of Large Buildings shall submit to the Administrator an ENERGY STAR Performance Report on an annual basis in accordance with the phase-in schedule below and no later than July 1 each year thereafter.

B. Energy Report. Owners of Large Buildings shall have a Registered Service Provider prepare and submit to the Administrator an Energy Report as specified in the phase-in schedule below and by July 1 every five years thereafter.

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C. Disclosure. The most recent ENERGY STAR Performance Report and a summary version of the most recent Energy Report including a Building Energy Score, when available, shall be made publicly available by the Administrator and shall be provided by the Building Owner to existing lessees and to prospective lessees and buyers prior to execution of a lease or contract for sale.

D. Phase-in and Reporting Cycle Schedule. Owners of Large Buildings shall be in compliance with the requirements of this section by the dates specified below.

1. July 1, 2018 for buildings with 50,000 or more square feet of Gross Floor Area, with an annual ENERGY STAR Performance Reporting cycle and a 5 year Energy Report reporting cycle thereafter.

2. July 1, 2019 for buildings with 25,000 or more square feet of Gross Floor Area with an annual ENERGY STAR Performance Reporting cycle and a 5 year Energy Report reporting cycle thereafter.

E. Evaluate and Recommend Resilience Energy Upgrades Requirements. The Administrator of this Chapter shall develop recommendations for Energy Resilience Upgrade requirements for Large Buildings based on building performance that are consistent with requirements of State and Federal law. The Administrator shall identify incentives, rebates or other compliance resources to off-set the costs of the Energy Resilience Upgrade requirements. The Administrator shall then report the proposed Energy Resilience Upgrade requirements for Large Buildings to the City Council for consideration.

Section 4. That Berkeley Municipal Code 19.81.050 is amended to read as follows:

19.81.050 – Medium and Small Buildings.

A. Annual ENERGY STAR Performance Report. Owners of Medium Buildings shall submit to the Administrator an ENERGY STAR Performance Report on an annual basis as of July, 1, 2021, and no later than July 1 each year thereafter.

B. Energy Report. Owners of Medium and Small Buildings shall have a Registered Service Provider prepare and submit to the Administrator an Energy Report:

1. Prior to the Real Estate Listing of the building for sSale; or

2. Within 6 months of a lender having acquired title due to foreclosure or deed in lieu of foreclosure.

The requirement at time of Real Estate Listing may be transferred to the buyer and deferred for 6 months under the provisions of Section 19.81.090.B of this Chapter.

C. Disclosure. All compliance documentation, including the most recent ENERGY STAR Performance Report, if applicable, a deferral or a summary version of the most

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recent Energy Report including a Building Energy Score, when available, shall be made publicly available by the Administrator and shall be provided by the Building Owner to existing lessees and prospective lessees, to all licensed real estate agents working on the seller’s behalf, and to prospective buyers who visit the building while it is listed publicly for sale.

D. Evaluate and Recommend Energy Resilience Upgrades Requirements. The Administrator of this Chapter shall develop recommendations for Energy Resilience Upgrade requirements for Small and Medium Buildings based on building performance that are consistent with State and Federal law. The Administrator shall identify incentives, rebates or other compliance resources to off-set the costs of the Energy Resilience Upgrade requirements. The Administrator shall then report the proposed Energy Resilience Upgrade requirements for Small and Medium Buildings to the City Council for consideration.

Section 5. That Berkeley Municipal Code 19.81.060 is amended to read as follows:

19.81.060 – Single Family1 to 4 Unit Residential Buildings.

A. Resilience Standard. When a 1 to 4 Unit Residential Building is Transferred, the property being Transferred shall achieve a required number of Credits, as determined by the Administrator, by undergoing Resilience Upgrades.

AB. Energy Report. Owners of Single Family1 to 4 Unit Residential Buildings shall have a Registered Service Provider prepare and submit to the Administrator an Energy Report:

1. Prior to the Real Estate Listing of the building for sSale; or

2. Within 6 months of a lender having acquired title due to foreclosure or deed in lieu of foreclosure.

The requirement at time of Real Estate Listing may be transferred to the buyer and deferred for 6 months under the provisions of Section 19.81.090.B of this Chapter.In the event the Building Owner fails to complete the Energy Report an administrative fee shall be charged, which is set forth in Section 19.81.120 of this code.

C. BESO Certificate of Compliance. Upon submittal of documentation verifying that a Building Owner has achieved the required number of Resilience Upgrade credits, as determined by the Administrator, the Administrator shall issue a BESO Certificate of Compliance. A BESO Certificate of Compliance shall expire 5 years after issuance.

