Berkeley City Council
June 9, 2026

Tuesday, June 9, 2026 AGENDA Page 1

AGENDA

BERKELEY CITY COUNCIL MEETING
Tuesday, June 9, 2026
6:00 PM

SCHOOL DISTRICT BOARD ROOM - 1231 ADDISON STREET, BERKELEY, CA 94702 TELECONFERENCE LOCATION - 16 GARDEN STREET, CAMBRIDGE, MA 02138

ADENA ISHII, MAYOR
COUNCILMEMBERS:

DISTRICT 1 – RASHI KESARWANI DISTRICT 5 – SHOSHANA O’KEEFE DISTRICT 2 – TERRY TAPLIN DISTRICT 6 – BRENT BLACKABY
DISTRICT 3 – BEN BARTLETT DISTRICT 7 – CECILIA LUNAPARRA DISTRICT 4 – IGOR TREGUB DISTRICT 8 – MARK HUMBERT

This meeting will be conducted in a hybrid model with both in -person and virtual attendance. Attend this meeting remotely using Zoom. To request to speak, use the “raise hand” function in Zoom. To join by phone: Dial 1-669- 254-5252 or 1-833-568-8864 (Toll Free) and enter Meeting ID: 165 707 6282. To provide public comment, Press *9 and wait to be recognized by the Chair. To submit a written communication for the public record, email [email protected].

Live captioned broadcasts of Council meetings are available on B -TV (Channel 33) and via internet video stream.

All Council meetings are recorded.

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

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

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

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

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

Tuesday, June 9, 2026 AGENDA Page 2
Preliminary Matters
Roll Call:

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

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

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

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

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

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

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

Tuesday, June 9, 2026 AGENDA Page 3
Consent Calendar
The Council will first determine whether to move items on the agenda for “Action” or “Information” to the “Consent Calendar”, or move “Consent Calendar” items to “Action.” Three members of the City Council must agree to pull an item from the Consent Calendar or Information Calendar for it to move to Action.

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

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

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

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

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

Consent Calendar

1. Lease Agreement: Patpatia & Associates, Inc. for 125-127 University Avenue From: City Manager
Recommendation: Adopt second reading of Ordinance No. 8,009-N.S. executing a lease agreement with Patpatia & Associates, Inc. to lease second floor office space located at 125-127 University Avenue in the Berkeley Waterfront. The initial lease term is anticipated to begin July 1, 2026 and end June 30, 2029, with two-1-year options to extend.

First Reading Vote: All Ayes.

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

Consent Calendar
Tuesday, June 9, 2026 AGENDA Page 4

2. Amendment: FY 2026 Annual Appropriations Ordinance
From: City Manager
Recommendation: Adopt second reading of Ordinance No. 8,010-N.S. amending the FY 2026 Annual Appropriations Ordinance No. 7,993–N.S. for fiscal year 2026 based upon recommended re-appropriation of committed FY 2025 funding and other adjustments in the amount of $17,362,804 (gross) and $16,419,776 (net).

First Reading Vote: All Ayes.

Financial Implications: See report
Contact: Maricar Dupaya, Budget Manager, (510) 981-7000

3. Amendment to BMC Chapter 2.100 to Subject Pepper Spray to the Approval and Reporting Requirements of the Police Equipment Ordinance From: City Manager
Recommendation: Adopt second reading of Ordinance No. 8,011-N.S. amending Berkeley Municipal Code Section 2.100.040 to add pepper spray to the list of police equipment subject to the approval processes and reporting requirements defined in Chapter 12.8 of the California Government Code and BMC Chapter 2.100, and to require reporting on the administration of first aid following each use of pepper spray.

First Reading Vote: All Ayes.

Financial Implications: Staff time
Contact: Jennifer Louis, Police, (510) 981-5900

4. Assessments: Telegraph Property Based Business Improvement District From: City Manager
Recommendation: Adopt a Resolution approving the Telegraph Property Based Business Improvement District (TBID) Annual Report of Fiscal Year (FY) 2026 and proposed FY 2027 budget and declaring Council’s intention to levy an annual assessment for the TBID for FY 2027.

Financial Implications: See report
Contact: Eleanor Hollander, Economic Development, (510) 981-7530

5. Assessments: Berkeley Tourism Business Improvement District From: City Manager
Recommendation: Adopt a Resolution approving the Annual Planning Report and preliminary budget for Fiscal Year 2027 (FY27) for the Berkeley Tourism Business Improvement District (BTBID) as recommended by the BTBID Owners’ Association.

Financial Implications: See report
Contact: Eleanor Hollander, Economic Development, (510) 981-7530

Consent Calendar
Tuesday, June 9, 2026 AGENDA Page 5

6. Assessments: North Shattuck Property Based Business Improvement District From: City Manager
Recommendation: Adopt a Resolution approving the North Shattuck Property Based Business Improvement District (NSBID) Annual Report of Fiscal Year (FY) 2026 and proposed budget for FY 2027 and declaring Council’s intention to levy an annual assessment for the NSBID for FY 2027.

Financial Implications: See report
Contact: Eleanor Hollander, Economic Development, (510) 981-7530

7. Contract No 32400063 Amendment: Community Agency Agreement- Transient Occupancy Tax (TOT) Berkeley Convention and Visitors Bureau with the Berkeley Convention and Visitors Bureau d.b.a. Visit Berkeley From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to amend Contract No. 32400063 between Visit Berkeley and the City of Berkeley. This amendment intends to modify the existing Not-to-Exceed (NTE) amount of the contract to allow all pass-through amounts of Transient Occupancy Tax (TOT) collected on behalf of Visit Berkeley above the existing NTE amount to be paid to Visit Berkeley when received. This amendment to the contract with Visit Berkeley will increase the contract amount by $1,114,351 for a new contract amount NTE $4,614,351.

Financial Implications: See report
Contact: Eleanor Hollander, Economic Development, (510) 981-7530

8. Formal Bid Solicitations and Request for Proposals Scheduled for Possible Issuance After Council Approval on June 9, 2026
From: City Manager
Recommendation: Approve the request for proposals or invitation for bids (attached to staff report) that will be, or are planned to be, issued upon final approval by the requesting department or division. All contracts over the City Manager’s threshold will be returned to Council for final approval.

Financial Implications: Various Funds - $2,849,000
Contact: Henry Oyekanmi, Finance, (510) 981-7300

9. Notice of Appropriations Limit for Fiscal Year 2027
From: City Manager
Recommendation: Adopt a Resolution providing notice that: 1) Council will adopt an appropriations limit for Fiscal Year 2027 at its meeting of June 30, 2026; and 2) the amount of the limit and the background material used in its calculation will be available for public review in the City Clerk’s Office on or before June 9, 2026.

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

Consent Calendar
Tuesday, June 9, 2026 AGENDA Page 6

10. Contract: Medical Priority Consultants, Inc dba Priority Dispatch From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute a waiver of competition based on a Sole and Single Source justification and execute a contract with Medical Priority Consultants, Inc., doing business as Priority Dispatch, for the purchase, implementation, and maintenance of the International Academy of Emergency Dispatch (IAED) ProQA Priority Dispatch System software for Medical Priority Dispatch System (MPDS), Fire Priority Dispatch System (FPDS), and Police Priority Dispatch System (PPDS), including training, quality assurance tools, and ongoing software maintenance, in an amount not to exceed $942,533 for a five-year base term beginning July 1, 2026 and ending June 30, 2031 with two, two-year extension options not to exceed a total of $793,765 for the four extension years, and for a total contract amount not to exceed of $1,736,298 over nine years.

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

11. Revenue Grant Agreements: Funding Support from the State of California to Conduct Public Health Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager or designee to submit a grant agreement to the State of California, to accept the grant and execute any resultant revenue agreements and amendments to conduct public health promotion, protection, and prevention services for the Maternal, Child, and Adolescent Health (MCAH) Program. The projected total amount of the grant is $315,267 for Fiscal Year (FY) 2027 through Fiscal Year 2029.

Financial Implications: See report
Contact: Scott Gilman, Health, Housing, and Community Services, (510) 981-5100

12. Donation: Memorial Bench at Berkeley Marina/Shorebird Park in Memory of Diana Zucker Patpatia
From: City Manager
Recommendation: Adopt a Resolution accepting a cash donation in the amount of $3,400 for a memorial bench to be placed at the Berkeley Waterfront in memory of Diana Zucker Patpatia.

Financial Implications: $3,400 (Donation)
Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700

13. Donation: Memorial Bench at the Berkeley Rose Garden in Memory of Michael S. Sorgen
From: City Manager
Recommendation: Adopt a Resolution accepting a cash donation in the amount of $3,400 for a memorial bench to be placed at the Berkeley Rose Garden in memory of Michael S. Sorgen.

Financial Implications: $3,400 (Donation)
Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700

Consent Calendar
Tuesday, June 9, 2026 AGENDA Page 7

14. Contract: Chemical Procurement Services LLC for Mini-Bulk Swimming Pool Chemicals
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute a contract with Chemical Procurement Services LLC for Mini Bulk Swimming Pool Chemicals in an amount not to exceed $175,000 for the term of July 1, 2026, to June 30, 2028.

Financial Implications: Various Funds - $175,000
Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700

15. Contract No. 32300202 Amendment: Vol-Ten Corp Bus Service for Echo Lake Camp and Recreation Division Programs
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32300202 with Vol-Ten Corporation DBA: Delta Charter Bus to provide charter bus transportation services for Echo Lake Youth Camp and other summer Recreation Division programs by adding $140,000 for a new not to exceed amount of $539,000.

Financial Implications: Various Funds - $140,000
Contact: Scott Ferris, Parks, Recreation and Waterfront, (510) 981-6700

16. Storefront Retail Cannabis Establishment: 2590 Telegraph Avenue From: City Manager
Recommendation: Adopt a Resolution permitting the People’s Cannabis Company to operate a storefront retail cannabis establishment at 2590 Telegraph Avenue, pursuant to BMC 23.320.020 (Cannabis Retail), contingent on the company obtaining all other required state and local permits.

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

17. Contract No. 32300022 Amendment: Public Safety Family Counseling Group Inc. for Additional Critical Incident Stress Management (CISM), Education and Counseling Services
From: City Manager
Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to Contract No. 32300022 with Public Safety Family Counseling Group Inc. to provide additional CISM, Peer Support Team support, education, and counseling services, for a total amount not to exceed $60,000, for a total contract amount not to exceed $260,000, and extending the term through June 30, 2027.

Financial Implications: General Fund - $60,000
Contact: Jennifer Louis, Police, (510) 981-5900

Consent Calendar
Tuesday, June 9, 2026 AGENDA Page 8
18a. Policy Recommendations for the City of Berkeley Regarding Event Producers and Civic Events
From: Civic Arts Commission
Recommendation: Adopt the attached City of Berkeley Event Producers and Civic Events Policy Recommendations.

Financial Implications: See report
Contact: Carianna Arredondo, Commission Secretary, (510) 981-7000

18b. Companion Report: Policy Recommendations for the City of Berkeley Regarding Event Producers and Civic Events
From: City Manager
Recommendation: Refer to the City Manager:

1. A feasibility and cost analysis of the Civic Arts Commission’s Policy Recommendations, with the inclusion of alternative recommendations that meet the Civic Arts Commission’s intention of an equitable, transparent, efficient, and predictable special events program in Berkeley;

2. Present analytical findings and any alternative policy recommendations to the Civic Arts Commission for feedback and stakeholder engagement; and

3. Return to the City Council with findings and final recommendations regarding Special Events in Berkeley.

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

Council Consent Items

19. Berkeley Poet Laureate Program: Relinquishment of Council Office Budget Funds to General Fund and Grant of Such Fund
From: Mayor Ishii (Author)
Recommendation: Adopt a Resolution approving the expenditure of an amount not to exceed $2500 per Councilmember including $2500 from Mayor Ishii to the Berkeley Poet Laureate Program to support the continuation of the program by covering associated selection panelist fees and stipends for the selected poet laureate with funds relinquished to the City’s general fund for this purpose from the discretionary Council Office Budgets of Mayor Ishii and any other Councilmembers who would like to contribute.

Financial Implications: Mayor’s Discretionary Funds - $2,500 Contact: Adena Ishii, Mayor, (510) 981-7100

Council Consent Items
Tuesday, June 9, 2026 AGENDA Page 9

20. Chavez/Huerta Tribute Site: Relinquishment of Council Office Budget Funds to General Fund and Grant of Such Fund
From: Mayor Ishii (Author), Councilmember Kesarwani (Co-Sponsor) Recommendation: Adopt a Resolution approving the expenditure of an amount not to exceed $2500 per Councilmember including $2500 from Mayor Ishii and $500 from Councilmember Rashi Kesarwani to the Kala Art Institute, the fiscal sponsor for the Chavez/Huerta Tribute Site, with funds relinquished to the City’s general fund for the purpose of providing the resources needed for the maintenance of the Chavez/Huerta Tribute Site, from the discretionary Council Office Budgets of Mayor Ishii & Councilmember Kesarwani and any other Councilmembers who would like to contribute.

Financial Implications: Councilmembers’ Discretionary Funds - $2,500 Contact: Adena Ishii, Mayor, (510) 981-7100

21. 2027 Holocaust Remembrance Day Program: Relinquishment of Council Office Budget Funds from General Funds and Grant of Such Funds From: Mayor Ishii (Author), Councilmember Tregub (Co-Sponsor) Recommendation: Adopt a Resolution approving the expenditure of an amount not to exceed $3,500 per Councilmember, including $3,500 from Mayor Ishii, and $500 from Councilmember Tregub to support the City’s Annual Holocaust Remembrance Day program with funds relinquished to the City’s general fund. The relinquishment of funds from the discretionary Council Office Budget of all Councilmembers who would like to contribute, allows the City of Berkeley to invite the community to its 24th Annual Holocaust Remembrance Day program, created by the community with City Council support.

Financial Implications: Councilmembers’ Discretionary Funds - $500 Contact: Adena Ishii, Mayor, (510) 981-7100

22. Amendments to Berkeley Municipal Code Section 23.204.070 (D) (Hot tubs) From: Councilmember Humbert (Author)
Recommendation: Refer to the City Manager and the Planning Commission to amend Berkeley Municipal Code Section 23.304.070(D) to: 1. Allow unenclosed outdoor hot tubs, jacuzzis, and spas ministerially in all zoning districts except ES-R, subject to compliance with applicable building, fire, noise, and setback requirements; and 2. Replace the Use Permit requirement in the ES-R district with an Administrative Use Permit (AUP). This change aligns the level of review with the actual impacts of these installations, reduces unnecessary delay and cost (both to applicants and the City), and preserves appropriate oversight in environmentally sensitive areas.

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

Action Calendar
The public may comment on each item listed on the agenda for action. For items moved to the Action Calendar from the Consent Calendar or Information Calendar, persons who spoke on the item during the Consent Calendar public comment period may speak again during the Action Calendar public comment period on the item

Action Calendar
Tuesday, June 9, 2026 AGENDA Page 10
The Presiding Officer will request that persons wishing to speak line up at the podium, or use the "raise hand" function in Zoom, to determine the number of persons interested in speaking at that time. If ten or fewer persons are interested in speaking on an individual agenda item, each speaker may speak for two minutes. If there are more than ten persons interested in speaking, the Presiding Officer may limit the public comment for all speakers to one minute per speaker. Speakers are permitted to yield the ir time to one other speaker, however no one speaker shall have more than four minutes. The Presiding Officer may, with the consent of persons representing both sides of an issue, allocate a block of time to each side to present their issue.

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

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

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

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

If ten or fewer persons are interested in speaking during a public hearing, each speaker may speak for two minutes. If there are more than ten persons interested in speaking, the Presiding Officer may limit the public comment for all speakers to one minute per speaker. Speakers are permitted to yield their time to one other speaker, however no one speaker shall have more than four minutes. The Presiding Officer may with the consent of persons representing both sides of an issue allocate a block of time to e ach side to present their issue.

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

23. Changes to the Environmental Health Fee Schedule (Continued from May 19, 2026)
From: City Manager
Recommendation: Conduct a public hearing and, upon conclusion, adopt a Resolution:

1. Approving revisions to the fee schedule for the Environmental Health Division (EHD) effective July 1, 2026, and,

2. Rescinding Resolution No. 71,354-N.S. effective July 1, 2026.

Financial Implications: See report
Contact: Scott Gilman, Health, Housing, and Community Services, (510) 981-5100

Action Calendar – Public Hearings
Tuesday, June 9, 2026 AGENDA Page 11

24. Repeal and Reenact Berkeley Municipal Code (BMC) Chapter 14.52 to Adjust the goBerkeley Parking Management Program; Change Parking Permit Fees; Establish a New Schedule for Parking Violations, Fines, and Late Payment Penalties; and Rescind Resolution No. 71,627-N.S. (Continued from May 19, 2026)
From: City Manager
Recommendation: Conduct a public hearing and upon conclusion:

1. Adopt first reading of an Ordinance repealing and reenacting Berkeley Municipal Code chapter 14.52, “Parking Meters,” to enable the following changes: a. Extend parking meter operating hours to 8 p.m. citywide; b. Operate parking meters, pay stations, and parking enforcement on Sundays. c. Expand meter zones to new high- demand areas; d. Authorize a transition to cashless parking meters and/or pay stations in the future; and

2. Adopt a Resolution to pass through parking meter costs currently paid by the City to a transparent transaction charge paid by the customer; and

3. Adopt a Resolution implementing a new FY 2028 fee schedule for Residential Parking Permit fees; and

4. Adopt a Resolution updating the Schedule of Parking Violations and Fines; and rescinding Resolution No. 71,627-N.S. (Parking Violations and Fines).

Financial Implications: See report
Contact: Wahid Amiri, Public Works, (510) 981-6300

25. Zero Waste Plan Checks and Compliance Inspections Fees (Continued from May 19, 2026) (Item contains revised materials)
From: City Manager
Recommendation: Conduct a public hearing and upon conclusion, adopt a Resolution establishing new cost recovery fees in the Public Works Department’s Zero Waste Plan Check and Compliance Inspections; authorizing the City Manager, or designee, to collect such fees to recover staffing costs.

Financial Implications: See report
Contact: Wahid Amiri, Public Works, (510) 981-6300

26. Appeal of the Housing Advisory Commission decision to deny the appeal and affirm the Determination by the Building Official for 1615 Fairview Street Regarding the Applicability of Exterior Elevated Elements Inspection Requirement
From: City Manager
Recommendation: Conduct a public hearing and upon conclusion, adopt a Resolution affirming the Housing Advisory Commission (HAC) decision to (1) deny the Appeal and affirm the Building Official’s determination that 1615 Fairview Street is not in compliance with the Exterior Elevated Elements (E3) Inspection Program; and (2) uphold the associated fees consistent with Council-adopted policy and State law.

Financial Implications: None
Contact: Jordan Klein, Planning and Development, (510) 981-7400

Council Action Items
Tuesday, June 9, 2026 AGENDA Page 12

27. Discussion about the desired qualifications for the next Director of Police Accountability
From: Mayor Ishii (Author)
Recommendation: Enter into a discussion between WBCP Inc. (Recruiter), and the Mayor and City Council to determine the ideal candidate profile for the next director of Office of the Director of Police Accountability for the City of Berkeley.

Financial Implications: None
Contact: Adena Ishii, Mayor, (510) 981-7100

Action Calendar – Public Hearings

28. Proposed Five-Year Capital Improvement Program (CIP) and Proposed Five- Year CIP Public Hearing No. 1
From: City Manager
Recommendation: Accept the Proposed Five-Year (FY 2027 - FY 2031) Capital Improvement Program (CIP) for review and consideration by the City Council, conduct Public Hearing No. 1 on the Proposed Five-Year CIP, and final adoption for June 23, 2026.

Financial Implications: See report.

Contact: Maricar Dupaya, Budget Manager, (510) 981-7000

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

Archived indexed video streams are available at: berkeleyca.gov/council-agendas.

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

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

Tuesday, June 9, 2026 AGENDA Page 13
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the public counter at the City Clerk Department located on the first floor of City Hall located at 2180 Milvia Street, and through the City's online records portal:
https://records.cityofberkeley.info/.

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

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

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

COMMUNICATION ACCESS INFORMATION:

This meeting is being held in a wheelchair accessible location.

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

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

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

If you have obtained interpretation services for your use during a City Council meeting and would like to request assistance, please contact the City Clerk Department at (510) 981 -6900, [email protected], or in-person during the meeting.

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

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I hereby certify that the agenda for this meeting of the Berkeley City Council was posted at the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way, as well as on the City’s website, on May 29, 2026.

Mark Numainville, City Clerk

Tuesday, June 9, 2026 AGENDA Page 14
Communications
Council rules limit action on Communications to referral to the City Manager and/or Boards and Commissions for investigation and/or recommendations. All communications submitted to Council are public record. Copies of individual communications are available for viewing at the City Clerk Department and through Records Online.

Monument Relocation

1. Larry Pozos, David Martinez, Sam Martinez, Yolanda Fernandez, Christina Fernandez Franco, and Clementina Duron, Harvey Smith, Larry Reyna Sr., Beatriz Leyva-Cutler on behalf of La Colectiva Latina de Berkeley

Repaving Request

2. Alicia Dantzker and Lise Dworkin

3. James Loza

4. Kate Gallagher

5. Donald Rothberg

BACS Transfers Concerns

6. Francesca Agrusa (2)

Downtown Revitalization

7. Krista Denton

2180 Oxford St and ZAB

8. Steven Schuyler (2)

Flock Concerns

9. Lydia Hartunian

10. Sepehr Nadimi

11. Jessica Adams

12. Pamela Michaud

Fire Department Concerns

13. Mike Rivera on behalf of Fire Recovery USA

14. Rocky Offner

15. Joanne Rucker

16. Phyllis Steiber

Hopkins Street

17. Martin Hammer on behalf of the North Berkeley Design Team

18. Howard Goldberg

19. Bruce Buckelew

20. Cindi Goldberg

Ferry Project

21. Liza McNulty

22. Paul Kamen

Tuesday, June 9, 2026 AGENDA Page 15

23. Augie Kazickas

Kala Art Institute

24. Ellen Lake and Mayumi Hamanaka

Trash Dumping Concerns

25. Craig Nagasawa

Billing Error

26. Benjamin Yu

Trash and Clean Up

27. Lex, Willy, Emry, and Arjun

SF Mimes

28. David Rosen

29. Sonya Dublin

30. Arlene Owseichik

31. William Bogert

Aquatic Park/Railroad Project

32. Maryann Osullivan

33. Wahid Amiri

Himalayan Faire

34. Harald Leventhal

Letter to AG Bonta

35. M. Eid Abdalla

Police Accountability Board

36. Office of the Director of Police Accountability

Traffic Safety Concerns

37. Shirley Kirsten

38. Riti Dhesi

39. Carleen Mandolfo

Throne Restrooms

40. Samir Jain

41. James Hannon

Ashby Bart Station

42. Jeffrey Church on behalf of Visit Berkeley

Tuesday, June 9, 2026 AGENDA Page 16
STEM Fest

43. Amy Miller

Safety Concerns

44. Simona Shirazi

45. Tiffany Harnsongkram

3-Day Walk

46. Renee Saucedo on behalf of The Northern California Coalition For Just Immigration Reform (NCCJIR)

I-580 Truck Access Study

47. No Big Rigs On 580 Committee

Housing

48. John J. Parman

COSOW Panel

49. Shantee Baker

Friends of the Library Luncheon

50. Cathy Brown

Health Concern

51. Meryl Siegal

Advising Concern

52. Elizabeth Johnston

Park Name Change

53. Carol David

Mother’s Day in the Rose Garden

54. Leah Ambra

Student Housing Tour

55. Alex Merenkov

Tier 2 Transit Stops

56. Ron Kelly

Underground Wiring

57. Pamela Doolan

BUSD LEARNS

58. Dianna Mullins

Tuesday, June 9, 2026 AGENDA Page 17
Appreciation Month

59. Musa Tariq

Campus Safety

60. Sai Nagarajan

URLs

61. Russbumper (13)

Forwards

62. Russbumper (6)

Newsletter

63. Downtown Berkeley Association

64. Visit Berkeley (2)

65. John Craner

66. Richard Schwartz

Upzoning/Zoning

67. Charlie Stephen and Laura Walsh

68. Molly Miller

69. David Salk

70. Mimi Moungovan

71. Michelle Pasternack

72. Elea Bernou

73. Barbara Freeman

74. Emily O’Rourke

75. Jennifer Cooper

76. Madeleine Shearer

77. Carleen Mandolfo

78. Alex Wong

79. Michael Smartt

80. Dana Scott

81. Don Hicks

82. Larry Hartsough

83. Dorothea Dorenz

84. Dan Nilles

85. Laurel Leichter

86. Janet McBride on behalf of Bay Area Ridge Trail Council

87. Ken Berland

88. Stephen Alpert (8)

89. 8 Similarly worded form letters “While you have made good progress…”

Golden Bear Homes Concern

90. Jon Ruel Holder II (3)

Tuesday, June 9, 2026 AGENDA Page 18
BMR Rent Clarifications

91. Alex Merenkov (6)

92. Misty Garrett (5)

E-Scooters

93. Robert Borghese (18)

94. Carson Lepre (12)

95. Antonio Vargas (3)

96. Anosh Dumasia (4)

Bond Vote

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

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

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

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

Ordinance No. 8,009-N.S. Page 1 of 2
ORDINANCE NO. 8,009-N.S.

LEASE AGREEMENT: PATPATIA & ASSOCIATES, INC. FOR OFFICE SPACE AT 125-127 UNIVERSITY AVENUE AT THE BERKELEY WATERFRONT
BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. FINDINGS:

1. City Council adopted Ordinance No. 7,754-N.S. on February 23, 2021, which authorized the City Manager to enter into a lease agreement with Patpatia & Associates, Inc. for an office space measuring 1,706 square feet in the northwestern portion of the second floor in the 125-127 University Avenue office building. The lease agreement expired at the end of the option term on April 30, 2026. The lease is currently in holdover and the tenant requested to continue leasing the same office space.

2. The 125-127 University Avenue office building is located on State tidelands held in trust by the City of Berkeley for the promotion of commerce, navigation, and fishery (“public trust uses”). City staff marketed the office space to organizations aligned with the public trust uses before negotiating a new lease with Patpatia & Associates, as required by the State Lands Commission. City staff did not identify a compatible public trust use organization for this specific space and proceeded to negotiate new lease terms with Patpatia & Associates.

Section 2. AUTHORIZATION FOR CITY MANAGER TO ENTER INTO LEASE AT 125- 127 UNIVERSITY AVENUE.

The City Manager is hereby authorized to enter into a three-year lease agreement with two options for a one-year extension with Patpatia & Associates, Inc. for real property located at 125-127 University Avenue at the Berkeley Waterfront. The rent will be $4,265 per month, escalating 3% annually, and will be deposited in the Marina Fund Budget Code 608-52-544-592-0000-000-000-461120-. Such lease shall be on substantially the terms set forth in Exhibit A.

Section 3. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.

Ordinance No. 8,009-N.S. Page 2 of 2
At a regular meeting of the Council of the City of Berkeley held on May 12, 2026, this Ordinance was passed to print and ordered published by posting by the following vote:

Ayes: Bartlett, Blackaby, Humbert, Kesarwani, Lunaparra, O’Keefe, Taplin, Tregub, and Ishii.

Noes: None.

Absent: None.

Lease Agreement for 125-127 University Avenue- Patpatia & Associates, Inc.

OFFICE LEASE
by and between

CITY OF BERKELEY
a California municipal corporation
(as Landlord)
and
Patpatia & Associates, Inc.
a California Corporation
(as Tenant)
Dated: July 1, 2026

Lease Agreement for 125-127 University Avenue- Patpatia & Associates, Inc.

