Berkeley City Council
June 24, 2025

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I. INTRODUCTION
Pursuant to Sections 2.44.040 and 2.44.060 of the Berkeley Municipal Code, Resolution No. 45,087-N.S., and Sections 53601, 53607, 53636 and 53648 of the State Government Code, the Director of Finance, the Treasurer of the City, is authorized to make investments of the City’s idle funds. The Code also directs the City to present an annual investment policy to the City Council for approval. This Investment Policy, after approval of the amendments by the City Council, will serve as the Investment Policy for the City of Berkeley for the subsequent fiscal year.

Notwithstanding Section 53601 or 53635, the governing body of a local agency may invest funds designated for the payment of employee retiree health benefits in any form or type of investment deemed prudent by the governing pursuant to Section 53622. The authority of the governing body to invest or to reinvest funds intended for the payment of employee retiree health benefits, or to sell or exchange securities purchased for that purpose, may be delegated by the governing body to designated officers. The City Council has designated the Director of Finance, the Treasurer of the City, or his/her designee, the authority to make investments of the City’s retiree medical plan trust funds.

Funds intended for the payment of employee retirement health benefits shall only be held for the purpose of providing benefits to participants in the retiree health benefit plan and defraying reasonable expenses of administering that plan.

The governing board or designated officer, when making investments of the funds, shall discharge its duties with respect to the investment of the funds. (1) Solely in the interest of, and for the exclusive purposes of providing benefits to, participants in the retiree health benefit plan, minimizing employer contributions thereto, and defraying reasonable expenses of administering the plan.
(2) With care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims. (3) Shall diversify the investments of the funds so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so.

A. SCOPE OF POLICIES
These investment policies apply to the investments of the Retiree Medical Plan Trust Funds.

B. INVESTMENT OBJECTIVES
The Treasurer adheres to the principle which maintains that over the long-term, prudent investment risk-taking may be rewarded with higher incremental returns. Consequently, while capital preservation (i.e., Safety) is regarded to be of paramount importance, the Treasurer regards prudent risk-taking as justifiable.

C. USE OF STATE INVESTMENT GUIDELINES

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As required under Government Code Sections 16481.2 and 53646, the Statement of Investment Policies will be reviewed by the Council annually.

II. INVESTMENT AUTHORITY AND RESPONSIBILITIES
A. AUTHORIZED INVESTMENT OFFICERS

1. Retiree Medical Trust Funds:

A Trust is to be established by the City for the purpose of holding and investing assets separate and apart from the other funds of the City to fund the benefits of the Program. The specific terms governing the Trust are to be set forth in a separate trust instrument.  The trustee of the Trust (the “Trustee”) may be the City Treasurer (i.e., Director of Finance) or an independent third party qualified to act as a trustee under California law and designated by the City.
 The Trustee shall be a fiduciary of the Program and shall act solely in the interest of the Participants, minimizing employer contributions to the Trust, and defraying reasonable expenses of administering the Program.
 The City Manager may, with the written concurrence of the City Council, appoint an “investment manager” (as that term is defined in section 3(38) of the Employee Retirement Income Security Act) to have responsibility for investment of the Trust assets. In this case, the Trustee shall act as directed by the investment manager. The investment manager shall act as a fiduciary of the Program and shall act with the same duties and responsibilities set out in “Investment Objectives” section above.

B. INTERNAL CONTROLS
The Director of Finance shall establish a system of internal controls designed to prevent losses of trust funds arising from fraud, employee error, misrepresentation of third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City of Berkeley. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. These controls shall include:
 Separation of transaction authority from accounting and physical custody.  By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved.  Also, securities purchased from any bank or dealer including appropriate collateral (as defined by State Law), shall be placed with an independent third party for custodial safekeeping.
 Avoidance of physical delivery of securities by using a delivery versus payment “Basis of Settlement Only”.
 All trades will be executed on a delivery versus payment (DVP) basis. This ensures that securities are delivered to the City’s safekeeping bank at the same time the funds

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are released by the City’s safekeeping bank.
 Third-Party custodial safekeeping of securities held in the name of the City.

Delivered securities must be properly safeguarded against loss or destruction. Book entry securities are recorded in electronic records and the potential for fraud and loss increases with physically delivered securities. All investment securities, except collateralized certificates of deposit and money market funds, purchased by the City will be delivered by either book entry or physical delivery and will be held in third- party safekeeping by a City-approved custodian bank, its correspondent New York

Bank or the Depository Trust Corporation (DTC). Whenever possible, securities purchased are to be recorded in “book entry” form.
 All securities and applicable collateral will be held by the City’s third party custodian and evidenced by safekeeping receipts. All book entry securities owned by the City shall be evidenced by a safekeeping receipt issued to the City by the custodian bank to acknowledge that the securities are held in the Federal Reserve system in a “customer account” for the custodian bank which names the City as “customer”; The Director of Finance will require each approved safekeeping financial institution to submit a copy of its Consolidated Report of Condition and Income (Call Report) to the City within 60 days after the end of each calendar quarter.
 Competitive bidding on investment transactions. Before the City invests in any secondary market funds, competitive bids shall be requested. If a specific maturity date is required, either for cash flow purposes or for conformance to maturity guidelines, bids will be requested from at least three financial institutions for instruments which meet the maturity requirement. If no specific maturity is required, a yield curve analysis will be conducted to determine which maturities would be most advantageous.  Written confirmation and documentation of all financial transactions.  Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures.  Rapid deposit of funds received by the City (i.e., large checks.)  Bonding of all investments officials.

C. EVALUATION OF INVESTMENT OFFICER ACTIONS
Section 53600.3 of the Government Code identifies trustees as those persons authorized to make investment decisions on behalf of a local agency. As a trustee, the standard of prudence to be used by investment officials shall be the "prudent investor" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures, and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this plan.

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Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of their entity.

III. CAPITAL PRESERVATION AND RISK
A. OVERVIEW
The Treasurer adheres to the principle which maintains that over the long-term, prudent investment risk-taking may be rewarded with higher incremental returns. Consequently, while capital preservation (i.e., Safety) is regarded to be of paramount importance, the Treasurer regards prudent risk-taking as justifiable.

Some level of risk is inherent in any investment transaction. Losses may be incurred due to issuer default, market price changes, or technical cash flow complications such as investments in non-marketable certificates of deposit. Diversification of the City's portfolio by institution, investment vehicle, and maturity term is the primary tool available to the City in minimizing investment risk and capital losses by safeguarding the overall portfolio from any individual loss.

B. PORTFOLIO DIVERSIFICATION PRACTICES
The following sections summarize the City's major portfolio diversification practices and guidelines in determining:
 Authorized Dealers
 Investment Vehicles
 Investment Maturity
Portfolio limitations included in these guidelines are to be based on the portfolio composition and investment management plan policies in effect at the time of placement; the actual composition of the City's investments may vary over time from plan limitations due to overall portfolio changes from when the individual placement was made as well as changes in the City's investment management plan.

IV. ELIGIBLE FINANCIAL INSTITUTIONS
A. AUTHORIZED DEALERS

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 Investments shall be purchased only through well-established, financially sound institutions. The Finance Director shall maintain a list of financial institutions and broker/dealers approved for investment. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions will be given a copy of the City’s Statement of Investment Policies, and a return cover letter which must be signed indicating that the Statement of Investment Policies has been read and understood.

Qualified financial institutions and broker/dealers must supply the Director of Finance with the following:

Financial Institutions
Current audited financial statements
Depository contracts, as appropriate
A copy of the latest FDIC call report or the latest FHLBB report, as appropriate.

Broker/Dealers
Current audited financial statements
Proof that brokerage firm is a member in good standing with a national securities exchange.
 Except for repurchase agreements, investments shall be awarded based on competitive bids. Documentation relating to investment quotes shall be maintained by the Finance Department for a period of one year.

B. INDIVIDUAL PLACEMENT OF DEPOSITS
Individual placement of negotiable, collateralized, and other time certificates of deposit with eligible financial institutions shall be based on the following practices and procedures:
 Deposits shall only be placed with financial institutions maintaining offices within the City of Berkeley.
 Unless collateralized by eligible securities as provided in Sections 53651 and 53652 of the Government Code, the maximum amount of Certificates of Deposit to be placed with any single institution is $250,000.

V. INVESTMENT VEHICLES
The governing body of a local agency may invest funds designated for the payment of employee retiree health benefits in any form or type of investment deemed prudent by the governing pursuant to Section 53622. Some of the investment vehicles the City Council has authorized are the following:

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1. U.S. Treasury Instruments
As authorized in Government Code Section 53601(b), this category includes bills, notes, bonds or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There are no portfolio limitations on the amount.

2. Government Sponsored Enterprises
As authorized in Government Code Section 53601(f), this category includes a wide variety of government securities. These securities include U. S. government-sponsored enterprise obligations, such as issues by the Federal National Mortgage Association (FNMA's), Federal Home Loan Bank (FHLB), Federal Farm Credit (FFCB), Student Loan Marketing Association (SLMA), etc. There are no portfolio limitations on the amount.

3. Municipal Securities
As authorized in Government Code Section 53601(a)(c)(d)(e), this category includes obligations of the City, the State of California, any of the other 49 states, and any local agency within the State of California, provided that:
• The securities are rated “A” or higher by at least one nationally recognized statistical rating organization.
•
• There are no limitations on the amount or period.

4. Banker's Acceptances
As provided in Government Code Section 53601(f)g, 40% of the City's portfolio may be invested in Banker's Acceptances, otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank, although no more than 30% of the portfolio may be invested in Bankers' Acceptances with any one commercial bank. Additionally, the maturity period cannot exceed 180 days.

5. Commercial Paper
Commercial paper is a short-term, unsecured promissory note issued by financial and non- financial companies to raise short-term cash. As provided in Government Code Section 53601(h) up to 25% of the City's portfolio may be invested in "prime" commercial paper of the highest ranking or of the highest letter and number rating as provided by a nationally recognized statistical-rating organization (i.e., Moody's or Standard and Poor's or Fitch), with maturities not to exceed 270 days.

The issuer must have total assets in excess of $500 million, and have debt other than Commercial Paper rated “A” or higher by a nationally recognized statistical-rating organization.

6. Negotiable Certificates of Deposit
Negotiable certificates of deposit are a fixed deposit certificate that may be negotiated (traded) to a third party. The institution issuing the certificate promises to pay the holder the initial investment plus the interest rate stated on the certificate at maturity. As authorized in Government Code Section 53601(i), the City may invest 30% of its portfolio in negotiable certificates of deposit issued by commercial banks, thrifts and foreign banks.

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7. Repurchase Agreements
Repurchase agreements are agreements between the local agency and seller for the local agency to purchase government securities to be resold back to the seller at a specific date and for a specific amount and are authorized by Government Code Section 53601(j). Although the legal maximum maturity on these investments is 360 days, repurchase agreements are generally short-term investments varying from one day to two weeks. Investments in repurchase agreements must be collateralized, and collateral required for repurchase agreements is limited to Treasury and Agency securities. In order to anticipate market changes and provide a level of security for all funds, the required collateralization level is 102% of market value of principal and accrued interest.

8. Reverse Repurchase Agreements
Reverse repurchase agreements are a sale of securities by the local agency with a simultaneous agreement for the local agency to repurchase the securities on or before a specified date. As provided in Government Code section 53635(j), reverse repurchase agreements require the prior approval of the City Council. Reverse repurchase agreements can only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with the local agency. There are no portfolio limitations on the amount for these investments.

9. Medium-Term Corporate Notes
As authorized in Government Code Section 53601(k), local agencies may invest in corporate bonds and notes of industrial companies, banks, bank holding companies, insurance companies, thrifts and finance companies that are rated “A” or better by a nationally recognized rating service; and issued by corporations organized and operating in the United States. There are no portfolio limitations for these investments.

10. Shares of Beneficial Interest Issued By Diversified Management Companies As authorized in Government Code Section 53601(l), local agencies are also authorized to invest in shares of beneficial interest issued by diversified management companies (i.e., mutual funds) as defined in Section 23701(m) of the Revenue and Taxation Code in an amount not to exceed 20% of the agency's portfolio.

11. Financial Futures and Financial Option Contracts
As authorized in Government Code Section 53601.1, local agencies may invest in financial futures or option contracts in any of the above investment categories subject to the same overall portfolio limitations.

12. Time Certificates of Deposit
As authorized in Government Code Section 53635, time certificates of deposit are fixed term, non-negotiable investments which are required to be collateralized 110% by eligible pooled securities. The pool is administered by the State, and is composed of a wide variety of government securities, secured by first mortgages on improved residential property located in the State. There are no portfolio limits on the amount; however the maturity period for this investment vehicle may not exceed five years unless approved by the Council.

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13. Local Agency Investment Fund
As authorized in Government Code Section 16429.1, local agencies may invest in the Local Agency Investment Fund (LAIF), a pooled investment fund managed by the State Treasurer’s Office. It operates like a money market fund, but is for the exclusive benefit of governmental entities within the State. The current maximum amount of money that may be invested is $40 million.

14. Moneys Held By A Trustee Or Fiscal Agent
As authorized in Government Code Section 53601(m), debt proceeds held by a trustee or fiscal agent, which are pledged to the payment or security of bonds or other indebtedness may be invested in accordance with the statutory provisions governing the issuance of those bonds or other agreement; or to the extent not inconsistent with statutory provisions, or if there are no specific statutory provisions, investments may be made in accordance with the ordinance, resolution, indenture, or agreement of the local agency for the issuance.

This category includes investment agreements approved in writing by insurance companies, supported by appropriate opinions of counsel with notice to Standard and Poor’s.

15. Other Secured Notes, Bonds Or Other Obligations
As authorized in Government Code Section 53601(n), notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities.

16. Mortgage Pass Through, Collateralized Mortgage Obligation, Mortgage-backed Bond, Equipment Lease-backed Certificate, Consumer Receivable Pass through Certificate, and Consumer Receivable-backed Bond
As authorized in Government Code Section 53601(o), securities in this category must be rated “AA” or its equivalent or better by a nationally recognized rating service. Purchases may not exceed 20% of the agency’s portfolio.

In addition to the authorized investments above, the following investments may be made by Retiree Medical plan funds:
 Up to 100% of the retiree medical plans funds may be invested in equity mutual funds1 or equity index funds2, preferred stock3 and bond funds 4. 1Equity Mutual Fund – A financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities. When you invest in a mutual fund, you are buying shares of the mutual fund and become a shareholder of the fund. They are very cost effective, as the fund can purchase securities with much lower trading costs then an individual investor. But the biggest advantage to mutual funds is diversification.
2Equity Index Fund – A mutual fund that attempts to copy the performance of a stock market index. The most common index fund tries to track the S&P 500 by purchasing all 500 stocks

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using the same percentages as the index. Index funds have lower fees because computers do most of the work. There is no need to hire an expensive fund manager or research analysts.

Index funds can have an expensive ratio as low as .18%, while actively managed funds can have an expense ratio over 3%. Over the long-term, the S&P 500 beats the returns of 80% of actively managed funds.
3Preferred Stock – A hybrid between common stock and a bond. Each share of preferred stock is normally paid a guaranteed dividend that receives first priority (i.e., the common stockholders cannot receive a dividend until the preferred dividend has been paid in full) and has priority over the common stockholders relative to the company’s assets in the event of bankruptcy.
4Bond Fund- A bond fund is a more efficient way of investing in bonds than buying individual securities. Bond mutual funds are just like stock mutual funds in that you put your money into a pool with other investors, and a professional invests that pool of money according to what he or she thinks the best opportunities are. They are very cost effective, as the fund can purchase securities with much lower trading costs then an individual investor. But the biggest advantage to mutual funds is diversification.

Some of the investment vehicles that are Unallowable Investment Vehicles and Restrictions:

The Director of Finance/City Treasurer is not authorized to invest in any of the following investment vehicles:

Financial futures; option contracts, floaters, inverse floaters, range notes, interest-only strips that are derived from a pool of mortgages, or any security that could result in zero interest income if held to maturity may not be purchased. Exclusion of these vehicles is consistent with the City's overall objective of achieving reasonable yields on public funds while minimizing risk and capital losses. Although the potential exists for greater interest yields with these vehicles, it is believed that the potential level of risk exceeds their benefits except in very limited circumstances.

See Appendix A for the Investment Portfolio/Diversification Requirements, which lists the maximum amounts that may be invested in the various investment types and the maximum authorized maturities.

In accordance with Government Code Sections 53620-53622, the assets of the City of Berkeley Retiree Medical Plan Trust may be invested in any form or type of investment deemed prudent by the City Council.The maximum maturity for Retiree Medical Plan Trust funds is 30 years.

VI. CASH MANAGEMENT
To achieve a reasonable return on public funds, the following cash management practices will be followed:
 Maintain maximum investment of all City funds not required to meet immediate cash flow needs.

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 Maximize the City's cash flow through the immediate deposit of all cash receipts, use of direct deposits and wire transfers when available, and appropriate timing of payments to vendors.  Maximize the cash flow information available through the use of only one operating bank account.

VII. EVALUATION OF INVESTMENT PERFORMANCE
An actuarial study commissioned by the City many years ago determined that, in addition to City Contributions, an average rate of return of 7% on miscellaneous employees’ retiree medical trust fund assets invested must be achieved to fund the retiree health benefit at the desired 70% level.

Primarily as a result of the Federal Reserve Board’s decision to keep short-term rates near zero for the last 10 years, the average rate currently earned is significantly below that 7% level.

VIII. INVESTMENT REPORTING
Consistent with Sections 16481.2 and 53646 of the Government Code, the Department of Finance shall submit an annual Statement of Investment Policies to the Council for consideration at a public meeting.

In addition to the submittal of an annual Statement of Investment Policies, the Department of Finance shall provide the Council with a quarterly and annual investment report providing the following information for each investment or security:
 Issuer or broker/dealer (financial institution)
 Type of investment
 Certificate or other reference number if applicable
 Percentage yield on an annualized basis
 Purchase date
 Maturity date for each investment and the weighted average maturity of all the investments within the portfolio
 Current book value
 Current market value
 Total cost and market value, including source of this valuation, of the City's portfolio  A description of the compliance with the Statement of Investment Policies  An evaluation of investment operations for the preceding year. This shall include an evaluation of how well the objectives have been achieved: the accuracy of forecasting expenditures and revenues, as well as a comparison of the average returns on the investment portfolio with that of the Local Agency Investment Fund (LAIF).  Report of investments. The Director of Finance shall prepare a report that provides a clear status of the current investment portfolio and transactions. The report will be prepared in a manner which allows the City Manager and Council to ascertain whether investment activities during the reporting period have conformed to the investment policies.
 Summary of key or unusual events, including but not limited to:
o Any exceptions to policies;
o Adherence to or deviations from social investment goals;

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o Purchases of Treasury securities, other than in repurchase agreements with maturities of seven days or less;
o Purchases of securities that exceed maturity limits;
o Sales of securities more than three months before maturity; o Changes in investment procedures, dealers, staff, etc. o Investment performance;
o A glossary, defining all funds or accounts referred to elsewhere in the report; and o A listing of banks, securities dealers and custodians that the City has had investment transactions during the period.
o A summary of the certifications for deposits of City funds. o Other information regarding the City's portfolio as appropriate The Quarterly Investment Report shall include all investments as of the end of the quarter from all funds held in the City's portfolio, including funds held and invested by trustees; and shall be issued within 30 days after the end of the quarterly reporting period to the City Manager, and the City Council; the annual report shall be issued within 90 days after the end of the fiscal year to the City Manager, and the City Council.

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APPENDIX A

INVESTMENT PORTFOLIO
Diversification Requirements
Maximum Maximum
Amount Length
Investment Instrument Of Portfolio To Maturity
Bank / Time Deposit
Accounts 100% 5 Years
Money Market Deposit
Accounts 100% N/A
Repurchase Agreements 10% 1 Year
Reverse Repurchase
Agreements 10% 7 Days
Bankers Acceptances 40% 7 Days
U.S. Government Securities
(Treasury Bills,
Notes, and Bonds)
100% 30 Years
U.S. Government Agency
Securities by Agency 100% 30 Years
Certificates of Deposit
(Negotiable) 30% 30 Years
Municipal Bonds 100% 30 Years
Commercial Paper 25% 180 Days
Medium Term Notes 30% 30 years
In addition to the investments above, the following investments may be made by Retiree Medical plan funds:
 Up to 25% of the retiree medical plans funds may be invested in equity mutual funds1 or equity index funds2, and preferred stock3.

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1Equity Mutual Fund – A financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities. When you invest in a mutual fund, you are buying shares of the mutual fund and become a shareholder of the fund. They are very cost effective, as the fund can purchase securities with much lower trading costs then an individual investor. But the biggest advantage to mutual funds is diversification. 2Equity Index Fund – A mutual fund that attempts to copy the performance of a stock market index.

The most common index fund tries to track the S&P 500 by purchasing all 500 stocks using the same percentages as the index. Index funds have lower fees because computers do most of the work. There is no need to hire an expensive fund manager or research analysts. Index funds can have an expensive ratio as low as .18%, while actively managed funds can have an expense ratio over 3%. Over the long-term, the S&P 500 beats the returns of 80% of actively managed funds. 3Preferred Stock – A hybrid between common stock and a bond. Each share of preferred stock is normally paid a guaranteed dividend that receives first priority (i.e., the common stockholders cannot receive a dividend until the preferred dividend has been paid in full) and has priority over the common stockholders relative to the company’s assets in the event of bankruptcy.

Internal
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
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Henry Oyekanmi, Director, Finance Department Subject: Appropriations Limit for FY 2026

RECOMMENDATION
Adopt a Resolution establishing the appropriations limit at $407,546,513 for FY 2026 pursuant to Article XIIIB of the Constitution of the State of California based on the calculations for the appropriations limit.

FISCAL IMPACTS OF RECOMMENDATION
The amount of appropriations subject to the limit are budgeted proceeds of taxes (e.g., all taxes levied; transfers from an enterprise fund to the extent those transfers exceed the cost of providing the services; discretionary state subventions; interest earned from the investment of proceeds of taxes, etc.), and the total of these budgeted revenues cannot exceed the total appropriations limit. The City’s actual appropriations in each fiscal year have been significantly below the limit, as they will be for FY 2026. Thus, there are no present financial implications of establishing the limit.

CURRENT SITUATION AND ITS EFFECTS
Each year in June, concurrent with the adoption of the budget, Council must approve an appropriations limit for the following fiscal year pursuant to the State constitution. This resolution adopts the appropriations limit for FY 2026 at $407,546,513. The excess of the appropriations limit over appropriations is $66,529,966 for FY 2026 based on the proposed budget appropriations for FY 2026.

The Finance Department has compiled the data and made calculations to determine the FY 2026 appropriations limit. The documentation of determination, upon adoption and promulgation of the attached draft resolution, has been available for review by the public in the Office of the City Clerk. Exhibits A and B attached hereto, provide the required documentation. Exhibit A is a summary of the appropriations limit determination, the amount of appropriations subject to the limit, and the excess of the appropriations limit over appropriations. Exhibit B provides details of the appropriations limit calculations.

The Council action will set the FY 2026 appropriations subject to the limitations of Article XIIIB of the Constitution of the State of California, which may not exceed the

Internal
Appropriations Limit for FY 2026 CONSENT CALENDAR
June 24, 2025

amounts calculated by the City’s Finance Department. These calculations were filed with the City Clerk at least 15 days prior to June 24, 2025.

BACKGROUND
In November 1989, the voters of the State of California approved Proposition 4, commonly known as the (Paul) Gann Initiative, and added Article XIIIB of the State’s Constitution. In June 1990, this Article was modified by the passing of Proposition 111.

These propositions placed various limitations on the fiscal powers of state and local government.

Senate Bill 1352 requires that: 1) the governing body of each local jurisdiction shall establish by a legislative action its appropriations limit at a regularly scheduled meeting or noticed special meeting; and 2) 15 days prior to such meeting, give notice that documentation used to determine the appropriations limit shall be made available to the public.

The Council action will set the FY 2026 appropriations subject to the limitations of Article XIIIB of the Constitution of the State of California, which may not exceed the amounts calculated by the City’s Finance Department. These calculations were filed with the City Clerk 15 days prior to June 24, 2025.

RATIONALE FOR RECOMMENDATION
This is a state law.

ALTERNATIVE ACTIONS CONSIDERED
None

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

CONTACT PERSON
Henry Oyekanmi, Director, Finance Department, 981-7301
Attachments:
1: Resolution
Exhibit A: GANN Appropriation Limit FY 2026
Exhibit B: Schedule to Calculate Appropriation Limitation FY 2026

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

ESTABLISHING AN APPROPRIATIONS LIMIT FOR FY 2026
WHEREAS, on November 6, 1979, the citizens of the State of California approved Proposition 4, which added Article XIII B to the Constitution of the State of California to place various limitations on the fiscal powers of State and local government; and WHEREAS, on June 5, 1990, the citizens of the State of California approved Proposition 111 which provided new Proposition 111 adjustment formulas; and WHEREAS, Senate Bill 1352, enacted by the Legislature of the State of California, provides for the implementation of Article XIII by defining various terms in this article; and
WHEREAS, pursuant to the requirements of Senate Bill 1352, the City Council, on June 3, 2025 adopted a Resolution which gave notice, as required by law, that the City Council would establish the City of Berkeley appropriations limit for FY 2026 by a Resolution of the City Council on June 24, 2025.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley, that the Council, pursuant to the requirements and criteria set forth in Senate Bill 1352, does hereby establish the appropriations limit at $407,546,513 for FY 2026 for the City of Berkeley as documented in Exhibits A and B attached hereto and incorporated herein by reference as though fully set forth.