D. Verification at Time of Transfer. Prior to Transfer of title:

1. A BESO Certificate of Compliance for the subject property must be obtained, or

2. The Administrator may grant a two-year extension, with an opportunity for an additional one-year extension, to meet the requirements of BMC 19.81.060(C) if

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the seller or buyer deposit funds with the City in an amount the Administrator determines to be sufficient to render compliance. The seller or buyer must execute and deliver to the Administrator or their designee a binding agreement in a form acceptable to the City providing that any funds deposited with the City shall be forfeited and transferred to the City if a BESO Certificate of Compliance for the subject property has not been obtained upon the expiration of the extension period. Forfeited deposit funds shall be used for local low-income building upgrade programs, such as the Climate Equity Fund or Just Transition Residential Electrification Programs.
a. If a BESO Certificate of Compliance for the subject property is obtained prior to the expiration of the extension period, then the buyer shall recoup their deposit in full.
b. If a BESO Certificate of Compliance for the subject property was not obtained prior to the expiration of the extension period, then the funds will be forfeited to the City unless the buyer (i) can show that one or more of the conditions in Section 19.81.090 has been met, or (ii) petitions for an additional extension of the compliance period pursuant to subparagraph c. c. The buyer shall be granted an additional extension of the compliance period if they can show that special circumstances, such as delays due to utility capacity or equipment supply chains or delays required to minimize disruptions to tenants, warrant an additional extension of a reasonable amount of time.

E. Appeals.

1. If deposit funds are forfeited to the City pursuant to BMC 19.81.050(D)(2)(b), notice shall be mailed no more than 14 calendar days after the expiration of the extension period to the buyer of (i) the forfeiture and (ii) the opportunity to appeal.

The cost of notice shall be deducted from the deposit made pursuant to BMC

19.81.050(D)(2).

2. Within 14 calendar days of mailing of forfeiture notice, the buyer may appeal the forfeiture and transfer.
a. An appeal shall be submitted to the City Manager or the City Manager’s designee in writing and must state all of the reasons for the appeal. b. Appeal fees shall be paid by the person filing the appeal (the appellant).

3. Where a timely appeal has been filed, the City Manager or the City Manager’s designee shall, within 14 calendar days, set the appeal for a hearing before a Hearing Officer to be designated by the City Manager.

4. At the appeal hearing, the Hearing Officer may: (i) continue the public hearing; or (ii) reverse, affirm, or modify the decision of the prior review authority.

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5. The Hearing Officer shall serve a written decision upon the appellant within 14 calendar days of the hearing, and shall send a copy to the Administrator and the City Manager. The Hearing Officer’s decision shall be final when mailed.

BF. Disclosure. All compliance documentation, including a deferral or a summary version of the most recent Energy Report including a Building Energy Score, when available, and the Resilience Standard compliance status shall be made publicly available by the Administrator and shall be provided by the Building Owner to existing lessees and prospective lessees, to all licensed real estate agents working on the seller’s behalf, and to prospective buyers who visit the building while it is listed for sale.

The Building Energy Score shall be included in all Real Estate Listings and a URL link to the Energy Report included if links are supported by the listing service.

G. Phase-in. Owners of 1 to 4 Unit Residential Buildings shall comply with the requirements of this section starting on the dates specified below. These buildings shall be treated as Small Buildings until their phase-in date.

1. January 1, 2026 for 1 to 4 Unit Residential Buildings containing one or two residential units.

2. January 1, 2028 for 1 to 4 Unit Buildings containing three or four residential units.

H. Responsibilities. Except as otherwise provided or as allowed by the Administrator, the Building Owner is responsible for compliance with this Section. The seller of any real property shall be responsible for disclosing to prospective buyers the requirements of this Section and the compliance status of the real property in question. Upon transfer of ownership, the buyer will be responsible for the compliance with this Section, regardless of any disclosure or failure to disclose.

C. Reporting Schedule. The requirements of this Section of the ordinance shall become effective December 1, 2015.

D. Evaluate and Recommend Energy Upgrades Requirements. The Administrator of this Chapter shall develop recommendations for Energy Upgrade requirements for Single Family Buildings based on building performance that are consistent with requirements of State and Federal law. The Administrator shall identify incentives, rebates or other compliance resources to off-set the costs of the Energy Upgrade requirements. The Administrator shall then report the proposed Energy Upgrade requirements for Single Family Buildings to the City Council for consideration.