TABLE OF CONTENTS
Page

1. PREMISES. .......................................................................................................................1

1.1 Premises..................................................................................................................1

1.2 Landlord’s Reserved Rights ...................................................................................1

2. COMMON AREA. ...........................................................................................................1

2.1 Definition of Common Areas .................................................................................1

2.2 Maintenance and Use of Common Area.................................................................2

2.3 Control of and Changes to Common Area .............................................................2

3. TERM. ...............................................................................................................................2

3.1 Term; Commencement Date...................................................................................2

3.2 Option to Extend Term ...........................................................................................2

4. RENT; SECURITY DEPOSIT. .......................................................................................2

4.1 Base Rent; Rent ......................................................................................................2

4.2 Application of Payments.........................................................................................3

4.3 Late Charge and Interest.........................................................................................3

4.4 Security Deposit......................................................................................................3

4.5 Restoration of Security Deposit; Return of Security Deposit.................................4

4.6 Transfer of Security Deposit; Assignment or Encumbrance of Security Deposit....................................................................................................................4

5. UTILITIES AND JANITORIAL SERVICES. ..............................................................4

5.1 Landlord Utility and Service Costs.........................................................................4

5.2 Janitorial Services...................................................................................................4

5.3 Tenant Utility and Service Costs ............................................................................4

5.4 Conservation and Use Policies ...............................................................................4

5.5 Exculpation of Liability..........................................................................................4

6. TAXES. ..............................................................................................................................5

6.1 Taxes.......................................................................................................................5

6.2 Possessory Interest Taxes .......................................................................................5

6.3 Personal Taxes ........................................................................................................5

6.4 Payment of Taxes ...................................................................................................5

7. INSURANCE. ....................................................................................................................5

7.1 Landlord..................................................................................................................5

7.2 Tenant .....................................................................................................................6

7.3 Commercial General Liability Insurance................................................................6

7.4 Workers’ Compensation and Employer’s Liability Insurance ...............................6

7.5 Property Insurance ..................................................................................................6

7.6 Other Insurance.......................................................................................................6

7.7 General....................................................................................................................6

8. INDEMNITY; LIABILITY EXEMPTION. ..................................................................7

8.1 Indemnity................................................................................................................7

8.2 Exemption of Landlord from Liability ...................................................................8

9. REPAIRS AND MAINTENANCE. ................................................................................8

9.1 Landlord’s Obligations ...........................................................................................8

9.2 Tenant’s Waiver......................................................................................................9

9.3 Tenant’s Obligations...............................................................................................9

10. ALTERATIONS. ..............................................................................................................9

10.1 Trade Fixtures; Alterations .....................................................................................9

10.2 Satellites and Antennae...........................................................................................9

10.3 Signs .....................................................................................................................10

10.4 Standard of Work..................................................................................................10

10.5 Damage; Removal ................................................................................................10

10.6 Liens .....................................................................................................................10

10.7 Bonds ....................................................................................................................11

11. PREVAILING WAGES. ................................................................................................11

11.1 Prevailing Wages ..................................................................................................11

12. PERMITTED USE AND PUBLIC TRUST TIDELANDS
REQUIREMENTS. ........................................................................................................12

12.1 Usage ....................................................................................................................12

12.2 Public Trust Tidelands Requirements...................................................................12

13. ENVIRONMENTAL MATTERS. ................................................................................12

13.1 Environmental Compliance ..................................................................................12

13.2 Tenant’s Indemnification......................................................................................13

14. DAMAGE AND DESTRUCTION. ...............................................................................13

14.1 Casualty ................................................................................................................13

14.2 Tenant’s Fault .......................................................................................................14

14.3 Repair Limitation..................................................................................................14

14.4 Waiver...................................................................................................................14

15. EMINENT DOMAIN. ....................................................................................................14

15.1 Effect on Rights and Obligations..........................................................................14

15.2 Award ...................................................................................................................15

16. DEFAULT. ......................................................................................................................15

16.1 Events of Default ..................................................................................................15

16.2 Remedies...............................................................................................................16

16.3 Cumulative............................................................................................................16

17. ASSIGNMENT AND SUBLETTING. ..........................................................................17

17.1 Landlord’s Consent...............................................................................................17

18. ESTOPPEL, ATTORNMENT AND SUBORDINATION. ........................................17

18.1 Estoppel ................................................................................................................17

18.2 Subordination........................................................................................................17

18.3 Attornment............................................................................................................17

19. RELOCATION WAIVER. ............................................................................................18

19.1 Waiver...................................................................................................................18

20. REQUIRED ACCESSIBILITY DISCLOSURE .........................................................18

21. CITY NON-DISCRIMINATION ORDINANCE ........................................................19

22. NON-DISCRIMINATION AGAINST PERSONS WITH DISABILITIES ..............19

23. BERKELEY EQUAL BENEFITS ORDINANCE (EBO) ..........................................19

24. BERKELEY LIVING WAGE ORDINANCE (LWO) ................................................20

25. OPPRESSIVE STATES .................................................................................................21

26. CONFLICT OF INTEREST PROHIBITED ...............................................................21

27. MISCELLANEOUS. ......................................................................................................22

28. SANCTUARY CITY CONTRACTING .......................................................................25

Lease Agreement for 125-127 University Avenue- Patpatia & Associates, Inc. iv

LIST OF EXHIBITS
Exhibit A-1 Legal Description of Property
Exhibit A-2 Depiction of the Premises
Exhibit B Rules and Regulations
Exhibit C Payment Provision

Lease Agreement for 125-127 University Avenue- Patpatia & Associates, Inc. 1 OFFICE LEASE

BASIC LEASE INFORMATION

1. Landlord: City of Berkeley, a California municipal corporation 2180 Milvia Street
Berkeley, CA 94704
Attention: Director, Parks, Recreation & Waterfront
Telephone: (510) 981-6704
Facsimile: (510) 981-6710

2. Tenant: Patpatia & Associates, Inc.
1803 Sixth St. Suite A
Berkeley, CA 94710
Telephone: (510) 559-7140
Facsimile: (510) 559-7145

3. Tenant Trade Name: Tenant shall operate under the trade name Patpatia & Associates, Inc.

4. Effective Date: July 1, 2026

5. Premises: Approximately 1,706 rentable square feet comprising the northwestern portion of the 2nd floor (“Premises”) of the building commonly known and referred to as 125-127 University Avenue, Berkeley, California 94710 (the “Building”).

6. Permitted Uses: General office and ancillary commercial use, subject to any applicable or required approvals from the City of Berkeley.

7. Initial Term: Three (3) years, commencing as of July 1, 2026 (“Commencement Date”), with two 1-year extension options.

8. Base Rent: $4,265 per month with 3% annual increase

9. Security Deposit: $3,000

10. Guarantor: Not required with this Lease.

The Basic Lease Information set forth above and the Exhibits attached hereto are incorporated into and made a part of the following Lease. In the event of any conflict between the Basic Lease Information and terms of the Lease, the terms of the Lease shall control.

LANDLORD’S INITIALS _______ TENANT’S INITIALS _______

Lease Agreement for 125-127 University Avenue- Patpatia & Associates, Inc.

EXHIBIT A-1

OFFICE LEASE
This Office Lease (“Lease”) is made and entered into as of the effective date specified in Section 4 of the Basic Lease Information, above (“Effective Date”), by and between the City of Berkeley, a municipal corporation of the State of California (“Landlord”), and the tenant identified in Section 2 of the Basic Lease Information (“Tenant”).

1. PREMISES.

1.1 Premises. Landlord is the owner of that certain Building referred to in Basic Lease Information Section 5, and the underlying land on which the Premises are located as described in Exhibit A-1 attached hereto and incorporated herein (collectively, the “Property”).

Landlord hereby leases to Tenant, and Tenant leases from Landlord, the Premises together with Tenant Improvements (defined below), if any. A drawing depicting the general location and layout of the demised Premises is attached hereto and incorporated by reference as Exhibit A-2.

Any improvements or alterations existing in the Premises, or otherwise constructed by Tenant or on Tenant’s behalf therein (whether under this Lease, or any prior lease or sublease) are referred to in this Lease as “Tenant Improvements.” Notwithstanding the foregoing, Landlord will not be obligated to deliver possession of the Premises to Tenant (but Tenant will be liable for rent if Landlord can otherwise deliver the Premises to Tenant) until the City Council of Landlord has approved the Lease and Landlord has received from Tenant all of the following: (i) a copy of this Lease fully executed by Tenant and the guaranty of Tenant’s obligations under this Lease, if applicable, executed by the Guarantor(s) in the form attached hereto and incorporated by reference as Exhibit C (“Guaranty”); (ii) the Security Deposit and the first installment of Base Rent ; and (iii) copies of policies of insurance or certificates thereof as required under this Lease.

1.2 Landlord’s Reserved Rights. Landlord reserves the right to enter the Premises upon reasonable notice to Tenant (except that advance notice shall not be required in case of an emergency) for the following purposes: (i) to inspect the condition of the Premises; (ii) to ascertain the performance by Tenant of the terms and conditions hereof; (iii) to respond to an emergency at the Premises; (iv) to maintain, inspect and repair the Premises to the extent required or permitted under this Lease; (v) to post notices of non-responsibility for alterations, additions or repairs undertaken by Tenant; (vi) to show the Premises to prospective tenants or purchasers or persons acting on their behalf; (vii) to post a leasing sign in or about the Premises; and (viii) to perform any other right or duty of Landlord under this Lease. Landlord may exercise this right of entry without any abatement of Rent to Tenant for any loss of occupancy or quiet enjoyment of the Premises.

2. COMMON AREA.

2.1 Definition of Common Areas. The term “Common Area,” as used in this Lease, means all areas within the exterior boundaries of the Property now or later made available for the collective general use of Tenant and other persons entitled to occupy space in the Building, including the exterior surfaces and roof of the Building. Common Area shall not include any areas or facilities that could be considered as Common Area except that the areas or facilities are included in the description of premises leased to any other tenant of the Building.

2 2.2 Maintenance and Use of Common Area. The manner in which the Common Area shall be maintained shall be solely determined by Landlord. The use and occupancy by Tenant of the Premises shall include the right to use the Common Area (except areas used in the maintenance or operation of the Property), in common with Landlord and other tenants of the Property and their customers and invitees, subject to such reasonable, nondiscriminatory rules and regulations concerning the use of the Common Area as may be established by Landlord from time to time. Written notice of such rules and regulations and amendments and supplements thereto, if any, shall be given to Tenant thirty (30) days prior to their effective date. Tenant agrees to promptly comply with all such rules and regulations upon receipt of written notice from Landlord.

2.3 Control of and Changes to Common Area. Landlord shall have the sole and exclusive control of the Common Area, as well as the right to make reasonable changes to the Common Area. Landlord’s rights shall include, but shall not be limited to, the right to:
(i) restrain the use of the Common Area by unauthorized persons; (ii) cause Tenant to remove or restrain persons from any unauthorized use of the Common Area if they are using the Common Area by reason of Tenant’s presence in the Property; (iii) temporarily close any portion of the Common Area for repairs, improvements or alterations, to discourage noncustomer use, to prevent dedication or an easement by prescription, or for any other reason deemed sufficient in Landlord’s judgment; and (iv) reasonably change the shape and size of the Common Area, add, eliminate or change the location of improvements to the Common Area. Landlord may determine the nature, size and extent of the Common Area, as well as make changes to the Common Area from time to time which, in Landlord’s opinion, are deemed desirable for the Property.

3. TERM.

3.1 Term; Commencement Date. The “Initial Term” of this Lease shall be as set forth in Section 7 of the Basic Lease Information and shall commence as of the Commencement Date set forth in Section 7 of the Basic Lease Information. The Initial Term together with the Extension Term(s), if any, are collectively referred to herein as the “Term.”

3.2 Option to Extend Term. Tenant has two options to extend this lease agreement for one (1) year for each option. At the beginning of each option period, rent will increase by 3%.

4. RENT; SECURITY DEPOSIT.

4.1 Base Rent; Rent. All Rent under this Lease shall commence as of the Commencement Date. Rent shall be paid as set forth in this Section 4. Tenant shall pay to Landlord, at Landlord’s address for payment of Rent designated in Section 1 of the Basic Lease Information, or at such other address as Landlord may from time to time designate in writing to Tenant for the payment of Rent, the Base Rent designated in Section 8 of the Basic Lease Information, without notice, demand, offset or deduction, in advance, on the first day of each month of the Term. Upon execution of this Lease, Tenant shall pay to Landlord the first month’s Base Rent. If Base Rent is due for a period of less than a full month, it shall be prorated for such partial month on the basis of a thirty (30) day month. The term “Rent” means the Base Rent and

3 any other amounts of any kind that become due and payable by Tenant to Landlord under this Lease. Tenant’s obligation to pay Rent under this Lease survives the Term to the extent such obligation has not been fulfilled during the Term.

4.2 Application of Payments. All payments received by Landlord from Tenant shall be applied to the oldest obligation owed by Tenant to Landlord. No designation by Tenant, either in a separate writing, on a check or money order, or otherwise shall modify this clause or have any force or effect.

4.3 Late Charge and Interest. The late payment of any Rent will cause Landlord to incur additional costs, including administration and collection costs and processing and accounting expenses (“Delinquency Costs”). If Landlord has not received any installment of Rent within five (5) business days after such amount is due, Tenant shall pay a late charge of ten percent (10%) of the delinquent amount immediately. The ten percent (10%) late charge represents a reasonable estimate of the Delinquency Costs incurred by Landlord. In addition, all such delinquent amounts shall bear interest from the date such amount was due until paid in full at a rate per annum (“Applicable Interest Rate”) equal to the lesser of (i) the maximum interest rate permitted by Law, or (ii) five percent (5%) above the rate publicly announced by Bank of America, N.A. (or if Bank of America, N.A. ceases to exist, the largest bank then headquartered in the State of California) (“Bank”) as its “Reference Rate.” If the use of the announced Reference Rate is discontinued by the Bank, then the term Reference Rate shall mean the announced rate charged by the Bank which is, from time to time, substituted for the Reference Rate. Landlord and Tenant recognize that the damage which Landlord shall suffer as a result of Tenant’s failure to pay such amounts is difficult to ascertain and said late charge and interest are the best estimate of the damage which Landlord shall suffer in the event of late payment. Landlord’s acceptance of late Rent, partial Rent and late charges does not equate with a waiver of Tenant’s default with respect to the overdue amount, or prevent Landlord from exercising any rights and remedies available under this Lease and/or by operation of Law.

4.4 Security Deposit. The cash sum specified under Section 9 of the Basic Lease Information, if any, shall be deposited with Landlord concurrently with Tenant’s execution of this Lease (“Security Deposit”). Landlord shall hold the Security Deposit as security for the performance of Tenant’s obligations under this Lease. Tenant is not entitled to any interest on the Security Deposit and Landlord shall not be liable therefor. If Tenant defaults on any provision of this Lease, Landlord may, at its election and without prejudice to any remedy it has under this Lease or by operation of Law, apply all or part of the Security Deposit to: (i) Rent or other sum in default; (ii) any amount that Landlord may spend or become obligated to spend in exercising Landlord’s rights under this Lease; (iii) unamortized costs of improvements paid for by Landlord, if any; (iv) unamortized costs of brokerage commissions, if any; or (v) any expense, loss or damage that Landlord may suffer because of Tenant’s default. Tenant waives the provisions of California Civil Code section 1950.7, and all Laws in force or that become in force after the date of execution of this Lease, that provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant, or to clean the Premises. Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other foreseeable or

4 unforeseeable loss or damage caused by the act or omission of Tenant, or of Tenant’s officers, agents, employees, independent contractors, invitees, customers, licensees, assignees or subtenants (individually and collectively, “Tenant’s Parties”).

4.5 Restoration of Security Deposit; Return of Security Deposit. If Landlord applies any portion of the Security Deposit during the Term, Tenant shall, within ten (10) days after demand by Landlord, deposit with Landlord an amount sufficient to restore the Security Deposit to its original amount. If Tenant performs every provision of this Lease to be performed by Tenant, the unused portion of the Security Deposit, if any, shall be returned to Tenant or the last assignee of Tenant’s interest under this Lease within thirty (30) days following the expiration or termination of the Term.

4.6 Transfer of Security Deposit; Assignment or Encumbrance of Security Deposit. If Landlord disposes of its interest in the Premises, Landlord may deliver the remaining Security Deposit to Landlord’s successor in interest in the Premises and thereupon be relieved of further responsibility with respect to the Security Deposit. Tenant may not assign or encumber the Security Deposit without the prior written consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord.

5. UTILITIES AND JANITORIAL SERVICES.

5.1 Landlord Utility and Service Costs. Landlord shall be responsible and directly contract and pay for the following utilities and services in connection with Tenant’s use or occupancy of the Premises: (i) water; (ii) sewage; (iii) the Landlord janitorial services described in Section 5.2 below; (iv) trash removal; and (v) HVAC (individually and collectively, the “Landlord Services”).

5.2 Janitorial Services. Landlord shall provide all janitorial services to common areas only. Tenant shall provide and pay for all janitorial services, including supplies and shampooing carpets, to the Leased Premises during this lease term.

5.3 Tenant Utility and Service Costs. Tenant, at Tenant’s sole cost and expense, shall be responsible and shall directly contract and pay for any and all utilities and services required or desired by Tenant in connection with its use or occupancy of the Premises, which are not expressly included within the definition of Landlord Services, including, but not limited to, electricity, gas, telephone, computer, internet, communications services, plumbing and drain clean out services, and alarm.

5.4 Conservation and Use Policies. Tenant, at Tenant’s sole cost and expense, shall comply with federal, state, or local governmental controls, rules, regulations, or restrictions on the use or consumption of energy or other utilities during the Term.

5.5 Exculpation of Liability. Landlord is not obligated to furnish any security patrol or any other services to Tenant, other than the Landlord Services expressly described above, and Landlord shall not be liable for any loss or damage suffered by Tenant or others, by reason of Landlord’s failure to furnish or election to discontinue providing any security patrol or other services. Landlord shall not be liable for any failure or interruption of any Landlord Service being furnished to the Premises, and no such failure or interruption shall entitle Tenant to

5 terminate this Lease. Landlord makes no representation with respect to the presence, adequacy or fitness of the heating, air conditioning or ventilation equipment on or about the Premises to maintain temperatures which may be required for, or because of, any equipment of Tenant. The exculpation of liability under this Section 5.5 shall not apply to the extent claims are caused by Landlord’s gross negligence or willful misconduct.

6. TAXES.

6.1 Taxes. As used in this Lease “Taxes” means Possessory Interest Taxes and Personal Taxes. Tenant’s obligations for Taxes for the last full or partial year of the Term and for any prior unpaid Taxes shall survive the expiration or earlier termination of this Lease.

6.2 Possessory Interest Taxes. This Lease creates a possessory property interest in Tenant. Tenant’s property interest may be subject to property taxation, and Tenant or the party in whom the possessory interest is vested shall be responsible for payment of any and all property taxes levied on the interest (collectively, “Possessory Interest Taxes”).

6.3 Personal Taxes. Tenant shall pay directly to the taxing authority all taxes and assessments levied upon the trade fixtures, alterations, additions, improvements, partitions, cabling, wiring, furniture, equipment, inventories and other personal property located and/or installed on the Premises by or on behalf of Tenant (individually and collectively “Tenant’s Property”) and any Tenant Improvements (collectively, “Personal Taxes”).

6.4 Payment of Taxes. Tenant shall pay all Taxes prior to delinquency. To the extent any such taxes are not separately assessed or billed to Tenant by the taxing authority, Landlord shall deliver to Tenant copies of the assessment and tax bill. Tenant shall pay such amount directly to the taxing authority no later than ten (10) business days prior to the date on which such Taxes are due. Should Tenant fail to pay its Taxes, Landlord may elect to do so on Tenant’s behalf within five (5) days of Landlord’s demand therefor. Tenant shall reimburse Landlord for such Taxes and any penalties and fines, together with interest at the Applicable Interest Rate, from the date Landlord tendered payment.

7. INSURANCE.

7.1 Landlord. Landlord may elect to self-insure, jointly-insure, or maintain insurance or an insurance equivalent (including, but not limited to, that offered to a municipality through and by a joint powers authority, a self-insurance pool of liability coverage authorized pursuant to California Government Code Section 6500, or similar collective) insuring the Property (excluding Tenant’s Property and any Tenant Improvements) on an occurrence basis against fire and extended coverage (including, if Landlord elects, “all risk” coverage) similar in type and coverage limits to that carried by Landlord on its other properties. At Landlord’s option, such insurance or insurance equivalent may be carried under any blanket or umbrella policies or other insurance or insurance equivalent which Landlord has in force for other buildings or projects.

Landlord may also carry such other insurance as Landlord may deem prudent or advisable, in such amounts and on such terms as Landlord shall determine. All such insurance or insurance equivalent maintained by Landlord pursuant to this Section 7.1 is referred to herein as “Landlord’s Insurance.” Landlord’s Insurance shall not, under any circumstances, include

6 Tenant’s Property, any Tenant Improvements, or other items required to be covered by Tenant’s Insurance.

7.2 Tenant. Tenant shall, at Tenant’s expense, obtain and keep in force at all times during the Term the following “Tenant’s Insurance,” and shall be liable for all premiums, deductibles, and self-insured amounts, if any, in connection therewith. Tenant’s Insurance shall not have a deductible amount exceeding Five Thousand Dollars ($5,000).

7.3 Commercial General Liability Insurance. A policy of commercial general liability insurance (occurrence form) having a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence and Two Million Dollars ($2,000,000) annual aggregate, providing coverage for, among other things, blanket contractual liability (including Tenant’s indemnification obligations under this Lease), premises liability, products and completed operations liability, owner’s protective coverage, broad form property damage, and bodily injury (including wrongful death) and advertising injury coverage. If necessary, Tenant shall provide for restoration of the aggregate limit.

7.4 Workers’ Compensation and Employer’s Liability Insurance. Workers’ compensation insurance, if required by Law, which complies with all applicable state statutes and regulatory requirements, and employer’s liability insurance coverage in statutory amounts.

7.5 Property Insurance. “All risk” property insurance including fire and extended coverage, sprinkler leakage, vandalism and malicious mischief coverage, covering damage to or loss of Tenant’s Property or any Tenant Improvements (together with, if the property of Tenant’s invitees is to be kept in the Premises, warehouser’s legal liability or bailee customers insurance insuring property belonging to invitees and located in or about the Premises), in an amount not less than the full replacement cost thereof. In the event that there shall be a dispute as to the amount which comprises full replacement cost, the decision of Landlord or the mortgagees of Landlord shall be presumptive.

7.6 Other Insurance. Any other form or forms of insurance as Landlord or the mortgagees of Landlord may reasonably require from time to time, in form, amounts and for insurance risks against which a prudent tenant would protect itself, but only to the extent such risks and amounts are available in the insurance market at commercially reasonable costs.

7.7 General.

7.7.1 Insurance Companies. Tenant’s Insurance shall be written by companies licensed to do business in California and having a “General Policyholders Rating” of at least A- VII (or such higher rating as may be required by a lender having a lien on the Premises) as set forth in the most current issue of “Best’s Insurance Guide.”

7.7.2 Certificates of Insurance. Tenant shall deliver to Landlord certificates of insurance for Tenant’s Insurance, in the form of the ACORD standard certificate of insurance, prior to the Commencement Date. Tenant shall, at least thirty (30) days prior to expiration of the policy, furnish Landlord with certificates of renewal or “binders” thereof. Each certificate shall expressly provide that such policies shall not be cancelable or otherwise subject to modification except after thirty (30) days’ prior written notice to the parties named as additional insureds as

7 required in this Lease. If Tenant fails to maintain any insurance required in this Lease, Tenant shall be liable for all losses and costs resulting from said failure.

7.7.3 Additional Insureds. Landlord and any property management company of Landlord for the Premises shall be named as additional insureds on the commercial general liability policy required by Section 7.3. An additional insured endorsement naming such parties as additional insured(s) shall be attached to the certificate of insurance.

7.7.4 Primary Coverage. Tenant’s Insurance shall be primary, without right of contribution from any Landlord’s Insurance.

7.7.5 Umbrella/Excess Insurance. Any umbrella liability policy or excess liability policy shall provide that if the underlying aggregate is exhausted, the excess coverage will drop down as primary insurance. The limits of Tenant’s Insurance shall not limit Tenant’s liability under this Lease.

7.7.6 Waiver of Subrogation. Tenant waives any right to recover against Landlord for claims for damages to Tenant’s Property or any Tenant Improvements to the extent covered (or required by this Lease to be covered) by Tenant’s Insurance. This provision is intended to waive fully, and for the benefit of Landlord, any rights and/or claims which might give rise to a right of subrogation in favor of any insurance carrier. The coverage obtained by Tenant pursuant to this Lease shall include a waiver of subrogation endorsement attached to the certificate of insurance.

7.7.7 Notification of Incidents. Tenant shall notify Landlord within twenty- four (24) hours after the occurrence of any accident or incident on or about the Property or any portion thereof which could give rise to a claim against Landlord, Landlord’s Insurance, Tenant, or Tenant’s Insurance, except that Tenant shall not be obligated to give Landlord notice of any accident or incident which could give rise to a claim under Tenant’s workers’ compensation insurance. Tenant’s notice shall be accompanied by a copy of any report(s) relating to the accident or incident.

7.7.8 Compliance With Insurance Requirements; Warranties. Tenant shall not do anything in the Premises, or bring or keep anything therein, or subject the Property or any portion thereof to any use which would damage the same or increase the risk of loss or fire, or violate Landlord’s Insurance, or Tenant’s Insurance, or which shall conflict with the regulations of the fire department or any Laws or with any insurance policy on the Premises or any part thereof, or with any rules or regulation established by any administrative body or official having jurisdiction. Tenant shall promptly comply with the reasonable requirements of any board of fire insurance underwriters or other similar body now or hereafter constituted.

8. INDEMNITY; LIABILITY EXEMPTION.

8.1 Indemnity. Except to the extent claims are caused by Landlord’s gross negligence or willful misconduct, Tenant shall indemnify, protect, defend, and hold harmless Landlord and its elected officials, officers, employees, volunteers, lenders, agents, representatives, contractors and each of their successors and assigns from and against any and all claims, judgments, causes of action, damages, penalties, costs, liabilities, and expenses, including all costs, attorneys’ fees,

8 expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon, arising at any time during or after the Term as a result (directly or indirectly) of or in connection with (i) any default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease; (ii) Tenant’s or Tenant’s Parties use of the Premises, the Property, or any portion thereof, or the conduct of Tenant’s business or any activity, work or thing done, permitted or suffered by Tenant or Tenant’s Parties in or about the Premises, the Property or any portion thereof; (iii) any act, error or omission of Tenant or Tenant’s Parties in or about the Property or any portion thereof; (iv) loss of, injury or damage to, or description of property (including but not limited to merchandise or inventory), including loss of use resulting from such loss, injury, damage, or destruction; or (v) any resulting economic loss, consequential damages, or exemplary damages (collectively, the “Indemnification”). Tenant shall provide such Indemnification by and through counsel reasonably acceptable to Landlord. The obligations of Tenant under this Section 8.1 shall survive the expiration or other termination of this Lease with respect to any claims or liability arising prior to such expiration or other termination.