Exhibits:

A: GANN Appropriation Limit FY 2026
B: Schedule to Calculate Appropriation Limitation FY 2026

Internal

EXHIBIT A

CITY OF BERKELEY
GANN APPROPRIATION LIMITATION FOR FY 2026
(Based on the FY 2026 Proposed Budget)
FY 2025 Gann Appropriation Limit of $287,801,505 (before Special Taxes Added), Adjusted for Growth Factor of 1.0620 (See Exhibit B) $ 305,645,198 ADD BACK:

Library Tax 28,150,805
Emergency Medical Services Special Tax 4,004,684
Park Maintenance, City Trees and Landscaping Special Tax 22,467,856 Emergency Services for Severely Disabled Tax 1,882,839
Fire Protection and Emergency Response and Preparedness 6,326,071 Firefighting, Emergency Medical Response and Wildfire 10,969,060 Library Relief 5,600,000
Measure FF Streets 22,500,000
TOTAL Gann Appropriation Limitation $ 407,546,513 (1)
Appropriations Subject to Gann Limitation $ 341,016,547 (2) EXCESS of Limitation Over Appropriation $ 66,529,966
The GANN Limit override to raise the spending limit for the special taxes are required to be renewed by voters every four years. The date the next GANN Limit override is to be submitted to voters is November, 2028 Notes:
(1) The appropriation limit is the calculated dollar amount, which restricts the ability to receive and appropriate proceeds of taxes.
(2) The amounts of appropriations subject to the limitation are budgeted proceeds of taxes (e.g., all taxes levied; transfers from an enterprise fund to the extent those funds exceed the cost of providing the services; discretionary state subventions; interest earned from the investment of proceeds of taxes, etc.) and the total of these budgeted revenue cannot exceed the total appropriation limitations.

Internal(Based on the FY 2026 Proposed Budget)
Total City Appropriations (Per Final Amended Budget for FY 1978/79) $ 72,457,778 Less: 1. Debt Service Appropriation $ 457,186

2. Inter-service Funds:

Equipment Maintenance 1,436,890
Warehouse 554,883

3. Enterprise Funds:

Off-Street Parking 414,609
Marina Operations & Maintenance 1,623,144
Sanitary Sewer Maintenance &
Construction 1,260,012
Refuse Collection 3,635,197

4. Non-Proceeds of Taxes 33,147,004
Appropriation Subject to Limitation 42,528,925
Base Year 1978/79 $ 29,928,853
Fiscal
Year
Beginning Balances Less: Transferred Cost Add Back: Special Taxes Subtotal Transferred Cost and
Special Taxes
Appropriation Limit
After Transferred
Cost and Add Back
of Special TaxesGrowth Factor
Appropriation Limit Before
Transferred Cost and Add Back of
Special Taxes Landscaping Street Lighting Library Relief Tax Emergency Medical
Services Special Tax
Park Maintenance
City Trees and
Landscaping Special
Tax
Emergency
Paratransit Tax
Disaster Fire
Protection Tax
Fire Protection &
Emergency
Response &
Preparedness
Firefighting,
Emergency
Medical Response
and Wildfire Library Relief
Measure FF
Streets
Base Year $ 29,928,853 - $ 29,928,853
1980 1.097700 32,852,902 - 32,852,902
1981 1.121400 36,841,244 - 36,841,244
1982 1.083100 39,902,752 $ (949,298) $ (522,600) $ (1,471,898) 38,430,854 1983 1.070200 41,128,700 - 41,128,700
1984 1.029600 42,346,109 - 42,346,109
1985 1.047000 44,336,377 - 44,336,377
1986 1.045400 46,349,249 - 46,349,249
1987 1.025800 47,545,060 - 47,545,060
1988 1.047500 49,803,451 - 49,803,451
1989 1.054700 52,527,700 - 52,527,700
1990 1.050200 55,164,591 $ 6,010,000 6,010,000 61,174,591 1991 1.056300 58,270,356 6,600,000 6,600,000 64,870,356 1992 1.056800 61,580,113 6,752,000 6,752,000 68,332,113 1993 1.057900 65,145,601 6,850,000 6,850,000 71,995,601 1994 1.043100 67,953,377 7,202,000 7,202,000 75,155,377 1995 1.016900 69,101,789 7,202,000 7,202,000 76,303,789 1996 1.030200 71,188,663 7,570,000 7,570,000 78,758,663 1997 1.063200 75,687,786 7,570,000 7,570,000 83,257,786 1998 1.060800 80,289,604 7,570,000 $ 1,639,599 $ 5,500,000 14,709,599 94,999,203 1999 1.060400 85,139,096 7,927,500 1,651,547 5,790,163 15,369,210 100,508,306 2000 1.059900 90,238,928 8,373,875 1,701,093 5,850,400 15,925,368 106,164,296 2001 1.057500 95,427,666 8,936,938 1,812,014 6,025,912 16,774,864 112,202,530 2002 1.097300 104,712,778 9,478,469 1,927,257 7,211,984 $ 661,000 19,278,710 123,991,488 2003 0.999740 104,685,553 9,997,653 1,974,876 7,435,281 689,369 $ 1,000,000 21,097,179 125,782,732 2004 1.031489 107,981,996 11,654,000 2,034,352 7,609,028 690,475 970,000 22,957,855 130,939,851 2005 1.040236 112,326,760 11,603,755 2,000,000 7,594,920 702,727 950,639 22,852,041 135,178,801 2006 1.060000 119,066,366 12,214,113 2,040,000 7,755,780 754,105 969,652 23,733,650 142,800,016 2007 1.052907 125,365,810 12,580,535 2,120,827 7,975,189 771,244 969,652 24,417,447 149,783,257 2008 1.055370 132,307,315 13,209,469 2,184,452 8,214,445 805,333 998,742 25,412,441 157,719,756 2009 1.056666 139,804,642 13,520,414 2,274,380 8,502,545 839,882 969,652 26,106,873 165,911,515 2010 1.018780 142,430,173 13,655,619 2,297,124 8,587,570 889,152 969,652 5,400,000 31,799,117 174,229,290 2011 1.072060 152,693,690 13,904,789 2,332,903 8,754,869 894,401 969,652 3,600,000 30,456,614 183,150,304 2012 1.0381 158,511,319 14,425,555 2,461,803 9,237,474 944,155 969,652 3,788,761 31,827,400 190,338,719 2013 1.04787 166,099,254 15,028,438 2,484,633 9,309,080 967,511 985,734 3,879,323 32,654,719 198,753,973 2014 1.063912 176,714,993 15,870,770 2,561,235 9,586,190 1,022,302 985,734 4,095,987 34,122,218 210,837,211 2015 1.011200 178,694,201 16,345,912 2,640,032 9,865,971 1,052,122 985,734 4,186,198 35,075,969 213,770,170 2016 1.051700 187,932,691 16,617,288 2,687,121 10,043,981 1,070,929 985,734 4,256,304 35,661,357 223,594,048 2017 1.064900 200,129,523 17,893,335 2,778,750 12,150,387 1,152,175 985,734 4,583,053 39,543,434 239,672,957 2018 1.047200 209,575,636 18,786,687 2,916,558 12,763,390 1,209,625 985,734 4,812,892 41,474,886 251,050,522 2019 1.045400 219,090,370 19,746,463 3,047,265 13,411,968 1,270,257 985,734 5,058,273 43,519,960 262,610,330 2020 1.046200 229,212,345 20,806,525 3,215,011 14,143,821 1,339,668 985,734 5,328,686 45,819,445 275,031,790 2021 1.041100 238,632,972 20,342,539 3,183,676 14,369,024 1,361,402 985,734 5,405,100 45,647,475 284,280,447 2022 1.053400 251,375,973 21,704,603 3,330,634 15,320,468 1,451,853 0 5,559,637 12,750,000 60,117,195 311,493,168 2023 1.068800 268,670,640 23,837,768 3,562,620 16,791,663 1,590,735 5,777,036 8,604,000 60,163,822 328,834,462 2024 1.039400 279,256,263 25,050,748 3,742,618 17,664,146 1,673,845 0 5,645,200 9,770,233 63,546,790 342,803,053 2025 1.030600 287,801,505 25,905,893 3,874,480 18,297,945 1,733,706 0 5,821,950 10,102,578 65,736,552 353,538,057 2026 1.062000 305,645,198 28,150,805 4,004,684 22,467,856 1,882,839 0 6,326,071 10,969,060 5,600,000 22,500,000 101,901,315 407,546,513

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

CONSENT CALENDAR
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Henry Oyekanmi, Director, Finance Department David Sprague, Fire Chief, Fire Department
Subject: FY 2026 Tax Rate: Fund Fire Protection and Emergency Response and Preparedness (Measure GG)

RECOMMENDATION
Adopt first reading of an Ordinance setting the FY 2026 tax rate for funding Fire Protection and Emergency Response and Preparedness in the City of Berkeley at the rate of $0.06695 (6.695 cents) per square foot of improvements for dwelling units and setting the rate for all other property at $0.10132 (10.132 cents) per square foot of improvements.

FISCAL IMPACTS OF RECOMMENDATION
The tax levy of the recommended $0.06695 per square foot of improvements for dwelling units and $0.10132 per square foot of non-dwelling improvements. This will result in estimated collections of $6,326,071 for the fund. The tax rate will result in an increase in the citywide average for 1900 square foot dwelling and all other property from FY 2025 of $7.70 and $11.65, respectively.

CURRENT SITUATION AND ITS EFFECTS
The FY 2025 tax rates of $0.0629 for dwelling units and $0.09519 for all other property were adjusted by the per capita the Consumer Price Index (CPI) or the Personal Growth Index in California. The voters approved increasing the Measure GG tax rate annually by up to the greater of the Consumer Price Index increase in the immediate San Francisco Bay Area or the per capita Personal Income Growth in California. The Personal Growth Index per capita rate for FY 2025 has been set at 6.44%. The CPI rate is 1.30% in FY 2025.

At their regular meeting on May 28, 2025, the Disaster and Fire Safety Commission voted to recommend an increase to the Measure GG tax rate assessment using the Personal Income Growth Index Rate of 6.44%.

Action: M/S (Kinosian, Wilson): Vote: 9 Ayes: Katz, Wilson, Bradstreet, Darling, Kinosian, Dean, Murphy, Herzer-Baptiste, Gordon; 0 Nayes; 0 Abstain

FY 2026 Tax Rate: Fund Fire Protection and Emergency CONSENT CALENDAR Response and Preparedness (Measure GG) June 24, 2025

It is recommended that the City Council authorize the levy of a special tax of $0.06695 per square foot for dwelling units and $0.10132 for all other property in the City of Berkeley. The tax will result in an increased cost to taxpayers in the following average amounts during Fiscal Year 2026, as compared with amounts for FY 2025:

FY 2026
Square Feet Dwelling Units
All Other
Properties
1,200 80.34 121.58
1,500 100.43 151.98
1,900 127.21 192.51
3,000 200.85 303.96
3,900 261.11 395.15
10,000 669.50 1013.20
FY 2025
Square Feet Dwelling Units
All Other
Properties
1,200 $75.48 $114.23
1,500 94.35 142.79
1,900 119.51 180.86
3,000 188.70 285.57
3,900 245.31 371.24
10,000 629.00 951.90

BACKGROUND
In the November 2008 election, Berkeley voters approved Measure GG, which authorized the levying of a special tax. The tax proceeds will be used first to eliminate rotating closures of operating fire stations, and to provide advanced life support personnel (paramedics) and equipment on all first responder vehicles (ambulances, fire engines and ladder trucks). The funds would also be used to (1) hire a training officer to provide Emergency Medical Service training for first responders; (2) hire staff to conduct Community Emergency Response Training and other similar public disaster training and preparedness efforts and for neighborhood emergency preparedness caches; and (3) to acquire and maintain equipment to enhance emergency preparedness, including equipment to allow compatible radio communications throughout the City and with outside public safety agencies. On November 5, 2024, over 88% of Berkeley voters approved Measure AA to re-authorize the City, for a period of four (4) years through FY 2028, to spend the Fire Protection and Emergency Response and Preparedness tax.

FY 2026 Tax Rate: Fund Fire Protection and Emergency CONSENT CALENDAR Response and Preparedness (Measure GG) June 24, 2025

ALTERNATE CONSIDERATIONS
The City Council may consider adjusting the current recommended tax rate of $0.06372 per square foot of improvements for dwelling units and $0.09643 per square foot of improvements for all other property by the per capita Consumer Price Index in California of 1.30% with projected revenue of $6,020,584.

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

CONTACT PERSON
Henry Oyekanmi, Director, Finance Department, 981-7301
David Sprague, Fire Chief, 981-5500
Attachments:
1: Ordinance

ORDINANCE NO. -N.S.

SETTING THE FISCAL YEAR 2026 SPECIAL TAX RATE TO FUND FIRE PROTECTION

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

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

Section 1. The FY 2026 Tax Rate for the Fire Protection and Emergency Response and Preparedness (Measure GG) is set at:
$0.06695 per square foot of improvements for dwellings
$0.10132 per square foot of improvements for all other properties Section 2. The cost to taxpayers during FY 2026 will be $80.34 for a 1,200 square foot dwelling and $200.85 for a 3,000 square foot dwelling.

Section 3. This tax rate will result in estimated total collections of $6,326,071 Section 4. The tax imposed by this ordinance does not apply to any property owner whose total personal income, from all sources for the previous calendar year, does not exceed that level which shall constitute a very low income, as established by resolution of City Council.

Section 5. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.

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

CONSENT CALENDAR
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Henry Oyekanmi, Director, Finance Department David Sprague, Fire Chief, Fire Department
Subject: FY 2026 Tax Rate: Fund Firefighting, Emergency Medical Response and Wildfire Prevention (Measure FF)

RECOMMENDATION
Adopt first reading of an Ordinance setting the FY 2026 tax rate for funding Firefighting, Emergency Medical Response and Wildfire Prevention (Measure FF) in the City of Berkeley at the annual tax rate of $0.1299 (12.99 cents) per square foot of improvements.

FISCAL IMPACTS OF RECOMMENDATION
The tax levy rate of the recommended $0.1299 per square foot of improvements is projected to yield approximately $10,969,060 in revenues.

CURRENT SITUATION AND ITS EFFECTS
The FY 2025 tax rate of $0.1220 is being adjusted by the Personal Income Growth in California of 6.44% based on Berkeley Municipal Code 7.83.020 as adopted by the City Council under Ordinance No. 7,745-N.S. on June 16, 2020. Measure FF is a special parcel tax for firefighting, emergency medical response and wildfire prevention that limits the annual tax rate based on the greater of the increase in the cost of living in the immediate San Francisco Bay Area or per capita Personal Income Growth in California.

It is estimated that the tax will cost taxpayers the following amounts for FY 2026, as compared with FY 2025:

Square
Feet FY 2026 FY 2025
1,200 $155.88 $ 146.40
1,500 194.85 183.00
1,900 246.81 231.80
3,000 389.70 366.00
3,900 506.61 475.80
10,000 1299.00 1,220.00

FY 2026 Tax Rate: Fund Firefighting, Emergency Medical CONSENT CALENDAR Response and Wildfire Prevention (Measure FF) June 24, 2025

BACKGROUND
Measure FF authorized a special parcel tax for the purpose of funding firefighter and emergency medical response, upgrades to the 9-1-1 dispatch system, hazard mitigation, and wildfire prevention and preparedness activities.

In 2008, voters passed Measure GG to stop fire stations from being closed and services from being reduced, in the context of a major economic downturn. Measure GG designated the Disaster and Fire Safety Commission a formal oversight role, the duties of which are replicated, with respect to Measure FF, through the passage of this Council item.

Now, with rising challenges from climate change and fires, bigger demands on our emergency services, and the worst economic downturn since the Great Depression, Measure FF was placed on the November 2020 ballot by a unanimous vote of the City Council and it was approved by voters, to provide funds to modernize the City’s 9-1-1 dispatch system, upgrade equipment, hire additional paramedics, improve emergency alert systems and continue to clear fire fuels, among other things.

The effective date for this tax was January 1, 2021. The City will raise approximately $10,969,060 for FY 2026.

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

CONTACT PERSON
Henry Oyekanmi, Director, Finance Department, (510) 981-7301 David Sprague, Fire Chief, (510) 981-5500
Attachments:
1: Ordinance

ORDINANCE NO. #,###-N.S.

SETTING THE FISCAL YEAR 2026 SPECIAL TAX RATE TO FUND FIREFIGHTING,

EMERGENCY MEDICAL RESPONSE AND WILDFIRE PREVENTION (MEASURE FF)

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

Section 1. The FY 2026 tax rate to provide for the costs incurred for the firefighting, emergency medical response and wildfire prevention (Measure FF) is set at 0.1299 per square foot of improvements.

Section 2. The cost to taxpayers during FY 2026 will be $155.88 for a 1,200 square foot dwelling and $389.70 for a 3,000 square foot dwelling.

Section 3. This tax rate will result in estimated total collections of $10,969,060.

Section 4. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.

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
June 24, 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: Funding Reservation for Resources for Community Development’s Maudelle Miller Shirek Community Project

RECOMMENDATION
Adopt a Resolution:

1. Reserving an additional $500,000 for Resources for Community Development’s (RCD) Maudelle Miller Shirek Community project from the FY25 available Small Sites Program fund balance.

2. Conditioning the funding on RCD providing information to tenants on City rental assistance programs with any nonpayment eviction notices issued at the project.

3. Authorizing the City Manager or designee to execute all original or amended documents or agreements to effectuate this action.

FISCAL IMPACTS OF RECOMMENDATION
The City’s Housing Trust Fund (HTF) Program has a balance of approximately $5.8M, all of which is expected to be allocated through the active HTF Request for Proposals process supporting occupied affordable projects with critical rehab needs. The only other unallocated HTF resources that can be used are the $1.4M in unspent HTF resources that were allocated to the Small Sites Program (SSP) in FY25. A total of $5M in FY25 SSP funds was made available through a competitive process, and approximately $3.6M was allocated to the City’s third SSP project - 2627 California Street, being developed by Bay Area Community Land Trust. This portion of the remaining FY25 SSP funds include fees paid into the Housing Trust Fund (Fund #120).

CURRENT SITUATION AND ITS EFFECTS
In March 2025, Resources for Community Development (RCD) submitted a request for $1M for Maudelle Miller Shirek Community (MMSC), to help cover a $1.66M financing gap caused by significant schedule delays, increased cost of construction financing, and other factors outside of the project team’s control. The HTF Guidelines allow consideration of funding for at-risk projects outside of a competitive funding process. As

Funding Reservation for Resources for Community Development’s CONSENT CALENDAR Maudelle Miller Shirek Community Project June 24, 2025

a previously funded project that has not yet completed its conversion to permanent financing, MMSC meets the definition of an at-risk project. Although RCD requested $1M to help close their financing gap, they indicated $500,000 was the minimum they need from the City for a successful conversion to permanent financing. Due to the limited availability of City housing funds, staff and the HAC recommend funding at the lower level.

On May 1, 2025, the Housing Advisory Commission (HAC) voted to support staff’s recommendation to reserve an additional $500,000 in funding for MMSC. The HAC also voted to add a condition requiring RCD to include information on City-funded rental assistance programs with any eviction notices issued by RCD to MMSC tenants for nonpayment of rent.

M/S/C: Shere/Alpert. Ayes: Alpert, Bell, Haycox, Micael, Scott, Shere, and Simon- Weisberg. Noes: None. Abstain: None. Absent: Braslaw (unexcused), Potter (unexcused).

BACKGROUND
RCD completed construction on MMSC earlier this year and is in the final phases of lease-up. MMSC provides permanently affordable housing for 86 extremely low-, very low-, and low-income households, including 12 apartments dedicated to previously homeless residents. The City has an existing $17M HTF loan for MMSC, and this is the first project to which the City’s preference policy is being applied.

RCD closed MMSC’s construction financing in early 2022, but faced delays throughout the project, including a 6-month delay in securing approvals from Alameda County’s Department of Environmental Health before construction could even start, a 4-month delay in securing power from PG&E, and delays from the City’s approval process for the temporary certificate of occupancy.

Before requesting additional City funds, RCD took steps to reduce costs and increase other funding to the project. RCD and their design team used value engineering to decrease construction costs by approximately $1M. They also pursued $1M in funding from the Federal Home Loan Bank’s Affordable Housing Program and negotiated $2M in additional equity from the tax credit equity investor. To help close the gap further, RCD plans to defer a greater portion of their developer fee than initially planned and instead collect that fee from the project’s future cash flow.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no direct environmental impacts to the recommended action.

RATIONALE FOR RECOMMENDATION
If the City is unable to help fund the gap, RCD may need to consider reductions in operating and services staff and programs that contribute to ensuring a stable and

Funding Reservation for Resources for Community Development’s CONSENT CALENDAR Maudelle Miller Shirek Community Project June 24, 2025

healthy community. Funding RCD’s lower request supports the project while preserving the remaining FY25 SSP funding for future projects.

ALTERNATIVE ACTIONS CONSIDERED
The City could fund RCD at their full request, but that would further diminish the remaining FY25 SSP funds. Staff instead urged RCD to seek alternative funding sources for the remainder of the gap.

CONTACT PERSON
Jenny Wyant, Program Manager, HHCS, 510-981-5228
Attachments:
1: Resolution

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

APPROVAL OF THE FUNDING RESERVATION FOR THE MAUDELLE MILLER

SHIREK COMMUNITY PROJECT
WHEREAS, the City Council established a Housing Trust Fund Program (HTF) to assist in the development and expansion of affordable housing to low- and moderate-income persons who either work or reside within the City of Berkeley, and authorized the City Manager to implement the Program; and
WHEREAS, City Council adopted guidelines (HTF Guidelines) as revised on January 19, 2021, and authorized the City Manager to implement the HTF program in accordance with the Guidelines; and
WHEREAS, through Resolutions 68,824-N.S., 69,163-N.S., and 69,231-N.S., the City Council voted to reserve a total of $17,000,000 in housing funds for Resources for Community Development’s (RCD) Maudelle Miller Shirek Community (MMSC) project; and
WHEREAS, the City’s HTF Guidelines allow funding requests to be submitted at any time for projects at imminent risk, including previously funded projects with funding gaps; and WHEREAS, in March 2025, RCD requested additional funding for MMSC, a project that meets the HTF Guidelines’ definition of at-risk;
WHEREAS, on May 1, 2025, the Housing Advisory Commission recommended Council approve $500,000 for MMSC; and
WHEREAS, the only currently available housing funds are approximately $1.4M in HTF resources allocated to the Small Sites Program in FY25 that have not been allocated to a project.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the Council approves the reservation of $500,000 for MMSC and that the funds be reserved from the City’s available FY25 Small Sites Program funds in the Housing Trust Fund (Fund #120).

BE IT FURTHER RESOLVED THAT as a condition of this funding; RCD is required to provide information to MMSC tenants on City rental assistance programs with any nonpayment eviction notices issued at that property.

BE IT FURTHER RESOLVED THAT funds shall be reserved for a period of no more than 24 months from the date of this Resolution, contingent on RCD obtaining all required approvals and closing the project’s permanent financing within the reservation period.

BE IT FURTHER RESOLVED that that the funding reservation is conditioned upon the completion of the environmental review process, except as authorized by 24 CFR, Part

58, and that should HOME and/or CDBG funds constitute a portion of the funding for any project, a final commitment of HOME and/or CDBG funds shall occur only upon the satisfactory completion of the appropriate level of environmental review and also upon the receipt of approval of the request for release of funds and related certification from the U.S. Department of Housing and Urban Development, when applicable. The funding reservation for any of the HOME and/or CDBG funded projects is conditioned upon the City of Berkeley's determination to proceed with, modify, or cancel the project based on the results of subsequent environmental review under the National Environmental Policy Act.

BE IT FURTHER RESOLVED THAT the making of the loan shall be contingent on and subject to such other appropriate terms and conditions as the City Manager or designee may establish.

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.

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
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Scott Gilman, Director, Health, Housing & Community Services Subject: 2024 Housing Trust Fund Request for Proposals - Funding Reservations

RECOMMENDATION
Adopt a Resolution to:

1. Reserve $2,990,000 in funding for Resources for Community Development’s Adeline Street Apartments (3224 Adeline Street);

2. Reserve $2,868,571 in funding for Satellite Affordable Housing Associates’ Ashby Lofts (2909 Ninth Street);

3. Authorize the City Manager to refinance existing HTF loans for each project into new loans with terms consistent with the HTF Guidelines;

4. Waive Section IV.C.1 of the Housing Trust Fund Guidelines for projects receiving funds through this Request for Proposal process;

5. Condition the funding on the respective housing developers providing information to tenants on City rental assistance programs with any nonpayment eviction notices issued at these properties;

6. Approve multi-year operating funding contracts for Resources for Community Development and Satellite Affordable Housing Associates, starting Fiscal Year (FY) 2025-2026 and ending in FY2029-2030, estimated at up to $30,000 per organization per year;

7. Authorize City Manager or designee to determine the amount of funding to be awarded to Resources for Community Development and Satellite Affordable Housing Associates annually from FY2026 to FY2030, based on the amount of the City’s annual allocation of HOME funds and availability of General Fund match; and

8. Authorize the City Manager or designee to execute all original or amended documents or agreements to effectuate this action.

SUMMARY
The City issued the 2024 Housing Trust Fund (HTF) Request for Proposals (RFP) in November 2024 to solicit applications for funding for the rehabilitation of existing affordable housing and for operating support to certified Community Housing Development Organizations (CHDOs). The RFP included funds from the HTF, including HOME funds, Permanent Local Housing Allocation (PLHA) funds and other HTF fees.

Approximately $5.8M is available for rehabilitation including $1.2M in federal HOME

2024 Housing Trust Fund Request for Proposals Funding Reservations CONSENT CALENDAR June 24, 2025

funds that need to be committed to a project before December 31, 2025. In addition to the rehabilitation funds, up to 5% of the City’s annual HOME allocation is available to certified CHDOs for operating funding, to support their work on existing and future HOME-funded projects. The amount of CHDO operating funds is expected to fluctuate annually, depending on the year’s HOME allocation and General Fund match, for a total of up to $60k per year, to be split amongst the organizations that certify. Each certified CHDO will enter into a 5-year operating grant.

The City received five proposals requesting a total of $11.5 million in rehab funds. Three organizations submitted applications for CHDO certification, in order to access the annual operating support funds. The funding recommendations reflect staff and the Housing Advisory Commission’s (HAC’s) desire to support projects with the highest health and safety needs, and to allocate the available HOME funds to a project that can meet the commitment deadline. The two projects recommended for funding -- 3224 Adeline Street and 2909 Ninth Street – will result in the rehabilitation of projects that are in significant disrepair.

At its May 1, 2025, meeting the HAC also supported a HAC HTF Subcommittee and staff recommendation for City Council to consider augmenting the Housing Trust Fund with resources from any available funding source, including but not limited to Measure U1, to support the unfunded rehabilitation proposals for Dwight Way Apartments ($1.67M), University Homes ($750k) and additional funding required to fully fund Ashby Lofts ($56k). However, due to the City’s budgetary constraints, there are no identifiable resources to support these projects and the recommendation is being withdrawn.