Section 6. That Berkeley Municipal Code 19.81.090 is amended to read as follows:

19.81.090 – Exceptions, Deferrals and Extensions.

A. High Performance Exemption. Exemptions from the Energy Report requirements for current reporting periods may be granted for to buildings that demonstrate effective and reasonably achievable level of efficiency, electrification of building systems and appliances, and/or emissions reduction, based on the specific building type, use,

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vintage, and condition, that support Berkeley’s commitment to become a Fossil Fuel Free City and achieve carbon neutrality by 2045.and the Berkeley Climate Action Plan (CAP) goal of 33% energy-related greenhouse gas reduction from 2000 levels by 2020 and 80% reduction by 2050. Qualified exemptions shall include, but are not limited to:

1. Any Large building Building that receives a Building Energy Score or Green Building Rating that demonstrates an effective and reasonable level of efficiency, as determined by the Administrator.

2. Any building, except for 1 to 4 Unit Residential Buildings, that completes a multi- measure energy improvement project with a verified minimum improvement, as determined by Administrator.

3. Any whole building that has been served by an income-qualified Weatherization Assistance program for low-income households.

4. Any new building or Extensive Renovation, except for 1 to 4 Unit Residential Buildings, with a construction completion date within ten years of the reporting deadline.

5. Any building that has electrified all building systems and appliances and capped all gas lines to the building.

B. Deferral at Time of Real Estate Listing. The requirements for compliance prior to the Real Estate Listing of a Small or Medium Bbuilding may be deferred from the seller to the buyer, and any subsequent buyers, for a period of 6 months after the original sale date. A request to defer responsibility to the buyer must be submitted to the administrator prior to the listing of the building. The deferral shall include information on the fuel source for each end use in the building and any current or future electrification requirements and incentives.

C. Distressed Sale Extension. A 6-month extension may be granted to a buyer of a building purchased from a lender following default or transfer by deed in lieu of foreclosure.

D. Hardship Deferral. The requirement for an ENERGY STAR Performance Report, and the requirement for an Energy Report, or the Resilience Standard may be deferred for up to one reporting cycle in cases of financial hardship where one of the following is provided by the Building Owner and approved by the Administrator:

1. Proof of participation in an income qualified energy assistance income qualified program, administered through the State of California or the local energy utility.

2. Proof of approved participation in Property Tax Postponement or Property Tax Assistance for Senior Citizens, Blind or Disabled, or equivalent program as determined by Administrator.

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3. Proof that the property qualifies for sale at public auction or acquisition by a public agency due to arrears for property taxes, within two years prior to the due date of the Energy Report.

4. Proof that a court appointed receiver is in control of the asset due to financial distress.

5. Proof that the senior mortgage is subject to a notice of default.

6. Proof that the responsible party is otherwise not able to meet the obligations of this Chapter.

Deferrals under this Section are granted to the Building Owner and are not transferable with a building sale, at which time compliance with this Chapter shall be required.

E. Data Unavailable. An exemption from ENERGY STAR Performance Report requirement for any current reporting period may be granted if:

1. The Building Owner demonstrates to the Administrator that they have been unable to obtain tenant authorization to obtain tenant utility data, despite a good faith effort to obtain such consent, or

2. The building occupant demonstrates to the Administrator that such disclosure may result in the release of proprietary information which can be characterized as a trade secret, or.

3. Any person subject to the requirements of this Chapter demonstrates to the Administrator that submission of an ENERGY STAR Performance Report would conflict with the requirements of State or Federal law.

F. Deferral for Planned Demolition or Extensive Renovation. The requirements of this Chapter may be deferred for 24 months if the owner or buyer has obtained a Building Permit, Demolition Permit, or Permit under the Zoning Ordinance that includes demolition or Extensive Renovation of the subject building.

Deferrals under this Section are granted to the Building Owner and are not transferable with a building sale, at which time compliance with this Chapter shall be required.

G. Exemption for Sale of a Condominium. The requirements to submit an Energy Report with an Energy Benchmark to the Administrator shall not apply to any sale of a residential or commercial condominium that is a unit within a building and not a detached structure.

H. Low Energy Use Deferral. Buildings with low energy use based on energy billing data comparing a building to similar efficient buildings or because of operations specific to their building use, such as institutions that operate less than three days a week, may be granted a Low Energy Use deferral for the current compliance cycle.

Deferrals under this Section are granted to the Building Owner and are not transferable with a building sale, at which time compliance with this Chapter shall be required.