8.2 Exemption of Landlord from Liability. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property including, but not limited to, Tenant’s Property and any Tenant Improvements, and injury to or death of persons in, upon or about the Premises, the Property, or any portion thereof, arising from any cause, and Tenant hereby waives all claims in respect thereof against Landlord, except to the extent such claims are caused by Landlord’s sole or active negligence or willful misconduct. Tenant hereby agrees that Landlord shall not be liable for injury to Tenant’s business or any loss of income therefrom or for damage to the property of Tenant, or injury to or death of Tenant, Tenant’s Parties or any other person in or about the Premises, the Property, or any portion thereof, whether such damage or injury is caused by fire, steam, electricity, gas, water or rain, or from the breakage, leakage or other defects of sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether said damage or injury results from conditions arising within or about the Premises, the Property, or any portion thereof or from other sources or places, and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Tenant, except damage or injury caused solely by Landlord’s sole or active negligence or willful misconduct. Landlord shall not be liable for any damages arising from any act or neglect of any other tenant or occupant, if any, of the Premises, the Property, or any portion thereof, or Landlord’s failure to enforce the terms of any agreements with parties other than Tenant.

9. REPAIRS AND MAINTENANCE.

9.1 Landlord’s Obligations. The Premises are being leased to Tenant in their current, existing, “AS-IS” condition. It is specifically understood and agreed that Landlord has no obligation and has made no promises to alter, remodel, improve, decorate or paint the Premises, construct or install any Tenant Improvements, or otherwise alter or improve the Premises, Property, or any portion thereof. Having occupied the Premises before entering this Lease with Landlord, Tenant is familiar with the existing condition of the Property and Premises, including any Tenant Improvements, and acknowledges that Landlord has made no representation or warranty regarding the condition thereof. Landlord, at its expense shall maintain the Building’s roof (including structure portions of the roof), foundation, and exterior walls, exterior windows,

9 common areas, building systems including HVAC, plumbing, and electrical and any items in the common areas required for compliance with applicable laws.

9.2 Tenant’s Waiver. Notwithstanding anything in this Lease to the contrary, whether stated or implied in this Lease, Tenant waives and releases its rights, including its right to make repairs at Landlord’s expense, under California Civil Code sections 1932(1), 1941, and 1942 or any similar Laws.

9.3 Tenant’s Obligations. Tenant, at its expense, shall maintain the Premises in good order, condition and repair, including interior floor surfaces and floor coverings, interior walls and wall coverings, paintings, interior glass, doors, Tenant Improvements, Signs, and any items required for compliance with Laws. In the event Tenant fails, in the reasonable judgment of Landlord, to so maintain the Premises in good order, condition and repair, Landlord shall in its sole discretion, upon five (5) days’ written notice to Tenant, have the right but not the obligation to perform such maintenance, repairs or refurbishing at Tenant’s expense, provided Tenant fails to do so within such five (5) day period. If Landlord elects to undertake any such repairs or maintenance as provided above, then Tenant shall pay as additional Rent, Landlord’s actual costs paid or incurred in connection therewith.

10. ALTERATIONS.

10.1 Trade Fixtures; Alterations. Subject to the conditions and requirements of this Section 10, Tenant may install necessary trade fixtures, equipment and furniture in the Premises, provided that such items are installed and are removable without structural or material damage to the Premises or any Tenant Improvements. For purposes of this Lease, “Trade Fixtures” means specialty fixtures or equipment used in Tenant’s trade or business as identified by Tenant and agreed to by Landlord in writing. Tenant shall not construct, or allow to be constructed, any alterations, physical additions, or improvements in, about, or to the Premises without the prior written consent of Landlord, which consent may be granted or denied in Landlord’s sole discretion. If Landlord approves proposed alterations, additions or improvements, Landlord’s consent may be conditioned upon Tenant’s establishing compliance with Laws and with Landlord’s reasonable requirements regarding selection of contractors and construction of improvements and alterations. Should Tenant make any alterations, additions, improvements without the prior written consent of Landlord, Landlord may, at any time during the Term of this Lease, require Tenant to remove any or all of the same and restore the Premises to their prior condition, at Tenant’s sole cost and expense.

10.2 Satellites and Antennae. Notwithstanding anything in this Lease to the contrary, Landlord and Tenant agree that it shall be reasonable for Landlord to withhold its consent to installation in or about the Premises or any portion thereof of equipment comprising or relating to relays, monopoles, satellite dishes, antennae, wireless telecommunications devices, transmitters, roof mounts, two-way radios, or similar apparatus (collectively, “Transmission Devices”).

10.2.1 Tenant will not place or allow any third party to place or maintain on the roof or on any exterior door, wall or windows (or within forty-eight inches (48”) of any windows) of the Premises any sign, banner, flag, awning or canopy, advertising matter or

10 window coverings of any type without Landlord’s prior written consent. Tenant further agrees to maintain such sign, awning, canopy, decoration, lettering, advertising matter or window coverings as may be approved in good condition and repair at all times.

10.3 Signs. All signs, graphics, and awnings of every kind visible in or from public view or corridors, or the exterior of the Premises, installed or caused to be installed by, for the benefit of, or at the request of Tenant (“Signs”) shall be, at Tenant’s sole cost and expense, and subject to Landlord’s prior written approval, and subject to all applicable Laws. Tenant shall remove all such Signs prior to the termination of this Lease. Such installations and removals shall be made in such manner as to avoid injury or defacement of the Premises; and Tenant shall repair any injury or defacement, including discoloration caused by such installation or removal.

Tenant shall be responsible for all fees, costs and expenses associated with installation and removal of Signs. In the event any such fees, costs or expenses are incurred by Landlord (whether directly or indirectly), Landlord shall deliver to Tenant an invoice, with reasonable supporting documentation, and Tenant shall reimburse Landlord for those amounts within fifteen (15) days after receipt of such invoice.

10.4 Standard of Work. All work to be performed by or on behalf of Tenant shall be performed diligently and in a first-class, workmanlike manner, and in compliance with all applicable Laws and all insurance carrier requirements. Landlord shall have the right, but not the obligation, to periodically inspect such work and may require changes in the method or quality thereof. In no event shall such work materially obstruct access to the Property or any portion thereof.

10.5 Damage; Removal. Tenant shall repair all damage to the Premises, Property and any portions thereof caused by the installation or removal of Tenant’s Trade Fixtures or other work performed by or on behalf of Tenant. All alterations, improvements or additions that are now or in the future attached permanently to the premises shall be the property of Landlord and remain with the premises at the termination of this lease. Upon the expiration or other termination of this Lease, Tenant shall perform any closure work, investigation and environmental remedial work required by the presence or suspected presence of any Hazardous Materials under Hazardous Materials Laws (as hereinafter defined) or by any other applicable Laws; provided, however, Landlord may require, upon written notice to Tenant no less than fifteen (15) days before the expiration or other termination of the Term, any such items (except Trade Fixtures) designated by Landlord to remain on the Premises, in which event they shall be and become the property of Landlord upon the expiration or other termination of this Lease. All such removals and restoration shall be accomplished in a good and workmanlike manner so as not to cause any damage to the Premises, the Property, or any portion thereof, whatsoever and in strict accordance with all applicable Laws.

10.6 Liens. Tenant shall promptly pay and discharge all claims for labor performed, supplies furnished and services rendered at the request of Tenant and shall keep the Premises and Property and all portions thereof free of all mechanics’ and materialmen’s liens in connection therewith. Tenant shall provide at least ten (10) business days’ prior written notice to Landlord before any labor is performed, supplies furnished or services rendered on or at the Premises and Landlord shall have the right to post on the Premises notices of non-responsibility. If any lien is filed, Tenant shall cause such lien to be released and removed within ten (10) days after the date

11 of filing, and if Tenant fails to do so, Landlord may take such action as may be necessary to remove such lien, without the duty to investigate the validity of it, and Tenant shall pay Landlord such amounts expended by Landlord together with interest thereon, at the Applicable Interest Rate, from the date of expenditure.

10.7 Bonds. Landlord may require Tenant to provide Landlord, at Tenant’s sole cost and expense, lien, performance, and payment completion bonds in an amount equal to one and one-half times the estimated cost of any alterations, additions, or improvements to insure Landlord, the Premises and the Property against any liability for mechanic’s and materialmen’s liens, and to ensure completion of the work and payment of any contractors or subcontractors.

11. PREVAILING WAGES.

11.1 Prevailing Wages. Tenant acknowledges and agrees that any Tenant Improvements, repairs, maintenance, or alterations made by or on behalf of Tenant to the Premises, Property, or any portion thereof (“Improvement Work”), which will become Landlord’s property upon the expiration or termination of this Lease, whether paid for in whole or part by Landlord or which are considered to have been paid for in whole or part by Landlord, will constitute “[c]onstruction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds….” California Labor Code § 1720.

Accordingly, Tenant shall comply with applicable prevailing wage policies as set forth in the City of Berkeley Municipal Code, applicable California Labor Code requirements pertaining to “public works” (California Labor Code Section 1720 et seq., as amended from time to time and implementing regulations)), and other applicable Laws addressing the payment of prevailing wages in connection with any Improvement Work (collectively, “Prevailing Wage Laws”).

Tenant shall require the general contractor for any Improvement Work to submit, upon request by Landlord, certified copies of payroll records to Landlord and to maintain and make records available to Landlord and its designees for inspection and copying to ensure compliance with Prevailing Wage Laws. Tenant shall also include in its general contractor agreement, and in all of its subleases and other contracts, a provision in a form acceptable to Landlord which obligates the general contractor and others as applicable, (i) to comply with, and to require that their respective subtenants, contractors and/or subcontractors comply with, Prevailing Wage Laws, and (ii) upon request by Landlord to submit certified copies of payroll records to Landlord and to maintain and make such payroll records available to Landlord and its designees for inspection and copying during regular business hours at the Premises or at another location within the City of Berkeley. Tenant shall defend, indemnify and hold harmless Landlord and its officers, officials, employees, volunteers, agents and representatives (collectively, “Indemnitees”) from and against any and all present and future liabilities, obligations, orders, claims, damages, fines, penalties and expenses (including attorneys’ fees and costs) (collectively, “Claims”), arising out of or in any way connected with Tenant’s obligation to comply with all such Prevailing Wage Laws, including all Claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code sections 1726. Tenant hereby waives, releases and discharges forever the Indemnitees from any and all present and future Claims arising out of or in any way connected with Tenant’s obligation to comply with all Prevailing Wage Laws with respect to the Improvement Work.

12 12. PERMITTED USE AND PUBLIC TRUST TIDELANDS REQUIREMENTS.

12.1 Usage. The Premises shall be used only for the permitted uses set forth in Section 6 of the Basic Lease Information and for no other purpose whatsoever without the prior written consent of Landlord. Tenant’s execution of this Lease and entry of the Premises hereunder shall conclusively establish that the foregoing were at such time in satisfactory condition. Tenant, at Tenant’s expense, shall comply with all applicable Hazardous Materials Laws, statutes, laws, codes, rules, orders, zoning, ordinances, directions, regulations, regulations, permits, or other requirements of federal, state, county, municipal, or other governmental authorities having jurisdiction, now in force or which may hereafter be in force (individually “Law” and collectively “Laws”), which shall impose any duty upon Landlord or Tenant with respect to the use, occupancy, or alteration of the Premises. Tenant shall be responsible for obtaining a Berkeley Business License and any other permit or business license required by any governmental agency permitting Tenant’s use of the Premises. Landlord makes no representation concerning the availability of any permits or approvals required or permitted under this Lease. Tenant shall comply with the rules and regulations, including observance of prohibited uses (“Rules”), attached hereto as Exhibit B and incorporated by reference, together with such reasonable additional rules and regulations as Landlord may from time to time prescribe. Tenant shall not commit waste; overload the floors or structure of the Premises; permit any unreasonable odors, smoke, dust, gas, substances, noise, or vibrations to emanate from the Premises that are offensive or objectionable to Landlord or other tenants or occupants of the Property; take any action which would constitute a nuisance or would disturb, obstruct, or endanger Landlord or other tenants or occupants of the Property; take any action which would abrogate any warranties; or use or allow the Premises to be used for any unlawful purpose; and shall cooperate with Landlord and Landlord’s agents to prevent those actions. Landlord shall not be responsible for non-compliance by any other tenant or occupant with, or Landlord’s failure to enforce, any of the Rules or any other terms or provisions of such tenant’s or occupant’s lease.

12.2 Public Trust Tidelands Requirements. Tenant acknowledges that the Property is located on State tidelands held by the City of Berkeley in trust for the promotion of commerce, navigation, and fishery pursuant to that certain statutory grant from the State of California to the City of Berkeley, as set forth in Statutes 1913, Chapter 347, as amended (“Statutory Grant”).

Tenant agrees and covenants to use the Property in a manner consistent with the Statutory Grant and applicable public trust and tidelands requirements during the term of this Lease.

13. ENVIRONMENTAL MATTERS.

13.1 Environmental Compliance. Tenant shall, at its sole cost and expense, comply with all laws, codes, rules, orders, ordinances, directives, regulations, permits, or other requirements of federal, state, county, municipal or governmental authorities having jurisdiction, now in force or which may hereafter be in force (collectively, “Hazardous Materials Laws”) concerning the management, use, generation, storage, transportation, discharge or disposal of any and all pollutants, wastes, flammables, explosives, radioactive materials, hazardous or toxic materials, hazardous or toxic wastes, hazardous or toxic substances, carcinogenic materials or contaminants and all other materials governed, monitored, or regulated by any Federal, State or local Law or regulation, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act, the Hazardous Substances Account Act, and/or the

13 Resources Conservation and Recovery Act. “Hazardous Materials” include asbestos, asbestos- containing materials, hydrocarbons, polychlorinated biphenyl (“PCB”) or PCB-containing materials, petroleum, gasoline, petroleum products, crude oil or any fraction, product or by- product thereof. Neither Tenant nor Tenant’s Parties shall use, handle, store, transport, treat, generate, release or dispose of any Hazardous Materials anywhere in, on, under or about the Premises or the Property. Tenant shall cause any and all Hazardous Materials brought onto, used, generated, handled, treated, stored, released or discharged on or under the Premises or the Property to be removed from the Premises and Property and transported for disposal in accordance with applicable Hazardous Materials Laws. Landlord shall have the right to enter the Premises from time to time to conduct tests, inspections and surveys concerning Hazardous Materials and to monitor Tenant’s compliance with its obligations concerning Hazardous Materials and Hazard Materials Laws. Tenant shall immediately notify Landlord in writing of:
(i) any release or discharge of any Hazardous Material; (ii) any voluntary clean-up or removal action instituted or proposed by Tenant; (iii) any enforcement, clean-up, removal or other governmental or regulatory action instituted or threatened; or (iv) any claim made or threatened by any person against Landlord, Tenant, the Premises, Property, or any portion thereof relating to Hazardous Materials or Hazardous Materials Laws. Tenant shall also supply to Landlord as promptly as possible, and in any event within five (5) business days after Tenant receives or sends same, copies of all claims, reports, complaints, notices, warnings or asserted violations relating in any way to the Premises or Tenant’s use thereof and concerning Hazardous Materials or Hazardous Materials Laws. In the event Tenant institutes a cleanup or removal action, Tenant shall provide copies of all workplans and subsequent reports submitted to the governmental agency with jurisdiction to Landlord in a timely manner.

13.2 Tenant’s Indemnification. Except to the extent caused by Landlord’s gross negligence or willful misconduct, Tenant shall indemnify, defend and hold Landlord harmless from any claims, causes of action, liabilities, losses, damages, injunctions, suits, fines, penalties, costs or expenses (including attorneys’ fees and expenses and consultant fees and expenses) relating to the presence of Hazardous Materials in, on, under, about, or emanating from the Premises, the Property, or any portion thereof, including, without limitation, any bodily injury, death, property damage, natural resource damage, decrease in value of the Premises, the Property, or any portion thereof, caused or alleged to have been caused by Tenant or Tenant’s Parties’ use, storage, handling, treatment, generation, discharge or release of Hazardous Materials in violation of Tenant’s obligations under this Lease, whether such claims, causes of action or liabilities are first asserted during the Term or thereafter, and including, without limitation, claims made against Landlord with respect to bodily injury, death or property damage sustained by third parties caused or alleged to have been caused by Tenant or Tenant’s Parties’ use, storage, handling, treatment, generation, discharge or release of Hazardous Materials.

14. DAMAGE AND DESTRUCTION.

14.1 Casualty. If, during the Term, the Premises is totally or partially destroyed from any cause rendering the Premises totally or partially inaccessible or unusable (“Casualty”), then Landlord shall have the right at Landlord’s option to give written notice to Tenant within ninety (90) days after the date of the occurrence of such Casualty of Landlord’s intention to either (i) repair such Casualty as soon as reasonably possible at Landlord’s expense; or (ii) terminate this Lease as of the date of the occurrence of such damage. If Landlord elects to

14 repair the damage, and if the cost of such repairs does not exceed the amount of insurance proceeds received by Landlord from Landlord’s Insurance pursuant to Section 7 above, on account of such damage, and if the restoration can be made under then existing Laws and can be completed within one hundred eighty (180) days after obtaining all necessary permits therefor, then Landlord shall restore the Premises (excluding Tenant’s Property and any Tenant Improvements) to substantially the same condition as they were in immediately before destruction. If the restoration cannot be so made, then within fifteen (15) days after Landlord determines that the restoration cannot be made as stated in this Section 14.1, Tenant may terminate this Lease immediately by giving written notice to Landlord. If the existing Laws do not permit the restoration, either party may terminate this Lease by giving ninety (90) days prior written notice to the other party. In case of destruction, there shall be an abatement or reduction of Rent, between the date of destruction and the date of completion of restoration if restoration takes place, or the date of termination if the Lease is terminated, based on the extent to which the destruction actually and materially interferes with Tenant’s use of the Premises.

14.2 Tenant’s Fault. If the Premises, the Property, or any portion thereof, are damaged resulting from the negligence or breach of this Lease by Tenant or any of Tenant’s Parties, Rent shall not be reduced during the repair of such damage, Tenant shall have no right to terminate this Lease as provided in Section 14.1, and Tenant shall be liable to Landlord for the cost of the repair caused thereby to the extent such cost is not covered by insurance proceeds.

14.3 Repair Limitation. Notwithstanding anything in this Lease to the contrary, Landlord shall not be required to repair any injury or damage, by fire or other cause, to Tenant’s Property or any Tenant Improvements, if any, or to rebuild, repair or replace any decorations, alterations, partitions, fixtures, trade fixtures, additions or other improvements installed on the Premises by or for Tenant, unless and to the extent Landlord has received insurance proceeds from Tenant’s property insurance as provided in Section 7.5 above, and neither Tenant or Landlord has opted to terminate this Lease as provided in Section 14.1.

14.4 Waiver. The provisions of this Lease contain an express agreement between Landlord and Tenant that applies in the event of any Casualty. Tenant fully waives the provisions of any statute or regulation, including California Civil Code sections 1932(2) and 1933(4) (as amended from time to time, and successor statutes thereto) for any rights or obligations concerning a Casualty.

15. EMINENT DOMAIN.

15.1 Effect on Rights and Obligations. If any portion of the Premises is permanently taken by condemnation, this Lease shall remain in effect, except that Tenant may elect to terminate this Lease if 25% or more of the total square footage of the Premises (but expressly excluding parking areas, if any) is taken and if the remaining portion of the Premises is rendered unsuitable for Tenant’s continued use of the Premises. If Tenant elects to terminate this Lease, Tenant must exercise its right to terminate by giving written notice to Landlord within thirty (30) days after the nature and the extent of the taking have been finally determined, as of the date of termination, which date shall not be earlier than thirty (30) days nor later than ninety (90) days after Tenant has notified Landlord of its election to terminate; except that this Lease shall terminate on the date of taking if the date of taking falls on a date before the date of termination

15 as designated by Tenant. If Tenant does not terminate this Lease within the thirty- (30) day period, this Lease shall continue in full force and effect, except that the Base Rent thereafter to be paid shall be reduced on a pro-rata basis. Tenant shall notify Landlord in writing of any condemnation or threatened condemnation within ten (10) days after Tenant receives notice of said action or threatened action.

15.2 Award. In connection with any condemnation, Landlord shall be entitled to receive all compensation and anything of value awarded, paid, or received in settlement or otherwise (“Award”) and Tenant hereby irrevocably assigns and transfers to Landlord all rights to and interests in the Award and fully waives, releases, and relinquishes any claim to, right to make a claim on, or interest in the Award, including any amount attributable to any excess of the market value of the Premises for the remainder of the Term over the present value as of the termination date of the Rent payable for the remainder of the Term (commonly referred to as the “bonus value” of the Lease).

16. DEFAULT.

16.1 Events of Default. Where “default” is used in this Lease with reference to Tenant, default refers to any breach of Tenant’s obligations under this Lease, however brief. Where Tenant’s default continues for the period specified below, it shall, at Landlord’s option, constitute an Event of Default giving rise to the remedies set forth in Sections 16.2 and 16.3 of this Lease. The occurrence of any of the following events shall, at Landlord’s option, constitute an “Event of Default”:

16.1.1 Abandonment of or vacating the Premises, or cessation of Tenant’s business operations therein, for a period of ten (10) consecutive calendar days;

16.1.2 Failure to pay Rent or other sums on the date when due and the failure continuing for a period of ten (10) days after such payment is due;

16.1.3 Failure to perform Tenant’s covenants and obligations hereunder (except default in the payment of Rent) where such failure continues for a period of thirty (30) days;

16.1.4 The making of a general assignment by Tenant for the benefit of creditors; the filing of a voluntary petition by Tenant or the filing of an involuntary petition by any of Tenant’s creditors seeking the rehabilitation, liquidation or reorganization of Tenant under any Laws relating to bankruptcy, insolvency or other relief of debtors and, in the case of an involuntary action, the failure to remove or discharge the same within sixty (60) days of such filing; the appointment of a receiver or other custodian to take possession of substantially all of Tenant’s assets or this leasehold; Tenant’s insolvency or inability to pay Tenant’s debts or failure generally to pay Tenant’s debts when due; any court entering a decree or order directing the winding up or liquidation of Tenant or of substantially all of Tenant’s assets; Tenant taking any action toward the dissolution or winding up of Tenant’s affairs; the cessation or suspension of Tenant’s use of the Premises; or the attachment, execution or other judicial seizure of substantially all of Tenant’s assets or this leasehold; or

16 16.1.5 The making of any material misrepresentation or omission by Tenant or any successor in interest of Tenant in any materials delivered by or on behalf of Tenant to Landlord or Landlord’s lender pursuant to this Lease.

16.2 Remedies.

16.2.1 Termination. In the event of the occurrence of any Event of Default, Landlord shall have the right to give a written termination notice to Tenant and, on the date specified in such notice (which date shall be at least three (3) business days following the date of delivery of such notice), this Lease shall terminate unless on or before such date all arrears of Rent and all other sums payable by Tenant under this Lease and all costs and expenses incurred by or on behalf of Landlord hereunder shall have been paid by Tenant and all other Events of Default at the time existing shall have been fully remedied to the satisfaction of Landlord (a) Repossession. Following termination, without prejudice to other remedies Landlord may have, Landlord may (i) peaceably re-enter the Premises upon voluntary surrender by Tenant or remove Tenant therefrom and any other persons occupying the Premises, using such legal proceedings as may be available; (ii) repossess the Premises or relet the Premises or any part thereof for such term (which may be for a term extending beyond the Term), at such rental and upon such other terms and conditions as Landlord in Landlord’s sole discretion shall determine, with the right to make reasonable alterations and repairs to the Premises; and (iii) remove all personal property therefrom. (b) Unpaid Rent. Landlord shall have all the rights and remedies of a landlord provided by applicable Laws, including the right to recover from Tenant: (i) the worth, at the time of award, of the unpaid Rent that had been earned at the time of termination, (ii) the worth, at the time of award, of the amount by which the unpaid Rent that would have been earned after the date of termination until the time of award exceeds the amount of loss of rent that Tenant proves could have been reasonably avoided, (iii) the worth, at the time of award, of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided, and (iv) any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant’s default. The phrase “worth, at the time of award,” as used in (i) and (ii) above, shall be computed at the Applicable Interest Rate, and as used in (iii) above, shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).

16.3 Cumulative. Each right and remedy of Landlord provided for herein or now or hereafter existing at Law or in equity, by statute or otherwise shall be cumulative and shall not preclude Landlord from exercising any other rights or remedies provided for in this Lease or now or hereafter existing at Law or in equity, by statute or otherwise. No payment by Tenant of a lesser amount than the Rent nor any endorsement on any check or letter accompanying any check or payment of Rent shall be deemed an accord and satisfaction of full payment of Rent; and Landlord may accept such payment without prejudice to Landlord’s right to recover the balance of such Rent or to pursue other remedies.

17 17. ASSIGNMENT AND SUBLETTING.

17.1 Landlord’s Consent. Tenant shall not assign, sublet or otherwise transfer, whether voluntarily or involuntarily or by operation of Law, this Lease, the Premises or any part thereof, without Landlord’s prior written approval, which Landlord may withhold in its sole absolute discretion, without any obligation to consider any proposed assignment, sublet or transfer in good faith or otherwise. Tenant’s attempted assignment/subletting without first obtaining Landlord’s written consent shall be void at Landlord’s election. Landlord’s consent to one assignment or subletting shall not be deemed a consent to subsequent assignments and/or sublettings. In the event Tenant shall assign or sublet the Premises or request the consent of Landlord to any assignment or subletting or if Tenant shall request the consent of Landlord for any other act Tenant proposes to do, Tenant shall pay to Landlord any attorneys’ fees incurred by Landlord in connection with each such request.

18. ESTOPPEL, ATTORNMENT AND SUBORDINATION.

18.1 Estoppel. Within ten (10) days after request by Landlord, Tenant shall deliver an estoppel certificate duly executed and acknowledged to any proposed mortgagee, beneficiary, purchaser, or Landlord, in a commercially reasonable form substantially similar to that requested and a statement certifying, without limitation: (i) the date of commencement of this Lease; (ii) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications hereto, that this Lease is in full force and effect, as modified, and stating the date and nature of such modifications); (iii) the date to which the rental and other sums payable under this Lease have been paid; (iv) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant’s statement; (v) no deposit of any nature has been made in connection with the Lease (other than deposits the nature and amount of which are expressly described in the Lease); and (vi) such other matters requested by Landlord.

Landlord and Tenant intend that any statement delivered pursuant to this Section 18 may be relied upon by any mortgagee, beneficiary, purchaser or prospective purchaser of the Premises, the Property, any portion thereof, or any interest therein. Tenant’s failure to deliver such statement within such time shall be conclusive upon Tenant that (i) this Lease is in full force and effect, without modification except as may be represented by Landlord; (ii) there are no uncured defaults in Landlord’s performance; (iii) not more than one (1) month’s rental has been paid in advance; and (iv) no deposit of any nature has been made in connection with the Lease except as represented by Landlord.

18.2 Subordination. This Lease shall be subject and subordinate to all ground leases, CC&Rs, and the lien of all mortgages and deeds of trust which now or hereafter affect the Premises or the Property or Landlord’s interest therein, and all amendments thereto, all without the necessity of Tenant’s executing further instruments to effect such subordination; provided, however, that Tenant’s rights hereunder shall not be disturbed, except in accordance with the terms and provisions of this Lease. If requested, Tenant shall execute and deliver to Landlord within ten (10) days after Landlord’s request, whatever documentation that may reasonably be required to further effect the provisions of this Section 18.2.

18.3 Attornment. In the event of a foreclosure proceeding, the exercise of the power of sale under any mortgage or deed of trust or the termination of a ground lease, Tenant shall, if

18 requested, attorn to the purchaser thereupon and recognize such purchaser as Landlord under this Lease. The transferee shall not be liable for any acts, omissions or defaults of Landlord that occurred before the sale or conveyance, or the return of any security deposit except for deposits actually paid to transferee, and except as reduced as expressly provided for in Section 4.4 of this Lease or by operation of Law.