FISCAL IMPACTS OF RECOMMENDATION
The approximately $5.8M in housing rehab funds available through this RFP include $1.2M in HOME (Fund #310), Permanent Local Housing Allocation funds (Fund #302), and other HTF fees (including Funds #120, #122, #123, and #331). CHDO operating support estimated at up to $30k per year per certified CHDO would come from the City’s HOME funds (Fund #310) and General Funds (Fund #501), as shown in the FY26 approved budget and subject to budget approvals in fiscal years 2027-2030.

CURRENT SITUATION AND ITS EFFECTS
The City’s portfolio of HTF-funded projects is aging, and while projects with limited cash flow can typically address regular maintenance and unit turnovers, they may not be able to build sufficient reserves to address major capital projects. The City issued an RFP on November 25, 2024, to solicit proposals for rehabilitation of existing affordable housing projects previously funded by the City, and for operating support to certified CHDOs.

The City received five applications for rehabilitation funding and three applications for operating support funds by the February 6, 2025 due date.

At their May 1, 2025, meeting, the HAC supported the staff and the HAC HTF Subcommittee recommendations to fund two rehabilitation projects, and operating

2024 Housing Trust Fund Request for Proposals Funding Reservations CONSENT CALENDAR June 24, 2025

support for two eligible CHDOs as written above. The HAC also voted to add a condition requiring that the housing providers receiving funding through this RFP include information on City-funded rental assistance programs with any eviction notices issued by organizations to their tenants for nonpayment of rent.

M/S/C: Haycox/Bell. Ayes: Alpert, Bell, Haycox, Micael, Scott, Shere, and Simon- Weisberg. Noes: None. Abstain: None. Absent: Braslaw (unexcused), Potter (unexcused)
In addition, the HAC supported a recommendation for Council to consider increasing the allocation to the HTF from U1 or another available source to support the unfunded rehabilitation proposals for Dwight Way Apartments ($1.67M), University Homes ($750k) and additional funding required to fully fund Ashby Lofts ($56k). After staff made that initial recommendation, the City’s FY26 budget forecasts revealed a projected deficit, with limited U1 available in FY26. This recommendation cannot advance since the funds are not available. HAC and staff's recommendations align beyond this discrepancy.

BACKGROUND
Staff reviewed all funding applications for alignment with HTF priorities, feasibility, and urgency, and evaluated the applications according to the following criteria identified in the RFP:
 Developer Capacity
 Project Feasibility
 Local Needs and Priorities
 Readiness to Proceed
Rehabilitation Projects
The five proposals for rehabilitation funding are described below:
 Adeline Street Apartments - Resources for Community Development (RCD) RCD requested $2,990,000 for renovation of Adeline Street Apartments, located at 3222-24 Adeline Street.

Located at 3222-24 Adeline Street, this 18-unit building provides fully accessible housing to residents with disabilities who have extremely low incomes. The building suffers from serious structural and deferred maintenance issues, including failing balconies and stairways, water damage, deteriorating roofing and mechanical systems, and outdated security infrastructure. The proposed rehabilitation would address these conditions, improve safety and durability, and preserve vital supportive housing.

The rehabilitation project would be funded primarily with the HTF funds requested through this RFP, offset by a small contribution from the project’s

2024 Housing Trust Fund Request for Proposals Funding Reservations CONSENT CALENDAR June 24, 2025

replacement reserves, and proposed CDBG funds for the commercial space improvements.

HAC supported staff and HTF Subcommittee recommendation to (i) fund at the full total request of $2,990,000; (ii) refinance the original HTF loan into a new loan with terms consistent with the HTF Guidelines; and (iii) waive Section IV.C.1 of the HTF Guidelines to allow a City subsidy greater than 40% of the project’s total development costs.
 Ashby Lofts - Satellite Affordable Housing Associates (SAHA) SAHA requested $2,924,829 for renovation of Ashby Lofts, 2909-2919 Ninth Street.

This 54-unit complex at 2909–2919 Ninth Street, developed in 2007, serves a mix of low- and very low-income households. The project suffers from severe deterioration of its elevated walkways, which are compromised and at risk of structural failure, along with failing building systems, hazardous conditions in stairwells, and damaged exterior elements.

The funds requested through this RFP would support urgent repairs to preserve habitability and ensure long-term building viability. The project is also seeking low-income housing tax credits and would benefit from City funding to increase competitiveness.

HAC supported staff and HTF Subcommittee recommendation to fund request at $2,868,571 (with additional $56,258, pending additional allocation of funds to HTF)
 Dwight Way (Resources for Community Development)
RCD requested $1,669,334 for renovation of Dwight Way Apartments, 1518 Dwight Way.

A 16-unit HUD Section 811 property at 1518 Dwight Way serving people with disabilities, this development faces serious safety risks due to compromised balconies and walkways. Funding would enable essential structural repairs and system upgrades to address accessibility and life-safety issues.

The rehabilitation would be funded 100% with the HTF funds requested through this RFP. There is no other source of funding available because RCD is unable to add new debt to the property due to a prohibition on HUD 811 projects to take on first mortgages.

2024 Housing Trust Fund Request for Proposals Funding Reservations CONSENT CALENDAR June 24, 2025

This project cannot be funded at the current HTF allocation available for this RFP. HAC supported staff and HAC HTF Subcommittee recommendation to fund total request, pending additional allocation of funds to the HTF.  University Homes - Housing Consortium of the East Bay (HCEB)/Memar Properties Inc. (MPI)
HCEB/MPI requested $750,000 for renovation of University Homes, 1461 University.

This 43-unit permanent supportive housing development for formerly homeless individuals is located at 1461 University Avenue. Previously leased by the City of Berkeley with Abode Services and subsequently HCEB as an emergency shelter provider, HCEB/MPI acquired University Homes utilizing $8.5M in City of Berkeley funds along with Alameda County and Homekey funding for capital and operating subsidies. The rehabilitation project will create 4 accessible units and will add site amenities including an accessible laundry room, property management office, supportive services offices, and a community room with kitchen.

Funding for rehabilitation will come from previously-funded City construction funds and state Homekey capital funds. The project requires gap funding of $750,000 to close the construction budget shortfall resulting from increased costs. The City’s contribution will enable the project to move forward to completion of a project serving a highly vulnerable population.

This project cannot be funded at the current HTF allocation available for this RFP. HAC supported staff and HAC HTF Subcommittee recommendation to fund total request, pending additional allocation of funds to HTF.  William Byron Rumford Plaza – Resources for Community Development (RCD)
RCD requested $3,221,221 for the renovation of William Bryon Rumford Plaza located at 3017 Stanton.

This 43-unit residential apartment complex serves a mix of very low, low-income household, as well as market-rate households. The property consists of 27 affordable, restricted units and 16 conventional market rate units and is home to long-time South Berkeley residents. The primary goal of the proposed rehabilitation is to renovate the affordable units, some of which have not been rehabilitated since the project was built in 1991.

In 2017, the property undertook a much-needed recapitalization and rehabilitation with the original intention to address upgrade to interiors of all 43

2024 Housing Trust Fund Request for Proposals Funding Reservations CONSENT CALENDAR June 24, 2025

units and exterior elements. The project was not eligible for tax credits, and financing was limited to a first mortgage from CalHFA, residual receipts loan from California Department of Housing and Community Development, and $3.3M from the City of Berkeley. With these funds the property was able to stabilize the building envelope, replacing roof, windows, exterior stairs, balconies, siding, irrigation and renovate three ADA units. However, there was insufficient funds for the planned interior renovations.

RCD’s proposed rehabilitation of the interior of the unrenovated affordable units (24 of 27 units) would be funded 100% with the HTF funds requested through this RFP. RCD is unable to secure additional funding from other sources since all the project cash flow is dedicated to making the required first mortgage payments to CalHFA.

HAC supported the staff and HAC HTF Subcommittee recommendation to not recommend this project for funding at this time. Although staff understands the need for renovating and bringing units up to code and improving interior conditions, compared with the urgent life safety issues identified in the other proposals, staff was not able to recommend funding for RCD’s Rumford Plaza project. RCD is considering alternatives for financing the interior improvements and phasing the rehabilitation of the affordable units.

CHDO Operating Support
Local nonprofit developers were invited to apply for certification as Community Housing Development Organizations (CHDO) through this HTF RFP. A portion of the City’s annual HOME allocation is reserved for CHDOs, including both operating and development funds. Because of the CHDO development set-aside, the City only provides HOME funding to projects developed by certified CHDOs.

Federal HOME program regulations define a CHDO as an organization that meets certain criteria for organizational and financial capacity including having a certain board composition and certain policies in place. Staff determined applicants’ eligibility for CHDO certification based on submittals that demonstrated compliance with the metrics related to:
 Legal Status
 Organizational Structure
 Organizational Capacity
 Financial Capacity
Three organizations applied for operating support. Two of the three organizations – RCD and SAHA- submitted sufficient documentation and were certified as CHDOs

2024 Housing Trust Fund Request for Proposals Funding Reservations CONSENT CALENDAR June 24, 2025

The Northern California Land Trust (NCLT)
NCLT is a nonprofit community land trust founded in 1973. NCLT has developed 180 units of affordable housing and 7 commercial units for nonprofits and small businesses.

NCLT has 8 properties in Berkeley. NCLT did not submit sufficient documentation demonstrating that it meets the financial standards required by HUD, so will not be certified as a CHDO for this five-year cycle.

Resources for Community Development
RCD is an experienced nonprofit developer well known to City staff and the community, with a strong portfolio of over affordable housing in Berkeley. RCD recently completed Maudelle Miller Shirek Community. RCD has been a certified Berkeley CHDO since at least 2005, and submitted sufficient documentation to be recertified and eligible for the FY26-FY30 operating support.

Satellite Affordable Housing
SAHA is an experienced nonprofit developer known to City staff and the community.

The Grinnell is the most recent project completed by SAHA. SAHA has also been a certified Berkeley CHDO since at least 2005, and submitted sufficient documentation to be recertified and eligible for the FY26-FY30 operating support.

Staff Recommendation:

Approve multiyear operating funding contracts for Resources for Community Development and Satellite Affordable Housing Associates, starting FY26 and ending FY30, estimated at up to $30,000 per organization per fiscal year.

The amount of CHDO operating funds will fluctuate, based on each year’s HOME allocation to the City. The HOME CHDO operating funds, estimated at up to $30k per year, will be matched with City general funds. Under HUD regulations, the HOME funding is available to a CHDO that is expected to have a HOME-funded project within the two years. Staff will determine which entity will receive the HOME portion and general fund portion each year.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
All renovation projects will incorporate energy-efficient design and upgrades where feasible. New mechanical systems and improvements to building envelopes align with Berkeley’s climate action goals.

RATIONALE FOR RECOMMENDATION
The selected projects serve vulnerable populations and the City funding would help housing providers address critical life safety and deferred maintenance issues. Timely reservation of funds ensures compliance with federal requirements and preserves the City’s affordable housing stock.

2024 Housing Trust Fund Request for Proposals Funding Reservations CONSENT CALENDAR June 24, 2025

ALTERNATIVE ACTIONS CONSIDERED
The City could reduce or delay funding reservations. However, doing so would risk losing HOME funds, delay urgent health and safety repairs, and jeopardize the long- term sustainability of key properties. The HAC and HTF Subcommittee also supported the original staff recommendation for Council to consider allocating additional funds to the HTF from any available sources including Measure U1 to support. However, due to the City’s budget deficit and updated Measure U1 outlook, this recommendation is withdrawn since the funds are not available.

CONTACT PERSON
Lourdes Chang, Senior Community Development Project Coordinator, HHCS, 510-981- 5263
Attachments:
1: Resolution

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

APPROVAL OF THE 2024 HOUSING TRUST FUND REQUEST FOR PROPOSALS

RESERVATIONS
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, there is a great need for affordable and special needs housing in the City of Berkeley as stated in the General Plan Housing Element and the City of Berkeley’s Consolidated Plan; and
WHEREAS, City Council adopted HTF guidelines (the “Guidelines”) as revised on January 19, 2021, and authorized the HTF Program in accordance with the Guidelines; and
WHEREAS, the City issued the 2024 Housing Trust Fund Request for Proposals (RFP) in November 2024 to allocate available local and federal funds to rehabilitation and operating subsidy projects; and
WHEREAS, on May 1, 2025, the Housing Advisory Commission (HAC) recommended that City Council reserve HTF funds for two rehabilitation projects and consider additional allocations to the HTF to support other urgent requests identified through this RFP; and WHEREAS, the HAC also recommended approving multiyear operating support contracts for Satellite Affordable Housing Associates and Resources for Community Development as certified Community Housing Development Organizations (CHDOs) to support their work on City-funded developments.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the Council approves the following funding reservations from currently available Housing Trust Funds:
 Resources for Community Development’s Adeline Street Apartments (3222-24 Adeline) – $2,990,000
 Satellite Affordable Housing Associates’ Ashby Lofts (2909-2919 Ninth) – $2,868,571
BE IT FURTHER RESOLVED that the City Manager or designee be authorized to refinance existing HTF development loans into new loans with terms consistent with the HTF Guidelines.

BE IT FURTHER RESOLVED that the City Council waives Section IV.C.1 of the Housing Trust Fund Guidelines to allow for City funding in excess of 40% of total project costs for projects funded through this RFP.

BE IT FURTHER RESOLVED that as a condition of this funding, housing providers are required to provide information to tenants on City rental assistance programs with any nonpayment eviction notices issued at these properties.

BE IT FURTHER RESOLVED that the Council approves multiyear operating support contracts from FY26 to FY30, estimated at up to $30,000 annually per certified CHDO, for:
 Resources for Community Development
 Satellite Affordable Housing Associates
BE IT FURTHER RESOLVED that the City Manager or designee is authorized to determine the annual CHDO operating award amounts for each organization based on available HOME funds and General Fund match as approved by City Council in each fiscal year’s budget.

BE IT FURTHER RESOLVED 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.

BE IT FURTHER RESOLVED that all rehabilitation loan funds shall be reserved for a period of no more than 24 months from the date of this Resolution, contingent on the developers’ obtaining all required building permits and approvals and securing commitments for full project funding that the City Manager or designee deems sufficient within the reservation period.

BE IT FURTHER RESOLVED that all funding reservations are conditioned upon the completion of the environmental review process, except as authorized by 24 CFR, Part 58, and that should HOME and/or CDBG funds constitute a portion of the funding for any project, a final commitment of HOME and/or CDBG funds shall occur only upon the satisfactory completion of the appropriate level of environmental review and also upon the receipt of approval of the request for release of funds and related certification from the U.S. Department of Housing and Urban Development, when applicable. The funding reservation for any of the HOME and/or CDBG funded projects is conditioned upon the City of Berkeley's determination to proceed with, modify, or cancel the project based on the results of subsequent environmental review under the National Environmental Policy Act.

BE IT FURTHER RESOLVED that the making of each loan shall be contingent on and subject to such other appropriate terms and conditions as the City Manager or designee may establish.

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
June 24, 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: Fiscal Year 2025 - Donations for the Berkeley Meals on Wheels Program

RECOMMENDATION
Adopt a Resolution authorizing the City to accept donations totaling $8,000 for the Berkeley Meals on Wheels program for fiscal year 2025.

FISCAL IMPACTS OF RECOMMENDATION
The donations have been received and deposited into the Fund-Raising Activities Fund (ERMA GL Code 111-51-505-549-2044-000-000-481110) and will be appropriated as part of the Annual Appropriations Ordinance for the Meals on Wheels program in the Aging Services Division of Health, Housing, and Community Services Department.

These donations will support the cost of hourly personnel and operating expenses needed to provide meals to home-bound seniors by the City of Berkeley Meals on Wheels program.

CURRENT SITUATION AND ITS EFFECTS
The Berkeley Meals on Wheels program provides excellent, timely, easily accessible service to the community; particularly the older adult, home-bound community. The Berkeley Meals on Wheels program provides over 60,000 nutritious meals to over 250 seniors each year.

In November 2024, the Meals on Wheels program sent out an annual appeal letter to approximately 600 individuals and businesses. In response to the annual appeal letter, seven donations were received in amounts of $1,000 or above for a total of $8,000.

The individual donors have requested that their donations remain anonymous and include current and former Meals on Wheels clients and family members of clients and staff. Meals on Wheels of Alameda County and Decus Biomedical both made donations of $1,000 each.

BACKGROUND
The City of Berkeley Meals on Wheels program is funded by an annual grant contract with the Alameda County Area Agency on Aging, as well as by client and community donations and the City’s General Fund.

Fiscal Year 2025 Meals on Wheels of Alameda County Donations CONSENT CALENDAR for the Berkeley Meals on Wheels Program June 24, 2025

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The Berkeley Meals on Wheels program packages its meals in compostable containers to reduce landfill waste. The program also offers volunteer bicycle and pedestrian delivery routes.

RATIONALE FOR RECOMMENDATION
Donations will provide the Berkeley Meals on Wheels program with significant financial support that can be directly applied to both personnel and operating expenses for the program.

ALTERNATIVE ACTIONS CONSIDERED
Refusing donations would not be consistent with the City’s efforts to sustain an Age- Friendly Berkeley and is not recommended.

CONTACT PERSON
Oanh Guise, Interim Aging Services Manager, HHCS, (510) 981-5113 Attachments:
1: Resolution

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

FISCAL YEAR 2025 - $1,000 AND ABOVE DONATIONS FOR THE BERKELEY

MEALS ON WHEELS PROGRAM
WHEREAS, the Berkeley Meals on Wheels program sends out an annual appeal letter in November; and
WHEREAS, clients, residents and businesses make donations to support the Meals on Wheels program; and
WHEREAS, Berkeley Meals on Wheels provides over 60,000 nutritious meals to over 250 home-bound seniors each year; and
WHEREAS, these donations will assist in covering personnel costs or providing meals to home-bound seniors; and
WHEREAS, the donations will be deposited into the Fund-Raising Activities Fund (ERMA Budget Code 111-51-505-549-2044-000-444-612990-) and will be appropriated as part of the First Amendment to the FY 2025 Annual Appropriations Ordinance.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that seven donations, totaling $8,000 be deposited to support the personnel and operational costs of meal provision to home-bound seniors by the City of Berkeley Meals on Wheels program.

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

CONSENT CALENDAR
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Scott Gilman, Director, Health, Housing & Community Services Subject: Shelter Plus Care Program Renewal Grants

RECOMMENDATION
Adopt a Resolution authorizing the City Manager or designee to receive up to the maximum grant award for the following two Shelter Plus Care grants and to execute any resultant agreements and amendments.
a. Alameda County Shelter Plus Care grant in a not-to-exceed amount of $1,022,704 to provide tenant-based rental assistance to individuals who are chronically homeless and disabled from March 1, 2025, through February 28, 2026; and
b. U.S. Department of Housing and Urban Development (HUD) Shelter Plus Care grant in the amount of $7,305,893 for Supportive Housing Collaborative Project (SHC) for the period September 1, 2025, through August 31, 2026.

FISCAL IMPACTS OF RECOMMENDATION
The Department of Health, Housing, and Community Services’ Housing and Community Services Division (HHCS/HCS) has administered Shelter Plus Care grants for many years as part of the City’s strategy to end homelessness. The grant via Alameda County provides funding for rental subsidies, and the grant from HUD provides funding for rental subsidies and some supportive services provided by Berkeley’s Aging Services Division. Grant revenues are deposited and expensed out of Funds 347 (Shelter+Care HUD), and 348 (Shelter+Care County), respectively. In the past, the HUD grant fully covered Aging Services staffing costs to serve 53 households. Due to increased staffing costs, the grant may only cover 74% of the staffing costs to serve these households.

HHCS Staff is requesting a budget modification from HUD to increase funding for supportive services and help close the gap for this and future years. For FY26, HHCS has identified alternate one-time sources from other special funds with frozen positions.

HUD allows up to 10% of each grant to be used to administer the rental subsidies, which supports HHCS/HCS’s grant-related administrative activities.

The Shelter Plus Care program also requires a 25% match, which is met through a range of services provided by Berkeley Mental Health, Aging Services Division, and five

Shelter Plus Care Program Renewal Grants CONSENT CALENDAR June 24, 2025

community-based agencies that provide tenancy sustaining services. Because match sources are somewhat in flux and impacted by vacant positions, staff are tracking the match requirements closely and looking for new resources to ensure we fully leverage all federal funds.

CURRENT SITUATION AND ITS EFFECTS
Following a national competition, HUD and Alameda County awarded funding to the City of Berkeley to renew two Shelter Plus Care grants, which provide rental assistance to a minimum of 267 households annually. The City’s Shelter Plus Care Program provides federal rental subsidies that are matched by locally provided services to help transition formerly homeless, disabled individuals and families into permanent, supportive housing. These grants currently provide tenant-based rental subsidies for approximately 290 households to rent from private property owners in Berkeley, Albany, Alameda, Oakland, and Emeryville.

Each participant in the program is offered Tenancy Sustaining Services with the goal of housing stability. These services include case management and linkages to supportive services that may be needed. Many of these services are provided by Berkeley Mental Health and Aging Services. Additionally, the City funds five community agencies Bay Area Community Services (BACS); Insight Housing; Building Opportunities for Self- Sufficiency (BOSS); Lifelong Medical Care (LLMC); and the Women’s Daytime Drop-In Center (WDDC).

BACKGROUND
Since 1995, the City of Berkeley Shelter Plus Care Program has been an important component of the continuum of housing available to disabled homeless families and individuals. The Shelter Plus Care Program is funded by HUD and the County of Alameda to provide housing subsidies for people who are homeless with a disability.

The program combines a rental subsidy with ongoing supportive services to assist chronically homeless individuals and families in obtaining and maintaining housing.

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

RATIONALE FOR RECOMMENDATION
Acceptance of the two Shelter Plus Care renewal grants will assure that approximately 290 homeless and disabled individuals and families in Berkeley continue to benefit from receiving ongoing rental assistance and the supportive services necessary to retain stable housing.

Shelter Plus Care Program Renewal Grants CONSENT CALENDAR June 24, 2025

ALTERNATIVE ACTIONS CONSIDERED
No alternative actions were identified in place of this funding that would be consistent with the City’s goal of housing the most vulnerable members of the community.

CONTACT PERSON
Yesenia Lopez, Interim Community Services Specialist III, HHCS, 510-981-5120 Attachments:
1: Resolution

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

SHELTER PLUS CARE PROGRAM RENEWAL GRANTS
WHEREAS, the U.S. Department of Housing and Urban Development and the County of Alameda have awarded the City of Berkeley Health, Housing & Community Services Department the following two Shelter Plus Care grants:

1. $1,022,704 for County of Alameda Collaborative (AC Collaborative) for the period March 1, 2025 through February 28, 2026; and

2. $7,305,893 for Supportive Housing Collaborative Project (SHC) for the period September 1st, 2025 through August 31st, 2026; and
WHEREAS, the combined total for the two grants is an estimated $8,328,597 to provide direct rental assistance and supportive services to 53 households; and WHEREAS, approximately 10% of the SHC grant is available to support the Health, Housing, and Community Services Department’s grant-related administrative activities (For the HUD grants budget, Fund 347 (Shelter+Care)); and WHEREAS, these Shelter Plus Care grants are an annual renewal of an existing program that provides rental subsidies and ongoing support services to approximately 290 homeless and disabled individuals and families in Berkeley; and WHEREAS, the rent subsidies provided through the City’s Shelter Plus Care Program are partially matched by services provided by the City’s Mental Health Division and Aging Services Division and five community-based agencies that assist formerly homeless, disabled individuals and families in retaining stable housing.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager or designee is hereby authorized to receive funds up to the maximum grant award, and execute any agreements and amendments resulting from the grants awarded from the U.S. Department of Housing and Urban Development and the County of Alameda for the City’s Shelter Plus Care Program estimated to be as follows: 1) $1,022,704 for County of Alameda Collaborative (AC Collaborative) for the period March 1, 2025 through February 28, 2026; and 2) $7,305,893 for Supportive Housing Collaborative Project (SHC) for the period September 1, 2025 through August 31, 2026.

A signed copy of said documents, agreements and any amendments will be kept on file in the Office of the City Clerk.

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

CONSENT CALENDAR
JUNE 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Janelle Rodrigues, Director of Human Resources Chaka Young, Employee Relations Manager
Subject: Contract: HR Acuity, LLC for Case Management and Employee Relations Software

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32100046 with HR Acuity, LLC for case management and employee relations software, for a total amount not to exceed $189,000 and extending the contract term to June 30, 2028.

FISCAL IMPACTS OF RECOMMENDATION
The contract amendment with HR Acuity, LLC is amended through the end of fiscal year 2028.

Funding for the amendment and additional years will be included in the General Fund budget code 011- 34-343-000-0000-000-412-612990.

Fiscal Year Annual Rate
Contract Amount (FY 2022-2025) $ 189,000
FY 2025 – 2026 $ 62,900
FY 2026 – 2027 $ 62,900
FY 2027 – 2028 $ 62,900
Total New Contract Amount $ 189,000

CURRENT SITUATION AND ITS EFFECTS
The City of Berkeley is a full-service city and is responsible for properly recording and maintaining case management records pertaining to employee leaves, ADA accommodations, disciplinary actions, and union grievances to ensure consistent application and compliance with applicable laws, regulations, and collective bargaining agreements.

On October 1, 2020, the City entered into Contract No. 32100046 with HR Acuity, LLC to procure its Human Resource (HR) case management software to centralize and better manage its case records.

The original contract was not to exceed $50,000. Since the inception of the HR Acuity software, the HR Department has realized the benefits of the system, and its use has been extended to the City Attorney’s Office, as well as the Library.

Contract: HR Acuity, LLC for HR Case Management CONSENT CALENDAR and Employee Relations Software June 24, 2025
2 The HR Department would like to continue the use of the HR Acuity software; therefore, a contract amendment is necessary to continue this contract through FY2027-2028 with additional funding.

BACKGROUND
HR Acuity, LLC is a comprehensive HR case management and employee relations software which is utilized by the Human Resources Department, the City Attorney’s Office, and the Library to properly track, manage, and maintain records regarding leaves, discipline, grievances, equal employment opportunity (EEO) complaints, and ADA accommodation matters for consistency in case management and compliance with laws/regulations.