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I. Exemption for Long-Term Tenancy under Rent Control. The requirements of this Chapter for any building which is subject to rent control in which all of the units, excluding any owner-occupied units, have leases that date prior to January 1, 1999 may be deferred until the next reporting period.

J. Unconditioned Floor Area Reclassification. The size classification of a building may be reduced by the Administrator to exclude physically separated floor area that is not served by heating, ventilation or cooling equipment.

K. Exemption based on building size. Buildings 600 square feet or a higher size threshold, as determined by the Administrator, are exempt from the requirements of this Chapter.

K. Recent Resilience Upgrades. Buildings that completed the requisite number of Resilience Upgrades, as determined by the Administrator, within the last 5 years may obtain a BESO Certificate of Compliance if the Building Owner submits sufficient proof to the Administrator.

L. Heat Pump System Exemption. 1 to 4 Unit Residential Buildings in which all units being transferred are completely served by at least one electric heat pump system or electric equivalent, as determined by the administrator, may obtain a BESO Certificate of Compliance. The Energy Report shall provide confirmation for this exemption.

M. Early Refund Exception. Owners of 1 to 4 Unit Residential Buildings may apply for early remittance of their escrow deposit prior to completion of the Resilience Upgrades upon demonstration that the owner has obtained building permits for the requisite Resilience Upgrades and supplied sufficient evidence that the Resilience Upgrades will be completed, as determined by the Administrator. If the application for an early refund is approved, the City will refund the funds deposited pursuant to BMC 19.81.060(D)(2) to the owner so that the owner may complete the Resilience Upgrades. Once the requisite Resilience Upgrades are complete, the Owner must obtain a BESO Certificate of Compliance. In the event the property owner fails to complete the requisite Resilience Upgrades within the compliance extension period, an administrative fee shall be charged, which fee is set forth in Section 19.81.120 of this code.

N. First-Time Homebuyer Exemption. Buyers of 1 to 4 Unit Residential Buildings participating in an approved local, State, or Federal income-qualified first-time home buyer program or down payment assistance program are exempt from the Resilience Standard requirements of this chapter.

Section 7. These amendments to Berkeley Municipal Code Chapter 19.81 shall become effective on January 1, 2026.

Section 8.

Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each

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branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.
1735042.1

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ATTACHMENT 2 - EXAMPLE CREDITS AND COMPLIANCE COSTS
1 The credit values are subject to change once vetted by the Technical Advisory Committee. 2 Emissions saving values were estimated through California statewide cost-effectiveness studies completed by California Codes and Standards Reach Codes program for Single Family Residential Retrofits: https://localenergycodes.com/content/resources. Cost data was pulled from a variety of sources including: TECH Clean CA, BayREN Home+, Statewide Cost-Effectiveness studies, and analysis from the Building Electrification Institute
Measure Credits1 Credit Criteria2
Heat Pump Water Heater 6 (Full) Emissions savings
Heat Pump HVAC 6 (Full) Emissions savings
Knob + Tube Replacement 6 (Full) Cost
Smart Panel 6 (Full) Cost
Solar PV + Storage 6 (Full) Cost
Panel Upgrade 4 Cost
Duct Sealing & Replacement 3 Emissions savings
Bi-Directional EV Charger 3 Cost
EV Charger 2 Cost
Induction Range 2 Emissions savings
Window Replacements 2 Emissions savings
Attic Insulation 2 Emissions savings
Wall Insulation 2 Emissions savings
Floor Insulation 1-2 Emissions savings
Greywater System 1-2 Cost
Air Sealing 1 Emissions savings
Prewiring & 240v Receptacles ½ per
receptacle Cost

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Example Compliance Cost 1: Heat Pump Water Heater
Measure Credits Average Cost Source
Heat Pump Hot Water Heater 6 $6,700-$7,900 BayREN Home+3 & TECH Clean CA4
Total $6,700-$7,900
*Includes the $2,000 Federal Tax
Credit and $1,100 or $1,800
through TECH Clean CA (based on
tank size).