19. RELOCATION WAIVER.

19.1 Waiver. Tenant fully releases and discharges Landlord (in its capacity as Landlord and otherwise as a municipal corporation) from all and any manner of rights, demands, liabilities, obligations, claims, or cause of actions, in Law or equity, of any kind or nature, known or unknown, now existing or hereinafter arising, which arise from or relate in any manner to the relocation of Tenant’s business operations, or the relocation of any person(s), business(es), or other occupant(s) located on within, on, or about, the Premises following the full or partial termination or expiration of Tenant’s leasehold interest in the Premises (collectively, “Relocation Claims”), including waiver and release of any relocation rights under Government Code sections 7260 et seq. or any federal Laws (collectively, “Relocation Assistance Law”).

Tenant acknowledges and agrees that the release and waiver set forth in this Section 19 is material consideration for Landlord’s agreement to enter into this Lease, and that, but for this release and waiver, Landlord would not have entered into this Lease. By releasing and forever discharging the Relocation Claims, Tenant expressly waives any rights under California Civil Code section 1542, which provides: “A GENERAL RELEASE DOES NOT EXTEND TO

CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS

OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY

HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

20. REQUIRED ACCESSIBILITY DISCLOSURE

20.1 The City hereby advises Tenant that the Property has not undergone an inspection by a certified access specialist, and except to the extent expressly set forth in this Lease, The City shall have no liability or responsibility to make any repairs or modifications to the Property in order to comply with accessibility standards. The following disclosure is hereby made pursuant to applicable California law:

20.1.1 “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject Property comply with all of the applicable construction- related accessibility standards under state law. Although state law does not require a CASp inspection of the subject Property, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject Property for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the Property.” [Cal. Civ.

Code Section 1938(e)]. Any CASp inspection shall be conducted in compliance with reasonable rules in effect at the Building with regard to such inspections and shall be subject to The City’s prior written consent.

19 21. CITY NON-DISCRIMINATION ORDINANCE

21.1 Tenant hereby agrees to comply with the provisions of B.M.C. Chapter 13.26 as amended from time to time. In the performance of this Lease, Tenant agrees as follows:

21.2 Tenant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, national origin, age (over 40), sex, pregnancy, marital status, disability, sexual orientation or AIDS.

21.3 Tenant shall permit the City access to records of employment, employment advertisements, application forms, EEO-1 forms, affirmative action plans and any other documents which, in the opinion of the City, are necessary to monitor compliance with this non- discrimination provision. In addition, Tenant shall fill out, in a timely fashion, forms supplied by the City to monitor this non-discrimination provision.

21.4 Tenant represents that it is subject to state and federal anti-discrimination laws, and maintains a policy of non-discrimination in admission, access, and treatment in its programs, activities, and employment, which fulfill the requirements of subdivision (a), above. Assuming, arguendo, that the requirements of Chapter 13.26 would otherwise apply, for purposes of this Lease the City agrees that the documentation contemplated in subdivision (b) will not be required of Tenant.

22. NON-DISCRIMINATION AGAINST PERSONS WITH DISABILITIES

22.1 If Tenant provides any aid, service or benefit to others on the City’s behalf, Tenant shall, in the provision of such aid, service or benefit, observe and comply with all applicable provisions of Title II of the Americans with Disabilities Act of 1990 and any amendments thereto. Tenant shall further observe and comply with all applicable federal, state, municipal and local laws, ordinances, codes and regulations prohibiting discrimination against individuals with disabilities or ensuring that individuals with disabilities are not excluded from participating in or receiving benefit, services or activities of the City.

22.2 If Tenant is or becomes a “public accommodation” as defined in Title III of the Americans with Disabilities Act of 1990, Tenant shall observe and comply with all applicable provisions of the Act and any amendments thereto, and all applicable federal, state, municipal and local laws, ordinances, codes and regulations prohibiting discrimination on the basis of disability in the full and equal enjoyment of goods, services, facilities, privileges, advantages, or accommodations offered by the Tenant. All Tenant’s activities must be in accordance with these laws, ordinances, codes, and regulations, and Tenant shall solely be responsible for complying therewith.

23. BERKELEY EQUAL BENEFITS ORDINANCE (EBO)

23.1 Tenant hereby agrees to comply with the provisions of the Berkeley Equal Benefits Ordinance, B.M.C. Chapter 13.29. If Tenant is currently subject to the Berkeley Equal Benefits Ordinance, Tenant will be required to provide all eligible employees with City mandated equal benefits during the term of this License, as defined in B.M.C. Chapter 13.29, as well as comply with the terms enumerated herein.

20 23.2 If Tenant is currently or becomes subject to the Berkeley Equal Benefits Ordinance, Tenant agrees to supply the City with any records the City deems necessary to determine compliance with this provision.

23.3 If Tenant fails to comply with the requirements of this Section, City shall have the rights and remedies described in this Section, in addition to any rights and remedies provided by law and equity. Tenant’s failure to comply with this Paragraph shall constitute default of the Lease.

23.4 In addition, at City’s sole discretion, Tenant may be responsible for liquidated damages in the amount of $50.00 per employee per day for each and every instance of violation of this Section. It is mutually understood and agreed that Tenant’s failure to provide its employees with equal benefits will result in damages being sustained by City; that the nature and amount of these damages will be extremely difficult and impractical to fix; that the liquidated damages set forth herein is the nearest and most exact measure of damages for such breach that can be fixed at this time; and that the liquidated damage amount is not intended as a penalty or forfeiture for Tenant’s breach.

24. BERKELEY LIVING WAGE ORDINANCE (LWO)

24.1 Tenant agrees to comply with Berkeley Municipal Code Chapter 13.27, the Berkeley Living Wage Ordinance (LWO). If Tenant employs six (6) or more part-time or full- time employees, and generates $350,000 or more in annual gross receipts, Tenant will be required to provide all eligible employees with City of Berkeley (City) mandated minimum compensation during the term of this Lease, as defined in B.M.C. Chapter 13.27, as well as comply with the terms enumerated herein.

24.2 Licensee shall be required to maintain all reasonable records and documents that would establish whether Licensee is subject to the LWO. If Licensee is subject to the LWO, as defined therein, Licensee shall be further required to maintain monthly records of those employees located on the Property. These records shall include the total number of hours worked, the number of hours spent providing service on the Property, the hourly rate paid, and the amount paid by Licensee for health benefits, if any, for each of its employees providing services under the Lease. The records described in this paragraph shall be made available upon the City’s request. The failure to produce these records upon demand shall be considered a default, subject to the provisions contained in Paragraph 23 herein.

24.3 If Licensee is subject to the LWO, Licensee shall include the requirements of the ordinance, as defined in B.M.C. Chapter 13.27, in any and all sublicenses in which Licensee enters with regard to the subject Property. Sublicenses shall be required to comply with this ordinance with regard to any employees who spend 25% or more of their compensated time on the Property.

24.4 If Licensee fails to comply with the requirements of the LWO and this Lease the City shall have the rights and remedies described in this Paragraph, in addition to any rights and remedies provided by law or equity. Licensee’s failure to comply with this Paragraph shall

21 constitute default of the Lease, upon which City may terminate this Lease pursuant to Paragraph

23. 24.5 In addition, at City’s sole discretion, Licensee may be responsible for liquidated damages in the amount of $50 per employee per day for each and every instance of an underpayment to an employee. It is mutually understood and agreed that Licensee’s failure to pay any of its eligible employees at least the applicable living wage will result in damages being sustained by the City; that the nature and amount of the damages will be extremely difficult and impractical to fix; that the liquidated damages set forth herein is the nearest and most exact measure of damage for such breach that can be fixed at this time; and that the liquidated damage is not intended as a penalty of forfeiture for Licensee’s breach.

25. OPPRESSIVE STATES

25.1 In accordance with Resolution No. 59,853-N.S., Licensee certifies that it has no contractual relations with, and agrees during the term of this Lease to forgo contractual relations to provide personal services to, the following entities:

25.1.1 The governing regime in any Oppressive State.

25.1.2 Any business or corporation organized under the authority of the governing regime of any Oppressive State.

25.1.3 Any individual, firm, partnership, corporation, association, or any other commercial organization, and including parent-entities and wholly-owned subsidiaries (to the extent that their operations are related to the purpose of this Lease) for the express purpose of assisting in business operations or trading with any public or private entity located in any Oppressive State.

25.2 For purposes of this Lease, the Tibet Autonomous Region and the provinces of Ado, Kham, and V-Tsang shall be deemed Oppressive States. Licensee’s failure to comply with this paragraph shall constitute a default of this Lease and City may terminate this Lease. In the event that City terminates this Lease due to a default under this provision, City may deem Licensee a non-responsible bidder for five (5) years from the date this Lease is terminated.

26. CONFLICT OF INTEREST PROHIBITED

26.1 In accordance with Government code section1090, Berkeley City Charter section 36, and the Berkeley Municipal Code (B.M.C.) Chapter 3.64, neither Licensee nor any employee, officer, director, partner or member of Licensee, or immediate family member of any of the preceding, shall have served with the City as an elected officer, an employee, or a City board, committee or commission member, who has directly or indirectly influenced the making of this Lease.

26.2 In accordance with Government Code section 1090 and the Political Reform Act, Government Code section 87100 et seq., no person who is a director, officer, partner, trustee, employee or consultant of the Licensee, or immediate family member of the preceding, shall make or participate in a decision made by the City or a City board, commission or committee, if

22 it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or Licensee.

26.3 Interpretation of this section shall be governed by the definitions and provisions used in the Political Reform Act, Government Code section87100 et seq., its implementing regulations, manuals and codes, Government Code section 1090, Berkeley City Charter section 36 and B.M.C. Chapter 3.64.

27. MISCELLANEOUS.

27.1 General.

27.1.1 Entire Agreement. This Lease sets forth all the agreements between Landlord and Tenant concerning the Property and the Premises, and there are no agreements either oral or written other than as set forth herein.

27.1.2 Time of Essence. Time is of the essence of this Lease.

27.1.3 This subsection intentionally deleted.

27.1.4 Severability. If any provision of this Lease or the application of any such provision shall be held by a court of competent jurisdiction to be invalid, void or unenforceable to any extent, the remaining provisions of this Lease and the application thereof shall remain in full force and effect and shall not be affected, impaired or invalidated.

27.1.5 Law. This Lease shall be construed and enforced in accordance with the Laws of the State of California, without reference to its choice of law provisions.

27.1.6 Interpretation. The titles to the sections of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part of this Lease. As used in this Lease, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word “including” shall be construed as if followed by the words “without limitation.” This Lease shall be interpreted as though prepared jointly by both parties.

27.1.7 No Option. Submission of this Lease to Tenant for examination or negotiation does not constitute an option to lease, offer to lease or a reservation of, or option for, the Premises; and this Lease shall become effective and binding only upon the execution and delivery hereof by Landlord and Tenant.

27.1.8 Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the successors and assigns of Landlord and, subject to compliance with the terms of Section 17.

27.1.9 Third Party Beneficiaries. Nothing herein is intended to create any third party benefit.

23 27.1.10 Memorandum of Lease; Title. Landlord may elect to have either this Lease or a short form memorandum hereof recorded pursuant to the requirements of California Government Code section 37393. Tenant shall cooperate with Landlord in executing and acknowledging any such memorandum of lease. Upon the expiration or other termination of this Lease, Tenant shall immediately execute and deliver to Landlord a quitclaim deed to the Premises and the Property, as required, in recordable form, designating Landlord as transferee or grantee. Tenant shall not do any act which shall in any way encumber the title of Landlord in and to the Property or any portion thereof.

27.1.11 No Agency, Partnership or Joint Venture. Nothing contained herein nor any acts of the parties hereto shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture by the parties hereto or any relationship other than the relationship of landlord and tenant.

27.1.12 Merger. The voluntary or other surrender of this Lease by Tenant or a mutual cancellation thereof or a termination by Landlord shall not work a merger and shall, at the option of Landlord, terminate all or any existing subtenancies or may, at the option of Landlord, operate as an assignment to Landlord of any or all of such subtenancies.

27.1.13 Waiver. No waiver of any default or breach hereunder shall be implied from any omission to take action on account thereof, notwithstanding any custom and practice or course of dealing. No waiver by either party of any provision under this Lease shall be effective unless in writing and signed by such party. No waiver shall affect any default other than the default specified in the waiver and then such waiver shall be operative only for the time and to the extent therein stated. Waivers of any covenant shall not be construed as a waiver of any subsequent breach of the same.

27.1.14 Limitation of Liability. The obligations of Landlord under this Lease are not personal obligations of Landlord; and Tenant shall look solely to the rents, issues, profits and other income generated by the Premises for satisfaction of any liability of Landlord and shall not look to other assets of Landlord nor seek recourse against the other assets of Landlord.

Whenever Landlord transfers its interest, Landlord shall be automatically released from further performance under this Lease and from all further liabilities and expenses hereunder and the transferee of Landlord’s interest shall assume all liabilities and obligations of Landlord hereunder from the date of such transfer.

27.1.15 Notices. All notices to be given hereunder shall be in writing and mailed postage prepaid by certified or registered mail, return receipt requested, or delivered by personal or courier delivery, to Landlord’s address and Tenant’s address set forth in Sections 1 and 2 of the Basic Lease Information, or to such other place as Landlord or Tenant may designate in a written notice given to the other party. Notices shall be deemed served upon the earlier of receipt or three (3) days after the date of mailing.

27.1.16 Brokerage Commission. Landlord and Tenant each represents that they have not been represented by any broker in connection with this Lease, and that no real estate broker’s commission, finder’s fee or other compensation is due or payable. Tenant agrees to indemnify and hold harmless Landlord from any claims or liability, including reasonable

24 attorneys’ fees, in connection with a claim by any person for a commission, Finder’s Fee or other compensation based upon any statement, representation or agreement of Tenant.

27.1.17 Authorization. Each individual or entity executing this Lease on behalf of Tenant represents and warrants that he or she or it is duly authorized to execute and deliver this Lease on behalf of Tenant and that such execution is binding upon Tenant.

27.1.18 Holding Over. If, with Landlord’s express written consent, Tenant holds over the Premises or any part thereof after expiration or earlier termination of the Term, such holding over shall constitute a month-to-month tenancy on all the other terms and conditions of this Lease, except that Base Rent shall be equal to 125% of the Base Rent payable under this Lease for the last full month before the date of expiration or termination. This section shall not be construed as Landlord’s permission for Tenant to hold over. Acceptance of Rent by Landlord following expiration or termination shall not constitute a renewal of this Lease or extension of the Term, except as specifically set forth above. If Tenant remains in possession of the Premises after expiration or other termination of this Lease without Landlord’s express written consent, Tenant’s continued possession shall be on the basis of a tenancy at sufferance and Tenant shall pay as Base Rent during the holdover period an amount equal to one hundred fifty percent (150%) of the Rent payable under this Lease for the last full month before the date of expiration or termination. If Tenant fails to surrender the Premises upon expiration or other termination of this Lease, Tenant shall indemnify and hold Landlord harmless from and against all loss or liability resulting from or arising out of Tenant’s failure to surrender the Premises, including, but not limited to, any amounts required to be paid to any tenant or prospective tenant who was to have occupied the Premises after the expiration or other termination of this Lease and any related attorneys’ fees and brokerage commissions.

27.1.19 Surrender. Upon the expiration or other termination of this Lease or Tenant’s right to possession of the Premises, Tenant will surrender the Premises, together with all keys, broom-swept clean and in good condition and repair, reasonable wear and tear excepted.

Conditions existing because of Tenant’s failure to perform maintenance, repairs or replacements shall not be deemed “reasonable wear and tear.”

27.1.20 Joint and Several. If Tenant consists of more than one person, the obligation of all such persons shall be joint and several.

27.1.21 Covenants and Conditions. Each provision to be performed by Tenant hereunder shall be deemed to be both a covenant and a condition. This Lease shall be construed as though the covenants between Landlord and Tenant are independent and not dependent.

Tenant expressly waives the benefit of any statute to the contrary, and agrees that even if Landlord fails to perform its obligations under this Lease, Tenant shall not be entitled to make repairs or perform any acts at Landlord’s expense, or to any setoff against Rent or other amounts owing under this Lease against Landlord.

27.1.22 Force Majeure. For purposes of this Lease, the term “Force Majeure” shall mean and include the following: any delay caused by any action, inaction, order, ruling, moratorium, regulation, statute, condition or other decision of any governmental agency having jurisdiction over any portion of the Property, over any construction anticipated to occur thereon

25 or over any uses thereof, or by fire, flood, inclement weather, energy shortage, strikes, lockouts or other labor or industrial disturbance, civil disturbance, order of any government, court or regulatory body claiming jurisdiction or otherwise, governmental preemption or curtailment in connection with a national emergency or in connection with any rule, order, guideline or regulation of any department or governmental agency, or by reason of the conditions of supply and demand which have been or are affected by a war or other emergency, acts of terrorism, act of public enemy, war, riot, sabotage, blockade, embargo, failure or inability to secure an adequate supply of water, electricity, fuel, materials, supplies or labor through ordinary sources by reason of shortages or priority, discovery of Hazardous Materials (as defined in paragraph

13.1), earthquake, or other natural disaster, or any cause whatsoever beyond the reasonable control (excluding financial inability) of the party whose performance is required.

27.1.23 Financial Statements. Upon ten (10) days prior written request from Landlord (which Landlord may make at any time during the Term but no more often than once in any calendar year, unless Tenant is in default), Tenant shall deliver to Landlord a current financial statement of Tenant and any guarantor of this Lease. Such statements shall be prepared in accordance with generally acceptable accounting principles and certified as true in all material respects by Tenant (if Tenant is an individual) or by an authorized officer or general partner of Tenant (if Tenant is a corporation or partnership, respectively).

28. SANCTUARY CITY CONTRACTING
Tenant hereby agrees to comply with the provisions of the Sanctuary City Contracting Ordinance, B.M.C. Chapter 13.105. In accordance with this Chapter, Tenant agrees not to provide the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security with any Data Broker or Extreme Vetting Services as defined herein:

A. “Data Broker” means either of the following:
i. The collection of information, including personal information about consumers, from a wide variety of sources for the purposes of reselling such information to their customers, which include both private-sector business and government agencies; ii. The aggregation of data that was collected for another purpose from that for which it is ultimately used.

B. “Extreme Vetting” means data mining, threat modeling, predictive risk analysis, or other similar services. Extreme Vetting does not include:
i. The City’s computer-network health and performance tools; ii. Cybersecurity capabilities, technologies and systems used by the City of Berkeley Department of Information Technology to predict, monitor for, prevent, and protect technology infrastructure and systems owned and operated by the City of Berkeley from potential cybersecurity events and cyber-forensic based investigations and prosecutions of illegal computer based activity.

26 [SIGNATURES FOLLOW ON NEXT PAGE]

27 IN WITNESS WHEREOF, City and Tenant have executed this Lease as of the date written on number four (4) of the basic lease information sheet.

Approved as to form: CITY OF BERKELEY
____________________________ By ______________________________ City Attorney City Manager
Registered by: Attest:
____________________________ _________________________________ City Auditor City Clerk
Tenant
Sunny Patpatia, Patpatia & Associates, Inc.

By__________________ _
Sunny Patpatia
TENANT INFORMATION:

Tax Identification No. ______________________
Incorporated: Yes _______ No _____
Certified Woman Business Enterprise: Yes ______No______ Certified Minority Business Enterprise: Yes ______No______ Certified Disadvantaged Business Enterprise: Yes ____ No______

28 EXHIBIT A-1

PROPERTY DESCRIPTION
The property is located within the Berkeley Waterfront in the City of Berkeley, CA. The premises include approximately 1,706 square feet comprising the northwestern portion of the 2nd floor of the building commonly known and referred to as 125-127 University Avenue, Berkeley, CA 94710.

Lease Agreement for 125-127 University Avenue- Patpatia & Associates, Inc.

EXHIBIT A-2

DEPICTION OF PREMISES

EXHIBIT B
2 EXHIBIT B

RULES AND REGULATIONS
Tenant shall comply with the following Rules and Regulations (individually and collectively, “Rules”). Landlord shall not be responsible to Tenant for the nonperformance of any of these Rules.

1. Locks; Keys. Tenant shall not alter any lock or install any new or additional locks or bolts on any doors or windows of the Premises without obtaining Landlord’s prior written consent. Tenant shall bear the cost of any lock changes or repairs required by Tenant. Two keys shall be furnished by Landlord for the Premises, and any additional keys required by Tenant must be obtained from Landlord at a reasonable cost to be established by Landlord.

2. Doors Opening to Public Corridors; Protection of Premises. All doors opening to public corridors, if any, must be kept closed at all times except for normal ingress to and egress from the Premises. Tenant shall assume all responsibility, including keeping doors locked and other means of entry to the Premises closed, for protecting the Premises from theft, robbery, and pilferage.

3. Floor Loads. Landlord may prescribe the weight, size, and position of all safes, machinery, equipment, fixtures or other heavy property (“Heavy Property”) brought into the Premises and the times and manner of moving those items within and out of the Premises.

Tenant shall not overload any floor in the Premises or use or operate any machinery, equipment, or other device, even though its installation may have been permitted, that in Landlord’s opinion is harmful to the Premises. If Tenant shall require Heavy Property, Tenant shall notify Landlord of such fact. If considered necessary by Landlord, Heavy Property must stand on supports that are adequate to distribute the weight properly and Tenant shall pay the cost of any necessary supports or structural bracing. Any damage to any property (whether or not belonging to Tenant), the Premises, the Property or any portion thereof, or its or their respective contents, or any harm to Tenant, its employees, agents, or any occupants or visitors caused by moving or maintaining any Heavy Property shall be the sole responsibility and expense of Tenant.

4. Requirements of Tenant. Any special requirements of Tenant not set forth as an obligation of Landlord under the Lease will be considered only upon written application to Landlord at Landlord’s address set forth in the Lease. Landlord’s employees shall not perform any work or do anything outside their regular duties unless under special instructions from Landlord.

5. Use of Plumbing Facilities; Responsibility for Damage. The plumbing facilities (including but not limited to restrooms, toilets, urinals, wash bowls, drains, and other apparatus) shall be used for no purpose other than that for which they were constructed, and no foreign substance of any kind shall be thrown into them. The expense of any breakage, stoppage, or damage resulting from violation of this rule shall be borne by Tenant.

6. Restrictions on Defacement; Maintenance of Premises. Tenant shall not mark, drive nails or screws into, or drill into the partitions, woodwork, or plaster, or in any way deface the

EXHIBIT B
3 Premises, the Property or any portion thereof, without Landlord’s prior written consent. Tenant shall maintain the Premises and all portions thereof in a safe, neat and clean condition.

7. Permitted Machines. No machines of more than one horsepower shall be installed, maintained, or operated on the Premises without Landlord’s prior written consent.

8. Flammable or Combustible Fluids or Materials; Foul or Noxious Gases or Substances; Nontoxic Materials. Tenant shall not use or keep, or allow to be used or kept, in or on the Premises, the Property, or any portion thereof, any kerosene, gasoline, or other flammable or combustible fluid, material, or any foul or noxious gas or substance. All materials, fabrics, and products used in Tenant’s furnishings, wall and floor coverings, and ceiling installations shall be nontoxic and subject to the prior approval of Landlord’s architect or engineer. Nothing contained here is intended or shall be construed to alter or diminish any obligations of Tenant under any portion(s) of its Lease addressing environmental matters and compliance, Hazardous Materials Laws, Hazardous Materials, or similar matters, or compliance with Laws. Any existing materials supplied or installed by Landlord in the Premises are exempt from this provision.

9. Cooking; No Use of Premises for Improper Purposes. No cooking shall be done or permitted on the Premises, except that Underwriters’ Laboratory (UL)-approved equipment and microwave ovens may be used in the Premises for heating food and brewing coffee, tea, hot chocolate, and similar beverages for employees and visitors. This use must be in accordance with all Laws. The Premises shall not be used for lodging, or for any improper, objectionable, or immoral purposes.

10. Exclusion or Expulsion. Landlord reserves the right to exclude or expel from the Property or any portion thereof any person who, in Landlord’s judgment, is under the influence of alcohol or drugs or commits any act in violation of any of these Rules.

11. Loitering Prohibited. Tenant and Tenant’s Parties shall not loiter in or about the Property for the purpose of smoking tobacco products or for any other purpose unrelated to Tenant’s use of the Premises.

12. Smoking; Illegal Substances. Smoking of tobacco products and use of illegal substances is strictly prohibited in or about the Property or any portion thereof.

13. Extermination. Tenant agrees not to permit the extermination of vermin to be performed in, on or about the Property or any portion thereof except at times and by a person or company reasonably designated by Landlord.

14. Obstructions. Tenant and Tenant’s Parties shall not in any way obstruct the sidewalks, entry passages, pedestrian passageways, driveways, entrances and exits to the Property, and they shall use the same only as passageways to and from the Premises. At no time shall Tenant or Tenant’s Parties be permitted to conduct work activity (except for normal loading and unloading of vehicles) nor store wooden pallets, boxes, goods or other materials outside the confines of Tenant’s Premises.

15. Disposal of Trash and Garbage. Tenant shall store all trash, garbage and refuse (“Trash”) within the interior of the Premises. Tenant shall not place or have placed in Trash

EXHIBIT B
4 boxes or receptacles any material that may not or cannot be disposed of in the ordinary and customary manner of removing and disposing of Trash in the vicinity of the Premises. Tenant shall comply fully with all applicable Laws when disposing of Trash.

16. Provision of Information to Tenant’s Employees. Tenant shall comply with requests by Landlord that Tenant inform Tenant’s employees and agents of items of importance to Landlord.

17. Prohibited Uses and Activities.

17.1 Any use, operation or activity which causes or produces the attraction of flies, insects, rodents or other animals, or the creation or emission of dust or dirt, without proper mitigating measures in place;

17.2 Any use, operation or activity which causes or produces any emission into the air of any (i) noxious, toxic, hazardous or corrosive fumes or gases; (ii) excessive smoke, dirt or dust; or (iii) pollutants in violation of any local, state or federal standards;

17.3. Any use, operation or activity which causes or produces any discharge of Hazardous Materials (as defined in Lease Section 13.1) into any sewer system or storm drain serving the Property in a manner that will result in any leaching into the soil, or release into the atmosphere or groundwater;

17.4. Hazardous or unsafe uses by reasons of danger of fire or explosion, or uses that will increase the fire hazard rating on the Property or other properties, or uses objectionable or offensive to adjoining properties;

17.5. Uses in violation of any applicable Laws;

17.6. Any construction, erection, or placement of ornamentation or other objects or equipment, permanently or temporarily, on the outside portions of the Property, whether such portion is improved or unimproved, except as specifically permitted by Landlord; and

17.7 Additional prohibited uses as determined by Landlord from time to time.

18. Conflict. In the event of any conflict between these Rules or any further or modified Rules from time to time issued by Landlord and the Lease provisions, the Lease shall govern and control.

19. Rule Changes; Waivers. Landlord reserves the right at any time to change or rescind any one or more of these Rules or to make such other and further reasonable Rules as, in Landlord’s judgment, may from time to time be necessary for the operation, management, safety, care and cleanliness of the Property or any portion thereof, for the preservation of good order therein, or for the convenience of other occupants and tenants of the Property, if any. Landlord may waive any one or more of these Rules for the benefit of any particular tenant(s). Landlord further reserve(s) all the rights reserved to it or them by the provisions of the Lease, by any CC&Rs, or by operation of Law. No waiver by Landlord shall be construed as a waiver of those Rules in favor of any other tenant or occupant of the Premises or Property, and no waiver shall prevent Landlord from enforcing those Rules against any other tenant or occupant of the Property.

EXHIBIT B
5 Landlord shall not be responsible to Tenant or to any other person for the non-observance or violation of the Rules by any other tenant, occupant, or other persons. Tenant shall abide by any additional rules or regulations which are ordered or requested by any governmental or military authority. Tenant shall be deemed to have read these rules and to have agreed to abide by them as a condition of Tenant’s use and occupancy of the Premises.