HR Acuity’s software as a service (SaaS) technology with built-in templates and reporting mechanism allows employers to conduct fair investigations according to best practices, as well as uncover trends and patterns through forward-looking data and analytics. HR Acuity helps document, track, and manage requests for leaves and accommodations, employee performance and behavioral issues, and investigations into higher risk issues, such as harassment and discrimination.

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

RATIONALE FOR RECOMMENDATION
HR Acuity, LLC has provided a robust platform through which various units within the Human Resources Department can document, track, and manage employee relations (e.g., discipline matters), labor relations (e.g. grievances), EEO investigations, and leave requests. The software is utilized by users outside of the HR Department as well, including the City Attorney’s Office and the Library.

ALTERNATIVE ACTIONS CONSIDERED
None

CONTACT PERSON
Janelle Rodrigues, Director of Human Resources (510-981-6818) Chaka Young, Employee Relations Manager (510-981-6821)
Attachment:
1: Resolution

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

CONTRACT: HR ACUITY, LLC FOR CASE MANAGEMENT AND EMPLOYEE RELATIONS SOFTWARE WHEREAS, the HR Acuity case management software allows staff the use of modernized and evolving technology to document employee performance and behavioral issues, and conduct investigations into higher-risk issues, such as harassment and discrimination, and maintain proper records of leaves and accommodations;
WHEREAS, on October 1, 2020, the City entered into Contact No. 32100046 with HR Acuity, LLC to procure its HR case management software to centralize and better manage its case records; WHEREAS, amending the existing contract with HR Acuity, LLC to continue the use of its HR case management software is essential for the Human Department; WHEREAS, funds are available and will be budgeted in future fiscal years in an amount not to exceed $189,000 through June 30, 2028, in budget code 011-34-343-000-0000-000-412-613130.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to amend Contract No. 32100046 with HR Acuity, LLC for use of their HR case management software, for a total amount not to exceed $189,000 and extending the contract term through June 30, 2028. A record of signature copy of said contract and any amendments are to be on file in the Office of the City Clerk.

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

CONSENT CALENDAR
JUNE 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Janelle Rodrigues, Director of Human Resources Chaka Young, Employee Relations Manager
Subject: Contract: Innovative Claim Solutions for Third Party Claims Administration of City’s Workers’ Compensation Program

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute and implement a contract and any amendments with Innovative Claim Solutions, Inc. (ICS), to provide workers’ compensation third-party administrative services in an amount not to exceed $1,888,570 for the period July 1, 2025, through June 30, 2028.

FISCAL IMPACTS OF RECOMMENDATION
The costs for third-party administrative services provided by ICS are a fixed fee of $605,000 for fiscal year 2026; $629,200 for fiscal year 2027; and $654,370 for fiscal year 2028.

Fiscal Year Monthly Charge Annual Charge
2026 $50,416.66 $605,000
2027 $52,433.33 $629,200
2028 $54,530.83 $654,370
Expenditures for this contract will be paid out of the Workers’ Compensation Self-Insurance Fund, budget code 676-00-000-000-0000-000-000-102127, and funded as part of the overhead rate assessed for workers’ compensation rates charged to City departments.

CURRENT SITUATION AND ITS EFFECTS
The City of Berkeley is permissibly self-insured by the State of California, Department of Industrial Relations, to provide statutory required workers’ compensation benefits to injured workers. The City has contracted with ICS for workers’ compensation administrative services since April 1, 2000. The current contract with ICS for workers' compensation third-party administrative services expires on June 30, 2025.

The new contract with ICS would be effective July 1, 2025, for a total amount not to exceed $1,888,570.

BACKGROUND
On February 4, 2010, the Human Resources Department issued a Request for Proposal (RFP) for workers’ compensation third-party administrative services, Specification No. 10-10486-C to firms that provide these types of services.

Contract: Innovative Claim Solutions for Third Party Claims Administration CONSENT CALENDAR of City’s Workers’ Compensation Program June 24, 2025
2 On May 18, 2010, the City Council adopted Resolution No. 64,875–N.S., that authorized the City Manager to execute and implement a contract and any amendments for workers’ compensation third- party administrative services with ICS.

The City has contracted with ICS for workers’ compensation administrative services since April 1, 2000.

The current contract with ICS for workers' compensation third-party administrative services expires on June 30, 2025.

On July 22, 2024, the Human Resources Department issued a Request for Proposal (RFP) Specification No.24-11669-C, for workers' compensation third-party administrative services to firms that provide workers’ compensation claims services. The City received nine (9) responses from prospective bidders to the RFP. A selection committee made up of members from the Human Resources Department conducted an evaluation and chose Innovative Claim Solutions (ICS) as the best services to meet the City’s objectives at a reasonable price.

Innovative Claim Solutions has been providing claims management services for over 20 years. The third- party claim management services for a workers’ compensation program consist of responsibility for claims management including, but not limited to, approval of claims based upon whether an injury arose out of the course and scope of employment; denial of claims that did not arise out of the course and scope of employment; or delay of claim decisions in order to obtain additional information or evidence before a determination can be on a claim. The third-party administrator procures services and pays bills incurred by claims for the provision of benefits to injured employees. These expenses include, but are not limited to, medical; legal; temporary and permanent disability payments; and future medical needs of injured employees.

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

RATIONALE FOR RECOMMENDATION
A committee evaluated all vendors based on their responsiveness to the RFP, the price and associated costs to the City, ability to meet requirements stated in the scope of services, and references. As a result of this process, the selection committee unanimously recommended ICS to provide workers’ compensation third-party administrative services. Innovative Claim Solutions has provided superior quality claim management services throughout the terms of the contract and consistently applies professionalism, expertise, and superior customer service in their claim management practices.

ALTERNATIVE ACTIONS CONSIDERED
None

CONTACT PERSON
Janelle Rodrigues, Director of Human Resources (510-981-6818) Chaka Young, Employee Relations Manager (510-981-6821)
Attachment:
1: Resolution

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

CONTRACT: INNOVATIVE CLAIM SOLUTIONS FOR THIRD-PARTY CLAIMS ADMINISTRATION OF THE CITY’S WORKERS’ COMPENSATION PROGRAM
WHEREAS, the City of Berkeley is certified by the State of California Department of Industrial Relations under Labor Code Sections 3700 and 3705 to self-insure for providing statutorily required workers’ compensation benefits to its employees; and
WHEREAS, on September 13, 2022, the Berkeley City Council adopted Resolution No. 70,507-N.S., that authorized the City Manager to amend the contract with ICS for third-party administrative services for the City’s workers’ compensation program by extending the term through June 30, 2025.

WHEREAS, on July 22, 2024, the City issued a Request for Proposal (RFP) for workers’ compensation third-party administrative services, of which nine (9) firms submitted proposals; and WHEREAS, based on an evaluation of the proposals submitted and discussion among the committee and based on all of the selection criteria used to evaluate the proposals and the performance of the proposers through an interview process, it is recommended that the firm of Innovative Claim Solutions, Inc. be selected to continue provision of third-party administrative services for the workers’ compensation program.

NOW THEREFORE, BE IT RESOLVED that the Council of the City of Berkeley hereby authorizes the City Manager to execute a contract and any amendments with Innovative Claim Solutions, Inc. for third- party administrative services for the City’s workers’ compensation program for the period of July 1, 2025, to June 30, 2028 in an amount not to exceed $1,888,570. All expenses will be paid from the Workers’ Compensation Self-Insurance Fund budget code, (676-00-000-000-0000-000-000-102127). A record signature copy of said contract and any amendments are to be on file in the Office of the City Clerk.

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

CONSENT CALENDAR
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Janelle Rodrigues, Director of Human Resources Chaka Young, Employee Relations Manager
Subject: Contract: Downtown Berkeley YMCA Fitness Center Memberships for City Employees

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute a contract and any amendments with the Downtown Berkeley YMCA in the amount of $179,136 for fitness center memberships for City employees for the period July 1, 2025, through June 30, 2026.

FISCAL IMPACTS OF RECOMMENDATION
The previous contract for fiscal year 2025 was $161,280, which represents 280 members at $48 per member. For fiscal year 2026, the number of memberships has increased from 280 members to 311 members. The cost of the fiscal year 2026 contract is budgeted at $179,136, which represents the City’s monthly cost of membership ($48) for 311 members for 12 months. The fiscal year 2026 contract represents an increase of $17,856 from the fiscal year 2025 contract. Although the contract cost of $179,136 for fiscal year 2026 is based on 311 memberships, this amount is a flat fee for the duration of the fiscal year regardless of whether memberships increase or decrease during the fiscal year. The fiscal year 2026 budget includes funding for this contract in fringe benefit accounts in department budgets that is collected and paid out from the Payroll Deduction Trust Fund (Fund 013). The General Fund will cover approximately $102,107.52 of the contract cost and the remaining $77,028.48 will be covered by other funds.

CURRENT SITUATION AND ITS EFFECTS
The current agreement began on July 1, 2024, and ends on June 30, 2025. A new contract is needed for fiscal year 2026, which will continue the memberships for City employees and Legislative Assistants at a low cost.

Contract: Downtown Berkeley YMCA for Fitness Center CONSENT CALENDAR Memberships for City Employees June 24, 2025

BACKGROUND
Since 1989, the City has had an agreement with the YMCA to provide low-cost fitness memberships for City employees and officials.

The City’s labor contracts require the City to pay 75% of the total membership cost and employees pay the remaining 25%. Beginning on July 1, 2024, the full membership cost was $64 per month (the City’s share at $48 per month and the employee’s share at $16 per month). For fiscal year 2026, the membership cost will remain $64 per month.

This benefit is included in all the collective bargaining agreements and would terminate at the same time as the longest union contract containing the benefit. The City would need to undergo the meet and confer process with the represented employee groups if it wishes to eliminate this benefit.

The Downtown Berkeley YMCA contract is a Strategic Plan Priority, advancing our goal to attract and retain a talented and diverse City government workforce.

ENVIRONMENTAL SUSTAINABILITYAND CLIMATE IMPACTS
There are no identifiable environmental impacts or opportunities associated with the subject of this report.

RATIONALE FOR RECOMMENDATION
The City has had an agreement with the YMCA and represented employee groups to provide low-cost fitness memberships for City employees and officials. City contracts for personal services over $50,000 require authorization from the City Council before the City Manager can execute the contract.

ALTERNATIVE ACTIONS CONSIDERED
None

CONTACT PERSON
Janelle Rodrigues, Human Resources Director
Chaka Young, Employee Relations Manager
Attachments:
1: Resolution

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

CONTRACT: DOWNTOWN BERKELEY YMCA FOR LOW-COST FITNESS CENTER

MEMBERSHIPS FOR CITY EMPLOYEES
WHEREAS, the City has had an agreement with the Downtown Berkeley YMCA to provide low-cost fitness memberships for City employees and legislative assistants; and WHEREAS, the City’s labor contracts require the City to pay 75 percent of the total membership cost; and
WHEREAS, the current agreement began on July 1, 2024, and ends on June 30, 2025, and a new contract is proposed for fiscal year 2026; and WHEREAS, the fiscal year 2026 budget includes funding for this contract in fringe benefit accounts in department budgets that is collected and paid out from the Payroll Deduction Trust Fund (Fund 013).

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that that the City Manager is authorized to execute a contract and any amendments with the Downtown Berkeley YMCA for low-cost fitness center memberships for City of Berkeley employees and legislative assistants for the period July 1, 2025, to June 30, 2026, in the amount not to exceed $179,136. A record signature copy of said contract and any amendments to be on file in the Office of the City Clerk.

Internal
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
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Kevin Fong, Director, Information Technology Subject: Contract No. 32500005 Amendment: Accela, Inc. for Environmental Health Software

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32500005 with Accela, Inc. (“Accela”) to increase spending authority by $90,200 for Environmental Health (“EH”) software for a total amount not to exceed $1,414,393 for the period of July 1, 2024 to June 30, 2027.

FISCAL IMPACTS OF RECOMMENDATION
Additional funding in the amount of $90,200 is available in the Fiscal Year 2026 and 2027 Alameda County Vector Grant fund. Spending for software in future years is subject to Council approval of the proposed city-wide budget and annual appropriations ordinances.

Fiscal Year Amount Fund Source
FY 2026 $44,000 Alameda County Vector Grant, Fund 325
FY 2027 $46,200 Alameda County Vector Grant, Fund 325

CURRENT SITUATION AND ITS EFFECTS
The EH division of the Health, Housing and Community Services (“HHCS”) department currently uses Accela’s Envision Connect product to manage its permitting, inspection and billing functions. The current version of this product is antiquated, and this product is scheduled for “End-of-Life” by Accela effective December 31, 2025 and will no longer be supported.

EH, in collaboration with Information Technology (“IT”), met with Accela to evaluate their upgraded cloud-based platform. The team found that Accela’s cloud-based system offers a significantly enhanced and automated user experience that streamlines business operations.

With this upgraded platform, customers will be able to apply for licenses, submit payments, and access reports entirely online. City staff will also gain mobile functionality,

Internal
Accela for Environmental Health Software CONSENT CALENDAR June 24, 2025

enabling them to perform inspections in the field using tablets. Inspection results and any required corrections can be entered in real time, allowing for faster turnaround. In addition, the system will automate internal workflows and improve reporting capabilities, providing greater visibility into day-to-day operations. Overall, this solution marks a substantial improvement over the legacy Envision Connect system, offering increased efficiency, transparency, and service quality for both staff and the public.

As the City already contracts with Accela for permitting and business licensing, the City is able to attain attractive pricing and add the cloud-based EH system to the suite of applications it already owns.

This upgrade aligns with the City’s strategic goals to “be a customer-focused organization that provides excellent, timely, easily-accessible service and information to the community” as well as to “provide state-of-the-art, well-maintained infrastructure, amenities, and facilities”.

BACKGROUND
In 2008, with Council approval, HHCS acquired the Decade Envision Connect system to support EH operations. Over the years, the system has been actively used by staff and received multiple upgrades and enhancements. It effectively met the department’s needs for an extended period.

In 2019, Accela acquired the Decade Envision Connect system and continued to provide support. However, over the past couple of years, the platform has been slowly phased out as part of Accela’s shift to focus towards a modern, cloud-based solution.

Partially due to the antiquity of the legacy Envision Connect system, the EH division has struggled over the past few years to perform timely inspections, accurate reporting, and accurate updates into the system. This culminated in a City Auditor report in July of 2024 that produced nine recommendations, one of which includes a new “database” platform that will be able to perform inspections, produce accurate reports, and provide easily accessible health certificate data online.

In July of 2024, the City executed a new contract with Accela for their new cloud-based system for permitting and business licenses for a period of three years.

In the fall of 2024, Accela announced that the it will “End-of-Life” its legacy Envision Connect product and no longer provide support as of December 31, 2025.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The ability to apply for, purchase, and receive permits to operate online—without needing to travel to downtown Berkeley—will help reduce greenhouse gas emissions. Additionally, using tablets in the field will allow staff to enter real-time updates directly into the system, eliminating the need for paper forms and return trips to the office for data entry.

Internal
Accela for Environmental Health Software CONSENT CALENDAR June 24, 2025

RATIONALE FOR RECOMMENDATION
Accela is a leader in the licensing and permitting market and the City has successfully used the Accela platform for permitting and licensing for years. EH staff require a new, modern system to manage permitting, inspection and billing functions. The current legacy version of the product is antiquated, and is scheduled for “End-of-Life” by Accela effective December 31, 2025 and will no longer be supported. City IT staff have extensive experience with the Accela platform suite and will be able to properly support EH staff with this upgrade.

ALTERNATIVE ACTIONS CONSIDERED
The City considered other alternative software platforms, however, given that the City already uses Accela and is familiar with the software platform suite combined with the fact that Accela is a top provider and used throughout California, staff felt it was in the best interest to move forward with the Accela cloud platform with a simple expansion of the system.

CONTACT PERSON
Kevin Fong, Director, Information Technology, 510-981-6541 Attachments:
1: Resolution

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

CONTRACT NO. 32500005 AMENDMENT: ACCELA, INC. FOR ENVIRONMENTAL

HEALTH SOFTWARE
WHEREAS, the Environmental Health (“EH”) division of the Health, Housing and Community Services (“HHCS”) department currently uses Accela’s Envision Connect product to manage its permitting, inspection and billing functions; and WHEREAS, the current version of this product is antiquated, and scheduled for “End-of- Life” with no future support effective December 31, 2025; and WHEREAS, the City already contracts with Accela for permitting and business licensing and is able to attain favorable pricing and add the modern cloud-based EH system to the suite of applications it already owns; and
WHEREAS, Accela’s upgraded, cloud-based EH system offers a significantly enhanced and automated user experience for EH that streamlines business operations; and WHEREAS, funding for this software is available in the HHCS Alameda County Vector Grant fund in the amount of $40,000 for FY 2026 and $46,200 for FY 2027.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to execute an amendment to Contract No. 32500005 with Accela, Inc. to increase spending authority by $90,200 for Environmental Health software for a total amount not to exceed $1,414,393 for the period of July 1, 2024 to June 30, 2027

Internal
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
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Kevin Fong, Director, Information Technology Subject: Contract No. 31900174 Amendment: Carahsoft Technology Corporation Using General Services Administration (“GSA”) Schedule for Website Hosting, Software, and Related Services

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 31900174 to increase spending authority with Carahsoft Technology Corporation (“Carahsoft”) for website hosting services, core infrastructure software, and related services utilizing pricing established by the GSA, for $700,000 for a total not to exceed amount of $2,378,953 for the period May 15, 2019 to June 30, 2027.

FISCAL IMPACTS OF RECOMMENDATION
Additional funding in the amount of $700,000 is available in the Information Technology (“IT”) department’s Fiscal Year 2026 and 2027 IT Cost Allocation Fund 680. Spending for software and services in future years is subject to Council approval of the proposed city-wide budget and annual appropriations ordinances.

Fiscal Year Amount Fund Source
FY 2026 $350,000 IT Cost Allocation, Fund 680
FY 2027 $350,000 IT Cost Allocation, Fund 680

CURRENT SITUATION AND ITS EFFECTS
The City currently utilizes Carahsoft as a value-added reseller for website data center hosting, software licensing, and technical support for several critical enterprise applications. These include essential platforms such as website hosting, ServiceNow, Zoom, and DocuSign, which play a vital role in the City’s daily operations.

The website hosting services provided through Carahsoft offer high availability and geo-redundancy, ensuring that online services remain reliable and accessible.

Enterprise applications procured through Carahsoft significantly enhance staff productivity and help streamline key business processes across departments.

Internal
Carahsoft Technology Corporation using GSA CONSENT CALENDAR for Website Hosting, software, and services June 24, 2025

To continue supporting these core services, the City is seeking additional spending authority to extend its contract with Carahsoft. Carahsoft is a GSA partner, offering competitively-bid pricing through cooperative purchasing agreements, allowing the City to obtain enterprise-level solutions at discounted rates for local government.

This request aligns with the City’s Strategic Plan Priority to deliver state-of-the-art, well-maintained infrastructure, amenities, and facilities.

BACKGROUND
In 2019, through Resolution No. 68,868-N.S., IT partnered with Carahsoft to procure data center hardware and software technologies. Since that time, the City has continued to work with Carahsoft to support a range of critical systems that are essential to daily operations.

Carahsoft provides key technology services and applications that include public website hosting, which serves as a primary platform for communicating with and serving the community. In addition, Carahsoft supplies tools for monitoring the City’s network infrastructure, the ServiceNow platform for IT ticketing and change management, and Zoom for virtual communications—including public City Council meetings. These systems are foundational to the City’s ability to operate efficiently and effectively, both internally and in its interactions with the public.

By utilizing GSA pricing schedules, the City can take advantage of pre-negotiated prices, economies of scale, and increased efficiencies.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The services and technologies procured through Carahsoft help streamline business processes, minimize paper usage, and enable more efficient data exchange with the public. For instance, website hosting provides easy online access to resources and redirects users to online payment options, reducing vehicle traffic into downtown Berkeley. Additionally, tools like Zoom support remote meetings, eliminating the need for in-person travel and contributing to lower carbon emissions.

RATIONALE FOR RECOMMENDATION
Carahsoft is a reliable partner that has successfully worked with the City for six years.

Leveraging the GSA purchasing channel through Carahsoft ensures the City receives the best pricing possible.

ALTERNATIVE ACTIONS CONSIDERED
There were no alternative actions considered as the City requires these critical services and applications to effectively communicate with the community and perform daily business.

Internal
Carahsoft Technology Corporation using GSA CONSENT CALENDAR for Website Hosting, software, and services June 24, 2025

CONTACT PERSON
Kevin Fong, Director, Information Technology, (510) 981-6541 Attachments:
1: Resolution

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

CONTRACT AMENDMENT: CARAHSOFT TECHNOLOGY CORPORATION USING GENERAL SERVICES ADMINISTRATION (“GSA”) SCHEDULE FOR WEBSITE

HOSTING, SOFTWARE, AND RELATED SERVICES
WHEREAS, the City uses Carahsoft Technology Corporation for website hosting services, critical core software and related services; and WHEREAS, by utilizing existing GSA pricing schedules, the City of Berkeley is able to take advantage of competitively-bid, pre-negotiated prices, economies of scale, and increased efficiencies; and
WHEREAS, funding in the amount of $700,000 is available in the Information Technology (“IT”) department’s Fiscal Year (FY) 2026 and 2027 IT Cost Allocation and spending for website hosting services, software, and related support services in future years is subject to Council approval of the proposed citywide budget and annual appropriations ordinances;
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to execute an amendment to increase spending authority with Carahsoft Technology Corporation for website hosting services, core infrastructure software, and related services utilizing pricing established by the GSA for $700,000 for a total not to exceed amount of $2,378,953 for the period May 15, 2019 to June 30, 2027.

Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 • Tel: 510.981.6700 • TDD: 510.981.6903 • Fax: 510.981.6710 E-mail: [email protected] Website : http://www.CityofBerkeley.info/Manager

CONSENT CALENDAR
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Scott Ferris, Director, Parks Recreation & Waterfront Subject: Contract No. 32300210 Amendment: Pacific Site Management for On-Call Vegetation and Reduction Services

RECOMMENDATION
Adopt a resolution authorizing the City Manager to amend contract No. 32500210 with Pacific Site Management for as-needed vegetation management, increasing the amount by $300,000 for an amended total amount not to exceed $900,000.

FISCAL IMPACTS OF RECOMMENDATION
Funding for this contract amendment of $300,000 is subject to appropriation in the FY 2026 budget in program code “1001- Fire Fuel Management” that is allocated from Fund 011.

CURRENT SITUATION AND ITS EFFECTS
The City currently has a contract with Pacific Site Management to perform vegetation management throughout the city on the public right-of-way, street medians, pathways, and in public parks (No. 32300210). To-date, staff has identified additional areas that require fuel reduction to ensure public safety during the fire season. A contract amendment for this work requires Council approval.

BACKGROUND
In February 2023, a Request for Proposal (RFP) was issued seeking qualified firms to provide landscape vegetation management on an on-call basis. The City determined that Pacific Site Management was a qualified firm and executed contract No. 32300210 in the amount of $600,000 for a three-year period. To-date, the contractor has provided professional services in a detailed and timely manner, most recently at Glendale La Loma Park.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
Chapter 1 of the City’s Climate Action Plan acknowledges that California will experience a rise in wildfires due to climate change. This program preserves natural habitat by

Contract Amend: Pacific Site Management – Vegetation Management CONSENT CALENDAR June 24, 2025

removing unwanted invasive plant species and vegetative debris that are recycled and converted into usable compost. This services contract is an essential component in the proper maintenance of the City’s open spaces.

RATIONALE FOR RECOMMENDATION
Staff have identified multiple areas in various City parks, along the public right of way, and other landscaped areas that need hazardous vegetation removal in order to ensure public safety during the fire season. The City does not have the in-house labor or equipment resources to complete this work.

Alternative Actions Considered
None

CONTACT PERSON
Bruce Pratt, Parks Superintendent, 981-6632
Melissa Parker, Senior Landscape Gardener Supervisor, 981-6684 Attachments:
1: Resolution

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

CONTRACT: 32300210 AMENDMENT WITH PACIFIC SITE MANAGEMENT FOR ON-

CALL VEGETATION MANAGEMENT AND REDUCTION SERVICES
WHEREAS, on June 9, 1992, the City Council of the City of Berkeley authorized the creation of the Fire Fuel Management Program for public properties in response to the Oakland Hills Firestorm Disaster of October 1991; and
WHEREAS, the program objectives are to remove hazardous vegetation accumulations and to manage other vegetation in high-risk areas of City-owned parks, pathways, and landscaped areas. The City does not have the resources to accomplish this work using in-house staff, and therefore uses contracted services; and WHEREAS, on February 2, 2023, to prepare for a new contract for these services, the City conducted a competitive Request For Proposal (RFP) process to solicit proposals for the removal of hazardous vegetation accumulations and to manage other vegetation in high-risk areas of City-owned parks, pathways, and landscaped areas (Specification No. 23-11560-C); and
WHEREAS, on March 14, 2023, the City received two (2) proposals, which were reviewed by staff; and
WHEREAS, staff determined that Pacific Site Management met the criteria described in the RFP and executed contract number 32300210 in the amount of $600,000 for on-call services over a three year period; and
WHEREAS, funding for this contract amendment of $300,000 is subject to appropriation in the FY 2026 budget in program code “1001- Fire Fuel Management” that is allocated from Fund 011.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager or his designee is hereby authorized to execute an amendment to Contract No. 32300210 with Pacific Site Management for on-call landscape vegetation management services, increasing the amount by $300,000 for an amended total contract amount not to exceed $900,000.

Internal
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
June 24, 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: Authorize the City Manager to Accept Metropolitan Transportation Commission Transit Oriented Communities (TOC) Planning Grant

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to accept the Metropolitan Transportation Commission Transit Oriented Communities (MTC TOC) grant in the amount of $400,000 for the Ashby BART Station Access Plan.

FISCAL IMPACTS OF RECOMMENDATION
None. No City matching funds are required to accept this grant.

CURRENT SITUATION AND ITS EFFECTS
The work funded by this grant (“Ashby BART Station Access Plan”) is part of a larger Strategic Plan Priority Project to develop Transit Oriented Development (TOD) at Ashby BART, advancing the City’s goal to create affordable housing and housing support service for its most vulnerable community members.