Total with
Rebates* $2,900-$4,800
Example Compliance Cost 2: Electrification Ready
Measure Credits Average Cost Source
Panel upsizing and replacement 4 $4,300 BEI Analysis5
240v outlet installation (oven,
dryer, water heater, EV charger) 2 $1,800 Statewide Cost- Effectiveness study6
Total $6,100
Example Compliance Cost 3: Energy Efficiency Envelope Improvements Measure Credits Average Cost Source
Attic Insulation 2 $2,500 BayREN Home+
Air Sealing 1 $1,500 Statewide Cost-
Effectiveness study
Duct Sealing/Replacement 3 $4,700 BayREN Home+
Total $8,700
3 Data was provided by the BayREN Home+ for projects completed in Alameda County from January 2020 to July 2024
4 TECH Clean California Public Data for Alameda County from July 2021 to November 2024 (https://techcleanca.com/public-data/data-visualizations/, accessed 12/31/2024) 5 The Building Electrification Institute (BEI) completed a measure cost analysis using E3’s 2019 report “Residential Building Electrification in California” and updated in 2024 based on local research for Berkeley’s Existing Building Electrification Strategy
6 California statewide cost-effectiveness studies completed by California Codes and Standards Reach Codes program for Single Family Residential Retrofits: https://localenergycodes.com/content/resources; accessed 12/31/2024

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ATTACHMENT 3
Planning a Safe and Sustainable Future for Berkeley
1947 Center Street, 1st Floor, Berkeley, CA 94704 Tel: 510.981.7400 TDD: 510.981.6903 Fax: 510.981.7470 For more information visit: www.BerkeleyCA.gov/BESO or email: [email protected] Planning and Development Department
Office of Energy and Sustainable Development
Berkeley’s Building Emissions Saving Ordinance (BESO)
Flexible Resilience Standard Compliance Guide
I. What is BESO?
In alignment with the City of Berkeley’s climate action goals, the Building Emissions Saving Ordinance (BESO), BMC Chapter 19.81, aims to reduce energy use, water consumption, and greenhouse gas emissions in existing buildings, to increase the resilience of these buildings, and to promote public health. Additionally, BESO helps new Berkeley homeowners prepare for the Bay Area Quality Management District’s (BAAQMD) zero NOx emissions standard, which prohibits the sale and installation of NOx emitting water heaters and furnaces, starting in 2027.1 Under BESO, owners of 1-4 unit residential buildings are required to complete resilience upgrades from a menu of options when a property is sold. Building owners can choose which measures to complete to satisfy the requirements in order to accommodate the range of building conditions and owner priorities.

For homes that have not met compliance prior to sale, an escrow deposit ensures that funds to help cover the cost of the upgrades have been set aside for the buyer to complete the upgrades.

Compliance Process Overview
Compliance with BESO will typically follow these steps:
1) Prior to listing a property for sale, the seller completes an energy assessment by a registered energy assessor and provides a copy of the assessment to all potential buyers. The seller is not required to complete upgrades.
2) When a buyer and sale date are established, a cash deposit will be sent to the City through escrow.
3) Using the escrow deposit funds, the buyer completes the upgrades within two years of the sale, with the option of an additional one-year extension. The buyer can choose which upgrades to complete from a menu of resilience measures. The buyer submits evidence of the completed upgrades to receive a BESO Compliance Certificate and a refund of escrow funds.

Exemptions
The following are exempt from the BESO upgrade requirement:
1) Buildings undergoing refinances, partial transfers, or inheritance transfers 2) Condominiums and accessory dwelling units (ADUs)
3) All-electric buildings that have capped gas lines
4) Buildings that have a verified heat pump water heater or heat pump HVAC system 5) Buildings purchased with assistance from an income-qualified, first-time homebuyer down payment assistance program
1 https://www.baaqmd.gov/rules-and-compliance/rule-development/building-appliances

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Planning a Safe and Sustainable Future for Berkeley
1947 Center Street, 1st Floor, Berkeley, CA 94704 Tel: 510.981.7400 TDD: 510.981.6903 Fax: 510.981.7470 For more information visit: www.BerkeleyCA.gov/BESO or email: [email protected] II. Seller’s Responsibility
Prior to listing a building for sale, the seller must have a comprehensive Home Energy Score assessment completed by a registered BESO assessor. The list of registered BESO assessors can be found on the BESO website (BerkeleyCA.gov/BESO). The assessor will provide the seller a copy of the Home Energy Score report, which provides a 1 to 10 rating of the efficiency of the home and recommendations for emissions saving and resilience upgrades. The Home Energy Score report must be provided to all potential buyers and be included on the MLS listing for the property. Highly efficient buildings that receive a Home Energy Score of 9 or 10 will qualify for bonus compliance credits. The seller may reach out to the BESO Helpdesk ([email protected]) if they are experiencing financial hardship and are unable to complete the assessment.