EXHIBIT B
1 EXHIBIT C

PAYMENT PROVISION
Tenant: Patpatia & Associates
Property Address: 125-127 University Avenue, Berkeley, CA 94710 Lease Term: 3 years, with two 1-year options to renew
Annual Rent Increase: 3%
Initial Term
Lease Year Monthly Rent Annual Rent
July 2026-June 2027 $4,265.00 $51,180.00
July 2027-June 2028 $4,392.95 $52,715.40
July 2028-June 2029 $4,524.73 $54,296.86
Initial Term Total Revenue: $158,192.26
Option Terms
Option Period Monthly Rent Annual Rent
July 2029-June 2030 $4,660.47 $55,925.66
July 2030-June 2031 $4,800.28 $57,603.40
Total Revenue with Option Period: $271,172.32

Ordinance No. 8,010-N.S. Page 1 of 8
ORDINANCE NO. 8,010-N.S.

AMENDING THE ANNUAL APPROPRIATIONS ORDINANCE NO. 7,993–N.S. FOR FISCAL YEAR 2026
BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. That the Annual Appropriations Ordinance based on the budget for FY 2026 submitted by the City Manager and passed by the City Council be amended as follows and as summarized in Exhibit A:

A. General Fund (Funds 001-099) 377,411,265
B. Special Funds (Funds 100-199) 236,687,691
C. Grant Funds (Funds 300-399) 98,781,704
D. Capital Projects Funds (Funds 500-550) 160,451,779
E. Debt Service Fund (Funds 551-599) 15,010,855
F. Enterprise Funds (Funds 600-669) 227,823,126
G. Internal Service Funds (Funds 146, 670-699) 87,756,866 H. Trust Funds (Funds 701-759) 242,205
I. Successor Agency (Funds 760-769) 57,120
J. Agency Funds (Funds 771-799) 6,970,128
K. Other Funds (Funds 800-899) 9,779,177
L. Total
Total General Fund 377,411,265
Add: Total Other Than General Fund 843,560,651
Gross Revenue Appropriated 1,220,971,916
Less: Dual Appropriations -96,270,619
Less: Revolving/Internal Service Funds -79,142,085
Net Revenue Appropriated 1,045,559,212

Ordinance No. 8,010-N.S. Page 2 of 8
Section 2. The City Manager is hereby permitted, without further authority from the City Council, to make the following transfers by giving written notice to the Director of Finance:
a. From the General Fund to the General Fund – Stability Reserve Fund; Catastrophic Reserve Fund; Paramedic Tax Fund; Health State Aid Realignment; Fair Election Fund; Capital Improvement Fund; Phone System Replacement; Equipment Replacement Fund; Public Liability Fund; Catastrophic Loss Fund; Police Employee Retiree Health Assistance Plan; Safety Members Pension Fund; Sick Leave Entitlement Fund; and Payroll Deduction Trust Fund. b. To the General Fund from the General Fund – Stability Reserves Fund; Catastrophic Reserves Fund; Community Development Block Grant Fund; Street Lighting Assessment District Fund; Zero Waste Fund; Marina Operations and Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Parking Meter Fund; Unified Program (CUPA); IT Cost Allocation Fund; Health State Aid Realignment Fund; and Measure U1 c. From GF-Payroll Deduction Trust Fund to Employee Training Fund; General Fund
d. To the First Source Fund from the Parks Tax Fund; Capital Improvement Fund; and the Marina Fund.
e. From the Measure U1 Fund to the Workers’ Compensation Fund f. From the Catastrophic Reserve Fund to the Playground Camp Fund

g. From Gilman Sports Field Fund to Gilman Field Reserve Fund h. From Measure FF Fund to Paramedic Tax Fund.
i. From the American Rescue Plan Fund to the General Fund; Sports Field Fund; Playground Camp Fund; Marina Fund; Off-Street Parking Fund; and Parking Meter Fund.
j. From Capital Improvement Fund to PERS Savings Fund; Berkeley Repertory Theater Fund; and 2010 COP (Animal Shelter) Fund.
k. To the Public Art Fund from the Parks Tax Fund; Capital Improvement Fund; and the Marina Fund.
l. To CFD#1 District Fire Protection Bond (Measure Q) from Special Tax Bonds CFD#1 ML-ROOS.
m. To Private Sewer Lateral Fund from Sanitary Sewer Operation Fund. n. To Catastrophic Loss Fund from Permit Service Center Fund. o. To Catastrophic Loss Fund from Unified Program (CUPA) Fund.

Ordinance No. 8,010-N.S. Page 3 of 8
p. To the Building Purchases and Management Fund from General Fund; Health (General) Fund; Rental Housing Safety Program Fund; Measure B Local Streets & Road Fund; Employee Training Fund; Zero Waste Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Building Maintenance Fund; Central Services Fund; and Health State Aide Realignment Trust Fund.
q. To Equipment Replacement Fund from General Fund; Mental Health Services Act Fund; Health (Short/Doyle) Fund; Vector Control Fund; Paramedic Tax Fund; Playground Camp Fund; State Transportation Tax Fund; Rental Housing Safety Program Fund; Parks Tax Fund; Street Light Assessment District Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Central Services Fund.
r. To the Equipment Maintenance Fund from General Fund; Health (General) Fund; Mental Health Services Act Fund; Health (Short/Doyle) Fund; Vector Control Fund; Paramedic Tax Fund; Library - Discretionary Fund; Playground Camp Fund; State Transportation Tax Fund; Rental Housing Safety Program Fund; Rent Stabilization Board Fund; Parks Ta Fund; Street Light Assessment District Fund; FEMA Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Central Services Fund.
s. To the Building Maintenance Fund from the General Fund; Health (General) Fund; Health (Short/Doyle) Fund; Measure B Local Street & Road Fund; Parks Tax Fund; Street Light Assessment District Fund; Zero Waste Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Off Street Parking Fund; Parking Meter Fund; Equipment Maintenance Fund; Building Maintenance Fund; and Mental Health State Aid Realignment Fund.
t. To the Central Services Fund from the General Fund; First Source Fund; Health (Short/Doyle) Fund; Library-Discretionary Fund; Playground Camp Fund; Rent Stabilization Board Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation; Building Purchases & Management Fund; Building Maintenance Fund; Central Services Fund; and Mental Health State Aid Realignment Fund.
u. To Information Technology Cost Allocation Plan Fund from General Fund; Target Case Management/Linkages Fund; Health (Short/Doyle); Library Fund; Playground Camp Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Rent Stabilization Board Fund; Parks Tax Fund; Street

Ordinance No. 8,010-N.S. Page 4 of 8
Light Assessment District Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation; Clean Storm Water Fund; Permit Service Center Fund; Off Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Equipment Maintenance Fund; Building Maintenance Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; and Mental Health State Aid Realignment Fund.
v. To the Workers' Compensation Self-Insurance Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority; and Bio-Terrorism Grant Fund.
w. To the Sick Leave and Vacation Leave Accrual Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital

Ordinance No. 8,010-N.S. Page 5 of 8
Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority; and Bio-Terrorism Grant Fund.
x. To the Payroll Deduction Trust Fund from General Fund; Special Tax for Severely Disabled Measure E Fund; First Source Fund; HUD Fund; ESGP Fund; Health (General) Fund; Target Case Management/Linkages Fund; Mental Health Service Act Fund; Health (Short/Doyle) Fund; EPSDT Expansion Proposal Fund; Senior Nutrition (Title III) Fund; C.F.P. Title X Fund; Fund Raising Activities Fund; Berkeley Unified School District Grant; Vector Control Fund; Paramedic Tax Fund; Alameda County Grants Fund; Senior Supportive Social Services Fund; Family Care Support Program Fund; Domestic Violence Prevention – Vital Statistics Fund; Affordable Housing Mitigation; Inclusionary Housing Program; Library – Discretionary Fund; Playground Camp Fund; Community Action Program Fund; State Proposition 172 Public Safety Fund; State Transportation Tax Fund; CDBG Fund; Rental Housing Safety Program; Measure B Local State & Road Fund; Measure B Bike & Pedestrian Fund; Measure B – Paratransit Fund; Measure F Alameda County Vehicle Registration Fee Streets & Roads Fund; Measure BB – Paratransit Fund; Fair Election Fund; Measure U1 Fund; One-Time Grant: No Cap Expense Fund; Rent Stabilization Board Fund; Parks Tax Fund; Measure GG – Fire Prep Tax Fund; Street Lighting Assessment District Fund; Employee Training Fund; Private Percent – Art Fund; Measure T1 – Infrastructure & Facilities Fund; FUND$ Replacement Fund; Capital Improvement Fund; FEMA Fund; CFD #1 District Fire Protect Bond Fund; Special Tax Bonds CFD#1 ML-ROOS Fund; Shelter+Care HUD Fund; Shelter+Care County Fund; Zero Waste Fund; Marina Operations/Maintenance Fund; Sanitary Sewer Operation Fund; Clean Storm Water Fund; Private Sewer Lateral Fund; Permit Service Center Fund; Off-Street

Ordinance No. 8,010-N.S. Page 6 of 8
Parking Fund; Parking Meter Fund; Unified Program (CUPA) Fund; Building Purchases & Management Fund; Equipment Replacement Fund; Equipment Maintenance Fund; Building Maintenance Fund; Central Services Fund; Workers’ Compensation Fund; Public Liability Fund; Information Technology Cost Allocation Plan Fund; Health State Aid Realignment Trust Fund; Tobacco Control Trust Fund; Mental Health State Aid Realignment Fund; Alameda Abandoned Vehicle Abatement Authority: Bio-Terrorism Grant Fund; PERS Savings Fund; and Sick Leave Entitlement.

Section 3. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.

At a regular meeting of the Council of the City of Berkeley held on May 19, 2026, this Ordinance was passed to print and ordered published by posting by the following vote:

Ayes: Bartlett, Blackaby, Humbert, Kesarwani, Lunaparra, O’Keefe, Taplin, Tregub, and Ishii.

Noes: None.

Absent: None.

Ordinance No. 8,010-N.S. Page 7 of 8
Attachment for Annual Appropriations Ordinance - Fiscal Year 2026

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

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

Revolving/Internal Service Funds
Employee Training Fund 828,500
Equipment Replacement Fund 14,690,694
Equipment Maintenance Fund 12,602,639
Building Maintenance Fund 6,017,798
Central Services Fund 411,905
Workers' Compensation Fund 11,863,212
Public Liability Fund 4,893,202
27,834,137
Subtotal Revolving/Internal Service Funds 79,142,085$
Information Technology Fund
Transfers to the General Fund
Indirect Cost Reimbursement
CDBG Fund 176,194
Street Light Assessment District Fund 121,286
UC Settlement 5,000
One-Time Grant: No Cap Exp 78,545
Zero Waste Fund 2,672,297
Marina Enterprise Fund 452,819
Sanitary Sewer Fund 1,583,367
Clean Storm Water Fund 314,606
Permit Service Center Fund 2,187,182
Unified Program (CUPA) Fund 89,070
Subtotal Transfers to General Fund: 7,680,366$

Ordinance No. 8,010-N.S. Page 8 of 8
Transfer to Safety Members Pension Fund from General Fund 551,804 6,500,000
4,177,541
3,299,963
2,699,970
2,822,392
Transfer to Health State Aid Realignment from General Fund 1,953,018 Transfer to Fair Election Fund from General Fund 612,210 Transfer to Capital Improvement Fund (CIP) from General Fund 16,553,180 Transfer to Marina Fund from General Fund 1,409,886
Transfer to Equipment Replacement Fund from General Fund 1,759,380 Transfer to Public Liability Fund from General Fund 3,744,923 Transfer to Catastrophic Loss Fund from General Fund 8,216,345 Transfer to IT Cost Allocation Fund from General Fund 71,335 400,136
Transfer to Sick Leave Entitlement Fund from General Fund 201,501 750,000
6,000,000
2,500,000
6,000,000
Transfer to General Fund from Health State Aid Realignment Fund 2,643,280 757,925
499,802
Transfer from CIP Fund to 2010 COP (Animal Shelter) Fund 402,613 Transfer to Equipment Replacement Fund from Capital Improvement Fund (CIP) 678,030 90,501
50,555
5,082
Transfer to General Fund from Parking Meter Fund 1,042,288 Transfer to General Fund from Workers Compensation Fund 5,187,019 Transfer to General Fund from IT Cost Allocation Fund 6,466,414 273,854
Transfer to First Source Fund from Parks Tax Fund 26,925 Transfer to First Source Fund from Capital Improvement Fund 26,925 Transfer to First Source Fund from Marina Fund 2,175
Transfer to Public Art Fund from Parks Tax Fund 68,119
Transfer to Public Art Fund from Capital Improvement Fund 141,357 Transfer to Public Art Fund from Marina Fund 3,806
Subtotal Transfers to Other Funds: 88,590,254
Sub-Total Dual Appropriations 96,270,619
Grand Total Dual Appropriations 175,412,705
Transfer to GF Operating Reserves Fund from General Fund Transfer to GF Stabilization Reserves Fund from General Fund Transfer to GF Catastrophic Reserves Fund from General Fund Transfer to PERS Savings Fund from General Fund
Transfer to GF Payroll Deduction Trust Fund from Sick Leave Entitlement Fund Transfer to Police Employee Retiree Health Assistance Plan from General Fund Transfer to Catastrophic Loss Fund from Permit Service Center Fund Transfer to Catastrophic Loss Fund from Unified Program (CUPA) Fund Transfer to Private Sewer Lateral Fund from Sewer Fund
Transfer to Berkeley Repertory Theater Debt Service Fund from CIP Fund Transfer to Measure U1 Fund from General Fund
Transfer to Paramedic Tax Fund from Measure FF - Public Safety Fund Transfer to Employee Training Fund from GF Payroll Deduction Trust Fund Transfer to General Fund from GF Payroll Deduction Trust Fund Transfer to General Fund from Measure U1 Fund
Transfer to GF Payroll Deduction Trust Fund from PERS Fund

EXHIBIT A
2nd AAO
FY 2026 Une ncumbered Other Total FY 2026
ERMA
Fund # Fund Revised #1 Carryovers Adjustments Amend. Revised #2 11 General Fund Discretionary 360,191,643 - - - 360,191,643
13 GF - Payroll Deduction Trust 6,750,000 - - - 6,750,000 16 Measure U1 - Housing 14,898,717 - (4,496,669) (4,496,669) 10,402,048 17 Climate Equity Action 67,574 - - - 67,574 101 Library - Tax 29,891,544 - - - 29,891,544 102 Library - Trans Based 4,708,623 - - - 4,708,623 103 Library - Grants 99,884 - - - 99,884 104 Library - Friends & Gift 225,773 - - - 225,773 105 Library - Foundation 204,103 - - - 204,103 106 Asset Forefeiture 61,000 - - - 61,000 107 Special Tax Measure E 1,882,839 - - - 1,882,839 108 Workforce Investment 58,692 - - - 58,692 110 Sec 108 Loan Gty Asst. 1,183,612 - - - 1,183,612 111 Fund Raising Activities 56,019 - 6,000 6,000 62,019 113 Gilman Sports Field 504,669 - 75,000 75,000 579,669 115 Animal Shelter 192,849 - - - 192,849 116 Paramedic Tax 4,894,631 - - - 4,894,631 119 Domestic Violence Prev - Vit Stat 32,490 - - - 32,490 120 Affordable Housing Mitigation 28,704,015 - - - 28,704,015 121 Affordable Child Care 16,892 - - - 16,892
122 Inclusionary Housing Program 926,894 - 800 800 927,694 123 Condo Conversion 1,084,166 - - - 1,084,166 125 Playground Camp 5,030,667 - 1,923 1,923 5,032,590 126 State-
Prop 172 Pub.Safety 1,956,638 - - - 1,956,638 127 State Transportation Tax 15,633,805 - 1,102,235 1,102,235 16,736,040 128 CDBG 4,728,666 - - - 4,728,666 129 Rental Housing Safety Program 2,835,062 - - - 2,835,062 130 Measure B - Local St & Road 2,245,450 - - - 2,245,450 131 Measure B - Bike & Pedestrian 165,754 - - - 165,754 132 Measure B - Paratransit 31,387 - - - 31,387 133 Measure F Alameda County VRF St & Rd 1,550,230 - - - 1,550,230 134 Measure BB - Local St & Road 22,752,386 - - - 22,752,386 135 Meaure BB - Bike & Pedestrian 2,633,212 - - - 2,633,212 136 Measure BB - Paratransit 1,366,768 - - - 1,366,768 137 One-Time Funding 868,238 - 4,554,000 4,554,000 5,422,238 138 Parks Tax 31,611,126 - 378,334 378,334 31,989,460 139 Streets and Open Space Improvement (SOSIP) 450,000 - - - 450,000 140 Measure GG - Fire Prep Tax 6,697,635 - - - 6,697,635 142 Streetlight Assesment District 4,694,382 - - - 4,694,382 143 Berkeley Bus Ec Dev 579,670 - - - 579,670 144 Citywide RLF 368,414 - - - 368,414 146 Employee Training 828,500 - - - 828,500 147 UC Settlement 7,654,842 - - - 7,654,842 148 Cultural Trust 3,329,193 - - - 3,329,193 149 Private Party Sidewalks 1,429,971 - - - 1,429,971 150 Public Art Fund 340,203 - - - 340,203 152 Vital & Health Statistics Trust Fund 31,292 - - - 31,292 154 PERS Savings 6,000,000 - - - 6,000,000 156 Hlth State Aid Realign Trust 6,894,776 - - - 6,894,776 157 Tobacco Cont.Trust 382,344 - - - 382,344 158 Mental Health State Aid Realign 6,412,810 - 250,000 250,000 6,662,810
159 Citizens Option Public Safety Trust 978,186 - - - 978,186 161 Alameda Cty Abandoned Vehicle Abatement 101,306 - - - 101,306 164 Measure FF - Public Safety 13,854,778 - - - 13,854,778 165 Fair Elections 664,752 - - - 664,752 166 Measure FF - Street Repair 975,000 - 341,761 341,761 1,316,761 301 Operating Grants - Federal 155,304 - - - 155,304 302 Operating Grants - State 14,189,604 - - - 14,189,604 305 Capital Grants - Federal 150,751 - - - 150,751 306 Capital Grants - State 4,615,096 - 150,000 150,000 4,765,096 307 Capital Grants - Local 10,206,169 - - - 10,206,169 309 OTS DUI Enforcement Education Prg. 389,321 - - - 389,321 310 HUD/Home 2,797,600 - - - 2,797,600 311 ESG 452,137 - - - 452,137 312 Health (General) 2,750,657 - 59,613 59,613 2,810,270 313 Target Case Management Linkages 1,606,318 - - - 1,606,318 315 Mental Health Service Act 14,191,735 - - - 14,191,735

SUMMARY OF APPROPRIATIONS BY FUND
26AAO_Final.xlsx 4/20/2026 3:44 PM

EXHIBIT A
2nd AAO
FY 2026 Une ncumbered Other Total FY 2026
ERMA
Fund # Fund Revised #1 Carryovers Adjustments Amend. Revised #2

SUMMARY OF APPROPRIATIONS BY FUND
316 Health (Short/Doyle) 7,577,044 - - - 7,577,044 317 EPSDT Expansion Proposal 669,282 - - - 669,282 318 Alcoholic Bev Ctr OTS/UC 76,237 - - - 76,237 319 Youth Lunch 59,736 - - - 59,736 320 Sr. Nutrition Title III 294,620 - 42,000 42,000 336,620 321 CFP Title X 120,790 - 35,000 35,000 155,790 324 BUSD Grant 216,959 - - - 216,959 325 Vector Control 495,519 - - - 495,519 326 Alameda County Grants 1,117,531 - - - 1,117,531 327 Senior Supportive Social Services 167,924 - - - 167,924 328 Family Care Support Program 176,687 - - - 176,687 329 CA Integrated Waste Management 10,474 - 12,359 12,359 22,833 331 Housing Mitigation 2,863,234 - - - 2,863,234 333 CALHOME 284,240 - 6,000 6,000 290,240 334 CSBG 302,058 - 95,174 95,174 397,231 336 One-Time Grant: No Cap Exp 14,158,993 1,326,997 1,688,120 3,015,117 17,174,110 339 MTC 890,038 - - - 890,038 340 FEMA 4,060,116 - - - 4,060,116 341 Alameda Cty Waste Mgt. 345,000 - - - 345,000 343 State Dept Conserv/Recylg 32,000 - - - 32,000 344 CalTRANS Grant 18,301 - - - 18,301 347 Shelter+Care HUD 7,338,025 - - - 7,338,025 348 Shelter+Care County 1,041,448 - - - 1,041,448 349 JAG Grant 60,759 - - - 60,759 350 Bioterrorism Grant 321,116 - 88,721 88,721 409,837 354 ARPA - Local Fiscal Recovery Fund 1,074,897 - - - 1,074,897 501 Capital Improvement Fund 36,735,818 - 240,000 240,000 36,975,818 502 Phone System Replacement 597,997 - - - 597,997 503 FUND$ Replacement 3,626,690 - - - 3,626,690 504 PEG-Public, Education & Government 267,210 - - - 267,210 506 Measure M - Street & Watershed Improvement 788,348 - - - 788,348 511 Measure T1 - Infra & Facil. 39,503,065 - 26,137 26,137 39,529,201 512 Measure O 63,166,516 - - - 63,166,516 514 Fire Admin Training Building 4,500,000 - 11,000,000 11,000,000 15,500,000 552 09 Measure FF Debt Service 1,330,513 - - - 1,330,513 553 2015 GORBS 2,043,981 - - - 2,043,981 554 2012 Lease Revenue Bonds BJPFA 499,849 - - - 499,849 555 2015 GORBS - 2002 G.O. Refunding Bonds 378,696 - - - 378,696 556 2015 GORBS (2007, Series A) 142,312 - - - 142,312 557 2015 GORBS (2008 Measure I) 479,416 - - - 479,416 558 2010 COP (Animal Shelter) 140,085 - - - 140,085 559 Measure M GO Street & Water Imps 1,639,250 - - - 1,639,250 560 Infrastucture & Facilities Measure T1 3,755,881 - - - 3,755,881 561 Measure O - Housing Bonds 4,600,873 - - - 4,600,873 601 Zero Waste 72,592,640 - - - 72,592,640 606 Marina - Coastal Conservancy 7,822,195 - - - 7,822,195 607 Marina - Department of Boating and Waterway 300 18,500 26,400 44,900 45,200 608 Marina Operation 9,022,292 - 334,400 334,400 9,356,692 611 Sewer 65,478,615 - - - 65,478,615 612 Private Sewer Lateral FD 80,849 - - - 80,849 616 Clean Storm Water 18,446,635 - - - 18,446,635 621 Permit Service Center 29,270,697 - - - 29,270,697 622 Unified Program (CUPA) 1,024,773 - - - 1,024,773 627 Off Street Parking 9,179,619 - - - 9,179,619 631 Parking Meter 10,571,538 - - - 10,571,538 636 Building Purchases and Management 3,953,673 - - - 3,953,673 671 Equipment Replacement 14,690,694 - - - 14,690,694 672 Equipment Maintenance 12,602,639 - - - 12,602,639 673 Building Maintenance Fund 6,017,798 - - - 6,017,798
674 Central Services 411,905 - - - 411,905 676 Workers Compensation 11,863,212 - - - 11,863,212 678 Public Liability 4,893,202 - - - 4,893,202 679 Catas
trophic Loss 8,614,781 - - - 8,614,781 680 IT Cost Allocation 27,834,137 - - - 27,834,137 706 Police Medical Trust Fund 48,281 - - - 48,281 721 Retiree Medical Trust Fund - BHA 2,970 - - - 2,970 722 Retiree Medical Trust Fund - IBEW 3,842 - - - 3,842 26AAO_Final.xlsx 4/20/2026 3:44 PM

EXHIBIT A
2nd AAO
FY 2026 Une ncumbered Other Total FY 2026
ERMA
Fund # Fund Revised #1 Carryovers Adjustments Amend. Revised #2

SUMMARY OF APPROPRIATIONS BY FUND
723 Retiree Medical Trust Fund - Local 1 26,083 - - - 26,083 724 Retiree Medical Trust Fund - Z1 Mgmt. 4,042 - - - 4,042 725 Retiree Medical Trust Fund - Z2 To Z6 18,402 - - - 18,402 726 Retiree Medical Trust Fund - Local 535 40,512 - - - 40,512 727 Retiree Medical Trust Fund - Local 790 44,160 - - - 44,160 731 Police EE Retiree Health Ast Plan 7,466 - - - 7,466 736 Fire Medical Trust Fund 46,448 - - - 46,448 762 Successor Agency - Savo DSF 57,120 - - - 57,120 776 Thousand Oaks Underground 100,096 - - - 100,096 777 Measure H - School Tax 500,002 - - - 500,002 778 Measure Q - CFD#1 Dis. Fire Protect Bond 110,499 - - - 110,499 779 Spl Tax Bds. CFD#1 ML-ROOS 778,589 - - - 778,589 780 Sick Leave Entitlement 322,955 - - - 322,955 781 Berkeley Tourism BID 2,209,676 - - - 2,209,676 782 Elmwood Business Improvement District 59,951 - - - 59,951 783 Solano Ave BID 40,445 - - - 40,445 784 Telegraph Avenue Bus. Imp. District 898,909 - - - 898,909 785 North Shattuck BID 349,282 - - - 349,282 786 Downtown Berkeley Prop & Improv. District 1,599,725 - - - 1,599,725 801 Rent Board 9,779,177 - - - 9,779,177 GROSS EXPENDITURE: 1,203,609,112 1,345,497 16,017,307 17,362,804 1,220,971,916

Dual Appropriations (95,327,591) - (943,028) (943,028) (96,270,619) Revolving & Internal Service Funds (79,142,085) - - - (79,142,085)

NET EXPENDITURE: 1,029,139,436 1,345,497 15,074,279 16,419,776 1,045,559,212 26AAO_Final.xlsx 4/20/2026 3:44 PM

Ordinance No. 8,011-N.S. Page 1 of 3
ORDINANCE NO. 8,011-N.S.

AMENDMENT TO BMC CHAPTER 2.100 TO SUBJECT PEPPER SPRAY TO THE

APPROVAL AND REPORTING REQUIREMENTS OF THE POLICE EQUIPMENT

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

Section 1. Findings
A. On May 11, 2021, the City Council adopted Ordinance No. 7,760–N.S., the Police Equipment and Community Safety Ordinance, which included pepper spray as controlled equipment subject to local oversight and reporting.

B. On January 27, 2026, the City Council adopted the first reading of Ordinance No. 8,001–N.S., rescinding and replacing Ordinance No. 7,760–N.S. with the Police Equipment Ordinance, and during that meeting removed pepper spray from the additional categories of police equipment subject to local approval and reporting requirements listed in Section 2.100.040(A)(2). The second reading of the Ordinance was adopted on February 10, 2026.

C. On March 10, 2026, the City Council adopted Resolution No. 72,159–N.S., rescinding the 1997 pepper spray incident notification requirement while directing that the City Manager present an amendment to BMC Chapter 2.100 to the City Council to subject pepper spray to the approval and reporting requirements of the Police Equipment Ordinance, including the administration of first aid.