The Ashby BART TOD Exchange Agreement (approved by Council in December 2024 and executed by the City and BART in January 2025) states that future TOD will require substantial investments in public infrastructure, such as the reconfiguration of Adeline Street, Woolsey Street, Ashby Avenue, and Martin Luther King Junior Way, plaza improvements along Adeline Street, and extensions of the plaza to connect to the new development. Conceptual plans and potential funding strategies for these improvements were approved by City Council as part of the following:
 Adeline Corridor Specific Plan (2020)
 Adeline at Ashby BART Conceptual Design (2022)
 Ashby BART TOD Exchange Agreement (2024)
In June 2024, the City secured and accepted grant funding from the Alameda County Transportation Commission to advance preliminary engineering for the redesign of Adeline Street, between Ashby Avenue and the border with the City of Oakland, based

Internal
Accept MTC Planning Grant CONSENT CALENDAR
June 24, 2025

on concepts previously approved by the City Council1. The MTC TOC Planning Grant will complement this work by funding urban design and programming of the new, large plaza resulting from the Adeline Street roadway reconfiguration, and a station-specific access plan that considers the (yet to be developed) design concept for the Ashby BART site. It is important for the City to advance the design of the Adeline Street improvements, and in particular the Adeline Plaza at Ashby BART, in order to be well- positioned to apply for upcoming opportunities for capital grant funding (e.g. “One Bay Area Grant” (OBAG) 4 anticipated in 2027).

Specifically, the MTC TOC grant-funded project (Ashby BART TOD Station Access Plan) will:
 Develop urban design and programming options for the new plaza that would result from the proposed “road diet” for Adeline Street, from four lanes to two lanes, and a new plaza along the western side of Adeline Street that is intended to be the future home of the Berkeley Flea Market and other public programming.  Evaluate current and future access needs for the station, the impact of the proposed developments on those needs, and propose solutions to ensure safe and efficient access to the Ashby BART Station. Since the development will reduce BART rider parking from 535 to a maximum of 85 spaces, the study will prioritize identifying viable transportation options for customers who historically relied on station parking. Once the selected Developer has submitted a conceptual development plan to BART for the Ashby West Lot, a second phase of the Station Access Plan will evaluate the ability of the plan to accommodate access needs, with consideration to the overall financial feasibility of the TOD project, potential grant and other subsidy sources, and accommodation of space for long term improvements that may not be made as part of the TOD.  Include additional engagement that focuses on specific disadvantaged communities’ needs, such as the disabled community served by the adjacent Ed Roberts Campus, the Berkeley Flea Market vendors and Board, and the South Berkeley Black community.

MTC’s TOC Policy seeks to support not only transit ridership, but also the communities around transit stations and along transit corridors. The Policy seeks to create places where Bay Area residents of all abilities, income levels, and racial and ethnic backgrounds can live, work, and access services like education, childcare, and healthcare. The TOC Policy is based on four policy areas related to minimum residential and commercial densities for new development near transit stations: housing and commercial development; preservation and protection/anti-displacement; parking management; and transit station access and circulation. Future OBAG funding cycles will consider prioritizing investments in areas that support the TOC Policy. Over the last several months, MTC has solicited feedback on its draft compliance criteria and 1 Resolution No. 71,418-N.S., June 25, 2024.

Internal
Accept MTC Planning Grant CONSENT CALENDAR
June 24, 2025

assisted in evaluating compliance. Based on City staff’s preliminary evaluation, the City of Berkeley is largely in compliance with MTC’s TOC Policy. City staff will continue to monitor the TOC Policy as MTC finalizes the compliance criteria to complete the City’s evaluation and assess what, if any, additional steps are needed to achieve compliance and put the City in the best position to apply for future OBAG funding (anticipated in 2026).

BACKGROUND
Spurred by the passage of Assembly Bill 2923 (AB 2923) in 2018, the City and BART have been collaborating to facilitate transit-oriented development at the Ashby and North Berkeley BART sites. Most recently, these efforts culminated in the City and BART executing an Exchange Agreement in January 2025. The Exchange Agreement set forth terms for the City to relinquish its air rights over the western parking lot (West Lot) and any public rights in an adjacent area (called R9-2) in return for fee simple ownership of the eastern parking lot (East Lot) and specified community benefits. It also defines how the City and BART will work together on developer solicitations, conditions for the City’s affordable housing funding, requirements and responsibilities for public infrastructure, minimum standards and process requirements to develop City Objective Design Standards, project entitlement, and other identified milestones.

The public infrastructure requirements in the Exchange Agreement build on previous City Council adopted conceptual designs for reconfiguring Adeline and related streets.

Council approved the overall concept design for the corridor as part of the approval of the Adeline Corridor Specific Plan on December 8, 2020, in Resolution No. 69,642-N.S.

Subsequently, Council approved preliminary concepts for the section of the project adjacent to Ashby BART at its November 29, 2022 meeting, through Resolution No. 70,622-N.S., the Adeline Street at Ashby BART Conceptual Design.

In 2021 and 2023, the City was awarded grant funding from the Alameda County Transportation Commission Comprehensive Investment Plan to scope and develop preliminary engineering plans for a project on Adeline Street from Ashby Avenue (adjacent to the Ashby BART station) to the southern City limits. The Adeline Street Transportation Improvements Project would construct safety improvements for pedestrians, bicyclists, and transit riders, and repurpose two of the existing general purpose traffic lanes in order to construct protected bikeways and opportunities for public space, including space for a pedestrian plaza on the west side of Adeline Street at the Ashby BART station. Adjacent to the Ashby BART Station West Lot, this redesign will reduce Adeline from four to two lanes, repurposing the two existing lanes closest to the BART station as a public plaza that can be used for the Berkeley Flea Market, Juneteenth, and other events.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The work funded by the MTC TOC Planning Grant helps to advance the overall Ashby BART TOD project and priorities of the Adeline Corridor Specific Plan. Creating

Internal
Accept MTC Planning Grant CONSENT CALENDAR
June 24, 2025

equitable, transit-oriented mixed-use development that includes affordable housing and housing support services for Berkeley’s most vulnerable community members is a City Strategic Plan goal, which also helps advance the environmental goals of being a global leader in addressing climate change, advancing environmental justice and protecting the environment. Furthermore, improvements to Adeline Street and associated streets, including transit improvements, protected bikeways, and upgrading pedestrian crossings, is anticipated to increase the numbers of people using transit, walking, and biking. This is consistent with the 2009 Climate Action Policy that calls for expanding and improving the City’s bicycle and pedestrian infrastructure.

RATIONALE FOR RECOMMENDATION
In order to accept the competitively awarded MTC TOC Planning Grant, the City Council must adopt and submit the attached Resolution.

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Alisa Shen, Principal Planner, Planning and Development Department, 510-981-7409 Attachments:
1: Resolution
2: MTC Planning Committee Transit Oriented Communities Policy: Planning Grant Awards, Feb. 14, 2025.

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

AUTHORIZE THE CITY MANAGER TO ACCEPT METROPOLITAN

TRANSPORTATION COMMISSION TRANSIT ORIENTED COMMUNITIES GRANT WHEREAS, the Metropolitan Transportation Commission (MTC) adopted its Resolution 4530, the Transit Oriented Communities (TOC) Policy; and WHEREAS, the TOC Policy incentivizes local jurisdictions to plan and zone for higher residential and commercial densities in areas within one half-mile of existing and planned fixed-guideway transit stops and stations, to support the region’s transit investments and implement key greenhouse gas reduction strategies from Plan Bay Area 2050; and
WHEREAS, incentivizing local jurisdictions to also adopt policies focused on increasing housing production of all types, particularly affordable housing production, preservation and protection, commercial anti-displacement and stabilization, parking management, and transit station access and circulation further supports regional transit investments and Plan Bay Area 2050 implementation; and
WHEREAS, in 2023 MTC identified Ashby BART as a Tier 2 “Transit Oriented Community” in the City of Berkeley; and
WHEREAS, MTC conditions the allocation of regional discretionary funding for fixed- guideway transit extension projects on compliance with the TOC Policy; and WHEREAS, MTC anticipates that future regional funding, such as the One Bay Area Grant (OBAG) program, will consider compliance with the TOC Policy as part of the prioritization and project selection process starting with OBAG 4, expected in 2026; and WHEREAS, the TOC Policy establishes different compliance expectations for existing and planned station areas based on the level of transit service; and WHEREAS, the TOC Policy identifies four TOC Policy areas (density, housing affordability, parking, and access/circulation); and
WHEREAS, on September 30, 2024 the MTC announced a Call for Projects for Transit Oriented Communities (TOC) Planning and Implementation Grants, and informed local jurisdictions of a November 22, 2024 deadline for submittals of Applications, as well as grant application guidance and requirements including compliance with the Transit Oriented Communities Policy; and
WHEREAS, the City of Berkeley and the San Francisco Bay Area Rapid Transit District (BART) partnered to submit a grant application to MTC for $400,000 for the Ashby

Internal

BART Transit Oriented Development Station Access Plan (“the Project”) in response to the MTC’s Call for TOC Planning and Implementation Projects; and WHEREAS, the Project advances milestones set forth in the Ashby BART Transit- Oriented Development Exchange Agreement (Ordinance No. 7,939-N.S.), the Adeline Corridor Specific Plan (Ordinance No. 7,744-N.S.), and the Adeline at Ashby BART Conceptual Design (Resolution No. 70,622-N.S.); and
WHEREAS, the City of Berkeley and BART were notified on March 13, 2025 by MTC’s Planning Committee approved awarding a planning grant to the City and BART for the Project.

NOW THEREFORE, BE IT RESOLVED that the City of Berkeley commits to take steps toward achieving compliance with MTC's TOC Policy as a condition for MTC to allocate Regional Discretionary Funding to the Project.

BE IT FURTHER RESOLVED by the Council of the City of Berkeley that the City Manager or their designee is hereby authorized to accept the $400,000 MTC TOC Planning Grant award for the Project.

Metropolitan Transportation Commission
MTC Planning Committee
February 14, 2025 Agenda Item 7a
Transit Oriented Communities Policy: Planning Grant Awards Subject:

Approval of $20 million in grants to local jurisdictions to support Transit Oriented Communities (TOC) policy planning across the four TOC Policy areas of land use density, housing policy, parking management, and station access and circulation.

Background:

In September 2022, MTC adopted the TOC Policy (MTC Resolution No. 4530) to support the region's transit investments by creating communities around transit stations and along transit corridors that not only enable transit ridership, but also are places where Bay Area residents of all abilities, income levels, and backgrounds can live, work, and access services. The TOC Policy focuses on the core elements of land use density, affordable housing, parking management, and complete streets/multimodal access to implement Plan Bay Area 2050 strategies. The TOC Policy applies to the half-mile area around existing and planned fixed- guideway transit stops and stations (i.e., regional rail, commuter rail, light-rail transit, bus rapid transit, and ferries). MTC Resolution No. 4530 was revised in October 2023 to clarify the application of the TOC Policy to transit extensions.

Since the TOC Policy was adopted, staff developed and published Administrative Guidance (https://mtc.ca.gov/digital-library/5023804-mtc-administrative-guidance-transit-oriented- communities-policy) to clarify policy requirements and instruct local governments how to submit compliance documentation. The guidance was developed based on extensive engagement with local government staff, practitioners, advocates, and policy experts.

Call for Projects:

On September 30, 2024, staff released a coordinated call for projects for TOC Policy planning ($20 million) and capital investments ($40 million). The TOC planning applications were due on November 22, 2024. Capital applications were due December 20, 2024, with recommended awards anticipated in March 2025. Following the initial planning call for projects announcement, staff conducted extensive outreach to cities and counties eligible for these funds through Attachment 2

MTC Planning Committee Agenda Item 7a
February 14, 2025

webinars, presentations at local planning collaboratives, and over 50 hours of one-on-one office hours with local jurisdiction staff. MTC received 79 applications across all four TOC Policy areas totaling $29.9 million. Application requests for the land use density and housing policy TOC Policy areas exceed the amounts available for those funding categories. Parking requests are approximately $102,000 below the amount available. Access and circulation requests are $1.75 million below the amount available.

Table 1. Summary of Applications Received by TOC Policy Area TOC Policy Area Number of
Applications Received
Total Funding
Request
Total Funding
Available
Land Use Density (Specific
Plans and Zoning Changes)
24 $14,665,000 $8,000,000
Housing Policy 22 $7,078,000 $2,000,000
Parking Management 18 $3,898,000 $4,000,000
Station Access and Circulation 15 $4,250,000 $6,000,000 Total 79 $29,891,000 $20,000,000
Recommended Awards:

Applications were evaluated based on standardized evaluation criteria assessing the impact to achieve TOC compliance in the respective policy area; alignment with existing local and regional priorities; project feasibility and project readiness. To assist the largest number of applicants to achieve TOC compliance, staff prioritized land use density technical assistance requests over specific plans. Staff also prioritized housing policy applications focusing on preservation and/or protections policies as well as joint, multi-jurisdictional applications with sub-regional goals. Applicants for parking and station access and circulation will receive technical assistance to support multi-modal planning and policy adoption.

Following the evaluation process there is an additional $120,000 in the station access and circulation category, bringing the total available balance to $1.87 million. To respond to the differing levels of demand for the TOC Policy categories, staff propose to rebalance the funding to meet demand as much as possible. The staff proposal includes:

MTC Planning Committee Agenda Item 7a
February 14, 2025

• Allocate an additional $1.45 million to the Land Use Density category, which enables funding three more grants than otherwise would have been possible. • Allocate an additional $200,000 to the Housing Policy category to ensure that higher ranking proposals receive adequate funding to complete the work scope to better achieve proposed policy outcomes.
• Given the extreme over-subscription for the Housing Policy category, allocate an additional $225,000 to the Regional Housing Technical Assistance (RHTA) Program, which will enable MTC-ABAG to benefit a larger number of jurisdictions through cost-effective products with multi-jurisdictional impact. While there is insufficient funding to provide grants to all applicants, this will support the RHTA Program's current direction to support TOC Policy compliance.
• Allocate the $102,000 parking balance within the Parking category to complete the work scope and achieve TOC Policy compliance for a project submitted with an underestimated project budget.

All award recommendations are summarized in Attachment B, along with additional details for each funding category. Across all the funding categories, 157 TOC station areas are receiving some form of planning or technical assistance.

Technical Assistance Support to Implement TOC Policies:

In addition to the grant awards, staff will provide additional technical assistance by developing templates and materials for jurisdictions to use for compliance, including but not limited to the assistance offered through the RHTA Program noted above. Staff will provide one-on-one technical assistance, as needed, to support successful implementation and will prioritize jurisdictions not awarded through this call for projects.

Issues:

Staff recommends conditional awards for two projects. Staff recommends conditioning the Healdsburg Depot Sonoma-Marin Area Rail Transit (SMART) Station Area Plan on coordinated scope development between Healdsburg, SMART and Sonoma County Transportation Authority staff to ensure shared understanding of the project by all agencies. Staff also recommend conditioning the Millbrae BART/Caltrain station parking project award on the city executing

MTC Planning Committee Agenda Item 7a
February 14, 2025

consultant and MTC grant agreements for its existing Priority Development Area (PDA) planning grants awarded in 2023 by September 30, 2025.

Next Steps:

F
ollowing approval, staff will work with awardees to c
onfirm work scopes and begin the
contracting process to complete the work. Staff anticipate projects to begin in summer 2025.

Recommendation:

Staff request the MTC Planning Committee to approve $20 million in grants to local jurisdictions as shown in Attachment B to support TOC policy compliance across the four TOC Policy areas of land use density, housing policy, parking management, and station access and circulation.

Associated programming revisions to MTC Resolution Nos. 4202, Revised; 4505, Revised; and 4540, Revised will be included in the March 12, 2025, Programming and Allocations Committee packet.

Attachments:
• Attachment A: Presentation
• Attachment B: Summary of Award Recommendations by TOC Policy Area

_________________________________________
Andrew B. Fremier

Transit Oriented Communities Policy
2024 Planning and Implementation Grants
MTC Planning Committee
February 14, 2025

Coordinated Call for Projects
Advance Transit Oriented Communities (TOC) Policy compliance through a mix of planning and capital grants.

Planning Grants
o Planning funding focused on TOC
Policy compliance
o Call for projects released
September 30, 2024
o Applications due November 22, 2024
o $20 million total
Capital Grants
o Capital funding for
implementation/design/
construction
o Call for projects released September
30, 2024
o Applications due December 20, 2024
o Anticipated awards: March 2025
o $40 million total
2

TOC Policy (2022)
o Supports region's transit investments by creating
communities around transit stations and along
transit corridors
o Applies to half-mile area around existing and
planned fixed-guideway transit stops and stations
o Four policy areas for jurisdiction compliance:
• Land use density
• Housing policy
• Parking
• Station access and circulation
3 Photo credit: Noah Berger

Planning Grant Program Goals
($20 Million)
o TOC Policy Implementation: support local governments to meet TOC standards in light of 2026 compliance timeline.
o Focus on Impact: Prioritize investments to achieve greatest co-benefits across land use, transportation and climate activities.
• Density: Increasing residential and commercial densities around station areas
• Housing: Adopting housing policies from the 3Ps (production, preservation and protection)
• Parking: Adjusting minimum and maximum parking ratios as well as transportation demand management policies
• Access: Planning for station access that includes active transportation uses and mobility hub infrastructure
4

Planning Grant Program Highlights
Eligibility Criteria
o Must be TOC Station Area
• Non-TOC jurisdictions able to “opt in”
per MTC Resolution No. 4530
o Must contribute towards TOC Policy
compliance (density, housing policy,
parking, station access)
Eligible Outcomes & Products
o New and updated comprehensive plans
(e.g., Specific Plan)
o Adoption of specific policies, zoning
updates, or implementation document(s)
5

Call for Projects
Notifications to city, transit
agency and county
transportation agency (CTA)
staff
Webinars and county
presentations
50+ hours of 1:1 office
hours held with applicants
Simplified applications and
coordinated release to support
local planning and efficiency
6

Applications Received
TOC Policy Area
Number of
A
pplications Received
Total Funding
Available
(in Millions)
Total Funding
Requested
(in Millions)
Specific Plans and
Zoning Changes 24 $8 $15
Housing Policy
Development 22 $2 $7
Parking
Management 18 $4 $4
Station Access and
Circulation 15 $6 $4
Totals 79 $20 $30
7

Recommended Awards
58 awards
33 grantees
157 TOC Areas
----------------------
$20 million
TOC Category Number of Awards
Specific Plans and Zoning
Changes
19 Housing Policy 7
Parking Management 18
Station Access and Circulation 14
Total 58
8

Recommended Awards
Specific Plans and Zoning Changes
TOC Policy Goal
Enable new development within TOC areas to
be built at sufficiently high densities to
support transit ridership and increase the
proportion of trips taken by transit.

Call for Projects Summary
o $8M available
o Received: 22 applications; $14.7M requested
o Recommendation: 19 applications; $9.5M for
award
Housing Policy
TOC Policy Goal
Adopt six total housing policies from the
“3Ps” menu (two each from production,
preservation, and protection) to support
affordable housing near transit.

Call for Projects Summary
o $2M available
o Received: 22 applications; $7.1M requested
o Recommendation: 7 applications; $2.4M for
award
9

Recommended Awards
Parking Management
TOC Policy Goal
Reduce automobile trips and prioritize the
limited land area near transit for other shared
transportation modes and active transportation.

Call for Projects Summary
o $4M available
o Received: 18 applications; $3.9M requested
o Recommendation: 18 applications; $4M for
award
Station Access and Circulation
TOC Policy Goal
Improve multimodal access to and within TOC
station areas.

Call for Projects Summary
o $6M available
o Received: 15 applications; $4.3M requested
o Recommendation: 14 applications; $4.1M for
award
10 Capital implementation
recommendations
anticipated in March

Package of TOC Compliance Support
In addition to TOC grant awards, support for TOC Policy compliance includes:
• Regional Housing Technical Assistance (RHTA) focused on TOC Implementation • Existing Priority Development Area (PDA) and Priority Sites grants • Ordinance templates
• Additional TOC Policy-specific technical assistance
• Potential for planning funds through OBAG4
Credit: Amie Holbrook
Credit: Nelson Nygaard Consulting Assoc.

Credit: Costar 11

TOC Planning
Grants Next Steps
February 2025:

Request approval of
recommended TOC Policy
Planning Grants
March 2025:

Begin contracting process with
jurisdictions
Summer 2025:

Project kickoffs
12

MTC Planning Committee
February 14, 2025 Page 1 of 15
Attachment B
Agenda Item 7a
Total funding request received: $29,891,000
T
otal recommended funding request: $20,000,000
Table 1. Summary of Award Recommendations by TOC Policy Area County Project Sponsor TOC Station(s) Specific Plans and Zoning Changes
Housing Policy
Development
Parking
Management
Station Access and
Circulation Total No. of Awards
Bay Fair BART
Castro Valley BART
Alameda Berkeley Ashby BART $400,000 $400,000 1
Alameda Emeryville Emeryville Capitol Corridor $250,000 $250,000 1 Alameda Hayward Hayward BART $300,000 $300,000 $600,000 2 Alameda Oakland All TOCs in Jurisdiction (37) $300,000 $300,000 1 Alameda Pleasanton Dublin-Pleasanton BART $150,000 $150,000 $300,000 2 Alameda San Leandro All TOCs in Jurisdiction (6) $265,000 $265,000 1 Contra Costa Antioch Antioch BART $650,000 $100,000 $100,000 $850,000 3 Contra Costa Concord Concord BART $185,000 $300,000 $485,000 2 Contra Costa Contra Costa County Pleasant Hill BART $400,000 $400,000 1 El Cerrito Plaza BART
El Cerrito del Norte BART
Contra Costa Lafayette Lafayette BART $350,000 $350,000 1 Contra Costa Orinda Orinda BART $300,000 $300,000 1
Pittsburg Center BART
Pittsburg/Bay Point BART
​​Larkspur Ferry
Larkspur SMART
Marin Marin County All TOCs in County (10) $400,000 $400,000 1 San Mateo Colma1 Colma BART $100,000 $100,000 1
San Mateo Millbrae Millbrae BART/Caltrain Station $300,000 $300,000 1 San Mateo Menlo Park Menlo Park Caltrain $250,000 $200,000 $400,000 $850,000 3 San Mateo Redwood City Redwood City Caltrain $350,000 $300,000 $650,000 2 San Bruno BART
San Bruno Caltrain
San Mateo Caltrain
Transit Oriented Communities Policy Planning Grant Awards Summary $2,100,000 4
Contra Costa E l Cerrito $270,000 $270,000 1
Alameda Alameda County Community
Development Agency $1,000,000 $400,000 $300,000 $400,000 $250,000 1
Marin L arkspur $175,000 $175,000 1
Contra Costa P ittsburg1 $250,000
$400,000 2

San Mateo San Bruno $300,000 $100,000

MTC Planning Committee
February 14, 2025 Page 2 of 15
Attachment B
Agenda Item 7a
County Project Sponsor TOC Station(s) Specific Plans and Zoning Changes
Housing Policy
Development
Parking
Management
Station Access and
Circulation Total No. of Awards

Hayward Park Caltrain
Hillsdale Caltrain
B
elmont Caltrain
Bayshore Caltrain
Colma BART
Daly City BART
Menlo Park Caltrain
Redwood City Caltrain
San Bruno BART
San Bruno Caltrain
Hayward Park Caltrain
Hillsdale Caltrain
San Mateo Caltrain
San Bruno BART
South San Francisco BART
South San Francisco Caltrain
South San Francisco Ferry
Santa Clara Milpitas Milpitas BART $100,000 $300,000 $400,000 2 Santa Clara Morgan Hill Morgan Hill Caltrain $650,000 $200,000 $125,000 $175,000 $1,150,000 4 Santa Clara San José All TOCs in Jurisdiction (48) $1,200,000 $300,000 $400,000 $1,900,000 3 Santa Clara Caltrain/Capitol
Corridor/ACE/BART
Lawrence Caltrain
Great America VTA Station
L
ick Mill Station VTA Station
Old Ironsides Station VTA Station
Reamwood VTA Station
Great America Capitol Corridor/ACE
Sonoma Healdsburg1 Healdsburg Depot Station SMART $1,130,000 $1,130,000 1 San Mateo San Mateo City $610,000 $610,000 1
$500,000 1
San Mateo South San Francisco $250,000 $250,000 1
San Mateo S an Mateo County $500,000
$800,000 3Santa Clara S anta Clara City $250,000 $150,000 $400,000

MTC Planning Committee
February 14, 2025 Page 3 of 15
Attachment B
Agenda Item 7a
County Project Sponsor TOC Station(s) Specific Plans and Zoning Changes
Housing Policy
Development
Parking
Management
Station Access and
Circulation Total No. of Awards

Sonoma Petaluma P etaluma Downtown SMART $1,000,000 $190,000 $1,190,000 2 Santa Rosa North SMART
Santa Rosa Downtown SMART​
Sonoma Sonoma County Sonoma County Airport SMART $200,000 $200,000 1 Sonoma Windsor Windsor SMART $650,000 $200,000 $150,000 $200,000 $1,200,000 4 Housing Technical
Assistance2 $225,000 $225,000
Totals $9,445,000 $2,425,000 $4,000,000 $4,130,000 $20,000,000 33 157 58
(of 61 jurisdictions3) (of 381 total TOC stations3) Total Awards 1 Funded with the $1.87 million balance in the station access and circulation category. 2 Funded with the $1.87 million balance in the station access and circulation category to support ongoing housing technical assistance needs related to TOC housing policy compliance. 3 As of September 2024. Total number of jurisdictions and station areas could change due to planned stations.