The seller may obtain the BESO Compliance Certificate prior to sale if:
 the building has a heat pump water heater or heat pump HVAC system installed and verified through the assessment, or
 upgrades have been completed within five years of the sale that meet the requisite number of credits for compliance
If the seller obtains a Compliance Certificate prior to the sale, no escrow deposit nor additional upgrades will be required. A seller is not required to complete upgrades or obtain a BESO Compliance Certificate before selling their property.

III. Escrow Deposit
Similar to Berkeley’s Private Sewer Lateral Program, a cash deposit of $7,000 to help cover the cost of compliance will be held by the City through escrow and refunded in full once the upgrades are complete. During the closing process, the buyer and seller can negotiate what proportion of the deposit each party contributes. The buyer may receive an early refund of the escrow deposit by submitting sufficient evidence of planned work (e.g. signed contract with a contractor or permit applications) to the City. To receive a refund of any remaining escrow funds after the Compliance Certificate is obtained, a buyer will need to submit a copy of the Compliance Certificate with a Claim for Refund of Money Paid to the Finance Customer Service Center, 1947 Center Street. If the upgrades are not completed by the due date, funds are subject to forfeiture and transfer to the City.

IV. Buyer’s Responsibility
Within two years of purchase, the buyer of a 1-4 unit residential building must complete upgrades from a menu of resilience measures. Building owners can choose which upgrades to complete that best fit with their preferences, budget, and building’s conditions. Each upgrade measure has a corresponding credit value based on its emissions reductions and/or costs. BESO requires six credits for full compliance. See the following table of measures and their associated credits. Detailed information about the qualifications and verification of each measure can be found on the BESO website. Visit the Switch is On for more information about current incentives for various upgrade measures.2 2 https://www.switchison.org/ca
Measure Credits* Measure Credits*
Heat Pump Water Heater 6 (Full) Induction Range 2

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Planning a Safe and Sustainable Future for Berkeley
1947 Center Street, 1st Floor, Berkeley, CA 94704 Tel: 510.981.7400 TDD: 510.981.6903 Fax: 510.981.7470 For more information visit: www.BerkeleyCA.gov/BESO or email: [email protected] The new owner of the building must complete one or more measures to meet the required number of credits within two years of the sale, with the option to extend the due date by one additional year.

Additional extensions may be granted on a case by case basis through the BESO Helpdesk ([email protected]).

Once the measures are completed and the requisite number of credits have been achieved, the building owner must submit documentation of the completed work to the City. Upon verification of the completed measures, the City will issue a Compliance Certificate to the building owner. The Compliance Certificate remains valid for five years from the issue date, even if the building is resold during that timeframe.

V. Resources
1) BESO website: www.BerkeleyCA.gov/BESO
Visit the BESO website for general information about BESO and the list of Registered Energy Assessors.
2) BESO Helpdesk email: [email protected]
Email the BESO Helpdesk to ask any questions about BESO or to request an extension.

Heat Pump HVAC 6 (Full) Window Replacements 2
Knob + Tube Replacement 6 (Full) Attic Insulation 2
Smart Panel 6 (Full) Wall Insulation 2
Solar PV + Storage 6 (Full) Floor Insulation 1-2
Panel Upgrade 4 Greywater System 1-2
Duct Sealing & Replacement 3 Air Sealing 1
Bi-Directional EV Charger 3 Prewiring & 240v Receptacles ½ per receptacle EV Charger 2 *The credit values may be subject to change.

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Planning and Development Department
Office of Energy and Sustainable Development
Planning a Safe and Sustainable Future for Berkeley
1947 Center Street, 1st Floor, Berkeley, CA 94704 Tel: 510.981.7400 TDD: 510.981.6903 Fax: 510.981.7470 For more information visit: www.BerkeleyCA.gov/BESO or email: [email protected] Berkeley’s Building Emissions Saving Ordinance (BESO)
Proposed Amendments
In December 2020, Berkeley City Council directed staff to recommend upgrade requirements for Berkeley’s Building Emission Saving Ordinance (BESO) for Council’s consideration. The following year, City Council adopted Berkeley’s Existing Building Electrification Strategy (BEBES), which identified a time of sale upgrade policy as one of the four primary policy strategies to equitably decarbonize Berkeley’s existing buildings. The proposed BESO amendments build on BESO’s current requirements of energy disclosure at the time of sale and are coupled with upgrade requirements. Prior to BESO, from 1987-2015, Berkeley required prescriptive energy efficiency measures at time of sale through the Residential Energy Conservation Ordinance (RECO).