Section 2. That Berkeley Municipal Code Section 2.100.040 is amended to read as follows:

2.100.040 Additional City of Berkeley Standards.
(A) The following police equipment shall also be subject to the same approval processes and reporting requirements defined in Chapter 12.8 and herein:
(1) All specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections
30510 and 30515 of the Penal Code.
(2) Batons 30 inches or longer in length.
(3) Pepper spray.
(B) In addition to reporting requirements of Government Code Section 7072, the annual report shall include:
(1) A summary of how the Police Equipment was used or deployed. "Deployment" shall mean any instance in which military equipment was pointed or aimed at an individual, or otherwise deployed, during an interaction. "Interaction" shall be defined as a situation in which an individual could reasonably believe the

Ordinance No. 8,011-N.S. Page 2 of 3
deployment could be an attempt to gain compliance. "Deployment" shall not include the transport or wearing of military equipment. (a) Batons 30 inches or longer in length shall only be deemed "deployed" when used for management or control of crowds.
(2) If applicable, a breakdown of where Controlled Equipment was used geographically by individual police area. For each police area, the Police Department shall report the number of days or instances in which Controlled Equipment was used and what percentage of those daily reported uses were authorized by warrant and by non-warrant forms of court authorization. (3) Whether first aid was administered after a use of pepper spray. (C) For purposes of this Ordinance, "Impact Statement" means a publicly released, written document that includes, at a minimum, all of the following:
(1) Description: A description of each type of Controlled Equipment, the quantity sought, its capabilities, expected lifespan, intended uses and effects, and how it works, including product descriptions from the manufacturer of the Controlled Equipment.
(2) Purpose: The specific purpose or purposes that each type of Controlled Equipment is intended to achieve.
(3) Fiscal Cost: The fiscal cost of each type of Controlled Equipment, including the initial costs of obtaining the equipment, the costs of each proposed use, the costs of potential adverse impacts, and the annual, ongoing costs of the equipment, including operating, training, transportation, storage, maintenance, and upgrade costs.
(4) Impact: An assessment specifically identifying any potential impacts that the use of Controlled Equipment might have on the welfare, safety, civil rights, and civil liberties of the public.
(5) Mitigations: Specific, affirmative technical and procedural measures that will be implemented to safeguard the public from such impacts.
(6) Alternatives: Alternative method or methods by which the Police Department can accomplish the purposes for which the Controlled Equipment is proposed to be used, and rationale for selection over alternative methods. (7) Third Party Dependence: Whether use or maintenance of the Controlled Equipment will require the engagement of third party service providers. (Ord. 8001- NS § 4, 2026)
Section 3. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.

Ordinance No. 8,011-N.S. Page 3 of 3
At a regular meeting of the Council of the City of Berkeley held on May 19, 2026, this Ordinance was passed to print and ordered published by posting by the following vote:

Ayes: Bartlett, Blackaby, Humbert, Kesarwani, Lunaparra, O’Keefe, Taplin, Tregub, and Ishii.

Noes: None.

Absent: None.

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

CONSENT CALENDAR
June 9, 2026
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Economic Development Manager Subject: Assessments: Telegraph Property Based Business Improvement District

RECOMMENDATION
Adopt a Resolution approving the Telegraph Property Based Business Improvement District (TBID) Annual Report of Fiscal Year (FY) 2026 and proposed FY 2027 budget and declaring Council’s intention to levy an annual assessment for the TBID for FY 2027.

SUMMARY
The Telegraph Property Based Business Improvement District (TBID or “the District”) provides cleaning, hospitality and marketing services for Berkeley’s Telegraph Avenue commercial district. In May of 2017 the TBID was geographically expanded and renewed for a ten-year period, authorizing operations through December 31, 2027, and designating the Telegraph Property and Business Management Corporation (TPBMC) as the District’s Owners’ Association. Annually, Council must approve the TBID’s annual report and proposed budget and declare its intention to levy an annual assessment.

The City of Berkeley owns one parcel (the Telegraph Channing Parking Garage at 2431 Channing Way) within the boundaries of the TBID and is required by state law to pay the associated assessments. The assessment payment will be $55,266 FY 2027; in addition, the City will pay the General Benefit portion of the TBID costs, or roughly $30,711. The City already makes an annual grant to TBID, through the Public Commons for Everyone Initiative (PCEI), which exceeds this general benefit amount, so there will be no new fiscal impacts related to funding the general benefit.

FISCAL IMPACTS OF RECOMMENDATION
Assessments levied in the Telegraph Property Based Business Improvement District (TBID or “the District”) support a package of improvements and activities approved by the property owners and the City Council when the District was renewed for a ten-year period on May 2, 2017 (Resolution No. 67,940-N.S.). Assessment funds are collected by the Alameda County Assessor’s Office, relayed to the City of Berkeley, and disbursed through a contract with the Telegraph Property and Business Management Corporation (TPBMC), a private owners’ association that was established to implement

Assessments: Telegraph Property Based Business Improvement District CONSENT CALENDAR June 9, 2026

the Management District Plan. TPBMC has an active contract with the City, not to exceed $7,410,024 of TBID revenues, to implement the Telegraph Management District Plan for the period January 1, 2018 to December 31, 2027 (Contract No. 10835).

Collections from private parcel assessments (less the county’s collection fee of 1.7%) are projected and budgeted at approximately $667,525 in FY 2027. Collections from tax exempt parcels (owned by the Regents of the University of California and the City of Berkeley) are projected and budgeted at approximately $199,169 in FY 2027. Annual and accrued private parcel assessment funds are deposited into Telegraph BID Fund 784-33-324-342-0000-000-000-412110 and expended from fund 784-21-208-251-0000- 000-446-612990. An annual increase of up to 3% to account for inflation is allowed by the Management District Plan and must be approved by a majority of the TPBMC’s Board of Directors. On April 14, 2026 the TPBMC board met and voted to raise assessments by 3% from the FY26 level due to a variety of factors including compensating for the modest increase in previous years. Project funds not spent in any given fiscal year are carried over into future years. TPBMC collects assessments directly from the University of California with no involvement from the City.

Under the provisions of Proposition 218 in the California Constitution, government agencies must pay assessments on properties they own in property-based BIDs, just like private property owners, unless they receive no benefit. Payment is collected from private property owners through property tax bills. Payments are due from non-property tax-paying entities concurrently. The City’s assessment payment in FY 2027 would be $55,266 (increased by $1,610) from the FY2026 assessment of $53,656). The City’s assessment is paid annually directly to the TPBMC through the Off-Street Parking Fund (627-54-622-665-3002-000-474-639990).

The City also pays for the “general benefit” portion of the TBID budget. “General benefits” represent that small portion of the overall benefits generated by a property- based business improvement district which are found to accrue to the general public who are not assessed and do not participate in the economic or social activities of the district. The engineer’s report commissioned for the reestablishment of the TBID in 2017 calculated that the baseline general benefit for the district would be approximately $29,816 annually (adjusted for yearly assessment increases, if any). The City already makes annual grants to the TBID which far exceed this amount, so there will be no new fiscal impacts related to funding the general benefit.

By financing improvements, maintenance and welcoming activities for the City’s campus-adjacent business district, the TBID indirectly enhances sales tax, business license tax and other business-related City revenue sources.

CURRENT SITUATION AND ITS EFFECTS
State legislation that authorizes the formation of property-based business improvement districts (BID) (California Streets and Highways Code, Sections 36600 et. seq.) requires that the BID governing body submit an Annual Report on operations and a budget

Assessments: Telegraph Property Based Business Improvement District CONSENT CALENDAR June 9, 2026

proposal to the City Council each year. The City Council may approve the report with a Resolution to reauthorize the annual assessments.

The Board of Directors of the Telegraph Property and Business Management Corporation (TPBMC), the non-profit that manages the TBID, met in a publicly noticed meeting on April 14, 2026 to review and approve the attached FY26 Annual Report for the TBID and Budget for FY 2027 (Exhibit A). The report includes a budget for improvements and activities for FY 2027 and an estimated cost for providing them. The report also recommends that the assessments for FY 2027 be levied on the same basis and method, and within the same boundaries, as they were levied for FY 2026, with a 3% increase (Exhibit B: Telegraph BID FY 2027 Assessment Roll). Council can adopt the recommended Resolution which will confirm the TBID assessment and thus enable continuous BID operations for another year.

BACKGROUND
The TBID is a benefit assessment district that provides cleaning, hospitality and marketing services for Berkeley’s Telegraph Avenue commercial district. The TBID was created in 1998 pursuant to California’s “Property and Business Improvement District Law of 1994” to provide needed improvements and activities to assessed property owners. Since the initial five-year term, the TBID has been renewed for a second five-year term in 2003, a ten-year term in 2008, and underwent an expansion and ten-year renewal in 2017. As such, the TBID is authorized through December 2027 unless action is taken to disestablish it.

In FY 2027, the District has budgeted $687,068 for the provision of “Clean, Safe, and Beautification” services. Communications and events, marketing, and related management and administration costs make up the balance of the expenses for a total of $341,466. The FY27 revenue of the TBID is budgeted for approximately $1,030,467 inclusive of taxable and non-taxable parcels, grants, maintenance contracts, and private donations, and net of the County 1.7% collection fee on private parcels (Exhibit A).

The Management District Plan that was adopted by Council in 2017 as part of the reestablishment of the District provides a framework and budget for the TBID’s activities, assessment method, and illustrates the TBID boundary and benefit zones.

The Management District Plan provides for services above and beyond those provided by the City of Berkeley. Under “The Right to Vote on Taxes Act” (also known as Proposition 218) all public agencies are required to pay the same assessments for public property that apply to private property. The City owns one property within the district, the Telegraph Channing parking garage at 2431 Channing Way. The FY27 assessment for that property will be $55,266 a $1,610 increase (approximately 3%) from the FY2026 assessment. The City’s assessment is paid annually directly to the TPBMC through the Off-Street Parking Fund (627-54-622-665-3002-000-474-639990).

Assessments: Telegraph Property Based Business Improvement District CONSENT CALENDAR June 9, 2026

In FY 2027, the TBID will continue its ongoing “clean safe and beautification” activities, including ambassador services, graffiti removal, manual sidewalk cleaning and sidewalk pressure washing, gutter and storm drain cleaning, street sweeping, litter removal, enhanced landscaping and landscape maintenance, and small infrastructure improvements including place-making activities, seasonal promotions, and other special projects. The TBID will also continue its program of communications and community development activities to provide a unified voice to represent the best interests of the assessed parcels and fulfill a slate of stakeholder communications that support the District’s agenda to attract visitors. The TBID will also continue to liaison and coordinate with other business district organizations, including Visit Berkeley, the Chamber, and the Berkeley Business District Network (BBDN) members to promote local business and commercial development opportunities in Berkeley.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
By maintaining and enhancing the district, the TBID creates shopping opportunities for residents and visitors while encouraging alternative forms of transportation. Because the District is well served by public transportation and biking infrastructure, these services support environmental sustainability goals of encouraging alternative transportation choices.

RATIONALE FOR RECOMMENDATION
The Property and Business Improvement District Law of 1994 requires that the BID Board prepare an Annual Report for each fiscal year in which assessments are to be levied. Council action is required to approve the BID’s Annual Report and declare its intent to levy assessments. This private/public partnership will continue to provide significant resources for Telegraph area revitalization, which has had a positive effect on the physical and economic health of the district.

ALTERNATIVE ACTIONS CONSIDERED
The Board of the TBID considered a range between 1.5% and 3% increase in assessment rates but instead decided to opt for a 3% increase (the maximum allowable is 3%) to its existing assessment rate, in order to make adequate investments in expanded capacity of the Ambassador Program, deliver robust events, and increase marketing efforts to promote district businesses.

CONTACT PERSON
Vincent McCoy, Office of Economic Development, (510) 981-7403 Attachments:
1: Resolution Approving the Annual Report and Levy of Assessments for the Telegraph Property and Business Improvement District
Exhibit A: Telegraph Property and Business Improvement District: Annual Report 2026 and Budget FY 2027
Exhibit B: Telegraph Property and Business Improvement District FY2027 Assessments

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

APPROVING THE ANNUAL REPORT OF THE TELEGRAPH BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2026 AND DECLARING INTENT TO LEVY ASSESSMENTS FOR FISCAL YEAR 2027
WHEREAS, the Property and Business Improvement District Law of 1994 (California Streets and Highways Code section 36600 et Seq., hereafter the “Act”) authorizes cities to fund property related improvements, maintenance and activities through the levy of assessments upon the real property that benefits from those assessments; and WHEREAS, after ten years of successful operation, on May 2, 2017 the Berkeley City Council reestablished the Telegraph Business Improvement District (hereafter, “the District”) for an additional ten-year period by Resolution No. 67,940-N.S.; and WHEREAS, on April 14, 2026 the Board of Directors of the Telegraph BID adopted the Annual Report to the City of Berkeley FY 2026 (hereafter “Annual Report”) that describes the operations of the District in FY 2026, recommends services for FY 2027 and proposes a budget for FY 2027 (Exhibit A); and
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that pursuant to provisions of Section 36600 et. seq. of the California Streets and Highways Code, the City Council approves the Annual Report (Exhibit A) and declares its intent to levy special assessments on property within the boundaries of the District for FY 2027.

BE IT FURTHER RESOLVED that that the boundaries of the District and the method and basis for the assessment remain the same as those set forth and approved in the Management District Plan that was adopted on May 2, 2017, when Council renewed the Telegraph BID through Resolution No. 67,940-N.S.

BE IT FURTHER RESOLVED that the improvements and activities to be provided are those described in the Management District Plan and the Annual Report.

BE IT FURTHER RESOLVED that the cost of providing the improvements and activities is as described in the budget that accompanies the Annual Report.

BE IT FURTHER RESOLVED that to finance these improvements and activities, the Annual Report and Budget includes a 3% increase to the assessment rate for FY 2027. Following adoption of this resolution, the City Council may confirm the Annual Report and levy assessments for FY2027 and confirm disbursement of TBID assessment revenue to the Telegraph Property and Business Management Corporation provided for in Contract No.10835.

Exhibits:

A: TBID Annual Report for FY 2026 and Proposed Budget for FY 2027 B: TBID Assessment Roll FY 2027

EXHIBIT A – FY26 Annual Report & FY27 Budget of the Telegraph Business Improvement District

The Telegraph Property and Business Improvement District (TBID), managed by the Telegraph Property and Business Management Corporation (TPBMC), was renewed for ten years by an affirmative vote of the property owners of the Telegraph commercial district by mail-in ballot in the spring of 2017. This vote was affirmed without protest by the City Council on May 2, 2017.

This report is for the fiscal year (FY) starting July 1, 2025, and ending June 30, 2026 (FY26).

In accordance with 36650 (b) of the Streets and Highway Code for the State of California, the TPBMC affirms the following:

1. The TPBMC proposes no changes in TBID boundaries for the 2026-27 fiscal year (abbreviated “FY” and known as FY27).

2. The TPBMC will continue to provide the same services as have been outlined in the Management District Plan of September 21, 2016. These services include street and sidewalk cleaning and beautification, marketing and promotions, decoration, and maintenance of a district office.

3. The budget for FY 2027, approved by the TPBMC Board of Directors on April 14, 2026, provides for $1,028,534 in expenditures, $1,030,467 in revenues, and an estimated $1,933 of net revenue.

4. On April 14, 2026, the TPBMC Board of Directors approved a 3% assessment rate increase for FY 2027, as allowed in the Management District Plan.

5. In addition to assessments levied on real property, including the City-owned Telegraph Channing Garage, FY 2027 income will be derived from the following sources: (1) an annual contribution from University of California of $148,076; (2) a maintenance contract for the 24/7 public restroom from the City of Berkeley of $100,000 (3) PCEI (Public Commons for Everyone Initiative) grant funds from the City of Berkeley of $49,139; (4) the fiscal sponsorship fee of $1,500 from the Solano Business Improvement District; and other miscellaneous income.

EXHIBIT A – FY26 Annual Report & FY27 Budget of the Telegraph Business Improvement District

FY 2027 Budget of the Telegraph Property and Business Improvement District

Revenue
Tax Assessments TBID Members $671,287
Tax Assessments -COB Property $55,266
Tax Assessment - UC Berkeley $148,076
City of Berkeley - Maintenance Contract $100,000
City of Berkeley - PCEI Grant $49,139
City of Berkeley Events Contribution $4,500
Solano BID Fiscal Sponsorship $1,500
Misc. Income $700
Total Revenue $1,030,467

Expenses
Administration $274,166
Maintenance $687068
Marketing $26,300
Events $41,000
Total Expenses $1,028,534

The TBID maintains a Capital Improvements Fund used for the purchase, maintenance, and replacement of fixtures, art, and special projects in the public realm. Anticipated projects that will be supported by the fund in FY27 include peace symbol bike rack installations, public art restoration, a new gateway mural on Bancroft Way, and sidewalk planter improvements.

FY26 Accomplishments and FY27 Planned Activities
In 2025, the TBID began developing a new Strategic Plan for the district, working with a leading consulting firm in the place-management field. The initiative includes a comprehensive situational assessment and SWOT analysis of the district, followed by a planning and implementation process. The plan will guide the organization's strategic focus with renewed vision, goals, objectives, tactics, and measurable outcomes.

The following is a summary of the activities that the TBID undertook in Fiscal Year 2026 to further their strategic goals, and the planned activities for Fiscal Year 2027:

1. Improve the pedestrian environment
● Provided critical daily services for commercial and public waste bins , including litter and dumping clean up, collecting overflow, mitigating improper disposal, and rearranging bins that are knocked over or obstructing sidewalks and travel lanes. ● Worked with businesses and property owners to address visual blight and cleanliness issues from trash bins crowding the sidewalks.

EXHIBIT A – FY26 Annual Report & FY27 Budget of the Telegraph Business Improvement District

● Enhanced merchant and visitor safety with dedicated prevention efforts and active incident response by Telegraph Ambassadors
● Maintained the annual holiday pole light decorations and year -round banner program.

Decorated street trees along Telegraph with holiday lights from Nov. through January.

Investing in new district- themed banners and pole light decorations for the 2026 holiday season.
● Worked with artists to address vandalism and restore additional public artworks. Partnering on new mural opportunities , including the Bancroft Gateway Mural project with the University of California.
● Coordinated with the City and developers to address accessibility and operational issues related to construction activities.
● Provided advice and guidance to community members navigating quality of life, crime , and public safety issues. Continuing to facilitate routine coordination between Telegraph Ambassadors and social and public safety services from the City and University.

2. Support businesses, non-profits, and residents within the District ● Facilitated the Bite of Berkeley program in partnership with UC Berkeley New Student Services. The program welcomed the class of 2029 as part of Golden Bear Orientation. The unique partnership gives incoming students a district tour and sponsors 7,500 meals at 18 participating restaurants.
● Provided customized social media support/consultation to merchants. Audited social media presence for business accounts, provided tutorials for tips and tricks to boost engagement, and contracted content creators for collaborations for businesses throughout the district. ● Built rapport with owners and managers from legacy businesses to newly opened shops.

Facilitated business development opportunities from promotional partnerships to merchant initiatives.
● Maintained direct lines of communication with merchants and property owners to navigate safety concerns, connect with public services, and respond to concerns on a range of issues from permits, utility/infrastructure projects, maintenance requests, access constraints, and more.
● Provided routine assistance for the Village of Love Sacred Rest Drop-In Center through operational support, funding advocacy, and service coordination. ● Facilitated engagement between community members and the Berkeley Police Department to assist in incident response, problem solving, and crime prevention.

EXHIBIT A – FY26 Annual Report & FY27 Budget of the Telegraph Business Improvement District

3. Make the District more accessible
● Championed critical investments in the Telegraph-Channing Garage to improve the visitor experience and coordinated with the City to mitigate impacts during construction. ● Sustained operations of the Telegraph-Channing 24/7 Public Restroom. Facilitated routine maintenance and daily janitorial services for the facility. ● Maintained attractive bike parking with 46 custom racks through the Peace Symbol bike rack program. Working with City staff and developers of new construction projects to add several new bike racks in the coming year.
● Worked to advance the Telegraph Plaza vision for the Dwight Triangle traffic median.

Engaging with agency partners to complete the feasibility study of redirecting vehicle traffic.

The project seeks to activate the area with the development of a public plaza that will serve as a core attraction in the district.
● Facilitated design feedback for the Telegraph Multimodal Corridor Project. Successfully advocated for the approval of improved pedestrian crossings, upgraded bicycle infrastructure, and bus transit enhancements, along with adequate employee and customer parking.

4. Improve the Telegraph brand through marketing, events, and promotions ● Grew the Second Sundays summer event series into four sponsored events in 2025 featuring 28 live music performers located at must-stop bus stops in the district, as well as free sponsored fun activities. Featured in-store specials and outdoor activities directed visitors to local businesses and created a vibrant, inviting atmosphere. We will be hosting four events in the summer of 2026 (FY27).
● Utilized and grew the Instagram account @TelegraphBerkeley as the core marketing platform for the district. We more than doubled our monthly views to 200K and peaked at 925K views in April 2026. The account consistently generates earned media and attracts content creators, boosting engagement and providing daily promotional support for businesses in the district.
● Managed a vibrant content creation program working with district partners and digital creators. Produced a year-round stream of original content that highlighted the district’s businesses, attractions, events, and culture. The program generates substantial engagement and visibility for featured businesses and reaches a majority non-student-aged audience.
● Organized and sponsored the 6th annual Telegraph Boba Day celebration: an established tradition that has attracted boba tea enthusiasts from across the Bay Area. Coordinated in-

EXHIBIT A – FY26 Annual Report & FY27 Budget of the Telegraph Business Improvement District

store promotions with 17 boba shops and participating businesses, which resulted in robust visitor engagement. The recurring event has established Telegraph Berkeley as the Boba Capital of the Bay Area and has significant district visibility and marketing reach. ● Invested in print and online ads, including Berkeleyside, FunCheap, Ike Smart City Kiosk, and routine sponsored social media content. Sponsoring visitor outreach content in the upcoming Visit Berkeley 2027-28 Destination Guide.
● Maintained and utilized the Telegraph Berkeley website for visitor outreach and public information. Planned upgrades will enhance the website's outreach and public information functions to attract visitors and keep stakeholders informed.

5. Better serve District stakeholders as a convener and advocate on issues ● Conducted routine engagement with local officials to generate support for district priorities.

Advocacy supported funding for district programs and infrastructure, addressed public realm maintenance issues, improved pedestrian safety, and influenced new city policies. ● Promoted stakeholder awareness and engagement around public policy issues and local initiatives impacting the district. Provided routine representation at public meetings, elevating the district’s role and stakeholder perspectives. Participation in local initiatives:
i. Berkeley CareBridge Local Advisory Committee, Berkeley Night Council, UC Climate Action Plan CAG, Berkeley Event Producers Group, Vision Zero Coordinating Committee ● Represented the district in the local business community. Maintained active engagement as a member of the Berkeley Alliance of Business Organizations, Berkeley Business Development Network, and routine collaboration with the Downtown Berkeley Association, Berkeley Chamber, and Visit Berkeley.
● Participated in the International Downtown Association 2025 Annual Conference. Engaged with other place-management industry professionals on current affairs and topics, including marketing and communications, district branding, public plazas, and nightlife. ● Engaged with developers of new housing and mixed-use projects in the district to provide stakeholder feedback and advocacy for moving the projects forward.

EXHIBIT A – FY26 Annual Report & FY27 Budget of the Telegraph Business Improvement District

Telegraph Clean & Safe Ambassador Program
The single most significant element of the TBID's ongoing work is the Clean & Safe Ambassador Program, which is provided through a contract with Block by Block. In keeping with the Management District Plan, the program provides cleaning and hospitality services year-round, seven days a week, 240 hours per week. The program comprises roughly 65% of the TBID’s annual budget. The TBID is pursuing opportunities to expand the program through direct service agreements and investments in capacity building.

Hospitality & Public Safety
The program plays a central role in supporting social service delivery and providing crisis response. By applying dedicated outreach and engagement strategies, the Telegraph Ambassadors have significantly improved the quality of life and generated a greater sense of safety.

Ambassadors provide active support and a highly visible presence during major events. The team monitors and maintains high-traffic corridors to promote a positive visitor experience.

They field questions and respond to incidents, creating a more welcoming environment.

The program works collaboratively with UC Berkeley’s Homeless Outreach Coordinator and City staff to address the needs of unhoused community members in the District. The Ambassadors are trained in de-escalation and conflict resolution strategies and respond to help unhoused community members, businesses, students, and local agencies to peacefully navigate conflicts and disruptive behaviors (often the result of substance abuse or a mental health crisis).

Ambassadors are trained in and positioned to employ Mental Health First Aid, NARCAN, and CPR. Coupled with their learned experience, the Ambassadors provide a unique and highly responsive level of support for individuals in crisis. Finally, the organization facilitates weekly coordination/case management meetings with local service agency staff and law enforcement, resulting in a more thoughtful and humane approach to problems involving the unhoused community.

Cleaning & Maintenance
In FY25-26, the Ambassador team exceeded cleaning and maintenance service-level goals with their routine services shown in the table below. Additional accomplishments include:
● Consistent efforts contributed to significant and sustained decreases in the instances of graffiti (31%), stickers/handbills (27%), and pet/human waste (25%) compared to the prior year.
● Provided regular care and maintenance of dozens of hanging basket planters and sidewalk planters.

EXHIBIT A – FY26 Annual Report & FY27 Budget of the Telegraph Business Improvement District

● Actively monitored sidewalks and public spaces for hazards, damaged infrastructure, and maintenance issues. Reported on and completed maintenance requests with several public agencies.
● Addressed dozens of pedestrian safety hazards from major debris, vegetation, and other obstructions.
● Performed sidewalk weed abatement and landscape maintenance district-wide through the Spring and early Summer.
● Refreshed paint on dozens of public fixtures, utility boxes, and light poles.