Sonoma Santa Rosa $300,000 $150,000 $450,000 2
Count 19 7 18 14

MTC Planning Committee
February 14, 2025 Page 4 of 15
Attachment B
Agenda Item 7a
Total funding request received: $14,665,000
T
otal recommended funding request: $9,445,000
Table 2. Recommended Awards for Specific Plans and Zoning Changes TOC Policy Area Bay Fair BART
Castro Valley BART
Contra Costa A ntioch Antioch BART $650,000 $650,000 Plan Amendment
Contra Costa Concord Concord BART $185,000 $185,000 Technical Assistance
El Cerrito Plaza BART
El Cerrito del Norte BART
Pittsburg Center BART
Pittsburg/Bay Point BART
San Mateo Colma Colma BART $100,000 $100,000 Technical
Assistance
San Mateo Redwood City Redwood City Caltrain $350,000 $350,000 Technical Assistance
San Bruno BART
San Bruno Caltrain
San Mateo Caltrain
Hayward Park Caltrain
Hillsdale Caltrain
San Mateo City of San Mateo 3 $610,000 $610,000 Technical Assistance
$1,000,000 Plan
San Mateo San Bruno $300,000 $300,000 Technical
Assistance
Contra Costa Pittsburg2 $650,000 $250,000 Plan
Amendment
Specific Plans and Zoning Changes Award Recommendations County Project Sponsor TO C Station Requested Award Recommended Award Grant Type
Contra Costa El Cerrito $270,000 $270,000 Plan
Amendment
Alameda Alameda County Community
Development Agency 1 $1,200,000

MTC Planning Committee
February 14, 2025 Page 5 of 15
Attachment B
Agenda Item 7a

County Project Sponsor TOC Station Requested Award Recommended Award Grant Type

San Bruno BART
South San Francisco BART
South San Francisco
Caltrain
South San Francisco Ferry
Santa Clara Milpitas Milpitas BART $100,000 $100,000 Technical Assistance
Santa Clara Morgan Hill Morgan Hill Caltrain $650,000 $650,000 Plan Amendment
Santa Clara San José 26 TOCs in San Jose $1,200,000 $1,200,000 Technical Assistance
Great America VTA Station
Lick Mill Station VTA
Station
Old Ironsides Station VTA
Station
Reamwood VTA Station
Sonoma Healdsburg5 Healdsburg Depot Station
SMART $1,130,000 $1,130,000 Plan
Sonoma Petaluma Petaluma Downtown
SMART $1,000,000 $1,000,000 Plan
Amendment
Sonoma Santa Rosa Santa Rosa North SMART $300,000 $300,000 Plan Amendment
Sonoma Sonoma County Sonoma County Airport
SMART $200,000 $200,000 Technical
Assistance
Santa Clara City of Santa Clara $250,000 $250,000 Technical Assistance
San Mateo South San Francisco4 $1,200,000 $250,000 Technical Assistance

MTC Planning Committee
February 14, 2025 Page 6 of 15
Attachment B
Agenda Item 7a

County Project Sponsor TOC Station Requested Award Recommended Award Grant Type

Sonoma Windsor W indsor SMART $650,000 $650,000 Plan
Amendment
Totals 19 56 TOCs $10,995,000 $9,445,000
1 Recommended award amount was reduced in consideration of scope of work and cost estimation. 2 Prioritizing technical assistance to rezone two BART stations to accommodate high density housing. 4 Total amount reflects two proposals, one for specific plan to expand TOC the other for rezoning technical assistance. Recommendation is to fully fund rezoning.
3 Total amount reflects two proposals, one for specific plan for one TOC, the other for the rezoning technical assistance of two TOCs.

Recommendation is to fully fund rezoning.
5 Staff recommend conditioning this award based on coordinated scope development between Healdsburg, SMART and Sonoma County Transportation Authority staff.

MTC Planning Committee
February 14, 2025 Page 7 of 15
Attachment B
Agenda Item 7a
Total funding request received: $7,078,000
T
otal recommended funding request: $2,425,000
Table 3. Recommended Awards for Housing Policy Development TOC Policy Area County Project Sponsor TOC Station Requested
Award
Recommended
Award Policy Area(s)
Bay Fair BART
Castro Valley BART
Alameda Emeryville2 Emeryville Capitol Corridor $500,000 $250,000 Production, Protections
Marin Marin County All TOCs in County (10) $400,000 $400,000 Preservation San Mateo Menlo Park3 Menlo Park Caltrain $300,000 $250,000 Protections Belmont Caltrain
Bayshore Caltrain
Colma BART
Daly City BART
Menlo Park Caltrain
Redwood City Caltrain
San Bruno BART
San Bruno Caltrain
Hayward Park Caltrain
Hillsdale Caltrain
San Mateo Caltrain
Santa Clara Morgan Hill5 Morgan Hill Caltrain $178,000 $200,000 Production,
Preservation,
Protections
Sonoma Windsor6 Windsor SMART $250,000 $200,000 Production, Protections
San Mateo San Mateo County4 $620,000 $500,000 Production Housing Policy Development Award Recommendations
Alameda Alameda County Community
Development Agency 1 $500,000 $400,000 Production,
Protections

MTC Planning Committee
February 14, 2025 Page 8 of 15
Attachment B
Agenda Item 7a
County Project Sponsor TOC Station Requested
Award
Recommended
Award Policy Area(s)

Housing TA7 $225,000
Totals 7 27 $2,748,000 $2,425,000
3 Recommended award amount was lowered in consideration of the scope of work, including two housing policies. 4 Recommended award amount was lowered to meet the $500,000 maximum award limit. 5 Recommended award amount was raised in consideration of the intended scope of work, including six housing policies. 6 Recommended award amount was lowered in consideration of the scope of work, including three housing policies. 2 Recommended award amount was lowered in consideration of the scope of work, including three housing policies, and jurisdiction size.
7 Housing Technical Assistance to retain in reserve to support ongoing housing technical assistance needs related to TOC housing policy compliance, such as ordinance templates, etc.
1 Recommended award amount was lowered in consideration of the scope of work, including three housing policies, and jurisdiction size.

MTC Planning Committee
February 14, 2025 Page 9 and 15
Attachment B
Agenda Item 7a
Total funding request received: $3,898,000
Balance: $102,000
Total recommended funding request: $4,000,000
Table 4. Recommended Awards for Parking Management Planning TOC Policy Area County Project Sponsor TOC Station Requested Award Recommended Award Bay Fair BART
Castro Valley BART
Alameda Hayward Hayward BART $300,000 $300,000
Alameda Oakland All TOCs in Jurisdiction (37) $300,000 $300,000 Alameda Pleasanton Dublin-Pleasanton BART $150,000 $150,000 Contra Costa Antioch Antioch BART $100,000 $100,000
Contra Costa Concord Concord BART $300,000 $300,000
Contra Costa Orinda Orinda BART $300,000 $300,000
Larkspur Ferry
Larkspur SMART
San Mateo Menlo Park Menlo Park Caltrain $200,000 $200,000 San Mateo Millbrae1 Millbrae BART/Caltrain Station $300,000 $300,000 San Mateo Redwood City Redwood City Caltrain $300,000 $300,000 San Bruno BART
San Bruno Caltrain
Santa Clara Milpitas Milpitas BART $300,000 $300,000
Santa Clara Morgan Hill2 Morgan Hill Caltrain $23,000 $125,000 Santa Clara San José All TOCs in Jurisdiction (48) $300,000 $300,000 Parking Management Planning Award Recommendations
San Mateo San Bruno $100,000 $100,000
Alameda Alameda County Community
Development Agency $300,000 $300,000
Marin Larkspur $175,000 $175,000

MTC Planning Committee
February 14, 2025 Page 10 and 15
Attachment B
Agenda Item 7a
County Project Sponsor TOC Station Requested Award Recommended Award

Santa Clara Caltrain/Capitol
Corridor/ACE/BART
Lawrence Caltrain
Great America VTA Station
Lick Mill Station VTA Station
Old Ironsides Station VTA
Station
Reamwood VTA Station
Great America Capitol
Corridor/ACE
Santa Rosa North SMART
Santa Rosa Downtown SMART​
Sonoma Windsor Windsor SMART $150,000 $150,000
Totals2 18 111 $3,898,000 $4,000,000
2 Staff recommend applying the $102,000 balance to Morgan Hill's parking project to complete the scope submitted in the application.

Sonoma Santa Rosa $150,000 $150,000
1 Staff recommend that the Millbrae parking project is conditional based on the city executing consultant and MTC grant agreements for its existing Priority Development Area (PDA) planning grants awarded in 2023 by September 30, 2025.

Santa Clara City of Santa Clara $150,000 $150,000

MTC Planning Committee
February 14, 2025 Page 11 of 15
Attachment B
Agenda Item 7a
Total funding request received: $4,250,000
T
otal recommended funding request: $4,130,000
Balance: $1,870,000
County Project Sponsor TOC Station Requested Award Recommended Award Bay Fair: BART
Castro Valley: BART
Alameda Berkeley/BART Ashby BART $400,000 $400,000
Alameda Hayward Hayward BART $300,000 $300,000
Alameda Pleasanton Dublin-Pleasanton BART $150,000 $150,000 San Leandro BART and AC Transit Tempo
Downtown San Leandro AC Transit Tempo
San Leandro Civic Center AC Transit Tempo
Georgia Way AC Transit Tempo
Durant Avenue AC Transit Tempo
Contra Costa Antioch Antioch BART $100,000 $100,000
Contra Costa Contra Costa County Pleasant Hill BART $400,000 $400,000 Contra Costa Lafayette Lafayette BART $350,000 $350,000 San Mateo Menlo Park Menlo Park Caltrain $400,000 $400,000 Santa Clara Morgan Hill Morgan Hill Caltrain $175,000 $175,000 Santa Clara San José 4 TOCs not covered by existing plans $400,000 $400,000 Santa Clara City of Santa Clara Santa Clara Caltrain/Capitol Corridor/ACE/BART $400,000 $400,000
Sonoma Petaluma Petaluma Downtown SMART $190,000 $190,000 Sonoma Windsor Windsor SMART $200,000 $200,000
Totals 14 22 $4,130,000 $4,130,000
Alameda San Leandro $265,000 $265,000
Station Access and Circulation Planning Award Recommendations Table 5. Recommended Awards for Station Access and Circulation Planning TOC Policy Area Alameda Alameda County Community
Development Agency $400,000 $400,000

MTC Planning Committee
February 14, 2025 Page 12 of 15
Attachment B
Agenda Item 7a
Table 6. Applications Not Recommended for Funding this Cycle County Project Sponsor TOC Policy
Area
Funding
Request Evaluation Receiving Another TOC
Policy Award
Contra Costa Pittsburg H ousing $500,000 Lower score relative to application pool1
Yes
Recommended for Specific
Plans/Zoning ($250,000)
No
Applied for Specific
Plans/Zoning only
Applications Not Recommended for Funding this Cycle
No
Applied for Housing only
Yes
Recommended for Station
Access (350,000)
No
Applied for Housing only
Contra Costa Walnut Creek Specific
Plans/Zoning $1,200,000
Rezoning TA prioritized
over plans to assist more
jurisdictions getting to TOC
compliance over high-cost
plans
Contra Costa Martinez Housing $275,000 Lower score relative to application pool1
Alameda City of Alameda Housing $250,000 Lower score relative to application pool1
Contra Costa Lafayette Housing $750,000 Lower score relative to application pool1

MTC Planning Committee
February 14, 2025 Page 13 of 15
Attachment B
Agenda Item 7a
County Project Sponsor TOC Policy
Area
Funding
Request Evaluation Receiving Another TOC
Policy Award
Station Access $120,000
Ye
s
Recommended for Housing
($400,000)
No
Applied for Housing only
Yes
Recommended for Specific
Plans/Zoning ($100,000)
Yes
Recommended for Parking
($300,000)
No
Applied for Housing only
Housing $195,000 San Mateo Millbrae
Specific
Plans/Zoning $530,000
Lower score relative to
application pool1
Marin
San Mateo Colma Housing $115,000 Lower score relative to application pool1
Marin Multi Jurisdiction
Application
Specific
Plans/Zoning $615,000
Rezoning TA prioritized
over plans to assist more
jurisdictions getting to TOC
compliance over high-cost
plans
San Rafael Housing $500,000 Lower score relative to
application pool1
San Mateo Belmont Housing $70,000 Lower score relative to application pool1

MTC Planning Committee
February 14, 2025 Page 14 of 15
Attachment B
Agenda Item 7a
County Project Sponsor TOC Policy
Area
Funding
Request Evaluation Receiving Another TOC
Policy Award
Yes
Recommended for Specific
Plans/Zoning ($300,000) and
Parking ($100,000)
No
A
pplied for Housing only
No
Applied for Housing only
Yes
Recommended for Specific
Plans/Zoning - Technical
Assistance ($610,000)
Yes
Recommended for Specific
Plans/Zoning ($100,000) and
Parking ($300,000)
Santa Clara Campbell Housing $100,000 Lower score relative to application pool1
Santa Clara Milpitas Housing $100,000 Lower score relative to application pool1
Lower score relative to
application pool1
San Mateo San Carlos Housing $175,000 Lower score relative to application pool1
San Mateo City of San Mateo
Specific
Plans/Zoning
(Specific Plan)
$1,199,500
Rezoning TA prioritized
over plans to assist more
jurisdictions getting to TOC
compliance over high-cost
plans
San Mateo San Bruno Housing $250,000

MTC Planning Committee
February 14, 2025 Page 15 of 15
Attachment B
Agenda Item 7a
County Project Sponsor TOC Policy
Area
Funding
Request Evaluation Receiving Another TOC
Policy Award
Total $7,994,500
1 Staff will work with the project sponsors to assist in the development of an application for the next round of TOC funding.

Yes
Recommended for Specific
Plans/Zoning ($250,000),
Parking ($150,000), and
Station Access ($400,000)
Yes
Recommended for Specific
Plans/Zoning ($300,000) and
Parking ($150,000)
Yes
Recommended for Specific
Plans/Zoning ($150,000)
Sonoma Santa Rosa Housing $500,000 Lower score relative to application pool1
Sonoma Sonoma County Housing $400,000 Lower score relative to application pool1
Santa Clara City of Santa Clara Housing $150,000 Lower score relative to application pool1

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

CONSENT CALENDAR
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Civic Arts Commission
Submitted by: Cameron Woo, Chairperson, Civic Arts Commission Subject: Authorization for Additional Civic Arts Commission Meeting in 2025

RECOMMENDATION
Adopt a Resolution for one additional meeting of the Civic Arts Commission in 2025.

FISCAL IMPACTS OF RECOMMENDATION
None.

CURRENT SITUATION AND ITS EFFECTS
The Civic Arts Commission requests approval to hold a Special Meeting on August 13, 2025 in order to take a vote on the artist selected for the Martin Luther King Jr. / Young Adult Project (Y.A.P.) Service Center Public Art Project located at 1730 Oregon Street in Grove Park. This public art project, will be a mosaic or tile-based public art piece that is part of a larger seismic retrofit and renovation of the Martin Luther King Jr. Youth Services Center/(Y.A.P.) building. The public art piece will be installed on an exterior wall and extend into the interior lobby of the renovated building, spanning approximately 885 square feet. Submission of this report for authorization of the additional meeting was approved by the Civic Arts Commission at its regular meeting on May 28, 2025.

The vote was as follows: M/S/C (Bullwinkel/Scott) to approve request to Council for additional meeting in 2025 on August 13. Vote: Ayes — Bachrach, Blecher, Bullwinkel, Pineda, Scott, Woo; Nays — None; Abstain — None; Absent — None.

Public Comment: None

BACKGROUND
Resolution No. 68,705–N.S. governs the number of meetings for boards and commissions per year and authorizes the Civic Arts Commission to meet ten times per year. In 2025, the Civic Arts Commission plans to hold its ten regular meetings in addition to this Special Meeting, for a total of eleven meetings in calendar year 2025.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
None.

Civic Arts Commission Request for Additional Meeting in 2025 CONSENT CALENDAR June 24, 2025

RATIONALE FOR RECOMMENDATION
In order to meet the construction schedule for the Martin Luther King, Jr./(Y.A.P.) Service Center building located at 1730 Oregon Street, the Civic Arts Commission requests an additional meeting in 2025. The special meeting is to be held on August 13, 2025 in order to take a vote on the artist selected for this project.

ALTERNATIVE ACTIONS CONSIDERED
None.

CITY MANAGER
The City Manager takes no position on the Commission’s Report.

CONTACT PERSON
Jennifer Lovvorn, Secretary to the Civic Arts Commission, (510) 981-7533 Attachments:
1: Resolution

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

AUTHORIZING ADDITIONAL MEETING FOR THE CIVIC ARTS COMMISSION IN 2025
WHEREAS, Resolution No. 68,705–N.S. stipulates how many annual meetings are allowed for Berkeley’s commissions and authorizes the Civic Arts Commission to meet ten times per year; and
WHEREAS, in order to meet the construction and public art installation schedule for the renovation and retrofit of Martin Luther King, Jr. Y.A.P. Service Center building located at 1730 Oregon Street the artist must be selected swiftly; and WHEREAS the public art project, will be a mosaic or tile-based public art piece that will be installed on an exterior wall and extend into the interior lobby of the renovated building, spanning approximately 885 square feet; and
WHEREAS, the Civic Arts Commission requests an additional meeting in 2025 to take a vote on the artist selected for this project at a special meeting to be held on August 13, 2025.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the Civic Arts Commission is authorized to hold one additional meeting in 2025.

Mental Health Commission
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://Berkeleyca.gov/

CONSENT CALENDAR
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Mental Health Commission
Submitted by: Ajay Krishnan, Mental Health Commission Chair Subject: Re-Appointment of Glenn Turner to the Mental Health Commission for the City of Berkeley

RECOMMENDATION
Adopt a Resolution re-appointing: Glenn Turner as a representative of the Special Public Interest Category - Family member, to complete her second 3-year term beginning June 25, 2025, and ending June 24, 2028.

FISCAL IMPACTS OF RECOMMENDATION
None.

CURRENT SITUATION AND ITS EFFECTS
The Mental Health Commission is authorized to be composed of thirteen members.

However, there are presently four vacancies on the Commission. The Mental Health Commission (MHC) is actively seeking candidates with the ability to fulfill the state law duties for Commissioners, including reviewing and evaluating the community’s mental health needs, services, facilities, resources and programs.

Approval of the recommended re-appointment will move the Commission a step closer to having a full and diverse complement of commissioners to review and evaluate the community’s behavioral health needs, resources and programs.

BACKGROUND
The Mental Health Commission re-appointed Glenn Turner as a representative of the special public interest appointment to the Mental Health Commission for the City of Berkeley, for a second, three-year term. Glenn Turner has been a resident of Berkeley since 1977. She also works with FASMI (Families Advocating for the Seriously Mentally Ill) at the county and state levels.

California State law requires that appointees to the Mental Health Commission meet specific categories. The public interest category includes anyone who has an interest in and some knowledge of mental health services. The special public interest category includes direct consumers of public mental health services and

Appointment of Glenn Turner to the MHC CONSENT CALENDAR June 24, 2025

family members of consumers, which together must constitute at least fifty percent or nine of the commission seats. Direct consumers and family members shall each constitute at least 20% of the commission membership.

Glenn is currently retired after serving the spiritual needs of Black, Brown, new age, and Queer people at her Berkeley retail business for more than 30 years. She brings legal, financial, operational, and other important skills to the Mental Health Commission. She is also a member of Berkeley Copwatch, Care Not Cops, Creative Action Theater, and has done planning and logistics for the Climate Emergency Task Force.

During her 3-year term with the MHC, Glenn held the vice chair position and has been on multiple sub-committees including the membership, evaluation, care court and finance committees.

The Mental Health Commission passed the following motions at the April 30, 2025, meeting:

Vote to re-appoint Commissioner Glenn Turner to the Mental Health Commission M/S/C (Gu, Teague) Move to re-appoint Glenn Turner to the MHC and send to City Council for approval
PASSED
Ayes: Gu, Opton, Sol, Teague, Turner; Noes: None; Abstentions: None; Absent: Jones, Krishnan, Tregub, Prichett

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

RATIONALE FOR RECOMMENDATION
Approval of the recommended action will allow the Mental Health Commission to move one step closer to having a full and diverse complement of commissioners to review and evaluate the community’s mental health needs, resources, and programs.

ALTERNATIVE ACTIONS CONSIDERED
None.

CITY MANAGER
The City Manager concurs with the content and recommendations of the Commission's Report.

CONTACT PERSON
Jamie Works-Wright, Commission Secretary, HHCS, 510-981-7721

Appointment of Glenn Turner to the MHC CONSENT CALENDAR June 24, 2025

Attachments:
1: Resolution

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

APPOINTMENT OF GLENN TURNER TO THE MENTAL HEALTH COMMISSION WHEREAS, membership of the Mental Health Commission is composed of thirteen appointments by the City Council as a whole, including one appointment by the Mayor (or designee), six special public interest appointments, and four general public interest appointments; and
WHEREAS, with the ongoing implementation of the Mental Health Services Act, the City of Berkeley will need to have a full complement of diverse appointees to the Commission to review and evaluate the community's mental health needs, resources, and programs and to fulfill its mandate; and
WHEREAS, Ms. Glenn Turner has volunteered within the community and is a family member of a person with lived experience,
WHEREAS, the Mental Health Commission at its April 30, 2025, meeting recommended the re-appointment of Glenn Turner.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the Council re-appoint Glenn Turner as a representative of the Special Public Interest category, to complete her second term ending June 24, 2028.

CONSENT CALENDAR
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Councilmember Shoshana O’Keefe (Author), Mayor Adena Ishii and Councilmembers Terry Taplin and Ben Bartlett (Co-Sponsors) Subject: Berkeley High School All Class Reunion: Relinquishment of Council Office Budget Funds to General Fund and Grant of Such Funds

RECOMMENDATION
Adopt a Resolution approving the expenditure of an amount not to exceed $500 per Councilmember – including $500 from Mayor Ishii, $250 from Councilmember O’Keefe, $250 from Councilmember Taplin, and $250 from Councilmember Bartlett – to support the Berkeley High School All Class Reunion Committee (BHS ACRC) by way of its fiscal sponsor, the Berkeley Public Schools Fund, with funds relinquished to the City’s general fund for this purpose.

BACKGROUND
The Berkeley High School All Class Reunion Committee (BHS ACRC) is planning its 7th Biennial All Class Picnic on Saturday, August 23, 2025. The event will take place at San Pablo Park from 10:00 AM to 6:00 PM.

This community celebration was designed to rekindle memories of BHS pride and reconnect friendships, neighbors, and families. Alumni and people of all ages can enjoy a picnic in the park with good food, live music, vendors, a kids zone, and a health fair. Previous reunions have reconnected over 2,000 people. Any excess funds will go toward funding a BHS Scholarship.

ENVIRONMENTAL SUSTAINABILITY
None.

FISCAL IMPACTS
No General Fund impact. $500 is available from contributing Councilmembers’ Council Office Budget discretionary accounts.

CONTACT
Councilmember O’Keefe, 510-524-1625

RESOLUTION ##,###-N.S.

AUTHORIZING THE EXPENDITURE OF SURPLUS FUNDS FROM THE OFFICE EXPENSE

ACCOUNTS OF THE MAYOR AND COUNCIL MEMBERS FOR A GRANT TO PROVIDE

PUBLIC SERVICES FOR A MUNICIPAL PUBLIC PURPOSE
WHEREAS, Mayor Ishii, and Councilmembers Shoshana O’Keefe, Terry Taplin, and Ben Bartlett have surplus funds in their office expenditure accounts; and WHEREAS, a California non-profit tax-exempt corporation Berkeley Public Schools Fund seeks funds to provide the following public services: Berkeley High School All Class Reunion; and
WHEREAS, the provision of such services would fulfill the following municipal public purpose: reunion for BHS alumni and BHS scholarships;
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that funds relinquished by the Mayor and Councilmembers from their Council Office Budget, up to $500 per office, shall be granted to Berkeley Public Schools Fund to fund the following services: Berkeley High School All Class Reunion.

Office of the City Manager

PUBLIC HEARING
June 24, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Manager, Office of Economic Development Subject: Re-Establishment of the Berkeley Tourism Business Improvement District

RECOMMENDATION

1. Conduct a public hearing on the renewal of the Berkeley Tourism Business Improvement District (BTBID) for 10 years starting July 1, 2025.

2. Conduct a public hearing on the modification of the existing BTBID to end on June 30, 2025, shortening the existing BTBID’s term from ten (10) years to eight (8) years thus modifying the existing BTBID Management District Plan.

Upon conclusion, declare results of the majority protest proceedings and adopt a Resolution to Re-Establish (renew) the Berkeley Tourism Business Improvement District (BTBID) for a term of ten (10) years, and adopt a Resolution to modify the term of the existing BTBID to coincide with the renewal/reestablishment of the BTBID.

SUMMARY
The Berkeley Tourism Business Improvement District or, BTBID, is a benefit assessment district created in 2012 and subsequently renewed in 2017, to fund marketing and sales promotion efforts for assessed lodging businesses in Berkeley with five rooms or more. Lodging business owners decided to pursue renewal of the BTBID in order to maintain a revenue source devoted to marketing the City of Berkeley (City) as a destination for tourism, meetings, and events. Currently, the City contracts with Visit Berkeley, the BTBID’s Owners’ Association, which also functions as the City’s Convention and Visitor’s Bureau, to implement the activities funded by the BTBID.

The BTBID is proposed to be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et. seq. If renewed, the BTBID District would generate funding annually—approximately $2,221,000 in FY 2026—for the promotion of travel and tourism specific to Berkeley.

Re-Establishment of the Berkeley Tourism Business Improvement District PUBLIC HEARING June 24, 2025

On May 6, 2025, the Berkeley City Council (“Council”) adopted Resolution No. 71,749– N.S. (BTBID Renewal) declaring its intention to renew the Berkeley Tourism Business Improvement District (“BTBID”). The Council also adopted Resolution No. 71,750–N.S. (BTBID Modification) to amend the term of the current Tourism BID to align with the renewed district; and Resolution No. 71,751–N.S. (Contract) authorizing the City Manager to execute a contract and any necessary amendments with Visit Berkeley, the BTBID’s Owners’ Association and the City of Berkeley’s Convention and Visitor’s Bureau, for an amount not to exceed total Tourism BID collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035.

On May 8, 2025, notice of the public meeting and public hearing were mailed to businesses that will be assessed in the renewed BTBID with a term beginning on July 1, 2025. On June 3, 2025, the Council held a public meeting for comments on the renewed BTBID. Tonight’s public hearing and resolution are the last steps necessary to renew the BTBID (Attachment 1). To date, the City Clerk has received protests from businesses representing 0% of the total proposed assessment. The Council can adopt this resolution as long as there is no majority protest, defined as a protest by businesses paying fifty percent (50%) or more of the proposed assessment.