The proposed BESO amendments increase resilience and can improve indoor air quality, comfort, health, and safety. They can also help new Berkeley homeowners prepare for the Bay Area Quality Management District’s (BAAQMD) zero NOx emissions standard, which prohibits the sale and installation of NOx emitting gas- powered water heaters and furnaces, starting in 2027. Homeowners can install an electric heat pump early (which is a zero NOx appliance) or complete necessary electrical upgrades to ensure a seamless transition.

Flexible Resilience Standard
The proposed amendments to BESO would maintain the current assessment and disclosure requirements and establish a flexible resilience standard that requires small residential building owners to complete upgrades from a menu of options when a property is sold. Building owners can choose which upgrades to complete that best fit with their preferences and building’s conditions. Each upgrade measure will have a corresponding credit value based on its emissions reductions and/or costs. A building owner would need to complete one or more measures to meet the required number of credits within two years of the sale. The cost of compliance will vary, as a homeowner can choose which upgrades they want to complete. The proposed amendments would require 6 credits for full compliance. Here’s an initial list of measures and potential credits:

Measure Credits* Measure Credits*
Heat Pump Water Heater 6 (Full) Induction Range 2
Heat Pump HVAC 6 (Full) Window Replacements 2
Knob + Tube Replacement 6 (Full) Attic Insulation 2
Smart Panel 6 (Full) Wall Insulation 2
Solar PV + Storage 6 (Full) Floor Insulation 1-2
Panel Upgrade 4 Greywater System 1-2
Duct Sealing & Replacement 3 Air Sealing 1
Bi-Directional EV Charger 3 Prewiring & 240v Receptacles ½ per receptacle EV Charger 2 *The credit values may be subject to change.

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ATTACHMENT 4

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• First-time Homebuyers – First time homebuyers participating in an approved income-qualified first- time home buying program or down payment assistance program would be exempt from the flexible resilience standard.
• Early Refund Exception – Building owners may apply for an early refund of their deposited funds if they supply sufficient evidence, such as issued building permits and a contract for qualifying work, to show the upgrades will be completed.
• High Home Energy Score Credit – Buildings that have received a high Home Energy Score demonstrate a high level of energy efficiency and will receive bonus credits, reducing the number of upgrades needed to meet the standard.

Phase-In Timeline for Building Types:
• Phase I: Single Family Homes, ADUs, Duplexes, Condominiums within 1-4 Unit buildings (approximately 700 homes/units each year) - expected implementation 2026 • Phase II: Triplexes and Fourplexes (approximately 50 buildings each year) - expected implementation 2028
1 Based on data through TECH Clean California: https://techcleanca.com/ Installing a heat pump water heater is the simplest and cheapest way to comply. Without rebates, the average purchase and installation cost of a heat pump water heater in Alameda County is ~$6,8001. There are tax credits and rebates currently available to reduce this cost.

Escrow Deposit
Similar to Berkeley’s Private Sewer Lateral Program, a cash deposit to cover the cost of compliance will be held by the City through escrow and be refunded in full once the upgrades are complete. The deposit will be set at an amount equivalent to the minimum estimated cost of compliance.

Heat Pump Exemption Pathway
If a building has at least one electric heat pump system, then no additional upgrades are needed. The proposed amendments include a heat pump exemption pathway that encourages homeowners to install a heat pump in advance of a home sale in order to meet full compliance. Currently, 5-7% of Berkeley homes would already qualify for this exemption, and more will become exempt as they transition to electric heat pumps.

Additional Exemptions and Support

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Place image here below red line.

Building Emissions Saving
Ordinance (BESO)
Time of Sale Upgrade Requirements
October 7, 2024

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Background and Current
BESO Requirements
2

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Berkeley’s Existing Building Electrification Strategy
3

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Building Emissions Saving Ordinance (BESO)
Buildings less than
25,000 sqft
Buildings greate r than
25,000 sqft
Time of Sale Program Large Building Program
4

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• Requires an energy/electrification
assessment prior to listing a building for
sale.
• Home Energy Score for Single family homes
• Provides information to potential buyers
• Refers building owners into local incentive
programs to complete voluntary upgrades
Current Time of Sale Program
5

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Technical Advisory Committee
Members:
• Building Decarbonization Experts
• BESO Assessors
• Architects
• Electrification Contractors
• Utilities
• Regional and State entities
6