311
Requests
Graffiti
Tags
Removed
Handbills
Removed
Hazardous
Waste
Clean-ups
Pressure
Washing
Hours
Trashcans
Leveled
Lbs. of
Trash
Removed
264 3,171 7,749 1,468 655 1,110 122,335

Exhibit B:

Telegraph Business Improvment Distritct (TBID) FY2027 Assessments

APN OWNER NAME STREET
NUMBER STREET NAME UNIT
# Tax Exempt Utility Private  Parcel
055 188600300 2312 ELLSWORTH LLC                                 2312 ELLSWORTH  ST 1,057.80$ 055 187800300 2340 TELEGRAPH PROPERTY LLC                        2328 TELEGRAPH  AVE 12,428.94$ 055 187601200 2369 TELEGRAPH LLC                                 2369 TELEGRAPH  AVE 1,887.30$ 055 188300500 2414 DANA ST L P                                   2414 DANA  ST 930.12$ 055 186801100 2415COLLEGE LLC                                    2415 COLLEGE  AVE 3,681.88$ 055 187800701 2425 DURANT AVENUE LLC                             2425 DURANT  AVE 1,869.16$ 055 188101800 2442 HASTE STREET LLC                              2442 HASTE  ST 2,262.76$ 055 184600101 2501 BENVENUE LLC                                  2501 BENVENUE  AVE 3,957.66$ 055 187504300 2503 HASTE STREET OWNER LLC                        2429 TELEGRAPH  AVE 3,148.80$ 055 187504400 2503 HASTE STREET OWNER LLC                        2509 HASTE  ST 787.20$ 055 187504500 2503 HASTE STREET OWNER LLC                        2503 HASTE  ST 17,741.52$ 055 187503001 2506 HASTE STREET PARTNERS LLC                     2506 HASTE  ST 2,153.76$ 055 187701100 2509 DURANT LLC                                    2347 TELEGRAPH  AVE 5,039.82$ 055 187701400 2522 BANCROFT WAY LLC                              2522 BANCROFT  WAY 1,661.32$ 055 187602101 2538 DURANT LP                                     2538 DURANT  AVE 4,521.08$ 055 183902000 2539 TELEGRAPH LLC                                 2539 TELEGRAPH  AVE 15,235.20$ 055 183901901 2565 2589 TELEGRAPH BLAKE LLC                      2587 TELEGRAPH  AVE 8,280.52$ 055 183700300 2588 TELEGRAPH AVENUE LLC                          2590 TELEGRAPH  AVE 4,086.74$ 055 183603100 2616 TELEGRAPH AVENUE LLC                          2616 TELEGRAPH  AVE 2,870.34$ 055 184600300 2644 BERKELEY LLC                                  2644 DWIGHT  WAY 3,051.66$ 055 183500901 2650 TELEGRAPH LP                                  2650 TELEGRAPH  AVE 5,799.58$ 055 187000800 2701 DURANT LP                                     2701 DURANT  AVE 2,663.98$ 055 188600100 820 MACARTHUR LLC                                  2300 ELLSWORTH  ST 1,568.44$ 055 183802300 A & A BERKELEY PARTNERS LLC                        2501 DANA  ST 2 184.10$ 055 187602200 ALLEN HYE K & KIM JOE TR                           2511 CHANNING  WAY 2,239.92$ 055 186901100 ALPHA BETA HALL                                    2345 COLLEGE  AVE 1,920.66$ 055 187100103 AMI LLC &                                          2680 BANCROFT  WAY 3,300.42$ 055 187100203 AMI LLC &                                          2310 COLLEGE  AVE 1,673.24$ 055 187102000 AMI LLC &                                          2680 BANCROFT  WAY 887.78$ 055 183503300 ANANTHARAM VENKATACHALAM                           2628 TELEGRAPH  AVE 502 154.12$ 055 188200200 ANDREONI THOMAS L & STANTON KAREN J TRS            2440 DANA  ST 932.36$ 055 183600802 AVENUE T PROPERTY LLC                              2614 TELEGRAPH  AVE 918.20$ 055 188303000 AYSOY SUKRAN TR                                    2406 DANA  ST A 187.16$ 055 187800200 AYYAD FUAD & MUNA I                                2312 TELEGRAPH  AVE 3,451.76$ 055 187000900 BALAJI EQUITY MANAGEMENT LLC                       2319 COLLEGE  AVE 1,695.74$ 055 186801300 BEAR HAVEN LLC                                     2409 COLLEGE  AVE 2,600.34$ 055 188401500 BERKELEY ARCHITECTURAL HERITAGE ASSOCIATION        2318 DURANT  AVE 1,691.10$ 055 188500800 BERKELEY CANTERBURY FOUNDATION INC                 2334 BANCROFT  WAY 1,616.40$ 055 188500201 BERKELEY CITY CLUB                                 2315 DURANT  AVE 1,614.14$ 055 188500202 BERKELEY CITY CLUB                                 2315 DURANT  AVE 9,610.44$ 055 187601302 BERKELEY MULTIFAMILY I PROPERTY OWNER LLC          2500 DURANT  AVE 11,631.50$ 055 187701300 BERKELEY MULTIFAMILY I PROPERTY OWNER LLC          2301 TELEGRAPH  AVE 13,320.18$ 055 183801300 BERKELEY MULTIFAMILY II PROPERTY OWNER LLC         2410 DWIGHT  WAY 1,514.98$ 055 187301400 BERKELEY MULTIFAMILY II PROPERTY OWNER LLC         2605 HASTE  ST 3,208.94$ 055 184302603 BERKELEY SCHOOL THEOLOGY                           2511 HILLEGASS  AVE 7,319.88$ 055 183500700 BERKELEY TELEGRAPH LLC & 2640 TELEGRAPH AVE LLC    2640 TELEGRAPH  AVE 1,310.18$ 055 183502100 BOLT DIANNA                                        2628 TELEGRAPH  AVE 203 154.12$ 055 187001000 BREIT SH BERKELEY LLC                              2700 BANCROFT  WAY 6,454.68$ 055 184002401 CALIF ANN CONF METH CH                             2655 TELEGRAPH  AVE 9,184.68$ 055 187900400 CAMOU TELEGRAPH AVENUE PROPERTIES LLC              2386 TELEGRAPH  AVE 1,117.48$ 055 183502800 CHEN ZIXIN                                         2628 TELEGRAPH  AVE 402 154.12$ 055 188303200 CHIEN CHARLES & SHERI I                            2406 DANA  ST C 187.16$ 055 183802200 CHIN JACKSON & FAYE TRS                            2501 DANA  ST 1 176.50$ 055 184200500 CHIU EDMUND S & BONNETTE S TRS                     2532 DWIGHT  WAY 915.46$ 055 183900400 CHU FAMILY LLC                                     2517 TELEGRAPH  AVE 6,791.78$ 055 183502400 CHUANG PATRICK C & HSIUNG YINGSHENG                2628 TELEGRAPH  AVE 303 154.12$ 055 188200100 CHURCH IN BERKELEY                                 2430 DANA  ST  $       2,266.72 055 187900601 CITY OF BERKELEY                                   2431 CHANNING  WAY  $    55,265.98 055 183901502 CLARA&SONIA LLC                                    2529 TELEGRAPH  AVE 2,919.36$ 055 188300100 COLLIER PAMELA & BATTI GREG TRS                    2400 DANA  ST 787.78$ 055 187700100 CORE BERKELEY BANCROFT LLC                         2590 BANCROFT  WAY 18,132.40$

Exhibit B:

Telegraph Business Improvment Distritct (TBID) FY2027 Assessments

APN OWNER NAME STREET
NUMBER STREET NAME UNIT
# Tax Exempt Utility Private  Parcel
055 188000400 CREATIVE PROPERTY TELEGRAPH LLC                    2426 TELEGRAPH  AVE 1,109.78$ 055 187900500 DABEL GREGORY J & KAREN L TRS & DABEL JEREMY  ETAL 2392 TELEGRAPH  AVE 1,275.92$ 055 183802900 DAI GEORGE S. & LUNA Y TRS & DAI CORNELIA          2501 DANA  ST 8 220.20$ 055 184005200 DELENGOCKY TAYSON                                  2615 TELEGRAPH  AVE 404 147.36$ 055 187100300 DELTA DEUTERON BLDG ASN                            2647 DURANT  AVE 2,354.26$ 055 186701300 DISANO JOSEPH R TR & DISANO JOSEPH R TR            2435 COLLEGE  AVE 1,272.52$ 055 184200100 DONG PING                                          2503 REGENT  ST 653.52$ 055 184200401 DOTP 2530 LLC                                      2526 DWIGHT  WAY 2,360.66$ 055 187800100 DOWNEY HUGH J IV TR & ROUSH VIRGINIA B TR          2310 TELEGRAPH  AVE 5,064.66$ 055 187700200 DOYLE ELAINE M TR                                  2310 BOWDITCH  ST 1,015.30$ 055 183502300 DU LIMING                                          2628 TELEGRAPH  AVE 302 154.12$ 055 187700900 DURANT PLACE                                       2517 DURANT  AVE 3,703.32$ 055 183801600 DWIGHT BLAKE APARTMENTS                            2420 DWIGHT  WAY 1,135.10$ 055 184004300 ELA PROPERTIES LLC                                 2615 TELEGRAPH  AVE 302 141.42$ 055 188000501 ENT KENNETH E & GREGORY W TRS                      2441  HASTE ST  11,548.58$ 055 188000700 ENT KENNETH E & GREGORY W TRS                      2435  HASTE ST  1,115.14$ 055 183503200 EPSTEIN LYNN & BASSEIN SUSAN                       2628  TELEGRAPH AVE  501 154.12$ 055 187101300 ESLAMI AHMAD A                                     2311 BOWDITCH ST 402.90$ 055 183802800 FENG SAMUEL & HUANG HSINYI C TRS                   2501 DANA  ST 7 210.26$ 055 184600400 FERGUSON JAMES I & ARLENE M TRS                    2646 DWIGHT  WAY 1,106.70$ 055 187401200 FIRST CHURCH CHRIST SCIENTIST                      2619 DWIGHT  WAY 2,034.82$ 055 188001100 FIRST CHURCH FOUNDATION                            2423 HASTE  ST 680.70$ 055 188400100 FIRST CONG CH OF BERK                              2345 CHANNING  WAY 5,183.68$ 055 188401600 FIRST CONGREGATIONAL CHURCH OF BERKELEY            2326 DURANT  AVE 807.08$ 055 188401700 FIRST CONGREGATIONAL CHURCH OF BERKELEY            2330 DURANT  AVE 1,138.60$ 055 188401800 FIRST CONGREGATIONAL CHURCH OF BERKELEY            2334 DURANT  AVE 301.58$ 055 188001502 FIRST PRESBYTERIAN CHURCH OF BERKELEY              2407 DANA  ST 10,789.74$ 055 183500402 FITZER TIMOTHY A                                   2636 TELEGRAPH  AVE 1,606.56$ 055 187800400 FORTUNEWORLD INC                                   2439 DURANT  AVE 3,993.38$ 055 187601100 FUENTES TOMAS R TR                                 2375 TELEGRAPH  AVE 7,801.48$ 055 183503000 GAMPEL IRINA & YURY                                2628 TELEGRAPH  AVE 404 154.12$ 055 187502500 GEE JEW Y TR                                       2509 DWIGHT  WAY 1,561.46$ 055 187502900 GILLMAN SCOTT C TR & GILLMAN LINDA ETAL            2455 TELEGRAPH  AVE 3,769.62$ 055 184003200 GIORDANO ARLENE A                                  2435 CARLETON  ST 1,433.10$ 055 183800201 GLENN BUILDING                                     2430 DWIGHT  WAY 13,452.00$ 055 184003800 GOFF EDWARD TR                                     2615 TELEGRAPH  AVE 204 97.16$ 055 183502000 GOLD BONNIE & PAYNE DAVID E TRS                    2628 TELEGRAPH  AVE 202 154.12$ 055 187701003 GOODHUE NEIL B & DIANE C TRS                       2513 DURANT  AVE 1,298.76$ 055 187701006 GOODHUE NEIL B & DIANE C TRS                       2515‐BD U R A N T  AVE 2,010.22$ 055 183900102 GORDON JOHN K & MITCHELL JANIS L TRS & GORDON ETAL 2502 DWIGHT  WAY 2,869.68$ 055 183900303 GORDON JOHN K & MITCHELL JANIS L TRS & GORDON ETAL 2508 REGENT  ST 2,078.12$ 055 183901601 GORDON JOHN K & MITCHELL JANIS L TRS & GORDON ETAL 2513 TELEGRAPH  AVE 2,377.26$ 055 188100200 GORDON JOHN K & MITCHELL JANIS L TRS & RIPSTE ETAL 2470 TELEGRAPH  AVE 4,885.86$ 055 187700600 GROWERS PROPERTIES NO 52                           2533 DURANT  AVE 5,116.96$ 055 188300200 GUERARD JACQUES H TR                               2402 DANA  ST 749.00$ 055 184600500 HAKAM ALAEDDIN & FOUDEH SAEED TR                   2504 COLLEGE  AVE 921.78$ 055 184004100 HAROUN ANSAR M & NASRA TRS                         2615 TELEGRAPH  AVE 207 134.28$ 055 188200300 HASHEMI HOMAYOUN & GOVASHIRI HOMA TRS              2446 DANA  ST 958.24$ 055 183802600 HOANG VY T & LYNH T                                2501 DANA  ST 5 227.16$ 055 188300600 HON HENRY D & SYLVIA TRS                           2418 DANA  ST ‐$ 055 183802400 HONG JAMIE J & JIN ETAL                            2501 DANA  ST 3 180.86$ 055 184003600 HSIA SAMSON & ALICIA TRS                           2615 TELEGRAPH  AVE 202 141.42$ 055 184004700 HU HANG L & TYNG J                                 2615 TELEGRAPH  AVE 306 137.62$ 055 184004800 HU TYNG J & HANG L                                 2615 TELEGRAPH  AVE 307 134.28$ 055 183501900 HUANG ISABELLA                                     2628 TELEGRAPH  AVE 201 154.12$ 055 184004200 HUANG LI L                                         2615 TELEGRAPH  AVE 301 129.44$ 055 187701201 JANGMI LLC                                         2327 TELEGRAPH  AVE 2,495.70$ 055 187900100 KICK‐AXE PROPERTIES                                2350 TELEGRAPH  AVE 5,140.16$ 055 184004600 KPARTNERS LLC                                      2615 TELEGRAPH  AVE 305 151.90$ 055 187801900 KUANG DIANA Q ETAL                                 2456 BANCROFT  WAY 2,869.94$

Exhibit B:

Telegraph Business Improvment Distritct (TBID) FY2027 Assessments

APN OWNER NAME STREET
NUMBER STREET NAME UNIT
# Tax Exempt Utility Private  Parcel
055 187700500 KURDYS DOUGLAS & SHAWVER LOIS TRS                  2539 DURANT  AVE 3,207.00$ 055 184003900 KWOK VICTOR Y                                      2615 TELEGRAPH  AVE 205 151.90$ 055 187700700 LANDIS FAMILY LLC                                  2525 DURANT  AVE 5,636.40$ 055 187801000 LANDIS FAMILY LLC                                  2419 DURANT  AVE 2,722.44$ 055 187801200 LANDIS FAMILY LLC                                  2411 DURANT  AVE 1,193.56$ 055 184005300 LEUNG VELIA N                                      2615 TELEGRAPH  AVE 101 129.38$ 055 184005400 LEUNG VELIA N                                      2615 TELEGRAPH  AVE 102 92.50$ 055 188401300 LEWIS DEMITRIA M & PAULOS ANDRIANA E TRS           2310 DURANT  AVE 1,546.06$ 055 188100500 LI ZHAOYANG & WAN KE                               2437 DWIGHT  WAY 2,638.00$ 055 184000101 LIEBERT BRUCE E TR & CARLYN M TR                   2601 TELEGRAPH  AVE 1,468.86$ 055 183502900 LIM ING Y & KANWIT ELIZABETH D TRS                 2628 TELEGRAPH  AVE 403 154.12$ 055 188100300 LIPPETT PETER E TR                                 2476 TELEGRAPH  AVE 4,010.02$ 055 183801700 LUNDIN JANE TR                                     2424 DWIGHT  WAY 1,079.86$ 055 183801800 LUNDIN JANE TR                                     2428 DWIGHT  WAY 1 ‐11 1,100.96$ 055 188303100 MA KENNETH & JANICE L TRS                          2406 DANA  ST B 187.16$ 055 183800102 MAJIDI SHAHLA TR                                   2500 TELEGRAPH  AVE 6,263.34$ 055 184004500 MAKHIJANI MEENA S                                  2615 TELEGRAPH  AVE 304 97.16$ 055 188600200 MANDELA LLC                                        2306 ELLSWORTH  ST 1,814.40$ 055 187701902 MARK AT BERKELEY LLC                               2580 BANCROFT  WAY 34,512.60$ 055 183802500 MASON ELIZABETH F & JAMES W ETAL                   2501 DANA  ST 4 182.70$ 055 184005100 MAUS MARLON TR                                     2615 TELEGRAPH  AVE 403 177.78$ 055 183502600
MEYYAPPAN MURUGAPPAN & RAMANATHAN SIVAKAMI
TRS     2628 TELEGRAPH  AVE 305 154.12$
055 183801400 MGH MANAGEMENT LLC                                 2414 DWIGHT  WAY 1,092.14$ 055 187502700 MILANO PROPERTIES LTD LLC                          2475 TELEGRAPH  AVE 1,430.38$ 055 186801400 MIN ROY & EDWARD ETAL                              2700 CHANNING  WAY 658.34$ 055 187701601 MIOTTEL W J JR TR                                  2530 BANCROFT  WAY 10,039.92$ 055 183802700 MITINA SOFIA TR                                    2501 DANA  ST 6 228.18$ 055 186701400 NATEGHIAN FARAMARZ TRUST                           2431 COLLEGE  AVE 1,076.26$ 055 184003700 NAVARROCACERES LILIANA                             2615 TELEGRAPH  AVE 203 97.72$ 055 184200200 NCR PROPERTIES LLC                                 2524 DWIGHT  WAY ‐$ 055 183802100 P G & E CO 135‐1‐12‐2                              2540 TELEGRAPH  AVE 1,808.58$ 055 187802400 PAIGE ROGER & NORMA TRS & HERBERT JOSEPH & CA ETAL 2415 DURANT  AVE 285.24$ 055 187802300 PAIGE ROGER & NORMA TRS ETAL                       2415 DURANT  AVE 288.30$ 055 187802500 PAIGE ROGER & NORMA TRS ETAL                       2417 DURANT  AVE 191.62$ 055 187802600 PAIGE ROGER & NORMA TRS ETAL                       2417 DURANT  AVE 191.62$ 055 187502802 PELLEGRINO PASQUALE TR                             2461 TELEGRAPH  AVE 2,583.62$ 055 187201100 RAAJ BERKELEY OWNER LLC                            2613 CHANNING  WAY 865.42$ 055 187201300 RAAJ BERKELEY OWNER LLC                            2323 BOWDITCH  ST 1,117.48$ 055 187201400 RAAJ BERKELEY OWNER LLC                            2600 DURANT  AVE 21,319.98$ 055 188500900 RECTORS ETC OF ST MARKS                            2300 BANCROFT  WAY 1,736.52$ 055 188501000 RECTORS ETC OF ST MARKS                            2301 DURANT  AVE 6,795.34$ 055 187100600 REGENCY DURANT LLC                                 2637 DURANT  AVE 3,831.28$ 055 183902100 REGENT TERRACE LLC                                 2593 TELEGRAPH  AVE 10,149.80$ 055 187803000 REGENTS OF THE UNIVERSITY OF CALIFORNIA STILES HALL 2401 DURANT  AVE 3,121.72$ 055 186901301 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2333 COLLEGE  AVE  $      7,979.24 055 187101901 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2630 BANCROFT  WAY  $    20,530.16 055 187202101 REGENTS OF THE UNIVERSITY OF CALIFORNIA            COLLEGE AVE  $      9,981.72 055 187300101 REGENTS OF THE UNIVERSITY OF CALIFORNIA            CHANNING WAY  $         362.48 055 187301500 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2411 BOWDITCH  ST  $         281.76 055 187301600 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2409 BOWDITCH  ST  $         283.70 055 187301700 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2405 BOWDITCH  ST  $         180.76 055 187301800 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2550 CHANNING  WAY  $            76.92 055 187301900 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2612 CHANNING  WAY  $    20,648.42 055 187402301 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2612 HASTE  ST  $    15,046.96 055 187500901 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2538 CHANNING  WAY  $      5,636.96 055 187504001 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2556 HASTE  ST  $      7,918.14 055 187600901 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2535 CHANNING  WAY  $    14,818.88 055 187902203 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2436 DURANT  AVE  $      3,261.60 055 188002103 REGENTS OF THE UNIVERSITY OF CALIFORNIA            HASTE ST  $         444.00

Exhibit B:

Telegraph Business Improvment Distritct (TBID) FY2027 Assessments

APN OWNER NAME STREET
NUMBER STREET NAME UNIT
# Tax Exempt Utility Private  Parcel
055 188002104 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2433 HASTE  ST  $         837.84 055 188100700 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2427 DWIGHT  WAY  $      4,879.28 055 188101701 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2400 HASTE  ST  $      1,563.04 055 188601703 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2200 BANCROFT  WAY  $      4,834.00 055 188602501 REGENTS OF THE UNIVERSITY OF CALIFORNIA            2214 BANCROFT  WAY 8,547.58$ 055 187801800 REGENTS UNIVERSITY CALIFORNIA                      2436 BANCROFT  WAY 1,471.44$ 055 187802900 REGENTS OF THE UNIVERSITY OF CALIFORNIA STILES HALL 2400 BANCROFT  WAY  $    11,196.64 055 186701200 ROMAN CATHOLIC WELFARE CORPORATION OF OAKLAND    DWIGHT WAY  $       1,257.16 055 187201200 ROYSTON APARTMENTS LP                              2601 CHANNING  WAY 3,608.96$ 055 187500600 RUE ELL ENTERPRISES INC                            2411 TELEGRAPH  AVE 2,160.46$ 055 187601600 RUE ELL ENTERPRISES INC                            2520 DURANT  AVE 4,013.74$ 055 187700800 RUE ELL ENTERPRISES INC                            2519 DURANT  AVE 4,893.56$ 055 187800501 RUE ELL ENTERPRISES INC                            2433 DURANT  AVE 9,165.06$ 055 187802200 RUE ELL ENTERPRISES INC                            2480 BANCROFT  WAY 3,079.28$ 055 187900300 RUE ELL ENTERPRISES INC                            2380 TELEGRAPH  AVE 1,117.48$ 055 183802000 RUEELL ENTERPRISES INC                             2434 DWIGHT  WAY 1,606.68$ 055 187601901 RUEELL ENTERPRISES INC                             2534 DURANT  AVE 4,811.36$ 055 187802100 RUEELL ENTERPRISES INC                             2470 BANCROFT  WAY 4,811.58$ 055 187601500 RUEGG & ELLSWORTH                                  2516 DURANT  AVE 9,234.10$ 055 187602300 RUEGG & ELLSWORTH                                  2510 DURANT  AVE 4,159.50$ 055 187601700 RUEGG & ELLSWORTH LLC                              2526 DURANT  AVE 10,054.42$ 055 187100401 RUSHTON RICHARD P & WITT S R & LAVELLE P ETAL TRS  2639 DURANT  AVE 1,230.76$ 055 187500700 SARACHAN KENNETH                                   2409 TELEGRAPH  AVE 6,625.40$ 055 187900200 SARACHAN KENNETH                                   2360 TELEGRAPH  AVE 3,953.40$ 055 188100100 SARACHAN KENNETH & BROWN LAURIE                    2464 TELEGRAPH  AVE 4,475.12$ 055 184200600 SATELLITE AFFORDABLE HOUSING ASSOCIATES            2500 HILLEGASS  AVE 1,969.92$ 055 183502500 SHARMA VINEET & SHUCHI                             2628 TELEGRAPH  AVE 304 154.12$ 055 188401400 SHI ZHOUZHENG & LI JIA TRS                         2312 DURANT  AVE 998.78$ 055 183803000 SHYR JURIYAN & HOU DANIEL                          2501 DANA  ST 9 227.72$ 055 188000100
SPECTRUM TELEGRAPH COMMONS LLC & POINT V APPL
ETAL 2486 CHANNING  WAY 7,061.70$
055 187700300 ST JOSEPH ARIM FOUND                               2316 BOWDITCH  ST 1,705.28$ 055 187700400 ST JOSEPH ARIM FOUND                               2543 DURANT  AVE 783.70$ 055 184005000 SU VINCENT P & INGRID ETAL                         2615 TELEGRAPH  AVE 402 141.42$ 055 187502400 SUM YUN C & NGAN C TRS                             2511 DWIGHT  WAY 5,433.42$ 055 183502200 SUN CHII YUN & KAREN K                             2628 TELEGRAPH  AVE 301 154.12$ 055 184004900 SUNKU RAVINDRA & ROOPA R ETAL                      2615 TELEGRAPH  AVE 401 170.64$ 055 183501800 TAM RICHARD W & ZHANG TAO T ETAL                   2628 TELEGRAPH  AVE 1 203.02$ 055 188002201 TAYLOR SPRINGS MANAGEMENT LLC                      2414 TELEGRAPH  AVE 9,951.88$ 055 183700100 TELEGRAPH BLAKE ST LLC                             2556 TELEGRAPH  AVE 10,430.78$ 055 187502600 TELEGRAPH PARTNERS LLC                             2499 TELEGRAPH  AVE  $       2,465.90 055 183900500 TELEGRAPH REGENT LLC                               2512 REGENT  ST 3,712.76$ 055 187500800 THELMA & LOUISE NO 2 LLC                           2508 CHANNING  WAY 12,283.70$ 055 188101200 TOWN & GOWN CLUB                                   2401 DWIGHT  WAY 1,529.58$ 055 187600100 TREVOR JAMES II                                    2328 BOWDITCH  ST 1,837.64$ 055 188500102 TRINITY UNITED METHODIST CHURCH OF BERKELEY        2362 BANCROFT  WAY 1,452.72$ 055 188500104 TRINITY UNITED METHODIST CHURCH OF BERKELEY        2362 BANCROFT  WAY 5,528.30$ 055 187101200 TRUST BENEFIT CHRISTIAN SCIENCE ORGANIZATION UC BE 2601 DURANT  AVE 783.96$ 055 188401200 TWENTY THREE HUNDRED DURANT PARTNERSHIP            2300 DURANT  AVE 2,433.12$ 055 186801000 UNIVERSITY LUTHERAN CHAPEL OF BERKELEY CALIF       2425 COLLEGE  AVE 802.26$ 055 187101501 UNIVERSITY Y W C A                                 2600 BANCROFT  WAY 2,829.62$ 055 187801700 VALHAUS LP                                         2430 BANCROFT  WAY 4,030.38$ 055 183801500 VALUES INC INVESTMENT CO                           2418 DWIGHT  WAY 1,865.44$ 055 187401300 VEDANTA SOCIETY BERKELEY                           2455 BOWDITCH  ST 1,078.18$ 055 188600400 VERO PROPERTIES LLC                                2241 DURANT  AVE 1,845.02$ 055 188100400 VIRGINIA COLLEGE ASSOCIATES LP                     2482 TELEGRAPH  AVE 7,519.64$ 055 183502700 WANG HAOLIN                                        2628 TELEGRAPH  AVE 401 154.12$ 055 188300400 WEN WILLIAM K TR                                   2410 DANA  ST 988.02$ 055 188500103 WESLEY HOUSE BERKELEY LLC                          2398 BANCROFT  WAY 2,822.84$ 055 184003500 WHANG WILLIAM W & ALICE J TRS                      2615 TELEGRAPH  AVE 201 129.44$

Exhibit B:

Telegraph Business Improvment Distritct (TBID) FY2027 Assessments

APN OWNER NAME STREET
NUMBER STREET NAME UNIT
# Tax Exempt Utility Private  Parcel
055 183600603 WONG FRANKLIN C & WONG HENRY F TR ETAL             2600 TELEGRAPH  AVE 1,848.44$ 055 184600200 WU SEN T & SUE H & CHUANG MARIE W TRS              2640 DWIGHT  WAY 2,294.32$ 055 183503100 XIA JING                                           2628 TELEGRAPH  AVE 405 154.12$ 055 187101100 YEE DAVID                                          2605 DURANT  AVE 1,091.12$ 055 184004000 YU JULIA & YU JEAN J TR                            2615 TELEGRAPH  AVE 206 137.62$ 055 187802000 ZENGS BERKELEY LLC                                 2462 BANCROFT  WAY 5,067.14$ 055 184004400 ZHANG YINGQUN & WANG NAIRU                         2615 TELEGRAPH  AVE 303  $            97.72 055 183700200 ZION PROPERTIES LLC                                2566 TELEGRAPH  AVE D  $       4,000.58 Totals 247 $199,169.22 $1,808.58 $677,260.98
Parcels 24 1 222
Tax Exempt  Private Parcels &
Utility
Total Count of Parcels: 247 24 223
County Fee @1.7% (on Private & Utility Parcels): $11,544.183 Net Assessment Revenue (Private & Utility Parcels): $667,525.377 Total Assessment Revenue: 866,694.60$
Note: Data for APN, Owner, and Land Use from the City's Land Management System is current as of April 30, 2026.

Updated data from Alameda County including APN, Owners and Land Use will be available on July 1, 2026.

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 9, 2026
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Economic Development Manager Subject: Assessments: Berkeley Tourism Business Improvement District

RECOMMENDATION
Adopt a Resolution approving the Annual Planning Report and preliminary budget for Fiscal Year 2027 (FY27) for the Berkeley Tourism Business Improvement District (BTBID) as recommended by the BTBID Owners’ Association.