On May 6, 2025, the Council adopted a Resolution No. 71,750–N.S. (BTBID Modification) declaring its intention to modify the current BTBID to a term ending June 30, 2025, to coincide with the establishment of the renewed district. On May 27, 2025, a copy of the resolution was mailed to businesses that are currently assessed in the BTBID. On May 23, 2025 a copy of the resolution was published in a newspaper of general circulation in the City of Berkeley (City). Tonight’s public hearing and resolution are the last steps necessary to modify the term of the existing BTBID (Attachment 2).

FISCAL IMPACTS OF RECOMMENDATION
The proposed renewed BTBID would place a three percent (3%) assessment on short- term sleeping room rental revenue on all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. Lodging businesses may include, but are not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, or other similar structure or portion thereof.

The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000 in FY2026. If renewed, the BTBID would be in effect for ten (10) years and a similar assessment budget is expected to apply to subsequent years, though the total assessment amounts would vary each year based on the revenue generated by the lodging businesses.

The proposed BTBID Management District Plan designates that the funds generated by the BTBID are to be used for marketing, promotion, special event sponsorship and other specific hotel-serving activities. One percent (1%) of the funds would be retained annually by the City for its administrative services in collecting the assessments and contracting for the BTBID services. Because the BTBID programs are designed to bring more visitors to the City, the program should continue to result in an increase in

Re-Establishment of the Berkeley Tourism Business Improvement District PUBLIC HEARING June 24, 2025

transient occupancy tax (TOT) collections. There may also be an increase in travel- related sales tax revenues as a result of higher hotel occupancies.

The City Clerk has mailed notice of tonight’s public hearing and a copy of the resolution of intention to all businesses within the proposed district. If the proposed BTBID is renewed, the City will be responsible for collecting and forwarding assessment funds and will be reimbursed for the cost of this service. Annual assessment funds will be deposited into Tourism BID Fund 781-21-208-251-0000-000-000-412110 and expended from fund 781-21-208-251-0000-000-446-636110. Resolution No. 71,751–N.S. (Contract) authorizes the creation of a contract with Visit Berkeley the BTBID’s Owners’ Association, for an amount not to exceed total BTBID collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035 to pass through the collected Tourism BID funds to the BTBID Owners’ Association to implement the BTBID Management District Plan (2025).

CURRENT SITUATION AND ITS EFFECTS
The BTBID is a benefit assessment district created in 2012 (Resolution No. 65,899– N.S.) and subsequently renewed in 2017 (Resolution No 67-926-N.S.) to provide marketing & sales promotions for assessed lodging businesses. The proposed renewed BTBID includes all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. The proposed renewed BTBID would place a three percent (3%) assessment on short-term sleeping room rental revenue on all lodging businesses. Lodging business owners decided to pursue renewal of the BTBID and increase the assessment from 1% to 3% in order to maintain a revenue source devoted to marketing the City as a destination for tourism, meetings, and events and to add a cultural resources component to their programing as outlined on page 8 of the BTBID Management District Plan.

The current BTBID was renewed in 2017 for a ten (10) year term, beginning July 1, 2017, through June 30, 2027. Visit Berkeley, the BTBID’s Owners’ Association, has requested that the current BTBID term be modified to shorten the ten (10) year term to eight (8) years. The process to modify the current BTBID is set to be completed concurrently with the completion of BTBID renewal. That is, the proposed modified BTBID’s term will expire on June 30, 2025, and the renewed BTBID will begin on July 1, 2025, with no break in service. The purpose of the modification is to align the BTBID’s term with the renewed term, while simultaneously implementing the annual assessment rate of three percent (3%) of gross short-term sleeping room rental revenue.

The Tourism BID assessment would continue to be collected from the businesses assessed by the City concurrently with Transient Occupancy Tax, or TOT, which remains at 1%. The City would continue to contract with Visit Berkeley to act as the Owners’ Association of the BTBID and provide services with the BTBID funds collected.

The BTBID Management District Plan designates that the funds would be used for marketing & sales promotions and cultural tourism programs. The BTBID Management District Plan also calls for City oversight of Visit Berkeley’s management of BTBID funds, including the yearly submission of an annual report and proposed budget for the

Re-Establishment of the Berkeley Tourism Business Improvement District PUBLIC HEARING June 24, 2025

following Fiscal Year, typically presented to City Council in late spring/early summer prior to the commencement of the fiscal year on July 1.

Renewal Process
The BTBID Owners’ Association, Visit Berkeley, began the process of renewing the BTBID in January 2025 by circulating a petition of all eligible lodging establishments. In March 2025, the Berkeley City Clerk certified that the City has received written petitions signed by lodging business owners in the proposed district who will pay more than fifty percent (50%) of the assessments proposed to be levied with the assistance of the City’s Finance Department. The majority petition allowed the City Council to initiate proceedings for district renewal, with the adoption of a resolution with intent of formation on May 6, 2025.

The Property and Business Improvement District Law of 1994 requires the City mail written notice to the owners of all businesses proposed to be assessed within the BTBID. Mailing the notice begins a mandatory forty-five day period in which owners may protest BTBID renewal. The mailing of the notice was completed on May 8, 2025.

Following the adoption of the Resolution of Intention to renew the district, the City Council scheduled and held a public meeting on June 3, 2025, where the City Council took public testimony regarding the proposed assessment (Attachment 3).

Finally, the City Council has scheduled a public hearing for June 24, 2025 where any protests may be received. If at the time of the public hearing, if written protests have not been received from businesses that will pay fifty percent or more of the proposed assessments, the City Council can adopt a resolution of formation renewing the BTBID.

If written protests are received from the owners of businesses in the renewed BTBID which will pay fifty percent (50%) or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one year from the date of the finding of a majority protest by the Council. At the conclusion of the public hearing to renew the BTBID, the Council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments.

Proposed assessments may only be revised by reducing any or all of them. If the Council, following the public hearing, decides to renew the BTBID, the Council shall adopt a resolution of formation.

District Modification Process
At the written request of the BTBID Owners’ Association, the City Council may modify the existing Management District Plan after conducting one public hearing on the proposed modification. Visit Berkeley, the BTBID’s Owners’ Association, has submitted a letter to City Council requesting modification of the current BTBID’s term to shorten the term from ten (10) years to eight (8) years. Submission of this written request allows the City Council to initiate proceedings to modify the current term of the BTBID.

Re-Establishment of the Berkeley Tourism Business Improvement District PUBLIC HEARING June 24, 2025

The Property and Business Improvement District Law of 1994 requires the City to mail a copy of the Resolution of Intention to modify the BTBID to assessed lodging businesses within the BTBID. The resolution must be mailed at least ten (10) days before the public hearing on the modification. The Property and Business Improvement District Law of 1994 also requires the City to publish a copy of the Resolution of Intention to modify the BTBID in a newspaper of general circulation in the City. The resolution must be published once at least seven (7) days before the public hearing on the modification.

On May 6, 2025, City Council adopted a Resolution of Intention to Modify the existing BTBID, directing the City Clerk to schedule a public hearing on the proposed modification on June 24, 2025, concurrently with the public hearing to renew the district for ten years for a term of 2025-35. If the City Council, following the public hearing tonight, decides to modify the current BTBID, the City Council can adopt a resolution of modifying the existing Management District Plan to conclude in June 2025.

Contract for Distribution of Tourism BID Funds
Pending the modification of the existing term of the Tourism BID, and the successful renewal of the BTBID for 2025-35, council adopted Resolution No. 71,751–N.S. authorizing the City Manager to execute a contract and any necessary amendments with Visit Berkeley, the BTBID’s Owners’ Association and the City of Berkeley’s Convention and Visitor’s Bureau, for an amount not to exceed total Tourism BID collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035, so the city may pass through the collected assessments to the owners’ association efficiently.

BACKGROUND
A Tourism BID is a special purpose Business Improvement District (BID) focused on the hotel sector. Tourism BIDs are formed by a local city government at the request of hotels and motels which stand to benefit from joint marketing and promotion activities directed by a separate non-profit corporation. In California, more than 112 communities have established Tourism BIDs, many of which are located in the Bay Area. Tourism BID funds are customized to fit the needs of each destination and allow for a wide range of services including marketing & sales promotions and cultural tourism programs.

In Berkeley, the convention and visitor’s bureau, known as Visit Berkeley, established a Tourism BID in 2012 known as the BTBID for a term of five years and subsequently renewed the BTBID in 2017 for a term of ten years. This renewal of the BID continues the scope of services going forward, contemplates an increase in collections from 1% to 3% of room rates, and provides an updated Management District Plan which details the proposed BID services for the renewed BTBID and also includes the proposed boundary of the BTBID, a budget, and a proposed means of governance. The BTBID will continue to include all lodging businesses existing and, in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. The renewed BTBID will have a ten (10) year life. The assessment will be implemented beginning July 1, 2025. Once per year beginning on the anniversary of district renewal

Re-Establishment of the Berkeley Tourism Business Improvement District PUBLIC HEARING June 24, 2025

there is a 30-day period in which business owners paying more than fifty percent (50%) of the assessment may protest and begin proceedings to terminate the district.

The City will be responsible for collecting the assessment on a monthly basis from each assessed lodging business. The City shall forward the assessments to Visit Berkeley, which will have the responsibility of managing BTBID programs as provided in the Management District Plan. The City shall retain a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
None.

RATIONALE FOR RECOMMENDATION
Renewal of the BTBID will continue a stable funding source for tourism promotion and visitor resources in Berkeley. Modification of the current BTBID’s term will allow the current BTBID’s term to end before the renewed BTBID is implemented. This effort will continue to build on Berkeley’s success as a visitor destination and will help to maintain and grow General Fund revenues generated by TOT and other visitor-generated sales taxes.

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Eleanor Hollander, Office of Economic Development, (510) 981-7536 Attachments:
1: Resolution: Declaring Results of Majority Protest Proceedings and Renewing the Berkeley Tourism Business Improvement District, 2025-2035 Exhibit 1A: District Boundaries
2: Resolution: Modifying the Berkeley Tourism Business Improvement District for a term ending June 30, 2025
Exhibit 2A: Letter from Visit Berkeley Requesting Modification of the Management District Plan of the Berkeley Tourism Business Improvement District, March 28, 2025
3: Public Meeting, Berkeley City Council, Item 26, Re-Establishment - Berkeley Tourism Business Improvement District, June 3, 2025.
4: Public Hearing Notice

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

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY DECLARING

RESULTS OF MAJORITY PROTEST PROCEEDINGS AND RENEWING THE

BERKELEY TOURISM BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et. seq., authorizes the City to renew business improvement districts upon petition by a weighted majority of the lodging business owners located within the boundaries of the district; and
WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the Berkeley Tourism Business Improvement District (“BTBID”) have petitioned the City Council to renew the BTBID; and WHEREAS, included with the petitions was a Management District Plan (“Plan”) summary that describes the proposed assessment to be levied on lodging businesses within the BTBID to pay for marketing and sales promotions and cultural tourism programs, and other improvements and activities set forth in the Plan; and WHEREAS, the assessed lodging businesses within the BTBID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on May 6, 2025, at 6:00 PM at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702, the City Council adopted a Resolution of Intention, Resolution No. 71,749–N.S. (BTBID Renewal); and WHEREAS, the public meeting and public hearing to consider the renewal of the BTBID have been properly noticed in accordance with Streets and Highways Code §36623; and WHEREAS, on June 3, 2025, at 6:00 PM at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702, the City Council held a public meeting regarding the renewal of the BTBID, and the City Council heard and received objections and protests, if any, to the renewal of the BTBID and the levy of the proposed assessment; and
WHEREAS, on June 24, 2025, at 6:00 PM at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702, the City Council held a public hearing regarding the renewal of the BTBID, and the City Council heard and received all objections and protests, if any, to the renewal of the BTBID and the levy of the proposed assessment; and
WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the proposed BTBID which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and
Attachment 1

WHEREAS, the City bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary to cover the costs to the City in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor.

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

1. The recitals set forth herein are adopted by the City Council as findings and they are true and correct.

2. The Berkeley Tourism Business Improvement District is hereby renewed for a ten (10) year term, beginning July 1, 2025, or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.

3. The Management District Plan or “Plan” dated March 5, 2025, is hereby adopted and approved.

4. The activities to be provided to benefit lodging businesses in the district will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the BTBID; to provide activities or improvements outside the BTBID; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the BTBID boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the BTBID.

5. The City Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the BTBID that is not provided to those not paying the assessment.
b) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the City of conferring the benefit or granting the privilege.
c) The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the city of providing the service or product.
d) Assessments imposed pursuant to the BTBID are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If the business owner chooses to collect any portion of the assessment from a transient, that portion shall be

specifically called out and identified for the transient in any and all communications from the business owner as the “BTBID Assessment” or “Tourism Assessment” as specified in the Plan.

6. The assessments levied for the BTBID shall be applied towards marketing and sales promotions and cultural tourism programs to market assessed lodging businesses as tourist, meeting and event destinations as set forth in the Plan.

7. Assessments levied on lodging businesses pursuant to this resolution shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on room rentals is the best measure of benefit.

8. Bonds shall not be issued to fund the BTBID.

9. The BTBID shall include all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy located within the boundaries of the City of Berkeley. A boundary map is attached hereto and incorporated herein by reference.

10. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the BTBID assessment is levied as long as they are used consistent with the requirements set forth herein.

11. The assessments to fund the activities and improvements for the BTBID will be collected by the City on a monthly basis, and in accordance with Streets and Highways Code §36631.

12. The City Council, through adoption of this Resolution and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the BTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visit Berkeley shall continue to be the BTBID Owners’ Association.

13. Visit Berkeley, pursuant to Streets and Highways Code §36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities

described in the report. The first report shall be due after the first year of operation of the BTBID.

14. The BTBID renewed pursuant to this resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.).

15. The City Clerk, or their designee, is directed to take all necessary actions to complete the establishment of the BTBID and to levy the assessments.

16. This Resolution shall take effect immediately upon its adoption by the City Council.

Exhibit
1A: District Boundaries

EXHIBIT 1A: District Boundaries

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

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY MODIFYING

THE MANAGEMENT DISTRICT PLAN OF THE BERKELEY TOURISM BUSINESS

IMPROVEMENT DISTRICT
WHEREAS, on April 25, 2017, the City Council of the City of Berkeley (“City Council”) adopted Resolution No. 67-926-N.S. declaring the results of the majority protest proceedings and renewing the Berkeley Tourism Business Improvement District (“BTBID”); and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows cities to modify the Management District Plan (“Plan” or “MDP”) of a district at the request of the Owners’ Association; and WHEREAS, the BTBID Owners’ Association, Visit Berkeley, has requested modification of the BTBID Plan; and
WHEREAS, on May 6, 2025, at 6:00 PM at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702, the City Council adopted a Resolution of Intention to Modify the Management District Plan of the BTBID, No. 71,750–N.S. (“Resolution of Intention”); and
WHEREAS, the Resolution of Intention was properly and published in accordance with Streets and Highways Code Section 36636; and
WHEREAS, a public hearing on the proposed modification was held on June 24, 2025, at 6:00 PM at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702, and the City Council heard and received objections and protests, if any, to the modification of the BTBID Plan.

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

1. The recitals set forth herein are true and correct.

2. The City Council hereby modifies the BTBID MDP. The modification of the BTBID MDP will reduce the term of the BTBID from ten (10) years to eight (8) years, so that the term of the BTBID ends on June 30, 2025.

3. This resolution shall take effect immediately upon its adoption by the City Council.

Attachment 2

EXHIBIT 2A: Letter from Visit Berkeley Requesting Modification of the Management District Plan of the Berkeley Tourism Business Improvement District

Office of the City Manager

ACTION CALENDAR
June 3, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Manager, Office of Economic Development Subject: Re-Establishment - Berkeley Tourism Business Improvement District

RECOMMENDATION
Conduct a public meeting to review and discuss the intention to renew the Berkeley Tourism Business Improvement District (BTBID) for ten (10) years starting July 1, 2025 (hereafter, “BTBID”, “Tourism BID”, “BID” or “the District”). On May 6, 2025 Council adopted Resolution No. 71,749–N.S., which states the intention to renew the Tourism BID and directed the City Clerk to schedule a public meeting on June 3, 2025, and a public hearing on June 24, 2025 to consider the renewal of the District.

Per state law, a public meeting is required at which local officials allow public testimony regarding the proposed new assessment in addition to the noticed public hearing at which the legislative body proposes to enact the assessment.

FISCAL IMPACTS OF RECOMMENDATION
The proposed renewed BTBID would place a three percent (3%) assessment on short-term sleeping room rental revenue on all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. Lodging businesses may include, but are not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, or other similar structure or portion thereof.

The Resolution of Intention (NO. 71,749-N.S.) to renew the Berkeley Tourism Business Improvement District (BTBID), was adopted by the Berkeley City Council on May 6, 2025 (Attachment 1) with an accompanying staff report detailing the Tourism BID renewal process (Attachment 2). The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000 in FY2026. If renewed, the BTBID would be in effect for ten (10) years and a similar assessment budget is expected to apply to subsequent years, though the total assessment amounts would vary each year based on the revenue generated by the lodging businesses.

The BTBID Management District Plan (Attachment 2, Exhibit 5) designates that the

26

funds generated by the BTBID are to be used for marketing & sales promotions, cultural tourism programs, and other specific lodging business-serving activities. One percent (1%) of the funds would be retained annually by the City for its administrative services in collecting the assessments and contracting for the BTBID services.

Because the BTBID programs are designed to bring more visitors to the City, the program may result in an increase in transient occupancy tax (TOT) collections. There may also be an increase in travel-related sales tax revenues as a result of higher hotel occupancies. If the proposed BTBID is renewed, the City will be responsible for collecting and forwarding assessment funds. Annual assessment funds will be deposited into Tourism BID Fund 781-21-208-251-0000-000-000-412110 and expended from fund 781-21-208-251-0000-000-446-636110.

CURRENT SITUATION AND ITS EFFECTS
The Property and Business Improvement District Law of 1994, requires specific actions to create or expand a tourism or property-based improvement district including requiring Council to conduct at least one
public meeting at which local officials allow
public testimony regarding the proposed new assessment in addition to the noticed public hearing at which the legislative body proposes to enact the assessment.

On May 6, 2025 Council adopted Resolution No. 71,749–N.S., which states the

intention to renew the Tourism BID and directed the City Clerk to schedule a public meeting on June 3, 2025, and a public hearing on June 24, 2025 to consider the renewal of the District. The City Clerk’s Office gave joint notice of both by mailing Resolution No. 71,749-N.S. to all affected lodging establishments in the proposed District.

Renewal of the Tourism Business Improvement District CONSENT CALENDAR June 3, 2025
In Berkeley, the convention and visitor’s bureau, known as Visit Berkeley, established a Tourism BID in 2012 known as the BTBID for a term of five years and subsequently renewed the BTBID in 2017 for a term of ten years. The proposed Tourism BID continues the same scope of services going forward, contemplates an increase in collections from 1% to 3% of room rates, and provides an updated Management District Plan which details the proposed BID services for the renewed BTBID and also includes the proposed boundary of the BTBID, a budget, and a proposed means of governance.

The BTBID will continue to include all lodging businesses existing and, in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. The renewed BTBID will have a ten (10) year life. The assessment will be implemented beginning July 1, 2025. Once per year beginning on the anniversary of district renewal there is a 30-day period in which business owners paying more than fifty percent (50%) of the assessment may protest and begin proceedings to terminate the district. The City will be responsible for collecting the assessment on a monthly basis from each assessed lodging business. The City shall forward the assessments to Visit Berkeley, which will have the responsibility of managing BTBID programs as provided in the Management District Plan. The City shall retain a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.

BACKGROUND
A Tourism BID is a special purpose Business Improvement District (BID) focused on the hotel sector. Tourism BIDs are formed by a local city government at the request of hotels and motels which stand to benefit from joint marketing and promotion activities directed by a separate non-profit corporation. Renewal of the BTBID will continue a stable funding source for tourism promotion and visitor resources in Berkeley.

RATIONALE FOR RECOMMENDATION
This public meeting is required by California Government Code’s Property and Business Improvement District Law of 1994.

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Eleanor Hollander, Office of Economic Development, 510-981-7536 Attachments:

1.Resolution No. 71, 749-N.S. - Resolution of Intention to Renew the Berkeley Tourism Business Improvement District (2025), Adopted Berkeley City Council, May 6, 2025.

2. Berkeley City Council, Re-Establishment of the Berkeley Tourism Business Improvement District, Item 2, May 6, 2025

Attachment 1
RESOLUTION NO. 71,749-N.S.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY DECLARING ITS

INTENTION TO RENEW THE BERKELEY TOURISM BUSINESS IMPROVEMENT DISTRICT (BTBID) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC

HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, the City of Berkeley (City) created the BTBID on September 18, 2012 by Resolution No. 65,899-N.S.; and
WHEREAS, the BTBID was subsequently renewed on April 25, 2017 by Resolution No. 67-926-N.S.; and
WHEREAS, the BTBID was renewed for a ten (10) year term which ends on June 30, 2027, and the BTBID Owner’s Association, Visit Berkeley, has requested the City Council to modify the Management District Plan (Plan) of the BTBID so that the current BTBID term ends June 30, 2025; and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, Visit Berkeley, lodging business owners, and representatives from the City have met to consider the renewal of the BTBID; and
WHEREAS, Visit Berkeley has drafted a Plan which sets forth the proposed boundary of the BTBID, a service plan and budget, and a proposed means of governance; and WHEREAS, lodging business which will pay more than fifty percent (50%) of the assessment under the BTBID have petitioned the City Council to renew the BTBID.

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:

1. The recitals set forth herein are true and correct.

2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the BTBID. The City Council accepts the petitions and adopts this Resolution of Intention to renew the BTBID and to levy an assessment on certain lodging businesses within the BTBID boundaries in accordance with the Property and Business Improvement District Law of 1994.

3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code § 36622.

4. The City Council declares its intention to renew the BTBID and to levy and collect assessments on lodging businesses within the BTBID boundaries pursuant to the Property and Business Improvement District Law of 1994.

5. The BTBID shall include all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City, as shown in the map attached as Exhibit A.

6. The name of the district shall be Berkeley Tourism Business Improvement District.

7. The annual assessment rate is three percent (3%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty.

8. The assessments levied for the BTBID shall be applied toward marketing & sales promotions and cultural tourism programs to market assessed lodging businesses in the City as tourist, meeting, and event destinations, as described in the Plan.

Funds remaining at the end of any year may be used in subsequent years in which BTBID assessments are levied as long as they are used consistent with the requirements of this resolution, the resolution of formation, and the Plan.

9. Subject to completion of the modification of the current BTBID term, the renewed BTBID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.

10. Bonds shall not be issued to fund the BTBID.

11. The time and place for the public meeting to hear testimony on renewing the BTBID and levying assessments are set for June 3, 2025, at 6:00 PM, or as soon thereafter as the matter may be heard, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702.

12. The time and place for the public hearing to renew the BTBID and the levy of assessments are set for June 24, 2025, at 6:00 PM, or as soon thereafter as the matter may be heard, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than May 9, 2025.

13. At the public meeting and hearing the testimony of all interested persons for or against the renewal of the BTBID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the proposed BTBID that will pay fifty percent (50%) or more of the estimated total assessment of the entire BTBID, no further proceedings to renew the BTBID shall occur for a period of one year.

14. The complete Plan is on file with the City Clerk and may be reviewed upon request.

15. This resolution shall take effect immediately upon its adoption by the City Council.

Exhibit A: District Boundaries

EXHIBIT A
District Boundaries

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
May 6, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Economic Development Manager Subject: Re-Establishment of the Berkeley Tourism Business Improvement District

RECOMMENDATION

1. Adopt a Resolution declaring the City Council’s intention to renew the Berkeley Tourism Business Improvement District (BTBID) for ten (10) years starting July 1, 2025, and directing the City Manager to schedule a public meeting on June 3, 2025 and a public hearing on June 24, 2025 to renew the BTBID.

2. Adopt a Resolution declaring the City Council’s intention to modify the existing BTBID to end on June 30, 2025, shortening the existing BTBID’s term from ten (10) years to eight (8) years and directing the City Manager to schedule a public hearing on June 24, 2025 on modification of the BTBID Management District Plan (Plan).

3. Adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with Visit Berkeley, the BTBID’s Owners’ Association and the City of Berkeley’s Convention and Visitor’s Bureau, for an amount not to exceed total Tourism BID collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035.

SUMMARY
The Berkeley Tourism Business Improvement District or, BTBID, is a benefit assessment district created in 2012 and subsequently renewed in 2017, to fund marketing and sales promotion efforts for assessed lodging businesses in Berkeley with five rooms or more. Lodging business owners decided to pursue renewal of the BTBID in order to maintain a revenue source devoted to marketing the City of Berkeley (City) as a destination for tourism, meetings, and events. The City contracts with Visit Berkeley, the BTBID’s Owners’ Association, which also functions as the City’s Convention and Visitor’s Bureau to implement the activities funded by the BTBID. These activities are described fully in the BTBID Management District Plan and are incorporated as Attachment 5.

The BTBID is proposed to be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et. seq. If

Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025

renewed, the BTBID District would generate funding annually—approximately $2,221,000 in FY 2026—for the promotion of travel and tourism specific to Berkeley.

Staff recommends that the City Council adopt the attached Resolution of Intention to Renew the BTBID, directing the City Manager to schedule a public meeting on June 3, 2025, and a public hearing on June 24, 2025, on the renewal and the levy of assessments on lodging businesses with five rooms or more within the boundaries of the City of Berkeley.

In addition, staff and the BTBID’s Owners’ Association seek to modify the existing BTBID to shorten the term by two years to conclude on June 30, 2025. The purpose of the modification is to align the BTBID’s term with the renewal term, implementing the annual assessment rate of 3% of gross short-term sleeping room rental revenue. Staff recommends that the City Council adopt the attached Resolution of Intention to Modify the BTBID, directing the City Manager to schedule a public hearing on June 24, 2025 on the modification of the Plan.

Finally, staff recommends that council adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with Visit Berkeley, the BTBID’s Owners’ Association and the City of Berkeley’s Convention and Visitor’s Bureau, for an amount not to exceed total Tourism BID collections for the term of the renewed BTBID, beginning on July 1, 2025, and concluding on June 30, 2035.