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• Real Estate Community
• Realtor Offices
• Real Estate Professionals Webinar
• Bridge Association of Realtors
• Berkeley Rent Board – Sustainability Committee
• Berkeley Neighborhoods Council
• City Green Building Coordination Team
• Berkeley Property Owners Association
• Community and Environmental Organizations
• Council Policy Committees
• Environment and Climate Commission
Outreach and Engagement
7

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Proposed Upgrade
Requirements
8

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Proposed Time of Sale BESO Requirements
• Seller completes the BESO
assessm
ent
• Buyer completes the upgrade(s)
within 2 years of the sale if
compliance has not been met
9

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Flexible Resilience Standard
• Upgrade requirements:
• List of possible upgrades
• Each upgrade has a corresponding credit value
• Buildings need to achieve minimum number
of credits through upgrades
• Credit value criteria:
• Emissions savings
• Cost
• Health, safety, resilience bonus
• Rationale:
• Addresses range of building conditions
• Owner can prioritize
10

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Potential Measures & Credits
Measure Credits* Criteria
Heat Pump Water Heater 6 Emissions
Heat Pump HVAC 6 Emissions
Knob + Tube Replacement 6 Cost
Smart Panel 6 Cost
Solar PV + Storage 6 Cost
Panel Upgrade 4 Cost
Duct Sealing & Replacement 3 Emissions
Bi-Directional EV Charger 3 Cost
EV Charger 2 Cost
Measure Credits* Cri teria
Induction Range 2 Emissions
Window Replacements 2 Emissions
Attic Insulation 2 Emissions
Wall Insulation 2 Emissions
Floor Insulation 1-2 Emissions
Greywater System 1-2 Cost
Air Sealing 1 Emissions
Prewiring & 240v
receptacles
½ per
receptacle Cost
*The credit values are subject to change once vetted by the Technical Advisory Committee Credits Needed: 6
11

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Example Compliance Costs
Measure Credits Average Cost
Heat Pump Water Heater 6 $6,800
Total 6 $6,800*
*Up to $2,000 Federal Tax Credit available
Heat Pump
Water Heater
12

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Example Compliance Costs
Measure Credits Average Cost
Attic Insulation 2 $2,500
Air Sealing 1 $1,500
Duct Sealing/Replacement 3 $4,600
Total 6 $8,600*Energy Efficiency &
Envelope
Improvements *Up to $1,200 Federal Tax Credit available 13

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Example Compliance Costs
Measure Credits Average Cost
Panel upsizing and replacement 4 $4,300
240v outlet installation (oven,
dryer, water heater, EV charger) 2 $1,800
Total 6 $6,100*
Electric Ready –
Preparing for
BAAQMD Compliance
*Up to $600 Federal Tax Credit available
(in conjunction with another energy improvement)
14

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Benefits to Homeowners
Decrease utility
costs
Increase SafetyImprove Comfort
and Indoor Air
Quality
15

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• Deposit sent from escrow to City
• Buyer has up to 2 years to complete upgrades
• Refunded once property is compliant
• After 2-years the funds are forfeited to the City
and could be used to help fund low-income
electrification programs
• Operate similar to Private Sewer Lateral
Utilize Escrow Deposit
16

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Exemption Pathway: Heat Pump System
Water Heating Space Heating/HVAC
OR
17

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Example: Home doesn't have a heat pump system
Seller completes
assessment
(Home Energy Score)
Home listed for
sale
Buyer completes upgrades
to meet target credit
requirement and utilizes
escrow deposit
Funds to cover upgrades
negotiated at closing
through escrow deposit
18

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Example: Home has a heat pump system
Seller completes assessment
(Home Energy Score)
Home listed for
sale
Fully Compliant, no
upgrade needed
OR
19

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• Phase I: Single-family, ADUs, Duplexes,
Condos within 1-4 unit buildings
• Expected implementation 2026
• Likely to be owner-occupied
• Bulk of sales
• Phase II: 3-4 Units
• Expected implementation 2028
• Likely to be rental properties
• Complex/shared systems
• Need to develop additional support systems
Phase-in by Building Type
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Building Type Avg. # of Buildings
Sold per Year % of Sales
Single Family 600 61%
Duplex 60 6%
Condominiums
(within 2-4 Unit Buildings) 30 3%
3-4 Units 50 5%
Not subject buildings
(Commercial, larger
Multifamily, industrial)
260 25%
Berkeley Sales Analysis
21

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Berkeley City CouncilFebruary 11, 2025

Berkeley City Council
February 11, 2025