FISCAL IMPACTS OF RECOMMENDATION
The BTBID levies an annual assessment of three percent (3%) of gross short-term room rental revenue for lodging establishments. Annual assessment funds will be deposited and expended from the Tourism BID Fund. Based on City of Berkeley proposed budget revenue projections in Transient Occupancy Tax (TOT) collections for FY 2027 (shared in April 2026), the BTBID is budgeted to receive $2,298,135 in funding for FY 2027.

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.

Both parties understand that the actual amount may change in the coming months, reflecting the ever-evolving state of the Berkeley economy and local, regional, and national tourism trends. The City retains a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration associated with the Tourism BID. The exact amount of any FY 2026 BTBID fund balance will only be known with certainty in August 2026. This is because the City collects BTBID assessments on a monthly basis along with Transient Occupancy Taxes (TOT). As a result, the finance department will only know the receipts for June 2026 after those assessments are collected at the beginning of July 2026. If revenues come in higher than anticipated, the Office of Economic Development will determine the amount and make a one-time “true up” payment for FY2026 during FY 2027. The appropriation of these additional funds will be included as a one-time “true up” payment with the amount articulated and authorized in the First Amendment to the FY 2027 Annual Appropriations Ordinance (November 2026).

Assessments: Berkeley Tourism Business Improvement District CONSENT CALENDAR June 9, 2026

CURRENT SITUATION AND ITS EFFECTS
The Berkeley Convention and Visitors Bureau, known as Visit Berkeley, has an active contract (Contract No. 32600062, Authorized by Resolution No. 71,751–N.S.) with the City to implement the Management District Plan for the Tourism Business Improvement District to support tourism marketing and promotion. The contract with Visit Berkeley (the BTBID’s Owners’ Association) is for an amount not to exceed total BTBID collections for the term of the existing 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 (adopted in 2025).

Under the Property and Business Improvement District Law of 1994 (California Streets and Highways Code section 36600 et.seq.) the City Council may approve an Annual Planning Report prepared by the Tourism Business Improvement District Owners’ Association with a proposed budget for the next year. Accordingly, at its April board meeting, the BTBID Owners Association voted to approve the Tourism BID’s Annual Planning Report and budget for BTBID’s Fiscal Year 2027. Council can now adopt the recommended resolution which will confirm the Tourism BID assessment and thus enable continuous BID operations for another year.

The Management District Plan was adopted by Council in 2025 as part of the reestablishment of the Tourism Business Improvement District; the plan provides a framework and budget for the Tourism BID’s activities. In FY 2027, the Tourism BID will continue to work with local hotel managers and hospitality industry leaders, the City of Berkeley, and other relevant tourism industry stakeholders to do strategic destination marketing and sales work that drives visitors to Berkeley’s lodging establishments and supports Berkeley’s hospitality industry. Additionally, the Tourism BID will continue to develop digital marketing and promotions utilizing the power of Visit Berkeley’s website and social media strengths to push positive messaging to the visitor, event planners, and industry meeting planners. Visit Berkeley will continue to develop and manage constructive relationships with local, regional and statewide marketing and hospitality partners to create local overnight room demand and to ensure the organization has the resources and support needed to successfully execute the BTBID mission.

BACKGROUND
The Berkeley Tourism Business Improvement District includes all lodging businesses with five (5) rooms or more, available for public occupancy within the boundaries of the City of Berkeley. The City is responsible for collecting the assessment on a monthly basis from each lodging business with five (5) rooms or more located in the District boundaries. The City forwards the assessments to Visit Berkeley, which has the responsibility of managing Tourism Business Improvement District (BID) programs as provided in the Management District Plan.

The Berkeley Tourism BID was first established for a period of five years on September

Assessments: Berkeley Tourism Business Improvement District CONSENT CALENDAR June 9, 2026
18, 2012 to raise revenues to finance marketing and sales promotions, increase tourism, and promote Berkeley hotels as tourist, meeting, and event destinations. The Berkeley Municipal Code was amended on November 27, 2012 to modify its definition of room rent so that BTBID assessments passed through to guests are exempt from the Transient Occupancy Tax (TOT) which is also applied to room rent. A portion of TOT revenue also funds the Berkeley Convention and Visitors Bureau, but under a separate contract. On April 25, 2017, Council approved Resolution No. 67,926-N.S. reestablishing the Tourism BID starting on July 1, 2017 for an additional 10 years, expiring in 2027. In 2024, Visit Berkeley transitioned leadership, and through direction of the Board, spearheaded the early renewal and modification of the BTBID. On June 24, 2025, City Council adopted the renewal and modification of the Berkeley Tourism Business Improvement District for an additional ten (10) year term to increase a dedicated revenue source devoted to marketing and promoting specific hotel-serving activities, beginning July 1, 2025 through June 30, 2035 (FY26-FY36).

The Tourism BID is authorized through June 30, 2035 unless action is taken to disestablish it. In 2025, council adopted Resolution No. 71,751–N.S. authorizing the City Manager to execute a contract (Contract No. 32600062) 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.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
The BTBID works to promote the Bay Area Green Business certification program with Berkeley’s hotel owners, thereby encouraging the local lodging industry to take actions to meet environmental sustainability objectives.

RATIONALE FOR RECOMMENDATION
The State Property and Business Improvement District Law of 1994 requires that the City Council accept an annual report from the Owners’ Association for each fiscal year in which assessments are to be levied. The report shall include any proposed changes in the boundaries of the district, the activities proposed for the year, and an estimate of the cost for providing them. Council action is required to approve the Tourism BID’s Annual Report. This will, in turn, confirm disbursement of Tourism BID assessment revenue to Visit Berkeley. This private/public partnership generates significant resources for the City, indirectly enhancing sales tax, business license tax, and directly enhancing other business-related City revenue sources such as transit occupancy tax.

ALTERNATIVE ACTIONS CONSIDERED
None.

Assessments: Berkeley Tourism Business Improvement District CONSENT CALENDAR June 9, 2026

CONTACT PERSON
Elizabeth Redman Cleveland, Office of Economic Development, (510) 981-7532 Attachments:
1: Resolution: Annual Planning Report and Proposed Budget Tourism BID Exhibit A: Annual Planning Report FY2026 and Proposed FY 2027 Budget of the Berkeley Tourism Business Improvement District

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

APPROVING THE 2026 ANNUAL REPORT AND PROPOSED FY 2027 BUDGET

OF THE BERKELEY TOURISM BUSINESS IMPROVEMENT DISTRICT
WHEREAS, Property and Business Improvement District Law of 1994 (California Streets and Highways Code section 36600 et.seq.) authorizes cities to establish business improvement districts for the purpose of imposing assessments on businesses for certain purposes; and WHEREAS, on June 24, 2025, the Berkeley City Council re-established such a district known as the Berkeley Tourism Business Improvement District (the "District"); and WHEREAS, the City Council designated the Berkeley Tourism Business Improvement District Owners’ Association (Owners’ Association) to oversee the activities of the District; and WHEREAS, the Owners’ Association has submitted an Annual Report to the Berkeley City Council that outlines the activities of the District proposed for fiscal year (FY) 2027 and a budget for providing them, as required by the California Streets and Highways Code Section 36650; and WHEREAS, the Annual Planning Report is clear and complete and found to comply with the interests of the District assesses; and
WHEREAS, the Annual Planning Report proposes no changes to rates, boundaries or services to the Business Improvement District.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the Council of the City of Berkeley hereby approves the Berkeley Tourism Business Improvement District Annual Planning Report budget for FY2027 (Exhibit A) as submitted to the City Clerk by the Berkeley Tourism Business Improvement District Owners’ Association.

Exhibit A: Berkeley Tourism Business Improvement District (BTBID) Marketing Plan
FY2026 Annual Planning Report and FY 27 Budget
District Name: This report is for the Berkeley Tourism Business Improvement District

Fiscal Year of Report: This report applies to FY 2026 (July 1, 2025 – June 30, 2026) and proposes a budget and plan for FY2027 (July 1, 2026 – June 30, 2027).

Background: The Berkeley TBID is a benefit assessment district created in 2012 by a group of hoteliers to fund marketing and promotional efforts for Berkeley lodging businesses. The first 5-year agreement with the City of Berkeley was from November 1, 2012, through October 31, 2017. On November 18, 2014, the Berkeley City Council approved the transition of the BTBID to a fiscal year contract cycle effective 2015- 16. On April 25, 2017, City Council adopted the renewal of the Berkeley Tourism Business Improvement District for a ten (10) year term to maintain a revenue source devoted to marketing and promoting specific hotel-serving activities, beginning July 1, 2017, through June 30, 2027 (FYs18-27). In 2024 Visit Berkeley transitioned leadership, and through direction of the Board, spearheaded the early renewal and modification of the BTBID. On June 24, 2025, City Council adopted the renewal and modification of the Berkeley Tourism Business Improvement District for a ten (10) year term to increase a dedicated revenue source devoted to marketing and promoting specific hotel-serving activities, beginning July 1, 2025 through June 30, 2035 (FY26-FY36).

Boundaries: The Berkeley TBID includes all hotels with five or more rooms, existing and in the future, available for public occupancy within the boundaries of the City of Berkeley (Appendix II). The boundary includes approximately 18 hotel businesses (Appendix III).

There are no proposed changes to the boundaries for fiscal year 2027.

Improvements and Activities for FY2027: This planning report is provided for informational purposes. Actual projects are subject to approval by the BTBID Committee and the Visit Berkeley board. Below are the improvements and activities planned for fiscal year 2027. The ideas presented below are subject to change during the course of the year depending on circumstances and availability of funds. The estimated budget is $2,298,135.00 (Appendix I).

Market Summary Report: Comparing past fiscal years the City of Berkeley lodging industry has experienced steady growth YoY. Hotel occupancy was averaging 71.5% in Annual Year 2025. Average Daily Rates (ADR) is are showing $189.62 in Annual Year 2025 compared to $185.02 in Annual Year 2024. Meeting, events and leisure marketing have seen growth in Berkeley, in 2025, Berkeley outperformed neighboring cities, ranking first in occupancy and second in ADR, behind only San Francisco. It was one of just two markets to record growth in demand, occupancy, and revenue, reflecting a strong and balanced hospitality market.

Visit Berkeley is strengthening its relationship with UC Berkeley, with increased partnership throughout multiple offices and departments including the Office of the Chancellor, Event Services, Residential Student Services Programs, and Cal Athletics. Visit Berkeley will

continue to build partnerships and outreach to all departments encouraging utilization of Berkeley hotels and event space as their preferred choice for conferences and visitors.

Visit Berkeley will partner with local Business Improvement Districts (BIDs), the City of Berkeley’s Office of Economic Development (OED) and Chamber of Commerce by supporting their events with social media campaigns targeting Berkeley residents and attracting local and regional visitors to Berkeley.

We anticipate TOT revenues to increase as we see both a resurgence in positive sentiment towards the San Francisco Bay Area from visitors, and an increase in marketing alignment with Visit California and their international offices, focusing on Mexico, Japan, Korea, and Australia. Visit Berkeley has increased our marketing efforts to target Corporate, Association, and SMERF meeting planners, and increased our international efforts for inbound travel, as well as individual Leisure travelers.

FY 2027 PROPOSED BUDGET ALLOCATION
1) SALES AND MARKETING (99%)
Sales and Marketing shall be 99% of the assessment that is estimated to be $2,298,135.00 for FY27.

1. OVERALL DESTINATION MARKETING STRATEGY
Strategy: Work with Stakeholders, City of Berkeley, and Community Leaders to develop strategies and initiatives to support the hospitality businesses citywide. a. Lodging: develop multiple campaigns to increase occupancy, increase meeting/conference outreach, host familiarization or FAM Trips, and attend Trade Shows. (17% increase in Tradeshows in 2025)
b. Restaurants/Libations: Build on the success of Berkeley Restaurant Week (3% increase in restaurants who participated in 2025) and Berkeley Bucks programs.
c. Arts & Culture Venues: maintain a robust events calendar onVisitBerkeley.com, promote venues on our website and on IKE Kiosks. Partner with Office of Economic Development with marketing support for Arts Grants recipient and other community partners.
d. Merchant and Commercial Districts: meet regularly with BIDs to support their events through our website and IKE kiosks.

2. DEVELOP INTERNAL MARKETING STRATEGIES
Strategy: Develop digital marketing and promotions utilizing the power of Visit Berkeley’s website and social media strengths to push positive messaging to the visitor and meetings industry.
a. Website: maintain a robust website that promotes all tourism and meeting related businesses.

Partner Development: work with tourism marketing partners to create visitor packages and campaigns.

Outdoor Adventure: promote outdoor activities, such as district shopping, parks, outdoor dining, and special events.

Digital and In-P erson Familiarization Tours (“fam” tours) and Meetings:

Maintain contact with meeting planners and content creators with individual and group meetings, selectively host in-person fam tours and introduce hotel promotions and packages.

3. LOCAL, REGIONAL AND STATEWIDE MARKETING OUTREACH

Strategy: Create, develop, and manage positive relationships with local, regional, and statewide marketing and hospitality partners to create overnight room demand and to ensure Visit Berkeley has the resources and support needed to successfully execute the BTBID mission.
a. Local: maintain and build positive relationships with UC Berkeley, Cal Athletics, Chancellor’s office, and other local businesses that produce lodging overnight stays and conferences
b. Regional: (9 Bay Area Counties) strategize opportunities to attract leisure and family visitations to patronize Berkeley’s merchant districts, attractions, and outdoor activities
c. Statewide: leverage our ongoing relationships with Visit California and Oakland San Francisco Bay International Airport to participate in cooperative programs and marketing opportunities to attract Regional and Statewide visitation to Berkeley

2) CITY COLLECTION COSTS (1%) The City of Berkeley shall be paid a fee equal to 1% of the amount of assessment collected to cover its costs of collection and administration. The estimated costs for fiscal year 2027 are $22,981.35.

TOTAL ESTIMATE OF COSTS FOR FY 2027 (100%) A breakdown of the total estimated $2,298,135.00 budget for fiscal year 2027 is attached to this report as Appendix I: Total Estimated Costs and Revenue for the Berkeley Tourism Business Improvement District (BTBID) Fiscal Year 2027 (July 1, 2026, to June 30, 2027).

Method and Basis of Assessment: The annual assessment rate is one percent (3%) of gross short term (stays less than 30 days) room rental revenue for hotels. Based on the benefit received, assessments will not be collected: on stays of more than thirty (30) consecutive days; on stays by any officer or employee of government who is exempt by express provisions of federal international treaty; or on stays by any customer of a bed and breakfast establishment as defined in Section 23F.94.010 of the Berkeley Municipal Code, which is located in a residential zoning district, has been in consistent operation as of January 1, 2003, and the continued operation of which is permitted under Chapter 23C.06 of the Berkeley Municipal Code. (See Appendix II: Map of the Berkeley Tourism Business Improvement District (BTBID)).

Amount of Surplus/Deficit from previous Fiscal Year: The BTBID assessment was originally estimated to bring in approximately $2,298,135.00 in revenues in FY27. Berkeley TOT has experienced an increase in revenues in FY25 but Visit Berkeley does expect a corresponding surplus in revenues from FY26 to be generated (though the final amount will not be known until the first quarter of FY27) in any case, any surplus revenues will be carried forward for use in FY27.

Number of Contributions from other sources: There are no plans to apply for funding from other sources.

Thank you for the opportunity to present our Annual Planning Report. If you have any questions regarding this report, please contact Jeffrey Church, President/CEO of Visit Berkeley at (510) 549-7040 / Cell# (408) 623-5678.

Appendix I: Total Estimated Costs and Revenue for the Berkeley Tourism Business Improvement District (BTBID) Fiscal Year 2027 (July 1, 2026, to June 30, 2027)
Revenues
2026-27 Assessments (FY27) $2,298,135.00
2025-26 Carryover (FY26) TBD
Total Estimated Revenues $2,298,135.00
Expenditures
Sales & Marketing $2,298,135.00
City of Berkeley Collection Costs (1%) $22,981.35
2025-26 Carryover (estimated, FY26) TBD
Total Estimated Expenditures $2,321,116.36

Total FY27 BTBID Budget

$2,298,135.00

Appendix II
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 of Berkeley (City), as shown in the map below.

Lodging business may include, but is not limited to, any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, or other similar structure or portion thereof.

A complete listing of assessed lodging businesses within the renewed BTBID can be found in Appendix III.

Source: BTBID Management District Plan 2025

APPENDIX III – ASSESSED BUSINESSES
Assessed Berkeley Tourism BID Contributors, lodgings with 5 or more rooms, as of: March 2025

Business Name Site Address City, State ZIP
Aiden by Best Western 1499 University Ave. Berkeley, CA 94702 Bancroft Hotel 2680 Bancroft Way Berkeley, CA 94704
Berkeley City Club 2315 Durant Ave. Berkeley, CA 94704
Berkeley Travelodge (Sather
Hotel by Wyndham Berkeley)
1820 University Ave. Berkeley, CA 94703
Doubletree Berkeley Marina 200 Marina Blvd. Berkeley, CA 94710 Downtown Berkeley Inn 2001 Bancroft Way Berkeley, CA 94704 Graduate Berkeley 2600 Durant Ave. Berkeley, CA 94704
Holiday Inn Express 1175 University Ave. Berkeley, CA 94702 Hotel Shattuck Plaza 2086 Allston Way Berkeley, CA 94704 Howard Johnson Hotel 1512 University Ave. Berkeley, CA 94702 Marina Inn 975 University Ave. Berkeley, CA 94710
Nash Hotel 2045 University Ave. Berkeley, CA 94704
Prima Donna Hotels Inc., dba
Sens Hotel & Bistro Berkeley
1540 Shattuck Ave. Berkeley, CA 94709
Residence Inn 2121 Center St. Berkeley, CA 94704
Rose Garden Inn 2740 Telegraph Ave. Berkeley, CA 94705
University Inn 920 University Ave. Berkeley, CA 94710
Urban Adamah 1151 Sixth St. Berkeley, CA 94710
Vista Inn & Suites, dba Quality
Inn
1761 University Ave. Berkeley, CA 94703
YMCA of the East Bay 2001 Allston Way Berkeley, CA 94704

Source: BTBID Management District Plan 2005

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 9, 2026
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Eleanor Hollander, Economic Development Manager Subject: Assessments: North Shattuck Property Based Business Improvement District

RECOMMENDATION
Adopt a Resolution approving the North Shattuck Property Based Business Improvement District (NSBID) Annual Report of Fiscal Year (FY) 2026 and proposed budget for FY 2027 and declaring Council’s intention to levy an annual assessment for the NSBID for FY 2027.

FISCAL IMPACTS OF RECOMMENDATION
Assessments levied in the North Shattuck Business Improvement District (NSBID) support a package of improvements and activities approved by the property owners and the City Council when the District was renewed for a ten-year period on June 16, 2020 (Resolution No. 69,454–N.S.). Assessment funds are collected by Alameda County, relayed to the City of Berkeley, and disbursed through a contract with the North Shattuck Association (NSA), a private owners’ association that was established to implement the NSBID’s Management District Plan.

In June of 2020, the City Council authorized the City Manager to execute a contract and any amendments with the North Shattuck Association, not to exceed $2,652,778 of BID revenues, to implement the North Shattuck Management District Plan for the period July 1, 2020 to June 30, 2031 (Contract No. 32100055). The contract covers the years remaining in the current term of the NSBID establishment.

NSBID assessments are projected and budgeted at approximately $248,903 in FY 2027. Assessment funds are deposited into NSBID Fund 785-21-208-251-0000-000- 000-412110 and expended from fund number 785-21-208-251-0000-000-446-636110.

The NSBID’s adopted Management District plan allows for an annual 5% assessment increase for inflation, and the majority of the North Shattuck Association’s Board of Directors met on February 19, 2026 and determined a four percent (4%) increase was warranted in FY27. Project funds not spent in any given fiscal year are carried over into future years. The final NSBID annual report for FY26 and budget for FY27 was approved at the NSA’s April 16, 2026 board meeting.

Assessments: North Shattuck Property Based Business Improvement District CONSENT CALENDAR June 9, 2026

By financing improvements, maintenance and marketing activities for the North Shattuck business district, the NSBID indirectly enhances sales tax, business license tax and other business-related City revenue sources. No City-owned properties have been or will be assessed in the NSBID.

CURRENT SITUATION AND ITS EFFECTS
State legislation that authorizes formation of property-based BIDs (California Streets and Highways Code, Sections 36600 et. seq.) requires that the BID governing body submit an Annual Report on operations and a budget proposal to the City Council each year. The City Council may approve the report with a Resolution to reauthorize the annual assessments.

The Board of Directors of the NSA met in a publicly noticed meeting on April 16, 2026 to review and approve the attached Annual Report for the NSBID for FY 2026 (Exhibit A).

The report includes a budget for improvements and activities for FY 2027 and an estimated cost for providing them. The report also recommends that the assessments for FY 2027 be levied on the same basis and method, and within the same boundaries, as they were levied for FY 2026 with the allowable annual 4% fee increase. See Exhibit B: North Shattuck BID FY27 Assessment Roll. Council can adopt the recommended resolution which will confirm the NSBID assessment, thus enabling continuous BID operations in the North Shattuck district for another year.

BACKGROUND
The NSBID was first established by Resolution of the Berkeley City Council in 2001 (Resolution No. 61,168-N.S.) to implement a Management District Plan that had been developed by a steering committee of merchants and property owners. In accordance with the Management District Plan adopted in Resolution No. 61,168-N.S., the NSBID had a lifetime of ten years, expiring in 2011. On May 3, 2011, Council approved Resolution No. 65,265-N.S. reestablishing the NSBID for 10 more years, ending in Fiscal Year 2021. Further, on June 16, 2020, Council approved Resolution No. 69,454– N.S. reestablishing the NSBID for an additional 10 years (starting in FY21). Thus, the NSBID is authorized through FY 2031 unless action is taken to dis-establish it.

The NSBID finances special improvement, maintenance and marketing activities that benefit commercial properties and businesses in the North Shattuck District.

NSBID activities are performed above and beyond baseline services provided by the City. The Management District Plan for the North Shattuck BID was adopted by Council in 2020 as part of the reestablishment of the District and provides a framework for the NSBID’s activities.

In FY 2027, the NSBID will continue its ongoing services including District maintenance, public improvements, holiday lighting, and marketing/promotional activities. The NSBID will continue to provide cleaning and outreach services in the public right of way. Events and activities promoting the District will continue throughout the year, including winter holiday promotions and other seasonal events.

Regular arts and events newsletters will be shared, and ongoing marketing efforts

Assessments: North Shattuck Property Based Business Improvement District CONSENT CALENDAR June 9, 2026

will continue via the North Shattuck Association (NSA) website and other social media. The NSBID will also continue to liaise and coordinate with other business district organizations, Visit Berkeley, the Chamber of Commerce, and the Berkeley Business District Network (BBDN) to promote local business and economic development opportunities in Berkeley.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
By maintaining and enhancing the District, the NSA creates shopping opportunities for residents and visitors alike while encouraging alternative forms of transportation.

Because the District is well served by public transportation and biking infrastructure, these services support environmental sustainability goals of encouraging alternative transportation choices.

RATIONALE FOR RECOMMENDATION
Property and Business Improvement District Law of 1994 requires that the BID Board prepare an Annual Report for each fiscal year in which assessments are to be levied. Council action is required to approve the BID’s Annual Report and declare its intent to levy assessments. This private/public partnership generates significant resources for revitalization of the North Shattuck District has a positive effect on the physical and economic health of the City of Berkeley.

ALTERNATIVE ACTIONS CONSIDERED
The Board of the NSBID considered opting for the full allowable 5% increase in assessment rates but instead decided to increase the assessment by 4%, to keep up with the pace of inflation but also stay mindful of cost burdens on property owners.

CONTACT PERSON
Vincent McCoy, Office of Economic Development, (510) 981-7043 Attachments:
1: Resolution: Confirm Annual Report and Levy Annual Assessment Exhibit A: NSBID Report for FY 2026 and Proposed Budget for FY 2027 Exhibit B: North Shattuck BID FY 2027 Assessment Roll

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

APPROVING THE ANNUAL REPORT OF THE NORTH SHATTUCK BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2026 AND DECLARING INTENT TO LEVY ASSESSMENTS FOR FISCAL YEAR 2027
WHEREAS, the Property and Business Improvement District Law of 1994 as amended (California Streets and Highways Code Section 36600 et. seq.) authorizes cities, with the consent of property owners, to fund property-related improvements, maintenance and activities through the levy of assessments upon the real property that benefit from the improvements, maintenance and activities; and
WHEREAS, after ten years of successful operation, on June 16, 2020 the Berkeley City Council reestablished the North Shattuck Business Improvement District (hereafter, “the District”) for an additional ten-year period by Resolution No. 69,454-N.S.; and WHEREAS, on April 16, 2026 the Board of Directors of the North Shattuck BID adopted the Annual Report to the City of Berkeley FY 2026 (hereafter “Annual Report”) that describes the operations of the District in FY 2026, recommends services for FY 2027 and proposes a budget for FY 2027 (Exhibit A).

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that pursuant to provisions of Section 36600 et. seq. of the California Streets and Highways Code, the City Council approves the Annual Report of the North Shattuck Association (Exhibit A) and declares its intent to levy special assessments on property within the boundaries of the District for FY 2027 (Exhibit B).

BE IT FURTHER RESOLVED that that the boundaries of the District and the method and basis for the assessment remain the same as those set forth and approved in the Management District Plan (Plan) that was adopted on June 16, 2020, when Council renewed the North Shattuck BID through Resolution No. 69,454-N.S.

BE IT FURTHER RESOLVED that the improvements and activities to be provided are those described in the Plan and the Annual Report.

BE IT FURTHER RESOLVED that the cost of providing the improvements and activities is as described in the budget that accompanies the Annual Report.

BE IT FURTHER RESOLVED that the Assessment Rate for FY 2027 shall increase 4% from the rates established in FY 2026 (an increase of 5% is allowed annually by the District Management Plan). Following adoption of this resolution, the City Council may confirm the Annual Report and levy assessments for FY 2027 and confirm disbursement of NSBID assessment revenue to the North Shattuck Association provided for in Contract No.32100055, authorized in Resolution No. 69,455–N.S. (2020).

Exhibit:

A: North Shattuck Annual Report for FY 2026 and Proposed Budget for FY 2027 B: NSBID Assessment Roll FY 2027

1 NORTH SHATTUCK ASSOCIATION

ANNUAL REPORT TO

THE CITY OF BERKELEY
FISCAL YEAR 2026

INTRODUCTION

The North Shattuck Business Improvement District (NSBID) was reestablished for a new 10-year period by the Berkeley City Council on June 16, 2020 (Resolution No. 69,454-N.S.) under provisions of the State of California Property and Business Improvement District Law of 1994. The NSBID was formed in 2001, renewed in 2011 and again in 2020 to implement a Management District Plan developed and revised in 2020 to address the specific needs of the District and which sets forth the projected activities of the NSBID and the allocation of BID assessment revenues to each activity.

The renewed North Shattuck BID consists of 54 parcels along Shattuck between Rose and Delaware, and also one block of Vine east of Shattuck Ave. The assessments fund special benefits within the District, enhancing the North Shattuck area’s streetscape environment with infrastructure improvements, ongoing maintenance, and special events to new customers and visitors, increasing business sales, and attract and retain businesses.

The NSBID is managed by the non-profit North Shattuck Association, whose Board of district business and property owners and Executive Director coordinate implementation of the Management Plan. The Property and Business Improvement District Law of 1994 requires that the owners’ association that is responsible for administering a BID prepare an annual report for each fiscal year for which assessments are to be levied.

This report reviews Fiscal Year 2026 operations, and states goals and objectives for Fiscal Year 2026 of the NSBID, which begins July 1, 2026, and ends June 30, 2027.

This report includes the improvements and activities for the year, an estimate of the