FISCAL IMPACTS OF RECOMMENDATION
The proposed renewed BTBID would place a three percent (3%) assessment on short- term sleeping room rental revenue on all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. Lodging businesses may include, but are not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, or other similar structure or portion thereof.

The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000 in FY2026. If renewed, the BTBID would be in effect for ten (10) years and a similar assessment budget is expected to apply to subsequent years, though the total assessment amounts would vary each year based on the revenue generated by the lodging businesses.

The Management District Plan (Attachment 5) designates that the funds generated by the BTBID are to be used for marketing & sales promotions, cultural tourism programs, and other specific lodging business-serving activities. One percent (1%) of the funds would be retained annually by the City for its administrative services in collecting the assessments and contracting for the BTBID services. Because the BTBID programs are designed to bring more visitors to the City, the program should continue to result in an increase in transient occupancy tax (TOT) collections. There may also be an increase in travel-related sales tax revenues as a result of higher hotel occupancies.

Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025

These Resolutions will have minor administrative impact. The City Manager will be directed to mail notice of hearings and a copy of the Resolution of Intention to all lodging businesses within the proposed BTBID. If the proposed BTBID is renewed, the City will be responsible for collecting and forwarding assessment funds and will be reimbursed for the cost of this service. Annual assessment funds will be deposited into Tourism BID Fund 781-21-208-251-0000-000-000-412110 and expended from fund 781-21-208-251-0000-000-446-636110.

CURRENT SITUATION AND ITS EFFECTS
The BTBID is a benefit assessment district created in 2012 (Resolution No. 65,899– N.S.) and subsequently renewed in 2017 (Resolution No 67-926-N.S.) to provide marketing & sales promotions for assessed lodging businesses. The proposed renewed BTBID includes all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. The proposed renewed BTBID would place a three percent (3%) assessment on short-term sleeping room rental revenue on all lodging businesses. Lodging business owners decided to pursue renewal of the BTBID and increase the assessment from 1% to 3% in order to maintain a revenue source devoted to marketing the City as a destination for tourism, meetings, and events and to add a cultural resources component to their programing as outlined on page 8 of the BTBID Management District Plan (Attachment 5).

The current BTBID was renewed in 2017 for a ten (10) year term, beginning July 1, 2017, through June 30, 2027. Visit Berkeley, the BTBID’s Owners’ Association, has requested that the current BTBID term be modified to shorten the ten (10) year term to eight (8) years. The process to modify the current BTBID is set to be completed concurrently with the completion of BTBID renewal. That is, the proposed modified BTBID’s term will expire on June 30, 2025, and the renewed BTBID will begin on July 1, 2025, with no break in service. The purpose of the modification is to align the BTBID’s term with the renewed term, while simultaneously implementing the annual assessment rate of three percent (3%) of gross short-term sleeping room rental revenue.

The Tourism BID assessment would continue to be collected from the assessed businesses by the City concurrently with Transient Occupancy Tax, or TOT, which remains at 1%. The City would continue to contract with Visit Berkeley to act as the Owners’ Association of the BTBID and provide services with the BTBID funds collected.

The BTBID Management District Plan designates that the funds would be used for marketing & sales promotions and cultural tourism programs. The BTBID Management District Plan also calls for City oversight of Visit Berkeley’s management of BTBID funds, including the yearly submission of an annual report and proposed budget for the following Fiscal Year, typically presented to City Council in late spring/early summer prior to the commencement of the fiscal year on July 1.

Renewal Process
The BTBID Owners’ Association, Visit Berkeley, began the process of renewing the BTBID in January 2025 by circulating a petition of all eligible lodging establishments. In March 2025, the Berkeley City Clerk certified that the City has received written petitions

Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025

signed by lodging business owners in the proposed district who will pay more than fifty percent (50%) of the assessments proposed to be levied (Attachment 4) with the assistance of the City’s Finance Department. This majority petition allows the City Council to initiate proceedings for district renewal. The Adoption of the attached Resolution is the first City Council action required to renew the BTBID.

Following the adoption of the Resolution of Intention to renew the district, the City Council must also schedule and hold a public meeting, where the City Council must allow public testimony regarding the proposed assessment. Finally, the City Council must schedule and hold a public hearing where any protests may be received. If at the time of the public hearing, written protests have not been received from businesses that will pay fifty percent or more of the proposed assessments, the City Council can adopt a resolution renewing the BTBID. Staff recommends that the City Council adopt the Resolution of Intention to renew the BTBID, directing the City Manager to schedule a public meeting for June 3, 2025, and the final public hearing for June 24, 2025.

District Modification Process
At the written request of the BTBID Owners’ Association, the City Council may modify the existing Management District Plan after conducting one public hearing on the proposed modification. Visit Berkeley, the BTBID’s Owners’ Association, has submitted a letter to City Council requesting modification of the current BTBID’s term to shorten the term from ten (10) years to eight (8) years (Attachment 2: Exhibit A). Submission of this written request allows the City Council to initiate proceedings to modify the current term of the BTBID.

The Property and Business Improvement District Law of 1994 requires the City to mail a copy of the Resolution of Intention to modify the BTBID to assessed lodging businesses within the BTBID. The resolution must be mailed at least ten (10) days before the public hearing on the modification. The Property and Business Improvement District Law of 1994 also requires the City to publish a copy of the Resolution of Intention to modify the BTBID in a newspaper of general circulation in the City. The resolution must be published once at least seven (7) days before the public hearing on the modification.

Staff recommends that the City Council adopt the attached Resolution of Intention to Modify the BTBID, directing the City Manager to schedule a public hearing on the proposed modification on June 24, 2025, concurrently with the public hearing to renew the district for ten years for a term of 2025-35. If the City Council, following the public hearing, decides to modify the current BTBID, the City Council can adopt a resolution of modifying the existing Management District Plan to conclude on June 24, 2025.

Contract for Distribution of Tourism BID Funds
Pending the modification of the existing term of the Tourism BID, and the successful renewal of the BTBID for 2025-35, staff recommends that council adopt a Resolution authorizing the City Manager to execute a contract and any necessary amendments with Visit Berkeley, the BTBID’s Owners’ Association and the City of Berkeley’s Convention and Visitor’s Bureau, for an amount not to exceed total Tourism BID

Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025

collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035, so the city may “pass through” the collected assessments to the owners association smoothly.

BACKGROUND
A Tourism BID is a special purpose Business Improvement District (BID) focused on the hotel sector. Tourism BIDs are formed by a local city government at the request of hotels and motels which stand to benefit from joint marketing and promotion activities directed by a separate non-profit corporation. In California, more than 112 communities have established Tourism BIDs, many of which are located in the Bay Area. Tourism BID funds are customized to fit the needs of each destination and allow for a wide range of services including marketing & sales promotions and cultural tourism programs.

In Berkeley, the convention and visitor’s bureau, known as Visit Berkeley, established a Tourism BID in 2012 known as the BTBID for a term of five years and subsequently renewed the BTBID in 2017 for a term of ten years. This renewal of the BID continues the same scope of services going forward, contemplates an increase in collections from 1% to 3% of room rates, and provides an updated Management District Plan (Attachment 4) which details the proposed BID services for the renewed BTBID and also includes the proposed boundary of the BTBID, a budget, and a proposed means of governance. The BTBID will continue to include all lodging businesses existing and, in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City. The renewed BTBID will have a ten (10) year life. The assessment will be implemented beginning July 1, 2025. Once per year beginning on the anniversary of district renewal there is a 30-day period in which business owners paying more than fifty percent (50%) of the assessment may protest and begin proceedings to terminate the district.

The City will be responsible for collecting the assessment on a monthly basis from each assessed lodging business. The City shall forward the assessments to Visit Berkeley, which will have the responsibility of managing BTBID programs as provided in the Management District Plan. The City shall retain a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.

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

RATIONALE FOR RECOMMENDATION
Renewal of the BTBID will continue a stable funding source for tourism promotion and visitor resources in Berkeley. Modification of the current BTBID’s term will allow the current BTBID’s term to end before the renewed BTBID is implemented. This effort will continue to build on Berkeley’s success as a visitor destination and will help to maintain and grow General Fund revenues generated by TOT and visitor-generated sales taxes.

Re-Establishment of the Berkeley Tourism Business Improvement District CONSENT CALENDAR May 6, 2025

ALTERNATIVE ACTIONS CONSIDERED
None.

CONTACT PERSON
Eleanor Hollander, Office of Economic Development, (510) 981-7536 Attachments:
1: Resolution: Resolution of the City Council of the City of Berkeley Declaring its Intention to Renew the Berkeley Tourism Business Improvement District and Fixing the Time and Place of a Public Meeting and a Public Hearing Thereon and Giving Notice Thereof
EXHIBIT A: District Boundaries
2: Resolution: Resolution of the City Council of the City of Berkeley Declaring its Intention to Modify the Berkeley Tourism Business Improvement District and Public Hearing Notices
EXHIBIT A: Letter from Visit Berkeley Requesting Modification of the Management District Plan for the Berkeley Tourism Business Improvement District
3: Resolution: Contract with Visit Berkeley to Implement the Berkeley Tourism Business Improvement District
4: Tourism BID Petition Certification, March 2025
5: Berkeley Tourism Business Improvement District Management District Plan, 2025

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

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY DECLARING

ITS INTENTION TO RENEW THE BERKELEY TOURISM BUSINESS IMPROVEMENT

DISTRICT (BTBID) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND

A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, the City of Berkeley (City) created the BTBID on September 18, 2012 by Resolution No. 65,899-N.S.; and
WHEREAS, the BTBID was subsequently renewed on April 25, 2017 by Resolution No. 67-926-N.S.; and
WHEREAS, the BTBID was renewed for a ten (10) year term which ends on June 30, 2027, and the BTBID Owner’s Association, Visit Berkeley, has requested the City Council to modify the Management District Plan (Plan) of the BTBID so that the current BTBID term ends June 30, 2025; and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, Visit Berkeley, lodging business owners, and representatives from the City have met to consider the renewal of the BTBID; and
WHEREAS, Visit Berkeley has drafted a Plan which sets forth the proposed boundary of the BTBID, a service plan and budget, and a proposed means of governance; and WHEREAS, lodging business which will pay more than fifty percent (50%) of the assessment under the BTBID have petitioned the City Council to renew the BTBID.

NOW THEREFORE, BE IT RESOLVED BY THE BERKELEY CITY COUNCIL THAT:

1. The recitals set forth herein are true and correct.

2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the BTBID. The City Council accepts the petitions and adopts this Resolution of Intention to renew the BTBID and to levy an assessment on certain lodging businesses within the BTBID boundaries in accordance with the Property and Business Improvement District Law of 1994.

3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code § 36622.

4. The City Council declares its intention to renew the BTBID and to levy and collect assessments on lodging businesses within the BTBID boundaries pursuant to the Property and Business Improvement District Law of 1994.

Attachment 1

5. The BTBID shall include all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City, as shown in the map attached as Exhibit A.

6. The name of the district shall be Berkeley Tourism Business Improvement District

7. The annual assessment rate is three percent (3%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty.

8. The assessments levied for the BTBID shall be applied toward marketing & sales promotions and cultural tourism programs to market assessed lodging businesses in the City as tourist, meeting, and event destinations, as described in the Plan.

Funds remaining at the end of any year may be used in subsequent years in which BTBID assessments are levied as long as they are used consistent with the requirements of this resolution, the resolution of formation, and the Plan.

9. Subject to completion of the modification of the current BTBID term, the renewed BTBID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.

10. Bonds shall not be issued to fund the BTBID.

11. The time and place for the public meeting to hear testimony on renewing the BTBID and levying assessments are set for June 3, 2025, at 6:00 PM, or as soon thereafter as the matter may be heard, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702.

12. The time and place for the public hearing to renew the BTBID and the levy of assessments are set for June 24, 2025, at 6:00 PM, or as soon thereafter as the matter may be heard, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702. The City Manager is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than May 9, 2025.

13. At the public meeting and hearing the testimony of all interested persons for or against the renewal of the BTBID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the proposed BTBID that will pay fifty percent (50%) or more of the estimated total assessment of the entire BTBID, no further proceedings to renew the BTBID shall occur for a period of one year.

14. The complete Plan is on file with the City Clerk and may be reviewed upon request.

15. This resolution shall take effect immediately upon its adoption by the City Council.

Exhibit
A: District Boundaries

EXHIBIT A
District Boundaries

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

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY DECLARING

ITS INTENTION TO MODIFY THE BERKELEY TOURISM BUSINESS IMPROVEMENT

DISTRICT
WHEREAS, on April 25, 2017 the City Council of the City of Berkeley (City Council) adopted Resolution No. 67-926-N.S. declaring the results of the majority protest proceedings and renewing the Berkeley Tourism Business Improvement District (BTBID); and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows cities to modify the Management District Plan (Plan) of a District at the request of the Owners’ Association; and WHEREAS, the BTBID Owners’ Association, Visit Berkeley, has requested modification of the Plan.

NOW THEREFORE, BE IT RESOLVED BY THE BERKELEY CITY COUNCIL THAT:

1. The recitals set forth herein are true and correct.

2. The City Council declares its intention to modify the BTBID Plan.

3. The proposed modification of the BTBID Plan will reduce the term of the BTBID from ten (10) years to eight (8) years, with a modified ending date of June 30, 2025.

4. The time and place for a public hearing on modification of the BTBID Plan are set for 6:00 PM or as soon thereafter as the matter may be heard on June 24, 2025 at School District Board Room located at 1231 Addison Street, Berkeley, CA 94702.

5. This resolution shall take effect immediately upon its adoption by the City Council.

Exhibit
A: Letter from Visit Berkeley Requesting Modification of the Management District Plan of the Berkeley Tourism Business Improvement District
Attachment 2

EXHIBIT A: Letter from Visit Berkeley Requesting Modification of the Management District Plan for the Berkeley Tourism Business Improvement District

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

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH VISIT BERKELEY THE OWNERS’ ASSOCATION OF THE BERKELEY TOURISM

BUSINESS IMPROVEMENT DISTRICT (BTBID), TO IMPLEMENT THE BERKELEY

TOURISM BUSINESS IMPROVEMENT DISTRICT FOR THE TERM OF THE

RESTABLISHED TOURISM BUSINESS IMPROVEMENT DISTRICT
WHEREAS, Visit Berkeley (VB) has proven to be an effective partner with the City of Berkeley in managing the existing Berkeley Tourism Business Improvement District (BTBID) and implementing hotel and tourism marketing and promotions; and WHEREAS, Visit Berkeley is the single private sector organization that is taking comprehensive action to improve the economic vitality of the hotel sector across Berkeley, as reflected in Visit Berkeley’s current stewardship of the established Berkeley Tourism Business Improvement District; and
WHEREAS, Visit Berkeley, the convention and visitor’s bureau for the City of Berkeley, has declared its intention to renew the Berkeley Tourism Business Improvement District (BTBID) for ten (10) years starting July 1, 2025; and
WHEREAS, Visit Berkeley functions as the Owners’ Association of the BTBID; and WHEREAS, Visit Berkeley, in its capacity as the Owners’ Association of the BTBID, has drafted a Management District Plan which sets forth the proposed boundary of the BTBID, a service plan and budget, and a proposed means of governance; and WHEREAS, The BTBID Owners’ Association, Visit Berkeley, is charged with managing funds and implementing programs in accordance with the Management District Plan, and must provide annual reports to the City; and
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is hereby authorized to execute a sole source contract and any amendments with Visit Berkeley for the purpose of implementation of the BTBID Management District Plan, for an amount not to exceed total Tourism BID collections for the term of the renewed BTBID, beginning on July 1, 2025 and concluding on June 30, 2035. A record signature copy of said contract and any amendments are to be on file in the Office of the City Clerk.

Attachment 3

NOTICE OF PUBLIC MEETING AND PUBLIC HEARING

BERKELEY CITY COUNCIL

CONCERNING THE RENEWAL OF THE BERKELEY TOURISM

BUSINESS IMPROVEMENT DISTRICT AND LEVY OF AN

ASSESSMENT ON CERTAIN LODGING BUSINESSES WITHIN THE

DISTRICT
NOTICE IS HEREBY GIVEN that on May 6, 2025, the City Council (the “Council”) of the City of Berkeley (the “City”) adopted a Resolution of Intention to renew the Berkeley Tourism Business Improvement District (the “BTBID”) and to levy an assessment on certain lodging businesses within the BTBID as set forth in the attached Resolution of Intention.

NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on June 3, 2025, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702, a public meeting shall be held pursuant to Government Code section 54954.6 to allow public testimony regarding the renewal of the BTBID and the levy of assessments therein as set forth in the enclosed Resolution of Intention and pursuant to Government Code section 54954.6.

NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on June 24, 2025, at School District Board Room located at 1231 Addison Street, Berkeley, CA 94702 has been set as the time and place for a public hearing at which time the City Council proposes to renew the BTBID and to levy the proposed assessment as set forth in the Resolution of Intention.

Location: The renewed BTBID includes all lodging businesses, existing and in the future, with five (5) rooms or more, available for public occupancy within the boundaries of the City.

Services: The BTBID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing & sales promotions and cultural tourism programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.

Budget: The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do and as businesses open and close.

Cost: The existing annual assessment rate is one percent (1%) of gross short- term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any officer or employee of a government who is exempt by express provision of federal international treaty; and stays at a bed and breakfast establishment as defined in Section 23F.04.010 of the Berkeley Municipal Code. The proposed annual assessment rate is three percent (3%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty.

Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each assessed lodging business located in the boundaries of the BTBID.

The City shall take all reasonable efforts to collect the assessments from each assessed lodging business.

Duration: The renewed BTBID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date.

After ten (10) years, the BTBID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. if business owners support continuing the BTBID programs.

Management: Visit Berkeley shall continue to serve as the BTBID’s Owners’ Association.

The Owners’ Association is charged with managing funds and implementing programs and must provide annual reports to the City Council.

Protest: Any owner of a lodging business within the proposed BTBID that will be subject to the assessment may protest the renewal of the BTBID. If written protests are received from the owners of lodging businesses in the proposed BTBID who represent 50 percent (50%) or more of the estimated annual assessments to be levied, the BTBID shall not be renewed, and the assessment shall not be imposed.

You may mail a written protest to:

Office of the City Clerk
City of Berkeley
2180 Milvia Street, 1st Floor
Berkeley, CA 94704
You may also appear at the public meeting or hearing and submit a written protest at that time.

Information: Should you desire additional information about this proposed BTBID or assessment contact:

Jeffrey Church, President & CEO
Visit Berkeley
2030 Addison Street, #102
Berkeley, CA 94704
(510) 549-7040
A copy of the agenda material for this hearing will be available on the City’s website at https://berkeleyca.gov/ as of June 12, 2025.

Written comments should be mailed or delivered directly to the City Clerk, 2180 Milvia Street, Berkeley, CA 94704, or e-mailed to [email protected] in order to ensure delivery to all Councilmembers and inclusion in the agenda packet.

Communications to the Berkeley City Council are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to the City Council, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, you may deliver communications via U.S. Postal Service or in person to the City Clerk. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the City Clerk at 981-6900 or [email protected] for further information.

Mailed: *________*
Notice provided pursuant to Government Code section 54954.6. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the Notice for this Public Hearing of the Berkeley City Council was posted at the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way, as well as on the City’s website, on June 12, 2025.
__________________________________
Mark Numainville, City Clerk

NOTICE OF PUBLIC HEARING

BERKELEY CITY COUNCIL

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BERKELEY

DECLARING ITS INTENTION TO MODIFY THE BERKELEY TOURISM

BUSINESS IMPROVEMENT DISTRICT
NOTICE IS HEREBY GIVEN that at 6:00 PM on June 24, 2025, at the School District Board Room located at 1231 Addison Street, Berkeley, CA 94702 has been set as the time and place for a public hearing at which time the Council proposes to modify the existing BTBID, to conclude service on June 30, 2025, as set forth in the Resolution of Intention.

Location: There is no proposed change to BTBID boundaries which include all lodging businesses with five (5) rooms or more, located within the boundaries of the City of Berkeley.

Services: The BTBID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.

Budget: The total BTBID annual budget for each full year of operation is anticipated to be approximately $557,760. This budget is expected to fluctuate as room sales do, but is not expected to significantly change over the BTBID’s term.

Cost: There is no change proposed to the annual assessment rate. The current assessment rate is one percent (1%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any officer or employee of a government who is exempt by express provision of federal international treaty; and stays at a bed and breakfast establishment as defined in Section 23F.04.010 of the Berkeley Municipal Code.

Collection: The City of Berkeley will continue to be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business with five (5) rooms or more, located in the boundaries of the BTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business.

Duration: The modified BTBID will have an eight (8) year life, with a modified ending date of June 30, 2025. The City of Berkeley created the BTBID on April 25, 2017 by Resolution No. 67-926-N.S.; for a ten (10) year term which

currently ends on June 30, 2027. The BTBID Owner’s Association has requested the City Council to modify the Management District Plan of the BTBID so that the current BTBID term ends June 30, 2025. The process to modify the current BTBID is set to be completed concurrently with completion of BTBID renewal. That is, the proposed modified BTBID’s term will expire on June 30, 2025, and the renewed district will begin on July 1, 2025 with no break in service. The purpose of the modification is to align the BTBID’s term with the rewed BTBID, implementing the annual assessment rate of 3% of gross short-term sleeping room rental revenue.

Management: Visit Berkeley will continue to serve as the BTBID’s Owners’ Association.

The Owners’ Association is charged with managing funds and implementing programs in accordance with the Plan, and must provide annual reports to the City of Berkeley.

Protest: Any owner of a lodging business within the proposed BTBID that will be subject to the assessment may protest the modification of the BTBID. If written protests are received from the owners of lodging businesses in the existing BTBID who represent fifty percent (50%) or more of the estimated annual assessments to be levied, the BTBID shall not be modified.

You may mail a written protest to:

Office of the City Clerk
City of Berkeley
2180 Milvia Street, 1st Floor
Berkeley, CA 94704
You may also appear at the public meeting or hearing and submit a written protest at that time.

Information: Should you desire additional information about the modified BTBID or assessment contact:

Jeffrey Church, President & CEO
Visit Berkeley
2030 Addison Street, #102
Berkeley, CA 94704
(510) 549-7040
A copy of the agenda material for this hearing will be available on the City’s website at https://berkeleyca.gov/ as of June 12, 2025.

Written comments should be mailed or delivered directly to the City Clerk, 2180 Milvia Street, Berkeley, CA 94704, or e-mailed to [email protected] in order to ensure delivery to all Councilmembers and inclusion in the agenda packet.

Communications to the Berkeley City Council are public record and will become part of the City’s electronic records, which are accessible through the City’s website. Please note: e-mail addresses, names, addresses, and other contact information are not required, but if included in any communication to the City Council, will become part of the public record. If you do not want your e-mail address or any other contact information to be made public, you may deliver communications via U.S. Postal Service or in person to the City Clerk. If you do not want your contact information included in the public record, please do not include that information in your communication. Please contact the City Clerk at 981-6900 or [email protected] for further information.

Mailed: *______*
Notice provided pursuant to Government Code section 54954.6.

Pursuant to Streets and Highways Code section 36636, notice for the public hearing that will result from the adoption of this Resolution shall be accomplished by mailing a copy of the Resolution to assessed business owners and publishing a copy of the Resolution in a newspaper of general circulation in the City.
“Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The Resolution of Intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2) A complete copy of the Resolution of Intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.”
Mailed: *______*
Published: *______*
Notice provided pursuant to Streets and Highways Code section 36636. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the Notice for this Public Meeting and Public Hearing of the Berkeley City Council was posted at the display case located near the walkway in front of the Maudelle Shirek Build,ing 2134 Martin Luther King Jr. Way, as well as on the City’s website, on June 12, 2025.
__________________________________
Mark Numainville, City Clerk

2025-2035

BERKELEY TOURISM BUSINESS

IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN

Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

March 5, 2025

CONTENTS

I. Overview .................................................................................................................................................... 3 II. Background ................................................................................................................................................ 4 III. Accomplishments ................................................................................................................................. 5 IV. Boundary ............................................................................................................................................... 6 V. Assessment Budget And Services ........................................................................................................... 7 A. Annual Service Plan ............................................................................................................................. 7 B. Annual Budget ...................................................................................................................................... 9 C. California Constitutional Compliance ............................................................................................... 9 D. Assessment .......................................................................................................................................... 10 E. Interest And Overdue Charges ........................................................................................................ 11 F. Time And Manner For Collecting Assessments ............................................................................ 12 VI. Governance ......................................................................................................................................... 13 A. Owners’ Association .......................................................................................................................... 13 B. Brown Act And California Public Records Act Compliance ....................................................... 13 C. Annual Report .................................................................................................................................... 13 Appendix 1 – Law ............................................................................................................................................ 14 Appendix 2 – Assessed Businesses ............................................................................................................... 26

Prepared by
Civitas

(800)999-7781
www.civitasadvisors.com

BTBID Management District Plan 3
March 5, 2025
I. OVERVIEW

Developed by Berkeley lodging businesses and Visit Berkeley (VB), the convention and visitors bureau for Berkeley, California the Berkeley Tourism Business Improvement District ( BTBID) is an assessment district proposed to continue to provide specific benefits to payors by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The BTBID was initially created in 2012 for a five (5) year term , and was subsequently renewed in 2017 for a ten (10) year term. VB and Berkeley lodging businesses now wish to renew the BTBID for an additional ten (10) year term.

Location: The renewed BTBID includes all lodging businesses, existing and in the future, with five (5) rooms or more , available for public occupancy within the b oundaries of the City of Berkeley (City), as shown on the map in Section IV.

Services: The BTBID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing & sales promotions and cultural tourism programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.

Budget: The total BTBID annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,221,000. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do and as businesses with five or more lodging rooms open and close.

Cost: The annual assessment rate is three percent (3%) of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on:
stays of more than thirty (30) c onsecutive days; and stays by any officer or employee of a government who is exempt by express provision of federal international treaty .

Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each assessed lodging business located in the boundaries of the BTBID. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business.

Duration: The renewed BTBID will have a ten (10) year life, beginning July 1, 2025 or as soon as possible thereafter, and ending ten (10) years from its start date. After ten (10) years, the BTBID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if business owners support continuing the BTBID programs.

Management: VB shall continue to serve as the BTBID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Management District Plan (Plan), and must provide annual reports to the City Council.